Approval and Promulgation of Implementation Plan for South Coast Air Quality Management District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 181-0024a; FRL-5649-8]

Approval and Promulgation of Implementation Plan for South Coast

Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The EPA is taking direct final action to approve South Coast

Air Quality Management District (District) Rules 212, 1301, 1302, 1303,

1304, 1306, 1309, 1309.1, 1310, and 1313 for the purpose of meeting

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

regard to new source review (NSR) in areas that have not attained the

national ambient air quality standards (NAAQS). This approval action

will incorporate these rules into the federally approved State

Implementation Plan (SIP) for California. The rules were submitted by

the State to satisfy certain Federal requirements for an approvable NSR

SIP. 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 February 3, 1997 unless adverse or

critical comments are received by January 3, 1997. 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 9 office during

normal business hours at the following address: New Source Section (A-

5-1), Air and Toxics Division, U.S. Environmental Protection Agency,

Region IX, 75 Hawthorne Street, San Francisco, CA 94105. Copies of the

submitted rules are also available for inspection at the following

locations:

California Air Resources Board, Stationary Source Division, Rule

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

South Coast Air Quality Management District, 21865 E. Copley Drive,

Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Gerardo C. Rios, (A-5-1), Air and

Toxics Division, U.S. Environmental Protection Agency, Region IX, 75

Hawthorne Street, San Francisco, CA 94105-3901, Telephone: (415) 744-

1259.

SUPPLEMENTARY INFORMATION: The air quality planning requirements for

nonattainment NSR are set out in part D of title I of the Clean Air

Act. EPA has issued a ``General Preamble'' describing EPA's preliminary

views on how EPA intends to review SIPs and SIP revisions submitted

under part D, including those State submittals containing nonattainment

NSR SIP requirements [see 57 FR 13498 (April 16, 1992) and 57 FR 18070

(April 28, 1992)]. Because EPA is describing its interpretations here

only in broad terms, the reader should refer to the General Preamble

for a more detailed discussion. EPA has also proposed regulations to

implement

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the changes under the 1990 Amendments in the NSR provisions in parts C

and D of title I of the Act. (See 61 FR 38249 (July 23, 1996)). Upon

final promulgation of those regulations, EPA will review those NSR SIP

submittals on which it has already taken final action to determine

whether additional SIP revisions are necessary.

Procedural Background

The Act requires States to observe certain procedural requirements

in developing implementation plans and plan revisions for submission to

EPA. Section 110(a)(2) and section 110(l) of the Act provide that each

implementation plan or revision to an implementation plan submitted by

a State must be adopted after reasonable notice and public hearing.

Section 172(c)(7) of the Act provides that plan provisions for

nonattainment areas shall meet the applicable provisions of Section

110(a)(2).

The District held a public hearing on December 7, 1995 to accept

public comment on Rules 212, 1301, 1302, 1309, 1309.1, 1310, and 1313.

On December 7, 1995, the Rules were adopted by the District Board of

Directors. The District also held a public hearing on May 10, 1996 to

accept public comment on Rule 1303. On May 10, 1996, the rule was

adopted by the District Board of Directors. Finally, on June 14, 1996

the District held a public hearing to accept public comment on Rules

1304 and 1306. On June 14, 1996, the rules were adopted by the District

Board of Directors. On August 28, 1996, Rules 212, 1301, 1302, 1303,

1304, 1306, 1309, 1309.1, 1310, and 1313 were submitted to EPA as a

proposed revision to the California SIP.

EPA deemed the submittal complete on October 10, 1996 pursuant to

EPA's completeness criteria that are set forth in 40 CFR part 51

appendix V 1 and is being finalized for approval into the SIP.

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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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Summary of Rule Contents

The South Coast Air Quality Management District submitted to EPA

for adoption into the applicable NSR SIP Rule 212 and Regulation XIII,

which is composed of Rules 1301, 1302, 1303, 1304, 1306, 1309, 1309.1,

1310, and 1313. Regulation XIII and Rule 212 constitute the District's

new source permitting rules. Rule 212 contains the District's

administrative requirements including the public consultation process

for permitting.

Rule 1301 is the general purpose and applicability rule. Rule 1302

consists of definitions of all terms relating to new sources and

modifications to existing sources of air pollution, and the

requirements of Regulation XIII. Rule 1303 contains substantive source

permitting requirements including Lowest Achievable Emission Rate

requirements, Best Available Control Technology requirements, offset

requirements, statewide compliance requirements, Federal Land Manager

Notification and Class I Area Visibility Protection requirements, and

Alternative Source Siting Analysis requirements. Rule 1304 establishes

the exemptions from Regulation XIII. Rule 1306 establishes the emission

calculation procedures. Rule 1309 establishes procedures for the

creation, banking, and use of emission reduction credits. Rule 1309.1

establishes the Priority Reserve which will provide credits for

specific priority sources. Rule 1310, Analysis and Reporting,

establishes a thirty day review for the District to issue completeness

determinations for permit applications, and the requirement for public

notification of proposed Emission Reduction Credits. Rule 1313, Permits

to Operate, establishes procedures for issuing permits to operate for

sources not required to obtain a permit to construct. Regulation XIII

and Rule 212, therefore, contain the permitting requirements for

sources located in nonattainment areas.

