Approval and Promulgation of Air Quality Implementation Plans; Vermont; Reasonably Available Control Technology for Major Stationary Sources of Nitrogen Oxides and Volatile Organic Compounds not Covered by Other Category-Specific Regulations

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[A-1-FRL-5801-9]

Approval and Promulgation of Air Quality Implementation Plans;

Vermont; Reasonably Available Control Technology for Major Stationary

Sources of Nitrogen Oxides and Volatile Organic Compounds not Covered

by Other Category-Specific Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is approving a State Implementation Plan (SIP) revision

submitted by the State of Vermont. This revision establishes and

requires Reasonably Available Control Technology (RACT) at major

stationary sources of nitrogen oxide (NOX) emissions and major

stationary sources of volatile organic compound (VOC) emissions which

are not subject to other category-specific VOC control regulations in

Vermont. The intended effect of this action is to approve a number of

regulatory amendments and source-specific RACT determinations in

accordance with the Clean Air Act.

DATES: This action will become effective June 9, 1997, unless notice is

received by May 9, 1997 that adverse or critical comments will be

submitted. If the effective date is delayed, timely notice will be

published in the Federal Register.

ADDRESSES: Comments may be mailed to Susan Studlien, Deputy Director,

Office of Ecosystem Protection (mail code CAA), U.S. Environmental

Protection Agency, Region I, JFK Federal Building, Boston, MA 02203.

Copies of the documents relevant to this action are available for

public inspection during normal business hours, by appointment at the

Office Ecosystem Protection, U.S. Environmental Protection Agency,

Region I, One Congress Street, 11th floor, Boston, MA and the Air

Pollution Control Division, Agency of Natural Resources, Building 3

South, 103 South Main Street, Waterbury, VT 05676.

FOR FURTHER INFORMATION CONTACT: Steven A. Rapp, (617) 565-2773, or

[email protected]

SUPPLEMENTARY INFORMATION: On August 9, 1993, the Vermont Agency of

Natural Resources (``Vermont'' or ``VT ANR'') submitted to EPA a number

of revisions to its State implementation plan (SIP). EPA is acting on

several of those submittals. First, section 5-101 was amended to add a

definition of ``Reasonably Available Control Technology.'' Second,

subsection 5-251(2), ``Reasonably available control technology for

large stationary sources'' was added which requires major stationary

sources of NOX to install, maintain, and use NOX RACT. And

third, Vermont also added subsection 5-253.20, ``Other Sources That

Emit Volatile Organic Compounds,'' which defines RACT requirements for

major stationary sources of VOC which are not subject to any other VOC

regulations under Section 5-253.

Regarding NOx RACT, there are three major stationary sources

of NOX emissions in Vermont. Two of the NOX facilities are

covered by federally enforceable permits which define ``most stringent

emission rate'' (MSER) NOX limitations. MSER limitations are not

always considered equivalent to RACT limits. However, on June 6, 1994,

Vermont submitted to EPA copies of the permits for Ryegate Power

Station and Burlington Electric Department and EPA determined that

these MSER limits were equivalent to, or more stringent than, NOX

RACT limits and technology standards. For the third major stationary

NOX source, on March 20, 1995, Vermont submitted a source-specific

consent order which defined NOX RACT for Simpson Paper Company's

Gilman facility to EPA as a SIP revision.

Regarding VOC RACT, section 5-253 contains a number of VOC control

regulations which were developed in response to EPA's issuance of

control technique guideline (CTG) documents. These regulations define

RACT for various categories of VOC sources. However, subsection 5-

253.20 applies to major stationary sources of VOCs which are not

covered by the CTG-based rules. In other words, subsection 5-253.20 is

a non-CTG VOC RACT regulation. This regulation only applies to U.S.

Samaica Corporation in Rutland, Vermont. On March 20, 1995, Vermont

submitted a source-specific SIP revision defining non-CTG VOC RACT for

U.S. Samaica's Rutland facility.

By this action, EPA is approving section 5-101, subsection 5-

251(2), subsection 5-253.20, the source-specific NOX RACT

determination for Simpson Paper Company, and the source-specific VOC

RACT determination for U.S. Samaica, and incorporating them into the

Vermont SIP. This action will have a beneficial effect on air quality.

It is expected to reduce NOX emissions at Simpson Paper by 30 to

50%, and VOC by at least 81% at U.S. Samaica from an uncontrolled

baseline. This action is being taken under Section 110 of the Clean Air

Act.

