[Federal Register Volume 65, Number 208 (Thursday, October 26, 2000)]
[Rules and Regulations]
[Pages 64148-64156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27029]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX-119-1-7448a; FRL-6886-1]


Approval and Promulgation of Implementation Plans; Texas; Water 
Heaters, Small Boilers, and Process Heaters; Agreed Orders; Major 
Stationary Sources of Nitrogen Oxides in the Beaumont/Port Arthur Ozone 
Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The EPA is taking direct final action on revisions to the 
Texas State Implementation Plan (SIP). This rulemaking covers four 
separate actions. First, we are approving revisions to the Nitrogen 
Oxides ( NO<INF>X</INF>) SIP to add a rule for water heaters, small 
boilers, and process heaters sold and installed in Texas (the Texas 
Water Heater Rule). This rule will contribute to attainment of the 1-
hour ozone standard in the Beaumont/Port Arthur (B/PA), Houston/
Galveston (H/GA), and Dallas/Fort Worth (D/FW) nonattainment areas and 
will contribute to continued maintenance of the standard in the rest of 
the State of Texas. Second, we are approving revisions to the Texas 
NO<INF>X</INF> SIP for certain major stationary point source categories 
in the B/PA ozone nonattainment area. These new limits for certain 
stationary point sources will contribute to attainment of the 1-hour 
ozone standard in the B/PA area. Third, we are approving revisions to 
the existing approved Texas NO<INF>X</INF> Reasonably Available Control 
Technology (RACT) SIP because the changes are administrative in nature. 
Fourth, we are approving two Agreed Orders between the State of Texas 
and two companies in Northeast Texas. These Orders will contribute to 
attainment of the 1-hour ozone standard in the B/PA, H/GA, and D/FW 
nonattainment areas and will contribute to continued maintenance of the 
standard in the eastern half of the State of Texas.
    The EPA is approving these SIP revisions to regulate emissions of 
NO<INF>X</INF> as meeting the requirements of the Federal Clean Air Act 
(the Act).

DATES: This rule is effective on December 26, 2000, without further 
notice, unless EPA receives adverse comment by November 27, 2000. If 
EPA receives such comment, EPA will publish a timely withdrawal in the 
Federal Register informing the public that this rule will not take 
effect.

ADDRESSES: Written comments on this action should be addressed to Mr. 
Thomas H. Diggs, Chief, Air Planning Section (6PD-L), at the EPA Region 
6 Office listed below. Copies of documents relevant to this action 
including the Technical Support Document (TSD) are available for public 
inspection during normal business hours at the following locations. 
Anyone wanting to examine these documents should make an appointment 
with the appropriate office at least two working days in advance.
    Environmental Protection Agency, Region 6, Air Planning Section 
(6PD-L), 1445 Ross Avenue, Dallas, Texas 75202-2733.
    Texas Natural Resource Conservation Commission, Office of Air 
Quality, 12124 Park 35 Circle, Austin, Texas 78753.

FOR FURTHER INFORMATION CONTACT: Mr. Alan Shar, P.E., Air Planning 
Section (6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-
2733, telephone (214) 665-6691.

Table of Contents

1. What action are we taking?
2. What are the April 30, 2000, SIP revision requirements for the 
``Texas Water Heater Rule?'
3. What source categories will the April 30, 2000, SIP revision for 
the B/PA area affect?
4. What are the existing NO<INF>X</INF> emissions specifications in 
the Texas NO<INF>X</INF> RACT SIP?
5. What are the NO<INF>X</INF> emissions specifications of the April 
30, 2000, SIP revision for the B/PA area?
6. What are nitrogen oxides?
7. What is a nonattainment area?
8. What are the Clean Air Act's requirements for controlling 
NO<INF>X</INF> emissions?
9. What are definitions of major sources for NO<INF>X</INF>?
10. What is a State Implementation Plan?
11. What is the Federal approval process for a SIP?
12. What does Federal approval of a SIP mean to me?
13. What areas in Texas will this action affect?
14. What does the Agreed Order between the TNRCC and Aloca, Inc., 
require?
15. What does the Agreed Order between the TNRCC and Eastman 
Chemical Company, Texas Operations require?

SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' and 
``our'' means EPA. Please note that if we receive adverse comment(s) on 
an amendment, paragraph, or section of this rule and if that provision 
is independent of the remainder of the rule, we may adopt as final 
those provisions of the rule that are not the subject of an adverse 
comment.

1. What Action Are We Taking?

    The EPA previously approved the Texas NO<INF>X</INF> rules at 30 
TAC, Chapter 117, ``Control of Air Pollution From Nitrogen Compounds'' 
as the Texas NO<INF>X</INF> RACT SIP for the H/GA, D/FW, and B/PA 1-
hour ozone nonattainment areas on September 1, 2000 (65 FR 53172). On 
April 30, 2000, the Governor of Texas submitted rule revisions to the 
30 TAC, Chapter 117, ``Control of Air Pollution From Nitrogen 
Compounds,'' as a revision to the Texas NO<INF>X</INF> SIP for certain 
major stationary point source categories operating in the B/PA ozone 
nonattainment area. Texas submitted this SIP revision to us as a part 
of the additional local NO<INF>X</INF> reductions needed for the B/PA 
area to attain the 1-hour ozone standard. These new rules set revised 
emission specifications in the B/PA area for electric utility boilers, 
industrial, commercial or institutional boilers, and certain process 
heaters. On April 30, 2000, the Governor of Texas also submitted rule 
revisions to the 30 TAC, Chapter 117, ``Control of Air Pollution From 
Nitrogen Compounds,'' as a revision to the Texas NO<INF>X</INF> SIP 
adding controls for another source category--water heaters, small 
boilers, and process heaters sold and installed in Texas. Texas 
submitted this SIP revision to us as a part of the NO<INF>X</INF> 
reductions needed for the H/GA, D/FW, and B/PA 1-hour ozone 
nonattainment areas to demonstrate attainment, to strengthen the 
existing Texas SIP, and to show continued maintenance of the standard 
in the rest of the State of Texas. On April 30, 2000, the Governor of 
Texas also submitted rule revisions to the 30 TAC, Chapter 117, 
``Control of Air Pollution From Nitrogen Compounds,'' as a revision to 
the Texas NO<INF>X</INF> RACT SIP that were purely administrative 
changes without any substantive effects.
    On April 30, 2000, the Governor of Texas submitted to us two Agreed 
Orders entered into between the State and two companies in the eastern 
half of Texas. Texas submitted this SIP revision to us as a part of the 
additional emission reductions needed for the H/GA, D/FW, and B/PA 1-
hour ozone nonattainment areas to demonstrate attainment, to strengthen 
the existing Texas SIP, and to show continued maintenance of the 
standard in the eastern half of the State of Texas.
    In this rulemaking we are taking four separate actions. First, 
under part D of the Act, we are specifically approving a

