[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Rules and Regulations]
[Pages 64291-64294]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30872]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 181-0024a; FRL-5649-8]


Approval and Promulgation of Implementation Plan for South Coast 
Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The EPA is taking direct final action to approve South Coast 
Air Quality Management District (District) Rules 212, 1301, 1302, 1303, 
1304, 1306, 1309, 1309.1, 1310, and 1313 for the purpose of meeting 
requirements of the Clean Air Act, as amended in 1990 (CAA or Act) with 
regard to new source review (NSR) in areas that have not attained the 
national ambient air quality standards (NAAQS). This approval action 
will incorporate these rules into the federally approved State 
Implementation Plan (SIP) for California. The rules were submitted by 
the State to satisfy certain Federal requirements for an approvable NSR 
SIP. 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 February 3, 1997 unless adverse or 
critical comments are received by January 3, 1997. 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 9 office during 
normal business hours at the following address: New Source Section (A-
5-1), Air and Toxics Division, U.S. Environmental Protection Agency, 
Region IX, 75 Hawthorne Street, San Francisco, CA 94105. Copies of the 
submitted rules are also available for inspection at the following 
locations:

California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814.
South Coast Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Gerardo C. Rios, (A-5-1), Air and 
Toxics Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105-3901, Telephone: (415) 744-
1259.

SUPPLEMENTARY INFORMATION: The air quality planning requirements for 
nonattainment NSR are set out in part D of title I of the Clean Air 
Act. EPA has issued a ``General Preamble'' describing EPA's preliminary 
views on how EPA intends to review SIPs and SIP revisions submitted 
under part D, including those State submittals containing nonattainment 
NSR SIP requirements [see 57 FR 13498 (April 16, 1992) and 57 FR 18070 
(April 28, 1992)]. Because EPA is describing its interpretations here 
only in broad terms, the reader should refer to the General Preamble 
for a more detailed discussion. EPA has also proposed regulations to 
implement

[[Page 64292]]

the changes under the 1990 Amendments in the NSR provisions in parts C 
and D of title I of the Act. (See 61 FR 38249 (July 23, 1996)). Upon 
final promulgation of those regulations, EPA will review those NSR SIP 
submittals on which it has already taken final action to determine 
whether additional SIP revisions are necessary.

Procedural Background

    The Act requires States to observe certain procedural requirements 
in developing implementation plans and plan revisions for submission to 
EPA. Section 110(a)(2) and section 110(l) of the Act provide that each 
implementation plan or revision to an implementation plan submitted by 
a State must be adopted after reasonable notice and public hearing. 
Section 172(c)(7) of the Act provides that plan provisions for 
nonattainment areas shall meet the applicable provisions of Section 
110(a)(2).
    The District held a public hearing on December 7, 1995 to accept 
public comment on Rules 212, 1301, 1302, 1309, 1309.1, 1310, and 1313. 
On December 7, 1995, the Rules were adopted by the District Board of 
Directors. The District also held a public hearing on May 10, 1996 to 
accept public comment on Rule 1303. On May 10, 1996, the rule was 
adopted by the District Board of Directors. Finally, on June 14, 1996 
the District held a public hearing to accept public comment on Rules 
1304 and 1306. On June 14, 1996, the rules were adopted by the District 
Board of Directors. On August 28, 1996, Rules 212, 1301, 1302, 1303, 
1304, 1306, 1309, 1309.1, 1310, and 1313 were submitted to EPA as a 
proposed revision to the California SIP.
    EPA deemed the submittal complete on October 10, 1996 pursuant to 
EPA's completeness criteria that are set forth in 40 CFR part 51 
appendix V 1 and is being finalized for approval into the SIP.
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    \1\ 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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Summary of Rule Contents

