Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; Ventura County Air Pollution Control District; Sacramento Metropolitan Air Quality Management Division; Placer County Air Pollution Control District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA153-2-7274a FRL-5459-3]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; Ventura County Air Pollution

Control District; Sacramento Metropolitan Air Quality Management

Division; Placer County Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

[[Page 18960]]

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 Ventura County Air Pollution Control District (VCAPCD), the

Sacramento Metropolitan Air Quality Management Division (SMAQMD), and

the Placer County Air Pollution Control District (PCAPCD). This

approval action will incorporate three rules into the federally

approved SIP. The intended effect of approving these rules is to

regulate emissions of oxides of nitrogen (NOX) in accordance with

the requirements of the Clean Air Act, as amended in 1990 (CAA or the

Act). The rules control NOX emissions from natural gas-fired

central furnaces, stationary internal combustion engines, and biomass

boilers.

DATES: This action is effective on July 1, 1996, unless adverse or

critical comments are received by May 30, 1996. 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 for 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,

S.W., Washington, D.C. 20460.

California Air Resources Board, Stationary Source Division, Rule

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

Ventura County Air Pollution Control District, Rule Development

Section, 669 County Square Drive, Ventura, CA 93003.

Sacramento Metropolitan Air Quality Management District, Rule

Development Section, 8411 Jackson Road, Sacramento, CA 95826.

Placer County Air Quality Management District, Rule Development, 11464

B. Avenue, Auburn, CA 95603.

FOR FURTHER INFORMATION CONTACT: Wendy Colombo, 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) 744-1202.

Applicability

This notice addresses EPA's direct final action for the following

rules:

VCAPCD, Rule 74.22, Natural Gas-Fired, Central Fan- Type

Furnaces;

SMAQMD, Rule 412, Stationary Internal Combustion Engines

Located at Major Stationary Sources; and

PCAPCD, Rule 233, Biomass Boilers.

The rules were adopted by the districts, submitted by the State of

California, and found complete pursuant to EPA's completeness criteria

set forth in 40 CFR Part 51 Appendix V \1\ on the following dates:

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\1\ 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 74.22--November 9, 1993; February 11, 1994; April 11,

1994.

Rule 412--June 1, 1995; June 23, 1995; June 30, 1995.

Rule 233--October 6, 1994; October 19, 1994; October 21,

1995.

Background:

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

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 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 the

requirements of section 182(f). The NOX Supplement should be

referred to for further information on the NOX requirements and is

incorporated into this document 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 compounds (VOCs), in moderate or above

ozone nonattainment areas. The Sacramento Metropolitan Area (including

part of Placer County) and the Ventura County Area are classified as a

severe nonattainment areas for ozone.\2\. Both areas are subject to the

RACT requirements of section 182(b)(2), cited above.

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\2\ The Sacramento Metropolitan (including Placer) and Ventura

areas were designated nonattainment and 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). The

Sacramento Metropolitan Area was reclassified from serious to severe

on June 1, 1995. See 60 FR 20237 (April 25, 1995).

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

stationary sources of VOC emissions (not covered by a pre-enactment

control technique 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

category 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 by May 31, 1995 for those

sources where installation by that date is practicable.

NOX emissions contribute to the production of ground level

ozone and smog. The three rules control emissions of NOX from

various industries used in a wide variety of applications. The rules

were adopted as part of the VCAPCD's, SMAQMD's, and PCAPCD's efforts to

achieve and maintain the National Ambient Air Quality Standards (NAAQS)

for ozone. All three rules are required to satisfy the mandates of the

Clean Air Act requirements, and were submitted pursuant to the CAA

requirements cited above.

EPA Evaluation and 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 interpretations of these requirements,

which form the basis for this action, appear in the NOX Supplement

and various other 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.

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\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, cited above (57 FR 55620). In the NOX

Supplement, EPA provides guidance on how RACT should be determined for

major stationary sources of NOX emissions. The document sets RACT

emission levels specifically for electric utility boilers. For all

other source

[[Page 18961]]

categories, EPA expects States/Districts to establish RACT levels

comparable to those levels for utility boilers taking into account

cost, cost-effectiveness, and emission reductions.

While most of the guidance issued by EPA (previous to the NOX

Supplement) 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 has issued alternative control techniques documents (ACTs),

that identify alternative controls for most categories of stationary

sources of NOX. The ACT documents provide information on control

technology for stationary sources that emit or have the potential to

emit 25 tons per year or more of NOX. While providing guidance and

information for States to use in making RACT determinations, the ACTs

do 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 issued by EPA to ensure that submitted NOX

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

Placer Rule 233 sets NOX limits at 115 parts per million (ppm)

corrected to 12% carbon dioxide (0.2096 pounds per million British

Thermal Units (lb/MMBTU)). This limit corresponds to 162 ppm corrected

to 3% oxygen. The district believes this limit meets RACT because it is

similar to the RACT limits that EPA has set for electric utility

boilers (0.20-0.50 lb/MMBTU). The district set the limits based on

current emission limitations at existing facilities in Placer county,

and is not expecting to achieve any further emissions reductions as a

result of adopting this rule. Additionally, there will be no additional

costs incurred by the sources subject to this rule as a result of its

adoption.

