## SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix D: EPA Documents December 15, 2011

D - 1 Final Staff Report with Appendices for Revised Proposed Amendments t o Rule 4402 

# APPENDIX D

Federal Register Notice

And EPA Technical Support Document (TSD)

December 15, 2011

## SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

APPENDIX C: EPA Documents December 15, 2011

Final Staff Report with Appendices for Revised Proposed Amendments t o Rule 4402 

## D - 2 This page intentionally blank.

### 39777 Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Rules and Regulations

• Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);

• Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);

• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);

• I s not subject to the requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Clean Air Act;
and

• Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).

In addition, this rule does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt
tribal law.

The Congressional Review Act, 5

U.S.C. 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 action 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 rules
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. 804(2).

Under section 307(b)(1) of the Clean Air Act, petitions for judicial review of
these actions must be filed in the United States Court of Appeals for the appropriate circuit by September 6, 2011. Filing a petition for reconsideration by the Administrator of
these final rules does not affect the finality of this action 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).)

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds.

Dated: June 23, 2011.
Al Armendariz, Regional Administrator, Region 6.

40 CFR part 52 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 T—Louisiana**

■ 2. Section 52.977 is amended by adding paragraph (c) to read as follows:

**§ 52.977 Control strategy and regulations:**
**Ozone.**

* * * * *

(c) Determination to Terminate the Clean Air Act Section 185 Penalty Fee Requirement. Effective September 6,
2011 EPA has determined that the State of Louisiana is no longer required to submit a section 185 fee program State Implementation Plan (SIP) revision for the Baton Rouge ozone nonattainment area to satisfy anti-backsliding requirements for the 1-hour ozone
standard. This determination is based
on EPA’s determination that the area
has attained the 1-hour ozone standard due to permanent and enforceable
emissions reductions.

[FR Doc. 2011–16881 Filed 7–6–11; 8:45 am]

**BILLING CODE 6560–50–P**

**ENVIRONMENTAL PROTECTION**
**AGENCY**

**40 CFR Part 52**

**[EPA–R09–OAR–2010–0907; FRL–9428–7]**

**Revisions to the California State Implementation Plan, San Joaquin**  **Valley Unified Air Pollutions Control District (SJVUAPCD)** 

**AGENCY :**  Environmental Protection Agency (EPA). **ACTION :**  Final rule.

**SUMMARY :**  EPA is finalizing a limited approval and limited disapproval of revisions to the San Joaquin Valley
Unified Air Pollution Control District (SJVUAPCD) portion of the California State Implementation Plan (SIP). This action was proposed in the Federal Register on January 4, 2011 and concerns volatile organic compound (VOC) emissions from crude oil production operations and refineries. Under authority of the Clean Air Act as amended in 1990 (CAA or the Act), this action simultaneously approves local rules that regulate these emission
sources and directs California to correct
rule deficiencies.

**DATES :**  Effective Date: This rule is effective on August 8, 2011.

**ADDRESSES :**  EPA has established docket
number EPA–R09–OAR–2010–0907 for this action. Generally, documents in the
docket for this action are available electronically at http:// www.regulations.gov or in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While all
documents in the docket are listed at http://www.regulations.gov, some information may be publicly available only at the hard copy location ( e.g.,copyrighted material, large maps, multivolume reports), and some may not be available in either location ( e.g., confidential business information (CBI)). To inspect the hard copy materials, please schedule an appointment during normal business
hours with the contact listed in the **FOR**

**FURTHER INFORMATION CONTACT** section.

**FOR FURTHER INFORMATION CONTACT :**  Joanne Wells, EPA Region IX, (415)

947–4118, wells.joanne@epa.gov.

**SUPPLEMENTARY INFORMATION :**  Throughout this document, ‘‘we,’’ ‘‘us’’ and ‘‘our,’’ refer to EPA.

Table of Contents

I. Proposed Action II. Public Comments and EPA Responses

III. EPA Action IV. Statutory and Executive Order Reviews

I. Proposed Action

On January 4, 2011 (76 FR 298), EPA proposed a limited approval and limited disapproval of the following rules that were submitted for incorporation into
the California SIP.


### 39778 Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Rules and Regulations

Local agency Rule No. Rule title Amended Submitted

SJVUAPCD ............................. 4402 Crude Oil Production Sumps ................................................. 12/17/92 0 8/24/07
SJVUAPCD ............................. 4625 Wastewater Separators .......................................................... 12/17/ 92 08/24/07

We proposed a limited approval
because we determined that these rules improve the SIP and are largely
consistent with the relevant CAA requirements. We simultaneously proposed a limited disapproval because some rule provisions conflict with section 110 and part D of the Act. These provisions include the following:

A. Rule 4402, Crude Oil Production Sumps

1. SJVUAPCD should strengthen these requirements to help implement RACT or demonstrate why such improvements are not appropriate in light of analogous requirements in neighboring districts.

a. Section 5.1.2 allows a 1 inch gap and does not require seals for rigid floating covers. In contrast, SCAQMD Rule 1176(e)(2)(B)(vi) and SLOCAPCD Rule 419 D.2.e. require rigid floating covers to have seals, the gap cannot
exceed 1 ⁄ 8 ′′ for a cumulative length of 95% of the perimeter, and no single gap may exceed 1 ⁄ 2 inch. b. Section 5.2.5 requires fixed covers to be equipped with a pressure/vacuum valve set to within ten percent of maximum safe working pressure. In contrast, SCAQMD Rule 1176(2)(A)(ii) and (6)(A) and SBCAPCD Rule 344 D.2.b.2 require that fixed covers be equipped with a 95% efficient Air Pollution Control (APC) device.

c. Rule 4402 does not require periodic inspection of covers and APC equipment to ensure proper operation. In contrast, SCAQMD Rule 1176(f)(1)(C) requires periodic leak inspection and APC testing.

d. Rule 4402 has exemptions that are
more broad than those found in other districts rules. SJVUAPCD should analyze whether these exemptions continue to be appropriate. This analysis should consider more current
cost data than used in the 2009 RACT Analysis, and should consider alternative disposal methods ( e.g., underground injection, tanks, or additional pretreatment) in addition to sump and pond covers. The following exemptions are of particular concern:

• Uncontrolled VOC emissions from exempted 2nd and 3rd stage sumps. Section 4.1.1 exempts operations less than 6000 barrels per day with sumps
less than 1000 sf and section 4.1.3 exempts operations less than 300 barrels per day with sumps less than 5000 sf from substantive requirements. No other neighboring districts allow exemptions for small producers except for SBCAPCD Rule 344, and the exemption
in Santa Barbara’s rule is more restrictive than the exemptions found in
Rule 4402.