[[Page 64149]]

new part to the Texas NO<INF>X</INF> SIP that goes beyond the approved 
Texas NO<INF>X</INF> RACT SIP for the B/PA area. The new part is (1) 
the addition of new sections 117.104 concerning Gas-Fired Steam 
Generation, 117.106 concerning Emission Specifications for Attainment 
Demonstrations, 117.108 concerning System Cap, 117.116 concerning Final 
Control Plan Procedures for Attainment Demonstration Emission 
Specifications, 117.206 concerning Emission Specifications for 
Attainment Demonstrations, and 117.216 concerning Final Control Plan 
Procedures for Attainment Demonstration Emission Specifications as they 
relate to the B/PA ozone nonattainment area; and (2) the repeal of 
sections 117.109 and 117.601 as they relate to the B/PA ozone 
nonattainment area. We are approving this new part under part D of the 
Act because the State is relying upon these additional NO<INF>X</INF> 
reductions to demonstrate attainment of the 1-hour ozone standard in 
the B/PA area. Secondly, we are approving another new part to the Texas 
NO<INF>X</INF> SIP, the addition of new sections 117.460 concerning 
Definitions, 117.461 concerning Applicability, 117.463 concerning 
Exemptions, 117.465 concerning Emission Specifications, 117.467 
concerning Certification Requirements, and 117.469 concerning 
Notification and Labeling Requirements. In this document we will refer 
to the new sections 117.460-117.469 as the ``Texas Water Heater Rule.'' 
We are approving the ``Texas Water Heater Rule'' as a part of the Texas 
NO<INF>X</INF> SIP under part D of the Act because the State is relying 
upon this rule to demonstrate attainment for the H/GA, D/FW, and B/PA 
areas, and we are approving the rule under sections 110 and 116 of the 
Act because the State is relying upon the reductions to show continued 
maintenance of the standard in the rest of the State of Texas and as a 
strengthening of the existing Texas SIP. Third, we are specifically 
approving the administrative revisions to sections 117.101-117.121, 
117.201-117.223, 117.510, 117.520, and 117.570. We are approving these 
administrative, non-substantive revisions to the existing approved 
Texas NO<INF>X</INF> RACT SIP because they make no substantive changes 
to the approved RACT rules, and they add headings to distinguish 
between the RACT rules for the nonattainment areas and the rules relied 
upon by the State for attainment demonstration purposes. Fourth, we are 
approving two Agreed Orders between the TNRCC and Alcoa, Inc., and the 
TNRCC and Eastman Chemical Company, Texas Operations. We are approving 
these two Orders under part D of the Act because the State is relying 
upon the NO<INF>X</INF> reductions from these two Orders to demonstrate 
attainment of the 1-hour ozone standard in the H/GA, D/FW, and B/PA 
areas, and under sections 110 and 116 of the Act because the State is 
relying upon the Orders for continued maintenance of the standard in 
the eastern half of the State of Texas and as a strengthening of the 
existing Texas SIP. For information about these two Agreed Orders, see 
sections 16 and 17 of this document.
    Texas has other source specific Agreed Orders/ permits that we 
inadvertently did not include in the conversion of the previously-
codified Texas SIP to the new Incorporation by Reference format. See 64 
FR 36586, published on July 7, 1999. In this document we are not 
correcting the new tables to reflect those Texas' source specific 
Agreed Orders/ permits we approved and codified under the previous 
format. We will correct our tables for those Texas' source specific 
Agreed Orders/ permits in a future Federal Register notice.
    For more information on the Texas NO<INF>X</INF> SIP revision and 
our evaluation of these rules, please refer to our TSD dated September 
2000.

2. What Are the April 30, 2000, SIP Revision Requirements for the 
``Texas Water Heater Rule?''

    The following two tables contain a summary of the April 30, 2000, 
``Texas Water Heater Rule'' requirements for Water Heaters, Small 
Boilers, and Process Heaters sold and installed in Texas.

      Table 1.--Size Classification for ``Texas Water Heater Rule''
------------------------------------------------------------------------
                 Maximum rated capacity (Btu/Hr)                   Type
------------------------------------------------------------------------
Capacity <ls-thn-eq> 75,000.....................................       0
400,000 <ls-thn-eq> Capacity > 75,000...........................       1
2,000,000 <ls-thn-eq> Capacity > 400,000........................       2
------------------------------------------------------------------------


           Table II.--Types, Dates and NO<INF>X</INF> Emission Specifications for the ``Texas Water Heater Rule''
----------------------------------------------------------------------------------------------------------------
  Type                  Date                    NO<INF>x</INF> emission specification                Explanation
----------------------------------------------------------------------------------------------------------------
     0   Manufactured on or after July 1,   40 ng/joule of heat output or 55   No later than December 31, 2004.
          2002.                              ppmv at 3% oxygen dry basis.
     0   Manufactured on or after January   10 ng/joule of heat output or 15
          1, 2005.                           ppmv at 3% oxygen dry basis.
     1   Manufactured on or after July 1,   40 ng/joule of heat output or 55
          2002.                              ppmv at 3% oxygen dry basis.
     2   Manufactured on or after July 1,   30 ppmv at 3% oxygen dry basis or
          2002.                              0.037 lb/MMBtu/hr of heat input.
----------------------------------------------------------------------------------------------------------------

    We are approving the NO<INF>X</INF> emission specifications of the 
``Texas Water Heater Rule'' under part D of the Act because the State 
is relying upon them to demonstrate attainment in the B/PA, D/FW, and 
H/GA areas. We are also approving them under sections 110 and 116 
because they strengthen the Texas SIP, and the State is relying upon 
them for continued maintenance of the standard in the rest of the 
State. The rules do not mandate use of a specific burner technology, 
and they do not require retrofitting of existing natural gas-fired 
water heaters, small boilers, and process heaters. For a comparison of 
this rule with the water heater rule of another state, please refer to 
our TSD dated September 2000.

