[Federal Register Volume 64, Number 168 (Tuesday, August 31, 1999)]
[Rules and Regulations]
[Pages 47392-47395]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22183]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 224-0166a; FRL-6425-5]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, South Coast Air Quality Management 
District, Ventura County Air Pollution Control 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. The revisions concern rules from 
the following special districts: South Coast Air Quality Management 
District (SCAQMD); and, Ventura County Air Pollution Control District 
(VCAPCD). 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) according to 
the requirements of the Clean Air Act, as amended in 1990 (CAA or the 
Act). The revised rules control VOC emissions from pleasure craft 
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 standards and plan requirements for nonattainment 
areas.

DATES: This rule is effective on November 1, 1999 without further 
notice, unless EPA receives adverse comments by September 30, 1999. If 
EPA receives such comment, it will publish a timely withdrawal in the 
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:


[[Page 47393]]


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, DC 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 91765-4182; and,
Ventura County Air Pollution Control District, 669 County Square Drive, 
Ventura, CA 93003

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 are SCAQMD Rule 
1106.1--Pleasure Craft Coating Operations and VCAPCD Rule 74.24.1--
Pleasure Craft Coating and Commercial Boatyard Operations. These rules 
were submitted by the California Air Resources Board (CARB) to EPA on 
June 3, 1999 and February 16, 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 l977 
(1977 Act or pre-amended Act), that included the South Coast air basin 
and Ventura County. See 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. Public Law 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. The South Coast air basin is classified as extreme 
and Ventura County is classified as severe.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\ Both the South Coast air basin and Ventura County 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 both June 3, 1999 and February 16, 1999, 
including the rules being acted on in this document. This document 
addresses EPA's direct-final action for SCAQMD Rule 1106.1--Pleasure 
Craft Coating Operations and VCAPCD Rule 74.24.1--Pleasure Craft 
Coating and Commercial Boatyard Operations. SCAQMD adopted Rule 1106.1 
on February 12, 1999. VCAPCD adopted Rule 74.24.1 on November 19, 1998. 
EPA found both of these submitted rules to be complete on June 24, 1999 
and April 23, 1999, respectively; pursuant to EPA's completeness 
criteria that are set forth in 40 CFR part 51, appendix V.3 
SCAQMD Rule 1106.1 and VCAPCD Rule 74.24.1 are being finalized for 
approval into the SIP with today's action.
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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 1106.1 and VCAPCD Rule 74.24.1 are designed to reduce 
volatile organic compound (VOC) emissions at industrial sites engaged 
in manufacturing or repairing vessels which are operated, leased, 
rented, or chartered to a person or business for recreational purposes. 
VOCs contribute to the production of ground level ozone and smog. These 
rules were adopted as part of SCAQMD and VCAPCD efforts 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 one. 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). Further 
interpretations of EPA policy are found in the Blue Book, referred to 
in footnote one. In general, these guidance documents have been set 
forth to ensure that VOC rules are fully enforceable and strengthen or 
maintain the SIP.
    However, there is no CTG applicable to the pleasure craft coating 
operations source category. Along with SCAQMD Rule 1106.1 and VCAPCD 
74.24.1, one other pleasure craft coating rule, San Diego County Air 
Pollution Control District Rule 67.18, has been adopted within 
California. Together, these three rules provide a basis for determining 
what controls are reasonably available within California. This 
rulemaking will not establish EPA's national definition of RACT for the 
pleasure craft coating industry across the United States.
    On April 13, 1995, EPA approved into the SIP a version of SCAQMD 
Rule 1106.1--Pleasure Craft Coating Operations that had been adopted on 
May 1, 1992. (See 60 FR 18750.) Revisions to this Rule 1106.1 were 
adopted subsequently on March 8, 1996 and June 13, 1997, and submitted 
to EPA. While EPA can only act on this most recently submitted version, 
EPA reviewed relevant materials associated

[[Page 47394]]

with these prior and superseded versions of the rule. SCAQMD's 
submitted Rule 1106.1 includes the following significant changes from 
the current SIP:

--Increase temporarily the VOC emission limits for Extreme High Gloss 
Topcoats from 490 gr/l to 650 gr/l and Finish Primers from 420 gr/l to 
600 gr/l returning these emission limits to the previously lower limits 
on January 1, 2001;
--Increase the VOC emissions limit for Antifoulants from 150 gr/l to 
400 gr/l and lowering the emissions limit to 300 gr/l on January 1, 
2001;
--Remove the requirement that sprayed coatings be applied using high 
volume low pressure (HVLP) or equivalent methods; and,
--Provide related editorial amendments such as removing irrelevant past 
compliance dates and emission limits and renumbering test method 
designations.

    The modified VOC content limits and compliance dates in the 
submitted Rule 1106.1 neither interfere with reasonable further 
progress, nor attainment of the NAAQS. Considering progress 
requirements, enough surplus emission reductions exist between 1999 and 
2005 in the EPA approved ozone attainment plan to allow a delay in 
emission reductions from Rule 1106.1 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 0.0063% (40.5 pounds per day) to the EPA 
approved 2010 VOC emissions budget of 323 tons per day. For these 
reasons, the changes within submitted Rule 1106.1 are consistent with 
the requirements of section 110(l) of the CAA.
    EPA has evaluated submitted Rule 1106.1 and determined that it is 
consistent with the CAA, EPA regulations, and EPA policy. Therefore, 
SCAQMD Rule 1106.1--Pleasure Craft 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 1106.1 can be considered a de minimus amount by themselves, SCAQMD 
should account for the cumulative effect of such emission increases in 
future attainment plan revisions.
    There is no version of VCAPCD Rule 74.24.1--Pleasure Craft Coating 
and Commercial Boatyard Operations in the SIP. The submitted rule 
includes the following general provisions:

--Applicability;
--Requirements for ROC (reactive organic compounds) content of 
coatings, surface preparation, and storage of ROC containing materials;
--Exemptions from the rule;
--Record keeping to demonstrate compliance with the rule;
--Test methods for determining compliance with the rule;
--Violations; and
--Definitions of terms used within the rule

    EPA has evaluated the submitted rule and has determined that it is 
consistent with the CAA, EPA regulations, and EPA policy. Therefore, 
VCAPCD Rule 74.24.1--Pleasure Craft Coating and Boatyard Operations is 
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 rulemaking action 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 November 
1, 1999 without further notice unless the Agency receives adverse 
comments by September 30, 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 November 1, 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 is 
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

[[Page 47395]]

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 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 November 1, 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, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Dated: August 6, 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)(262)(i)(B)(2) 
and (c)(264)(i)(A)(2) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (262) * * *
    (i) * * *
    (B) * * *
    (2) Rule 74.24.1, adopted on November 10, 1998.
* * * * *
    (264) * * *
    (i) * * *
    (A) * * *
    (2) Rule 1106.1, adopted on May 1, 1992, and amended on February 
12, 1999.
* * * * *
[FR Doc. 99-22183 Filed 8-30-99; 8:45 am]
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