[Federal Register Volume 65, Number 17 (Wednesday, January 26, 2000)]
[Proposed Rules]
[Pages 4208-4210]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1839]



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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 226-0210; FRL-6529-2]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision; San Joaquin Valley Unified Air 
Pollution Control District, Sacramento Metropolitan Air Quality 
Management District

AGENCY:  Environmental Protection Agency (EPA).

ACTION:  Proposed rule.

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SUMMARY:  EPA is proposing to approve revisions to the San Joaquin 
Valley Unified Air Pollution Control District and Sacramento 
Metropolitan Air Quality Management District portions of the California 
State Implementation Plan (SIP). These revisions concern the control of 
volatile organic compound (VOC) emissions from gasoline transfer into 
stationary storage container, delivery vessels and bulk plants, and 
from organic chemical manufacturing operations.
    The intended effect of proposing approval of these rules is to 
regulate emissions of VOCs in accordance with the requirements of the 
Clean Air Act, as amended in 1990 (CAA or the Act). EPA's final action 
on this proposed rule will incorporate these rules into the federally 
approved SIP. EPA has evaluated each of these rules and is proposing to 
approve them 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:  Comments must be received on or before February 25, 2000.

ADDRESSES:  Comments may be mailed to: Andrew Steckel, Rulemaking 
Office, [AIR-4], Air Division, U.S. Environmental Protection Agency, 
Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901.
    Copies of the rules and EPA's evaluation report of each rule are 
available for public inspection at EPA's Region IX office during normal 
business hours. Copies of the submitted rules are also available for 
inspection at the following locations:

California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814
San Joaquin Valley Unified Air Pollution Control District, 1999 
Tuolumne Street, Suite 200, Fresno, CA 93721
Sacramento Metropolitan Air Quality Management District, 8411 Jackson 
Road, Sacramento, CA 95826.


FOR FURTHER INFORMATION CONTACT: Max Fantillo, Rulemaking Office (AIR-
4), Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105-3901, Telephone: (415) 744-
1183.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rules being proposed for approval into the California SIP 
include: San Joaquin Valley Unified Air Pollution Control District's 
(SJVUAPCD) Rule 4621, Gasoline Transfer into Stationary Storage 
Containers, Delivery Vessels, and Bulk Plants; and Sacramento 
Metropolitan Air Quality Management District's (SMAQMD) Rule 464, 
Organic Chemical Manufacturing Operations. These rules were submitted 
by the California Air Resources Board (CARB) to EPA on August 21, 1998 
and May 13, 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 CAA or pre-amended Act), that included the San Joaquin Valley 
Area and the Sacramento Metropolitan 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 pre-amended 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 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 San 
Joaquin Valley Area is classified as serious; the Sacramento 
Metropolitan Area 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\ San Joaquin Valley Area retained its designation of 
nonattainment and 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). The Sacramento Metro Area was 
reclassified from serious to severe on June 1, 1995. See 60 FR 20237 
(April 25, 1995).
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    The State of California submitted many revised RACT rules for 
incorporation into its SIP on August 29, 1998 and May 13, 1999, 
including the rules being acted on in this document. This document 
addresses EPA's proposed action for SJVUAPCD Rule 4621, Gasoline 
Transfer into Stationary Storage Containers, Delivery Vessels, and Bulk 
Plants, and SMAQMD Rule 464, Organic Chemical Manufacturing Operations. 
SJVUAPCD adopted Rule 4621 on June 18, 1998 and SMAQMD adopted Rule 464 
on July 23, 1998. These submitted rules were found to be complete on 
October 2, 1998 (Rule 4621) and June 10, 1999 (Rule 464) pursuant to 
EPA's completeness criteria that are set forth in 40 CFR Part 51 
Appendix V \3\ and are being proposed 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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    SJVUAPCD's Rule 4621 controls VOC emissions from gasoline transfer 
into stationary storage containers, delivery vessels, and bulk plants; 
and SMAQMD's Rule 464 controls VOC emissions from organic chemical 
manufacturing operations. VOCs contribute to the production of ground-
level ozone and smog. The rules were adopted as part of each district's 
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 
proposed action for these rules.

