[Federal Register Volume 63, Number 11 (Friday, January 16, 1998)]
[Rules and Regulations]
[Pages 2630-2631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1133]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[FRL-5950-4]


National Emission Standards for Gasoline Distribution Facilities; 
Bulk Gasoline Terminals and Pipeline Breakout Stations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of limited exclusion for gasoline distribution 
facilities.

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SUMMARY: The EPA publishes today notification of a limited exclusion 
from applicability for gasoline distribution facilities that would be, 
but for this action, subject to the air toxic provisions of 40 CFR part 
63, subpart R, the National Emission Standards for Gasoline 
Distribution Facilities (Bulk Gasoline Terminals and Pipeline Breakout 
Stations).

DATES: This policy took effect on December 12, 1997, the day that the 
attached letter detailing this policy was signed. Petitions for review 
of this determination must be filed on or before March 17, 1998 in 
accordance with the provisions of section 307(b)(1) of the Clean Air 
Act (CAA).

ADDRESSES: The related material in support of this policy may be 
examined during normal business hours at the United States 
Environmental Protection Agency, Office of Enforcement and Compliance 
Assurance, Air Enforcement Division, Ariel Rios Building, Room 1119, 
12th and Pennsylvania Ave., NW, Washington, DC 20004.

FOR FURTHER INFORMATION CONTACT: Charles Garlow of the U.S. EPA, Air 
Enforcement Division (Mail Code 2242A), 401 M St SW, Washington, DC 
20460, telephone (202) 564-1088.

SUPPLEMENTARY INFORMATION: On October 15, 1997, the American Petroleum 
Institute (API) requested relief from the applicability of the Gasoline 
Distribution National Emission Standard for Hazardous Air Pollutants 
(NESHAP) as the compliance date of December 15, 1997 was approaching. 
Certain members of the API trade association had timely applied for 
synthetic minor permits so as to qualify as area or minor sources not 
subject to the Gasoline Distribution MACT standard. However, state or 
local permitting authorities had, in many instances, not been able to 
process the otherwise-approvable applications before December 15, 1997. 
Since many states have a public comment period, it was apparent that 
these permits could not be issued prior to the compliance date even if 
every effort was made. Therefore, API asserted, through no fault of 
their members, they would be subject to the requirements of this NESHAP 
when they assumed they would not be, resulting in some sources 
potentially facing operational shutdowns or violation of the standard.
    The EPA responded, as is detailed in the attached letter, by 
granting a time limited exclusion from applicability to those sources 
that notify the EPA that they have timely applied and have otherwise 
made good faith efforts to obtain the synthetic minor permits in 
question. Due to delays in publishing this document, sources wishing to 
avail themselves of this policy have until January 30, 1998, to notify 
EPA of their status, if they have not already done so.
    In addition to publication of this document, US EPA has placed a 
copy of this policy letter on its Technology Transfer Network (TTN) 
bulletin board service and Website.

(Sec. 112, Clean Air Act (42 U.S.C. 7412))
Bruce Buckheit,
Director, Air Enforcement Division.

December 12, 1997.
Ms. Ellen Siegler,
American Petroleum Institute, 1220 L Street, NW, Washington, DC 
20005-4070.

Re: Gasoline Distribution MACT Standard.

    Dear Ms. Siegler: The American Petroleum Institute recently 
approached the Environmental Protection Agency (EPA) seeking relief 
from the Gasoline Distribution Maximum Achievable Control Technology 
(MACT) standard for those facilities that timely sought permits 
limiting their potential to emit so as to qualify as area sources 
not covered by that standard. We were then informed that numerous 
facilities (through no fault of their own) have not yet been issued 
such permits by their permit issuing authorities. Under EPA's ``once 
in--always in'' policy, such facilities will become subject to the 
Gasoline Distribution MACT standard on that rule's compliance date 
(December 15, 1997).
    As a general matter, we believe that it is the source's 
obligation to achieve compliance with the regulation as of the 
effective date of that regulation. Where, as here, the regulation 
provided 3 years to achieve compliance, we believe that sources that 
wish to avoid the imposition of major source obligations by seeking 
``synthetic minor'' permits should do so shortly after the date of 
rule promulgation. Given the substantial workload imposed on 
permitting authorities by the Title III and Title V programs, those 
who wait until there is less than 1 year from the compliance date to 
submit their permit application should anticipate that there is a 
substantial risk, that they must bear, that the synthetic minor 
permit may not be issued in time. However, because this is an issue 
of first impression, and facilities may have relied in good faith on 
representations of permitting authorities that permits received 
within a shorter time frame would be processed by December 15, 1997, 
we have agreed to provide a limited enforcement discretion as set 
out below.
    Based on the facts presented and subject to the terms, 
conditions and limitations outlined herein, we concluded that the 
EPA should and, therefore, will provide limited relief for certain 
facilities:
    Limited Exclusion--EPA will not consider an otherwise covered 
facility to be subject to the Gasoline Distribution MACT standard 
(1) if the facility owner or operator filed a complete application 
with its appropriate permitting authority for a permit limiting its 
potential to emit so as to qualify as an area source not covered by 
that standard prior to June 15, 1997, and (2) if it identifies the 
facility to EPA not later than January 15, 1998. This limited 
exclusion is limited to a 90-day period and will expire on March 15, 
1998.
    Conditional Extension--If a facility has not yet received its 
permit by March 15, 1998, it will be subject to the Gasoline 
Distribution MACT standard as of this date unless such facility 
notifies EPA, prior to March 15, 1998, that an additional period of 
time is needed for good cause shown. If the facility has not yet 
received such permit and then certifies to

