[Federal Register Volume 64, Number 160 (Thursday, August 19, 1999)]
[Rules and Regulations]
[Pages 45175-45178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-21162]


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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

[[Page 45178]]

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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