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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 226-0159a FRL-6376-3]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision, South Coast Air Quality Management

District and Yolo-Solano Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to approve revisions to the

California State Implementation Plan. The revisions concern rules from

the following: South Coast Air Quality Management District (SCAQMD) and

Yolo-Solano Air Quality Management District (YSAQMD). This approval

action will incorporate these rules into the federally approved SIP.

The intended effect of approving these rules is to regulate emissions

of volatile organic compounds (VOCs) in accordance with the

requirements of the Clean Air Act, as amended in 1990 (CAA or the Act).

The revised rules control VOC emissions from organic liquid loading,

pharmaceutical and cosmetics manufacturing operations, and polyester

resin operations. Thus, EPA is finalizing the approval of these

revisions into the California SIP 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: This rule is effective on September 20, 1999 without further

notice, unless EPA receives adverse comments by August 20, 1999. If EPA

receives such comment, it will publish a timely withdrawal Federal

Register informing the public that this rule will not take effect.

ADDRESSES: Written comments must be submitted to Andrew Steckel at the

Region IX office listed below. Copies of the rule revisions and EPA's

evaluation report for each rule are available for public inspection at

EPA's Region IX office during normal business hours. Copies of the

submitted rule revisions are 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.

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

S.W., Washington, D.C. 20460.

California Air Resources Board, Stationary Source Division, Rule

Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95812.

South Coast Air Quality Management District, 21865 East Copley Drive,

Diamond Bar, CA 91765.

Yolo-Solano Air Pollution Control District, 1947 Galileo Court, Suite

103, Davis, CA 95616.

FOR FURTHER INFORMATION CONTACT: Al Petersen, Rulemaking Office, AIR-4,

Air Division, U.S. Environmental Protection Agency, Region IX, 75

Hawthorne Street, San Francisco, CA 94105-3901, Telephone: (415) 744-

1135.

SUPPLEMENTARY INFORMATION:

I. Applicability

The rules being approved into the California SIP include: SCAQMD

Rule 462, Organic Liquid Loading, SCAQMD rule 1103, Pharmaceuticals and

Cosmetics Manufacturing Operations, and YSAQMD rule 2.30, Polyester

Resin Operations. These rules were submitted by the California Air

Resources Board to EPA on June 3, 1999, May 13, 1999, and June 3, 1999,

respectively.

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 Act or pre-amended Act), that included the South Coast Air Basin

Area (SCABA) and Yolo County and part of Solano County (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 1977 Act, that the above

districts' 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. In amended section

182(a)(2)(A) of the CAA, Congress statutorily adopted the requirement

that nonattainment areas fix their deficient reasonably available

control technology (RACT) rules for ozone and established a deadline of

May 15, 1991 for states to submit corrections of those deficiencies.

Section 182(a)(2)(A) applies to areas designated as nonattainment

prior to enactment of the amendments and classified as marginal or

above as of the date of enactment. It requires such areas to adopt and

correct RACT rules

[[Page 39038]]

pursuant to pre-amended section 172 (b) as interpreted in pre-amendment

guidance.1 EPA's SIP-Call used that guidance to indicate the

necessary corrections for specific nonattainment areas. SCABA, which

includes the SCAQMD, is classified as extreme nonattainment for ozone.

Yolo County and part of Solano County are classified as severe-15

nonattainment for ozone.2 Therefore, these areas were

subject to the RACT fix-up requirement and the May 15, 1991 deadline. u

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\1\ Among other things, the pre-amendment guidance consists of

those portions of the proposed Post-1987 ozone and carbon monoxide

policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues

Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations,

Clarification to Appendix D of November 24, 1987 Federal Register

Notice'' (Blue Book) (notice of availability was published in the

Federal Register on May 25, 1988); and the existing control

technique guidelines (CTGs).