• Section 4.1.7 exempts ponds of ‘‘clean produced water’’ with less than 35 mg/l VOC from Rule 4402 requirements. In contrast, SCAQMD Rule 1176(i)(5)(J), VCAPCD Rule 71.4
C.1.c and SLOCAPCD Rule 419 C.4 exempt wastewater sumps only where
the VOC/ROC content does not exceed 5 mg/l at the inlet. Of particular concern are VOC emissions from the ponds that initially receive the oily wastewater from oil production facilities. Alternatives including additional pretreatment to lower the VOC content and other disposal methods such as underground injection should be
evaluated.

e. Rule 4402 does not limit the time that oil or oily water can be kept in an emergency pit. In contrast, SLOCAPCD Rule 419 C.2 requires clean-up to begin
within 24 hours and finish within 15 days.

f. Rule 4402 allows 1st stage sumps. In contrast, SBCAPCD Rule 344 and
VCAPCD Rule 71.4 do not allow the operation of 1st stage sumps.

g. Provisions should be added in Rule 4402 or Rule 4623 (Storage of Organic Liquids) that ensure that tanks used to replace the 1st stage crude oil sumps have adequate VOC controls.

2. The following revisions are needed to improve rule clarity and enforceability consistent with CAA section 110(a).

a. Please remove the language at the
end of Section 5.3 that states ‘‘If replacement tank exclusively serves identical function of sump replaced, permitting of such tank shall not be considered an emission change for the purposes of Rule 2201 (New and Modified Source Review Rule)’’. Any exemptions to NSR requirements should be evaluated in context of SJVUAPCD’s NSR program ( e.g., Rule 2020) and incorporated within the NSR program only if appropriate. Such exemptions should not be in source-specific prohibitory rules like Rule 4402.

b. Revise section 6.2 Test Methods to remove and/or replace inappropriate or
outdated test methods such as 6.2.1 ARB Method 432, which is designed for paints and coatings and not oily wastewater. We also recommend adding EPA Test Method 21 in section 6.2 for determining leaks.

c. Update the definition of clean product water (Section 3.1) replacing outdated EPA Test Methods 4.13.2,
418.2 and 8240 that used CFC–113 as
the extraction solvent. The new test methods using non-CFC extraction
solvents are EPA Method 1664A and
EPA Method 8260.

d. Please revise section 6.1 (Recordkeeping) to:

• Add requirement for facilities to keep records of all inspections for leaks and testing of APC devices (for example, see SCAQMD Rule 1176(g)(1)).

• Add requirement to document use of emergency pits, including when use started, clean-up started and clean-up
finished.

• Require documentation justifying any exemptions claimed under section 4, including 4.1.7, which exempts pits and ponds.

• Add requirements to verify the sump surface area and the annual production rates for both the small producers and very small producers in

section 6.1.1.

• Add requirement to keep all records for at least two, and preferably five

years. B. Rule 4625, Wastewater Separators

The following revisions are needed to improve rule clarity, enforceability, and to strengthen requirements to help implement RACT.

1. The December 1992 amendment added exemption 4.3, which reads ‘‘For existing facilities, if an incineration
device is added or modified for the sole purpose of complying with the requirements of this rule, such a device shall be exempt from the Best Available Control Technology and the Offset requirements of Rule 2201 (New and Modified Stationary Source Review Rule)’’. This exemption should be removed from Rule 4625. Any exemptions to NSR requirements should be evaluated in context of SJVUAPCD’s NSR program ( e.g., Rule 2020) and incorporated within the NSR program only if appropriate. Such exemptions should not be in source-specific prohibitory rules like Rule 4625.

2. SJVUAPCD has not adequately demonstrated that Rule 4625 currently implements RACT because RACT can change over time as control technology improves and/or becomes more available. More stringent requirements


### 39779 Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Rules and Regulations

exist in the NSPS (1988), NESHAP (1995), BAAQMD Rule 8–8 (1993) and SCAQMD 1176 (1996). These regulations have requirements for stricter VOC controls (see, e.g., 95% requirement in SCAQMD Rule 1176, section (e)(2)(A)(ii) and (e)(6)), additional design requirements for controlling fugitive emissions or breathing losses (see, e.g., BAAQMD Regulation 8 Rule 8, section 302.4), and additional requirements for inspections and maintenance (see, e.g., BAAQMD Regulation 8 Rule 8, section 302.4 and 302.6).

3. The exemption for air flotation units precludes regulation of potentially significant VOC sources (section 4.2). Even though these sources are currently regulated via District permit conditions, SJVUAPCD should subject them to SIP requirements as part of Rule 4625 or demonstrate why that is not necessary. There is no specific allowance in the CTG or other guidance documents for exempting air flotation units from regulation and no other California air
district rules include such an exemption.

4. To improve enforceability, SJVUAPCD should revise section 6.0 Test Methods to remove inappropriate
or outdated test methods such as 6.1.2 ARB Method 432 for paints and coatings, and 6.1.3 which refers to an obsolete document superseded by EPA Method 204 for determining capture efficiency (40 CFR 51). We recommend including EPA Test Method 21 (measurements of leaks) as referenced in SJVUAPCD Rule 4455, Section 6.4 Test Methods, or SCAQMD Rule 1176, Section (h).

5. The SJVUAPCD 2009 RACT SIP
Demonstration mentions that the requirements in SJVUAPCD Rule 4455, ‘‘Components at Petroleum Refineries, Gas Liquids Processing Facilities and Chemical Plants’’, apply to oil-water separators. SJVUAPCD should include those requirements directly in Rule 4625 or by reference to improve enforceability, or demonstrate that this is not appropriate.

6. To ensure ongoing compliance and strengthen enforceability, SJVUACPD should add to the rule requirements for inspections of covers, access hatches and other openings and emissions control equipment, along with recordkeeping requirements for inspections and testing or demonstrate that this is not appropriate. For example, please see SCAQMD Rule 1176, section (f) and (g).

7. SJVUAPCD should delete or justify exemption 4.1 for wastewater separators exceeding a set value for a sump surface area to the rate of oil vapor loss ratio. The only other rule where we found such exemption is SCAQMD Rule 464 for Wastewater Separators; last amended December 7, 1990. This exemption is not found in the newer SCAQMD Rule 1176, ‘‘VOC Emissions from Wastewater Systems’’, amended September 13, 1996, which also addresses wastewater separators and which largely supersedes
Rule 464.

Additional detailed information on the
deficiencies listed above can be found in the TSDs and proposed notice for this rulemaking (76 FR 298).

II. Public Comments and EPA Responses

EPA’s proposed action provided a 30- day public comment period. During this period, we received comments from the following parties.

1. Sarah E. Jackson, Earthjustice; letter and email dated and received February

2, 2011.

2. Samir Sheikh, San Joaquin Valley
Air Pollution Control District (SJVAPCD); letter and email dated and received February 3, 2011.

The comments and our responses are
summarized below.

