Approval and Promulgation of Implementation Plans; Texas; Reasonably Available Control Technology for Major Stationary Sources of Nitrogen Oxides for the Houston/Galveston and Beaumont/Port Arthur Ozone Nonattainment Areas

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX-102-1-7395; FRL-6465-2]

Approval and Promulgation of Implementation Plans; Texas;

Reasonably Available Control Technology for Major Stationary Sources of

Nitrogen Oxides for the Houston/Galveston and Beaumont/Port Arthur

Ozone Nonattainment Areas

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed conditional approval.

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

SUMMARY: The EPA is proposing conditional approval of rules into the

Texas State Implementation Plan (SIP). These rules require Reasonably

Available Control Technology (RACT) at stationary sources of nitrogen

oxides (NOX) in the Houston/Galveston (H/G), and the

Beaumont/Port Arthur (B/PA) ozone nonattainment areas. Texas originally

submitted these rules on June 15, 1993. Texas has made nine revisions

to the rules since the original Submittal. In this document we propose

conditional approval of Texas' SIP submittals concerning control of

NOX emissions dating from June 15, 1993 to May 20, 1998, as

meeting the NOX RACT requirements of the Federal Clean Air

Act (the Act).

DATES: Comments must be received on or before November 29, 1999.

ADDRESSES: Your comments on this action should be addressed to Mr.

Thomas H. Diggs, Chief, Air Planning Section, Environmental Protection

Agency, Region 6, 1445 Ross Avenue, Suite 700, Dallas, Texas 75202-

2733. Copies of the documents about this action including the Technical

Support Document, are available for public inspection during normal

business hours at the above and following location. Persons interested

in examining these documents should

[[Page 58012]]

make an appointment with the appropriate office at least 24 hours

before the visiting day.

Environmental Protection Agency, Region 6, 1445 Ross Avenue, Suite 700,

Dallas, Texas 75202-2733.

Texas Natural Resource Conservation Commission, Office of Air Quality,

12124 Park 35 Circle, Austin, Texas 78753.

FOR FURTHER INFORMATION CONTACT: Mr. Alan Shar, P.E., Air Planning

Section (6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-

2733, telephone (214) 665-6691.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. What are we proposing to approve?

II. What are nitrogen oxides?

III. What is Reasonably Available Control Technology?

IV. What are the Clean Air Act's RACT requirements for

NOX emissions?

V. What are definitions of major sources for NOX?

VI. What are Alternative Control Techniques (ACTs)?

VII. What is a State Implementation Plan?

VIII. What is the Federal approval process for a SIP?

IX. What does Federal approval of a SIP mean to me?

X. What is a nonattainment area?

XI. What counties in Texas will this rule affect?

XII. What are the specific rule revisions we are proposing to

approve?

XIII. What kind of major source categories will this rule affect?

XIV. Are NOX emission specifications in Texas rule

comparable with Federal guidelines?

XV. Why is this a conditional approval?

XVI. What are the monitoring requirements?

Administrative Requirements

Throughout this document ``we,'' ``us,'' and ``our'' means EPA.

I. What Are We Proposing To Approve?

We are proposing conditional approval of revisions to the Texas

Rule 30 TAC Chapter 117 for the control of air pollution from nitrogen

compounds. These measures will reduce NOX emissions in H/G

and B/PA ozone nonattainment areas. By this approval we are agreeing

that the State of Texas will be implementing the RACT on sources listed

in Section XIII of this notice. Specifically, we are proposing to

conditionally approve revisions submitted on June 15, 1993, August 31,

1993, June 9, 1994, August 3, 1994, September 21, 1994, December 29,

1994, March 6, 1996, August 9, 1996, May 21, 1997, and May 20, 1998.

The approval is conditioned on Texas revising Regulation 117.570 to

remove the ability to add one standard deviation to the emissions

baseline for trading purposes. Furthermore, the Texas Accelerated

Vehicle Retirement (AVR) program is not a part of the approved SIP (see

62 FR 66576, December 19, 1997, and 63 FR 41756, August 5, 1998);

consequently, if a source plans to rely upon any emission reduction

credits generated or claimed through the AVR program, for interim

compliance with Chapter 117, the State will have to submit a separate

source specific SIP revision to us for approval.

