97-21269. Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania Conditional Limited Approval of the Pennsylvania VOC and NOINFX/INF RACT Regulation  

  • [Federal Register Volume 62, Number 155 (Tuesday, August 12, 1997)]
    [Proposed Rules]
    [Pages 43134-43139]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-21269]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 52
    
    [PA 041-4013; FRL-5873-9]
    
    
    Approval and Promulgation of Air Quality Implementation Plans; 
    Pennsylvania Conditional Limited Approval of the Pennsylvania VOC and 
    NOX RACT Regulation
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed rule.
    
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    SUMMARY: EPA is proposing conditional limited approval of a State 
    Implementation Plan (SIP) revision submitted by the Commonwealth of 
    Pennsylvania. This revision establishes and requires major sources of 
    volatile organic compounds (VOCs) and nitrogen oxides (NOX) 
    to implement reasonably available control technology (RACT). The 
    intended effect of this action is to propose conditional limited 
    approval of the Pennsylvania RACT regulation (Chapter 129.91-129.95).
    
    DATES: Comments must be received on or before September 11, 1997.
    
    ADDRESSES: Comments may be mailed to David L. Arnold, Chief, Ozone/CO 
    and Mobile Sources, Mailcode 3AT21, U.S. Environmental Protection 
    Agency, Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 
    19107. Copies of the documents relevant to this action are available 
    for public inspection during normal business hours at the Air, 
    Radiation, and Toxics Division, U.S. Environmental Protection Agency, 
    Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 19107; 
    Pennsylvania Department of Environmental Protection, Bureau of Air 
    Quality, P.O. Box 8468, 400 Market Street, Harrisburg, Pennsylvania 
    17105.
    
    FOR FURTHER INFORMATION CONTACT: Cynthia H. Stahl, (215) 566-2180, at 
    the EPA Region III address above, or via e-mail at 
    stahl.cynthia@epamail.epa.gov. While information may be requested via 
    e-mail, any comments must be submitted in writing to the EPA Region III 
    address above.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On February 4, 1994, the Pennsylvania Department of Environmental 
    Protection (PA DEP, then known as the Pennsylvania Department of 
    Environmental Resources) submitted a revision to its State 
    Implementation Plan (SIP) for the control of VOC and NOX 
    emissions from major sources (Pennsylvania Chapters 129.91 through 
    129.95. This submittal was amended with a revision on May 3, 1994 
    correcting and clarifying the presumptive NOX RACT 
    requirements under Chapter 129.93. The submittal was again amended on 
    September 18, 1995 by the withdrawal from EPA consideration of the 
    provisions 129.93(c) (6) and (7) pertaining to best available control 
    technology (BACT) and lowest achievable emission rate (LAER). The 
    Pennsylvania SIP revision consists of regulations that would require 
    sources that emit or have the potential to emit 25 tons or more of VOC 
    or NOX per year in the Pennsylvania portion of the 
    Philadelphia-Wilmington-Trenton ozone nonattainment area (the 
    Philadelphia area) or 50 tons or more of VOC per year in the remainder 
    of the Commonwealth to comply with reasonably available control 
    technology requirements by May 31, 1995. Outside the Philadelphia ozone 
    nonattainment area, sources of NOX that emit or have the 
    potential to emit 100 tons or more per year are required to comply with 
    RACT by no later than May 31, 1995. While the Pennsylvania regulations 
    contain specific provisions requiring major VOC and NOX 
    sources to implement RACT, the regulations under review do not contain 
    specific emission limitations in the form of a specified overall 
    percentage emission reduction requirement or other numerical emission 
    standards. Instead, the Pennsylvania regulations contain technology-
    based or operational ``presumptive RACT emission limitations'' for 
    certain major NOX sources. For other major NOX 
    sources and all covered major VOC sources, the submittal contains a 
    ``generic'' RACT provision. Pennsylvania's generic RACT regulation does 
    not impose specific up-front emission limitations, but instead allows 
    for future case-by-case determinations. This regulation allows PA DEP 
    to make case-by-case RACT determinations that are then submitted to EPA 
    for approval as revisions to the Pennsylvania SIP.
        On January 12, 1995 (60 FR 2912), EPA proposed three alternative 
    rulemaking actions pertaining to the Pennsylvania RACT regulation (60 
    FR 2912). Many comments were received in response to that proposed 
    Federal Register notice. EPA is hereby withdrawing that notice of 
    proposed actions and reproposing conditional limited approval of this 
    Pennsylvania SIP revision. Because EPA is withdrawing its January 12, 
    1995 proposed actions, the comments submitted on the January 12, 1995 
    notice of proposed rulemaking will not be addressed. Any comments in 
    response to today's notice should be sent to the EPA Region III address 
    located in the ADDRESSES section of this notice.
    