3. What Source Categories Will the April 30, 2000, SIP Revision for 
the B/PA Area Affect?

    These revisions will affect NO<INF>X</INF> emissions from the 
following source categories in the B/PA ozone nonattainment area: (1) 
Utility boilers, steam generators, auxiliary steam boilers, and gas 
turbines used to generate electricity. See section 117.101 of this 
rule; and (2) commercial, institutional, or industrial boilers (non-
utility boiler) and process heaters with a maximum rated capacity of 40 
million British thermal units (Btu) per hour or greater.

[[Page 64150]]

4. What Are the Existing NO<INF>X</INF> Emissions Specifications in 
the Texas NO<INF>X</INF> RACT SIP?

    The following table contains a summary of the type of affected 
sources, their corresponding emission limit, and relevant applicability 
information for these sources in the existing approved Texas 
NO<INF>X</INF> RACT SIP.

Table III.--Summary of the Texas NO<INF>X</INF> RACT SIP's Rules for Sources in the
                H/GA, B/PA, and D/FW Nonattainment Areas
------------------------------------------------------------------------
                                                         Additional
            Source                  NO<INF>X</INF> limit           information
------------------------------------------------------------------------
Utility Boilers...............  0.26 lb/MMBtu....  Natural gas or a
                                                    combination of
                                                    natural gas and
                                                    waste oil, 24-hour
                                                    rolling average.
Utility Boilers...............  0.20 lb/MMBtu....  Natural gas or a
                                                    combination of
                                                    natural gas and
                                                    waste oil, 30-day
                                                    rolling average.
Utility Boilers...............  0.38 lb/MMBtu....  Coal, tangentially-
                                                    fired, 24-hour
                                                    rolling average.
Utility Boilers...............  0.43 lb/MMBtu....  Coal, wall-fired, 24-
                                                    hour rolling
                                                    average.
Utility Boilers...............  0.30 lb/MMBtu....  Fuel oil only, 24-
                                                    hour rolling
                                                    average.
Utility Boilers...............  [a(0.26) +         Oil and gas mixture,
                                 b(0.30)]/(a + b).  24-hour rolling
                                                    average, where a =
                                                    percent natural gas
                                                    heat input; b =
                                                    percent fuel oil
                                                    heat input.
Stationary Gas Turbines.......  42 parts per       @ 15% O2, natural
                                 million volume     gas, <gr-thn-eq>30
                                 dry (ppmvd)        Mega Watt (mW)
                                 basis.             annual electric
                                                    output <gr-thn-
                                                    eq>2500 hour  x  mW
                                                    rating.
Stationary Gas Turbines.......  65 parts per       @ 15% O2, fuel oil.
                                 million volume
                                 dry (ppmvd).
Stationary Gas Turbines.......  0.20 lb/MMBtu....  Natural gas, peaking
                                                    units, annual
                                                    electric output 2500
                                                    hour  x  mW rating.
Stationary Gas Turbines.......  0.30 lb/MMBtu....  Fuel oil, peaking
                                                    units, annual
                                                    electric output 2500
                                                    hour  x  mW rating.
Non-Utility Boilers...........  0.10 lb/MMBtu....  Natural gas, low heat
                                                    release and T  200
                                                    deg.F, capacity <gr-
                                                    thn-eq> 100 MMBtu/
                                                    hr.
Non-Utility Boilers...........  0.15 lb/MMBtu....  Natural gas, low heat
                                                    release, preheated
                                                    air 200 <ls-thn-eq>T
                                                     400  deg.F,
                                                    capacity <gr-thn-eq>
                                                    100 MMBtu/hr.
Non-Utility Boilers...........  0.20 lb/MMBtu....  Natural gas, low heat
                                                    release, preheated
                                                    air T <gr-thn-eq>
                                                    400  deg.F, capacity
                                                    <gr-thn-eq> 100
                                                    MMBtu/hr.
Non-Utility Boilers...........  0.20 lb/MMBtu....  Natural gas, high
                                                    heat release,
                                                    without air or
                                                    preheated air T  250
                                                     deg.F, capacity <gr-
                                                    thn-eq> 100 MMBtu/
                                                    hr.
Non-Utility Boilers...........  0.24 lb/MMBtu....  Natural gas, high
                                                    heat release,
                                                    preheated air 250
                                                    <ls-thn-eq> T  500
                                                    deg.F, capacity <gr-
                                                    thn-eq> 100 MMBtu/
                                                    hr.
Non-Utility Boilers...........  0.28 lb/MMBtu....  Natural gas, high
                                                    heat release,
                                                    preheated air T <gr-
                                                    thn-eq> 500  deg.F,
                                                    capacity <gr-thn-eq>
                                                    100 MMBtu/hr.
Process Heaters...............  0.10 lb/MMBtu....  Natural gas,
                                                    preheated air T ,
                                                    200  deg.F, capacity
                                                    <gr-thn-eq> 100
                                                    MMBtu/hr.
Process Heaters...............  0.13 lb/MMBtu....  Natural gas,
                                                    preheated air 200
                                                    <ls-thn-eq>T  400
                                                    deg.F, capacity <gr-
                                                    thn-eq> 100 MMBtu/
                                                    hr.
Process Heaters...............  0.18 lb/MMBtu....  Natural gas, low heat
                                                    release, preheated
                                                    air T <gr-thn-eq>
                                                    400  deg.F, capacity
                                                    <gr-thn-eq> 100
                                                    MMBtu/hr.
Process Heaters...............  0.10 lb/MMBtu....  Natural gas, firebox
                                                    T  1400  deg.F,
                                                    capacity <gr-thn-eq>
                                                    100 MMBtu/hr.
Process Heaters...............  0.125 lb/MMBtu...  Natural gas, firebox
                                                    1400 <ls-thn-eq> T
                                                    1800  deg.F,
                                                    capacity <gr-thn-eq>
                                                    100 MMBtu/hr.
Process Heaters...............  0.15 lb/MMBtu....  Natural gas, firebox
                                                    T <gr-thn-eq> 1800
                                                    deg.F, capacity <gr-
                                                    thn-eq> 100 MMBtu/
                                                    hr.
Process Heaters and...........  0.30 lb/MMBtu....  Liquid fuel, capacity
Non-Utility Boilers...........                      <gr-thn-eq> 100
                                                    MMBtu/hr.
Process Heaters and...........  0.30 lb/MMBtu....  Wood fuel, capacity
Non-Utility Boilers...........                      <gr-thn-eq> 100
                                                    MMBtu/hr.
Stationary Gas Turbines.......  42 parts per       @ 15% O2, rating <gr-
                                 million volume     thn-eq> 10 mW.
                                 dry (ppmvd)
                                 basis.
Reciprocating Internal          2.0 gram/hp-hr...  Natural gas, rich
 Combustion Engines.                                burn, stationary,
                                                    capacity <gr-thn-eq>
                                                    150 hp in H/GA,
                                                    capacity <gr-thn-
                                                    eq>300 hp in B/PA.
Absorbers of Adipic Acid......  2.5 lb/ton of      24-hr rolling
Production Units..............   acid produced.     average.
Absorbers of Nitric Acid        2.0 lb/ton of      24-hr rolling
 Production Units.               acid produced.     average.
Reciprocating Internal          3.0 gram/hp-hr...  Natural gas, lean
 Combustion Engines.                                burn, stationary,
                                                    capacity <gr-thn-eq>
                                                    150 hp in H/GA,
                                                    capacity <gr-thn-
                                                    eq>300 hp in B/PA or
                                                    D/FW. Also includes
                                                    a 3.0 gram/hp-hr
                                                    limit for CO.
------------------------------------------------------------------------


