Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision, Mojave Desert Air Quality Management District and San Bernardino County Air Pollution Control District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 95-5-6651; FRL-5141-7]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision, Mojave Desert Air Quality

Management District and San Bernardino 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), which concern the control of volatile

organic compound (VOC) emissions from the loading, transfer, and

storage of organic liquids, including gasoline.

The intended effect of proposing approval of these rules is to

regulate emissions of 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 February 21, 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 IX, 75 Hawthorne Street, San Francisco, CA 94105-3901.

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:

California Air Resources Board, Stationary Source Division, Rule

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

Mojave Desert Air Quality Management District (formerly San Bernardino

County APCD), 15428 Civic Drive, Suite 200, Victorville, CA 92392-2383.

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, (415)

744-1191.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being proposed for approval into the California SIP

include: Mojave Desert Air Quality Management District's (MDAQMD) Rule

461, ``Gasoline Transfer and Dispensing,'' and Rule 462, ``Organic

Liquid Loading,'' and San Bernardino County Air Pollution Control

District's (SBCAPCD) Rule 463, ``Storage of Organic Liquids.''

SBCAPCD's Rule 463 was adopted and submitted prior to the district

being renamed to the MDAQMD. These rules were submitted by the

California Air Resources Board to EPA on January 11, 1993 (Rule 463)

and July 13, 1994 (Rules 461 and 462).

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 former SBCAPCD.1

43 FR 8964; 40 CFR 81.305. Because this area was unable to meet the

statutory attainment date of December 31, 1982, California requested

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

attainment date to December 31, 1987. 40 CFR 52.238, 52.222. 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 portion

of the California SIP was 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. Pub. L. 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.2 EPA's SIP-Call used that guidance to indicate

the necessary corrections for specific nonattainment areas. The MDAQMD

is classified as severe;3 therefore, this area was subject to the

RACT fix-up requirement and the May 15, 1991 deadline.

\1\ On July 1, 1993, the SBCAPCD was officially renamed as the

MDAQMD. Rule 463 is still identified with the SBCAPCD for

completeness.

\2\ 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 (CTG's).

\3\ The Mojave Desert 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

amendments of 1990. See 55 FR 56694 (November 6, 1991).

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The State of California submitted many revised RACT rules for

incorporation into its SIP on January 11, 1993, and July 13, 1994,

including the rules being acted on in this document. This document

addresses EPA's proposed action for MDAQMD's Rule 461, ``Gasoline

Transfer and Dispensing,'' and Rule 462, ``Organic Liquid Loading,''

and SBCAPCD's Rule 463, ``Storage of Organic Liquids.'' MDAQMD adopted

Rules 461 and 462 on May 25, 1994, and SBCAPCD adopted Rule 463 on

November 2, 1992. These submitted rules were found to be complete on

March 26, 1993 (Rule 463) and July 22, 1994 (Rules 461 and 462)

pursuant to EPA's completeness criteria that are set forth in 40 CFR

part 51 Appendix V4 and are being proposed for approval into the

SIP.

\4\ 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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These three rules work in concert to reduce VOC emissions by

requiring submerged fill pipes and vapor recovery systems for the

transfer and storage of organic liquids, including gasoline. 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 EPA's

SIP-Call and 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 2. 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 CTG's 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 following

CTG's are applicable to these rules: (1) ``Control of Hydrocarbons from

Tank Truck Gasoline Loading Terminals (EPA-450/2-77-026),'' (2)

``Control of Volatile Organic Emissions from Bulk Gasoline Plants (EPA-

450/2-77-035),'' (3) ``Control of Volatile Organic Emissions from

Storage of Petroleum Liquids in Fixed-Roof Tanks (EPA-450/2-77-036),''

(4) ``Control of Volatile Organic Emissions from Petroleum Liquid

Storage in External Floating Roof Tanks (EPA-450/2-78-047),'' and (5)

``Control of Volatile Organic Compound Leaks from Gasoline Tank Trucks

and Vapor Collection Systems (EPA-450/2-78-051).'' Further

interpretations of EPA policy are found in the Blue Book, referred to

in footnote 2. In general, these guidance documents have been set forth

to ensure that VOC rules are fully enforceable and strengthen or

maintain the SIP. Rules 461, 462, and 463 include the following

significant changes from the current SIP:

Applicability sections.

Test methods for compliance determinations.

Recordkeeping requirements.

Exemptions consistent with the CTG's.

Definitions of terms used in the rules.

EPA has evaluated the submitted rules and has determined that they

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

Therefore, MDAQMD's Rule 461, ``Gasoline Transfer and Dispensing,'' and

Rule 462, ``Organic Liquid Loading,'' and SBCAPCD's Rule 463, ``Storage

of Organic Liquids,'' 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. Section 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

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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 OMB has exempted this 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: January 6, 1995.

Felicia Marcus,

Regional Administrator.

[FR Doc. 95-1318 Filed 1-18-95; 8:45 am]

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