[Federal Register Volume 60, Number 63 (Monday, April 3, 1995)]
[Rules and Regulations]
[Pages 16798-16801]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8042]



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[[Page 16799]]

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 83-5-6889a; FRL-5165-5]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, Bay Area Air Quality Management 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on revisions to the 
California State Implementation Plan (SIP). The revisions concern rules 
from Bay Area Air Quality Management District (BAAQMD). This approval 
action will incorporate these rules into the federally approved SIP. 
The intended effect of approving these rules is to regulate emissions 
of volatile organic compounds (VOCs) in accordance with the 
requirements of the Clean Air Act, as amended in 1990 (CAA or the Act). 
The revised rules control VOC emissions from organic liquid bulk plants 
and terminals, surface coating of miscellaneous metal parts and 
products, aerospace assembly and component coating operations, flexible 
and rigid disc manufacturing, gasoline bulk terminals, gasoline bulk 
plants, and gasoline delivery vehicles. One of the rules concerns the 
submittal of VOC and NO<INF>X emissions data to the district. Thus, EPA 
is finalizing the approval of these revisions into the California SIP 
under provisions of the CAA regarding EPA action on SIP submittals, 
SIPs for national primary and secondary ambient air quality standards 
and plan requirements for nonattainment areas.
DATES: This action is effective on June 2, 1995 unless adverse or 
critical comments are received by May 3, 1995. If the effective date is 
delayed, a timely notice will be published in the Federal Register.

ADDRESSES: Copies of the rule revisions and EPA's evaluation report for 
each rule are available for public inspection at EPA's Region IX office 
during normal business hours. Copies of the submitted rule revisions 
are available for inspection at the following locations:

Rulemaking Section (A-5-3), Air and Toxics Division, U.S. Environmental 
Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 
94105.
Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street, 
SW., Washington, DC 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 92123-1095.
Bay Area Air Quality Management District, 939 Ellis Street, San 
Francisco, CA 94109.

FOR FURTHER INFORMATION CONTACT: Helen Liu, 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-
1199.

SUPPLEMENTARY INFORMATION:

Applicability

    The rules being approved into the California SIP include the 
following BAAQMD rules: Rule 8.6, Organic Liquid Bulk Terminals and 
Bulk Plants, Rule 8.19, Surface Coating of Miscellaneous Metal Parts 
and Products, Rule 8.29, Aerospace Assembly and Component Coatings 
Operations, Rule 8.33, Gasoline Bulk Terminals and Gasoline Delivery 
Vehicles, Rule 8.38, Flexible and Rigid Disc Manufacturing, Rule 8.39, 
Gasoline Bulk Plants and Gasoline Delivery Vehicles, and Rule 2.1, 
Section 429, Emissions Statement. These rules were submitted by the 
California Air Resources Board (CARB) to EPA on September 28, 1994, 
except for Rule 8.6, which was submitted on May 24, 1994, and Rule 2.1, 
Section 429, which was submitted October 19, 1994.

Background

    On March 3, 1978, EPA promulgated a list of ozone nonattainment 
areas under the provisions of the Clean Air Act, as amended in 1977 
(1977 Act or pre-amended Act), that included the San Francisco-Bay 
Area. 43 FR 8964, 40 CFR 81.305. Because this area 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. (40 CFR 52.222). On May 26, 
1988, EPA notified the Governor of California, pursuant to section 
110(a)(2)(H) of the 1977 Act, that the above districts' portions of the 
California SIP were 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, the Clean Air Act 
Amendments of 1990 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 EPA's SIP-Call used that 
guidance to indicate the necessary corrections for specific 
nonattainment areas. The Bay Area is classified as moderate<SUP>2; 
therefore, this area was subject to the RACT fix-up requirement and the 
May 15, 1991 deadline.

    \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\ The Bay Area has 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 55 FR 56694 
(November 6, 1991).
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    The State of California submitted many revised RACT rules for 
incorporation into its SIP on May 24, 1994, September 28, 1994, and 
October 19, 1994, including the rules being acted on in this notice. 
This document addresses EPA's direct-final action for the BAAQMD rules 
cited above. BAAQMD adopted Rule 8.6 on February 2, 1994, Rule 8.19, 
Rule 8.38, and Rule 2.1, Section 429 on June 15, 1994, and Rule 8.29, 
Rule 8.33, and Rule 8.39 on June 1, 1994. These submitted rules were 
found to be complete on July 14, 1994 (Rule 8.6), on November 22, 1994 
(Rules 8.19, 8.29, 8.33, 8.38, 8.39), and on December 1, 1994 (Rule 
2.1, Section 429). These rules were found complete pursuant to EPA's 
completeness criteria that are set forth in 40 CFR part 51 Appendix 
V<SUP>3 and are being finalized for approval into the SIP.

