Approval and Promulgation of Implementation Plans; California State Implementation Plan Revision; Sacramento Metropolitan Air Quality Management District (SMAQMD), Mojave Desert Air Quality Management District (MDAQMD), and the Ventura County Air Pollution Control District (VCAPCD) as Revisions to the California State Implementation Plan (SIP)

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 164-0112a; FRL-6324-8]

Approval and Promulgation of Implementation Plans; California

State Implementation Plan Revision; Sacramento Metropolitan Air Quality

Management District (SMAQMD), Mojave Desert Air Quality Management

District (MDAQMD), and the Ventura County Air Pollution Control

District (VCAPCD) as Revisions to the California State Implementation

Plan (SIP)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rules.

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

California State Implementation Plan (SIP). The revisions concern rules

from Sacramento Metropolitan Air Quality Management District (SMAQMD),

Mojave Desert Air Quality Management District (MDAQMD), and the Ventura

County Air Pollution Control District (VCAPCD) as revisions to the

California State Implementation Plan (SIP). SMAQMD's Rule 414 controls

emissions of oxides of nitrogen from natural gas-fired water heaters;

MDAQMD's Rule 1157 controls emissions from boilers and process heaters;

and VCAPCD's Rule 74.16 controls emissions of oxides of nitrogen from

oilfield drilling operations. This approval action will incorporate

these rules into the Federally approved SIP. The intended effect of

approving of these rules is to regulate emissions of oxides of nitrogen

(NOX) in accordance with the requirements of the Clean Air

Act, as amended in 1990 (CAA or the Act). Thus, EPA is finalizing the

approval of these revisions into the California SIP under provisions of

the CAA regarding EPA actions on SIP submittals, SIPs for national

primary and secondary ambient air quality standards (NAAQS), and plan

requirements for nonattainment areas.

DATES: These rules are effective on June 21, 1999 without further

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

receives such comments, then it will publish a timely withdrawal in the

Federal Register informing the public that these rules 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 of each rule are available for public inspection at EPA's Region

IX office during normal business hours. Copies of the submitted rules

are also available for inspection at the following locations:

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

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

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.

Sacramento Metropolitan Air Quality Management District (SMAQMD), 8475

Jackson Rd., Suite 200, Sacramento, CA 95826-3904.

Mojave Desert Air Quality Management District, 21865 E. Copley Drive,

Diamond Bar, CA 91765-4182.

Ventura County Air Pollution Control District (VCAPCD), 800 South

Victoria Avenue, Ventura, CA 93009.

FOR FURTHER INFORMATION CONTACT: Ed Addison, Rulemaking Office, AIR-4,

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

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

1185.

[[Page 19278]]

SUPPLEMENTARY INFORMATION:

I. Applicability

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

Rule 414, Natural Gas-fired Water Heaters; MDAQMD's Rule 1157, Boilers

and Process Heaters; and VCAPCD's Rule 74.16, Oilfield Drilling

Operations. SMAQMD's Rule 414 was submitted by the State of California

to EPA on March 10, 1998, MDAQMD's Rule 1157 on August 1, 1997 and

VCAPCD Rule 74.16 on April 5, 1991.

II. Background

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. The air quality planning requirements for the reduction of

NOX emissions through reasonably available control

technology (RACT) are set out in section 182(f) of the Clean Air Act.

On November 25, 1992, EPA published a proposed rule 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) which describes and

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

The November 25, 1992, action should be referred to for further

information on the NOX requirements and is incorporated into

this document by reference.

Section 182(f) of the Clean Air Act requires States to apply the

same requirements to major stationary sources of NOX

(``major'' as defined in section 302 and sections 182(c), (d), and (e))

as are applied to major stationary sources of volatile organic

compounds (VOCs), in moderate or above ozone nonattainment areas.

Sacramento Metropolitan Air Quality Management District (SMAQMD),

Mojave Desert Air Quality Management District (MDAQMD), and the Ventura

County Air Pollution Control District (VCAPCD) are classified as

serious or above;1 therefore these areas are subject to the

RACT requirements of section 182(b)(2) cited below and the November 15,

1992 deadline.

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\1\ MDAQMD AND VCAPCD areas 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 55 FR 56694 (November 6, 1991). The Sacramento Metro Area was

reclassified from serious to severe on June 1, 1995. See 60 FR 20237

(April 25, 1995).

