Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision, Bay Area Air Quality Management District

[[Page 16799]]

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 83-5-6889a; FRL-5165-5]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision, Bay Area 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 (SIP). The revisions concern rules

from Bay Area Air Quality Management District (BAAQMD). 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).

The revised rules control VOC emissions from organic liquid bulk plants

and terminals, surface coating of miscellaneous metal parts and

products, aerospace assembly and component coating operations, flexible

and rigid disc manufacturing, gasoline bulk terminals, gasoline bulk

plants, and gasoline delivery vehicles. One of the rules concerns the

submittal of VOC and NOX emissions data to the district. 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 June 2, 1995 unless adverse or

critical comments are received by May 3, 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.

Bay Area Air Quality Management District, 939 Ellis Street, San

Francisco, CA 94109.

FOR FURTHER INFORMATION CONTACT: Helen Liu, 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-

1199.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being approved into the California SIP include the

following BAAQMD rules: Rule 8.6, Organic Liquid Bulk Terminals and

Bulk Plants, Rule 8.19, Surface Coating of Miscellaneous Metal Parts

and Products, Rule 8.29, Aerospace Assembly and Component Coatings

Operations, Rule 8.33, Gasoline Bulk Terminals and Gasoline Delivery

Vehicles, Rule 8.38, Flexible and Rigid Disc Manufacturing, Rule 8.39,

Gasoline Bulk Plants and Gasoline Delivery Vehicles, and Rule 2.1,

Section 429, Emissions Statement. These rules were submitted by the

California Air Resources Board (CARB) to EPA on September 28, 1994,

except for Rule 8.6, which was submitted on May 24, 1994, and Rule 2.1,

Section 429, which was submitted October 19, 1994.

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 San Francisco-Bay

Area. 43 FR 8964, 40 CFR 81.305. Because this area was unable to meet

the statutory attainment date of December 31, 1982, California

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

the attainment date to December 31, 1987. (40 CFR 52.222). 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) as

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

guidance to indicate the necessary corrections for specific

nonattainment areas. The Bay Area is classified as moderate2;

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 Bay Area has 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 May 24, 1994, September 28, 1994, and

October 19, 1994, including the rules being acted on in this notice.

This document addresses EPA's direct-final action for the BAAQMD rules

cited above. BAAQMD adopted Rule 8.6 on February 2, 1994, Rule 8.19,

Rule 8.38, and Rule 2.1, Section 429 on June 15, 1994, and Rule 8.29,

Rule 8.33, and Rule 8.39 on June 1, 1994. These submitted rules were

found to be complete on July 14, 1994 (Rule 8.6), on November 22, 1994

(Rules 8.19, 8.29, 8.33, 8.38, 8.39), and on December 1, 1994 (Rule

2.1, Section 429). These rules were found complete pursuant to EPA's

completeness criteria that are set forth in 40 CFR part 51 Appendix

V3 and are 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 8.6 controls volatile organic compounds (VOC) emissions from

transfer operations at non-gasoline organic liquid bulk plants and

terminals. Rule 8.19 limits the VOC emissions from the coating of

miscellaneous metal parts and products. Rule 8.29 limits the emission

of VOCs from the surface preparation and coating of aerospace

components and cleanup of aerospace coating equipment. Rule 8.33

[[Page 16800]] controls VOC emissions from transfer operations at

gasoline bulk terminals. Rule 8.38 limits the emission of VOCs from the

manufacture of flexible and rigid magnetic data storage discs. Rule

8.39 controls VOC emissions from transfer operations at gasoline bulk

plants. Rule 2.1, Section 429 requires certain VOC and NOX

facility owners to report VOC and oxides of nitrogen (NOX)

emissions data annually to the district. VOC and NOX emissions

contribute to the production of ground level ozone and smog. These

rules were originally adopted as part of the Bay Area'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

these rules.

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 8.19 is entitled ``Control of Volatile Organic

Emissions from Existing Stationary Sources--Volume VI: Surface Coating

of Miscellaneous Metal Parts and Products'' [EPA-450/2-78-015]. The CTG

entitled ``Control of Hydrocarbons from Tank Truck Gasoline Loading

Terminals'' [EPA-450/2-77-026] applies to Rule 8.6 and Rule 8.33. The

CTG entitled ``Control of Volatile Organic Emissions from Bulk Gasoline

Plants'' [EPA-450/2-77-035] applies to Rule 8.6 and Rule 8.39. The CTG

entitled ``Control of Volatile Organic Compound Leaks from Gasoline

Tank Trucks and Vapor Collection Systems'' [EPA-450/2-78-051] applies

to Rule 8.33 and Rule 8.39. Further interpretations of EPA policy are

found in the Blue Book, referred to in footnote 1, and in ``Model

Volatile Organic Compound Rules for Reasonably Available Control

Technology,'' Office of Air Quality Planning Standards, June 1992. In

general, these guidance documents have been set forth to ensure that

VOC rules are fully enforceable and strengthen or maintain the SIP.

