95-4291. Approval and Promulgation of Implementation Plans, Washington; Approval of Section 112(l) Authority; Preconstruction and Operating Permits; Washington  

  • [Federal Register Volume 60, Number 35 (Wednesday, February 22, 1995)]
    [Proposed Rules]
    [Pages 9802-9810]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-4291]
    
    
    
    =======================================================================
    -----------------------------------------------------------------------
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Parts 52 and 63
    
    [WA22-1-6362; FRL-5157-4]
    
    
    Approval and Promulgation of Implementation Plans, Washington; 
    Approval of Section 112(l) Authority; Preconstruction and Operating 
    Permits; Washington
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: EPA invites public comment on its proposal to approve in part 
    and disapprove in part, numerous revisions to the State of Washington 
    [[Page 9803]] Implementation Plan submitted to EPA by the Director of 
    the Washington Department of Ecology (WDOE) on March 8, 1994. The 
    revisions were submitted in accordance with the requirements of section 
    110 and Part D of the Clean Air Act (hereinafter the Act). EPA is also 
    proposing to take no action on a number of provisions which are 
    unrelated to the purposes of the implementation plan. EPA also invites 
    public comment on its proposal to approve certain WDOE rules, and 
    certain rules of the Puget Sound Air Pollution Control Agency (PSAPCA) 
    and Southwest Air Pollution Control Authority (SWAPCA), submitted to 
    EPA by the Director of WDOE on September 29, 1994, under the authority 
    of section 112(l) of the Act in order to recognize conditions and 
    limitations established pursuant to these rules as Federally 
    enforceable.
    
    DATES: Comments must be postmarked on or before March 24, 1995.
    
    ADDRESSES: Written comments should be addressed to: David Bray, Permits 
    Programs Manager, EPA, Air & Radiation Branch (AT-082), 1200 Sixth 
    Avenue, Seattle, Washington 98101.
        Copies of the State's request and other information supporting this 
    proposed action are available for inspection during normal business 
    hours at the following locations: EPA, Air & Radiation Branch (AT-082), 
    1200 Sixth Avenue, Seattle, Washington 98101, and State of Washington, 
    Department of Ecology, 4550 Third Avenue SE, Lacey, Washington 98504.
    
    FOR FURTHER INFORMATION CONTACT: David C. Bray, Permit Programs 
    Manager, EPA, Air & Radiation Branch (AT-082), Seattle, Washington 
    98101, (206) 553-4253.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        On November 15, 1990, Congress amended the Clean Air Act to 
    require, among other things, revisions to state implementation plans 
    (SIPs) to attain and maintain the National Ambient Air Quality 
    Standards (NAAQS) in areas which violate those standards (nonattainment 
    areas). Under the provisions of the Act, revisions to title I, part D 
    (nonattainment area) new source review (NSR) rules were required to be 
    submitted by June 30, 1992 for PM-10 nonattainment areas, by November 
    15, 1992 for most ozone and carbon monoxide nonattainment areas, and by 
    November 15, 1993 for the remainder of the ozone and carbon monoxide 
    nonattainment areas. The Washington Department of Ecology (WDOE) 
    amended its part D NSR rules on August 20, 1993 and submitted them to 
    EPA on March 8, 1994 as a revision to the Washington SIP.
        The Clean Air Act Amendments of 1990 also established a new title V 
    which requires States to develop operating permit programs for most 
    stationary sources. While title V operating permit programs are not 
    intended to be part of the SIP, many provisions of the SIP will 
    interact closely with the title V operating permit program. As such, 
    most States will be revising provisions of their SIPs to facilitate and 
    improve the relationship between their SIP and their title V operating 
    permit program. The WDOE amended several provisions of its current 
    rules for air pollution sources and submitted them to EPA on March 8, 
    1994 as a revision to the Washington SIP.
        Section 112(l) of the Act also enables the EPA to approve State air 
    toxics rules or programs for the implementation and enforcement of 
    emission standards and other requirements for hazardous air pollutants. 
    Approval is granted by the EPA if the Agency finds that: (1) The State 
    rule or program is ``no less stringent'' than the corresponding Federal 
    program or rule; (2) the State program is supported by adequate 
    authority and resources; (3) the schedule for implementation and 
    compliance of emission standards and other requirements is sufficiently 
    expeditious; and (4) the rules are otherwise in compliance with Federal 
    guidance.
        On September 29, 1994, the Director of the WDOE submitted an 
    official application to obtain approval for title V permitting 
    authorities (with the exception of PSAPCA and SWAPCA) in the State of 
    Washington to implement and enforce the statewide rules for ``Controls 
    for New Sources of Toxic Air Pollutants'' (WAC 173-460) as an interim 
    program to implement section 112(g) of the Act. The Director of the 
    WDOE also submitted an official application on behalf of the PSAPCA and 
    SWAPCA to obtain approval for those local agencies to implement and 
    enforce their own rules (portions of PSAPCA Regulations I and III and 
    SWAPCA Regulation 460) for new sources of toxic air pollutants.
    