[[Page 2631]]

EPA that it has made diligent efforts to obtain the needed permit by 
(1) providing all information requested by the permitting authority 
and (2) accepting reasonable permit conditions, then EPA may grant 
an additional extension for up to 90 days beyond March 15, 1998. 
Failure to accept reasonable permit terms and conditions will not be 
recognized as a good cause basis for seeking an extension. If a 
facility has not yet received its permit by that later date, it will 
be subject fully to the Gas Distribution MACT standard as of its 
compliance date.
    General Conditions/Limitations--As an express condition of 
benefiting from and operating under the above-described limited 
exclusion, each facility must comply at all times with each of the 
following:
     The source must have submitted the synthetic minor 
permit by June 15, 1997.
     The permit application terms and conditions must 
effectively limit emissions to area source levels.
     The source must certify to EPA and maintain full 
compliance with all the terms, conditions and representations 
reflected or referred to in its timely, complete permit application.
     The reason for the delay in the issuance of the permit 
must not be the fault of the source (e.g., at least one source will 
not be issued a permit because of unresolved New Source Performance 
Standards violations at the facility. Such source does not qualify 
for this exclusion.
     The source must submit, by January 15, 1998, supporting 
documentation, including the executive summary and enforcement 
provisions of the permit application with transmittal date, any 
indication from the permitting agency regarding the completeness of 
the application and recent communication from or to the permitting 
authority indicating the current status of the application (e.g., 
public comment being sought, etc.). Such documentation must be 
mailed to Air Enforcement Division, Attention: Charles Garlow, Esq., 
US EPA, Mail Code 2242A, 401 M St. SW, Washington, D.C. 20460, or 
sent by delivery service to the same Division, Ariel Rios Building, 
Room 2111, 12th and Pennsylvania Aves., N.W., Washington, DC 20004.
    A failure to fully comply with each and every requirement, as 
may be determined by EPA, will void this grant of discretionary 
enforcement relief, cause such facility to be subject to the 
requirements of the Gasoline Distribution MACT standard as of its 
compliance date (December 15, 1997), and subject the facility to 
possible enforcement for violation of the MACT standard.
    Sources in this situation should be reminded that if they 
presently qualify as synthetic minor sources, by operation of the 
January 25, 1995 Seitz/Van Heuvelen policy memorandum entitled 
``Options for Limiting the Potential to Emit (PTE) of a Stationary 
Source Under Section 112 and Title V of the Clean Air Act'', then 
these sources do not need to utilize the option described here prior 
to the termination date of that policy. For example, if a source has 
documented actual emissions since January 1994 of less than 50% of 
the major source thresholds, then a permit is not needed to limit 
the PTE. Other options are described in this memorandum.
    As the Gasoline Distribution MACT standard compliance date is 
fast approaching, you have agreed to endeavor to distribute this 
memorandum broadly at the earliest practicable time to all 
facilities that may be subject to the MACT standard.
    Questions regarding this matter should be directed to the Air 
Enforcement Division, 202-564-1088.
      Sincerely,
Steven A. Herman,
Assistant Administrator.

    Identical letters sent to:

Mr. John Prokof, Independent Liquid Terminal Association (ILTA), 
1133 15th Street, NW, Suite 650, Washington, D.C. 20005.
Ms. Michele Joy, Association of Oil Pipelines (AOPL), 110 Vermont 
Ave, NW, Washington, D.C. 20005.
Mr. Tom Osburn, Society of Independent Gasoline Marketers of America 
(SIGMA), 11911 Freedom Drive, Reston, Virginia 20190.
cc: Regional Counsel, Regions I-X, Regional Air Program Directors, 
Regions I-X, John Seitz, Director, OAQPS, Lydia Wegman, Deputy 
Director, OAQPS, Bruce Jordan, Director, ESD.
[FR Doc. 98-1133 Filed 1-15-98; 8:45 am]
BILLING CODE 6560-50-P