Approval and Promulgation of Air Quality Implementation Plans; Maine; Stage II Vapor Recovery

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[ME-001-3567a; A-1-FRL-5620-1]

Approval and Promulgation of Air Quality Implementation Plans;

Maine; Stage II Vapor Recovery

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is approving a State Implementation Plan (SIP) revision

submitted by the State of Maine on July 24, 1995. This revision

includes requirements for controlling volatile organic compound (VOC)

emissions from bulk gasoline terminals and gasoline dispensing

facilities. The intended effect of this action is to approve these

regulations into the Maine SIP. This action is being taken in

accordance with the Clean Air Act.

DATES: This action is effective December 16, 1996, unless EPA receives

adverse or critical comments by November 14, 1996. If the effective

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

Register.

ADDRESSES: Comments may be mailed to Susan Studlien, Deputy Director,

Office of Ecosystem Protection, U.S. Environmental Protection Agency,

Region I, JFK Federal Building, Boston, MA 02203. Copies of the

documents relevant to this action are available for public inspection

during normal business hours, by appointment at the Office of Ecosystem

Protection, U.S. Environmental Protection Agency, Region I, One

Congress Street, 11th floor, Boston, MA; Air and Radiation Docket and

Information Center, U.S. Environmental Protection Agency, 401 M Street,

S.W., (LE-131), Washington, D.C. 20460; and the Bureau of Air Quality

Control, Department of Environmental Protection, 71 Hospital Street,

Augusta, ME 04333.

FOR FURTHER INFORMATION CONTACT: Anne E. Arnold, (617) 565-3166.

SUPPLEMENTARY INFORMATION: On July 26, 1995, EPA received a formal

State Implementation Plan submittal from the Maine Department of

Environmental Protection (DEP) containing the following VOC

regulations:

Chapter 100: Definitions Regulation

Chapter 112: Bulk Terminal Petroleum Liquid Transfer Requirements

Chapter 118: Gasoline Dispensing Facilities Vapor Control

These regulations had been recently revised pursuant to the

reasonable further progress (RFP) requirements of the Clean Air Act

(CAA) [Section 182(b)(1)].

Background

On November 15, 1990, amendments to the 1977 Clean Air Act were

enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C.

7401-7671q. Section 182(b)(1) of the amended Act requires that states

with ozone nonattainment areas classified as moderate and above develop

reasonable further progress (RFP) plans to reduce VOC emissions by 15

percent within these areas by 1996 when compared to 1990 baseline

emission levels. The State of Maine contains three moderate ozone

nonattainment areas 56 FR 56694 (Nov. 6, 1991). EPA, however,

determined that RFP plans were not required in the Lewiston-Auburn

moderate ozone nonattainment area and the Knox and Lincoln counties

moderate ozone nonattainment area (60 FR 29763, (June 6, 1995)).

Therefore, Maine adopted and submitted to EPA an RFP Plan for the

Portland moderate ozone nonattainment area only. The revisions to

Maine's Chapter 112 and Chapter 118 were adopted in order to generate

VOC

[[Page 53637]]

emission reductions which are included in Maine's RFP Plan for the

Portland area.

Also, Section 184(b)(2) of the amended Act requires that states in

the Ozone Transport Region (OTR) adopt Stage II or comparable measures

within one year of EPA completion of a study identifying control

measures capable of achieving emissions reductions comparable to those

achievable through Section 182(b)(3) Stage II vapor recovery controls.

On January 13, 1995, EPA completed its study ``Stage II Comparability

Study for the Northeast Ozone Transport Region'' (EPA-452/R-94-011).

Therefore, states in the OTR must adopt Stage II or comparable measures

and submit them to EPA as a SIP revision by January 13, 1996. Maine has

not yet submitted its Stage II comparability SIP revision to EPA,

however, the reductions resulting from Maine's revisions to Chapters

112 and 118 may be used by the State in meeting the Stage II

comparability requirement.

Maine's regulation revisions are briefly summarized below.

Summary of Regulation Revisions

Chapter 100: Definitions Regulation

The definition of ``volatile organic compound (VOC)'' was revised.

Acetone, parachlorobenzotriflouride, and volatile methyl siloxanes are

now included on the list of compounds that are exempted from the

definition of VOC because of their negligible photochemical reactivity.

Chapter 112: Bulk Terminal Petroleum Liquid Transfer Requirements

The emission limit for bulk gasoline terminals was lowered from 80

mg/l to 35 mg/l. Compliance with the new lower limit is required by

August 31, 1996.

Chapter 118: Gasoline Dispensing Facilities Vapor Control

New Stage II vapor recovery requirements for gasoline dispensing

facilities were added to this regulation.

Gasoline dispensing facilities in the Portland ozone nonattainment

area which dispense 1,000,000 gallons of gasoline or more per year must

install Stage II controls by November 15, 1996.

