[Federal Register Volume 61, Number 134 (Thursday, July 11, 1996)]
[Rules and Regulations]
[Pages 36501-36502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17643]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 157-0010; AD-FRL-5524-2]


Approval and Promulgation of Implementation Plan for Monterey Bay 
Unified Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The EPA is promulgating approval of the new source review 
(NSR) program submitted by the Monterey Bay Unified Air Pollution 
Control District (MBUAPCD) for the purpose of meeting the nonattainment 
and prevention of significant deterioration (PSD) NSR requirements of 
the Clean Air Act, as amended in 1990 (CAA or the Act). The intended 
effect of this rulemaking is to regulate air pollution in accordance 
with the Act. Thus, EPA is finalizing the approval of these revisions 
into the California state implementation plan (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.

EFFECTIVE DATE: August 12, 1996.

ADDRESSES: Copies of MBUAPCD's submittals and other supporting 
information used in developing this final approval are available for 
inspection during normal business hours at the following location: U.S. 
EPA, Region IX, Air & Toxics Division (A-5-1), 75 Hawthorne Street, San 
Francisco, CA 94105.

FOR FURTHER INFORMATION CONTACT: Steve Ringer at (415) 744-1260.

SUPPLEMENTARY INFORMATION:

Background and Purpose

    The air quality planning requirements for nonattainment NSR are set 
out in Part D of Title I of the Act, with implementing regulations at 
40 CFR 51.160 through 51.165. The air quality planning requirements for 
PSD are set out in Part C of Title I of the Act, with implementing 
regulations at 40 CFR 51.166. On August 10, 1995, MBUAPCD submitted its 
NSR rules to EPA as a proposed revision to the SIP. On April 22, 1996, 
EPA proposed to approve with contingencies, and to disapprove in the 
alternative, the submitted SIP revisions. See 61 FR 17675. Full 
approval as a final action was contingent upon MBUAPCD making required 
changes to the submitted rules. EPA requested public comments on the 
proposed approval and received none. MBUAPCD has since submitted to 
EPA, revised NSR rules which contain the required changes. EPA is 
therefore promulgating final approval of the revised rules. The 
specific changes that MBUAPCD made to its rules are detailed below.
    The MBUAPCD Governing Board held a public hearing on March 20, 1996 
to entertain public comment on its revised NSR rules. The Board adopted 
the rules on the same date and the rules were submitted by the State to 
EPA on May 10, 1996 as a revision to the SIP. The SIP revision was 
reviewed by EPA and determined to be complete on May 22, 1996.
    In its April 22, 1996 proposed approval, EPA identified two 
deficiencies in MBUAPCD's August 10, 1995 submittal which had to be 
corrected as a condition of full approval. At that time, MBUAPCD had 
proposed draft rules which corrected the deficiencies. EPA's technical 
support document (TSD) for the April 22, 1996 proposed approval 
contains a discussion of how MBUAPCD's proposed draft rules would 
correct the deficiencies, as well as how they would meet the general 
NSR requirements of the Act. MBUAPCD's May 10, 1996 submittal is 
substantially similar to the draft rules upon which EPA based its 
proposed approval. Below is a discussion of the portions of MBUAPCD's 
May 10, 1996 submittal which correct the deficiencies identified by 
EPA.

Corrected Deficiencies

    Rule 207, Section 4.2.9: In its April 22, 1996 proposed approval, 
EPA specified that this section must be revised to require ``that any 
emission reduction required as a precondition of the issuance of a 
permit shall be made

[[Page 36502]]

federally enforceable prior to permit issuance''. Accordingly, MBUAPCD 
modified this section of its rules such that the May 10, 1996 submittal 
contains the following language: ``All emission reductions must be 
identified and enforceable prior to issuance of the Authority to 
Construct.'' This language satisfies EPA's requirement.
    Rule 207, Section 4.3.3.2: EPA specified that this section must be 
revised to require ``that emission reductions obtained from another 
nonattainment area may be used only if (A) the other area has an equal 
or higher nonattainment classification than the area in which the 
source is located, and (B) emissions from such other area contribute to 
a violation of the national ambient air quality standard in the 
nonattainment area in which the source is located.'' Accordingly, 
MBUAPCD's May 10, 1996 submittal contains a new section 4.3.3.2.2 with 
the following language: ``The offsets may only be obtained from an 
upwind area that has been designated by EPA to have a nonattainment 
status equal to or more serious than the North Central Coast air 
basin.'' and a new section 4.3.3.2.3 with the following language: ``The 
offsets may only be obtained from an upwind area that could contribute 
to violations of the national ambient air quality standards in the 
North Central air basin.'' This language satisfies EPA's requirement.

Final Action and Implications

    EPA is promulgating final approval of MBUAPCD's NSR program as 
submitted on May 10, 1996. This submittal consists of MBUAPCD's Rules 
207 (Review of New and Modified Sources) and 215 (Banking of Emission 
Reductions)
    EPA did not receive any comments on the changes detailed above that 
were necessary to make MBUAPCD's program fully approvable. The scope of 
this approval applies to all new or modified sources (as defined in the 
program) within the Monterey Bay Unified Air Pollution Control 
District.

Administrative Review

    Copies of MBUAPCD's submittal and other information relied upon for 
this final approval are contained in docket number NSRR 2-96 MBUAPCD, 
at the EPA Regional Office. The docket is an organized and complete 
file of all the information submitted to, or otherwise considered by, 
EPA in development of this final approval. The docket is available for 
public inspection at the location listed under the ADDRESSES section of 
this document.
    Nothing in this action should be construed as permitting, allowing, 
or establishing a precedent for any future request for a revision to 
any SIP. Each request for revision to a SIP shall be considered 
separately in light of specific technical, economic, and environmental 
factors and in relation to relevant statutory and regulatory 
requirements.
    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 section 110 and subchapter I, parts C and D of 
the Act 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 Act, preparation of a regulatory flexibility analysis would 
constitute Federal inquiry into the economic reasonableness of State 
action. The Act 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 has exempted this rule from the 
requirements of section 6 of Executive Order 12866.

Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995, 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. EPA has determined that 
the approval proposed in this notice does not include such a federal 
mandate, as this proposed federal action would approve pre-existing 
requirements under state or local law, and would impose no new federal 
requirements. Accordingly, no additional costs to state, local, or 
tribal governments, or to the private sector, will result from this 
action.

List of Subjects in 40 CFR Part 52

    Air pollution control, Hydrocarbons, Incorporation by reference, 
Intergovernmental relations, New source review, Nitrogen dioxide, 
Prevention of significant deterioration, Reporting and recordkeeping 
requirements, Volatile organic compounds.

    Dated: May 31, 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 paragraph (c)(231) to read 
as follows:


Sec. 52.220   Identification of plan.

* * * * *
    (c) * * *
    (231) New and amended regulations for the following APCDs were 
submitted on May 10, 1996, by the Governor's designee.
    (i) Incorporation by reference.
    (A) Monterey Bay Unified APCD.
    (1) Rules 207 and 215, adopted on March 20, 1996.
* * * * *
[FR Doc. 96-17643 Filed 7-10-96; 8:45 am]
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