[Federal Register Volume 68, Number 108 (Thursday, June 5, 2003)]
[Rules and Regulations]
[Pages 33635-33638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13883]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA275-0393a; FRL-7495-1]


Revisions to the California State Implementation Plan, Bay Area 
Air Quality Management District; San Diego County Air Pollution Control 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to approve revisions to the 
Bay Area Air Quality Management District (BAAQMD) and San Diego County 
Air Pollution Control District (SDCAPCD) portions of the California 
State Implementation Plan (SIP). These revisions concern volatile 
organic compound (VOC) emissions from organic liquid storage, equipment 
leaks at petroleum refineries, and wood product coating operations. 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 August 4, 2003, without further 
notice, unless EPA receives adverse comments by July 7, 2003. 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:

Air and Radiation Docket and Information Center, U.S. Environmental 
Protection Agency, Room B-102, 1301 Constitution Avenue, NW., (Mail 
Code 6102T), Washington, DC 20460;
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 1001 ``I'' Street, Sacramento, CA 95814;
Bay Area Air Quality Management District, 939 Ellis Street, San 
Francisco, CA 94109; and,
San Diego County Air Pollution Control District, 9150 Chesapeake Drive, 
San Diego, CA 92123.

A copy of the rule may also be available via the Internet at http://www.arb.ca.gov/drdb/drdbltxt.htm. Please be advised that this is not an 
EPA Web site and may not contain the same version of the rule that was 
submitted to EPA.

FOR FURTHER INFORMATION CONTACT: Jerald S. Wamsley, EPA 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

    Why were these rules submitted?
IV. Stationary and Executive Order Reviews

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
----------------------------------------------------------------------------------------------------------------
SDCAPCD.................................      67.11.1  Large Wood Product Coating          09/25/02     11/19/02
                                                        Operations.
BAAQMD..................................          8-5  Storage of Organic Liquids.....     11/27/02     01/21/03
BAAQMD..................................         8-18  Equipment Leaks................     11/27/02     01/21/03
----------------------------------------------------------------------------------------------------------------

    EPA found that these rule submittals met the completeness criteria 
in 40 CFR part 51, appendix V on February 7, 2003. These completeness 
criteria must be met before formal EPA review may begin.

B. Are There Other Versions of These Rules?

    We approved versions of BAAQMD Rule 8-5 and 8-18 into the SIP on 
October 10, 2001 (see 66 FR 51568).

[[Page 33636]]

Between these SIP incorporations and today, CARB has made no 
intervening submittals of these BAAQMD rules. SDCAPCD Rule 67.11.1 has 
not been approved into the SIP.

C. What Is the Purpose of the Rule Revisions?

    SDCAPCD Rule 67.11.1, Large Wood Product Coating Operations, is a 
rule designed to reduce volatile organic compound (VOC) emissions at 
industrial sites engaged in preparing and coating wood products such as 
furniture, cabinets, shutters, frames, and art objects. The rule 
applies to these industrial sites emitting 25 tons per year or more of 
VOCs. The provisions of this rule apply to any person who applies, 
specifies the use of, or supplies coatings for the surface preparation 
and coating of these wood products.
    BAAQMD Rule 8.5, Storage of Organic Liquids is a rule designed to 
reduce volatile organic compound (VOC) emissions at industrial sites 
engaged in storing or transferring organic liquids. VOCs are emitted 
from containment vessels such as tanks and transfer lines due to the 
high vapor pressure of the processed crude oil and organic liquids.
    BAAQMD's November 27, 2002 amendments to Rule 8.5 included 
significant changes to the 2001 SIP version. While some were editorial, 
BAAQMD made many of these changes either to correct the deficiencies 
cited in EPA's October 2001 limited disapproval, or to implement 
Measure SS-12 from the 2001 Ozone Attainment Plan. Editorial changes 
included reformatting the section on control requirements, deleting 
ambiguous or misleading terms, and certain rule sections were relocated 
to allow for the revised rule's structure. Substantive changes to the 
rule are described in detail within our TSD and its attached BAAQMD 
Staff Report.
    BAAQMD Rule 8.18, Equipment Leaks is a rule designed to reduce 
volatile organic compound (VOC) emissions at petroleum refineries by 
reducing leaking in valves, flanges, connectors, pumps, compressors, 
and pressure relief valves. Rule 8.18 defines what constitutes a leak 
and prohibits use of that component until the component is repaired. 
The rule also specifies inspection schedules for pumps, compressors, 
and valves.
    BAAQMD's November 27, 2002 amendments to Rule 8.18 included limited 
but significant changes to the 2001 SIP version. BAAQMD made these 
changes to correct the deficiencies cited in EPA's October 2001 limited 
disapproval.
    --Section 8-18-405 was amended to require that alternative 
compliance plans be submitted to EPA and approved by EPA prior to 
action by the Air Pollution Control Officer (APCO).
    --Section 8-18-406 was amended to require that a facility comply 
with all rule requirements until an alternative compliance plan is 
approved by both EPA and the APCO.
    The subject TSD has more information about each rule.

