[Federal Register Volume 60, Number 215 (Tuesday, November 7, 1995)]
[Proposed Rules]
[Pages 56133-56136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27568]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 63
[FRL-5325-6]
RIN 2060-AD93
National Emission Standards for Hazardous Air Pollutants for
Source Categories: Gasoline Distribution (Stage 1)
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed amendments.
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SUMMARY: Today's action provided in this document proposes to amend the
rule, ``National Emission Standards for Hazardous Air Pollutants for
Source Categories: Gasoline Distribution (Stage I)'' (the ``Gasoline
Distribution NESHAP''), promulgated on December 14, 1994. The proposal
would amend the initial compliance date for the equipment leak
provisions applicable to existing sources from no later than December
14, 1995 to no later than December 15, 1997, and would amend the date
by which an existing facility must provide an initial notification to
December 16, 1996 or 1 year after a facility becomes subject to the
Gasoline Distribution NESHAP, whichever is later. These modifications
are being proposed because the compliance date for these provisions is
approaching and the EPA believes that, under current circumstances,
additional time will allow sources a better opportunity to establish
major or area source status without foregoing quantifiable emissions
reductions. The EPA is requesting comments for the next 30 days only on
the proposed changes discussed in this document.
DATES: Comments. Comments must be received on or before December 7,
1995 unless a hearing is requested by November 17, 1995. If a hearing
is requested, written comments must be received by December 22, 1995.
Public Hearing. Anyone requesting a public hearing must contact the
EPA no later than November 21, 1995. If a hearing is held, it will take
place on November 21, 1995, beginning at 9:00 a.m.
ADDRESSES: Comments. Comments should be submitted (in duplicate, if
possible) to: Air Docket (6102), Attention Docket Number A-92-38 (see
docket section below), room M1500, U.S. Environmental Protection
Agency, 401 M St., S.W., Washington, D.C. 20460. The EPA requests that
a separate copy also be sent to the contact person listed below.
Public Hearing. If a public hearing is held, it will be held at the
EPA's Office of Administration Auditorium, Research Triangle Park,
North Carolina. Persons interested in attending the hearing or wishing
to present oral testimony should notify Ms. JoLynn Collins, U.S.
Environmental Protection Agency, Research Triangle Park, N.C. 27711,
telephone (919) 541-5671.
Docket. Docket No. A-92-38, Categories VI Reconsideration and VII
Amendments, contains information considered by the EPA in developing
this proposal document and is available for public inspection and
copying between 8:00 a.m. and 4:00 p.m., Monday through Friday,
including all non-Government holidays, at the EPA's Air and Radiation
Docket and Information Center, room M1500, U.S. Environmental
Protection Agency, 401 M Street, SW., Washington, D.C. 20460; telephone
(202) 260-7548. A reasonable fee may be charged for copying. This
docket also contains information considered by the EPA in proposing and
promulgating the Gasoline Distribution NESHAP.
FOR FURTHER INFORMATION CONTACT: Mr. Stephen Shedd at telephone number
(919) 541-5397 or at facsimile number (919) 541-3470, Emission
Standards Division (MD-13), U.S. Environmental Protection Agency,
Research Triangle Park, North Carolina 27711.
SUPPLEMENTARY INFORMATION:
I. Background
On December 14, 1994 (59 FR 64303), the EPA promulgated the
``National Emission Standards for Hazardous Air Pollutants for Source
Categories: Gasoline Distribution (Stage I)'' (the ``Gasoline
Distribution NESHAP''). The Gasoline Distribution NESHAP regulates all
hazardous air pollutants (HAP) emitted from new and existing bulk
gasoline terminals and pipeline breakout stations that are major
sources of HAP emissions or are located at sites that are major sources
of HAP emissions. Among the promulgated requirements for existing
sources under this rule are the requirements that sources institute an
equipment leak prevention program and provide an initial notification
of regulatory status no later than December 14, 1995 (40 CFR
Secs. 63.424(e) and 63.428(a)).
Whether a bulk gasoline terminal or pipeline breakout station is a
major source or at a site that is a major source is determined by a
site's ``potential to emit considering controls'' (Act 112(a), 42
U.S.C. 7412(a)). In the Gasoline Distribution NESHAP, the EPA
promulgated two mechanisms for determining major source status that are
specific to this rule: first, the NESHAP included screening equations
for determining potential emissions from terminals and breakout
stations based on the HAP content of gasoline, gasoline throughput, and
emission rates from equipment used to handle gasoline; and second, the
NESHAP allowed for case-by-case review or ``emissions inventory'' of a
site's emissions (40 CFR Sec. 63.420). The equations could be used only
by bulk terminals and pipeline breakout stations that were at sites
that had no other sources of HAP. Other sources would be able to
establish potential to emit either by an emissions inventory or by
using other means (outside the rule) that are generally available to
sources under Subpart A of part 63, the General Provisions, and related
guidance.
