[Federal Register Volume 62, Number 220 (Friday, November 14, 1997)]
[Rules and Regulations]
[Pages 61204-61205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30021]


      

[[Page 61203]]

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Part IV





Environmental Protection Agency





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40 CFR Part 69



United States Virgin Islands Final Ruling on Petition Pursuant to 
Section 325(a)(1) of the Clean Air Act; Final Rule

Federal Register / Vol. 62, No. 220 / Friday, November 14, 1997 / 
Rules and Regulations

[[Page 61204]]



ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 69

[FRL-5920-8]


United States Virgin Islands Final Ruling on Petition Pursuant to 
Section 325(a)(1) of the Clean Air Act

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rulemaking.

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SUMMARY: On June 10, 1997, the Environmental Protection Agency (EPA) 
proposed to approve a petition submitted by the Governor of the U.S. 
Virgin Islands which requested a waiver from certain Clean Air Act (the 
Act) restrictions to the Hess Oil Virgin Islands Corporation (HOVIC) in 
St. Croix. This exemption was proposed pursuant to section 325(a)(1) of 
the Act. Specifically, the waiver would allow HOVIC to implement an 
Intermittent Control Strategy (ICS) based on atmospheric conditions, 
which is prohibited by section 123 of the Clean Air Act. The ICS would 
alleviate potential exceedances of the National Ambient Air Quality 
Standards for sulfur dioxide. In this action, EPA is promulgating this 
waiver which allows the HOVIC refinery in St. Croix to implement an ICS 
under conditions which will be specified in a federally enforceable 
Prevention of Significant Deterioration of Air Quality (PSD) permit.

EFFECTIVE DATE: This rule will be effective December 15, 1997.

FOR FURTHER INFORMATION CONTACT: Annamaria Colecchia, Permitting 
Section, Air Programs Branch, Division of Environmental Planning and 
Protection, Environmental Protection Agency, Region 2 Office, 290 
Broadway, 25th Floor, New York, New York 10007-1866, Telephone: (212) 
637-4016.

SUPPLEMENTARY INFORMATION:

Background

    On May 7, 1996, the Governor of the United States Virgin Islands 
submitted a petition to the Administrator of the EPA for an exemption 
from certain requirements of the Act. The petition, submitted pursuant 
to Section 325(a)(1) of the Act, requests that the HOVIC refinery, 
located on the island of St. Croix, be granted an exemption from 
Section 123 of the Act which prohibits basing emission limitations 
using an ICS. HOVIC concurrently submitted a proposed modification to 
its existing Prevention of Significant Deterioration (PSD) permit to 
the EPA. Air quality analyses submitted in support of the proposed PSD 
modification indicated that although emissions of sulfur dioxide 
(SO<INF>2</INF>) will be substantially reduced below the amount HOVIC 
is currently permitted to emit, occasional exceedances of the 24-hr 
National Ambient Air Quality Standard (NAAQS) for this pollutant could 
occur, to the north of the facility, during those days that the wind 
blows onshore for a persistent length of time.
    The petition proposed to prevent these potential exceedances from 
occurring by reducing the sulfur content of the fuel processed during 
those time periods. Since this constitutes an ICS based on atmospheric 
conditions, reliance upon which in an implementation plan is 
specifically prohibited by the Act, the petition requested an exemption 
from this requirement through provisions available under Section 325 of 
the Act. Granting HOVIC's petition will make it possible for EPA to 
consider, in a separate action, HOVIC's request for a PSD permit 
modification. EPA is not entertaining HOVIC's PSD permit modification 
request in this action.
    EPA proposed approval of the petition on June 10, 1997 (62 FR 
31546) and this proposal contained the description of the petition, 
supporting documents and the minimum federally enforceable conditions 
under which the ICS shall be implemented. These conditions will also 
appear in a revised PSD permit. No comments were received on the 
proposed rulemaking. It should be noted, that for clarity EPA added 
some language into the CFR portion of this rulemaking which had 
previously been included in the preamble to this proposal (i.e., ICS 
must include a meteorological tower and ambient monitors).

Conclusion

    Since HOVIC met the requirements in section 325 of the Act and EPA 
received no comments during the public comment period, EPA is 
promulgating this waiver to the HOVIC refinery in St. Croix under the 
conditions specified in the proposed approval.

Administrative Requirements

Executive Order 12866

    This action has been classified as a Table 3 action by the 
Administrator under the procedures published in the Federal Register on 
January 19, 1989 (54 FR 2214-2215), as revised by a July 10, 1995, 
memorandum from Mary Nichols, Assistant Administrator for Air and 
Radiation. The Office of Management and Budget (OMB) has exempted this 
regulatory action from Executive Order 12866 review.

Regulatory Flexibility

    EPA has determined that it is not necessary to prepare a regulatory 
flexibility analysis in connection with this final rule. EPA has also 
determined that this rule will not have a significant economic impact 
on a substantial number of small entities. This is because the final 
rule applies only to the Hess Oil Virgin Islands refinery on St. Croix, 
Virgin Islands. This facility is not a small entity, and the action 
granting the petition will relieve the source from restrictions that 
would otherwise apply.

