[Federal Register Volume 63, Number 83 (Thursday, April 30, 1998)]
[Proposed Rules]
[Pages 23707-23710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-11508]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 034-0070; FRL-6006-7]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing a limited approval and limited disapproval of 
revisions to the California State Implementation Plan (SIP) which 
concern the control of volatile organic compound (VOC) and oxides of 
sulfur (SO<INF>X</INF>) emissions from petroleum refinery vacuum-
producing devices or systems, including hot wells and accumulators.
    The intended effect of proposing limited approval and limited 
disapproval of this rule is to regulate emissions of VOCs and 
SO<INF>X</INF> in accordance with the requirements of the Clean Air 
Act, as amended in 1990 (CAA or the Act). EPA's final action on this 
proposed rule will incorporate this rule into the federally approved 
SIP. EPA has evaluated the rule and is proposing a simultaneous limited 
approval and limited disapproval under provisions of the CAA regarding 
EPA

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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.

DATES: Comments must be received on or before June 1, 1998.

ADDRESSES: Comments may be mailed to: Andrew Steckel, Rulemaking Office 
[AIR-4], Air Division, U.S. Environmental Protection Agency, Region IX, 
75 Hawthorne Street, San Francisco, CA 94105-3901.
    Copies of the rule and EPA's evaluation report of the rule are 
available for public inspection at EPA's Region 9 office during normal 
business hours. Copies of the submitted rule are also available for 
inspection at the following locations: Environmental Protection Agency, 
Air Docket, 401 ``M'' Street, SW., Washington, DC 20460; California Air 
Resources Board, Stationary Source Division, Rule Evaluation Section, 
1220 ``L'' Street, Sacramento, CA 95814; South Coast Air Quality 
Management District, 21865 E. Copley Drive, Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Stanley Tong, Rulemaking Office [AIR-
4], Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105-3901. Telephone: (415) 744-
1191.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rule being proposed for approval into the California SIP is 
South Coast Air Quality Management District (SCAQMD), Rule 465, Vacuum-
Producing Devices or Systems. This rule was submitted by the California 
Air Resources Board (CARB) to EPA on June 19, 1992.

