[Federal Register Volume 60, Number 56 (Thursday, March 23, 1995)]
[Proposed Rules]
[Pages 15271-15273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7210]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 32-3-6502; FRL-5177-6]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: EPA is proposing a limited approval and limited disapproval of 
revisions to the California State Implementation Plan (SIP) for ozone. 
These revisions concern the control of oxides of nitrogen (NO<INF>X) 
from stationary gas turbines. The intended effect of proposing limited 
approval and limited disapproval of this rule is to regulate emissions 
of NO<INF>X in accordance with the requirements of the Clean Air Act, 
as amended in 1990 (CAA or the Act). EPA's final action on this notice 
of proposed rulemaking will incorporate this rule into the Federally 
approved SIP. EPA has evaluated this rule and is proposing a 
simultaneous limited approval and limited disapproval under provisions 
of the CAA regarding EPA actions on SIP submittals and general 
rulemaking authority because these revisions, while strengthening the 
SIP, also do not fully meet the CAA provisions regarding plan 
submissions and requirements for nonattainment areas.

DATES: Comments on this proposed action must be received in writing on 
or before April 24, 1995.

ADDRESSES: Comments may be mailed to: Daniel A. Meer, Rulemaking 
Section (A-5-3), Air and Toxics Division, U.S. Environmental Protection 
Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105.
    Copies of the rule and EPA's evaluation report of the rule are 
available for public inspection at EPA's Region IX office during normal 
business hours. Copies of the submitted rule are also available for 
inspection at the following locations:

[[Page 15272]] California Air Resources Board, Stationary Source 
Division, Rule Evaluation Section, 2020 ``L'' Street, Sacramento, CA 
95814.
South Coast Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Mae Wang, Rulemaking Section (A-5-3), 
Air and Toxics Division, U.S. Environmental Protection Agency, Region 
IX, 75 Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-
1200.

SUPPLEMENTARY INFORMATION:

Applicability

    This document addresses EPA's proposed action for South Coast Air 
Quality Management District (SCAQMD) Rule 1134, Emissions of Oxides of 
Nitrogen from Stationary Gas Turbines. This rule was submitted by the 
California Air Resources Board (CARB) on December 31, 1990.

Background

    On November 15, 1990, the Clean Air Act Amendments of 1990 (CAA) 
were enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C. 
7401-7671q. The air quality planning requirements for the reduction of 
NO<INF>X emissions through reasonably available control technology 
(RACT) are set out in section 182(f) of the CAA. On November 25, 1992, 
EPA published a NPRM 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 
Supplement) which describes and provides preliminary guidance on the 
requirements of section 182(f). 57 FR 55620. The November 25, 1992 
notice should be referred to for further information on the NO<INF>X 
requirements and is incorporated into this proposal by reference.
    Section 182(f) of the Clean Air Act requires States to apply the 
same requirements to major stationary sources of NO<INF>X (``major'' as 
defined in section 302 and section 182(c), (d), and (e)) as are applied 
to major stationary sources of volatile organic compound (VOC) 
emissions, in moderate or above ozone nonattainment areas. The Los 
Angeles-South Coast Air Basin is classified as extreme;<SUP>1 therefore 
this area was subject to section 182(f), the RACT requirements of 
section 182(b)(2), and the November 15, 1992 deadline, cited below.

    \1\The Los Angeles-South Coast Air Basin retained its 
designation of nonattainment 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).
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    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC (and NO<INF>X) emissions (not covered by a 
pre-enactment control technologies guidelines (CTG) document or a post-
enactment CTG document) by November 15, 1992. There were no NO<INF>X 
CTGs issued before enactment and EPA has not issued a CTG document for 
any NO<INF>X sources since enactment of the CAA. The RACT rules 
covering NO<INF>X sources and submitted as SIP revisions are expected 
to require final installation of the actual NO<INF>X controls as 
expeditiously as practicable, but no later than May 31, 1995.
    This document addresses EPA's proposed action for SCAQMD Rule 1134, 
Emissions of Oxides of Nitrogen from Stationary Gas Turbines. The 
SCAQMD adopted Rule 1134 on August 4, 1989 and the rule was submitted 
by the CARB on December 31, 1990. This submitted rule was found to be 
complete on February 28, 1991 pursuant to EPA's completeness criteria 
that are set forth in 40 CFR Part 51 Appendix V<SUP>2 and is being 
proposed for limited approval and limited disapproval.

    \2\EPA adopted the 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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    Rule 1134 controls emissions of NO<INF>X from the operation of gas 
turbines of 0.3 megawatt and larger. NO<INF>X emissions contribute to 
the production of ground level ozone and smog. The rule was adopted as 
part of SCAQMD's efforts to achieve the National Ambient Air Quality 
Standards (NAAQS) for ozone and in response to the CAA requirements 
cited above. The following is EPA's evaluation and proposed action for 
this rule.

