[Federal Register Volume 64, Number 75 (Tuesday, April 20, 1999)]
[Rules and Regulations]
[Pages 19277-19281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9712]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 164-0112a; FRL-6324-8]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision; Sacramento Metropolitan Air Quality 
Management District (SMAQMD), Mojave Desert Air Quality Management 
District (MDAQMD), and the Ventura County Air Pollution Control 
District (VCAPCD) as Revisions to the California State Implementation 
Plan (SIP)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rules.

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SUMMARY: EPA is taking direct final action to approve revisions to the 
California State Implementation Plan (SIP). The revisions concern rules 
from Sacramento Metropolitan Air Quality Management District (SMAQMD), 
Mojave Desert Air Quality Management District (MDAQMD), and the Ventura 
County Air Pollution Control District (VCAPCD) as revisions to the 
California State Implementation Plan (SIP). SMAQMD's Rule 414 controls 
emissions of oxides of nitrogen from natural gas-fired water heaters; 
MDAQMD's Rule 1157 controls emissions from boilers and process heaters; 
and VCAPCD's Rule 74.16 controls emissions of oxides of nitrogen from 
oilfield drilling operations. This approval action will incorporate 
these rules into the Federally approved SIP. The intended effect of 
approving of these rules is to regulate emissions of oxides of nitrogen 
(NOX) in accordance with the requirements of the Clean Air 
Act, as amended in 1990 (CAA or the Act). Thus, EPA is finalizing the 
approval of these revisions into the California SIP under provisions of 
the CAA regarding EPA actions on SIP submittals, SIPs for national 
primary and secondary ambient air quality standards (NAAQS), and plan 
requirements for nonattainment areas.

DATES: These rules are effective on June 21, 1999 without further 
notice, unless EPA receives adverse comments by May 20, 1999. If EPA 
receives such comments, then it will publish a timely withdrawal in the 
Federal Register informing the public that these rules will not take 
effect.

ADDRESSES: Written comments must be submitted to Andrew Steckel at the 
Region IX office listed below. Copies of the rules and EPA's evaluation 
report of each rule are available for public inspection at EPA's Region 
IX office during normal business hours. Copies of the submitted rules 
are also 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 94105-3901.
Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street, 
SW, Washington, DC 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95812.
Sacramento Metropolitan Air Quality Management District (SMAQMD), 8475 
Jackson Rd., Suite 200, Sacramento, CA 95826-3904.
Mojave Desert Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182.
Ventura County Air Pollution Control District (VCAPCD), 800 South 
Victoria Avenue, Ventura, CA 93009.

FOR FURTHER INFORMATION CONTACT: Ed Addison, Rulemaking Office, AIR-4, 
Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105-3901. Telephone: (415) 744-
1185.


[[Page 19278]]



SUPPLEMENTARY INFORMATION:

I. Applicability

    The rules being approved into the California SIP include: SMAQMD's 
Rule 414, Natural Gas-fired Water Heaters; MDAQMD's Rule 1157, Boilers 
and Process Heaters; and VCAPCD's Rule 74.16, Oilfield Drilling 
Operations. SMAQMD's Rule 414 was submitted by the State of California 
to EPA on March 10, 1998, MDAQMD's Rule 1157 on August 1, 1997 and 
VCAPCD Rule 74.16 on April 5, 1991.