Comment #1: Earthjustice generally supported EPA’s analysis of these rules
and the deficiencies identified.

Response #1: No response required.
Comment #2: Earthjustice raised concerns regarding the inventory
associated with these rules and asserted that EPA should thoroughly analyze the inventory. Earthjustice asserted that SJVUAPCD fails to require related reporting as required by San Luis Obispo Rule 419, and instead bases inventory estimates on an industry survey. Earthjustice provided two inventory reports and asserted that SJVUAPCD uses an older lower emission factor but does not justify the
use of this lower emission factor.

Response #2: Recordkeeping and reporting requirements must be sufficient to ensure rule enforceability. Rule 4402 requirements are sufficient for this purpose except for the deficiencies described in paragraph A.2.d above. Nothing in San Luis Obispo Rule 419 or elsewhere in the comment provides evidence of additional requirements necessary for this purpose. Additional emissions inventory information, such as for the clean produced water ponds, might clarify the importance of additional
controls from affected sources for overall SIP planning purposes. However, such information is not
needed to evaluate the submitted rules with respect to rule enforceability, SIP relaxation and RACT, the primary
criteria at issue in this action. Comment #3: Earthjustice stated that the District’s inventory excludes sumps containing ‘‘clean produced water’’ and that the District allows a much higher
VOC content in its clean water than other districts allow, therefore the district could be failing to capture a large source of emissions in its inventory.

Response #3: Additional emissions inventory information, such as for the clean produced water ponds, might clarify whether additional controls are needed for overall SIP planning purposes. However, such information is
not needed to evaluate the submitted rules with respect to rule requirements, enforceability, SIP relaxation and RACT, the primary criteria at issue in this
action. We believe that the issue of the higher VOC content allowed in Rule 4402 for ‘‘clean produced water’’ is adequately addressed by the deficiency described in paragraph I.A.1.d above.

Comment 4: Earthjustice supported EPA’s request that SJVUAPCD should ensure that the tanks that replace the primary sumps have adequate VOC controls and requested that EPA keep
this recommendation in mind as it evaluates its options on the District’s

RACT SIP.

Response #4: No response required.
Comment #5: Earthjustice asserted that the rules identified by EPA for comparison to the SJVUAPCD rules are quite old themselves and their requirements may no longer represent
the lowest emissions these sources are capable of achieving with reasonable control technology. As a result, Earthjustice asserted that an analysis of the cost effectiveness of eliminating more open sumps should be prepared in order to demonstrate compliance with

RACT.

Response #5: The rules used for comparison are older rules, however we
are not aware of newer RACT controls likely to significantly reduce emissions from these sources, and no other new technologies were identified in the comment. In addition, paragraph I.A.1.d above directs SJVUAPCD to examine potential additional RACT controls for

open sumps.

Comment #6: SJVUACPD agreed that Rule 4402 imposes some requirements
that are similar to those found in other Districts, and that Rule 4625 imposes requirements similar to the relevant CTG, NSPS and MACT. SJVUAPCD further noted that rule language and test method requirements could be updated
because these rules were last amended

in 1992.

Response #6: No response required.
Comment #7: SJVUAPCD commented that their rule requirements do not need


### 39780 Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Rules and Regulations

1 Sumps Data from the VCAPCD Permit Database, received by EPA from Stan Cowen via e-mail dated May 10, 2011, Ventura County Air Pollution
Control District.

2 Based on preliminary data collected for the ‘‘CARB 2007 Oil and Gas Industry Survey Results’’, Draft Report, March 2011. 3 2009 RACT SIP, SJVUAPCD (April 16, 2009), Rule 4402, page 4–79.

4 See Section I.A.1.d above or 76 FR 298 Section II.C.1.d for description of this deficiency.

5 SJVUAPCD: 2007 Area Source Emissions Inventory Methodology, 310–Oil Production Fugitive Losses-Sumps and Pits, dated February 6, 2009, Table 7—Uncontrolled emission factors for oil sumps.

6 5000 sf × 0.0412 lb/sfday × 365 day/yr × 2000 lb/ton × 90% = 33.8 ton/yr @$129,644 = $3836/ton to be changed simply because rules in other parts of California appear more stringent. The District asserted that analogous requirements in other agencies are not comparable to SJVUAPCD rules because the affected sources are different. SJVUAPCD provided the example of crude oil sumps, and stated that other California agencies have far fewer, if any, sumps subject to the rules used for comparison with SJVUAPCD Rule 4402.

Response #7: SJVUAPCD must
demonstrate that these rules fulfill CAA RACT requirements. This demonstration should include comparison and consideration of rules and guidance adopted elsewhere for analogous sources. Our proposed action identified examples where SJVUAPCD did not explain why more stringent requirements adopted in South Coast, Santa Barbara, Ventura and San Luis Obispo were not also reasonably available in San Joaquin. While differences among affected sources may justify different rule requirements, the comment did not provide support for any specific differences among rule provisions. The comment stated that other districts have far fewer, if any, sumps subject to the rules used for comparison with SJVUAPCD Rule 4402. However, the comment did not provide
evidence for this statement and we do not believe it is correct. For example, data provided by VCAPCD from their permits database shows about 50 sumps in their relatively small district. 1 Similarly, in informal discussions with CARB staff, they confirmed that South
Coast and Santa Barbara also have significant numbers of sumps. 2

Comment 8: SJVUAPCD commented
that the 2009 RACT SIP demonstration
showed that the cost effectiveness of
additional emission controls far exceeds RACT. The district acknowledged that EPA believes this analysis is based on old cost estimates, but notes that even if true costs are half as large, the resulting cost effectiveness would still be $32,000 per ton of VOC emissions reduced, which exceeds RACT.

Response #8: The 2009 RACT SIP demonstration for Rule 4402 provided a cost analysis for a 5000 square foot (sf) second stage sump cover based on a
1986 cost estimate from a Santa Barbara County Air Pollution Control District staff report. 3 Our proposed action questioned SJVUAPCD’s reliance on this cost estimate because it is over 20 years old, because it is the only cost estimate provided by SJVUAPCD, and because other agencies have adopted more stringent regulations. 4 Upon further review of this cost effectiveness analysis in response to the comment, we also note that it significantly underestimated potential emission reductions, thus overestimating cost effectiveness. Specifically, the analysis assumed 2 tons/year VOC emissions reduced from controlling a 5000 sf second stage heavy crude oil sump. However, SJVUAPCD currently estimates uncontrolled emissions from such sumps at 0.0412 lbs VOC/sf-day. 5 Assuming 90% emission reductions from a ridged floating cover (as required by Rule 4402 if not exempted in section 4.1.3), we
recalculate the emission reduction at 34 tons/year at less than $4000/ton. 6 This is well within the range of control cost effectiveness that SJVUAPCD and other agencies routinely require in prohibitory
rules.

