Approval and Promulgation of State Implementation Plans; California State Implementation Plan Revision; Mojave Desert Air Quality Management District; South Coast Air Quality Management District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 126-0011a; FRL-5616-6]

Approval and Promulgation of State Implementation Plans;

California State Implementation Plan Revision; Mojave Desert Air

Quality Management 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 to approve revisions to the

California State Implementation Plan (SIP). The revisions concern rules

from the Mojave Desert Air Quality Management District (MDAQMD) and the

South Coast Air Quality Management District (SCAQMD). The rules control

oxides of nitrogen (NOx) from boilers and process heaters,

internal combustion engines, residential natural gas-fired water

heaters, and stationary gas turbines. This action will incorporate

these rules into the Federally approved SIP. The intended effect of

approving these rules is to regulate emissions of NOx in

accordance with the requirements of the Clean Air Act, as amended in

1990 (CAA or the Act). The 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 December 31, 1996 unless adverse or

critical comments are received by December 2, 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 of 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,

SW., Washington, DC 20460.

California Air Resources Board, Stationary Source Division, Rule

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

Mojave Desert Air Quality Management District, 15428 Civic Drive, Suite

200, Victorville, CA 92392.

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 94105-3901, Telephone: (415)

744-1200.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being approved into the California SIP include: MDAQMD

Rule 1157, Boilers and Process Heaters; MDAQMD Rule 1160, Internal

Combustion Engines; SCAQMD Rule 1121, Control of Nitrogen Oxides from

Residential Type Natural Gas-Fired Water Heaters; and SCAQMD Rule 1134,

Emissions of Oxides of Nitrogen from Stationary Gas Turbines.

Background

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

the Act) 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 and provides

preliminary guidance on the requirements of section 182(f). 57 FR

55620. The NOx Supplement should be referred to for further

information on the NOx requirements and is incorporated into this

notice of direct final rulemaking 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

Southeast Desert Air Basin is classified as severe, and the Los

Angeles-South Coast Air Basin Area is classified as extreme; 1

therefore these areas were subject to section 182(f), the RACT

requirements of section 182(b)(2), and the November 15, 1992 deadline,

cited below.

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\1\ The Southeast Desert Air Basin and the Los Angeles-South

Coast Air Basin Area retained their designations of nonattainment

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

stationary sources of VOC (and NOX) emissions not covered by

either a pre-enactment or post-enactment control techniques guideline

(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.

MDAQMD Rule 1157 and Rule 1160 were both adopted on October 26,

1994, and submitted by CARB to EPA on November 30, 1994. SCAQMD Rule

1121 was adopted on March 10, 1995,

[[Page 56471]]

and submitted on May 24, 1995. SCAQMD Rule 1134 was adopted on December

7, 1995 and submitted on March 26, 1996. These submitted rules were

found to be complete on January 30, 1995, July 24, 1995, and May 15,

1996, respectively, pursuant to EPA's completeness criteria that are

set forth in 40 CFR part 51 Appendix V.2 By today's document, EPA

is taking direct final action to approve these rules into the SIP.

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\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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MDAQMD Rule 1157 controls emissions of NOX from boilers and

process heaters, and MDAQMD Rule 1160 regulates internal combustion

engines. SCAQMD Rule 1121 controls emissions from residential water

heaters, and SCAQMD Rule 1134 applies to stationary gas turbines.

NOX emissions contribute to the production of ground level ozone

and smog. The rules were adopted as part of each district's efforts to

achieve the National Ambient Air Quality Standards for ozone and in

response to the CAA requirements cited above. The following section

contains EPA's evaluation and final action for these rules.

EPA Evaluation

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 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.

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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); 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), which 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 are fully

enforceable and strengthen or maintain the SIP.

MDAQMD Rule 1157 is a new rule which controls emissions from

boilers, steam generators, and process heaters with rated heat inputs

of 5 million British Thermal Units per hour (MMBTU/hr) or more, used in

a variety of industrial, institutional, and commercial operations. This

rule contains NOX RACT limits of 70 ppmv for units operated on

gaseous fuel and 115 ppmv for units operated on liquid or solid fuel.

Units permitted to emit more than 5 tons/day or more than 250 tons/year

of NOX must meet stricter emission limits. This rule also requires

monitoring of fuel usage and annual source testing.

MDAQMD Rule 1160 is a new rule regulating internal combustion

engines rated at 500 brake horsepower (bhp) or greater. The rule

contains a VOC limit of 106 ppmv and a CO limit of 4500 ppmv. NOX

limits depend on the type of engine: 50 ppmv for rich-burn engines, 140

ppmv for lean-burn, and 700 ppmv for diesel. The rule also contains

provisions for an alternative method of compliance with NOX limits

by requiring reductions of uncontrolled NOX emissions by at least

90% for rich-burn engines, 80% for lean-burn engines, and 30% for

diesel engines. Operator inspections are required at least every

calendar quarter or after every 2,000 hours of operation, whichever is

more frequent.

SCAQMD Rule 1121 applies to manufacturers, distributors, retailers,

and installers of residential natural gas-fired water heaters. This

submitted rule is a revision to the existing SIP rule, and contains the

following major changes:

An ``Applicability'' section has been added for

clarification.

Definitions have been added for several terms, such as:

independent testing laboratory, mobile home water heater, and rated

heat input capacity.

Certification requirements have been amended to require

source testing and verification from an independent testing laboratory,

and reverification every three years.

SCAQMD Rule 1134 is a new rule that controls emissions from

stationary gas turbines of 0.3 megawatt and larger. The rule contains

NOX emission limits ranging from approximately 9 ppmv to 25 ppmv,

depending on the size of the unit. Annual source testing is required

for units emitting 25 tons of NOX per year or more. All other

units must source test after every 8,400 hours of operation. This rule

requires the use of a continuous emissions monitoring system with data

gathering and retrieval capability, and requires maintenance of a daily

operating log.

A more detailed discussion of the sources controlled,4 the

controls required, and the justification for why these controls

represent RACT can be found in the Technical Support Document (TSD) for

each rule, available from the U.S. EPA Region IX office.

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\4\ SCAQMD Rule 1121 and Rule 1134 will apply to sources which

are not covered in the SCAQMD NOX RECLAIM program.

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EPA has evaluated the submitted rules and has determined that they

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

MDAQMD Rule 1157, MDAQMD Rule 1160, SCAQMD Rule 1121, and SCAQMD Rule

1134 are being approved under section 110(k)(3) of the CAA as meeting

the requirements of section 110(a), section 182(b)(2), section 182(f)

and the NOX Supplement to the General Preamble.

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.

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, the EPA is proposing to approve the SIP revisions

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

effective December 31, 1996, unless, within 30 days of its

[[Page 56472]]

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 December 31, 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 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).

Regulatory Flexibility Act

Under the Regulatory Flexibility Act, 5 U.S.C. Section 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 sections 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.

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 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).

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 review under Executive Order 12866.

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 compound.

Dated: September 17, 1996.

Felicia Marcus,

Regional Administrator.

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)

(207)(i)(D)(3), (220)(i)(C), and (230)(i)(B) to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(207) * * *

(i) * * *

(D) * * *

(3) Rule 1157 and Rule 1160, adopted on October 26, 1994.

* * * * *

(220) * * *

(i) * * *

(C) South Coast Air Quality Management District.

(1) Rule 1121, adopted on March 10, 1995.

* * * * *

(230) * * *

(i) * * *

(B) South Coast Air Quality Management District.

(1) Rule 1134, adopted on December 7, 1995.

* * * * *

[FR Doc. 96-27846 Filed 10-31-96; 8:45 am]

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