[Federal Register Volume 63, Number 159 (Tuesday, August 18, 1998)]
[Rules and Regulations]
[Pages 44132-44135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21896]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 181-0081a FRL-6141-8]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on revisions to the 
California State Implementation Plan (SIP.) These revisions concern 
rules from the following districts: the Mojave Desert Air Quality 
Management District (MDAQMD) and the South Coast Air Quality Management 
District (SCAQMD). This approval action will incorporate these rules 
into the federally approved SIP. The intended effect of approving these 
rules is to regulate emissions of volatile organic compounds (VOCs) in 
accordance with the requirements of the Clean Air Act, as amended in 
1990 (CAA or the Act). The revised rules control VOC emissions from 
wood product coating operations. Thus, 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

[[Page 44133]]

standards and plan requirements for nonattainment areas.

DATES: This rule is effective on October 19, 1998 without further 
notice, unless EPA receives relevant adverse comments by September 17, 
1998. If EPA receives such comment, then it will publish a timely 
withdrawal in the Federal Register informing the public that this rule 
will not take effect.

ADDRESSES: Comments must be submitted to Andrew Steckel at the Region 
IX office listed below. Copies of the rule revisions 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 rule revisions 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, 
SW, Washington, D.C. 20460
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 92123-1095
Mojave Desert Air Quality Management District, 15428 Civic Drive, Suite 
200, Victorville, CA 92392
South Coast Air Quality Management District, 218 East Copley Drive, 
Diamond Bar, CA 91765

FOR FURTHER INFORMATION CONTACT: Jerald S. Wamsley, Rulemaking Office, 
AIR-4, Air Division, U.S. Environmental Protection Agency, Region IX, 
75 Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-
1226.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rules being approved into the California SIP include: MDAQMD, 
Rule 1114--Wood Product Coating Operations and SCAQMD, Rule 1136--Wood 
Product Coatings. These rules were submitted by the California Air 
Resource Board to EPA on March 3, 1997 and August 28, 1996, 
respectively.

II. Background

    On March 3, 1978, EPA promulgated a list of ozone nonattainment 
areas under the provisions of the Clean Air Act (CAA), as amended in 
1977 (1977 Act or pre-amended Act), that included the Mojave Desert (or 
San Bernardino County) and the South Coast, 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 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.
    Section 182(a)(2)(A) applies to areas designated as nonattainment 
prior to enactment of the amendments and classified as marginal or 
above 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.1 EPA's SIP-Call used 
that guidance to indicate the necessary corrections for specific 
nonattainment areas. Mojave Desert and South Coast nonattainment areas 
are classified as severe and extreme, respectively;2 
therefore, these areas were subject to the RACT fix-up requirement and 
the May 15, 1991 deadline.
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    \1\ 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).
    \2\ Mojave Desert and the South Coast retained their designation 
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).
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    The State of California submitted many revised RACT rules for 
incorporation into its SIP on March 3, 1997 and August 28, 1996, 
including the rules being acted on in this document. This document 
addresses EPA's direct-final action for MDAQMD, Rule 1114--Wood Product 
Coating Operations and SCAQMD, Rule 1136--Wood Product Coatings. MDAQMD 
adopted Rule 1114 on November 25, 1996. This submitted rule was found 
to be complete on August 12, 1997, pursuant to EPA's completeness 
criteria that are set forth in 40 CFR part 51, Appendix V.3 
SCAQMD adopted Rule 1136 on June 14, 1996. This submitted rule was 
found to be complete on February 28, 1997, pursuant to EPA's 
completeness criteria and by operation of law.
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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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    Both MDAQMD Rule 1114 and SCAQMD Rule 1136 are rules designed to 
reduce volatile organic compound (VOC) emissions at industrial sites 
engaged in preparing and coating wood products such as furniture, 
cabinets, shutters, frames, and art objects. VOCs contribute to the 
production of ground level ozone and smog. These rules were originally 
adopted as part of MDAQMD and SCAQMD effort to achieve the National 
Ambient Air Quality Standard (NAAQS) 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 final action for this rule.

III. EPA Evaluation and 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). 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 1. 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 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). The CTG 
applicable to both of these rules is entitled, ``Guideline Series: 
Control of Volatile Organic Compound Emissions from Wood Furniture 
Manufacturing Operations,'' USEPA, April, 1996. Further interpretations 
of EPA policy are found in the Blue Book, referred to in footnote 1. In 
general, these guidance documents have been set forth to ensure that 
VOC rules are fully enforceable and strengthen or maintain the SIP.
    On April 30, 1996, EPA approved into the SIP a version of Rule 
1114--Wood Product Coating Operations that had

[[Page 44134]]

been adopted by MDAQMD on February 22, 1995. MDAQMD's submitted Rule 
1114--Wood Product Coating Operations includes the following 
significant changes from the current SIP:

--Updated definitions including those concerning exempt compounds;
--Modified the VOC content limits and compliance dates;
--A revised VOC content limit format;
--Provided exemptions for billiard table manufacturing, production of 
replica furniture, touch-up, repair, and stencil coatings, and sources 
using very low VOC coatings; and,
--Revised record keeping requirements to allow monthly record keeping 
by sources using compliant coatings.