II. Background

    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. The air quality planning requirements for the reduction of 
NOX emissions through reasonably available control 
technology (RACT) are set out in section 182(f) of the Clean Air Act.
    On November 25, 1992, EPA published a proposed rule entitled, 
``State Implementation Plans; Nitrogen Oxides Supplement to the General 
Preamble; Clean Air Act Amendments of 1990 Implementation of Title I; 
Proposed Rule,'' (the NOX Supplement) which describes and 
provides preliminary guidance on the requirements of section 182(f). 
The November 25, 1992, action should be referred to for further 
information on the NOX requirements and is incorporated into 
this document by reference.
    Section 182(f) of the Clean Air Act requires States to apply the 
same requirements to major stationary sources of NOX 
(``major'' as defined in section 302 and sections 182(c), (d), and (e)) 
as are applied to major stationary sources of volatile organic 
compounds (VOCs), in moderate or above ozone nonattainment areas. 
Sacramento Metropolitan Air Quality Management District (SMAQMD), 
Mojave Desert Air Quality Management District (MDAQMD), and the Ventura 
County Air Pollution Control District (VCAPCD) are classified as 
serious or above;1 therefore these areas are subject to the 
RACT requirements of section 182(b)(2) cited below and the November 15, 
1992 deadline.
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    \1\ MDAQMD AND VCAPCD areas 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 55 FR 56694 (November 6, 1991). The Sacramento Metro Area was 
reclassified from serious to severe on June 1, 1995. See 60 FR 20237 
(April 25, 1995).
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    Section 182(b)(2) requires submittal of RACT rules for major 
stationary sources of VOC (and NOX) emissions (not covered 
by a pre-enactment control technologies guidelines (CTG) document or a 
post-enactment CTG document) by November 15, 1992. There were no 
NOX CTGs issued before enactment and EPA has not issued a 
CTG document for any NOX sources since enactment of the CAA. 
The RACT rules covering NOX sources and submitted as SIP 
revisions are expected to require final installation of the actual 
NOX controls as expeditiously as practicable, but no later 
than May 31, 1995.
    This document addresses EPA's direct final action for SMAQMD's Rule 
414, Natural Gas-fired Water Heaters; MDAQMD's Rule 1157, Boilers and 
Process Heaters; and VCAPCD's Rule 74.16, Oilfield Drilling Operations.
    The State of California submitted many revised RACT rules to EPA 
for incorporation into its SIP on March 10, 1998, including SMAQMD's 
Rule 414. MDAQMD's Rule 1157 was submitted on August 1, 1997 and 
VCAPCD's Rule 74.16 on April 5, 1991. Rule 414 was found to be complete 
on May 21, 1998, Rule 1157 on September 30, 1997, and Rule 74.16 on May 
21, 1991; pursuant to EPA's completeness criteria that are set forth in 
40 CFR Part 51, Appendix V 2 and are being finalized 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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    NOX emissions contribute to the production of ground 
level ozone and smog. SMAQMD's Rule 414 controls emissions of oxides of 
nitrogen from natural gas-fired water heaters; MDAQMD's Rule 1157 
controls emissions from boilers and process heaters; and VCAPCD's Rule 
74.16 controls emissions of oxides of nitrogen from oilfield drilling 
operations. These rules were originally adopted as part of Districts' 
efforts to achieve the National Ambient Air Quality Standard (NAAQS) 
for ozone, and in response to the CAA requirements cited above. The 
following is EPA's evaluation and final action for these rules.

III. EPA Evaluation and Proposed Action

    In determining the approvability of a NOX 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 NOX 
Supplement (57 FR 55620) and various other EPA policy guidance 
documents.3 Among those provisions is the requirement that a 
NOX rule must, at a minimum, provide for the implementation 
of RACT for stationary sources of NOX emissions.
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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 Deviation, 
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).
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    For the purposes of assisting State and local agencies in 
developing NOX RACT rules, EPA prepared the NOX 
Supplement to the General Preamble. In the NOX Supplement, 
EPA provides preliminary guidance on how RACT will be determined for 
stationary sources of NOX emissions. While most of the 
guidance issued by EPA on what constitutes RACT for stationary sources 
has been directed towards application for VOC sources, much of the 
guidance is also applicable to RACT for stationary sources of 
NOX (see section 4.5 of the NOX Supplement). In 
addition, pursuant to section 183(c), EPA is issuing alternative 
control technique documents (ACTs), that identify alternative controls 
for all categories of stationary sources of NOX. The ACT 
documents will provide information on control technology for stationary 
sources that emit or have the potential to emit 25 tons per year or 
more of NOX. However, the ACTs will not establish a 
presumptive norm for what is considered RACT for stationary sources of 
NOX. In general, the guidance documents cited above, as well 
as other relevant and applicable guidance documents, have been set 
forth to ensure that submitted NOX RACT rules meet Federal 
RACT requirements and are fully enforceable and strengthen or maintain 
the SIP.
    The California Air Resources Board (CARB) has developed guidance 
documents determining Reasonably Available Control Technology and Best 
Available Retrofit Control Technology. EPA has used CARB's guidance 
documents in evaluating Sacramento Rule MDAQMD 1157, Emissions from 
Boilers and Process Heaters; and VCAPCD's Rule 74.16, Oilfield Drilling 
Operations for consistency with the CAA's RACT requirements.
    There is currently no version of SMAQMD's Rule 414, Natural Gas-
fired Water Heaters, in the SIP. SMAQMD's Rule 414, Natural Gas-fired 
Water Heaters, establishes nitrogen oxide emissions for natural gas-
fired water heaters with rated heat input of less than 75,000 Btu/hr.

