National Emission Standards for Gasoline Distribution Facilities; Bulk Gasoline Terminals and Pipeline Breakout Stations

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[FRL-5950-4]

National Emission Standards for Gasoline Distribution Facilities;

Bulk Gasoline Terminals and Pipeline Breakout Stations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of limited exclusion for gasoline distribution

facilities.

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SUMMARY: The EPA publishes today notification of a limited exclusion

from applicability for gasoline distribution facilities that would be,

but for this action, subject to the air toxic provisions of 40 CFR part

63, subpart R, the National Emission Standards for Gasoline

Distribution Facilities (Bulk Gasoline Terminals and Pipeline Breakout

Stations).

DATES: This policy took effect on December 12, 1997, the day that the

attached letter detailing this policy was signed. Petitions for review

of this determination must be filed on or before March 17, 1998 in

accordance with the provisions of section 307(b)(1) of the Clean Air

Act (CAA).

ADDRESSES: The related material in support of this policy may be

examined during normal business hours at the United States

Environmental Protection Agency, Office of Enforcement and Compliance

Assurance, Air Enforcement Division, Ariel Rios Building, Room 1119,

12th and Pennsylvania Ave., NW, Washington, DC 20004.

FOR FURTHER INFORMATION CONTACT: Charles Garlow of the U.S. EPA, Air

Enforcement Division (Mail Code 2242A), 401 M St SW, Washington, DC

20460, telephone (202) 564-1088.

SUPPLEMENTARY INFORMATION: On October 15, 1997, the American Petroleum

Institute (API) requested relief from the applicability of the Gasoline

Distribution National Emission Standard for Hazardous Air Pollutants

(NESHAP) as the compliance date of December 15, 1997 was approaching.

Certain members of the API trade association had timely applied for

synthetic minor permits so as to qualify as area or minor sources not

subject to the Gasoline Distribution MACT standard. However, state or

local permitting authorities had, in many instances, not been able to

process the otherwise-approvable applications before December 15, 1997.

Since many states have a public comment period, it was apparent that

these permits could not be issued prior to the compliance date even if

every effort was made. Therefore, API asserted, through no fault of

their members, they would be subject to the requirements of this NESHAP

when they assumed they would not be, resulting in some sources

potentially facing operational shutdowns or violation of the standard.

The EPA responded, as is detailed in the attached letter, by

granting a time limited exclusion from applicability to those sources

that notify the EPA that they have timely applied and have otherwise

made good faith efforts to obtain the synthetic minor permits in

question. Due to delays in publishing this document, sources wishing to

avail themselves of this policy have until January 30, 1998, to notify

EPA of their status, if they have not already done so.

In addition to publication of this document, US EPA has placed a

copy of this policy letter on its Technology Transfer Network (TTN)

bulletin board service and Website.

(Sec. 112, Clean Air Act (42 U.S.C. 7412))

Bruce Buckheit,

Director, Air Enforcement Division.

December 12, 1997.

Ms. Ellen Siegler,

American Petroleum Institute, 1220 L Street, NW, Washington, DC

20005-4070.

Re: Gasoline Distribution MACT Standard.

Dear Ms. Siegler: The American Petroleum Institute recently

approached the Environmental Protection Agency (EPA) seeking relief

from the Gasoline Distribution Maximum Achievable Control Technology

(MACT) standard for those facilities that timely sought permits

limiting their potential to emit so as to qualify as area sources

not covered by that standard. We were then informed that numerous

facilities (through no fault of their own) have not yet been issued

such permits by their permit issuing authorities. Under EPA's ``once

in--always in'' policy, such facilities will become subject to the

Gasoline Distribution MACT standard on that rule's compliance date

(December 15, 1997).

As a general matter, we believe that it is the source's

obligation to achieve compliance with the regulation as of the

effective date of that regulation. Where, as here, the regulation

provided 3 years to achieve compliance, we believe that sources that

wish to avoid the imposition of major source obligations by seeking

``synthetic minor'' permits should do so shortly after the date of

rule promulgation. Given the substantial workload imposed on

permitting authorities by the Title III and Title V programs, those

who wait until there is less than 1 year from the compliance date to

submit their permit application should anticipate that there is a

substantial risk, that they must bear, that the synthetic minor

permit may not be issued in time. However, because this is an issue

of first impression, and facilities may have relied in good faith on

representations of permitting authorities that permits received

within a shorter time frame would be processed by December 15, 1997,

we have agreed to provide a limited enforcement discretion as set

out below.

