Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision, Bay Area Air Quality Management District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 034-0049a FRL-5880-4]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision, Bay Area Air Quality Management

District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on a revision to the

California State Implementation Plan. The revision concerns a rule from

the Bay Area Air Quality Management District (BAAQMD). This approval

action will incorporate this rule into the federally approved SIP. The

intended effect of approving this rule is to regulate emissions of VOCs

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

1990 (CAA or the Act). This revised rule controls VOC emissions from

stationary storage tanks containing organic liquids. Thus, EPA is

finalizing the approval of the BAAQMD rule revision into the California

SIP under provisions of the CAA regarding EPA action on SIP submittals,

EPA's general rulemaking authority, plan submissions, and

enforceability guidelines. This rule is being incorporated into the SIP

in accordance with the area's ozone maintenance plan for redesignation

to attainment.

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

critical comments are received by September 24, 1997. If the effective

date is delayed, a timely notice will be published in the Federal

Register.

ADDRESSES: Comments must be submitted to Andrew Steckel at the Region

IX office listed below. Copies of the rule revisions and EPA's

evaluation report for BAAQMD Rule 8-5, Storage of Organic Liquids, are

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

business hours. Copies of the submitted rule revisions are available

for inspection at the following locations:

[[Page 44908]]

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, D.C. 20460

California Air Resources Board, Stationary Source Division, Rule

Evaluation Section, 2020 ``L'' Street, Sacramento, CA 92123-1095

Bay Area Air Quality Management District, 939 Ellis Street, San

Francisco, CA 94109

FOR FURTHER INFORMATION CONTACT: Yvonne Fong, Rulemaking Office, AIR-4,

Air Division, U.S. Environmental Protection Agency, Region IX, 75

Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-1199.

SUPPLEMENTARY INFORMATION:

I. Applicability

The rule being approved into the California SIP is BAAQMD Rule 8-5,

Storage of Organic Liquids. This rule was submitted by the California

Air Resources Board to EPA on May 24, 1994.

II. Background

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

areas under the provisions of the Clean Air Act, as amended in l977

(1977 Act or pre-amended Act), that included the San Francisco Bay

Area. 43 FR 8964, 40 CFR 81.305. On May 26, 1988, EPA notified the

Governor of California, pursuant to section 110(a)(2)(H) of the 1977

Act, that the above district's portion of the California SIP was

inadequate to attain and maintain the ozone standard and requested that

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

On November 12, 1993, BAAQMD submitted a request for redesignation

to attainment of the ozone standard. Subsequently, EPA evaluated and

approved BAAQMD's request and the San Francisco Bay Area was

reclassified as an attainment area.1

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\1\ The San Francisco Bay Area was redesignated to attainment

and was classified by operation of law pursuant to sections 107(d)

upon the date of enactment of the CAA. See 60 FR 27028 (May 22,

1995).

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This document addresses EPA's direct-final action for BAAQMD Rule

8-5, Storage of Organic Liquids. The BAAQMD adopted this rule on

January 20, 1993. This submitted rule was found to be complete on July

14, 1994, pursuant to EPA's completeness criteria that are set forth in

40 CFR part 51 Appendix V; 2 and is being finalized for

approval into the SIP.

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\2\ EPA adopted the completeness criteria on February 16, 1990

(55 FR 5824) 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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BAAQMD Rule 8-5 controls emissions of VOCs from stationary storage

tanks containing organic liquids. VOCs contribute to the production of

ground level ozone and smog. This rule was originally adopted as part

of BAAQMD's efforts to achieve the National Ambient Air Quality

Standards (NAAQS) for ozone and in response to EPA's SIP-Call and the

section 182(a)(2)(A) CAA requirement. In accordance with the

redesignation maintenance plan and at the request of BAAQMD, EPA is

incorporating this revision into the SIP.

The following is EPA's evaluation and final action for this rule.

III. EPA Evaluation and Action

In determining the approvability of a rule, EPA must evaluate the

rule for consistency with the requirements of the CAA and EPA

regulations, as found in section 110 and 40 CFR part 51 (Requirements

for Preparation, Adoption, and Submittal of Implementation Plans).

