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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 187-0064; FRL-6112-1]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision, South Coast Air Quality Management

District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a revision to the California State

Implementation Plan (SIP) which concerns the control of volatile

organic compound (VOC) emissions from architectural coatings.

The intended effect of proposing approval of 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). EPA's final action

on this proposed rulemaking will incorporate this rule into the

federally approved SIP. EPA has evaluated this rule and is proposing to

approve it under provisions of the CAA regarding EPA action on SIP

submittals, SIPs for national primary and secondary ambient air quality

standards and plan requirements for nonattainment areas.

DATES: Comments must be received on or before July 20, 1998.

ADDRESSES: Comments may be mailed to: Andrew Steckel, Rulemaking Office

(AIR-4), Air Division, U.S. Environmental Protection Agency, Region IX,

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

Copies of the rule revisions and EPA's evaluation report of this

rule are available for public inspection at EPA's Region IX office

during normal business hours. Copies of the submitted rule revisions

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.

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

Diamond Bar, CA 91765-4182.

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 94105-3901, (415) 744-1199.

SUPPLEMENTARY INFORMATION:

I. Applicability

This Federal Register action for the South Coast Air Quality

Management

[[Page 33313]]

District excludes the Los Angeles County portion of the Southeast

Desert AQMD, otherwise known as the Antelope Valley Region in Los

Angeles County, which is now under the jurisdiction of the Antelope

Valley Air Pollution Control District as of July 1, 1997. The rule

being proposed for approval into the California SIP is South Coast Air

Quality Management District (SCAQMD) Rule 1113, Architectural Coatings.

This rule was submitted by the California Air Resources Board to EPA on

November 26, 1996.

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 1977

(1977 CAA or pre-amended Act), that included the Los Angeles-South

Coast Air Basin 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 pre-amended Act, that the above district's portions of the

California 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, the Clean Air Act Amendments of 1990 were

enacted. Pub. L. 101-549, 104 Stat. 2399, codified at 42 U.S.C. 7401-

7671q. Section 110(a)(2)(A) of the Act requires that plans which are

submitted to the EPA in order to achieve or maintain the National

Ambient Air Quality Standards (NAAQS) contain enforceable emission

limitations. The Los Angeles-South Coast Air Basin Area has retained

its designation of nonattainment and is classified as extreme.\1\

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\1\ The Los Angeles-South Coast Air Basin Area retained its

designation of nonattainment and was 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 rules for incorporation into

its SIP on November 26, 1996, including the rule being acted on in this

document. This document addresses EPA's proposed action for South Coast

Air Quality Management District Rule 1113, Architectural Coatings. The

South Coast Air Quality Management District adopted Rule 1113 on

November 8, 1996. This submitted rule was found to be complete on

February 11, 1997 pursuant to EPA's completeness criteria that are set

forth in 40 CFR part 51, appendix V \2\ and is being proposed for

approval into the SIP.

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\2\ EPA adopted the 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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The South Coast Air Quality Management District Rule 1113 controls

volatile organic compound (VOC) emissions from architectural coatings.

VOCs contribute to the production of ground-level ozone and smog. This

rule was adopted as part of the district's efforts to achieve the NAAQS

for ozone and in response to EPA's SIP-Call and the section

110(a)(2)(A) CAA requirement. The following is EPA's evaluation and

proposed action for this rule.

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).

In addition, this rule was evaluated against the general

requirements of the Clean Air Act (section 110 and part D), 40 CFR part

52, ``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). In general, these guidance

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

enforceable and strengthen or maintain the SIP.

