[Federal Register Volume 83, Number 209 (Monday, October 29, 2018)]
[Proposed Rules]
[Pages 54300-54303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23575]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R02-OAR-2018-0621, FRL-9985-87-Region 2]
Approval of Source-Specific Air Quality Implementation Plans; New
Jersey
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve source-specific revisions to the New Jersey State
Implementation Plan (SIP) for 8-hour ozone for Paulsboro Refining,
Buckeye Port Reading Terminal, Buckeye Pennsauken Terminal, and
Phillips 66 Company's Linden facility. The source-specific SIPs address
the Reasonably Available Control Technology for volatile organic
compounds (VOCs) for external floating roof tanks. The intended effect
of these revisions is to address how facilities should meet state
regulatory obligations for external floating roof tanks that store VOCs
with vapor pressure three (3) or more pounds per square inch absolute
to be equipped with a domed roof.
DATES: Comments must be received on or before November 28, 2018.
ADDRESSES: Submit your comments, identified by Docket ID number EPA-
R02-OAR-2018-0621, at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or withdrawn. The EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. The EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e., on the web, cloud, or other file sharing
system). For additional submission methods, such as the full EPA public
comment policy, information about CBI or multimedia submissions, and
general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Linda Longo, Air Programs Branch,
Environmental Protection Agency, 290 Broadway, 25th Floor, New York,
New York 10007-1866, (212) 637-3565, or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. The EPA's Evaluation of New Jersey's Submittals
a. Paulsboro Refining
b. Buckeye Port Reading Terminal and Buckeye Pennsauken Terminal
c. Phillips 66 Company
III. Proposed Action
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews
I. Background
The Environmental Protection Agency (EPA) proposes to approve
revisions to the New Jersey State Implementation Plan (SIP) for
attainment and maintenance of the 8-hour ozone National Ambient Air
Quality Standards (NAAQS) for the following major volatile organic
compound (VOC) facilities: Paulsboro Refining, Buckeye Port Reading
Terminal, Buckeye Pennsauken Terminal, and Phillips 66 Company's Linden
facility. Specifically, under New Jersey Administrative Code (NJAC),
Title 7, Chapter 27, Subchapter 16 (``Control and Prohibition of Air
Pollution by Volatile Organic Compound''), Section 2 (``VOC Stationary
Storage Tanks''), all external floating roof tanks (EFRTs) in Range III
with vapor pressure three (3) or more pounds per square inch absolute
(psia) and that were in existence on May 18, 2009 must be equipped with
a domed roof the first time the tank is degassed after May 19, 2009,
and by no later than May 1, 2020. See NJAC 7:27-16.2(l)(4). In
addition, NJAC 7:27-16.17(a-q) establishes procedures and standards for
alternative and facility-specific VOC control requirements. The four
relevant facilities were in existence on May 18, 2009, and so absent
the currently proposed SIP revisions would be required to dome all
EFRTs in accordance with NJAC 7:27-16.2(l)(4), which has already been
approved by the EPA into the New Jersey SIP. See 75 FR 45483 (August 3,
2010). However, the New Jersey Department of Environmental Protection
(NJDEP) reviewed and approved for these facilities alternative VOC
control plans and respective Reasonably Available Control Technology
(RACT), i.e., analysis of the lowest economically feasible emission
limitation, for their EFRTs.
Following NJDEP's review and approval, the EPA reviewed the four
facilities' alternative VOC control plans and RACT analyses that
include (1)
[[Page 54301]]
installing domes on 25 out of the 51 EFRTs, and leaving the remaining
26 EFRTs without domes based on the facilities' RACT cost analysis
despite the NJAC 7:27-16.2(l)(4) requirements, and (2) installing eight
domes after the regulatory due date.
In its SIP revision submittals from all four facilities, NJDEP also
identified alternative, non-doming emission reduction strategies for
VOC and nitrogen oxides (NOX) beyond what would be achieved
by doming the 26 EFRTs that would not receive domes under this SIP
revision. However, NJDEP did not request that the EPA approve these
additional non-doming measures into the New Jersey SIP revision, and
therefore the EPA did not evaluate them for approvability. A full
summary of doming and non-doming measures is included in the technical
support document (TSD) that is contained in the EPA's docket assigned
to this Federal Register notice.
