[Federal Register Volume 65, Number 9 (Thursday, January 13, 2000)]
[Rules and Regulations]
[Pages 2052-2055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-623]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 031-0202; FRL-6508-5]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, South Coast Air Quality Management 
District, El Dorado County Air Pollution Control District, Yolo-Solano 
Air Quality Management District, and Ventura County Air Pollution 
Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is finalizing limited approvals and limited disapprovals 
of revisions to the California State Implementation Plan (SIP) proposed 
in the Federal Register on February 28, 1997, August 18, 1998 and 
September 14, 1998. This final action will incorporate these rules into 
the federally approved SIP. The intended effect of finalizing this 
action 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). The revised rules control NOX 
emissions from boilers and process heaters in petroleum refineries, 
stationary internal combustion engines, and Boilers, Steam Generators, 
and Process Heaters. Thus, EPA is finalizing a simultaneous limited 
approval and limited disapproval under CAA provisions regarding EPA 
action on SIP submittals and general rulemaking authority because these 
revisions, while strengthening the SIP, also do not fully meet the CAA 
provisions regarding plan submissions and requirements for 
nonattainment areas. As a result of this limited disapproval EPA will 
be required to impose highway funding or emission offset sanctions 
under the CAA unless the State submits and EPA approves corrections to 
the identified deficiencies within 18 months of the effective date of 
this disapproval. Moreover, EPA will be required to promulgate a 
Federal implementation plan (FIP) unless the deficiencies are corrected 
within 24 months of the effective date of this disapproval.

EFFECTIVE DATE: This action is effective on February 14, 2000.

ADDRESSES: 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 95814.
South Coast Air Quality Management District 21865 E. Copley Drive, 
Diamond Bar, CA 91765-4182.
El Dorado County Air Pollution Control District, 2850 Fairlane 
Court, Building C, Placerville, CA 95667.
Yolo-Solano Air Quality Management District, 1947 Galileo 
Court,Suite 103, Davis, CA 95616.
Ventura County Air Pollution Control District, 669 County Square 
Drive, Ventura, CA 93003.

FOR FURTHER INFORMATION CONTACT: For SCAQMD 1109, Mae Wang, For other 
rules, Thomas C. Canaday, Rulemaking Office, AIR-4, Air Division, US 
Environmental Protection Agency, Region IX, 75 Hawthorne Street, San 
Francisco, CA 94105, Telephone: (415) 744-1200 or (415) 744-1202.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rules being approved into the California SIP include: South 
Coast Air Quality Management District (SCAQMD) Rule 1109, Emissions of 
Oxides of Nitrogen from Process Heaters and Boilers in Petroleum 
Refineries, El Dorado County Air Pollution Control District (EDCAPCD) 
Rule 233, Stationary Internal Combustion Engines, Yolo-Solano Air 
Quality Management District (YSAQMD) Rule 2.32, Stationary Internal 
Combustion Engines, and Ventura County Air Pollution Control District 
(VCAPCD) Rule 74.15.1, Boilers, Steam Generators, and Process Heaters. 
SCAQMD Rule 1109 was submitted by the California Air Resources Board 
(CARB) to EPA on March 26, 1990, EDCAPCD Rule 233 on October 20, 1994, 
YSAQMD Rule 2.32 on September 28, 1994, and VCAPCD Rule 74.15.1 on 
October 13, 1995.

II. Background

    EPA proposed granting limited approval and limited disapproval of 
the following rules into the California SIP: SCAQMD Rule 1109, 
Emissions of Oxides of Nitrogen from Process Heaters and Boilers in 
Petroleum Refineries, on February 28, 1997 in 62 FR 9138; EDCAPCD Rule 
233, Stationary Internal Combustion Engines and YSAQMD Rule 2.32, 
Stationary Internal Combustion Engines, on August 18, 1998 in 63 FR 
44211; VCAPCD Rule 74.15.1, Boilers, Steam Generators, and Process 
Heaters, on September 14, 1998 in 63 FR 49056. Rule 1109 was adopted by 
SCAQMD on August 5, 1988, EDCAPCD adopted Rule 233 on October 18, 1994, 
YSAQMD adopted Rule 2.32 on August 10, 1994 and VCAPCD adopted Rule 
74.15.1 on June 13, 1995. Rule 1109 was submitted by the CARB to EPA on 
March 26, 1990, EDCAPCD Rule 233 on October 20, 1994, YSAQMD Rule 2.32 
on September 28, 1994, and VCAPCD Rule 74.15.1 on October 13, 1995. 
These rules were submitted in response to EPA's 1988 SIP Call and the 
CAA section 182(a)(2)(A) requirement that nonattainment areas fix their 
reasonably available control technology (RACT) rules for ozone in 
accordance with EPA guidance that interpreted the requirements of the 
pre-amendment Act. A detailed discussion of the background for each of 
the above rules and nonattainment areas is provided in the proposed 
rules (PR) cited above.
    EPA has evaluated all of the above rules for consistency with the

