United States Virgin Islands Final Ruling on Petition Pursuant to Section 325(a)(1) of the Clean Air Act

SUMMARY: On June 10, 1997, the Environmental Protection Agency (EPA)

proposed to approve a petition submitted by the Governor of the U.S.

Virgin Islands which requested a waiver from certain Clean Air Act (the

Act) restrictions to the Hess Oil Virgin Islands Corporation (HOVIC) in

St. Croix. This exemption was proposed pursuant to section 325(a)(1) of

the Act. Specifically, the waiver would allow HOVIC to implement an

Intermittent Control Strategy (ICS) based on atmospheric conditions,

which is prohibited by section 123 of the Clean Air Act. The ICS would

alleviate potential exceedances of the National Ambient Air Quality

Standards for sulfur dioxide. In this action, EPA is promulgating this

waiver which allows the HOVIC refinery in St. Croix to implement an ICS

under conditions which will be specified in a federally enforceable

Prevention of Significant Deterioration of Air Quality (PSD) permit.

EFFECTIVE DATE: This rule will be effective December 15, 1997.

FOR FURTHER INFORMATION CONTACT: Annamaria Colecchia, Permitting

Section, Air Programs Branch, Division of Environmental Planning and

Protection, Environmental Protection Agency, Region 2 Office, 290

Broadway, 25th Floor, New York, New York 10007-1866, Telephone: (212)

637-4016.

SUPPLEMENTARY INFORMATION:

Background

On May 7, 1996, the Governor of the United States Virgin Islands

submitted a petition to the Administrator of the EPA for an exemption

from certain requirements of the Act. The petition, submitted pursuant

to Section 325(a)(1) of the Act, requests that the HOVIC refinery,

located on the island of St. Croix, be granted an exemption from

Section 123 of the Act which prohibits basing emission limitations

using an ICS. HOVIC concurrently submitted a proposed modification to

its existing Prevention of Significant Deterioration (PSD) permit to

the EPA. Air quality analyses submitted in support of the proposed PSD

modification indicated that although emissions of sulfur dioxide

(SO2) will be substantially reduced below the amount HOVIC

is currently permitted to emit, occasional exceedances of the 24-hr

National Ambient Air Quality Standard (NAAQS) for this pollutant could

occur, to the north of the facility, during those days that the wind

blows onshore for a persistent length of time.

The petition proposed to prevent these potential exceedances from

occurring by reducing the sulfur content of the fuel processed during

those time periods. Since this constitutes an ICS based on atmospheric

conditions, reliance upon which in an implementation plan is

specifically prohibited by the Act, the petition requested an exemption

from this requirement through provisions available under Section 325 of

the Act. Granting HOVIC's petition will make it possible for EPA to

consider, in a separate action, HOVIC's request for a PSD permit

modification. EPA is not entertaining HOVIC's PSD permit modification

request in this action.

EPA proposed approval of the petition on June 10, 1997 (62 FR

31546) and this proposal contained the description of the petition,

supporting documents and the minimum federally enforceable conditions

under which the ICS shall be implemented. These conditions will also

appear in a revised PSD permit. No comments were received on the

proposed rulemaking. It should be noted, that for clarity EPA added

some language into the CFR portion of this rulemaking which had

previously been included in the preamble to this proposal (i.e., ICS

must include a meteorological tower and ambient monitors).

Conclusion

Since HOVIC met the requirements in section 325 of the Act and EPA

received no comments during the public comment period, EPA is

promulgating this waiver to the HOVIC refinery in St. Croix under the

conditions specified in the proposed approval.

Administrative Requirements

Executive Order 12866

This action has been classified as a Table 3 action by the

Administrator under the procedures published in the Federal Register on

January 19, 1989 (54 FR 2214-2215), 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.

Regulatory Flexibility

EPA has determined that it is not necessary to prepare a regulatory

flexibility analysis in connection with this final rule. EPA has also

determined that this rule will not have a significant economic impact

on a substantial number of small entities. This is because the final

rule applies only to the Hess Oil Virgin Islands refinery on St. Croix,

Virgin Islands. This facility is not a small entity, and the action

granting the petition will relieve the source from restrictions that

would otherwise apply.

Unfunded Mandates Reform Act

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

must prepare a budgetary impact statement to accompany any 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 in any one year. 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 today's rule does not contain a Federal

mandate that may result in expenditures of $100 million or more in any

one year. This is because the rule is mainly deregulatory, relieving

(subject to conditions) the sole regulated entity of limitations that

would otherwise apply, and possibly resulting in resource savings to

the Hess Oil Virgin Islands refinery that would not likely be obtained

in the absence of today's rule. EPA has also determined that this rule

contains no regulatory requirements that might significantly or

uniquely affect small governments, since it imposes no additional

significant or unique burdens on the Virgin Islands to implement

today's rule.