BAAQMD's submitted Rule 8.6, Organic Liquid Bulk Terminals and Bulk

Plants includes the following significant changes from the current SIP:

The mass emission limit for bulk terminals was lowered

from 0.65 lb/1000 gallons to 0.17 lb/1000 gallons,

Mass emission limits were added for bulk plants (0.35 lb/

1000 gallons) and for deliveries to storage tanks (0.17 lb/1000

gallons),

The rule now covers liquids with vapor pressures greater

than 0.5 psia.

BAAQMD's submitted Rule 8.19, Surface Coating of Miscellaneous

Metal Parts and Products includes the following significant changes

from the current SIP:

Exemptions include compliant powder coatings and low usage

coatings,

Certain coatings with limits that exceed the VOC content

limits in the CTG are allowed,4

\4\EPA has determined that emissions resulting from the higher

limits do not represent a significant difference from the allowable

emissions under the applicable CTG standards and that they fall

within the ``5% Rule'' in the Blue Book. The ``5% Rule'' allows

states to depart from a CTG standard upon a demonstration that the

departure results in ``no significant difference'' in emissions

(i.e. less than 5% from the CTG allowable).

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Petition requirements for low usage and specialty coatings

are introduced,

Emission reduction credits must be adjusted to reflect

federal RACT.

BAAQMD's submitted Rule 8.29, Aerospace Assembly and Component

Coating Operations includes the following significant changes from the

current SIP:

The low usage coating exemption is 200 gallons per

facility per calendar year,

Operations that use less than 20 gallons of coating in any

calendar year are exempt from certain recordkeeping requirements,

The abatement efficiency for control of emissions from

non-compliant coatings must be at least 85%,

Petition requirements for low usage coatings are

introduced.

BAAQMD's submitted Rule 8.33, Gasoline Bulk Terminals and Gasoline

Delivery Vehicles includes the following significant changes from the

current SIP:

The emission limit for vapor recovery systems was lowered

from 0.55 lb/1000 gallons to 0.08 lb/1000 gallons,

Test methods were updated.

BAAQMD's submitted Rule 8.38, Flexible and Rigid Disc Manufacturing

includes the following major elements:

Total control efficiency must be at least 85% for disc

coating and polishing lines,

Coating mixing operation requirements specify dimensions

and materials for the vats.

BAAQMD's submitted Rule 8.39, Gasoline Bulk Plants and Gasoline

Delivery Vehicles includes the following significant changes from the

current SIP:

The emissions limit for vapor recovery systems was lowered

from 0.55 lb/1000 gallons to 0.50 lb/1000 gallons,

Test procedures were either added or updated.

BAAQMD's submitted Rule 2.1, Section 429, Emissions Statement

includes the following major issue:

Certain VOC and NOX facility owners are required to

report emissions data annually to the district.

EPA has evaluated the submitted rules and has determined that they

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

Therefore, BAAQMD's Rule 8.6, Organic Liquid Bulk Terminals and Bulk

Plants, Rule 8.19, Surface Coating of Miscellaneous Metal Parts and

Products, Rule 8.29, Aerospace Assembly and Component Coatings

Operations, Rule 8.33, Gasoline Bulk Terminals and Gasoline Delivery

Vehicles, Rule 8.38, Flexible and Rigid Disc Manufacturing, Rule 8.39,

Gasoline Bulk Plants and Gasoline Delivery Vehicles, and Rule 2.1,

Section 429, Emissions Statement 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 notice 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 [[Page 16801]] publication, the EPA is proposing to approve

the SIP revision should adverse or critical comments be filed. This

action will be effective June 2, 1995 unless, within 30 days of its

publication, 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 June 2, 1995.

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. Secs. 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).

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,

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: February 15, 1995.

Felicia Marcus,

Regional Administrator.

Subpart F of 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 paragraphs (c) (197)(i)(B),

(199)(i)(A)(5), (202) introductory text, and (202)(i) to read as

follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(197) * * *

(i) * * *

(B) Bay Area Air Quality Management District.

(1) Rule 8-6, adopted on February 2, 1994.

* * * * *

(199) * * *

(i) * * *

(A) * * *

(5) Rules 8-29, 8-33, and 8-39, adopted on June 1, 1994, and Rules

8-19 and 8-38, adopted on June 15, 1994.

* * * * *

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

submitted on October 19, 1994, by the Governor's designee.

(i) Incorporation by reference.

(A) Bay Area Air Quality Management District.

(1) Rule 2-1, adopted on June 15, 1994.

* * * * *

[FR Doc. 95-8042 Filed 3-31-95; 8:45 am]

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