[Federal Register Volume 64, Number 227 (Friday, November 26, 1999)]
[Rules and Regulations]
[Pages 66393-66396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30609]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 126-0190a; FRL-6477-7]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, Sacramento Metropolitan Air Quality 
Management District, Santa Barbara County Air Pollution Control 
District, Ventura County Air Pollution Control District, and Yolo-
Solano County 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. The revisions concern rules from 
the following districts: Sacramento Metropolitan Air Quality Management 
District (SMAQMD); Santa Barbara County Air Pollution Control District 
(SBCAPCD); Ventura County Air Pollution Control District (VCAPCD); 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 the storage and transfer 
of gasoline, loading of organic liquids, and fugitive hydrocarbons. 
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 January 25, 2000 without further 
notice, unless EPA receives adverse comments by December 27, 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.
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.
Sacramento Metropolitan Air Quality Management District, 777 12th 
Street 3rd Floor, Sacramento, CA 95814-1908.
Santa Barbara County Air Pollution Control District, 26 Castilian 
Drive, B-23, Goleta, CA 93301.
Ventura County Air Pollution Control District, 669 County Square Drive, 
Ventura, CA 93003.
Yolo-Solano Air Quality Management District, 1947 Galileo Ct., Suite 
103, Davis, CA 95616.

FOR FURTHER INFORMATION CONTACT: Christine Vineyard, Rulemaking Office, 
AIR-4, Air Division, U.S. Environmental Protection Agency, Region IX, 
75 Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-
1197.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rules being approved into the California SIP and submitted by 
the California Air Resources Board include:

[[Page 66394]]



------------------------------------------------------------------------
         District                 Rule# and name         Submittal date
------------------------------------------------------------------------
SMAQMD....................  447  Organic Liquid                 06/23/98
                             Loading.
SBCAPCD...................  316  Storage & Transfer             03/10/98
                             of Gasoline.
VCAPCD....................  70  Storage & Transfer of           08/01/97
                             Gasoline.
YSAQMD....................  2.23  Fugitive                      11/30/94
                             Hydrocarbon.
------------------------------------------------------------------------

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 Sacramento 
Metropolitan Area, Santa Barbara County Area, Ventura County Area, and 
Yolo-Solano County Area. 43 FR 8964, 40 CFR 81.305. On May 26, 1988, 
EPA notified the Governor of California, pursuant to section 
110(a)(2)(H) of the 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 Sacramento Metro Area, Ventura County Area, 
and Yolo County and part of Solano County Area are designated as 
severe. The Santa Barbara-Santa Maria Lompoc Area is classified as 
serious 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 
document'' (Blue Book) (notice of availability was published in the 
Federal Register on May 25, 1988); and the existing control 
technique guidelines (CTGs).
    \2\ The Sacramento Metro Area, Ventura County Area, Yolo County 
and part of Solano County Area, and Santa Barbara-Santa Maria Lompoc 
Area have 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 November 30, 1994, August 8, 1997, March 
10, 1998, and June 23, 1998, including the rules being acted on in this 
document. This document addresses EPA's direct-final action for SMAQMD 
Rule 447, Organic Liquid Loading, adopted on April 2, 1998; SBCAPCD 
Rule 316, Storage & Transfer of Gasoline, adopted on April 17, 1997; 
VCAPCD Rule 70, Storage & Transfer of Gasoline, adopted on April 15, 
1997; and YSAQMD Rule 2.23, Fugitive Hydrocarbon, adopted on March 23, 
1994. These submitted rules were found to be complete on August 25, 
1998, May 21, 1998, September 30, 1995, and January 30, 1995, 
respectively, 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.
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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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    SMAQMD Rule 447 controls VOC emissions from the loading of organic 
liquids, SBCAPCD Rule 316 and VCAPCD Rule 70 control VOC emissions from 
the storage and transfer of gasoline, and YSAQMD Rule 2.23 controls 
fugitive emissions of VOCs. VOCs contribute to the production of ground 
level ozone and smog. These rules were originally adopted as part of 
SMAQMD, SBCAPCD, VCAPCD, and YSAQMD'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. 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 CTGs 
applicable to these rules are entitled: Control of Hydrocarbons from 
Tank Truck Gasoline Loading Terminals, (EPA-450/2-77-026); Control of 
Volatile Organic Emissions from Bulk Gasoline Plants, (EPA-450/2-77-
035); Control of Volatile Organic Compound Leaks from Gasoline Tank 
Trucks and Vapor Collection Systems, (EPA-450/2-78-051); and Control of 
Volatile Organic Compound Leaks from Synthetic Organic Chemical and 
Polymer Manufacturing Equipment, (EPA-450/3-83-006). 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.
    The changes to SMAQMD Rule 447, Organic Liquid Loading, are 
administrative. Rule 447 was amended to add definitions, reference new 
ARB test methods, and to clarify that a CARB-certified vapor recovery 
system is only required for loading of gasoline since there is no 
certified vapor recovery system for organic liquids other than 
gasoline. The change to SBCAPCD Rule 316, Storage and Transfer of 
Gasoline, is administrative. Rule 316 was revised to update references 
to District Regulations II and VIII for consistency with the revised 
Regulations.

