95-27144. Clean Air Act Proposed Approval of the Federal Operating Permits Program; California State Implementation Plan Revision; San Joaquin Valley Unified Air Pollution Control District  

  • [Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
    [Proposed Rules]
    [Pages 55516-55521]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-27144]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Parts 52 and 70
    
    [CA163-1-7251; AD-FRL-5323-4]
    
    
    Clean Air Act Proposed Approval of the Federal Operating Permits 
    Program; California State Implementation Plan Revision; San Joaquin 
    Valley Unified Air Pollution Control District
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed rule.
    
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    SUMMARY: The EPA is proposing interim approval for the Federal 
    Operating Permits Program submitted by the California Air Resources 
    Board on behalf of the San Joaquin Valley Unified Air Pollution Control 
    District (San Joaquin or District). This Program was submitted for the 
    purpose of complying with Federal requirements in title V of the Clean 
    Air Act which mandates that States develop, and submit to EPA, programs 
    for issuing operating permits to all major stationary sources and to 
    certain other sources. As part of San Joaquin's program, EPA is also 
    proposing to approve Rule 2530 Federally Enforceable Potential to Emit 
    under Clean Air Act sections 110 and 112(l). This rule creates 
    federally-enforceable limits on potential to emit for sources with 
    actual emissions less 
    
    [[Page 55517]]
    than 50 percent of the major source thresholds.
    
    DATE: Comments on this proposed action must be received in writing by 
    December 1, 1995.
    
    ADDRESSES: Comments should be addressed to Frances Wicher, Mail Code A-
    5-2, U.S. Environmental Protection Agency, Region IX, Air and Toxics 
    Division, 75 Hawthorne Street, San Francisco, California 94105.
        Copies of the District's submission and other supporting 
    information used in developing the proposed interim approval including 
    the Technical Support Document are available for inspection during 
    normal business hours at the following location: Operating Permits 
    Section, A-5-2, Air and Toxics Division, U.S. EPA-Region IX, 75 
    Hawthorne Street, San Francisco, California 94105.
    
    FOR FURTHER INFORMATION CONTACT: Frances Wicher, (415) 744-1250, 
    Operating Permits Section, A-5-2, Air and Toxics Division, U.S. EPA-
    Region IX, 75 Hawthorne Street, San Francisco, California 94105.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background and Purpose
    
    A. Title V
    
        As required under title V of the Clean Air Act as amended in 1990, 
    EPA has promulgated rules that define the minimum elements of an 
    approvable State operating permits program and the corresponding 
    standards and procedures by which the EPA will approve, oversee, and 
    withdraw approval of State operating permits programs (see 57 FR 32250 
    (July 21, 1992)). These rules are codified at 40 CFR part 70. Title V 
    requires States to develop, and submit to EPA, programs for issuing 
    operating permits to all major stationary sources and to certain other 
    sources. EPA has also issued numerous policy documents on implementing 
    part 70, many of which are contained in the docket for this proposal.
        The Act requires that States develop and submit operating permit 
    programs to EPA by November 15, 1993, and that EPA act to approve or 
    disapprove each program within one year of receiving the submission. 
    The EPA's program review occurs pursuant to section 502 of the Act and 
    the part 70 regulations, which together outline criteria for approval 
    or disapproval. Where a program substantially, but not fully, meets the 
    requirements of part 70, EPA may grant the program interim approval for 
    a period of up to two years. If EPA has not fully approved a program by 
    two years after the November 15, 1993 date, or by the end of an interim 
    program, it must establish and implement a Federal program.
    
