Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; San Joaquin Valley Unified Air Pollution District and South Coast Air Quality Management District State Implementation Plan Revisions

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 12-2-0039; FRL-5825-8]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; San Joaquin Valley Unified Air

Pollution District and South Coast Air Quality Management District

State Implementation Plan Revisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing a limited approval and limited disapproval of

revisions to the California State Implementation Plan (SIP) which

concern the control of volatile organic compound (VOC) emissions from

facilities that load organic liquids into tank trucks, trailers, or

railroad tank cars and the control of emissions during the transfer of

organic liquids between storage units and delivery vessels.

The intended effect of proposing limited approval and limited

disapproval of these rules is to regulate emissions of VOCs in

accordance with the requirements of the Clean Air Act, as amended in

1990 (CAA or the Act). EPA's final action on this proposed rulemaking

document will incorporate these rules into the federally approved SIP.

EPA has evaluated the rules and is proposing a simultaneous limited

approval and limited disapproval under provisions of the CAA regarding

EPA action on SIP submittals and general rulemaking authority because

these revisions, while strengthening the SIP, also do not fully meet

the CAA provisions regarding plan submissions and requirements for

nonattainment areas.

DATES: Comments must be received on or before June 13, 1997.

ADDRESSES: Comments may be mailed to: Christine Vineyard, Rulemaking

Office [AIR-4], Air Division, U.S. Environmental Protection Agency,

Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901.

Copies of the rules and EPA's evaluation report of the rules are

available for public inspection at EPA's Region 9 office during normal

business hours. 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 95812.

San Joaquin Valley Unified Air Pollution Control District, 1999

Tuolumne Street, Fresno, CA 93721.

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

Diamond Bar, CA 91765-4182.

FOR FURTHER INFORMATION CONTACT: Christine Vineyard, Rulemaking Office,

[AIR-4], Air Division, U.S. Environmental Protection Agency, Region IX,

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

744-1197.

SUPPLEMENTARY INFORMATION:

I. Applicability

The rules being proposed for approval into the California SIP

include: San Joaquin Valley Unified Air Pollution Control District

(SJVUAPCD) Rule 463.3, Organic Liquid Loading, and South Coast Air

Quality Management District (SCAQMD) Rule 462, Organic Liquid Loading.

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

to EPA on January 28, 1992 and October 13, 1995, respectively.

II. Background

On March 3, 1978, EPA promulgated a list of ozone nonattainment

areas under the provisions of the 1977 Clean Air Act (1977 CAA or pre-

amended Act), that included the Los Angeles-South Coast Air Basin (LA

Basin) and the San Joaquin Area that encompassed the following eight

air pollution control districts (APCDs): Fresno County APCD, Kern

County APCD,1 King County APCD, Madera County APCD, Merced

County APCD, San Joaquin County APCD, Stanislaus County APCD, and

Tulare County APCD. 43 FR 8964; 40 CFR 81.305. The San Joaquin Valley

Air Basin which includes all the above eight

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counties except for the Southeast Desert Air Basin portion of Kern

County. Because these areas were unable to meet this statutory

attainment date of December 31, 1982, California requested under

section 172(a)(2), and EPA approved, an extension of the attainment

date to December 31, 1987.2 On May 26, 1988, EPA notified

the Governor of California, pursuant to section 110(a)(2)(H) of the

pre-amended Act, that SJVUAPCD and SCAQMD portions of the SIP were

inadequate to attain and maintain the ozone standard and requested that

deficiencies in the existing SIP be corrected (EPA's SIP-Call). On

November 15, 1990, amendments to the 1977 CAA were enacted. Pub. L.

101-549, 104 Stat. 2399, codified at 42 U.S.C. 7401-7671q. In amended

section 182(a)(2)(A) of the CAA, Congress statutorily adopted the

requirement that nonattainment areas fix their deficient reasonably

available control technology (RACT) rules for ozone and established a

deadline of May 15, 1991 for states to submit corrections of those

deficiencies.

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\1\ At that time, Kern County included portions of two-air

basins: The San Joaquin Valley Air Basin and the Southeast Desert

Air Basin. The San Joaquin Valley Air Basin portion of Kern County

was designated as nonattainment, and the Southeast Desert Air Basin

portion of Kern County was designated as unclassified, see 40 CFR

81.305 (1991).

\2\ This extension was not requested for the following counties:

Kern, Kings, Madera, Merced and Tulare. Thus, the attainment date

for these counties remained December 31, 1982.

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Section 182(a)(2)(A) applies to areas designated as nonattainment

prior to enactment of the amendments and classified as marginal or

above as of the date of enactment. It requires such areas to adopt and

correct RACT rules pursuant to pre-amended section 172(b) as

interpreted in pre-amendment guidance.3 EPA's SIP-Call used

that guidance to indicate the necessary corrections for specific

nonattainment areas. The San Joaquin Valley Air Basin is classified as

serious and the LA Basin is classified as extreme; 4

therefore, these two areas are subject to the RACT fix-up requirement

and the May 15, 1991 deadline.

