

[Federal Register: November 9, 2006 (Volume 71, Number 217)]
[Proposed Rules]               
[Page 66063-66092]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09no06-25]                         


[[Page 66063]]

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Part IV





Environmental Protection Agency





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40 CFR Part 63



 National Emission Standards for Hazardous Air Pollutants for Source 
Categories: Gasoline Distribution Bulk Terminals, Bulk Plants, Pipeline 
Facilities, and Gasoline Dispensing Facilities; Proposed Rule


[[Page 66064]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 63

[EPA-HQ-OAR-2006-0406, FRL-8240-1]
RIN 2060-AM74

 
National Emission Standards for Hazardous Air Pollutants for 
Source Categories: Gasoline Distribution Bulk Terminals, Bulk Plants, 
Pipeline Facilities, and Gasoline Dispensing Facilities

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: This action proposes national emission standards for hazardous 
air pollutants for certain area source facilities. Specifically, this 
proposal sets forth two regulatory alternatives. The first alternative 
(Regulatory Alternative 1) proposes emission standards for bulk 
gasoline terminals, pipeline facilities, and bulk gasoline plants. The 
second alternative (Regulatory Alternative 2) is identical to the first 
alternative, except that it also proposes emission standards for 
gasoline dispensing facilities. We are proposing these emission 
standards for hazardous air pollutants pursuant to Clean Air Act 
section 112(c)(3) and 112(d)(5). This action also announces that we are 
not regulating the above-noted facilities under Clean Air Act section 
112(c)(6).
    We estimate that the proposed standards would result in an annual 
reduction of about 3,300 and 3,400 tons of hazardous air pollutant 
emissions (including about 120 and 125 tons of benzene), and about 
45,000 and 46,200 tons of volatile organic compound emissions for the 
proposed Regulatory Alternatives 1 and 2, respectively. This represents 
about a 9 and 10 percent reduction of emissions from area sources in 
the gasoline distribution source category for the proposed Regulatory 
Alternatives 1 and 2, respectively.

DATES: Comments. Comments must be received on or before January 8, 
2007. Under the Paperwork Reduction Act, comments on the information 
collection provisions must be received by the Office of Management and 
Budget (OMB) on or before December 11, 2006.
    Public Hearing. If anyone contacts EPA requesting to speak at a 
public hearing by November 29, 2006, a public hearing will be held on 
December 7, 2006.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2006-0406, by one of the following methods:
     http://www.regulations.gov. Follow the on-line 

instructions for submitting comments.
     E-mail: a-and-r-docket@epa.gov.
     Fax: (202) 566-1741.
     Mail: By U.S. Postal Service send your comments to: Air 
and Radiation Docket, EPA, Mailcode: 6102T, 1200 Pennsylvania Ave., NW, 
Washington, DC 20460. Please include a total of two copies. In 
addition, please mail a copy of your comments on the information 
collection provisions to the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attn: Desk Officer for EPA, 
725 17th St. NW., Washington, DC 20503.
     Hand Delivery: In person or by courier, deliver your 
comments to: Air and Radiation Docket, EPA, 1301 Constitution Ave., NW, 
Room B-102, Washington, DC 20004. Such deliveries are only accepted 
during the Docket's normal hours of operation, and special arrangements 
should be made for deliveries of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2006-0406. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 

provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through http://www.regulations.gov 

or e-mail. The http://www.regulations.gov Web site is an ``anonymous access'' 

system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA without going through 
http://www.regulations.gov, your e-mail address will be automatically captured 

and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, EPA recommends that you include your name and other contact 
information in the body of your comment and with any disk or CD-ROM you 
submit. If EPA cannot read your comment due to technical difficulties 
and cannot contact you for clarification, EPA may not be able to 
consider your comment. Electronic files should avoid the use of special 
characters, any form of encryption, and be free of any defects or 
viruses. For additional information about EPA's public docket, visit 
the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm
.

    Docket: All documents in the docket are listed in the 
http://www.regulations.gov index. Although listed in the index, some 

information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hard copy at the Air and Radiation 

Docket, EPA/DC, EPA West Building, Room B-102, 1301 Constitution Ave., 
NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 
4:30 p.m., Monday through Friday, excluding legal holidays. The 
telephone number for the Public Reading Room is (202) 566-1744, and the 
telephone number for the Air and Radiation Docket is (202) 566-1742.


    Note: The EPA Docket Center suffered damage due to flooding 
during the last week of June 2006. The Docket Center is continuing 
to operate. However, during the cleanup, there will be temporary 
changes to Docket Center telephone numbers, addresses, and hours of 
operation for people who wish to make hand deliveries or visit the 
Public Reading Room to view documents. Consult EPA's Federal 
Register notice at 71 FR 38147 (July 5, 2006) or the EPA Web site at 
http://www.epa.gov/epahome/dockets.htm for current information on 

docket operations, locations, and telephone numbers. The Docket 
Center's mailing address for U.S. mail and the procedure for 
submitting comments to http://www.regulations.gov are not affected by the 

flooding and will remain the same.


FOR FURTHER INFORMATION CONTACT: General and Technical Information: Mr. 
Stephen Shedd, Office of Air Quality Planning and Standards, Sector 
Policies and Programs Division, Coatings and Chemicals Group (E143-01), 
EPA, Research Triangle Park, NC 27711, telephone (919) 541-5397, 
facsimile number (919) 685-3195, electronic mail (e-mail) address: 
shedd.steve@epa.gov.

    Economic Analysis Information: Mr. Art Rios, Office of Air Quality 
Planning and Standards, Health and Environmental Impacts Division, Air 
Benefit and Cost Group (C339-01), EPA, Research Triangle Park, NC 
27711, telephone (919) 541-4883, facsimile number (919) 541-0839, 
electronic mail (e-mail) address: Rios.Arturo@epamail.epa.gov.

SUPPLEMENTARY INFORMATION:
    Regulated Entities. The regulated categories and entities affected 
by these proposed national emission standards include:

[[Page 66065]]



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                                                 Examples of regulated
             Category               NAICS \a\           entities
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Industry..........................     324110  Operations at area
                                       493190   sources that transfer
                                       486910   and store gasoline,
                                       424710   including bulk
                                       447110   terminals, bulk plants,
                                       447190   pipeline facilities, and
                                                gasoline dispensing
                                                facilities.
Federal/State/local/tribal
 governments.
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\a\ North American Industry Classification System.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be affected by the 
national emission standards. To determine whether your facility would 
be affected by the national emission standards, you should examine the 
applicability criteria in this proposed rule. If you have any questions 
regarding the applicability of the national emission standards to a 
particular entity, consult either the air permit authority for the 
entity or your EPA regional representative as listed in 40 CFR 63.13.
    Worldwide Web (WWW). In addition to being available in the docket, 
an electronic copy of this proposed rule is also available on the WWW 
through the Technology Transfer Network (TTN). Following signature, a 
copy of this proposed rule will be posted on the TTN's policy and 
guidance page for newly proposed or promulgated rules at the following 
address: http://www.epa.gov/ttn/oarpg/. The TTN provides information 

and technology exchange in various areas of air pollution control.
    Public Hearing. If a public hearing is held, it will begin at 10 
a.m. and will be held at the EPA Facility Complex located at 109 T.W. 
Alexander Drive, Research Triangle Park, NC, or at an alternate 
facility nearby. Persons interested in presenting oral testimony or 
inquiring as to whether a public hearing is to be held must contact Mr. 
Stephen Shedd, listed in the FOR FURTHER INFORMATION CONTACT section, 
at least 2 days in advance of the hearing. The public hearing will 
provide interested parties the opportunity to present data, views, or 
arguments concerning the proposed action.
    Outline. The information presented in this preamble is organized as 
follows:

I. Background
II. Summary of Proposed Rule for Area Sources
    A. What source category would be affected by this proposed rule?
    B. What would be the affected sources and emission points?
    C. What would be the emission limits, equipment standards, and 
work practice standards?
    D. What would be the testing and initial compliance 
requirements?
    E. What would be the notification, recordkeeping, and reporting 
requirements?
III. Not Regulating This Source Category Under CAA Section 112(c)(6)
IV. Rationale for This Proposed Rule
    A. How did we select the source category?
    B. How did we select the affected sources and emission points?
    C. How did we determine the level of this proposed rule?
    D. How did we select the format for this proposed rule?
    E. How did we select the proposed testing and monitoring 
requirements?
    F. How did we select the proposed notification, recordkeeping, 
and reporting requirements?
    G. How did we decide to exempt gasoline distribution area 
sources from the CAA title V permit requirements?
    H. How did we determine the compliance date for existing 
facilities?
V. Summary of Environmental, Energy, Cost, and Economic Impacts
    A. What are the air impacts?
    B. What are the cost impacts?
    C. What are the economic impacts?
    D. What are the non-air environmental and energy impacts?
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health and Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act

I. Background

    Section 112 of the Clean Air Act (CAA) generally regulates major 
source facilities separately from area source facilities. On December 
14, 1994 (59 FR 64303) we promulgated national emission standards for 
hazardous air pollutants (NESHAP) for major source facilities within 
the gasoline distribution source category (see 40 CFR part 63, subpart 
R (Major Source NESHAP)). The Major Source NESHAP imposed control 
requirements on sources within the source category that met the 
definition of major sources, e.g., a source that emits 10 tons per year 
or more of any individual hazardous air pollutant (HAP) or 25 tons per 
year or more of any combination of HAP. Gasoline vapors normally 
contain nine HAP: benzene, ethylbenzene, hexane, toluene, xylenes, 
isooctane, naphthalene, cumene, and methyl tert-butyl ether. Some 
gasoline distribution terminals and pipeline facilities were found to 
be major sources by themselves or to be located at major sources. 
Gasoline storage tanks at bulk terminals and pipeline breakout 
stations, loading racks at bulk terminals, vapor leaks from gasoline 
cargo tanks, and equipment components in gasoline service were emission 
sources that were regulated under the Major Source NESHAP. Area sources 
of HAP emissions within the source category (many bulk terminals and 
pipeline breakout stations and all pipeline pumping stations, bulk 
plants, and gasoline dispensing facilities) were not required to 
implement controls under the Major Source NESHAP.
    CAA Section 112(k)(3)(B) requires EPA to identify not less than 30 
HAP which, as the result of emissions from area sources, present the 
greatest threat to public health in the largest number of urban areas, 
and Section 112(c)(3) requires us to list sufficient area source 
categories or subcategories to ensure that emissions representing 90 
percent of the 30 listed HAP (area source HAP) are subject to 
regulation under section 112(d) of the CAA. The Urban Air Toxics 
Strategy (Strategy), issued on July 19, 1999 (64 FR 38706) included a 
list of 30 area source HAP and a list of area source categories 
emitting the listed HAP.
    CAA Section 112(d) standards include new and existing source 
maximum achievable control technology (MACT) standards, health 
threshold standards, and generally available control technology (GACT)/
management practices standards for area sources. The standards that are 
the subject of this proposed rule are based on GACT pursuant to CAA 
section 112(d)(5).

[[Page 66066]]

    Gasoline vapors contain 2 HAP (benzene and ethylene dichloride 
(EDC)) included among the 33 HAP listed under the Strategy. Gasoline 
distribution (Stage I) was listed in the Strategy because these 
facilities contributed approximately 36 percent of the national urban 
emissions of benzene and 2 percent of the EDC from stationary sources 
at area sources. Today we are proposing to add a subpart to 40 CFR part 
63 to address gasoline distribution area sources and to fulfill our 
obligation under CAA section 112(c)(3) to regulate stationary sources 
of benzene. EDC emissions have already been controlled under the lead 
phase-down provisions of section 218 of the CAA.
    CAA Section 112(c)(6) requires us to list those source categories 
emitting at least 90 percent of the aggregate emissions of each of 7 
specific pollutants and to develop MACT or health threshold standards 
to reduce the emissions of these pollutants. On November 8, 2002 (67 FR 
68124), we revised the list of area sources under CAA section 112(c)(6) 
and added gasoline distribution to control emissions of polycyclic 
organic matter (POM), one of the CAA section 112(c)(6) pollutants. As 
discussed later in this action, we have concluded that it is not 
necessary to regulate the gasoline distribution source category under 
CAA section 112(c)(6).

II. Summary of Proposed Rule for Area Sources

    We are proposing and taking public comment on two regulatory 
alternatives. The first alternative (Regulatory Alternative 1) requires 
controls at bulk gasoline distribution facilities, which include bulk 
gasoline terminals, pipeline facilities, and bulk gasoline plants. The 
second alternative (Regulatory Alternative 2) requires controls at both 
bulk gasoline distribution facilities and gasoline dispensing 
facilities.

A. What source category would be affected by this proposed rule?

    The source category that would be affected by this proposed rule is 
gasoline distribution (Stage I) area source facilities. This source 
category includes area source facilities that perform the operations 
necessary to distribute gasoline, beginning at the point the gasoline 
leaves the refinery production process and ending when the gasoline is 
loaded into the storage tanks at gasoline dispensing facilities (these 
operations are referred to as ``Stage I'' distribution). The five types 
of facilities that make up this distribution chain are identified in 
the following paragraphs. Vehicle refueling (Stage II distribution) is 
not covered by this proposed rule because, as stated in the Strategy, 
we believe this is consistent with Congress' intent to regulate these 
emissions through CAA sections 182(b)(3) and 202(a)(6).
    Bulk gasoline terminals are large storage facilities that receive 
gasoline directly from the refineries via pipelines, barges, or tankers 
(or are co-located at refineries). Gasoline from the bulk terminal 
storage tanks is loaded into cargo tanks (tank trucks or railcars) for 
distribution to smaller, intermediate storage facilities (bulk plants) 
or directly to gasoline dispensing facilities (retail public service 
stations and private service stations).
    There are two types of pipeline facilities found at various 
intervals along gasoline distribution pipelines. Pipeline breakout 
stations receive gasoline via pipelines, store it in storage tanks, and 
re-inject it into pipelines as needed to meet the demand from 
downstream facilities. Pipeline pumping stations are located along the 
entire length of a pipeline at about 40 mile intervals. Their purpose 
is to provide the extra ``push'' needed to move the product through the 
pipeline. They do not normally have gasoline storage capability.
    Bulk gasoline plants are intermediate storage and distribution 
facilities that normally receive gasoline from bulk terminals via tank 
trucks or railcars. Gasoline from bulk plants is subsequently loaded 
into tank trucks for transport to local dispensing facilities.
    Gasoline dispensing facilities include both retail public outlets 
and private dispensing operations such as rental car agencies, fleet 
vehicle refueling centers, and various government motor pool 
facilities. Gasoline dispensing facilities receive gasoline via tank 
trucks from bulk terminals or bulk plants. As mentioned earlier, the 
source category only includes the delivery of gasoline at gasoline 
dispensing facilities and does not include the vehicle refueling 
activities or equipment.

B. What would be the affected sources and emission points?

    Under Regulatory Alternative 1, the affected sources to which this 
proposed rule would apply are each bulk gasoline terminal, pipeline 
breakout station, pipeline pumping station, and bulk gasoline plant. 
Under Regulatory Alternative 2, the affected sources are those listed 
above plus each gasoline dispensing facility. You are subject to the 
requirements in this subpart if you own or operate one or more of the 
affected sources identified above and they are area sources.
    For each of the facility types, the emission points subject to 
control under this proposed rule include the transfer and storage 
equipment in gasoline service. The sources of emissions at bulk 
terminals that would be subject to control under this proposed rule 
include gasoline storage tanks, cargo tank loading racks, cargo tanks 
being loaded, and equipment components in liquid or vapor gasoline 
service. At pipeline breakout stations and pumping stations, gasoline 
storage tanks and equipment components in liquid or vapor service would 
be emission points subject to control under this proposed rule. At bulk 
plants this proposed rule would control emissions from the loading of 
gasoline into storage tanks and the emissions from the loading of 
gasoline cargo tanks. If we decide to promulgate Regulatory Alternative 
2, then controls would also be required at gasoline dispensing 
facilities to control emissions from the loading of gasoline into 
storage tanks.

