Approval and Promulgation of Implementation Plans; Louisiana State Implementation Plan Revision; Major Source Definition Corrections for Reasonably Available Control Technology (RACT) Rules; Volatile Organic Compounds (VOC) RACT Catch-ups

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[LA-8-1-5733; FRL-4861-7]

Approval and Promulgation of Implementation Plans; Louisiana

State Implementation Plan Revision; Major Source Definition Corrections

for Reasonably Available Control Technology (RACT) Rules; Volatile

Organic Compounds (VOC) RACT Catch-ups

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The EPA is proposing to approve revisions to the Louisiana

State Implementation Plan (SIP) adopted by the Louisiana Department of

Environmental Quality on October 20, 1992. The Governor of Louisiana

submitted these revisions to the EPA on November 10, 1992. This SIP

revision contains regulations which require the implementation of RACT

for various types of VOC sources. These revisions are necessitated by

the inclusion of Livingston Parish in the Baton Rouge nonattainment

area, and the removal of the distinction between rural and urban ozone

nonattainment areas, called for by the Clean Air Act Amendments (CAAA)

of 1990. In addition, the rules have been revised to reflect the

lowering of the major source definition from 100 tons per year to 50

tons to insure all major sources adopt RACT. This action is being taken

under section 110 and subchapter I, part D, of the Clean Air Act (CAA),

as amended in 1990.

DATES: Comments on this proposed action must be received in writing by

May 11, 1994.

ADDRESSES: Comments should be mailed to Thomas H. Diggs, Chief, Air

Planning Section (6T-AP), USEPA, Region 6, 1445 Ross Avenue, Dallas,

Texas 75202-2733. Copies of the State's submittal and other information

are available for inspection during normal hours at the above location

and at the following locations:

U.S. Environmental Protection Agency, Region 6, Air Programs Branch

(6T-A), 1445 Ross Avenue, suite 700, Dallas, Texas 75202-2733.

Louisiana Department of Environmental Quality, Air Quality

Division, 7290 Bluebonnet Boulevard, Baton Rouge, Louisiana 70810.

Anyone wishing to review these documents at the USEPA office is

asked to contact the person below to schedule an appointment 24 hours

in advance.

FOR FURTHER INFORMATION CONTACT: Mr. Mick Cote, Planning Section (6T-

AP), Air Programs Branch, U.S. Environmental Protection Agency, Region

6, 1445 Ross Avenue, Dallas, Texas 75202-2733, telephone (214) 655-

7219.

SUPPLEMENTARY INFORMATION:

Background

Under the pre-amended Clean Air Act, ozone nonattainment areas were

required to adopt RACT rules for sources of VOC emissions. The EPA

issued three sets of control technique guideline (CTG) documents,

establishing a ``presumptive norm'' for RACT for various categories of

VOC sources. The three sets of CTGs were: (1) Group I--those issued

before January 1978 (15 CTGs); (2) Group II--those issued in 1978 (nine

CTGs); and (3) Group III--those issued in the early 1980's (five CTGs).

Those sources not covered by a CTG were called non-CTG sources. The EPA

determined that the area's attainment date determined which RACT rules

that the area needed to adopt and implement. Under CAA section 172,

ozone nonattainment areas were generally required to attain the ozone

standard by December 31, 1982. Those areas that submitted an attainment

demonstration projecting attainment by that date were required to adopt

RACT for sources covered by the Group I and II CTGs. Those areas that

sought an extension of the attainment date to as late as December 31,

1987, under CAA section 172 were required to adopt RACT for all CTG

sources and for all major non-CTG sources.

The Baton Rouge serious nonattainment area consists of six

parishes-East and West Baton Rouge, Ascension, Iberville, Livingston,

and Pointe Coupee. Under the pre-amended Act, the EPA designated the

Baton Rouge area as nonattainment. This area included East and West

Baton Rouge Parishes. The State established a pre-enactment attainment

date of 1982 for the Baton Rouge nonattainment area and, therefore,

RACT was required for Group I and Group II CTGs.

