[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Rules and Regulations]
[Pages 17084-17087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9014]



[[Page 17084]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[A-1-FRL-5801-9]


Approval and Promulgation of Air Quality Implementation Plans; 
Vermont; Reasonably Available Control Technology for Major Stationary 
Sources of Nitrogen Oxides and Volatile Organic Compounds not Covered 
by Other Category-Specific Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is approving a State Implementation Plan (SIP) revision 
submitted by the State of Vermont. This revision establishes and 
requires Reasonably Available Control Technology (RACT) at major 
stationary sources of nitrogen oxide (NOX) emissions and major 
stationary sources of volatile organic compound (VOC) emissions which 
are not subject to other category-specific VOC control regulations in 
Vermont. The intended effect of this action is to approve a number of 
regulatory amendments and source-specific RACT determinations in 
accordance with the Clean Air Act.

DATES: This action will become effective June 9, 1997, unless notice is 
received by May 9, 1997 that adverse or critical comments will be 
submitted. If the effective date is delayed, timely notice will be 
published in the Federal Register.

ADDRESSES: Comments may be mailed to Susan Studlien, Deputy Director, 
Office of Ecosystem Protection (mail code CAA), U.S. Environmental 
Protection Agency, Region I, JFK Federal Building, Boston, MA 02203. 
Copies of the documents relevant to this action are available for 
public inspection during normal business hours, by appointment at the 
Office Ecosystem Protection, U.S. Environmental Protection Agency, 
Region I, One Congress Street, 11th floor, Boston, MA and the Air 
Pollution Control Division, Agency of Natural Resources, Building 3 
South, 103 South Main Street, Waterbury, VT 05676.

FOR FURTHER INFORMATION CONTACT: Steven A. Rapp, (617) 565-2773, or 
[email protected].

SUPPLEMENTARY INFORMATION: On August 9, 1993, the Vermont Agency of 
Natural Resources (``Vermont'' or ``VT ANR'') submitted to EPA a number 
of revisions to its State implementation plan (SIP). EPA is acting on 
several of those submittals. First, section 5-101 was amended to add a 
definition of ``Reasonably Available Control Technology.'' Second, 
subsection 5-251(2), ``Reasonably available control technology for 
large stationary sources'' was added which requires major stationary 
sources of NOX to install, maintain, and use NOX RACT. And 
third, Vermont also added subsection 5-253.20, ``Other Sources That 
Emit Volatile Organic Compounds,'' which defines RACT requirements for 
major stationary sources of VOC which are not subject to any other VOC 
regulations under Section 5-253.
    Regarding NOx RACT, there are three major stationary sources 
of NOX emissions in Vermont. Two of the NOX facilities are 
covered by federally enforceable permits which define ``most stringent 
emission rate'' (MSER) NOX limitations. MSER limitations are not 
always considered equivalent to RACT limits. However, on June 6, 1994, 
Vermont submitted to EPA copies of the permits for Ryegate Power 
Station and Burlington Electric Department and EPA determined that 
these MSER limits were equivalent to, or more stringent than, NOX 
RACT limits and technology standards. For the third major stationary 
NOX source, on March 20, 1995, Vermont submitted a source-specific 
consent order which defined NOX RACT for Simpson Paper Company's 
Gilman facility to EPA as a SIP revision.
    Regarding VOC RACT, section 5-253 contains a number of VOC control 
regulations which were developed in response to EPA's issuance of 
control technique guideline (CTG) documents. These regulations define 
RACT for various categories of VOC sources. However, subsection 5-
253.20 applies to major stationary sources of VOCs which are not 
covered by the CTG-based rules. In other words, subsection 5-253.20 is 
a non-CTG VOC RACT regulation. This regulation only applies to U.S. 
Samaica Corporation in Rutland, Vermont. On March 20, 1995, Vermont 
submitted a source-specific SIP revision defining non-CTG VOC RACT for 
U.S. Samaica's Rutland facility.
    By this action, EPA is approving section 5-101, subsection 5-
251(2), subsection 5-253.20, the source-specific NOX RACT 
determination for Simpson Paper Company, and the source-specific VOC 
RACT determination for U.S. Samaica, and incorporating them into the 
Vermont SIP. This action will have a beneficial effect on air quality. 
It is expected to reduce NOX emissions at Simpson Paper by 30 to 
50%, and VOC by at least 81% at U.S. Samaica from an uncontrolled 
baseline. This action is being taken under Section 110 of the Clean Air 
Act.