Texas must submit the approvals of the alternative case-specific

specifications under sections 117.121, 117.221, 117.321 and 117.426, by

the Executive Director or the Commissioners, to the EPA for approval as

source-specific SIP revisions. Texas must submit approvals of a

petition for phased RACT under Section 117.540, by the Executive

Director or the Commissioners, to the EPA for approval as source-

specific SIP revision. Otherwise, a source operating under such a State

approval is subject to Federal enforcement action for violation of the

required specifications and/or compliance deadline.

II. What Are Nitrogen Oxides?

Nitrogen oxides (NOX) belong to the group of criteria

air pollutants. The NOX are produced from burning fuels,

including gasoline and coal. Nitrogen oxides react with volatile

organic compounds (VOC) to form ozone or smog, and are also major

components of acid rain.

III. What Is Reasonably Available Control Technology?

Reasonably Available Control Technology is defined as the lowest

emission limitation that a particular source can meet by applying a

control technique that is reasonably available considering

technological and economic feasibility. See 44 FR 53761, September 17,

1979. This requirement is established by sections 182(b)(2) and 182(f)

of the Act. These sections, taken together, establish the requirements

for Texas to submit a NOX RACT regulation for all major

stationary sources of NOX in ozone nonattainment areas

classified as moderate and above. A State may choose to develop its own

RACT requirements on a case by case basis, considering the economic and

technical circumstances of an individual source.

IV. What Are the Clean Air Act's RACT Requirements for

NOX Emissions?

Section 182(b)(2) requires States located in areas classified as

moderate ozone nonattainment areas to require implementation of RACT

with respect to all major sources of VOCs. Section 182(f) states that,

``The plan provisions required under this subpart for major stationary

sources of volatile organic compounds shall also apply to major

stationary sources (as defined in section 302 and subsections (c), (d),

and (e) of the section) of oxides of nitrogen.'' This NOX

RACT requirement also applies to all major sources in ozone

nonattainment areas with higher than moderate nonattainment

classifications.

On November 25, 1992, (57 FR 55620), we published a notice of

proposed rulemaking entitled ``State Implementation Plans; Nitrogen

Oxides Supplement to the General Preamble; Clean Air Act Amendments of

1990 Implementation of Title I; Proposed Rule,'' (the NOX

Supplement). The NOX Supplement describes and provides

preliminary guidance on the requirements of section 182(f) of the Act.

You should refer to the NOX supplement for further

information on the NOX requirements. The EPA's mandatory

Economic Incentive Program (EIP) rules for criteria pollutants appear

in 40 CFR part 51, subpart U (59 FR 16710). The EPA's discretionary EIP

rules concerning emission trading appear in the 1994 EIP guidance

document (59 FR 16690). In addition, other EPA guidance memoranda, such

as those included in the ``NOX Policy Document for the Clean

Air Act of 1990,'' (EPA-452/R96-005, March 1996), should also be

referred to for more information about NOX requirements.

On August 17, 1994, the Texas Natural Resource Conservation

Commission (TNRCC) petitioned us under section 182(b) to temporarily

exempt the B/PA and H/G ozone nonattainment areas from the

NOX requirements of the Act. The TNRCC asked for the

exemption based on air quality modeling that indicated that the control

of NOX would not contribute to attainment of the National

Ambient Air Quality Standards (NAAQS). We approved the petition on

April 19, 1995.

The temporary exemption was to expire on December 31, 1996 with

RACT compliance no later than May 31, 1997. On March 6, 1996, the TNRCC

asked us to extend the temporary waiver. The TNRCC asked for an

extension of the temporary waiver based on section 182(f) of the Act.

Section 182(f) allows for a waiver of certain federally required

NOX control measures, if the State demonstrates that

NOX reductions do not contribute to ozone attainment in

moderate or above areas. The State submitted modeling information with

a petition predicting that the NOX reductions would be

[[Page 58013]]

counterproductive to ozone attainment in portions of H/G and B/PA

areas. The EPA approved the petition and granted an extension until

December 31, 1997, to allow time for carrying out further modeling. The

NOX RACT compliance date was as expeditious as practicable,

but no later than May 31, 1999. Based on this further modeling, TNRCC

allowed the waiver to expire. We provided notice that the waiver had

expired in the Federal Register on February 12, 1998 (63 FR 7071). The

NOX RACT compliance date was extended to no later than

November 15, 1999.