III. EPA Evaluation and Proposed Action

    In determining the approvability of a VOC rule, EPA must evaluate 
the rule for consistency with the requirements of

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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 Rule 4621 are entitled, ``Control of Hydrocarbons from 
Tank Gasoline Terminals,'' EPA-450/2-77-026 and ``Control of Volatile 
Organic Emissions from Bulk Gasoline Plants,'' EPA-450/2-77-035. There 
is no single CTG document applicable to Rule 464. However, the 
following CTG documents were used as guidance in evaluating the rule: 
``Control of Volatile Organic Compound Emissions from Reactor Processes 
and Distillation Operations Processes in the Synthetic Organic Chemical 
Manufacturing Industry,'' EPA-450/4-91-031, ``Control of Volatile 
Organic Emissions from Manufacture of Synthesized Pharmaceutical 
Manufacturing Industry,'' EPA-450/2-78-029, and draft CTG entitled 
``Control of Volatile Organic Compound Emissions from Industrial 
Wastewater,'' EPA-453/D-930056. Other guidance documents used in 
evaluating Rule 464 are: ``Control of Volatile Organic Compound 
Emissions from Batch Processes--Alternative Control Techniques 
Information Document,'', 40 CFR Part 60, subparts VV, NNN, RRR, and 40 
CFR Part 63, subparts F and G. 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 May 2, 1996, EPA approved into the SIP a version of SJVUAPCD 
Rule 4621, Gasoline Transfer into Stationary Storage Containers, 
Delivery Vessels, and Bulk Plants that had been adopted by SJVUAPCD on 
May 20, 1993. Revisions to this rule were subsequently adopted on June 
18, 1998 and submitted to EPA on August 21, 1999. SJVUAPCD's submitted 
Rule 4621, Gasoline Transfer into Stationary Storage Containers, 
Delivery Vessels, and Bulk Plants includes the following significant 
changes from the current SIP:
     Addition of applicability threshold to tank capacity (i.e, 
250-19,800 gallons) from Section 5, Requirements, of the SIP approved 
version of the rule for clarity;
     Addition of requirements for inspection, frequency of 
inspection and repair response period;
     Addition of leak-free requirements for loading racks, 
aboveground tanks, and vapor collection equipment.
     Addition of new recordkeeping requirements;
     Addition of new provisions, new definitions and revisions 
of some, and other minor changes to improve enforceability and clarity; 
and
     Deletion of extraneous provisions and obsolete 
requirements in the rule.
    There is currently no version of SMAQMD Rule 464, Organic Chemical 
Manufacturing Operations in the SIP. The submitted is divided into five 
sections consisting of the following:
     General provisions which include applicability and 
exemptions;
     Definitions pertinent to the rule;
     Standards for various process equipment including: 
reactors, distillation columns, crystallisers, evaporators, dryers, 
process tanks, wastewater, storage tanks, and liquid transfer;
     Administrative requirements; and
     Monitoring, recordkeeping, and test methods.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, SJVUAPCD's Rule 4621, Gasoline Transfer into Stationary 
Storage Containers, Delivery Vessels, and Bulk Plants, and SMAQMD's 
Rule 464, Organic Chemical Manufacturing Operations are being proposed 
for approval under section 110(k)(3) of the CAA as meeting the 
requirements of section 110(a) and Part D.

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 13132

    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 proposed 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 (64 
FR 43255, August 10, 1999), because it merely approves a state rule 
implementing a federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the Clean 
Air Act. 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

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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 
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.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental relations, Ozone, Reporting and recordkeeping 
requirements, Volatile organic compound.

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

    Dated: January 14, 2000.
Nora McGee,
Acting Regional Administrator, Region IX.
[FR Doc. 00-1839 Filed 1-25-00; 8:45 am]
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