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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 71-8-6938a; FRL-5423-9]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; Kern County Air Pollution Control

District, Sacramento Metropolitan Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: EPA is taking direct final action to approve revisions to the

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

from the following districts: the Kern County Air Pollution Control

District (KCAPCD) and the Sacramento Metropolitan Air Management

Control District (SMAQMD). This approval action will incorporate two

rules into the federally approved SIP and remove one rule from the SIP.

The two rules control oxides of nitrogen (NOx) emissions from the

operations of stationary gas turbines and the rule to be removed

controls NOx emissions from steam generators used in the oil

production operations.

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). In addition, the final

action on these rules serves as a final determination that the findings

of nonsubmittal for these rules have been corrected and that on the

effective date of this action, any Federal Implementation Plan (FIP)

clock is stopped. Thus, 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 April 30, 1996 unless adverse or

critical comments are received by April 1, 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:

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

SW., Washington, D.C. 20460.

California Air Resources Board, Stationary Source Division, Rule

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

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

290, Bakersfield, CA 93301.

Sacramento Metropolitan Air Quality Management District, 8411 Jackson

Road, Sacramento, CA 95826.

FOR FURTHER INFORMATION CONTACT: Daniel A. Meer, 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) 744-1185.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being approved into the California SIP include: KCAPCD,

Rule 425, Cogeneration Gas Turbine Engines (Oxides of Nitrogen), and

SMAQMD, Rule 413, Stationary Gas Turbines. The rule being removed from

the SIP is KCAPCD Rule 425, Oxides of Nitrogen Emissions from Steam

Generators Used in Thermally Enhanced Oil Recovery--Western Kern County

Fields. The KCAPCD rules were submitted by the California Air Resources

Board (CARB) to EPA on November 18, 1993 and the SMAQMD rule was

submitted on June 16, 1995.

Background

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

the Act) were enacted. Public Law 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 (NPRM) 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

guidance on 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 proposal 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 Kern County area is

classified as serious; the Sacramento Metro Area is classified as

severe; 1 therefore these areas were subject to the RACT

requirements of section 182(b)(2), cited below.

\1\ Kern County retained its designation of nonattainment and

was 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 Metro Area was reclassified from

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

---------------------------------------------------------------------------

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

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

control techniques 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

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 not later than May 31, 1995.

The State of California submitted many revised RACT rules for

incorporation into its SIP on November 18, 1993 and June 16, 1995,

including the rules being acted on in this

[[Page 7993]]

document. This document addresses EPA's direct-final action for KCAPCD

Rule 425, Cogeneration Gas Turbine Engines (Oxides of Nitrogen), and

SMAQMD Rule 413, Stationary Gas Turbines. KCAPCD adopted Rule 425 on

August 16, 1993 and SMAQMD adopted Rule 413 on April 6, 1995. These

submitted rules were found to be complete on December 27, 1993 and June

30, 1995 pursuant to EPA's completeness criteria that are set forth in

40 CFR part 51, appendix V 2 and are being finalized for approval

into the SIP. This document also addresses the State of California's

request that Rule 425, Oxides of Nitrogen Emissions from Steam

Generators Used in Thermally Enhanced Oil Recovery--Western Kern County

Fields, be removed from the SIP.

\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).

---------------------------------------------------------------------------

Rules 425 and 413 control the emissions of NOX from stationary

gas turbine operations; rescinded Rule 425 controls emissions from

steam generators used in the oil production operations. NOX

emissions contribute to the production of ground level ozone and smog.

The rules were adopted as part of KCAPCD's and SMAQMD's efforts to

achieve the National Ambient Air Quality Standards (NAAQS) for ozone

and in response to the CAA requirements cited above. The following is

EPA's evaluation and final action for these rules.

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). EPA's interpretation of these requirements,

which forms the basis for this action, appears in the NOX

Supplement (57 FR 55620) 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.

\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).

---------------------------------------------------------------------------

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. 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 has

issued alternative control technique documents (ACTs), that identify

alternative controls for all 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. However, 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 set forth

to ensure that submitted NOX RACT rules meet Federal RACT

requirements and are fully enforceable and strengthen or maintain the

SIP.

KCAPCD's submitted Rule 425, Cogeneration Gas Turbine Engines

(Oxides of Nitrogen), is a new rule that will control NOX

emissions from cogeneration gas turbines with rating equal to or

greater than 10 megawatts (MW) used in producing steam and generate

electric power for use in industrial and power utility operations. The

rule limits NOX emissions from units using selective catalytic

reduction (SCR) to 9 parts per million by volume (ppmv) when operated

on gaseous fuel and to 25 ppmv when operated on oil fuel. For the same

size units (i.e., Westinghouse 251B10) using dry low-NOX

combustors, the rule limits NOX emissions to 20 ppmv for units

operating on gaseous fuel and 42 ppmv for units operating on oil fuel.

