Approval and Promulgation of Air Quality Implementation Plans; Maryland; Major VOC Source RACT and Minor VOC Source Requirements

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[MD3-1-7132, MD25-2-6170; FRL-5432-5]

Approval and Promulgation of Air Quality Implementation Plans;

Maryland; Major VOC Source RACT and Minor VOC Source Requirements

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: EPA is proposing conditional approval of State Implementation

Plan (SIP) revisions submitted by the State of Maryland. These

revisions pertain to Maryland's major source volatile organic compound

(VOC) reasonably available control technology (RACT) regulation and

minor VOC source requirements. The RACT regulation applies to major VOC

sources that are not covered by Maryland's category specific VOC RACT

regulations. The minor source requirements apply to smaller VOC sources

that are not covered by RACT regulations. EPA is proposing approval of

these SIP revisions on the condition that the State of Maryland

certifies that it has determined and imposed RACT for all the major VOC

sources covered by the VOC RACT regulation, and has submitted those

enforceable RACT determinations to EPA as SIP revisions. That

certification must be made by the Maryland Department of the

Environment by no later than one year from the date EPA promulgates

final conditional approval of this SIP revision. If the State fails to

do so, that final conditional approval will convert to a disapproval.

This action is being taken in accordance with the SIP submittal and

revision provisions of the Act.

DATES: Comments must be received on or before April 1, 1996.

[[Page 8010]]

ADDRESSES: Comments may be mailed to Marcia L. Spink, Associate

Director, Air, Radiation, and Toxics Division, Mailcode 3AT00, U.S.

Environmental Protection Agency, Region III, 841 Chestnut Building,

Philadelphia, Pennsylvania 19107. Copies of the documents relevant to

this action are available for public inspection during normal business

hours at the Air, Radiation, and Toxics Division, U.S. Environmental

Protection Agency, Region III, 841 Chestnut Building, Philadelphia,

Pennsylvania 19107; and the Maryland Department of the Environment,

2500 Broening Highway, Baltimore, Maryland, 21224.

FOR FURTHER INFORMATION CONTACT: Maria A. Pino, (215) 597-9337, at the

EPA Region III office, or via e-mail at [email protected].

While information may be requested via e-mail, comments must be

submitted in writing to the above Region III address.

SUPPLEMENTARY INFORMATION: On April 5, 1991, the State of Maryland

formally submitted amendments to its air quality regulations to EPA as

a SIP revision. Among the amendments submitted were revisions to COMAR

26.11.06.06, Maryland's minor VOC source requirements. Also included in

Maryland's April 5, 1991 SIP revision request was the addition of COMAR

26.11.19.02G, which requires RACT for major sources of VOC that are not

covered by Maryland's category specific VOC RACT regulations.

Throughout the remainder of this notice, COMAR 26.11.19.02G shall be

termed Maryland's generic major source VOC RACT regulation. All other

amendments submitted to EPA in Maryland's April 5, 1991 SIP revision

request have been approved into Maryland's SIP through separate

rulemaking actions. (See 58 FR 63085, 59 FR 60908 and 60 FR 2018.) This

rulemaking action only pertains to the portion of Maryland's April 5,

1991 submittal related to the addition of COMAR 26.11.19.02G,

Maryland's generic major VOC source RACT regulation, and revisions to

COMAR 26.11.06.06, Maryland's minor VOC source requirements.

On June 8, 1993, the Maryland Department of the Environment again

submitted amendments to its air quality regulations to EPA as a SIP

revision. The June 8, 1993 submittal establishes statewide

applicability for Maryland's major VOC source generic RACT regulation

and category specific VOC RACT regulations, lowers the applicability

threshold for VOC RACT regulations, expands the geographic

applicability of Maryland's minor VOC source requirements, and corrects

deficiencies in Maryland's Stage I Vapor Recovery regulation. This

rulemaking action pertains only to the amendments contained in

Maryland's June 8, 1993 submittal related to its generic major VOC

source RACT regulation and its minor VOC source regulations, COMAR

26.11.19.02G and COMAR 26.11.06.06, respectively. All other regulations

contained in the June 8, 1993 submittal were the subject of a separate

rulemaking action. (See 60 FR 2018.)

As required by 40 CFR 51.102, the State of Maryland has certified

that public hearings with regard to these proposed revisions were held

in Maryland on October 11, 1990 in Annapolis, Maryland and on November

17, 18, and 20, 1992 in Frederick, Centreville, and Columbia,

respectively. EPA is soliciting public comments on the issues discussed

in this document or on other relevant matters. These comments will be

considered before taking final action. Interested parties may

participate in the federal rulemaking procedure by submitting written

comments to the EPA Regional office listed in the ADDRESSES section of

this document.

I. Background

To comply with the RACT provisions of the Act, Maryland was

required to expand its RACT regulations to apply statewide. It had to

adopt all RACT regulations for all VOC sources for which EPA has

published a Control Techniques Guideline (CTG) and all major non-CTG

VOC sources (so-called generic VOC sources) with the potential to emit

25 TPY in Cecil County and the Baltimore nonattainment area

and 50 TPY in the remainder of the State. These major non-

CTG sources are subject to Maryland's generic VOC RACT regulation.

