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 162-1-7250a; FRL-5321-1]

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 on revisions to the

California State Implementation Plan. The revisions concern rules from

the South Coast Air Quality Management District (SCAQMD). This approval

action will incorporate these rules into the federally approved SIP.

The intended effect of approving 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).

In addition, the final action on these rules serves as a final

determination that the deficiencies in previous versions have been

corrected and that on the effective date of this action, any sanctions

or Federal Implementation Plan (FIP) obligations are permanently

stopped. The revised rules control VOC emissions from graphic arts and

the coating of wood products. Thus, 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 action is effective on January 2, 1996 unless adverse or

critical comments are received by November 30, 1995. If the effective

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

Register.

ADDRESSES: Copies of the rule revisions and EPA's evaluation report for

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

during normal business hours. Copies of the submitted rule revisions

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, DC 20460.

California Air Resources Board, Stationary Source Division, Rule

Evaluation Section, 2020 ``L'' Street, Sacramento, CA 92123-1095.

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

Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Daniel A. Meer, Chief 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) 744-1185.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being approved into the California SIP include: SCAQMD

Rules 1130, Graphic Arts, and 1136, Wood Products Coating. These rules

were submitted by the California Air Resources Board (CARB) to EPA on

October 16, 1995.

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 Act or pre-amended Act), that included the South Coast Air Basin.

43 FR 8964, 40 CFR 81.305. On May 26, 1988, EPA notified the Governor

of California, pursuant to section 110(a)(2)(H) of the 1977 Act, that

the above districts' 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. 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)

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

that guidance to indicate the necessary corrections for specific

nonattainment areas. The South Coast Air Basin is classified as

extreme; 2 therefore, this area was subject to the RACT fix-up

requirement and the May 15, 1991 deadline.

\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 South Coast Air Basin 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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The State of California submitted many revised RACT rules for

incorporation into its SIP on October 13, 1995, including the rules

being acted on in this document. This document addresses EPA's direct-

final action for SCAQMD's Rules 1130, Graphic Arts, and 1136, Wood

Products Coating. SCAQMD adopted Rules 1130 and 1136 on September 8,

1995. The submitted rules were found to be complete on October 23, 1995

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

part 51 Appendix V 3 and is being finalized for approval into the

SIP.

\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 1130 limits emissions of volatile organic compounds (VOCs)

emitted from graphic arts operations and Rule 1136 limits emissions of

VOCs from wood coating operations. VOCs contribute to the production of

ground level ozone and smog. This rule was originally adopted as part

of SCAQMD's effort 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

final action for this rule.

EPA Evaluation and 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

applicable to Rule 1130 is entitled Control of Volatile Organic

Emissions from Existing Stationary Sources--Volume VIII: Graphic Arts-

Rotogravure and Flexography. EPA-450/2-78-033. Rule 1136 controls

emissions from a source category for which EPA has not finalized a CTG.

Accordingly, this rule was evaluated against the interpretation of EPA

policy found in the Blue Book, referred to in footnote 1 and against

other EPA policy including the EPA Region 9/CARB document entitled:

Guidance Document for Correcting VOC Rule Deficiencies (April 1991),

and EPA's draft CTG for wood furniture finishing and cleaning

operations, released for comments on September 7, 1995 in the Federal

Register, 60 FR 46595. In general, these guidance documents have been

set forth to ensure that VOC rules are fully enforceable and strengthen

or maintain the SIP.

SCAQMD's submitted Rule 1130, Graphic Arts, includes the following

significant changes from the current SIP:

Reduction of the VOC content of graphic arts material to

300 grams per liter in conformance with the applicable CTG,

Revision of the combined capture and control efficiency

requirement of emission control systems to conform to the RACT level of

control,

Deletion of the exempt compound list and reference to Rule

102 which contains definitions and the exempt compound list,

Lowering of the minimum metal content requirement in

flexographic metallic ink from 35% to 28% by weight,

Lowering of the VOC limit for flexographic metallic ink

from 485 grams/liter (g/l) to 460 g/l,

Addition of a prohibition of sale provision,

Addition of the definition of ``Potential to Emit'',

Addition of an exemption for the application of metallic

and matte finish ink, provided that a written certification to limit

the total facility-wide potential VOC emissions to 10 tons per year is

on file.

SCAQMD's Rule 1136, Wood Coating Operations, includes the following

significant changes from the current SIP:

Addition of language and equation for control device

equivalency,

Addition of USEPA approved test method and language

regarding multiple test methods,

Addition of a VOC averaging provision,

Addition of fiberboard and particleboard coating VOC

limits,

Extension of final compliance dates to July 1, 1996,

Addition of economic incentives for facilities converting

to compliant, waterborne coatings earlier than the final compliance

date. The available incentives are alternative recordkeeping

requirements and use of alternate spray equipment, with written

approval from the executive officer.

EPA has evaluated the submitted rules and has determined that they

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

Therefore, SCAQMD's Rules 1130, Graphic Arts, and 1136, Wood Products

Coating, are being approved 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 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.

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 in this Federal

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

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

effective January 2, 1996, unless, by November 30, 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 document 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

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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 January 2, 1996.

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 population of less than

50,000.

SIP approvals under sections 110 and 301(a) 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 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).

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 or 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 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.

This action has been classified as a Table 3 action for signature

by the Regional Administrator under the procedures published in the

Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a

July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for

Air and Radiation. The Office of Management and Budget (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,

Incorporation by reference, Intergovernmental relations, Ozone,

Reporting and recordkeeping requirements, Volatile organic compounds.

Note: Incorporation by reference of the State Implementation

Plan for the State of California was approved by the Director of the

Federal Register on July 1, 1982.

Dated: October 19, 1995.

John Wise,

Acting 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)(225) to read

as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(225) New and amended regulations for the following APCDs were

submitted on October 13, 1995 by the Governor's designee.

(i) Incorporation by reference.

(A) South Coast Air Quality Management District.

(1) Rules 1130 and 1136 adopted September 8, 1995.

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[FR Doc. 95-26887 Filed 10-30-95; 8:45 am]

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