Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; South Coast Air Quality Management District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 95-7-6789a; FRL-5280-1]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; South Coast Air Quality Management

District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to approve revisions to the

California State Implementation Plan (SIP). The revisions concern rules

from the South Coast Air Quality Management District (SCAQMD) which

control oxides of nitrogen (NOX) from industrial, commercial, and

institutional boilers, steam generators, and process heaters. This

approval action will incorporate these rules into the Federally

approved SIP. The intended effect of approving 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). The EPA is

finalizing the approval of these revisions into the California SIP

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: This final rule is effective on November 6, 1995 unless adverse

or critical comments are received by October 6, 1995. If the effective

date is delayed, a timely notice will be published in the Federal

Register.

ADDRESSES: Copies of the rules 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 rules are available for

inspection at the following locations:

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

Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, CA

94105.

Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street,

SW., Washington, D.C. 20460.

California Air Resources Board, Stationary Source Division, Rule

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

South Coast Air Quality Management District, 21865 E. Copley Drive,

Diamond Bar, CA 91765-4182.

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 94105-3901, Telephone: (415)

744-1200.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being approved into the California SIP include: SCAQMD

Rule 1146, Emissions of Oxides of Nitrogen from Industrial,

Institutional, and Commercial Boilers, Steam Generators, and Process

Heaters; and Rule 1146.1, Emissions of Oxides of Nitrogen from Small

Industrial, Institutional, and Commercial Boilers, Steam Generators,

and Process Heaters. These rules were submitted by the California Air

Resources Board (CARB) to EPA on July 13, 1994.

Background

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

the Act) were enacted. Pub. L. 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 Notice of Proposed Rulemaking (NPRM) entitled

``State Implementation Plans; Nitrogen Oxides Supplement to the General

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Preamble; Clean Air Act Amendments of 1990 Implementation of Title I;

Proposed Rule,'' (the NOX Supplement) which describes and provides

preliminary guidance on the requirements of section 182(f). 57 FR

55620. The NOX Supplement should be referred to for further

information on the NOX requirements and is incorporated into this

notice of direct final rulemaking 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 compound (VOC)

emissions, in moderate or above ozone nonattainment areas. The Los

Angeles-South Coast Air Basin Area is classified as extreme; 1

therefore this area was subject to section 182(f), the RACT

requirements of section 182(b)(2), and the November 15, 1992 deadline,

cited below.

\1\ The Los Angeles-South Coast Air Basin 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 55 FR 56694 (November 6, 1991).

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Section 182(b)(2) requires submittal of RACT rules for major

stationary sources of VOC (and NOX) emissions (not covered by

either a pre-enactment or post-enactment control technologies guideline

(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 as expeditiously as

practicable, but no later than May 31, 1995.

SCAQMD Rule 1146 and Rule 1146.1 were adopted by SCAQMD on May 13,

1994, and were submitted by CARB to EPA on July 13, 1994. These

submitted rules were found to be complete on July 22, 1994 pursuant to

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

appendix V.2 By today's notice, EPA is taking direct final action

to approve these rules into the Federally approved 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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SCAQMD Rule 1146 and 1146.1 control emissions of NOX from

industrial, commercial, and institutional boilers, steam generators and

process heaters. NOX emissions contribute to the production of

ground level ozone and smog. The rules were adopted as part of SCAQMD's

efforts to achieve the National Ambient Air Quality Standards for ozone

and in response to the CAA requirements cited above. The following

section contains EPA's evaluation and final action for these rules.

EPA Evaluation

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. 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), which 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 meet Federal RACT

requirements and are fully enforceable and strengthen or maintain the

SIP.

SCAQMD Rule 1146, Emissions of Oxides of Nitrogen from Industrial,

Institutional, and Commercial Boilers, Steam Generators, and Process

Heaters, contains the following significant changes from the current

SIP rule:

1. Expands applicability beyond steam generators with rated heat

input capacity (RHIC) of 50 MBtu/hr or more.