    B. Federally-Enforceable Limits on Potential to Emit
    
        Section 502(a) of the Act requires all major sources obtain title V 
    operating permits. To determine whether a source is major, the Act 
    focuses not only on a source's actual emissions, but also on its 
    potential emissions. Thus, a source that has maintained actual 
    emissions at levels below the major source threshold could still be 
    subject to title V permitting if it has the potential to emit (PTE) 
    major amounts of air pollutants.
        However, in situations where unrestricted operation of a source 
    would result in a PTE above major-source levels, such sources may 
    legally avoid permitting by taking federally-enforceable PTE limits 
    below the applicable major source threshold. Federally-enforceable 
    limits are enforceable by EPA or by citizens in addition to the State 
    or Local agency. There are numerous mechanisms for creating federally-
    enforceable limits including prohibitory rules that are approved into 
    the state implementation plan and, for limiting PTE for hazardous air 
    pollutants, under section 112(l) of the Act.
    
    II. Proposed Action and Implications
    
    A. Analysis of State Submission
    
        The analysis contained in this notice focuses on the major elements 
    of San Joaquin's title V operating permit program and on the specific 
    elements that must be corrected to meet the minimum requirements of 
    part 70. The full program submittal, the Technical Support Document 
    (TSD), which contains a detailed analysis of the submittal, and other 
    relevant materials are available for inspection as part of the public 
    docket. The docket may be viewed during regular business hours at the 
    address listed above.
    1. Title V Program Support Materials
        San Joaquin's program was submitted for approval under title V and 
    part 70 by the California Air Resources Board (CARB) on July 3 and 
    August 17, 1995. Additional material was submitted by the District on 
    September 6 and 21, 1995. In submitting the District's title V program, 
    CARB requested source category-limited interim approval for the program 
    because California law currently exempts agricultural sources from all 
    permitting requirements including title V. The District's submission 
    contains a complete program description, District implementing and 
    supporting regulations, application and reporting forms, and other 
    supporting information. In addition, CARB submitted for all Districts 
    in the State a single Attorney General's opinion, State enabling 
    legislation, and certain other information regarding State law.
        San Joaquin's Rule 2530 Federally Enforceable Potential to Emit was 
    submitted by CARB as a revision to the SIP and for approval under 
    section 112(l) of the Act on October 24, 1995.
        EPA reviewed the District's program to assure that it contains all 
    the elements required by Sec. 70.4(b) (elements of the initial program 
    submission) and has found the program complete pursuant to 
    Sec. 70.4(e)(1) in a letter to the CARB on October 18, 1995. Rule 2530 
    was found to be complete pursuant to EPA's completeness criteria for 
    SIP revisions that are set forth in 40 CFR Part 51 Appendix V.
    2. Title V Operating Permit Regulations and Program Implementation
        The rules that constitute San Joaquin's title V program are Rules 
    2520 Federally Mandated Operating Permits (adopted June 15, 1995), Rule 
    2530 Federally Enforceable Potential to Emit (adopted June 15, 1995), 
    and elements of Rule 2201 New and Modified Stationary Source Review 
    (amended June 15, 1995). Other District rules that were submitted in 
    support of the District's title V program are Rules 1080 Stack 
    Monitoring (amended December 17, 1992), 1081 Source Sampling (amended 
    December 17, 1992), 2010 Permits Required (amended December 16, 1993), 
    2020 Exemptions (amended October 26, 1993), and 3010 Fees (amended July 
    21, 1995).1 These rules, along with the authorities granted the 
    District under California State law, substantially meet the 
    requirements of Secs. 70.2 (Definitions) and 70.3 (Applicability) for 
    applicability; Sec. 70.5(c) (Standard application form and required 
    information) for criteria that define insignificant activities and for 
    complete application forms; Secs. 70.4(b)(12) (Section 502(b)(10) 
    changes) and 70.6 (Permit content) for permit content including 
    operational flexibility; Sec. 70.7 (Permit issuance, renewal, 
    reopenings, and revisions) for public participation, permit issuance, 
    and permit modifications; Sec. 70.9 (Fee 
    
    [[Page 55518]]
    determination and certification) for fees; and Sec. 70.11 for 
    enforcement authority.
    