\2\ SCAQMD and YSAQMD, respectively, retained their designation

of nonattainment and were 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 revised RACT rules for

incorporation into its SIP, including the rules being acted on in this

document. This document addresses EPA's direct-final action for SCAQMD

rule 462, Organic Liquid Loading, adopted on May 14, 1999, and found to

be complete on June 24, 1999 pursuant to EPA's completeness criteria

that are set forth in 40 CFR part 51, Appendix V 3 and is

being finalized for approval into the SIP; SCAQMD rule 1103,

Pharmaceuticals and Cosmetics Manufacturing Operations, adopted on

March 12, 1999, and found to be complete on June 10, 1999; and YSAQMD

Rule 2.30, Polyester Resin Operations, adopted on April 14, 1999, and

found to be complete on June 24, 1999.

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\3\ 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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SCAQMD rule 462 is intended to control emissions of VOCs of greater

than 1.5 psia (77.5 mm Hg) from loading into tank trucks, trailers, or

railroad tank cars. SCAQMD Rule 1103 is intended to control VOC

emissions from the manufacture of pharmaceuticals, cosmetics,

antibiotics, vitamins, botanic and biological products, tablets, and

capsules. EPA granted limited approval and limited disapproval to

SCAQMD rules 462 and 1103 on November 13, 1997, 62 FR 60784. Today's

direct final rule approves revisions to these rules, that have been

amended to address the deficiencies identified in the 1997

disapprovals. Any sanctions now in effect as a result of the 1997

action will be terminated on the effective date of this direct final

rule.

YSAQMD rule 2.30 is intended to control VOC emissions from

fabrication operations using polyester resin. EPA proposed limited

approval and limited disapproval of a version of YSAQMD rule 2.30 on

December 8, 1994, 49 FR 63286. This action was never finalized. Today's

direct final rule approves the rule after being corrected for the

deficiencies that were identified in the proposed limited disapproval.

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

These rules were originally adopted as part of California's effort to

achieve the National Ambient Air Quality Standard (NAAQS) for ozone and

in response to EPA's SIP-Call and the section 182(a)(2)(A) CAA

requirement. The following is EPA's evaluation and final action for

these rules.

III. EPA Evaluation and 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). The EPA interpretation of these requirements,

which forms the basis for today's action, appears in the various EPA

policy guidance documents listed in footnote 1. Among those provisions

is the requirement that a VOC rule must, at a minimum, provide for the

implementation of RACT for stationary sources of VOC emissions. This

requirement was carried forth from the pre-amended Act.

For the purpose of assisting state and local agencies in developing

RACT rules, EPA prepared a series of Control Technique Guideline (CTG)

documents that are applicable to certain VOC rules. The CTGs are based

on the underlying requirements of the Act and specify the presumptive

norms for what is RACT for specific source categories. Under the CAA,

Congress ratified EPA's use of these documents, as well as other Agency

policy, for requiring States to ``fix-up'' their RACT rules according

to section 182(a)(2)(A). The CTG applicable to SCAQMD rule 1103 is

entitled, ``Control of Volatile Organic Emissions from Manufacture of

Synthesized Pharmaceutical Products'', EPA 450/2-78-029. CTGs

applicable to SCAQMD rule 462 are entitled, ``Control of Hydrocarbons

from Tank Truck Gasoline Loading Terminals'', EPA-450/2-77-026;

``Control of Volatile Organic Compound Leaks from Gasoline Tank Trucks

and Vapor Collection Systems'', EPA-450/2-78-051; and ``Control of

Volatile Organic Emissions from Bulk Gasoline Plants'', EPA 450/2-77-

035. There are no CTGs applicable to YSAQMD. Further interpretations of

EPA policy are found in the Blue Book, referred to in footnote 1. In

general, these guidance documents have been set forth to ensure that

VOC rules are fully enforceable and strengthen or maintain the SIP.