II. Background

    On March 3, 1978 EPA promulgated a list of ozone nonattainment 
areas under the provisions of the 1977 Clean Air Act (1977 CAA or pre-
amended Act), that included the Los Angeles--South Coast Air Basin 
Area. 43 FR 8964, 40 CFR 81.305. Because the Los Angeles--South Coast 
Air Basin was unable to meet the statutory attainment date of December 
31, 1982, California requested under section 172(a)(2), and EPA 
approved, an extension of the attainment date to December 31, 1987. On 
May 26, 1988, EPA notified the Governor of California, pursuant to 
section 110(a)(2)(H) of the pre-amended Act, that SCAQMD's portion of 
the SIP was inadequate to attain and maintain the ozone standard and 
requested that deficiencies in the existing SIP be corrected (EPA's 
SIP-Call). On November 15, 1990, amendments to the 1977 CAA were 
enacted. Pub. L. 101-549, 104 Stat. 2399, codified at 42 U.S.C. 7401-
7671q. In amended section 182(a)(2)(A) of the CAA, Congress statutorily 
adopted the requirement that nonattainment areas fix their deficient 
reasonably available control technology (RACT) rules for ozone and 
established a deadline of May 15, 1991 for states to submit corrections 
of those deficiencies.
    Section 182(a)(2)(A) applies to areas designated as nonattainment 
prior to enactment of the amendments and classified as marginal or 
above as of the date of enactment. It requires such areas to adopt and 
correct RACT rules pursuant to pre-amended section 172(b) as 
interpreted in pre-amendment guidance.<SUP>1</SUP> EPA's SIP-Call used 
that guidance to indicate the necessary corrections for specific 
nonattainment areas. The Los Angeles--South Coast Air Basin is 
classified as extreme <SUP>2</SUP> for VOCs; therefore, this area is 
subject to the RACT fix-up requirement and the May 15, 1991 
deadline.<SUP>3</SUP>
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    \1\ Among other things, the pre-amendment guidance consists of 
those portions of the proposed Post-1987 ozone and carbon monoxide 
policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues 
Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, 
Clarification to Appendix D of November 24, 1987 Federal Register 
Notice'' (Blue Book) (notice of availability was published in the 
Federal Register on May 25, 1988); and the existing control 
technique guidelines (CTGs).
    \2\ South Coast Air Quality Management District retained its 
designation and was classified by operation of law pursuant to 
sections 107(d) and 181(a) upon the date of enactment of the CAA. 
See 56 FR 56694 (November 6, 1991).
    \3\ This Federal Register action for the South Coast Air Quality 
Management District excludes the Los Angeles County portion of the 
Southeast Desert Air Quality Management Area (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.
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    SCAQMD amended Rule 465, Vacuum-Producing Devices or Systems on 
November 1, 1991. The State of California submitted many revised RACT 
rules to EPA for incorporation into its SIP on June 19, 1992, including 
the rule being acted on in this document. This document addresses EPA's 
proposed action for SCAQMD Rule 465. This submitted rule was found to 
be complete on August 27, 1992 pursuant to EPA's completeness criteria 
that are set forth in 40 CFR Part 51, Appendix V <SUP>4</SUP> and is 
being proposed for limited approval and limited disapproval.
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    \4\ EPA adopted completeness criteria on February 16, 1990 (55 
FR 5830) and, pursuant to section 110(k)(1)(A) of the CAA, revised 
the criteria on August 26, 1991 (56 FR 42216).
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    The Los Angeles--South Coast Air Basin is classified as attainment 
for SO<INF>2</INF> (40 CFR 81.305). Therefore, for purposes of 
controlling SO<INF>2</INF>, this rule need only comply with the general 
provisions of Section 110 of the Act and not Part D.
    Rule 465 controls VOC and SOx emissions from petroleum refinery 
vacuum-producing devices or systems. VOCs contribute to the production 
of ground level ozone and smog. SCAQMD Rule 465 was originally adopted 
as part of the District's effort to achieve the National Ambient Air 
Quality Standard (NAAQS) for ozone and has been revised in response to 
EPA's SIP-Call and the section 182(a)(2)(A) CAA requirement. The 
following is EPA's evaluation and proposed action for SCAQMD Rule 465.

III. EPA Evaluation and Proposed Action

    In determining the approvability of a VOC rule, EPA must evaluate 
the rule for consistency with the requirements of the CAA and EPA 
regulations, as found in section 110 and Part D of the CAA and 40 CFR 
Part 51 (Requirements for Preparation, Adoption, and Submittal of 
Implementation Plans). The EPA interpretation of these requirements, 
which forms the basis for today's action, appears in the various EPA 
policy guidance documents listed in footnote 1. Among those provisions 
is the requirement that a VOC rule must, at a minimum, provide for the 
implementation of RACT for stationary sources of VOC emissions. This 
requirement was carried forth from the pre-amended Act.
    For the purpose of assisting state and local agencies in developing 
RACT rules, EPA prepared a series of Control Technique Guideline (CTG) 
documents which specify the minimum requirements that a rule must 
contain in order to be approved into the SIP. The CTGs are based on the 
underlying requirements of the Act and specify the presumptive norms 
for what is RACT for specific source categories. Under the CAA, 
Congress ratified EPA's use of these documents, as well as other Agency 
policy, for requiring States to ``fix-up'' their RACT rules. See 
section 182(a)(2)(A). The CTG applicable to SCAQMD Rule 465 is 
entitled, ``Control of Refinery Vacuum Producing Systems, Wastewater 
Separators and Process Unit Turnarounds'', EPA-450/2-77-025. Further 
interpretations of EPA policy are found in the Blue Book. In general, 
these guidance documents have been set forth to ensure that VOC rules 
are fully