Section 182(b)(2) requires submittal of RACT rules for major

stationary sources of VOC (and NOX) emissions not covered by

either a pre-enactment or post-enactment control techniques guideline

(CTG) document. There were no NOX CTGs issued before

enactment and we have not issued a CTG document for any NOX

sources since enactment of the Act. States can use the information

contained in the Alternative Control Techniques (ACTs) to develop their

RACT rules. The Texas rules covering NOX sources and

submitted as SIP revisions require final installation of the actual

NOX controls as expeditiously as practicable, but no later

than November 15, 1999.

V. What Are Definitions of Major Sources for NOX?

Section 302 of the Act generally defines ``major stationary

source'' as a facility or source of air pollution which emits, when

uncontrolled, 100 tons per year (tpy) or more of air pollution. This

general definition applies unless another specific provision of the Act

explicitly defines major source differently. Therefore, for

NOX, a major source is one which emits, when uncontrolled,

100 tpy or more of NOX in marginal and moderate areas.

According to section 182(c) of the Act, a major source in a serious

nonattainment area is a source that emits, when uncontrolled, 50 tpy or

more of NOX.

According to section 182(d) of the Act, a major source in a severe

nonattainment area is a source that emits, when uncontrolled, 25 tpy or

more of NOX.

Houston is a severe ozone nonattainment area, so the major source

size for Houston is 25 tpy or more, when uncontrolled. Beaumont is a

moderate ozone nonattainment area, so the major source size for

Beaumont is 100 tpy or more, when uncontrolled.

VI. What Are Alternative Control Techniques (ACTs)?

Section 183(c) of the Act provides that we will issue technical

documents which identify alternative controls for stationary sources of

oxides of nitrogen which emit, when uncontrolled, 25 tpy or more of

this pollutant. These ACT documents are to be subsequently revised and

updated by us. The information in the ACT documents is generated from

EPA papers, literature sources and contacts, control equipment vendors,

engineering firms, and Federal, State, and local regulatory agencies.

States can use information in the ACT to develop their RACT

regulations. The following table contains list of ACT documents for

various source categories of NOX with their corresponding

EPA publication numbers.

Table I.--ACT Documents for Source Categories of NOX and their EPA

Publication Numbers

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

Source category EPA publication number

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

Nitric/adipic Acid Plants............. EPA-450/3-91-026

Gas Turbines.......................... EPA-453/R-93-007

Process Heaters....................... EPA-453/R-93-034

Internal Combustion Engines........... EPA-453/R-93-032

Cement Plants......................... EPA-453/R-94-004

Non-utility Boilers................... EPA-453/R-94-022

Utility Boilers....................... EPA-453/R-94-023

Glass Manufacturing................... EPA-453/R-94-037

Iron and Steel Manufacturing.......... EPA-453/R-94-065

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

VII. What is a State Implementation Plan?

Section 110 of the Act requires states to develop air pollution

regulations and control strategies to ensure that State air quality

meets the NAAQS established by the EPA. The NAAQS are established under

section 109 of the Act to protect public health, and they address six

criteria pollutants. These criteria pollutants are: carbon monoxide,

nitrogen dioxide, ozone, lead, particulate matter, and sulfur dioxide.

Each state must submit these regulations and control strategies to

us for approval and incorporation into the federally enforceable SIP.

Each state has a SIP designed to protect air quality. These SIPs can be

extensive, containing State regulations or other enforceable documents

and supporting information such as emission inventories, monitoring

networks, and modeling demonstrations.

VIII. What Is the Federal Approval Process for a SIP?

In order for State regulations to be incorporated into the

federally enforceable SIP, States must formally adopt the regulations

and control strategies consistent with State and Federal requirements.

This process includes a public notice, a public hearing, a public

comment period, and a formal adoption by a state-authorized rulemaking

body.

Once a State rule, regulation, or control strategy is adopted, the

State may submit the adopted provisions to us and request that these

provisions be included in the federally enforceable SIP. We must then

decide on an appropriate Federal action, provide public notice on this

action, and seek

[[Page 58014]]

additional public comment regarding this action. If adverse comments

are received, we must address them prior to a final action.

