[Federal Register Volume 61, Number 88 (Monday, May 6, 1996)]
[Rules and Regulations]
[Pages 20145-20147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11210]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 140-10-7261a; FRL-5456-9]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, Placer County Air Pollution Control 
District and Ventura County Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on revisions to the 
California State Implementation Plan (SIP). The revisions concern rules 
from the following districts: the Placer County Air Pollution Control 
District (PCAPCD) and the Ventura County Air Pollution Control District 
(VCAPCD). This approval action will incorporate these rules into the 
federally approved SIP. The intended effect of approving 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). The rules control VOC emissions from the storage 
and transfer of organic liquids and tank degassing operations. Thus, 
EPA is finalizing the approval of these revisions 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 action is effective on July 5, 1996 unless adverse or 
critical comments are received by June 5, 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.
Placer County Air Pollution Control District, 11464 B Avenue, 
Auburn, CA 95603.
Ventura County Air Pollution Control District, Rule Development 
Section, 669 County Square Drive, Ventura, CA 93003.

FOR FURTHER INFORMATION CONTACT: Duane F. James, 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) 744-1191, email: [email protected].

SUPPLEMENTARY INFORMATION:

Applicability

    The rules being approved into the California SIP include: the 
PCAPCD's Rule 212, ``Storage of Organic Liquids,'' and Rule 215, 
``Transfer of Gasoline into Tank Trucks, Trailers and Railroad Tank 
Cars at Loading Facilities,'' and the VCAPCD's Rule 74.26, ``Crude Oil 
Storage Tank Degassing Operations,'' and Rule 74.27, ``Gasoline and ROC 
Liquid Storage Tank Degassing Operations.'' These rules were submitted 
by the California Air Resources Board (ARB) to EPA on January 24, 1995 
(Rules 215, 74.26, and 74.27) and October 13, 1995 (Rule 212).

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 portions of Placer County 
in the Sacramento Metro Area and the Ventura County Area. 43 FR 8964, 
40 CFR 81.305. On May 26, 1988, EPA notified the Governor of 
California, pursuant to section 110(a)(2)(H) of the 1977 Act, that

[[Page 20146]]