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requirements of the CAA and EPA regulations and EPA's interpretation of 
these requirements as expressed in the various EPA policy guidance 
documents referenced in the PRs. EPA is finalizing the limited approval 
of these rules in order to strengthen the SIP and finalizing the 
limited disapproval requiring the correction of the remaining 
deficiencies. Because none of the rules are currently in the SIP, the 
incorporation of these rules into the SIP would decrease the 
NOX emissions allowed by the SIP. The submitted rules SCAQMD 
Rule 1109-Emissions of Oxides of Nitrogen from Process Heaters and 
Boilers in Petroleum Refineries, EDCAPCD Rule 233-Stationary Internal 
Combustion Engines, YSAQMD Rule 2.32-Stationary Internal Combustion 
Engines, and VCAPCD Rule 74.15.1-Boilers, Steam Generators, and Process 
Heaters, include the following provisions:
     General provisions including applicability, exemptions, 
and definitions.
     Exhaust emissions standards for oxides of nitrogen 
(NOX) and carbon monoxide (CO)
     Administrative and monitoring requirements including 
compliance schedule, reporting requirements, monitoring and 
recordkeeping, 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. Incorporation of the Rules 
strengthens the SIP through the addition of enforceable measures such 
as record keeping, test methods, definitions, and more stringent 
compliance testing.
    SCAQMD Rule 1109 controls emissions of nitrogen oxides from boilers 
and process heaters located in petroleum refineries with rated 
capacities greater than 40 MBtu per hour heat input. The rule requires 
units to meet a 0.03 pound per million Btu heat input limit in 
accordance with a phased time schedule.
     The emission limits will strengthen the SIP, but this rule 
contains deficiencies which must be corrected. Those deficiencies 
include Executive Officer discretion in approving continuous emission 
monitoring equipment and test methods, insufficient records to 
determine compliance, and an unapprovable provision for an alternative 
emission control plan.
    EDCAPCD Rule 233 and YSAQMD Rule 2.32: In both of the Rules, the 
first option, which applies to existing IC engines that meet the limits 
by May 31, 1995, sets emission limits of 640 ppmv, 740 ppmv and 700 
ppmv for rich-burn spark-ignited engines, lean-burn spark-ignited 
engines, and diesel engines respectively. In a Proposed Determination 
of Reasonably Available Control Technology and Best Available Retrofit 
Control Technology for Stationary Internal Combustion Engines dated 
December 1997, the State of California Air Resources Board (CARB) 
determined RACT limits for IC engines rated at 50 brake horsepower or 
more to be 50 parts per million volume (ppmv) for rich-burn spark-
ignited engines, 125 ppmv for lean-burn spark-ignited engines, and 350 
ppmv for diesel engines. These limits were determined based on 
previously implemented regulatory control in Ventura County and San 
Diego County.
     EPA agrees that these limits are consistent with the 
Agency's guidance and policy for making RACT determinations in terms of 
general cost-effectiveness, emission reductions, and environmental 
impacts. Both EDCAPCD Rule 233 and YSAQMD Rule 2.32 provide three 
options for demonstrating compliance. The EPA has determined that these 
limits do not meet RACT for IC engines. Although the monitoring and 
recordkeeping provisions of EDCAPCD Rule 233 and YSAQMD Rule 2.32 will 
strengthen the SIP, these rules contain deficiencies related to the 
emissions limits for oxides of nitrogen (NOX), as well as 
other deficiencies. VCAPCD Rule 74.15.1 controls emissions of oxides of 
nitrogen from boilers, steam generators, and process heaters.
     The Rule provides an automatic exemption from compliance 
for emissions that occur during start-up, shutdown, or under breakdown 
conditions. These conditions are not defined in the rule. Such 
automatic exemptions are not allowed under EPA policy as contained in 
the EPA policy memorandum signed by Kathleen M. Bennett, ``Policy on 
Excess Emissions During Startup, Shutdown, Maintenance and 
Malfunctions,'' dated February 15, 1983, and ``State Implementation 
Plans: Policy Regarding Excess Emissions During Malfunctions, Startup, 
and Shutdown,'' US EPA, Office of Air Quality Planning and Standards 
letter dated September 20, 1999. In order to be consistent with EPA 
policy, Rule 74.15.1 must be modified to either eliminate this 
exemption, or to define the conditions of its applicability to conform 
with the excess emissions memoranda.
    A detailed discussion of the rules provisions and evaluations has 
been provided in the PRs and in technical support documents (TSDs) 
available at EPA's Region IX office. TSDs prepared by EPA are dated 
January 22, 1997 for SCAQMD Rule 1109, July 21, 1998 for EDCAPCD Rule 
233 and YSAQMD Rule 2.32, and August 18, 1998 for VCAPCD Rule 74.15.1.