When the EPA promulgated the Gasoline Distribution NESHAP, the EPA
anticipated that about 75 percent of all gasoline bulk terminals and
pipeline breakout stations would be able to establish area source
status. However, the EPA recognizes that several developments since
promulgation of the rule have affected the number of sources that will
establish area source status.
First, through a petition for reconsideration filed by the American
Petroleum Institute (API), the EPA has learned that virtually all bulk
terminals and pipeline breakout stations have HAP containing fluids
such as distillates (e.g., diesel fuel and heating fuel oil) that are
handled in equipment outside of the source category. According to API,
this limits the utility of the emissions screening equation as a method
for establishing potential to emit.
Second, the EPA has issued two guidance memoranda on options for
and timing of establishing potential to emit limits. See memorandum
from John S. Seitz, Director, Office of Air Quality Planning and
Standards, and Robert I. Van Heuvelen, Director, Office of Regulatory
Enforcement, ``Options for Limiting the Potential to Emit (PTE) of
[[Page 56134]]
a Stationary Source under Section 112 and Title V of the Clean Air Act
(Act)'' (January 25, 1995); and memorandum from John S. Seitz,
``Potential to Emit for MACT Standards--Guidance on Timing Issues''
(May 16, 1995). These memoranda are available in the docket (see
ADDRESSES section). The first memorandum identified a number of ways
States and sources could establish federally enforceable limits for
potential to emit. In addition, the memorandum created a 2-year
transition period (until January 1997) under which sources could be
treated as area sources if (1) the source actually emits less than 50
percent of the major source threshold and keeps adequate records, or
(2) the source emits between 50 and 100 percent of the major source
threshold, and is limited to this level by State limitations that are
enforceable as a practical matter.
The second memorandum addressed timing issues related to the
applicability of NESHAP that affect only major sources. Major sources
can reduce their potential emissions by obtaining federally enforceable
limitations on their potential to emit, and as a result can achieve
area source status. Before the memorandum was released, it was not
clear whether there was a deadline for achieving area source status,
and whether a source that reduced its potential emissions after the
deadline could avoid being subject to the standard. The memorandum
explained that, in the absence of rulemaking, the best reading of
section 112 would require area source status to be achieved by the
first substantive compliance date of a NESHAP. Additionally, the
memorandum explained that unless area source status is achieved by this
deadline, it will be permanently treated as a major source for purposes
of that NESHAP.
Applying these two guidances to the Gasoline Distribution NESHAP
would mean that, in order to avoid being permanently treated as a major
source subject to the NESHAP, gasoline distribution facilities would
need to achieve area source status before December 15, 1995, the
compliance date for the equipment leaks provision. Industry reports
there are a number of sources emitting less than the major source
threshold that do not have what the EPA believes are practicably
enforceable limitations on their potential to emit. Under the
transition policy discussed above, sources emitting more than 50
percent of major source threshold and lacking practicably enforceable
limits, are currently treated as major sources. The mechanisms for
establishing practicably enforceable limitations on ``throughput'' (the
amount of gasoline, distillate, and other HAP emitting liquids handled
at the terminal or breakout station) generally exist. Those mechanisms,
however, require time to process to put into place for sources. Given
the proximity of the date of the May 16 policy guidance to the December
15, 1995 deadline, the EPA believes that some sources emitting more
than 50 percent of the major source threshold may not have a reasonable
time period to establish practical limitations on their potential to
emit.
II. Summary of and Rationale for the Amendments
Because the developments since promulgation of the Gasoline
Distribution NESHAP have led the EPA to believe that fewer sources will
be able to achieve area source status than had been anticipated, the
EPA has considered ways to modify policy or rule provisions so that the
applicability of the NESHAP will reflect the EPA's intent at the time
of promulgation. After considering revising one or both of the
guidances as they would apply to this source category, and after
considering the amendment of the emissions screening equation, the EPA
believes the most appropriate way to allow sources a better opportunity
to establish major or area source status without foregoing quantifiable
emission reductions would be to defer the compliance date for the
equipment leak provisions for existing sources until December 15, 1997.
Furthermore, for the reasons discussed below, the EPA proposes amending
the initial notification provisions so that notice is not required
until December 16, 1996.
