[Federal Register Volume 60, Number 187 (Wednesday, September 27, 1995)]
[Rules and Regulations]
[Pages 49772-49775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23960]



-----------------------------------------------------------------------


ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 57-14-7108a; FRL-5280-3]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, Mojave Desert Air Quality 
Management District, San Luis Obispo County Air Pollution Control 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: EPA is taking direct final action on revisions to the 
California State Implementation Plan. The revisions concern rules from 
the following districts: Mojave Desert Air Quality Management District 
(MDAQMD) and San Luis Obispo County Air Pollution Control District 
(SLOCAPCD). The rules control volatile organic compounds (VOC) 
emissions from components at pipeline transfer stations and petroleum-
related industrial sources; oil-water separators; and petroleum pits, 
ponds, sumps, and well cellars. This approval action will incorporate 
these rules into the federally approved SIP. The intended effect of 
approving 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). In addition, the final action on MDAQMD Rules 464 and 1102 
serves as a final determination that the findings of nonsubmittal for 
these rules have been corrected and that on the effective date of this 
action, any Federal Implementation Plan (FIP) clocks associated with 
such submittals are stopped. Thus, EPA is finalizing the approval of 
these rules 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 final rule is effective on November 27, 1995 unless adverse 
or critical comments are received by October 27, 1995. 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, 
SW, Washington, DC 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814.
Mojave Desert Air Quality Management District, 15428 Civic Drive, 
Victorville, California 92392.
San Luis Obispo County Air Pollution Control District, 2156 Sierra Way, 
Suite ``B'', San Luis Obispo, CA 93401.

FOR FURTHER INFORMATION CONTACT: Christine Vineyard, 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) 744-1197.

SUPPLEMENTARY INFORMATION:

Applicability

    The rules being approved into the California SIP include: MDAQMD 
Rule 464, Oil-Water Separators; MDAQMD Rule 1102, Fugitive Emissions of 
VOCs from Components at Pipeline Transfer Stations; SLOCAPCD Rule 417, 
Control of Fugitive Emissions of Reactive Organic Compounds; and 
SLOCAPCD Rule 419, Petroleum Pits, Ponds, Sumps, Well Cellars, and 
Wastewater Separators. These rules were submitted by the California Air 
Resources Board to EPA on October 19, 1994, May 13, 1993, November 30, 
1994, and September 28, 1994, 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 Act or pre-amended Act), that included the Southeast Desert 
1 and San Luis Obispo County areas. 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 52.222). On May 26, 1988, EPA 

[[Page 49773]]
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. 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.

    \1\ The MDAQMD was created by Assembly Bill AB 2522 signed into 
law by the Governor of California on September 12, 1992. It includes 
all of the County of San Bernardino which is not included within the 
boundaries of the South Coast Air Quality Management District, and 
may include contiguous areas situated in the Southeast Desert Air 
Basin upon request for inclusion. The Mojave Desert District 
commenced operations on July 1, 1993, and on that date assumed the 
authority, duties and employees of the San Bernardino County Air 
Pollution Control District, which ceased to exist as of that date.
---------------------------------------------------------------------------

    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.2 EPA's SIP-Call used that 
guidance to indicate the necessary corrections for specific 
nonattainment areas. The Southeast Desert area is classified as severe 
and the San Luis Obispo County area is classified as moderate 3; 
therefore, these areas were subject to the RACT fix-up requirement and 
the May 15, 1991 deadline.

    \2\ 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).
    \3\ The Southeast Desert and San Luis Obispo County areas have 
retained their designation 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 55 FR 56694 (November 6, 1991).
---------------------------------------------------------------------------

    The State of California submitted many revised RACT rules for 
incorporation into its SIP on May 13, 1993, October 19, 1994, September 
28, 1994, and November 30, 1994, including the rules being acted on in 
this notice. This notice addresses EPA's direct-final action for 
MDAQMD's Rule 464, Oil-Water Separators; MDAQMD's Rule 1102, Fugitive 
Emissions of VOCs from Components at Pipeline Transfer Stations; 
SLOCAPCD's Rule 419, Petroleum Pits, Ponds, Sumps, Well Cellars, and 
Wastewater Separators; and SLOCAPCD's Rule 417, Control of Fugitive 
Emissions of Reactive Organic Compounds. The MDAQMD adopted Rules 464 
and 1102 on August 25, 1994 and October 26, 1994, respectively. The 
SLOCAPCD adopted Rules 417 and 419 on February 9, 1993 and July 12, 
1994, respectively. These submitted rules were found to be complete on 
December 1, 1994, January 3, 1995, July 19, 1993, and November 22, 1994 
pursuant to EPA's completeness criteria which are set forth in 40 CFR 
part 51 Appendix V,4 and are being finalized for approval into the 
SIP.