    II. Discussion of SIP Submittal
    
    A. Description of SIP Submittal
    
        On March 8, 1994, the Director of the WDOE submitted all of Chapter 
    173-400 WAC ``General Regulations for Air Pollution Sources'' (with the 
    exception of WAC 173-400-114) as amended on August 20, 1993, as a 
    revision to the Washington SIP. The amended rules include changes to 
    the following sections: WAC 173-400-030 ``Definitions;'' WAC 173-400-
    040 ``General standards for maximum emissions;'' WAC 173-400-100 
    ``Registration;'' WAC 173-400-105 ``Records, monitoring, and 
    reporting;'' WAC 173-400-110 ``New source review (NSR);'' WAC 173-400-
    120 ``Bubble rules;'' WAC 173-400-131 Issuance of emission reduction 
    credits;'' WAC 173-400-136 ``Use of emission reduction credits;'' WAC 
    173-400-141 ``Prevention of significant deterioration (PSD);'' WAC 173-
    400-171 ``Public involvement;'' WAC 173-400-180 ``Variance;'' WAC 173-
    400-230 ``Regulatory actions;'' and WAC 173-400-250 ``Appeals.'' The 
    amended rules include the following new sections which are revised and 
    recodified provisions from the previous rules: WAC 173-400-112 
    ``Requirements for new sources in nonattainment areas;'' and WAC 173-
    400-113 ``Requirements for new sources in attainment or unclassifiable 
    areas.'' Finally, the amended rules also include the following entirely 
    new sections: WAC 173-400-081 ``Startup and shutdown;'' WAC 173-400-091 
    ``Voluntary limits on emissions;'' and WAC 173-400-107 ``Excess 
    emissions.''
        With the exceptions discussed in Section II.C. and II.D. below, EPA 
    is proposing to approve the submitted version of Chapter 173-400 WAC as 
    a revision to the Washington SIP. Note that those provisions of WAC 
    173-400 which were not revised on August 20, 1993 and are not discussed 
    in Sections II.B., II.C., and II.D., below were previously approved by 
    EPA on January 15, 1993 (58 FR 4578).
    