Deferral of the existing source compliance dates for equipment leak
programs and initial notifications is consistent with the deadlines for
compliance under the Act section 112(i), which requires existing major
sources to be in compliance with a rule within 3 years of promulgation.
The deferral of the equipment leak provisions will give facilities
significant additional time to obtain appropriate limits on potential
to emit hazardous air pollutants. The deferral of the initial
notification for existing sources will give cargo truck operators more
accurate notice of the regulatory status of the terminals that they use
and provide adequate lead time for any necessary truck vapor tightness
testing to be performed during normal testing schedules. Additionally,
the notices will provide Federal, State, and local air pollution
control agencies an opportunity to plan for the implementation of this
rule prior to the first compliance date for existing sources. The
initial notifications will be considered non-binding in the case of
sources that are major sources on December 16, 1996, but become area
sources prior to December 15, 1997. Sources that cannot limit their
potential to emit before December 15, 1997, must comply with the
requirements for major sources under the Gasoline Distribution NESHAP
by that date.
Emissions of HAP associated with equipment leaks at bulk terminals
and pipeline breakout stations were estimated to be less than 2 percent
of baseline HAP emissions for the source category. An industry survey
indicated that 80 percent of bulk terminals were already performing
some type of periodic visual leak detection program; therefore,
deferring the compliance date of the Gasoline Distribution NESHAP
provisions on leak detection would not forego significant emission
reductions.
Deferring the compliance date for the equipment leak provisions for
existing sources is preferable to the other available options. The
other options are: (1) to deem the January 25 or May 16 guidance
memoranda inapplicable to the Gasoline Distribution NESHAP; (2) to
adopt a temporary certification scheme similar to that adopted for the
Hazardous Organic NESHAP (HON); and (3) to modify the emission
screening equations based on data currently before the EPA. While the
guidances do not have the legal status of a rule, the EPA continues to
believe that the analysis expressed in the timing guidance is the best
reading of the Act section 112. Addressing the timing issues by
allowing a site to temporarily be a major source and then subsequently
an area source would mean that many sources would be temporarily
subject to the equipment leak provisions. Not only would this pose
difficulties in assuring compliance but it would also produce little,
if any, emission reduction benefits.
If the EPA were to allow an owner or operator of a source to make a
temporary certification that the source is not at a major source, in a
manner similar to the HON amendments promulgated on April 10, 1995 (60
FR 18020), then potentially hundreds of temporary certifications would
be required. Unlike the source category subject to the HON, which is
estimated to have 20 to 40 eligible plant sites, air pollution control
agencies would have little practical opportunity for oversight of these
numerous temporary certifications. Therefore, because of the temporary
nature of the HON certifications and the vast difference in
[[Page 56135]]
the numbers of potential certifications, the EPA is not proposing to
condition an extension of the compliance date on the filing of a
certification that actual emissions are below major source levels.
At this time, the EPA does not have sufficient analyzed data and
information to propose modification to the emission screening equation
in the rule. The EPA is considering data submitted by the API as part
of its petition for reconsideration (available in the docket) and may
propose modification of the equation and request comment at a later
date. The EPA is not requesting comments at this time on the petition
for reconsideration or potential changes to the emission screening
equation.
III. Administrative Requirements
A. Paperwork Reduction Act
The information collection requirements of the previously
promulgated NESHAP were submitted to and approved by the Office of
Management and Budget (OMB). A copy of this Information Collection
Request (ICR) document (OMB control number 2060-0325) may be obtained
from Ms. Sandy Farmer, Information Policy Branch, Environmental
Protection Agency, 401 M St., S.W. (mail code 2136), Washington, D.C.
20460, or by calling (202) 260-2740.
Today's proposed changes to the Gasoline Distribution NESHAP have
no impact on the information collection burden estimates made
previously. No additional certifications or filings are proposed.
Therefore, the ICR has not been revised.
B. Executive Order 12866
Under Executive Order 12866 (58 FR 51735, October 4, 1993), the EPA
must determine whether a regulation is ``significant'' and therefore
subject to OMB review and the requirements of the Executive Order. The
criteria set forth in section 1 of the Order for determining whether a
regulation is a significant rule are as follows:
(1) Is likely to have an annual effect on the economy of $100
million or more, or adversely and materially affect a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal government communities;
(2) Is likely to create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency;
(3) Is likely to materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs or the rights and
obligations of recipients thereof; or
(4) Is likely to raise novel or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
The Gasoline Distribution NESHAP promulgated on December 14, 1994,
was treated as a ``significant regulatory action'' within the meaning
of the Executive Order. An estimate of the cost and benefits of the
NESHAP was prepared at proposal as part of the Background Information
Document (BID) and was updated in the BID for the final rule to reflect
comments and changes to the final rule. The amendments proposed today
would have no impact on the estimates in the BID. The EPA's earlier
estimates of costs and emission reductions were based on the Gasoline
Distribution NESHAP affecting only major sources and did not quantify
the emissions reductions associated with the visual equipment leak
detection program; in any event, these emission reductions are small
relative to the total reduction for the source category.