    Today's Rulemaking Action
    
        EPA is proposing conditional limited approval of the Pennsylvania 
    VOC and NOX RACT regulations, Chapter 129.91 through 129.95. 
    EPA is proposing to conditionally approve the SIP revision based upon 
    PA DEP meeting its commitment to submit all the case-by-case RACT 
    proposals, for all of the sources it has identified as being subject to 
    the major source RACT regulations, as source-specific revisions to the 
    SIP no later than twelve months from the effective date of EPA's final 
    conditional limited approval of the Pennsylvania VOC and NOX 
    RACT regulations. Pennsylvania submitted its commitment
    
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    in a letter to EPA dated September 23, 1996. Once the Commonwealth has 
    satisfied this condition, EPA shall remove the conditional status of 
    its approval and the Pennsylvania VOC and NOX regulations 
    SIP revision will, for the time being, retain its limited approval 
    status. EPA is also proposing limited approval of the Pennsylvania VOC 
    and NOX RACT regulations SIP revision on the basis that its 
    approval will strengthen the SIP. The limited approval of the generic 
    VOC and NOX regulations SIP revision shall be converted to 
    full approval once EPA has approved each of Pennsylvania's case-by-case 
    RACT proposals as SIP revisions. This conditional limited approval 
    action is action that is being taken under section 110 of the Clean Air 
    Act.
    
