List of Regulated Substances and Thresholds for Accidental Release Prevention; Proposed Stay of Effectiveness

SUMMARY: In Part IV of today's Federal Register, the Environmental

Protection Agency (EPA) is proposing several modifications to

provisions of the rule listing regulated substances and establishing

threshold quantities under section 112(r) of the Clean Air Act as

amended (List Rule Amendments). The proposed List Rule Amendments, if

promulgated in a final rule, would clarify or establish that part 68

does not apply to several types of processes and sources.

This action proposes, pursuant to Clean Air Act section 301(a)(1),

42 U.S.C. 7601(a)(1), to stay the effectiveness of provisions that are

affected by the proposed List Rule Amendments in Part IV of today's

Federal Register, for so long as necessary to take final action on the

proposed List Rule Amendments. Pursuant to the rulemaking provisions of

Clean Air Act section 307(d), 42 U.S.C. 7607(d), EPA hereby requests

public comment on this proposed short-term stay of provisions affected

by the proposed List Rule Amendments. Under the proposed stay, owners

and operators of processes and sources that EPA has proposed not be

subject to part 68 would not become subject to part 68 until EPA has

determined whether to proceed with the List Rule Amendments proposed in

today's Federal Register.

DATES: Comments. Comments must be submitted on or before May 15, 1996

unless a hearing is requested by April 25, 1996. If a hearing is

requested, written comments must be received by May 30, 1996.

Public Hearing. Anyone requesting a public hearing must contact EPA

no later than April 25, 1996. If a hearing is held, it will take place

on April 30, 1996 at 9:30 a.m.

ADDRESSES: Comments. Comments should be submitted to: U.S.

Environmental Protection Agency, Air Docket (6102), Attn: Docket A-96-

08: IV-I (Proposed Stay of Effectiveness), Waterside Mall, 401 M St.

SW., Washington, DC 20460. Comments must be submitted in duplicate. If

a public hearing is held, written testimony must be submitted in

duplicate at the time of the hearing.

Public Hearing. If a public hearing is held, it will be held at

Waterside Mall, 401 M St. SW., Washington DC, in the EPA Conference

Center. Persons interested in attending the hearing or wishing to

present oral testimony should notify by telephone Vanessa Rodriguez

(see For Further Information Contact).

Docket. All information used in the development of this proposal is

contained in the preamble below. However, Docket A-91-74, containing

background information for the original List Rule, and Docket A-96-08,

containing background information on the proposed List Rule amendments,

are available for public inspection between 8:00 a.m. and 5:30 p.m.,

Monday through Friday at EPA's Air Docket, Room 1500, 401 M St. SW.,

Washington, DC 20460; telephone (202) 260-7548. A reasonable fee may be

charged for copying.

FOR FURTHER INFORMATION CONTACT: Vanessa Rodriguez, Chemical Engineer,

Chemical Emergency Preparedness and Prevention Office, Environmental

Protection Agency (5101), 401 M St. SW., Washington, DC 20460, (202)

260-7913.

SUPPLEMENTARY INFORMATION:

I. Background and Discussion

Elsewhere in the proposed rule section of today's Federal Register,

EPA is proposing amendments to regulations in 40 CFR part 68 that,

inter alia, list regulated substances and establish threshold

quantities for the accident prevention provisions under Clean Air Act

section 112(r). Readers should refer to that document for a complete

discussion of the background of the rule affected. The amendments

proposed in that document (``List Rule Amendments'') would, if

promulgated, delete explosives from the list of regulated substances,

modify threshold provisions to exclude flammable substances in gasoline

and in naturally occurring hydrocarbon mixtures prior to entry into

processing unit or plant, modify the threshold provisions for other

flammable mixtures, and clarify the definition of stationary source

with respect to transportation, storage incident to transportation, and

naturally occurring hydrocarbon reservoirs.