List of Subjects in 40 CFR Part 69

Environmental protection, Air pollution control.

Dated: November 6, 1997.

Carol M. Browner,

Administrator.

For the reasons stated in the preamble, 40 CFR part 69 is amended

as set forth below:

[[Page 61205]]

PART 69--[AMENDED]

1. The authority citation for part 69 continues to read as follows

Authority: Sec 325(a), Clean Air Act, as amended (42 U.S.C.

7625-1).

2. Subpart D is added consisting of Sec. 69.41 to read as follows:

Subpart D--The U.S. Virgin Islands

Sec. 69.41 New exemptions.

(a) Pursuant to section 325(a) of the Clean Air Act and a petition

submitted by the Governor of the Virgin Islands, an exemption to

section 123 of the Clean Air Act is granted to the Hess Oil Virgin

Islands Corporation (HOVIC) at the St. Croix refinery. Specifically,

the exemption waives the prohibition on the implementation of an

Intermittent Control Strategy (ICS) based upon atmospheric conditions

in order to set emission limitations. The emission limitations shall

depend upon the sulfur content in the residual oil burned at the

refinery.

(b) The protocol to be followed for the ICS shall be set forth in a

Prevention of Significant Deterioration of Air Quality (PSD) permit

issued to HOVIC; and shall include as a minimum, the conditions listed

in paragraphs (b)(1), (b)(2), (b)(3), and (b)(4) of this section.

(1) HOVIC shall maintain a meteorological tower on its property for

the purpose of the ICS which meets the required EPA QA/QC operating

specifications. At a minimum, the wind direction data will be

monitored, collected and reported as 1-hour averages, starting on the

hour. If the average wind direction for a given hour is from within the

designated sector, the wind will be deemed to have flowed from within

the sector for that hour. Each ``day'' or ``block period'', for these

purposes will start at midnight and end the following midnight.

(2) HOVIC shall maintain SO2 ambient monitors and collect ambient

SO2 concentration data for the purpose of implementing the ICS at

nearby locations approved by EPA and specified in the PSD permit. The

ambient monitors must follow the required EPA QA/QC operating

specifications. At a minimum, the data will be collected according to

EPA approved State and Local Ambient Monitoring Stations procedures

found at 40 CFR 58.20, but will, for these purposes, be averaged by the

hour, starting on the hour.

(3) The switch to a lower sulfur fuel (0.5%) will take place when

paragraphs (b)(3)(i) or (b)(3)(ii) of this section are met.

(i) The winds blow from a 45 degree sector defined as 143 to 187

degrees inclusive, where zero degrees is due north, for at least 6

consecutive hours during a 24-hour block period or any 12 non-

consecutive hours during a 24 hour block period.

(ii) One of HOVIC's ICS monitors measures an average ambient SO2

concentration that is 75% of the 24-hour NAAQS during any rolling 24-

hour average. (75% of the 24-hour NAAQS = 274 ug/m3 or 0.105 ppm).

(4) The switch back to the higher sulfur fuel (1.0%) may occur if

the conditions in paragraphs (b)(4)(i), (b)(4)(ii), and (b)(4)(iii) of

this section are met.

(i) If the ICS was triggered by paragraph (b)(3)(i) of this

section, the switch back may occur when the winds blow outside the

sector listed in paragraph (b)(3)(i) of this section for at least 3

consecutive hours following the period during which the winds were

blowing inside the sector.

(ii) If the ICS was triggered by paragraph (b)(3)(ii) of this

section, the switch back may occur after all of HOVIC's ICS ambient

monitors measure a 24-hour average concentration which is less than 75%

of the NAAQS for at least one 24-hour block period following any

occurrence when the monitor measured the concentration which was 75% of

the NAAQS.

(iii) If the ICS was triggered by both paragraphs (b)(3)(i) and

(b)(3)(ii) of this section, the switch back may occur when both of the

conditions in paragraphs (b)(4)(i) and (b)(4)(ii) of this section are

met.

(c) The protocol may be modified by EPA to protect against

exceedances of the sulfur dioxide NAAQS.

(d) In the event that there is an exceedance of the NAAQS, HOVIC

will report the exceedance to EPA and recommend corrective action as

well as amendments to the protocol to ensure the protection of the

NAAQS.

(e) HOVIC must comply with all fuel switching requirements,

contained in HOVIC's PSD permit.

(f) This exemption shall take effect only in the event that a final

PSD permit modification becomes effective.

(g) The Administrator may terminate the exemption through

rulemaking procedures upon determining that HOVIC's use of the ICS is

causing or contributing to an exceedance of the NAAQS.

[FR Doc. 97-30021 Filed 11-13-97; 8:45 am]

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