[Federal Register Volume 71, Number 94 (Tuesday, May 16, 2006)]
[Proposed Rules]
[Pages 28290-28293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7411]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2006-0225; FRL-8170-9]


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's (SCAQMD) portion of the California State 
Implementation Plan (SIP). These revisions concern oxides of nitrogen 
(NOX) and oxides of sulfur (SOx) emissions from facilities 
emitting 4 tons or more per year of NOX or SOx in the year 
1990 or subsequent year under the SCAQMD's Regional Clean Air 
Incentives Market (RECLAIM) program. 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.

DATES: Any comments must arrive by June 15, 2006.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2006-0225, by one of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the on-line instructions.
    2. E-mail: [email protected].
    3. Mail or deliver: Andrew Steckel (Air-4), U.S. Environmental 
Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 
94105-3901.
    Instructions: All comments will be included in the public docket 
without change and may be made available online at http://www.regulations.gov, including any personal information provided, 
unless the comment includes Confidential Business Information (CBI) or 
other information whose disclosure is restricted by statute. 
Information that you consider CBI or otherwise protected should be 
clearly identified as such and should not be submitted through http://www.regulations.gov or e-mail. http://www.regulations.gov is an 
``anonymous access'' system, and EPA will not know

[[Page 28291]]

your identity or contact information unless you provide it in the body 
of your comment. If you send e-mail directly to EPA, your e-mail 
address will be automatically captured and included as part of the 
public comment. If EPA cannot read your comment due to technical 
difficulties and cannot contact you for clarification, EPA may not be 
able to consider your comment.
    Docket: The index to the docket for this action is available 
electronically at http://www.regulations.gov and in hard copy at EPA 
Region IX, 75 Hawthorne Street, San Francisco, California. While all 
documents in the docket are listed in the index, some information may 
be publicly available only at the hard copy location (e.g., copyrighted 
material), and some may not be publicly available in either location 
(e.g., CBI). To inspect the hard copy materials, please schedule an 
appointment during normal business hours with the contact listed in the 
FOR FURTHER INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Lily Wong, EPA Region IX, (415) 947-
4114, [email protected].

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. Public Comment and Final Action
III. Statutory and Executive Order Reviews

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 the SCAQMD and submitted by the California 
Air Resources Board (CARB).

                                            Table 1.--Submitted Rules
----------------------------------------------------------------------------------------------------------------
        Local agency                    Rule                  Rule title         Adopted     Submitted
----------------------------------------------------------------------------------------------------------------
SCAQMD......................  2000..............................  General.............     05/06/05     10/20/05
SCAQMD......................  2001..............................  Applicability.......     05/06/05     10/20/05
SCAQMD......................  2002..............................  Allocations for          01/07/05     12/21/05
                                                                   Oxides of Nitrogen
                                                                   (NOX) and Oxides of
                                                                   Sulfur (SOx).
SCAQMD......................  2005..............................  New Source Review        05/06/05     10/20/05
                                                                   for RECLAIM.
SCAQMD......................  2007..............................  Trading Requirements     05/06/05     10/20/05
SCAQMD......................  2010..............................  Administrative           01/07/05     07/15/05
                                                                   Remedies and
                                                                   Sanctions.
SCAQMD......................  2011..............................  Requirements for         01/07/05     07/15/05
                                                                   Monitoring,
                                                                   Reporting, and
                                                                   Recordkeeping for
                                                                   Oxides of Sulfur
                                                                   (SOx) Emissions.
SCAQMD......................  2011 Protocol Appendix A..........  Appendix A: Protocol     05/06/05     10/20/05
                                                                   for Monitoring,
                                                                   Reporting, and
                                                                   Recordkeeping for
                                                                   Oxides of Sulfur
                                                                   (SOx) Emissions.
SCAQMD......................  2012..............................  Requirements for         01/07/05     07/15/05
                                                                   Monitoring,
                                                                   Reporting, and
                                                                   Recordkeeping for
                                                                   Oxides of Nitrogen
                                                                   (NOX) Emissions.
SCAQMD......................  2012 Protocol Appendix A..........  Appendix A--Protocol     05/06/05     10/20/05
                                                                   for Monitoring,
                                                                   Reporting, and
                                                                   Recordkeeping for
                                                                   Oxides of Nitrogen
                                                                   (NOX) Emissions.
----------------------------------------------------------------------------------------------------------------