All State regulations and supporting information approved by us

under section 110 of the Act are incorporated into the federally

approved SIP. Records of these SIP actions are maintained in the Code

of Federal Regulations (CFR) at Title 40, part 52, entitled ``Approval

and Promulgation of Implementation Plans.'' The actual State

regulations which were approved are not reproduced in their entirety in

the CFR but are ``incorporated by reference,'' which means that we have

approved a given State regulation with a specific effective date.

IX. What Does Federal Approval of a SIP Mean to me?

Enforcement of the State regulation before and after it is

incorporated into federally approved SIP is primarily a state function.

However, once the regulation is federally approved, we and the public

may take enforcement action against violators of these regulations if

the State fails to do so.

X. What Is a Nonattainment Area?

A nonattainment area is a geographic area in which the level of a

criteria air pollutant is higher than the level allowed by Federal

standards. A single geographic area may have acceptable levels of one

criteria air pollutant but unacceptable levels of one or more other

criteria air pollutants; thus, a geographic area can be attainment for

one criteria pollutant and nonattainment for another criteria pollutant

at the same time. It has been estimated that 60 percent of Americans

live in nonattainment areas. The H/G and B/PA are nonattainment areas

for ozone.

XI. What Counties in Texas Will This Rule Affect?

This rule affects the H/G and B/PA ozone nonattainment areas. The

B/PA area is classified as moderate ozone nonattainment and includes

the following counties: Hardin, Jefferson, and Orange. The H/G is

classified as severe ozone nonattainment and includes the following

counties: Brazoria, Chambers, Fort Bend, Harris, Galveston, Liberty,

Montgomery, and Waller. If you are in one of these counties, you should

refer to the rules to determine if and how this rule will affect you.

XII. What Are the Specific Rule Revisions EPA is Proposing To

Approve?

The State of Texas submitted the NOX RACT program

Chapter 117, ``Control of Air Pollution From Nitrogen Compounds,'' as a

number of revisions to the SIP. This rulemaking will address the

following SIP revisions:

A. On June 15, 1993, the Governor submitted a major revision that

adopted new NOX regulations, sections 117.10, 117.101-

117.601, and repealed the old regulations, Sections 117.1-117.4. Texas

submitted this revision to us to comply with the Act's 1990 amendments

requirements concerning control of nitrogen oxides emissions at major

stationary sources in ozone nonattainment areas. These rules included

emission limitations, control technologies, and a RACT averaging

program allowing facility-wide averaging with each unit having an

enforceable emission limit. The Texas Register published these

regulations on May 28, 1993 (18TR3409) and effective June 9, 1993.

B. On August 30, 1993, Texas adopted amendments to sections 117.105

and 117.205, repealed sections 117.540, 117.550, and added new sections

117.540, 117.550, and 117.580. Texas added section 117.540, phased

RACT, to allow affected sources to petition TNRCC for a later

compliance date. A source may receive the later compliance date, if it

shows there were unforseen and unavoidable delays in delivery,

construction and installation of control equipment. The new section

117.550 provided an avenue for a general permit approach for collateral

criteria pollutant increases. The new section 117.580 provided for a

NOX source cap program. Instead of unit emission rates, a

facility could comply with an overall facility mass emissions cap. The

cap was based upon the average actual activity level, using the lower

of actual or allowable for previously permitted sources; restricted how

shutdown units may be incorporated; restricted how units exempt from

NOX RACT can be incorporated; and required that the area's

offset ratio be used for exempt units brought into the plant cap. The

proposed changes were part of a series of proposed revisions to Chapter

117 being developed in response to requirements by the Act and EPA

comments. The Texas Register published the amendments to these sections

on December 3, 1993 (18TR8956) and effective December 15, 1993.

C. On May 25, 1994, Texas adopted amendments to sections 117.10,

117.103-117.121, 117.203-117.221, 117.311-117.321, 117.411-117.421,

117.510-117.560, added section 117.223, and repealed section 117.580.

The new section 117.580 provided for a NOX source cap

program. Section 117.580 (source cap) was moved to Section 117.223. A

new subsection 117.540(c) allowed the use of MERCs from scrappage for

interim compliance with Chapter 117, if the source followed the

procedures of section 117.570 (Trading). The life of these vehicle

scrappage MERCs was three years. The Texas Register published the

adopted revisions on June 10, 1994 (19TR4523) and effective June 23,

1994.