EPA Evaluation and Proposed Action

    In determining the approvability of a NO<INF>X 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 this action, appears in the NO<INF>X 
Supplement (57 FR 55620) and various EPA policy guidance 
documents.<SUP>3 Among these provisions is the requirement that a 
NO<INF>X rule must, at a minimum, provide for the implementation of 
RACT for stationary sources of NO<INF>X emissions.

    \3\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); and 
``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).
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    For the purposes of assisting state and local agencies in 
developing NO<INF>X RACT rules, EPA prepared the NO<INF>X Supplement to 
the General Preamble. In the NO<INF>X Supplement, EPA provides guidance 
on how RACT will be determined for stationary sources of NO<INF>X 
emissions. While most of the guidance issued by EPA on what constitutes 
RACT for stationary sources has been directed towards application for 
VOC sources, much of the guidance is also applicable to RACT for 
stationary sources of NO<INF>X (see section 4.5 of the NO<INF>X 
Supplement). In addition, pursuant to section 183(c), EPA is issuing 
alternative control technique documents (ACTs), that identify 
alternative controls for all categories of stationary sources of 
NO<INF>X. The ACT documents will provide information on control 
technology for stationary sources that emit or have the potential to 
emit 25 tons per year or more of NO<INF>X. However, the ACTs will not 
establish a presumptive norm for what is considered RACT for stationary 
sources of NO<INF>X. In general, the guidance documents cited above, as 
well as other relevant and applicable guidance documents, have been set 
forth to ensure that submitted NO<INF>X RACT rules meet Federal RACT 
requirements and are fully enforceable and strengthen or maintain the 
SIP.
    Rule 1134 is a new rule which was adopted to control emissions from 
stationary gas turbines. For this source category, CARB has made a 
determination on the emission levels that constitute both RACT and best 
available retrofit control technology (BARCT). BARCT emission levels 
are generally more stringent than RACT levels, and CARB has published a 
guidance document concerning their determination for this source 
category. Sources subject to Rule 1134<SUP>4 are required to meet BARCT 
emission limits and to use continuous emissions monitoring systems 
(CEMS). EPA agrees that the limits incorporated in Rule 1134 meet 
Federal RACT levels, and are consistent with the Agency's guidance and 
policy for making RACT determinations in terms of general cost-
effectiveness, emission reductions, and environmental impacts.

    \4\Rule 1134 will apply to sources which are not covered in the 
SCAQMD NO<INF>X RECLAIM program.
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    Although SCAQMD Rule 1134 will strengthen the SIP, the rule 
contains deficiencies related primarily to the lack [[Page 15273]] of 
Federal enforceability. These deficiencies include Executive Officer 
discretion in approving CEMS, lack of test methods, and lack of 
monitoring requirements to demonstrate exemption eligibility. A more 
detailed discussion of the sources controlled, the controls required, 
justification for why these controls represent RACT, and the rule 
deficiencies can be found in the Technical Support Document (TSD), 
which is available from the U.S. EPA, Region IX office. Because of the 
rule deficiencies, Rule 1134 is not approvable pursuant to section 
182(a)(2), section 182(b)(2), section 182(f) and part D of the CAA, 
because it is not consistent with the interpretation of section 172 of 
the 1977 CAA as found in the Blue Book and may lead to rule 
enforceability problems.
    Because of the above deficiencies, EPA cannot grant full approval 
of this rule under section 110(k)(3) and part D. Also, 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's submitted Rule 1134 under sections 110(k)(3), 
301(a), and 182(f) of the CAA.
    At the same time, EPA is also proposing a limited disapproval of 
this rule because it contains deficiencies which must be corrected in 
order to fully meet the requirements of section 182(a)(2), 182(b)(2), 
182(f), and part D of the CAA. 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 NPRM has been adopted by the 
SCAQMD and is currently in effect in the SCAQMD. EPA's 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.

Regulatory Flexibility

    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 economic 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.
    Limited approvals under section 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, it does not 
have a significant impact on affected small entities. Moreover, due to 
the nature of the Federal-state relationship under the CAA, preparation 
of a regulatory flexibility analysis would constitute Federal inquiry 
into the economic reasonableness of state action. The CAA forbids EPA 
to base its actions concerning SIPs on such grounds. Union Electric Co. 
v. U.S. E.P.A., 427 U.S. 246, 256-66 (S.Ct. 1976); 42 U.S.C. 7410 
(a)(2).
    The Office of Management and Budget has waived this regulatory 
action from Executive Order 12866 review.

List of Subjects in 40 CFR Part 52

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

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

    Dated: March 8, 1995.
John Wise,
Acting Regional Administrator.
[FR Doc. 95-7210 Filed 3-22-95; 8:45 am]
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