    Prior to the submittal of the rules in Table 1, SCAQMD also adopted 
and submitted other revisions of these rules. While we can act on only 
the most recently submitted version, we have reviewed materials 
provided with previous submittals. EPA's technical support document 
(TSD) has more information about these interim superseded rules.
    On August 18, 2005, November 22, 2005, and March 20, 2006, 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?

    Table 2 lists the previous versions of these rules approved into 
the SIP.

                                 Table 2.--Current SIP Approved Version of Rules
----------------------------------------------------------------------------------------------------------------
        Rule                 Rule title         Adopted     Submitted         Approved FR citation
----------------------------------------------------------------------------------------------------------------
2000..........................  General..............     05/11/01     05/31/01  09/04/03, 68 FR 52512.
2001..........................  Applicability........     05/11/01     05/31/01  09/04/03, 68 FR 52512.
2002..........................  Allocations for           05/11/01     05/31/01  09/04/03, 68 FR 52512.
                                 Oxides of Nitrogen
                                 (NOX) and Oxides of
                                 Sulfur (SOX).
2005..........................  New Source Review for     04/20/01     10/30/01  09/04/03, 68 FR 52512.
                                 RECLAIM.
2007..........................  Trading Requirements.     12/05/03     02/20/04  07/26/04, 69 FR 44461.
2010..........................  Administrative            05/11/01     05/31/01  09/04/03, 68 FR 52512.
                                 Remedies and
                                 Sanctions.
2011..........................  Requirements for          12/05/03     02/20/04  07/26/04, 69 FR 44461.
                                 Monitoring,
                                 Reporting, and
                                 Recordkeeping for
                                 Oxides of Sulfur
                                 (SOX) Emissions.
2011 Protocol Appendix A......  Protocol for              03/16/01     05/31/01  09/04/03, 68 FR 52512.
                                 Monitoring,
                                 Reporting, and
                                 Recordkeeping for
                                 Oxides of Sulfur
                                 (SOX) Emissions.
2012..........................  Requirements for          12/05/03     02/20/04  07/26/04, 69 FR 44461.
                                 Monitoring,
                                 Reporting, and
                                 Recordkeeping for
                                 Oxides of Nitrogen
                                 (NOX) Emissions.
2012 Protocol Appendix A......  Protocol for              03/16/01     05/31/01  09/04/03, 68 FR 52512.
                                 Monitoring,
                                 Reporting, and
                                 Recordkeeping for
                                 Oxides of Nitrogen
                                 (NOX) Emissions.
----------------------------------------------------------------------------------------------------------------


[[Page 28292]]