D. On July 27, 1994, Texas adopted the new section 117.570 and

repealed the old section 117.570. The new 117.570 established a

NOX RACT trading program to provide a cost-effective

alternative method of complying with the NOX emission

specifications of this chapter. Under the new trading program, an owner

or operator may reduce the required amount of NOX emissions

by using an approved Emission Reduction Credit (ERC). The ERC may be

generated by another company in the same ozone nonattainment area.

Shutdown credits can be generated and used only by sources

participating in a source cap. The source cap provisions in section

117.223 did not allow for generation of paper credits. The Texas

Register published these changes on August 9, 1994 (19TR6223) and

effective August 23, 1994.

E. On August 31, 1994, Texas adopted amendments to sections

117.451, 117.510, 117.520, 117.530, and 117.601. The purpose of the

adopted changes was to extend the final compliance date of the Chapter

117 rule from May 31, 1995, to May 31, 1997. The Texas Register

published these revisions on September 9, 1994 (19TR7128) and effective

September 22, 1994.

F. On December 7, 1994, Texas adopted amendments to section

117.510. The amendment extends the Federal acid rain January 1, 1995

compliance date under section 117.510(2)(A), concerning certification

of continuous emissions monitoring systems for Phase II oil-fired and

Phase II gas-fired units at electric utility sources, to May 31, 1997.

The Texas Register published these revisions on December 16, 1994

(19TR10005) and effective January 2, 1995.

G. On January 10, 1996, Texas adopted amendments to sections

117.451, 117.510, 117.520, 117.530, and 117.601. The purpose of adopted

amendments was to extend the final compliance date of the Chapter 117

rule

[[Page 58015]]

from May 31, 1997, to May 31, 1999. The Texas Register published these

revisions on January 19, 1996 (21TR516) and effective February 1, 1996.

H. On July 24, 1996, Texas adopted revisions to section 117.540.

The amendments to section 117.540, regarding Phased RACT, extended

applicable dates to be consistent with the May 31, 1999 final

compliance date. This revision extended the final compliance date for

an approved phased RACT request to August 31, 2000. In addition, Texas

added new subsection 117.540(c), allowing the use of clean-fueled

vehicle MERCs to meet chapter 117 requirements on an interim basis.

Texas moved the scrappage MERCs to subsection 117.540(b). The life of

the clean fuel vehicle MERCs is two years for MERCs generated prior to

September 1, 2002, and there after, the estimated remaining useful

vehicle life. The Texas Register published these revisions on August 9,

1996 (21TR7560) and effective August 16, 1996.

I. On April 30, 1997, Texas adopted the repeal of section 117.550.

Texas moved the collateral emission increases associated with

installation of NOX control measures into the permitting

requirements of Chapter 116. The EPA is acting on the repeal of section

117.550, but is not acting on Chapter 116 in this action. The Texas

Register published this adoption on May 13, 1997 (22TR4248) and

effective May 22, 1997.

J. On May 20, 1998, Texas adopted revisions to subsections 117.451,

117.510, 117.520, 117.530, 117.540, and 117.601 extending the final

NOX RACT compliance date, for certain major source nitrogen

oxides control measures in the H/G and B/PA ozone nonattainment areas,

to November 15, 1999, and made emission monitoring requirements more

flexible. Texas extended the final phased RACT compliance date to no

later than February 15, 2001. Texas revised the compliance period for

carbon mooxide emissions, in subsection 117.105(j), from a twenty-four

hour period to an hourly period for any electric utility unit which

does not use a Continuous Emission Monitoring System (CEMS) or

Presumptive Emission Monitoring System (PEMS) for CO, stating that

twenty-four hours of manual stack sampling is impractical. The Texas

Register published this adoption on June 5, 1998 (23TR5973) and

effective June 10, 1998.

XIII. What Kind of Major Source Categories Will This Rule Affect?

This rule will affect NOX emissions from the following

existing source categories in Texas: (a) Utility boilers, steam

generators, auxiliary steam boilers, and gas turbines used to generate

electricity in H/G and B/PA ozone nonattainment areas (see section

117.101 of this rule); (b) commercial, institutional, or industrial

boiler (non-utility boiler) and process heaters in H/G and B/PA with a

maximum rated capacity of 40 million Btu per hour or greater,

stationary gas turbines in H/G and B/PA with a megawatt (mW) rating of

1.0 mW or higher; (c) stationary rich burn internal combustion engines

of 150 horsepower (hp) or greater for stationary rich burn internal

combustion engines in H/G ozone nonattainment area, and stationary

internal combustion engines of 300 hp or greater for stationary

internal combustion engines in B/PA ozone nonattainment area (see

section 117.210 of this rule); and (d) nitric acid manufacturing (see

section 117.401 of this rule) and adipic acid manufacturing (see

section 117.301 of this rule) plants in H/G and B/PA ozone

nonattainment areas.