I. Summary of SIP Revision

A. Clean Air Act Requirements

Sections 182(b)(2), 182(f), and 184(b) of the Clean Air Act (CAA)

require States to develop Reasonably Available Control Technology

(RACT) regulations for all major stationary sources of NOX and VOC

emissions in areas classified as ``moderate,'' ``serious,'' ``severe,''

and ``extreme'' ozone nonattainment areas, as well as in all areas of

the Ozone Transport Region. These sections of the CAA, taken together,

establish the requirements for Vermont to submit RACT regulations which

cover major sources of VOC and NOX statewide.

Section 182(b)(2) requires States located in areas classified as

moderate ozone nonattainment areas to require implementation of RACT

with respect to all major sources of volatile organic compounds (VOC).

Additionally, section 182(f) states that, ``The plan provisions

required under this subpart for major stationary sources of volatile

organic compounds shall also apply to major stationary sources (as

defined in section 302 and subsections (c), (d), and (e) of the

section) of oxides of nitrogen.'' This RACT requirement also applies to

all major sources in ozone nonattainment areas with higher than

moderate nonattainment classifications.

Unless already classified at a higher nonattainment level, section

184(b)(2) requires major stationary sources in the Ozone Transport

Region to meet the requirements which would be applicable to major

sources if the area were classified as a moderate nonattainment area.

The State of Vermont is currently in attainment of the ozone National

Ambient Air Quality Standard (NAAQS). However, section 184(a) of the

CAA defines an Ozone Transport Region within the northeastern United

States, which includes Vermont.

Section 302 of the CAA generally defines ``major stationary

source'' as a facility or source of air pollution which has the

potential to emit 100 tons per year or more of air pollution. This

definition applies unless another provision of the CAA explicitly

defines major source differently. Therefore, for NOX, a major

source is one with the potential to emit 100 tons per year or more in

marginal and moderate areas, as well as in attainment areas in the OTR.

For VOC emissions, section 184(b)(2) specifies that in the OTR a major

stationary source is one with the potential to emit of 50 tons per year

or more.

The amendments to section 5-101, section 5-251, and section 5-253,

as well as the source-specific RACT

[[Page 17085]]

determinations for Simpson Paper and U.S. Samaica were submitted in

response to the CAA requirements.

B. Regulatory Background

On January 23, 1991, EPA sent a letter notifying Vermont that the

CAA mandated that within 2 years of enactment, States submit SIP

revisions which require the implementation of RACT for all major

stationary sources of VOC and NOX. On January 26, 1993, the VT ANR

submitted proposed amendments to sections 5-101, 5-251 and 5-253 of the

Regulations to EPA for comment. Vermont held a public hearing on these

rules on March 10, 1993. EPA submitted written comments on the proposed

regulations on March 18, 1993. The regulations were adopted on July 9,

1993 and became effective on August 13, 1993.

Vermont submitted the adopted definition, non-CTG VOC RACT, and

NOX RACT regulations as a formal SIP submittal to EPA on August 9,

1993. On October 25, 1993, EPA sent Vermont a letter requesting that

Vermont commit to submitting to EPA for approval source-specific RACT

determinations for the RACT-subject sources as well. The SIP submittals

for the RACT regulations were deemed technically and administratively

complete by operation of law on February 10, 1994. Subsequently, on

March 20, 1995, Vermont submitted 2 case-specific SIP revisions,

defining NOX RACT requirements at Simpson Paper Company's Gilman

facility, and VOC RACT at U.S. Samaica's Rutland facility. On September

15, 1995, EPA sent a letter to Vermont deeming both case-specific

submittals technically and administratively complete.

C. Description of Submittal

In this submittal, Vermont amended section 5-101 to include a

definition for ``Reasonably Available Control Technology.'' Vermont

also added subsection 5-251(2), ``Reasonably available control

technology for large stationary sources,'' which establishes a

requirement that RACT be installed and operated at all major stationary

sources of NOX by May 31, 1995. Additionally, Vermont added

subsection 5-253.20, ``Other Sources That Emit Volatile Organic

Compounds,'' which defines RACT requirements for major stationary

sources of VOCs which are not covered by other VOC regulations in

Vermont.

Regarding NOX RACT, subsection 5-251(2) is completely generic,

meaning that the rule does not set emission limitations or technology

standards for any sources. Instead, the regulation requires sources to

submit compliance plans to the State by November 15, 1993 and to

install and operate RACT by May 31, 1995. Subsection 5-251(2)(d) allows

equipment subject to a federally enforceable ``most stringent emission

rate'' (MSER) NOX limitation, which is similar to EPA's ``Best

Available Control Technology'' (BACT) under 40 CFR 51.166, to be exempt

from the RACT requirements. Since the regulation lacks specific

NOX emission limitations, technology standards, and compliance

assurance requirements, all sources subject to subsection 5-251(2) must

have RACT defined on a case-by-case basis by VT ANR. Such case-specific

RACT determinations must then be approved by EPA as revisions to

Vermont's SIP.

