[Federal Register Volume 81, Number 123 (Monday, June 27, 2016)]
[Rules and Regulations]
[Pages 41447-41450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15038]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R05-OAR-2015-0366; FRL-9948-21-Region 5]
Air Plan Approval; Minnesota; Sulfur Dioxide
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
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SUMMARY: The Environmental Protection Agency (EPA) is approving a
revision to the Minnesota sulfur dioxide (SO2) State
Implementation Plan (SIP) for the Flint Hills Resources, LLC Pine Bend
Refinery (FHR) as submitted on May 1, 2015. The revision will
consolidate existing permanent and enforceable SO2 SIP
conditions into the facility's joint Title I/Title V SIP document. This
action highlights process modifications necessary to meet EPA's Tier 3
gasoline sulfur standards; a comprehensive monitoring strategy to
better quantify SO2 emissions from fuel gas-fired emission
units; a new restrictive flaring procedure for refinery process units,
and other updates and administrative changes. This revision results in
a modeled reduction in SO2 emissions from FHR and modeled
SO2 ambient air concentrations less than half of the
national ambient air quality standards (NAAQS).
DATES: This direct final rule will be effective August 26, 2016, unless
EPA receives adverse comments by July 27, 2016. If adverse comments are
received, EPA will publish a timely withdrawal of the direct final rule
in the Federal Register informing the public that the rule will not
take effect.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2015-0366 at http://www.regulations.gov or via email to
[email protected]. For comments submitted at Regulations.gov,
follow the online instructions for submitting comments. Once submitted,
comments cannot be edited or removed from Regulations.gov. For either
manner of submission, EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e. on the Web, cloud, or other file sharing
system). For additional submission methods, please contact the person
identified in the ``For Further Information Contact'' section. For the
full EPA public comment policy, information about CBI or multimedia
submissions, and general guidance on making effective comments, please
visit http://www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Anthony Maietta, Environmental
Protection Specialist, Control Strategies Section, Air Programs Branch
(AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson
Boulevard, Chicago, Illinois 60604, (312) 353-8777,
[email protected].
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA. This supplementary information
section is arranged as follows:
I. What is the background for this action?
A. EPA's Tier 3 Gasoline Standards
B. Administrative Order and Title I SO2 SIP
Conditions
II. What is EPA's analysis of the SIP revision?
A. EPA's Tier 3 Gasoline Standards
B. Administrative Order and Title I SO2 SIP
Conditions
C. Miscellaneous Revisions
III. What action is EPA taking?
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews
I. What is the background for this action?
A. EPA's Tier 3 Gasoline Standards
On April 28, 2014 (79 FR 23414 and amended on April 22, 2016, at 81
FR 23641), EPA established more stringent vehicle emissions standards
to reduce the sulfur content of gasoline beginning January 1, 2017. The
Tier 3 gasoline fuel standards (Tier 3 standards) will reduce both
tailpipe and evaporative emissions from both new and existing passenger
cars, light-duty trucks, medium-duty passenger vehicles, and some
heavy-duty vehicles. This will result in significant reductions in
pollutants such as ozone, particulate matter, and air toxics across the
country and help state and local agencies in their efforts to attain
and maintain health-based NAAQS.
In order to meet the Tier 3 standards, FHR plans to increase its
use of hydrotreating to remove sulfur from intermediate fuel products.
The increased hydrotreating will also increase the removal of nitrogen.
To address the increased removal of nitrogen and sulfur, FHR proposes
to install a process to convert gas containing sulfur and nitrogen into
a salable, non-hazardous, aqueous liquid fertilizer: ammonium
thiosulfate (ATS).
B. Administrative Order and Title I SO2 SIP Conditions
Minnesota also requested EPA's approval of the transfer of Title I
SO2 SIP conditions from an Administrative Order (Order) into
the FHR Title I/Title V SO2 SIP document. Until 1990,
Minnesota Pollution Control Agency (MPCA) had placed SIP control
measures in permits issued to culpable sources. In 1990, EPA determined
that limits in state-issued permits were not federally enforceable
because the permits expired. Subsequently, MPCA then issued permanent
Orders to affected sources in nonattainment areas from 1991 to February
of 1996.
In 1995, EPA approved into the Minnesota SIP Minnesota's
consolidated permitting regulations. (60 FR 21447, May 2, 1995). The
consolidated permitting regulations included the term ``Title I
condition'' which was written, in part, to satisfy EPA requirements
that SIP control measures remain permanent. A ``Title I condition'' is
defined, in part, as ``any condition based on source-specific
determination of ambient impacts imposed for the purpose of achieving
or maintaining attainment with a national ambient air
[[Page 41448]]
quality standards and which was part of a [SIP] approved by the EPA or
submitted to the EPA pending approval under section 110 of the act . .