C. What would be the emission limits, equipment standards, and work 
practice standards?

    This proposed rule would require that emissions from storage tanks 
that meet the applicability criteria at area source bulk gasoline 
terminals and pipeline breakout stations be reduced by 95 percent, 
either through the use of specified floating roofs and seals or through 
an alternative technology such as a closed vent system and control 
device. This proposed rule would also require that cargo tank loading 
rack emissions at bulk gasoline terminals be reduced to a level of 80 
milligrams, or less, per liter of gasoline loaded into cargo tanks.
    Bulk terminal owners and operators also must not allow the loading 
of cargo tanks that do not have the appropriate vapor tightness testing 
documentation. Before loading at an affected bulk terminal, the owner 
or operator of a cargo tank must present documentation of passing the 
vapor tightness test to demonstrate, using EPA Reference Method 27 or 
equivalent, that they meet a maximum pressure or vacuum decay rate of 3 
inches of water, or less, during a 5-minute test period. Some States 
have other practices or requirements to ensure that vapor tight cargo 
tanks are vapor tested and those alternative requirements will be 
allowed, as specified, under this proposed rule as well.
    This proposed rule would require the implementation of a monthly 
equipment leak inspection at bulk terminals, bulk

[[Page 66067]]

plants, pipeline breakout stations, and pipeline pumping stations. The 
standards allow a sight, sound, and smell inspection of all equipment 
components in gasoline liquid or vapor service. Any leaking equipment 
components would have to be repaired within a specified time period.
    At bulk plants in all counties nationwide this proposed rule would 
require the use of submerged filling of gasoline storage tanks and 
cargo tanks. If we decide to promulgate Regulatory Alternative 2, then 
gasoline dispensing facilities in Urban 1 and Urban 2 areas \1\ will be 
required to use submerged filling of gasoline storage tanks. The 
submerged filling requirement could be met by either bottom filling or 
the use of a fill pipe that extends to within 6 inches of the bottom of 
the tank being filled.
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    \1\ Urban 1 areas means counties are part of a metropolitan 
statistical area with a population greater than 250,000, based on 
the 1990 and the most current U.S. Census Bureau statistical 
decennial census data. Urban 2 areas means counties where more than 
50 percent of the population is classified by the U.S. Census Bureau 
as urban, based on the 1990 and most current U.S. Census Bureau 
statistical decennial census data.
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D. What would be the testing and initial compliance requirements?

    This proposed rule would require that control devices being used to 
reduce emissions from loading racks at bulk terminals be tested to 
demonstrate that they comply with the emission limit. Closed vent 
systems and control devices used to reduce emissions from storage tanks 
would also have to be tested to demonstrate that they comply with the 
emission limit. There are, however, options that allow for the use of 
recent performance tests or documentation that the devices are 
complying with enforceable State, local, or tribal operating permits in 
lieu of performing a new test.
    Affected facilities that utilize control devices (vapor processors) 
to comply with the emission limits for storage tanks or loading racks 
at bulk terminals would be required to monitor an operating parameter 
to demonstrate continuous compliance with the emission limits. The 
monitored operating parameter value would be determined during a 
performance test or by engineering assessment. An operating parameter 
monitoring approach approved by the permitting authority, and included 
in an enforceable operating permit, would also be allowed as an 
alternative.
    Annual inspections of storage tank roofs and seals would be 
required for bulk terminals and pipeline breakout stations. Such 
inspections would be conducted using the same procedures required in 40 
CFR part 60, subpart Kb, Standards of Performance for Volatile Organic 
Liquid Storage Vessels (Storage Vessels New Source Performance 
Standards (NSPS)).
    In addition, each owner or operator of a bulk gasoline terminal 
would be required to monitor the loading of gasoline into gasoline 
cargo tanks to limit the loading to vapor-tight gasoline cargo tanks. 
The owner or operator of each gasoline cargo tank loading at an 
affected bulk terminal would, therefore, be required to perform vapor 
tightness testing on each cargo tank to demonstrate compliance with the 
maximum allowable pressure and vacuum change of 3 inches of water, or 
less, in 5 minutes. Vapor tightness testing would be performed using 
EPA Reference Method 27. Railcar cargo tanks can use the alternative 
``Railcar Bubble Leak Test Procedures'' or an approved equivalent.

E. What would be the notification, recordkeeping, and reporting 
requirements?

    Affected sources that are subject to the control requirements under 
this proposed rule would be required to submit four types of 
notifications or reports as set forth in the General Provisions: (1) 
Initial Notification; (2) Notification of Compliance Status; (3) 
periodic reports; and (4) other reports. The Initial Notification 
apprises the regulatory authority of applicability for existing sources 
or of construction for new sources. This notification also includes a 
statement as to whether the facility can achieve compliance by the 
required compliance date. The Notification of Compliance Status 
demonstrates that compliance has been achieved. This notification 
contains the results of initial performance tests and a list of 
equipment subject to the standard. Periodic reports would be required 
on a semiannual basis. The semiannual compliance report would inform 
the regulatory authority of the results of required inspections or 
additional testing results. An excess emissions report, if applicable, 
would be submitted with the semiannual compliance report and would be 
required if excess emission events occur. Excess emission events would 
include events such as the loading of a cargo tank that does not have 
documentation of vapor tightness testing, deviations from acceptable 
operating parameter values, or equipment leaks that are not repaired 
within the required time.
    Other reports are also required under the General Provisions, 
generally on a one-time basis, for events such as a notification before 
a performance test or a storage vessel inspection. Reporting these 
events allows the regulatory authority the opportunity to have an 
observer present.
    Reporting requirements for owners or operators of bulk plants and 
gasoline dispensing facilities would be limited in most cases to the 
Initial Notification and the Notification of Compliance Status. Those 
bulk plants that are located in States that require the use of 
submerged fill would not be required to submit these notifications. The 
same would be true for gasoline dispensing facilities if we pursue 
Regulatory Alternative 2 in the final rule. Because these facilities 
are subject to only submerged fill requirements (plus equipment leak 
inspections at bulk plants), we believe that additional reporting after 
compliance is achieved is unnecessary.
    Records required under this proposed rule must be kept for 5 years. 
These include records of cargo tank vapor tightness test 
certifications, records of storage tank and equipment component 
inspections, and records of monthly throughput.

III. Not Regulating This Source Category Under CAA Section 112(c)(6)

    Section 112(c)(6) of the CAA requires us to list those source 
categories emitting at least 90 percent of the aggregate emissions of 
each of seven specific pollutants and to develop MACT or health 
threshold standards for the sources listed under this provision. 
Alkylated lead compounds and POM are the only two of the seven CAA 
section 112(c)(6) pollutants that were identified in gasoline.
    Historically, the use of lead as a gasoline additive in onroad 
vehicles contributed significantly to the nationwide inventory of 
alkylated lead emissions. However, section 211(n) of the CAA prohibited 
the distribution or sale of leaded gasoline for use in motor vehicles 
as of December 31, 1995. This prohibition has eliminated alkylated lead 
emissions from the gasoline distribution (Stage I) source category. 
Lead emissions presented in the 1990 inventory of the seven CAA section 
112(c)(6) pollutants were based on Department of Energy gasoline 
consumption data indicating that 1 percent of the onroad motor vehicle 
fuel distributed was leaded fuel. The distribution of this leaded fuel 
was estimated to result in 0.086 tons of alkylated lead emissions. The 
data used in developing the 1990 inventory are, however, not applicable 
since the ban

[[Page 66068]]

on the sale of leaded gasoline went into effect. Additionally, as we 
explained when listing other source categories of alkylated lead (see 
67 FR 17838, April 10, 1998), the ban on leaded gasoline in onroad 
vehicles was recognized and the gasoline distribution (Stage I) source 
category was not listed for alkylated lead emissions.
    On November 8, 2002 (67 FR 68124), the area source gasoline 
distribution (Stage I) source category was added to the list of source 
categories for development of standards under CAA section 112(c)(6) 
toward the 90 percent requirement for POM. As explained in the November 
8, 2002 Federal Register notice, one surrogate for POM is the sum of 16 
polynuclear aromatic hydrocarbon compounds (16-PAH) measured in EPA 
Test Method 610. Naphthalene is the only estimated and reported 16-PAH 
in the 1990 inventory emitted from gasoline distribution (Stage I) 
facilities. We estimated and reported the 1990 inventory for major 
source and area source naphthalene emissions from this source category 
to be 35.5 tons and 320 tons, respectively. The total 1990 inventory 
for all source categories for 16-PAH was presented as 8,405 tons. 
According to inventory support documentation, naphthalene emission 
calculations were based on 0.05 weight percent naphthalene in gasoline 
vapors.
    The American Petroleum Institute (API) submitted data in late 2005 
to support their concern that we had over-estimated the naphthalene 
emissions. We evaluated the API data along with the data from other 
external sources, and from EPA, that were used for the original listing 
inventory, and concluded that instead of using a naphthalene content in 
gasoline vapor of 0.05 weight percent, we should use a value of 0.00027 
weight percent.
    Using the corrected fraction in gasoline vapor, we now estimate 
that the 1990 inventory for major source and area source naphthalene 
emissions from this source category should be 0.19 tons and 1.73 tons, 
respectively. In addition, the total 1990 inventory of 16-PAH is 
reduced to 8,051 tons. Thus, gasoline distribution facilities (area 
sources) contribute only 0.02 percent of the total 16-PAH (1.73 tons 
out of 8,051 tons) and is not needed to meet the 90 percent requirement 
for POM in CAA section 112(c)(6).
    As a result of this revision to the 1990 naphthalene inventory, we 
do not intend to regulate this source category under CAA section 
112(c)(6).

IV. Rationale for This Proposed Rule

A. How did we select the source category?

    We listed area source gasoline distribution (Stage I) facilities in 
July 1999 pursuant to section 112(c)(3) of the CAA to ensure that area 
sources representing 90 percent of the area source emissions of the 30 
HAP that present the greatest threat to public health in the largest 
number of urban areas are subject to regulation under CAA section 112. 
This listing was based on information showing that emissions from the 
gasoline distribution source category (Stage I) contribute at least 36 
percent and 2 percent of the national urban emissions of benzene and 
EDC, respectively, two of the 33 listed area source HAP.
    EDC was added to leaded gasoline to serve as a lead scavenger and 
prevent the unwanted buildup of lead deposits in engines. With the 
implementation of restrictions on the sale of leaded gasoline (as 
discussed in Section III of this preamble) for use in passenger 
vehicles, however, the use of EDC was also discontinued. Thus, while no 
regulatory actions were implemented specifically to address EDC 
emissions from gasoline distribution, its use has been eliminated. As a 
result of these actions, the gasoline distribution source category is 
no longer a significant contributor to nationwide EDC emissions and its 
use will not be discussed further in this preamble.
    The gasoline distribution (Stage I) source category's contribution 
to the total nationwide emissions of benzene is, therefore, the reason 
this source category was selected for regulatory development.

B. How did we select the affected sources and emission points?

1. Affected Sources
    As summarized in this preamble at Section II.A, Regulatory 
Alternative 1 proposes to regulate HAP emission points at bulk 
terminals, pipeline breakout stations, pipeline pumping stations, and 
bulk plants. Regulatory Alternative 2 proposes to regulate all of the 
HAP emission points covered by Regulatory Alternative 1, and gasoline 
dispensing facilities, which are not covered by Regulatory Alternative 
1. Each of these five types of facilities that make up the Stage I 
gasoline distribution chain were analyzed during the preparation of the 
CAA section 112 listing inventory and each type of facility contributes 
to the 36 percent of nationwide benzene emissions from this source 
category.
2. Emission Points
    During the development of the proposed rule, we evaluated each 
emission point at each of the five types of affected sources as 
candidates for additional control requirements. We found that there are 
available control techniques applicable to each of the emission points 
within the source category. In addition, emission points at major 
source bulk terminals and pipeline breakout stations are subject to 
Federal regulation under the Major Source NESHAP, the 1983 New Source 
Performance Standards for Bulk Gasoline Terminals (the Bulk Terminals 
NSPS), and the Storage Vessels NSPS. The control techniques used to 
comply with these Federal rules are also applicable to the 
corresponding emission points at area sources. We also found that there 
are numerous State standards that apply to these emission points at 
many area source gasoline distribution facilities, including those 
facilities located in ozone non-attainment areas and in States that 
have implemented air toxics programs. The following paragraphs provide 
a summary of our analysis of each emission point.
    Bulk Terminals. The four emission points at bulk terminals are: (1) 
Emissions from loading racks when gasoline is loaded into cargo tanks, 
(2) fugitive leakage of vapors from cargo tanks during loading of 
gasoline, (3) evaporation of gasoline from storage tanks, and (4) 
equipment leaks from pumps, valves, and other components.
    Emissions occur at loading racks when gasoline that is loaded into 
cargo tanks displaces vapors inside these containers. These emissions 
may occur either uncontrolled (when facilities are not using vapor 
collection and processing equipment) from cargo tank compartments or 
from the outlet vents of control systems used to process these 
displaced vapors.
    Emissions from loading racks are typically controlled by venting 
the displaced vapors to a control device, such as a thermal oxidizer or 
a carbon adsorber. Loading racks at major sources are controlled under 
the Bulk Terminals NSPS and the Major Source NESHAP, and many States 
also require controls on these sources. Considering the current control 
level that is applied to this emission point by State and local rules, 
we estimate the baseline emissions from this emission point to be 2,353 
tons of HAP per year, nationwide.
    Fugitive emissions from leaking cargo tanks may occur, even at 
controlled loading racks (those equipped with vapor collection and 
processing

[[Page 66069]]

systems), through the dome or hatch covers, pressure-vacuum relief 
valves or vents, hose couplings, or even the cracks in the welds of the 
cargo tank shell.
    Vapor tightness testing is used as a means of identifying and 
controlling fugitive emissions from leaking cargo tanks. The Bulk 
Terminals NSPS and the Major Source NESHAP require vapor tightness 
testing for cargo tanks loading at major sources and many States in 
ozone non-attainment areas require that affected source bulk terminals 
limit the loading of gasoline into cargo tanks that have been tested 
and certified to be vapor tight. Baseline emissions from leaking cargo 
tanks, considering current control requirements, are estimated to be 
about 2,323 tons of HAP per year, nationwide.
    Storage tanks at bulk terminals may be of either fixed roof, 
external floating roof, or fixed roof with an internal floating roof 
construction. Although the precise mechanisms involved vary between the 
different types of storage tanks, emissions originate from storage 
tanks when liquid gasoline in the tank is exposed to air, resulting in 
the evaporation of the liquid. The vapors that are produced by this 
evaporation are subsequently released to the atmosphere either directly 
(in the case of an external floating roof tank), when it is displaced 
by incoming gasoline, or when the pressure of the vapor buildup in the 
tank is sufficient to open a pressure/vacuum vent in the tank.
    The primary means of controlling emissions from storage tanks is 
the use of systems that reduce the exposed surface area of the liquid 
in the tank. Floating roofs, with various types of rim seals and 
gasketed fittings around penetrations in the roof, are typically 
required at major sources by applicable Federal rules (the Major Source 
NESHAP and the Storage Vessels NSPS). Many State standards have similar 
requirements for storage tanks at area source facilities. We have 
estimated that the baseline emissions from storage tanks at bulk 
terminals, considering current control requirements, are about 4,000 
tons of HAP per year, nationwide.
    Equipment leaks from pumps, valves, and other equipment components 
occur when the seals found in these items become worn or damaged. 
Emissions from pumps arise from liquid gasoline leaking from packed or 
mechanical seals in the pumps used to move the product through the 
pipeline. Leaks also occur from seals around stems of valves and other 
equipment components that control or isolate gasoline from the 
environment such as connections, drain lines, and pressure relief 
devices.
    Periodic inspection of equipment components is the only control 
technique that we have identified in the applicable Federal and State 
rules. These inspections typically are required on a monthly or 
quarterly basis, are performed using sight, sound, and smell 
observations, and any leaking components are required to be repaired 
within a specified period of time. We have estimated that the baseline 
emissions from equipment leaks at bulk terminals, considering current 
control requirements, are 37 tons of HAP per year, nationwide.
    Pipeline Breakout Stations. The two emission points typically found 
at pipeline breakout stations are gasoline storage tanks and equipment 
leaks. Storage tank and equipment component (pumps and valves) leak 
emissions at pipeline breakout stations are identical in the manner of 
their occurrence and the applicable control techniques to those 
described above for bulk terminals. However, HAP emission rates are not 
the same due to differences in turnover rates and storage tank sizes as 
well as differences in the numbers of estimated equipment components in 
the process line piping between the two facility types. We have 
estimated that the nationwide baseline emissions from storage tanks and 
equipment leaks at pipeline breakout stations, considering current 
control requirements, are 1,100 and 160 tons of HAP per year, 
respectively.
    Pipeline Pumping Stations. At pipeline pumping stations the only 
type of HAP emission sources that are normally found are equipment 
leaks from components such as pumps and valves. We found that fugitive 
emissions from equipment leaks at pipeline pumping stations are 
typically unregulated by States. However, this emission source and the 
applicable control technique are the same as those found at bulk 
terminals and pipeline breakout stations. We have estimated that the 
baseline emissions from equipment leaks at pipeline breakout stations, 
considering current control requirements, are 7 tons of HAP per year, 
nationwide.
    Bulk Plants. The types of gasoline distribution activities and 
emission sources found at bulk plants are similar to those found at 
bulk terminals. Because of the size and throughput differences between 
these two types of affected sources, however, there are differences in 
the equipment configurations and the types of emission controls 
normally found at bulk plants.
    Storage tanks at bulk plants are typically fixed roof tanks and 
below the size cutoff criteria for floating roof requirements in 
Federal and State rules. While there may be some storage tanks at bulk 
plants that are large enough to be subject to the control requirements 
typically applicable at bulk terminals, most are uncontrolled. Because 
bulk plants typically receive gasoline from cargo tanks, the loading of 
gasoline into the storage tanks at bulk plants can be a significant 
source of emissions if the tanks are not equipped for submerged 
filling. We found that some States do not regulate bulk plants, while 
those States with applicable standards typically require that the 
loading of storage tanks utilize submerged filling and the vapor 
balancing of the storage tank with the delivery vehicle. By utilizing 
vapor balancing, the gasoline vapors that would be released to the 
atmosphere are instead routed into the cargo tank for return to the 
bulk terminal for vapor processing. We have estimated the nationwide 
baseline HAP emissions from the loading of storage tanks at bulk plants 
to be about 4,350 tons of HAP per year.
    The loading of cargo tanks at some bulk plants is also done by top 
loading (splash filling) gasoline into the cargo tank compartments. 
This method results in increased emissions compared to bottom loading. 
Those States that regulate this activity typically require the use of 
submerged filling and a vapor balancing system to route the vapors 
displaced from the cargo tank back into the bulk plant storage tank. We 
have estimated the nationwide baseline HAP emissions from the loading 
of cargo tanks at bulk plants to be about 2,170 tons of HAP per year.
    Fugitive emissions from bulk plants are similar to those at bulk 
terminals in that they originate from liquid or vapor leaks in 
equipment components. Because bulk plants are much smaller than bulk 
terminals, however, both the number of fugitive emission sources and 
the magnitude of the fugitive emissions are typically much less than 
those found at bulk terminals. Periodic equipment leak inspections are 
the only control technique identified that would be applicable to 
reduce emissions from equipment leaks. We found that equipment leak 
emissions at bulk plants are, however, typically unregulated. We have 
estimated the nationwide baseline HAP emissions from equipment leaks at 
bulk plants to be 15 tons of HAP per year.
    Gasoline Dispensing Facilities. The only Stage I activities that 
occur at gasoline dispensing facilities are the loading of gasoline 
into the storage tanks and the subsequent storage of the gasoline in 
these tanks. There are, however, various configurations of