Ozone Requirements
In 1997, the EPA revised the health-based NAAQS for 8-hour ozone,
setting it at 0.084 parts per million (ppm) averaged over an 8-hour
time frame. See 62 FR 38856 (July 18, 1997). The EPA revised the 8-hour
ozone standard twice since 1997; in March 2008, the EPA revised the
standard to 0.075 ppm, and in October 2015 the EPA revised it to 0.070
ppm while retaining the 2008 ozone indicators. See 73 FR 16436 (March
27, 2008); 80 FR 65292 (October 26, 2015). After the EPA establishes a
new or revised NAAQS, the Clean Air Act directs the EPA and the states
to take steps to ensure that the new or revised NAAQS are met. One of
the first steps, known as the initial area designations, involves
identifying areas of the country that are not meeting the new or
revised NAAQS, as well as the nearby areas that contain emissions
sources that contribute emissions to the areas not meeting the NAAQS.
The entire State of New Jersey has been designated as nonattainment
since the adoption of the 1997 8-hour ozone NAAQS and is divided into
two nonattainment areas. The two nonattainment areas in New Jersey are
Philadelphia-Wilmington-Atlantic City (PA-NJ-MD-DE) and New York-
Northern New Jersey-Long Island (NY-NJ-CT). These areas are designated
as marginal nonattainment and as moderate nonattainment, respectively,
for the newest 0.070 ppm 8-hour ozone NAAQS.\1\ As such, New Jersey has
developed ozone SIPs to attain the standards and will consider source-
specific SIPs as necessary. A source-specific SIP is submitted by a
facility to request approval for source-specific emission limitations,
and if approved by the state and the EPA, is incorporated into the
state's ozone SIP.
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\1\ Classifications of these areas for the current and previous
ozone NAAQS can be found at 40 CFR 81.331.
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RACT Requirements
RACT is defined as the lowest emission limit that a source is
capable of meeting by the application of control technology that is
reasonably available considering technological and economic
feasibility. Clean Air Act (CAA) sections 172(c)(1), 182(b)(2) and
182(f) require nonattainment areas that are designated as moderate or
above to adopt RACT. The entire State of New Jersey is subject to this
requirement (1) due to nonattainment area designations for the 8-hour
ozone standards (40 CFR 81.331), and (2) because the State of New
Jersey is located within the Ozone Transport Region (OTR), a region in
which the Clean Air Act requires that state SIPs implement RACT
requirements. See CAA Sec. 184(b)(1)(B).
In November 2005, the EPA published the final rule that discusses
the RACT requirements for the 1997 8-hour ozone standard, and outlined
the SIP requirements and deadlines for various areas designated as
moderate nonattainment. See 70 FR 71612 (November 29, 2005) (the
``Phase 2 Rule'').
On August 1, 2007, the NJDEP finalized RACT revisions to its SIP to
address the 8-hour ozone NAAQS, and the EPA approved those revisions on
May 15, 2009. See ``RACT for the Eight-Hour Ozone NAAQS and other
Associated SIP Revisions for the Fine Particulate Matter, Regional
Haze, and Transport of Air Pollution,'' available at http://www.nj.gov/dep/baqp/sip/8-hrRACT-Final.pdf; ``Approval and Promulgation of
Implementation Plans; New Jersey Reasonable Further Progress Plans,
Reasonably Available Control Technology, Reasonably Available Control
Measures and Conformity Budgets; Final Rule'', 74 FR 22837. The NJDEP
believes that significantly higher costs are warranted and should be
considered reasonable with respect to available technology than were
discussed in the Phase 2 Rule. Although no dollar amount is suggested,
the NJDEP identifies five considerations it plans to apply to sources
when determining RACT:
(1) Past New Jersey costs for retrofitting a given control;
(2) Average RACT cost (dollars per tons reduced) for a control
technology and maximum RACT cost. Once a reasonable number of sources
in a source category achieve a lower emission level, other sources
should do the same;
(3) The seriousness of the Region's ozone air quality exceedance.
For nonattainment areas with higher ozone levels, higher costs for
controls are reasonable;
(4) The seriousness of the need to reduce transported air
pollution. As an OTR state, higher costs for RACT are justified; and
(5) The NJDEP plan for addressing economic feasibility in RACT
rules.
The NJDEP's intent is to specify RACT at the lowest emission limit
that a reasonable number of similar facilities have already
successfully implemented for each source category.
II. The EPA's Evaluation of New Jersey's Submittals
New Jersey regulations at NJAC 7:27-16.2(l)(4), already approved
into the ozone SIP, set forth requirements to dome existing EFRTs in
Range III on or before May 1, 2020. See 75 FR 45483 (August 3, 2010).
The four facilities' source-specific SIP revisions are before the EPA
for approval because they would allow 26 EFRTs to avoid doming and
would extend the deadline for installing eight domes. The NJDEP
submittal relies on documents submitted by the four facilities to New
Jersey reviewing the cost, feasibility, and projected emissions
reductions of doming tanks similar in diameter when deciding which
tanks are optimal for doming. Some of the facilities' tanks are smaller
in dimension and contain organic liquids of lower VOC concentrations,
and thus doming these tanks would result in spending comparatively much
more for a substantially smaller reduction in VOC emissions.