    Summary of Pennsylvania's VOC and NOX RACT Regulations 
    SIP Revision
    
        Pursuant to sections 182(b)(2) and 182(f) of the Clean Air Act 
    (CAA), Pennsylvania is required to implement RACT for all major VOC and 
    NOX sources by no later than May 31, 1995. The major source 
    size is determined by its location, the classification of that area and 
    whether it is located in the ozone transport region (OTR). The entire 
    Commonwealth is located in the OTR. The Pennsylvania portion of the 
    Philadelphia ozone nonattainment area consists of Bucks, Chester, 
    Delaware, Montgomery, and Philadelphia Counties. The Philadelphia ozone 
    nonattainment area is classified as severe. The remaining counties in 
    Pennsylvania are classified as either moderate or marginal 
    nonattainment areas or are designated attainment for ozone. However, 
    under section 184 of the CAA, at a minimum, moderate ozone 
    nonattainment area requirements for major stationary sources (including 
    RACT as specified in sections 182(b)(2) and 182(f)) apply throughout 
    the OTR. Therefore, RACT is applicable statewide in Pennsylvania.
        The SIP submittal under review consists of Pennsylvania regulations 
    codified at 25 Pa. Code Chapters 129.91 through 129.95.
        Chapter 129.91--Chapter 129.91 contains the applicability section, 
    and requires owners and operators of covered sources (i.e. all major 
    NOX sources and major VOC sources not covered by the source-
    specific and mobile source RACT requirements of 25 Pa. Code sections 
    129.51-129.72, 129.81, and 129.82) to provide PA DEP with 
    identification and emission information by May 16, 1994. Covered 
    sources must submit a written RACT proposal to PA DEP by July 15, 1994. 
    PA DEP is to approve, deny or modify each RACT proposal. Upon 
    notification of approval, covered sources must implement RACT ``as 
    expeditiously as practicable'' but no later than May 31, 1995.
        Following implementation of RACT, certain large combustion units 
    are required to determine emission rates through continuous emissions 
    monitoring or a PA DEP approved source testing or modeling program. 25 
    Pa. Code 129.91(d) provides for the case-by-case RACT determinations to 
    be approved through the SIP revision process.
        Chapter 129.92--Chapter 129.92 details the information required in 
    the RACT proposals submitted by these major VOC and NOX 
    sources. Except for sources that opt for the presumptive RACT emission 
    limitations, the proposal must include a RACT analysis. This RACT 
    analysis must rank the available control options in descending order of 
    control effectiveness, provide information on baseline emissions and 
    emission reductions, and evaluate the cost effectiveness of each 
    control option. The Pennsylvania regulation requires that, at a 
    minimum, the cost effectiveness portion of the RACT analysis use the 
    procedures in ``OAQPS Control Cost Manual'' (Fourth Edition), EPA 450/
    3-90-006, January 1990 and subsequent revisions. This provision clearly 
    requires sources to provide relevant information in their RACT 
    proposal, including cost factors, but does not limit the consideration 
    of factors that determine what control option is chosen as RACT to cost 
    factors alone, nor does it limit the method of evaluating costs to 
    those found in the OAQPS Control Cost Manual. The Pennsylvania generic 
    regulation properly does not specify a dollar per ton figure as a 
    threshold over which control options are ineligible for consideration 
    from RACT.
        Chapter 129.93 (Presumptive NOX RACT requirements)--
    Chapter 129.93 provides certain major NOX sources with an 
    alternative to case-by-case RACT determinations. Chapter 129.93(b)(1) 
    specifies that presumptive RACT for coal-fired combustion units with a 
    rated heat input equal to or greater than 100 million British Thermal 
    Units per hour (mmBTU/hr) is the installation of low NOX 
    burners with separate overfired air. Chapter 129.93(b)(2) provides that 
    presumptive RACT for combustion units with a rated heat input between 
    20 mmBTU/hr and 50 mmBTU/hr is an annual adjustment or tune-up of the 
    combustion process. Chapter 129.93(b) (4) and (5) provides that owners 
    and operators of oil, gas and combination oil/gas-fired units are 
    required to keep records of fuel certification and to perform annual 
    adjustment in accordance with the EPA document ``Combustion Efficiency 
    Optimization Manual for Operators of Oil and Gas-Fired Boilers'', 
    September 1983, EPA-340/1-83-023, or equivalent PA DEP procedures.
        For the following groups of sources, Pennsylvania proposes that 
    RACT is the installation, maintenance and operation of sources in 
    accordance with manufacturer's specifications. These groups are listed 
    in Chapter 129.93(c) (1) through (7), as follows: (1) Boilers and 
    combustion sources with individual rated gross heat inputs of less than 
    20 mmBTU/hr; (2) combustion turbines with individual heat input rates 
    of less than 25 mmBTU/hr, which are used for natural gas distribution; 
    (3) internal combustion engines rated at less than 500 brake horsepower 
    (bhp), which are set and retarded 4 deg. relative to standard timing; 
    (4) incinerators or thermal/catalytic oxidizers used primarily for air 
    pollution control; and (5) any fuel burning equipment, gas turbine or 
    internal combustion engine with an annual capacity factor of less than 
    5%, or an emergency standby engine operating less than 500 hours in a 
    consecutive 12-month period.
        Chapter 129.94 (NOX Averaging)--Chapter 129.94 permits 
    major NOX sources to submit a RACT proposal that includes 
    averaging of emissions at two or more facilities provided several 
    conditions are met and the proposal is approved by EPA as a revision to 
    the Pennsylvania SIP. Among other conditions, the averaging scheme must 
    require emission caps and enforceable emission rates at each 
    participating source, telemetry links between the participating 
    sources, and an up-front agreement that a violation at one of the 
    participating sources is considered a violation at all of the 
    participating sources.
        Chapter 129.95--Chapter 129.95 is the record keeping provision that 
    is applicable to all VOC and NOX sources in the 
    Commonwealth. This section clearly requires that records be kept for a 
    period of at least 2 years and that such records must provide 
    sufficient data and calculations to demonstrate compliance with the 
    applicable RACT requirements. This section also requires that sources 
    of VOC and NOX that claim exemptions from the RACT 
    requirement maintain records that clearly demonstrate their exempt 
    status.
    