[[Page 64151]]

5. What Are the NO<INF>X</INF> Emissions Specifications of the 
April 30, 2000, SIP Revision for the Particular Source Categories 
in the B/PA Area?

    The following table contains a summary of the type of affected 
sources, their corresponding emission limit, and relevant applicability 
information for the major stationary point source categories that Texas 
has developed for attainment demonstration purposes, for the B/PA ozone 
nonattainment area.
    The NO<INF>X</INF> emission specifications that Texas has submitted 
to us, for attainment demonstration purposes for the B/PA area, are 
more stringent than the Texas NO<INF>X</INF> SIP's RACT emission 
specifications in the B/PA area. We are approving these rules under 
part D of the Act because the State relies upon them for demonstrating 
attainment of the 1-hour ozone standard in the B/PA area.

   Table IV.--Summary of the Texas' NO<INF>X</INF> Emission Specifications for Attainment Demonstration in the B/PA Area
----------------------------------------------------------------------------------------------------------------
                   Source                                     NO<INF>X</INF> limit                   Additional Information
----------------------------------------------------------------------------------------------------------------
Utility Boilers............................  0.10 lb/MMBtu heat input...................  Daily average basis
                                                                                           from any utility
                                                                                           boiler. Unless
                                                                                           provided in sections
                                                                                           117.108 or 117.570.
                                                                                           Includes a 400 ppmv
                                                                                           of CO limit at 3%
                                                                                           oxygen dry basis (or
                                                                                           0.30 lb CO/MMBtu heat
                                                                                           imput as alternate).
                                                                                           Also 10 ppmv of
                                                                                           ammonia limit on a
                                                                                           one-hour averaging
                                                                                           period.
Non-Utility Boilers........................  0.10 lb/MMBtu heat input...................  Natural gas, maximum
                                                                                           rated heat capacity
                                                                                           of 40 MMBtu/Hr or
                                                                                           more. Rolling 30-day
                                                                                           average period or one-
                                                                                           hour average.
                                                                                           Includes a 400 ppmv
                                                                                           of CO limit at 3%
                                                                                           oxygen dry basis.
                                                                                           Also a 5 ppmv of
                                                                                           ammonia limit on a
                                                                                           one-hour averaging
                                                                                           period.
Process Heaters............................  0.08 lb/MMBtu heat input...................  Natural gas, maximum
                                                                                           rated heat capacity
                                                                                           of 40 MMBtu/Hr or
                                                                                           more. Includes a 400
                                                                                           ppmv of CO limit at
                                                                                           3% oxygen dry basis.
                                                                                           Also 5 ppmv of
                                                                                           ammonia limit on a
                                                                                           one-hour averaging
                                                                                           period.
----------------------------------------------------------------------------------------------------------------

    We are also approving under section 110 of the Act, the emissions 
specifications for Carbon monoxide (CO) and ammonia on the basis that 
these emission specifications/ parameters will strengthen the existing 
Texas SIP.

6. What Are Nitrogen Oxides?

    Nitrogen oxides belong to the group of criteria air pollutants. The 
NO<INF>X</INF> result from burning fuels, including gasoline and coal. 
Nitrogen oxides react with volatile organic compounds (VOC) to form 
ozone or smog, and are also major components of acid rain.