Rules 212, 1301, 1302, 1303, 1304, 1306, 1309, 1309.1, 1310, and

1313 represent comprehensive revisions to the District's NSR permitting

regulations. These rules are intended to replace Rules 212, 1301, 1302,

1303, 1304, 1305, 1306, 1307, 1308, 1310, and 1313, which were approved

into the SIP by EPA on 2/3/89, 1/21/81, 1/21/81, 2/21/81, 3/12/86, 1/

20/85, 1/21/81, 5/18/81, 1/21/81, 1/21/81, and 1/21/81, respectively.

The District has adopted the current revisions to Regulation XIII and

Rule 212 in part to meet the CAA and the November 15, 1992 deadline for

submittal.

The District is composed of Los Angeles County, Orange County,

Riverside County, and San Bernardino County. The Air Quality Management

Area of the District is designated as an extreme ozone nonattainment

area, while the rest of the District is designated as a severe ozone

nonattainment area. The District is also designated nonattainment for

PM10, NO2, and CO. For the detailed area designations that apply to the

District, please refer to 40 CFR 81.305. The CAA air quality planning

requirements for nonattainment NSR are set out in part D of Title I of

the Act, with implementing regulations at 40 CFR 51.160 through 51.165.

EPA has determined that the District's submittal satisfies these

requirements.

District Rule 201, which prohibits construction of sources or

modifications prior to permit issuance and compliance with the

requirements of these rules, is integral to Regulation XIII. EPA is

approving Regulation XIII based on the understanding that the District

will continue to enforce Rule 201 in a manner consistent with the

federal regulations prohibiting construction before permit issuance.

The District has interpreted Rule 201 to prohibit such pre-permit

construction in its interim Rule 201 interpretation dated September 19,

1994.

In addition, this approval is based on the understanding that the

District will apply a tracking system which will continuously show in

the aggregate that the District: (1) will provide for the necessary

offsets required to meet the appropriate statutory offset ratio; and

(2) will mitigate emissions from those sources exempted from offsets

under Rule 1304 which are not exempt from federal regulation. However,

offsets for sources exempt from offsets due to their switch from ozone

depleting compounds (ODCs) to volatile organic compounds (VOCs) will be

provided by the District through reductions achieved by the District's

1994 attainment plan which EPA has proposed to approve at FR 10920

[Vol.61, No. 53/Monday, March 18, 1996] [CA114-1-7280; FRL-5439-8].

Therefore, the District need not show in the tracking system mitigation

in the aggregate for those particular sources. The District, however,

has committed to track such reductions to avoid double counting

reductions used to meet the offset ratio in the aggregate. If the

District modifies the attainment plan so that it no longer provides

offsets for sources switching emissions from ODCs to VOCs, then the

District will have to show that those VOC emissions increases will be

offset by the District through the tracking system as are all other

emissions sources exempt under Rule 1304, or modify Rule 1304 to

exclude exemptions for such sources.

EPA's approval is also based on the District's interpretation of

Regulation XIII to require a net emissions increase calculation

consistent with federal requirements for extreme ozone non-attainment

areas in the non-SEDAB area, for severe ozone non-attainment areas in

the SEDAB area, and for all other pollutants subject to regulation in

all parts of the District.

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Lastly, as part of this approval, interpollutant trades proposed

within District will be subject to EPA approval.

For a more detailed description of how the submitted Regulation

XIII and Rule 212 meet the Act's applicable requirements, please refer

to EPA's technical support document (TSD).

Action

EPA has evaluated Regulation XIII and Rule 212 and has determined

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

Therefore, District Rules 212, 1301, 1302, 1303, 1304, 1306, 1309,

1309.1, and 1310 are being approved under section 110(k)(3) of the CAA

as meeting the requirements of section 110(a), and part D of Title I of

the Act.

Administrative Review

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 in part

because the District has provided public workshops in the development

of the submitted rules, and provided the opportunity for public comment

prior to adoption of the submitted rules. At that time, no significant

comments were received by the District. The Agency therefore views this

as a non-controversial amendment 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 February 3, 1997,

unless, unless by January 3, 1997, 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. 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 February 3, 1997.

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 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).

Unfunded Mandates and SBREFA

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.

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 these rules 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 Executive Order 12866 review.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Incorporation by reference, Intergovernmental relations, Nitrogen

dioxide, Particulate matter, Reporting and recordkeeping requirements,

Sulfur dioxide, Volatile organic compounds.

Dated: October 29, 1996.

John Wise,

Acting 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 paragraph (c)(240) to read

as follows:

Sec. 52.220 Identification of plan.

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(c) * * *

(240) New and amended regulations for the following APCD were

submitted on August 28, 1996 by the Governor's designee.

(i) Incorporation by reference.

(A) South Coast Air Quality Management District.

(1) Rules 212, 1301, 1302, 1309, 1309.1, 1310, and 1313, adopted on

December 7, 1995, Rule 1303, adopted

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on May 10, 1996, and Rules 1304 and 1306, adopted on June 14, 1996.

* * * * *

[FR Doc. 96-30872 Filed 12-3-96; 8:45 am]

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