[Federal Register Volume 61, Number 195 (Monday, October 7, 1996)]
[Rules and Regulations]
[Pages 52297-52299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25467]


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


ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 043-0017a; FRL-5617-4]


Approval and Promulgation of State Implementation Plans; 
California State Implementation Plan Revision; Kern County Air 
Pollution Control District; Santa Barbara County Air Pollution Control 
District; South Coast Air Quality Management 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 (SIP). The revisions concern rules 
from the Kern County Air Pollution Control District (KCAPCD), the Santa 
Barbara County Air Pollution Control District (SBCAPCD), and the South 
Coast Air Quality Management District (SCAQMD). 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 organic solvent degreasing operations, 
petroleum storage tank degassing, and gasoline transfer and dispensing 
operations. 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 action is effective on December 6, 1996 unless adverse or 
critical comments are received by November 6, 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 also 
available for inspection at the following locations:

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 95812.
Kern County Air Pollution Control District, 2700 ``M'' Street, Suite 
290, Bakersfield, CA 93301.
Santa Barbara County Air Pollution Control District, 26 Castilian 
Drive, B-23, Goleta, CA 93117.
South Coast Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182.

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:

Applicability

    The rules being approved into the California SIP include: KCAPCD 
Rule 412.1, Transfer of Gasoline into Vehicle Fuel Tanks; KCAPCD Rule 
410.3, Organic Solvent Degreasing Operations; KCAPCD Rule 102, 
Definitions; SBCAPCD Rule 343, Petroleum Storage Tank Degassing; and 
SCAQMD Rule 461, Gasoline Transfer and Dispensing.

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 San Joaquin Valley Air 
Basin,1 the South Central Coast Air Basin and the Los Angeles-
South Coast Air Basin Area. 43 FR 8964, 40 CFR 81.305. These areas did 
not attain the ozone standard by their approved attainment dates.2 
On May 26, 1988, EPA notified the Governor of California, pursuant to 
section 110(a)(2) of the 1977 Act, that the KCAPCD, SBCAPCD and SCAQMD 
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. Pub. L. 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\  At the time, Kern County was included in the San Joaquin 
Valley Air Basin and the Southeast Desert Air Basin. The San Joaquin 
Valley Air Basin was designated as nonattainment and the Southeast 
Desert Air Basin was designated as unclassified.
    \2\  The South Central Coast Air Basin and the Los Angeles- 
South Coast Air Basin Area received extensions of their attainment 
dates to December 31, 1987. Kern County's attainment date remained 
December 31, 1982.
---------------------------------------------------------------------------

    On May 20, 1991, the San Joaquin Valley Unified Air Pollution 
Control District was formed. This district has authority over the San 
Joaquin Valley Air Basin Portion of Kern County. Thus, as of March 20, 
1991, the KCAPCD has authority over only the Southeast Desert Air Basin 
portion of Kern County.
    Section 182(a)(2)(A) applies to areas designated as nonattainment 
prior to enactment of the CAA 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 EPA's pre-amendment guidance.3 EPA's SIP-Call used 
that guidance to indicate the necessary corrections for specific 
nonattainment areas. The South Central Coast Air Basin is classified as 
moderate and the Los Angeles-South Coast Air Basin Area is classified 
as extreme; therefore, these areas were subject to the RACT fix-up 
requirement and the May 15, 1991 deadline. All of Kern County is 
classified as serious. However, the Southeast Desert Air Basin portion 
of Kern County was not a pre-amendment nonattainment area and, 
therefore, was not designated and classified upon enactment of the 
amended Act.4 For this reason, KCAPCD is not subject to the 
section 182(a)(2)(A) RACT fix-up requirement. The KCAPCD is, however, 
still subject to the requirements of EPA's SIP-Call because the SIP-
Call included all of Kern County. The substantive requirements of the 
SIP-Call are the same as those of the statutory RACT fix-up 
requirement.
---------------------------------------------------------------------------

    \3\  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).
    \4\  The South Central Coast Air Basin, the Los Angeles-South 
Coast Air Basin Area, and the San Joaquin Valley Air Basin portion 
of KCAPCD retained their nonattainment designations and were 
classified by operation of law pursuant to section 107(d) and 181(a) 
upon the date of enactment of the CAA. The Southeast Desert Air 
Basin portion of the KCAPCD was designated nonattainment on November 
6, 1991. See 56 FR 56694 (November 6, 1991).
---------------------------------------------------------------------------

    This document addresses EPA's direct final action for KCAPCD Rule 
412.1, Transfer of Gasoline into Vehicle Fuel Tanks; KCAPCD Rule 410.3, 
Organic Solvent Degreasing Operations; KCAPCD Rule 102, Definitions; 
SBCAPCD Rule 343, Petroleum Storage

[[Page 52298]]

Tank Degassing; and SCAQMD Rule 461, Gasoline Transfer and Dispensing. 
The State of California submitted these rules for inclusion into its 
SIP, and EPA found them to be complete pursuant to EPA's completeness 
criteria that are set forth in 40 CFR part 51 Appendix V.5 The 
following table contains the dates of adoption, submittal, and 
completeness for each rule.
---------------------------------------------------------------------------

    \5\  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).