[[Page 19279]]

    There is currently no version of MDAQMD's Rule 1157, Boilers and 
Process Heaters, in the SIP. MDAQMD's Rule 1157, Boilers and Process 
Heaters, establishes RACT emission requirements for oxides of nitrogen 
(NOX) and carbon monoxide (CO) emissions for all new and 
existing institutional and industrial boilers, steam generators and 
process heaters with rated heat inputs of greater than or equal to five 
million Btu per hour (MMBtu/hr), located within the Federal Ozone Non-
attainment Area of San Bernardino County. The Rule also establishes 
Best Available Retrofit Control Technologies (BARCT) emission 
requirements for any existing unit currently permitted to emit more 
than five (5) tons per day, or more than 250 tons per year of oxides of 
nitrogen (NOX).
    There is currently no version of VCAPCD's Rule 74.16, Oilfield 
Drilling Operations, in the SIP. VCAPCD's Rule 74.16, Oilfield Drilling 
Operations, establishes nitrogen oxide emissions limits for stationary 
internal combustion engines of 50 HP and larger oilfield drilling 
operations. The rule will require drilling rigs to be electrically 
powered unless the installation of utility electricity is not cost 
effective based upon Best Available Control Technology (BACT) 
Guidelines.
    The submitted rules include the following provisions:
     General provisions including applicability, exemptions, 
and definitions.
     Exhaust emissions standards for oxides of nitrogen 
(NOX).
     Compliance and monitoring requirements including 
compliance schedule, reporting requirements, monitoring and record 
keeping, and test methods.
    Rules submitted to EPA for approval as revisions to the SIP must be 
fully enforceable, must maintain or strengthen the SIP and must conform 
with EPA policy in order to be approved by EPA. When reviewing rules 
for SIP approvability, EPA evaluates enforceability elements such as 
test methods, record keeping, and compliance testing in addition to 
RACT guidance regarding emission limits. SMAQMD's Rule 414, MDAQMD's 
Rule 1157 and VCAPCD's Rule 74.16 strengthen the SIP through the 
addition of enforceable measures such as record keeping, test methods, 
definitions, and more stringent and achievable emissions limits. 
Incorporation of the amended Rules, SMAQMD's Rule 414, MDAQMD's Rule 
1157 and VCAPCD's Rule 74.16, into the SIP would decrease the 
NOX emissions allowed by the SIP.
    In evaluating the rules, EPA must also determine whether the 
section 182(b) requirement for RACT implementation by May 31, 1995 is 
met. Under certain circumstances, the determination of what constitutes 
RACT can include consideration of advanced control technologies such as 
CARB BARCT requirements. The submitted rules, SMAQMD Rule 414, MDAQMD 
Rule 1157 and VCAPCD Rule 74.16, conform with the CARB Determination of 
Reasonably Available Control Technology (RACT) and Best Available 
Retrofit Control Technology (BARCT) for Control of Oxides of Nitrogen 
and they conform with Section 182(b).
    A detailed discussion of the sources controlled, the controls 
required, and justification for why these controls represent RACT can 
be found in the Technical Support Documents (TSDs) for SMAQMD's Rule 
414, MDAQMD's Rule 1157 and VCAPCD's Rule 74.16, dated November 6, 1998 
which are available from the U.S. EPA Region IX office.
    EPA has evaluated the submitted rules and has determined them 
consistent with the CAA, EPA regulations and EPA policy. Therefore, 
SMAQMD's Rule 414, Emissions of Oxides of Nitrogen from Natural Gas-
fired Water Heaters; MDAQMD's Rule 1157, Boilers and Process Heaters; 
and VCAPCD's Rule 74.16, Oilfield Drilling Operations are being 
approved under section 110(k)(3) of the CAA as meeting the requirements 
of section 110(a), section 182(b)(2), section 182(f) and the 
NOX Supplement to the General Preamble.
    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 
adverse comments be filed. This rule will be effective June 21, 1999 
without further notice unless the Agency receives adverse comments by 
May 20, 1999.
    If the EPA receives such comments, then EPA will publish a timely 
withdrawal in the Federal Register 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 June 21, 1999 and no further action will be 
taken on the proposed rule.