7. What Is a Nonattainment Area?

    A nonattainment area is a geographic area in which the level of a 
criteria air pollutant is higher than the level allowed by Federal 
standards. A single geographic area may have acceptable levels of one 
criteria air pollutant but unacceptable levels of one or more other 
criteria air pollutants; thus, a geographic area can be attainment for 
one criteria pollutant and nonattainment for another criteria pollutant 
at the same time.

8. What Are the Clean Air Act's Requirements for Controlling 
NO<INF>X</INF> Emissions?

    Section 182(b)(2) requires States, with areas classified as 
moderate ozone nonattainment, to implement RACT with respect to all 
major sources of VOCs. Section 182(f) states that, ``the plan 
provisions required under this subpart for major stationary sources of 
VOCs shall also apply to major stationary sources (as defined in 
section 302 and subsections (c), (d), and (e) of the section) of oxides 
of nitrogen.'' This NO<INF>X</INF> RACT requirement also applies to all 
major sources in ozone nonattainment areas with higher than moderate 
nonattainment classifications.
    On November 25, 1992 (57 FR 55620), we published a document of 
proposed rulemaking entitled ``State Implementation Plans; Nitrogen 
Oxides Supplement to the General Preamble; Clean Air Act Amendments of 
1990 Implementation of Title I; Proposed Rule,'' (the NO<INF>X</INF> 
Supplement). The NO<INF>X</INF> Supplement describes and provides 
preliminary guidance on the requirements of section 182(f) of the Act. 
You should refer to the NO<INF>X</INF> supplement for further 
information on the NO<INF>X</INF> requirements. The EPA's mandatory 
Economic Incentive Program (EIP) rules for criteria pollutants appear 
in 40 CFR part 51, Subpart U (59 FR 16710). The EPA's discretionary EIP 
guidelines concerning emission trading appear in the 1994 EIP guidance 
document (59 FR 16690). In addition, other EPA guidance memoranda, such 
as those included in the ``NO<INF>X</INF> Policy Document for the Clean 
Air Act of 1990,'' (EPA-452/R96-005, March 1996), could provide you 
with more information about NO<INF>X</INF> requirements.
    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC (and NO<INF>X</INF>) emissions not covered by 
either a pre- or post-enactment Control Techniques Guideline (CTG) 
document. There were no NO<INF>X</INF> CTGs issued before enactment and 
we have not issued a CTG document for any NO<INF>X</INF> sources since 
enactment of the Act. However, we published Alternative Control 
Technique (ACT) documents for several industrial categories. States can 
use the information contained in the ACTs to develop their 
NO<INF>X</INF> RACT rules. Furthermore, NO<INF>X</INF> emissions beyond 
RACT may be needed in a nonattainment area in order for that area to 
demonstrate attainment. Section 182(c)(2)(A) and section 172(c) require 
that the SIP include control measures, means, or techniques, as may be 
necessary or appropriate, to provide for attainment of the standard. 
Section 181(a)(1) requires that each area attain the ozone standard as 
expeditiously as practicable.

9. What Are Definitions of Major Sources for NO<INF>X</INF>?

    Section 302 of the Act generally defines ``major stationary 
source'' as a facility or source of air pollution which emits, when 
uncontrolled, 100 tpy or more of air pollution. This general definition 
applies unless another specific provision of the Act explicitly defines 
major source differently. Therefore, for NO<INF>X</INF>, a major source 
is one which emits, when uncontrolled, 100 tpy or more of 
NO<INF>X</INF> in marginal and moderate areas. According to section 
182(c) of the Act, a major source in a serious nonattainment area is a 
source that emits, when uncontrolled, 50 tpy or more of NO<INF>X</INF>.
    According to section 182(d) of the Act, a major source in a severe 
nonattainment area is a source that emits, when uncontrolled, 25 tpy or 
more of NO<INF>X</INF>.
    The H/GA area is a severe ozone nonattainment area, so the major 
source

[[Page 64152]]

size for the H/GA area is 25 tpy or more, when uncontrolled. The B/PA 
area is a moderate ozone nonattainment area, so the major source size 
for the B/PA area is 100 tpy or more, when uncontrolled. The D/FW area 
is a serious ozone nonattainment area, so the major source size for the 
D/FW area is 50 tpy or more, when uncontrolled.

10. What Is a State Implementation Plan?

    Section 110 of the Act requires states to develop air pollution 
regulations and control strategies to ensure that state air quality 
meets the National Ambient Air Quality Standards (NAAQS) that EPA has 
established. Under section 109 of the Act, EPA established the NAAQS to 
protect public health. The NAAQS address six criteria pollutants. These 
criteria pollutants are: carbon monoxide, nitrogen dioxide, ozone, 
lead, particulate matter, and sulfur dioxide.
    Each state must submit these regulations and control strategies to 
us for approval and incorporation into the federally enforceable SIP. 
Each state has a SIP designed to protect air quality. These SIPs can be 
extensive, containing state regulations or other enforceable documents 
and supporting information such as emission inventories, monitoring 
networks, and modeling demonstrations.

11. What Is the Federal Approval Process for a SIP?

    When a state wants to incorporate its regulations into the 
federally enforceable SIP, the state must formally adopt the 
regulations and control strategies consistent with state and Federal 
requirements. This process includes a public notice, a public hearing, 
a public comment period, and a formal adoption by a state-authorized 
rulemaking body.
    Once a state adopts a rule, regulation, or control strategy, the 
state may submit the adopted provisions to us and request that we 
include these provisions in the federally enforceable SIP. We must then 
decide on an appropriate Federal action, provide public notice on this 
action, and seek additional public comment regarding this action. If we 
receive adverse comments, we must address them prior to a final action.
    Under section 110 of the Act, when we approve all state regulations 
and supporting information, those state regulations and supporting 
information become a part of the federally approved SIP. You can find 
records of these SIP actions in the Code of Federal Regulations (CFR) 
at Title 40, part 52, entitled ``Approval and Promulgation of 
Implementation Plans.'' The actual state regulations that we approved 
are not reproduced in their entirety in the CFR but are ``incorporated 
by reference,'' which means that we have approved a given state 
regulation with a specific effective date.

