[Federal Register Volume 63, Number 60 (Monday, March 30, 1998)]
[Proposed Rules]
[Pages 15116-15118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8063]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 207-0068a; FRL-5987-4]


Approval and Promulgation of State Implementation Plans; 
California State Implementation Plan Revision; San Joaquin Valley 
Unified Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve revisions to the California State 
Implementation Plan (SIP) which concerns Rule 4401 from the San Joaquin 
Valley Unified Air Pollution Control District (SJVUAPCD). This rule 
controls volatile organic compound (VOC) emissions from steam-enhanced 
crude oil production well vents. The intended effect of proposing 
approval of this rule is to regulate emissions of VOCs in accordance 
with the requirements of the Clean Air Act, as amended in 1990 (CAA or 
the Act). EPA's final action on this proposed rule will incorporate 
this rule into the Federally-approved SIP. In addition, the

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final action on this rule will serve as a final determination that the 
deficiencies in this rule have been corrected and that on the effective 
date of the final action, any sanction or Federal implementation plan 
(FIP) clock will be stopped. Thus, EPA is proposing approval of this 
rule 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: Comments must be received on or before April 29, 1998.

ADDRESSES: Comments may be mailed to Andrew Steckel, Rulemaking Office 
(AIR-4), Air Division, U.S. Environmental Protection Agency, Region IX, 
75 Hawthorne Street, San Francisco, CA 94105-3901.
    Copies of the rule and EPA's evaluation report are available for 
public inspection at EPA's Region IX office during normal business 
hours. Copies of the submitted rule 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.
San Joaquin Valley Unified Air Pollution Control District, 1999 
Tuolumne Street, Suite 200, Fresno, CA 93721.

FOR FURTHER INFORMATION CONTACT: Mae Wang, Rulemaking Office (AIR-4), 
Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-1200.

SUPPLEMENTARY INFORMATION:

I. Applicability

    This document concerns SJVUAPCD Rule 4401, Steam-enhanced Crude Oil 
Production Well Vents, adopted by SJVUAPCD on January 15, 1998. This 
rule was submitted by the California Air Resources Board (CARB) to EPA 
on March 10, 1998.

II. Background

    On March 3, 1978, EPA promulgated a list of ozone nonattainment 
areas under the provisions of the Clean Air Act, as amended in 1977 
(1977 Act or pre-amended Act), that included the San Joaquin Valley 
Area which encompassed the following eight air pollution control 
districts (APCDs): Fresno County APCD, Kern County APCD,\1\ Kings 
County APCD, Madera County APCD, Merced County APCD, San Joaquin County 
APCD, Stanislaus County APCD, and Tulare County APCD. See 43 FR 8964, 
40 CFR 81.305. Because some of these areas were unable to meet the 
statutory attainment date of December 31, 1982, California requested 
under section 172(a)(2), and EPA approved, an extension of the 
attainment date to December 31, 1987.\2\ See 40 CFR 52.222. On May 26, 
1988, EPA notified the Governor of California, pursuant to section 
110(a)(2)(H) of the 1977 Act, that the above districts' portions of the 
California SIP were inadequate to attain and maintain the ozone 
standard and requested that deficiencies in the existing SIP be 
corrected (EPA's SIP-Call). On November 15, 1990, the Clean Air Act 
Amendments of 1990 were enacted. Pub. L. 101-549, 104 Stat. 2399, 
codified at 42 U.S.C. 7401-7671q. In amended section 182(a)(2)(A) of 
the CAA, Congress statutorily adopted the requirement that 
nonattainment areas fix their deficient reasonably available control 
technology (RACT) rules for ozone and established a deadline of May 15, 
1991 for States to submit corrections of those deficiencies.
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    \1\ At that time, Kern Country included portions of two air 
basins: the San Joaquin Valley Air Basin and the Southeast Desert 
Air Basin. The San Joaquin Valley Air Basin portion of Kern County 
was designated as nonattainment, and the Southeast Desert Air Basin 
portion of Kern County was designated as unclassified. See 40 CFR 
81.305 (1991).
    \2\ This extension was not requested for the following counties: 
Kern, King, Madera, Merced, and Tulare. Thus, the attainment date 
for these counties remained December 31, 1982.
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    The SJVUAPCD was formed on March 20, 1991. The SJVUAPCD has 
authority over the San Joaquin Valley Air Basin which includes all of 
the above eight counties except for the Southeast Desert Air Basin 
portion of Kern County, which remains under the jurisdiction of the 
Kern County Air Pollution Control District.
    Section 182(a)(2)(A) applies to areas designated as nonattainment 
prior to enactment of the amendments and classified as marginal or 
worse as of the date of enactment.
    It requires such areas to adopt and correct RACT rules pursuant to 
pre-amended section 172(b) as interpreted in pre-amendment guidance.\3\ 
EPA's SIP-Call used that guidance to indicate the necessary corrections 
for specific nonattainment areas. At the time of enactment of the CAA 
amendments, the San Joaquin Valley Area was classified as serious; \4\ 
therefore, this area was subject to the RACT fix-up requirement and the 
May 15, 1991 deadline.
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    \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); ``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); and the existing control 
technique guidelines (CTGs).
    \4\ The San Joaquin Valley Area 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 55 FR 56694 (November 6, 1991).
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    This document addresses EPA's proposed action for SJVUAPCD Rule 
4401, Steam-enhanced Crude Oil Production Well Vents. The SJVUAPCD 
adopted this rule on January 15, 1998, and this rule was submitted by 
CARB to EPA on March 10, 1998. The submitted rule was found to be 
complete on March 18, 1998, pursuant to EPA's completeness criteria 
that are set forth in 40 CFR part 51, Appendix V \5\ and is being 
proposed for approval into the SIP.
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    \5\ 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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    Rule 4401 controls VOC emissions from steam-enhanced crude oil 
production well vents. VOCs contribute to the production of ground 
level ozone and smog. This rule was originally adopted as part of 
SJVUAPCD's effort to achieve the National Ambient Air Quality Standard 
for ozone and in response to EPA's SIP-Call and the section 
182(a)(2)(A) CAA requirement. The following is EPA's evaluation and 
proposed action for this rule.