    EPA's Analysis of the SIP Revision
    
        RACT Proposal Requirements--Chapter 129.92 requires sources to
    
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    provide information on the emission reduction, technological 
    feasibility, and cost of control options. This requirement is 
    consistent with EPA's definition of RACT as the lowest emission 
    limitation that a source is capable of meeting by the application of 
    control technology that is reasonably available considering 
    technological and economic feasibility. See NOX Supplement 
    to the General Preamble on Title I, 57 FR 55620, 55622-23 (Nov. 25, 
    1992); CTG Supplement to the General Preamble on SIP revisions to 
    Nonattainment Areas, 44 FR 53761, 53762 (Sept. 17, 1979); ``Guidance 
    for Determining Acceptability of SIP regulations in Nonattainment 
    Areas,'' Memorandum of Roger Strelow, Assistant Administrator for Air 
    and Waste Management (Dec. 9, 1976).
        Generic VOC and NOX RACT Requirements--Chapter 129.91 
    contains Pennsylvania's generic, or ``case-by-case,'' RACT provisions. 
    Under this approach, the applicable sources are not subject to 
    specific, ``up-front'' (i.e. immediately ascertainable) emission 
    limitations. Instead, the regulations establish a process for the state 
    to review and approve individual RACT emission limitations proposed by 
    the sources, which are then to be submitted to EPA as SIP revisions. 
    Since the wood furniture emission standards contained in the existing 
    Pennsylvania regulation have not been federally approved, Chapter 
    129.91 states that wood furniture sources are required to comply with 
    the RACT requirements of Chapter 129.91.
        Pennsylvania believes that the case-by-case approach is consistent 
    with the RACT requirements of the Clean Air Act. Pennsylvania notes 
    that section 172(c)(1) requires that nonattainment plan provisions 
    ``shall provide for the implementation of [RACT] as expeditiously as 
    practicable * * *.'' Section 182(b)(2) provides that SIP submittals for 
    moderate ozone nonattainment areas shall ``include provisions to 
    require implementation of [RACT],'' and further requires that the 
    submittals ``provide for the implementation of required measures as 
    expeditiously as practicable, but no later than May 31, 1995.'' The 
    Commonwealth believes that the design, age, and nature of the 
    industrial processes of the individual sources, for which RACT must be 
    required, vary so widely that case-by-case RACT determinations are 
    warranted, as no ``across the board'' emission limitations could be 
    reasonably imposed as satisfying the definition of RACT, namely the 
    lowest emission limitation that a source is capable of meeting 
    considering technological and economic feasibility.
        However, EPA's interpretation of the statutory requirements, and 
    the one that accords with EPA's longstanding definition of RACT, is 
    that a state submittal of a SIP revision to satisfy the Act's 
    requirements for RACT must include specific, up-front emission 
    limitations for all covered sources, rather than a process leading to 
    the development of emission limitations at some later date. States are 
    required to establish these specific, up-front emission limitations and 
    submit them as SIP revisions to EPA for approval as RACT. EPA evaluates 
    these SIP submittals to determine whether or not the emission 
    limitations imposed by the state satisfy the definition of RACT for the 
    covered sources. EPA defines RACT as the lowest emission limitation 
    that a source is capable of meeting by the application of control 
    technology that is reasonably available considering technological and 
    economic feasibility. Section 302 of the Act in turn defines ``emission 
    limitation'' as a ``requirement * * * which limits the quantity, rate 
    or concentration of air pollutants on a continuous basis, * * *, and 
    any design, equipment, work practice or operational standard 
    promulgated under this chapter.'' Process-oriented generic regulations, 
    such as those submitted by Pennsylvania, which do not include specific 
    and ascertainable emission limitations, do not by themselves provide 
    standards for EPA to approve or disapprove as satisfying the definition 
    of RACT. Therefore, the Act's RACT requirements are satisfied only 
    after the specific limitations imposed by the Commonwealth on its major 
    sources have been submitted to EPA as SIP revisions and approved by EPA 
    as RACT for the subject sources.
        Furthermore, EPA believes that the May 31, 1995 RACT implementation 
    deadline specified in section 182(b)(2) of the Act does not authorize 
    states to delay the promulgation of RACT standards beyond the SIP 
    submittal deadline of November 15, 1992. EPA believes that the extended 
    implementation deadline was designed to give sources an adequate 
    opportunity to understand and comply with newly-promulgated RACT 
    standards, and to give EPA the opportunity to review RACT SIP 
    submittals prior to the implementation date. Under its generic case-by-
    case RACT approach, the Commonwealth was not in a position to submit 
    case-by-case RACT emission limitations as SIP revisions until some 
    months after July 15, 1994 (the date that sources are required to 
    submit RACT proposals to PA DEP). While Pennsylvania has made 
    substantial progress in the submittal of its case-by-case RACT 
    proposals, it has not yet submitted all of the case-by-case RACT 
    determinations required by its generic RACT regulation to EPA as 
    source-specific SIP revisions.
        As mentioned above, Pennsylvania's generic RACT regulation outlines 
    a process that must be followed by those sources choosing to have RACT 
    determined on a case-by-case basis. Included in this process outlined 
    by the Pennsylvania regulation is a reference to the OAQPS Control Cost 
    Manual and its subsequent amendments. Since the current OAQPS Control 
    Cost Manual does not contain any specific chapters on NOX 
    control costs, more appropriate methods to determine estimated costs 
    for NOX controls must be used. The cost analysis methodology 
    used to implement the Act's Acid Rain program is certainly a candidate. 
    Because States and EPA do not have complete knowledge of any individual 
    company's overall financial picture and must rely on the cost 
    calculations and financial information submitted that company in making 
    a source-specific RACT determination when considering the calculated 
    cost (i.e., in terms of dollars per ton), judgement must be exercised 
    so as to not overemphasize it as a factor in determination of economic 
    feasibility or in the overall determination of RACT. The calculated 
    costs submitted to the Commonwealth, and subsequently to EPA by PA DEP 
    in support of the source-specific SIP revisions of RACT proposals, can 
    be only one of the factors considered in the case-by-case 
    determinations as to what RACT is for those sources. Using cost as one 
    of many variables considered in determining RACT is consistent with 
    both the Pennsylvania regulation and with EPA's policies and guidance 
    on determining RACT.
        Separate from its submittal of the generic RACT regulation to EPA, 
    PA DEP has prepared its own guidance for industrial sources requiring 
    case-by-case RACT determinations. Pennsylvania has stated that the 
    intent of its guidance is to facilitate the approval of case-by-case 
    RACT. EPA's review and approval of Pennsylvania's case-by-case RACT 
    proposals, when they are duly submitted as SIP revisions, is based upon 
    the information submitted for the official record and upon whether 
    these proposals meet the criteria for technical and economic 
    feasibility pursuant to EPA's and the Commonwealth's definition of 
    RACT. Guidance and procedures that include such principles as 
    establishing a maximum dollar per ton threshold for use in the
    
