Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; South Coast Air Quality Management District; Ventura County Air Pollution Control District; Mojave Desert Air Quality Management District

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 126-163a; FRL-6419-9]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; South Coast Air Quality Management

District; Ventura County Air Pollution Control District; Mojave Desert

Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

California State Implementation Plan. The revisions concern rules from

the South Coast Air Quality Management District (SCAQMD), Ventura

County Air Pollution Control District (VCAPCD), and Mojave Desert Air

Quality Management District (MDAQMD). This approval action will

incorporate two rules into the federally approved SIP and remove two

rules from the 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 two rules control VOC emissions from storage tank

cleaning and degassing operations and from components at crude oil and

natural gas production and processing facilities. The two rules to be

removed control VOC emissions from pumps, compressors, and relief

valves. Thus, EPA is finalizing the approval of these revisions of 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 October 18, 1999 without further

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

EPA receives such comment, it will publish a timely withdrawal in the

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 rules 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

rules 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

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

SW, Washington, DC 20460

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.

Ventura County Air Pollution Control District, 702 County Square Drive,

Ventura, CA 93003.

Mojave Desert Air Quality Management District, 15428 Civic Drive, Suite

200, Victorville, CA 92392-2383.

FOR FURTHER INFORMATION CONTACT: Max Fantillo, Rulemaking Office, AIR-

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

Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-1183.

SUPPLEMENTARY INFORMATION:

I. Applicability

The rules being approved into the California SIP include: SCAQMD's

Rule 1149, Storage Tank Cleaning and Degassing and VCAPCD's Rule 74.10,

Components at Crude Oil and Natural Gas Production and Processing

Facilities. The rules being removed from the SIP are MDAQMD's Rule 466,

Pumps and Compressors and Rule 467, Safety Pressure Relief Valves.

These rules were submitted by the California Air Resources Board (CARB)

to EPA on October 13, 1995 (Rule 1149), June 23, 1998 (Rule 74.10), and

November 30, 1994 (Rules 466 and 467).

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 Los Angeles-South

Coast Air Basin, the Ventura County area, and the South Desert Air

Basin managed by MDAQMD. 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. Public Law 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 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. The Los Angeles-South Coast Air Basin is

classified as extreme; the Ventura County area and the Southeast Desert

Air Basin managed by MDAQMD

[[Page 45176]]

are classified as severe; 2 therefore, these areas were

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

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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

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

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

technique guidelines (CTGs).

\2\ The Los Angeles-South Coast Air Basin, Ventura County area,

and the Southeast Desert Air Basin managed by MDAQMD retained their

designations 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 RACT rules for incorporation

into its SIP on November 30, 1994, October 13, 1995, and June 23, 1998,

including the rules being acted on in this document. This document

addresses EPA's direct-final action for SCAQMD'S Rule 1149, Storage

Tank Cleaning and Degassing, and VCAPCD's Rule 74.10, Components at

Crude Oil and Natural Gas Production and Processing Facilities. SCAQMD

adopted Rule 1149 on July 14, 1995 and VCAPCD amended Rule 74.10 on

March 10, 1998. These submitted rules were found to be complete on

November 28, 1995 and August 25, 1998 respectively pursuant to EPA's

completeness criteria that are set forth in 40 CFR part 51, appendix V

3 and are being finalized for approval into the SIP. This

document also addresses the State of California's request that MDAQMD's

Rule 466, Pumps and Compressors, and Rule 467, Safety Pressure Relief

Valves, be removed from the SIP.

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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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Rule 1149 controls VOC emissions from the cleaning and degassing of

stationary tanks, reservoirs, or other containers; Rule 74.10 sets

requirements for controls fugitive VOC emissions from crude oil and

natural gas production and processing facilities; rescinded Rules 466

and 467 control VOC emissions from pumps, compressors, and pressure

relief valves used in oil and gas production and processing facilities.

