Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; Monterey Bay Unified Air Pollution Control District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA-71-3-6350; FRL-5094-8]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; Monterey Bay Unified Air Pollution

Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing to approve revisions to the California State

Implementation Plan (SIP) which concern the control of emissions of

volatile organic compounds (VOCs) from storage of organic liquids,

gasoline transfer operations, and steam drive wells. The intended

effect of proposing approval of these rules is to regulate emissions of

volatile organic compounds (VOCs) in accordance with the requirements

of the Clean Air Act, as amended in 1990 (CAA or the Act). EPA's final

action on this notice of proposed rulemaking (NPRM) will incorporate

these rules into the federally approved SIP. EPA has evaluated each of

these rules and is proposing to approve them under provisions of the

CAA regarding EPA action on SIP submittals, SIPs for national primary

and secondary ambient air quality standards and plan requirements for

nonattainment areas.

DATES: Comments must be received on or before November 21, 1994.

ADDRESSES: Comments may be mailed to: Daniel A. Meer, Rulemaking

Section (A-5-3), Air and Toxics Division, U.S. Environmental Protection

Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105.

Copies of the rule revisions and EPA's evaluation report of each

rule are available for public inspection at EPA's Region IX office

during normal business hours. Copies of the submitted rule revisions

are also available for inspection at the following locations:

California Air Resources Board, Stationary Source Division, Rule

Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814.

Monterey Bay Unified Air Pollution Control District, 24580

Silvercloud Court, Monterey, CA 93940.

FOR FURTHER INFORMATION CONTACT: Mae Wang, Rulemaking Section (A-5-3),

Air and Toxics Division, U.S. Environmental Protection Agency, Region

IX, 75 Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-

1200.

SUPPLEMENTARY INFORMATION:

Background

On March 3, 1978, EPA promulgated a list of ozone nonattainment

areas under the provisions of the Clean Air Act, as amended in 1977

(1977 CAA or pre-amended Act), that included the Monterey Bay Area. 43

FR 8964, 40 CFR 81.305. Because these areas were unable to meet the

statutory attainment date of December 31, 1982, California requested

under section 172(a)(2), and EPA approved, an extension of the

attainment date to December 31, 1987. 40 CFR 52.238. On May 26, 1988,

EPA notified the Governor of California, pursuant to section

110(a)(2)(H) of the pre-amended Act, that the above district's portions

of the California SIP were inadequate to attain and maintain the ozone

standard and requested that deficiencies in the existing SIP be

corrected (EPA's SIP-Call). On November 15, 1990, the Clean Air Act

Amendments of 1990 were enacted. Public Law 101-549, 104 Stat. 2399,

codified at 42 U.S.C. 7401-7671q. In amended section 182(a)(2)(A) of

the CAA, Congress statutorily adopted the requirement that

nonattainment areas fix their deficient reasonably available control

technology (RACT) rules for ozone and established a deadline of May 15,

1991 for states to submit corrections of those deficiencies.

Section 182(a)(2)(A) applies to areas designated as nonattainment

prior to enactment of the amendments and classified as marginal or

above as of the date of enactment. It requires such areas to adopt and

correct RACT rules pursuant to pre-amended section 172(b) as

interpreted in pre-amendment guidance.1 EPA's SIP-Call used that

guidance to indicate the necessary corrections for specific

nonattainment areas. The Monterey Bay Area is classified as

moderate2; therefore, this area was subject to the RACT fix-up

requirement and the May 15, 1991 deadline.

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\1\Among other things, the pre-amendment guidance consists of

those 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,

Clarification to Appendix D of November 24, 1987 Federal Register

Notice'' (Blue Book) (notice of availability was published in the

Federal Register on May 25, 1988); and the existing control

technique guidelines (CTGs).

\2\The Monterey Bay Area retained its designation of

nonattainment and was classified by operation of law pursuant to

sections 107(d) and 181(a) upon the date of enactment of the CAA.

See 56 FR 56694 (November 6, 1991).

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This document addresses EPA's proposed action for the following

rules from the Monterey Bay Unified Air Pollution Control District

(MBUAPCD): Rule 417, Storage of Organic Liquids; Rule 418, Transfer of

Gasoline into Stationary Storage Containers; and Rule 427, Steam Drive

Crude Oil Production Wells. On June 8, 1993, the State of California

was issued a finding of nonsubmittal for the above rules, thus starting

an 18 month sanctions clock under section 179(a) of the CAA. In

addition, section 110(c) of the Act provides that EPA promulgate a

Federal Implementation Plan (FIP) no later than two years after a

finding under section 179(a). The rules being acted upon in this

document were adopted by the MBUAPCD on August 25, 1993 and were

submitted by the State of California to EPA on November 18, 1993. The

mandatory sanctions clock was stopped on December 23, 1993 when EPA

determined that the State had made a complete submittal pursuant to

EPA's completeness criteria that are set forth in 40 CFR part 51,

appendix V.3 By this document, EPA is proposing to approve these

rules into the SIP. Final approval of these rule revisions will

incorporate the regulations into the federally approved SIP and stop

the FIP clock.

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\3\EPA adopted the completeness criteria on February 16, 1990

(55 FR 5830) and, pursuant to section 110(k)(1)(A) of the CAA,

revised the criteria on August 26, 1991 (56 FR 42216).

