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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 224-0166a; FRL-6425-5]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision, South Coast Air Quality Management

District, Ventura County Air Pollution Control District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

-----------------------------------------------------------------------

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

California State Implementation Plan. The revisions concern rules from

the following special districts: South Coast Air Quality Management

District (SCAQMD); and, Ventura County Air Pollution Control District

(VCAPCD). 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) according to

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

Act). The revised rules control VOC emissions from pleasure craft

coating 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 November 1, 1999 without further

notice, unless EPA receives adverse comments by September 30, 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 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:

[[Page 47393]]

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 East Copley Drive,

Diamond Bar, CA 91765-4182; and,

Ventura County Air Pollution Control District, 669 County Square Drive,

Ventura, CA 93003

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, Telephone: (415) 744-

1226.

SUPPLEMENTARY INFORMATION:

I. Applicability

The rules being approved into the California SIP are SCAQMD Rule

1106.1--Pleasure Craft Coating Operations and VCAPCD Rule 74.24.1--

Pleasure Craft Coating and Commercial Boatyard Operations. These rules

were submitted by the California Air Resources Board (CARB) to EPA on

June 3, 1999 and February 16, 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 l977

(1977 Act or pre-amended Act), that included the South Coast air basin

and Ventura County. See 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 South Coast air basin is classified as extreme

and Ventura County is classified as severe.2 Therefore,

these areas were subject to the RACT fix-up requirement and the May 15,

1991 deadline.

---------------------------------------------------------------------------

\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\ Both the South Coast air basin and Ventura County 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).

---------------------------------------------------------------------------

The State of California submitted many revised RACT rules for

incorporation into its SIP on both June 3, 1999 and February 16, 1999,

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

addresses EPA's direct-final action for SCAQMD Rule 1106.1--Pleasure

Craft Coating Operations and VCAPCD Rule 74.24.1--Pleasure Craft

Coating and Commercial Boatyard Operations. SCAQMD adopted Rule 1106.1

on February 12, 1999. VCAPCD adopted Rule 74.24.1 on November 19, 1998.

EPA found both of these submitted rules to be complete on June 24, 1999

and April 23, 1999, respectively; pursuant to EPA's completeness

criteria that are set forth in 40 CFR part 51, appendix V.3

SCAQMD Rule 1106.1 and VCAPCD Rule 74.24.1 are being finalized for

approval into the SIP with today's action.

---------------------------------------------------------------------------

\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).

---------------------------------------------------------------------------

SCAQMD Rule 1106.1 and VCAPCD Rule 74.24.1 are designed to reduce

volatile organic compound (VOC) emissions at industrial sites engaged

in manufacturing or repairing vessels which are operated, leased,

rented, or chartered to a person or business for recreational purposes.

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

rules were adopted as part of SCAQMD and VCAPCD efforts 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 this rule.

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 one. 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). Further

interpretations of EPA policy are found in the Blue Book, referred to

in footnote one. In general, these guidance documents have been set

forth to ensure that VOC rules are fully enforceable and strengthen or

maintain the SIP.

However, there is no CTG applicable to the pleasure craft coating

operations source category. Along with SCAQMD Rule 1106.1 and VCAPCD

74.24.1, one other pleasure craft coating rule, San Diego County Air

Pollution Control District Rule 67.18, has been adopted within

California. Together, these three rules provide a basis for determining

what controls are reasonably available within California. This

rulemaking will not establish EPA's national definition of RACT for the

pleasure craft coating industry across the United States.

On April 13, 1995, EPA approved into the SIP a version of SCAQMD

Rule 1106.1--Pleasure Craft Coating Operations that had been adopted on

May 1, 1992. (See 60 FR 18750.) Revisions to this Rule 1106.1 were

adopted subsequently on March 8, 1996 and June 13, 1997, and submitted

to EPA. While EPA can only act on this most recently submitted version,

EPA reviewed relevant materials associated

[[Page 47394]]

with these prior and superseded versions of the rule. SCAQMD's

submitted Rule 1106.1 includes the following significant changes from

the current SIP:

--Increase temporarily the VOC emission limits for Extreme High Gloss

Topcoats from 490 gr/l to 650 gr/l and Finish Primers from 420 gr/l to

600 gr/l returning these emission limits to the previously lower limits

on January 1, 2001;

--Increase the VOC emissions limit for Antifoulants from 150 gr/l to

400 gr/l and lowering the emissions limit to 300 gr/l on January 1,

2001;

--Remove the requirement that sprayed coatings be applied using high

volume low pressure (HVLP) or equivalent methods; and,

--Provide related editorial amendments such as removing irrelevant past

compliance dates and emission limits and renumbering test method

designations.

The modified VOC content limits and compliance dates in the

submitted Rule 1106.1 neither interfere with reasonable further

progress, nor attainment of the NAAQS. Considering progress

requirements, enough surplus emission reductions exist between 1999 and

2005 in the EPA approved ozone attainment plan to allow a delay in

emission reductions from Rule 1106.1 while still meeting the CAA's

progress requirements. (See 62 FR 1181, January 8, 1997.) Regarding

attainment of the NAAQS in 2010, the relaxed emission limits in the

submitted rule add less than 0.0063% (40.5 pounds per day) to the EPA

approved 2010 VOC emissions budget of 323 tons per day. For these

reasons, the changes within submitted Rule 1106.1 are consistent with

the requirements of section 110(l) of the CAA.

EPA has evaluated submitted Rule 1106.1 and determined that it is

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

SCAQMD Rule 1106.1--Pleasure Craft Coating Operations is being approved

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

section 110(a) and part D. Although the VOC emissions increases due to

Rule 1106.1 can be considered a de minimus amount by themselves, SCAQMD

should account for the cumulative effect of such emission increases in

future attainment plan revisions.

There is no version of VCAPCD Rule 74.24.1--Pleasure Craft Coating

and Commercial Boatyard Operations in the SIP. The submitted rule

includes the following general provisions:

--Applicability;

--Requirements for ROC (reactive organic compounds) content of

coatings, surface preparation, and storage of ROC containing materials;

--Exemptions from the rule;

--Record keeping to demonstrate compliance with the rule;

--Test methods for determining compliance with the rule;

--Violations; and

--Definitions of terms used within the rule

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

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

VCAPCD Rule 74.24.1--Pleasure Craft Coating and Boatyard Operations is

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 rulemaking action 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 November

1, 1999 without further notice unless the Agency receives adverse

comments by September 30, 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 November 1, 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

[[Page 47395]]

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 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 November 1, 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: August 6, 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)(262)(i)(B)(2)

and (c)(264)(i)(A)(2) to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(262) * * *

(i) * * *

(B) * * *

(2) Rule 74.24.1, adopted on November 10, 1998.

* * * * *

(264) * * *

(i) * * *

(A) * * *

(2) Rule 1106.1, adopted on May 1, 1992, and amended on February

12, 1999.

* * * * *

[FR Doc. 99-22183 Filed 8-30-99; 8:45 am]

BILLING CODE 6560-50-P