[Federal Register Volume 66, Number 152 (Tuesday, August 7, 2001)]
[Proposed Rules]
[Pages 41174-41176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19753]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA249-0287; FRL-7026-6]


Revisions to the California State Implementation Plan, South 
Coast 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 South Coast Air 
Quality Management District (SCAQMD) portion of the California State 
Implementation Plan (SIP). These revisions concern oxides of nitrogen ( 
NOX) emissions from mobile sources (Class 7 and 8 heavy duty 
vehicles, marine vessels, ocean-going marine vessel hotelling 
operations, truck and trailer refrigeration units), and area sources 
(agricultural pumps). We are proposing to approve local rules to 
regulate these emission sources under the Clean Air Act as amended in 
1990 (CAA or the Act). We are taking comments on this proposal and plan 
to follow with a final action.

DATE: Any comments must arrive by October 9, 2001.

ADDRESSES: Mail comments to Andy Steckel, Rulemaking Office Chief (AIR-
4), U.S. Environmental Protection Agency, Region IX, 75 Hawthorne 
Street, San Francisco, CA 94105-3901.
    You can inspect copies of the submitted SIP revisions and EPA's 
technical support documents (TSDs) at our Region IX office during 
normal business hours. You may also see copies of the submitted SIP 
revisions at the following locations:

California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 1001 ``I'' Street, Sacramento, CA 95814
South Coast Air Quality Management District, 21865 E. Copley Dr., 
Diamond Bar, CA 91765-4182

FOR FURTHER INFORMATION CONTACT: Lily Wong, Rulemaking Office (AIR-4), 
U.S. Environmental Protection Agency, Region IX, (415) 744-1190.

SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us'' and 
``our'' refer to EPA.

Table of Contents

I. The State's Submittal
    A. What rules did the State submit?
    B. Are there other versions of these rules?
    C. What is the purpose of the submitted rules?
II. EPA's Evaluation and Action
    A. How is EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    C. Public comment and final action.
III. Background information
    A. Why were these rules submitted?
IV. Administrative Requirements

I. The State's Submittal

A. What Rules Did the State Submit?

    Table 1 lists the rules addressed by this proposal with the dates 
that they were adopted by SCAQMD and submitted by the California Air 
Resources Board (CARB).

[[Page 41175]]



                                            Table 1.--Submitted Rules
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                    Rule #                                    Rule title                  Adopted     Submitted
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1612.1........................................  Mobile Source Credit Generation Pilot      03/16/01     05/08/01
                                                 Program.
1631..........................................  Pilot Credit Generation Program for        05/11/01     05/31/01
                                                 Marine Vessels.
1632..........................................  Pilot Credit Generation Program for        05/11/01     05/31/01
                                                 Hotelling Operations.
1633..........................................  Pilot Credit Generation Program for        05/11/01     05/31/01
                                                 Truck/Trailer Refrigeration Units.
2507..........................................  Pilot Credit Generation Program for        05/11/01     05/31/01
                                                 Agricultural Pumps.
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    On July 20, 2001, these rule submittals were found to meet the 
completeness criteria in 40 CFR Part 51 Appendix V, which must be met 
before formal EPA review.

B. Are There Other Versions of These Rules?

    There are no previous versions of Rules 1612.1, 1631, 1632, 1633 or 
2507 in the SIP.

C. What Is the Purpose of the Submitted Rules?

    SCAQMD's Regional Clean Air Incentive Market (RECLAIM) program 
(Regulation XX) establishes declining emission limits for medium and 
large stationary sources of NOX in and around Los Angeles. 
RECLAIM sources can comply with the declining limits by reducing their 
emissions directly or by obtaining surplus emission reduction credits 
from other RECLAIM sources. The RECLAIM program at Rule 2008 also 
allows the use of mobile source emission reduction credits (MSERCs) by 
RECLAIM stationary sources. Rules 1612.1, 1631, 1632, 1633 and 2507 
establish requirements for any person who voluntarily elects to 
generate NOX MSERCs and NOX area source credits 
(ASCs) for use in RECLAIM through the activities described below. The 
mobile and area sources subject to these rules must operate exclusively 
within the SCAQMD.
    Rule 1612.1 applies to the replacement of diesel-fueled heavy-duty 
Class 7 or 8 vehicles (e.g. garbage trucks and delivery vehicles) or 
yard hostlers with ``clean technologies'' using compressed natural gas, 
liquefied natural gas, liquefied petroleum gas, electric power, or 
dual-fueled engines. Rule 1631 applies to the repowering of diesel-
fueled marine vessel engines with cleaner diesel engines meeting 
specified emission standards. Applicable marine vessels include tug 
boats, supply boats, ferries, fishing boats and other vessels which 
stay within the SCAQMD area. Rule 1632 applies to the use of fuel cell 
technology in lieu of diesel-fueled auxiliary engines to provide 
electricity to ocean-going marine vessel hotelling operations. This 
includes operations that require electric energy when a marine vessel 
is docked or anchored, such as lights, ventilation, heating, and 
loading. Rule 1633 applies to the conversion or purchase of truck or 
trailer refrigeration units that are equipped with electric standby 
mode to use electric power instead of diesel-fueled auxiliary engines 
to operate the truck or trailer refrigeration unit at a distribution 
center. Rule 2507 applies to the replacement of an existing diesel-
fueled engine used to power an agricultural pump with an electric 
motor. The TSDs have more information about these rules.

