[Federal Register Volume 62, Number 14 (Wednesday, January 22, 1997)]
[Rules and Regulations]
[Pages 3220-3223]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1078]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 105-0012a; FRL-5673-6]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision; Kern County Air Pollution Control 
District; San Diego County Air Pollution Control District; Ventura 
County Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to approve revisions to the 
California State Implementation Plan (SIP). The revisions concern rules 
from the Kern County Air Pollution Control District (KCAPCD), the San 
Diego County Air Pollution Control District (SDCAPCD), and the Ventura 
County Air Pollution Control District (VCAPCD). This approval action 
will incorporate five rules into the federally approved SIP. The 
intended effect of approving these rules is to regulate emissions of 
oxides of nitrogen (NOx) in accordance with the requirements of 
the Clean Air Act, as amended in 1990 (CAA or the Act). The rules 
control NOx emissions from boilers, steam generators, process 
heaters, electric utility boilers, internal combustion engines, and 
stationary gas turbines. 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 nonttainment 
areas.

DATES: This action is effective on March 24, 1997 unless adverse or 
critical comments are received by February 21, 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 for each 
rule are available for public inspection at EPA's Region IX office 
during normal business hours. Copies of the submitted rules are 
available for inspection at the following locations:

Rulemaking Office (AIR-4), Air Division, U.S. Environmental Protection 
Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105.
Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street, 
S.W., Washington, DC 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814.
Kern County Air Pollution Control District, 2700 M Street, Suite 302, 
Bakersfield, CA 93301.
San Diego County Air Pollution Control District, Rule Development 
Section, 9150 Chesapeake Drive, San Diego, CA 92123-1096.
Ventura County Air Pollution Control District, Rule Development 
Section, 669 County Square Drive, Ventura, CA 93003.

    Written comments should be submitted to Andrew Steckel, Rulemaking 
Office (AIR-4), Air Division, Environmental Protection Agency, Region 
IX, 75 Hawthorne Street, San Francisco, CA 95105.

FOR FURTHER INFORMATION CONTACT: Andrew Steckel, Rulemaking Office 
(AIR-4), Air Division, U.S. Environmental Protection Agency, Region IX, 
75 Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-
1185.

SUPPLEMENTARY INFORMATION:

Applicability

    The rules being approved into the California SIP include: KCAPCD's 
Rule 425.2, Boilers, Steam Generators, and Process Heaters (Oxides of 
Nitrogen); Rule 427, Stationary Piston Engines (Oxides of Nitrogen); 
SDCAPCD's Rule 69.4, Stationary Reciprocating Internal Combustion 
Engines; VCAPCD's Rule 59, Electric Power Generating Equipment--Oxides 
of Nitrogen Emissions; and Rule 74.23, Stationary Gas Turbines. These 
rules were submitted by the California Air Resources Board (CARB) to 
EPA on February 11, 1994 (Rule 59), October 19, 1994 (Rule 69.4), May 
25, 1995 (Rule 425.2), and March 26, 1996 (Rules 74.23 and 427).

Background

    On November 15, 1990, the Clean Air Act Amendments of 1990 (CAA) 
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 
NO 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

[[Page 3221]]

