[Federal Register Volume 64, Number 139 (Wednesday, July 21, 1999)]
[Rules and Regulations]
[Pages 39037-39040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18472]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 226-0159a FRL-6376-3]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to approve revisions to the 
California State Implementation Plan. The revisions concern rules from 
the following: South Coast Air Quality Management District (SCAQMD) and 
Yolo-Solano Air Quality Management District (YSAQMD). 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 organic liquid loading, 
pharmaceutical and cosmetics manufacturing operations, and polyester 
resin 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 standards and plan requirements for nonattainment 
areas.

DATES: This rule is effective on September 20, 1999 without further 
notice, unless EPA receives adverse comments by August 20, 1999. If EPA 
receives such comment, it will publish a timely withdrawal Federal 
Register informing the public that this rule will not take effect.

ADDRESSES: Written 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 94105-3901.
Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street, 
S.W., Washington, D.C. 20460.
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95812.
South Coast Air Quality Management District, 21865 East Copley Drive, 
Diamond Bar, CA 91765.
Yolo-Solano Air Pollution Control District, 1947 Galileo Court, Suite 
103, Davis, CA 95616.

FOR FURTHER INFORMATION CONTACT: Al Petersen, Rulemaking Office, AIR-4, 
Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105-3901, Telephone: (415) 744-
1135.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rules being approved into the California SIP include: SCAQMD 
Rule 462, Organic Liquid Loading, SCAQMD rule 1103, Pharmaceuticals and 
Cosmetics Manufacturing Operations, and YSAQMD rule 2.30, Polyester 
Resin Operations. These rules were submitted by the California Air 
Resources Board to EPA on June 3, 1999, May 13, 1999, and June 3, 1999, 
respectively.

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 South Coast Air Basin 
Area (SCABA) and Yolo County and part of Solano County (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

[[Page 39038]]

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. SCABA, which 
includes the SCAQMD, is classified as extreme nonattainment for ozone. 
Yolo County and part of Solano County are classified as severe-15 
nonattainment for ozone.2 Therefore, these areas were 
subject to the RACT fix-up requirement and the May 15, 1991 deadline. u
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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\ SCAQMD and YSAQMD, respectively, 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, including the rules being acted on in this 
document. This document addresses EPA's direct-final action for SCAQMD 
rule 462, Organic Liquid Loading, adopted on May 14, 1999, and found to 
be complete on June 24, 1999 pursuant to EPA's completeness criteria 
that are set forth in 40 CFR part 51, Appendix V 3 and is 
being finalized for approval into the SIP; SCAQMD rule 1103, 
Pharmaceuticals and Cosmetics Manufacturing Operations, adopted on 
March 12, 1999, and found to be complete on June 10, 1999; and YSAQMD 
Rule 2.30, Polyester Resin Operations, adopted on April 14, 1999, and 
found to be complete on June 24, 1999.
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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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    SCAQMD rule 462 is intended to control emissions of VOCs of greater 
than 1.5 psia (77.5 mm Hg) from loading into tank trucks, trailers, or 
railroad tank cars. SCAQMD Rule 1103 is intended to control VOC 
emissions from the manufacture of pharmaceuticals, cosmetics, 
antibiotics, vitamins, botanic and biological products, tablets, and 
capsules. EPA granted limited approval and limited disapproval to 
SCAQMD rules 462 and 1103 on November 13, 1997, 62 FR 60784. Today's 
direct final rule approves revisions to these rules, that have been 
amended to address the deficiencies identified in the 1997 
disapprovals. Any sanctions now in effect as a result of the 1997 
action will be terminated on the effective date of this direct final 
rule.
    YSAQMD rule 2.30 is intended to control VOC emissions from 
fabrication operations using polyester resin. EPA proposed limited 
approval and limited disapproval of a version of YSAQMD rule 2.30 on 
December 8, 1994, 49 FR 63286. This action was never finalized. Today's 
direct final rule approves the rule after being corrected for the 
deficiencies that were identified in the proposed limited disapproval.
    VOCs contribute to the production of ground level ozone and smog. 
These rules were originally adopted as part of California's 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 
these rules.

