[Federal Register Volume 68, Number 165 (Tuesday, August 26, 2003)]
[Rules and Regulations]
[Pages 51181-51184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21590]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA267-0402a; FRL-7526-6]


Revisions to the California State Implementation Plan, South 
Coast Air Quality Management 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 
South Coast Air Quality Management District (SCAQMD) portion of the 
California State Implementation Plan (SIP). These revisions concern 
volatile organic compound (VOC) emissions from general spray coating 
operations, surfactant manufacturing, and storage tanks at petroleum 
facilities. 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 October 27, 2003, without further 
notice, unless EPA receives adverse comments by September 25, 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; and,
    South Coast Air Quality Management District, 21865 East Copley 
Drive, Diamond Bar, CA 91765.

    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 rules?
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. Statutory 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 to EPA by the 
California Air Resources Board (CARB).

                                            Table 1.--Submitted Rules
----------------------------------------------------------------------------------------------------------------
          Local agency             Rule No.                   Rule title                  Adopted     Submitted
----------------------------------------------------------------------------------------------------------------
SCAQMD                                 481     Spray Coating Operations...............     01/11/02     05/21/02
SCAQMD                                1141.2   Surfactant Manufacturing...............     01/11/02     05/21/02
SCAQMD                                1178     Further Control of VOC Emissions from       12/21/01     05/21/02
                                                Storage Tanks at Petroleum Facilities.
----------------------------------------------------------------------------------------------------------------

    On August 6, 2002, EPA found these rule submittals met the 
completeness criteria in 40 CFR part 51, appendix V. These criteria 
must be met before formal EPA review can begin.

B. Are There Other Versions of These Rules?

    We approved versions of SCAQMD rules 481 and 1141.2 into the SIP on 
February 12, 2002 (see 67 FR 6410). Between these SIP incorporations 
and today, CARB has made no intervening submittals of these SCAQMD 
rules. SCAQMD rule 1178 has not been approved into the SIP.

C. What Is the Purpose of the Submitted Rules?

    SCAQMD rule 481 is a rule specifying the conditions for using spray 
painting or spray coating equipment as well as exemptions from these 
conditions. These exemptions can be divided between volumetric cut-offs 
and specified coating operations that are too difficult or unwieldy to 
be performed within a spray booth enclosure. SCAQMD's January 11, 2002, 
amendments to rule 481 included these significant changes to the 
version within the SIP.

--New sections were added for applicability, definitions, and test 
methods.
--Thirteen new definitions were added.
--High volume, low pressure (HVLP) coating was added as an acceptable 
coating application method.
--The test method section was updated to include standardized language 
concerning alternative methods to determine transfer efficiency, 
violations under multiple test methods in the rule, and revised test 
methods.
--Rule 109--Recordkeeping is referenced so as to require a source to 
keep records supporting the use of two exemptions.
--Finally, an exemption was added for extreme high gloss topcoats used 
in the marine pleasure craft industry.

    SCAQMD rule 1141.2 prohibits manufacturing of surface-active agents 
such as detergents, wetting agents and emulsifiers unless certain 
emission requirements and work practices are met. SCAQMD's January 11, 
2002, amendments to rule 1141.2 included these significant changes to 
the November 17, 2000, version within the SIP.

--New sections were added for applicability, definitions, and test 
methods.
--Several new definitions were added.

[[Page 51182]]

--The test method section was updated to include methods for 
determining capture, control, and overall emission control equipment 
efficiency, an allowance for equivalent test methods with SCAQMD, CARB, 
and EPA approval, and a statement that a violation may exist under any 
one of the rule's test methods.
--Finally, rule 109--Recordkeeping is referenced as part of requiring a 
source to have records supporting a source size exemption.

    SCAQMD rule 1178 applies additional controls to reduce VOC 
emissions at petroleum facilities. VOCs are emitted during the filling, 
storage, and emptying of large tanks at these petroleum facilities. 
Rule 1178 applies to facilities emitting more than 20 tons/year of VOCs 
that have storage tanks larger than 19,815 gallons storing organic 
liquids with a true vapor pressure greater than or equal to 0.1 psi. 
The rule establishes vapor pressure containment and control 
requirements for organic liquid storage tanks. Tanks and systems of 
tanks must have a vapor recovery system that recovers at least 95% of 
ROC vapors by weight or combusts excess vapors. Also, rule 1178 sets 
specific requirements for vapor loss control devices, external floating 
roofs, and internal floating roofs. Rule 1178 includes the following 
provisions:

--Purpose and applicability;
--Definitions of terms used within the rule;
--Emission reduction requirements;
--Identification, monitoring, and maintenance requirements;
--Test methods for determining compliance with the rule; and,
--Exemptions from the rule.

    Rule 1178 augments SCAQMD Rule 463--Organic Liquid Storage. While 
some of rule 1178's requirements are duplicative, many requirements are 
additive and more stringent. For example, rule 1178 requires emission 
control systems for fixed roof tanks storing liquid with a TVP of 0.1 
psia, domes for external floating roof tanks storing a liquid with a 
TVP greater than or equal to 3 psia, and increased gasketing and rim-
seal requirements for external floating roof tanks storing a liquid 
with a TVP less than 3 psia. Also, monitoring requirements are more 
stringent for external floating roof and fixed roof tanks.
    The TSD for the subject rule has 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), 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 
SCAQMD regulates an ozone nonattainment area (see 40 CFR part 81), so 
these rules 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,'' EPA, May 25, 1988 (the Bluebook).
    3. ``Guidance Document for Correcting Common VOC & Other Rule 
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).
    4. ``Control of Volatile Organic Emissions from Petroleum Liquid 
Storage in External Floating Roof Tanks,'' EPA-450/2-78-047, USEPA, 
December 1978; and,
    5. ``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 these rules are consistent with the relevant policy and 
guidance regarding enforceability, RACT, and SIP relaxations. Rule 
481's requirements remain unchanged compared to the SIP version of the 
rule. The amendments to the rule strengthen and update test method and 
record keeping portions of the rule. The exemption for high gloss 
topcoats will result in an insignificant amount of particulate matter 
being released while remaining consistent with the VOC limits in SCAQMD 
rule 1106.1--Pleasure Craft Coating Operations. Rule 1141.2's emission 
limits and work practices remain unchanged compared to the SIP version 
of the rule. The test method and recordkeeping sections of the rule 
have been strengthened and made more specific. Finally, Rule 1178's 
requirements are enforceable and the rule contains adequate monitoring 
and maintenance provisions for monitoring compliance of regulated 
facilities.
    The subject TSD for each rule has more information on our 
evaluation.

C. EPA Recommendations To Further Improve the Rules

    We have no recommendations 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 September 25, 2003, 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 October 27, 2003. This action 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.

[[Page 51183]]



                Table 2.--Ozone Nonattainment Milestones
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                Date                                Event
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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. Statutory 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 (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 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 October 27, 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 section 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: June 12, 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:

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 paragraph (c)(310)(i)(B)(1) to 
read as follows:


Sec.  52.220  Identification of plan.

* * * * *
    (c) * * *
    (310) * * *
    (i) * * *
    (B) South Coast Air Quality Management District.
    (1) Rule 1178 adopted on December 21, 2001; Rule 481 adopted on 
October 7, 1977 and amended on January 11, 2002; and, Rule 1141.2 
adopted on July

[[Page 51184]]

6, 1984 and amended on January 11, 2002.
* * * * *
[FR Doc. 03-21590 Filed 8-25-03; 8:45 am]
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