Supplement to the General Preamble; Clean Air Act Amendments of 1990 
Implementation of Title I; Proposed Rule,'' (the NOx Supplement) 
which describes the requirements of section 182(f). The NOx 
Supplement should be referred to for further information on the NOx 
requirements and is incorporated into this document 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 compounds 
(VOCs), in moderate or above ozone nonattainment areas. Kern County is 
classified as a serious nonattainment area.1 San Diego County is 
classified as a serious nonattainment area, and Ventura County area is 
classified as severe for ozone.2 All areas are subject to the RACT 
requirements of section 182(b)(2), cited below.
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    \1\ Kern County retained its designation of nonattainment and 
was 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).
    \2\  The San Diego and Ventura County Areas 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 56 FR 56694 (November 6, 1991). The San 
Diego Area was reclassified from severe to serious on February 21, 
1995. See 60 FR 3771 (January 19, 1995).
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    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC emissions (not covered by a pre-enactment 
control technique guidelines (CTG) document or a post-enactment 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 
category 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 by May 31, 1995 for those 
sources where installation by that date is practicable.
    This document addresses EPA's direct-final action for the KCAPCD's 
Rule 425.2, Boilers, Steam Generators, and Process Heaters (Oxides of 
Nitrogen); Rule 427, Stationary Piston Engines (Oxides of Nitrogen); 
SDCAPCD's Rule 69.4, Stationary Reciprocating Internal Combustion 
Engines; and for the VCAPCD's Rule 59, Electric Power Generating 
Equipment--Oxides of Nitrogen Emissions; and Rule 74.23, Stationary Gas 
Turbines. The KCAPCD adopted Rule 425.2 on April 6, 1995 and Rule 427 
on January 1, 1996. The SDCAPCD adopted Rule 69.4 on September 27, 1994 
and the VCAPCD adopted Rule 59 on October 12, 1993 and Rule 74.23 on 
October 10, 1995. The submitted KCAPCD's Rule 425.2 was found to be 
complete on July 24, 1995 and Rule 427 on May 15, 1996. SDCAPCD's Rule 
69.4 was found to be complete on October 21, 1994. VCAPCD's Rule 59 was 
found to be complete on April 11, 1994; and Rule 74.23 on May 15, 1996 
pursuant to EPA's completeness criteria set forth in 40 CFR Part 51 
Appendix V 3 and are being finalized for approval into the SIP.
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    \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).
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    NOx emissions contribute to the production of ground level 
ozone and smog. The five rules control emissions of NOx from 
electric utilities and various industries used in a wide variety of 
applications. The rules were adopted as part of the KCAPCD's, 
SDCAPCD's, and VCAPCD's efforts to achieve and maintain the National 
Ambient Air Quality Standards (NAAQS) for ozone. All five rules are 
required to satisfy the mandates of the Clean Air Act requirements, and 
were submitted pursuant to the CAA requirements cited above.

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 interpretations of these requirements, 
which form the basis for this action, appear in the NOx Supplement 
and various other EPA policy guidance documents.4 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.
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    \4\  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).
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    For the purposes of assisting state and local agencies in 
developing NOX RACT rules, EPA prepared the NOX Supplement, 
cited above (57 FR 55620). In the NOX Supplement, EPA provides 
guidance on how RACT should be determined for major stationary sources 
of NOX emissions. The document sets RACT emission levels 
specifically for electric utility boilers. For all other source 
categories, EPA expects States/Districts to establish RACT levels 
comparable to those levels for utility boilers taking into account 
cost, cost-effectiveness, and emission reductions.
    While most of the guidance issued by EPA (previous to the NOX 
Supplement) 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 has issued alternative control techniques documents (ACTs), 
that identify alternative controls for most categories of stationary 
sources of NOX. The ACT documents provide information on control 
technology for stationary sources that emit or have the potential to 
emit 25 tons per year or more of NOX. While providing guidance and 
information for States to use in making RACT determinations, the ACTs 
do 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 issued by EPA to ensure that submitted NOX 
RACT rules are fully enforceable and strengthen or maintain the SIP.
    KCAPCD Rule 425.2 sets NOX emission limits for units with 
annual heat input of 9 billion Btu or more at 70 parts per million 
(ppm) by volume for gas-fired units and 115 ppm for liquid-fired units. 
Emission limits are corrected to 3% oxygen. Rule 425.2 meets EPA's RACT 
guidance and May 31, 1995 implementation requirements by requiring that 
RACT be fully implemented by November 1997 and that interim measures 
including submission of a compliance plan and an application for 
authority to construct be met to ensure progress toward final 
compliance.
    EPA established RACT levels for electric utility boilers and 
recommended for other source categories that States/Districts make RACT 
determinations comparable to those EPA established for electric utility 
boilers. This comparability should be based on several factors 
including cost, cost-effectiveness, and emission reductions.
    The California Air Resources Board RACT/BARCT Guidance 5 
document for institutional, commercial, and industrial