XIV. Are NOX Emissions Specifications in Texas Rule

Comparable With Federal Guidelines?

The emission specifications in pounds NOX per million

Btu (lb NOX /MMBtu) from utility boilers are in agreement

with the ``Alternative Control Techniques Document--NOX

Emissions from Utility Boilers,'' EPA-453/R-94-023, March 1994, and 57

FR 55620 (the NOX supplement).

The emission specifications in pounds NOX per million

Btu (lb NOX/MMBtu) from non-utility boilers are in agreement

with the ``Alternative Control Techniques Document--NOX

Emissions from Industrial/Commercial/Institutional Boilers,'' EPA-453/

R-94-022, March 1994.

The emission specifications in pound nitrogen dioxide

(NO2) per ton of acid produced (lb NO2/ton acid)

from Nitric and Adipic acid manufacturing plants are in agreement with

the ``Alternative Control Techniques Document--Nitric and Adipic Acid

Manufacturing Plants,'' EPA-450/3-91-026, December 1991.

The emission specifications in pounds NOX per million

Btu (lb NOX/MMBtu) from process heaters are in agreement

with the ``Alternative Control Techniques Document--NOX

Emissions from Process Heaters (Revised),'' EPA-453/R-93-034, September

1993.

The emission specifications in gram NOX per horsepower-

hour (g/hp-hr) from internal combustion engines are in agreement with

the ``Alternative Control Techniques Document--NOX Emissions

from Stationary Reciprocating Internal Combustion Engines,'' EPA-453/R-

93-032, July 1993.

The emission specifications in parts per million (ppm)

NOX from stationary gas turbines are in agreement with the

``Alternative Control Techniques Document--NOX Emissions

from Stationary Gas Turbines,'' EPA-453/R-93-007, January 1993.

The NOX emissions specifications in this rule are

comparable with our guidelines for RACT and ACT documents. A listing of

our ACT documents is in Table I of this proposed action. For a complete

review and evaluation of this rule please refer to the Technical

Support Document (TSD) developed for this proposed action. The

following table contains a summary of the type of affected sources,

their corresponding emission limit, and relevant applicability

information for these sources in the H/G and B/PA nonattainment areas.

Table II.--Summary of the Texas NOX RACT Rule for Sources in the H/G and

B/PA Non-attainment Areas

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

Additional

Source NOX limit information

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

Utility Boilers............. 0.26 lb/MMBtu....... Natural gas or a

combination of

natural gas and

waste oil, 24-hour

rolling average.

Utility Boilers............. 0.20 lb/MMBtu....... Natural gas or a

combination of

natural gas and

waste oil, 30-day

rolling average.

Utility Boilers............. 0.38 lb/MMBtu....... Coal, tangentially-

fired, 24-hour

rolling average.

Utility Boilers............. 0.43 lb/MMBtu....... Coal, wall-fired, 24-

hour rolling

average.

Utility Boilers............. 0.30 lb/MMBtu....... Fuel oil only, 24-

hour rolling

average.

Utility Boilers............. [a(0.26) + b(0.30)]/ Oil and gas mixture,

(a + b). 24-hour rolling

average, where.

a = percent natural

gas heat input.

b = percent fuel oil

heat input.

[[Page 58016]]

Stationary Gas Turbines..... 42 parts per million @ 15% O2, natural

(ppmvd). gas, 30

Mega Watt (mW)

annual electric

output

2500 hour mW

rating.

Stationary Gas Turbines..... 65 parts per million @ 15% O2, fuel oil/

(ppmvd).

Stationary Gas Turbines..... 0.20 lb/MMBtu....... Natural gas, peaking

units, annual

electric output

100 MMBtu/hr.

Non-utility Boilers......... 0.15 lb/MMBtu....... Natural gas, low

heat release,

preheated air 200

T 100

MMBtu/hr.