    B. Discussion of Proposed Approvals
    
    1. New Source Review
        The existing provisions related to new source review (NSR) were 
    extensively revised to meet the new requirements of Title I, Part D of 
    the Act as set forth in the ``State Implementation Plans: General 
    Preamble for the Implementation of Title I of the Clean Air Act 
    Amendments of 1990'' (57 FR 13498, April 16, 1992) and to make the WDOE 
    rules more consistent with EPA's regulations for new source review 
    programs in 40 CFR part 51, subpart I Review of New Sources and 
    Modifications. Specifically:
        a. The definitions of the following terms were revised to be 
    consistent with EPA's definitions: ``actual emissions'' (WAC 173-400-
    030(1)), ``allowable emissions'' (WAC 173-400-030(5)), ``best available 
    control technology [[Page 9804]] (BACT)'' (WAC 173-400-030(9)), ``Class 
    I area'' (WAC 173-400-030(13)), ``emission standard and emission 
    limitation'' (WAC 173-400-030(22)), ``major modification'' (WAC 173-
    400-030(39)), ``net emission increase'' (WAC 173-400-030(46)), ``new 
    source'' (WAC 173-400-030(47)), ``significant'' (WAC 173-400-030(67)), 
    ``source'' (WAC 173-400-030(69)), and ``volatile organic compound 
    (VOC)'' (WAC 173-400-030(81)). EPA finds that these revised definitions 
    are consistent with the requirements of 40 CFR Part 51, Subpart I, and 
    therefore proposes to approve them as revisions to the Washington SIP.
        b. New definitions of the following terms were added to be 
    consistent with EPA's regulations: ``federal land manager'' (WAC 173-
    400-030(28)), ``mandatory Class I federal area'' (WAC 173-400-030(38)), 
    ``major stationary source'' (WAC 173-400-030(40)), ``modification'' 
    (WAC 173-400-030(43)), ``order'' (WAC 173-400-030(53)), ``order of 
    approval'' (WAC 173-400-030(54)), and ``stationary source'' (WAC 173-
    400-030(74)). EPA finds that these new definitions are consistent with 
    the requirements of 40 CFR part 51, subpart I, and therefore proposes 
    to approve them as revisions to the Washington SIP.
        c. WAC 173-400-110 ``New Source Review (NSR)'' was revised to 
    clarify the applicability of the NSR rule and the procedures for 
    submittal of applications, making completeness determinations and final 
    determinations, and appeals of orders of approval. The section was also 
    revised by revoking provisions and replacing them with two new sections 
    as described below. EPA finds that this revised section is consistent 
    with the requirements of 40 CFR part 51, subpart I, and therefore 
    proposes to approve it as a revision to the Washington SIP.
        d. A new section WAC 173-400-112 ``Requirements for new sources in 
    nonattainment areas'' was added which specifies the requirements for 
    new and modified major and minor stationary sources proposing to locate 
    in designated nonattainment areas. New and modified minor stationary 
    sources must comply with all applicable requirements, utilize the best 
    available control technology (BACT) for all air pollutants, not violate 
    the requirements for reasonable further progress established in the SIP 
    and comply with the State's air toxics requirements which EPA is today 
    proposing to approve pursuant to section 112(l) of the Act (see below). 
    New and modified major sources must also comply with all applicable 
    requirements, meet the lowest achievable emission rate (LAER) for the 
    nonattainment air pollutant and BACT for all other air pollutants, 
    comply with the requirements for reasonable further progress by 
    providing adequate offsetting emission reductions from existing sources 
    in the nonattainment area, demonstrate that all other major sources 
    owned or operated in the State of Washington are in compliance (or on a 
    compliance schedule) with applicable requirements, demonstrate through 
    an analysis of alternatives that the benefits of the project 
    significantly outweigh the costs imposed as a result of its location in 
    the nonattainment area, comply with the requirements for prevention of 
    significant deterioration (PSD) if applicable, comply with the State's 
    air toxics requirements, and comply with the visibility protection 
    requirements for mandatory Federal Class I areas.
        Section 189(e) of the Act requires part D NSR programs for 
    PM10 nonattainment areas to treat PM10 precursor emissions in 
    the same manner as PM10 emissions unless the Administrator has 
    determined that PM10 precursors do not significantly contribute to 
    violations of the PM10 NAAQS. However, WAC 173-400-112 does not 
    address PM10 precursors nor require them to be treated in the same 
    manner as PM10 emissions. The Administrator has previously made a 
    determination that PM10 precursors do not significantly contribute 
    to PM10 violations in the Thurston County, and Seattle, Tacoma, 
    and Kent PM10 nonattainment areas (see 58 FR 40056 (July 27, 1993) 
    and 59 FR 44324 (August 29, 1994)). The submitted control strategies 
    for the Wallula, Spokane, and Yakima PM10 nonattainment areas 
    contain sufficient information on the relative contribution of 
    PM10 precursors to the nonattainment problem to enable the 
    Administrator to determine at this time that PM10 precursors do 
    not significantly contribute to violations of the PM10 NAAQS in 
    those three areas. Based on the Administrator's determinations 
    regarding PM10 precursors in the three remaining PM10 
    nonattainment areas, EPA finds this new section to be consistent with 
    the requirements of 40 CFR part 51, subpart I, and title I, part D of 
    the Act, as set forth in ``State Implementation Plans: General Preamble 
    for the Implementation of title I of the Clean Air Act Amendments of 
    1990'' (57 FR 13498 (April 16, 1992)) and therefore proposes to approve 
    it as a revision to the Washington SIP.
        e. A new section WAC 173-400-113 ``Requirements for new sources in 
    attainment or nonclassifiable areas'' was added which specifies the 
    requirements for new and modified major and minor stationary sources 
    located in attainment areas. New and modified minor stationary sources 
    must comply with all applicable requirements, utilize the best 
    available control technology (BACT) for all air pollutants, not delay 
    the attainment date for any nonattainment area nor cause or contribute 
    to a violation of any ambient air quality standard, and comply with the 
    State's air toxics requirements. New and modified major stationary 
    sources must comply with all applicable requirements, utilize the best 
    available control technology (BACT) for all air pollutants, not delay 
    the attainment date for any nonattainment area nor cause or contribute 
    to a violation of any ambient air quality standard, comply with the 
    requirements for PSD if applicable, comply with the State's air toxics 
    requirements, and not cause an adverse impact on visibility. EPA finds 
    that this new section is consistent with the requirements of 40 CFR 
    part 51, subpart I, and therefore proposes to approve it as a revision 
    to the Washington SIP.
    2. Startup and Shutdown
        The new section on ``startup and shutdown'' (WAC 173-400-081) 
    establishes a requirement that State and local air pollution control 
    authorities consider any physical constraints on the ability of a 
    source to comply with a standard whenever an authority promulgates a 
    technology-based emission standard or makes a control technology 
    determination. Where the authority determines that the source is not 
    capable of achieving continuous compliance with a standard during 
    startup or shutdown, the authority shall establish appropriate 
    limitations to regulate the performance of the source during startup or 
    shutdown conditions. The allowable emissions during startup or shutdown 
    must be accounted for in any demonstration of attainment or maintenance 
    of ambient air quality requirements. In addition, if such limitations 
    would allow emissions during periods of startup or shutdown which 
    exceed those allowed for under the current EPA-approved SIP, such 
    limitations shall not take effect until approved by EPA as a revision 
    to the SIP. EPA finds this section to be consistent with EPA 
    requirements and proposes to approve it as a revision to the Washington 
    SIP.
    3. Excess Emissions
        The new section on ``excess emissions'' (WAC 173-400-107) 
    establishes requirements for reporting periods of excess emissions and 
    the procedures and criteria for determining, [[Page 9805]] in the 
    context of an enforcement action, when such excess emissions are 
    unavoidable and could therefore be excused and not subject to penalty. 
    The section sets forth separate criteria for periods of excess 
    emissions resulting from startup or shutdown, scheduled maintenance, 
    and upsets. EPA finds this section to be consistent with its 
    requirements for SIP excess emissions rules (February 15, 1983 
    memorandum entitled ``Policy on Excess Emissions During Startup, 
    Shutdown, Maintenance, and Malfunctions'' from Kathleen M. Bennett, 
    Assistant Administrator for Air, Noise and Radiation to Regional 
    Administrators, Regions 1-X) and therefore proposes to approve it as a 
    revision to the Washington SIP. Note that this new section replaces the 
    provisions for excess emissions which were formerly contained in WAC 
    173-400-105(5) and EPA also proposes to approve the repeal of those 
    provisions.
    4. Voluntary Limits on Emissions
        The new section for voluntary limits on emissions (WAC 173-400-091) 
    provides a mechanism for the owner or operator of a source to apply 
    for, and obtain, enforceable conditions that limit the source's 
    potential to emit. Such limitations would be contained in a 
    ``regulatory order'' issued by the WDOE or a local air authority, after 
    public notice and an opportunity for comment, and would include 
    monitoring, recordkeeping and reporting requirements sufficient to 
    ensure that the source complies with the limitations.
        On June 28, 1989 (54 FR 27274), EPA published criteria for 
    approving and incorporating into the SIP regulatory programs for the 
    issuance of Federally enforceable State operating permits. Permits 
    issued pursuant to an operating permit program approved into the SIP as 
    meeting these criteria may be considered Federally enforceable. The EPA 
    has encouraged States to develop such programs in conjunction with 
    title V operating permits programs to enable sources to limit their 
    potential to emit to below the title V applicability thresholds. (See 
    the guidance document entitled, ``Limitation of Potential to Emit With 
    Respect to Title V Applicability Thresholds,'' dated September 18, 
    1992, from John Calcagni, Director, Air Quality Management Division, 
    Office of Air Quality Planning and Standards (OAQPS), Office of Air and 
    Radiation, U.S. EPA.) On November 3, 1993, the EPA announced in a 
    guidance document entitled, ``Approaches to Creating Federally 
    Enforceable Emissions Limits,'' signed by John S. Seitz, Director, 
    OAQPS, that this mechanism could be extended to create Federally 
    enforceable limits for emissions of hazardous air pollutants (HAP) if 
    the program were approved pursuant to section 112(l) of the Act.
        The June 28, 1989 Federal Register notice establishes five criteria 
    which must be met in order for EPA to approve a State operating permit 
    program into the SIP: (1) The program must be submitted to and approved 
    by the EPA; (2) the program must impose a legal obligation on the 
    operating permit holders to comply with the terms and conditions of the 
    permit, and permits that do not conform with the June 28, 1989 criteria 
    or the EPA's underlying regulations shall be deemed not Federally 
    enforceable; (3) any permit issued under the program must contain terms 
    and conditions that are at least a stringent as any requirements 
    contained in the SIP, enforceable under the SIP, or any section 112 or 
    other CAA requirement, and may not allow for the waiver of any CAA 
    requirement; (4) any permit issued under the program must contain 
    conditions that are permanent, quantifiable, and enforceable as a 
    practical matter; and (5) any permit that is intended to be Federally 
    enforceable must be issued subject to public participation and must be 
    provided to the EPA in proposed form on a timely basis.
        EPA finds that WAC 173-400-091 meets the requirements for Federally 
    enforceable State operating permit programs as set forth in the June 
    28, 1989 Federal Register (54 FR 27274) and proposes to approve it as a 
    revision to the Washington SIP. Furthermore, EPA proposes that, after 
    final approval to this section, ``regulatory orders'' issued pursuant 
    to the EPA-approved WAC 173-400-091, and terms and conditions contained 
    therein, would be enforceable by the EPA and by citizens under section 
    304 of the Act regardless of whether such orders were issued prior to 
    EPA approval of this section. However, such orders would have to have 
    been issued after the effective date of WAC 173-400-091 (i.e., 
    September 20, 1993) in accordance with all of the provisions set forth 
    in that section. Sources could, thereafter, rely on ``regulatory 
    orders'' issued pursuant to this section as a means to limit their 
    potential to emit criteria pollutants and the pollutants regulated 
    under the PSD provisions of the SIP in order to avoid requirements 
    which would otherwise apply to ``major stationary sources.'' EPA 
    requests comment on the appropriateness of making Federally 
    enforceable, as of the date of EPA approval, the terms and conditions 
    of an order that was issued prior to EPA's approval of a State or local 
    rule, provided the order itself complied with all of the requirements 
    of the EPA-approved rule.
    5. Miscellaneous Changes
        The remaining changes to WAC 173-400-030 ``Definitions;'' and the 
    changes to WAC 173-400-040 ``General standards for maximum emissions;'' 
    WAC 173-400-100 ``Registration;'' WAC 173-400-105 ``Records, 
    monitoring, and reporting;'' WAC 173-400-171 ``Public involvement;'' `` 
    WAC 173-400-230 ``Regulatory actions;'' and WAC 173-400-250 ``Appeals'' 
    are primarily administrative in nature to conform those sections to 
    current State statutes and to other provisions of WAC 173-400. EPA 
    finds these changes to be consistent with EPA's requirements and 
    proposes to approve the rules as revised.
    