Unfunded Mandates Reform Act

    Under section 202 of the Unfunded Mandates Reform Act of 1995, EPA 
must prepare a budgetary impact statement to accompany any final rule 
that includes a Federal mandate that may result in estimated costs to 
State, local, or tribal governments in the aggregate, or to the private 
sector, of $100 million or more in any one year. 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 today's rule does not contain a Federal 
mandate that may result in expenditures of $100 million or more in any 
one year. This is because the rule is mainly deregulatory, relieving 
(subject to conditions) the sole regulated entity of limitations that 
would otherwise apply, and possibly resulting in resource savings to 
the Hess Oil Virgin Islands refinery that would not likely be obtained 
in the absence of today's rule. EPA has also determined that this rule 
contains no regulatory requirements that might significantly or 
uniquely affect small governments, since it imposes no additional 
significant or unique burdens on the Virgin Islands to implement 
today's rule.

List of Subjects in 40 CFR Part 69

    Environmental protection, Air pollution control.

    Dated: November 6, 1997.
Carol M. Browner,
Administrator.
    For the reasons stated in the preamble, 40 CFR part 69 is amended 
as set forth below:

[[Page 61205]]

PART 69--[AMENDED]

    1. The authority citation for part 69 continues to read as follows

    Authority: Sec 325(a), Clean Air Act, as amended (42 U.S.C. 
7625-1).

    2. Subpart D is added consisting of Sec. 69.41 to read as follows:

Subpart D--The U.S. Virgin Islands


Sec. 69.41  New exemptions.

    (a) Pursuant to section 325(a) of the Clean Air Act and a petition 
submitted by the Governor of the Virgin Islands, an exemption to 
section 123 of the Clean Air Act is granted to the Hess Oil Virgin 
Islands Corporation (HOVIC) at the St. Croix refinery. Specifically, 
the exemption waives the prohibition on the implementation of an 
Intermittent Control Strategy (ICS) based upon atmospheric conditions 
in order to set emission limitations. The emission limitations shall 
depend upon the sulfur content in the residual oil burned at the 
refinery.
    (b) The protocol to be followed for the ICS shall be set forth in a 
Prevention of Significant Deterioration of Air Quality (PSD) permit 
issued to HOVIC; and shall include as a minimum, the conditions listed 
in paragraphs (b)(1), (b)(2), (b)(3), and (b)(4) of this section.
    (1) HOVIC shall maintain a meteorological tower on its property for 
the purpose of the ICS which meets the required EPA QA/QC operating 
specifications. At a minimum, the wind direction data will be 
monitored, collected and reported as 1-hour averages, starting on the 
hour. If the average wind direction for a given hour is from within the 
designated sector, the wind will be deemed to have flowed from within 
the sector for that hour. Each ``day'' or ``block period'', for these 
purposes will start at midnight and end the following midnight.
    (2) HOVIC shall maintain SO2 ambient monitors and collect ambient 
SO2 concentration data for the purpose of implementing the ICS at 
nearby locations approved by EPA and specified in the PSD permit. The 
ambient monitors must follow the required EPA QA/QC operating 
specifications. At a minimum, the data will be collected according to 
EPA approved State and Local Ambient Monitoring Stations procedures 
found at 40 CFR 58.20, but will, for these purposes, be averaged by the 
hour, starting on the hour.
    (3) The switch to a lower sulfur fuel (0.5%) will take place when 
paragraphs (b)(3)(i) or (b)(3)(ii) of this section are met.
    (i) The winds blow from a 45 degree sector defined as 143 to 187 
degrees inclusive, where zero degrees is due north, for at least 6 
consecutive hours during a 24-hour block period or any 12 non-
consecutive hours during a 24 hour block period.
    (ii) One of HOVIC's ICS monitors measures an average ambient SO2 
concentration that is 75% of the 24-hour NAAQS during any rolling 24-
hour average. (75% of the 24-hour NAAQS = 274 ug/m3 or 0.105 ppm).
    (4) The switch back to the higher sulfur fuel (1.0%) may occur if 
the conditions in paragraphs (b)(4)(i), (b)(4)(ii), and (b)(4)(iii) of 
this section are met.
    (i) If the ICS was triggered by paragraph (b)(3)(i) of this 
section, the switch back may occur when the winds blow outside the 
sector listed in paragraph (b)(3)(i) of this section for at least 3 
consecutive hours following the period during which the winds were 
blowing inside the sector.
    (ii) If the ICS was triggered by paragraph (b)(3)(ii) of this 
section, the switch back may occur after all of HOVIC's ICS ambient 
monitors measure a 24-hour average concentration which is less than 75% 
of the NAAQS for at least one 24-hour block period following any 
occurrence when the monitor measured the concentration which was 75% of 
the NAAQS.
    (iii) If the ICS was triggered by both paragraphs (b)(3)(i) and 
(b)(3)(ii) of this section, the switch back may occur when both of the 
conditions in paragraphs (b)(4)(i) and (b)(4)(ii) of this section are 
met.
    (c) The protocol may be modified by EPA to protect against 
exceedances of the sulfur dioxide NAAQS.
    (d) In the event that there is an exceedance of the NAAQS, HOVIC 
will report the exceedance to EPA and recommend corrective action as 
well as amendments to the protocol to ensure the protection of the 
NAAQS.
    (e) HOVIC must comply with all fuel switching requirements, 
contained in HOVIC's PSD permit.
    (f) This exemption shall take effect only in the event that a final 
PSD permit modification becomes effective.
    (g) The Administrator may terminate the exemption through 
rulemaking procedures upon determining that HOVIC's use of the ICS is 
causing or contributing to an exceedance of the NAAQS.

[FR Doc. 97-30021 Filed 11-13-97; 8:45 am]
BILLING CODE 6560-50-P