[Federal Register Volume 61, Number 84 (Tuesday, April 30, 1996)]
[Rules and Regulations]
[Pages 18959-18962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10566]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA153-2-7274a FRL-5459-3]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision; Ventura County Air Pollution 
Control District; Sacramento Metropolitan Air Quality Management 
Division; Placer County Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).


[[Page 18960]]


ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on revisions to the 
California State Implementation Plan. The revisions concern rules from 
the Ventura County Air Pollution Control District (VCAPCD), the 
Sacramento Metropolitan Air Quality Management Division (SMAQMD), and 
the Placer County Air Pollution Control District (PCAPCD). This 
approval action will incorporate three rules into the federally 
approved SIP. The intended effect of approving these rules is to 
regulate emissions of oxides of nitrogen (NO<INF>X) in accordance with 
the requirements of the Clean Air Act, as amended in 1990 (CAA or the 
Act). The rules control NO<INF>X emissions from natural gas-fired 
central furnaces, stationary internal combustion engines, and biomass 
boilers.

DATES: This action is effective on July 1, 1996, unless adverse or 
critical comments are received by May 30, 1996. If the effective date 
is delayed, a timely notice will be published in the Federal Register.

ADDRESSES: Copies of the rules 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 rules 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, 
S.W., Washington, D.C. 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814.
Ventura County Air Pollution Control District, Rule Development 
Section, 669 County Square Drive, Ventura, CA 93003.
Sacramento Metropolitan Air Quality Management District, Rule 
Development Section, 8411 Jackson Road, Sacramento, CA 95826.
Placer County Air Quality Management District, Rule Development, 11464 
B. Avenue, Auburn, CA 95603.

FOR FURTHER INFORMATION CONTACT: Wendy Colombo, 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) 744-1202.

Applicability

    This notice addresses EPA's direct final action for the following 
rules:
    <bullet> VCAPCD, Rule 74.22, Natural Gas-Fired, Central Fan- Type 
Furnaces;
    <bullet> SMAQMD, Rule 412, Stationary Internal Combustion Engines 
Located at Major Stationary Sources; and
    <bullet> PCAPCD, Rule 233, Biomass Boilers.
    The rules were adopted by the districts, submitted by the State of 
California, and found complete pursuant to EPA's completeness criteria 
set forth in 40 CFR Part 51 Appendix V \1\ on the following dates:
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    \1\ 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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    <bullet> Rule 74.22--November 9, 1993; February 11, 1994; April 11, 
1994.
    <bullet> Rule 412--June 1, 1995; June 23, 1995; June 30, 1995.
    <bullet> Rule 233--October 6, 1994; October 19, 1994; October 21, 
1995.

Background:

    On November 15, 1990, the Clean Air Act Amendments of 1990 (CAA) 
were enacted. Pub. L. 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 notice of proposed rulemaking entitled ``State 
Implementation Plans; Nitrogen Oxides Supplement to the General 
Preamble; Clean Air Act Amendments of 1990 Implementation of Title I; 
Proposed Rule,'' (the NO<INF>X Supplement) which describes the 
requirements of section 182(f). The NO<INF>X Supplement should be 
referred to for further information on the NO<INF>X requirements and is 
incorporated into this document 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 compounds (VOCs), in moderate or above 
ozone nonattainment areas. The Sacramento Metropolitan Area (including 
part of Placer County) and the Ventura County Area are classified as a 
severe nonattainment areas for ozone.\2\. Both areas are subject to the 
RACT requirements of section 182(b)(2), cited above.
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    \2\ The Sacramento Metropolitan (including Placer) and Ventura 
areas were designated nonattainment and 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). The 
Sacramento Metropolitan Area was reclassified from serious to severe 
on June 1, 1995. See 60 FR 20237 (April 25, 1995).
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    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC emissions (not covered by a pre-enactment 
control technique 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 
category 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 by May 31, 1995 for those 
sources where installation by that date is practicable.
    NO<INF>X emissions contribute to the production of ground level 
ozone and smog. The three rules control emissions of NO<INF>X from 
various industries used in a wide variety of applications. The rules 
were adopted as part of the VCAPCD's, SMAQMD's, and PCAPCD's efforts to 
achieve and maintain the National Ambient Air Quality Standards (NAAQS) 
for ozone. All three rules are required to satisfy the mandates of the 
Clean Air Act requirements, and were submitted pursuant to the CAA 
requirements cited above.