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

rules were originally adopted as part of SCAQMD's, VCAPCD's, and

MDAQMD'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. 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. See section 182(a)(2)(A). There is no CTG

document directly applicable to Rule 1149. However, CTG documents used

as guidance in evaluating Rule 1149 are entitled, ``Control of Volatile

Organic Emissions from Storage of Petroleum Liquids in Fixed-Roof

Tanks,'' EPA-450/2-77-036 and ``Control of Volatile Organic Emissions

from Petroleum Liquid Storage in External Floating Roof Tanks,'' EPA-

450/2-78-047. The CTG applicable to Rule 74.10 is entitled, ``Control

of Volatile Organic Compound Equipment Leaks from Natural Gas/Gasoline

Processing Plants,'' EPA-450/3-83-007. 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.

SCAQMD Rule 1149 is a new rule which controls VOC emissions from

the degassing of petroleum storage tanks, reservoirs, or other

containers. Above-ground containers and underground tanks are subject

to this rule depending upon their capacity and the vapor pressure of

the stored organic liquid. The rule requires degassing emissions to be

controlled by at least 90%, using several methods, including, liquid

balancing, negative pressure displacement with subsequent incineration,

or refrigeration. Monitoring of refrigeration and carbon adsorption is

required, along with records of monitoring results, vapor pressures,

and degassing operations.

On August 17, 1994, EPA approved into the SIP a version of Rule

74.10, Components at Crude Oil and Natural Gas Production and

Processing Facilities, that had been adopted by VCAPCD on June 16,

1992. Revisions to this rule were subsequently adopted on March 10,

1998 and submitted to EPA. VCAPCD's submitted Rule 74.10, Components at

Crude Oil and Natural Gas Production and Processing Facilities include

the following significant changes from the current SIP:

Expanded the applicability by including pipeline transfer

stations.

Added new requirements for inspection, inspection

frequency, and monitoring, and more stringent retrofit and/or

replacement requirements for critical components.

Added an option to change from quarterly to annual

inspection.

Tightened deadlines for both the initial and final repair

of leaks.

Added exemptions for certain components meeting certain

conditions and recordkeeping requirements for leaks.

Updated the test methods for measurement of ROC

concentrations.

Added violation requirements for liquid leaks.

Added new definitions and revised others for clarity.

MDAQMD's Rule 466, Pumps and Compressors and Rule 467, Safety

Pressure Relief Valves were submitted to be removed from the SIP. These

rules were adopted to control volatile organic compounds emissions from

pumps, compressors, and pressure relief valves within the Southeast

Desert Air Basin managed by MDAQMD. Rule 1102 was adopted to replace

Rules 466 and 467. Rule 1102 was approved into the SIP on September 27,

1995 (60 FR 49772). This rule covers the scope and emission limitations

that Rules 466 and 467 currently have in the SIP. Consequently, MDAQMD

is rescinding Rules 466 and 467 because they no longer apply and are

extraneous. Further, no limits are relaxed or emission increase by this

action. The removal of Rules 466 and 467 from the SIP are consistent

with EPA's policy requirements and remove extraneous rules that serve

no purpose.

EPA has evaluated the submitted rules and has determined that they

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

Therefore, SCAQMD's Rule 1149, Storage Tank Cleaning and Degassing, and

VCAPCD's Rule 74.10, Components at Crude Oil and Natural Gas Production

and Processing Facilities are being approved under section 110(k)(3) of

the CAA as meeting the requirements of section 110(a) and part D.

Furthermore, EPA is removing MDAQMD's Rules 466 and

[[Page 45177]]

467 consistent with the requirements of sections 110(l) and 193.

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 October 18, 1999

without further notice unless the Agency receives adverse comments by

September 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

will 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 October 18, 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 is

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 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

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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 October 18, 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,

Reporting and recordkeeping requirements, Volatile organic compounds.

Dated: July 30, 1999.

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 F--California

2. Section 52.220 is amended by adding paragraphs (c)(39)(ii)(G),

(c)(225)(i)(A)(4) and (c)(256)(i)(F)(1) to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(39) * * *

(ii) * * *

(G) Previously approved on October 8, 1978 and now deleted without

replacement Rules 466 and 467.

* * * * *

(225) * * *

(i) * * *

(A) * * *

(4) Rule 1149, adopted on December 4, 1987 and amended on July 14,

1995.

* * * * *

(256) * * *

(i) * * *

(F) Ventura County Air Pollution Control District.

(1) Rule 74.10, adopted on September 29, 1981 and amended on March

10, 1998.

* * * * *

[FR Doc. 99-21162 Filed 8-18-99; 8:45 am]

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