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    determination of all case-by-case RACTs or establishing a RACT emission 
    limit based on the median of monitored data plus nearly three standard 
    deviations, are examples of procedures that EPA finds inconsistent with 
    the definition of RACT.
        Because Pennsylvania's SIP revision submittal requesting approval 
    of the generic VOC and NOX RACT regulations, itself, does 
    not reference or contain such guidance or procedures, EPA is able to 
    propose conditional limited approval of the Pennsylvania generic RACT 
    regulations.
        Presumptive NOX RACT Requirements--Pennsylvania gives 
    major NOX sources the option of complying with the 
    ``presumptive RACT emission limitations'' of Chapter 129.93 as an 
    alternative to developing and implementing a RACT limit on a case-by-
    case basis. The proposed presumptive RACT in Chapter 129.93(c)(3) for 
    internal combustion engines, which requires the engines to be set and 
    maintained at 4 deg. retarded relative to standard timing, is 
    acceptable to EPA.
        EPA has identified deficiencies in the other presumptive RACT 
    emission limitations of Chapter 129.93. For coal-fired combustion units 
    (100 mmBTU/hr or greater), Chapter 129.93(b)(1) provides that 
    presumptive RACT is low NOX burners with separate overfired 
    air control technology. Although EPA accepts Pennsylvania's 
    determination that this technology constitutes RACT for this source 
    category, the agency believes it is necessary and appropriate to 
    quantify the emission reduction required to be obtained through this 
    technology. While RACT for these types of units may specify the 
    installation of low NOX burners and separate overfired air, 
    EPA believes that RACT for these sources must include the requirement 
    to meet specific numeric emission limitations. Installation of low 
    NOX burners and separate overfired air does not ensure that 
    these controls will be operated in a manner that minimizes 
    NOX emissions. EPA cannot agree that installation of low 
    NOX burners and separate overfired air alone represents 
    RACT. Pennsylvania may correct this deficiency with an additional SIP 
    submittal including enforceable, numerical emission limitations to be 
    met through the installation of the low NOX burner and 
    separate overfired air control technology for each of those units 
    subject to this provision of the Pennsylvania regulation. Coal-fired 
    combustion units greater than or equal to 100 mmBTU/hr represent a 
    significant portion of the NOX emissions inventory in 
    Pennsylvania. Establishing specific emission limitations for these 
    sources in the SIP will allow Pennsylvania to quantify and rely on the 
    expected emission reductions from these sources for air quality 
    planning purposes.
        The proposed presumptive RACT determinations contained in Chapters 
    129.93(b)(2) and 129.93(c) (1), (2), (4), and (5) have been found to be 
    acceptable to EPA because Pennsylvania has provided information stating 
    that there are no other technically or economically feasible controls. 
    The emissions from these sources, in total, represent less than 5% of 
    the total 1990 NOX emissions inventory. It is not 
    acceptable, however, for the RACT to be defined, without further 
    elaboration, as ``installation, maintenance and operation of the source 
    in accordance with manufacturer's specifications.'' Once approved by 
    EPA, a RACT standard cannot be relaxed by action of a private party. 
    Such a result might occur if RACT is defined simply as compliance with 
    manufacturer's specifications. Pennsylvania must correct the 
    deficiencies in Chapter 129.93(b)(2), (c) (1), (2), (4), and (5) by 
    removing the ability of a private party to relax unilaterally a RACT 
    standard by specifying that, in addition to being operated and 
    maintained in accordance with a manufacturer's specifications, the 
    equipment will also be maintained in accordance with good air pollution 
    control practices. Pennsylvania has agreed to correct this deficiency 
    in its regulation through additional language in each of the individual 
    source permits where this is determined to be RACT. This additional 
    language requires that these sources operate and maintain the emission 
    units in accordance with good air pollution control practices and 
    manufacturer's specifications. EPA has determined that Pennsylvania's 
    solution of adding the ``good air pollution control practice'' language 
    to the individual source permits is a practical and acceptable 
    alternative to revising the Pennsylvania RACT regulations for these 
    sources, Chapter 129.93. EPA has determined that Pennsylvania's 
    alternative to require these sources to operate and maintain the 
    emission units in accordance with good air pollution control practices 
    and manufacturer's specifications is acceptable. EPA interprets ``good 
    air pollution control practices'' to mean only those technically 
    supportable operation and maintenance requirements that result in the 
    equipment being operated, maintained and repaired in a manner that 
    achieves the minimization of NOX emissions.
        NOX Averaging Provision--The NOX averaging 
    provision in Chapter 129.94 is acceptable to EPA since there is the 
    opportunity for further refinement of the averaging scheme conditions 
    and assurance of enforceability, when the individual averaging 
    proposals are submitted to EPA as SIP revisions.
        Record keeping--The record keeping requirements of Chapter 129.95 
    are consistent with EPA requirements.
    