II. EPA Evaluation and Proposed Action

The following is EPA's evaluation and proposed action for the State

of Maryland. Detailed descriptions of the amendments addressed in this

document, and EPA's evaluation of the amendments, are contained in the

technical support document (TSD) prepared for these revisions. Copies

of the TSD are available from the EPA Regional office listed in the

ADDRESSES section of this document.

State Submittal: Maryland's generic major source VOC RACT

regulation, COMAR 26.11.19.02G, was originally submitted to EPA on

April 5, 1991 to comply with the RACT Fix-up requirements of section

182(a)(2) of the Act. COMAR 26.11.19.02G required RACT for sources in

the Baltimore and the Maryland portion of pre-enactment Washington, DC

nonattainment areas with the potential to emit 100 TPY of

VOC and which were not subject to COMAR 26.11.11, 26.11.13, or

26.11.19.03-.15, Maryland's category-specific VOC RACT regulations.

Subsequently, Maryland revised its generic major source VOC RACT

regulation to comply with the RACT Catch-up provisions of section

182(b)(2) of the Act. The regulation was revised to make it applicable

statewide and to apply to ``major stationary sources of VOC'' rather

than to VOC sources that have the potential to emit 100

TPY. The term ``major stationary source of VOC,'' COMAR

26.11.19.01B(4), is defined as any stationary source with the potential

to emit: (a) 25 TPY of VOC or more in the City of Baltimore and Anne

Arundel, Baltimore, Carroll, Cecil, Harford, and Howard Counties, and

(b) 50 TPY in the remainder of the State. Approval of the addition of

this term to Maryland's SIP was the subject of a separate rulemaking

action. (See 60 FR 2018.)

Furthermore, Maryland revised COMAR 26.11.19.02G to require non-CTG

generic VOC sources to notify Maryland by August 15, 1993 if they are

major sources subject to RACT. Under Maryland's regulation, these

sources were required to submit a written RACT proposal and schedule

for compliance by November 15, 1993. These sources must comply with

RACT, as determined by Maryland, by no later than May 15, 1995. Upon

Maryland's approval of a RACT proposal, the regulation requires the

State to either amend the source's permit to operate to incorporate the

RACT conditions, adopt a regulation that reflects the RACT requirement,

or issue an order that includes the RACT requirement. Finally, COMAR

26.11.19.02G states that Maryland will submit all RACT determinations

to EPA for approval via the federal rulemaking process for

incorporation into the SIP.

Maryland's minor VOC source regulation, COMAR 26.11.06.06, was also

submitted as part of Maryland's RACT Fix-ups. (See 58 FR 50307.) This

regulation was applicable in the Baltimore and the Maryland portion of

the pre-enactment Washington, DC nonattainment areas. This regulation

exempted sources which were subject to other VOC regulations, including

RACT as established by Maryland pursuant to COMAR 26.11.19.02G.

Maryland amended COMAR 26.11.06.06A (Applicability) to expand the

applicability of COMAR 26.11.06.06C-E (VOC-Water Separators, VOC

Disposal, and Exceptions) statewide. Additionally, Maryland's

[[Page 8011]]

minor source regulation, COMAR 26.11.06.06B (Control of VOC from

Installations), was revised to add new requirements for sources located

in Cecil County and the counties which were added to the Maryland

portion of the Washington, DC nonattainment area, namely Calvert,

Charles, and Frederick Counties. Sources in these newly regulated

areas, Calvert, Cecil, Charles, and Frederick Counties, are required to

reduce their VOC emissions by 85 percent overall. Finally, COMAR

26.11.06.06A was revised to exempt sources ``subject to the provisions

of'' Maryland's generic major source VOC RACT regulation, COMAR

26.11.19.02G, from the requirements of COMAR 26.11.06.06. Thus, sources

subject to COMAR 26.11.19.02G, which have not yet had a RACT

determination approved by Maryland, are not subject to any VOC emission

standard.

EPA's Evaluation: Through revisions made to Maryland general VOC

regulation, COMAR 26.11.06.06, its geographic applicability was

expanded, resulting in the regulation of sources which were previously

not regulated. However, other specific amendments to COMAR 26.11.06.06,

found at 26.11.06.06A, narrowed the applicability of COMAR 26.11.06.06B

such that certain sources in Maryland's pre-enactment nonattainment

areas that were previously subject to COMAR 26.11.06.06B are no longer

covered by any enforceable emissions limit until such time as Maryland

approves RACT standards for them pursuant to the requirements its

generic major VOC RACT regulation, COMAR 26.11.19.02G. This results in

a lapse of coverage for previously regulated non-CTG generic sources

major VOC sources in the State of Maryland.

Maryland's generic major source VOC RACT regulation, COMAR

26.11.19.02G, requires all case-by-case, category-specific or source-

specific RACT requirements to be submitted as SIP revisions to EPA. It

does not, itself, contain enforceable RACT standards for these major

non-CTG VOC sources. Because COMAR 26.11.19.02G does not, in and of

itself, fully satisfy the Act's requirements requiring for RACT on all

major VOC sources, it is not unconditionally approvable. The Act's

major source RACT requirements will be fully satisfied only when

Maryland determines and imposes actual RACT standards on the generic

sources and submits those RACT determinations to EPA as SIP revisions.