Maine's revisions will reduce VOC emissions. VOCs contribute to the

production of ground level ozone and smog. These revisions were adopted

as part of an effort to achieve the National Ambient Air Quality

Standards for ozone. The following is EPA's evaluation of Maine's

submittal.

Evaluation of Maine's Submittal

In determining the approvability of a VOC rule, EPA must evaluate

the rule for consistency with the requirements of the Act and EPA

regulations, as found in section 110 and part D of the Act and 40 CFR

part 51 (Requirements for Preparation, Adoption, and Submittal of

Implementation Plans). EPA's interpretation of these requirements,

which forms the basis for today's action, appears in various EPA policy

guidance documents. The specific guidance relied on for this action is

referenced within the technical support document and this notice. For

the purpose of assisting State and local agencies in developing VOC

rules, EPA prepared a series of Control Techniques Guideline (CTG)

documents. The CTGs are based on the underlying requirements of the Act

and specify presumptive norms for reasonably available control

technology (RACT) for specific source categories. EPA has not yet

developed CTGs to cover all sources of VOC emissions. Further

interpretations of EPA policy are found in, but not limited to, the

following: (1) The proposed Post-1987 ozone and carbon monoxide policy,

52 FR 45044 (November 24, 1987); (2) the document entitled, ``Issues

Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations,

Clarification to Appendix D of November 24, 1987 Federal Register

Notice,'' otherwise known as the ``Blue Book'' (notice of availability

was published in the Federal Register on May 25, 1988); and (3) the

``Model Volatile Organic Compound Rules for Reasonably Available

Control Technology,'' (Model VOC RACT Rules) issued as a staff working

draft in June of 1992. In general, these guidance documents have been

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

or maintain the SIP.

Also, under Section 182(b)(3) of the Act, EPA was required to issue

guidance as to the effectiveness of Stage II vapor recovery systems. In

November 1991, EPA issued technical and enforcement guidance to meet

this requirement. In addition, on April 16, 1992, EPA published the

``General Preamble for the Implementation of Title I of the Clean Air

Act Amendments of 1990'' (General Preamble) (57 FR 13498). The guidance

documents and the General Preamble interpret the Stage II statutory

requirement and indicate what EPA believes a State submittal needs to

include to meet that requirement.

EPA has evaluated Maine's revisions to its Chapter 100 and 112

regulations and has found that these revisions are generally consistent

with EPA model regulations, 40 CFR Part 51.100(s), 40 CFR Part 60

Subpart XX, and the following EPA guidance document: ``Control of

Hydrocarbons from Tank Truck Gasoline Loading Terminals'' (EPA-450/2-

77-026). EPA has also evaluated the Stage II vapor recovery provisions

which were added to Maine's Chapter 118 regulation and has found that

these provisions are generally consistent with the following EPA

guidance documents: ``Technical Guidance--Stage II Vapor Recovery

Systems for Control of Vehicle Refueling Emissions at Gasoline

Dispensing Facilities'' (EPA-450/3-91-022); and ``Enforcement Guidance

for Stage II Vehicle Refueling Control Programs'' (October 1991).

There is, however, one provision of Chapter 118 which is unique to

Maine's Stage II program. This provision is briefly summarized below.

Maine's Market-Based Exemption

Section 12 of Maine's revised Chapter 118 includes a ``market-based

exemption'' provision which states that a gasoline dispensing facility

may apply for an exemption from the Stage II requirements of the

regulation if the facility installs Stage II controls at substituting

facilities not otherwise subject to the rule (i.e., gasoline dispensing

facilities whose gasoline throughput is less than the 1,000,000 gallons

per year applicability threshold of the regulation). The substituting

facilities must be located in the Portland ozone nonattainment area and

have a total combined throughput which is greater than the throughput

of the facility requesting the exemption. In addition, ``All

substituting facilities participating in the market-based exemption are

subject to all Stage II requirements specified in Section 4 (Standards

for Stage II vapor recovery systems), Section 7 (Testing for Stage II

vapor recovery systems), Section 8 (Training and Public Education),

Section 9 (Recordkeeping and Reporting), and Section 10 (Registration

of the Stage II vapor recovery systems).'' This ``market-based

exemption'' provision may be viewed as an economic incentive program in

which participation is limited to gasoline dispensing facilities.

In order for EPA to grant approval of a state's economic incentive

program certain criteria must be met. These criteria are outlined in

EPA's Economic Incentive Program (EIP) rule which was promulgated on

April 7, 1994 (59 FR 16690) and is codified at 40 CFR Part 51 Subpart

U. Specifically, the EIP rule requires that trading programs contain

specific source requirements, replicable

[[Page 53638]]

emissions quantification methods, audit/reconciliation procedures, and

an additional environmental benefit beyond that which would be achieved

through a traditional regulatory program. EPA has evaluated Maine's

Stage II market-based exemption provision and has found that this

provision, in conjunction with the state's Stage II implementation

policy (as stated in a letter to EPA dated May 6, 1996), satisfies the

criteria outlined in the EIP rule.