    Terms of and Rationale for Conditional Approval
    
        EPA's proposal includes proposed conditional approval of 
    Pennsylvania's VOC and NOX regulations SIP revision, based 
    upon the Commonwealth's commitment to submit for approval into the SIP, 
    the case-by-case RACT proposals for all sources subject to the RACT 
    requirements currently known to PA DEP. The Commonwealth submitted this 
    commitment in a letter to EPA dated September 23, 1996. The case-by-
    case RACT proposals must be submitted by a date certain that is no 
    later than 12 months after the effective date of EPA's final 
    conditional approval.
        Therefore, to fulfill the condition of this approval the 
    Commonwealth must, by no later than 12 months after the effective date 
    of EPA's final conditional approval of the generic VOC and 
    NOX RACT regulations SIP: (1) Certify that it has submitted 
    case-by-case RACT proposals for all sources subject to the RACT 
    requirements currently known to PA DEP; or (2) demonstrate that the 
    emissions from any remaining subject sources represent a de minimis 
    level of emissions, as defined below. Once EPA has determined that the 
    Commonwealth has satisfied this condition, EPA shall remove the 
    conditional nature of its approval and the Pennsylvania VOC and 
    NOX regulations SIP revision will, at that time, retain 
    limited approval status. Should the Commonwealth fail to meet the 
    condition specified above, the final conditional limited approval of 
    the Pennsylvania VOC and NOX RACT regulation SIP revision 
    shall convert to a disapproval.
    
