[Federal Register Volume 59, Number 50 (Tuesday, March 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5995]


[[Page Unknown]]

[Federal Register: March 15, 1994]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 32-2-6238; FRL-4849-7]

 

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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing to approve revisions to the California State 
Implementation Plan (SIP) which concern the control of emissions of 
volatile organic compounds (VOCs) from the transfer of gasoline into 
storage tanks or fuel tanks, and from crude oil and natural gas 
production and processing facilities. The intended effect of proposing 
approval of these rules is to regulate emissions of VOCs 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 
(NPR) will incorporate these rules into the federally approved SIP. EPA 
has evaluated each of these rules and is proposing to approve them 
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: Comments must be received on or before April 14, 1994.

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 revisions and EPA's evaluation report of each 
rule are available for public inspection at EPA's Region IX office 
during normal business hours. Copies of the submitted rule revisions 
are also available for inspection at the following locations:
    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.
    Ventura County Air Pollution Control District, 702 County Square 
Drive, Ventura, California 93003.

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

    The rules being proposed for approval into the California SIP are 
South Coast Air Quality Management District (SCAQMD) Rule 461, Gasoline 
Transfer and Dispensing, and Ventura County Air Pollution Control 
District (VCAPCD) Rule 74.10, Components at Crude Oil and Natural Gas 
Production and Processing Facilities. These rules were submitted by the 
California Air Resources Board (CARB) to EPA on December 31, 1990 and 
September 14, 1992, respectively.

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 CAA or pre-amended Act), that included the Los Angeles-South 
Coast Air Basin and the Ventura County Area. 43 FR 8964, 40 CFR 81.305. 
Because these areas were 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 52.238. On May 26, 1988, EPA notified the Governor of 
California, pursuant to section 110(a)(2)(H) of the pre-amended 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. 
Public Law 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.1 EPA's SIP-Call used that 
guidance to indicate the necessary corrections for specific 
nonattainment areas. The Los Angeles-South Coast Air Basin is 
classified as extreme, and the Ventura County Area is classified as 
severe;2 therefore, these areas were subject to the RACT fix-up 
requirement and the May 15, 1991 deadline.
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    \1\Among other things, the pre-amendment guidance consists of 
those portions of the proposed post-1987 ozone and carbon monoxide 
policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues 
Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, 
Clarification to Appendix D of November 24, 1987 Federal Register 
Notice'' (Blue Book) (notice of availability was published in the 
Federal Register on May 25, 1988); and the existing control 
technique guidelines (CTGs).
    \2\The Los Angeles-South Coast Air Basin and the Ventura County 
Area retained their designations of nonattainment and were 
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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    The State of California submitted many revised RACT rules for 
incorporation into its SIP on December 31, 1990 and September 14, 1992, 
including the rules being acted on in this document. This document 
addresses EPA's proposed action for SCAQMD Rule 461, Gasoline Transfer 
and Dispensing, and VCAPCD Rule 74.10, Components at Crude Oil and 
Natural Gas Production and Processing Facilities. Rule 461 was adopted 
by SCAQMD on July 7, 1989, and Rule 74.10 was adopted by the VCAPCD on 
June 16, 1992. These submitted rules were found to be complete on 
February 28, 1991 and November 20, 1992 pursuant to EPA's completeness 
criteria that are set forth in 40 CFR part 51, appendix V3 and are 
being proposed for approval into the SIP.
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    \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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    SCAQMD Rule 461 requires Stage I and Stage II vapor control to 
limit emissions of VOCs during the transfer of gasoline into storage 
tanks or fuel tanks. VCAPCD Rule 74.10 sets requirements for control of 
fugitive VOC emissions from crude oil and natural gas production and 
processing facilities. VOCs contribute to the production of ground 
level ozone and smog. The rules were adopted as part of each district's 
efforts 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 
proposed action for these rules.

EPA Evaluation and Proposed Action

    In determining the approvability of a VOC rule, EPA must evaluate 
the rule for consistency with the requirements of the CAA and EPA 
regulations, as found in section 110 and part D of the CAA and 40 CFR 
part 51 (Requirements for Preparation, Adoption, and Submittal of 
Implementation Plans). The EPA interpretation of these requirements, 
which forms the basis for today's action, appears in the various EPA 
policy guidance documents listed in footnote 1. Among those provisions 
is the requirement that a VOC rule must, at a minimum, provide for the 
implementation of RACT for stationary sources of VOC emissions. This 
requirement was carried forth from the pre-amended Act.
    For the purpose of assisting state and local agencies in developing 
RACT rules, EPA prepared a series of Control Technique Guideline (CTG) 
documents. The CTGs are based on the underlying requirements of the Act 
and specify the presumptive norms for what is RACT for specific source 
categories. Under the CAA, Congress ratified EPA's use of these 
documents, as well as other Agency policy, for requiring States to 
``fix-up'' their RACT rules. See section 182(a)(2)(A). The CTG 
applicable to SCAQMD Rule 461 is entitled, ``Control of Volatile 
Organic Compound Leaks from Gasoline Tank Trucks and Vapor Collection 
Systems,'' EPA-450/2-78-051, while the CTG applicable to VCAPCD Rule 
74.10 is entitled, ``Control of Volatile Organic Compound Equipment 
Leaks from Natural Gas/Gasoline Processing Plants,'' EPA-450/3-83-007. 
Further interpretations of EPA policy are found in the Blue Book, 
referred to in footnote 1. In general, these guidance documents have 
been set forth to ensure that VOC rules are fully enforceable and 
strengthen or maintain the SIP.
    SCAQMD Rule 461 includes the following significant changes from the 
current SIP:

    1. Adds definitions, equipment and operating requirements, and 
sign-posting requirements.
    2. Deletes many storage container exemptions.
    3. Changes compliance schedule to require compliance at the start 
of operation.
    VCAPCD Rule 74.10 is a new rule which was adopted to control 
fugitive VOC emissions from components at crude oil and natural gas 
production and processing plants. Its major provisions include:

    1. Operating standards and component leak thresholds.
    2. Inspection and repair requirements, and submission of an 
operator management plan.
    3. Recordkeeping requirements, test methods, and definitions.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, SCAQMD Rule 461 and VCAPCD 74.10 are being proposed for 
approval 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 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 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 populations of less than 
50,000.
    SIP approvals under sections 110 and 301 and subchapter I, part D 
of the CAA do not create any new requirements, but simply approve 
requirements that the State is already imposing. Therefore, because the 
Federal SIP-approval does not impose any new requirements, 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).
    This action has been classified as a Table 3 action by the Regional 
Administrator under the procedures published in the Federal Register on 
January 19, 1989 (54 FR 2214-2225), as revised by an October 4, 1993 
memorandum from Michael H. Shapiro, Acting Assistant Administrator for 
Air and Radiation. A future notice will inform the general public of 
these tables. On January 6, 1989, the Office of Management and Budget 
(OMB) waived Table 2 and Table 3 SIP revisions (54 FR 2222) from the 
requirements of section 3 of Executive Order 12291 for a period of two 
years. EPA has submitted a request for a permanent waiver for Table 2 
and Table 3 SIP revisions. OMB has agreed to continue the waiver until 
such time as it rules on EPA's request. This request continues in 
effect under Executive Order 12866 which superseded Executive Order 
12291 on September 30, 1993.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental relations, Ozone, Reporting and recordkeeping 
requirements.

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

    Dated: March 4, 1994.
Felicia Marcus,
Regional Administrator.
[FR Doc. 94-5995 Filed 3-14-94; 8:45 am]
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