Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; Placer County Air Pollution Control District and Ventura County Air Pollution Control District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 78-1-6814; FRL-5195-7]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; Placer County Air Pollution Control

District and Ventura County Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking (NPRM).

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

Implementation Plan (SIP) for ozone which concern the control of oxides

of nitrogen (NOX) from gas turbines and internal combustion

engines. The intended effect of proposing approval of these rules is to

regulate emissions of NOX 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 will incorporate these

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

and is proposing to approve them under provisions of the CAA regarding

EPA actions on SIP submittals, SIPs for national primary and secondary

ambient air quality standards, and plan requirements for nonattainment

areas.

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

or before May 24, 1995.

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

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

Agency, Region 9, 75 Hawthorne Street, San Francisco, CA 94105-3901.

Please refer to document number CA 78-1-6814 in all correspondence.

Copies of the rules and EPA's evaluation report of each rule are

available for public inspection at EPA's Region 9 office during normal

business hours. Copies of the submitted rules are also available for

inspection at the following locations:

[[Page 20067]] California Air Resources Board, Stationary Source

Division, Rule Evaluation Section, 2020 ``L'' Street, Sacramento, CA

95814.

Placer County Air Pollution Control District, 11464 B Avenue, Auburn,

CA 95603.

Ventura County Air Pollution Control District, 669 County Square Drive,

Ventura, CA 93003.

FOR FURTHER INFORMATION CONTACT: Duane F. James, Rulemaking Section (A-

5-3), Air and Toxics Division, U.S. Environmental Protection Agency,

Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901,

Telephone: (415) 744-1191.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being proposed for approval into the California SIP

include: Placer County Air Pollution Control District's (PCAPCD) Rule

250, ``Stationary Gas Turbines,'' and Ventura County Air Pollution

Control District's (VCAPCD) Rule 74.9, ``Stationary Internal Combustion

Engines.'' These rules were submitted by the California Air Resources

Board (ARB) to EPA on March 29, 1994 (Rule 74.9) and October 19, 1994

(Rule 250).

Background

On November 15, 1990, the Clean Air Act Amendments of 1990 (CAA)

were enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C.

7401-7671q. The air quality planning requirements for the reduction of

NOX emissions through reasonably available control technology

(RACT) are set out in section 182(f) of the CAA. On November 25, 1992,

EPA published a NPRM entitled, ``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) which describes the requirements of section 182(f). The

NOX Supplement should be referred to for further information on

the NOX requirements and is incorporated into this document by

reference.

Section 182(f) of the Clean Air Act requires States to apply the

same requirements to major stationary sources of NOX (``major'' as

defined in section 302 and section 182(c), (d), and (e)) as are applied

to major stationary sources of volatile organic compounds (VOCs), in

moderate or above ozone nonattainment areas. The Placer County part of

the Sacramento Metro Area is classified as serious, and the Ventura

County area is classified as severe;1 therefore these areas were

subject to the RACT requirements of section 182(b)(2), cited below, and

the November 15, 1992 deadline.

\1\The Sacramento Metro and Ventura County areas retained their

designations of nonattainment and were 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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Section 182(b)(2) requires submittal of RACT rules for major

stationary sources of VOC emissions (not covered by a pre-enactment

control technologies guidelines (CTG) document or a post-enactment CTG

document) by November 15, 1992. There were no NOX CTGs issued

before enactment and EPA has not issued a CTG document for any NOX

sources since enactment of the CAA. The RACT rules covering NOX

sources and submitted as SIP revisions are expected to require final

installation of the actual NOX controls by May 31, 1995, for those

sources where installation by that date is practicable.

This document addresses EPA's proposed action for PCAPCD's Rule

250, ``Stationary Gas Turbines,'' and VCAPCD's Rule 74.9, ``Stationary

Internal Combustion Engines.'' Rule 250 was adopted by the PCAPCD on

October 17, 1994, and Rule 74.9 was adopted by the VCAPCD on December

21, 1993. These submitted rules were found to be complete on June 3,

1994 (Rule 74.9) and October 21, 1994 (Rule 250) pursuant of EPA's

completeness criteria that are set forth in 40 CFR part 51, appendix

V2 and are being proposed for approval into the SIP.

\2\ 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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NOX emissions contribute to the production of ground level

ozone and smog. Rule 250 controls NOX emission from gas turbines,

and Rule 74.9 controls NOX, carbon monoxide (CO), and VOC

emissions from internal combustion engines. The rules were adopted as

part of PCAPCD's and VCAPCD's efforts to achieve the National Ambient

Air Quality Standards (NAAQS) for ozone and in response to the CAA

requirements cited above. The following is EPA's evaluation and

proposed action for these rules.

EPA Evaluation and Proposed Action

In determining the approvability of a NOX 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 this action, appears in various EPA policy

guidance documents.3 Among these provisions is the requirement

that a NOX rule must, at a minimum, provide for the implementation

of RACT for stationary sources of NOX emissions.

\3\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).

