[Federal Register Volume 61, Number 28 (Friday, February 9, 1996)]
[Rules and Regulations]
[Pages 4892-4895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-2822]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 79-4-7252a; FRL-5398-8]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, Monterey Bay Unified Air Pollution 
Control District, San Diego County Air Pollution Control District, and 
Santa Barbara County Air Pollution Control 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 following districts: Monterey Bay Unified Air Pollution Control 
District (MBUAPCD), San Diego County Air Pollution Control District 
(SDCAPCD), and Santa Barbara County Air Pollution Control District 
(SBCAPCD). This approval action will incorporate these rules into the 
federally approved SIP. The intended effect of approving these rules is 
to regulate emissions of volatile organic compounds (VOCs) in 
accordance with the requirements of the Clean Air Act, as amended in 
1990 (CAA or the Act). The revised rules control VOC emissions from 
gasoline storage and transfer and bakery ovens. Thus, EPA is finalizing 
the approval of these revisions into the California SIP under 
provisions of the CAA regarding EPA action on SIP submittals, SIPs for 
national primary and secondary ambient air quality standards and plan 
requirements for nonattainment areas.

DATES: This action is effective on April 9, 1996 unless adverse or 
critical comments are received by March 11, 1996. If the effective date 
is delayed, a timely notice will be published in the Federal Register.

ADDRESSES: Copies of the rule revisions and EPA's evaluation report for 
each rule are available for public inspection at EPA's Region IX office 
during normal business hours. Copies of the submitted rule revisions 
are available for inspection at the following locations:

Rulemaking Section (A-5-3), Air and Toxics 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 92123-1095.
Monterey Bay Unified Air Pollution Control District, 24580 Silver Cloud 
Court, Monterey, CA 93940.
Santa Barbara County Air Pollution Control District, 26 Castilian 
Drive, B-23, Goleta, CA 93117.
San Diego County Air Pollution Control District, 9150 Chesapeake Drive, 
CA 92123.

FOR FURTHER INFORMATION CONTACT: Christine Vineyard, Rulemaking Section 
(A-5-3), Air and Toxics Division, U.S. Environmental Protection Agency, 
Region IX, 75 Hawthorne Street, San Francisco, CA 94105, Telephone: 
(415) 744-1197.

SUPPLEMENTARY INFORMATION:

Applicability

    The rules being approved into the California SIP include: Monterey 
Bay Unified Air Pollution Control District (MBUAPCD) Rule 1002, 
Transfer of Gasoline into Vehicle Fuel Tanks; San Diego County Air 
Pollution Control District (SDCAPCD) Rule 67.24, Bakery Ovens; and 
Santa Barbara County Air Pollution Control District (SBCAPCD) Rule 316, 
Storage and Transfer of Gasoline. These rules were submitted by the 
California Air Resources Board to EPA on December 22, 1994, June 16, 
1995 and March 29, 1994, respectively.

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 Monterey Bay, San 
Diego County, and 

[[Page 4893]]
Santa Barbara County areas. 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. In amended 
section 182(b)(2)(C) of the CAA, Congress statutorily required 
nonattainment areas to submit RACT rules for all major sources of VOCs 
by November 15, 1992 (the RACT ``catch-up'' requirement).
    Section 182(a)(2) 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 Monterey Bay and Santa Barbara County areas 
are classified as moderate and the San Diego County area is classified 
as serious.2 The Monterey Bay and Santa Barbara County areas were 
subject to the RACT fix-up requirement and the May 15, 1991 deadline. 
The San Diego County Area was subject to the RACT catch-up requirements 
and the November 15, 1992 deadline.