    The modified VOC content limits and compliance dates in the 
submitted Rule 1114 do not interfere with reasonable further progress 
or attainment of NAAQS. In this instance, MDAQMD did not assign the 
emission reductions attributed to Rule 1114 to either their 15% VOC 
Reductions Plan, or their 1994 Attainment Plan. Thus, EPA did not make 
the emission reductions attributed to Rule 1114 part of the SIP's 
progress or attainment requirements (see 62 FR 1182, January 8, 1997.) 
Consequently, the emission limit changes will not affect either plan's 
estimate of progress or attainment. Regarding VOC emission increases, 
the relaxed emission limits and exemptions in the submitted rule amount 
to approximately 0.03% of the 1994 VOC emissions inventory for the 
nonattainment area. For these reasons, the changes within submitted 
Rule 1114 are consistent with the requirements of Section 110(l) of the 
CAA.
    EPA has evaluated submitted Rule 1114 and has determined that it is 
consistent with the CAA, EPA regulations, and EPA policy. Therefore, 
MDAQMD, Rule 1114--Wood Product Coating Operations is being approved 
under section 110(k)(3) of the CAA as meeting the requirements of 
section 110(a) and part D. Although the VOC emissions increases due to 
Rule 1114 can be considered a de minimis amount by themselves, MDAQMD 
should address the cumulative effects of such emission increases in 
future attainment plan revisions.
    On October 31, 1995, EPA approved into the SIP a version of Rule 
1136--Wood Product Coatings that had been adopted by SCAQMD on 
September 8, 1995. SCAQMD submitted Rule 1136--Wood Product Coatings 
includes the following significant changes from the current SIP:

--Modified VOC content limits and compliance dates;
--A revised VOC content limit format;
--Moved and modified emissions averaging provisions;
--Revised the record keeping requirements;
--Modified reference ASTM test method for determining dry film 
thickness;
--Aadded a requirement to submit a progress report; and
--Added a requirement for SCAQMD staff to complete a technology audit 
of the rule by July 1, 2003.

    The modified VOC content limits and compliance dates in the 
submitted Rule 1136 do not interfere with reasonable further progress 
or attainment of the NAAQS. Considering progress requirements, enough 
surplus emission reductions exist between 1996 and 2005 in the EPA 
approved ozone attainment plan to allow a delay in emission reductions 
from 1136 while still meeting the CAA's progress requirements (see 62 
FR 1181, January 8, 1997.) Regarding attainment of the NAAQS in 2010, 
the relaxed emission limits in the submitted rule add less than 0.1% to 
the EPA approved 2010 VOC emissions budget. For these reasons, the 
changes within submitted Rule 1136 are consistent with the requirements 
of Section 110(l) of the CAA.
    EPA has evaluated the submitted Rule 1136 and has determined that 
it is consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, SCAQMD Rule 1136--Wood Product Coatings is being approved 
under section 110(k)(3) of the CAA as meeting the requirements of 
section 110(a) and part D. Although the VOC emissions increases due to 
Rule 1136 can be considered a de minimis amount by themselves, SCAQMD 
should account for the cumulative effect of such emission increases in 
future attainment plan revisions.
    Nothing in this action should be construed as permitting, 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 has promulgated a regulation concerning the release of volatile 
hazardous air pollutants (VOHAPs) (see 40 CFR, Part 63, Subpart JJ) 
from existing and new sources engaged in wood furniture manufacturing. 
This National Emission Standard for Hazardous Air Pollutants (NESHAP) 
lists emission limits for wood coating operations that are also major 
sources of toxic air pollutants. Should a source be subject to either 
SIP Rules MDAQMD--1114, or SCAQMD--1136 as well as the NESHAP (40 CFR, 
Part 63, Subpart JJ), and if the emission limits within either SIP Rule 
MDAQMD 1114, or SCAQMD 1136 differ from the NESHAP, the more stringent 
emissions limit will apply to the source.
    EPA is publishing this rule without prior proposal because the 
Agency views this as a noncontroversial amendment and anticipates no 
adverse comments. However, in the proposed rules section of this 
Federal Register publication, EPA is publishing a separate document 
that will serve as the proposal to approve the SIP revision should 
relevant adverse comments be filed. This rule will be effective October 
19, 1998 without further notice unless the Agency receives relevant 
adverse comments by September 17, 1998.
    If the EPA received such comments, then EPA will publish a timely 
withdrawal of the direct final rule informing the public that the rule 
will not take effect. All public comments received will then be 
addressed in a subsequent final rule based on the proposed rule. The 
EPA will not institute a second comment period on this rule. Any 
parties interested in commenting on this rule should do so at this 
time. If no such comments are received, the public is advised that this 
rule will be effective on October 19, 1998 and no further action will 
be taken on the proposed rule.

IV. Administrative Requirements

A. Executive Orders 12866 and 13045

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from E.O. 12866 review.
    The final 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 section 110 and subchapter I, part D of the 
Clean Air Act

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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 
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

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit 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 United States prior 
to publication of the rule in the 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 October 19, 1998. 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).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, 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.

    Date Signed: July 28, 1998.
Nora L. McGee,
Acting Regional Administrator, Region 9.

    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 et seq.

Subpart F--California

    2. Section 52.220 is amended by adding paragraphs (c)(240)(i)(A)(5) 
and (c)(244)(i)(C) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (240) * * *
    (i) * * *
    (A) * * *
    (5) Rule 1136 adopted on September 16, 1983 and amended on June 14, 
1996.
* * * * *
    (c) * * *
    (244) * * *
    (i) * * *
    (C) Mojave Desert Air Quality Management District.
    (1) Rule 1114 adopted on March 2, 1992 and amended on November 25, 
1996.
* * * * *
[FR Doc. 98-21896 Filed 8-17-98; 8:45 am]
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