    C. Discussion of Proposed Disapprovals
    
        On January 15, 1993 (58 FR 4578), EPA disapproved numerous 
    provisions of Chapter 173-400 WAC. These provisions were resubmitted as 
    part of the March 8, 1994 submittal without the necessary changes to 
    make them approvable. EPA is therefore proposing to again disapprove 
    the following provisions. A complete discussion of the deficiencies and 
    the reasons for disapproval can be found in the September 28, 1992 
    Notice of Proposed Rulemaking (57 FR 44530).
        EPA is proposing to disapprove WAC 173-400-040(1) (c) and (d) which 
    allow for the establishment of alternative opacity limits. EPA is 
    proposing to disapprove the second paragraph of WAC 173-400-040(6) 
    which provides an exception to the sulfur dioxide emission limitation. 
    EPA is proposing to disapprove the exception provision in WAC 173-400-
    050(3) which allows for the establishment of an alternative oxygen 
    correction factor for combustion and incineration sources. EPA is 
    proposing to disapprove WAC 173-400-180 Variance which allows the WDOE 
    to grant a variance to the requirements governing the quality, nature, 
    duration, or extent of discharges of air contaminants. EPA is proposing 
    to disapprove WAC 173-400-120 Bubble Rules, WAC 173-400-131 Issuance of 
    Emission Reduction Credits, and WAC 173-400-136 Use of Emission 
    Reduction Credits as these regulations do not comply with the 
    requirements of EPA's Final Emissions Trading Policy Statement (51 FR 
    43814, December 4, 1986).
        EPA is proposing to disapprove WAC 173-400-141 Prevention of 
    Significant Deterioration (PSD) as it does not meet [[Page 9806]] the 
    requirements of 40 CFR 51.166. WDOE has adopted, by reference, EPA's 
    PSD regulations (40 CFR 52.21) as in effect on March 3, 1993. However, 
    significant changes to EPA's regulations became effective on July 20, 
    1993, August 19, 1993 and June 3, 1994. Note that the PSD provisions of 
    the Washington SIP are currently disapproved and EPA's PSD regulations 
    have been promulgated into the Washington SIP (see 40 CFR 52.2497). 
    Until WAC 173-400-141 is revised to meet current EPA requirements and 
    is approved by EPA, WDOE will continue to issue PSD permits under a 
    partial delegation of the EPA PSD permit program.
    
    D. Provisions Unrelated to the SIP
    
        EPA is proposing to take no action on WAC 173-400-040(2) Fallout; 
    WAC 173-400-040(4) Odors; WAC 173-400-070(7) Sulfuric Acid Plants; WAC 
    173-400-075 Emission Standards for Sources Emitting Hazardous Air 
    Pollutants; and WAC 173-400-115 Standards of Performance for New 
    Sources, as these provisions are not related to the criteria pollutants 
    regulated under the SIP.
    
    III. Discussion of Section 112(l) Submittal
    
    A. Description of Submittal
    
        On September 29, 1994, the Director of the WDOE submitted WAC 173-
    460 ``Controls for New Sources of Toxic Air Pollutants,'' SWAPCA 
    Regulation 460 ``Controls for New Sources of Toxic Air Pollutants,'' 
    and PSAPCA Regulation I, Article 6 ``New Source Review'' and Regulation 
    III, Article 2 ``Review of Toxic Air Contaminant Sources'' for approval 
    under section 112(l) of the Act. These provisions establish 
    requirements for preconstruction permits for new and modified sources 
    of HAP.
    
