[Federal Register Volume 67, Number 130 (Monday, July 8, 2002)]
[Rules and Regulations]
[Pages 45066-45069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16857]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA247-0330a; FRL-7220-8]


Revisions to the California State Implementation Plan, Santa 
Barbara County Air Pollution Control District, El Dorado County Air 
Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: EPA is taking direct final action to approve revisions to the 
Santa Barbara County Air Pollution Control District (SBCAPCD) and El 
Dorado County Air Pollution Control District (EDCAPCD) portions of the 
California State Implementation Plan (SIP). These revisions concern 
volatile organic compound (VOC) emissions from crude oil separation and 
storage operations, liquid reactive organic compound storage, and 
organic liquid loading and transport. We are approving local rules that 
regulate these emission sources under the Clean Air Act as amended in 
1990 (CAA or the Act).

DATES: This rule is effective on September 6, 2002 without further 
notice, unless EPA receives adverse comments by August 7, 2002. If we 
receive such comment, we will publish a timely withdrawal in the 
Federal Register to notify the public that this rule will not take 
effect.

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:

Environmental Protection Agency, Air Docket (6102), Ariel Rios 
Building, 1200 Pennsylvania Avenue, NW, Washington D.C. 20460;
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 1001 ``I'' Street, Sacramento, CA 95814;
Santa Barbara County Air Pollution Control District, 26 Castilian 
Drive, Suite B-23, Goleta, CA 93117; and
El Dorado County Air Pollution Control District, 2850 Fairlane Court, 
Building C, Placerville, CA 95667.

FOR FURTHER INFORMATION CONTACT: Jerald S. Wamsley, Rulemaking Office 
(AIR-4), U.S. Environmental Protection Agency, Region IX, (415) 947-
4111.

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 Rule Revisions?
II. EPA's Evaluation and Action
    A. How Is EPA Evaluating the Rules?
    B. Do the Rules Meet the Evaluation Criteria?
    C. EPA Recommendations to Further Improve the Rules.
    D. Public Comment and Final Action.
III. Background Information

[[Page 45067]]

    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 we are approving with the dates that 
they were adopted by the local air agencies and submitted by the 
California Air Resources Board (CARB).

                                            Table 1.--Submitted Rules
----------------------------------------------------------------------------------------------------------------
             Local agency               Rule No.               Rule title                 Adopted     Submitted
----------------------------------------------------------------------------------------------------------------
SBCAPCD..............................        325  Crude Oil Production and Separation      07/19/01      11/7/01
                                                   Rule.
SBCAPCD..............................        326  Storage of Reactive Organic Compound     01/18/01     05/08/01
                                                   Liquids.
EDCAPCD..............................        244  Organic Liquid Loading and Transport     09/25/01      11/9/01
                                                   Vessels.
----------------------------------------------------------------------------------------------------------------

    EPA found these rule submittals met the completeness criteria in 40 
CFR part 51, appendix V on the following dates: on February 22, 2002 
for SBCAPCD Rule 325; July 20, 2001 for SBCAPCD Rule 326; and, on 
January 18, 2002 for EDCAPCD Rule 244. These completeness criteria must 
be met before formal EPA review may begin.

B. Are There Other Versions of These Rules?

    EPA approved versions of SBCAPCD Rules 325 and 326 into the SIP on 
May 6, 1996. We approved a version of EDCAPCD Rule 244 into the SIP on 
August 27, 2001. Between these dates and today's action, CARB submitted 
a prior version of only Rule 325. This version of Rule 325 was adopted 
on January 18, 2001 and submitted by CARB on May 8, 2001. While we can 
act on only the most recently submitted version, these past rule 
revisions will be reviewed along with the latest revisions to Rule 325.

C. What Is the Purpose of the Submitted Rule Revisions?

    SBCAPCD Rule 325--Crude Oil Production and Separation is a rule 
designed to reduce volatile organic compound (VOC) emissions at 
industrial sites engaged in producing, gathering storing, processing, 
and separating crude oil and natural gas prior to transfer from these 
facilities to transport facilities and networks. VOCs are emitted from 
containing vessels such as tanks and transfer lines due to the high 
vapor pressure of the processed crude oil and organic compounds. Rule 
325 limits these vapor emissions by recapture, disposal, or combustion.
    SBCAPCD Rule 326--Storage of Reactive Organic Compound Liquids is a 
rule designed to reduce VOC emissions at industrial sites engaged in 
storing any organic liquids with a vapor pressure greater than 0.5 
pounds per square inch atmospheric. Rule 326 establishes vapor pressure 
containment and control requirements for organic liquid storage tanks. 
Rule 326 also sets specific requirements for vapor loss control 
devices, closure devices, external floating roofs, and internal 
floating roofs.
    SBCAPCD's July 19, 2001 amendments to Rule 325 included these 
significant changes to the 1996 SIP approved version.

--Test methods were revised to include EPA Methods 5030B, 5035, and 
8015B to determine the reactive organic compound content of liquids in 
milligrams per liter.