    Definition of De Minimis
    
        For states with a generic VOC RACT regulation intended to regulate 
    all non-Control Technology Guideline (non-CTG) VOC sources, de minimis 
    is determined by comparing the total 1990 emissions of all non-CTG VOC 
    major sources in the Commonwealth, where a CTG had not been issued at 
    the time of the state submittal of the generic VOC RACT regulation with 
    the total emissions of those non-CTG VOC sources subject to the generic 
    RACT where these source-specific RACTs have
    
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    not yet been approved by EPA. For example, while not applicable to the 
    Pennsylvania generic RACT submittal, since EPA has issued CTGs for ship 
    building and repair and wood furniture coatings in August 1996 and May 
    1996, respectively, EPA's de minimis procedure for a state submittal 
    subsequent August 1996 would require that all RACTs for those CTG 
    category sources and for shipbuilding and repair and wood furniture 
    coating be approved and that the de minimis procedure as described in 
    this notice apply only to those VOC emissions from sources that are 
    neither CTG sources or shipbuilding or wood furniture sources. The VOC 
    emissions from these remaining major sources are still subject to the 
    RACT requirement but EPA can lift the conditional status of its 
    approval of the state generic RACT rule prior to SIP approval for those 
    sources that represent a de minimis amount of VOC emissions. In 
    Pennsylvania's case, the generic RACT rule was submitted in February 
    1994. The post-1990 CTG issued prior to DEP's submittal is Synthetic 
    Organic Chemical Manufacturing Industry (SOCMI) Distillation and 
    Reactor Processes. Therefore, the VOC emissions from this source 
    category are excluded from the pool of VOC total emissions used to 
    determine whether the amount of emissions remaining is de minimis.
        For Pennsylvania, de minimis is determined by comparing the total 
    1990 emissions of all NOX major sources in the Commonwealth, 
    subtracting those NOX emissions attributed to utility 
    boilers and then comparing this figure with those NOX 
    sources that are subject to the RACT requirement but where these 
    source-specific RACTs have not yet been approved by EPA. EPA is 
    specifically targeting utility boiler emissions and is requiring these 
    emissions to be subtracted from the total NOX inventory for 
    this exercise because, while there has not been a CTG issued for them, 
    there is an Alternative Control Technology (ACT) guidance document, 
    guidance issued through the NOX Supplement to the Title I 
    General Preamble (57 FR 55620), and other non-EPA sources of 
    information on reasonably available controls for these types of 
    NOX sources.
        In addition, unlike any single source category in the non-CTG VOC 
    emissions inventory, utility boiler emissions represent a very large 
    part of the NOX emissions inventory. For this reason, the 
    case-by-case RACT proposals for all subject utility boilers must be 
    submitted by the Commonwealth as SIP revisions within 12 months of the 
    effective date of the final conditional limited approval of the generic 
    VOC and NOX regulations SIP revision, and any de minimis 
    demonstration must be baselined from the amount of NOX 
    emissions from all major sources required to implement RACT minus the 
    emissions from utility boilers.
        Even after the conditional status of EPA's approval of the 
    Pennsylvania RACT regulation is removed, PA DEP must still continue to 
    submit, and have EPA approve into the Pennsylvania SIP, RACT 
    requirements for the remaining de minimis amount of emissions. 
    Therefore, removal of the conditional status to limited approval status 
    in no way changes PA DEP's statutory obligation to implement RACT for 
    all major sources.
    
    Rationale for Also Proposing Limited Approval
    
        The current Pennsylvania SIP does not contain a general requirement 
    that all major sources must implement RACT. While EPA does not believe 
    that the Pennsylvania generic VOC and NOX RACT regulation 
    satisfies the Act's RACT requirements as discussed previously in this 
    notice, EPA is also proposing limited approval of the Pennsylvania 
    generic RACT regulation on the basis that it strengthens the 
    Pennsylvania SIP. Once EPA has approved all of the case-by-case RACT 
    proposals as SIP revisions, the limited approval will convert to full 
    approval.
        EPA's review of this material indicates that proposing conditional 
    limited approval is warranted. EPA is soliciting public comments on the 
    issues discussed in this notice. These comments will be considered 
    before taking final action. Interested parties may participate in the 
    federal rulemaking procedure by submitting written comments to the EPA 
    Regional office listed in the ADDRESSES section of this notice. Further 
    discussion and details of this rulemaking action can be found in the 
    accompanying technical support document (TSD). Copies of the TSD may be 
    obtained from that same EPA Regional office.
    