Non-utility Boiler.......... 0.20 lb/MMBtu....... Natural gas, low

heat release,

preheated air T 400 deg.F,

capacity 100 MMBtu/hr.

Non-utility Boilers......... 0.20 lb/MMBtu....... Natural gas, high

heat release,

without air or

preheated air T 100 MMBtu/hr.

Non-utility Boilers......... 0.24 lb/MMBtu....... Natural gas, high

heat release,

preheated air 250

T 100 MMBtu/

hr.

Non-utility Boilers......... 0.28 lb/MMBtu....... Natural gas, high

heat release,

preheated air T 500 deg.F,

capacity 100 MMBtu/hr.

Process Heaters............. 0.10 lb/MMBtu....... Natural gas,

preheated air T , 100 MMBtu/hr.

Process Heaters............. 0.13 lb/MMBtu....... Natural gas,

preheated air 200

T 100 MMBtu/

hr.

Process Heaters............. 0.18 lb/MMBtu....... Natural gas, low

heat release,

preheated air T 400 deg.F,

capacity 100 MMBtu/hr.

Process Heaters............. 0.10 lb/MMBtu....... Natural gas, firebox

T 100 MMBtu/hr.

Process Heaters............. 0.125 lb/MMBtu...... Natural gas, firebox

1400 T 100 MMBtu/hr.

Process Heaters............. 0.15 lb/MMBtu....... Natural gas, firebox

T 1800

deg.F, capacity 100 MMBtu/

hr.

Process Heaters and Non- 0.30 lb/MMBtu....... Liquid fuel,

utility Boilers. capacity 100 MMBtu/hr.

Process Heaters and Non- 0.30 lb/MMBtu....... Wood fuel, capacity

utility Boilers. 100

MMBtu/hr.

Stationary Gas Turbines..... 42 parts per million @ 15% O2, rating 10 mW.

Reciprocating Internal 2.0 gram/hp-hr...... Natural gas, rich

Combustion Engines. burn, stationary,

capacity 150 hp in H/G,

capacity 300 hp in B/PA.

Absorbers of Adipic Acid 2.5 lb/ton of acid 24-hr rolling

Production Units. produced. average.

Absorbers of Nitric Acid 2.0 lb/ton of acid 24-hr rolling

Production Units. produced. average.

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

XV. Why Is This a Conditional Approval?

The allowable NOX emission rates are calculated based on

a rolling 30-day average method (see equation 117.223(b)(1) of this

rule) and based on a maximum daily cap method (see equation

117.223(b)(2) of this rule). The definition of actual daily heat input

in 117.570(b)(2), and the definition of actual historical average of

the daily heat input in 117.223(b)(1) allow sources to add one standard

deviation to their baseline heat input or emission rate to establish

the baseline for generating emission credits. Adding one standard

deviation to the baseline could generate ``paper credits.''

We understand from Texas that this allowance was an inadvertent

oversight and they have committed in the July 19, 1999, letter to

change the rule and submit it as a SIP revision to our office by

November 15, 1999. We are conditionally approving the rule based on

their commitment.

XVI. What Are the Monitoring Requirements?

The Act requires that SIP rules be enforceable. To insure

continuous compliance, SIP rules must have monitoring requirements. The

Texas NOX Rules require either a CEMS or PEMS to ensure

compliance.

It is very important to use proper Quality Assurance/Quality

Control (QA/QC) techniques to insure the monitors read correctly. One

issue we are concerned with is that the Texas rules allow a Cylinder

Gas Audit (CGA) to replace the Relative Accuracy Test Audit (RATA) for

ongoing QA/QC of the monitors.

Our rules under 40 CFR part 60, New Source Performance Standards

for new sources prohibit the use of CGA for more than 3 consecutive

calender quarters. The CGA outlined in 40 CFR part 60, appendix F is

the test which demonstrates that the analyzer reads correctly over its

range. For example, in a CGA test you might compare the protocol gases

of 0 ppm, 50 ppm, and 100 ppm to what the analyzer reads. If the

analyzer's readings match the concentration of the corresponding

protocol gas, then the analyzer passes the CGA test. The CGA or

linearity test however, is only a means of verifying performance of the

analyzer and not a means of verifying performance of the total

monitoring system.