It is unlikely that EPA will be able to take final action on some

or all of the proposed List Rule Amendments prior to May 24, 1996, the

date on which EPA anticipates it will take final action on additional

``Risk Management Program'' regulations under Clean Air Act section

112(r). This action proposes to stay provisions of part 68 that are

affected by the proposed List Rule Amendments until such time as EPA

takes final action on the proposed List Rule Amendments. If, following

consideration of public comment, EPA takes final action to stay the

effectiveness of these provisions, these provisions will be stayed

until after EPA takes final action on the proposed List Rule

Amendments.

EPA is proposing this stay because, at this time, EPA is seeking

comment on whether the various processes and sources affected by the

proposed List Rule Amendments should be subject to part 68. EPA will

need to evaluate comments on the proposed List Rule Amendments before

taking final action on that proposal. During the period prior to final

action on the List Rule Amendments proposal, owners and operators of

sources affected by the proposed List Rule Amendments would not know if

they ultimately will be subject to part 68. Such owners and operators

should have the same certainty about whether they are subject to part

68 as other owners and operators have when they begin their regulatory

compliance planning. The effect of the proposed stay would be to allow

owners and operators of processes and sources affected by the proposed

List Rule Amendments three years to come into compliance with the Risk

Management Program rule in the event EPA fails to adopt the proposed

List Rule Amendments. That is, if EPA does not promulgate a provision

of the proposed List Rule Amendments, either by taking negative final

action or by allowing the stay to expire without final action, owners

and operators of processes and sources affected by that provision would

need to achieve compliance with the Risk Management Program rule within

three years from the date of the negative final action or the

expiration of the stay.

II. Required Analyses

A. E.O. 12866

Under Executive Order 12866 (58 FR 51735, October 4, 1993), the

Agency must judge whether the regulatory action is ``significant,'' and

therefore subject to OMB review and the requirements of the Executive

Order. The Order defines ``significant regulatory action'' as one that

is likely to result in a rule that may:

(1) Have an annual effect on the economy of $100 million or more or

adversely affect in a material way the economy, a sector of the

economy,

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productivity, jobs, the environment, public health or safety, or state,

local, or tribal government or communities;

(2) Create a serious inconsistency or otherwise interfere with an

action taken or planned by another agency;

(3) Materially alter the budgetary impact of entitlements, grants,

user fees, or loan programs or the rights and obligations of recipients

thereof; or

(4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

the Executive Order.

It has been determined this proposed rule is not a ``significant

regulatory action'' under the terms of Executive Order 12866 and

therefore is not subject to OMB review.

B. Regulatory Flexibility Act

In accordance with the Regulatory Flexibility Act of 1980, Federal

agencies must evaluate the effects of the rule on small entities and

examine alternatives that may reduce these effects.

EPA has examined the proposed rule's potential effects on small

entities as required by the Regulatory Flexibility Act. It has

determined that this rule will have no adverse effect on small entities

because it defers the need for stationary sources to comply with

current rule provisions that EPA has proposed to amend; the amendments,

if adopted, likely would reduce the number of stationary sources

subject to the accidental release prevention requirements. Therefore, I

certify that today's proposed rule will not have a significant economic

effect on a substantial number of small entities.

C. Paperwork Reduction Act

This proposed rule does not include any information collection

requirements for OMB to review under the provisions of the Paperwork

Reduction Act of 1980, 44 U.S.C. 3501 et seq.

D. Unfunded Mandates

Under section 202 of the Unfunded Mandates Reform Act of 1995,

signed into law on March 22, 1995, EPA must prepare a statement to

accompany any rule where the estimated costs to State, local, or tribal

governments in the aggregate, or to the private sector, will be $100

million or more in any one year. Under section 205, EPA must select the

most cost-effective and least burdensome alternative that achieves the

objective 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 impacted by the rule.

EPA has estimated that this rule 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.

List of Subjects in 40 CFR Part 68

Environmental protection, Chemicals, Chemical accident prevention,

Clean Air Act, Extremely hazardous substances, Intergovernmental

relations, Hazardous substances, Reporting and recordkeeping

requirements.

Dated: April 5, 1996.

Carol M. Browner,

Administrator.

