[Federal Register Volume 61, Number 118 (Tuesday, June 18, 1996)]
[Rules and Regulations]
[Pages 30814-30816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15439]



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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[AD-FRL-5521-5]
RIN 2060-AD98


National Emission Standards for Hazardous Air Pollutants for 
Shipbuilding and Ship Repair (Surface Coating) Operations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: On December 15, 1995, the EPA issued national emission 
standards for hazardous air pollutants (NESHAP) under Section 112 of 
the Clean Air Act as amended in 1990 for shipbuilding and ship repair 
(surface coating) operations. The NESHAP requires existing and new 
major sources to control emissions using the maximum achievable control 
technology to control hazardous air pollutants. This action revises the 
compliance date for sources subject to this standard and revises the 
date for submittal of implementation plans. Specifically, this action 
extends the June 13, 1996 deadline for submittal of an implementation 
plan to December 16, 1996. The compliance date is extended from 
December 16, 1996 to December 16, 1997. This action is being taken 
because the EPA has learned that sufficient time was not provided to

[[Page 30815]]

prepare the implementation plans and establish the necessary inventory 
management systems to ensure compliance with the standard. This action 
is also being taken to improve coordination of compliance with the 
NESHAP with the anticipated implementation of the control techniques 
guidelines (CTG) requirements for shipbuilding and ship repair 
facilities.
    This action also removes the requirement that implementation plans 
be approved by the EPA. This requirement is being removed because it 
was not EPA's intent for the implementation plan to be the mechanism 
for enforcing the rule.

DATES: The direct final rule will be effective August 19, 1996 unless 
significant, adverse comments are received by July 18, 1996. If the 
effective date is delayed, timely notice will be published in the 
Federal Register.

ADDRESSES: Comments should be submitted to: Air and Radiation Docket 
and Information Center (6102), Attention Docket Number A-92-11, Room M-
1500, U.S. Environmental Protection Agency, 401 M Street, SW, 
Washington, D.C. 20460.

FOR FURTHER INFORMATION CONTACT: Dr. Mohamed Serageldin, Emission 
Standards Division (MD-13), U.S. Environmental Protection Agency, 
Office of Air Quality Planning and Standards, Research Triangle Park, 
North Carolina 27711, telephone number (919) 541-2379.

SUPPLEMENTARY INFORMATION:

    Regulated Entities. The regulated category and entities affected by 
this action include:

------------------------------------------------------------------------
             Category                  Examples of regulated  entities  
------------------------------------------------------------------------
Industry..........................  Facilities that build, repair,      
                                     repaint, convert, or alter ships.  
                                     The term ship means any marine or  
                                     fresh-water vessel, including self-
                                     propelled vessels, those propelled 
                                     by other craft (barges), and       
                                     navigational aids (buoys).         
                                    Note: An offshore oil and gas       
                                     drilling platform is not considered
                                     a ship for purposes of this        
                                     regulation.                        
Federal Govt......................  Federal Agencies which undertake    
                                     shipbuilding or repair operations  
                                     (see above) such as the Navy and   
                                     Coast guards.                      
------------------------------------------------------------------------

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that EPA is now aware 
could potentially be regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine wheher 
your facility is regulated by this action, you should carefully examine 
the applicability criteria in Sec. 63.782 of the regulation. If you 
have questions regarding the applicability of this action to a 
particular entity, consult the person listed in the preceding FOR 
FURTHER INFORMATION CONTACT section.
    Any significant and timely adverse comments received on any portion 
of this direct final rule will be addressed in a subsequent final rule 
based on the proposed rule contained in the Proposed Rules Section of 
this Federal Register that is identical to this direct final rule. If 
no significant and timely adverse comments are received on this direct 
final rule, then the direct final rule will become effective August 19, 
1996 and no further action is contemplated on the parallel proposal 
published today.

I. Basis for Changes to Rule

A. Compliance Date

    The EPA is extending the compliance date from December 16, 1996 to 
December 16, 1997 to allow time for sources to develop the necessary 
inventory management systems, administrative controls, and to allow 
coordination of compliance plans for this rule and the CTG, which is 
planned for publication in the near future. When the final NESHAP was 
issued, the EPA selected a one-year compliance period to allow time for 
sources to deplete existing inventories of coatings and to conduct 
compliance planning procedures. Since the final rule was issued on 
December 15, 1995, the EPA has learned that there are a number of 
companies subject to this rule that presently do not have inventory 
management systems necessary to ensure compliance, and that some 
facilities are relying on outside consultants to develop such systems. 
In such cases, at least one year is needed to establish the paint 
inventory management and administrative control system. Additionally, 
at the time the final NESHAP was issued, EPA expected to issue final 
guidance for the CTG for shipbuilding and ship repair (surface coating) 
operations in the near future. Issuance of this CTG has been delayed. 
Since control techniques for volatile organic compound emissions could 
affect the compliance approach selected for the NESHAP, the EPA 
believes that it is appropriate to extend the compliance date for the 
NESHAP to allow coordination with rules adopted by States to implement 
the CTG. Based on the anticipated schedule for issuance of the CTG, the 
EPA believes that extension of the compliance date to December 16, 1997 
should provide sufficient time to allow coordination of compliance 
planning for both the NESHAP and any applicable State rules.