    \1\ Among other things, the pre-amendment guidance consists of 
those portions of the proposed Post-1987 ozone and carbon monoxide 
policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues 
Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, 
Clarification to Appendix D of November 24, 1987 Federal Register 
Notice'' (Blue Book) (notice of availability was published in the 
Federal Register on May 25, 1988); and the existing control 
technique guidelines (CTGs).
    \2\  Monterey Bay and Santa Barbara County areas have 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 San 
Diego area was reclassified from severe to serious on February 21, 
1995. See 60 FR 3771 (January 19, 1995)
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    The State of California submitted many revised RACT rules for 
incorporation into its SIP on March 29, 1994, December 22, 1994, and 
June 16, 1995, including the rules being acted on in this document. 
This document addresses EPA's direct-final action for MBUAPCD Rule 
1002, Transfer of Gasoline into Vehicle Fuel Tanks; SDCAPCD Rule 67.24, 
Bakery Ovens, and SBCAPCD Rule 316, Storage and Transfer of Gasoline. 
MBUAPCD adopted Rule 1002 on November 23, 1994; SDCAPCD adopted Rule 
67.24 on March 7, 1995; and SBCAPCD adopted Rule 316 on December 14, 
1994. These submitted rules were found to be complete on January 3, 
1995, June 23, 1995, and June 3, 1994, respectively, pursuant to EPA's 
completeness criteria that are set forth in 40 CFR part 51, appendix V 
3 and is being finalized for approval into the SIP.

    \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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    MBUAPCD Rule 1002 controls emissions from gasoline dispensing 
facilities; SDCAPCD Rule 67.24 controls emissions from bakery ovens; 
and SBCAPCD Rule 316 controls emissions from the storage and transfer 
of gasoline. VOCs contribute to the production of ground level ozone 
and smog. This rule was originally adopted as part of MBUAPCD, SDCAPCD, 
and SBCAPCD's efforts to achieve the National Ambient Air Quality 
Standard (NAAQS) for ozone and in response to EPA's SIP-Call and the 
section 182(a)(2)(A) CAA requirement. The following is EPA's evaluation 
and final action for this rule.

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'' and ``catch-up'' their RACT rules. See section 182(a)(2)(A) 
and section (b)(2)(C). For some categories such as bakery ovens or 
storage, transfer and dispensing of gasoline, EPA did not publish a 
CTG. In such cases, the District may determine what controls are 
required by reviewing the operation of facilities subject to the 
regulation and evaluating regulations for similar sources in other 
areas. Additional guidance for SDCAPCD Rule 67.25, Bakery Ovens, is 
found in the document entitled, ``Alternative Control Technology 
Documents for Bakery Oven Emissions,'' EPA 453/R-92-017. 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.
    MBUAPCD submitted Rule 1002, Transfer of Gasoline into Vehicle Fuel 
Tanks, is a new rule to be included in the SIP, although it has been 
enforced in the District since 1989. Rule 1002 includes the following 
general requirements:
     All gas stations are required to install Phase II vapor 
recovery equipment.
     Gas stations with throughputs  120,000 gal./yr. 
are required to install Phase II vapor recovery equipment by 1991.
     The remaining gas stations with throughputs  
120,000 gal./yr. are required to install Phase II vapor recovery 
equipment by December 22, 1998.
    For a detailed evaluation of MBUAPCD Rule 1002, please refer to the 
technical support document (TSD) prepared on October 20, 1995.
    On December 8, 1994, EPA proposed approval of SDCAPCD Rule 67.24, 
Bakery Ovens, (59 FR 92388). After that proposal, the San Diego County 
Area was reclassified from a severe to serious ozone non-attainment 
area. The SDCAPCD asked EPA to delay final action on Rule 67.24 until 
the following administrative revisions were made to reflect this 
reclassification:
     The standards and compliance schedule sections of the rule 
do not apply to sources where the uncontrolled emissions of VOCs from 
all bakery ovens combined is less than 50 tons per calendar year.
     The emissions testing requirement and the compliance 
schedule have been deleted because the District's 