------------------------------------------------------------------------
                 Rule No.                   Adopted  Submitted  Complete
------------------------------------------------------------------------
KCAPCD 412.1.............................   11/9/92    1/11/93   3/26/93
KCAPCD 410.3.............................    3/7/96    5/10/96   7/19/96
KCAPCD 102...............................    3/7/96    5/10/96   7/19/96
SBCAPCD 343..............................  12/14/93    3/29/94    6/3/94
SCAQMD 461...............................    9/8/95    1/31/96    4/2/96
------------------------------------------------------------------------

    KCAPCD Rule 412.1 and SCAQMD Rule 461 control VOC emissions during 
gasoline transfer and dispensing operations. KCAPCD Rule 410.3 
regulates organic solvent degreasing operations, and KCAPCD Rule 102 
contains general definitions used in other district rules. SBCAPCD Rule 
343 controls VOC emissions from the degassing of petroleum storage 
tanks. VOCs contribute to the production of ground level ozone and 
smog. These rules were originally adopted as part of district efforts 
to achieve the National Ambient Air Quality Standard for ozone and in 
response to EPA's SIP-Call. The following is EPA's evaluation and 
direct final action for these rules.

EPA Evaluation

    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 3. 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 
applicable to KCAPCD Rule 410.3 is ``Control of Volatile Organic 
Emissions from Solvent Metal Cleaning,'' EPA-450/2-77-022, and the CTG 
applicable to SCAQMD Rule 461 is ``Control of Volatile Organic Compound 
Leaks from Gasoline Tank Trucks and Vapor Collection Systems,'' EPA 
450/2-78-051. For some source categories, such as storage tank 
degassing and phase II vapor recovery, EPA did not publish a CTG. 
Therefore, there is no CTG applicable to KCAPCD Rule 412.1 or SBCAPCD 
Rule 343. 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 or 
model rules, to ensure that the adopted VOC rules are fully enforceable 
and strengthen or maintain the SIP. KCAPCD Rule 412.1 was evaluated 
against EPA's draft model stage II rule, dated August 17, 1992. KCAPCD 
Rule 102 contains only definitions and is not considered a prohibitory 
rule, and therefore it was not evaluated for RACT requirements.
    KCAPCD Rule 412.1 is an amended rule which regulates the dispensing 
of gasoline into motor vehicle fuel tanks.
    This rule contains the following significant changes from the 
current SIP:
     Adds definitions, recordkeeping and testing requirements.
     Adds requirements related to equipment operation and 
maintenance.
    KCAPCD Rule 410.3 is an amended rule controlling solvent degreasing 
operations. The only change to this rule involved revising the 
``volatile organic compound'' definition to reference KCAPCD Rule 102.
    KCAPCD Rule 102 contains definitions for terms used and referenced 
in other district rules. The definitions for ``exempt compounds'' and 
``loading rack'' were added, and the definition for ``valley basin and 
desert basin'' was deleted.
    SBCAPCD Rule 344 is a new rule which controls VOC emissions from 
the degassing of petroleum storage tanks, reservoirs, or other 
containers. Above-ground containers and underground tanks are subject 
to this rule depending upon their capacity and the vapor pressure of 
the stored organic liquid. The rule requires degassing emissions to be 
controlled by at least 90%, using one of several methods, including 
liquid balancing, liquid displacement, or refrigeration. Monitoring of 
refrigeration and carbon adsorption is required, along with records of 
monitoring results, vapor pressures, and degassing events.
    SCAQMD Rule 461 is an amended rule that includes the following 
significant changes from the current SIP:
     Adds definitions, recordkeeping requirements, and test 
methods.
     Adds requirements for phase I and phase II equipment, 
initial and reverification testing, self-compliance inspection and 
maintenance, and completion of a training program.
     Deletes outdated compliance schedules.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, KCAPCD Rule 412.1, KCAPCD Rule 410.3, KCAPCD Rule 102, 
SBCAPCD Rule 343, and SCAQMD Rule 461 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 action and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. This action will be 
effective December 6, 1996, unless, by November 6, 1996, adverse or 
critical comments are received.
    If 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. EPA will not institute a second comment period on this 
action.

[[Page 52299]]

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 December 6, 1996.

Regulatory Process

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 direct 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.
    Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives and the Comptroller General of the 
General Accounting Office prior to publication of the rule in today's 
Federal Register. This rule is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

Small Businesses

    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).
    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under 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 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: September 17, 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)(191)(i)(D), 
(c)(196)(i)(C)(3), (c)(229)(i)(A), and (c)(231)(i)(B) to read as 
follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (191) * * *
    (i) * * *
    (D) Kern County Air Pollution Control District.
    (1) Rule 412.1, adopted on November 9, 1992.
* * * * *
    (196) * * *
    (i) * * *
    (C) * * *
    (3) Rule 343, adopted on December 14, 1993.
* * * * *
    (229) New and amended regulations for the following APCDs were 
submitted on January 31, 1996, by the Governor's designee.
    (i) Incorporation by reference.
    (A) South Coast Air Quality Management District.
    (1) Rule 461, adopted on September 8, 1995.
* * * * *
    (231) * * *
    (i) * * *
    (B) Kern County Air Pollution Control District.
    (1) Rule 102 and Rule 410.3, adopted on March 7, 1996.
* * * * *
[FR Doc. 96-25467 Filed 10-4-96; 8:45 am]
BILLING CODE 6560-50-P