[[Page 3222]]

(ICI) boilers suggests a RACT limit of 70 ppm corrected to 3% O2 
for units fired with gaseous fuel and 115 ppm for units fired with 
fuels other than gas. EPA has used CARB's Guidance document in 
evaluating Rule 425.2 for consistency with the CAA's RACT requirements. 
Rule 425.2's RACT emission limits (70/115 ppm) are generally comparable 
to the emission limits of CARB's Guidance document and meet federal 
RACT requirements.
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    \5\ Determination of Reasonably Available Control Technology and 
Best Available Retrofit Control Technology for Industrial, 
Institutional, and Commercial Boilers, Steam Generators, and Process 
Heaters (RACT/BARCT guidance for ICI boilers), California Air 
Resources Board, July 18, 1991.
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    Kern Rule 427 contains different requirements depending upon the 
size of the engines. Engines rated greater than 50 bhp are required to 
conduct regular maintenance procedures. Engines rated greater than 250 
bhp are required to meet the emissions limits by June 1997. The rule 
establishes RACT emission limits for engines rated 250 bhp or greater 
at 50 parts per million (ppm), 125 ppm, and 600 ppm for rich burn 
engines, lean burn engines, and diesel engines, respectively. In lieu 
of meeting the emissions limits, sources may install control equipment 
that reduces NOx emissions by 90%, 80%, and 30% for rich-burn, 
lean-burn, and diesel engines, respectively. Although final compliance 
with the emissions limits is not required until 1999, the rule does 
require interim measures be met by 1995. Emission control plans and 
maintenance procedures are required in the interim to ensure progress 
toward final compliance with the emission limits in 1999.
    San Diego Rule 69.4 describes emission limits and reduction 
requirements in two tables. One table establishes RACT concentration 
limits and the other table sets percent reduction limits. Rule 69.4 
establishes RACT at 50 ppm for rich burn engines, 125 ppm for lean burn 
engines, and 700 ppm for diesel engines. The concentration limits are 
referenced to 15% oxygen on a dry basis. The alternative control device 
efficiencies are set at 90%, 80%, and 25% for rich, lean, and diesel 
engines, respectively. The rule requires the RACT limits be met by May 
31, 1995 for existing engines and upon start-up for new engines.
    The current SIP approved version of VCAPCD Rule 59 limits NOx 
emission from boilers rated greater than or equal to 2,150 million 
British Thermal Units (MMBtu) to 0.10 pounds per megawatt-hour (lb/MW-
hr) produced, and limits NOx emissions from boilers rated less 
than 2,150 MMBtu to 0.20 lb/MW-hr produced. Final compliance with these 
limits is required by June 4, 1994 and June 4, 1996 respectively. The 
significant changes in the October 12, 1993 version of Rule 59 are: (1) 
boilers under 2,150 million Btu per hour are now limited to 0.10 pound 
per megawatt-hour (lb/MW-hr) produced at loads at or above 43 megawatts 
(MW); and (2) the start-up duration of this exemption for auxiliary 
boilers has been changed from one hour to four hours. The additional 
reduction of NOx emissions derived from this rule is part of 
VCAPCD's effort towards achieving the state and federal ozone 
standards.
    VCAPCD's Rule 74.23 sets NOx limits at 42 ppm (gas-fired) and 
65 ppm (oil-fired) for units rated at or above 0.3 MW but less than 2.9 
MW and for units rated 4 MW and greater, but operating at less than 877 
hours per year. For all other units, the rule sets the following 
emission limits: (i) 25 ppm (gas-fired), corrected for turbine 
efficiency and 65 ppm (oil-fired) for units rated at or above 2.9 MW 
but less than 10 MW; (ii) 9 ppm (gas-fired) and 25 ppm (oil-fired) for 
units rated greater than 10 MW with selective catalytic reduction 
(SCR); and (iii) 15 ppm (gas-fired) and 42 ppm (oil-fired) for units 
rated greater than 10 MW with no SCR. Rule 74.23 meets EPA's RACT 
guidance and May 31, 1995 implementation requirements by requiring that 
BARCT limits be fully implemented by April 2001, and that interim 
measures including submitting a compliance plan and implementing 
