[Federal Register Volume 63, Number 117 (Thursday, June 18, 1998)]
[Proposed Rules]
[Pages 33312-33314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16255]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 187-0064; FRL-6112-1]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, South Coast Air Quality Management 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a revision to the California State 
Implementation Plan (SIP) which concerns the control of volatile 
organic compound (VOC) emissions from architectural coatings.
    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 rulemaking will incorporate this rule into the 
federally approved SIP. EPA has evaluated this rule and is proposing to 
approve it 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 July 20, 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 revisions and EPA's evaluation report of this 
rule are available for public inspection at EPA's Region IX office 
during normal business hours. Copies of the submitted rule revisions 
are also available for inspection at the following locations:

California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95812.
South Coast Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Yvonne Fong, Rulemaking Office (AIR-
4), Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105-3901, (415) 744-1199.

SUPPLEMENTARY INFORMATION:

I. Applicability

    This Federal Register action for the South Coast Air Quality 
Management

[[Page 33313]]

District excludes the Los Angeles County portion of the Southeast 
Desert AQMD, otherwise known as the Antelope Valley Region in Los 
Angeles County, which is now under the jurisdiction of the Antelope 
Valley Air Pollution Control District as of July 1, 1997. The rule 
being proposed for approval into the California SIP is South Coast Air 
Quality Management District (SCAQMD) Rule 1113, Architectural Coatings. 
This rule was submitted by the California Air Resources Board to EPA on 
November 26, 1996.

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 CAA or pre-amended Act), that included the Los Angeles-South 
Coast Air Basin Area. 43 FR 8964; 40 CFR 81.305. On May 26, 1988, EPA 
notified the Governor of California, pursuant to section 110(a)(2)(H) 
of the pre-amended Act, that the above district's 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. Section 110(a)(2)(A) of the Act requires that plans which are 
submitted to the EPA in order to achieve or maintain the National 
Ambient Air Quality Standards (NAAQS) contain enforceable emission 
limitations. The Los Angeles-South Coast Air Basin Area has retained 
its designation of nonattainment and is classified as extreme.\1\
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    \1\ The Los Angeles-South Coast Air Basin 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 56 FR 56694 (November 6, 1991).
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    The State of California submitted many rules for incorporation into 
its SIP on November 26, 1996, including the rule being acted on in this 
document. This document addresses EPA's proposed action for South Coast 
Air Quality Management District Rule 1113, Architectural Coatings. The 
South Coast Air Quality Management District adopted Rule 1113 on 
November 8, 1996. This submitted rule was found to be complete on 
February 11, 1997 pursuant to EPA's completeness criteria that are set 
forth in 40 CFR part 51, appendix V \2\ and is being proposed for 
approval into the SIP.
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    \2\ 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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    The South Coast Air Quality Management District Rule 1113 controls 
volatile organic compound (VOC) emissions from architectural coatings. 
VOCs contribute to the production of ground-level ozone and smog. This 
rule was adopted as part of the district's efforts to achieve the NAAQS 
for ozone and in response to EPA's SIP-Call and the section 
110(a)(2)(A) CAA requirement. The following is EPA's evaluation and 
proposed action for this rule.