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\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); and the existing control

technique guidelines (CTGs).

\4\ SCAQMD and SJVUAPCD retained their designation 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).

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The State of California submitted many revised RACT rules to EPA

for incorporation into its SIP on January 28, 1992 and October 13,

1995, including the rules being acted on in this document. This

document addresses EPA's proposed action for SJVUAPCD Rule 463.3,

Organic Liquid Loading, adopted on September 19, 1991 and SCAQMD Rule

462, Organic Liquid Loading, adopted on June 9, 1995. These submitted

rules were found to be complete on April 3, 1992 and November 28, 1995

pursuant to EPA's completeness criteria that are set forth in 40 CFR

Part 51, Appendix V 5 and are being proposed for limited

approval and limited disapproval.

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\5\ EPA adopted 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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SJVUAPCD Rule 463.3 controls VOC emissions from facilities that

load liquids into tank trucks or railroad tank cars. SCAQMD Rule 462

controls emissions of VOC during the transfer of organic liquids

between storage units and delivery vessels. VOCs contribute to the

production of ground level ozone and smog. SJVUAPCD Rule 463.3 and

SCAQMD Rule 462 were originally adopted as part of the districts'

effort to achieve the National Ambient Air Quality Standard (NAAQS) for

ozone and has been revised in response to EPA's SIP-Call and the

section 182(a)(2)(A) CAA requirement. The following is EPA's evaluation

and proposed action for SJVUAPCD's Rule 463.3 and SCAQMD's Rule 462.

III. EPA Evaluation and Proposed Action

In determining the approvability of a VOC 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 interpretation of these requirements,

which forms the basis for today's action, appears in the various EPA

policy guidance documents listed in footnote 3. Among those provisions

is the requirement that a VOC rule must, at a minimum, provide for the

implementation of RACT for stationary sources of VOC emissions. This

requirement was carried forth from the pre-amended Act.

For the purpose of assisting state and local agencies in developing

RACT rules, EPA prepared a series of Control Technique Guideline (CTG)

documents which specify the minimum requirements that a rule must

contain in order to be approved into the SIP. The CTGs are based on the

underlying requirements of the Act and specify the presumptive norms

for what is RACT for specific source categories. Under the CAA,

Congress ratified EPA's use of these documents, as well as other Agency

policy, for requiring States to ``fix-up'' their RACT rules. See

section 182(a)(2)(A). The CTGs applicable to SCAQMD Rule 462 are

entitled, ``Control of Hydrocarbons from Tank Truck Gasoline Loading

Terminals,'' EPA-450/2-77-026; ``Control of Volatile Organic Compound

Leaks from Gasoline Tank Trucks and vapor Collection Systems,'' EPA

4450/2-78-0521; and Control of Volatile Organic Emissions from Bulk

Gasoline Plants,'' EPA-450/2-77-035. The CTG applicable to SJVUAPCD

Rule 463.3 is entitled, ``Control of Hydrocarbons from Tank Truck

Gasoline Loading Terminals,'' EPA-450/2-77-026. Further interpretations

of EPA policy are found in the Blue Book. In general, these guidance

documents have been set forth to ensure that VOC rules are fully

enforceable and strengthen or maintain the SIP.

SCAQMD's submitted Rule 462, Organic Liquid Loading, includes the

following revisions from the current SIP rule: 6

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\6\ A previous version of SCAQMD Rule 462 was submitted to EPA

on May 13, 1991, and EPA proposed a limited approval/ limited

disapproval on March 21, 1994 (59 FR 11958).

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The definition of ``facility vapor leak'' was revised to

require measurement at a distance of 2 centimeters from the source

according to EPA Method 21. As explained below, EPA has identified this

revision as a deficiency.

New and revised definitions were added for rule clarity.

The Executive Officer determination of an equivalent test

method was removed.

A test method was added to determine compliance with the

vapor emission limit.

The requirements section was updated and revised. The leak

inspection requirements were added to include monthly sight, sound, and

smell detection methods; and quarterly inspections if using an organic

vapor analyzer (OVA).

The compliance schedule, compliance determination/test

methods, recordkeeping, distribution of responsibilities, and

exemptions sections were updated and/or revised.

SJVUAPCD's submitted Rule 463.3, Organic Liquid Loading, will

replace rules from the eight individual counties making up the SJVUAPCD

(Fresno, Kern, King, Madera, Merced, San Joaquin, Stanislaus, and

Tulare). The major differences between Rule 463.3 and the existing SIP

rules include:

[[Page 26462]]

The applicability of the rule has been broadened to

include organic liquid facilities which load 4,000 gallons or more in

any one day.