        \1\EPA is only approving the portions of these Rules that are 
    necessary to implement the District's title V program. Except for 
    Rule 2530, this approval does not constitute approval or indicate 
    the approvability of these rules under any other provisions of the 
    Act or EPA regulations.
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        EPA has identified several interim approval issues affecting 
    applicability, application content, permit content, and permit issuance 
    and modifications procedures that must be corrected in order for the 
    San Joaquin program to receive full approval. These interim approval 
    issues are discussed in Section II.B.2. of this notice and detailed in 
    the TSD. EPA has also included in the summary section of the TSD its 
    understandings and interpretations of certain elements of the San 
    Joaquin rule including the use of EPA's January 25, 1995 transition 
    memorandum on limiting potential to emit; limits on EPA's objections to 
    permits; limits on the permit shield; consolidation of overlapping 
    applicable requirements; variances; the effective definition of title I 
    modifications; and administrative permit amendments. A copy of this 
    summary section may be obtained by contacting Frances Wicher at the 
    address listed at the beginning of this notice.
    3. Permit Fee Demonstration
        Section 502(b)(3) of the Act requires that each permitting 
    authority collect fees sufficient to cover all reasonable direct and 
    indirect costs required to develop and administer its title V operating 
    permits program. Each title V program submission must contain either a 
    detailed demonstration of fee adequacy or a demonstration that 
    aggregate fees collected from title V sources meet or exceed $25 per 
    ton of emissions per year (adjusted from 1989 by the Consumer Price 
    Index (CPI)). The $25 per ton amount is presumed, for program approval, 
    to be sufficient to cover all reasonable program costs and is thus 
    referred to as the ``presumptive minimum,'' (Sec. 70.9 (b)(2)(i)). For 
    FY 1996, the presumptive fee level is $30.93.
        San Joaquin has opted to make a presumptive minimum fee 
    demonstration in order to show fee adequacy and meet the requirements 
    of Sec. 70.9 (Fee determination and certification). San Joaquin's fee 
    schedule (Rule 3010) requires title V facilities to pay an application 
    fee for initial permits, permit renewals, and permit modifications of 
    $15 per unit creditable to a $46 per hour processing fee. In addition, 
    the District charges an annual fee for permits to operate and a fee for 
    sources applying for preconstruction permits under Rule 2201. In 
    aggregate, title V sources in the Valley will pay a total annual fee of 
    $32.09 per ton in 1996. This amount is over the $30.93 per ton 
    presumptive minimum fee level for FY 1996.
    4. Provisions Implementing the Requirements of Other Titles of the Act
        a. Authority and Commitments for Section 112 Implementation. San 
    Joaquin has demonstrated in its title V program submission adequate 
    legal authority to implement and enforce all section 112 requirements 
    through the title V permit. This legal authority is contained in the 
    State of California enabling legislation and in regulatory provisions 
    defining ``federally enforceable requirements'' and stating that the 
    permit must incorporate conditions and terms to ensure compliance with 
    all applicable requirements. EPA has determined that this legal 
    authority is sufficient to allow San Joaquin to issue permits that 
    assure compliance with all section 112 requirements.
        b. Authority for Title IV (Acid Rain) Implementation. San Joaquin's 
    title V program contains minimal elements of an acid rain program; 
    however, the District has committed to adopt all missing elements of an 
    acid rain program as soon as possible. At this time, EPA does not 
    believe that there are any phase II acid rain sources in the Valley, 
    therefore, the District's commitment to adopt an acid rain program 
    expeditiously should ensure appropriate regulatory authority exists to 
    issue a timely title IV permit to any new or existing source in the 
    District that becomes subject to, or wants to opt into, the acid rain 
    program.
    