[[Page 4894]]
calculations indicate that the two largest bakeries in the county emit 
less than 50 tons of VOCs per year.
    For a detailed evaluation of SDCAPCD Rule 67.24, please refer to 
the TSD dated October 20, 1995, and the notice of proposed rulemaking 
dated December 8, 1994.
    SBCAPCD Rule 316, Storage and Transfer of Gasoline, includes the 
following significant change from the current SIP:
     Cross references rule 326 (Storage of Reactive Organic 
Compound Liquids) in the section that specifies the controls required 
for above-ground tanks larger than 40,000.
    For a detailed evaluation of SBCAPCD Rule 316, please refer the TSD 
dated October 23, 1995.
    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, MBUAPCD, Rule 1002, Transfer of Gasoline into Vehicle Fuel 
Tanks; SDCAPCD Rule 67.24, Bakery Ovens; and SBCAPCD Rule 316, Storage 
and Transfer of Gasoline are being approved under section 110(k)(3) of 
the CAA as meeting the requirements of section 110(a) and Part D.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future implementation 
plan. Each request for revision to the state implementation plan shall 
be considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.
    EPA is publishing this document without prior proposal because the 
Agency views this as a noncontroversial amendment and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, the EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. This action will be 
effective April 9, 1996, unless, by March 11, 1996, adverse or critical 
comments are received.
    If the EPA receives such comments, this action will be withdrawn 
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 this action serving as a 
proposed rule. The EPA will not institute a second comment period on 
this action. Any parties interested in commenting on this action should 
do so at this time. If no such comments are received, the public is 
advised that this action will be effective April 9, 1996.

Regulatory Process

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et. seq., EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises and 
government entities with jurisdiction over populations of less than 
50,000.
    SIP approvals under sections 110 and 301(a) and subchapter I, Part 
D of the CAA do not create any new requirements, but simply approve 
requirements that the State is already imposing. Therefore, because the 
Federal SIP-approval does not impose any new requirements, I certify 
that it does not have a significant impact on any small entities 
affected. Moreover, due to the nature of the Federal-state relationship 
under the CAA, preparation of a regulatory flexibility analysis would 
constitute Federal inquiry into the economic reasonableness of state 
action. The CAA forbids EPA to base its actions concerning SIPs on such 
grounds. Union Electric Co. v. U.S. E.P.A., 427 U.S. 246, 256-66 (S. 
Ct. 1976); 42 U.S.C. 7410 (a)(2).

Unfunded Mandates

    Under Sections 202, 203, and 205 of the Unfunded Mandates Reform 
Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 
1995, EPA must undertake various actions in association with proposed 
or final rules that include a Federal mandate that may result in 
estimated costs of $100 million or more to the private sector or to 
State, local, or tribal governments in the aggregate.
    Through submission of this state implementation plan or plan 
revision, the State and any affected local or tribal governments have 
elected to adopt the program provided for under Part D of the Clean Air 
Act. These rules may bind State, local, and tribal governments to 
perform certain actions and also require the private sector to perform 
certain duties. The rules being approved by this action will impose no 
new requirements because affected sources are already subject to these 
regulations under State law. Therefore, no additional costs to State, 
local, or tribal governments or to the private sector result from this 
action. EPA has also determined that this final action does not include 
a mandate that may result in estimated costs of $100 million or more to 
State, local, or tribal governments in the aggregate or to the private 
sector.
    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under the procedures published in the 
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
Air and Radiation. The Office of Management and Budget (OMB) has 
exempted this regulatory action from Executive Order 12866 review.

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.

    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: December 10, 1995.
Felicia Marcus,
Regional Administrator.

    Subpart F of 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. 7401-7671q.

Subpart F--California

    2. Section 52.220 is amended by adding paragraphs (c)(196)(i)(C), 
(210)(i)(D), and (222)(i)(D) to read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (196)* * *
    (i) * * *
    (C) Santa Barbara County Air Pollution Control District.
    (1) Rule 316, adopted on December 14, 1993.
* * * * *
    (210)* * *
    (i) * * *
    (D) Monterey Bay Unified Air Pollution Control District.
    (1) Rule 1002, adopted on November 23, 1994.
* * * * *
    (222)* * *
    (i) * * *
    (D) San Diego County Air Pollution Control District. 
    
[[Page 4895]]

    (1) Rule 67.24, adopted on March 7, 1995.
* * * * *
[FR Doc. 96-2822 Filed 2-8-96; 8:45 am]
BILLING CODE 6560-50-W