    \3\ 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 8.6 controls volatile organic compounds (VOC) emissions from 
transfer operations at non-gasoline organic liquid bulk plants and 
terminals. Rule 8.19 limits the VOC emissions from the coating of 
miscellaneous metal parts and products. Rule 8.29 limits the emission 
of VOCs from the surface preparation and coating of aerospace 
components and cleanup of aerospace coating equipment. Rule 8.33 
[[Page 16800]] controls VOC emissions from transfer operations at 
gasoline bulk terminals. Rule 8.38 limits the emission of VOCs from the 
manufacture of flexible and rigid magnetic data storage discs. Rule 
8.39 controls VOC emissions from transfer operations at gasoline bulk 
plants. Rule 2.1, Section 429 requires certain VOC and NO<INF>X 
facility owners to report VOC and oxides of nitrogen (NO<INF>X) 
emissions data annually to the district. VOC and NO<INF>X emissions 
contribute to the production of ground level ozone and smog. These 
rules were originally adopted as part of the Bay Area's effort to 
achieve the National Ambient Air Quality Standard (NAAQS) for ozone and 
in response to EPA's SIP-Call and the section 182(a)(2)(A) CAA 
requirement. The following is EPA's evaluation and final action for 
these rules.

EPA Evaluation and 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. 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 Rule 8.19 is entitled ``Control of Volatile Organic 
Emissions from Existing Stationary Sources--Volume VI: Surface Coating 
of Miscellaneous Metal Parts and Products'' [EPA-450/2-78-015]. The CTG 
entitled ``Control of Hydrocarbons from Tank Truck Gasoline Loading 
Terminals'' [EPA-450/2-77-026] applies to Rule 8.6 and Rule 8.33. The 
CTG entitled ``Control of Volatile Organic Emissions from Bulk Gasoline 
Plants'' [EPA-450/2-77-035] applies to Rule 8.6 and Rule 8.39. The CTG 
entitled ``Control of Volatile Organic Compound Leaks from Gasoline 
Tank Trucks and Vapor Collection Systems'' [EPA-450/2-78-051] applies 
to Rule 8.33 and Rule 8.39. Further interpretations of EPA policy are 
found in the Blue Book, referred to in footnote 1, and in ``Model 
Volatile Organic Compound Rules for Reasonably Available Control 
Technology,'' Office of Air Quality Planning Standards, June 1992. In 
general, these guidance documents have been set forth to ensure that 
VOC rules are fully enforceable and strengthen or maintain the SIP.
    BAAQMD's submitted Rule 8.6, Organic Liquid Bulk Terminals and Bulk 
Plants includes the following significant changes from the current SIP:
    <bullet> The mass emission limit for bulk terminals was lowered 
from 0.65 lb/1000 gallons to 0.17 lb/1000 gallons,
    <bullet> Mass emission limits were added for bulk plants (0.35 lb/
1000 gallons) and for deliveries to storage tanks (0.17 lb/1000 
gallons),
    <bullet> The rule now covers liquids with vapor pressures greater 
than 0.5 psia.
    BAAQMD's submitted Rule 8.19, Surface Coating of Miscellaneous 
Metal Parts and Products includes the following significant changes 
from the current SIP:
    <bullet> Exemptions include compliant powder coatings and low usage 
coatings,
    <bullet> Certain coatings with limits that exceed the VOC content 
limits in the CTG are allowed,<SUP>4