. .'' MINN. R. 7007.1011 (2013). The regulations also state that
``Title I conditions and the permittee's obligation to comply with
them, shall not expire, regardless of the expiration of the other
conditions of the permit.'' Further, ``any title I condition shall
remain in effect without regard to permit expiration or reissuance, and
shall be restated in the reissued permit.'' MINN. R. 7007.0450 (2007).
Minnesota has initiated using the joint Title I/Title V document as
the enforceable document for imposing emission limitations and
compliance requirements in SIPs. The SIP requirements in the joint
Title I/Title V document submitted by MPCA are cited as ``Title I
conditions,'' therefore ensuring that SIP requirements remain permanent
and enforceable. EPA reviewed the state's procedure for using joint
Title I/Title V documents to implement site-specific SIP requirements
and found it to be acceptable under both Title I and Title V of the
Clean Air Act (CAA) (July 3, 1997 letter from David Kee, EPA, to
Michael J. Sandusky, MPCA).
FHR's SIP obligations are currently contained in an Order that was
adopted by MPCA on August 29, 2011, and approved by EPA on May 15, 2013
(78 FR 28501) (FHR Order). On May 1, 2015, MPCA submitted revisions to
the Minnesota SO2 SIP for FHR. MPCA requested that EPA
approve into the SIP, the Title I SO2 SIP conditions
contained in the joint Title I/Title V document while removing the FHR
Order from the SIP. In addition to incorporating FHR's current
SO2 SIP obligations into the facility's joint Title I/Title
V document, MPCA requested approval of additional changes to the
Minnesota SO2 SIP.
II. What is EPA's analysis of the SIP revision?
A. EPA's Tier 3 Gasoline Standards
Title I SO2 SIP conditions have been created for the ATS
process unit, which include hourly and annual emissions limits, as well
as monitoring, record keeping, and reporting requirements for the ATS
process unit. The ATS unit will take H2S and ammonia from
sour water streams and convert them into ATS, which will then be sold
as fertilizer. The unit is being constructed in conjunction with FHR's
plan to meet EPA's Tier 3 fuel standards. The ATS unit will allow FHR
to utilize the increased amounts of sulfur and nitrogen removed from
intermediate fuel products by gas-oil hydrotreaters by combining them
into ATS.
Review of the technical support document and computer modeling
reports submitted by MPCA shows that installation of the ATS unit in
conjunction with the other updates to the facility will not cause an
exceedance of the modeled SO2 standards. The data show that
SO2 emissions will be between 6 and 8 percent less than
emissions from the facility modeled under the last SIP revision. Using
AERMOD and including FHR and nearby sources, the modeled ambient air
concentrations of SO2 for the 3-hour, 24-hour, and annual
SO2 NAAQS for these revisions are at 41.5%, 48.5%, and 27.5%
of the standards, respectively. Therefore, the addition of Title I
SO2 SIP requirements for the ATS unit is acceptable and the
revisions to the FHR SIP are approvable.
B. Administrative Order and Title I SO2 SIP Conditions
On March 17, 2015, MPCA amended the operating permit for FHR (Air
Emissions Permit No. 03700011-012). This joint Title I/Title V document
incorporates, as Title I SO2 SIP conditions, FHR's SIP
obligations which had previously been listed in the FHR Order. This is
approvable because those conditions have already been approved into
Minnesota's SO2 SIP and are merely being moved into the FHR
joint Title I/Title V document to provide the source with a single
enforceable document. Upon the effective date of EPA approval of the
Title I SO2 SIP conditions into the FHR SIP, the Order will
be revoked as stipulated in a May 1, 2015, Administrative Order from
MPCA. As part of this action, EPA is approving the revocation of the
Order from the Minnesota SO2 SIP.
C. Miscellaneous Revisions
Finally, Minnesota is requesting that EPA approve several changes
to the existing SIP for FHR. These changes include:
--Changing ``company'' to ``permittee'' which is acceptable because
moving the pertinent Title I SO2 SIP conditions from the
Order to the FHR permit means the term to describe FHR would change to
reflect the move.
--Amendments to allow the use of ultra-low sulfur diesel, which can be
considered fuel oil, to be combusted at FHR. This revision clarifies
the rule, and is acceptable.
--Removing operating hour limits on diesel powered units because, with
the availability of ultra-low sulfur diesel, these units qualify as
insignificant sources of SO2. Therefore the operating hours
limits on these units are no longer required. This revision is
approvable.
