[Federal Register Volume 62, Number 219 (Thursday, November 13, 1997)]
[Rules and Regulations]
[Pages 60784-60785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29863]



[[Page 60784]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 034-0048; FRL-5917-5]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, South Coast Air Quality Management 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is finalizing limited approvals and limited disapprovals 
of revisions to the California State Implementation Plan (SIP) proposed 
in the Federal Register on September 23, 1992 and May 14, 1997. This 
final action will incorporate these rules into the federally approved 
SIP. The intended effect of finalizing this action is to regulate 
emissions of volatile organic compounds (VOCs) in accordance with the 
requirements of the Clean Air Act, as amended in 1990 (CAA or the Act). 
The revised rules control VOC emissions from the formulation and 
manufacture of pharmaceuticals and cosmetics and from facilities that 
load organic liquids into tank trucks, trailers, or railroad tank cars. 
Thus, EPA is finalizing a simultaneous limited approval and limited 
disapproval under CAA provisions regarding EPA action on SIP submittals 
and general rulemaking authority because these revisions, while 
strengthening the SIP, also do not fully meet the CAA provisions 
regarding plan submissions and requirements for nonattainment areas. As 
a result of this limited disapproval EPA will be required to impose 
highway funding or emission offset sanctions under the CAA unless the 
State submits and EPA approves corrections to the identified 
deficiencies within 18 months of the effective date of this 
disapproval. Moreover, EPA will be required to promulgate a Federal 
implementation plan (FIP) unless the deficiencies are corrected within 
24 months of the effective date of this disapproval.

EFFECTIVE DATE: This action is effective on December 15, 1997.

ADDRESSES: Copies of the rules and EPA's evaluation report for each 
rule are available for public inspection at EPA's Region 9 office 
during normal business hours. Copies of the submitted rules are 
available for inspection at the following locations:

Rulemaking Office, (AIR-4), Air Division, U.S. Environmental Protection 
Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105.
Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street, 
S.W., Washington, D.C. 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 92123-1095.
South Coast Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Christine Vineyard, Rulemaking Office, 
(AIR-4), Air Division, U.S. Environmental Protection Agency, Region IX, 
75 Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-
1197.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rules being approved into the California SIP include: South 
Coast Air Quality Management District (SCAQMD) Rule 1103, 
Pharmaceuticals and Cosmetic Manufacturing Operations; and SCAQMD Rule 
462, Organic Liquid Loading. These rules were submitted by the 
California Air Resources Board (CARB) to EPA on May 13, 1991 and 
October 13, 1995, respectively.
    This Federal Register action for the South Coast Air Quality 
Management District excludes the Los Angeles County portion of the 
Southeast Desert AQMA, otherwise known as the Antelope Valley Region in 
Los Angeles County, which is now under the jurisdiction of the Antelope 
Valley Air Pollution Control District as of July 1, 1997. <SUP>1</SUP>
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    \1\ The State has recently changed the names and boundaries of 
the air basins located within the Southeast Desert Modified AQMA. 
Pursuant to State regulation the Coachella-San Jacinto Planning Area 
is now part of the Salton Sea Air Basin (17 Cal. Code. Reg. 
Sec. 60114); the Victor Valley/Barstow region in San Bernardino 
County and Antelope Valley Region in Los Angeles County is a part of 
the Mojave Desert Air Basin (17 Cal. Code. Reg. Sec. 60109). In 
addition, in 1996 the California Legislature established a new local 
air agency, the Antelope Valley Air Pollution Control District, to 
have the responsibility for local air pollution planning and 
measures in the Antelope Valley Region (California Health & Safety 
Code Sec. 40106).
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II. Background

    On September 23, 1992 in 57 FR 43960 and May 14, 1997 in 62 FR 
26460, EPA proposed granting limited approval and limited disapproval 
of the following rules into the California SIP: SCAQMD Rule 1103, 
Pharmaceutical and Cosmetic Manufacturing Operations, and SCAQMD Rule 
462, Organic Liquid Loading. Rule 1103 was adopted by SCAQMD on 
December 7, 1990 and Rule 462 was adopted by SCAQMD on June 9, 1995. 
These rules were submitted by the CARB to EPA on May 13, 1991 and 
October 13, 1995, respectively. These rules were submitted in response 
to EPA's 1988 SIP Call and the CAA section 182(a)(2)(A) requirement 
that nonattainment areas fix their reasonably available control 
technology (RACT) rules for ozone in accordance with EPA guidance that 
interpreted the requirements of the pre-amendment Act. A detailed 
discussion of the background for each of the above rules and 
nonattainment areas is provided in the proposed rules (PRs) cited 
above.
    EPA has evaluated the above rules for consistency with the 
requirements of the CAA and EPA regulations and EPA's interpretation of 
these requirements as expressed in the various EPA policy guidance 
documents referenced in the PRs. EPA is finalizing the limited approval 
of these rules in order to strengthen the SIP and finalizing the 
limited disapproval requiring the correction of the remaining 
deficiencies. SCAQMD Rule 1103 deficiencies include the following: (1) 
Air Pollution Control Officer discretion in the approval of equivalent 
control systems; (2) inadequate recordkeeping requirements for key 
operating parameters for monitoring control systems; (3) the lack of 
necessary recordkeeping requirements to show compliance with exemption 
levels; and (4) the lack of a test method for measuring vapor pressure. 
In SCAQMD Rule 462 the deficiency is the definition of ``facility vapor 
leak'' that allows a measurement distance of 2 centimeters from the 
source according to procedures listed in EPA Test Method 21. This 2 
centimeter distance is inconsistent with EPA Test Method 21, which 
requires measurement at the surface of the source or 1 centimeter for 
moving parts. A detailed discussion of the rule provisions and 
evaluations has been provided in the PRs and in the technical support 
documents (TSDs) available at EPA's Region IX office (TSDs dated June 
19, 1992 (Rule 1103) and March 12, 1997 (Rule 462)).