    \4\EPA has determined that emissions resulting from the higher 
limits do not represent a significant difference from the allowable 
emissions under the applicable CTG standards and that they fall 
within the ``5% Rule'' in the Blue Book. The ``5% Rule'' allows 
states to depart from a CTG standard upon a demonstration that the 
departure results in ``no significant difference'' in emissions 
(i.e. less than 5% from the CTG allowable).
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    <bullet> Petition requirements for low usage and specialty coatings 
are introduced,
    <bullet> Emission reduction credits must be adjusted to reflect 
federal RACT.
    BAAQMD's submitted Rule 8.29, Aerospace Assembly and Component 
Coating Operations includes the following significant changes from the 
current SIP:
    <bullet> The low usage coating exemption is 200 gallons per 
facility per calendar year,
    <bullet> Operations that use less than 20 gallons of coating in any 
calendar year are exempt from certain recordkeeping requirements,
    <bullet> The abatement efficiency for control of emissions from 
non-compliant coatings must be at least 85%,
    <bullet> Petition requirements for low usage coatings are 
introduced.
    BAAQMD's submitted Rule 8.33, Gasoline Bulk Terminals and Gasoline 
Delivery Vehicles includes the following significant changes from the 
current SIP:
    <bullet> The emission limit for vapor recovery systems was lowered 
from 0.55 lb/1000 gallons to 0.08 lb/1000 gallons,
    <bullet> Test methods were updated.
    BAAQMD's submitted Rule 8.38, Flexible and Rigid Disc Manufacturing 
includes the following major elements:
    <bullet> Total control efficiency must be at least 85% for disc 
coating and polishing lines,
    <bullet> Coating mixing operation requirements specify dimensions 
and materials for the vats.
    BAAQMD's submitted Rule 8.39, Gasoline Bulk Plants and Gasoline 
Delivery Vehicles includes the following significant changes from the 
current SIP:
    <bullet> The emissions limit for vapor recovery systems was lowered 
from 0.55 lb/1000 gallons to 0.50 lb/1000 gallons,
    <bullet> Test procedures were either added or updated.
    BAAQMD's submitted Rule 2.1, Section 429, Emissions Statement 
includes the following major issue:
    <bullet> Certain VOC and NO<INF>X facility owners are required to 
report emissions data annually to the district.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, BAAQMD's Rule 8.6, Organic Liquid Bulk Terminals and Bulk 
Plants, Rule 8.19, Surface Coating of Miscellaneous Metal Parts and 
Products, Rule 8.29, Aerospace Assembly and Component Coatings 
Operations, Rule 8.33, Gasoline Bulk Terminals and Gasoline Delivery 
Vehicles, Rule 8.38, Flexible and Rigid Disc Manufacturing, Rule 8.39, 
Gasoline Bulk Plants and Gasoline Delivery Vehicles, and Rule 2.1, 
Section 429, Emissions Statement are being approved under section 
110(k)(3) of the CAA as meeting the requirements of section 110(a) and 
part D.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future 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.
    EPA is publishing this notice without prior proposal because the 
Agency views this as a noncontroversial amendment and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register [[Page 16801]] publication, the EPA is proposing to approve 
the SIP revision should adverse or critical comments be filed. This 
action will be effective June 2, 1995 unless, within 30 days of its 
publication, adverse or critical comments are received.
    If the EPA receives such comments, this action will be withdrawn 
before the effective date by publishing a subsequent notice that will 
withdraw the final action. All public comments received will then be 
addressed in a subsequent final rule based on this action serving as a 
proposed rule. The EPA will not institute a second comment period on 
this action. Any parties interested in commenting on this action should 
do so at this time. If no such comments are received, the public is 
advised that this action will be effective June 2, 1995.

Regulatory Process

    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. Secs. 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 population of less than 
50,000. SIP approvals under sections 110 and 301(a) 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 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 OMB has exempted this action from review under Executive Order 
12866.

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.

    Note: Incorporation by reference of the State Implementation 
Plan for the State of California was approved by the Director of the 
Federal Register on July 1, 1982.

    Dated: February 15, 1995.
Felicia Marcus,
Regional Administrator.

    Subpart F of 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. 7401-7671q.

Subpart F--California

    2. Section 52.220 is amended by adding paragraphs (c) (197)(i)(B), 
(199)(i)(A)(5), (202) introductory text, and (202)(i) to read as 
follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (197) * * *
    (i) * * *
    (B) Bay Area Air Quality Management District.
    (1) Rule 8-6, adopted on February 2, 1994.
* * * * *
    (199) * * *
    (i) * * *
    (A) * * *
    (5) Rules 8-29, 8-33, and 8-39, adopted on June 1, 1994, and Rules 
8-19 and 8-38, adopted on June 15, 1994.
* * * * *
    (202) New and amended regulations for the following APCDs were 
submitted on October 19, 1994, by the Governor's designee.
    (i) Incorporation by reference.
    (A) Bay Area Air Quality Management District.
    (1) Rule 2-1, adopted on June 15, 1994.
* * * * *
[FR Doc. 95-8042 Filed 3-31-95; 8:45 am]
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