[Federal Register Volume 59, Number 203 (Friday, October 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26198]


[[Page Unknown]]

[Federal Register: October 21, 1994]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA-71-3-6350; FRL-5094-8]

 

Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision; Monterey Bay Unified 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 storage of organic liquids, 
gasoline transfer operations, and steam drive wells. The intended 
effect of proposing approval of 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). EPA's final 
action on this notice of proposed rulemaking (NPRM) 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 November 21, 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.
    Monterey Bay Unified Air Pollution Control District, 24580 
Silvercloud Court, Monterey, CA 93940.

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:

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 Monterey Bay 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 district's 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 Monterey Bay Area is classified as 
moderate2; therefore, this area was 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 Monterey Bay Area 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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    This document addresses EPA's proposed action for the following 
rules from the Monterey Bay Unified Air Pollution Control District 
(MBUAPCD): Rule 417, Storage of Organic Liquids; Rule 418, Transfer of 
Gasoline into Stationary Storage Containers; and Rule 427, Steam Drive 
Crude Oil Production Wells. On June 8, 1993, the State of California 
was issued a finding of nonsubmittal for the above rules, thus starting 
an 18 month sanctions clock under section 179(a) of the CAA. In 
addition, section 110(c) of the Act provides that EPA promulgate a 
Federal Implementation Plan (FIP) no later than two years after a 
finding under section 179(a). The rules being acted upon in this 
document were adopted by the MBUAPCD on August 25, 1993 and were 
submitted by the State of California to EPA on November 18, 1993. The 
mandatory sanctions clock was stopped on December 23, 1993 when EPA 
determined that the State had made a complete submittal pursuant to 
EPA's completeness criteria that are set forth in 40 CFR part 51, 
appendix V.3 By this document, EPA is proposing to approve these 
rules into the SIP. Final approval of these rule revisions will 
incorporate the regulations into the federally approved SIP and stop 
the FIP clock.
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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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    Rule 417 controls VOCs associated with organic liquid storage, and 
Rule 418 controls VOCs during the transfer of gasoline from delivery 
vessels into storage containers. Rule 427 controls emissions from oil 
wells where production has been enhanced by steam injection. VOCs 
contribute to the production of ground level ozone and smog. The rules 
were adopted as part of the District's efforts to achieve the National 
Ambient Air Quality Standard (NAAQS) for ozone and in response to 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 
documents applicable to Rule 417 are entitled, ``Control of Volatile 
Organic Emissions from Petroleum Liquid Storage in External Floating 
Roof Tanks,'' EPA-450/2-78-047 and ``Control of Volatile Organic 
Emissions from Petroleum Liquid Storage in Fixed Roof Tanks,'' EPA-450/
2-77-036. The CTG documents applicable to Rule 418 are ``Control of 
Volatile Organic Compound Leaks from Gasoline Tank Trucks and Vapor 
Collection Systems,'' EPA-450/2-78-051 and ``Control of Volatile 
Organic Emissions from Bulk Gasoline Plants,'' EPA-450/2-77-035. For 
some source categories, such as steam-enhanced oil production wells, 
EPA did not publish a CTG. In such cases, the District makes a 
determination of what controls are required to satisfy the RACT 
requirement by reviewing the operations of facilities within the 
affected source category. In that review, the technological and 
economic feasibility of the proposed controls are considered. 
Additionally, for both CTG and non-CTG rules, the District may rely on 
EPA policy documents, such as the Blue Book, to ensure that the adopted 
rules are fully enforceable and strengthen or maintain the SIP.
    MBUAPCD Rule 417, Storage of Organic Liquids, includes the 
following significant changes from the current SIP:

    1. Gap requirements for vapor-mounted primary seals have been 
added.
    2. Recordkeeping, definitions, and test methods have been added.

    MBUAPCD Rule 418, Transfer of Gasoline into Stationary Storage 
Containers, includes the following major changes from the SIP:

    1. An exemption for agricultural tanks has been revised to be 
consistent with EPA policy.
    2. Recordkeeping, definitions, and test methods have been added.
    3. Executive Officer discretion in determining equivalence of 
emission controls has been deleted.

    MBUAPCD Rule 427, Steam Drive Crude Oil Production Wells, includes 
the following significant changes from the SIP:

    1. Operational and repair requirements have been added.
    2. Definitions, reporting, recordkeeping, and test methods have 
been added.
    3. Executive Officer discretion in determining compliance 
equivalency has been deleted.

    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, MBUAPCD Rule 417, Rule 418, and Rule 427 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).
    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, 
Intergovernmental relations, Ozone, Reporting and recordkeeping 
requirements.

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

    Dated: October 11, 1994.
John Wise,
Acting Regional Administrator.
[FR Doc. 94-26198 Filed 10-20-94; 8:45 am]
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