    B. Proposed Action
    
    1. Title V Operating Permits Program
        The EPA is proposing to grant interim approval to the operating 
    permit program for the San Joaquin Valley Unified APCD submitted on 
    July 3 and August 17, 1995, and supplemented on September 6 and 21, 
    1995. If EPA finalizes this proposed interim approval, it will extend 
    for two years following the effective date of final interim approval 
    and cannot be renewed. During the interim approval period, San Joaquin 
    will be protected from sanctions, and EPA is not obligated to 
    promulgate, administer and enforce a federal permits program for the 
    District. Permits issued under a program with interim approval have 
    full standing with respect to part 70, and the one-year time period for 
    submittal of permit applications by subject sources begins upon the 
    effective date of interim approval, as does the three-year time period 
    for processing the initial permit applications.
        Following final interim approval, if the District fails to submit a 
    complete corrective program by the date six months before expiration of 
    the interim approval, the District will be subject to a sanction clock 
    or potentially subject to sanctions under section 502(d)(2) of the Act. 
    If EPA has not granted full approval to the District's title V program 
    by the end of the interim period, then the District will be subject to 
    a federally-imposed operating permits program.
    2. Interim Approval Issues for San Joaquin's Title V Operating Permits 
    Program
        If EPA finalizes this interim approval, San Joaquin must make the 
    following changes, or changes that have the same effect, to receive 
    full approval:
        (1) Revise the applicability language in Rule 2520 2.2 and the 
    definitions of Major Air Toxics Source (Rule 2520 3.18) and Major 
    Source (Rule 2520 3.19) to be consistent with the Act and part 70 to 
    cover sources that emit at major source levels. Currently, these 
    sections of Rule 2520 define major source solely on a source's 
    potential to emit; however, both the Act and part 70 define a major 
    source as a source that emits or has the potential to emit at major 
    source levels. These revisions to Rule 2520 will assure sources whose 
    potential to emit is less than major source levels but whose actual 
    emissions are at major source levels because of non-compliance with or 
    ineffective limits on potential to emit are subject to permitting under 
    Rule 2520.
        (2) Limit the exemption for non-major sources in Rule 2520 4.1 so 
    that it does not exempt non-major sources for which EPA determines, 
    upon promulgation of a section 111 or 112 standard, must obtain title V 
    permits.
        (3) Either revise the definition of ``stationary source'' in Rule 
    2201 3.29 so that the exception to the Major SIC Group requirement for 
    oil and gas production sources in Rule 2201 3.29.4 does not apply for 
    determining the applicability of Rule 2520 or demonstrate that the 
    definition is as stringent as part 70.
        Rule 2201 3.29.4 is a provision applicable to any facility located 
    totally within the Western or Central Kern County Oil Fields or the 
    Fresno County Oil Fields that is used for the production of light oil, 
    heavy oil or gas. This provision states that all sources under common 
    control or ownership within each field shall be considered a single 
    stationary source even if they are located on non-contiguous or 
    adjacent properties. However, the section also states that light oil 
    production, heavy oil production, and gas production shall 
    