The EPA has determined that the doming analyses identified in the
source-specific SIP revisions are consistent with the NJDEP's VOC RACT
regulation, which is incorporated into the NJ SIP. The reader is
referred to the TSD for a detailed discussion of the EPA's evaluation
of the source-specific SIP submittal. Below is a summary:
a. Paulsboro Refining
On December 10, 2015, the NJDEP submitted to the EPA proposed
revisions to the New Jersey SIP for ozone specifically providing an
alternative VOC control plan for the Paulsboro Refining facility
located at 800 Billingsport Road, Paulsboro, New Jersey. Paulsboro
Refining owns and operates 21 EFRTs in Range III with vapor pressure
three (3) or more psia.
[[Page 54302]]
According to the facility's RACT analysis, doming the total inventory
of 21 EFRT is estimated to cost between $19,000 and $149,000 per ton of
VOC emissions reduced. The cost per ton to dome all 21 EFRTs exceeds
what the state defines as economically feasible for RACT.
Proposed Paulsboro Refining Source-Specific Doming Requirements
The EPA is proposing to approve a source-specific SIP revision
allowing the facility not to dome eleven of its 21 EFRTs that are in
Range III, and to allow the facility to complete doming of five EFRTs
beyond the regulatory deadline of May 1, 2020. Paulsboro Refining has
already installed three domes (Tanks 724, 1319, and 1115), and will
install two additional domes (Tanks 2173 and 1064 \2\) by the
regulatory deadline. The facility is scheduled to install five more
domes by 2028 according to the following schedule:
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\2\ At the time NJDEP submitted its source-specific SIP revision
for Paulsboro Refining, Tank 1064 was scheduled for doming by
December 31, 2024. However, recent facility developments confirmed
by NJDEP indicate that Tank 1064 was taken out of service, rebuilt,
and is scheduled for doming by the end of 2018.
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Tank 1063 by Dec. 31, 2021
Tank 1116 by Dec. 31, 2023
Tank 1320 by Dec. 31, 2025
Tank 1065 by Dec. 31, 2026
Tank 1066 by Dec. 31, 2028
In total, under the proposed source-specific SIP revision, the
facility will dome ten out of 21 EFRTs in Range III, including Tanks
724, 1319, 1115, 2173, 1064, 1063, 1116, 1320, 1065 and 1066. The
eleven EFRTs not to be domed are Tanks 725, S02, 1023, 1027, 2869,
2940, 2941, 3174, SSO, SSI, and SS2.
b. Buckeye Port Reading Terminal and Buckeye Pennsauken Terminal
On August 15, 2014, the NJDEP submitted to the EPA proposed
revisions to the New Jersey SIP for ozone specifically providing an
alternative VOC control plan for both the Buckeye Port Reading Terminal
and Pennsauken Terminal, located at 750 Cliff Road, Woodbridge, New
Jersey and 123 Derousse Avenue, Pennsauken, New Jersey respectively.
Buckeye owns and operates eight EFRTs in Range III with vapor pressure
three (3) or more psia at its Port Reading Terminal that are part of
this proposed SIP revision,\3\ and one such EFRT at its Pennsauken
Terminal. According to company's Port Reading RACT analysis, doming the
facility's total inventory of eight EFRTs is estimated at $60,000 per
ton of VOC emissions reduced, which exceeds what the state defines as
economically feasible for RACT. The company's Pennsauken RACT analysis
likewise estimated the cost of doming its single EFRT at $60,000 per
ton of VOC emissions reduced.
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\3\ The Port Reading terminal previously had one additional
EFRT. However, under the proposed SIP revision Buckeye retrofitted
that Port Reading EFRT to an internal floating roof tank (Tank 1177)
due to changes in facility operational needs (and an internal
floating roof tank does not require a dome). Eight EFRTs now remain
at the facility that are covered by the proposed SIP revision.
In addition, the Port Reading Terminal has at least two
additional EFRTs (Tanks 7943 and 7944) that are not part of the
proposed SIP revision. In approximately 2012, the company fitted
these two Port Reading EFRTs with domes.
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Proposed Buckeye Source-Specific Doming Requirements
The EPA is proposing to approve a source-specific SIP revision
allowing the Port Reading facility not to dome four EFRTs that are in
Range III and to complete doming of two EFRTs beyond the regulatory
deadline of May 1, 2020.\4\ Of the eight relevant Port Reading EFRTs,
Buckeye has already domed one EFRT (Tank 7935) and will install one
additional dome (Tank 1222) by the regulatory deadline. Under this SIP
revision, the Buckeye facilities are scheduled to install domes on the
following EFRTs in Range III by 2028 according to the following
schedule:
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\4\ As discussed in the prior footnote, the proposed SIP
revision also includes conversion of Tank 1177 to an internal
floating roof tank that is no longer subject to doming requirements.
