Approval and Promulgation of State Implementation Plans; California State Implementation Plan Revision; Kern County Air Pollution Control District; Santa Barbara County Air Pollution Control District; South Coast Air Quality Management District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 043-0017a; FRL-5617-4]

Approval and Promulgation of State Implementation Plans;

California State Implementation Plan Revision; Kern County Air

Pollution Control District; Santa Barbara County Air Pollution Control

District; 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 (SIP). The revisions concern rules

from the Kern County Air Pollution Control District (KCAPCD), the Santa

Barbara County Air Pollution Control District (SBCAPCD), and 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). The rules

control VOC emissions from organic solvent degreasing operations,

petroleum storage tank degassing, and gasoline transfer and dispensing

operations. Thus, EPA is finalizing the approval of these rules 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 December 6, 1996 unless adverse or

critical comments are received by November 6, 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 also

available for inspection at the following locations:

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 95812.

Kern County Air Pollution Control District, 2700 ``M'' Street, Suite

290, Bakersfield, CA 93301.

Santa Barbara County Air Pollution Control District, 26 Castilian

Drive, B-23, Goleta, CA 93117.

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

The rules being approved into the California SIP include: KCAPCD

Rule 412.1, Transfer of Gasoline into Vehicle Fuel Tanks; KCAPCD Rule

410.3, Organic Solvent Degreasing Operations; KCAPCD Rule 102,

Definitions; SBCAPCD Rule 343, Petroleum Storage Tank Degassing; and

SCAQMD Rule 461, Gasoline Transfer and Dispensing.

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 Joaquin Valley Air

Basin,1 the South Central Coast Air Basin and the Los Angeles-

South Coast Air Basin Area. 43 FR 8964, 40 CFR 81.305. These areas did

not attain the ozone standard by their approved attainment dates.2

On May 26, 1988, EPA notified the Governor of California, pursuant to

section 110(a)(2) of the 1977 Act, that the KCAPCD, SBCAPCD and SCAQMD

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.

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\1\ At the time, Kern County was included in the San Joaquin

Valley Air Basin and the Southeast Desert Air Basin. The San Joaquin

Valley Air Basin was designated as nonattainment and the Southeast

Desert Air Basin was designated as unclassified.

\2\ The South Central Coast Air Basin and the Los Angeles-

South Coast Air Basin Area received extensions of their attainment

dates to December 31, 1987. Kern County's attainment date remained

December 31, 1982.

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On May 20, 1991, the San Joaquin Valley Unified Air Pollution

Control District was formed. This district has authority over the San

Joaquin Valley Air Basin Portion of Kern County. Thus, as of March 20,

1991, the KCAPCD has authority over only the Southeast Desert Air Basin

portion of Kern County.

Section 182(a)(2)(A) applies to areas designated as nonattainment

prior to enactment of the CAA 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 EPA's pre-amendment guidance.3 EPA's SIP-Call used

that guidance to indicate the necessary corrections for specific

nonattainment areas. The South Central Coast Air Basin is classified as

moderate and the Los Angeles-South Coast Air Basin Area is classified

as extreme; therefore, these areas were subject to the RACT fix-up

requirement and the May 15, 1991 deadline. All of Kern County is

classified as serious. However, the Southeast Desert Air Basin portion

of Kern County was not a pre-amendment nonattainment area and,

therefore, was not designated and classified upon enactment of the

amended Act.4 For this reason, KCAPCD is not subject to the

section 182(a)(2)(A) RACT fix-up requirement. The KCAPCD is, however,

still subject to the requirements of EPA's SIP-Call because the SIP-

Call included all of Kern County. The substantive requirements of the

SIP-Call are the same as those of the statutory RACT fix-up

requirement.

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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); and the existing control

technique guidelines (CTGs).

\4\ The South Central Coast Air Basin, the Los Angeles-South

Coast Air Basin Area, and the San Joaquin Valley Air Basin portion

of KCAPCD retained their nonattainment designations and were

classified by operation of law pursuant to section 107(d) and 181(a)

upon the date of enactment of the CAA. The Southeast Desert Air

Basin portion of the KCAPCD was designated nonattainment on November

6, 1991. See 56 FR 56694 (November 6, 1991).

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This document addresses EPA's direct final action for KCAPCD Rule

412.1, Transfer of Gasoline into Vehicle Fuel Tanks; KCAPCD Rule 410.3,

Organic Solvent Degreasing Operations; KCAPCD Rule 102, Definitions;

SBCAPCD Rule 343, Petroleum Storage

[[Page 52298]]

Tank Degassing; and SCAQMD Rule 461, Gasoline Transfer and Dispensing.

The State of California submitted these rules for inclusion into its

SIP, and EPA found them to be complete pursuant to EPA's completeness

criteria that are set forth in 40 CFR part 51 Appendix V.5 The

following table contains the dates of adoption, submittal, and

completeness for each rule.