On January 24, 1985, EPA approved into the SIP a version of Rule

1113, Architectural Coatings that had been adopted by the SCAQMD on

March 16, 1984. The version of Rule 1113 currently included in the SIP

was also used to evaluate the version being proposed for approval. The

SCAQMD Rule 1113 submitted on November 26, 1996 includes the following

significant changes from the current SIP:

Addition, deletion, and consolidation of definitions

(section (b));

Future low-VOC limits for the following coating

categories: flats, lacquers, multi-color, and traffic coatings (section

(c)(2));

VOC content limits for the following specialty coating

categories: japans, magnesite, and fire-proofing coatings (section

(c)(2));

VOC content limits for previously exempted specialty

coating categories (section (c)(2));

Requirement that VOC containing materials must be stored

in closed containers (section (c)(5));

Averaging provision to allow manufacturers to average the

VOC content of their flat coatings, on a sales weighted basis (section

(c)(6) and appendix A);

Language clarifying how exceedances of allowable emissions

will be handled when a source uses averaging (appendix A);

Labeling requirements for quick-dry enamels and quick-dry

primers, sealers, and undercoaters (section (d)(4));

Test methods for determining VOC content, acid content,

metal content, flame spread index, drying times, and gloss (section

(e));

Technology assessment for flat and lacquer coating

categories (section (f));

Additional reporting requirements for manufacturers

utilizing the exemption for quick-dry primers, sealers, and

undercoaters (section (g)(2));

Exemption for lacquers to add up to 10% retarder above the

VOC limit during cool, humid days to prevent blushing of acetone

formulated lacquers with a maximum VOC content of 550 g/L (section

(g)(3)); and

Small business exemption from lower future effective VOC

limits for lacquers and flats (section (g)(4)). In the aggregate, these

changes to the SIP approved rule provide additional flexibility and

recognition of some specialty products without relaxing the

requirements of the rule.

The SCAQMD staff report for Rule 1113 projects that the submitted

rule will reduce VOC emissions from architectural coatings by 17.2% by

the year 2010. In contrast, control measure CTS-07 of SCAQMD's 1994 Air

Quality Management Plan (AQMP) commits SCAQMD to reduce architectural

coating emissions by 75% by 2010. EPA approved the 1994 AQMP, and thus

the 75% commitment, into the SIP on September 26, 1996 (52 FR 1150,

January 8, 1997). The AQMP relies on the concept that each industry

will reduce its fair share of emissions. Therefore, the 17.2% reduction

is ``only a fraction of the 75% emission reduction that will eventually

be required from AIM coatings to provide their fair share of the

required emission reductions'' (page 8, District staff recommendation

to Board regarding Board meeting to be held on November 8, 1996 to

amend Rule 1113).

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

enforceable and strengthens the applicable SIP. Therefore, South Coast

Air Quality Management District Rule

[[Page 33314]]

1113, Architectural Coatings is being proposed for approval under

section 110(k)(3) of the CAA in light of EPA's authority pursuant to

section 301(a) to adopt regulations necessary to further air quality by

strengthening the SIP. The submitted version of Rule 1113 strengthens

the SIP by updating a portion of the SIP for the Los Angeles Air Basin

that has not been revised since 1985. EPA notes, however, that the

submitted rule does not fulfill SCAQMD's SIP-approved commitment in

CTS-07 to reduce VOCs from architectural coatings by 75%. Air quality

progress and attainment of the public health-based ozone standard both

require that the District pursue expeditiously further emission

reductions from this large segment of the South Coast VOC emissions

inventory.

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

The Office of Management and Budget (OMB) has exempted this

regulatory action from Executive Order (E.O.) 12866 review.

The proposed rule is not subject to E.O. 13045, entitled

``Protection of Children from Environmental Health Risks and Safety

Risks,'' because it is not an ``economically significant'' action under

E.O. 12866.

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 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 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 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,

Intergovernmental relations, Ozone, Reporting and recordkeeping

requirements, Volatile organic compound.

Authority: 42 U.S.C. 7401 et seq.

Dated: June 7, 1998.

Felicia Marcus,

Regional Administrator, Region IX.

[FR Doc. 98-16255 Filed 6-17-98; 8:45 am]

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