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Tank 1219 by March 8, 2027
Tank 1178 by Sept. 25, 2028
In addition, the EPA is proposing to approve a source-specific SIP
revision allowing the Pennsauken facility not to dome its single
relevant EFRT (Tank 2018).
In total, the two facilities will dome four out of nine EFRTs in
Range III, including Tanks 7935, 1222, 1219, and 1178. The 5 EFRTs not
to be domed are Tanks 7930, 7934, 7937, 7945, and 2018.
c. Phillips 66 Company
On June 15, 2016, the NJDEP submitted to the EPA proposed revisions
to the New Jersey SIP for ozone specifically providing an alternative
VOC control plan for the Phillips 66 Company facility located at 1400
Park Avenue, Linden, New Jersey (the Linden facility). At the Linden
facility, Phillips 66 Company owns and operates 21 EFRTs in Range III
with vapor pressure three (3) or more psia. According to the facility's
RACT analysis, doming the total inventory of 21 EFRTs is estimated to
cost between $29,000 and $440,000 per ton of VOC emissions reduced,
which exceeds what the state defines as economically feasible for RACT.
Proposed Phillips 66 Company's Linden Facility Source-Specific Doming
Requirements
The EPA is proposing to approve a source-specific SIP revision
allowing the Linden facility not to dome ten EFRTs that are in Range
III and to complete doming of one EFRT beyond the regulatory deadline
of May 1, 2020. The Linden facility has already installed domes on two
EFRTs (Tanks T233 and T239); three additional EFRTs are currently out
of service and ready for doming (Tanks T243, T351, and T250) and the
facility will install five additional domes (Tanks T241, T352, T235,
T249, and T353) by the regulatory deadline. The Linden facility is
scheduled to install a dome on one additional tank (Tank T234) by
December 31, 2024, beyond the regulatory due date.
In total, the facility will dome a total of eleven out of 21 EFRTs
in Range III, including Tanks T233, T239, T243, T351, T250, T241, T352,
T235, T249, T353 and T234. The 10 EFRTs not to be domed are Tanks T52,
TI05, TI19, TI43, T224, T349, T350, T354, T355, and T356.
III. Proposed Action
The NJDEP determined that the four facilities discussed above could
avoid doming 26 EFRTs because it was not economically feasible to dome
the four facilities' total inventory of 51 EFRTs. Specifically, the EPA
proposes to approve the NJDEP SIP revisions for 8-hour ozone to allow
the Paulsboro facility not to dome eleven EFRTs; the Buckeye facilities
not to dome five EFRTs; and the Phillips 66 Company facility not to
dome ten EFRTs. The EPA is also proposing to approve a deadline
extension for doming nine EFRTs, as previously discussed. This SIP
revision would still require the facilities to dome 25 EFRTs (and
convert one EFRT to an internal floating roof tank).
Additional non-doming measures will be implemented to make up the
foregone VOC emission reductions that would have occurred in doming the
full inventory of EFRTs. However, the NJDEP did not request that the
EPA approve the additional non-doming measures into the New Jersey SIP,
therefore the EPA did not evaluate them for approvability and proposes
no action on these measures today.
IV. Incorporation by Reference
In this rule, we are proposing to include in a final rule
regulatory text that includes incorporation by
[[Page 54303]]
reference. In accordance with the requirements of 1 CFR 51.5, we are
proposing to incorporate by reference the provisions described above in
Section III (Proposed Action).
The EPA has made, and will continue to make, these documents
generally available electronically through http://www.regulations.gov
and in hard copy at the appropriate EPA office (see the ADDRESSES
section of this preamble for more information).
V. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely proposes to approve state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this proposed action:
Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
Is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempted under
Executive Order 12866;
Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
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);
Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
Does not provide the EPA with the discretionary authority
to address, as appropriate, disproportionate human health or
environmental effects, using practicable and legally permissible
methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
In addition, this rule does not have tribal implications as
specified by Executive Order 13175, because the SIP is not approved to
apply in Indian country located in the state, and the EPA notes that it
will not impose substantial direct costs on tribal governments or
preempt tribal law. Thus, Executive Order 13175 does not apply to this
action.
List of Subjects 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Nitrogen Dioxide, Intergovernmental Relations, Ozone,
Reporting and recordkeeping requirements, Volatile Organic Compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: October 18, 2018.
Peter D. Lopez,
Regional Administrator, Region 2.
[FR Doc. 2018-23575 Filed 10-26-18; 8:45 am]
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