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\5\ 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 No. Adopted Submitted Complete

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KCAPCD 412.1............................. 11/9/92 1/11/93 3/26/93

KCAPCD 410.3............................. 3/7/96 5/10/96 7/19/96

KCAPCD 102............................... 3/7/96 5/10/96 7/19/96

SBCAPCD 343.............................. 12/14/93 3/29/94 6/3/94

SCAQMD 461............................... 9/8/95 1/31/96 4/2/96

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KCAPCD Rule 412.1 and SCAQMD Rule 461 control VOC emissions during

gasoline transfer and dispensing operations. KCAPCD Rule 410.3

regulates organic solvent degreasing operations, and KCAPCD Rule 102

contains general definitions used in other district rules. SBCAPCD Rule

343 controls VOC emissions from the degassing of petroleum storage

tanks. VOCs contribute to the production of ground level ozone and

smog. These rules were originally adopted as part of district efforts

to achieve the National Ambient Air Quality Standard for ozone and in

response to EPA's SIP-Call. The following is EPA's evaluation and

direct final action for these rules.

EPA Evaluation

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 3. 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 KCAPCD Rule 410.3 is ``Control of Volatile Organic

Emissions from Solvent Metal Cleaning,'' EPA-450/2-77-022, and the CTG

applicable to SCAQMD Rule 461 is ``Control of Volatile Organic Compound

Leaks from Gasoline Tank Trucks and Vapor Collection Systems,'' EPA

450/2-78-051. For some source categories, such as storage tank

degassing and phase II vapor recovery, EPA did not publish a CTG.

Therefore, there is no CTG applicable to KCAPCD Rule 412.1 or SBCAPCD

Rule 343. In such cases, the District makes a determination of what

controls are required to satisfy the RACT requirement, by reviewing the

operations of facilities within the affected source category. In that

review, the technological and economic feasibility of the proposed

controls are considered. Additionally, for both CTG and non-CTG rules,

the District may rely on EPA policy documents, such as the Blue Book or

model rules, to ensure that the adopted VOC rules are fully enforceable

and strengthen or maintain the SIP. KCAPCD Rule 412.1 was evaluated

against EPA's draft model stage II rule, dated August 17, 1992. KCAPCD

Rule 102 contains only definitions and is not considered a prohibitory

rule, and therefore it was not evaluated for RACT requirements.

KCAPCD Rule 412.1 is an amended rule which regulates the dispensing

of gasoline into motor vehicle fuel tanks.

This rule contains the following significant changes from the

current SIP:

Adds definitions, recordkeeping and testing requirements.

Adds requirements related to equipment operation and

maintenance.

KCAPCD Rule 410.3 is an amended rule controlling solvent degreasing

operations. The only change to this rule involved revising the

``volatile organic compound'' definition to reference KCAPCD Rule 102.

KCAPCD Rule 102 contains definitions for terms used and referenced

in other district rules. The definitions for ``exempt compounds'' and

``loading rack'' were added, and the definition for ``valley basin and

desert basin'' was deleted.

SBCAPCD Rule 344 is a new rule which controls VOC emissions from

the degassing of petroleum storage tanks, reservoirs, or other

containers. Above-ground containers and underground tanks are subject

to this rule depending upon their capacity and the vapor pressure of

the stored organic liquid. The rule requires degassing emissions to be

controlled by at least 90%, using one of several methods, including

liquid balancing, liquid displacement, or refrigeration. Monitoring of

refrigeration and carbon adsorption is required, along with records of

monitoring results, vapor pressures, and degassing events.

SCAQMD Rule 461 is an amended rule that includes the following

significant changes from the current SIP:

Adds definitions, recordkeeping requirements, and test

methods.

Adds requirements for phase I and phase II equipment,

initial and reverification testing, self-compliance inspection and

maintenance, and completion of a training program.

Deletes outdated compliance schedules.

EPA has evaluated the submitted rules and has determined that they

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

Therefore, KCAPCD Rule 412.1, KCAPCD Rule 410.3, KCAPCD Rule 102,

SBCAPCD Rule 343, and SCAQMD Rule 461 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 action and anticipates no

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

Register publication, EPA is proposing to approve the SIP revision

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

effective December 6, 1996, unless, by November 6, 1996, adverse or

critical comments are received.

If 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. EPA will not institute a second comment period on this

action.

[[Page 52299]]

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 December 6, 1996.

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 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 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.

Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business

Regulatory Enforcement Fairness Act of 1996, EPA submitted a report

containing this rule and other required information to the U.S. Senate,

the U.S. House of Representatives and the Comptroller General of the

General Accounting Office prior to publication of the rule in today's

Federal Register. This rule is not a ``major rule'' as defined by 5

U.S.C. 804(2).

Small Businesses

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 populations 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).

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

by the Regional Administrator under 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 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, 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: September 17, 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)(191)(i)(D),

(c)(196)(i)(C)(3), (c)(229)(i)(A), and (c)(231)(i)(B) to read as

follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(191) * * *

(i) * * *

(D) Kern County Air Pollution Control District.

(1) Rule 412.1, adopted on November 9, 1992.

* * * * *

(196) * * *

(i) * * *

(C) * * *

(3) Rule 343, adopted on December 14, 1993.

* * * * *

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

submitted on January 31, 1996, by the Governor's designee.

(i) Incorporation by reference.

(A) South Coast Air Quality Management District.

(1) Rule 461, adopted on September 8, 1995.

* * * * *

(231) * * *

(i) * * *

(B) Kern County Air Pollution Control District.

(1) Rule 102 and Rule 410.3, adopted on March 7, 1996.

* * * * *

[FR Doc. 96-25467 Filed 10-4-96; 8:45 am]

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