III. Response to Public Comments

    A 30-day public comment period was provided in 57 FR 43960 and 62 
FR 26460. EPA received no comments on the PRs.

IV. EPA Action

    EPA is finalizing a limited approval and a limited disapproval of 
the above-referenced rules. The limited approval of these rules is 
being finalized under section 110(k)(3) in light of EPA's

[[Page 60785]]

authority pursuant to section 301(a) to adopt regulations necessary to 
further air quality by strengthening the SIP. The approval is limited 
in the sense that the rules strengthen the SIP. However, the rules do 
not meet the section 182(a)(2)(A) CAA requirement because of the rule 
deficiencies which were discussed in the PRs. Thus, in order to 
strengthen the SIP, EPA is granting limited approval of these rules 
under sections 110(k)(3) and 301(a) of the CAA. This action approves 
the rules into the SIP as federally enforceable rules.
    At the same time, EPA is finalizing the limited disapproval of 
these rules because they contain deficiencies that have not been 
corrected as required by section 182(a)(2)(A) of the CAA, and, as such, 
the rules do not fully meet the requirements of Part D of the Act. As 
stated in the PRs, upon the effective date of this FR, the 18-month 
clock for sanctions and the 24-month FIP clock will begin. Sections 
179(a) and 110(c). If the State does not submit the required 
corrections and EPA does not approve the submittal within 18 months of 
the FR, either the highway sanction or the offset sanction will be 
imposed at the 18 month mark. It should be noted that the rules covered 
by this FR have been adopted by the SCAQMD and are currently in effect 
in the SCAQMD. EPA's limited disapproval action will not prevent a 
local agency or EPA from enforcing these rules.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any state implementation plan. Each request for revision to 
the state implementation plan shall be considered separately in light 
of specific technical, economic, and environmental factors and in 
relation to relevant statutory and regulatory requirements.

V. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from E.O. 12866 review.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    SIP approvals under sections 110 and 30l, and subchapter I, part D 
of the CAA do not create any new requirements but simply approve 
requirements that the State is already imposing. Therefore, because the 
Federal SIP approval does not impose any new requirements, I certify 
that it does not have a significant impact on any small entities 
affected. Moreover, due to the nature of the Federal-State relationship 
under the CAA, preparation of a flexibility analysis would constitute 
Federal inquiry into the economic reasonableness of state action. The 
Clean Air Act forbids EPA to base its action concerning SIPS on such 
grounds. Union Electric Co. v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 
42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
costs to State, local, or tribal governments in the aggregate; or to 
private sector, of $100 million or more. Under Section 205, EPA must 
select the most cost-effective and least burdensome alternative that 
achieves the objectives of the rule and is consistent with statutory 
requirements. Section 203 requires EPA to establish a plan for 
informing and advising any small governments that may be significantly 
or uniquely impacted by the rule.
    EPA has determined that the approval action promulgated does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. This Federal action approves pre-
existing requirements under State or local law, and imposes no new 
Federal requirements. Accordingly, no additional costs to State, local, 
or tribal governments, or to the private sector, result from this 
action.

D. Submission to Congress and the General Accounting Office

    Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives and the Comptroller General of the 
General Accounting Office prior to publication of this rule in today's 
Federal Register. This rule is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compound.

    Dated: October 24, 1997.
Felicia Marcus,
Regional Administrator.

    Part 52, chapter I, title 40 of the Code of Federal Regulations is 
amended as follows:

PART 52--[AMENDED]

    1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.

Subpart F--California

    2. Section 52.220 is amended by adding paragraphs (c)(184)(i)(B)(5) 
and (225)(i)(A)(2) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (184) * * *
    (i) * * *
    (B) * * *
    (5) Rule 1103, adopted on December 7, 1990.
* * * * *
    (225) * * *
    (i) * * *
    (A) * * *
    (2) Rule 462, revised on June 9, 1995.
* * * * *
[FR Doc. 97-29863 Filed 11-12-97; 8:45 am]
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