EPA Evaluation and 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 interpretations of these requirements, 
which form the basis for this action, appear in the NO<INF>X Supplement 
and various other 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.
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    \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); ``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, cited above (57 FR 55620). In the NO<INF>X 
Supplement, EPA provides guidance on how RACT should be determined for 
major stationary sources of NO<INF>X emissions. The document sets RACT 
emission levels specifically for electric utility boilers. For all 
other source

[[Page 18961]]

categories, EPA expects States/Districts to establish RACT levels 
comparable to those levels for utility boilers taking into account 
cost, cost-effectiveness, and emission reductions.
    While most of the guidance issued by EPA (previous to the NO<INF>X 
Supplement) 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 has issued alternative control techniques documents (ACTs), 
that identify alternative controls for most categories of stationary 
sources of NO<INF>X. The ACT documents 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. While providing guidance and 
information for States to use in making RACT determinations, the ACTs 
do 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 issued by EPA to ensure that submitted NO<INF>X 
RACT rules are fully enforceable and strengthen or maintain the SIP.
    Placer Rule 233 sets NO<INF>X limits at 115 parts per million (ppm) 
corrected to 12% carbon dioxide (0.2096 pounds per million British 
Thermal Units (lb/MMBTU)). This limit corresponds to 162 ppm corrected 
to 3% oxygen. The district believes this limit meets RACT because it is 
similar to the RACT limits that EPA has set for electric utility 
boilers (0.20-0.50 lb/MMBTU). The district set the limits based on 
current emission limitations at existing facilities in Placer county, 
and is not expecting to achieve any further emissions reductions as a 
result of adopting this rule. Additionally, there will be no additional 
costs incurred by the sources subject to this rule as a result of its 
adoption.
    The California Air Resources Board RACT/BARCT Guidance <SUP>4 
document for institutional, commercial, and industrial boilers suggests 
a RACT limit of 70 ppm corrected to 3% O<INF>2 for such units fired 
with gaseous fuel and 115-150 ppm for units fired with fuels other than 
gas. EPA established RACT levels for electric utility boilers and 
recommended for other source categories that States/Districts make RACT 
determinations comparable to those EPA established for electric utility 
boilers. This comparability should be based on several factors 
including cost, cost-effectiveness, and emission reductions. Because of 
the variability in application, equipment, and input and output 
characteristics of different NO<INF>X source categories, comparability 
cannot easily be done solely by comparing the emissions rates. That is 
why EPA suggests that RACT levels should be made in comparison to the 
limits set for electric utility boilers using the factors cited above.
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    \4\ Determination of Reasonably Available Control Technology and 
Best Available Retrofit Control Technology for Industrial, 
Institutional, and Commercial Boilers, Steam Generators, and Process 
Heaters (RACT/BARCT guidance for ICI boilers), California Air 
Resources Board, July 18, 1991.
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    EPA does not necessarily agree that the limits in Rule 233 
represent what would generally be considered RACT for this source 
category, even though the emissions rates are similar to those set for 
utility boilers. However, EPA recognizes that the two sources covered 
by this rule are already applying NO<INF>X reduction technology 
according to their permits (district and federal). One source is 
permitted at 54 ppm at 12% CO<INF>2 and the other at 115 ppm at 12% 
CO<INF>2. Because these sources are currently utilizing NO<INF>X 
controls, EPA believes the cost of achieving additional small 
reductions of NO<INF>X to meet the general RACT limits would be cost 
prohibitive. In addition, PCAPCD is not claiming any emissions 
reductions in their Federal ozone attainment plan for Rule 233 and has 
submitted the rule for incorporation into the SIP to prevent any 
NO<INF>X emissions increases from this source category. Therefore, EPA 
agrees that in this circumstance the limits set in Rule 233 for these 
sources satisfies the RACT requirements of the CAA.
    Ventura Rule 74.22 sets NO<INF>X emission levels at 40 nanograms 
per joule of heat output (ng/J). This limit represents a 75% average 
reduction from typical natural-gas fired furnaces and will be achieved 
from new units being purchased and installed. The limit was chosen so 
as not to require homeowners or businesses to modify furnace enclosures 
when replacing existing furnaces in order to keep the costs 
appropriate. The VCAPCD estimates the cost of compliance at 
approximately $2.24 per pound of NO<INF>X reduced, and expects the rule 
to achieve reductions of 1.5 tons per day. Final compliance is required 
by May 31, 1994.
    Sacramento Rule 412 sets limits for RACT and BARCT in the rule. The 
RACT levels are set at 50/125/700 ppm for rich burn, lean burn, and 
diesel engines, respectively. The BARCT limits are set at 25/65/80 ppm 
for rich, lean, and diesel engines, respectively. The rule is 
structured to allow exemptions from compliance with the emissions 
limits for some units which operate at annual levels that the control 
of which would not be cost-effective. The rule is expected to achieve 
reductions of 2.2 tons per year. RACT is required to be implemented by 
July 1, 1995.
    EPA is incorporating these rules into the SIP because they 
strengthen the SIP through the addition of enforceable measures such as 
NO<INF>X emission limits, recordkeeping, test methods, definitions, and 
compliance tests. EPA believes all three rules for these source 
categories in each district satisfy the RACT requirements of the CAA. A 
more detailed discussion of the sources controlled, the controls 
required, and the analysis of how these controls meet RACT can be found 
in the Technical Support Document (TSD) and its attachments, dated 
November 1995.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations and EPA policy. All three 
rules are new rules establishing RACT for their particular category, 
and contain implementation dates consistent with the CAA and EPA's 
policy. Therefore, all three 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 document 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 publication, the EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. This action will be 
effective July 1, 1996, unless, by May 30, 1996, 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 document 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