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, Regulatory 
Planning and Review.

B. Executive Order 12875

    Under Executive Order 12875, Enhancing the Intergovernmental 
Partnership, EPA may not issue a regulation that is not required by 
statute and that creates a mandate upon a State, local or tribal 
government, unless the Federal government provides the funds necessary 
to pay the direct compliance costs incurred by those governments, or 
EPA consults with those governments. If EPA complies by consulting, 
Executive Order 12875 requires EPA to provide to the Office of 
Management and Budget a description of the extent of EPA's prior 
consultation with representatives of affected State, local and tribal 
governments, the nature of their concerns, copies of any written 
communications from the governments, and a statement supporting the 
need to issue the regulation. In addition, Executive Order 12875 
requires EPA to develop an effective process permitting elected 
officials and other representatives of State, local and tribal 
governments ``to provide meaningful and timely input in the development 
of regulatory proposals containing significant unfunded mandates.'' 
Today's rules do not create a mandate on State, local or tribal 
governments. The rules do not impose any enforceable duties on these 
entities. Accordingly, the requirements of section 1(a) of E.O. 12875 
do not apply to these rules.

C. Executive Order 13045

    Protection of Children from Environmental Health Risks and Safety 
Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) is 
determined to be ``economically significant'' as defined under E.O. 
12866, and (2) concerns an environmental health or safety risk that EPA 
has reason to believe may have a disproportionate effect on children. 
If the regulatory action meets both criteria, the Agency must evaluate 
the environmental health or safety effects of the planned rules on 
children, and explain why the planned regulation is preferable to other 
potentially effective and reasonably feasible alternatives considered 
by the Agency. These rules do not subject to E.O. 13045 because

[[Page 19280]]

they do not involve decisions intended to mitigate environmental health 
or safety risks.

D. Executive Order 13084

    Under Executive Order 13084, Consultation and Coordination with 
Indian Tribal Governments, EPA may not issue a regulation that is not 
required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, Executive Order 13084 
requires EPA to provide to the Office of Management and Budget, in a 
separately identified section of the preamble to the rule, a 
description of the extent of EPA's prior consultation with 
representatives of affected tribal governments, a summary of the nature 
of their concerns, and a statement supporting the need to issue the 
regulation. In addition, Executive Order 13084 requires EPA to develop 
an effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.'' Today's 
rules do not significantly or uniquely affect the communities of Indian 
tribal governments. Accordingly, the requirements of section 3(b) of 
E.O. 13084 do not apply to these rules.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to conduct a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements unless the agency certifies 
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 small governmental 
jurisdictions. These final rules will not have a significant impact on 
a substantial number of small entities because 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 
create any new requirements, I certify that this action will not have a 
significant economic impact on a substantial number of small entities. 
Moreover, due to the nature of the Federal-State relationship under the 
Clean Air Act, preparation of 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).

F. 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 
annual 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 annual 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 
requirements. Accordingly, no additional costs to State, local, or 
tribal governments, or to the private sector, result from this action.

G. Submission to Congress and the Comptroller General

    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 these rules 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 rules in the Federal Register. These rules are 
not ``major'' rules as defined by 5 U.S.C. 804(2).

H. 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 21, 1999. Filing a 
petition for reconsideration by the Administrator of these final rules 
does not affect the finality of these rules 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 rules 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, Oxides of 
nitrogen Ozone, Reporting and record keeping 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.

    Dated: April 1, 1999.
Felicia Marcus,
Regional Administrator, Region IX.
    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)(183)(i)(B)(4), (248)(i)(D), and (254)(i)(I), to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (183) * * *
    (i) * * *
    (B) * * *
    (4) Rule 74.16, adopted January 8, 1991.
* * * * *
    (248) * * *
    (i) * * *
    (D) Mojave Desert Air Quality Management District.
    (1) Rule 1157, amended May 19, 1997.
* * * * *
    (254) * * *
    (i) * * *
    (I) Sacramento Metropolitan Air Quality Management District.

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    (1) Rule 414, adopted August 1, 1996.
* * * * *
[FR Doc. 99-9712 Filed 4-19-99; 8:45 am]
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