C. What is the purpose of the submitted rule revisions?

    NOX helps produce ground-level ozone, smog and 
particulate matter, which harm human health and the environment. 
Section 110(a) of the CAA requires states to submit regulations that 
control NOX emissions. The RECLAIM program was initially 
adopted by SCAQMD in October 1993. The program established for many of 
the largest NOX and SOX facilities in the South 
Coast Air Basin regional NOX and SOX emissions 
caps which decline over time. The program was designed to provide 
incentives for sources to reduce emissions and advance pollution 
control technologies by giving sources added flexibility in meeting 
emission reduction requirements. A RECLAIM source's emissions may not 
exceed its holding of RECLAIM Trading Credits (RTCs) in any compliance 
year. A RECLAIM source may comply with this requirement by installing 
control equipment, modifying their activities, or purchasing RTCs from 
other facilities.
    The primary purposes of the 2005 amendments to the RECLAIM rules 
were to:
    (1) Lower the regional NOX emissions cap. Beginning with 
the 2007 compliance year, the regional NOX emissions cap 
would be lowered by 4 tons per day from the 2003 emissions levels to 
achieve additional NOX emission reductions for attainment. 
This program modification would also address California Health and 
Safety Code requirements on Best Available Retrofit Control Technology 
(BARCT).
    (2) Remove the remaining trading restrictions placed on the power 
producers.
    (3) Modify the monitoring, recordkeeping, and reporting 
requirements and protocols, including: adding a new NOX 
emission factor for micro-turbines, requiring large sources and process 
units equipped with stack flow monitors to measure exhaust flow rate, 
clarifying the required operating parameters for large sources and 
process units, clarifying the corresponding emission rates that are to 
be measured and reported, establishing missing data provisions on an 
hourly basis versus the previous daily requirement, allowing an 
alternative test to demonstrate compliance with RECLAIM NOX 
concentration limits, allowing a delay in the due date for Relative 
Accuracy Test Audits (RATA) for equipment that is operated 
intermittently, adding alternative methods of compliance testing for 
natural gas combustion sources with high oxygen content in the exhaust 
stream, allowing the reporting of emissions through the SCAQMD's 
Internet Web site, specifying that emission reports are due every 
quarter from sources that are not listed on the Facility Permit (such 
as contractor equipment, various location equipment, and equipment 
covered under applications), correcting typographical errors, and 
adding rule language clarifications.
    (4) Modify the NSR requirements for RECLAIM sources to allow 
sources to sell unused RTCs at the end of a quarter instead of the end 
of the compliance year, provided the source accepts an enforceable 
permit condition which establishes a quarterly emissions limitation.
    (5) Implement other administrative and clarifying changes. While 
ship emissions are not counted toward the applicability thresholds to 
determine if the source is subject to RECLAIM, the rule amendments 
clarify that ship emissions at a new or relocated RECLAIM facility 
subject to New Source Review is to be counted as part of the total 
emissions which must be offset. Because of recent changes in the state 
that requires the permitting and regulation of agricultural sources, 
the rule was amended to clarify that agricultural sources are exempt 
from the RECLAIM program.
    EPA's TSD 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 
182(f)), and must not relax existing requirements (see sections 110(l) 
and 193). The SCAQMD regulates a 1-hour ozone nonattainment area (see 
40 CFR 81), so Regulation XX (Rules 2000 to 2020) must fulfill RACT.
    Guidance and policy documents that we used to help evaluate 
enforceability and RACT requirements consistently include the 
following:
    1. ``State Implementation Plans; Nitrogen Oxides Supplement to the 
General Preamble; Clean Air Act Amendments of 1990 Implementation of 
Title I; Proposed Rule,'' (the NOX Supplement), 57 FR 55620, 
November 25, 1992.
    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. ``Improving Air Quality with Economic Incentive Programs,'' EPA-
452/R01-001, (the EIP guidance) January 2001.

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. While 
some of rule amendments could arguably be viewed as a rule relaxation 
(e.g. allowing sources to sell unused RTCs at the end of a quarter 
instead of at the end of the year), other rule amendments are 
strengthening (e.g. requiring such sources to be subject to a quarterly 
emissions limit in their permit, and clarifying that ship emissions, at 
a new or relocated RECLAIM facility subject to New Source Review, are 
part of total emissions which must be offset). Also, the amendments 
result in significant additional emission reductions through the 
lowering of the emissions cap in the year 2007. Consequently, EPA 
believes that the amendments on balance are strengthening. The TSD has 
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. We will accept comments from the public 
on this proposal for the next 30 days. Unless we receive convincing new 
information during the comment period, we intend to publish a final 
approval action that will incorporate these rules into the federally 
enforceable SIP.

IV. Statutory and Executive Order Reviews

    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 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 
proposed action merely proposes to approve 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

[[Page 28293]]

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 (Pub. L. 104-4).
    This proposed 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, Intergovernmental 
relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping 
requirements.

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

    Dated: April 27, 2006.
Wayne Nastri,
Regional Administrator, Region IX.
 [FR Doc. E6-7411 Filed 5-15-06; 8:45 am]
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