I. Summary of SIP Revision

A. Clean Air Act Requirements

    Sections 182(b)(2), 182(f), and 184(b) of the Clean Air Act (CAA) 
require States to develop Reasonably Available Control Technology 
(RACT) regulations for all major stationary sources of NOX and VOC 
emissions in areas classified as ``moderate,'' ``serious,'' ``severe,'' 
and ``extreme'' ozone nonattainment areas, as well as in all areas of 
the Ozone Transport Region. These sections of the CAA, taken together, 
establish the requirements for Vermont to submit RACT regulations which 
cover major sources of VOC and NOX statewide.
    Section 182(b)(2) requires States located in areas classified as 
moderate ozone nonattainment areas to require implementation of RACT 
with respect to all major sources of volatile organic compounds (VOC). 
Additionally, section 182(f) states that, ``The plan provisions 
required under this subpart for major stationary sources of volatile 
organic compounds shall also apply to major stationary sources (as 
defined in section 302 and subsections (c), (d), and (e) of the 
section) of oxides of nitrogen.'' This RACT requirement also applies to 
all major sources in ozone nonattainment areas with higher than 
moderate nonattainment classifications.
    Unless already classified at a higher nonattainment level, section 
184(b)(2) requires major stationary sources in the Ozone Transport 
Region to meet the requirements which would be applicable to major 
sources if the area were classified as a moderate nonattainment area. 
The State of Vermont is currently in attainment of the ozone National 
Ambient Air Quality Standard (NAAQS). However, section 184(a) of the 
CAA defines an Ozone Transport Region within the northeastern United 
States, which includes Vermont.
    Section 302 of the CAA generally defines ``major stationary 
source'' as a facility or source of air pollution which has the 
potential to emit 100 tons per year or more of air pollution. This 
definition applies unless another provision of the CAA explicitly 
defines major source differently. Therefore, for NOX, a major 
source is one with the potential to emit 100 tons per year or more in 
marginal and moderate areas, as well as in attainment areas in the OTR. 
For VOC emissions, section 184(b)(2) specifies that in the OTR a major 
stationary source is one with the potential to emit of 50 tons per year 
or more.
    The amendments to section 5-101, section 5-251, and section 5-253, 
as well as the source-specific RACT

[[Page 17085]]

determinations for Simpson Paper and U.S. Samaica were submitted in 
response to the CAA requirements.

B. Regulatory Background

    On January 23, 1991, EPA sent a letter notifying Vermont that the 
CAA mandated that within 2 years of enactment, States submit SIP 
revisions which require the implementation of RACT for all major 
stationary sources of VOC and NOX. On January 26, 1993, the VT ANR 
submitted proposed amendments to sections 5-101, 5-251 and 5-253 of the 
Regulations to EPA for comment. Vermont held a public hearing on these 
rules on March 10, 1993. EPA submitted written comments on the proposed 
regulations on March 18, 1993. The regulations were adopted on July 9, 
1993 and became effective on August 13, 1993.
    Vermont submitted the adopted definition, non-CTG VOC RACT, and 
NOX RACT regulations as a formal SIP submittal to EPA on August 9, 
1993. On October 25, 1993, EPA sent Vermont a letter requesting that 
Vermont commit to submitting to EPA for approval source-specific RACT 
determinations for the RACT-subject sources as well. The SIP submittals 
for the RACT regulations were deemed technically and administratively 
complete by operation of law on February 10, 1994. Subsequently, on 
March 20, 1995, Vermont submitted 2 case-specific SIP revisions, 
defining NOX RACT requirements at Simpson Paper Company's Gilman 
facility, and VOC RACT at U.S. Samaica's Rutland facility. On September 
15, 1995, EPA sent a letter to Vermont deeming both case-specific 
submittals technically and administratively complete.