    B. Discussion of Proposed Approval
    
    1. Permits to Construct for New and Modified Sources of Hazardous Air 
    Pollutants
        a. WAC 173-460 ``Controls for New Sources of Toxic Air Pollutants'' 
    establishes the State of Washington's procedures for regulating new and 
    modified stationary sources of toxic air pollutants. It is a 
    comprehensive regulation which covers more pollutants than the 189 HAP 
    listed in section 112(b) of the Act. In addition, it applies to most 
    stationary sources of toxic air pollutants and not just major 
    stationary sources. Finally, it requires both the application of the 
    best available control technology for toxics (T-BACT) and a 
    demonstration of the protection of human health and safety.
        WAC 173-460-010 ``Purpose'' sets forth the purpose of this 
    regulation and the policy of the State of Washington in regulating 
    toxic air pollutants. WAC 173-460-020 ``Definitions'' incorporates all 
    of the definitions from WAC 173-400 ``General Regulations for Air 
    Pollution Sources'' and adds several new definitions specific to the 
    control of toxic air pollutants. WAC 173-460-030 ``Requirements, 
    applicability, and exemptions'' identifies the source categories 
    subject to WAC 173-460 and certain general and specific exemptions from 
    the regulation.
        WAC 173-460-040 ``New source review'' supplements the new source 
    review requirements of WAC 173-400-110 by adding additional 
    requirements for toxic air pollutant sources. Specifically, it requires 
    any new or modified source subject to WAC 173-460 to submit a notice of 
    construction application and obtain a regulatory order approving the 
    notice of construction prior to commencing construction. This section 
    requires any new or modified stationary source to comply with all 
    applicable requirements, utilize T-BACT, and demonstrate that toxic air 
    pollutant emissions from the source are sufficiently low as to protect 
    human health and safety from potential carcinogenic and/or other toxic 
    effects. Source categories for which WDOE has established T-BACT by 
    rule are exempted from the requirement to demonstrate that their 
    emissions protect human health and safety. This section also specifies 
    the process for making preliminary determinations, including public 
    notice and opportunity for public comment, making final determinations, 
    and appealing the permitting authority's decision.
        WAC 173-460-050 ``Requirement to quantify emissions'' requires new 
    sources to quantify emissions sufficient to perform the analyses 
    required by WAC 173-460 and sets forth the procedures for making 
    appropriate emissions calculations. WAC 173-460-060 ``Control 
    technology requirements'' establishes the requirement for new and 
    modified sources of toxic air pollutants to utilize T-BACT and 
    establishes T-BACT requirements by rule for perchloroethylene dry 
    cleaners, petroleum solvent dry cleaning systems, chromic acid plating 
    and anodizing, solvent metal cleaners, and abrasive blasting.
        WAC 173-460-070 ``Ambient impact requirement'' requires the owner 
    or operator of a new or modified source of toxic air pollutants to 
    demonstrate that emissions from the source are sufficiently low as to 
    protect human health and safety from potential carcinogenic and/or 
    other toxic effects. Compliance with this requirement must be 
    demonstrated using the procedures set forth in WAC 173-460. WAC 173-
    460-080 ``Demonstrating ambient impact compliance'' requires the owner 
    or operator of a new or modified air toxics source to complete an 
    analysis which demonstrates compliance with the acceptable source 
    impact levels (ASIL) established in WAC 173-460. The analysis must 
    utilize dispersion modeling techniques in accordance with EPA 
    guidelines, unless the source qualifies for using specified small 
    quantity emission rate tables.
        WAC 173-460-090 ``Second tier analysis'' provides an alternative 
    approach for demonstrating acceptable impacts if the owner or operator 
    of a proposed new source or modification could not demonstrate 
    compliance with the acceptable source impact levels using the 
    procedures specified in WAC 173-460-080. This section allows the owner 
    or operator of a new or modified source to petition WDOE to perform a 
    second tier analysis evaluation to determine a means of compliance with 
    WAC 173-460-070 and -080 by establishing allowable emissions for the 
    source. A second tier analysis may be requested when a source wishes to 
    more accurately characterize risks, to justify risk greater than 
    acceptable source impact levels, or to otherwise modify assumptions to 
    more accurately represent risks. The WDOE may approve emissions of air 
    toxics from a source where ambient concentrations would exceed 
    acceptable source impact levels only if it determines that T-BACT is 
    utilized and that emissions of certain air toxics are not likely to 
    result in an increased cancer risk of more than one in one-hundred 
    thousand. If the WDOE approves the second tier analysis, the notice of 
    construction approval, following public notice and opportunity for 
    comment, shall specify allowable emissions consistent with WDOE's 
    determination and include all requirements necessary to assure that 
    conditions of WAC 173-460 and WAC 173-400 are met.
        WAC 173-460-100 ``Request for risk management decision'' provides 
    an alternative approach for sources that emit certain toxic air 
    pollutants that are likely to result in an increased cancer risk of 
    more than one in one-hundred thousand. The owner or operator of such a 
    source may request that WDOE make a risk management decision which 
    would allow such greater risk. To receive such approval, the owner or 
    [[Page 9807]] operator of such source must propose allowable emission 
    limits for the source that represent all known available reasonable 
    control technology, apply all known available air toxic pollution 
    prevention methods, and demonstrate that the proposal will result in a 
    greater benefit to the environment as a whole. The source may also 
    propose measures that would reduce community exposure to comparable 
    toxic air pollutants. WDOE's decision on any request for a risk 
    management decision will follow a public notice and opportunity for 
    public comment, including a public hearing, and appropriate conditions 
    on emission controls, pollution prevention, or other measures, shall be 
    included in the approval of the notice of construction.
        WAC 173-460-110 ``Acceptable source impact levels'' establishes the 
    process that the WDOE uses to establish the acceptable source impact 
    levels in this regulation. WAC 173-460-120 ``Scientific review and 
    amendment of acceptable source impact levels and lists'' establishes an 
    ongoing process for the scientific review of information on toxic air 
    pollutants and acceptable source impact levels. WAC 173-460-130 
    ``Fees'' authorizes the WDOE or local air authority to charge fees for 
    the review of notices of construction. WAC 173-460-140 ``Remedies'' 
    establishes the civil and criminal enforcement authorities for 
    violations of WAC 173-460. Finally, WAC 173-460-150 ``Class A toxic air 
    pollutants: Known, probable and potential human carcinogens and 
    acceptable source impact levels'' and WAC 173-460-160 ``Class B toxic 
    air pollutants and acceptable source impact levels'' list the 
    acceptable source impact levels for the toxic air pollutants regulated 
    by WAC 173-460. Note that these levels are criteria used in a permit 
    review process and are not standards which would be enforceable against 
    sources by either the State or EPA.
        EPA is proposing to approve WAC 173-460 under section 112(l) of the 
    Act in order to recognize regulatory orders approving notices of 
    construction as Federally enforceable. EPA is also proposing to approve 
    the provisions of WAC 173-400 that are used to implement the 
    requirements of WAC 173-460 (specifically, WAC 173-400-110, -112, -113, 