Although generic RACT rules would generally mean many source-

specific SIP revisions, Vermont's NOX RACT rules only apply to two

wood fired boilers and one wood/gas fired boiler. Two of these sources

are currently subject to federally enforceable MSER permit limits.

First, a wood fired boiler using flue gas recirculation (FGR) in

combination with selective non-catalytic reduction (SNCR) is required

to meet an emission limit of 0.13 pound NOX per million Btu

(#NOX/MBtu) heat input on an hourly basis, demonstrated with a

continuous emission monitoring system (CEMS). And second, a wood/gas

fired boiler using FGR and low-NOX burners for gas firing and FGR

and good combustion practices for wood firing is required to meet

emission limitations of 0.25 #NOX/MBtu for wood and 0.12

#NOX/MBtu for gas on an hourly basis, demonstrated by CEMS.

The emission limits to which these sources are subject are

consistent with EPA and the Northeast States for Coordinated Air Use

Management (NESCAUM) recommendations for natural gas firing (i.e., 0.20

#/MBtu) at utility boilers. Although neither EPA or NESCAUM have

developed recommended emission limits for wood firing, the current MSER

limits (0.13 #NOX/MBtu and 0.25 #NOX/MBtu) are reasonable

when compared to the EPA and NESCAUM recommendations for gas and oil

firing, which range from 0.20 #NOX/MBtu to 0.43 #NOX/MBtu.

These MSER limits can be considered to be at least as stringent as RACT

for these sources. Therefore, the exemption under subsection 5-

251(2)(d) is approvable.

The third major stationary source of NOX in Vermont, Simpson

Paper Company's Gilman facility, is subject to the NOX RACT

requirement of subsection 5-251(2). On January 4, 1995, VT ANR issued

an administrative order defining NOX RACT for this facility. This

NOX RACT determination consists of emission limitations and

control technology requirements for the Zurn wood-fired boiler and, no

additional control requirements for the four Babcock and Wilcox

residual oil fired auxiliary boilers.

For the Zurn boiler, RACT was determined to be an emission rate

limitation of 0.30 #NOX/MBtu and a mass discharge rate limitation

of 54 #NOX/hour. These emission limitations must be met on a 24

hour rolling average. Compliance with the limitations is determined by

a NOX CEMS. Records are required to be kept for five years and

quarterly reports to the VT ANR are also required. For Simpson's four

oil-fired boilers, since they have historically operated at less than

1% of their capacity, Vermont has determined that they are auxiliary

boilers and additional NOX controls would not be cost effective.

Although neither EPA or NESCAUM have developed recommended emission

limits for wood firing, limit of 0.30 #NOX/MBtu are reasonable

when compared to the EPA and NESCAUM recommendations for gas and oil

firing, which range from 0.20 #/MBtu to 0.43 #/MBtu. Also, although

0.30 #NOX/MBtu is higher than the two NOX MSER limits

mentioned above, as described earlier in the notice, the lower MSER

limits were determined as part of the construction permit process for

new emission units. The higher NOX limit for the Zurn boiler is

reasonable considering the technical and economic feasibility of

retrofitting an older existing boiler.

Regarding VOC RACT, subsection 5-253.20 of the Vermont Regulations

applies to stationary sources with the potential to emit of at least 50

tons of VOC which are not subject to other VOC regulations in section

5-253, which have been developed subsequent to EPA's development of

Control Technique Guideline (CTG) documents. This non-CTG regulation

defines RACT as either an overall reduction in uncontrolled VOC

emissions of at least 81% by weight, or, for coating units, a daily

weighted average of VOC content in the coatings of 3.5 pounds of VOC

per gallon of coating applied (excluding exempt solvents). The rule

also sets out process by which a facility can apply for an alternative

RACT limit. However, subsection 5-253.20 does not contain specific

compliance assurance requirements, such as emissions testing,

monitoring, recordkeeping, and reporting requirements, which are

required as part of an approvable RACT regulation. Therefore, for all

sources subject to this regulation, Vermont must define these specific

compliance

[[Page 17086]]

assurance requirements as part of case-specific RACT determinations and

submit such determinations to EPA as revisions for approval into the

Vermont SIP.

On November 15, 1993, Vermont sent a letter to EPA committing the

State to submitting a case-specific SIP revision for the one major non-

CTG VOC source subject to subsection 5-253.20. Accordingly, on March

20, 1995, Vermont submitted to EPA an administrative order for U.S.