C. Description of Submittal

    In this submittal, Vermont amended section 5-101 to include a 
definition for ``Reasonably Available Control Technology.'' Vermont 
also added subsection 5-251(2), ``Reasonably available control 
technology for large stationary sources,'' which establishes a 
requirement that RACT be installed and operated at all major stationary 
sources of NOX by May 31, 1995. Additionally, Vermont added 
subsection 5-253.20, ``Other Sources That Emit Volatile Organic 
Compounds,'' which defines RACT requirements for major stationary 
sources of VOCs which are not covered by other VOC regulations in 
Vermont.
    Regarding NOX RACT, subsection 5-251(2) is completely generic, 
meaning that the rule does not set emission limitations or technology 
standards for any sources. Instead, the regulation requires sources to 
submit compliance plans to the State by November 15, 1993 and to 
install and operate RACT by May 31, 1995. Subsection 5-251(2)(d) allows 
equipment subject to a federally enforceable ``most stringent emission 
rate'' (MSER) NOX limitation, which is similar to EPA's ``Best 
Available Control Technology'' (BACT) under 40 CFR 51.166, to be exempt 
from the RACT requirements. Since the regulation lacks specific 
NOX emission limitations, technology standards, and compliance 
assurance requirements, all sources subject to subsection 5-251(2) must 
have RACT defined on a case-by-case basis by VT ANR. Such case-specific 
RACT determinations must then be approved by EPA as revisions to 
Vermont's SIP.
    Although generic RACT rules would generally mean many source-
specific SIP revisions, Vermont's NOX RACT rules only apply to two 
wood fired boilers and one wood/gas fired boiler. Two of these sources 
are currently subject to federally enforceable MSER permit limits. 
First, a wood fired boiler using flue gas recirculation (FGR) in 
combination with selective non-catalytic reduction (SNCR) is required 
to meet an emission limit of 0.13 pound NOX per million Btu 
(#NOX/MBtu) heat input on an hourly basis, demonstrated with a 
continuous emission monitoring system (CEMS). And second, a wood/gas 
fired boiler using FGR and low-NOX burners for gas firing and FGR 
and good combustion practices for wood firing is required to meet 
emission limitations of 0.25 #NOX/MBtu for wood and 0.12 
#NOX/MBtu for gas on an hourly basis, demonstrated by CEMS.
    The emission limits to which these sources are subject are 
consistent with EPA and the Northeast States for Coordinated Air Use 
Management (NESCAUM) recommendations for natural gas firing (i.e., 0.20 
#/MBtu) at utility boilers. Although neither EPA or NESCAUM have 
developed recommended emission limits for wood firing, the current MSER 
limits (0.13 #NOX/MBtu and 0.25 #NOX/MBtu) are reasonable 
when compared to the EPA and NESCAUM recommendations for gas and oil 
firing, which range from 0.20 #NOX/MBtu to 0.43 #NOX/MBtu. 
These MSER limits can be considered to be at least as stringent as RACT 
for these sources. Therefore, the exemption under subsection 5-
251(2)(d) is approvable.
    The third major stationary source of NOX in Vermont, Simpson 
Paper Company's Gilman facility, is subject to the NOX RACT 
requirement of subsection 5-251(2). On January 4, 1995, VT ANR issued 
an administrative order defining NOX RACT for this facility. This 
NOX RACT determination consists of emission limitations and 
control technology requirements for the Zurn wood-fired boiler and, no 
additional control requirements for the four Babcock and Wilcox 
residual oil fired auxiliary boilers.
    For the Zurn boiler, RACT was determined to be an emission rate 
limitation of 0.30 #NOX/MBtu and a mass discharge rate limitation 
of 54 #NOX/hour. These emission limitations must be met on a 24 
hour rolling average. Compliance with the limitations is determined by 
a NOX CEMS. Records are required to be kept for five years and 
quarterly reports to the VT ANR are also required. For Simpson's four 
oil-fired boilers, since they have historically operated at less than 
1% of their capacity, Vermont has determined that they are auxiliary 
boilers and additional NOX controls would not be cost effective.
    Although neither EPA or NESCAUM have developed recommended emission 
limits for wood firing, limit of 0.30 #NOX/MBtu are reasonable 
when compared to the EPA and NESCAUM recommendations for gas and oil 
firing, which range from 0.20 #/MBtu to 0.43 #/MBtu. Also, although 
0.30 #NOX/MBtu is higher than the two NOX MSER limits 
mentioned above, as described earlier in the notice, the lower MSER 
limits were determined as part of the construction permit process for 
new emission units. The higher NOX limit for the Zurn boiler is 
reasonable considering the technical and economic feasibility of 
retrofitting an older existing boiler.
    Regarding VOC RACT, subsection 5-253.20 of the Vermont Regulations 
applies to stationary sources with the potential to emit of at least 50 
tons of VOC which are not subject to other VOC regulations in section 
5-253, which have been developed subsequent to EPA's development of 
Control Technique Guideline (CTG) documents. This non-CTG regulation 
defines RACT as either an overall reduction in uncontrolled VOC 
emissions of at least 81% by weight, or, for coating units, a daily 
weighted average of VOC content in the coatings of 3.5 pounds of VOC 
per gallon of coating applied (excluding exempt solvents). The rule 
also sets out process by which a facility can apply for an alternative 
RACT limit. However, subsection 5-253.20 does not contain specific 
compliance assurance requirements, such as emissions testing, 
monitoring, recordkeeping, and reporting requirements, which are 
required as part of an approvable RACT regulation. Therefore, for all 
sources subject to this regulation, Vermont must define these specific 
compliance

