Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; Kern County Air Pollution Control District; San Diego County Air Pollution Control District; Ventura County Air Pollution Control District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 105-0012a; FRL-5673-6]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; Kern County Air Pollution Control

District; San Diego County Air Pollution Control District; Ventura

County Air Pollution Control 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 Kern County Air Pollution Control District (KCAPCD), the San

Diego County Air Pollution Control District (SDCAPCD), and the Ventura

County Air Pollution Control District (VCAPCD). This approval action

will incorporate five rules into the federally approved SIP. The

intended effect of approving these rules is to regulate emissions of

oxides of nitrogen (NOx) in accordance with the requirements of

the Clean Air Act, as amended in 1990 (CAA or the Act). The rules

control NOx emissions from boilers, steam generators, process

heaters, electric utility boilers, internal combustion engines, and

stationary gas turbines. 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 nonttainment

areas.

DATES: This action is effective on March 24, 1997 unless adverse or

critical comments are received by February 21, 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 for each

rule are available for public inspection at EPA's Region IX office

during normal business hours. Copies of the submitted rules are

available for inspection at the following locations:

Rulemaking Office (AIR-4), Air Division, U.S. Environmental Protection

Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105.

Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street,

S.W., Washington, DC 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 302,

Bakersfield, CA 93301.

San Diego County Air Pollution Control District, Rule Development

Section, 9150 Chesapeake Drive, San Diego, CA 92123-1096.

Ventura County Air Pollution Control District, Rule Development

Section, 669 County Square Drive, Ventura, CA 93003.

Written comments should be submitted to Andrew Steckel, Rulemaking

Office (AIR-4), Air Division, Environmental Protection Agency, Region

IX, 75 Hawthorne Street, San Francisco, CA 95105.

FOR FURTHER INFORMATION CONTACT: Andrew Steckel, Rulemaking Office

(AIR-4), Air Division, U.S. Environmental Protection Agency, Region IX,

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

1185.

SUPPLEMENTARY INFORMATION:

Applicability

The rules being approved into the California SIP include: KCAPCD's

Rule 425.2, Boilers, Steam Generators, and Process Heaters (Oxides of

Nitrogen); Rule 427, Stationary Piston Engines (Oxides of Nitrogen);

SDCAPCD's Rule 69.4, Stationary Reciprocating Internal Combustion

Engines; VCAPCD's Rule 59, Electric Power Generating Equipment--Oxides

of Nitrogen Emissions; and Rule 74.23, Stationary Gas Turbines. These

rules were submitted by the California Air Resources Board (CARB) to

EPA on February 11, 1994 (Rule 59), October 19, 1994 (Rule 69.4), May

25, 1995 (Rule 425.2), and March 26, 1996 (Rules 74.23 and 427).

Background

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

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

NO 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

[[Page 3221]]

Supplement to the General Preamble; Clean Air Act Amendments of 1990

Implementation of Title I; Proposed Rule,'' (the NOx Supplement)

which describes 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 document 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. Kern County is

classified as a serious nonattainment area.1 San Diego County is

classified as a serious nonattainment area, and Ventura County area is

classified as severe for ozone.2 All areas are subject to the RACT

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

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\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 56 FR 56694

(November 6, 1991).

\2\ The San Diego and Ventura County Areas 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 56 FR 56694 (November 6, 1991). The San

Diego Area was reclassified from severe to serious on February 21,

1995. See 60 FR 3771 (January 19, 1995).

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

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

control technique 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

category 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 by May 31, 1995 for those

sources where installation by that date is practicable.

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

Rule 425.2, Boilers, Steam Generators, and Process Heaters (Oxides of

Nitrogen); Rule 427, Stationary Piston Engines (Oxides of Nitrogen);

SDCAPCD's Rule 69.4, Stationary Reciprocating Internal Combustion

Engines; and for the VCAPCD's Rule 59, Electric Power Generating

Equipment--Oxides of Nitrogen Emissions; and Rule 74.23, Stationary Gas

Turbines. The KCAPCD adopted Rule 425.2 on April 6, 1995 and Rule 427

on January 1, 1996. The SDCAPCD adopted Rule 69.4 on September 27, 1994

and the VCAPCD adopted Rule 59 on October 12, 1993 and Rule 74.23 on

October 10, 1995. The submitted KCAPCD's Rule 425.2 was found to be

complete on July 24, 1995 and Rule 427 on May 15, 1996. SDCAPCD's Rule

69.4 was found to be complete on October 21, 1994. VCAPCD's Rule 59 was

found to be complete on April 11, 1994; and Rule 74.23 on May 15, 1996

pursuant to EPA's completeness criteria set forth in 40 CFR Part 51

Appendix V 3 and are being finalized for approval into the SIP.