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 that are applicable to certain VOC rules. 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 according 
to section 182(a)(2)(A). The CTG applicable to SCAQMD rule 1103 is 
entitled, ``Control of Volatile Organic Emissions from Manufacture of 
Synthesized Pharmaceutical Products'', EPA 450/2-78-029. CTGs 
applicable to SCAQMD rule 462 are entitled, ``Control of Hydrocarbons 
from Tank Truck Gasoline Loading Terminals'', EPA-450/2-77-026; 
``Control of Volatile Organic Compound Leaks from Gasoline Tank Trucks 
and Vapor Collection Systems'', EPA-450/2-78-051; and ``Control of 
Volatile Organic Emissions from Bulk Gasoline Plants'', EPA 450/2-77-
035. There are no CTGs applicable to YSAQMD. 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 November 13, 1997 (62 FR 60784), EPA granted limited approval 
and limited disapproval a version of SCAQMD rule 462, Organic Liquid 
Loading, that had been adopted by SCAQMD on June 9, 1995. Submitted 
SCAQMD rule 462 includes the following significant changes from the 
current SIP rule:
     The definition of ``facility vapor leak'' and other 
definitions were revised for clarity.
     Methods were provided for determining vapor leak and 
compliance to emission limits.
     Obsolete compliance dates were eliminated.
    On November 13, 1997 (62 FR 60784), EPA granted limited approval 
and limited disapproval a version of SCAQMD rule 1103, Pharmaceuticals 
and Cosmetics Manufacturing Operations, that had been adopted by SCAQMD 
on December 7, 1990. Submitted SCAQMD rule 1103 includes the following 
significant changes from the current SIP rule:
     Methods were described for determination of control device 
efficiency and of surface condenser efficiency, instead of director's 
discretion.
     Operating requirements were specified and vacuum vents 
were required over 1.5 psia, instead of director's discretion.
     The calculation method for composite total pressure and 
the test method for weight of VOC were added.
     ``Leak'' is defined relative to the allowed time from 
detection to repair.
    On December 8, 1994 (59 FR 63286), EPA proposed limited approval 
and limited disapproval a version of YSAQMD Rule 2.30, Polyester Resin 
Operations, that had been adopted by YSAQMD on August 25, 1993. This 
action was never finalized. Submitted YSAQMD Rule 2.30 includes the 
following significant change from the proposed rule:
     The test method for monomer content is specified as the 
SCAQMD Test Method 312, Percent Monomer in Polyester Resins, for 
restricting the monomer content to no more than 35 percent by weight.

[[Page 39039]]

    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, SCAQMD rule 462, Organic Liquid Loading; SCAQMD rule 1103, 
Pharmaceutical and Cosmetics Manufacturing Operations; and YSAQMD rule 
2.30, Polyester Resin Operations, are being approved under section 
110(k)(3) of the CAA as meeting the requirements of section 110(a) and 
part D.
    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 September 20, 
1999 without further notice unless the Agency receives adverse comments 
by August 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 
did 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. 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 is 
effective on September 20, 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 rule does not create a mandate on State, local or tribal 
governments. The rule does not impose any enforceable duties on these 
entities. Accordingly, the requirements of section 1(a) of E.O. 12875 
do not apply to this rule.

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 rule on 
children, and explain why the planned regulation is preferable to other 
potentially effective and reasonably feasible alternatives considered 
by the Agency. This rule is not subject to E.O. 13045 because it does 
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 rule 
does 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 this rule.

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. This final rule 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

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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 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).

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 September 20, 1999. 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, 
Particulate matter, Reporting and recordkeeping requirements, and 
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: June 29, 1999.
Laura Yoshii,
Acting 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) (263) and 
(264) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (263) New and amended regulations for the following APCDs were 
submitted on May 13, 1999, by the Governor's designee.
    (i) Incorporation by reference.
    (A) South Coast Air Quality Management District.
    (1) Rule 1103, adopted on March 12, 1999.
* * * * *
    (264) New and amended regulations for the following APCDs were 
submitted on June 3, 1999, by the Governor's designee.
    (i) Incorporation by reference.
    (A) South Coast Air Quality Management District.
    (1) Rule 462, adopted on May 14, 1999.
    (B) Yolo-Solano Air Quality Management District.
    (1) Rule 2.30, adopted on April 14, 1999.
* * * * *
[FR Doc. 99-18472 Filed 7-20-99; 8:45 am]
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