    SBCAPCD's January 18, 2001 amendments to Rule 325 and Rule 326 
included these significant changes to the respective versions within 
the SIP.

--Definitions for Heavy Oil, Light Oil, and HOST Test Method were 
added.
--The HOST Test Method (``Test Method for Vapor Pressure of Reactive 
Organic Compounds in Heavy Crude Oil Using Gas Chromatography'') was 
added.
--A Heavy Oil Compliance Schedule was added to Rule 325.
--A compliance schedule for true vapor pressure sampling was added to 
Rule 326.

    EDCAPCD Rule 244--Organic Liquid Loading and Transport Vessels is a 
rule designed to reduce VOC emissions at industrial sites engaged in 
loading and unloading organic liquids with a vapor pressure greater 
than 1.5 pounds per square inch atmospheric into and from tank trucks, 
trailers, or railroad tank cars. Rule 244 establishes vapor pressure 
containment and control requirements for organic liquid storage tanks 
such as gasoline loading facilities, transport vessels, and non-
gasoline loading facilities.
    EDCAPCD's September 25, 2001 amendments to Rule 244 included these 
significant changes to the 2001 SIP approved version.

--A definition for Bulk Terminal was added.
--Required vapor recovery rates at gasoline loading facilities were 
increased from 95% to 99%.

    The respective TSD for each rule has more information about these 
rule revisions.

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), must require Reasonably Available Control Technology (RACT) for 
major sources in nonattainment areas (see section 182(a)(2)(A)), and 
must not relax existing requirements (see sections 110(l) and 193). The 
SBCAPCD and EDCAPCD regulate an ozone nonattainment area (see 40 CFR 
part 81), so Rules 325, 326 and 244 must fulfill RACT.
    Guidance and policy documents that we used to help evaluate 
specific enforceability and RACT requirements consistently include the 
following:
    1. Portions of the proposed post-1987 ozone and carbon monoxide 
policy that concern RACT, 52 FR 45044, November 24, 1987.
    2. ``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 published in the 
May 25, 1988 Federal Register.
    3. ``Control of Volatile Organic Compound Equipment Leaks from 
Natural Gas/Gasoline Processing Plants,'' EPA-450/2-83-007, USEPA, 
December 1983.
    4. ``Control of Volatile Organic Emissions from Petroleum Liquid 
Storage in External Floating Roof Tanks,'' EPA-450/2-78-047, USEPA, 
December 1978.
    5. ``Control of Volatile Organic Emissions from Storage of 
Petroleum Liquids in Fixed-Roof Tanks,'' EPA-450/2-77-036, USEPA, 
December 1977.
    6. ``Control of Volatile Organic Compound Leaks from Gasoline Tank 
Trucks and Vapor Collection Systems,'' EPA-450/2-78-051, USEPA, 
December 1978.

B. Do the Rules Meet the Evaluation Criteria?

    We believe these rules are consistent with the relevant policy and 
guidance

[[Page 45068]]

regarding enforceability, RACT, and SIP relaxations.
    The emission limits, requirements, and work practices of SBCAPCD 
Rules 325 and 326 conform with the EPA's CTG and remain unchanged 
compared to the SIP version of the rule. Also, Rules 325 and 326 
contain adequate record keeping and test methods provisions for 
monitoring the compliance of regulated facilities. SBCAPCD's changes 
incorporate new test methods into the rule. These changes clarify the 
rules and allow for more precise determinations of compliance. As such, 
both submitted Rule 325 and 326 do not interfere with reasonable 
further progress or attainment.
    EDCAPCD Rule 244's limits, requirements, and work practices conform 
with the EPA's CTG and remain unchanged compared to the SIP version of 
the rule. Also, Rule 244 contains adequate record keeping and test 
methods provisions for monitoring the compliance of regulated 
facilities. EDCAPCD's changes clarify and strenghthen the rule. As 
such, the submitted Rule 244 does not interfere with reasonable further 
progress or attainment.
    The TSD for each respective rule has more information on our 
evaluation.