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\3\ 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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NOx emissions contribute to the production of ground level

ozone and smog. The five rules control emissions of NOx from

electric utilities and various industries used in a wide variety of

applications. The rules were adopted as part of the KCAPCD's,

SDCAPCD's, and VCAPCD's efforts to achieve and maintain the National

Ambient Air Quality Standards (NAAQS) for ozone. All five rules are

required to satisfy the mandates of the Clean Air Act requirements, and

were submitted pursuant to the CAA requirements cited above.

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 interpretations of these requirements,

which form the basis for this action, appear in the NOx Supplement

and various other EPA policy guidance documents.4 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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\4\ 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,

cited above (57 FR 55620). In the NOX Supplement, EPA provides

guidance on how RACT should be determined for major stationary sources

of NOX emissions. The document sets RACT emission levels

specifically for electric utility boilers. For all other source

categories, EPA expects States/Districts to establish RACT levels

comparable to those levels for utility boilers taking into account

cost, cost-effectiveness, and emission reductions.

While most of the guidance issued by EPA (previous to the NOX

Supplement) 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 techniques documents (ACTs),

that identify alternative controls for most 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. While providing guidance and

information for States to use in making RACT determinations, 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 issued by EPA to ensure that submitted NOX

RACT rules are fully enforceable and strengthen or maintain the SIP.

KCAPCD Rule 425.2 sets NOX emission limits for units with

annual heat input of 9 billion Btu or more at 70 parts per million

(ppm) by volume for gas-fired units and 115 ppm for liquid-fired units.

Emission limits are corrected to 3% oxygen. Rule 425.2 meets EPA's RACT

guidance and May 31, 1995 implementation requirements by requiring that

RACT be fully implemented by November 1997 and that interim measures

including submission of a compliance plan and an application for

authority to construct be met to ensure progress toward final

compliance.

EPA established RACT levels for electric utility boilers and

recommended for other source categories that States/Districts make RACT

determinations comparable to those EPA established for electric utility

boilers. This comparability should be based on several factors

including cost, cost-effectiveness, and emission reductions.

The California Air Resources Board RACT/BARCT Guidance 5

document for institutional, commercial, and industrial

[[Page 3222]]

(ICI) boilers suggests a RACT limit of 70 ppm corrected to 3% O2

for units fired with gaseous fuel and 115 ppm for units fired with

fuels other than gas. EPA has used CARB's Guidance document in

evaluating Rule 425.2 for consistency with the CAA's RACT requirements.

Rule 425.2's RACT emission limits (70/115 ppm) are generally comparable

to the emission limits of CARB's Guidance document and meet federal

RACT requirements.

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\5\ Determination of Reasonably Available Control Technology and

Best Available Retrofit Control Technology for Industrial,

Institutional, and Commercial Boilers, Steam Generators, and Process

Heaters (RACT/BARCT guidance for ICI boilers), California Air

Resources Board, July 18, 1991.

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Kern Rule 427 contains different requirements depending upon the

size of the engines. Engines rated greater than 50 bhp are required to

conduct regular maintenance procedures. Engines rated greater than 250

bhp are required to meet the emissions limits by June 1997. The rule

establishes RACT emission limits for engines rated 250 bhp or greater

at 50 parts per million (ppm), 125 ppm, and 600 ppm for rich burn

engines, lean burn engines, and diesel engines, respectively. In lieu

of meeting the emissions limits, sources may install control equipment

that reduces NOx emissions by 90%, 80%, and 30% for rich-burn,

lean-burn, and diesel engines, respectively. Although final compliance

with the emissions limits is not required until 1999, the rule does

require interim measures be met by 1995. Emission control plans and

maintenance procedures are required in the interim to ensure progress

toward final compliance with the emission limits in 1999.

San Diego Rule 69.4 describes emission limits and reduction

requirements in two tables. One table establishes RACT concentration

limits and the other table sets percent reduction limits. Rule 69.4

establishes RACT at 50 ppm for rich burn engines, 125 ppm for lean burn

engines, and 700 ppm for diesel engines. The concentration limits are

referenced to 15% oxygen on a dry basis. The alternative control device

efficiencies are set at 90%, 80%, and 25% for rich, lean, and diesel

engines, respectively. The rule requires the RACT limits be met by May

31, 1995 for existing engines and upon start-up for new engines.

The current SIP approved version of VCAPCD Rule 59 limits NOx

emission from boilers rated greater than or equal to 2,150 million

British Thermal Units (MMBtu) to 0.10 pounds per megawatt-hour (lb/MW-

hr) produced, and limits NOx emissions from boilers rated less

than 2,150 MMBtu to 0.20 lb/MW-hr produced. Final compliance with these

limits is required by June 4, 1994 and June 4, 1996 respectively. The

significant changes in the October 12, 1993 version of Rule 59 are: (1)

boilers under 2,150 million Btu per hour are now limited to 0.10 pound

per megawatt-hour (lb/MW-hr) produced at loads at or above 43 megawatts

(MW); and (2) the start-up duration of this exemption for auxiliary

boilers has been changed from one hour to four hours. The additional

reduction of NOx emissions derived from this rule is part of

VCAPCD's effort towards achieving the state and federal ozone

standards.