    [[Page 55519]]
    constitute separate stationary sources. While the former provision is 
    more stringent that part 70, the latter provision is not. Part 70's 
    definition of ``major source'' requires aggregating all emission points 
    under common control or ownership that are on contiguous or adjacent 
    properties and belong to the same Major Group as described in the 
    Standard Industrial Classification (SIC) Manual. See Sec. 70.2 ``Major 
    source.'' Light oil production, heavy oil production and gas production 
    are all in the same Major Group. It is unclear whether or not San 
    Joaquin's program would require permitting of the same emission units 
    as part 70. If the District can make this demonstrate then EPA proposes 
    not to require any revision to Rule 2201 3.29 as it applies to 
    applicability determinations under Rule 2520.
        While Sec. 70.2 ``Major source'' (1)(i) does not require emissions 
    from any oil or gas exploration or production well be aggregated with 
    emissions from other such units in determining whether such units are a 
    major source, this allowance is limited to determining HAPs major 
    source status. Emissions of other regulated pollutants must be 
    aggregated within the stationary source for determining major source 
    status.
        (4) Revise Rule 2520 7.1.3.2 to eliminate the requirement that 
    fugitive emission estimates need only be submitted in the application 
    if the source is in a source category identified in the major source 
    definition in 40 CFR part 70.2. Fugitive emissions need only be counted 
    to determine the applicability of part 70 if a source is in a source 
    category listed in the Sec. 70.2. major source definition. However, 
    once applicability is determined, all sources must submit information 
    on fugitive emissions in their applications to the extent the 
    information is required by part 70. See Sec. 70.3(d).
        (5) Revise Rule 2520 to provide that unless the District requests 
    additional information or otherwise notifies the applicant of 
    incompleteness within 60 days of receipt of an application, the 
    application shall be deemed complete. See Secs. 70.5(a)(2) and 
    70.7(a)(4).
        (6) Revise Rule 2520 sections 11.1.4.2 and 11.3.1.1 and Rule 2201 
    5.3.1.1.1 to include notice ``by other means if necessary to assure 
    adequate notice to the affected public.'' See Sec. 70.7(h)(1).
        (7) Revise Rule 2520's permit issuance procedures to provide for 
    notifying EPA and affected states in writing of any refusal by the 
    District to accept all recommendations for the proposed permit that an 
    affected state submitted during the public/affected state review 
    period. See Sec. 70.8(b)(2).
        (8) Either delete section 11.7.5 in Rule 2520 and section 5.3.1.8.5 
    in Rule 2201, which purport to limit the grounds upon which EPA may 
    object to a permit to compliance with applicable requirements, or 
    revise them to be fully consistent with Sec. 70.8(c).
        Rule 2520 11.7.5 and Rule 2201 5.3.1.8.5 purport to limit the 
    grounds on which EPA may object to a permit to compliance with 
    applicable requirements. Section 70.8(c)(1) provides that EPA will 
    object to the issuance of any proposed permit that is not ``in 
    compliance with applicable requirements or requirements under this part 
    [part 70].'' (emphasis added). EPA's authority to object to issuance of 
    permits derives from section 505(b) of the Act. No state or local 
    agency may restrict authorities granted EPA under the Clean Air Act; 
    therefore, EPA views section 11.7.5 of Rule 2520 and Section 5.3.1.8.5 
    of Rule 2201 as not binding upon its actions. EPA will exercise its 
    authority to object to permits consistent with Sec. 70.8(c) and without 
    regard to the restriction on that authority in San Joaquin's title V 
    program. Should the District issue a permit to which EPA has objected 
    and the District has not revised or reissued to meet the objection, EPA 
    will consider the permit invalid and will require the District to 