C. EPA Recommendations To Further Improve the Rules

    Section B.2 of Rule 325 provides for exemption from the 
requirements of section D.1 of the rule during maintenance operations 
on vapor recovery systems or tank batteries. EPA policy on exemptions 
which apply to excess emissions that occur during malfunctions, start-
up and shutdown is contained in a memorandum dated September 20, 1999, 
entitled ``State Implementation Plans: Policy Regarding Excess 
Emissions During Malfunctions, Start-up, and Shutdown'' (the Excess 
Emissions Policy).
    The Excess Emissions Policy states that EPA may approve SIP 
revisions providing source-category specific exemptions for excess 
emissions that occur during start-up and shutdown periods only if the 
source's control strategy is such that compliance with otherwise 
applicable emission limits or technology requirements is 
technologically infeasible during these periods. The policy also 
requires that the frequency and duration of the excess emissions be 
minimized to the maximum extent practicable. These requirements are 
based on sections 110(l) and 172(c)(1) of the Clean Air Act and are 
meant to ensure that the excess emissions provisions do not interfere 
with attainment, maintenance, or other applicable requirements. EPA has 
determined that maintenance activities might sometimes necessitate 
exemption from emissions limitations or technology requirements 
analogous to those available for start-up and shutdown under the Excess 
Emissions Policy. However, such exemptions must be narrowly tailored so 
that exemption is allowed only when compliance is rendered 
technologically infeasible by the maintenance activities.
    The exemption in section B.2 of Rule 325 appears to be overly broad 
as it applies during any maintenance of a tank battery irrespective of 
whether such maintenance activity necessarily interferes with an 
operator's ability to meet the requirements of section D.1. Further, 
the Excess Emissions Policy requires that the duration of the exemption 
be minimized and that emissions be reduced as much as possible during 
the exemption. Section B.2 does not implement these requirements. 
However, section B.2 does limit the exemption to a maximum of 24 hours 
and requires prior notification of the Air Pollution Control District. 
Because this exemption is limited, EPA has determined that the rule's 
failure to fully conform to the requirements of the Excess Emissions 
Policy is not of sufficient concern to affect the approvability of the 
rule. However, EPA recommends that this exemption be redrafted to fully 
implement the provisions of the Excess Emissions Policy during the next 
revision of this rule.

D. Public Comment and Final Action

    As authorized in section 110(k)(3) of the Act, EPA is fully 
approving the submitted rules because we believe they fulfill all 
relevant requirements. We do not think anyone will object to this 
approval, so we are finalizing it without proposing it in advance. 
However, in the Proposed Rules section of this Federal Register, we are 
simultaneously proposing approval of the same submitted rules. If we 
receive adverse comments by August 7, 2002, we will publish a timely 
withdrawal in the Federal Register to notify the public that the direct 
final approval will not take effect and we will address the comments in 
a subsequent final action based on the proposal. If we do not receive 
timely adverse comments, the direct final approval will be effective 
without further notice on September 6, 2002. This will incorporate 
these rules into the federally enforceable SIP.
    Please note that if EPA receives adverse comment on an amendment, 
paragraph, or section of this rule and if that provision may be severed 
from the remainder of the rule, EPA may adopt as final those provisions 
of the rule that are not the subject of an adverse comment.

III. Background Information

Why Were These Rules Submitted?

    VOCs help produce ground-level ozone and smog, which harm human 
health and the environment. Section 110(a) of the CAA requires states 
to submit regulations that control VOC emissions. Table 2 lists some of 
the national milestones leading to the submittal of these local agency 
VOC rules.

                Table 2.--Ozone Nonattainment Milestones
------------------------------------------------------------------------
             Date                                Event
------------------------------------------------------------------------
March 3, 1978................  EPA promulgated a list of ozone
                                nonattainment areas under the Clean Air
                                Act as amended in 1977. 43 FR 8964; 40
                                CFR 81.305.
May 26, 1988.................  EPA notified Governors that parts of
                                their SIPs were inadequate to attain and
                                maintain the ozone standard and
                                requested that they correct the
                                deficiencies (EPA's SIP-Call). See
                                section 110(a)(2)(H) of the pre-amended
                                Act.
November 15, 1990............  Clean Air Act Amendments of 1990 were
                                enacted. Pub. L. 101-549, 104 Stat.
                                2399, codified at 42 U.S.C. 7401-7671q.
May 15, 1991.................  Section 182(a)(2)(A) requires that ozone
                                nonattainment areas correct deficient
                                RACT rules by this date.
------------------------------------------------------------------------


[[Page 45069]]

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 tribal implications because it will 
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). This action also does not have Federalism 
implications because it does 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). This action merely proposes to approve 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. This proposed rule also is not 
subject to Executive Order 13045, ``Protection of Children from 
Environmental Health Risks and Safety Risks'' (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 Clean Air Act. 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 Clean Air Act. 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. 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, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Dated: May 2, 2002.
Keith Takata,
Associate 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)(284)(i)(C), 
(c)(292)(i)(B), and (c)(296) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (284) * * *
    (i) * * *
    (C) Santa Barbara County Air Pollution Control District.
    (1) Rule 326 adopted on December 14, 1993, and amended on January 
18, 2001
* * * * *
    (292) * * *
    (i) * * *
    (B) Santa Barbara County Air Pollution Control District.
    (1) Rule 325 adopted on January 25, 1994, and amended on July 19, 
2001.
* * * * *
    (296) New and amended regulations for the following APCD were 
submitted on November 9, 2001, by the Governor's designee.
    (i) Incorporation by reference.
    (A) El Dorado County Air Pollution Control District.
    (1) Rule 244 adopted on March 27, 2001, and amended on September 
25, 2001.
* * * * *
[FR Doc. 02-16857 Filed 7-5-02; 8:45 am]
BILLING CODE 6560-50-P