Comment #9: SJVUAPCD commented that, in light of their large workload, they are hesitant to divert resources to
conduct work that is not demonstrated to have significant potential for additional, cost-effective emissions
reductions.

Response #9: We appreciate this comment and acknowledge that the
District has limited resources and a substantial workload. We are trying to
be sensitive to this issue in our various interactions with the District, including
our actions on SIP rules such as these. We hope that the analysis and rule revisions called for by this action will not be unduly burdensome, though we believe they are needed to comply with
the CAA.

III. EPA Action

No comments were submitted that change our assessment of the rule as described in our proposed action. Therefore, as authorized in sections 110(k)(3) and 301(a) of the Act, EPA is finalizing a limited approval of the submitted rule. This action incorporates
the submitted rule into the California SIP, including those provisions
identified as deficient. As authorized under section 110(k)(3), EPA is simultaneously finalizing a limited disapproval of the rule. As a result, sanctions will be imposed unless EPA approves subsequent SIP revisions that
correct the rule deficiencies within 18
months of the effective date of this action. These sanctions will be imposed under section 179 of the Act according to 40 CFR 52.31. In addition, EPA must promulgate a Federal implementation plan (FIP) under section 110(c) unless we approve subsequent SIP revisions
that correct the rule deficiencies within
24 months. Note that the submitted rule has been adopted by the SJVUAPCD, and EPA’s final limited disapproval does not prevent the local agency from enforcing it. The limited disapproval also does not prevent any portion of the rule from being incorporated by reference into the federally enforceable SIP as discussed in a July 9, 1992 EPA
memo found at: http://www.epa.gov/ttn/ caaa/t1/memoranda/siproc.pdf.

IV. Statutory and Executive Order

Reviews

A. Executive Order 12866, Regulatory Planning and Review

The Office of Management and Budget (OMB) has exempted this regulatory action from Executive Order 12866, entitled ‘‘Regulatory Planning and

Review.’’

B. Paperwork Reduction Act

This action does not impose an
information collection burden under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. Burden is defined at 5 CFR 1320.3(b).

C. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements unless the agency certifies that the rule will not have a significant economic impact on
a substantial number of small entities. Small entities include small businesses, small not-for-profit enterprises, and small governmental jurisdictions.

This rule will not have a significant impact on a substantial number of small entities because SIP approvals and limited approvals/limited disapprovals under section 110 and subchapter I, part D of the Clean Air Act do not create any new requirements but simply approve requirements that the State is already imposing. Therefore, because this limited approval/limited disapproval action does not create any new requirements, I certify that this action will not have a significant economic


### 39781 Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Rules and Regulations

impact on a substantial number of small

entities.

Moreover, due to the nature of the Federal-State relationship under the Clean Air Act, preparation of flexibility analysis would constitute Federal inquiry into the economic
reasonableness of State action. The
Clean Air Act forbids EPA to base its actions 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).

D. Unfunded Mandates Reform Act

Under sections 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 section205, EPA must select the most costeffective 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 limited approval/limited disapproval action promulgated does not include a Federal mandate that may result in estimated costs of $100 million or more to either State, local, or tribal governments in the aggregate, or to the private sector. This Federal action approves pre-existing requirements under State or local law, and imposes no new requirements. Accordingly, no additional costs to State, local, or tribal governments, or to the private sector, result from this

action.

E. Executive Order 13132, Federalism

Federalism (64 FR 43255, August 10, 1999) revokes and replaces Executive Orders 12612 (Federalism) and 12875 (Enhancing the Intergovernmental Partnership). Executive Order 13132 requires EPA to develop an accountable process to ensure ‘‘meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications.’’ ‘‘Policies that have federalism implications’’ is defined in
the Executive Order to include regulations that 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.’’ Under Executive Order 13132, EPA may not issue a regulation that has federalism implications, that imposes substantial direct compliance costs, and that is not required by statute, unless the Federal government provides the funds necessary to pay the direct compliance costs incurred by State and local governments, or EPA consults with State and local officials early in the process of developing the proposed regulation. EPA also may not issue a regulation that has federalism implications and that preempts State law unless the Agency consults with State and local officials early in the process of developing the proposed regulation.

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, 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. Thus, the requirements of
section 6 of the Executive Order do not apply to this rule.

F. Executive Order 13175, Coordination
With Indian Tribal Governments

Executive Order 13175, entitled
‘‘Consultation and Coordination with Indian Tribal Governments’’ (65 FR 67249, November 9, 2000), requires EPA to develop an accountable process to ensure ‘‘meaningful and timely input by tribal officials in the development of regulatory policies that have tribal implications.’’ This final rule does not have tribal implications, as specified in
Executive Order 13175. It will not have
substantial direct effects on tribal governments, on the relationship between the Federal government and Indian tribes, or on the distribution of power and responsibilities between the Federal government and Indian tribes. Thus, Executive Order 13175 does not apply to this rule.

G. Executive Order 13045, Protection of
Children From Environmental Health Risks and Safety Risks

EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997) as applying only to those regulatory actions that concern health or safety risks, such that the analysis required
under section 5–501 of the Executive Order has the potential to influence the regulation. This rule is not subject to Executive Order 13045, because it approves a State rule implementing a
Federal standard.

H. Executive Order 13211, Actions That Significantly Affect Energy Supply, Distribution, or Use

This rule is not subject to Executive Order 13211, ‘‘Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use’’ (66 FR 28355, May 22, 2001) because it is not a significant regulatory action under
Executive Order 12866.

I. National Technology Transfer and
Advancement Act

Section 12 of the National Technology
Transfer and Advancement Act (NTTAA) of 1995 requires Federal agencies to evaluate existing technical standards when developing a new regulation. To comply with NTTAA, EPA must consider and use ‘‘voluntary consensus standards’’ (VCS) if available and applicable when developing programs and policies unless doing so would be inconsistent with applicable law or otherwise impractical.

The EPA believes that VCS are inapplicable to this action. Today’s action does not require the public to perform activities conducive to the use
of VCS.

J. Executive Order 12898: Federal
Actions To Address Environmental Justice in Minority Populations and Low-Income Population

Executive Order 12898 (59 FR 7629 (Feb. 16, 1994)) establishes Federal executive policy on environmental justice. Its main provision directs Federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States.

EPA lacks the discretionary authority to address environmental justice in this rulemaking.

K. Congressional Review Act

The Congressional Review Act, 5

U.S.C. 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


### 39782 Federal Register / Vol. 76, No. 130 / Thursday, July 7, 2011 / Rules and Regulations

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. 804(2). This rule will be effective on August 8, 2011.

L. Petitions for Judicial Review

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 September 6, 2011. 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)).