Pursuant to the terms of Executive Order 12866, it has been
determined that this action is a ``non-significant regulatory action''
within the meaning of the Executive Order. As such, this action was not
submitted to OMB for review.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires the
EPA to consider potential impacts of regulations on small business
entities. The Act specifically requires the preparation of a Regulatory
Flexibility Analysis in those instances where small business impacts
are possible. When the EPA promulgated the Gasoline Distribution
NESHAP, it analyzed the potential impacts on small businesses,
discussed the results of this analysis in the Federal Register, and
concluded that the promulgated regulation would not result in financial
impacts that significantly or differentially stress affected small
companies. Because today's proposal imposes no additional impacts, a
Regulatory Flexibility Analysis has not been prepared.
Pursuant to the provisions of 5 U.S.C. 605(b), I hereby certify
that this rule will not have a significant economic impact on a
substantial number of small business entities.
D. Unfunded Mandates
Under section 202 of the Unfunded Mandates Reform Act of 1995
(Unfunded Mandates Act), signed into law on March 22, 1995, the EPA
must prepare a budgetary impact statement to accompany any proposed or
final rule that includes a Federal mandate that may result in estimated
costs to State, local, or tribal governments in the aggregate, or to
the private sector, of $100 million or more. Under section 205, the EPA
must select the most cost effective and least burdensome alternative
that achieves the objectives of the rule and is consistent with
statutory requirements. Section 203 requires the EPA to establish a
plan for informing and advising any small governments that may be
significantly or uniquely impacted by the rule.
The EPA has determined that the action proposed today does not
include a Federal mandate that may result in estimated costs of $100
million or more to either State, local, or tribal governments in the
aggregate, or to the private sector. Therefore, the requirements of the
Unfunded Mandates Act do not apply to this action.
List of Subjects in 40 CFR Part 63
Environmental protection, Air pollution control, Hazardous
substances, Petroleum bulk stations and terminals, Reporting and
recordkeeping requirements.
Dated: November 1, 1995.
Carol M. Browner,
Administrator.
For the reasons set out in the preamble, part 63 of chapter I of
title 40 of the Code of Federal Regulations is proposed to be amended
as follows:
PART 63--NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS
FOR SOURCE CATEGORIES
1. The authority citation for part 63 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
2. Section 63.424 is amended by revising paragraph (e) to read as
follows:
Sec. 63.424 Standards: Equipment leaks.
* * * * *
(e) Initial compliance with the requirements in paragraphs (a)
through (d) of this section shall be achieved by existing sources as
expeditiously as practicable, but no later than December 15, 1997. For
new sources, initial compliance shall be achieved upon startup.
* * * * *
3. Section 63.428 is amended by revising paragraphs (a) and the
first sentence of paragraph (f)(1) to read as follows:
Sec. 63.428 Reporting and recordkeeping.
(a) The initial notifications required for existing affected
sources under
[[Page 56136]]
Sec. 63.9(b)(2) shall be submitted by 1 year after an affected source
becomes subject to the provisions of this subpart or by December 16,
1996, whichever is later. Affected sources that are major sources on
December 16, 1996 and plan to be area sources by December 15, 1997
shall include in this notification a brief, non-binding description of
and schedule for the action(s) that are planned to achieve area source
status.
* * * * *
(f) * * *
(1) In the case of an existing source or a new source that has an
initial startup date before the effective date, the report shall be
submitted with the notification of compliance status required under
Sec. 63.9(h), unless an extension of compliance is granted under
Sec. 63.6(i). * * *
* * * * *
4. Table 1 to subpart R is amended by revising the entry
``63.9(b)(2)'' to read as follows:
* * * * *
Table 1 to Subpart R.--General Provisions Applicability to Subpart R
------------------------------------------------------------------------
Applies to subpart
Reference R Comment
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* * * *
* * *
63.9(b)(2)............. Yes................ Subpart R allows addition
time for existing sources
to submit initial
notification. Sec.
63.428(a) specifies
submittal by 1-year after
being subject to rule or
December 16, 1997,
whichever is later.
* * * *
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[FR Doc. 95-27568 Filed 11-6-95; 8:45 am]
BILLING CODE 6560-50-P