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Rule 417 controls VOCs associated with organic liquid storage, and

Rule 418 controls VOCs during the transfer of gasoline from delivery

vessels into storage containers. Rule 427 controls emissions from oil

wells where production has been enhanced by steam injection. VOCs

contribute to the production of ground level ozone and smog. The rules

were adopted as part of the District's efforts to achieve the National

Ambient Air Quality Standard (NAAQS) for ozone and in response to the

section 182(a)(2)(A) CAA requirement. The following is EPA's evaluation

and proposed action for these rules.

EPA Evaluation and Proposed Action

In determining the approvability of a VOC rule, EPA must evaluate

the rule for consistency with the requirements of the CAA and EPA

regulations, as found in section 110 and part D of the CAA and 40 CFR

part 51 (Requirements for Preparation, Adoption, and Submittal of

Implementation Plans). The EPA interpretation of these requirements,

which forms the basis for today's action, appears in the various EPA

policy guidance documents listed in footnote 1. Among those provisions

is the requirement that a VOC rule must, at a minimum, provide for the

implementation of RACT for stationary sources of VOC emissions. This

requirement was carried forth from the pre-amended Act.

For the purpose of assisting state and local agencies in developing

RACT rules, EPA prepared a series of Control Technique Guideline (CTG)

documents. The CTGs are based on the underlying requirements of the Act

and specify the presumptive norms for what is RACT for specific source

categories. Under the CAA, Congress ratified EPA's use of these

documents, as well as other Agency policy, for requiring States to

``fix-up'' their RACT rules. See section 182(a)(2)(A). The CTG

documents applicable to Rule 417 are entitled, ``Control of Volatile

Organic Emissions from Petroleum Liquid Storage in External Floating

Roof Tanks,'' EPA-450/2-78-047 and ``Control of Volatile Organic

Emissions from Petroleum Liquid Storage in Fixed Roof Tanks,'' EPA-450/

2-77-036. The CTG documents applicable to Rule 418 are ``Control of

Volatile Organic Compound Leaks from Gasoline Tank Trucks and Vapor

Collection Systems,'' EPA-450/2-78-051 and ``Control of Volatile

Organic Emissions from Bulk Gasoline Plants,'' EPA-450/2-77-035. For

some source categories, such as steam-enhanced oil production wells,

EPA did not publish a CTG. In such cases, the District makes a

determination of what controls are required to satisfy the RACT

requirement by reviewing the operations of facilities within the

affected source category. In that review, the technological and

economic feasibility of the proposed controls are considered.

Additionally, for both CTG and non-CTG rules, the District may rely on

EPA policy documents, such as the Blue Book, to ensure that the adopted

rules are fully enforceable and strengthen or maintain the SIP.

MBUAPCD Rule 417, Storage of Organic Liquids, includes the

following significant changes from the current SIP:

1. Gap requirements for vapor-mounted primary seals have been

added.

2. Recordkeeping, definitions, and test methods have been added.

MBUAPCD Rule 418, Transfer of Gasoline into Stationary Storage

Containers, includes the following major changes from the SIP:

1. An exemption for agricultural tanks has been revised to be

consistent with EPA policy.

2. Recordkeeping, definitions, and test methods have been added.

3. Executive Officer discretion in determining equivalence of

emission controls has been deleted.

MBUAPCD Rule 427, Steam Drive Crude Oil Production Wells, includes

the following significant changes from the SIP:

1. Operational and repair requirements have been added.

2. Definitions, reporting, recordkeeping, and test methods have

been added.

3. Executive Officer discretion in determining compliance

equivalency has been deleted.

EPA has evaluated the submitted rules and has determined that they

are consistent with the CAA, EPA regulations, and EPA policy.

Therefore, MBUAPCD Rule 417, Rule 418, and Rule 427 are being proposed

for approval under section 110(k)(3) of the CAA as meeting the

requirements of section 110(a) and part D.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

revision to any state implementation plan. Each request for revision to

the state implementation plan shall be considered separately in light

of specific technical, economic, and environmental factors and in

relation to relevant statutory and regulatory requirements.

Regulatory Process

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. 5 U.S.C. 603 and 604.

Alternatively, EPA may certify that the rule will not have a

significant impact on a substantial number of small entities. Small

entities include small businesses, small not-for-profit enterprises and

government entities with jurisdiction over populations of less than

50,000.

SIP approvals under sections 110 and 301 and subchapter I, part D

of the CAA do not create any new requirements, but simply approve

requirements that the State is already imposing. Therefore, because the

Federal SIP-approval does not impose any new requirements, it does not

have a significant impact on any small entities affected. Moreover, due

to the nature of the Federal-state relationship under the CAA,

preparation of a regulatory flexibility analysis would constitute

Federal inquiry into the economic reasonableness of state action. The

CAA forbids EPA to base its actions concerning SIPs on such grounds.

Union Electric Co. v. U.S. E.P.A., 427 U.S. 246, 256-66 (S.Ct. 1976);

42 U.S.C. 7410(a)(2).

The Office of Management and Budget (OMB) has exempted this

regulatory action from Executive Order 12866 review.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental relations, Ozone, Reporting and recordkeeping

requirements.

Authority: 42 U.S.C. 7401-7671q.

Dated: October 11, 1994.

John Wise,

Acting Regional Administrator.

[FR Doc. 94-26198 Filed 10-20-94; 8:45 am]

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