[[Page 66070]]

equipment used in these activities. Most gasoline dispensing facilities 
utilize underground storage tanks and the emissions from these tanks 
occur primarily as a result of the displacement of vapors during the 
filling of the tanks. In addition, storage tanks at some gasoline 
dispensing facilities are not equipped for submerged filling and 
filling is accomplished by simply ``splash-filling.''
    We found that many States require that the filling of storage tanks 
at gasoline dispensing facilities be controlled through the use of 
submerged filling and by a vapor balance system where the displaced 
vapor from the storage tank is collected and routed back to the cargo 
tank during delivery. The vapor collected in the cargo tank is then 
returned to the bulk terminal and routed to a vapor processor when the 
cargo tank is loaded. We have estimated the nationwide baseline HAP 
emissions from the filling of storage tanks at gasoline dispensing 
facilities to be about 19,000 tons of HAP per year.

C. How did we determine the level of this proposed rule?

1. Approach
    Our approach to determining the level of this proposed rule was 
based on the statutory requirements of CAA section 112(c)(3). Section 
112(c)(3) requires standards that comply with CAA section 112(d), which 
specifies that standards may be developed using either the MACT 
approach, a health threshold approach, or the GACT and management 
practices approach.
    As discussed earlier, this source category was listed for benzene 
emissions. Many carcinogens, including benzene, do not have a health 
threshold, thus the health threshold approach was not evaluated. 
Therefore, our approach was to assess the regulatory options based on 
the GACT, management practices, and MACT levels of control. Under this 
approach we evaluated each emission point within the source category 
and identified the control options that we found to be applicable to 
each emission point within the source category. As we discuss later in 
this section of the preamble, we developed three regulatory 
alternatives based on our analysis of current levels of control and 
progressively adding more stringent levels of control. In adding more 
stringent levels of control, we did not reach, prior to making the 
proposed decision, the MACT (average of the best performing 12 percent 
of the sources) level of control for all emission sources. The three 
regulatory alternatives that we discuss later and considered in this 
proposal are GACT levels of control.
2. Control Options
    Our first step in developing the control options for each emission 
point under this proposed rule was an evaluation of the existing 
controls required by the various Federal, State, and local agencies 
that regulate gasoline distribution facilities. We found that most 
States regulate some or all of the emissions points at area sources in 
the gasoline distribution source category. In addition, many of these 
emission points are subject to control under the Bulk Terminals NSPS, 
the Major Source NESHAP, and the Storage Vessels NSPS at the major 
source bulk terminals and pipeline breakout stations.
    For each emission point, we identified and evaluated the various 
levels of control that are currently required by Federal and State 
standards. Each discrete level of control that we evaluated was 
considered to be a control option for the emission point. For example, 
three discrete levels of control were identified in State standards and 
in the Bulk Terminals NSPS and the Major Source NESHAP for emissions 
from loading racks at bulk terminals. These levels are expressed in 
terms of milligrams of total organic compounds emitted per liter of 
gasoline loaded into cargo tanks (mg/l) and are 80 (in several State 
rules), 35 (in some State rules and in the Bulk Terminals NSPS), and 10 
(in some State rules and in the Major Source NESHAP). Therefore, in 
evaluating potential levels of control for this proposed rule, we 
analyzed each of these three levels of control as a control option for 
bulk terminal loading racks.
    The process of identifying and evaluating control options was 
repeated for each of the gasoline distribution source category emission 
points that were discussed in Section B.2 of this preamble.
3. Regulatory Alternatives
    After we identified and evaluated the control options for each 
emission point within the source category we developed a series of 
regulatory alternatives. Each regulatory alternative consisted of one 
control option for each emission point at each facility type. We began 
our regulatory alternatives development with the most cost effective 
control options as Regulatory Alternative 1 and then added the more 
stringent control options found in subsequent regulatory alternatives.
    We also included in our development of regulatory alternatives a 
baseline or ``no additional control'' control option for the emission 
points. Including this control option for certain emission points 
provided us the flexibility to develop a regulatory alternative that 
required, for example, additional controls for larger emitting 
facilities, but not for smaller facilities.
    Another factor we considered when developing the regulatory 
alternatives was whether to require the controls in all counties 
nationwide or to make the standards applicable only in urban areas. We 
presented our position on this issue in the Strategy. We stated that 
while our expectations are to apply area source standards under CAA 
section 112(k) in all counties nationwide, we would also determine for 
each area source standard whether it is more appropriate to apply that 
particular standard in all counties nationwide or only in urban areas. 
For this proposal, we started with the Urban 1 and Urban 2 area 
definitions we used in the Strategy.\2\ These definitions were used to 
identify a list of counties based on the 1990 census data. We then 
modified the list of counties to add new Urban 1 and Urban 2 counties 
based on the 2000 census data. We are requesting comment on using this 
Urban 1 and Urban 2 approach to defining urban areas, and on any other 
approach or definition that would better define where people live in 
urban areas, such as densely populated areas with 2,500, 50,000, or 
250,000 people.
---------------------------------------------------------------------------

    \2\ Urban 1 areas means counties are part of a metropolitan 
statistical area with a population greater than 250,000. Urban 2 
areas means counties where more than 50 percent of the population is 
classified by the U.S. Census Bureau as urban.
---------------------------------------------------------------------------

    Using the factors presented in the preceding paragraphs, we 
developed numerous regulatory alternatives for consideration. We 
evaluated the potential HAP reductions, capital and annualized costs, 
and cost-effectiveness of each regulatory alternative. (Our analyses 
can be found in Docket ID No. EPA-HQ-OAR-2006-0406.) We then ranked the 
regulatory alternatives starting with the most cost-effective and 
progressing to those that were less cost-effective and, in most cases, 
required more stringent control. Based on our evaluation of the series 
of regulatory alternatives, we determined that three regulatory 
alternatives were viable candidates for evaluation and discussion.
    Regulatory Alternative 1. The first regulatory alternative that we 
considered for the proposed rule was based on those control options 
that were found to be the most cost effective controls for the larger 
bulk facilities (bulk terminals, bulk plants, pipeline breakout 
stations, and pipeline pumping stations). Under this regulatory

[[Page 66071]]

alternative, gasoline dispensing facilities would not be subject to 
control requirements beyond those already implemented by State and 
local standards, unless they have storage tanks with a capacity greater 
than 20,000 gallons. We selected this regulatory alternative for 
consideration because facilities in the bulk segment of the source 
category are larger facilities.
    We chose to apply the controls required under Regulatory 
Alternative 1 to all counties nationwide rather than only in urban 
areas. As discussed earlier, we generally develop area source standards 
that are applicable to all counties nationwide unless we believe it is 
more appropriate to apply standards only in urban areas. The emission 
controls required under this regulatory alternative would result in a 
net credit to the affected facilities because they would prevent the 
loss (through evaporation) of enough gasoline to more than pay for the 
costs of the controls. Therefore, this is an appropriate alternative 
for all facilities and locations.
    Under Regulatory Alternative 1, the level of control for large 
(greater than 20,000 gallon capacity) storage tanks is the same as that 
required under the Major Source NESHAP. Storage tanks of this size are 
typically found at bulk terminals and pipeline facilities, although in 
rare cases they may be at bulk plants or gasoline dispensing 
facilities. These tanks would be controlled by installation of floating 
roof technology with the best rim seals on all tanks and fitting 
controls on external floating roof tanks. As discussed in the Major 
Source NESHAP final rule notice, fitting controls on internal floating 
roof tanks have a poor HAP cost-effectiveness. Therefore, they are not 
included under this regulatory alternative. As an alternative to the 
installation of floating roof technology, storage tanks may be equipped 
with a closed vent system and control device designed and operated to 
reduce emissions by 95 percent. This level of control has been found to 
be the most cost-effective level available. Our analysis of current 
control requirements indicated that about 1,000 of the estimated 6,300 
storage tanks at area source bulk terminals currently comply with this 
level of control for both rim and fitting seals. Approximately 1,560 
additional storage tanks currently have the required rim seals and 
would only need to be upgraded by adding fitting seals. We estimate 
that the nationwide annual volatile organic compounds (VOC) and HAP 
reductions under this level of control would be 43,000 and 3,100 tons, 
the capital cost would be $57 million, and the annualized cost would be 
a credit of about $6 million. The nationwide cost-effectiveness of this 
level of control is, therefore, a savings of about $2,000 per ton of 
HAP reduction. Because the potential for evaporative losses of gasoline 
from these tanks is large, control options that are less stringent are 
less cost-efficient, after the recovery credit is considered.
    The performance testing of control devices and the inspection of 
seals and gaskets, as required under the Major Source NESHAP, would 
also be required under Regulatory Alternative 1.
    Loading racks at bulk terminals would also be subject to control 
under Regulatory Alternative 1. We found during our evaluation of State 
rules that these loading racks are generally required to install and 
operate vapor processors that are capable of controlling emissions to a 
level of no more than 80 milligrams of total organic compounds emitted 
per liter of gasoline loaded (mg/l). This level of control has been 
found to be the most cost-effective level available for vapor 
processing. Although we expect that a small number of uncontrolled 
facilities exist, we did not identify any bulk terminals during our 
analysis that are not meeting a control level of 80 mg/l. Since our 
analysis was completed, industry has collected information on these 
small terminals, as discussed in the next paragraph. While some State 
rules require emissions to be limited to 35 mg/l, and the MACT standard 
for major sources is 10 mg/l, the incremental cost-effectiveness of 
requiring these more stringent control levels is poor, especially if 
replacement of an existing vapor processor was necessary (about $40,000 
per ton of HAP reduction). Therefore, since many terminals still have 
vapor processors meeting the 80 mg/l limit and they are cost-effective 
controls that are in widespread use, we are proposing a limit of 80 mg/
l for bulk terminal loading racks in Regulatory Alternative 1. As 
mentioned above, we were unable to develop a reliable estimate of the 
small number of facilities that are not currently meeting a level of 80 
mg/l at their loading racks. Therefore, rather than attempt to estimate 
nationwide emission reductions and costs, we estimated the potential 
impacts on an average sized loading rack. We estimated that this 
average facility would, through the installation of a carbon adsorber 
to meet the 80 mg/l control level, reduce their VOC and HAP emissions 
by about 620 and 45 tons. The capital expenditure for this control 
would be almost $1 million. After considering the value of the 
recovered product, however, the annualized cost would be a credit of 
about $54,000. The cost-effectiveness of this level of control for this 
average facility is, therefore, a credit of about $1,200 per ton of HAP 
reduction.
    Recently, industry has gathered loading rack conversion and vapor 
processor installation costs (as well as small storage tank secondary 
seal costs) to demonstrate that these controls are not cost effective 
at small bulk terminals. We are currently reviewing this information 
and it is contained in the docket for public review and comment. Based 
on our review of this data and comments and data received during the 
comment period, we will consider requiring small terminals (based on a 
yet to be determined daily throughput) to use submerged fill without 
processing the vapors to 80 mg/l.
    To ensure that vapors in cargo tanks would be displaced into vapor 
processors, bulk terminal owners and operators would also be required, 
under Regulatory Alternative 1, to limit the loading of cargo tanks at 
their facilities to those cargo tanks that have passed a vapor 
tightness test. The requirement for an annual vapor tightness test of 
cargo tanks is found in many State rules and is also in the Bulk 
Terminals NSPS and the Major Source NESHAP. Vapor tightness is tested 
by EPA Reference Method 27, and is measured in terms of the change in 
pressure or vacuum observed, from an initial pressure of 18 inches of 
water or an initial vacuum of -6 inches of water, over a 5-minute test 
period. Many States have adopted a requirement specifying a maximum 
allowable change in pressure of 3 inches of water. This is also the 
level specified in the Bulk Terminals NSPS for new loading racks. Our 
analysis of cargo tank tightness testing requirements indicated that 
approximately 22,000 cargo tanks out of an estimated 23,800 vapor 
collection-equipped cargo tanks already comply with this control level. 
We estimate that the nationwide annual VOC and HAP reductions under 
this level of control would be about 1,220 and 90 tons. Because 
maintenance costs and testing costs are the only costs associated with 
this option, there is no capital cost associated with this option, and 
the annualized cost would be about $0.2 million. The nationwide cost-
effectiveness of this level of control is, therefore, about $2,250 per 
ton of HAP reduction. However, because the vapor processor control 
requirement and vapor tightness requirement for cargo tanks ensures 
that vapors are controlled, the combined cost-effectiveness of these 
controls is about $1,000 per ton of HAP controlled.

