Approval and Promulgation of Implementation Plans; Arizona State Implementation Plan Revision, Maricopa County

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[AZ017-0008; FRL-5957-6]

Approval and Promulgation of Implementation Plans; Arizona State

Implementation Plan Revision, Maricopa County

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is finalizing a limited approval and limited disapproval

of a revision to the Arizona State Implementation Plan (SIP) proposed

in the Federal Register on December 17, 1997. This final action will

incorporate this rule into the federally approved SIP. The intended

effect of this action is to regulate volatile organic compound (VOC)

emissions according to the requirements of the Clean Air Act, as

amended in 1990 (CAA or the Act). The revised rule controls VOC

emissions from various surface coating operations using primarily metal

and plastic

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substrates. Thus, EPA is finalizing a simultaneous limited approval and

limited disapproval under CAA provisions regarding EPA action on SIP

submittals and general rulemaking authority because these revisions,

while strengthening the SIP, also do not fully meet the CAA provisions

regarding plan submissions and requirements for nonattainment areas. As

a result of this limited disapproval, EPA will be required under the

CAA to impose highway funding or emission offset sanctions unless

Arizona submits and EPA approves corrections to the identified

deficiencies within eighteen months of the effective date of this

disapproval. Moreover, EPA will be required to promulgate a Federal

implementation plan (FIP) unless the deficiencies are corrected within

twenty-four months of the effective date of this disapproval.

EFFECTIVE DATE: This action is effective on March 11, 1998.

ADDRESSES: Copies of Rule 336 and EPA's evaluation report are available

for public inspection at EPA's Region 9 office during normal business

hours. Copies of the submitted rule are also available for inspection

at the following locations:

Rulemaking Office (AIR-4), Air Division, U.S. Environmental Protection

Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901,

(415) 744-1226.

Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street,

SW., Washington, DC 20460.

Arizona Department of Environmental Quality, 3003 North Central Avenue,

Phoenix, AZ 85012.

Maricopa County Environmental Services Department, 2406 S. 24th Street,

Suite E-214, Phoenix, AZ 85034.

FOR FURTHER INFORMATION CONTACT: Jerald S. Wamsley, Rulemaking Office

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

75 Hawthorne Street, San Francisco, CA 94105-3901, (415) 744-1226.

SUPPLEMENTARY INFORMATION:

I. Applicability

The rule being approved into the Arizona SIP is Maricopa County

Rule 336, Surface Coating Operations. This rule was submitted by the

Arizona Department of Environmental Quality (ADEQ) to EPA on February

26, 1997.

II. Background

On December 17, 1997 in 62 FR 66040, EPA proposed granting a

limited approval and limited disapproval of Rule 336, Surface Coating

Operations and incorporating the rule into the Arizona SIP. Rule 336

was adopted by Maricopa County on June 19, 1996. This rule was

submitted by the Arizona Department of Environmental Quality to EPA on

February 26, 1997. This rule was submitted in response to EPA's 1988

SIP Call and the CAA section 182(a)(2)(A) requirement that

nonattainment areas fix their reasonably available control technology

(RACT) rules for ozone in accordance with EPA guidance that interpreted

the requirements of the pre-amendment 1990 Clean Air Act. A detailed

discussion of the background for Rule 336 and nonattainment areas is

provided in the proposed rule cited above.

EPA has evaluated Rule 336 for consistency with the requirements of

the CAA, EPA regulations, and EPA's interpretation of these

requirements as expressed in the various EPA policy guidance documents

referenced in the proposed rule. EPA is finalizing the limited approval

of this rule to strengthen the SIP and finalizing the limited

disapproval requiring the correction of the remaining deficiencies

within Rule 336.

Rule 336's VOC emission limits conform to the respective CTG or ACT

requirement and the rule contains adequate record keeping and test

method provisions for monitoring the compliance of regulated

facilities. However, several portions of the rule are unclear or

contradict the subject CTG. The following sections should be amended to

be consistent with the applicable CTG and EPA policy:

--Section 306.4, Exemptions, Special Facilities/Operations,

--Section 306.5, Exemptions, Small Sources, and

--Section 402, Administrative Requirements, Minimal Use Days.

A detailed discussion of Rule 336's provisions and EPA's evaluation has

been provided in the proposed rule and in the technical support

document (TSD) available at EPA's Region IX office (TSD dated October

1997).

III. Response to Public Comments

A 30-day public comment period was provided in 62 FR 66040. EPA

received no comments on this proposed rule.

IV. EPA Action

EPA is finalizing a limited approval and a limited disapproval of

Rule 336. The limited approval of this rule is finalized under section

110(k)(3) in light of EPA's authority pursuant to section 301(a) to

adopt regulations necessary to further air quality by strengthening the

SIP. The approval is limited in the sense that Rule 336 strengthens the

SIP. However, while Rule 336 strengthens the SIP, it does not meet the

section 182(a)(2)(A) CAA requirement because of the rule's deficiencies

discussed in the proposed rule. Thus, to strengthen the SIP, EPA is

granting limited approval of Rule 336 under sections 110(k)(3) and

301(a) of the CAA. This action approves Rule 336 into the SIP as a

federally enforceable rule.

At the same time, EPA is finalizing the limited disapproval of Rule

336 because it contains deficiencies that have not been corrected as

required by section 182(a)(2)(A) of the CAA, and, as such, the rule

does not meet the requirements of Part D of the Act. As stated in the

proposed rule, upon the effective date of this final action, the

eighteen month clock for sanctions and the twenty-four month FIP clock

will begin. (See Sections 179(a) and 110(c) of the CAA.) If the State

does not submit the required corrections and EPA does not approve the

submittal within eighteen months of this final action, either the

highway sanction or the offset sanction will be imposed at the eighteen

month mark. It should be noted that Rule 336 has been adopted by

Maricopa County and is in effect within the county. EPA's limited

disapproval action will not prevent Maricopa County, the State of

Arizona, or EPA from enforcing Rule 336.

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.

V. 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

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with jurisdiction over populations of less than 50,000.

SIP approvals under sections 110 and 301, and subchapter I, part D

of the CAA 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, I certify

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 action 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

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) 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 April 10, 1998. 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 Arizona was approved by the Director of the

Federal Register on July 1, 1982.

Dated: January 15, 1998.

David P. Howekamp,

Acting Regional Administrator, Region IX.

Part 52, 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 et seq.

Subpart D--Arizona

2. Section 52.120 is amended by adding paragraph (c)(83)(i)(B) to

read as follows:

Sec. 52.120 Identification of plan.

* * * * *

(c) * * *

(83) * * *

(i) * * *

(B) Rule 336, adopted on July 13, 1988 and revised on June 19,

1996.

* * * * *

[FR Doc. 98-3023 Filed 2-6-98; 8:45 am]

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