    revise and reissue the proposed permit or will revoke, revise, and 
    reissue the permit itself. EPA has made these revisions to Rule 2520 an 
    interim approval issue in order to clarify its authority.
        (9) Revise Rule 2520 2.4 to clarify that the sentence in section 
    2.4 that ``[o]nly the affected emissions units within the stationary 
    source shall be subject to part 70 permitting requirements'' applies 
    only to stationary sources that are also area sources. Rule 2520 2.4 
    requires any emission unit, including an area source subject to a 
    standard or other requirement promulgated pursuant to section 111 or 
    112 of the CAA published after July 21, 1992, to obtain a part 70 
    permit but also states that only the affected emissions unit within a 
    stationary source shall be subject to the part 70 permitting 
    requirements. Section 70.3(c) requires all emission units subject to 
    any applicable requirement at major sources be included in a part 70 
    permit. Only at non-major sources does part 70 allow the permit to 
    cover only the units causing the source to be subject to part 70.
        (9) Revise Rule 2520 8.1 to provide that model general permits and 
    model general permit templates will have a permit term not to exceed 5 
    years instead of being valid until revoked, suspended, or modified. 
    During the interim approval period, EPA recommends that the District 
    issue all model general permits and model general permit templates with 
    a permit term not to exceed 5 years to avoid having to reopen all model 
    general permits and model general permit templates issued during the 
    interim approval period to incorporate the correct permit term.
        (10) Revise Rule 2520 8.1 to provide that any permit for a solid 
    waste incineration unit that has a permit term of more than 5 years 
    shall be subject to review, including public notice and comment, at 
    least every 5 years. See Sec. 70.6(a)(2).
        (11) Revise Rule 2520 13.2.3 to state that the permit shield will 
    apply only to requirements addressed in the permit. Rule 2520 13.2.3 
    currently extends the permit shield to requirements addressed by the 
    District in written application reviews. Section 504(f) of the Act and 
    Sec. 70.6 (f) are both clear that the permit shield may only extend to 
    requirements that are addressed in the permit. EPA will not consider a 
    source shielded from an enforcement action for failure to comply with 
    an applicable requirement if that applicable requirement is addressed 
    only in the written reviews supporting permit issuance and not in the 
    permit. Further, EPA will veto any permit that extends the permit 
    shield to conditions, terms, or findings of non-applicability that are 
    not included in the permit.
        (12) Revise Rule 2520 9.12 to require the permit to contain terms 
    and conditions for the trading of emission increases and decreases in 
    the permitted facility to the extent that any applicable requirement 
    provides for such trading without case by case approval. Rule 2520 9.12 
    currently restricts permit terms and conditions to trades allowed under 
    the District's new source review rule, Rule 2201. See Sec. 70.6 
    (a)(10).
        (13) Revise Rule 2520, Section 9.0 (permit content) to include the 
    Sec. 70.6 (c)(3) requirement for schedules of compliance for applicable 
    requirements for which the source is in compliance or that will become 
    effective during the permit term. Section 70.6(c)(3), reflecting the 
    language of Clean Air Act section 504(a) (``Each permit issued * * * 
    shall include * * * a schedule of compliance* * * .''), requires that 
    the permit contain a schedule of compliance even when the source is in 
    compliance with all applicable requirements. Rule 2520 9.15 only 
    requires a schedule of compliance when the source is in violation of 
    any applicable requirement. During the interim period, the District 
    should incorporate schedules of compliance, as 
    