On November 13, 1997 (62 FR 60784), EPA granted limited approval

and limited disapproval a version of SCAQMD rule 462, Organic Liquid

Loading, that had been adopted by SCAQMD on June 9, 1995. Submitted

SCAQMD rule 462 includes the following significant changes from the

current SIP rule:

The definition of ``facility vapor leak'' and other

definitions were revised for clarity.

Methods were provided for determining vapor leak and

compliance to emission limits.

Obsolete compliance dates were eliminated.

On November 13, 1997 (62 FR 60784), EPA granted limited approval

and limited disapproval a version of SCAQMD rule 1103, Pharmaceuticals

and Cosmetics Manufacturing Operations, that had been adopted by SCAQMD

on December 7, 1990. Submitted SCAQMD rule 1103 includes the following

significant changes from the current SIP rule:

Methods were described for determination of control device

efficiency and of surface condenser efficiency, instead of director's

discretion.

Operating requirements were specified and vacuum vents

were required over 1.5 psia, instead of director's discretion.

The calculation method for composite total pressure and

the test method for weight of VOC were added.

``Leak'' is defined relative to the allowed time from

detection to repair.

On December 8, 1994 (59 FR 63286), EPA proposed limited approval

and limited disapproval a version of YSAQMD Rule 2.30, Polyester Resin

Operations, that had been adopted by YSAQMD on August 25, 1993. This

action was never finalized. Submitted YSAQMD Rule 2.30 includes the

following significant change from the proposed rule:

The test method for monomer content is specified as the

SCAQMD Test Method 312, Percent Monomer in Polyester Resins, for

restricting the monomer content to no more than 35 percent by weight.

[[Page 39039]]

EPA has evaluated the submitted rules and has determined that they

are consistent with the CAA, EPA regulations, and EPA policy.

Therefore, SCAQMD rule 462, Organic Liquid Loading; SCAQMD rule 1103,

Pharmaceutical and Cosmetics Manufacturing Operations; and YSAQMD rule

2.30, Polyester Resin Operations, are being approved under section

110(k)(3) of the CAA as meeting the requirements of section 110(a) and

part D.

EPA is publishing this rule without prior proposal because the

Agency views this as a noncontroversial amendment and anticipates no

adverse comments. However, in the proposed rules section of this

Federal Register publication, EPA is publishing a separate document

that will serve as the proposal to approve the SIP revision should

adverse comments be filed. This rule will be effective September 20,

1999 without further notice unless the Agency receives adverse comments

by August 20, 1999.

If the EPA receives such comments, then EPA will publish a timely

withdrawal in the Federal Register informing the public that the rule

did not take effect. All public comments received will then be

addressed in a subsequent final rule based on the proposed rule. The

EPA will not institute a second comment period. Any parties interested

in commenting on this rule should do so at this time. If no such

comments are received, the public is advised that this rule is

effective on September 20, 1999 and no further action will be taken on

the proposed rule.

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, Regulatory

Planning and Review.

B. Executive Order 12875

Under Executive Order 12875, Enhancing the Intergovernmental

Partnership, EPA may not issue a regulation that is not required by

statute and that creates a mandate upon a State, local or tribal

government, unless the Federal government provides the funds necessary

to pay the direct compliance costs incurred by those governments, or

EPA consults with those governments. If EPA complies by consulting,

Executive Order 12875 requires EPA to provide to the Office of

Management and Budget a description of the extent of EPA's prior

consultation with representatives of affected State, local and tribal

governments, the nature of their concerns, copies of any written

communications from the governments, and a statement supporting the

need to issue the regulation. In addition, Executive Order 12875

requires EPA to develop an effective process permitting elected

officials and other representatives of State, local and tribal

governments ``to provide meaningful and timely input in the development

of regulatory proposals containing significant unfunded mandates.''

Today's rule does not create a mandate on State, local or tribal

governments. The rule does not impose any enforceable duties on these

entities. Accordingly, the requirements of section 1(a) of E.O. 12875

do not apply to this rule.