    Proposed Action
    
        EPA is proposing conditional limited approval of the Pennsylvania 
    VOC and NOx RACT regulation, Chapter 129.91 through 129.95. 
    EPA is proposing conditional limited approval of this SIP revision 
    based upon the commitment made by Pennsylvania to submit all the case-
    by-case RACT proposals for sources it is currently aware of as being 
    subject to the major source RACT regulations. On September 23, 1996, 
    Pennsylvania submitted a letter to EPA committing to: (1) Complete 
    submission of the SIP revisions required by Chapter 129.91(h) 
    containing RACT determinations for the major VOC and NOx 
    sources in the Commonwealth that are subject to the RACT rule, or for 
    sources that are subject to the RACT rule but fail to submit a RACT 
    plan, PA DEP will initiate appropriate enforcement action to obtain 
    compliance with the rule; and (2) provide a written statement to EPA 
    that, to the best of its knowledge, it has completed submission of the 
    SIP revisions described above within one year of the effective date of 
    the final conditional limited approval of the Pennsylvania generic RACT 
    rule.
        Nothing in this action should be construed as permitting or 
    allowing or establishing a precedent for any future request for 
    revision to any SIP. Each request for revision to any SIP shall be 
    considered separately in light of specific technical, economic, and 
    environmental factors and in relation to relevant statutory and 
    regulatory requirements.
        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. Approvals and conditional approvals of SIP submittals 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. Therefore, because this approval of this revision to the 
    federal SIP would not impose any new requirements, EPA certifies that 
    it would 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 flexibility analysis would constitute federal 
    inquiry into the economic reasonableness of state action. The Clean Air 
    Act forbids EPA to base its actions concerning SIPs on such grounds. 
    Union Electric Co. v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 
    7410(a)(2).
        Today's actions are proposal actions upon which EPA is soliciting 
    comments. In the unlikely event that Pennsylvania were to fail to meet 
    its commitment and did not satisfy the condition described herein, the 
    conditional limited approval would be converted to a disapproval. Such 
    conversion would trigger the 18-month clock for the mandatory 
    imposition of
    
    [[Page 43139]]
    
    sanctions under section 179(a) of the CAA and 40 CFR 52.31, EPA's 
    sanction rule. If the conditional approval is converted to a 
    disapproval under section 110(k), based on the State's failure to meet 
    the commitment, it will not affect any existing state requirements 
    applicable to small entities. Federal disapproval of the state 
    submittal would not affect its state-enforceability. Moreover, EPA's 
    disapproval of the submittal would not impose a new federal 
    requirement. Therefore, EPA certifies that any such disapproval action 
    would not have a significant impact on a substantial number of small 
    entities because it would not remove existing requirements nor would it 
    substitute a new federal requirement.
        Under Section 202 of the Unfunded Mandates Reform Act of 1995, 
    signed into law on March 22, 1995, EPA must prepare a budgetary impact 
    statement to accompany any proposed or final regulation 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 
    of the Unfunded Mandates Act 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 approval action proposed 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 proposes to 
    approve 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.
        The Office of Management and Budget (OMB) has exempted this 
    regulatory action from E.O. 12866 review.
        The Administrator's decision to approve or disapprove the SIP 
    revision, pertaining to the Pennsylvania generic VOC and NOx 
    RACT rule, will be based on whether it meets the requirements of 
    section 110(a)(2) (A)-(K) and part D of the Clean Air Act, as amended, 
    and EPA regulations in 40 CFR Part 51.
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Hydrocarbons, 
    Nitrogen dioxide, Ozone.
    
        Authority: 42 U.S.C. 7401-7671q.
    
        Dated: August 4, 1997.
    Marcia E. Mulkey,
    Acting Regional Administrator, Region III.
    [FR Doc. 97-21269 Filed 8-11-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
08/12/1997
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
97-21269
Dates:
Comments must be received on or before September 11, 1997.
Pages:
43134-43139 (6 pages)
Docket Numbers:
PA 041-4013, FRL-5873-9
PDF File:
97-21269.pdf
CFR: (1)
40 CFR 52