The limits are corrected to 15 percent oxygen on dry basis.

SMAQMD's submitted Rule 413, Stationary Gas Turbines, is a new rule

that will control NOX emissions from cogeneration units with

ratings equal to or greater than 0.3 MW output, or 3 million BTU/hr

(MMBTU/hr) input used to generate electricity, supply steam for

industrial processes and provide heating supply for buildings. The rule

specifies emission limits of 42 ppmv (gas fired) and 65 ppmv (oil

fired) for units rated less than or equal to 2.9 MW and operating at

less than 877 hours per year. For all other units operating at greater

than or equal to 877 hours per year, the rule specifies the following

emission limits: (i) 25 ppmv (gas fired) and 65 ppmv (oil fired) for

units rated less than 10 MW; (ii) 15 ppmv (gas fired) and 42 ppmv (oil

fired) for units rated greater than 10 MW with no SCR; and (iii) 9 ppmv

(gas fired) and 25 ppmv (oil fired) for units rated greater than 10 MW

with SCR.

KCAPCD's Rule 425, Oxides of Nitrogen Emissions from Steam

Generators Used in Thermally Enhanced Oil Recovery--Western Kern County

Fields, was submitted to be removed from the SIP. This rule was adopted

to control NOX emissions from steam generators used in the oil

production at the western portion of Kern County. KCAPCD, at that time,

had jurisdiction over the San Joaquin Valley Air Basin and the

Southeast Desert Air Basin. However, on March 20, 1991, the San Joaquin

Valley Unified Air Pollution Control District (SJVUAPCD) was formed.

This newly formed unified district took over the responsibility and

authority over the San Joaquin Valley Air Basin which includes all of

the eight counties except the Southeast Desert Air Basin portion of

Kern County. As a result of the above delineation of geographical

boundaries, KCAPCD (Southeast Desert portion) ceased its authority over

the oil production operation at the western portion of Kern County.

Consequently, KCAPCD is rescinding Rule 425 because the sources subject

to this rule are no longer under its authority. The removal of Rule 425

from the SIP is consistent with EPA's policy requirements and removes

an extraneous rule that serves no purpose.

The California Air Resources Board (CARB) has issued a reasonably

available control technology/best available retrofit control technology

(RACT/BARCT) determination for stationary source gas turbines with a

rating of greater than or equal to 0.3 megawatts. The RACT limits are

42 ppmv for gas fired units and 65 ppmv for oil fired units. BARCT

limits for units with SCR are 9 ppmv and 25 ppmv for gas fired units

and oil fired units respectively. For units without SCR, the BARCT

limits are 15 ppmv (gas fired units) and 42 ppmv (oil fired units). The

limits in Rule 425 and Rule 413 exceed California and Federal RACT

limits by a significant margin.

In evaluating the rules, EPA must determine whether the requirement

for RACT implementation by May 31, 1995 is met. Under certain

circumstances, the determination of what constitutes RACT could include

consideration of advanced control technologies, i.e., California's

requirement for BARCT. In this case the CAA's May 1995 date for RACT

implementation may be satisfied

[[Page 7994]]

in BARCT rules that establish ``interim RACT'' by May 1995, and require

emission limitations based on advanced control technologies such as

BARCT be met after May 1995. Rule 425 and Rule 413 require final

compliance with BARCT limits by January 1997 and May 1997 respectively.

The rules also require that interim measures (submission of compliance

plans, and applying for authority to construct) be met by May 31, 1995

to ensure progress toward the final compliance. A more detailed

discussion of the sources controlled, the controls required, and the

justification for why these controls represent RACT can be found in the

Technical Support Documents (TSDs) for Rule 425 and Rule 413, dated

November 28, 1995.

EPA has evaluated the submitted rules and has determined that they

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

Therefore, KCAPCD's Rule 425, Cogeneration Gas Turbine Engines (Oxide

of Nitrogen), and SMAQMD's Rule 413, Stationary Gas Turbines 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. Furthermore, EPA is removing

applicable Rule 425 consistent with the requirements of sections 110

(l) and 193.

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 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 April 30, 1996, unless, by April 1, 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 received, the public is

advised that this action will be effective April 30, 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 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

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. To the extent that 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.

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, Ozone,

Reporting and recordkeeping requirements, Volatile organic compound.

Dated: January 30, 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)(194)(i)(B)

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

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(194)* * *

(i) * * *

(B) * * *

(2) Rule 425, adopted on August 16, 1993.

(3) Previously submitted to EPA on June 28, 1982 and approved in

the Federal Register on May 3, 1984 and now removed without

replacement, Rule 425.

* * * * *

(222) * * *

(i) * * *

(C) * * *

(2) Rule 413, adopted on April 6, 1995.

* * * * *

[FR Doc. 96-4571 Filed 2-29-96; 8:45 am]

BILLING CODE 6560-50-P