For the reasons set out in the preamble, Title 40, Chapter I,

Subchapter C, Part 68 of the Code of Federal Regulations is proposed to

be amended to read as follows:

PART 68--CHEMICAL ACCIDENT PREVENTION PROVISIONS

1. The authority citation for Part 68 continues to read as follows:

Authority: 42 U.S.C. 7412(r), 7601.

2. In Subpart A, Sec. 68.2 is proposed to be added to read as

follows:

Sec. 68.2 Stayed Provisions.

(a) Notwithstanding any other provision of this part, the

effectiveness of the following provisions is stayed from March 2, 1994

to (insert date 18 months after publication of final rule in the

Federal Register):

(1) In Sec. 68.3, definition of ``stationary source,'' to the

extent that such definition includes naturally occurring hydrocarbon

reservoirs or transportation subject to oversight or regulation under a

state natural gas or hazardous liquid program for which the state has

in effect a certification to DOT under 49 U.S.C. 60105;

(2) Section 68.115(b)(2) of this part, to the extent that such

provision requires an owner or operator to treat as a regulated

flammable substance:

(i) Gasoline, when in distribution or related storage for use as

fuel for internal combustion engines.

(ii) Naturally occurring hydrocarbon mixtures prior to entry into a

petroleum refining process unit or a natural gas processing plant.

Naturally occurring hydrocarbon mixtures include any of the following:

condensate, crude oil, field gas, and produced water, each as defined

in paragraph (b) of this section.

(iii) Other mixtures containing a regulated flammable substance

that does not have a National Fire Protection Association flammability

hazard rating of 4, the definition of which is in the NFPA 704,

Standard System for the Identification of the Fire Hazards of

Materials, National Fire Protection Association, Quincy, MA, 1990.

Available from the National Fire Protection Association, 1 Batterymarch

Park, Quincy, MA 02269-9101. This incorporation by reference was

approved by the Director of the Federal Register in accordance with 5

U.S.C. 552(a) and 1 CFR part 51. Copies may be inspected at the

Environmental Protection Agency Air Docket (6102), Attn: Docket No. A-

96-08, Waterside Mall, 401 M. St. SW., Washington D.C.; or at the

Office of Federal Register at 800 North Capitol St., NW, Suite 700,

Washington, D.C. (Note: this document will only be available for

inspection at the Federal Register after this action becomes a final

rule); and

(3) Section 68.130(a).

(b) From March 2, 1994 to (insert date 18 months after publication

of final rule in the Federal Register) the following definitions shall

apply to the stayed provisions described in paragraph (a) of this

section.

Condensate means hydrocarbon liquid separated from natural gas that

condenses because of changes in temperature, pressure, or both, and

remains liquid at standard conditions.

Crude oil means any naturally occurring, unrefined petroleum

liquid.

Field gas means gas extracted from a production well before the gas

enters a natural gas processing plant.

Natural gas processing plant means any processing site engaged in

the extraction of natural gas liquids from field gas, fractionation of

natural gas liquids to natural gas products, or both. A separator,

dehydration unit, heater treater, sweetening unit, compressor, or

similar equipment shall not be considered a ``processing site'' unless

such equipment is physically located within a natural gas processing

plant (gas plant) site.

Petroleum refining process unit means a process unit used in an

establishment primarily engaged in petroleum refining as defined in the

Standard Industrial Classification code for petroleum refining (2911)

and used for the following: (1) Producing transportation fuels (such as

gasoline, diesel fuels, and jet fuels), heating fuels (such as

kerosene, fuel gas distillate, and fuel oils), or lubricants; (2)

Separating petroleum; or (3) Separating, cracking, reacting, or

reforming intermediate petroleum streams.

Examples of such units include, but are not limited to, petroleum

based solvent units, alkylation units, catalytic hydrotreating,

catalytic hydrorefining, catalytic hydrocracking, catalytic

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reforming, catalytic cracking, crude distillation, lube oil processing,

hydrogen production, isomerization, polymerization, thermal processes,

and blending, sweetening, and treating processes. Petroleum refining

process units include sulfur plants.

Produced water means water extracted from the earth from an oil or

natural gas production well, or that is separated from oil or natural

gas after extraction.

[FR Doc. 96-9096 Filed 4-12-96; 8:45 am]

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