[[Page 66072]]

    Some other States, and the Major Source NESHAP, specify a maximum 
change of 1 inch of water. Because our analysis showed that the 
incremental cost-effectiveness of requiring the 1-inch maximum pressure 
decay versus the 3-inch maximum pressure decay was high (about $30,000 
per additional ton of HAP reduced), we chose to keep the 3-inch maximum 
pressure decay level in Regulatory Alternative 1.
    Our analysis of the emission points and controls applicable to bulk 
plants led us to conclude that the most cost-effective means of 
reducing HAP emissions is the conversion from splash filling to 
submerged filling of storage tanks and cargo tanks. Approximately 5,500 
out of 5,900 bulk plants are estimated to utilize submerged fill. We 
estimate that the nationwide annual VOC and HAP reductions under this 
level of control would be about 860 and 108 tons, the capital cost 
would be $2 million, and the annualized cost would be $30,000. The 
nationwide cost-effectiveness of this level of control is, therefore, 
about $300 per ton of HAP reduction when converting to submerged 
filling of both the storage tanks and cargo tanks. Because bulk plants 
are typically much smaller facilities than bulk terminals, and have 
much lower storage capacity and gasoline throughput, the types of 
controls that are normally cost-effective at bulk terminals are much 
less cost-effective at bulk plants. For example, bulk plant storage 
tanks are normally below the size in which internal floating roof 
technology is typically installed. Also, while the use of vapor 
balancing between storage tanks and cargo tanks is required by some 
States, the cost-effectiveness of this requirement was estimated to be 
about $10,000 per ton of HAP reduced. As a result of the difference in 
cost-effectiveness, we have elected to include in Regulatory 
Alternative 1 the requirement that bulk plants utilize submerged 
filling of storage tanks and cargo tanks.
    Also included in Regulatory Alternative 1 is the requirement that 
bulk terminals, bulk plants, pipeline breakout stations, and pipeline 
pumping stations perform a monthly equipment leak inspection. During 
the development of the Major Source NESHAP, we concluded that an 
equipment leak inspection program utilizing sight, smell, and sound 
techniques was an effective way to identify leaking components in 
gasoline service. Although leaking equipment components are normally a 
small source of HAP emissions compared to some of the other emission 
points in the source category, the fact that owners or operators 
generally perform inspections for safety reasons makes the inspection 
program an attractive option. We did not attempt to quantify the 
emissions reductions and costs for this level of control because the 
percentage of owners or operators who are already doing similar 
inspections, while believed to be a large percentage, is not known. If, 
as believed, a large percentage of facilities are already being 
inspected for equipment leaks, the added emission reductions and costs 
associated with this proposed rule would be small.
    We also included in Regulatory Alternative 1 a work practice 
standard that requires all affected sources to handle gasoline in a 
manner that reduces vapor releases. This requirement includes steps 
such as minimizing spills and not storing gasoline in open containers. 
As with the equipment leak inspection program, these simple actions 
have been included as a work practice standard in Regulatory 
Alternative 1.
    The implementation of Regulatory Alternative 1 would result in an 
estimated HAP reduction of about 3,300 tons per year, of which about 
120 tons would be benzene. As discussed later in this preamble, we 
estimate that this alternative will reduce incidences of cancer from 
benzene exposure by 0.037 cases per year. These reductions would be 
achieved with an initial capital investment estimated at $60 million 
nationwide. Because of the value of the product that is prevented from 
evaporating as a result of these control measures, however, the 
annualized cost of Regulatory Alternative 1 is estimated to be a credit 
of approximately $6 million per year. The cost-effectiveness of this 
Alternative, therefore, would be a credit of about $1,800 per ton of 
HAP reduced.
    As an option to regulatory Alternative 1, we are also considering 
the adoption of a seals and floating roof technology for storage tanks 
at bulk terminals and pipeline facilities and controlling emissions 
from loading racks at bulk terminals. This option would reduce HAP 
emissions by 3,100 tons per year and VOC emissions by 43,000 tons per 
year. This option would achieve 94 and 90 percent of the emission 
reductions of Alternative 1 and 2 (discussed below), respectively. This 
option would reduce cancer incidence by roughly 0.035 cancers per year. 
We estimate that this option would require capital expenditures of $57 
million, but because of the reduced loss of gasoline, this option would 
yield an annual cost savings of $6 million per year.
    Regulatory Alternative 2. As discussed earlier, our approach in 
developing the regulatory alternatives was to first look at the most 
cost-effective controls at the larger bulk facilities, then to look at 
smaller (gasoline dispensing) facilities, typically located closer to 
the population. Regulatory Alternative 2, therefore, would require that 
storage tanks at gasoline dispensing facilities in Urban 1 and Urban 2 
areas be filled using submerged fill and would also include all of the 
requirements of Regulatory Alternative 1. This Alternative would lead 
to additional HAP emission reductions in more populated areas compared 
to Regulatory Alternative 1.
    As discussed in Section IV.B. of this preamble, the use of 
submerged filling results in about a 60 percent reduction in emissions 
compared to splash filling of storage tanks. We estimate that this 
technology is already used for the delivery of about 99 percent of the 
gasoline to gasoline dispensing facilities. However, because the 
remaining 1 percent accounts for over 1.3 billion gallons of gasoline, 
we estimated that an additional 100 tons of HAP emission reductions 
(1,370 tons of VOC) would be achieved through the implementation of the 
submerged fill requirement at gasoline dispensing facilities as 
specified in Regulatory Alternative 2. As discussed later in this 
preamble, we estimate that submerged fill will reduce incidences of 
cancer from benzene exposure by 0.002 cases per year. These additional 
reductions would be achieved at an additional $5 million in capital 
cost and an increase in the annualized cost of approximately $47,000. 
The cost-effectiveness of submerged fill at gasoline dispensing 
facilities is, therefore, about $470 per ton of HAP emissions reduced.
    Our analysis showed that if the submerged fill requirement was 
applied in all counties nationwide rather than only in Urban 1 and 
Urban 2 areas (Regulatory Alternative 2), the additional HAP reductions 
would be about 36 tons per year from the approximately 700 additional 
facilities that would be required to add submerged fill. The total 
capital cost would increase by about $2 million and the annualized cost 
would increase by about $18,800. However, as stated earlier, our 
approach when adding controls for smaller facilities, in this case 
gasoline dispensing facilities, is to apply controls in the more 
populated areas. This focuses the emission reductions from this 
industry segment in urban areas, results in a larger percentage of the 
population receiving the benefits of reduced emissions and

[[Page 66073]]

exposure to HAP, and reduces the overall cost of the rule. Therefore, 
we chose to only include in Regulatory Alternative 2 those gasoline 
dispensing facilities located in the more populated urban (Urban 1 and 
Urban 2) areas.
    Regulatory Alternative 3. Continuing our approach of considering 
increasingly more stringent control levels, the next level of control 
that we considered for gasoline dispensing facilities was the 
requirement to vapor balance the loading of storage tanks. Regulatory 
Alternative 3 would include the requirement that all gasoline 
dispensing facilities located in Urban 1 areas utilize vapor balancing 
when loading gasoline into their storage tanks and would also include 
all of the requirements of Regulatory Alternative 2. Our analysis 
indicated that vapor balancing is already used for the delivery of 
about 68 percent of the gasoline to gasoline dispensing facilities.
    For Regulatory Alternative 3, we evaluated a vapor balancing 
requirement based on typical State standards for gasoline dispensing 
facilities. We evaluated a control approach that included equipment and 
work practice standards and also allowed an option of demonstrating 
that alternative control techniques selected by owners or operators 
were equally effective. Under this approach, the equipment and work 
practice standards would specify the components and operation of an 
acceptable vapor balance system. The owners or operators would be 
allowed, however, to utilize other equipment configurations if they 
successfully demonstrated through performance testing that their system 
was capable of reducing emissions from the loading of their storage 
tanks by 95 percent. This regulatory approach is utilized by many State 
and local agencies because of the flexibility it allows.
    The use of vapor balanced loading of storage tanks achieves 
significantly more HAP reductions compared to submerged filling. It is, 
however, much more costly and is a much less cost-effective 
requirement. Adding vapor balancing to gasoline dispensing facilities 
in Urban 1 areas would achieve over twice the HAP emissions reduction 
and incidences of cancer avoided of Regulatory Alternative 2 (7,000 
tons per year compared to 3,400 tons per year, and 0.08 cases per year 
compared to 0.039 cases per year). These greater reductions would 
require the expenditure of an additional $99 million in capital cost 
and $38 million in annualized control cost. We estimate an incremental 
cost effectiveness of about $10,700 per ton of additional HAP reduced 
and a cost-effectiveness of about $4,600 per ton of HAP controlled for 
the combined alternative.
    As was the case for Regulatory Alternative 2, we examined the 
impacts of applying standards in all counties nationwide versus 
applying standards only in urban areas. We chose to minimize the 
overall control cost of this Alternative by only requiring vapor 
balancing in the most populated (Urban 1) areas. If Regulatory 
Alternative 3 were applied in Urban 2 areas (as well as Urban 1 areas) 
or in all counties nationwide, the cost-effectiveness would be the 
same, but the HAP reductions would increase by about 100 tons per year 
and 180 tons per year, respectively, and the annualized costs would 
increase by about $30 million and $60 million, respectively.
4. Proposed Level of the Emission Limit and Work Practice Standards
    Based on our analysis of the three regulatory alternatives 
presented here, we have decided to propose both Regulatory Alternatives 
1 and 2 in this proposed rule. These Alternatives achieve significant 
HAP emissions reduction (3,300 or 3,400 tons per year), and, because 
most of the control measures included prevent the evaporation of 
gasoline, accomplishes those reductions at a credit of about $1,800 or 
$1,750 per ton of HAP reduction on a nationwide basis, respectively. 
While Regulatory Alternative 2 achieves only an additional 100 tons of 
HAP reduction, the incremental cost to achieve those reductions are 
small ($47,000 annualized cost). More importantly, the reductions are 
achieved at service stations located generally closer to the public and 
not subject to control under Regulatory Alternative 1. As presented 
later in this preamble, a rough approximation of incidences of cancer 
from benzene exposure indicates that gasoline distribution area sources 
contribute to a small number of annual incidences of cancer. Therefore, 
the additional incidence reduction between Regulatory Alternatives 1 
and 2 is small.
    The regulatory text included in this proposed rule implements 
Regulatory Alternative 2. We have proposed regulatory text for 
Regulatory Alternative 2 because that Alternative encompasses all of 
the facilities that would be subject to standards under Regulatory 
Alternative 1, plus gasoline dispensing facilities. If we finalize 
Regulatory Alternative 1 we will modify the regulatory text 
appropriately to remove the provisions applicable to gasoline 
dispensing facilities. We solicit comment on the proposed regulatory 
text.
    We also solicit comment on whether we should finalize Regulatory 
Alternative 3 as described above which provides greater emission 
reductions and cancer incidence reductions than Alternatives 1 and 2.
    Additionally, we solicit comment on whether we should select a 
final rule that is based on installation of seals and floating roof 
technology for storage tanks at bulk terminals and pipeline facilities 
and controlling emissions from loading racks at bulk terminals. The 
additional controls identified in Regulatory Alternatives 1 and 2 
compared to this option for Alternative 1 would achieve additional 
reductions of HAP of 200 and 300 tons per year. These additional 
reductions represent a further reduction of only 6 to 10 percent of the 
reduction achieved by this option to Alternative 1. These additional 
reductions in HAP will yield a reduction in cancer incidence from 
exposure to benzene by roughly 0.002 to 0.004 cases per year. Controls 
in these alternatives would also reduce VOC emissions by an additional 
2,100 to 3,500 tons per year. We estimate that these additional 
controls will result in capital costs of roughly $2 to $7 million and 
annual costs of roughly $230,000 to $280,000 per year. The rationale 
for adopting this alternative reflects a relatively greater emphasis on 
the limited additional reduction in HAP and VOC emissions and the 
limited additional reduction in cancer incidence associated with 
Alternatives 1 and 2.
    Lastly, we are asking for comment on whether Regulatory Alternative 
1 and the above option to that alternative should be required in all 
counties nationwide as proposed or just in urban areas. In addition, as 
discussed earlier, we are requesting comment on the use of Urban 1 and 
Urban 2 definitions or some other definitions to better define the 
urban areas where people live.

D. How did we select the format for this proposed rule?

    Many owners or operators of affected sources under this proposed 
rule also own or operate other sources that are subject to control 
requirements under State rules or the Major Source NESHAP. The format 
selected for the proposed standards was developed based on our review 
of Federal and State rules affecting the same emission points at many 
facilities within the source category. Our goal was to set a format for 
each emission point that is compatible with the applicable test 
methods, that reflects the performance

[[Page 66074]]

of the control technology, and is consistent with the formats used in 
other applicable rules. The proposed standards consist of a combination 
of several formats: numerical emission limits and operating limits, 
equipment standards, and work practice standards.
    Numerical emission limits are feasible for storage tanks outfitted 
with a closed vent system and a control device. Because these devices 
must be tested to determine their performance level, a numerical 
emission limit is both reasonable and practical. For this control 
situation, we have proposed a percentage control efficiency (95 percent 
reduction in total organic compound emissions), which is consistent 
with the format used in the Major Source NESHAP as well as in the 
Refinery NESHAP (40 CFR part 63, subpart CC).
    A numerical emission limit was also selected for loading racks 
controlled by vapor processors. We have proposed that emissions from 
loading racks must not exceed 80 mg of total organic compounds per 
liter of gasoline loaded through the loading rack. This is the same 
format that is used in the Bulk Terminals NSPS and the Major Source 
NESHAP for loading rack control, although the actual numerical limit is 
different.
    You would also have the option of installing floating roof 
technology with specific types of rim and deck fitting seals for 
affected storage tanks. The floating roof option has been included in 
most Federal rules affecting petroleum storage tanks, including the 
Major Source NESHAP and the Storage Vessels NSPS. In selecting this 
equipment standard, we have maintained consistency with the control 
approach that most affected gasoline distribution facilities have used 
to comply with the Major Source NESHAP. Additionally, we are allowing 
selected equipment, work practice, monitoring, and recordkeeping 
standards in the more recent floating roof storage vessel standards (40 
CFR 63, subpart WW, National Emission Standards for Storage Vessels 
(Tanks)--Control Level 2), as an alternative to the rule text in the 
Storage Vessels NSPS and Major Source NESHAP.
    The proposal provides that bulk plants and, under Regulatory 
Alternative 2, gasoline dispensing facilities, must implement an 
equipment standard to reduce emissions from the loading of storage 
tanks and cargo tanks. This equipment standard requires the use of 
submerged fill pipes for loading activities at these facilities. 
Similar equipment standards are found in many State rules that affect 
bulk plants and gasoline dispensing facilities.
    For equipment leak emission controls, we have selected a work 
practice standard, a monthly equipment leak inspection that is 
consistent with the format found in the Major Source NESHAP for major 
sources and other industrial standards. This format was selected 
because, during the development of the Major Source NESHAP, it was 
found to be as effective as an instrument-based leak detection and 
repair program for detecting gasoline leaks at bulk terminals. Under 
this work practice standard, leaks that are discovered must be repaired 
within 15 days.
    Another work practice standard applicable at affected sources 
requires that gasoline be handled in a manner that reduces fugitive 
emissions from spills and open containers. This work practice standard 
is also found as a requirement of the major source NESHAP.
    An additional work practice standard in combination with an 
emission limit has been selected for ensuring that only vapor tight 
cargo tanks are loaded at bulk terminals so that the gasoline vapors 
will be transferred to the vapor processor. The proposed standard 
requires that owners or operators of bulk terminals take steps to 
ensure that any cargo tank loaded has been tested for vapor tightness 
as measured by EPA Reference Method 27, or an acceptable alternative. 
This work practice standard is consistent with the format of the Bulk 
Terminals NSPS and the Major Source NESHAP for vapor tight cargo tanks 
and requires that a pressure or vacuum change of no more than 3 inches 
be achieved during a 5-minute test period.

E. How did we select the proposed testing and monitoring requirements?

    In our evaluation of the potential testing and monitoring 
requirements for this proposed rule, we considered the requirements 
found in various Federal and State rules. While the Federal 
requirements we evaluated apply only to major sources within the 
gasoline distribution source category, the State and Federal new source 
rules also apply to area sources. As a result of our evaluation, we 
have elected to include certain testing and monitoring requirements 
from existing Federal regulations as well as requirements found in some 
State rules. The testing and monitoring requirements that we have 
included in this proposed rule are intended to ensure that the 
objective of achieving significant emission reductions on a continuous 
basis is met without imposing an undue burden on the affected sources.
    The proposed standards require initial performance testing and 
continuous operating parameter monitoring for vapor processor systems, 
annual vapor tightness testing of cargo tanks, periodic visual 
inspections and seal gap measurements of floating roofs, and monthly 
inspections of equipment components in gasoline service.
    We are proposing continuous monitoring of operating parameters as a 
measure to certify and document continuous compliance of the vapor 
processing systems. The testing, continuous monitoring, and inspection 
requirements in this proposed rule are based on those in the Major 
Source NESHAP. In addition to these requirements, we are proposing the 
monitoring of the presence of a pilot flame as an alternative to 
temperature monitoring of thermal oxidation units. Industry has raised 
concerns with temperature monitoring that leads us to propose this 
alternative. Due to the cyclic nature of the emissions during loading 
operations, some facilities have found the selection of an appropriate 
target temperature problematic. Moreover, to compensate, some 
facilities may burn excess amounts of supplemental fuel (natural gas) 
to maintain temperature with no HAP or VOC emission reduction benefit 
and an increase in nitrogen oxide emissions.
    We are requesting comment on the sufficiency of monitoring for the 
presence of the pilot flame by itself or with additional parameters. 
Industry has recommended automatic shutdown of the loading operations 
when the pilot flame is absent, coupled with daily monitoring of the 
assist blower operation, of the vapor line valve operation, and of the 
automatic shutdown system. We are requesting additional information on 
the specifics on how these additional items are monitored and why they 
or others are appropriate to ensure continuous compliance with the 
emission limit (80 mg/l). Further details on the industry 
recommendations are in the docket and we request comments, along with 
data that support the comments, on their recommendations. We are also 
attempting to collect additional information and data to support that 
these additional items are appropriate to monitor. We will evaluate the 
data presented to us during the public comment period to determine the 
final rule approach on continuous compliance monitoring.
    Industry representatives are also working on and have recommended 
alternative parameters to monitor for

[[Page 66075]]

continuous compliance of carbon adsorption systems. Industry is 
recommending daily monitoring of carbon adsorption system vacuum levels 
and other system parameters, and monthly measurements of outlet 
concentration, instead of continuous monitoring of outlet concentration 
as required in the Major Source NESHAP and this proposed rule. We are 
requesting additional information on the specifics on how these 
parameters are monitored and why they or others are appropriate to 
ensure continuous compliance with the emission limit (80 mg/l). Further 
details on the industry recommendations are in the docket and we 
request comments, along with data that support the comments, on their 
recommendations. We will evaluate the data presented to us during the 
public comment period and determine in the final rule whether this 
alternative approach ensure continuous compliance with the emission 
standards.
    Various alternative testing and monitoring procedures are also 
included in the proposed rule. These alternatives were selected to 
allow facilities to utilize ongoing testing and monitoring programs, or 
to expand programs in use at other facilities, rather than having to 
implement new programs. Facilities that would be required to conduct 
performance testing of control devices may instead submit documentation 
that their control devices are in compliance with the testing and 
monitoring provisions of enforceable State or local standards that are 
equivalent in stringency to the proposed rule. Performance tests that 
have been approved by State or local permitting authorities may be 
submitted in lieu of a new performance test if they were conducted 
within the 3 years preceding the effective date of the proposed rule. 
Operating parameter monitoring programs approved by permitting 
authorities may also be used in lieu of the development of new 
monitoring programs for control devices. The periodic bubble leak test 
for vapor tightness testing of railcar cargo tanks (as allowed under 
the Major Source NESHAP) will also be allowed as an alternative to EPA 
Reference Method 27.