List of Subjects in 40 CFR Part 52

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

Dated: June 9, 2011.
Jared Blumenfeld,
Regional Administrator, Region IX.

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 F—California**

■ 2. Section 52.220 is amended by adding paragraphs (c)(351)(i)(C)( 5 ) and ( 6 ) to read as follows:

**§ 52.220 Identification of plan.**

* * * * *

(c) * * *

(351) * * *

(i) * * *

(C) * * *

( 5 ) Rule 4402, ‘‘Crude Oil Production Sumps’’, adopted on April 11, 1991 and amended December 17, 1992. ( 6 ) Rule 4625, ‘‘Wastewater Separators’’, adopted on April 11, 1991 and amended December 17, 1992.

* * * * *

[FR Doc. 2011–16882 Filed 7–6–11; 8:45 am]

**BILLING CODE 6560–50–P**

**DEPARTMENT OF HOMELAND**
**SECURITY**

**Federal Emergency Management Agency** 

**44 CFR Part 64**

**[Docket ID FEMA–2011–0002; Internal Agency Docket No. FEMA–8187]** 

**Suspension of Community Eligibility**

**AGENCY :**  Federal Emergency Management Agency, DHS.

**ACTION :**  Final rule.

**SUMMARY :**  This rule identifies communities, where the sale of flood
insurance has been authorized under the National Flood Insurance Program (NFIP), that are scheduled for suspension on the effective dates listed
within this rule because of noncompliance with the floodplain management requirements of the program. If the Federal Emergency Management Agency (FEMA) receives documentation that the community has adopted the required floodplain management measures prior to the effective suspension date given in this rule, the suspension will not occur and a notice of this will be provided by publication in the Federal Register on a subsequent date.

**DATES :**  Effective Dates: The effective date of each community’s scheduled suspension is the third date (‘‘Susp.’’)
listed in the third column of the following tables.

**FOR FURTHER INFORMATION CONTACT :**  If you want to determine whether a particular community was suspended on the suspension date or for further information, contact David Stearrett, Mitigation Directorate, Federal Emergency Management Agency, 500 C Street, SW., Washington, DC 20472, (202) 646–2953.

**SUPPLEMENTARY INFORMATION :**  The NFIP enables property owners to purchase flood insurance which is generally not otherwise available. In return, communities agree to adopt and administer local floodplain management aimed at protecting lives and new construction from future flooding.
Section 1315 of the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4022, prohibits flood insurance coverage as authorized under the NFIP,

42 U.S.C. 4001 et seq.; unless an appropriate public body adopts adequate floodplain management
measures with effective enforcement
measures. The communities listed in this document no longer meet that statutory requirement for compliance with program regulations, 44 CFR part 59. Accordingly, the communities will be suspended on the effective date in the third column. As of that date, flood insurance will no longer be available in the community. However, some of these communities may adopt and submit the required documentation of legally enforceable floodplain management measures after this rule is published but prior to the actual suspension date.
These communities will not be suspended and will continue their eligibility for the sale of insurance. A notice withdrawing the suspension of the communities will be published in
the Federal Register

.

In addition, FEMA has identified the Special Flood Hazard Areas (SFHAs) in these communities by publishing a Flood Insurance Rate Map (FIRM). The date of the FIRM, if one has been published, is indicated in the fourth
column of the table. No direct Federal financial assistance (except assistance pursuant to the Robert T. Stafford Disaster Relief and Emergency
Assistance Act not in connection with a flood) may legally be provided for construction or acquisition of buildings
in identified SFHAs for communities not participating in the NFIP and identified for more than a year, on FEMA’s initial flood insurance map of the community as having flood-prone areas (section 202(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4106(a), as amended). This prohibition against certain types of
Federal assistance becomes effective for
the communities listed on the date
shown in the last column. The
Administrator finds that notice and public comment under 5 U.S.C. 553(b) are impracticable and unnecessary
because communities listed in this final rule have been adequately notified.

Each community receives 6-month, 90-day, and 30-day notification letters
addressed to the Chief Executive Officer stating that the community will be suspended unless the required floodplain management measures are met prior to the effective suspension
date. Since these notifications were made, this final rule may take effect within less than 30 days.

National Environmental Policy Act. This rule is categorically excluded from the requirements of 44 CFR part 10,
Environmental Considerations. No


## United States Environmental Protection Agency

Region IX Air Division

Technical Support Document

for EPA’s Notice of Proposed Rulemaking

for the California State Implementation Plan as submitted by the California Air Resources Board

EPA’s Analysis of San Joaquin Valley Unified Air Pollution Control District’s Rule 4402, Crude Oil Production Sumps

October 2010

Prepared by Joanne Wells

Approved by Andrew Steckel

### 2



## San Joaquin Valley Unified Air Polluti on Control District (SJVUAPCD)

Submitted Rule

 Rule 4402, Crude Oil Production Sumps originally adopted on April 11, 1991 as Rule 465.2, amended on December 17, 1992, and submitted on August 24, 2007. The submittal was determined complete on September 17, 2007. There are no other

submittals of this rule on which EPA has not acted.

Applicable SIP Rule

 The SIP-approved rule is SJVUAPCD Rule 465.2, Crude Oil Produc tion Sumps adopted on April 11, 1991, amended on September 19, 1 991 and approved into SIP on December 13, 1994 (59 FR 64132).

Background On January 2, 2008 (73 FR 48), EPA published a di rect final approval of revisions to the California State Implementation Plan (SIP). Thes e revisions concerned local rules that address reduction of animal matter, and volatile orga nic compound (VOC) emissions from crude oil operations and petroleum refinery equipment, asphalt paving and maintenance, and petroleum solvent dry cleaning. The direct final action was published without prior proposal because EPA anticipated no adverse comment. The direct final rule stated that if adverse comments were received by February 1, 2008, EPA would publ ish a timely removal in the Federal Register. EPA received a timely adverse comment. Consequen tly, we removed the direct final approval of SJVUAPCD Rules 4104, 4402, 4404, 4453, 4454, 4625, 4641, and 4672. (See 73 FR 13440)

In today’s action we are addr essing SJVUAPCD Rule 4402. We do not intend to take final action based on our January 2008 proposal regarding this rule. As a result, we are not providing a thorough summary or reply to comments submitted in response to our January 2008 proposal regarding the SJVUAPCD Rule. Generally, the comments included concerns regarding the estimated emissions from crude oil sumps, the large number of exemptions in the rule and whether this rule complied w ith the requirements for reasona bly available control technology (RACT) described in CAA Sec tion 182(b)(2) and elsewhere.

Purposes of Rule and Rule Amendments Section 110(a) of the CAA require s states to submit regulations that control VOCs, oxides of nitrogen, particulate matter, and other air pollutants which harm human health and the environment. This rule was developed as part of the local agency’s program to control VOC emissions. Specifically, Rule 4402 is designe d to limit VOC emissions from crude oil production sumps.