[[Page 66395]]

    The amendments to VCAPCD Rule 70, Storage and Transfer of Gasoline, 
were not required by Ventura County's Air Quality Attainment Plan. The 
rule changes are intended to improve aspects of Rule 70 related to 
enforceability, rule clarity, consistency with State requirements for 
gasoline storage and transfer, and the streamlining and practicality of 
testing requirements. A detailed description of rule changes can be 
found in the Technical Support Document for this rule dated September 
20, 1999.
    YSAQMD Rule 2.23, Fugitive Hydrocarbons, is a new rule. The 
submitted rule includes the following provisions:
     Definitions for rule clarity.
     Rule standards for inspection frequency, process and 
operation requirements, and a repair schedule.
     Monitoring and recordkeeping requirements to determine 
compliance.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, SMAQMD Rule 447, Organic Liquid Loading; SBCAPCD Rule 316, 
Storage & Transfer of Gasoline; VCAPCD Rule 70, Storage & Transfer of 
Gasoline; and YSAQMD Rule 2.23, Fugitive Hydrocarbon, 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 document will be effective January 25, 
2000 without further notice unless the Agency receives adverse comments 
by December 27, 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. 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 January 25, 2000 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, entitled 
Regulatory Planning and Review.

B. Executive Order 13132

    Federalism (64 FR 43255, August 10, 1999) revokes and replaces 
Executive Orders 12612, Federalism and 12875, Enhancing the 
Intergovernmental Partnership. Executive Order 13132 requires EPA to 
develop an accountable process to ensure meaningful and timely input by 
State and local officials in the development of regulatory policies 
that have federalism implications. Policies that have federalism 
implications is defined in the Executive Order to include regulations 
that have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
Under Executive Order 13132, EPA may not issue a regulation that has 
federalism implications, that imposes substantial direct compliance 
costs, and that is not required by statute, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by State and local governments, or EPA consults with 
State and local officials early in the process of developing the 
proposed regulation. EPA also may not issue a regulation that has 
federalism implications and that preempts State law unless the Agency 
consults with State and local officials early in the process of 
developing the proposed regulation.
    This final rule will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132. 
Thus, the requirements of section 6 of the Executive Order 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 E.O. 13084, Consultation and Coordination with Indian Tribal 
Governments, EPA may not issue a regulation that is not required by 
statute, that significantly affects 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. If the mandate is unfunded, EPA 
must 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, E.O. 13084 requires EPA to develop an effective 
process permitting elected 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

[[Page 66396]]

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. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This rule is not a ``major'' rule as defined by 5 U.S.C. 
804(2).

H. National Technology Transfer and Advancement Act

    Section 12 of the National Technology Transfer and Advancement Act 
(NTTAA) of 1995 requires Federal agencies to evaluate existing 
technical standards when developing a new regulation. To comply with 
NTTAA, EPA must consider and use ``voluntary consensus standards'' 
(VCS) if available and applicable when developing programs and policies 
unless doing so would be inconsistent with applicable law or otherwise 
impractical.
    The EPA believes that VCS are inapplicable to this action. Today's 
action does not require the public to perform activities conducive to 
the use of VCS.

I. 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 January 25, 2000. 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: November 5, 1999.
Laura Yoshii,
Deputy 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)(207)(i)(C)(8), (248)(i)(E), (254)(C)(5) and (256)(i)(G) to read as 
follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (207) * * *
    (i) * * *
    (C) * * *
    (8) Rule 2.23 adopted on March 23, 1994.
* * * * *
    (248) * * *
    (i) * * *
    (E) Ventura County Air Pollution Control District.
    (1) Rule 70 revised on May 13, 1997.
* * * * *
    (254) * * *
    (C) * * *
    (5) Rule 316 revised on April 17, 1997.
* * * * *
    (256) * * *
    (i) * * *
    (G) Sacramento Metropolitan Air Quality Management District.
    (1) Rule 447 amended on April 2, 1998.
* * * * *
[FR Doc. 99-30609 Filed 11-24-99; 8:45 am]
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