F. How did we select the proposed notification, recordkeeping, and 
reporting requirements?

    The notification, recordkeeping, and reporting requirements of the 
proposed standards were generally based on requirements found in other 
Federal standards, including the General Provisions, as well as State 
rules. These requirements were selected because they meet the needs of 
EPA or the delegated permitting authority with respect to determining 
initial and ongoing compliance with the proposed standards. We have not 
made a general determination regarding how best to impose reporting 
requirements on area sources and seek comment on ways to balance the 
need for reporting with the burden imposed on sources. The proposed 
standards would require an owner or operator of a bulk terminal or a 
pipeline facility to submit the following four types of reports: (1) 
Initial Notification; (2) Notification of Compliance Status; (3) 
periodic reports (including excess emissions reports); and (4) other 
reports.
    The purpose and contents of each of these reports are described in 
this section. The proposed rule requires all reports to be submitted to 
the ``Administrator.'' The term Administrator refers either to the 
Administrator of the Agency, an Agency regional office, a State agency, 
or other entity that has been delegated the authority to implement this 
rule. In most cases, reports will be sent to State agencies. Addresses 
are provided in the General Provisions of 40 CFR part 63, subpart A.
    Records of reported information and other information necessary to 
document compliance with the regulations are generally required to be 
kept for 5 years. Records pertaining to the design and operation of the 
control and monitoring equipment must be kept for the life of the 
equipment.
    Owners or operators of bulk gasoline plants and, under Regulatory 
Alternative 2, gasoline dispensing facilities, would be subject to 
reduced reporting requirements because their only requirement under the 
proposed rule is submerged fill of storage tanks and cargo tanks and 
equipment leak inspections at bulk plants. As discussed earlier, most 
States already require submerged filling at bulk plants and gasoline 
dispensing facilities, and as much as 99 percent of the gasoline is 
delivered using this technology. Additionally, confirming compliance 
with the submerged fill requirement is easily performed in the field. 
We estimate that approximately 260,000 gasoline dispensing facilities 
in Urban 1 and Urban 2 areas and 4,400 bulk plants in all counties 
nationwide currently utilize submerged filling of their storage tanks 
and cargo tanks due to State or local regulations. As a means of 
reducing the burden on these smaller facilities, we are proposing that 
bulk plants and gasoline dispensing facilities located in States that 
require submerged filling of storage tanks and cargo tanks not be 
required to submit an Initial Notification and a Notification of 
Compliance Status. We estimate that the burden of filing these 
notifications would be as much as $30 million for these facilities that 
are already complying with the requirements of this proposed rule. We 
are requesting comment on the elimination of the requirement to file 
the Initial Notification and Notification of Compliance Status in areas 
already required to install this equipment.
    The Initial Notification and the Notification of Compliance Status 
would still be required, however, for bulk gasoline plants and, if we 
select Regulatory Alternative 2, gasoline dispensing facilities in 
other States (see listing in docket). We are nevertheless proposing to 
simplify these notifications by providing examples of forms that 
request only the minimum amount of information that would be necessary. 
In addition, if an affected bulk plant or gasoline dispensing facility 
is already in compliance with this proposed rule prior to the date that 
the Initial Notification is due, the two notifications could be 
combined. Bulk plant owners or operators would, however, be required to 
report, in a semiannual compliance report, a failure to repair an 
identified equipment leak within the specified number of days. There 
would, however, be no other requirements for routine semiannual 
compliance reporting for either bulk plants or gasoline dispensing 
facilities.
1. Initial Notification
    The proposed standards would require owners or operators to submit 
an Initial Notification. This report notifies the Agency of 
applicability for existing facilities or of construction for new 
facilities as outlined in 40 CFR 63.5 (the General Provisions), 
whichever is applicable. A respondent must also report any facility 
reconstructions as defined in 40 CFR 63.5. This report will establish 
an early dialogue between the source and the regulatory agency, 
allowing both to plan for compliance activities. The notice is due 
within 120 days after the effective date of this proposed rule or 
within 120 days after the source becomes subject to the relevant 
standard.
    The Initial Notification must include a statement as to whether the 
source can achieve compliance by the specified compliance date. If an 
existing source anticipates a delay that is beyond its control, it is 
important for the owner or operator to discuss the problem with the 
regulatory authority as early as possible. This report will also 
include a description of the parameter monitoring system intended to be 
used in

[[Page 66076]]

conjunction with the vapor processing system. Pursuant to section 
112(i)(3)(B) of the CAA, the proposed standards contain provisions for 
a 1-year compliance extension to be granted by the Administrator on a 
case-by-case basis.
2. Notification of Compliance Status
    The Notification of Compliance Status would be submitted no later 
than 60 days after the facility's initial compliance demonstration. It 
contains the information necessary to demonstrate that compliance has 
been achieved, such as the results of the initial performance test on 
vapor processing systems. The submission of the performance test report 
will allow the regulatory authority to verify that the source has 
followed the correct sampling and analytical procedures, and has 
performed all calculations correctly. Included in the performance test 
report would be the calculation of the operating parameter value for 
the selected operating parameter to be monitored in the vapor 
processing system. The notification must include the data and rationale 
to support this parameter value as ensuring continuous compliance with 
the emission limit.
3. Periodic Reports
    Periodic reports are required to ensure that the standards continue 
to be met and that all equipment is operated and maintained properly. 
Generally, periodic reports would be submitted semiannually. However, 
the Administrator may request that the owner or operator submit more 
frequent reports if more frequent reporting is necessary to accurately 
assess the compliance status of the source.
    The semiannual compliance report would include a summary of the 
results of the continuous parameter monitoring, storage tank 
inspections, and equipment leak inspections. An excess emissions report 
would also be submitted along with the semiannual report, if 
applicable. Excess emissions events would include deviations from the 
established reference values used for continuous parameter monitoring. 
For loading racks, each loading of a gasoline cargo tank for which 
vapor tightness documentation had not been previously obtained by the 
facility would also be considered a reportable excess emissions event.
    Owners and operators are also required to keep records of monthly 
equipment leak inspections, and to furnish reports on inspection 
results, as specified in 40 CFR 63.11095(a)(3). Facilities must also 
retain records and submit reports of annual inspections of storage 
vessels in accordance with 40 CFR 63.11095(a).
4. Other Reports
    There are also a limited number of other, non-routine reports 
required under the General Provisions. For example, notification before 
a performance test or a storage vessel inspection is required to allow 
the regulatory authority the opportunity to have an observer present 
(as specified in the General Provisions). This type of reporting must 
be done separately from the periodic reports because some situations 
require a shorter term response from the reviewing authority.
    Reports of start of construction, anticipated and actual startup 
dates, and modifications, as required under 40 CFR 63.5 and 63.9, are 
entered into the Agency's Aerometric Information Retrieval System 
(AIRS) and are used to determine whether emission limits are being met.
    Records required under the proposed standards are generally 
required to be kept for 5 years. General recordkeeping requirements are 
contained in 40 CFR 63.10(b). These requirements include records of 
malfunctions and maintenance performed on the vapor processing system 
and the parameter monitoring system. At bulk gasoline terminals, vapor 
tightness (annual test) documentation for each gasoline cargo tank 
loading at the terminal is required. Continuous monitoring data from 
the parameter monitor on the vapor processor will provide a record of 
continuous compliance with the emission standard. Records of storage 
vessel inspections, operating plans, and other details of controlled 
storage vessels at terminals and pipeline stations are to be kept as 
specified under either 40 CFR 60.115b or 40 CFR 63.1065, depending on 
the compliance option chosen.

G. How did we decide to exempt gasoline distribution area sources from 
the CAA title V permit requirements?

    Section 502(a) of the CAA provides that EPA may exempt one or more 
area sources from the requirements of title V if EPA finds that 
compliance with such requirements is ``impracticable, infeasible, or 
unnecessarily burdensome'' on such area sources. EPA must determine 
whether to exempt an area source from title V at the time we issue the 
relevant CAA section 112 standard (40 CFR 70.3(b)(2)). We are proposing 
in today's action to exempt gasoline distribution area sources from the 
requirements of title V. Gasoline distribution area sources would not 
be required to obtain title V permits solely as a function of being the 
subject of today's proposed NESHAP; however, if they were otherwise 
required to obtain title V permits, such requirement(s) would not be 
affected by today's proposed exemption.
    Consistent with the statute, EPA has found that compliance with 
title V permitting is ``unnecessarily burdensome'' for gasoline 
distribution area sources. EPA's inquiry into whether this criterion 
was satisfied was based primarily upon consideration of the following 
four factors: (1) Whether title V would result in significant 
improvements to the compliance requirements that we are proposing for 
this area source category; (2) whether title V permitting would impose 
a significant burden on gasoline distribution area sources; (3) whether 
the costs of title V permitting for gasoline distribution area sources 
would be justified, taking into consideration any potential gains in 
compliance likely to occur for such sources; and (4) whether there are 
implementation and enforcement programs in place that are sufficient 
for assuring compliance with this NESHAP without relying on title V 
permits.
    Additionally, EPA also considered whether exempting gasoline 
distribution area sources would adversely affect public health, welfare 
or the environment. We first determined the extent to which these 
factors were present for this area source category. We then determined 
whether those factors collectively demonstrated that compliance with 
title V requirements would be unnecessarily burdensome for gasoline 
distribution area sources.
    In our consideration of these factors we believe the addition of 
title V permitting would not result in significant improvements to the 
compliance requirements that we are proposing for this area source 
category. We believe we are proposing proper levels of testing, 
monitoring, reporting, and recordkeeping, thus ensuring continuous 
compliance. As discussed earlier in this section, the proposed levels 
of testing and monitoring are based on the current levels of testing 
and monitoring required by many years of rule implementation under 
Federal, State, local, and tribal agencies for these emission sources. 
We are unaware of any additional compliance procedures, in or outside 
the title V program, which would improve the assurance of significantly 
more gains in compliance and emission reductions.
    We also believe that title V permitting may impose a significant 
burden on facilities within this source category, some of which are 
small businesses. For

[[Page 66077]]

many facilities, the cost of obtaining a title V permit may far exceed 
the cost of complying with this proposed rule without significant gains 
in compliance. In addition, because most of the facilities that are 
subject to this proposed rule are already subject to State or local 
rules with the same or similar control requirements, the implementation 
and enforcement programs in place are sufficient for assuring 
compliance with this NESHAP without relying on title V permits.
    Based on the above analysis, we conclude that title V permitting 
would be ``unnecessarily burdensome'' for gasoline distribution area 
sources. We are therefore proposing that this area source category be 
exempt from title V permitting requirements.

H. How did we determine the compliance date for existing facilities?

    Section 112(i)(3)(A) of the CAA directs EPA to establish compliance 
dates for existing sources that provide for compliance as expeditiously 
as practicable, but in no event later than 3 years after the effective 
date of a standard. We are proposing in today's action a compliance 
date for existing facilities of 3 years after promulgation of the final 
rule. See 40 CFR 63.11083.
    Our selection of a 3-year compliance period was based on several 
factors. First, for storage tanks and loading racks at bulk terminals 
and for storage tanks at pipeline breakout stations, the 3-year period 
is consistent with the requirements found in the Major Source NESHAP. 
Because today's proposed rule would control the same types of emission 
sources as the Major Source NESHAP, we concluded that it was reasonable 
to allow the same compliance period. Some facilities affected by 
today's proposed rule will be required to install control equipment to 
comply with the rule. The amount of time necessary to plan, purchase, 
and install storage tank rim seals or loading rack vapor collection and 
control devices is expected to be significant. Also, because the area 
source facilities covered by today's proposed rule are smaller than the 
facilities covered by the Major Source NESHAP, requiring a shorter 
compliance period did not appear reasonable.
    We are also proposing a 3-year compliance period for the submerged 
fill requirements at bulk plants and at gasoline dispensing facilities 
in urban areas. These are typically small facilities and many of them 
meet the definition of a small business entity. These smaller 
facilities do not typically have environmental or legal expertise on 
staff and would, therefore, often need additional time to develop an 
understanding of the requirements of the proposed rule and to develop 
and implement a plan of action to comply. Although the estimated costs 
for these facilities to comply with the requirements is considered 
reasonable, it may take longer for them to plan for or arrange the 
funding for purchasing and installing control equipment. For these 
reasons, we concluded that a 3-year compliance period was reasonable 
for these smaller facilities. We request comment on the appropriateness 
of extending the proposed timeframe to the full 3-year period for an 
existing source to comply with this area source rule.

V. Summary of Environmental, Energy, Cost, and Economic Impacts

    As discussed earlier, gasoline distribution activities are carried 
out at several different types of facilities. These include bulk 
terminals, pipeline breakout stations, pipeline pumping stations, bulk 
plants, and gasoline dispensing facilities. Our analysis of the 
gasoline distribution industry led us to estimate that there were 
approximately the following numbers of potentially affected area 
sources within each type of facility: 980 bulk terminals, 400 pipeline 
breakout stations, 1,800 pipeline pumping stations, 390 bulk plants, 
and 1,900 gasoline dispensing facilities. The following paragraphs 
present our estimates of the impacts that this proposed rule would have 
on these facilities.