12. What Does Federal Approval of a SIP Mean to Me?

    A state may enforce state regulations before and after we 
incorporate those regulations into a federally approved SIP. After we 
incorporate those regulations into a federally approved SIP, both EPA 
and the public may also take enforcement action against violators of 
these regulations.

13. What Areas in Texas Will This Action Affect?

    The rule revisions concerning major stationary sources that we are 
approving today affect the B/PA ozone nonattainment areas. The B/PA 
area includes the following counties: Hardin, Jefferson, and Orange. If 
you are in one of these counties, you should refer to the Texas 
NO<INF>X</INF> rules to determine if and how today's action will affect 
you. The Texas Water Heater Rule that we are approving today affects 
the entire state of Texas. The administrative revisions that we are 
approving today should have no substantive effect upon the B/PA, H/GA, 
and D/FW ozone nonattainment areas. To find out about the effect of 
today's action approving the two Orders, see sections 14 and 15, below.

14. What Does the Agreed Order Between the TNRCC and Aloca, Inc., 
Require?

    The former name of Alcoa, Inc., was Aluminum Company of America 
(the Company). Alcoa, is a producer of primary aluminum, fabricated 
aluminum, and alumina. The Company is near Rockdale, Milam County, 
Texas. The TNRCC and the Company have entered into this enforceable 
agreement to limit emissions of NO<INF>X</INF> from this operation 
because the State is relying upon these NO<INF>X</INF> reductions to 
demonstrate attainment of the 1-hour ozone standard in the B/PA, D/FW, 
and H/GA areas, and for continued maintenance of the standard in the 
eastern half of the State and as a strengthening of the existing Texas 
SIP.
    The Agreed Order number is 2000-0032-SIP and has 21 stipulations. 
The TNRCC passed and approved this Agreed Order on April 19, 2000. As a 
result of this agreement the Company will have to reduce its 
NO<INF>X</INF> emissions by a factor of 30%, calculated as a reduction 
of 5,838.2 tpy. The baseline for this calculated reduction is the 
TNRCC's 1997 Emission Inventory. The maximum allowable NO<INF>X</INF> 
emissions from Alcoa under the Order is 13,622.4 tpy. Furthermore, no 
later than December 31, 2002, each boiler has a NO<INF>X</INF> 
emissions limit of 1,168.0 pound per hour (lb/hr) and 5,115.8 tpy 
(stipulation number 10). We have included the supporting calculations 
for this Agreed Order with our TSD dated September 2000.

15. What Does the Agreed Order Between the TNRCC and Eastman 
Chemical Company, Texas Operations Require?

    The Eastman Chemical Company, Texas Operations (the Company) owns 
and operates a chemical and plastics manufacturing plant at Highway 
149, Kodak Boulevard, Longview, Harrison County, Texas. The TNRCC and 
the Company have entered into this enforceable agreement to limit 
emissions of NO<INF>X</INF> and VOC from this operation because the 
State is relying upon these reductions to demonstrate attainment of the 
1-hour ozone standard in the H/GA, D/FW, and B/PA areas, and to show 
continued maintenance of the standard in the eastern half of the State 
and as a strengthening of the existing Texas SIP.
    The Agreed Order number is 2000-0033-SIP and has 29 stipulations. 
The TNRCC passed and approved this Agreed Order on April 19, 2000. As a 
result of this agreement the Company will have to reduce its 
NO<INF>X</INF> emissions by 1671.5 tpy and its VOC emissions by 386 
tpy. The baseline for calculating the reductions is the TNRCC's 1997 
Emission Inventory. The maximum allowable NO<INF>X</INF> and VOC 
emissions are 5,868 and 3,706 tpy, respectively. We have included the 
supporting calculations for this Agreed Order with our TSD dated 
September 2000.

Final Action

    The EPA is publishing this rule without prior proposal because we 
view this as a noncontroversial amendment and anticipate no adverse 
comments. However, in the ``Proposed Rules'' section of today's Federal 
Register publication, we are publishing a separate document that will 
serve as the proposal to approve the SIP revision if adverse comments 
are received. This rule will be effective on December 26, 2000, without 
further notice unless we receive adverse comment by November 27, 2000. 
If EPA receives adverse comments, we will publish a timely withdrawal 
in the Federal Register informing the public that the rule will not 
take effect. We will address all

[[Page 64153]]

public comments in a subsequent final rule based on the proposed rule. 
We will not institute a second comment period on this action. Any 
parties interested in commenting must do so at this time.

Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget. This action 
merely approves state law as meeting federal requirements and imposes 
no additional requirements beyond those imposed by state law. 
Accordingly, the Administrator certifies that this rule will not have a 
significant economic impact on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because 
this rule approves pre-existing requirements under state law and does 
not impose any additional enforceable duty beyond that required by 
state law, it does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4). For the same reason, this 
rule also does not significantly or uniquely affect the communities of 
tribal governments, as specified by Executive Order 13084 (63 FR 27655, 
May 10, 1998). This rule will not have substantial direct effects on 
the States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132 (64 
FR 43255, August 10, 1999), because it merely approves a state rule 
implementing a federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the Clean 
Air Act. This rule also is not subject to Executive Order 13045 (62 FR 
19885, April 23, 1997), because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
state to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. The rule does not 
involve special consideration of environmental justice related issues 
as required by Executive Order 12898 (59 FR 7629, February 16, 1994). 
As required by section 3 of Executive Order 12988 (61 FR 4729, February 
7, 1996), in issuing this rule, EPA has taken the necessary steps to 
eliminate drafting errors and ambiguity, minimize potential litigation, 
and provide a clear legal standard for affected conduct. EPA has 
complied with Executive Order 12630 (53 FR 8859, March 15, 1988) by 
examining the takings implications of the rule in accordance with the 
``Attorney General's Supplemental Guidelines for the Evaluation of Risk 
and Avoidance of Unanticipated Takings'' issued under the executive 
order. This rule does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.).
    The Congressional Review Act, 5 U.S.C. section 801 et seq., as 
added by the Small Business Regulatory Enforcement Fairness Act of 
1996, generally provides that before a rule may take effect, the agency 
promulgating the rule must submit a rule report, which includes a copy 
of the rule, to each House of the Congress and to the Comptroller 
General of the United States. EPA will submit 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 United States 
prior to publication of the rule in the Federal Register. A major rule 
cannot take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
section 804(2). This rule will be effective December 26, 2000 unless 
EPA receives adverse written comments by November 27, 2000.
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by December 26, 2000. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements. (See section 307(b)(2) of the Act.)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon Monoxide, 
Hydrocarbons, Nitrogen dioxide, Nitrogen oxides, Ozone, and Reporting 
and recordkeeping requirements.