interim emission limits be met to ensure progress toward the final 
emission limit of the rule.
    The California Air Resources Board RACT/BARCT Guidance 6 
document for stationary gas turbines suggest RACT limits of 42 ppm for 
gas-fired units and 65 ppm for oil fired units. BARCT limits for units 
with SCR are 9 ppm and 25 ppm for gas-fired units and oil-fired units 
respectively. For units without SCR, the BARCT limits are 15 ppm (gas-
fired units) and 42 ppm (oil-fired units). Rule 74.23 emission limits 
meet the values of CARB's RACT/BARCT limits, thereby meeting the CAA 
requirements for RACT.
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    \6\ Determination of Reasonably Available Control Technology and 
Best Available Retrofit Control Technology for the Control of Oxides 
of Nitrogen from Stationary Gas Turbines (RACT/BARCT guidance for 
gas turbines), California Air Resources Board, May 18, 1992.
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    EPA agrees that the RACT emissions limits established in the Kern 
Rules 425.2 and 427, the San Diego Rule 69.4, and the Ventura Rules 59 
and 74.23 are consistent with the Agency's guidance and policy for 
making RACT determinations, and believes the rules satisfy the NOX 
RACT requirement of the CAA for ICI boilers in Kern County, the I/C 
engines in Kern and San Diego Counties, the electric utility boilers 
and the stationary gas turbines in Ventura County.
    EPA is incorporating these rules into the SIP because they 
strengthen the SIP through the addition of enforceable measures such as 
NOx emission limits, recordkeeping, test methods, definitions, and 
compliance tests. EPA believes all five rules for these source 
categories in each district satisfy the RACT requirements of the CAA. A 
more detailed discussion of the sources controlled, the controls 
required, and the analysis of how these controls meet RACT can be found 
in the Technical Support Document (TSD) for each rule available from 
the U.S. EPA Region IX office.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations and EPA policy. All five 
rules meet RACT requirements for their particular category, and contain 
implementation dates consistent with the CAA and EPA's policy. 
Therefore, all five are being approved under section 110(k)(3) of the 
CAA as meeting the requirements of section 110 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 amendment and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, the EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. This action will be 
effective March 24, 1997, unless, by February 21, 1997, 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 March 24, 1997.

[[Page 3223]]

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 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 801(a)(1)(A) of the Administrative Procedures Act (APA) as 
amended 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 rules in today's Federal Register. These rules are 
not major rules as defined by section 804(2) of the APA as amended.

Regulatory Flexibility Act

    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. Secs. 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 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).
    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, Oxides of 
nitrogen, 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: December 23, 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)(195)(i)(B)(2), (C)(202)(i)(C)(5), (C)(221)(i)(A)(3), 
(C)(230)(i)(A)(2) and (C)(230)(i)(C) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (195)* * *
    (i) * * *
    (B) * * *
    (2) Rule 59, adopted on October 12, 1993.
* * * * *
    (202) * * *
    (i) * * *
    (C) * * *
    (5) Rule 69.4, adopted on September 27, 1994.
* * * * *
    (221) * * *
    (i) * * *
    (A) * * *
    (3) Rule 425.2, adopted on April 6, 1995.
* * * * *
    (230) * * *
    (i) * * *
    (A) * * *
    (2) Rule 74.23, adopted on October 10, 1995.
* * * * *
    (C) Kern County Air Pollution Control District.
    (1) Rule 427, adopted on January 25, 1996.

[FR Doc. 97-1078 Filed 1-21-97; 8:45 am]
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