III. EPA Evaluation

    In determining the approvability of a VOC 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 today's action, appears in the various EPA 
policy guidance documents listed in footnote 3. Among those provisions 
is the requirement that a VOC rule must, at a minimum, provide for the 
implementation of RACT for stationary sources of VOC emissions. This 
requirement was carried forth from the pre-amended Act.
    For the purpose of assisting State and local agencies in developing 
RACT rules, EPA prepared a series of Control Technique Guideline (CTG) 
documents. The CTGs are based on the underlying requirements of the Act 
and specify the presumptive norms for what is RACT for specific source 
categories. Under the

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CAA, Congress ratified EPA's use of these documents, as well as other 
Agency policy, for requiring States to ``fix-up'' their RACT rules. See 
section 182(a)(2)(A). For some source categories, such as steam-
enhanced crude oil production well vents, EPA did not publish a CTG. 
Therefore, there is no CTG applicable to Rule 4401. In such cases, the 
District makes a determination of what controls are required to satisfy 
the RACT requirement, by reviewing the operations of facilities within 
the affected source category. In that review, the technological and 
economic feasibility of the proposed controls are considered. 
Additionally, the District may rely on EPA policy documents or 
technical guidance to ensure that the adopted VOC rules are fully 
enforceable and strengthen or maintain the SIP.
    SJVUAPCD's submitted Rule 4401 includes the following significant 
changes from the current SIP:
    1. Language in several provisions has been amended to clarify the 
intent of the rule.
    2. Provisions related to implementation of best available control 
technology (BACT) and offsets have been amended to be consistent with 
Federal requirements.
    3. Additional recordkeeping requirements have been added to 
determine compliance with the rule.
    EPA has evaluated the submitted rule and has determined that it is 
consistent with the CAA, EPA regulations, and EPA policy. Therefore, 
SJVUAPCD Rule 4401 is being proposed for approval under section 
110(k)(3) of the CAA as meeting the requirements of section 110(a) and 
part D. Based on this proposed full approval, EPA is also making an 
interim final determination that the State has corrected the 
deficiencies for which a sanctions clock began on September 27, 1996. 
See 61 FR 44161, August 28, 1996. Elsewhere in today's Federal 
Register, EPA has published a document that defers the imposition of 
sanctions until EPA's final action approving SJVUAPCD Rule 4401 becomes 
effective or until EPA takes action proposing or finally disapproving 
in whole or part the State submittal. If EPA takes final action fully 
approving SJVUAPCD Rule 4401, any sanctions clocks will be permanently 
stopped and any imposed, stayed or deferred sanctions will be 
permanently lifted upon the effective date of that final action.
    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.

IV. Regulatory Process

A. 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.
    SIAP approvals under sections 100 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, 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. EPA., 427 U.S. 246, 256-66 (S. Ct. 1976); 42 
U.S.C. 7410(a)(2).

B. Unfunded Mandates Reform Act

    Under section 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 government in the aggregate, or to 
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.
    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 rule being proposed for approval 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 proposed 
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.

C. Executive Order 12866

    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, 
Intergovernmental relations, Ozone, Reporting and recordkeeping 
requirements, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: March 20, 1998.
Felicia Marcus,
Regional Administrator, Region IX.
[FR Doc. 98-8063 Filed 3-27-98; 8:45 am]
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