III. Response to Public Comments

    A 30-day public comment period was provided in 62 FR 9138. EPA 
received no comments on the proposed NPRs.

IV. EPA Action

    EPA is finalizing a limited approval and a limited disapproval of 
the above-referenced rules. The limited approval of these rules is 
being finalized under section 110(k)(3) in light of EPA's authority 
pursuant to section 301(a) to adopt regulations necessary to further 
air quality by strengthening the SIP. The approval is limited in the 
sense that the rules strengthen the SIP. However, the rules do not meet 
the section 182(a)(2)(A) CAA requirement because of the rules 
deficiencies which were discussed in the PR. Thus, in order to 
strengthen the SIP, EPA is granting limited approval of these rules 
under sections 110(k)(3) and 301(a) of the CAA. This action approves 
the rules into the SIP as federally enforceable rules.
    At the same time, EPA is finalizing the limited disapproval of 
these rules because they contain deficiencies that have not been 
corrected as required by section 182(a)(2)(A) of the CAA, and, as such, 
the rules do not fully meet the requirements of Part D of the Act. As 
stated in the proposed rules, upon the effective date of the final 
rules, the 18 month clock for sanctions and the 24 month FIP clock will 
begin. Sections 179(a) and 110(c). If the State does not submit the 
required corrections and EPA does not approve the submittal within 18 
months of the effective date of the final rules, either the highway 
sanction or the offset sanction will be imposed at the 18 month mark. 
It should be noted that the rules covered by this FR have been adopted 
by the Districts and are currently in effect in the Districts. EPA's 
limited disapproval action will not prevent the Districts or EPA from 
enforcing the rules.

V. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory

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action from Executive Order 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.
    The final rules 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 the 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 
Executive Order 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.
    The rules are not subject to Executive Order 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 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, Executive Order 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 rules do not significantly 
or uniquely affect the communities of Indian tribal governments. 
Accordingly, the requirements of section 3(b) of Executive Order 13084 
do not apply to the 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.
    The 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. US 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

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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. The rules are not ``major'' rules 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 March 13, 2000. Filing a 
petition for reconsideration by the Administrator of the final rules 
does not affect the finality of the 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, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compound.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: November 18, 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)(179)(i)(H), 
(c) (199)(i)(E)(2), (c)(203), (c)(225)(i)(C) introductory text, and 
(c)(225)(i)(G) to read as follows:
    (c) * * *
    (179) * * *
    (i) * * *
    (H) South Coast Air Quality Management District.
    (1) Rule 1109 adopted on March 12, 1984 and amended on August 5, 
1988.
* * * * *
    (199) * * *
    (i) * * *
    (E) * * *
    (2) Rule 2.32 adopted on August 10, 1994.
* * * * *
    (203) New and amended regulations for the following APCDs were 
submitted on October 20, 1994, by the Governor's designee.
    (i) Incorporation by reference.
    (A) El Dorado County Air Pollution Control District.
    (1) Rule 233 adopted on October 18, 1994.
* * * * *
    (225) * * *
    (i) * * *
    (C) El Dorado County Air Pollution Control District.
* * * * *
    (G) Ventura County Air Pollution Control District.
    (1) Rule 74.15.1 revised on June 13, 1995.
* * * * *
[FR Doc. 00-623 Filed 1-12-00; 8:45 am]
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