    \4\ 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).
---------------------------------------------------------------------------

    MDAQMD Rule 464 controls VOC emissions from oil-water separators. 
MDAQMD Rule 1102 controls fugitive emissions of VOC due to component 
leaks of facilities involved in the transfer and/or storage of 
petroleum products, crude oil or natural gas in pipelines. SLOCAPCD 
Rule 417 controls fugitive emissions of VOC from components at 
petroleum-related industrial sources. SLOCAPCD Rule 419 controls VOC 
emissions from oil-water separators and oil production sumps. VOCs 
contribute to the production of ground level ozone and smog. These 
rules were originally adopted as part of MDAQMD's and SLOCAPCD'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 
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 2. 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 CTGs 
applicable to these rules are entitled, ``Petroleum Refineries--Control 
of Refinery Vacuum Producing Systems, Wastewater Separators, Process 
Turnarounds'' EPA-450/2-77-022 and ``Control of Volatile Organic 
Compound Leaks from Synthetic Organic Chemical and Polymer 
Manufacturing Equipment'' EPA-450/3-83-006. This document updates the 
RACT criteria from the CTG for petroleum refinery equipment. Further 
interpretations of EPA policy are found in the Blue Book, referred to 
in footnote 2. In general, these guidance documents have been set forth 
to ensure that VOC rules are fully enforceable and strengthen or 
maintain the SIP.
    MDAQMD's submitted Rule 464, Oil-Water Separators includes the 
following significant changes from the current SIP:
     A definition section was added for rule clarification.
     A provision was added stating that the cover material 
shall be impermeable to VOCs, and free from holes or openings.
     A fugitive vapor leak monitoring provision was added.
     The rule exempts segregated storm water runoff drain 
systems and non-contact cooling water systems.
     A recordkeeping section was added.
     A test method section was added for compliance 
verification.
    MDAQMD's submitted rule 1102, Fugitive Emissions of VOCs from 
Components at Pipeline Transfer Stations was developed to correct 
deficiencies identified in District Rule 466 (Pumps and Compressors) 
and Rule 467 (Safety Pressure Relief Valves). For a detailed review of 
the existing rules and new Rule 1102, please refer to the Technical 
Support Document for Rule 1102 dated July 10, 1995. Rule 1102 includes 
the following significant changes from the current SIP rules:
     A definition section was added for rule clarification.
     A basic operating standards section was added.
     Inspection schedules and requirements were added.
     Exempt components were identified.
     Inspection and identification log requirements were added.
     A test method section was added for compliance 
verification.
     A compliance schedule was provided.
    SLOCAPCD's submitted rule 417, Control of Fugitive Emissions of 

[[Page 49774]]
    Reactive Organic Compounds, is a new rule which establishes standards 
for petroleum-related industrial sources and contains the following 
provisions:
     The implementation of an inspection and repair program.
     A requirement that major and critical components are to be 
physically identified for inspection, repair, replacement, and 
recordkeeping purposes.
     A requirement to maintain up-to-date inspection and 
maintenance activity records.
     Addition of test methods to determine compliance.
     A requirement for all sources to have inspection and 
maintenance plans no later than 12-months from the date of rule 
adoption.
    SLOCAPCD's submitted new rule 419, Petroleum Pits, Ponds, Sumps, 
Well Cellars, and Wastewater Separators contains the following 
provisions:
     Prohibits primary or first stage production sumps.
     Requires that affected second or third stage sumps, pits 
or ponds have covers that are impermeable to VOC vapors and have no 
holes, tears or openings which allow the emission of organic compounds 
into the atmosphere.
     Requires that well cellars be used only during periods of 
equipment maintenance or well workover and prohibits holding crude oil 
or petroleum materials in a well cellar for more than five consecutive 
calendar days.
     Requires that affected wastewater separators have a solid 
cover, a floating pontoon or double-deck type cover, a vapor recovery 
system, or other equipment with a vapor loss control efficiency of at 
least 90% by weight.
     Provides requirements for records to be maintained.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, MDAQMD Rule 464, Oil-Water Separators; MDAQMD Rule 1102, 
Fugitive Emissions of VOCs from Components at Pipeline Transfer 
Stations; SLOCAPCD Rule 417, Control of Fugitive Emissions of Reactive 
Organic Compounds; and SLOCAPCD Rule 419, Petroleum Pits, Ponds, Sumps, 
Well Cellars, and Wastewater Separators are being approved under 
section 110(k)(3) of the CAA as meeting the requirements of section 
110(a) and Part D. Therefore, if this direct final action is not 
withdrawn, on November 27, 1995, any FIP clocks associated with the 
nonsubmittal of these rules are stopped.
    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 publication, the EPA is proposing to approve the SIP revisions 
should adverse or critical comments be filed. This action will be 
effective November 27, 1995, unless by October 27, 1995, 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 November 27, 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. 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(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.

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 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.

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: August 8, 1995.
Felicia Marcus,
Regional Administrator.

    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. 

[[Page 49775]]


Subpart F--California

    2. Section 52.220 is amended by adding paragraphs (c)(193)(i)(B), 
(c)(199)(i)(B), (202)(i)(D) and (207)(i)(D) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (193) * * *
    (i) * * *
    (B) San Luis Obispo County Air Pollution Control District.
    (1) Rule 417, adopted February 9, 1993.
* * * * *
    (199) * * *
    (i) * * *
    (B) San Luis Obispo County Air Pollution Control District.
    (1) Rule 419, adopted July 12, 1994.
* * * * *
    (202) * * *
    (i) * * *
    (D) Mojave Desert Air Quality Management District.
    (1) Rule 464, adopted August 24, 1994.
* * * * *
    (207) * * *
    (i) * * *
    (D) Mojave Desert Air Quality Management District.
    (1) Rule 1102, adopted October 26, 1994.
* * * * *
[FR Doc. 95-23960 Filed 9-26-95; 8:45 am]
BILLING CODE 6560-50-P