    Dated: October 3, 2000.
Myron O. Knudson,
Acting Regional Administrator, Region 6.

    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 et seq.

Subpart SS--Texas

    2. In Sec. 52.2270 the table in paragraph (c) is amended under 
Chapter 117 by:
    a. Revising that section of the table entitled ``Subchapter B: 
Division 1--Utility Electric Generation'';
    b. Revising that section of the table entitled ``Division 2--
Commercial, Institutional and Industrial Sources'';
    c. Revising the entries for sections 117.510, 117.520, 117.570, and 
117.601.
    d. Adding entries for new sections 117.460, 117.461, 117.463, 
117.465, 117.467, and 117.469.
    e. Revising the heading immediately above the entry for section 
117.510 to read ``Subchapter E--Administrative Provisions.''
    f. Revising the heading immediately above the entry for section 
117.601 to read ``Subchapter F--Gas-Fired Steam Generation.''
    g. Adding a new heading immediately above the entry for section 
117.460 to read ``Subchapter D--Water Heaters, Small Boilers, and 
Process Heaters.''
    h. Adding a paragraph (d).
    The revisions and additions, read as follows:


Sec. 52.2270  Identification of plan.

* * * * *
    (c) * * *

[[Page 64154]]



                                    EPA Approved Regulations in the Texas SIP
----------------------------------------------------------------------------------------------------------------
                                                          State
                                                        submittal/
        State citation              Title/subject        approval     EPA approval date         Explanation
                                                           date
----------------------------------------------------------------------------------------------------------------
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
                      Chapter 117 (Reg 7)--Control of Air Pollution From Nitrogen Compounds
 
                                                  Subchapter A
----------------------------------------------------------------------------------------------------------------
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
                                                  Subchapter B
 
                                     Division 1--Utility Electric Generation
----------------------------------------------------------------------------------------------------------------
Section 117.101                 Applicability........   04/19/2000  [Insert publication    .....................
                                                                     date and Federal
                                                                     Register cite].
Section 117.103...............  Exemptions...........   04/19/2000  [Insert publication    .....................
                                                                     date and Federal
                                                                     Register cite].
Section 117.104...............  Gas-fired Steam         04/19/2000  [Insert publication    New, B/PA attainment
                                 Generation.                         date and Federal       plan.
                                                                     Register cite].
Section 117.105...............  Emission                02/24/1999  [Insert publication    (h) and (j) added for
                                 Specifications.        04/19/2000   date and Federal       B/PA area.
                                                                     Register cite].
Section 117.106...............  Emission                04/19/2000  [Insert publication    New, B/PA attainment
                                 Specifications for                  date and Federal       plan.
                                 Attainment                          Register cite].
                                 Demonstrations.
Section 117.107...............  Alternative System-     04/19/2000  [Insert publication    .....................
                                 Wide Emission                       date and Federal
                                 Specifications.                     Register cite].
Section 117.108...............  System Cap...........   04/19/2000  [Insert publication    New, B/PA attainment
                                                                     date and Federal       plan, EPA must
                                                                     Register cite].        approve decisions
                                                                                            under (j).
Section 117.109...............  Initial Control Plan    02/24/1999  [Insert publication    Repealed for B/PA
                                 Procedures.            04/19/2000   date and Federal       area only.
                                                                     Register cite].
Section 117.111...............  Initial Demonstration   04/19/2000  [Insert publication    .....................
                                 of Compliance.                      date and Federal
                                                                     Register cite].
Section 117.113...............  Continuous              04/19/2000  [Insert publication    .....................
                                 Demonstration of                    date and Federal
                                 Compliance.                         Register cite].
Section 117.115...............  Final Control Plan      04/19/2000  [Insert publication    .....................
                                 Procedures.                         date and Federal
                                                                     Register cite].
Section 117.116...............  Final Control Plan      04/19/2000  [Insert publication    New, B/PA attainment
                                 Procedures for                      date and Federal       plan.
                                 Attainment                          Register cite].
                                 Demonstration
                                 Emission
                                 Specifications.
Section 117.117...............  Revision of Final       04/19/2000  [Insert publication    .....................
                                 Control Plan.                       date and Federal
                                                                     Register cite].
Section 117.119...............  Notification,           04/19/2000  [Insert publication    .....................
                                 Recordkeeping, and                  date and Federal
                                 Reporting                           Register cite].
                                 Requirements.
Section 117.121...............  Alternative Case        04/19/2000  [Insert publication    .....................
                                 Specific                            date and Federal
                                 Specifications.                     Register cite].
----------------------------------------------------------------------------------------------------------------
                          Division 2--Commercial, Institutional, and Industrial Sources
----------------------------------------------------------------------------------------------------------------
Section 117.201...............  Applicability........   04/19/2000  [Insert publication    .....................
                                                                     date and Federal
                                                                     Register cite].
Section 117.203...............  Exemptions...........   04/19/2000  [Insert publication    .....................
                                                                     date and Federal
                                                                     Register cite].
Section 117.205...............  Emission                04/19/2000  [Insert publication    (d)(2) and (e) for B/
                                 Specifications for                  date and Federal       PA or D/FW.
                                 Reasonably Available                Register cite].
                                 Control Technology.
Section 117.206...............  Emission                04/19/2000  [Insert publication    New, B/PA attainment
                                 Specifications for                  date and Federal       plan only.
                                 Attainment                          Register cite].
                                 Demonstrations.
Section 117.207...............  Alternative Plant-      04/19/2000  [Insert publication    .....................
                                 Wide Emission                       date and Federal
                                 Specifications.                     Register cite].
Section 117.208...............  Operating               04/19/2000  [Insert publication    .....................
                                 Requirements.                       date and Federal
                                                                     Register cite].
Section 117.209...............  Initial Control Plan    04/19/2000  [Insert publication    .....................
                                 Procedures.                         date and Federal
                                                                     Register cite].
Section 117.211...............  Initial Demonstration   04/19/2000  [Insert publication    .....................
                                 of Compliance.                      date and Federal
                                                                     Register cite].
Section 117.213...............  Continuous              04/19/2000  [Insert publication    .....................
                                 Demonstration of                    date and Federal
                                 Compliance.                         Register cite].
Section 117.215...............  Final Control Plan      04/19/2000  [Insert publication    .....................
                                 Procedures for                      date and Federal
                                 Reasonably Available                Register cite].
                                 Control Technology.