    The South Coast Air Quality Management District submitted to EPA 
for adoption into the applicable NSR SIP Rule 212 and Regulation XIII, 
which is composed of Rules 1301, 1302, 1303, 1304, 1306, 1309, 1309.1, 
1310, and 1313. Regulation XIII and Rule 212 constitute the District's 
new source permitting rules. Rule 212 contains the District's 
administrative requirements including the public consultation process 
for permitting.
    Rule 1301 is the general purpose and applicability rule. Rule 1302 
consists of definitions of all terms relating to new sources and 
modifications to existing sources of air pollution, and the 
requirements of Regulation XIII. Rule 1303 contains substantive source 
permitting requirements including Lowest Achievable Emission Rate 
requirements, Best Available Control Technology requirements, offset 
requirements, statewide compliance requirements, Federal Land Manager 
Notification and Class I Area Visibility Protection requirements, and 
Alternative Source Siting Analysis requirements. Rule 1304 establishes 
the exemptions from Regulation XIII. Rule 1306 establishes the emission 
calculation procedures. Rule 1309 establishes procedures for the 
creation, banking, and use of emission reduction credits. Rule 1309.1 
establishes the Priority Reserve which will provide credits for 
specific priority sources. Rule 1310, Analysis and Reporting, 
establishes a thirty day review for the District to issue completeness 
determinations for permit applications, and the requirement for public 
notification of proposed Emission Reduction Credits. Rule 1313, Permits 
to Operate, establishes procedures for issuing permits to operate for 
sources not required to obtain a permit to construct. Regulation XIII 
and Rule 212, therefore, contain the permitting requirements for 
sources located in nonattainment areas.
    Rules 212, 1301, 1302, 1303, 1304, 1306, 1309, 1309.1, 1310, and 
1313 represent comprehensive revisions to the District's NSR permitting 
regulations. These rules are intended to replace Rules 212, 1301, 1302, 
1303, 1304, 1305, 1306, 1307, 1308, 1310, and 1313, which were approved 
into the SIP by EPA on 2/3/89, 1/21/81, 1/21/81, 2/21/81, 3/12/86, 1/
20/85, 1/21/81, 5/18/81, 1/21/81, 1/21/81, and 1/21/81, respectively. 
The District has adopted the current revisions to Regulation XIII and 
Rule 212 in part to meet the CAA and the November 15, 1992 deadline for 
submittal.
    The District is composed of Los Angeles County, Orange County, 
Riverside County, and San Bernardino County. The Air Quality Management 
Area of the District is designated as an extreme ozone nonattainment 
area, while the rest of the District is designated as a severe ozone 
nonattainment area. The District is also designated nonattainment for 
PM10, NO2, and CO. For the detailed area designations that apply to the 
District, please refer to 40 CFR 81.305. The CAA 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. 
EPA has determined that the District's submittal satisfies these 
requirements.
    District Rule 201, which prohibits construction of sources or 
modifications prior to permit issuance and compliance with the 
requirements of these rules, is integral to Regulation XIII. EPA is 
approving Regulation XIII based on the understanding that the District 
will continue to enforce Rule 201 in a manner consistent with the 
federal regulations prohibiting construction before permit issuance. 
The District has interpreted Rule 201 to prohibit such pre-permit 
construction in its interim Rule 201 interpretation dated September 19, 
1994.
    In addition, this approval is based on the understanding that the 
District will apply a tracking system which will continuously show in 
the aggregate that the District: (1) will provide for the necessary 
offsets required to meet the appropriate statutory offset ratio; and 
(2) will mitigate emissions from those sources exempted from offsets 
under Rule 1304 which are not exempt from federal regulation. However, 
offsets for sources exempt from offsets due to their switch from ozone 
depleting compounds (ODCs) to volatile organic compounds (VOCs) will be 
provided by the District through reductions achieved by the District's 
1994 attainment plan which EPA has proposed to approve at FR 10920 
[Vol.61, No. 53/Monday, March 18, 1996] [CA114-1-7280; FRL-5439-8]. 
Therefore, the District need not show in the tracking system mitigation 
in the aggregate for those particular sources. The District, however, 
has committed to track such reductions to avoid double counting 
reductions used to meet the offset ratio in the aggregate. If the 
District modifies the attainment plan so that it no longer provides 
offsets for sources switching emissions from ODCs to VOCs, then the 
District will have to show that those VOC emissions increases will be 
offset by the District through the tracking system as are all other 
emissions sources exempt under Rule 1304, or modify Rule 1304 to 
exclude exemptions for such sources.
    EPA's approval is also based on the District's interpretation of 
Regulation XIII to require a net emissions increase calculation 
consistent with federal requirements for extreme ozone non-attainment 
areas in the non-SEDAB area, for severe ozone non-attainment areas in 
the SEDAB area, and for all other pollutants subject to regulation in 
all parts of the District.

[[Page 64293]]

    Lastly, as part of this approval, interpollutant trades proposed 
within District will be subject to EPA approval.
    For a more detailed description of how the submitted Regulation 
XIII and Rule 212 meet the Act's applicable requirements, please refer 
to EPA's technical support document (TSD).

Action

    EPA has evaluated Regulation XIII and Rule 212 and has determined 
that they are consistent with the CAA, EPA regulations and EPA policy. 
Therefore, District Rules 212, 1301, 1302, 1303, 1304, 1306, 1309, 
1309.1, and 1310 are being approved under section 110(k)(3) of the CAA 
as meeting the requirements of section 110(a), and part D of Title I of 
the Act.

Administrative Review

    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 in part 
because the District has provided public workshops in the development 
of the submitted rules, and provided the opportunity for public comment 
prior to adoption of the submitted rules. At that time, no significant 
comments were received by the District. The Agency therefore views this 
as a non-controversial amendment 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 February 3, 1997, 
unless, unless by January 3, 1997, 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. 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 February 3, 1997.

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 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).

Unfunded Mandates and SBREFA

    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.
    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 these rules 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).
    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, Nitrogen 
dioxide, Particulate matter, Reporting and recordkeeping requirements, 
Sulfur dioxide, Volatile organic compounds.

    Dated: October 29, 1996.
John Wise,
Acting 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)(240) to read 
as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (240) New and amended regulations for the following APCD were 
submitted on August 28, 1996 by the Governor's designee.
    (i) Incorporation by reference.
    (A) South Coast Air Quality Management District.
    (1) Rules 212, 1301, 1302, 1309, 1309.1, 1310, and 1313, adopted on 
December 7, 1995, Rule 1303, adopted

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on May 10, 1996, and Rules 1304 and 1306, adopted on June 14, 1996.
* * * * *
[FR Doc. 96-30872 Filed 12-3-96; 8:45 am]
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