Rule amendments include:

 The rule has been renumbered and the format updated.

 Rule purpose is added.

 Definition of VOC is deleted.

 The exemptions for sumps at petroleum refine ries (I.A) and the exemption for pits and ponds (I.B) have been moved from Section I (Applicability) to Sec tion 4.0 (Exemptions)

as sections 4.1.6 and 4.1.7.

### 3



## Rule Evaluation Criteria EPA is primarily using the following three criteria to evaluate Rule 4402.

1. Enforceability – CAA §110(a)(2)(A) requires that regulations submitted to EPA for SIP approval must be clear and legally enforceable.

2. Anti-Backsliding - CAA §110(l) restricts certain SIP revisions that would relax existing SIP-approved requirements.

3. 

## Rule Stringency – CAA §172(b) and 182( a)(2)(A) require ozone nonattainment areas to implement RACT for ozone pr ecursors. The SJVUAPCD regulates an

extreme 1-hr ozone nonattainment area a nd an extreme 8-hr ozone nonattainment area (see 40 CFR part 81) and must fulfill the requirements of RACT.

RACT Discussion

A. SJVUAPCD 2009 RACT Demonstration

On April 16, 2009, SJVUAPCD adopted its “RAC T Demonstration for Ozone SIP,” which provides the District’s demonstration that RACT is implemented for all appropriate sources. This includes several pages discussing Rule 4402. (See Cover and applicable pages attached.) In summary, SJVUAPCD states that:

 The 2007 emissions inventory estimated VOC emissions from crude oil sumps in the district at approximately 2.6 tons/day. This updated emissions estimate is based on survey data collected from oil producers for 2007. See attachment 3, 2007 Area Source Emissions Inventory Methodology, 310- O il Production Fugitive Losses.

 This emissions estimate of 2.6 tons/day is in contrast to SJVUAPCD’s previous emissions estimate of 3 to 60 tons/day based on 1990’s data from the Department of Oil, Gas, and Geothermal Energy database. This data was largely found to be inaccurate and did not account for many closed and inactive sumps. See SJVUAPCD’s RACT Demonstration for Ozone SIP for further explanation.

 There are no national guida nce (CTG or ACT) or re gulation (NSPS, NESHAP, or MACT) to help define RACT for this category.

 Rule 4402 imposes similar requirements to those in Ventura County Air Pollution Control District (VCAPCD) Rule 71.4. A lthough VCAPCD’s rule does not allow 1 st


## stage sumps and SJVUAPCD Rule 4402 does allow 1 st 

## stage sumps, SJVUAPCD does not believe that Rule 4402 is less stringe nt. In addition, the 2007 emissions inventory survey data shows that there are no active 1 st 

## stage sumps operating in SJVUAPCD (see attachment 3).

 Santa Barbara County (SBCAPCD) is the only other California dist rict that exempts small producers of light or heavy crude (l ess than 150 barrels/day) from regulation. SJVUAPCD exempts small producer 2 nd 

## and 3 rd 

## stage sumps less than 1000 square feet surface area used for only heavy crude oil (small producer is less than 6000 barrels/day at all locations in county). SJVUAPCD al so exempts very small producers (150

### 4



## barrels/day) with 2 nd 

## and 3 rd 

## stage sumps less than 5000 square feet surface area used only for heavy crude oil. SJVUA PCD states that their exemp tions for small producers are similar to the SBCAPCD exemption.

 Based on low true vapor pressure (TVP) and low emissions from heavy crude, the VOC

emissions from 2 nd 

## and 3 rd 

## stage sumps from small and very small producers are relatively low and to require them to insta ll and operate a fixed or floating cover would not be economically feasible. SJVUAPCD estim ated the cost effectiveness of a rigid floating cover for a 5000 sq. ft. second stag e sump containing hea vy crude oil to be $64,800 per ton of VOC reduced. (See RACT De monstration for Ozone SIP, Page 4-79)

 Exemptions for minimal VOC emissions (0.007 lbs/sq.ft./day) and clean produced water (35 milligrams/liter) are still appropriate b ecause the emissions are very low and installing controls would be economically infeasible. SJVUAPC D states that the cost of controlling VOC emissions from these low emission sumps and ponds would be significantly higher than the co st of controlling emissions from the heavy crude oils sumps ($64,800 per ton of VOC reduced for 2 nd 

## stage, as noted above).

B. Requirements found in other California District Rules

The following is a list of more stringent requir ements found in analogous rules from neighboring agencies:

 South Coast (SCAQMD) Rule 1176 and Sa n Luis Obispo (SLOCAPCD) Rule 419 require floating covers to ha ve seals and the gap cannot exceed 1/8” for a cumulative length of 97% of the perimeter. Rule 4402 allows a 1 inch gap and does not require

seals.

 SCAQMD Rule 1176 and SBCAPCD Rule 344 requi re that fixed c overs be equipped with an air pollution control (APC) device wi th a control efficiency of 95% of VOCs. Rule 4402 only requires a pressure/vacuum valve set to within ten percent of maximum safe working pressure of cover.

 SCAQMD Rule 1176 requires monthly to annu al inspections for leaks and testing operation of APC equipment. Rule 4402 does not require inspections.

 SJVUAPCD Rule 4402 has a large number of exemptions either not found or broader

and less restrictive than exem ptions found in other district rules. These exemptions allow uncontrolled VOC emissions from exempted 2 nd 

## and 3 rd 

## stage sumps and ponds. See detailed review of exemptions below.

 Rule 4402 does not define “intermittent” as used in Section 3.7 definition of Pit or place any limit on the amount of time oily wa ter can be kept in an emergency pit before it is cleaned up. SLOCAPCD Rule 419 requires clean-up to begin within 24 hours and limits clean-up to 15 days and S BCAPCD Rule 344 limits use of pits to less than 30 days per year. Lack of a time limit would allow uncontrolled emissions

for an unlimited amount of time.

C. Discussion of Rule 4402 Exemptions

Rule 4402 includes a number of exemptions wher e requirements of the rule do not apply. The following is a brief review a nd discussion of all the exem ptions listed in the rule.

### 5



## 1. Small producers and very small producers (4.1.1 & 4.1.3):

 Exempts small producer (6000 barrels/day av erage over 2 years from all operations within the county) 2 nd 

## and 3 rd 

## stage sumps that are less than 1000 sq. ft surface area and are only used for heavy crude oil.

 Also exempts very small producer (300 barre ls/day average over 2 years from all operations in the county and only 50 barrels /day per lease) 2nd and 3rd stage sumps that are less than 5000 sq. ft. surface and that are solely used for heavy crude oil.