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

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

by a pre-enactment control technologies guidelines (CTG) document or a

post-enactment CTG document) by November 15, 1992. There were no

NOX CTGs issued before enactment and EPA has not issued a

CTG document for any NOX sources since enactment of the CAA.

The RACT rules covering NOX sources and submitted as SIP

revisions are expected to require final installation of the actual

NOX controls as expeditiously as practicable, but no later

than May 31, 1995.

This document addresses EPA's direct final action for SMAQMD's Rule

414, Natural Gas-fired Water Heaters; MDAQMD's Rule 1157, Boilers and

Process Heaters; and VCAPCD's Rule 74.16, Oilfield Drilling Operations.

The State of California submitted many revised RACT rules to EPA

for incorporation into its SIP on March 10, 1998, including SMAQMD's

Rule 414. MDAQMD's Rule 1157 was submitted on August 1, 1997 and

VCAPCD's Rule 74.16 on April 5, 1991. Rule 414 was found to be complete

on May 21, 1998, Rule 1157 on September 30, 1997, and Rule 74.16 on May

21, 1991; pursuant to EPA's completeness criteria that are set forth in

40 CFR Part 51, Appendix V 2 and are being finalized for

approval into the SIP.

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\2\ 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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NOX emissions contribute to the production of ground

level ozone and smog. SMAQMD's Rule 414 controls emissions of oxides of

nitrogen from natural gas-fired water heaters; MDAQMD's Rule 1157

controls emissions from boilers and process heaters; and VCAPCD's Rule

74.16 controls emissions of oxides of nitrogen from oilfield drilling

operations. These rules were originally adopted as part of Districts'

efforts to achieve the National Ambient Air Quality Standard (NAAQS)

for ozone, and in response to the CAA requirements cited above. The

following is EPA's evaluation and final action for these rules.

III. EPA Evaluation and Proposed Action

In determining the approvability of a NOX 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 NOX

Supplement (57 FR 55620) and various other EPA policy guidance

documents.3 Among those provisions is the requirement that a

NOX rule must, at a minimum, provide for the implementation

of RACT for stationary sources of NOX emissions.

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\3\ 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 Deviation,

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).

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For the purposes of assisting State and local agencies in

developing NOX RACT rules, EPA prepared the NOX

Supplement to the General Preamble. In the NOX Supplement,

EPA provides preliminary guidance on how RACT will be determined for

stationary sources of NOX emissions. While most of the

guidance issued by EPA on what constitutes RACT for stationary sources

has been directed towards application for VOC sources, much of the

guidance is also applicable to RACT for stationary sources of

NOX (see section 4.5 of the NOX Supplement). In

addition, pursuant to section 183(c), EPA is issuing alternative

control technique documents (ACTs), that identify alternative controls

for all categories of stationary sources of NOX. The ACT

documents will provide information on control technology for stationary

sources that emit or have the potential to emit 25 tons per year or

more of NOX. However, the ACTs will not establish a

presumptive norm for what is considered RACT for stationary sources of

NOX. In general, the guidance documents cited above, as well

as other relevant and applicable guidance documents, have been set

forth to ensure that submitted NOX RACT rules meet Federal

RACT requirements and are fully enforceable and strengthen or maintain

the SIP.

The California Air Resources Board (CARB) has developed guidance

documents determining Reasonably Available Control Technology and Best

Available Retrofit Control Technology. EPA has used CARB's guidance

documents in evaluating Sacramento Rule MDAQMD 1157, Emissions from

Boilers and Process Heaters; and VCAPCD's Rule 74.16, Oilfield Drilling

Operations for consistency with the CAA's RACT requirements.

There is currently no version of SMAQMD's Rule 414, Natural Gas-

fired Water Heaters, in the SIP. SMAQMD's Rule 414, Natural Gas-fired

Water Heaters, establishes nitrogen oxide emissions for natural gas-

fired water heaters with rated heat input of less than 75,000 Btu/hr.

[[Page 19279]]

There is currently no version of MDAQMD's Rule 1157, Boilers and

Process Heaters, in the SIP. MDAQMD's Rule 1157, Boilers and Process

Heaters, establishes RACT emission requirements for oxides of nitrogen

(NOX) and carbon monoxide (CO) emissions for all new and

existing institutional and industrial boilers, steam generators and

process heaters with rated heat inputs of greater than or equal to five

million Btu per hour (MMBtu/hr), located within the Federal Ozone Non-

attainment Area of San Bernardino County. The Rule also establishes

Best Available Retrofit Control Technologies (BARCT) emission

requirements for any existing unit currently permitted to emit more

than five (5) tons per day, or more than 250 tons per year of oxides of

nitrogen (NOX).

