[Federal Register Volume 61, Number 206 (Wednesday, October 23, 1996)]
[Rules and Regulations]
[Pages 54941-54943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26573]


=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 083-0015a; FRL-5633-8]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, Ventura County Air Pollution 
Control District and 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 following Districts: Ventura County Air Pollution Control 
District (VCAPCD) and 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 revised rules control VOC emissions from the 
storage and transfer of gasoline and organic liquid storage. 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 December 23, 1996 unless adverse or 
critical comments are received by November 22, 1996. If the effective 
date is delayed, a timely notice will be published in the Federal 
Register.

ADDRESSES: Copies of the rule revisions 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 rule revisions 
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 92123-1095
South Coast Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182
Ventura County Air Pollution Control District, 669 County Square Drive, 
Second Floor, Ventura, CA 93003

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: SCAQMD 
Rule 463, Organic Liquid Storage and VCAPCD Rule 70, Storage and 
Transfer of Gasoline. These rules were submitted by the California Air 
Resources Board (CARB) to EPA on May 24, 1994 and August 10, 1995, 
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 Los Angeles-South 
Coast Air Basin (LA Basin) 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 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. 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.
    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 LA Basin is classified as extreme and the 
Ventura County Area is classified as severe 2; therefore, these

[[Page 54942]]

areas were subject to the RACT fix-up requirement and the May 15, 1991 
deadline.
---------------------------------------------------------------------------

    \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 LA Basin and Ventura County Area 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 56 FR 56694 (November 6, 1991).
---------------------------------------------------------------------------

    The State of California submitted many revised RACT rules for 
incorporation into its SIP on May 24, 1994 and August 10, 1995, 
including the rules being acted on in this notice. This notice 
addresses EPA's direct-final action for SCAQMD Rule 463, Organic Liquid 
Storage and VCAPCD Rule 70, Storage and Transfer of Gasoline. SCAQMD 
adopted Rule 463 on March 11, 1994 and VCAPCD adopted Rule 70 on May 9, 
1995. These submitted rules were found to be complete on July 14, 1994 
and October 4, 1995 pursuant to EPA's completeness criteria that are 
set forth in 40 CFR part 51 Appendix V 3 and is being finalized 
for approval into the SIP.
---------------------------------------------------------------------------

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

    SCAQMD Rule 463 controls VOC emissions from above-ground stationary 
tanks used for storage of organic liquids. VCAPCD Rule 70 reduces the 
emission of VOCs from the storage and transfer of gasoline. VOCs 
contribute to the production of ground level ozone and smog. These 
rules were originally adopted as part of SCAQMD's and VCAPCD's effort 
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 SCAQMD Rule 463 are entitled, ``Control of Volatile 
Organic Emissions from Petroleum Liquid Storage in External Floating 
Roof Tanks'', (EPA 450/2-78-047) and ``Control of Volatile Organic 
Emissions from Storage of Petroleum Liquids in Fixed-Roof Tanks'', (EPA 
450/2-77-036). The CTGs applicable to VCAPCD Rule 70 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). 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.
    SCAQMD's submitted Rule 463, Organic Liquid Storage, includes the 
following significant changes from the current SIP:
     Emissions from all tanks must now be reduced by at least 
90%. Requirements for coaxial Phase I vapor recovery systems, pressure 
relief valves, and liquid removal devices have added;
     Criteria for opening hatches for visual inspections of 
delivery vehicles are defined;
     Tanks with capacities less than 550 gallons are exempted 
from the rule unless they are located at a retail service station;
     The recordkeeping requirements have been updated;
     Testing requirements and test methods have been included;
     Several new definitions have been added to the rule: 
Altered or repaired, balance system, CARB executive orders, insertion 
interlock, mobile refueler, rebuilt equipment, Reid vapor pressure, top 
off, vacuum assist system, and vapor tight.
    VCAPCD's submitted Rule 70, Storage and Transfer of Gasoline, 
includes the following significant changes from the current SIP:
     The format of the rule was restructured to conform with 
the standard format of subsequent rules;
     An Applicability section was added to the rule to make its 
format consistent with the standard format of subsequent District 
rules;
     The Definitions section was expanded to clarify the 
meaning of terms used in the rule and to ensure that they are used 
consistently throughout the rule;
     The Requirements section was revised to: (1) Include a 
self-inspection program; (2) delete the permit requirements for 
replacement of floating roof tanks seals; (3) include floating roof 
tank seals categories based on emission control effectiveness; and (4) 
include a provision for emissions reporting to help streamline annual 
emissions reporting, recordkeeping and tracking;
     The revised rule includes specific Test Methods for use in 
evaluating rule compliance or violations.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, SCAQMD Rule 473, Organic Liquid Storage and VCAPCD Rule 70, 
Storage and Transfer of Gasoline 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 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 December 23, 1996, unless, by November 22, 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 December 23, 1996.

[[Page 54943]]

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 these rules 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 for 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 government 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 government 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.

Submission to Congress and the General Accounting Office

    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 this rule in today's 
Federal Register. This rule is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

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 30, 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]

Subpart F--California

    1. The authority citation for Part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.

    2. Section 52.220 is amended by adding paragraphs (c)(197)(i)(A)(2) 
and (c)(224)(i)(B) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (197) * * *
    (i) * * *
    (A) * * *
    (2) Rule 463, adopted on March 11, 1994.
* * * * *
    (224) * * *
    (i) * * *
    (B) Ventura County Air Pollution Control District.
    (1) Rule 70, adopted on May 9, 1995.
* * * * *
[FR Doc. 96-26573 Filed 10-22-96; 8:45 am]
BILLING CODE 6560-50-P