2. Lowers emission limits.

3. Adds definitions, control plan requirements, recordkeeping,

compliance determination provisions, a compliance schedule, and an

equipment tuning procedure.

SCAQMD Rule 1146.1, Emissions of Oxides of Nitrogen from Small

Industrial, Institutional, and Commercial Boilers, Steam Generators,

and Process Heaters, is a new rule which controls emissions from units

between 2 and 5 million Btu per hour. The major provisions of this rule

include: emission limits, recordkeeping, compliance determination

provisions, a compliance schedule, and an equipment tuning procedure.

For the source category of industrial, commercial, and

institutional boilers, steam generators, and process heaters, CARB has

made a determination on the emission levels that constitute RACT, and

CARB has published a guidance document concerning their determination

for this source category. EPA believes that the emission limits in Rule

1146 and Rule 1146.1 are consistent with guidance and policy for making

RACT determinations, and that these limits satisfy the RACT

requirement. A more detailed discussion of the sources

controlled,4 the controls required, and the justification for why

these controls represent RACT can be found in the Technical Support

Document (TSD) for each rule, available from the U.S. EPA Region IX

office.

\4\ Rule 1146 and Rule 1146.1 will apply to sources which are

not covered in the SCAQMD NOX RECLAIM program.

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EPA has evaluated the submitted rule and has determined that it is

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

SCAQMD Rule 1146 and Rule 1146.1 are being approved 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

[[Page 46222]]

relevant statutory and regulatory requirements.

EPA is publishing this document without prior proposal because the

Agency views this as a noncontroversial amendment and anticipates no

adverse comments. However, in a separate document elsewhere in this

Federal Register, the EPA is proposing to approve the SIP revision

should adverse or critical comments be filed. This action will be

effective November 6, 1995, unless, by October 6, 1995, adverse or

critical comments are received.

If the EPA receives such comments, this action will be withdrawn

before the effective date by publishing a subsequent notice that will

withdraw the final action. All public comments received will then be

addressed in a subsequent final rule based on this action serving as a

proposed rule. The EPA will not institute a second comment period on

this action. Any parties interested in commenting on this action should

do so at this time. If no such comments are received, the public is

advised that this action will be effective November 6, 1995.

Regulatory Process

Unfunded Mandates

Under Sections 202, 203, and 205 of the Unfunded Mandates Reform

Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22,

1995, EPA must undertake various actions in association with proposed

or final rules that include a Federal mandate that may result in

estimated costs of $100 million or more to the private sector or to

state, local, or tribal governments in the aggregate.

Through submission of this state implementation plan revision, the

State and any affected local or tribal governments have elected to

adopt the program provided for under part D of the Clean Air Act. These

rules may bind state, local, and tribal governments to perform certain

actions and also require the private sector to perform certain duties.

The rules being approved by this action will impose no new requirements

because affected sources are already subject to these regulations under

state law. Therefore, no additional costs to state, local, or tribal

governments or to the private sector result from this action. EPA has

also determined that this direct final action does not include a

mandate that may result in estimated costs of $100 million or more to

state, local, or tribal governments in the aggregate or to the private

sector.

Small Businesses

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. sections 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. section 7410(a)(2).

The Office of Management and Budget 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,

Incorporation by reference, Intergovernmental relations, Nitrogen

dioxide, Nitrogen oxides, Ozone, Reporting and recordkeeping

requirements, Volatile organic compound.

Dated: August 8, 1995.

Felicia Marcus,

Regional Administrator.

Part 52, chapter I, title 40 of the Code of Federal Regulations is

amended as follows:

PART 52--[AMENDED]

1. The authority citation for part 52 continues to read as follows:

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

Subpart F--California

2. Section 52.220 is amended by adding paragraph (c) (198)(i)(H)(1)

to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(198) * * *

(i) * * *

(H) South Coast Air Quality Management District.

(1) Rule 1146 and Rule 1146.1, adopted May 13, 1994.

* * * * *

[FR Doc. 95-21877 Filed 9-5-95; 8:45 am]

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