EPA has evaluated Maryland's generic major source VOC RACT

regulation and its minor VOC source regulations for consistency with

the Act and EPA regulations, and has found that they do not fully

comply with the Act's major source RACT requirements.

However, in a letter dated February 7, 1996, Maryland affirmed that

it will submit all RACT determinations for major sources of VOC in the

state, and will provide a written statement to EPA that, to the best of

its knowledge, there are no other sources subject to the RACT

requirement.

Therefore, EPA is proposing approval of this SIP revision on the

condition that the Maryland Department of the Environment certifies

that it has determined and imposed RACT for the major VOC sources

covered by COMAR 26.11.19.02G, and has submitted those enforceable and

approvable RACT determinations to EPA as SIP revisions. If the State

fails to do so, that final conditional approval will convert to a

disapproval using the mechanism described below.

Proposed Action: Pursuant to section 110(k)(4) of the Act, EPA is

proposing to approve, conditionally, the addition of and subsequent

revisions to COMAR 26.11.19.02G and the revisions to COMAR 26.11.06.06A

and B submitted by the State of Maryland on April 5, 1991 and June 8,

1993. In order to receive a full approval for meeting the non-CTG RACT

requirement, the Maryland Department of the Environment must certify

that it has determined and imposed approvable RACT standards for its

major non-CTG VOC sources, pursuant to COMAR 26.11.19.02G, and

submitted those approvable RACT rules to EPA as SIP revisions. If the

State submits the case-by-case RACT rules, the conditional approval

will remain in place until such time as EPA takes final action

approving or disapproving the case-by-case SIP revisions. When EPA

determines that Maryland has submitted approvable case-by-case RACT

determinations for its non-CTG major VOC sources, EPA will convert the

conditional approval to a full approval. A document will be published

in the Federal Register announcing that the SIP revision has been fully

approved. If Maryland fails to submit approvable rules, the EPA

Regional Administrator will make a finding, by letter, that the

conditional approval is converted to a disapproval and the clock for

imposition of sanctions under section 179(a) of the Act will start as

of the date of the letter. Subsequently, a document will be published

in the Federal Register announcing that the SIP revision has been

disapproved.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

revision to any SIP. Each request for revision to the SIP shall be

considered separately in light of specific technical, economic, and

environmental factors and in relation to relevant statutory and

regulatory requirements.

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.

Conditional approvals of SIP submittals under section 110 and

subchapter I, part D of the Act 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 Act, preparation of a flexibility

analysis would constitute Federal inquiry into the economic

reasonableness of state action. The Clean Air Act forbids EPA to base

its actions concerning SIPs on such grounds. Union Electric Co. v. U.S.

EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

If the conditional approval is converted to a disapproval under

section 110(k), based on the State's failure to meet the commitment, it

will not affect any existing state requirements applicable to small

entities. Federal disapproval of the state submittal does not affect

its state-enforceability. Moreover, EPA's disapproval of the submittal

does not impose a new Federal requirement. Therefore, EPA certifies

that this disapproval action does not have a significant impact on a

substantial number of small entities because it does not remove

existing requirements nor does it substitute a new federal requirement.

Under section 202 of the Unfunded Mandates Reform Act of 1995

(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA

must prepare a budgetary impact statement to accompany any proposed or

final that includes a Federal mandate that may result in estimated

costs to State, local, or tribal governments in the aggregate; or to

the private sector, of $100 million or more. Under section 205, EPA the

most cost-effective and least

[[Page 8012]]

burdensome alternative that achieves the objectives of the rule and is

consistent with statutory requirements. Section 203 requires EPA to

establish a plan for informing and advising any small governments that

may be significantly or uniquely impacted by the rule.

EPA has determined that the conditional approval action proposed

does not include a Federal mandate that may result in estimated costs

of $100 million or more to either State, local, or tribal governments

in the aggregate, or to the private sector. This Federal action

proposes to conditionally approve pre-existing requirements under State

or local law, and imposes no new Federal requirements. Accordingly, no

additional costs to State, local, or tribal governments, or to the

private sector, result from this action.

This action has been classified as a Table 3 action under the SIP

processing guidelines of the July 10, 1995 memorandum from the

Assistant Administrator for Air and Radiation. Table 3 actions are

delegated for Regional Administrator decision and signoff. The OMB has

exempted this regulatory action from E.O. 12866 review.

The Regional Administrator's decision to approve or disapprove this

SIP revision, pertaining to Maryland's major source VOC RACT and minor

VOC source requirements, will be based on whether it meets the

requirements of section 110(a)(2)(A)-(K), and Part D of the Clean Air

Act, as amended, and EPA regulations in 40 CFR Part 51.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental relations, Ozone, Reporting and recordkeeping

requirements.

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

Dated: February 16, 1996.

Stanley L. Laskowski,

Acting Regional Administrator, Region III.

[FR Doc. 96-4832 Filed 2-29-96; 8:45 am]

BILLING CODE 6560-50-P