    and -171) under section 112(l) of the Act. If approved, permitting 
    authorities would be able to utilize regulatory orders issued pursuant 
    to WAC 173-460 to establish Federally enforceable limits on potential 
    to emit for new and modified stationary sources of HAP and to make any 
    case-by-case MACT determinations required under section 112(g) of the 
    Act.
        The EPA believes it has authority under section 112(l) to approve 
    State preconstruction review programs for HAP directly under section 
    112(l). The EPA is therefore proposing approval of WAC 173-460 now so 
    that permitting authorities in Washington may begin to issue Federally 
    enforceable regulatory orders as soon as possible.
        EPA is aware that WAC 173-460 was not designed specifically to 
    implement section 112(g) of the Act. Furthermore, EPA has acknowledged 
    that States may encounter difficulties implementing section 112(g) 
    prior to promulgation of final EPA regulations (see June 28, 1994 
    memorandum entitled, ``Guidance for Initial Implementation of Section 
    112(g),'' signed by John Seitz, Director of the Office of Air Quality 
    Planning and Standards). However, EPA believes that WAC 173-460 can 
    serve as a procedural vehicle to make Federally enforceable any case-
    by-case MACT determinations required by section 112(g) during the 
    transition period between title V approval in Washington and EPA 
    approval of WDOE regulations to implement EPA's final section 112(g) 
    regulations. EPA believes WAC 173-460 will be adequate for this 
    transition period because it applies to any new source of HAP and any 
    modification to an existing source of HAP. As such, any major source 
    which would be subject to section 112(g) of the Act would be required 
    by WAC 173-460 to obtain a regulatory order containing a T-BACT 
    determination. Furthermore, WAC 173-460 allows permitting authorities 
    to select control measures that would meet MACT, as defined in section 
    112 of the Act, and after EPA approval, to incorporate these measures 
    into a Federally enforceable regulatory order.
        b. SWAPCA Regulation 460 ``Controls for New Sources of Toxic Air 
    Pollutants'' adopts WAC 173-460 by reference as a local regulation. As 
    discussed in Section III.B.1. above, this WAC 173-460 meets all of 
    EPA's requirements for a permit to construct program to establish 
    Federally enforceable limitations on new and modified stationary 
    sources of HAP. EPA is therefore proposing to approve SWAPCA Regulation 
    460 under the authority of section 112(l) of the Act. Note that EPA is 
    proposing to approve WAC 173-460 which is applicable statewide and, by 
    State law, remains in effect in all areas of the State regardless of 
    any local agency regulations. If SWAPCA Regulation 460 is revised or 
    revoked, SWAPCA is approved to implement WAC 173-460 as the new source 
    review program for HAP in SWAPCA's jurisdiction until such time as EPA 
    approves the revision or revocation of SWAPCA Regulation 460.
        c. PSAPCA Regulation I, Article 6 ``New Source Review'' and 
    Regulation III, Article 2 ``Review of Toxic Air Contaminant Sources'' 
    contain requirements for the construction and modification of 
    stationary sources of HAP. Regulation I, Article 6 establishes a 
    comprehensive new source review program that sets forth the process for 
    submitting a ``Notice of Construction and Application for Approval'' 
    and granting an ``Order of Approval'' or ``Order to Prevent 
    Construction.'' It applies to new and modified sources of any air 
    contaminant and includes requirements for the content of applications, 
    payment of ``Notice of Construction'' review fees, and requirements for 
    public notice and comment. Furthermore, Section 6.07(c)(3) requires the 
    utilization of the best available control technology (BACT) for all air 
    contaminants emitted by new and modified stationary sources.
        Regulation III, Article 2 establishes additional requirements for 
    new and modified sources of toxic air contaminants and applies to all 
    sources required to submit a ``notice of construction and application 
    for approval'' under Regulation I, Article 6 except for certain source 
    categories for which PSAPCA has established T-BACT by rule. Section 
    2.01 ``Applicability'' states that Article 2 applies to all sources of 
    toxic air contaminants except for the following source categories for 
    which PSAPCA has established T-BACT by rule: asbestos removal 
    operations, chromic acid plating and anodizing tanks, solvent metal 
    cleaners, perchloroethylene dry cleaning systems, petroleum solvent dry 
    cleaning systems, gasoline storage and dispensing operations, graphic 
    arts systems, can and paper coating operations, motor vehicle and 
    mobile equipment coating operations, polyester/vinylester/gelcoat/resin 
    operations, coatings and ink manufacturing, and ethylene oxide 
    sterilizers and aerators. Note that sources exempt from the additional 
    requirements of this section are not exempted from the requirement of 
    Regulation I, Article 6 ``New Source Review.'' Section 2.02 ``National 
    Emission Standards for Hazardous Air Pollutants'' requires all sources 
    subject to Article 2 to comply with any applicable provision of 40 CFR 
    part 61. Section 2.03 ``New or Altered Toxic Air Contaminant Sources'' 
    requires that no ``Notice of Construction and Application for 
    Approval'' shall be issued under Regulation I, Article 6 for a new or 
    modified source subject to [[Page 9808]] Article 2 unless the source 
    owner or operator demonstrates that the toxic air contaminant emissions 
    from the source will not result in the exceedence of any Acceptable 
    Source Impact Level (ASIL) contained in Appendix A of Regulation III 
    and does not otherwise cause an air pollution problem.
        These PSAPCA regulations have previously been approved as part of 
    the Washington SIP for control of criteria pollutants. They also meet 
    all of EPA's requirements for a permit to construct program to 
    establish Federally enforceable limitations on new and modified 
    stationary sources of HAP. Furthermore, the WDOE has certified that, 
    pursuant to Washington State law, the PSAPCA regulations are at least 
    as stringent as corresponding State regulations, in this case, WAC 173-
    460 which EPA is also proposing to approve. EPA is therefore proposing 
    to approve these PSAPCA regulations under the authority of section 
    112(l) of the Act. Note that EPA is proposing to approve WAC 173-460 
    which is applicable statewide and, by State law, remains in effect in 
    all areas of the State regardless of any local agency regulations. If 
    PSAPCA Regulation I, Article 6 or Regulation III, Article 2 is revised 
    or revoked, PSAPCA is approved to implement WAC 173-460 as the new 
    source review program for HAP in PSAPCA's jurisdiction until such time 
    as EPA approves the revision or revocation of PSAPCA's regulations.
    2. Voluntary Limits on Emissions
        The new section for voluntary limits on emissions (WAC 173-400-091) 
    provides a mechanism for the owner or operator of a source to apply 
    for, and obtain, enforceable conditions that limit the source's 
    potential to emit. The provisions of this section are applicable, as a 
    matter of State law, to any air contaminant and not just the criteria 
    pollutants regulated under the EPA-approved Washington SIP. In addition 
    to requesting approval into the SIP, WDOE has also requested approval 
    of this section under section 112(l) of the Act for the purpose of 
    creating Federally enforceable limitations on the potential to emit of 
    HAP. Approval under section 112(l) is necessary because the proposed 
    SIP approval discussed in Section II.B.4. above only extends to the 
    control of criteria pollutants. Federally enforceable limits on 
    criteria pollutants (i.e., VOC's or PM-10) may have the incidental 
    effect of limiting certain HAP listed pursuant to section 112(b).1 
    However, section 112 of the Act provides the underlying authority for 
    controlling all HAP emissions.
    