[[Page 23709]]

enforceable and strengthen or maintain the SIP.
    While the Los Angeles--South Coast Air Basin is in attainment with 
the SO<INF>2</INF> NAAQS, many of the general SIP requirements 
regarding enforceability, for example, are still appropriate for the 
SO<INF>X</INF> components of the rule. In determining the approvability 
of the SO<INF>X</INF> components, EPA also evaluated this rule in light 
of the ``SO<INF>2</INF> Guideline Document'', EPA-452/R-94-008.
    On August 11, 1992, EPA approved into the SIP a version of Rule 
465, Vacuum Producing Devices or Systems, that had been adopted by 
South Coast Air Quality Management District on May 7, 1976. SCAQMD 
submitted Rule 465, Vacuum Producing Devices or Systems includes the 
following significant changes from the current SIP:
    <bullet> Deletes a provision which exempted exhaust gases with 
gross heating values of less than 2500 kilogram calories per cubic 
meter.
    <bullet> Deletes a provision which exempted vacuum systems with 
uncontrolled emission rates of organic gases with less than 20 pounds 
per day.
    <bullet> Adds a section on definitions.
    <bullet> Adds test methods for determining control device 
efficiency, exempt VOC compounds and sulfur concentration.
    EPA has evaluated SCAQMD submitted Rule 465 for consistency with 
the CAA, EPA regulations, and EPA policy and has found that the 
revisions result in a clearer, more enforceable rule. Although SCAQMD 
Rule 465 will strengthen the SIP, this rule contains deficiencies which 
should be corrected pursuant to the section 182(a)(2)(A) requirement of 
Part D of the CAA. SCAQMD Rule 465 contains the following deficiencies:
    <bullet> The definition of exempt compounds includes a section 
titled ``Group II (Under Review)''. Carbon Tetrachloride is listed 
within this group as an exempt compound. The listing of Carbon 
Tetrachloride as an exempt compound is inconsistent with EPA's 
definition of exempt compounds as found in 62 FR 44926 dated August 25, 
1997.
    <bullet> The rule does not state explicitly any recording, 
reporting, or record retention requirements, which sources must fulfill 
to assess and ensure compliance.
    A detailed discussion of rule deficiencies can be found in the 
Technical Support Document for Rule 465 (3/23/98), which is available 
from the U.S. EPA, Region 9 office. These deficiencies may lead to 
enforceability problems and are not consistent with the interpretation 
of section 172 of the 1977 CAA as found in the Blue Book. As a result, 
the rule is not approvable pursuant to section 182(a)(2)(A) of the CAA.
    Also, because of the above deficiencies, EPA cannot grant full 
approval of this rule under section 110(k)(3) and part D. Because the 
submitted rule is not composed of separable parts which meet all the 
applicable requirements of the CAA, EPA cannot grant partial approval 
of the rule under section 110(k)(3). However, EPA may grant a limited 
approval of the submitted rule under section 110(k)(3) in light of 
EPA's authority pursuant to section 301(a) to adopt regulations 
necessary to further air quality by strengthening the SIP. The approval 
is limited because EPA's action also contains a simultaneous limited 
disapproval. In order to strengthen the SIP, EPA is proposing a limited 
approval of SCAQMD submitted Rule 465 under sections 110(k)(3) and 
301(a) of the CAA.
    At the same time, EPA is also proposing a limited disapproval of 
this rule because it contains deficiencies that have not been corrected 
as required by section 182(a)(2)(A) of the CAA, and, as such, the rule 
does not fully meet the requirements of part D of the Act. Under 
section 179(a)(2), if the Administrator disapproves a submission under 
section 110(k) for an area designated nonattainment, based on the 
submission's failure to meet one or more of the elements required by 
the Act, the Administrator must apply one of the sanctions set forth in 
section 179(b) unless the deficiency has been corrected within 18 
months of such disapproval. Section 179(b) provides two sanctions 
available to the Administrator: Highway funding and offsets. The 18-
month period referred to in section 179(a) will begin on the effective 
date of EPA's final limited disapproval. Moreover, the final 
disapproval triggers the Federal implementation plan (FIP) requirement 
under section 110(c). It should be noted that the rule covered by this 
document has been adopted by the SCAQMD and is currently in effect in 
the District. EPA's final limited disapproval action will not prevent 
SCAQMD or EPA from enforcing this rule.
    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.

IV. 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 301, 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 
the 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 proposed 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

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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.

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 compounds, 
Sulfur oxides.

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

    Dated: April 16, 1998.
Felicia Marcus,
Regional Administrator, Region IX.
[FR Doc. 98-11508 Filed 4-29-98; 8:45 am]
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