--Inclusion of the phrase ``in conjunction with oxidation gases from
OSWTP equipment'' to indicate that the oil separation and waste
treatment plant gases, which are allowed to be combusted from one
oxidizer at a time, are able to be combusted along with natural gas.
This amendment merely clarifies the requirement, and is acceptable.
--Changing `continuous monitoring system (CMS)' to `continuous emission
monitoring system (CEMS)', and by adding a total sulfur CEMS on the 45-
unit mix drum as an operating condition. The revision and addition are
approvable because they clarify the rule language, and the addition of
the CEMS on the 45-unit mix drum helps FHR more accurately quantify the
sulfur emissions from the unit.
--Inclusion of more restrictive language that indicates the flare
system is to be used only for unplanned and infrequent events resulting
from malfunctions. The amended language also excludes flaring gases
from normal operation, including gases from scheduled startups and
shutdowns of refinery process units. This amendment is acceptable since
it clarifies the condition's applicability and creates more stringent
conditions for flare use at FHR.
--Removing the Merox process incinerator from the Title I
SO2 SIP conditions because the Merox process incinerator was
decommissioned and removed. The removal of the unit was approved by EPA
in a prior rulemaking (78 FR 28501). The conditions were also amended
to add the new ATS unit, which will be discussed in more detail later
in this document. These revisions are acceptable because SO2
emissions will be reduced at the facility as a result of these changes.
--Replacing the phrase ``total reduced sulfur CMS'' with ``reduced
sulfur and total sulfur CEMS,'' reflecting the more comprehensive fuel
gas sulfur continuous emission monitoring system installed at the
facility. This revision is approvable.
--Replacing the acronym ``CMS'' with ``CEMS,'' which is approvable
because it clarifies that the acronym stands for a continuous emission
monitoring system. Continuous monitoring requirements were also amended
to include language to show that FHR will maintain a CEMS for the 45-
unit mix drum that will
[[Page 41449]]
measure total sulfur from the mix drum fuel gas stream, and that the
CEMS will provide a continuous record of measurement in parts per
million. This revision is approvable because it ensures that the 45-
unit mix drum will be comprehensively monitored for sulfur emissions.
Lastly, this section was revised to clarify the list of fuels that
would require contract guarantees for H2S and heat content
for compliance demonstration purposes, which is approvable because it
clarifies the requirement for the facility.
--Updating the language of the quarterly reporting requirements to
reflect current emissions monitoring and report submittal requirements.
This revision is acceptable because it clarifies what FHR must submit
in its reporting to MPCA.
--Throughout the joint document, the term ``the Company'' has been
replaced with ``the Permittee'' which is acceptable because it reflects
the location of FHR's Title I SO2 SIP conditions within the
joint document instead of within Orders.
--In the portions of the joint document dealing with continuous
monitoring requirements and recordkeeping requirements, references to
the term ``hydrogen sulfide'' have been replaced with ``sulfur
content'' to reflect the more comprehensive monitoring strategy
approved for FHR.
--Requirements for fuel gas SO2 emissions from the 41- and
45-unit mix drums have been made Title I SO2 SIP conditions,
including use of SO2 CEMS monitoring systems and associated
recordkeeping requirements. The revisions are acceptable because the
new CEMS monitor sulfur emissions more comprehensively, providing a
more accurate analysis of FHR's SO2 emissions from the 41-
and 45-unit mix drums. In a related revision, continuous monitoring
requirements for H2S in SIP emission units have been revised
to become total reduced sulfur, which is approvable because the new
monitors more comprehensively indicate SO2 emissions from
these units. It should be noted that H2S monitoring required
for new source performance standards (NSPS) for petroleum refineries
are not affected by these revisions as H2S monitoring will
continue for these units in addition to the comprehensive sulfur
monitoring described above.
--Removal of H2S CMS requirements from FHR's Title I
SO2 SIP, because the new SO2 and total sulfur
CEMS supersede the need for H2S CMSs for the facility and
because the H2S monitor requirements will remain as non-SIP
level requirements in order to meet the NSPS for petroleum refineries.
Therefore, this revision is approvable.
--The H2S 3-hour rolling average limit for the 45H6 stack
has been made a Title I SO2 SIP condition, which is
approvable because the condition becomes permanent and federally
enforceable.
--Language has been removed from the SO2 limits for the #1
Vac Heater, #1 Crude Heater atmospheric distillation unit, and #1 and
#2 Coker Heaters that had indicated the limits were effective as of
EPA's approval of the ninth revision to the Order (which EPA approved
on May 15, 2013 at 78 FR 28501). Because the revision simply removes
language that is no longer necessary, the revision is acceptable.