A. What are the air impacts?

    Nationwide, gasoline distribution facilities emit annually an 
estimated 475,000 tons of VOC and 35,500 tons of HAP (including 1,300 
tons of benzene). As discussed earlier, emissions of EDC have already 
been eliminated from this source category. If we select Regulatory 
Alternative 1 as the final standard, we estimate that, after the 
alternative is implemented, annual HAP emissions will be reduced by 
3,300 tons, which includes 120 tons of benzene, from 3,300 facilities. 
The alternative will also reduce VOC emissions by 45,000 tons per year. 
This represents about a 9 percent reduction in emissions of these 
pollutants, compared to the baseline. If we select Regulatory 
Alternative 2 as the final standard, we estimate that, after the 
alternative is implemented, annual HAP emissions will be reduced by 
3,400 tons, which includes 125 tons of benzene, from 5,200 facilities. 
The alternative will also reduce VOC emissions by 46,200 tons per year, 
which represents about a 10 percent reduction in emissions of these 
pollutants, compared to the baseline.
    On March 29, 2006, EPA proposed (71 FR 15804) additional controls 
on gasoline, passenger vehicles, and portable gasoline containers under 
the Mobile Source Air Toxics (MSAT) Program. The proposed MSAT rule 
would require that the benzene content of gasoline be reduced by about 
37 percent overall by January 1, 2011. Taking into account the lower 
benzene content of gasoline that is estimated to result from the 
implementation of the MSAT rule (if the rule is finalized as proposed), 
baseline emissions of HAP and benzene from this source category in 2011 
would be about 35,145 tons and 820 tons, respectively. Regulatory 
Alternative 1 is estimated to achieve a HAP reduction of 3,260 tons per 
year (rather than the 3,300 presented earlier) and a benzene reduction 
of 77 tons per year (rather than 120 tons) if the MSAT rule is 
finalized as proposed. Regulatory Alternative 2 is estimated to achieve 
a HAP reduction of 3,360 tons per year (rather than the 3,400 presented 
earlier) and a benzene reduction of 80 tons per year (rather than 125 
tons) if the MSAT rule is finalized as proposed.
    We project that any adverse air impacts associated with this 
proposed rule will be insignificant. The only control technology 
utilized to meet the requirements in the proposed rule that would lead 
to adverse air impacts is the use of thermal oxidizers to control 
gasoline vapors. These devices typically use natural gas as a 
supplemental fuel to achieve the required minimum temperatures in the 
combustion chamber. Emissions from these devices include the products 
of combustion created by the combustion of natural gas and gasoline 
vapors. There are, however, alternative control technologies, such as 
carbon adsorbers, that do not rely on combustion for control of the 
gasoline vapors. Carbon adsorption devices recover gasoline vapors and 
provide a cost benefit from the recovered product.
    The alternatives being proposed today would reduce benzene 
emissions in this source category by 120 and 125 tons annually (about a 
9 and 10 percent reduction from current total emissions), respectively, 
from Regulatory Alternatives 1 and 2. Using national data from all 
stationary benzene emission sources in the 1999 National Air Toxic 
Assessment (NATA) and ratioing them to the national benzene emissions 
from this source category, we approximate that this proposal will 
reduce incidences of cancer from benzene exposure by 0.037 and 0.039 
cases per year, respectively, from Regulatory Alternatives 1 and 2. 
Regulatory Alternative 3 reduces about

[[Page 66078]]

20 percent of current benzene emissions from these sources, resulting 
in a reduction of incidences of cancer from benzene exposure by 0.08 
cases per year. These approximations are considered a very rough 
estimate because no exposure analysis was performed for this source 
category and the 1999 NATA data should be used cautiously, as the 
overall quality and uncertainties of the NATA results will vary from 
location to location as well as from pollutant to pollutant. In 
addition, EPA's Scientific Advisory Board has cautioned the Agency 
against using the results of the NATA assessment for regulatory 
purposes. Further information on the limitations of NATA is discussed 
at the following Web site: http://www.epa.gov/ttn/atw/nata1999/index.html
.


B. What are the cost impacts?

    The cost of implementing the proposed standards for gasoline 
distribution area source facilities would include the capital and 
annualized costs to control storage tanks, loading racks, and equipment 
leaks, as well as the costs of complying with the testing, monitoring, 
reporting, and recordkeeping requirements. The proposed standards are 
estimated to result in capital expenditures of approximately $60 
million for Regulatory Alternative 1 and $65 million for Regulatory 
Alternative 2.
    The annualized cost \3\ of the capital expenditures is estimated to 
be about $7.1 million for Regulatory Alternative 1 and $7.6 million for 
Regulatory Alternative 2. Annual operating and maintenance costs are 
estimated at about $3.6 million, for each of the alternatives. We have 
estimated the annual costs of testing, monitoring, reporting, and 
recordkeeping to be about $23 million for Regulatory Alternative 1 and 
$24 million for Regulatory Alternative 2. Because of the value \4\ of 
the product that is either recovered or prevented from evaporating, 
however, we estimate that the annualized cost of the proposed standards 
is a credit of about $6 million for both alternatives ($47,000 
incremental annualized cost between Regulatory Alternatives 1 and 2).
---------------------------------------------------------------------------

    \3\ Capital is annualized over 10 years for loading rack 
equipment, 15 years for submerged fill equipment, and 20 years for 
storage tank equipment. We used a discount rate of 10 percent for 
this analysis, and when evaluating public comments we will update 
the final analysis by using the current economic practice discount 
rate of 7 percent.
    \4\ The recovered product value we used in this analysis is 
$1.70 per gallon for wholesale gasoline.
---------------------------------------------------------------------------

C. What are the economic impacts?

    This proposal affects area sources from pipeline transportation, 
bulk stations and terminals, local and long-haul trucking, and gasoline 
stations which make up the gasoline distribution industry. We performed 
an economic impact analysis with methodology based on a single-market 
partial-equilibrium analysis of the national gasoline market. The 
analysis estimates changes in gas prices and outputs for affected 
sources under the three regulatory alternatives discussed above.
    The results of our analysis are as follows. The compliance cost 
results in an insignificant increase in gasoline prices for each 
alternative: 0.01 percent increase in price for Regulatory Alternatives 
1 and 2, 0.02 percent increase in price for Regulatory Alternative 3. 
Given the small increase in prices, the corresponding reductions in 
gasoline output are minor for each alternative: -0.002 percent for 
Regulatory Alternatives 1 and 2, -0.003 percent for Regulatory 
Alternative 3. The overall total annual social costs/gains, which 
reflect changes in consumer and producer behavior in response to the 
compliance costs, are $6 million in gains for Regulatory Alternatives 1 
and 2, and a $32 million cost for Regulatory Alternative 3. The net 
gains for Regulatory Alternatives 1 and 2 are the result of surplus 
increases from fuel savings valued at $40 to $41 million.
    For more information, please refer to the Economic Impact Analysis 
report that is in the public docket for this rule.

D. What are the non-air environmental and energy impacts?

    Water quality would not be affected by implementation of this 
proposed rule. This proposed rule does not contain any requirements 
related to water discharges, wastewater collection, or spill 
containment, and no additional gasoline is expected to enter these 
areas as a result of this proposed rule.
    We also project that there will be no significant solid waste 
impact. Neither thermal oxidizers nor condensers generate any solid 
waste as a by-product of their operation. When carbon adsorption 
systems are used, the spent activated carbon that cannot be further 
regenerated may be disposed of in a landfill, which would contribute a 
small amount of solid waste.
    The control devices used to control emissions from loading racks 
and some storage tanks use electric motor-driven blowers, dampers, or 
pumps, depending on the type of system, in addition to electronic 
control and monitoring systems. The installation of these devices would 
have a small negative energy impact. We believe, however, that there 
will be very few, if any, new installations of these control devices as 
a result of this proposed rule. Also, because the liquid being 
controlled by these systems is gasoline, and some of the applied 
control measures would keep this fuel in the distribution system, they 
would have a positive impact on this form of energy. We estimate that 
this proposed rule would prevent a total of approximately 14.3, 14.7, 
and 30 million gallons of gasoline from being lost to evaporation 
annually for Regulatory Alternatives 1, 2, and 3, respectively.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is a ``significant regulatory action.'' The Executive Order 
defines ``significant regulatory action'' as one that is likely to 
result in a rule that may ``raise novel legal or policy issues arising 
out of legal mandates, the President's priorities, or the principles 
set forth in the Executive Order.'' Accordingly, EPA submitted this 
action to OMB for review under Executive Order 12866 and any changes 
made in response to OMB recommendations have been documented in the 
docket for this action.

B. Paperwork Reduction Act

    The information collection requirements in this proposed rule have 
been submitted for approval to OMB under the Paperwork Reduction Act, 
44 U.S.C. 3501, et seq. An Information Collection Request (ICR) 
document has been prepared by EPA has been assigned EPA ICR number 
2237.01. A copy may be obtained from Susan Auby, Collection Strategies 
Division (2822T), EPA, 1200 Pennsylvania Avenue, NW., Washington, DC 
20460, or by calling (202) 566-1672. A copy may also be downloaded from 
the public docket for this action (Docket ID number EPA-HQ-OAR-2006-
0406), which can be found in http://www.regulations.gov.

    The information to be collected for the area source rule proposed 
today are based on notification, recordkeeping, and reporting 
requirements in the NESHAP General Provisions in 40 CFR part 63, 
subpart A, which are mandatory for all operators subject to national 
emission standards. These recordkeeping and reporting requirements are 
specifically authorized

[[Page 66079]]

by section 114 of the CAA (42 U.S.C. 7414). All information submitted 
to the EPA pursuant to the recordkeeping and reporting requirements for 
which a claim of confidentiality is made is safeguarded according to 
EPA policies set forth in 40 CFR part 2, subpart B.
    The proposed rule would require performance testing of control 
devices used to control emissions from loading racks at bulk terminals 
and from some storage tanks at bulk terminals and pipeline breakout 
stations; annual inspections of storage tanks at bulk terminals and 
pipeline breakout stations; collection of cargo tank vapor tightness 
documentation by bulk terminals; and monthly equipment leak inspections 
at bulk terminals, pipeline breakout stations, pipeline pumping 
stations, and bulk plants. The proposed rule would not require any 
notifications or reports beyond those required by the General 
Provisions. The recordkeeping requirements require only the specific 
information needed to determine compliance. We have taken steps, as 
described in section IV.F of this preamble, to minimize the reporting 
and recordkeeping requirements for the smaller facilities (bulk plants 
and gasoline dispensing facilities) that are affected by the proposed 
rule.
    The annual monitoring, reporting, and recordkeeping burden to 
affected sources for this collection (averaged over the first 3 years 
after the effective date of the promulgated rule) is estimated to be 
about 204,100 labor hours per year, with a total annual cost of $13.4 
million per year. Most of this burden will be spread over approximately 
11,160 facilities that will be required to keep records and file 
reports. Of this total burden, however, about 84,240 labor hours (and 
$5.7 million) will be incurred by 1,560 of the larger facilities (bulk 
terminals and pipeline breakout stations). Depending on the facility 
type, these estimates include two one-time notifications, a one-time 
performance test and report for control devices, periodic equipment 
inspections, and semiannual compliance reporting.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information, unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9 and 48 CFR chapter 
15.
    To comment on the Agency's need for this information, the accuracy 
of the provided burden estimates, and any suggested methods for 
minimizing respondent burden, including through the use of automated 
collection techniques, EPA has established a public docket for this 
proposed rule, which includes this ICR, under Docket ID number EPA-HQ-
OAR-2006-0406, which can be found in http://www.regulations.gov. Submit any 

comments related to the ICR for this proposed rule to EPA and OMB. See 
ADDRESSES section at the beginning of this notice for where to submit 
comments to EPA. Send comments to OMB at the Office of Information and 
Regulatory Affairs, Office of Management and Budget, 725 17th St., NW., 
Washington, DC 20503, Attention: Desk Office for EPA. Since OMB is 
required to make a decision concerning the ICR between 30 and 60 days 
after November 9, 2006, a comment to OMB is best assured of having its 
full effect if OMB receives it by December 11, 2006. The final rule 
will respond to any OMB or public comments on the information 
collection requirements contained in this proposal.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedure Act or any other statute unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For the purposes of assessing the impacts of this proposed rule on 
small entities, small entity is defined as: (1) A small business whose 
parent company has less than $25 million in revenue (NAICS 447110, 
Gasoline Stations with Convenience Stores), less than $23.5 million in 
revenue (NAICS 484220 and 484230, Hazardous Materials Trucking [except 
waste], local and long-distance), and less than $8.0 million in revenue 
(NAICS 447190, Other Gasoline Stations), and fewer than 100 employees 
(NAICS 424710, Petroleum Bulk Stations and Terminals), and 1,500 
employees (NAICS 486910, Pipeline Transportation of Refined Petroleum 
Products) based on the Small Business Administration size standards; 
(2) a small governmental jurisdiction that is a government of a city, 
county, town, school district or special district with a population of 
less than 50,000; and (3) a small organization that is any not-for-
profit enterprise which is independently owned and operated and is not 
dominant in its field. Under these definitions, approximately 60,000 
gasoline distribution firms are considered small entities. For more 
information, refer to http://www.sba.gov/size/sizetable2002.html. The 

economic impacts of the regulatory alternatives are analyzed based on 
the consumption of gasoline. However, for the small business impact 
analysis, these impacts are described in terms of comparing the 
compliance costs to sales revenues for representative entities. For 
more detail, see the current Economic Impact Analysis in the public 
docket.
    After considering the economic impacts of this proposed rule on 
small entities, I certify that the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
This certification is based on the economic impact of the proposed rule 
to affected small entities in the entire gasoline distribution 
industry. The small entities directly regulated by the proposed rule 
are industries within the NAICS codes 424710, 447110, 447190, 484220, 
and 484230. We have determined that Pipeline Transportation of Refined 
Petroleum Products (NAICS 486910) does not contain any small business 
entities and, therefore, is not included in the small business impact 
analysis. For the regulatory alternatives analyzed, all gasoline 
distribution industry categories that contain small business entities 
are expected to have an average annual cost to sales ratio of less than 
1 percent with cost impacts for all regulated small entities ranging 
from a cost savings to less than 0.12 percent of sales. In addition, no 
other adverse impacts are expected to occur to these affected small 
businesses.
    Cost impacts associated with these proposed standards for area 
sources are presented in Section V.B of this preamble. For more 
information on the small entity economic impacts associated with the 
proposed decisions for gasoline distribution industries affected by 
today's action, please refer to

[[Page 66080]]

the Economic Impact and Small Business Analyses in the public docket.
    Although the proposed rule would not have a significant economic 
impact on a substantial number of small entities, we nonetheless tried 
to reduce the impact of the proposed rule on small entities. When 
developing the regulatory alternatives, we took special steps to ensure 
that the burdens imposed on small entities were minimal. We conducted 
meetings with industry officials to discuss regulatory options and the 
corresponding burden on industry, such as recordkeeping and reporting.
    Following publication of the proposed rule, copies of the Federal 
Register notice and, in some cases, background documents, will be 
publicly available (see Docket in the ADDRESSES section of this 
preamble) to all industries, organizations, and trade associations that 
have had input during the regulation development, as well as State and 
local agencies. We continue to be interested in the potential impacts 
of the proposed rule on small entities and welcome comments on issues 
related to such impacts.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million or more in any 
1 year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires us to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective, or least burdensome alternative 
that achieves the objectives of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows us to adopt an alternative other than the least 
costly, most cost-effective, or least burdensome alternative if the 
Administrator publishes with the final rule an explanation why that 
alternative was not adopted. Before we established any regulatory 
requirements that may significantly or uniquely affect small 
governments, including tribal governments, we must have developed under 
section 203 of the UMRA a small government agency plan. The plan must 
provide for notifying potentially affected small governments, enabling 
officials of affected small governments to have meaningful and timely 
input in the development of regulatory proposals with significant 
Federal intergovernmental mandates, and informing, educating, and 
advising small governments on compliance with the regulatory 
requirements.
    We have determined that the options considered in this proposed 
rule do not contain a Federal mandate that may result in expenditures 
of $100 million or more to State, local, and tribal governments in the 
aggregate, or to the private sector in any 1 year. Thus, this proposed 
rule is not subject to the requirements of sections 202 and 205 of the 
UMRA. Additionally, for the same reason as above for all governments, 
we believe the options considered in this proposed rule do not contain 
requirements that might significantly or uniquely affect small 
governments.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    This proposed rule does not have federalism implications. It will 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. Thus, the requirements of the 
Executive Order do not apply to this proposed rule.
    In the spirit of Executive Order 13132 and consistent with EPA 
policy to promote communications between EPA and State and local 
governments, EPA specifically solicits comment on this proposed rule 
from State and local officials.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' ``Policies that have tribal 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on one or more Indian tribes, on 
the relationship between the Federal government and the Indian tribes, 
or on the distribution of power and responsibilities between the 
Federal government and Indian tribes.''
    This proposed rule does not have tribal implications, as specified 
in Executive Order 13175. It will not have substantial direct effects 
on tribal governments, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes. 
Thus, Executive Order 13175 does not apply to this proposed rule.
    EPA specifically solicits additional comment on this proposed rule 
from tribal officials.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045 (62 FR 19885, April 23, 1997) applies to any 
rule that: (1) Is determined to be ``economically significant'' as 
defined under Executive Order 12866, and (2) concerns an environmental 
health or safety risk that EPA has reason to believe may have a 
disproportionate effect on children. If the regulatory action meets 
both criteria, we must evaluate the environmental health or safety 
effects of the planned rule on children and explain why the planned 
regulation is preferable to other potentially effective and reasonably 
feasible alternatives considered by the Agency.
    We interpret Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Executive Order has 
the potential to influence the regulation. This proposed rule is not 
subject to Executive Order 13045 because it is based on technology 
performance and not on health or safety risks. No children's risk 
analysis was performed because no alternative technologies exist that 
would provide greater stringency at a reasonable cost. Furthermore, 
this proposed rule has been determined not to be ``economically 
significant'' as defined under Executive Order 12866.