[[Page 17086]]

assurance requirements as part of case-specific RACT determinations and 
submit such determinations to EPA as revisions for approval into the 
Vermont SIP.
    On November 15, 1993, Vermont sent a letter to EPA committing the 
State to submitting a case-specific SIP revision for the one major non-
CTG VOC source subject to subsection 5-253.20. Accordingly, on March 
20, 1995, Vermont submitted to EPA an administrative order for U.S. 
Samaica Corporation which requires the company to use incineration 
control devices, which achieve an 81% overall VOC control, on two of 
their process lines and to shut down their third process line by May 
31, 1995. The administrative order also contains enforceable emissions 
testing, monitoring, recordkeeping, and reporting requirements.

II. Final Action

    EPA is approving the following regulatory amendments into the 
Vermont SIP at this time. First, EPA is approving the amendment to 
section 5-101, which adds a definition for RACT to the Vermont 
regulations. Second, EPA is approving the addition of subsection 5-
251(2), as well as the source-specific RACT determination for Simpson 
Paper Company, which together define NOx RACT for Vermont. And 
finally, EPA is approving the addition of subsection 5-253.20, as well 
as the source-specific RACT determination for U.S. Samaica Corporation, 
which together define non-CTG VOC RACT for the State.
    EPA is publishing this action 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, EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. This action will be 
effective June 9, 1997 unless adverse or critical comments are received 
by May 9, 1997.
    If the EPA receives such comments, this action will be withdrawn 
before the effective date by simultaneously 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 on June 9, 1997.
    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.

III. Administrative Requirements

A. Executive Order 12866

    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 E.O. 12866 review.

B. 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. 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 section 110 and subchapter I, part D of the 
Clean Air Act 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, the 
Administrator certifies 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 flexibility 
analysis would constitute Federal inquiry into the economic 
reasonableness of state action. The Clean Air Act forbids EPA to base 
its actions concerning SIPs on such grounds. Union Electric Co. v. U.S. 
EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

    Under Sections 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
costs to State, local, or tribal governments in the aggregate; or to 
the private sector, of $100 million or more. Under Section 205, EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that the approval action promulgated does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. This Federal action approves pre-
existing requirements under State or local law, and imposes no new 
Federal requirements. Accordingly, no additional costs to State, local, 
or tribal governments, or to the private sector, result from this 
action.

D. Submission to Congress and the General Accounting Office

    Under 5 U.S.C. 801(a)(1)(A) of the Regulatory Flexibility Act, 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).