However, the Baton Rouge area did not attain the ozone standard by

the 1982 attainment date. Therefore, the area was called upon to adopt

the Group III CTGs. The area, however, continued to exceed the ozone

standard. On May 26, 1988, the EPA notified the Governor of Louisiana

that portions of the SIP were inadequate to attain and maintain the

ozone standard and requested that deficiencies in the existing SIP be

corrected (EPA's post-1987 SIP call). The SIP planning called for the

air quality area to be expanded to include the entire Metropolitan

Statistical Area (MSA). This decision was based on the conclusion that

the parameters considered in defining the areas that comprise the MSA

are basically the same factors that influence the formation of ozone,

namely large population centers and high commuter activity and that

sources (e.g., vehicles) throughout the MSA contribute to the area's

nonattainment. Consequently, Ascension, St. James1,

Iberville2, Livingston, and Pointe Coupee Parishes were included

in the SIP call area. On November 15, 1990, amendments to the 1977 CAA

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 pre-enactment ozone

nonattainment areas that retained their designation of nonattainment

and were classified as marginal or above, fix their deficient RACT

rules for ozone by May 15, 1991. The Baton Rouge area retained its

designation of nonattainment and was classified as serious (56 FR

56694-November 6, 1991). Louisiana corrected these rules in a series of

submissions. These rules were proposed for approval on September 30,

1992 (see 57 FR 45012). Pre-amendment guidance distinguished between

urban and rural nonattainment areas, ``urban'' and ``rural'' being

defined by population. Since urban areas were believed to need more

controls than rural areas, and CTGs were not meant to be all-

encompassing, States also had to develop RACT for non-CTG sources in

urban nonattainment areas. For the purposes of the post-1987 SIP calls,

East and West Baton Rouge Parishes were urban nonattainment, and

Ascension, Iberville, Pointe Coupee, and St. James Parishes were rural

nonattainment. The distinction between urban and rural did not affect

most of these revisions because, generally, Louisiana adopted rules on

a statewide basis. But it should be noted that some of the rules did

not apply to the same degree in all of the parishes covered by the

post-1987 SIP calls.

---------------------------------------------------------------------------

\1\Air monitoring data since the post-1987 SIP call indicates

that St. James Parish may have attained the National Ambient Air

Quality Standards (NAAQS) for ozone. It has retained its

nonattainment designation but is classified as an incomplete data

area. Therefore, St. James Parish is not subject to section

182(a)(2)(A) of the amended act. Louisiana has, however, corrected

any deficiencies regarding enforceability of existing rules

applicable to St. James Parish, which is a requirement before the

parish can be redesignated to attainment. See the General Preamble

57 FR 13498, at 13525 (April 16, 1992).

\2\Although Iberville and Pointe Coupee were not part of the

MSA, the EPA included these parishes in the SIP call area because of

their proximity to the MSA and their nonattainment status based upon

the most recent air monitoring data.

---------------------------------------------------------------------------

Section 182(b)(2) of the amended CAA requires States to adopt RACT

rules for all areas designated nonattainment for ozone and classified

as moderate or above. There are three parts to the section 182(b)(2)

RACT requirement: (1) RACT for sources covered by an existing CTG--

i.e., a CTG issued prior to the enactment of the CAAA of 1990; (2) RACT

for sources covered by a post-enactment CTG; and (3) RACT for all major

sources not covered by a CTG. This RACT requirement mandates that

nonattainment areas that previously were exempt from certain VOC RACT

requirements ``catch up'' to those nonattainment areas that became

subject to those requirements during an earlier period. In addition, it

requires newly designated ozone nonattainment areas to adopt RACT rules

consistent with those for previously designated nonattainment areas.

The major source definition for serious areas has been lowered

under the amended CAA to sources that emit or have the potential to

emit 50 tons per year (TPY) or greater of VOCs. Therefore, since the

Baton Rouge area is designated as serious, the State was required to

adopt RACT rules for all sources in the area which exceed this cut-off.

Prior to revision, two CTG source categories did not require controls

down to the 50 TPY level-petroleum drycleaners and graphic arts

sources. The Baton Rouge nonattainment area inventory does not contain

any major sources (potential to emit 50 TPY or greater) of petroleum

drycleaners. To meet the requirements of the CTG major source

definition, the State extended the applicability of RACT rules for

graphic arts sources to sources with a potential to emit 50 TPY and

greater. The Louisiana Department of Environmental Quality (LDEQ) also

reduced the cut-off exemption to 50 TPY (potential to emit) in some

existing regulations applicable to the Baton Rouge nonattainment area.

However, for non-CTG sources, Louisiana Administrative Code

(LAC):33:III.2115(H) changed the cutoff exemption to 50 TPY, rather

than 50 TPY potential to emit as required by the major source

definition in the CAA section 182(c). Therefore, EPA's approval of

LAC:33:III.2115(H) is contingent on the State's submission to EPA of a

negative declaration stating that no non-CTG sources exist in the Baton

Rouge nonattainment area which have a potential to emit of 50 TPY or

more of VOCs, and that none are expected.

In addition to the pre-enactment nonattainment area retaining its

nonattainment designation, the EPA also extended the nonattainment area

boundaries to include Livingston Parish (56 FR 56694), because all

portions of an MSA must be included in serious and above nonattainment

areas. Therefore, Livingston Parish is subject to RACT as defined in

section 182(b)(2). And, under the RACT catch-up provision of section

182(b)(2) and (c), the State was required, for Livingston Parish, to

submit RACT rules covering all pre-enactment CTGs, to identify all

sources that the State anticipates will be covered by a post-enactment

CTG, and to submit non-CTG rules for all remaining major sources,

including those with a potential to emit 50 TPY or greater of VOC

emissions. An explanation of which rules have been revised to include

Livingston Parish is addressed below under the heading EPA Evaluation.

VOCs contribute to the production of ground level ozone and smog.

