[Federal Register Volume 61, Number 213 (Friday, November 1, 1996)]
[Rules and Regulations]
[Pages 56470-56472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27846]


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


ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 126-0011a; FRL-5616-6]


Approval and Promulgation of State Implementation Plans; 
California State Implementation Plan Revision; Mojave Desert Air 
Quality Management District; South Coast Air Quality Management 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

SUMMARY: EPA is taking direct final action to approve revisions to the 
California State Implementation Plan (SIP). The revisions concern rules 
from the Mojave Desert Air Quality Management District (MDAQMD) and the 
South Coast Air Quality Management District (SCAQMD). The rules control 
oxides of nitrogen (NOx) from boilers and process heaters, 
internal combustion engines, residential natural gas-fired water 
heaters, and stationary gas turbines. This action will incorporate 
these rules into the Federally approved SIP. The intended effect of 
approving these rules is to regulate emissions of NOx in 
accordance with the requirements of the Clean Air Act, as amended in 
1990 (CAA or the Act). The 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 31, 1996 unless adverse or 
critical comments are received by December 2, 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 of 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, 
SW., Washington, DC 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814.
Mojave Desert Air Quality Management District, 15428 Civic Drive, Suite 
200, Victorville, CA 92392.
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 94105-3901, Telephone: (415) 
744-1200.

SUPPLEMENTARY INFORMATION:

Applicability

    The rules being approved into the California SIP include: MDAQMD 
Rule 1157, Boilers and Process Heaters; MDAQMD Rule 1160, Internal 
Combustion Engines; SCAQMD Rule 1121, Control of Nitrogen Oxides from 
Residential Type Natural Gas-Fired Water Heaters; and SCAQMD Rule 1134, 
Emissions of Oxides of Nitrogen from Stationary Gas Turbines.

Background

    On November 15, 1990, the Clean Air Act Amendments of 1990 (CAA or 
the Act) were enacted. Pub. L. 101-549, 104 Stat. 2399, codified at 42 
U.S.C. 7401-7671q. The air quality planning requirements for the 
reduction of NOx emissions through reasonably available control 
technology (RACT) are set out in section 182(f) of the CAA. On November 
25, 1992, EPA published a Notice of Proposed Rulemaking entitled 
``State Implementation Plans; Nitrogen Oxides Supplement to the General 
Preamble; Clean Air Act Amendments of 1990 Implementation of Title I; 
Proposed Rule,'' (the NOx Supplement) which describes and provides 
preliminary guidance on the requirements of section 182(f). 57 FR 
55620. The NOx Supplement should be referred to for further 
information on the NOx requirements and is incorporated into this 
notice of direct final rulemaking by reference.
    Section 182(f) of the Clean Air Act requires States to apply the 
same requirements to major stationary sources of NOX (``major'' as 
defined in section 302 and section 182 (c), (d), and (e)) as are 
applied to major stationary sources of volatile organic compound (VOC) 
emissions, in moderate or above ozone nonattainment areas. The 
Southeast Desert Air Basin is classified as severe, and the Los 
Angeles-South Coast Air Basin Area is classified as extreme; 1 
therefore these areas were subject to section 182(f), the RACT 
requirements of section 182(b)(2), and the November 15, 1992 deadline, 
cited below.
---------------------------------------------------------------------------

    \1\ The Southeast Desert Air Basin and the Los Angeles-South 
Coast Air Basin Area retained their designations 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 55 FR 56694 
(November 6, 1991).
---------------------------------------------------------------------------

    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC (and NOX) emissions not covered by 
either a pre-enactment or post-enactment control techniques guideline 
(CTG) document by November 15, 1992. There were no NOX CTGs issued 
before enactment and EPA has not issued a CTG document for any NOX 
sources since enactment of the CAA. The RACT rules covering NOX 
sources and submitted as SIP revisions, are expected to require final 
installation of the actual NOX controls as expeditiously as 
practicable, but no later than May 31, 1995.
    MDAQMD Rule 1157 and Rule 1160 were both adopted on October 26, 
1994, and submitted by CARB to EPA on November 30, 1994. SCAQMD Rule 
1121 was adopted on March 10, 1995,

[[Page 56471]]

and submitted on May 24, 1995. SCAQMD Rule 1134 was adopted on December 
7, 1995 and submitted on March 26, 1996. These submitted rules were 
found to be complete on January 30, 1995, July 24, 1995, and May 15, 
1996, respectively, pursuant to EPA's completeness criteria that are 
set forth in 40 CFR part 51 Appendix V.2 By today's document, EPA 
is taking direct final action to approve these rules into the SIP.
---------------------------------------------------------------------------

    \2\ 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).
---------------------------------------------------------------------------

    MDAQMD Rule 1157 controls emissions of NOX from boilers and 
process heaters, and MDAQMD Rule 1160 regulates internal combustion 
engines. SCAQMD Rule 1121 controls emissions from residential water 
heaters, and SCAQMD Rule 1134 applies to stationary gas turbines. 
NOX emissions contribute to the production of ground level ozone 
and smog. The rules were adopted as part of each district's efforts to 
achieve the National Ambient Air Quality Standards for ozone and in 
response to the CAA requirements cited above. The following section 
contains EPA's evaluation and final action for these rules.