--The recordkeeping requirements for start and stop times for emissions
units 032, 033, 037, and 038 (Steam/Air Heater Decoking units 21H-1,
21H-2, 23H-1, and 23H-2, respectively) have been made Title I
SO2 SIP conditions. This is acceptable because it allows
recordkeeping requirements for these units to be federally enforceable.
--The diesel fuel certification recordkeeping requirement for the plan
air compressor diesel engine has been made a Title I SO2 SIP
condition, and a typo was corrected in the requirement. These revisions
are approvable because it allows federal enforceability of
recordkeeping to show FHR uses ultra-low sulfur diesel fuel in the
plant air compressor diesel engine.
--An amendment to the requirements for the Oil Separation and Waste
Treatment Plant to streamline the requirements for burning natural gas
in conjunction with oxidation of gases from the treatment plant
equipment. The revision does not decrease the stringency of the
requirements but makes the requirements easier to understand, and is
therefore acceptable.
--Requirements for Boiler B-10, including Title I SO2 SIP
conditions, have been removed from the FHR SIP because the boiler was
never installed. This revision is acceptable because the source that
the regulation is meant to address does not exist and will not exist.
III. What action is EPA taking?
EPA is approving a revision to the SIP for FHR, as submitted by
MPCA on May 1, 2015. The revision will consolidate existing permanent
and enforceable SO2 SIP conditions into the facility's joint
Title I/Title V SIP document and simultaneously remove the existing FHR
Order from the SIP. We are publishing this action without prior
proposal because we view this as a noncontroversial amendment and
anticipate no adverse comments. However, in the proposed rules section
of this Federal Register publication, we are publishing a separate
document that will serve as the proposal to approve the state plan if
relevant adverse written comments are filed. This rule will be
effective August 26, 2016 without further notice unless we receive
relevant adverse written comments by July 27, 2016. If we receive such
comments, we will withdraw this action before the effective date by
publishing a subsequent document that will withdraw the final action.
All public comments received will then be addressed in a subsequent
final rule based on the proposed action. EPA will not institute a
second comment period. Any parties interested in commenting on this
action should do so at this time. Please note that if EPA receives
adverse comment on an amendment, paragraph, or section of this rule and
if that provision may be severed from the remainder of the rule, EPA
may adopt as final those provisions of the rule that are not the
subject of an adverse comment. If we do not receive any comments, this
action will be effective August 26, 2016.
IV. Incorporation by Reference
In this rule, EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, EPA is finalizing the incorporation by reference of the Minnesota
Regulations described in the amendments to 40 CFR part 52 set forth
below. EPA has made, and will continue to make, these documents
generally available electronically through www.regulations.gov and/or
in hard copy at the appropriate EPA office (see the FOR FURTHER
INFORMATION CONTACT section of this preamble for more information).
V. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action
[[Page 41450]]
merely approves state law as meeting federal requirements and does not
impose additional requirements beyond those imposed by state law. For
that reason, this action:
Is not a significant regulatory action subject to review
by the Office of Management and Budget under Executive Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
In addition, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian tribe has
demonstrated that a tribe has jurisdiction. In those areas of Indian
country, the rule does not have tribal implications and will not impose
substantial direct costs on tribal governments or preempt tribal law as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
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 action 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. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by August 26, 2016. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action 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. Parties with objections to this direct final rule are
encouraged to file a comment in response to the parallel notice of
proposed rulemaking for this action published in the proposed rules
section of this Federal Register, rather than file an immediate
petition for judicial review of this direct final rule, so that EPA can
withdraw this direct final rule and address the comment in the proposed
rulemaking. 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, Incorporation by
reference, Intergovernmental relations, Reporting and recordkeeping
requirements, Sulfur oxides.
Dated: June 21, 2016.
Robert Kaplan,
Acting Regional Administrator, Region 5.
40 CFR part 52 is amended as follows:
PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
0
2. In Sec. 52.1220, the table in paragraph (d) is amended by revising
the entry for ``Flint Hills Resources Pine Bend, LLC'' to read as
follows:
Sec. 52.1220 Identification of plan.
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(d) * * *
EPA-Approved Minnesota Source-Specific Permits
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State
Name of source Permit No. effective EPA approval date Comments
date
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* * * * * * *
Flint Hills Resources Pine Bend, 03700011-012 03/17/15 06/27/16, [Insert Only conditions cited
LLC. Federal Register as ``Title I
citation]. Condition: 40 CFR
Section 50.4,
SO[ihel2] SIP; Title
I Condition: 40 CFR
pt. 52, subp. Y''.
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[FR Doc. 2016-15038 Filed 6-24-16; 8:45 am]
BILLING CODE 6560-50-P