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 32-3-6502; FRL-5177-6]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; South Coast Air Quality Management

District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: EPA is proposing a limited approval and limited disapproval of

revisions to the California State Implementation Plan (SIP) for ozone.

These revisions concern the control of oxides of nitrogen (NOX)

from stationary gas turbines. The intended effect of proposing limited

approval and limited disapproval of this rule 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 this rule into the Federally

approved SIP. EPA has evaluated this rule and is proposing a

simultaneous limited approval and limited disapproval under provisions

of the CAA regarding EPA actions on SIP submittals and general

rulemaking authority because these revisions, while strengthening the

SIP, also do not fully meet the CAA provisions regarding plan

submissions and requirements for nonattainment areas.

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

or before April 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 IX, 75 Hawthorne Street, San Francisco, CA 94105.

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

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

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

inspection at the following locations:

[[Page 15272]] 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, Telephone: (415) 744-

1200.

SUPPLEMENTARY INFORMATION:

Applicability

This document addresses EPA's proposed action for South Coast Air

Quality Management District (SCAQMD) Rule 1134, Emissions of Oxides of

Nitrogen from Stationary Gas Turbines. This rule was submitted by the

California Air Resources Board (CARB) on December 31, 1990.

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 and provides preliminary guidance on the

requirements of section 182(f). 57 FR 55620. The November 25, 1992

notice should be referred to for further information on the NOX

requirements and is incorporated into this proposal 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 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 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 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 (and NOX) 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 as

expeditiously as practicable, but no later than May 31, 1995.

This document addresses EPA's proposed action for SCAQMD Rule 1134,

Emissions of Oxides of Nitrogen from Stationary Gas Turbines. The

SCAQMD adopted Rule 1134 on August 4, 1989 and the rule was submitted

by the CARB on December 31, 1990. This submitted rule was found to be

complete on February 28, 1991 pursuant to EPA's completeness criteria

that are set forth in 40 CFR Part 51 Appendix V2 and is being

proposed for limited approval and limited disapproval.

\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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Rule 1134 controls emissions of NOX from the operation of gas

turbines of 0.3 megawatt and larger. NOX emissions contribute to

the production of ground level ozone and smog. The rule was adopted as

part of SCAQMD'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

this rule.

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 the NOX

Supplement (57 FR 55620) and 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); and

``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), 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 meet Federal RACT

requirements and are fully enforceable and strengthen or maintain the

SIP.

Rule 1134 is a new rule which was adopted to control emissions from

stationary gas turbines. For this source category, CARB has made a

determination on the emission levels that constitute both RACT and best

available retrofit control technology (BARCT). BARCT emission levels

are generally more stringent than RACT levels, and CARB has published a

guidance document concerning their determination for this source

category. Sources subject to Rule 11344 are required to meet BARCT

emission limits and to use continuous emissions monitoring systems

(CEMS). EPA agrees that the limits incorporated in Rule 1134 meet

Federal RACT levels, and are consistent with the Agency's guidance and

policy for making RACT determinations in terms of general cost-

effectiveness, emission reductions, and environmental impacts.

\4\Rule 1134 will apply to sources which are not covered in the

SCAQMD NOX RECLAIM program.

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Although SCAQMD Rule 1134 will strengthen the SIP, the rule

contains deficiencies related primarily to the lack [[Page 15273]] of

Federal enforceability. These deficiencies include Executive Officer

discretion in approving CEMS, lack of test methods, and lack of

monitoring requirements to demonstrate exemption eligibility. A more

detailed discussion of the sources controlled, the controls required,

justification for why these controls represent RACT, and the rule

deficiencies can be found in the Technical Support Document (TSD),

which is available from the U.S. EPA, Region IX office. Because of the

rule deficiencies, Rule 1134 is not approvable pursuant to section

182(a)(2), section 182(b)(2), section 182(f) and part D of the CAA,

because it is not consistent with the interpretation of section 172 of

the 1977 CAA as found in the Blue Book and may lead to rule

enforceability problems.

Because of the above deficiencies, EPA cannot grant full approval

of this rule under section 110(k)(3) and part D. Also, because the

submitted rule is not composed of separable parts which meet all the

applicable requirements of the CAA, EPA cannot grant partial approval

of the rule under section 110(k)(3). However, EPA may grant a limited

approval of the submitted rule under section 110(k)(3) in light of

EPA's authority pursuant to section 301(a) to adopt regulations

necessary to further air quality by strengthening the SIP. The approval

is limited because EPA's action also contains a simultaneous limited

disapproval. In order to strengthen the SIP, EPA is proposing a limited

approval of SCAQMD's submitted Rule 1134 under sections 110(k)(3),

301(a), and 182(f) of the CAA.

At the same time, EPA is also proposing a limited disapproval of

this rule because it contains deficiencies which must be corrected in

order to fully meet the requirements of section 182(a)(2), 182(b)(2),

182(f), and part D of the CAA. Under section 179(a)(2), if the

Administrator disapproves a submission under section 110(k) for an area

designated nonattainment, based on the submission's failure to meet one

or more of the elements required by the Act, the Administrator must

apply one of the sanctions set forth in section 179(b) unless the

deficiency has been corrected within 18 months of such disapproval.

Section 179(b) provides two sanctions available to the Administrator:

Highway funding and offsets. The 18 month period referred to in section

179(a) will begin on the effective date of EPA's final limited

disapproval. Moreover, the final disapproval triggers the Federal

implementation plan (FIP) requirement under section 110(c). It should

be noted that the rule covered by this NPRM has been adopted by the

SCAQMD and is currently in effect in the SCAQMD. EPA's limited

disapproval action will not prevent SCAQMD or EPA from enforcing this

rule.

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 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.

Limited approvals under section 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 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 Office of Management and Budget has waived this regulatory

action from Executive Order 12866 review.

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 compounds.

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

Dated: March 8, 1995.

John Wise,

Acting Regional Administrator.

[FR Doc. 95-7210 Filed 3-22-95; 8:45 am]

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