The RATA determines if the CEMS reads correctly during actual

operation by testing the entire system. The RATA compares the readings

of the CEMS to an independent ``reference method'' when both the CEMS

and RATA are

[[Page 58017]]

measuring the pollutant concentration in the stack simultaneously. The

reference method is designed to be as accurate as possible and verifies

that the CEMS will perform correctly in normal operation.

Texas has stated that economic reasons, i.e., higher cost of

performing a RATA vs. cost of performing a CGA and ease of scheduling a

CGA as opposed to scheduling a RATA, as the reasons for substituting a

CGA with RATA for ongoing quality assurance of CEMS. Texas believes, if

performed correctly, a CGA test provides adequate assurance of monitor

operation and that additional cost of RATA is not justified.

We are proposing to agree with Texas in substituting a CGA with

RATA for ongoing quality assurance of CEMS. As indicated at the outset

of this notice, we will be collecting comments and consider any

comments received on this subject by November 29, 1999.

Administrative Requirements

A. Executive Order (E.O.) 12866

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

regulatory action from E.O. 12866, entitled ``Regulatory Planning and

Review.''

B. Executive Orders on Federalism

Under E.O. 12875, 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, E.O. 12875 requires EPA to provide to the OMB 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, E.O. 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 proposed rule does not create a mandate on State, local, or

tribal governments. The proposed rule does not impose any enforceable

rules on any of these entities. This proposed action does not create

any new requirements but simply approves the requirements the State is

already imposing. Accordingly, the requirements of section 1(a) of E.O.

12875 do not apply to this proposed rule.

On August 4, 1999, President Clinton issued a new E.O. on

federalism, E.O. 13132, (64 FR 43255, August 10, 1999), which will take

effect on November 2, 1999. In the interim, the current E.O. 12612 (52

FR 41685, October 30, 1987), on federalism still applies. This rule

will not have a substantial direct effect on States, on the

relationship between the national government and the States, or on the

distribution of power and responsibilities among the various levels of

government, as specified in E.O. 12612. The rule affects only one

State, and does not alter the relationship or the distribution of power

and responsibilities established in the Act.

C. Executive Order 13045

Executive Order 13045, entitled ``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.

The EPA interprets E.O. 13045 as applying only to those regulatory

actions that are based on health or safety risks, such that the

analysis required under Section 5-501 of the order has the potential to

influence the regulation. This proposed rule is not subject to E.O.

13045 because it proposes to approve a State program.

D. Executive Order 13084

Under E.O. 13084, 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, E.O. 13084 requires EPA to

provide to the OMB, 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, E.O. 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 proposed rule does not significantly or uniquely affect the

communities of Indian tribal governments. This proposed action does not

involve or impose any new requirements that affect Indian tribes.

Accordingly, the requirements of section 3(b) of E.O. 13084 do not

apply to this proposed rule.

E. Regulatory Flexibility Act

The Regulatory Flexibility Act, 5 U.S.C. 600 et seq., 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 proposed 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 Act do

not create any new requirements but simply approve requirements that

the State is already imposing. Therefore, because the Federal SIP

proposes approval does not create any new requirements, I certify that

this proposed 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 Act, preparation of a

flexibility analysis would constitute Federal inquiry into the economic

reasonableness of state action. The Act forbids EPA to base its actions

concerning SIPs on such grounds. See Union Electric Co., v. U.S. EPA,

427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

If the conditional approval is converted to a disapproval under

section 110(k), based on the State's failure to meet the commitment, it

will not affect any existing State requirements applicable to small

entities. Federal disapproval of the State Submittal does not affect

State-enforceability. Moreover, EPA's disapproval of the Submittal does

not impose any new requirements. Therefore, I certify that this

proposal

[[Page 58018]]

action will not have a significant economic impact on a substantial

number of small entities because it does not remove existing

requirements nor does it substitute a new Federal requirement.

F. Unfunded Mandates

Under section 202 of the Unfunded Mandates Reform Act of 1995,

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.

The EPA has determined that the approval action proposed 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 proposes

to approve preexisting 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 proposed action.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,

Hydrocarbons, Nitrogen dioxide, Nitrogen oxides, Nonattainment, Ozone,

Reporting and recordkeeping requirements, Volatile organic compounds.

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

Dated: October 6, 1999.

Jerry Clifford,

Acting Regional Administrator, Region 6.

[FR Doc. 99-28215 Filed 10-27-99; 8:45 am]

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