C. Executive Order 13045

Protection of Children from Environmental Health Risks and Safety

Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) Is

determined to be ``economically significant'' as defined under E.O.

12866, and (2) concerns an environmental health or safety risk that EPA

has reason to believe may have a disproportionate effect on children.

If the regulatory action meets both criteria, the Agency must evaluate

the environmental health or safety effects of the planned rule on

children, and explain why the planned regulation is preferable to other

potentially effective and reasonably feasible alternatives considered

by the Agency. This rule is not subject to E.O. 13045 because it does

not involve decisions intended to mitigate environmental health or

safety risks.

D. Executive Order 13084

Under Executive Order 13084, Consultation and Coordination with

Indian Tribal Governments, EPA may not issue a regulation that is not

required by statute, that significantly or uniquely affects the

communities of Indian tribal governments, and that imposes substantial

direct compliance costs on those communities, unless the Federal

government provides the funds necessary to pay the direct compliance

costs incurred by the tribal governments, or EPA consults with those

governments. If EPA complies by consulting, Executive Order 13084

requires EPA to provide to the Office of Management and Budget, in a

separately identified section of the preamble to the rule, a

description of the extent of EPA's prior consultation with

representatives of affected tribal governments, a summary of the nature

of their concerns, and a statement supporting the need to issue the

regulation. In addition, Executive Order 13084 requires EPA to develop

an effective process permitting elected officials and other

representatives of Indian tribal governments ``to provide meaningful

and timely input in the development of regulatory policies on matters

that significantly or uniquely affect their communities.'' Today's rule

does not significantly or uniquely affect the communities of Indian

tribal governments. Accordingly, the requirements of section 3(b) of

E.O. 13084 do not apply to this rule.

E. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) generally requires an agency

to conduct a regulatory flexibility analysis of any rule subject to

notice and comment rulemaking requirements unless the agency certifies

that the rule will not have a significant economic impact on a

substantial number of small entities. Small entities include small

businesses, small not-for-profit enterprises, and small governmental

jurisdictions. This final rule will not have a significant impact on a

substantial number of small entities because 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

create any new requirements, I certify that this action will not have a

significant economic impact on a substantial number of small entities.

Moreover, due to the nature of the Federal-State relationship under the

Clean Air Act, preparation of 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).

F. 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

annual 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

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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 annual 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

requirements. Accordingly, no additional costs to State, local, or

tribal governments, or to the private sector, result from this action.

G. Submission to Congress and the Comptroller General

The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the

Small Business Regulatory Enforcement Fairness Act of 1996, generally

provides that before a rule may take effect, the agency promulgating

the rule must submit a rule report, which includes a copy of the rule,

to each House of the Congress and to the Comptroller General of the

United States. EPA will submit 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 United States prior

to publication of the rule in the Federal Register. This rule is not a

``major'' rule as defined by 5 U.S.C. 804(2).

H. 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 September 20, 1999. 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,

Particulate matter, Reporting and recordkeeping requirements, and

Volatile Organic Compounds. Note: Incorporation by reference of the

State Implementation Plan for the State of California was approved by

the Director of the Federal Register on July 1, 1982.

Dated: June 29, 1999.

Laura Yoshii,

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 F--California

2. Section 52.220 is amended by adding paragraphs (c) (263) and

(264) to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(263) New and amended regulations for the following APCDs were

submitted on May 13, 1999, by the Governor's designee.

(i) Incorporation by reference.

(A) South Coast Air Quality Management District.

(1) Rule 1103, adopted on March 12, 1999.

* * * * *

(264) New and amended regulations for the following APCDs were

submitted on June 3, 1999, by the Governor's designee.

(i) Incorporation by reference.

(A) South Coast Air Quality Management District.

(1) Rule 462, adopted on May 14, 1999.

(B) Yolo-Solano Air Quality Management District.

(1) Rule 2.30, adopted on April 14, 1999.

* * * * *

[FR Doc. 99-18472 Filed 7-20-99; 8:45 am]

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