A detailed discussion of Maine's Chapter 100, Chapter 112, and

Chapter 118 revisions and EPA's evaluation are contained in a

memorandum dated June 19, 1996, entitled ``Technical Support Document--

Maine--Stage II Vapor Recovery.'' Copies of that document are

available, upon request, from the EPA Regional Office listed in the

ADDRESSES section of this notice.

EPA is publishing this action without prior proposal in order to

expedite the Agency's approval 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 16, 1996

unless adverse or critical comments are received by November 14, 1996.

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 on December 16, 1996.

Final Action

EPA is approving Maine's revised Chapter 100 ``Definitions

Regulation,'' Maine's revised Chapter 112 ``Bulk Terminal Petroleum

Liquid Transfer Requirements,'' and Maine's revised Chapter 118

``Gasoline Dispensing Facilities Vapor Control.''

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 populations of less than

50,000.

SIP approvals under Section 110 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).

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 revision, the

State and any affected local or tribal governments have elected to

adopt the program provided for under Sections 182 and 184 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; such sources are already subject to these regulations

under State law. Accordingly, 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.

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).

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 review under Executive Order

12866.

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.

Under Section 307(b)(1) of the Clean Air Act, petitions for

judicial review of this action must be filed in the United States Court

of Appeals for the appropriate circuit by December 16, 1996. Filing a

petition for reconsideration by the Administrator of this final rule

does not affect the finality of this rule for the purposes of judicial

review nor does it extend the time within which a petition for judicial

review may be filed, and shall not postpone the effectiveness of such

rule or action. This action may not be challenged later in proceedings

to enforce its requirements. (See Section 307(b)(2).) Any such petition

must be based on objections raised with reasonable specificity as a

public comment, unless it was impracticable to do so. Section

307(b)(7)(B). Therefore, interested parties should comment in response

to the proposed rule rather than petition for judicial review, unless

the objection arises after the comment period allowed for in the

proposal.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Incorporation by reference, Ozone.

Note: Incorporation by reference of the State Implementation

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

Federal Register on July 1, 1982.

Dated: September 23, 1996.

John P. DeVillars,

Regional Administrator, Region I.

Part 52 of 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:

[[Page 53639]]

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

Subpart U--Maine

2. Section 52.1020 is amended by adding paragraphs (c)(42) and

(c)(43) to read as follows:

Sec. 52.1020 Identification of plan.

* * * * * *

(c) * * *

(42) Revisions to the State Implementation Plan submitted by the

Maine Department of Environmental Protection on July 24, 1995.

(i) Incorporation by reference.

(A) Two letters from the Maine Department of Environmental

Protection dated July 24, 1995 submitting revisions to the Maine State

Implementation Plan.

(B) Chapter 100 of the Maine Department of Environmental Protection

Regulations, ``Definitions Regulation,'' definition of ``volatile

organic compounds (VOC)'' effective in the State of Maine on July 25,

1995.

(C) Chapter 112 of the Maine Department of Environmental Protection

Regulations, ``Bulk Terminal Petroleum Liquid Transfer Requirements,''

effective in the State of Maine on July 25, 1995.

(ii) Additional materials

(A) Nonregulatory portions of the submittal.

(43) Revisions to the State Implementation Plan submitted by the

Maine Department of Environmental Protection on July 24, 1995.

(i) Incorporation by reference.

(A) Letter from the Maine Department of Environmental Protection

dated July 24, 1995 submitting a revision to the Maine State

Implementation Plan.

(B) Chapter 118 of the Maine Department of Environmental Protection

Regulations, ``Gasoline Dispensing Facilities Vapor Control,''

effective in the State of Maine on July 25, 1995.

(ii) Additional materials

(A) Letter from the Maine Department of Environmental Protection

dated May 6, 1996.

(B) Nonregulatory portions of the submittal.

3. In Sec. 52.1031, Table 52.1031 is amended by adding new entries

to existing state citations for Chapters 100, 112, and 118 to read as

follows:

Sec. 52.1031 EPA--Approved Maine Regulations.

* * * * *

Table 52.1031--EPA--Approved Rules and Regulations

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Date adopted Date approved by Federal Register

State citation Title/Subject by State EPA citation 52.1020

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* * * * * * *

100............................. Definitions........ 7/19/95 October 15, 1996... [Insert FR citation (c)(42) Definition of ``VOC''

from published revised.

date].

* * * * * * *

112............................. Gasoline Bulk 7/19/95 October 15, 1996... [Insert FR citation (c)(42) Emission limit lowered

Terminals. from published from 80 mg/l to 35 mg/

date]. l

* * * * * * *

118............................. Gasoline Dispensing 7/19/95 October 15, 1996... [Insert FR citation (c)(43) Stage II vapor recovery

Facilities. from published requirements added.

date].

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[FR Doc. 96-26197 Filed 10-11-96; 8:45 am]

BILLING CODE 6560-50-P