II. EPA's Evaluation and Action

A. How Is EPA Evaluating the Rules?

    Generally, SIP rules must be enforceable (see section 110(a) of the 
Act), and must not relax existing requirements (see sections 110(l) and 
193).
    Guidance and policy documents that we used to define specific 
evaluation criteria include the following:
    1. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and 
Deviations; Clarification to Appendix D of November 24, 1987 Federal 
Register Notice,'' (Bluebook), notice of availability published in the 
May 25, 1988 Federal Register.
    2. ``Improving Air Quality with Economic Incentive Programs,'' 
January 2001, Office of Air and Radiation, EPA-452/R-01-001. This 
guidance applies to discretionary economic incentive programs (EIPs) 
and represents the agency's interpretation of what EIPs should contain 
in order to meet the requirements of the CAA. Because this guidance is 
non-binding and does not represent final agency action, EPA is using 
the guidance as an initial screen to determine whether approvability 
issues arise.

B. Do the Rules Meet the Evaluation Criteria?

    We believe these rules are consistent with the relevant policy and 
guidance regarding enforceability, SIP relaxations, and EIPs. Several 
fundamental principles that apply to EIPs are: integrity (credits are 
based upon emission reductions which are surplus, enforceable, 
quantifiable, and permanent), equity, and environmental benefit. These 
rules meet the surplus criteria because the activities generating the 
emission reductions must not be required or relied upon by any local, 
state, or federal regulation, by the CAA, in an attainment 
demonstration, reasonable further progress demonstration, or emissions 
inventory. These rules meet the quantifiable criteria because they 
include conservative emissions quantification protocols to quantify 
emission reductions. The protocols are based on test data, certified 
emission standards, or other EPA studies on emission rates. These rules 
meet the enforceable criteria described in the Bluebook, and because 
the credit generator is liable for meeting the terms of its 
application. These rules meet the permanent criteria because credits 
are only issued for credit generating activity that occurs. The general 
equity element of the equity principle has been addressed by an initial 
analysis of the RECLAIM program during its development in 1993--which 
included an evaluation of potential geographic shifts in emissions and 
potential socio-economic impacts (e.g. job shifts). In addition to this 
initial analysis, there are ongoing periodic analyses that look at the 
same issues. Consequently, EPA concluded that the general equity 
element has been adequately addressed. These rules meet the 
environmental benefit principle because emission reduction credits are 
discounted prior to use to provide for environmental benefit. These 
rules provide for the generation of emission reduction credits and do 
not represent a SIP relaxation. The TSDs have more information on our 
evaluation.

C. Public Comment and Final Action

    Because EPA believes the submitted rules fulfill all relevant 
requirements, we are proposing to fully approve them as described in 
section 110(k)(3) of the Act. While the public comment period for this 
type of action is normally 30 days, we are responding to a request for 
a longer comment period. We will accept comments from the public on 
this proposal for the next 60 days. Unless we receive convincing new 
information during the comment period,

[[Page 41176]]

we intend to publish a final approval action that will incorporate 
these rules into the federally enforceable SIP.

III. Background Information

A. Why Were These Rules Submitted?

    NOX helps produce ground-level ozone, smog and 
particulate matter, which harm human health and the environment. 
Section 110(a) and Part D of the CAA require states to submit 
regulations that control NOX emissions.

IV. Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget. For this reason, this proposed action is also not subject to 
Executive Order 32111, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 
28355, May 22, 2001). This proposed action merely approves state law as 
meeting federal requirements and imposes no additional requirements 
beyond those imposed by state law. Accordingly, the Administrator 
certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). Because this rule proposes to 
approve pre-existing requirements under state law and does not impose 
any additional enforceable duty beyond that required by state law, it 
does not contain any unfunded mandate or significantly or uniquely 
affect small governments, as described in the Unfunded Mandates Reform 
Act of 1995 (Public Law 104-4). This rule also does not have a 
substantial direct effect on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes, as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it 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 CAA. This proposed rule also is not 
subject to Executive Order 13045 (62 FR 19885, April 23, 1997), because 
it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the CAA. In this 
context, in the absence of a prior existing requirement for the State 
to use voluntary consensus standards (VCS), EPA has no authority to 
disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the CAA. Thus, the requirements of section 
12(d) of the National Technology Transfer and Advancement Act of 1995 
(15 U.S.C. 272 note) do not apply. As required by section 3 of 
Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing this 
proposed rule, EPA has taken the necessary steps to eliminate drafting 
errors and ambiguity, minimize potential litigation, and provide a 
clear legal standard for affected conduct. EPA has complied with 
Executive Order 12630 (53 FR 8859, March 15, 1988) by examining the 
takings implications of the rule in accordance with the ``Attorney 
General's Supplemental Guidelines for the Evaluation of Risk and 
Avoidance of Unanticipated Takings' issued under the executive order. 
This proposed rule does not impose an information collection burden 
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping 
requirements.

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

    Dated: July 24, 2001.
Jane Diamond,
Acting Regional Administrator, Region IX.
[FR Doc. 01-19753 Filed 8-6-01; 8:45 am]
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