The stringency of the emission limit and vapor control

efficiency have been increased.

Definitions have been added to improve rule clarity.

Recordkeeping and test method provisions have been added

to determine compliance with the rule.

EPA has evaluated SCAQMD submitted Rule 462 and SJVUAPCD submitted

Rule 463.3 for consistency with the CAA, EPA regulations, and EPA

policy and has found that the revisions address and correct many

deficiencies previously identified by EPA. These corrected deficiencies

have resulted in clearer, more enforceable rules. Furthermore, the

addition of more stringent emission limits and a broader applicability

in submitted SJVUAPCD Rule 463.3 should lead to more emission

reductions.

Although SCAQMD's Rule 462 and SJVUAPCD's Rule 463.3 will

strengthen the SIP, these rules still contain deficiencies which were

required to be corrected pursuant to the section 182(a)(2)(A)

requirement of Part D of the CAA. SCAQMD Rule 462 contains the

following deficiency: The definition of ``facility vapor leak''

includes a measurement distance of 2 centimeters from the source

according to procedures listed in EPA Test Method 21. This 2 centimeter

distance is inconsistent with EPA Test Method 21, which requires

measurement at the surface of the source or 1 centimeter for moving

parts. A detailed discussion of rule deficiencies can be found in the

Technical Support Document for Rule 462 (March 12, 1997), which is

available from the U.S. EPA, Region 9 office.

SJVUAPCD Rule 463.3 contains the following test method

deficiencies:

Rule 463.3 references a test method for initial compliance

determination that has not been reviewed and approved by EPA;

The rule references a vapor pressure testing procedure

when the storage temperature is above 100 degrees. This procedure is

vague and should be submitted to EPA for review and approval; and

The rule references a test method for the measurement of

true vapor pressure of crude oil that has not been reviewed and

approved.

A detailed discussion of rule deficiencies can be found in the

Technical Support Document for Rule 463.3 (April 16, 1997), which is

available from the U.S. EPA, Region 9 office. Because of these

deficiencies, the rules are not approvable pursuant to section

182(a)(2)(A) of the CAA because they are not consistent with the

interpretation of section 172 of the 1977 CAA as found in the Blue Book

and may lead to rule enforceability problems.

Also, because of the above deficiencies, EPA cannot grant full

approval of these rules under section 110(k)(3) and part D. Because the

submitted rules are not composed of separable parts which meet all the

applicable requirements of the CAA, EPA cannot grant partial approval

of the rules under section 110(k)(3). However, EPA may grant a limited

approval of the submitted rules under section 110(k)(3) in light of

EPA's authority pursuant to section 301(a) to adopt regulations

necessary to further air quality by strengthening the SIP. The approval

is limited because EPA's action also contains a simultaneous limited

disapproval. In order to strengthen the SIP, EPA is proposing a limited

approval of SCAQMD's submitted Rule 462 and SJVUAPCD's Rule 463.3 under

sections 110(k)(3) and 301(a) of the CAA.

At the same time, EPA is also proposing a limited disapproval of

these rules because they contain deficiencies that have not been

corrected as required by section 182(a)(2)(A) of the CAA, and, as such,

the rules do not fully meet the requirements of part D of the Act.

Under section 179(a)(2), if the Administrator disapproves a submission

under section 110(k) for an area designated nonattainment, based on the

submission's failure to meet one or more of the elements required by

the Act, the Administrator must apply one of the sanctions set forth in

section 179(b) unless the deficiency has been corrected within 18

months of such disapproval. Section 179(b) provides two sanctions

available to the Administrator: highway funding and offsets. The 18

month period referred to in section 179(a) will begin on the effective

date of EPA's final limited disapproval. Moreover, the final

disapproval triggers the Federal implementation plan (FIP) requirement

under section 110(c). It should be noted that the rules covered by this

document have been adopted by the SCAQMD and SJVUAPCD and are currently

in effect in the districts. EPA's final limited disapproval action will

not prevent SCAQMD, SJVUAPCD or EPA from enforcing these rules.

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.

IV. Administrative Requirements

A. Executive Order 12866

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 E.O. 12866 review.

B. 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. 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.

SIP approvals under sections 110 and 30l, 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 flexibility analysis would constitute

Federal inquiry into the economic reasonableness of state action. The

Clean Air Act forbids EPA to base its action 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).

C. Unfunded Mandates

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 rule that includes a Federal mandate that may result in estimated

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

private sector, of $100 million or more. Under Section 205, EPA must

select the most cost-effective

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and least 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 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 approves 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.

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 compounds.

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

Dated: May 2, 1997.

Felicia Marcus,

Regional Administrator.

[FR Doc. 97-12627 Filed 5-13-97; 8:45 am]

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