III. EPA Evaluation and Proposed Action

    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).
    In addition, this rule was evaluated against the general 
requirements of the Clean Air Act (section 110 and part D), 40 CFR part 
52, ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and 
Deviations--Clarification to Appendix D of November 24, 1987 Federal 
Register'' (EPA's ``Blue Book''), and the EPA Region IX--California Air 
Resources Board document entitled ``Guidance Document for Correcting 
VOC Rule Deficiencies'' (April 1991). In general, these guidance 
documents have been set forth to ensure that VOC rules are fully 
enforceable and strengthen or maintain the SIP.
    On January 24, 1985, EPA approved into the SIP a version of Rule 
1113, Architectural Coatings that had been adopted by the SCAQMD on 
March 16, 1984. The version of Rule 1113 currently included in the SIP 
was also used to evaluate the version being proposed for approval. The 
SCAQMD Rule 1113 submitted on November 26, 1996 includes the following 
significant changes from the current SIP:
     Addition, deletion, and consolidation of definitions 
(section (b));
     Future low-VOC limits for the following coating 
categories: flats, lacquers, multi-color, and traffic coatings (section 
(c)(2));
     VOC content limits for the following specialty coating 
categories: japans, magnesite, and fire-proofing coatings (section 
(c)(2));
     VOC content limits for previously exempted specialty 
coating categories (section (c)(2));
     Requirement that VOC containing materials must be stored 
in closed containers (section (c)(5));
     Averaging provision to allow manufacturers to average the 
VOC content of their flat coatings, on a sales weighted basis (section 
(c)(6) and appendix A);
     Language clarifying how exceedances of allowable emissions 
will be handled when a source uses averaging (appendix A);
     Labeling requirements for quick-dry enamels and quick-dry 
primers, sealers, and undercoaters (section (d)(4));
     Test methods for determining VOC content, acid content, 
metal content, flame spread index, drying times, and gloss (section 
(e));
     Technology assessment for flat and lacquer coating 
categories (section (f));
     Additional reporting requirements for manufacturers 
utilizing the exemption for quick-dry primers, sealers, and 
undercoaters (section (g)(2));
     Exemption for lacquers to add up to 10% retarder above the 
VOC limit during cool, humid days to prevent blushing of acetone 
formulated lacquers with a maximum VOC content of 550 g/L (section 
(g)(3)); and
     Small business exemption from lower future effective VOC 
limits for lacquers and flats (section (g)(4)). In the aggregate, these 
changes to the SIP approved rule provide additional flexibility and 
recognition of some specialty products without relaxing the 
requirements of the rule.
    The SCAQMD staff report for Rule 1113 projects that the submitted 
rule will reduce VOC emissions from architectural coatings by 17.2% by 
the year 2010. In contrast, control measure CTS-07 of SCAQMD's 1994 Air 
Quality Management Plan (AQMP) commits SCAQMD to reduce architectural 
coating emissions by 75% by 2010. EPA approved the 1994 AQMP, and thus 
the 75% commitment, into the SIP on September 26, 1996 (52 FR 1150, 
January 8, 1997). The AQMP relies on the concept that each industry 
will reduce its fair share of emissions. Therefore, the 17.2% reduction 
is ``only a fraction of the 75% emission reduction that will eventually 
be required from AIM coatings to provide their fair share of the 
required emission reductions'' (page 8, District staff recommendation 
to Board regarding Board meeting to be held on November 8, 1996 to 
amend Rule 1113).
    EPA has evaluated the submitted rule and has determined that it is 
enforceable and strengthens the applicable SIP. Therefore, South Coast 
Air Quality Management District Rule

[[Page 33314]]

1113, Architectural Coatings is being proposed for approval under 
section 110(k)(3) of the CAA in light of EPA's authority pursuant to 
section 301(a) to adopt regulations necessary to further air quality by 
strengthening the SIP. The submitted version of Rule 1113 strengthens 
the SIP by updating a portion of the SIP for the Los Angeles Air Basin 
that has not been revised since 1985. EPA notes, however, that the 
submitted rule does not fulfill SCAQMD's SIP-approved commitment in 
CTS-07 to reduce VOCs from architectural coatings by 75%. Air quality 
progress and attainment of the public health-based ozone standard both 
require that the District pursue expeditiously further emission 
reductions from this large segment of the South Coast VOC emissions 
inventory.
    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.

IV. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from Executive Order (E.O.) 12866 review.
    The proposed rule is not subject to E.O. 13045, entitled 
``Protection of Children from Environmental Health Risks and Safety 
Risks,'' because it is not an ``economically significant'' action under 
E.O. 12866.

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 sections 110 and 301, 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 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 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 proposed 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.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental relations, Ozone, Reporting and recordkeeping 
requirements, Volatile organic compound.

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

    Dated: June 7, 1998.
Felicia Marcus,
Regional Administrator, Region IX.
[FR Doc. 98-16255 Filed 6-17-98; 8:45 am]
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