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 
BAAQMD and SDCAPCD regulate an ozone nonattainment area (see 40 CFR 
part 81), so each of the subject rules must fulfill RACT.
    Guidance and policy documents that we used to help evaluate 
specific enforceability and RACT requirements consistently include the 
following:
    --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,'' EPA, May 25, 1988 (the Bluebook);
    --``Guidance Document for Correcting Common VOC & Other Rule 
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook);
    --``Guideline Series: Control of Volatile Organic Compound 
Emissions from Wood Furniture Manufacturing Operations,'' USEPA, April, 
1996;
    --``Control of Volatile Organic Emissions from Petroleum Liquid 
Storage in External Floating Roof Tanks,'' EPA-450/2-78-047, USEPA, 
December 1978; and
    --``Control of Volatile Organic Emissions from Storage of Petroleum 
Liquids in Fixed-Roof Tanks, `` EPA-450/2-77-036, USEPA, December 1977.

B. Do the Rules Meet the Evaluation Criteria?

    We believe SDCAPCD Rule 67.11.1, BAAQMD Rule 8-5, and BAAQMD Rule 
8-18 are consistent with the relevant policy and guidance regarding 
enforceability, RACT, and SIP relaxations.
    Both BAAQMD Rule 8-5 and Rule 8-18 were subjects of a limited 
approval and limited disapproval in our October 10, 2001 rulemaking. We 
believe that the deficiencies that provided cause for our limited 
disapproval have been corrected.
    Specifically, Rule 8-5 corrected the deficiencies related to its 
inconsistency with EPA's Excess Emission Policy. These deficiencies are 
described below.
    --Revise Rule 8-5 to define ``stock change'', ``tank cleaning'', 
and ``temporary removal from service'' within Section 8-5-111.
    --Revise Rule 8-5 to define ``roof repair'' and ``primary seal 
inspection'' within Section 8-5-112.
    --Clarify the language in sections 8-5-111 and 8-5-112 to be 
consistent with the Excess Emissions Policy. Also, demonstrate via a 
discussion within the Staff Report how these sections are consistent 
with the policy's requirement that use of the control measure is 
technically infeasible during the startup and shutdown periods 
described by these exemptions.
    BAAQMD addressed these deficiencies with revisions to Sections 8-5-
111, 8-5-112, and added definitions. We believe that these amendments 
are sufficient to make the rule consistent with the Excess Emissions 
Policy. Prior to relaxing the control requirements of the rule via the 
exemptions, sources are required to notify the APCO and explain the 
work required, why rule requirements must be relaxed, and how they will 
minimize emissions during the shutdown, repair, or inspection. Given 
prior notification, the APCO may observe or inspect the work that 
proceeds under the exemption.
    BAAQMD corrected the deficiencies within Rule 8-18 related to 
``director's discretion'' by making the revisions described earlier to 
sections 8-18-405 and 8-18-406.

C. EPA Recommendations to Further Improve the Rules

    The TSD for SDCAPCD Rule 67.11.1 describes additional rule 
revisions that do not affect EPA's current action but are recommended 
for the next time the local agency modifies the rules.

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 July 7, 2003, we will

[[Page 33637]]

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 August 4, 
2003. This action will incorporate these rules into the federally 
enforceable SIP and terminate permanently all sanction and Federal 
Implementation Plan obligations associated with our October 10, 2001 
limited disapproval action.
    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.
------------------------------------------------------------------------

IV. Stationary and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
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 action is also not subject to Executive Order 13211, 
``Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This 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 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 approves 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 (Pub. L. 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 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. This 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 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.).
    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 action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    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 August 4, 2003. 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 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Ozone, Reporting and 
recordkeeping requirements, Volatile organic compounds.

    Dated: April 28, 2003.
Alexis Strauss,
Acting Regional Administrator, Region IX.

0
Part 52, chapter I, title 40 of the Code of Federal Regulations is 
amended as follows:

[[Page 33638]]

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart F--California

0
2. Section 52.220 is amended by adding paragraphs (c)(307)(i)(C)(2) and 
(c)(312) to read as follows:


Sec.  52.220  Identification of plan.

* * * * *
    (c) * * *
    (307) * * *
    (i) * * *
    (C) * * *
    (2) Rule 67.11.1, adopted on September 25, 2002.
* * * * *
    (312) New and amended rules for the following districts were 
submitted on January 21, 2003, by the Governor's designee.
    (i) Incorporation by reference.
    (A) Bay Area Air Quality Management District.
    (1) Rules 8.5 and 8.18, amended on November 27, 2002, and adopted 
on January 1, 1978 and October 1, 1980, respectively.
* * * * *

[FR Doc. 03-13883 Filed 6-4-03; 8:45 am]
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