EPA Evaluation

    In determining the approvability of a NOX 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 this action, appears in various EPA policy 
guidance documents.3 Among these provisions is the requirement 
that a NOX rule must, at a minimum, provide for the implementation 
of RACT for stationary sources of NOX emissions.
---------------------------------------------------------------------------

    \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); and 
``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).
---------------------------------------------------------------------------

    For the purposes of assisting State and local agencies in 
developing NOX RACT rules, EPA prepared the NOX Supplement to 
the General Preamble. In the NOX Supplement, EPA provides guidance 
on how RACT will be determined for stationary sources of NOX 
emissions. While most of the guidance issued by EPA on what constitutes 
RACT for stationary sources has been directed towards application for 
VOC sources, much of the guidance is also applicable to RACT for 
stationary sources of NOX (see section 4.5 of the NOX 
Supplement). In addition, pursuant to section 183(c), EPA is issuing 
alternative control technique documents (ACTs), which identify 
alternative controls for all categories of stationary sources of 
NOX. The ACT documents will provide information on control 
technology for stationary sources that emit or have the potential to 
emit 25 tons per year or more of NOX. However, the ACTs will not 
establish a presumptive norm for what is considered RACT for stationary 
sources of NOX. In general, the guidance documents cited above, as 
well as other relevant and applicable guidance documents, have been set 
forth to ensure that submitted NOX RACT rules are fully 
enforceable and strengthen or maintain the SIP.
    MDAQMD Rule 1157 is a new rule which controls emissions from 
boilers, steam generators, and process heaters with rated heat inputs 
of 5 million British Thermal Units per hour (MMBTU/hr) or more, used in 
a variety of industrial, institutional, and commercial operations. This 
rule contains NOX RACT limits of 70 ppmv for units operated on 
gaseous fuel and 115 ppmv for units operated on liquid or solid fuel. 
Units permitted to emit more than 5 tons/day or more than 250 tons/year 
of NOX must meet stricter emission limits. This rule also requires 
monitoring of fuel usage and annual source testing.
    MDAQMD Rule 1160 is a new rule regulating internal combustion 
engines rated at 500 brake horsepower (bhp) or greater. The rule 
contains a VOC limit of 106 ppmv and a CO limit of 4500 ppmv. NOX 
limits depend on the type of engine: 50 ppmv for rich-burn engines, 140 
ppmv for lean-burn, and 700 ppmv for diesel. The rule also contains 
provisions for an alternative method of compliance with NOX limits 
by requiring reductions of uncontrolled NOX emissions by at least 
90% for rich-burn engines, 80% for lean-burn engines, and 30% for 
diesel engines. Operator inspections are required at least every 
calendar quarter or after every 2,000 hours of operation, whichever is 
more frequent.
    SCAQMD Rule 1121 applies to manufacturers, distributors, retailers, 
and installers of residential natural gas-fired water heaters. This 
submitted rule is a revision to the existing SIP rule, and contains the 
following major changes:
     An ``Applicability'' section has been added for 
clarification.
     Definitions have been added for several terms, such as: 
independent testing laboratory, mobile home water heater, and rated 
heat input capacity.
     Certification requirements have been amended to require 
source testing and verification from an independent testing laboratory, 
and reverification every three years.
    SCAQMD Rule 1134 is a new rule that controls emissions from 
stationary gas turbines of 0.3 megawatt and larger. The rule contains 
NOX emission limits ranging from approximately 9 ppmv to 25 ppmv, 
depending on the size of the unit. Annual source testing is required 
for units emitting 25 tons of NOX per year or more. All other 
units must source test after every 8,400 hours of operation. This rule 
requires the use of a continuous emissions monitoring system with data 
gathering and retrieval capability, and requires maintenance of a daily 
operating log.
    A more detailed discussion of the sources controlled,4 the 
controls required, and the justification for why these controls 
represent RACT can be found in the Technical Support Document (TSD) for 
each rule, available from the U.S. EPA Region IX office.
---------------------------------------------------------------------------

    \4\ SCAQMD Rule 1121 and Rule 1134 will apply to sources which 
are not covered in the SCAQMD NOX RECLAIM program.
---------------------------------------------------------------------------

    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations and EPA policy. Therefore, 
MDAQMD Rule 1157, MDAQMD Rule 1160, SCAQMD Rule 1121, and SCAQMD Rule 
1134 are being approved under section 110(k)(3) of the CAA as meeting 
the requirements of section 110(a), section 182(b)(2), section 182(f) 
and the NOX Supplement to the General Preamble.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any State 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, the EPA is proposing to approve the SIP revisions 
should adverse or critical comments be filed. This action will be 
effective December 31, 1996, unless, within 30 days of its

[[Page 56472]]

publication, 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 notice 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 31, 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 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).

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. Section 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 sections 603 
and 604. Alternatively, EPA may certify that the rule will not have a 
significant economic 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, 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 affected small entities. 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 review under Executive Order 12866.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
dioxide, Nitrogen oxides, Ozone, Reporting and recordkeeping 
requirements, Volatile organic compound.

    Dated: September 17, 1996.
Felicia Marcus,
Regional Administrator.

    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) 
(207)(i)(D)(3), (220)(i)(C), and (230)(i)(B) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (207) * * *
    (i) * * *
    (D) * * *
    (3) Rule 1157 and Rule 1160, adopted on October 26, 1994.
* * * * *
    (220) * * *
    (i) * * *
    (C) South Coast Air Quality Management District.
    (1) Rule 1121, adopted on March 10, 1995.
* * * * *
    (230) * * *
    (i) * * *
    (B) South Coast Air Quality Management District.
    (1) Rule 1134, adopted on December 7, 1995.
* * * * *
[FR Doc. 96-27846 Filed 10-31-96; 8:45 am]
BILLING CODE 6560-50-P