        \1\ The EPA intends to issue guidance addressing the technical 
    aspects of how these criteria pollutant limits may be recognized for 
    purposes of limiting a source's potential to emit of HAP to below 
    section 112 major source levels.
    ---------------------------------------------------------------------------
    
        The EPA believes that the five approval criteria for approving 
    State operating permit programs into the SIP, as specified in the June 
    28, 1989 Federal Register notice, are also appropriate for evaluating 
    and approving State operating permit programs under section 112(l) of 
    the Act. The November 3, 1993 guidance document entitled ``Approaches 
    to Creating Federally Enforceable Emissions Limits,'' signed by John S. 
    Seitz, Director, OAQPS, indicated that this mechanism could be extended 
    to create Federally enforceable limits for emissions of HAP if the 
    program were approved pursuant to section 112(l) of the Act. The June 
    28, 1989 notice does not address HAP simply because it was written 
    prior to the 1990 amendments to section 112, not because it establishes 
    requirements unique to criteria pollutants. In addition to meeting the 
    criteria in the June 28, 1989 notice, a State operating permit program 
    that addresses HAP must meet the statutory criteria for approval under 
    section 112(l)(5). Section 112(l) allows the EPA to approve a program 
    only if it: (1) contains adequate authority to assure compliance with 
    any section 112 standards or requirements; (2) is supported by adequate 
    resources; (3) provides for an expeditious schedule for assuring 
    compliance with section 112 requirements; and (4) is otherwise likely 
    to satisfy the objectives of the Act. The EPA plans to codify the 
    approval criteria for programs limiting potential to emit of HAP, such 
    as State operating permit programs, through amendments to Subpart E of 
    Part 63, the regulations promulgated to implement section 112(l) of the 
    Act. (See 58 FR 62262, November 26, 1993.) The EPA currently 
    anticipates that these regulatory criteria, as they apply to State 
    operating permit programs, will mirror those set forth in the June 28, 
    1989 Federal Register notice. The EPA currently anticipates that since 
    State operating permit programs approved pursuant to section 112(l) 
    prior to the planned Subpart E revisions will have been approved as 
    meeting these criteria, further approval actions for those programs 
    will not be necessary.
        The EPA believes it has authority under section 112(l) to approve 
    programs to limit potential to emit of HAP directly under section 
    112(l) prior to this revision to Subpart E. The EPA is therefore 
    proposing approval of this section now so that permitting authorities 
    in Washington may begin to issue Federally enforceable regulatory 
    orders as soon as possible.
        As discussed in Section II.B.4. above, EPA believes that this 
    section meets the approval criteria specified in the June 28, 1989 
    Federal Register notice. Regarding the statutory criteria of section 
    112(l)(5) referred to above, the EPA believes this section contains 
    adequate authority to assure compliance with section 112 requirements 
    because the third criterion of the June 28, 1989 notice is met, that 
    is, because the program does not allow for the waiver of any section 
    112 requirement. Sources that become minor through a permit issued 
    pursuant to this program would still be required to meet section 112 
    requirements applicable to non-major sources. Regarding the requirement 
    for adequate resources, the EPA believes WDOE has demonstrated that it 
    can provide for adequate resources to support the synthetic minor 
    program. Permitting authorities currently cover sources not subject to 
    title V under a ``registration'' program which assesses fees adequate 
    to cover the costs of implementing and enforcing the terms of 
    regulatory orders issued under this section. The EPA will monitor each 
    permitting authority's implementation of this section to ensure that 
    adequate resources are in fact available. The EPA also believes that 
    this section provides for an expeditious schedule for assuring 
    compliance with section 112 requirements. This program will be used 
    allow a source to establish a voluntary limit on potential to emit to 
    avoid being subject to a CAA requirement applicable on a particular 
    date. Nothing in this section would allow a source to avoid or delay 
    compliance with a CAA requirement if it fails to obtain an appropriate 
    Federally enforceable limit by the relevant deadline. Finally, the EPA 
    believes it is consistent with the intent of section 112 of the Act for 
    States to provide a mechanism through which sources may avoid 
    classification as a major source by obtaining a Federally enforceable 
    limit on potential to emit.
        EPA therefore, proposes to approve WAC 173-400-091 under the 
    authority of section 112(l) of the Act. Furthermore, EPA proposes that, 
    after final approval to this section, ``regulatory orders'' issued 
    pursuant to the EPA-approved WAC 173-400-091, and terms and conditions 
    for HAP contained therein, would be enforceable by the EPA and by 
    citizens under section 304 of the Act regardless of whether such orders 
    were issued prior to EPA approval of this section. However, such orders 
    would have to [[Page 9809]] have been issued after the effective date 
    of WAC 173-400-091 (i.e., September 20, 1993) in accordance with all of 
    the provisions set forth in that Section. Sources could, thereafter, 
    rely on ``regulatory orders'' issued pursuant to this section as a 
    means to limit their potential to emit of HAP in order to avoid 
    requirements which would otherwise apply to a ``major stationary 
    source'' of HAP. EPA requests comment on the appropriateness of making 
    Federally enforceable the terms and conditions of an order that was 
    issued prior to EPA's approval of a State or local rule, provided the 
    order itself complied with all of the requirements of the EPA-approved 
    rule.
    