In addition, this rule was evaluated against the SIP enforceability

guidelines found in ``Issues Relating to VOC Regulation Cutpoints,

Deficiencies, and Deviations--Clarification to Appendix D of November

24, 1987 Federal Register'' (EPA's `Blue Book') and the EPA Region IX--

California Air Resources Board document entitled ``Guidance Document

for Correcting VOC Rule Deficiencies'' (April 1991), and against other

EPA policies. In general, these guidance documents have been set forth

to ensure that VOC and other rules are fully enforceable and strengthen

or maintain the SIP.

Because BAAQMD Rule 8-5 is being incorporated into the SIP as part

of the maintenance measures for the area's redesignation plan, the rule

does not need to be evaluated for meeting the RACT emission limits

pursuant to section 182(a) of the CAA. As an ozone maintenance measure,

the rule is being evaluated against the emissions reductions assumed in

the maintenance plan and the rule version currently incorporated in the

SIP.

On June 10, 1992, EPA approved into the SIP a version of Rule 8-5,

Storage of Organic Liquids, that had been adopted by the BAAQMD on May

4, 1988. The BAAQMD Rule 8-5 submitted on May 24, 1994 includes the

following significant changes:

Section 116 has been added to include a clarifying

exemption for underground gasoline storage tanks located at dispensing

facilities subject to Regulation 8, Rule 7;

Language exempting tanks that store liquids with a true

vapor pressure of 0.5 psia or less has been moved from section 101 to

section 117 (rule applicability has not changed);

The following definitions have been added to section 200:

approved emission control system, degassing, external floating roof

tank, internal floating roof tank, true vapor pressure, organic

compound, and viewport;

Section 303 has been added to include requirements for

above ground tanks with a capacity between 37.5 m \3\ and 75 m \3\,

storing organic liquids with a true vapor pressure greater than 1.5

psia;

Section 400 has been modified to require periodic operator

inspections, rather than simply making tanks available for APCO

inspection;

The outdated compliance schedules in sections 411 and 412

have been deleted;

The following sections have been added: 502--tank cleaning

annual source test requirement; 503--specifications for portable

hydrocarbon detectors; and 605--pressure vacuum valve gas tight

determination.

EPA has evaluated the submitted rule and has determined that it is

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

BAAQMD Rule 8-5, Storage of Organic Liquids, is being approved under

section 110(k)(3) of the CAA as meeting the requirements of section

110(a) and pursuant to EPA's authority under section 301(a) to adopt

regulations necessary to further air quality by strengthening the SIP.

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

[[Page 44909]]

or critical comments be filed. This action will be effective October

24, 1997, unless, within 30 days of its publication, 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 October 24, 1997.

IV. Administrative Requirements

A. Executive Order 12866

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 section 110 and 301 and subchapter I, part D of

the Clean Air 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, the

Administrator certifies 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 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).

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

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

must select the most cost-effective 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 promulgated 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.

D. Submission to Congress and the General Accounting Office

Under section 801(a)(1)(A) as added by the Small Business

Regulatory Enforcement Fairness Act of 1996, EPA submitted a report

containing this rule 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 rule in today's

Federal Register. This rule is not a ``major rule'' as defined by

section 804(2) of the APA as amended.

E. Petitions for Judicial Review

Under section 307(b)(1) of the Clean Air Act, petitions for

judicial review of this action must be filed in the United States Court

of Appeals for the appropriate circuit by October 24, 1997. Filing a

petition for reconsideration by the Administrator of this final rule

does not affect the finality of this rule for the purposes of judicial

review nor does it extend the time within which a petition for judicial

review may be filed, and shall not postpone the effectiveness of such

rule or action. This action may not be challenged later in proceedings

to enforce its requirements. (See section 307(b)(2).)

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.

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: August 11, 1997.

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]

Subpart F--California

1. The authority citation for Part 52 continues to read as follows:

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

2. Section 52.220 is amended by adding paragraphs (c)(197)(i)(B)(2)

to read as follows:

Section 52.220 Identification of plan.

* * * * *

(197) * * *

(i) * * *

(B) * * *

(2) Rule 8-5, adopted on January 20, 1993.

* * * * *

[FR Doc. 97-22513 Filed 8-22-97; 8:45 am]

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