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For the purposes of assisting state and local agencies in

developing NOX RACT rules, EPA prepared the NOX supplement to

the General Preamble, cited above (57 FR 55620). In the NOX

supplement, EPA provides guidance on how RACT will be determined for

stationary sources of NOX emissions. While most of the guidance

issued by EPA on what constitutes RACT for stationary sources has been

directed towards application for VOC sources, much of the guidance is

also applicable to RACT for stationary sources of NOX (see section

4.5 of the NOX Supplement). In addition, pursuant to section

183(c), EPA is issuing alternative control technique documents (ACTs),

that identify alternative controls for all categories of stationary

sources of NOX. The ACT documents will provide information on

control technology for stationary sources that emit or have the

potential to emit 25 tons per year or more of NOX. However, the

ACTs will not establish a presumptive norm for what is considered RACT

for stationary sources of NOX. In general, the guidance documents

cited above, as well as other relevant and applicable guidance

documents, have been set forth to ensure that submitted NOX RACT

rules are fully enforceable and strengthen or maintain the SIP.

The California ARB has published a RACT/BARCT guidance document for

gas turbines entitled, ``Determination of Reasonably Available Control

Technology and Best Available Retrofit Control Technology for the

Control of Oxides of Nitrogen from Stationary Gas Turbines'' (May 18,

1992). The guidance document defines RACT as an emission limit of 42

parts per million volume (ppmv) for gas-fired units and an emission

limit of 65 ppmv for oil-fired units. BARCT for gas-fired units is

defined as an emission limit of 42 ppmv for 0.3 to 2.9 Megawatt (MW)

units, 25 ppmv for 2.9 to 10 MW units, 9 ppmv for units greater than 10

MW using selective catalytic reduction (SCR), and [[Page 20068]] 15

ppmv for units greater than 10 MW not using SCR. The corresponding

emission limits for oil-fired units are 65 ppmv, 65 ppmv, 25 ppmv, and

42 ppmv, respectively. PCAPCD's Rule 250 incorporates the BARCT limits

for gas turbines and is consistent with all of the guidance's other

requirements. The rule contains adequate recordkeeping requirements,

and the appropriate test methods for compliance determinations are

referenced. The exemptions provided in the rule are consistent with EPA

guidelines. The rule requires final compliance by May 31, 1995. A more

detailed discussion of the sources controlled, the controls required,

and the justification for why these controls represent RACT can be

found in the Technical Support Document (TSD) for Rule 250, dated

November 28, 1994.

The NOX limits suggested by the California Air Resources Board

(ARB) as RACT for IC engines rated at 50 brake horsepower or more are

50 ppmv (90% reduction) for rich-burn engines, 125 ppmv (80% reduction)

for lean-burn engines, and 610 ppmv for diesel engines. These limits

were recommended using information regarding average, actual,

uncontrolled levels and previous regulatory control in Ventura County,

the South Coast Basin, and Santa Barbara County. EPA agrees that these

limits are consistent with the Agency's guidance and policy for making

RACT determinations in terms of general cost-effectiveness, emission

reductions, and environmental impacts.

VCAPCD's Rule 74.9 has already been incorporated into the SIP and

its RACT limits are consistent with those recommended by the California

ARB. However, this most recent submittal includes the following

significant changes from the current SIP:

1. The provisions of the rule now apply to IC engines rated at 50

hp and above, operating on any gaseous fuel, including liquid petroleum

gas (LPG) or diesel fuel.

2. The NOX emission standards for rich-burn engines and lean-

burn engines have been reduced to 25 ppmv and 45 ppmv, respectively.

Rich-burn engines and lean-burn engines that operate on waste gas are

no longer exempt from the rule and must comply with the rule's old

emission limits of 50 ppmv and 125 ppmv, respectively. An 80 ppmv

standard for diesel engines and emission limits for CO and VOCs have

also been added to the rule.

3. The rule prohibits the discharge of ammonia in excess of 20 ppmv

from any emission control device.

4. The provisions allowing groups of operators to combine their

engines and resources and be considered a single operator have been

deleted.

5. The provisions allowing the results from NOX control

demonstration projects on lean-burn engines in other counties, to be

used by sources in the VCAPCD to satisfy the requirements of the rule,

have been deleted.

6. The Cost-Effectiveness Certification provision has been deleted

since it is no longer necessary.

7. The rule now requires annual reports of fuel usage, source test

results, and other operational data about each engine before permit

renewal.

8. The Special Circumstances provisions that allow variances from

the rule have been deleted. EPA Method 20 with the District's

modifications is no longer used for compliance determinations.

9. The rule's definitions and exemptions have been updated.

The California ARB is in the process of adopting the more stringent

emission standards of Rule 74.9 as BARCT for IC engines. A more

detailed discussion of the sources controlled, the controls required,

and the justification for why these controls represent RACT can be

found in the Technical Support Document (TSD) for Rule 74.9, dated

December 5, 1994.

EPA has evaluated the submitted rules and has determined that they

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

PCAPCD's Rule 250, ``Stationary Gas Turbines,'' and VCAPCD Rule 74.9,

``Stationary Internal Combustion Engines,'' are being proposed for

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

of section 110(a), section 182(b)(2), section 182(f) and the NOX

Supplement to the General Preamble.

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.4

\4\VCAPCD's Rule 74.9 references California ARB Method 100,

which has been cited for certain deficiencies by the Emissions

Measurement Branch. The California ARB has committed to correcting

these deficiencies, and final approval of Rule 74.9 is contingent on

these corrections.

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Regulatory Flexibility

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 economic 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 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 affected small entities. 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 OMB has exempted this regulatory action from review under

Executive Order 12866.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental relations, Ozone, Reporting and recordkeeping

requirements, Volatile organic compound.

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

Dated: April 12, 1995.

Felicia Marcus,

Regional Administrator.

[FR Doc. 95-10059 Filed 4-21-95; 8:45 am]

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