    [[Page 55520]]
    required by Sec. 70.6(c)(3), into all issued permits.
        (14) Revise Rule 2520 to treat changes made under the prevention of 
    significant deterioration (PSD) provisions of the Act and EPA' PSD 
    regulations in the same manner as ``title I modifications'' as that 
    term is defined in Rule 2520 and Rule 2201. PSD modifications are 
    considered ``modifications under title I'' in part 70.
        (15) Revise Rule 2520 to state that, notwithstanding the permit 
    shield provisions, if a source that is operating under a general permit 
    is later determined not to qualify for the terms and conditions of that 
    general permit, then the source is subject to enforcement action for 
    operation without a part 70 permit. See Sec. 70.6(d).
        (16) Because California State law currently exempts agricultural 
    production sources from permit requirements, CARB has requested source 
    category-limited interim approval for all California districts. EPA is 
    proposing to grant source category-limited interim approval to the San 
    Joaquin program. In order for this program to receive full approval, 
    the Health and Safety Code must be revised to eliminate the exemption 
    of agricultural production sources from the requirement to obtain a 
    title V permit. Once the California statute has revised, the District 
    must also revise its permit exemption rules to eliminate any blanket 
    exemption granted agricultural sources.
    3. District Program Implementing Section 112(g)
        The EPA has published an interpretive notice in the Federal 
    Register regarding section 112(g) of the Act (60 FR 8333; February 14, 
    1995). The revised interpretation postpones the effective date of 
    section 112(g) until after EPA has promulgated a rule addressing that 
    provision. The interpretive notice explains that EPA is considering 
    whether the effective date of section 112(g) should be delayed beyond 
    the date of promulgation of the federal rule so as to allow States time 
    to adopt rules implementing the federal rule, and that EPA will provide 
    for any such additional delay in the final section 112(g) rulemaking. 
    Unless and until EPA provides for such an additional postponement of 
    section 112(g), San Joaquin must be able to implement section 112(g) 
    during the period between promulgation of the federal section 112(g) 
    rule and adoption of implementing District regulations.
        For this reason, EPA is proposing to approve the use of San 
    Joaquin's preconstruction review program (Rule 2201) as a mechanism to 
    implement section 112(g) during the transition period between 
    promulgation of the section 112(g) rule and adoption by San Joaquin of 
    rules specifically designed to implement section 112(g). However, since 
    the sole purpose of this approval is to confirm that the District has a 
    mechanism to implement section 112(g) during the transition period, the 
    approval itself will be without effect if EPA decides in the final 
    section 112(g) rule that there will be no transition period. The EPA is 
    limiting the duration of this proposed approval to 12 months following 
    promulgation by EPA of the section 112(g) rule.
    4. Program for Delegation of Section 112 Standards as Promulgated
        Requirements for approval, specified in 40 CFR 70.4(b), encompass 
    section 112(l)(5) requirements for approval of a program for delegation 
    of section 112 standards as promulgated by EPA as they apply to part 70 
    sources. Section 112(l)(5) requires that the state program contain 
    adequate authorities, adequate resources for implementation, and an 
    expeditious compliance schedule, which are also requirements under part 
    70. Therefore, EPA is proposing to grant approval under section 
    112(l)(5) and 40 CFR part 63.91 of San Joaquin's program for receiving 
    delegation of section 112 standards that are unchanged from federal 
    standards as promulgated. California Health and Safety Code section 
    39658 provides for automatic adoption by CARB of section 112 standards 
    upon promulgation by EPA. Section 39666 of the Health and Safety Code 
    requires that districts then implement and enforce these standards. 
    Thus, when section 112 standards are automatically adopted pursuant to 
    section 39658, San Joaquin will have the authority necessary to accept 
    delegation of these standards without further regulatory action by the 
    District. The details of this mechanism and the means for finalizing 
    delegation of standards will be set forth in a Memorandum of Agreement 
    between San Joaquin and EPA, expected to be completed prior to approval 
    of the District's section 112(l) program for delegation of unchanged 
    federal standards. This program applies to both existing and future 
    standards but is limited to sources covered by the part 70 program.
    5. Proposed Approval of Rule 2530 Federally Enforceable Potential To 
    Emit
        On October 24, 1995, CARB submitted for approval into the San 
    Joaquin Valley's portion of the California State Implementation Plan 
    (SIP), Rule 2530 Federally Enforceable Potential to Emit. This Rule 
    creates a streamlined process for limiting the potential to emit of 
    sources that emit less that 50 percent of major source levels but whose 
    potential to emit is above those levels. Sources complying with this 
    Rule will have federally-enforceable limits on their potential to emit 
    and will avoid being subject to title V.
        The basic requirement for approving into the SIP rules to limit 
    potential to emit is that the limits in the rule are practically 
    enforceable. For a discussion of general principle of practical 
    enforceability, see Memorandum from John Seitz to Regional Air 
    Directors ``Options for Limiting the Potential to Emit (PTE) of a 
    Stationary Source Under Section 112 and Title V of the Clean Air Act 
    (Act),'' January 25, 1995, found in the docket for this rulemaking. 
    Rule 2530 meets these requirements for practical enforceability for 
    limiting potential to emit through general prohibitory rules in SIPs. 
    Please refer to the TSD for further analysis of the Rule.
        CARB also submitted Rule 2520 for approval under section 112(l) of 
    the Act. The separate request for approval under section 112(l) is 
    necessary because the proposed SIP approval discussed above only 
    provides a mechanism for controlling criteria pollutants. EPA has 
    determined that the practical enforceability criterion for SIPs is also 
    appropriate for evaluating and approving Rule 2530 under section 
    112(l). In addition, Rule 2530 must meet the statutory criteria for 
    approval under section 112(l)(5). For a discussion of EPA's authority 
    to approve rules under section 112 (l), see 59 FR 60944 (November 29, 
    1994).
        EPA proposes approval of Rule 2530 under 112(l) because the Rule 
    meets all of the approval criteria specified in section 112(l)(5) of 
    the Act. EPA believes Rule 2530 contains adequate authority to assure 
    compliance with section 112 requirements because it does not waive any 
    section 112 requirements applicable to non-major sources. Regarding 
    adequate resources, Rule 2530 is a supporting element of the District's 
    title V program which has demonstrated adequate funding. Furthermore, 
    EPA believes that Rule 2530 provides for an expeditious schedule for 
    assuring compliance because it provides a streamlined approval that 
    allows sources to establish limits on potential to emit and avoid being 
    subject to a federal Clean Air Act requirement applicable on a 
    particular date. Finally, Rule 2530 is consistent with the objectives 
    of the section 112 program because its purpose is to enable sources to 
    obtain federally enforceable 
    