B. Implementation Plan

    The EPA is extending the June 13, 1996 deadline for submittal of 
implementation plans to December 16, 1996. The deadline for submitting 
these plans is being extended because the EPA has learned that 
sufficient time was not provided to prepare the implementation plans 
and establish the necessary paint inventory management and 
administrative control systems to ensure compliance with the standard. 
Because information available to the EPA during the development of the 
NESHAP suggested that most shipyards had some form of inventory 
management system, the EPA expected that 180 days should be sufficient 
to prepare the implementation plan. Due to information received from 
the industry since the final rule was issued, the EPA believes that one 
year is a more appropriate time-frame for selection of the compliance 
approach and development of the implementation plan. Therefore, this 
document revises the date for submittal of implementation plans to 
December 16, 1996.
    This action also removes the requirement that implementation plans 
be approved by the EPA. This requirement is being eliminated since it 
was not the EPA's intent for the implementation plan to be the 
mechanism for enforcing the rule and, if the plans are subject to 
approval, some people might argue that was the role of the plan. The 
implementation plan will serve to provide guidance and assist in 
enforcement of the rule.

II. Administrative Requirements

A. Paperwork Reduction Act

    The information collection requirements of the previously 
promulgated NESHAP were submitted to and approved by the Office of 
Management and Budget (OMB). A copy of this Information Collection 
Request (ICR) document (OMB number 1414.02) may be obtained from Sandy 
Farmer, Information Policy Branch (PM-223Y); U.S. Environmental 
Protection Agency; 401 M Street, SW; Washington, DC 20460 or by calling 
(202) 260-2740.
    Today's changes to the NESHAP should have no impact on the

[[Page 30816]]

information collection burden estimates made previously. The change to 
the implementation plan requirements merely extends the date for 
submission of plans from existing sources. These changes do not impose 
new requirements. Consequently, the ICR has not been revised.

B. Executive Order 12866 Review

    Under Executive Order 12866, the EPA must determine whether the 
proposed regulatory action is ``not significant'' and therefore, 
subject to OMB review and the requirements of the executive order. The 
Order defines ``significant'' regulatory action as one that is likely 
to lead to a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety in State, local, or tribal governments or communities;
    (2) create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) materially alter the budgetary impact of entitlements, grants, 
user fees or loan programs or the rights and obligations of recipients 
thereof; or
    (4) raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the executive order.
    The Shipbuilding NESHAP promulgated on December 15, 1995 was 
determined to not be a ``significant regulatory action'' under 
Executive Order 12866. Therefore, a regulatory impact analysis was not 
prepared. The amendments issued today extend dates for submittal of 
implementation plans and the compliance date and remove the requirement 
for approval of implementation plans. These changes do not add any 
additional control requirements or costs. Therefore, this regulatory 
action does not affect the previous decision and is not considered to 
be significant.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 requires the identification 
of potentially adverse impacts of Federal regulations upon small 
business entities. The Act specifically requires the completion of a 
Regulatory Flexibility Analysis in those instances where small business 
impacts are possible. Because this rulemaking imposes no adverse 
economic impacts, a Regulatory Flexibility Analysis has not been 
prepared. Pursuant to Section 605(b) of the Regulatory Flexibility Act, 
5 U.S.C. 605(b), the Administrator certifies that this rule will not 
have a significant economic impact on a substantial number of small 
entities.

D. Submission to Congress and the General Accounting Office

    Under section 801(a)(1)(A) of the Administrative Procedures Act 
(APA) as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996, EPA submitted 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 General Accounting 
Office prior to publication of the rule in today's Federal Register. 
This rule is not a ``major rule'' as defined by section 804(2) of the 
APA as amended.

E. Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995, the 
EPA must prepare a budgetary impact statement to accompany any proposed 
or final rule that includes a Federal mandate that may result in 
estimated costs to State, local, or tribal governments in the 
aggregate; or to the private sector, of $100 million or more. Under 
Section 205, the EPA must select the least costly, most cost-effective 
or least burdensome alternative that achieves the objectives of the 
rule and is consistent with statutory requirements. Section 203 
requires the EPA to establish a plan for informing and advising any 
small governments that may be significantly or uniquely impacted by the 
rule.
    The EPA has determined that the action promulgated today does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. Therefore, the requirements of the 
Unfunded Mandates Reform Act do not apply to this action.

List of Subjects in 40 CFR Part 63

    Environmental protection, Air pollution control, Hazardous 
substances, Reporting and recordkeeping requirements.

    Dated: June 7, 1996.
Carol M. Browner,
Administrator.

    For the reasons set out in the preamble, title 40, chapter I, part 
63, subpart II, of the Code of Federal Regulations is amended as 
follows:

PART 63--[AMENDED]

    1. The authority citation for part 63 continues to read as follows:

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

Subpart II--National Emission Standards for Shipbuilding and Ship 
Repair (Surface Coating)

    2. Section 63.784 is amended by revising paragraph (a) to read as 
follows:


Sec. 63.784  Compliance dates.

    (a) Each owner or operator of an existing affected source shall 
comply within two years after the effective date of this subpart.
* * * * *
    3. Section 63.787 is amended by revising paragraphs (b)(1)(ii) and 
(b)(4) and by removing and reserving paragraph (b)(2) to read as 
follows:


Sec. 63.787  Notification requirements.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Not later than one year after the effective date of this 
subpart, submit the implementation plan to the Administrator along with 
the notification required by Sec. 63.9(b)(2) or (b)(5) of subpart A, as 
applicable.
    (2) [Reserved]
* * * * *
    (4) Major sources that intend to become area sources by the 
compliance date. Existing major sources that intend to become area 
sources by the December 16, 1997 compliance date may choose to submit, 
in lieu of the implementation plan required under paragraph (b)(1) of 
this section, a statement that, by the compliance date, the major 
source intends to obtain and comply with federally enforceable limits 
on their potential to emit which make the facility an area source.
* * * * *
[FR Doc. 96-15439 Filed 6-17-96; 8:45 am]
BILLING CODE 6560-50-P