Therefore, rules were required as part of an effort to achieve the

NAAQS for ozone. The following is the EPA's evaluation and proposed

action for Louisiana Air Code: Title 33: Rules 2103, Storage of

Volatile Organic Compounds; 2109, Oil/Water Separation; 2115, Waste Gas

Disposal; 2123, Organic Solvents; 2125, Vapor Degreasers; 2131, Filling

of Gasoline Storage Vessels; 2135, Bulk Gasoline Terminals; 2143,

Graphic Arts (Printing) by Rotogravure and Flexographic Processes.

EPA Evaluation

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

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

the 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 various EPA policy

guidance documents.

To evaluate these rules, the EPA used the CTGs and ``Issues

Relating to VOC Regulation Cutpoints, Deficiencies and Deviations''

(Clarification to Appendix D. of November 24, 1987: 52 FR 45044). In

general, the technical review of these rules was completed for the RACT

``fix-up'' approval. For further information, see the RACT ``fix-up''

Technical Support Document. Further technical review was not necessary

because changes only extend the geographic coverage of existing rules

and lower the existing source cutoffs to be consistent with CAA

requirements.

The following rule revisions have been submitted, and the EPA

proposes full approval:

LAC:33:III.2103, 2109, 2115, 2131, 2135. Changes were made to these

rules to include the nonattainment parish of Livingston. Under the

CAAA of 1990, Livingston Parish became part of the Baton Rouge MSA

and hence a part of the nonattainment area.

LAC:33:III.2123, 2125, 2143. Changes were made to these rules to

include those parishes that were exempted from certain RACT

requirements due to their ``rural'' classification. RACT catch-up

removes the distinction between ``urban'' and ``rural''

nonattainment areas. Included parishes are Ascension, Iberville, and

Pointe Coupee.

LAC:33:III.2143. Graphic Arts (Printing) by Rotogravure and

Flexographic Processes. Section 182(b)(2)(C) of the CAAA requires

the institution of RACT for all major sources. This rule was revised

to be applicable to sources with a potential to emit at least 50 TPY

of VOCs to insure all major sources are covered by RACT.

LAC:33:III.2115(H). Waste Gas Disposal Exemptions. This rule was

revised to insure that all non-CTG major sources adopt RACT. The

revision covers sources with at least 50 TPY of VOC emissions. This

revision in itself does not fully satisfy section 182 (b)(2)(c),

since the revision does not identify those sources with a

``potential to emit'' 50 TPY. As mentioned previously, the State

must present a negative declaration concerning non-CTG major sources

in the Baton Rouge nonattainment area for final approval of these

revisions to proceed. Additionally, this rule is designed to exempt

waste gas streams that are small and are not part of the emissions

of certain facilities. Changes were made to the exemptions portion

of this rule to allow for the State to grant exemptions to the Waste

Gas Disposal rule requirements without the need for EPA approval if

specific emissions criteria are met. Prior to this revision, EPA

evaluation of all exemption requests was required. However, since

certain emission levels are specifically quantified for exemptions,

the EPA believes it is unnecessary to review applications based on

emission level criteria. However, the EPA must still evaluate and

approve any exemption application that is based on economic, safety,

or impractical considerations.

Proposed Action

The EPA has evaluated the State's submittal for consistency with

the CAA, EPA regulations, and EPA policy. The EPA has determined that

the proposed rules, with the exception of LAC:33:III. 2115, meet the

CAA's requirements and today is proposing approval under section

110(k)(3) of the above mentioned rules and is soliciting public

comments. Final approval of these revisions will be based upon receipt

by EPA of the aforementioned letter of negative declaration for major

non-CTG sources in the Baton Rouge area. Comments submitted will be

considered before taking final action. Interested parties may

participate in the Federal rulemaking procedure by submitting written

comments to the EPA Regional Office listed in the ADDRESSES section of

this action.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

revision to any SIP. Each request for revision to the SIP 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., the 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, under 5 U.S.C. 605(b), the EPA may certify that the rule

will not have a significant impact on a substantial number of small

entities (see 46 FR 8709). Small entities include small businesses,

small not-for-profit enterprises, and government entities with

jurisdiction over population of less than 50,000.

SIP approvals under section 110 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, I certify that 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 the EPA to base its actions concerning SIPs on such grounds

(Union Electric Co. v. U.S. EPA, 427 U.S. 246, 256-66 (1976); 42 U.S.C.

7410(a)(2)).

Executive Order 12291

This action has been classified as a table two action by the

Regional Administrator under the procedures published in the Federal

Register on January 19, 1989 (54 FR 2214-2225). On January 6, 1989, the

Office of Management and Budget (OMB) waived table two and three SIP

revisions from the requirements of section three of Executive Order

12291 for a period of two years (54 FR 2222). The EPA has submitted a

request for a permanent waiver for table two and three SIP revisions.

The OMB has agreed to continue the waiver until such time as it rules

on the EPA's request. This request continues in effect under Executive

Order 12866, which superseded Executive Order 12291 on September 30,

1993.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Incorporation by reference, Intergovernmental regulations, Reporting

and recordkeeping, Ozone, and Volatile organic compounds.

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

Dated: March 31, 1994.

Joe D. Winkle,

Acting Regional Administrator.

[FR Doc. 94-8578 Filed 4-8-94; 8:45 am]

BILLING CODE 6560-50-F