[[Page 66081]]

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This proposed rule is not an economically significant energy action 
as defined in Executive Order 13211 (66 FR 28355, May 22, 2001) because 
it is not likely to have a significant adverse effect on the supply, 
distribution, or use of energy. Further, we have concluded that this 
proposed rule is not likely to have any adverse energy impacts.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), Public Law No. 104-113, 12(d) (15 U.S.C. 272 note) 
directs EPA to use voluntary consensus standards (VCS) in its 
regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impractical. VCS are technical standards 
(e.g., materials specifications, test methods, sampling procedures, and 
business practices) that are developed or adopted by VCS bodies. The 
NTTAA directs EPA to provide Congress, through OMB, explanations when 
the Agency decides not to use available and applicable VCS.
    This proposed rule does not include any test methods that have not 
undergone the NTTAA review during the development of the NESHAP for 
gasoline distribution (Stage I). During the development of amendments 
to the NESHAP in 2005 we incorporated by reference an industry standard 
test method for detecting vapor leaks in railcar cargo tanks. This 
method was found to be an acceptable alternative to EPA Reference 
Method 27. No other VCS have been identified that are applicable to 
this proposed rule.

List of Subjects for 40 CFR Part 63

    Environmental protection, Administrative practice and procedures, 
Air pollution control, Intergovernmental relations, Reporting and 
recordkeeping requirements.

    Dated: October 31, 2006.
Stephen L. Johnson,
Administrator.
    For the reasons set out in the preamble, title 40, chapter I, part 
63 of the Code of Federal Regulations is proposed to be amended as 
follows:

PART 63--[AMENDED]

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

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

    2. Part 63 is amended by adding a new subpart BBBBBB to read as 
follows:
Subpart BBBBBB--National Emission Standards for Hazardous Air 
Pollutants for Source Category: Gasoline Distribution Bulk Terminals, 
Bulk Plants, Pipeline Facilities, and Gasoline Dispensing Facilities

What This Subpart Covers

Sec.
63.11080 What is the purpose of this subpart?
63.11081 Am I subject to the requirements in this subpart?
63.11082 What parts of my affected source does this subpart cover?
63.11083 When do I have to comply with this subpart?

Emission Limitations, Operating Limits, and Work Practice Standards

63.11085 What requirements must I meet if my facility is a gasoline 
dispensing facility?
63.11086 What requirements must I meet if my facility is a bulk 
gasoline plant?
63.11087 What requirements must I meet for gasoline storage tanks if 
my facility is a bulk gasoline terminal, pipeline breakout station, 
or pipeline pumping station?
63.11088 What requirements must I meet for gasoline loading racks if 
my facility is a bulk gasoline terminal, pipeline breakout station, 
or pipeline pumping station?
63.11089 What requirements must I meet for equipment leak 
inspections if my facility is a bulk gasoline terminal, pipeline 
breakout station, or pipeline pumping station?

Testing and Monitoring Requirements

63.11092 What testing requirements must I meet?

Notification, Reports, and Records

63.11093 What notifications must I submit and when?
63.11094 What are my recordkeeping requirements?
63.11095 What are my reporting requirements?

Other Requirements and Information

63.11098 What parts of the General Provisions apply to me?
63.11099 Who implements and enforces this subpart?
63.11100 What definitions apply to this subpart?

Tables to Subpart BBBBBB of Part 63

Table 1 to Subpart BBBBBB of Part 63--Applicability Criteria, Emission 
Limits, and Work Practice Standards for Storage Tanks

Table 2 to Subpart BBBBBB of Part 63--Applicability Criteria, Emission 
Limits, and Work Practice Standards for Loading Racks

Table 3 to Subpart BBBBBB of Part 63--Applicability of General 
Provisions

Subpart BBBBBB--National Emission Standards for Hazardous Air 
Pollutants for Source Category: Gasoline Distribution Bulk 
Terminals, Bulk Plants, Pipeline Facilities, and Gasoline 
Dispensing Facilities

What This Subpart Covers


Sec.  63.11080  What is the purpose of this subpart?

    This subpart establishes national emission limitations, work 
practice standards, and equipment inspection requirements for organic 
hazardous air pollutants (HAP) emitted from area source gasoline 
distribution facilities. This subpart also establishes requirements to 
demonstrate compliance with the emission limitations, work practice 
standards, and equipment inspection requirements.


Sec.  63.11081  Am I subject to the requirements in this subpart?

    (a) The affected source to which this subpart applies is each bulk 
gasoline terminal, pipeline breakout station, pipeline pumping station, 
bulk gasoline plant, and gasoline dispensing facility identified in 
paragraphs (a)(1) through (5) of this section. You are subject to the 
requirements in this subpart if you own or operate one or more of the 
affected area sources identified in paragraphs (a)(1) through (5) of 
this section.
    (1) A bulk gasoline terminal that is not subject to the control 
requirements of 40 CFR part 63, subpart R (Sec. Sec.  63.422, 63.423, 
and 63.424) or 40 CFR part 63, subpart CC (Sec. Sec.  63.646, 63.648, 
63.649, and 63.650).
    (2) A pipeline breakout station that is not subject to the control 
requirements of 40 CFR part 63, subpart R (Sec. Sec.  63.423 and 
63.424) of this part.
    (3) A pipeline pumping station.
    (4) A bulk gasoline plant.
    (5) A gasoline dispensing facility located in an Urban 1 or Urban 2 
area.
    (b) If you are an owner or operator of affected sources in (a)(1) 
through (5) of this section, you are not required to meet the 
obligation to obtain a permit under 40 CFR part 70 or 40 CFR part 71, 
provided you are not otherwise required to obtain a permit under 40 CFR 
70.3(a) or 40 CFR part 71.3(a).

[[Page 66082]]

Sec.  63.11082  What parts of my affected source does this subpart 
cover?

    The emission sources to which this subpart applies are gasoline 
storage tanks, gasoline loading racks, vapor collection-equipped 
gasoline cargo tanks, and equipment components in vapor or liquid 
gasoline service that meet the criteria specified in Tables 1 through 3 
to this subpart.


Sec.  63.11083  When do I have to comply with this subpart?

    (a) If you have a new or reconstructed affected source, you must 
comply with this subpart according to paragraphs (a)(1) and (2) of this 
section.
    (1) If you startup your affected source before [DATE OF PUBLICATION 
OF THE FINAL RULE IN THE Federal Register], you must comply with the 
standards in this subpart no later than [DATE OF PUBLICATION OF THE 
FINAL RULE IN THE Federal Register].
    (2) If you start up your affected source after [DATE OF PUBLICATION 
OF THE FINAL RULE IN THE Federal Register], you must comply with the 
standards in this subpart upon startup of your affected source.
    (b) If you have an existing affected source, you must comply with 
the standards in this subpart no later than [DATE 3 YEARS AFTER DATE OF 
PUBLICATION OF THE FINAL RULE IN THE Federal Register].
    (c) If a county where your gasoline dispensing facility resides is 
reclassified from rural to urban, you must comply with the standards in 
this subpart as specified in paragraphs (c)(1) through (3) of this 
section.
    (1) If your facility is an existing facility as of the date your 
county is reclassified, you must comply with the standards in this 
subpart no later than 3 years after the date of reclassification.
    (2) If you commence construction or reconstruction of your gasoline 
dispensing facility on or after the date of reclassification, and you 
start up your gasoline dispensing facility before the reclassification, 
you must comply with the standards in this subpart no later than the 
date of publication of reclassification.
    (3) If you commence construction or reconstruction of your gasoline 
dispensing facility on or after the date of reclassification, and you 
start up your gasoline dispensing facility after the date of 
reclassification, you must comply with the standards in this subpart 
upon startup of your gasoline dispensing facility.

Emission Limitations, Operating Limits, and Work Practice Standards


Sec.  63.11085  What requirements must I meet if my facility is a 
gasoline dispensing facility?

    Each owner or operator of an affected gasoline dispensing facility, 
as defined in Sec.  63.11100, must comply with the requirements of 
paragraphs (a) through (g) of this section, but is not required to 
comply with Sec.  63.11086, Sec.  63.11087, Sec.  63.11088, or Sec.  
63.11089.
    (a) You must utilize submerged filling, as defined in Sec.  
63.11100, for the loading of gasoline into storage tanks at your 
facility.
    (b) The emission sources listed in paragraphs (b)(1) and (2) of 
this section are not required to comply with the control requirements 
in this subpart.
    (1) Gasoline storage tanks with a capacity of less than 250 
gallons.
    (2) Gasoline storage tanks with a capacity of less than 550 gallons 
that are used exclusively for fueling implements of husbandry.
    (c) You must not allow gasoline to be handled in a manner that 
would result in vapor releases to the atmosphere for extended periods 
of time. Measures to be taken include, but are not limited to, the 
following:
    (1) Minimize gasoline spills;
    (2) Clean up spills as expeditiously as practicable;
    (3) Cover all open gasoline containers with a gasketed seal when 
not in use;
    (4) Minimize gasoline sent to open waste collection systems that 
collect and transport gasoline to reclamation and recycling devices, 
such as oil/water separators.
    (d) You must submit an initial notification that you are subject to 
this subpart by [DATE 120 DAYS AFTER DATE OF PUBLICATION OF THE FINAL 
RULE IN THE Federal Register] unless you meet the requirements in 
paragraph (f) of this section. The initial notification must contain 
the information specified in paragraphs (d)(1) through (3) of this 
section. The notification must be submitted to the applicable EPA 
Regional Office, as listed in Sec.  63.13, or the delegated State 
authority.
    (1) The name and address of the owner and the operator.
    (2) The address (i.e., physical location) of the gasoline 
dispensing facility.
    (3) A statement that the notification is being submitted in 
response to 40 CFR part 63, subpart BBBBBB and identifying whether or 
not the requirements in paragraphs (a), (b), and (c) of this section 
apply to you.
    (e) You must submit a notification of compliance status to the 
applicable EPA Regional Office or the delegated State authority by the 
compliance date specified in Sec.  63.11083. The notification of 
compliance status must be signed by a responsible official who must 
certify its accuracy and must indicate whether the source has complied 
with the requirements of this subpart. If your facility is in 
compliance with the requirements of this subpart at the time the 
initial notification required under paragraph (d) of this section is 
due, the notification of compliance status may be submitted in lieu of 
the initial notification provided it contains the information required 
under paragraph (d) of this section.
    (f) You are not required to submit an initial notification or a 
notification of compliance status under paragraph (d) or paragraph (e) 
of this section if, prior to [DATE OF PUBLICATION OF THE FINAL RULE IN 
THE Federal Register], you are meeting a submerged fill (as defined in 
Sec.  63.11100) requirement under an enforceable State, local, or 
tribal rule or permit.
    (g) You must comply with the requirements of this subpart by the 
applicable dates specified in Sec.  63.11083.


Sec.  63.11086  What requirements must I meet if my facility is a bulk 
gasoline plant?

    Each owner or operator of an affected bulk gasoline plant, as 
defined in Sec.  63.11100, must comply with the requirements of 
paragraphs (a) through (i) of this section, but is not required to 
comply with Sec.  63.11085, Sec.  63.11087, or Sec.  63.11088.
    (a) Except as specified in paragraph (b) of this section, you must 
utilize submerged filling, as defined in Sec.  63.11100, for the 
loading of gasoline into storage tanks at your facility.
    (b) The emission sources listed in paragraphs (b)(1) and (2) of 
this section are not required to comply with the control requirements 
in this subpart.
    (1) Gasoline storage tanks with a capacity of less than 250 
gallons.
    (2) Gasoline storage tanks with a capacity of less than 550 gallons 
that are used exclusively for fueling implements of husbandry.
    (c) You must utilize submerged filling, as defined in Sec.  
63.11100, for the loading of gasoline into gasoline cargo tanks at your 
facility.
    (d) You must perform a monthly leak inspection of all equipment in 
gasoline service according to the requirements specified in Sec.  
63.11089(a) through (f).
    (e) You must not allow gasoline to be handled in a manner that 
would result in vapor releases to the atmosphere for extended periods 
of time. Measures to be taken include, but are not limited to, the 
following:

[[Page 66083]]

    (1) Minimize gasoline spills;
    (2) Clean up spills as expeditiously as practicable;
    (3) Cover all open gasoline containers with a gasketed seal when 
not in use;
    (4) Minimize gasoline sent to open waste collection systems that 
collect and transport gasoline to reclamation and recycling devices, 
such as oil/water separators.
    (f) You must submit an initial notification that you are subject to 
this subpart by [DATE 120 DAYS AFTER DATE OF PUBLICATION OF THE FINAL 
RULE IN THE Federal Register] unless you meet the requirements in 
paragraph (h) of this section. The initial notification must contain 
the information specified in paragraphs (f)(1) through (4) of this 
section. The notification must be submitted to the applicable EPA 
Regional Office, as listed in Sec.  63.13, or the delegated State 
authority.
    (1) The name and address of the owner and the operator.
    (2) The address (i.e., physical location) of the bulk plant.
    (3) A statement that the notification is being submitted in 
response to subpart BBBBBB and identifying the requirements in 
paragraphs (a), (b), (c), (d), and (e) of this section that apply to 
you.
    (4) A brief description of the bulk plant, including the number of 
storage tanks in gasoline service, the capacity of each storage tank in 
gasoline service, and the average monthly gasoline throughput at the 
affected source.
    (g) You must submit a notification of compliance status to the 
applicable EPA Regional Office or the delegated State authority by the 
compliance date specified in Sec.  63.11083. The notification of 
compliance status must be signed by a responsible official who must 
certify its accuracy and must indicate whether the source has complied 
with the requirements of this subpart. If your facility is in 
compliance with the requirements of this subpart at the time the 
initial notification required under paragraph (f) of this section is 
due, the notification of compliance status may be submitted in lieu of 
the initial notification provided it contains the information required 
under paragraph (f) of this section.
    (h) You are not required to submit an initial notification or a 
notification of compliance status under paragraph (f) or (g) of this 
section if, prior to [DATE OF PUBLICATION OF THE FINAL RULE IN THE 
Federal Register], you are meeting a submerged fill (as defined in 
Sec.  63.11100) requirement under an enforceable State, local, or 
tribal rule or permit.
    (i) You must comply with the requirements of this subpart by the 
applicable dates specified in Sec.  63.11083.
    (j) You must keep applicable records and submit reports as 
specified in Sec.  63.11094(d) and (e) and Sec.  63.11095(b)(4).


Sec.  63.11087  What requirements must I meet for gasoline storage 
tanks if my facility is a bulk gasoline terminal, pipeline breakout 
station, or pipeline pumping station?

    (a) You must meet each emission limit and work practice standard in 
Table 1 to this subpart that applies to your gasoline storage tank.
    (b) You must comply with the requirements of this subpart by the 
applicable dates specified in Sec.  63.11083, except that storage 
vessels for which construction, reconstruction, or modification 
commenced before July 23, 1984, and storage vessels equipped with 
floating roofs, must be in compliance at the first degassing and 
cleaning activity after [DATE 3 YEARS AFTER DATE OF PUBLICATION OF THE 
FINAL RULE IN THE Federal Register], or by [DATE 10 YEARS AFTER DATE OF 
PUBLICATION OF THE FINAL RULE IN THE Federal Register], whichever is 
first.
    (c) You must comply with the applicable testing and monitoring 
requirements specified in Sec.  63.11092(e).
    (d) You must submit the applicable notifications as required under 
Sec.  63.11093.
    (e) You must keep records and submit reports as specified in 
Sec. Sec.  63.11094 and 63.11095.
    (f) If your gasoline storage tank is also subject to the control 
requirements of 40 CFR part 60, subpart Kb (Sec. Sec.  60.110b through 
60.117b) of this chapter, you must comply only with the provisions of 
subpart Kb.


Sec.  63.11088  What requirements must I meet for gasoline loading 
racks if my facility is a bulk gasoline terminal, pipeline breakout 
station, or pipeline pumping station?

    (a) You must meet the emission limit and work practice standard in 
Table 2 to this subpart.
    (b) Except as provided in paragraph (c) of this section, you must 
limit the loadings of gasoline into gasoline cargo tanks that are 
vapor-tight using the procedures specified in Sec.  60.502(e) through 
(j). For the purposes of this section, the term ``tank truck'' as used 
in Sec.  60.502(e) through (j) means ``cargo tank'' as defined in Sec.  
63.11100.
    (c) As an alternative to the requirements of paragraph (b) of this 
section, if your gasoline loading rack is required under a regulation 
or an operating permit issued by a State, local, or tribal agency to 
limit the loadings of gasoline into cargo tanks that are vapor tight, 
and you are in compliance with all applicable provisions of the 
regulation or your operating permit, you will be considered to be in 
compliance with paragraph (b) of this section, provided that you verify 
the appropriate documentation of vapor tightness testing prior to the 
loading of the cargo tank. The appropriate documentation may be in the 
form of a sticker placed on the cargo tank, a copy of the vapor 
tightness testing results carried on board the cargo tank, or other 
procedures approved by the State, local, or tribal agency.
    (d) As an alternative for railcar cargo tanks to the requirements 
specified in Sec.  60.502(h) and (i), you may comply with the 
requirements specified in Sec.  63.422(e).
    (e) You must comply with the requirements of this subpart by the 
applicable dates specified in Sec.  63.11083.
    (f) You must comply with the applicable testing and monitoring 
requirements specified in Sec.  63.11092.
    (g) You must submit the applicable notifications as required under 
Sec.  63.11093.
    (h) You must keep records and submit reports as specified in 
Sec. Sec.  63.11094 and 63.11095.