VCAPCD's Rule 74.23 sets NOx limits at 42 ppm (gas-fired) and

65 ppm (oil-fired) for units rated at or above 0.3 MW but less than 2.9

MW and for units rated 4 MW and greater, but operating at less than 877

hours per year. For all other units, the rule sets the following

emission limits: (i) 25 ppm (gas-fired), corrected for turbine

efficiency and 65 ppm (oil-fired) for units rated at or above 2.9 MW

but less than 10 MW; (ii) 9 ppm (gas-fired) and 25 ppm (oil-fired) for

units rated greater than 10 MW with selective catalytic reduction

(SCR); and (iii) 15 ppm (gas-fired) and 42 ppm (oil-fired) for units

rated greater than 10 MW with no SCR. Rule 74.23 meets EPA's RACT

guidance and May 31, 1995 implementation requirements by requiring that

BARCT limits be fully implemented by April 2001, and that interim

measures including submitting a compliance plan and implementing

interim emission limits be met to ensure progress toward the final

emission limit of the rule.

The California Air Resources Board RACT/BARCT Guidance 6

document for stationary gas turbines suggest RACT limits of 42 ppm for

gas-fired units and 65 ppm for oil fired units. BARCT limits for units

with SCR are 9 ppm and 25 ppm for gas-fired units and oil-fired units

respectively. For units without SCR, the BARCT limits are 15 ppm (gas-

fired units) and 42 ppm (oil-fired units). Rule 74.23 emission limits

meet the values of CARB's RACT/BARCT limits, thereby meeting the CAA

requirements for RACT.

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\6\ Determination of Reasonably Available Control Technology and

Best Available Retrofit Control Technology for the Control of Oxides

of Nitrogen from Stationary Gas Turbines (RACT/BARCT guidance for

gas turbines), California Air Resources Board, May 18, 1992.

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EPA agrees that the RACT emissions limits established in the Kern

Rules 425.2 and 427, the San Diego Rule 69.4, and the Ventura Rules 59

and 74.23 are consistent with the Agency's guidance and policy for

making RACT determinations, and believes the rules satisfy the NOX

RACT requirement of the CAA for ICI boilers in Kern County, the I/C

engines in Kern and San Diego Counties, the electric utility boilers

and the stationary gas turbines in Ventura County.

EPA is incorporating these rules into the SIP because they

strengthen the SIP through the addition of enforceable measures such as

NOx emission limits, recordkeeping, test methods, definitions, and

compliance tests. EPA believes all five rules for these source

categories in each district satisfy the RACT requirements of the CAA. A

more detailed discussion of the sources controlled, the controls

required, and the analysis of how these controls meet RACT can be found

in the Technical Support Document (TSD) for each rule available from

the U.S. EPA Region IX office.

EPA has evaluated the submitted rules and has determined that they

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

rules meet RACT requirements for their particular category, and contain

implementation dates consistent with the CAA and EPA's policy.

Therefore, all five are being approved under section 110(k)(3) of the

CAA as meeting the requirements of section 110 and Part D.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future 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 March 24, 1997, unless, by February 21, 1997, 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 March 24, 1997.

[[Page 3223]]

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 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 801(a)(1)(A) of the Administrative Procedures Act (APA) as

amended 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 rules in today's Federal Register. These rules are

not major rules as defined by section 804(2) of the APA as amended.

Regulatory Flexibility Act

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. Secs. 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 population of less than

50,000.

SIP approvals under sections 110 and 301(a) 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 any small entities

affected. 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 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, Oxides of

nitrogen, Ozone, Reporting and recordkeeping requirements, Volatile

organic compounds

.Note: Incorporation by reference of the State Implementation

Plan for the State of California was approved by the Director of the

Federal Register on July 1, 1982.

Dated: December 23, 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)(195)(i)(B)(2), (C)(202)(i)(C)(5), (C)(221)(i)(A)(3),

(C)(230)(i)(A)(2) and (C)(230)(i)(C) to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(195)* * *

(i) * * *

(B) * * *

(2) Rule 59, adopted on October 12, 1993.

* * * * *

(202) * * *

(i) * * *

(C) * * *

(5) Rule 69.4, adopted on September 27, 1994.

* * * * *

(221) * * *

(i) * * *

(A) * * *

(3) Rule 425.2, adopted on April 6, 1995.

* * * * *

(230) * * *

(i) * * *

(A) * * *

(2) Rule 74.23, adopted on October 10, 1995.

* * * * *

(C) Kern County Air Pollution Control District.

(1) Rule 427, adopted on January 25, 1996.

[FR Doc. 97-1078 Filed 1-21-97; 8:45 am]

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