    IV. Summary of Action
    
        EPA is soliciting public comment on its proposed approval in part 
    and disapproval in part of revisions to the State of Washington 
    Implementation Plan. Specifically, EPA is proposing to approve:
        WAC 173-400 as in effect on September 20, 1993, except for the 
    following sections: -040(1)(c) and (d); -040(2); -040(4); the second 
    paragraph of -040(6); the exception provision in -050(3); -070(7); -
    075; -115; -120; -131; -136; -141; and -180.
        EPA is proposing to disapprove the following:
        WAC 173-400-040(1)(c) and (d), the second paragraph of -040(6), the 
    exception provision in -050(3), -120, -131, -136, -141, and -180.
        EPA is proposing to take no action on the following:
        WAC 173-400-040(2), -040(4), -070(7), -075, and -115.
        Note that WAC 173-400-114 was not submitted for inclusion in the 
    Washington SIP.
        EPA is also soliciting public comment on its proposed approval of 
    certain State and local agency regulations pursuant to the authority of 
    section 112(l) of the Act. Specifically, EPA is proposing to approve 
    the following:
        WAC 173-460 as in effect on February 14, 1994;
        WAC 173-400-091; -110; 112; 113; and 171 as in effect on September 
    20, 1993;
        SWAPCA Regulation 460 as in effect on June 15, 1993; and
        PSAPCA Regulation I, Article 6 as in effect on September 17, 1993 
    and
        Regulation III, Articles 1 and 2 as in effect on September 17, 
    1993.
        Interested parties are invited to comment on all aspects of this 
    proposed approval in part and disapproval in part. Comments should be 
    submitted in triplicate, to the address listed in the front of this 
    Notice. Public comments postmarked by March 24, 1995, will be 
    considered in the final rulemaking action taken by EPA.
    
    Administrative Review
    
        This action has been classified as a Table 2 SIP action by the 
    Regional Administrator under the procedures published in the Federal 
    Register on January 19, 1989 (54 FR 2214-2224), as revised by an 
    October 4, 1993 memorandum from Michael H. Shapiro, Acting Assistant 
    Administrator for Air and Radiation. The OMB has exempted Table 2 SIP 
    actions from E.O. 12866 review.
        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 section 110 and subchapter I, Part D of the CAA 
    do not create any new requirements, but simply approve requirements 
    that the State is already imposing. Similarly, approvals of State rules 
    under section 112(l) do not create any new requirements. Therefore, 
    because the Federal SIP approval and the section 112(l) approval do not 
    impose any new requirements, I certify that they do 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).
        EPA's disapproval of the State request under section 110 and 
    subchapter I, part D of the CAA does not affect any existing 
    requirements applicable to small entities. Any pre-existing Federal 
    requirements remain in place after this disapproval. Federal 
    disapproval of the State submittal does not affect its State 
    enforceability. Moreover, EPA's disapproval of the submittal does not 
    impose any new Federal requirements. Therefore, EPA certifies that this 
    disapproval action does not have a significant impact on a substantial 
    number of small entities because it does not impose any new Federal 
    requirements.
        Nothing in this action should be construed as permitting or 
    allowing or establishing a precedent for any future request for 
    revision to any SIP or approval of any State rules pursuant to section 
    112(l). Each request for revision to any SIP or approval under section 
    112(l) shall be considered separately in light of specific technical, 
    economic, and environmental factors and in relation to relevant 
    statutory and regulatory requirements.
        Under Executive Order 12866 (58 FR 51735 (October 4, 1993)), the 
    Agency must determine whether the regulatory action is ``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 result in 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, or 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 or 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.
        It has been determined that the proposed approval of the State and 
    local air toxics rules under section 112(l) is not a ``significant 
    regulatory action'' under the terms of Executive Order 12866 and is 
    therefore not subject to OMB review.
    
        Authority: 42 U.S.C. 7401-7671q.
    
    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, Reporting and 
    recordkeeping requirements, Sulfur oxides, and Volatile organic 
    compounds.
    
    40 CFR Part 63
    
        Environmental protection, Administrative practice and procedure, 
    Air pollution control, Hazardous substances, Intergovernmental 
    relations, [[Page 9810]] Reporting and recordkeeping requirements.
    
        Dated: February 9, 1995.
    Chuck Clarke,
    Regional Administrator.
    [FR Doc. 95-4291 Filed 2-21-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Published:
02/22/1995
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
95-4291
Dates:
Comments must be postmarked on or before March 24, 1995.
Pages:
9802-9810 (9 pages)
Docket Numbers:
WA22-1-6362, FRL-5157-4
PDF File:
95-4291.pdf
CFR: (2)
40 CFR 52
40 CFR 63