Based on the facts presented and subject to the terms,

conditions and limitations outlined herein, we concluded that the

EPA should and, therefore, will provide limited relief for certain

facilities:

Limited Exclusion--EPA will not consider an otherwise covered

facility to be subject to the Gasoline Distribution MACT standard

(1) if the facility owner or operator filed a complete application

with its appropriate permitting authority for a permit limiting its

potential to emit so as to qualify as an area source not covered by

that standard prior to June 15, 1997, and (2) if it identifies the

facility to EPA not later than January 15, 1998. This limited

exclusion is limited to a 90-day period and will expire on March 15,

1998.

Conditional Extension--If a facility has not yet received its

permit by March 15, 1998, it will be subject to the Gasoline

Distribution MACT standard as of this date unless such facility

notifies EPA, prior to March 15, 1998, that an additional period of

time is needed for good cause shown. If the facility has not yet

received such permit and then certifies to

[[Page 2631]]

EPA that it has made diligent efforts to obtain the needed permit by

(1) providing all information requested by the permitting authority

and (2) accepting reasonable permit conditions, then EPA may grant

an additional extension for up to 90 days beyond March 15, 1998.

Failure to accept reasonable permit terms and conditions will not be

recognized as a good cause basis for seeking an extension. If a

facility has not yet received its permit by that later date, it will

be subject fully to the Gas Distribution MACT standard as of its

compliance date.

General Conditions/Limitations--As an express condition of

benefiting from and operating under the above-described limited

exclusion, each facility must comply at all times with each of the

following:

The source must have submitted the synthetic minor

permit by June 15, 1997.

The permit application terms and conditions must

effectively limit emissions to area source levels.

The source must certify to EPA and maintain full

compliance with all the terms, conditions and representations

reflected or referred to in its timely, complete permit application.

The reason for the delay in the issuance of the permit

must not be the fault of the source (e.g., at least one source will

not be issued a permit because of unresolved New Source Performance

Standards violations at the facility. Such source does not qualify

for this exclusion.

The source must submit, by January 15, 1998, supporting

documentation, including the executive summary and enforcement

provisions of the permit application with transmittal date, any

indication from the permitting agency regarding the completeness of

the application and recent communication from or to the permitting

authority indicating the current status of the application (e.g.,

public comment being sought, etc.). Such documentation must be

mailed to Air Enforcement Division, Attention: Charles Garlow, Esq.,

US EPA, Mail Code 2242A, 401 M St. SW, Washington, D.C. 20460, or

sent by delivery service to the same Division, Ariel Rios Building,

Room 2111, 12th and Pennsylvania Aves., N.W., Washington, DC 20004.

A failure to fully comply with each and every requirement, as

may be determined by EPA, will void this grant of discretionary

enforcement relief, cause such facility to be subject to the

requirements of the Gasoline Distribution MACT standard as of its

compliance date (December 15, 1997), and subject the facility to

possible enforcement for violation of the MACT standard.

Sources in this situation should be reminded that if they

presently qualify as synthetic minor sources, by operation of the

January 25, 1995 Seitz/Van Heuvelen policy memorandum entitled

``Options for Limiting the Potential to Emit (PTE) of a Stationary

Source Under Section 112 and Title V of the Clean Air Act'', then

these sources do not need to utilize the option described here prior

to the termination date of that policy. For example, if a source has

documented actual emissions since January 1994 of less than 50% of

the major source thresholds, then a permit is not needed to limit

the PTE. Other options are described in this memorandum.

As the Gasoline Distribution MACT standard compliance date is

fast approaching, you have agreed to endeavor to distribute this

memorandum broadly at the earliest practicable time to all

facilities that may be subject to the MACT standard.

Questions regarding this matter should be directed to the Air

Enforcement Division, 202-564-1088.

Sincerely,

Steven A. Herman,

Assistant Administrator.

Identical letters sent to:

Mr. John Prokof, Independent Liquid Terminal Association (ILTA),

1133 15th Street, NW, Suite 650, Washington, D.C. 20005.

Ms. Michele Joy, Association of Oil Pipelines (AOPL), 110 Vermont

Ave, NW, Washington, D.C. 20005.

Mr. Tom Osburn, Society of Independent Gasoline Marketers of America

(SIGMA), 11911 Freedom Drive, Reston, Virginia 20190.

cc: Regional Counsel, Regions I-X, Regional Air Program Directors,

Regions I-X, John Seitz, Director, OAQPS, Lydia Wegman, Deputy

Director, OAQPS, Bruce Jordan, Director, ESD.

[FR Doc. 98-1133 Filed 1-15-98; 8:45 am]

BILLING CODE 6560-50-P