    [[Page 55521]]
    limits on potential to emit to avoid major source classification under 
    section 112. The EPA believes this purpose is consistent with the 
    overall intent of section 112.
        Rule 2530 is modeled on the California model prohibitory rule 
    developed by the California Association of Air Pollution Control 
    Officers, CARB, and EPA. In its agreement on the model rule, EPA 
    expressed certain understandings and caveats. See letter, Lydia Wegman, 
    Deputy Director, Office of Air Quality Planning and Standards, U.S. EPA 
    to Peter D. Venturini, Chief, Stationary Source Division, CARB, January 
    11, 1995. A copy of this letter is in the docket for this rulemaking. 
    These understandings and caveats are incorporated into EPA's proposed 
    approval of Rule 2530.
    
    III. Administrative Requirements
    
    A. Request for Public Comments
    
        The EPA is requesting comments on all aspects of this proposed 
    interim approval. Comments should be submitted by December 1, 1995. 
    Copies of the District's submittal and other information relied upon 
    for the proposed interim approval are contained in a docket maintained 
    at the EPA Regional Office.
    
    B. Executive Order 12866
    
        The Office of Management and Budget has exempted this action from 
    Executive Order 12866 review.
    
    C. Regulatory Flexibility Act
    
        The EPA's actions under Section 502 of the Act do not create any 
    new requirements, but simply address operating permits programs 
    submitted to satisfy the requirements of 40 CFR part 70. Because this 
    action does not impose any new requirements, it does not have a 
    significant impact on a substantial number of small entities.
    
    D. Unfunded Mandates Act
    
        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 
    costs to State, local, or tribal governments in the aggregate; or to 
    the 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 proposed approval 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. This federal 
    action approves pre-existing requirements under State or local law, and 
    imposes no new federal requirements. Accordingly, no additional costs 
    to State, local, or tribal governments, or to the private sector, 
    result from this action.
    
    List of Subjects
    
    40 CFR Part 52
    
        Environmental protection, Air pollution control, Carbon monoxide, 
    Hydrocarbons, Incorporation by reference, Intergovernmental relations, 
    Lead, Nitrogen dioxide, Ozone, Particulate matter, Sulfur oxides, 
    Volatile organic compounds.
    
    40 CFR Part 70
    
        Administrative practice and procedure, Air pollution control, 
    Environmental protection Hazardous substances, Intergovernmental 
    relations, Operating permits, and Reporting and recordkeeping 
    requirements.
    
        Authority: 42 U.S.C. 7401-7671q.
    
        Dated: October 19, 1995.
    John Wise,
    Acting Regional Administrator.
    [FR Doc. 95-27144 Filed 10-31-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Published:
11/01/1995
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
95-27144
Dates:
Comments on this proposed action must be received in writing by December 1, 1995.
Pages:
55516-55521 (6 pages)
Docket Numbers:
CA163-1-7251, AD-FRL-5323-4
PDF File:
95-27144.pdf
CFR: (2)
40 CFR 70.4(e)(1)
40 CFR 70.6