Samaica Corporation which requires the company to use incineration

control devices, which achieve an 81% overall VOC control, on two of

their process lines and to shut down their third process line by May

31, 1995. The administrative order also contains enforceable emissions

testing, monitoring, recordkeeping, and reporting requirements.

II. Final Action

EPA is approving the following regulatory amendments into the

Vermont SIP at this time. First, EPA is approving the amendment to

section 5-101, which adds a definition for RACT to the Vermont

regulations. Second, EPA is approving the addition of subsection 5-

251(2), as well as the source-specific RACT determination for Simpson

Paper Company, which together define NOx RACT for Vermont. And

finally, EPA is approving the addition of subsection 5-253.20, as well

as the source-specific RACT determination for U.S. Samaica Corporation,

which together define non-CTG VOC RACT for the State.

EPA is publishing this action 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, EPA is proposing to approve the SIP revision

should adverse or critical comments be filed. This action will be

effective June 9, 1997 unless adverse or critical comments are received

by May 9, 1997.

If the EPA receives such comments, this action will be withdrawn

before the effective date by simultaneously 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 on June 9, 1997.

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.

III. 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 section 110 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 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 Sections 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 5 U.S.C. 801(a)(1)(A) of the Regulatory Flexibility Act, 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 5 U.S.C. 804(2).

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 June 9, 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).) EPA encourages

interested parties to comment on the proposed rule rather than filing a

petition for judicial review challenging the final rule.

[[Page 17087]]

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Incorporation by

reference, Intergovernmental relations, Nitrogen dioxide, Ozone,

Reporting and recordkeeping requirements, Volatile organic compounds.

Note: Incorporation by reference of the State Implementation

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

Federal Register on July 1, 1982.

Dated: March 8, 1997.

John P. DeVillars,

Regional Administrator, Region I.

Part 52 of 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 UU--Vermont

2. Section 52.2370 is amended by adding paragraph (c)(22) to read

as follows:

Sec. 52.2370 Identification of plan.

* * * * *

(c) * * *

(22) Revisions to the State Implementation Plan submitted by the

Vermont Air Pollution Control Division on August 9, 1993 and March 20,

1995.

(i) Incorporation by reference.

(A) Letters from the Vermont Air Pollution Control Division dated

August 9, 1993 and March 20, 1995 submitting revisions to the Vermont

State Implementation Plan.

(B) Regulations, including section 5-101, ``Definitions,''

subsection 5-251(2), ``Reasonably available control technology for

large stationary sources,'' and, subsection 5-253.20, ``Other Sources

That Emit Volatile Organic Compounds,'' adopted on July 9, 1993 and

effective on August 13, 1993.

(C) Administrative orders for Simpson Paper Company, in Gilman,

Vermont, and, U.S. Samaica Corporation, in Rutland, Vermont, both

adopted and effective on January 4, 1995.

3. In Sec. 52.2381, Table 52.2381 is amended by adding a new entry

to the end of existing state citation for section 5-101,

``Definitions,''; adding two new entries to the end of the existing

state citation for section 5-251, ``Control of Nitrogen Oxides

Emissions,'' and by adding new state citation for section 5-253.20,

``Other Sources That Emit Volatile Organic Compounds,'' to read as

follows:

Sec. 52.2381 EPA--approved Vermont State regulations.

* * * * *

Table 52.2381.--EPA-Approved Regulations

[Vermont SIP regulations 1972 to present]

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Date Date Comments and

State citation, title and adopted by approved by Federal Register 52.2370 unapproved

subject State EPA citation sections

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* * * * * *

*

Section 5-101 Definitions..... 7/9/93 4/9/97 62 FR 17087...... (c)(22).......... Adds definition

of reasonably

available

control

technology

(RACT).

* * * * * *

*

Section 5-251 Control of 7/9/93 4/9/97 62 FR 17087...... (c)(22).......... Requires RACT

nitrogen oxides emissions. for major

stationary

sources of NOX.

1/4/95 4/9/97 62 FR 17087...... (c)(22).......... NOX RACT for

Simpson Paper

Company's

Gilman facility

Section 5-253 control of 7/9/93 4/9/97 62 FR 17087...... (c)(22).......... Requires RACT at

volatile organic compounds. non-CTG VOC

sources.

1/4/95 4/9/97 62 FR 17087...... (c)(22).......... Non-CTG VOC RACT

for U.S.

Samaica

Corporation's

Rutland

facility.

* * * * * *

*

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[FR Doc. 97-9014 Filed 4-8-97; 8:45 am]

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