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 Sacramento Metro Area and the Ventura County 
Area are 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 Sacramento Metro Area was reclassified from serious to 
severe on June 1, 1995. See 60 FR 20237 (April 25, 1995). The 
Ventura County 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 55 FR 56694 
(November 6, 1991).
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    The State of California submitted many revised RACT rules for 
incorporation into its SIP on January 24, 1995, and October 13, 1995, 
including the rules being acted on in this document. The PCAPCD adopted 
Rule 212 on June 8, 1995, and Rule 215 on November 3, 1994, and the 
VCAPCD adopted Rules 74.26 and 74.27 on November 8, 1994. These 
submitted rules were found to be complete on February 24, 1995 (Rules 
215, 74.26, and 74.27) and November 28, 1995 (Rule 212), pursuant to 
EPA's completeness criteria that are set forth in 40 CFR part 51, 
appendix V 3 and are being finalized for approval into the SP.
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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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    The PCAPCD's Rule 212 requires facilities to install and operate 
vapor loss control devices for the storage of organic liquids with 
vapor pressures of 0.5 psia or higher, and Rule 215 requires vapor 
collection and disposal systems for loading gasoline into tank trucks, 
trailers, or railroad tank cars. The VCAPCD's Rules 74.26 and 74.27 
reduce emissions of VOCs from the degassing of crude oil, produced 
water, gasoline, and VOC liquid storage tanks. VOCs contribute to the 
production of ground level ozone and smog. These rules were originally 
adopted as part of the PCAPCD's and the VCAPCD'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 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 CTGs 
applicable to PCAPCD's Rule 212 are entitled ``Control of Volatile 
Organic Emissions from Storage of Petroleum Liquids in Fixed-Roof Tanks 
(EPA-450/2-77-036)'' and ``Control of Volatile Organic Emissions from 
Petroleum Liquid Storage in External Floating Roof Tanks (EPA-450/2-78-
047).'' The CTGs applicable to PCAPCD's Rule 215 are entitled, 
``Control of Hydrocarbons from Tank Truck Gasoline Loading Terminals 
(EPA-450/2-77-026),'' ``Control of Volatile Organic Emissions from Bulk 
Gasoline Plants (EPA-450/2-77-035),'' and ``Control of Volatile Organic 
Compound Leaks from Gasoline Tank Trucks and Vapor Collection Systems 
(EPA-450/2-78-051).'' There are no CTGs applicable to VCAPCD's Rules 
74.26 and 74.27. 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.
    The PCAPCD's submitted Rule 212, ``Storage of Organic Liquids,'' 
includes the following significant changes from the current SIP:
     The Table of Content's reference to section 110 has been 
deleted because that section was deleted in the previous version of the 
rule.
     There were two sections 503.1. The second was renumbered 
to 503.2.
    The PCAPCD's submitted Rule 215, ``Transfer of Gasoline into Tank 
Trucks, Trailers and Railroad Tank Cars at Loading Facilities,'' 
includes the following significant changes from the current SIP:
     The rule's applicability was broadened.
     The definitions of bulk plant and bulk terminal were added 
to the rule. The definition of volatile organic compound (VOC) was 
updated for consistency with 40 CFR 51.100(s).
     An emission standard of 0.6 pounds of VOC per 1000 gallons 
of gasoline transferred was added for bulk plants.
     The ARB's Methods 202 and 203 were added to the rule for 
equipment certifications.
    The VCAPCD's Rule 74.26, ``Crude Oil Storage Tank Degassing 
Operations,'' and Rule 74.27, ``Gasoline and ROC Liquid Storage Tank 
Degassing Operations,'' are new rules that reduce the emissions of VOCs 
from the degassing of crude oil, produced water, gasoline, and VOC 
liquid storage tanks. The rules require a vapor destruction and removal 
efficiency of at least 95% until the vapor concentration in the tank is 
10% of its initial concentration or less than 10,000 parts per million 
volume (ppmv). Records of the inlet and outlet concentration are to be 
made at the beginning of and throughout the test. Records of 
temperature are required when refrigerated condensers are used. All 
records must be maintained for two years from the date of entry. ASTM 
Methods D 323-82, D 2879-86 and E 260-91 and EPA Methods 2A, 21, and 
25A are the test methods used for compliance determinations. A more 
detailed discussion of the controls required and the justification for 
why

[[Page 20147]]

these controls represent RACT can be found in the Technical Support 
Documents (TSDs) for Rules 74.26 and 74.27, dated November 7, 1995.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, the PCAPCD's Rule 212, ``Storage of Organic Liquids,'' and 
Rule 215, ``Transfer of Gasoline into Tank Trucks, Trailers and 
Railroad Tank Cars at Loading Facilities,'' and the VCAPCD's Rule 
74.26, ``Crude Oil Storage Tank Degassing Operations,'' and Rule 74.27, 
``Gasoline and ROC Liquid Storage Tank Degassing Operations,'' 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 5, 1996, unless, by June 5, 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 received, the public is 
advised that this action will be effective July 5, 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, 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: March 11, 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)(214)(i)(D)(2) 
and (E) and (c)(225)(i)(B)(2) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (214) * * *
    (i) * * *
    (D) * * *
    (2) Rule 74.26 and Rule 74.27, adopted on November 8, 1994.
    (E) Placer County Air Pollution Control District.
    (1) Rule 215, adopted on November 3, 1994.
* * * * *
    (225) * * *
    (i) * * *
    (B) * * *
    (2) Rule 212, adopted on June 8, 1995.
* * * * *
[FR Doc. 96-11210 Filed 5-03-96; 8:45 am]
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