The California Air Resources Board RACT/BARCT Guidance 4

document for institutional, commercial, and industrial boilers suggests

a RACT limit of 70 ppm corrected to 3% O2 for such units fired

with gaseous fuel and 115-150 ppm for units fired with fuels other than

gas. EPA established RACT levels for electric utility boilers and

recommended for other source categories that States/Districts make RACT

determinations comparable to those EPA established for electric utility

boilers. This comparability should be based on several factors

including cost, cost-effectiveness, and emission reductions. Because of

the variability in application, equipment, and input and output

characteristics of different NOX source categories, comparability

cannot easily be done solely by comparing the emissions rates. That is

why EPA suggests that RACT levels should be made in comparison to the

limits set for electric utility boilers using the factors cited above.

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\4\ Determination of Reasonably Available Control Technology and

Best Available Retrofit Control Technology for Industrial,

Institutional, and Commercial Boilers, Steam Generators, and Process

Heaters (RACT/BARCT guidance for ICI boilers), California Air

Resources Board, July 18, 1991.

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EPA does not necessarily agree that the limits in Rule 233

represent what would generally be considered RACT for this source

category, even though the emissions rates are similar to those set for

utility boilers. However, EPA recognizes that the two sources covered

by this rule are already applying NOX reduction technology

according to their permits (district and federal). One source is

permitted at 54 ppm at 12% CO2 and the other at 115 ppm at 12%

CO2. Because these sources are currently utilizing NOX

controls, EPA believes the cost of achieving additional small

reductions of NOX to meet the general RACT limits would be cost

prohibitive. In addition, PCAPCD is not claiming any emissions

reductions in their Federal ozone attainment plan for Rule 233 and has

submitted the rule for incorporation into the SIP to prevent any

NOX emissions increases from this source category. Therefore, EPA

agrees that in this circumstance the limits set in Rule 233 for these

sources satisfies the RACT requirements of the CAA.

Ventura Rule 74.22 sets NOX emission levels at 40 nanograms

per joule of heat output (ng/J). This limit represents a 75% average

reduction from typical natural-gas fired furnaces and will be achieved

from new units being purchased and installed. The limit was chosen so

as not to require homeowners or businesses to modify furnace enclosures

when replacing existing furnaces in order to keep the costs

appropriate. The VCAPCD estimates the cost of compliance at

approximately $2.24 per pound of NOX reduced, and expects the rule

to achieve reductions of 1.5 tons per day. Final compliance is required

by May 31, 1994.

Sacramento Rule 412 sets limits for RACT and BARCT in the rule. The

RACT levels are set at 50/125/700 ppm for rich burn, lean burn, and

diesel engines, respectively. The BARCT limits are set at 25/65/80 ppm

for rich, lean, and diesel engines, respectively. The rule is

structured to allow exemptions from compliance with the emissions

limits for some units which operate at annual levels that the control

of which would not be cost-effective. The rule is expected to achieve

reductions of 2.2 tons per year. RACT is required to be implemented by

July 1, 1995.

EPA is incorporating these rules into the SIP because they

strengthen the SIP through the addition of enforceable measures such as

NOX emission limits, recordkeeping, test methods, definitions, and

compliance tests. EPA believes all three rules for these source

categories in each district satisfy the RACT requirements of the CAA. A

more detailed discussion of the sources controlled, the controls

required, and the analysis of how these controls meet RACT can be found

in the Technical Support Document (TSD) and its attachments, dated

November 1995.

EPA has evaluated the submitted rules and has determined that they

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

rules are new rules establishing RACT for their particular category,

and contain implementation dates consistent with the CAA and EPA's

policy. Therefore, all three 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 July 1, 1996, unless, by May 30, 1996, 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

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

[[Page 18962]]

received, the public is advised that this action will be effective July

1, 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 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, Oxides of

nitrogen, 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: April 1, 1996.

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)(195)(i)(B),

(202)(E)(i)(2), and (222)(i)(C)(3) to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(195) * * *

(i) * * *

(B) Ventura County Air Pollution Control District.

(1) Rule 74.22, adopted on November 9, 1993.

* * * * *

(202) * * *

(i) * * *

(E) * * *

(2) Rule 233, adopted on October 6, 1994.

* * * * *

(222) * * *

(i) * * *

(C) * * *

(3) Rule 412, adopted on June 1, 1995.

* * * * *

[FR Doc. 96-10566 Filed 4-29-96; 8:45 am]

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