 The only other California di strict rule found that exempts small producer 2 nd 

## & 3 rd


## stage sumps is SBCAPCD Rule 344 which exempts small producers (less than 150 barrels/day average over 1 year) with no rest riction on surface area of sump or type of

crude oil.

 SBCAPCD Rule 344 also exempts any 2 nd 

## or 3 rd 

## stage sump less than 1000 sq. ft

surface area.

 SLOCAPCD Rule 419 exempts pits, ponds, and sumps less than 100 sq. ft. surface

area.

 In the RACT Demonstration, SJVUAPCD es timates the cost effectiveness for controlling the emissions from a 5000 sq. ft 2 nd 

## stage sump containing heavy crude oil to be about $64,800 per ton of VOC reduced a nd that the cost per ton would be even higher for 3 rd 

## Stage sumps. The district then concludes that due to economic infeasibility, they believe that these ex emptions for small and very small producers are still appropriate. (See page 4-79 of SJVUAPCD RACT Demonstration for Ozone SIP)

2. 2 nd 

## and 3 rd 

## stage sumps used solely for clean pr oduced water containing less than 35 mg/l VOCs (4.1.2).

 SCAQMD, VCAPCD, and SLOCAPCD rules exem pt sumps used for wastewater that do not exceed 5 mg/l of VOCs.

 SJVUAPCD’s RACT analysis st ates that the emissions from clean produced water are significantly less than heavy crude a nd the cost for controlling emissions from these low emission sumps would be significan tly higher per ton of VOC reduced than for heavy crude oil sumps. Due to this higher cost, it would be economically

infeasible to control these emissions and th erefore this exemption is appropriate.

3. Any sump with estimated emissions of 0.007 lb s/sf-day or less as established by ARB flux-box method (4.1.4).

 Emissions of 0.007 lbs/sf-day is slightly lower than the uncontrolled emissions factor for light crude from 3 rd 

## stage sumps (0.008 lbs/sf-day), and slightly higher than the

emission factor for 3 rd 

## stage sumps for heavy crud e oil (0.005 lbs/sf-day).

 Therefore, it is likely that 3 rd 

## stage light crude oil sumps would not be exempt, but 3 rd


## stage heavy crude oil sumps could be exem pt. We do not know if this exemption is used by any crude oil producers at this time.

 SJVUAPCD states in their RACT analysis th at controlling emissions from these low emission sumps would be economically in feasible as stated above for sumps containing only clean produced water.

 No other California district rule wa s found to have a similar exemption.

4. Any sump used less than 7 days in one month and not more than 21 days per year (4.1.5).

 No other districts were found to have a similar exemption.

5. Sumps at petroleum refineries (4.1.6)

### 6



##  Sumps located at petroleum refineries are exempt.

 Rule 4402 is intended to control emissions from crude oil production sumps and is not meant to address sumps at petroleum refineries.

6. Pits or Ponds (4.1.7)

 Pits by definition in Rule 4402 are used only intermittently or for emergency

collection of crude oil and water and not for oil water separation.

 SBCAPCD exempts pits used for emergencies that are used less than 30 days per year and VCAPCD also exempts emergency pits.

 SLOCAPCD exempts emergency pits if cleanup is implemente d within 24 hours and is completed within 15 days.

 Ponds by definition in Rule 4402 are used only to store clean produced water (less than 35 mg/l VOCs) and not used fo r separation of oil and water.

 SCAQMD and other air districts set the lim it for clean water at 5 mg/l of VOCs.

 We understand that many ponds in the San Joaquin Valley have been closed under Regional Water Quality Control Board (RWQ CB) order, but other ponds continue to operate in the district. (See Attachment 5)

 These ponds can cover many acres and handle a large volume of oily wastewater (as much as a million gallons per day). For example, see RWQCB Order No. R5-2002- 0223, Waste Discharge Requirements for Va lley Waste Disposal Company, Broad Creak No. 2 Facility (Attachment 4). Emi ssions from these ponds are not included in

SJVUAPCD’s current VOC emissions estimat e (2.6 ton/day) for crude oil sumps because they are exempt. It is not know n if the VOC emissions from the ponds are significant or not. The ponds that initially r eceive wastewater from oil production would have the highest VOC concentrati ons and are of particular concern.

Rule Evaluation

A. Enforceability and Anti-Backsliding

The amendments to this rule are largely admini strative, do not substan tively change or relax requirements, but make the rule slightly clear er and more consistent with other SJVUAPCD rules. The rule is generally enforceable, alt hough several test methods are outdated and/or inappropriate.

B. RACT

We concur with SJVUAPCD’s analysis that Rule 4402 imposes some requirements that are similar to the requirements found in other Californ ia district rules for co ntrolling VOC emissions from crude oil sumps. However, SJVUAPCD has not adequately demonstrated that Rule 4402 implements RACT in light of the more stringe nt requirements found in these rules from other California air districts, some of which are in attainment or are de signated as moderate

nonattainment for ozone.

C. Rule Deficiencies

The following deficiencies preclude full approval of Rule 4402 into the SIP.

### 7



## 1. SJVUAPCD should strengthen these requirements to help implement RACT or demonstrate why such improvements are not appropriate in light of analog ous requirements in neighboring districts.

a. Section 5.1.2 allows a 1 inch gap and does not require seals for rigid floating covers. In contrast, SCAQMD Rule 1176(e)(2)(B)(vi) a nd SLOCAPCD Rule 419 D.2.e. require rigid floating covers to have seals, the gap cannot exceed 1/8” for a cumulative length of 95% of the perimeter, and no single gap may exceed 1⁄2 inch.

b. Section 5.2.5 requires fixed covers to be equippe d with a pressure/vacuum valve set to within ten percent of maximum safe working pressu re. In contrast, SC AQMD Rule 1176(2)(A)(ii) and (6)(A) and SBCAPCD Rule 344 D.2.b.2 require that fixed covers be equipped with a

95% efficient Air Pollution Control (APC) device.

c. Rule 4402 does not require periodic inspection of covers and APC equipment to ensure proper operation. In contrast, SCAQMD Rule 1176( f)(C) requires periodic leak inspection and APC testing.

d. Rule 4402 has exemptions that are more broad than those found in other district rules. SJVUAPCD should analyze whether these exemp tions continue to be appropriate. This analysis should consider more current cost data than used in th e 2009 RACT Analysis, and should consider alternative disposal me thods (e.g., underground injection, tanks, or additional pretreatment) in addition to sump and pond covers. The following exemptions are of particular concern:

 Uncontrolled VOC emissions from exempted 2 nd 

## and 3 rd 

## stage sumps. Section 4.1.1 exempts operations less than 6000 barrels pe r day with sumps less than 1000 sf and section 4.1.3 exempts operations less than 300 barrels per day with sumps less than 5000 sf from substantive requirements. No othe r neighboring districts allow exemptions for small producers except for SBCAPCD Rule 344, which is more restrictive.