E. Petitions for Judicial Review

    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by June 9, 1997. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements. (See section 307(b)(2).) EPA encourages 
interested parties to comment on the proposed rule rather than filing a 
petition for judicial review challenging the final rule.

[[Page 17087]]

List of Subjects in 40 CFR Part 52

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

    Note: Incorporation by reference of the State Implementation 
Plan for the State of Vermont was approved by the Director of the 
Federal Register on July 1, 1982.

    Dated: March 8, 1997.
John P. DeVillars,
Regional Administrator, Region I.

    Part 52 of 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 UU--Vermont

    2. Section 52.2370 is amended by adding paragraph (c)(22) to read 
as follows:


Sec. 52.2370  Identification of plan.

* * * * *
    (c) * * *
    (22) Revisions to the State Implementation Plan submitted by the 
Vermont Air Pollution Control Division on August 9, 1993 and March 20, 
1995.
    (i) Incorporation by reference.
    (A) Letters from the Vermont Air Pollution Control Division dated 
August 9, 1993 and March 20, 1995 submitting revisions to the Vermont 
State Implementation Plan.
    (B) Regulations, including section 5-101, ``Definitions,'' 
subsection 5-251(2), ``Reasonably available control technology for 
large stationary sources,'' and, subsection 5-253.20, ``Other Sources 
That Emit Volatile Organic Compounds,'' adopted on July 9, 1993 and 
effective on August 13, 1993.
    (C) Administrative orders for Simpson Paper Company, in Gilman, 
Vermont, and, U.S. Samaica Corporation, in Rutland, Vermont, both 
adopted and effective on January 4, 1995.
    3. In Sec. 52.2381, Table 52.2381 is amended by adding a new entry 
to the end of existing state citation for section 5-101, 
``Definitions,''; adding two new entries to the end of the existing 
state citation for section 5-251, ``Control of Nitrogen Oxides 
Emissions,'' and by adding new state citation for section 5-253.20, 
``Other Sources That Emit Volatile Organic Compounds,'' to read as 
follows:


Sec. 52.2381  EPA--approved Vermont State regulations.

* * * * *

                                    Table 52.2381.--EPA-Approved Regulations                                    
                                    [Vermont SIP regulations 1972 to present]                                   
----------------------------------------------------------------------------------------------------------------
                                    Date         Date                                             Comments and  
   State citation, title and     adopted by  approved by   Federal Register       52.2370          unapproved   
            subject                State         EPA           citation                             sections    
----------------------------------------------------------------------------------------------------------------
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
Section 5-101 Definitions.....       7/9/93       4/9/97  62 FR 17087......  (c)(22)..........  Adds definition 
                                                                                                 of reasonably  
                                                                                                 available      
                                                                                                 control        
                                                                                                 technology     
                                                                                                 (RACT).        
*                  *                  *                  *                  *                  *                
                                                        *                                                       
  Section 5-251 Control of           7/9/93       4/9/97  62 FR 17087......  (c)(22)..........  Requires RACT   
   nitrogen oxides emissions.                                                                    for major      
                                                                                                 stationary     
                                                                                                 sources of NOX.
                                     1/4/95       4/9/97  62 FR 17087......  (c)(22)..........  NOX RACT for    
                                                                                                 Simpson Paper  
                                                                                                 Company's      
                                                                                                 Gilman facility
Section 5-253 control of             7/9/93       4/9/97  62 FR 17087......  (c)(22)..........  Requires RACT at
 volatile organic compounds.                                                                     non-CTG VOC    
                                                                                                 sources.       
                                     1/4/95       4/9/97  62 FR 17087......  (c)(22)..........  Non-CTG VOC RACT
                                                                                                 for U.S.       
                                                                                                 Samaica        
                                                                                                 Corporation's  
                                                                                                 Rutland        
                                                                                                 facility.      
                                                                                                                
*                  *                  *                  *                  *                  *                
                                                        *                                                       
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[FR Doc. 97-9014 Filed 4-8-97; 8:45 am]
BILLING CODE 6560-50-P