[[Page 64155]]

 
Section 117.216...............  Final Control Plan      04/19/2000  [Insert publication    New, B/PA attainment
                                 Procedures for                      date and Federal       plan.
                                 Attainment                          Register cite].
                                 Demonstration
                                 Emission
                                 Specifications.
Section 117.217...............  Revision of Final       04/19/2000  [Insert publication    .....................
                                 Control Plan.                       date and Federal
                                                                     Register cite].
Section 117.219...............  Notification,           04/19/2000  [Insert publication    .....................
                                 Recordkeeping, and                  date and Federal
                                 Reporting                           Register cite].
                                 Requirements.
Section 117.221...............  Alternative Case        04/19/2000  [Insert publication    .....................
                                 Specific                            date and Federal
                                 Specifications.                     Register cite].
Section 117.223...............  Source Cap...........   10/27/1999  [Insert publication    (b)(B) requires EPA's
                                                        04/19/2000   date and Federal       approval.
                                                                     Register cite].
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
                                                  Subchapter D
----------------------------------------------------------------------------------------------------------------
 
                                Water Heaters, Small Boilers, and Process Heaters
----------------------------------------------------------------------------------------------------------------
Section 117.460...............  Definitions..........   04/19/2000  [Insert publication    New, State-wide.
                                                                     date and Federal
                                                                     Register cite].
Section 117.461...............  Applicability........   04/19/2000  [Insert publication    New, State-wide.
                                                                     date and Federal
                                                                     Register cite].
Section 117.463...............  Exemptions...........   04/19/2000  [Insert publication    New, State-wide.
                                                                     date and Federal
                                                                     Register cite].
Section 117.465...............  Emission                04/19/2000  [Insert publication    New, State-wide.
                                 Specifications.                     date and Federal
                                                                     Register cite].
Section 117.467...............  Certification           04/19/2000  [Insert publication    New, State-wide.
                                 Requirements.                       date and Federal
                                                                     Register cite].
Section 117.469...............  Notification and        04/19/2000  [Insert publication    New, State-wide.
                                 Labeling                            date and Federal
                                 Requirements.                       Register cite].
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
                                                  Subchapter E
----------------------------------------------------------------------------------------------------------------
 
                                            Administrative Provisions
----------------------------------------------------------------------------------------------------------------
Section 117.510...............  Compliance Schedule     04/19/2000  [Insert publication    (a), and (a)(2) for B/
                                 for Utility Elecric                 date and Federal       PA area only.
                                 Generation.                         Register cite].
Section 117.520...............  Compliance Schedule     04/19/2000  [Insert publication    (a), (a)(2), and
                                 for Industrial,                     date and Federal       (a)(3) for B/PA area
                                 Commercial and                      Register cite].        only.
                                 Institutional
                                 Combustion Sources
                                 in Ozone
                                 Nonattainment Areas.
 
*                  *                  *                  *                  *                  *
                                                        *
Section 117.570...............  Trading..............   10/27/1999  [Insert publication    (1)(A)(ii) for B/PA
                                                        04/19/2000   date and Federal       area only.
                                                                     Register cite].
----------------------------------------------------------------------------------------------------------------
                                                  Subchapter F
----------------------------------------------------------------------------------------------------------------
 
                                           Gas-Fired Steam Generation
----------------------------------------------------------------------------------------------------------------
Section 117.601...............  Gas-Fired Steam         02/24/1999  [Insert publication    Repealed for B/PA
                                 Generation.            04/19/2000   date and Federal       area only.
                                                                     Register cite].
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------

    (d) EPA-approved State Source Specific Requirements.

                                 EPA Approved Texas Source-Specific Requirements
----------------------------------------------------------------------------------------------------------------
                                                            State
                                                          approval/
          Name of source                Permit No.        submittal     EPA approval date        Explanation
                                                             date
----------------------------------------------------------------------------------------------------------------
Alcoa Inc., Rockdale, Milam        Agreed Order No.       04/19/2000  [Insert publication   H/GA, D/FW, and B/
 County, Texas.                     2000-0032-SIP.                     date and Federal      PA, Texas 1-hour
                                                                       Register cite].       ozone standard
                                                                                             attainment
                                                                                             demonstrations.

[[Page 64156]]

 
Eastman Chemical Company, Texas    Agreed Order No.       04/19/2000  [Insert publication   H/GA, D/FW, and B/
 Operations, Longview, Harrison     2000-0033-SIP.                     date and Federal      PA, Texas 1-hour
 County, Texas.                                                        Register cite].       ozone standard
                                                                                             attainment
                                                                                             demonstrations.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 00-27029 Filed 10-25-00; 8:45 am]
BILLING CODE 6560-50-U