[[Page 18962]]

received, the public is advised that this action will be effective July 
1, 1996.

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. 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).

Unfunded Mandates

    Under Sections 202, 203, and 205 of the Unfunded Mandates Reform 
Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 
1995, EPA must undertake various actions in association with proposed 
or final rules that include a Federal mandate that may result in 
estimated costs of $100 million or more to the private sector or to 
State, local, or tribal governments in the aggregate.
    Through submission of this state implementation plan or plan 
revision, the State and any affected local or tribal governments have 
elected to adopt the program provided for under Part D of the Clean Air 
Act. These rules may bind State, local, and tribal governments to 
perform certain actions and also require the private sector to perform 
certain duties. The rules being approved by this action will impose no 
new requirements because affected sources are already subject to these 
regulations under State law. Therefore, no additional costs to State, 
local, or tribal governments or to the private sector result from this 
action. EPA has also determined that this final action does not include 
a mandate that may result in estimated costs of $100 million or more to 
State, local, or tribal governments in the aggregate or to the private 
sector.
    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under the procedures published in the 
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
Air and Radiation. The Office of Management and Budget (OMB) has 
exempted 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, Oxides of 
nitrogen, 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: April 1, 1996.
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)(195)(i)(B), 
(202)(E)(i)(2), and (222)(i)(C)(3) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (195) * * *
    (i) * * *
    (B) Ventura County Air Pollution Control District.
    (1) Rule 74.22, adopted on November 9, 1993.
* * * * *
    (202) * * *
    (i) * * *
    (E) * * *
    (2) Rule 233, adopted on October 6, 1994.
* * * * *
    (222) * * *
    (i) * * *
    (C) * * *
    (3) Rule 412, adopted on June 1, 1995.
* * * * *
[FR Doc. 96-10566 Filed 4-29-96; 8:45 am]
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