 Section 4.1.7 exempts ponds of “clean produced water” with less th an 35 mg/l VOC from Rule 4402 requirements. In contrast, SCAQM D Rule 1176(i)(5)(J), VCAPCD Rule 71.4

C.1.c and SLOCAPCD Rule 419 C.4 exem pt wastewater sumps only where the VOC/ROC content does not exceed 5 mg/l at th e inlet. Of particular concern are VOC emissions from the ponds that initially rece ive the oily wastewater from oil production facilities. Alternatives including additional pretreatment to lower the VOC content and other disposal methods such as unde rground injection should be evaluated.

e. Rule 4402 does not limit the time that oil or oi ly water can be kept in an emergency pit. In contrast, SLOCAPCD Rule 419 C. 2 requires cl ean-up to begin within 24 hours and finish within 15 days.

f. Rule 4402 allows 1 st 

## stage sumps. In contrast, SBCAPCD Rule 344 and VCAPCD Rule 71.4 do not allow the operation of 1 st 

## stage sumps.

g. Provisions should be added in Rule 4402 or Rule 4623 (Storage of Organic Liquids) that

ensure that tanks us ed to replace the 1 st 

## stage crude oil sumps have adequate VOC controls. We understand that many 1 st 

## stage sumps have already been re placed with tanks; the district

should ensure that emission controls for all these tanks are adequate.

2. The following revisions are needed to improve ru le clarity and enforceab ility consistent with CAA section 110(a).

a. Please remove the language at the end of S ection 5.3 that states “If replacement tank

### 8



## exclusively serves identical function of sump replaced, perm itting of such tank shall not be considered an emission change for th e purposes of Rule 2201 (New and Modified Source Review Rule)”. Any exemptions to NSR requirements should be evaluated in the context of SJVUAPCD’s NSR program (e.g., Rule 2020) and incorporated within the NSR program only if appropriate. Such exemptions should not be in source specific prohibitory rules like Rule 4402.

b. Revise section 6.2 Test Methods to remove and/or replace in appropriate or outdated test methods such as 6.2.1 ARB Method 432, which is designed for paints and coatings and not oily wastewater. We also recommend a dding EPA Test Method 21 in section 6.2 for determining leaks.

c. Update the definition of clean product wate r (Section 3.1) replacing outdated EPA Test Methods 4.13.2, 418.2 and 8240 that used CFC-113 as the extraction solvent. The new test methods using non-CFC extraction solvents are EPA Method 1664A and EPA Method 8260. See guidance documents referenced below.

d. Please revise section 6.1 (Recordkeeping) to:

 Add requirement for fac ilities to keep records of all in spections for leaks and testing of APC devices (for example, see SCAQMD Rule 1176 (g) (1)).

 Add requirement to document use of emer gency pits, including when use started, clean-up started and clean-up finished.

 Require documentation justifying any exempti ons claimed under section 4, including 4.1.7, which exempts pits and ponds.

 Add requirements to verify the sump surf ace area and the annual production rates for both the small producers and very small producers in section 6.1.1.

 Add requirement to keep all records for at least two, and preferably five years.

EPA Action The revisions to submitted Rule 4402 are largely ad ministrative changes that marginally improve the SIP, but the deficiencies discussed above preclude full ap proval. As a result, EPA staff recommends a simultaneous limited approval and limited disapproval of the August 24, 2007 submittal of SJVUAPCD Rule 4402 pursuant to s ection 110(k) of the CAA as amended in 1990. If finalized as proposed, the rule deficiencies identified above would trigger CAA Section 110(m) sanction and Section 110(c) federal implem entation plan (FIP) obligations because the San Joaquin Valley is an extreme nonattainment area for ozone and is required to implement

RACT.

EPA Recommendations The following revisions are not currently the basi s for rule disapproval, but are recommended as improvements when this rule is amended.

1. We suggest deleting section 7.0 Compliance Sc hedule since it is no longer applicable.

2. We suggest increasing the requirements for test ing wastewater at each inlet to the clean produced water ponds from annually to least qua rterly to ensure ongoing compliance with

wastewater VOC limits.

3. Rule 4402 does not include controls for cr ude oil well cellars. We suggest that SJVUAPCD evaluate whether to include requi rements for controlling emissions from

crude oil well cellars in Rule 4402 or as a separate rule.

### 9



## Guidance and Policy Documents Guidance and policy documents that we used to help evaluate rules and RACT requirements consistently include the following:

1. Portions of the proposed post-1987 ozone and carbon monoxide policy that concern RACT, 52 FR 45044 (November 24, 1987).

2. Requirements for Preparation, Adoption, and Submittal of Implementation Plans, U.S. EPA, 40 CFR part 51.

3. Addendum to the General Preamble for the Implementation of Title I of the Clean Air Act Amendments of 1990, 59 FR 41998 (August 16, 1994).

4. Issues Relating to VOC Regula tion Cutpoints, Deficiencies , and Deviations, EPA (May 25, 1988). [The Bluebook]

5. Guidance Document for Correcting Common VOC & Other Rule Deficiencies, EPA Region 9 (August 21, 2001). [The Little Bluebook]

6. RACT Qs & As-Reasonably Available C ontrol Technology (RACT): Questions and

Answers , EPA, William T. Harnett, May 18, 2006.

7. Clean Water Act Analytical Methods, Method 1664A, Oil and Grease
http://www.epa.gov/waterscience/ methods/method/oil/oilfaq.html


## 8. Test Methods for Evaluating Solid Waste, Physical/Chemical Methods (SW-846) Method 8260, U.S. EPA. http://www.epa.gov/epaw aste/hazard/testmethods/s w846/online/index.htm



## Attachments

1. Submitted SJVUAPCD rules plus ap plicable SIP SJVUAPCD rules.

2. 2009 RACT SIP, SJVUAPCD (April 16, 2009). [Cover plus sections relevant to SJVUAPCD Rule 4402].

3. 2007 Area Source Emissions Inventory Methodology: 310-Oil Production Fugitive

Losses , SJVUAPCD Rev. Date: 23 Jan 09.

4. Order No. R5-2002-0223, Waste Discharge Requ irements for Valley Wastse Disposal Company,, Broad Creek No. 2 Facility, Mi dway-Sunset & Buena Vista Oil Fields

, Kern County, California Regional Water Qual ity Control Board, Central Valley Region.

5. Record of telephone conversation, between Joanne Wells, EPA, and Doug Wachtell, RWQCB, 5/26/10.

## SAN JOAQUIN VALLEY UNIFIED AIR POLLUTION CONTROL DI STRICT

Appendix D: EPA Documents December 15, 2011

D - 18 Final Draft Staff Report with Appendices for Revised Proposed Amendments to Rule 4402 

## This page intentionally blank.