There is currently no version of VCAPCD's Rule 74.16, Oilfield

Drilling Operations, in the SIP. VCAPCD's Rule 74.16, Oilfield Drilling

Operations, establishes nitrogen oxide emissions limits for stationary

internal combustion engines of 50 HP and larger oilfield drilling

operations. The rule will require drilling rigs to be electrically

powered unless the installation of utility electricity is not cost

effective based upon Best Available Control Technology (BACT)

Guidelines.

The submitted rules include the following provisions:

General provisions including applicability, exemptions,

and definitions.

Exhaust emissions standards for oxides of nitrogen

(NOX).

Compliance and monitoring requirements including

compliance schedule, reporting requirements, monitoring and record

keeping, and test methods.

Rules submitted to EPA for approval as revisions to the SIP must be

fully enforceable, must maintain or strengthen the SIP and must conform

with EPA policy in order to be approved by EPA. When reviewing rules

for SIP approvability, EPA evaluates enforceability elements such as

test methods, record keeping, and compliance testing in addition to

RACT guidance regarding emission limits. SMAQMD's Rule 414, MDAQMD's

Rule 1157 and VCAPCD's Rule 74.16 strengthen the SIP through the

addition of enforceable measures such as record keeping, test methods,

definitions, and more stringent and achievable emissions limits.

Incorporation of the amended Rules, SMAQMD's Rule 414, MDAQMD's Rule

1157 and VCAPCD's Rule 74.16, into the SIP would decrease the

NOX emissions allowed by the SIP.

In evaluating the rules, EPA must also determine whether the

section 182(b) requirement for RACT implementation by May 31, 1995 is

met. Under certain circumstances, the determination of what constitutes

RACT can include consideration of advanced control technologies such as

CARB BARCT requirements. The submitted rules, SMAQMD Rule 414, MDAQMD

Rule 1157 and VCAPCD Rule 74.16, conform with the CARB Determination of

Reasonably Available Control Technology (RACT) and Best Available

Retrofit Control Technology (BARCT) for Control of Oxides of Nitrogen

and they conform with Section 182(b).

A detailed discussion of the sources controlled, the controls

required, and justification for why these controls represent RACT can

be found in the Technical Support Documents (TSDs) for SMAQMD's Rule

414, MDAQMD's Rule 1157 and VCAPCD's Rule 74.16, dated November 6, 1998

which are available from the U.S. EPA Region IX office.

EPA has evaluated the submitted rules and has determined them

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

SMAQMD's Rule 414, Emissions of Oxides of Nitrogen from Natural Gas-

fired Water Heaters; MDAQMD's Rule 1157, Boilers and Process Heaters;

and VCAPCD's Rule 74.16, Oilfield Drilling Operations are being

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

of section 110(a), section 182(b)(2), section 182(f) and the

NOX Supplement to the General Preamble.

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 June 21, 1999

without further notice unless the Agency receives adverse comments by

May 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 on this rule. 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 will be effective on June 21, 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 rules do not create a mandate on State, local or tribal

governments. The rules do not impose any enforceable duties on these

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

do not apply to these rules.

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 rules on

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

potentially effective and reasonably feasible alternatives considered

by the Agency. These rules do not subject to E.O. 13045 because

[[Page 19280]]

they do 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

rules do 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 these rules.

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. These final rules 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 these rules 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 rules in the Federal Register. These rules are

not ``major'' rules 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 June 21, 1999. Filing a

petition for reconsideration by the Administrator of these final rules

does not affect the finality of these rules 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 rules 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, Oxides of

nitrogen Ozone, Reporting and record keeping requirements, 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: April 1, 1999.

Felicia Marcus,

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)(183)(i)(B)(4), (248)(i)(D), and (254)(i)(I), to read as follows:

Sec. 52.220 Identification of plan.

* * * * *

(c) * * *

(183) * * *

(i) * * *

(B) * * *

(4) Rule 74.16, adopted January 8, 1991.

* * * * *

(248) * * *

(i) * * *

(D) Mojave Desert Air Quality Management District.

(1) Rule 1157, amended May 19, 1997.

* * * * *

(254) * * *

(i) * * *

(I) Sacramento Metropolitan Air Quality Management District.

[[Page 19281]]

(1) Rule 414, adopted August 1, 1996.

* * * * *

[FR Doc. 99-9712 Filed 4-19-99; 8:45 am]

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