Sec.  63.11089  What requirements must I meet for equipment leak 
inspections if my facility is a bulk gasoline terminal, pipeline 
breakout station, or pipeline pumping station?

    (a) Each owner or operator of a bulk gasoline terminal, bulk plant, 
pipeline breakout station, or pipeline pumping station subject to the 
provisions of this subpart shall perform a monthly leak inspection of 
all equipment in gasoline service, as defined in Sec.  63.11100. For 
this inspection, detection methods incorporating sight, sound, and 
smell are acceptable.
    (b) A log book shall be used and shall be signed by the owner or 
operator at the completion of each inspection. A section of the log 
book shall contain a list, summary description, or diagram(s) showing 
the location of all equipment in gasoline service at the facility.
    (c) Each detection of a liquid or vapor leak shall be recorded in 
the log book. When a leak is detected, an initial attempt at repair 
shall be made as soon as practicable, but no later than 5 calendar days 
after the leak is detected. Repair or replacement of leaking equipment 
shall be completed within 15 calendar days after detection of each 
leak, except as provided in paragraph (d) of this section.
    (d) Delay of repair of leaking equipment will be allowed upon a

[[Page 66084]]

demonstration to the Administrator that repair within 15 days is not 
feasible. The owner or operator shall provide the reason(s) a delay is 
needed and the date by which each repair is expected to be completed.
    (e) As an alternative to compliance with the provisions in 
paragraphs (a) through (d) of this section, owners or operators may 
implement an instrument leak monitoring program that has been 
demonstrated to the Administrator as at least equivalent.
    (f) You must comply with the requirements of this subpart by the 
applicable dates specified in Sec.  63.11083.
    (g) You must submit the applicable notifications as required under 
Sec.  63.11093.
    (h) You must keep records and submit reports as specified in 
Sec. Sec.  63.11094 and 63.11095.

Testing and Monitoring Requirements


Sec.  63.11092  What testing and monitoring requirements must I meet?

    (a) Each owner or operator subject to the emission standard in 
Sec.  63.11088 for gasoline loading racks must comply with the 
requirements in paragraphs (a) through (d) of this section.
    (1) Conduct a performance test on the vapor processing and 
collection systems according to either paragraph (a)(1)(i) or paragraph 
(a)(1)(ii) of this section.
    (i) Use the test methods and procedures in Sec.  60.503 of this 
chapter, except a reading of 500 parts per million shall be used to 
determine the level of leaks to be repaired under Sec.  60.503(b), or
    (ii) Use alternative test methods and procedures in accordance with 
the alternative test method requirements in Sec.  63.7(f).
    (2) If your gasoline loading rack has been permitted by a State or 
local agency to meet an emission limit of 80 milligrams, or less, per 
liter of gasoline loaded (mg/l) and you are in compliance with all 
applicable provisions of your operating permit, a statement by a 
responsible official of your facility certifying the compliance status 
may be submitted in lieu of the test required under paragraph (a)(1) of 
this section.
    (3) If you have conducted performance testing on the vapor 
processing and collection systems within 3 years prior to [DATE OF 
PUBLICATION OF THE FINAL RULE IN THE Federal Register], you may submit 
the results of such testing in lieu of the test required under 
paragraph (a)(1) of this section, provided the testing was conducted 
using the test methods and procedures in Sec.  60.503 of this chapter.
    (4) The performance test requirements of Sec.  63.11092(a) do not 
apply to flares defined in Sec.  63.11100 and meeting the flare 
requirements in Sec.  63.11(b). The owner or operator shall demonstrate 
that the flare and associated vapor collection system is in compliance 
with the requirements in Sec.  63.11(b) and Sec.  60.503(a), (b), and 
(d), respectively.
    (b) For each performance test conducted under paragraph (a)(1) of 
this section, the owner or operator shall determine a monitored 
operating parameter value for the vapor processing system using the 
procedures specified in paragraphs (b)(1) through (5) of this section.
    (1) Each owner or operator of a bulk gasoline terminal subject to 
the provisions of this subpart shall install, calibrate, certify, 
operate, and maintain, according to the manufacturer's specifications, 
a continuous monitoring system (CMS) while gasoline vapors are 
displaced to the vapor processor systems specified in paragraphs 
(b)(1)(i) through (iv) of this section. During the performance test, 
continuously record the operating parameter as specified under 
paragraphs (b)(1)(i) through (iv) of this section.
    (i) Where a carbon adsorption system is used, a continuous emission 
monitoring system (CEMS) capable of measuring organic compound 
concentration shall be installed in the exhaust air stream.
    (ii) Where a refrigeration condenser system is used, a continuous 
parameter monitoring system (CPMS) capable of measuring temperature 
shall be installed immediately downstream from the outlet to the 
condenser section. Alternatively, a CEMS capable of measuring organic 
compound concentration may be installed in the exhaust air stream.
    (iii) Where a thermal oxidation system other than a flare is used, 
the owner or operator shall monitor the operation of the system as 
specified in paragraphs (b)(1)(iii)(A) or (B) of this section.
    (A) A CPMS capable of measuring temperature shall be installed in 
the firebox or in the ductwork immediately downstream from the firebox 
in a position before any substantial heat exchange occurs.
    (B) The presence of a thermal oxidation system pilot flame shall be 
monitored using a heat-sensing device, such as an ultraviolet beam 
sensor or a thermocouple, installed in proximity to the pilot light to 
indicate the presence of a flame.
    (iv) Monitoring an alternative operating parameter or a parameter 
of a vapor processing system other than those listed in paragraphs 
(b)(1)(i) through (iii) of this section will be allowed upon 
demonstrating to the Administrator's satisfaction that the alternative 
parameter demonstrates continuous compliance with the emission standard 
in Sec.  63.11088(a).
    (2) Where a flare meeting the requirements in Sec.  63.11(b) is 
used, a heat-sensing device, such as an ultraviolet beam sensor or a 
thermocouple, must be installed in proximity to the pilot light to 
indicate the presence of a flame.
    (3) Determine an operating parameter value based on the parameter 
data monitored during the performance test, supplemented by engineering 
assessments and the manufacturer's recommendations.
    (4) Provide for the Administrator's approval the rationale for the 
selected operating parameter value, monitoring frequency, and averaging 
time, including data and calculations used to develop the value and a 
description of why the value, monitoring frequency, and averaging time 
demonstrate continuous compliance with the emission standard in Sec.  
63.11088(a).
    (5) If you have chosen to comply with the performance testing 
alternatives provided under paragraphs (a)(2) or (a)(3) of this 
section, the monitored operating parameter value may be determined 
according to the provisions in paragraphs (b)(5)(i) or (b)(5)(ii) of 
this section.
    (i) Monitor an operating parameter that has been approved by the 
permitting authority and is specified in your facility's current 
enforceable operating permit. At the time that the permitting authority 
requires a new performance test, you must determine the monitored 
operating parameter value according to the requirements specified in 
paragraph (b) of this section.
    (ii) Determine an operating parameter value based on engineering 
assessment and the manufacturer's recommendation and submit the 
information specified in paragraph (b)(4) of this section for approval 
by the permitting authority. At the time that the permitting authority 
requires a new performance test, you must determine the monitored 
operating parameter value according to the requirements specified in 
paragraph (b) of this section.
    (c) For performance tests performed after the initial test required 
under paragraph (a) of this section, the owner or operator shall 
document the reasons for any change in the operating parameter value 
since the previous performance test.
    (d) Each owner or operator of a bulk gasoline terminal subject to 
the

[[Page 66085]]

provisions of this subpart shall operate the vapor processing system in 
a manner not to exceed or not to go below, as appropriate, the 
operating parameter value for the parameters described in paragraph 
(b)(1) of this section. In cases where an alternative parameter 
pursuant to paragraphs (b)(1)(iv) or paragraph (b)(5) of this section 
is approved, each owner or operator shall operate the vapor processing 
system in a manner not to exceed or not to go below, as appropriate, 
the alternative operating parameter value. Operation of the vapor 
processing system in a manner exceeding or going below the operating 
parameter value shall constitute a violation of the emission standard 
in Sec.  63.11088(a).
    (e) Each owner or operator subject to the emission standard in 
Sec.  63.11087 for gasoline storage tanks shall comply with the 
requirements in paragraphs (e)(1) through (3) of this section.
    (1) If your gasoline storage tank is equipped with an internal 
floating roof, you must perform inspections of the floating roof system 
according to the requirements of Sec.  60.113b(a) if you are complying 
with option ii in Table 1, or according to the requirements of Sec.  
63.1063(c)(1) if you are complying with option iv in Table 1.
    (2) If your gasoline storage tank is equipped with an external 
floating roof, you must perform inspections of the floating roof system 
according to the requirements of Sec.  60.113b(b) if you are complying 
with option iii in Table 1, or according to the requirements of Sec.  
63.1063(c)(2) if you are complying with option iv in Table 1.
    (3) If your gasoline storage tank is equipped with a closed vent 
system and control device, you must conduct a performance test and 
determine a monitored operating parameter value in accordance with the 
requirements in paragraphs (a) through (d) of this section, except that 
the applicable level of control specified in paragraph (a)(2) of this 
section shall be a 95 percent reduction in inlet TOC levels rather than 
80 mg/l of gasoline loaded.
    (f) The annual certification test for gasoline cargo tanks shall 
consist of the test methods specified in paragraphs (f)(1) or (f)(2) of 
this section.
    (1) Method 27, appendix A, 40 CFR part 60. Conduct the test using a 
time period (t) for the pressure and vacuum tests of 5 minutes. The 
initial pressure (Pi) for the pressure test shall be 460 
millimeters (mm) of water (18 inches of water), gauge. The initial 
vacuum (Vi) for the vacuum test shall be 150 mm of water (6 
inches of water), gauge. The maximum allowable pressure and vacuum 
changes ([Delta] p, [Delta] v) for all affected gasoline cargo tanks is 
3 inches of water, or less, in 5 minutes.
    (2) Railcar bubble leak test procedures. As an alternative to the 
annual certification test required under paragraph (1) of this section 
for certification leakage testing of gasoline cargo tanks, the owner or 
operator may comply with paragraphs (f)(2)(i) and (ii) of this section 
for railcar cargo tanks, provided the railcar cargo tank meets the 
requirement in paragraph (f)(2)(iii) of this section.
    (i) Comply with the requirements of 49 CFR 173.31(d), 49 CFR 179.7, 
49 CFR 180.509, and 49 CFR 180.511 for the periodic testing of railcar 
cargo tanks.
    (ii) The leakage pressure test procedure required under 49 CFR 
180.509(j) and used to show no indication of leakage under 49 CFR 
180.511(f) shall be ASTM E 515-95, BS EN 1593:1999, or another bubble 
leak test procedure meeting the requirements in 49 CFR 179.7, 49 CFR 
180.505, and 49 CFR 180.509.
    (iii) The alternative requirements in this paragraph (f)(2) may not 
be used for any railcar cargo tank that collects gasoline vapors from a 
vapor balance system permitted under or required by a Federal, State, 
local, or tribal agency. A vapor balance system is a piping and 
collection system designed to collect gasoline vapors displaced from a 
storage vessel, barge, or other container being loaded, and routes the 
displaced gasoline vapors into the railcar cargo tank from which liquid 
gasoline is being unloaded.

Notifications, Reports, and Records


Sec.  63.11093  What notifications must I submit and when?

    (a) Each owner or operator of an affected source under this subpart 
must submit an Initial Notification as specified in Sec.  63.9(b). If 
your facility is in compliance with the requirements of this subpart at 
the time the Initial Notification is due, the Notification of 
Compliance Status required under paragraph (b) of this section may be 
submitted in lieu of the Initial Notification.
    (b) Each owner or operator of an affected source under this subpart 
must submit a Notification of Compliance Status as specified in Sec.  
63.9(h). The Notification of Compliance Status must specify which of 
the alternative compliance options included in Table 1 is used to 
comply with this subpart.
    (c) Each owner or operator of an affected bulk gasoline terminal 
under this subpart must submit a Notification of Performance Test, as 
specified in Sec.  63.9(e), prior to initiating testing required by 
Sec.  63.11092(a) or (b).
    (d) Each owner or operator of any affected source under this 
subpart must submit additional notifications specified in Sec.  63.9, 
as applicable.


Sec.  63.11094  What are my recordkeeping requirements?

    (a) Each owner or operator of a bulk gasoline terminal or pipeline 
breakout station whose storage vessels are subject to the provisions of 
this subpart shall keep records as specified in Sec.  60.115b of this 
chapter if you are complying with options i, ii, or iii in Table 1, 
except records shall be kept for at least 5 years. If you are complying 
with the requirements of option iv in Table 1, you shall keep records 
as specified in Sec.  63.1065.
    (b) Each owner or operator of a bulk gasoline terminal subject to 
the provisions of this subpart shall keep records of the test results 
for each gasoline cargo tank loading at the facility as specified in 
paragraphs (b)(1) and (3) of this section.
    (1) Annual certification testing performed under Sec.  
63.11092(f)(1) and periodic railcar bubble leak testing performed under 
Sec.  63.11092(f)(2).
    (2) The documentation file shall be kept up-to-date for each 
gasoline cargo tank loading at the facility. The documentation for each 
test shall include, as a minimum, the following information:
    (i) Name of test: Annual Certification Test--Method 27 or Periodic 
Railcar Bubble Leak Test Procedure.
    (ii) Cargo tank owner's name and address.
    (iii) Cargo tank identification number.
    (iv) Test location and date.
    (v) Tester name and signature.
    (vi) Witnessing inspector, if any: Name, signature, and 
affiliation.
    (vii) Vapor tightness repair: Nature of repair work and when 
performed in relation to vapor tightness testing.
    (viii) Test results: Test pressure; pressure or vacuum change, mm 
of water; time period of test; number of leaks found with instrument; 
and leak definition.
    (3) If you are complying with the alternative requirements in Sec.  
63.11088(d), you must keep records documenting that you have verified 
the vapor tightness testing according to the requirements of the 
permitting authority.
    (c) As an alternative to keeping records at the terminal of each 
gasoline cargo tank test result as required in paragraph (b) of this 
section, an owner or operator may comply with the requirements in 
either paragraph (c)(1) or paragraph (c)(2) of this section.

[[Page 66086]]

    (1) An electronic copy of each record is instantly available at the 
terminal.
    (i) The copy of each record in paragraph (c)(1) of this section is 
an exact duplicate image of the original paper record with certifying 
signatures.
    (ii) The permitting authority is notified in writing that each 
terminal using this alternative is in compliance with paragraph (c)(1) 
of this section.
    (2) For facilities that utilize a terminal automation system to 
prevent gasoline cargo tanks that do not have valid cargo tank vapor 
tightness documentation from loading (e.g., via a card lock-out 
system), a copy of the documentation is made available (e.g., via 
facsimile) for inspection by permitting authority representatives 
during the course of a site visit, or within a mutually agreeable time 
frame.
    (i) The copy of each record in paragraph (c)(2) of this section is 
an exact duplicate image of the original paper record with certifying 
signatures.
    (ii) The permitting authority is notified in writing that each 
terminal using this alternative is in compliance with paragraph (c)(2) 
of this section.
    (d) Each owner or operator subject to the equipment leak provisions 
of Sec.  63.11089 shall prepare and maintain a record describing the 
types, identification numbers, and locations of all equipment in 
gasoline service. For facilities electing to implement an instrument 
program under Sec.  63.11089(e), the record shall contain a full 
description of the program.
    (e) Each owner or operator of an affected source subject to 
equipment leak inspections under Sec.  63.11089 shall record in the log 
book for each leak that is detected the information specified in 
paragraphs (e)(1) through (7) of this section.
    (1) The equipment type and identification number.
    (2) The nature of the leak (i.e., vapor or liquid) and the method 
of detection (i.e., sight, sound, or smell).
    (3) The date the leak was detected and the date of each attempt to 
repair the leak.
    (4) Repair methods applied in each attempt to repair the leak.
    (5) ``Repair delayed'' and the reason for the delay if the leak is 
not repaired within 15 calendar days after discovery of the leak.
    (6) The expected date of successful repair of the leak if the leak 
is not repaired within 15 days.
    (7) The date of successful repair of the leak.
    (f) Each owner or operator of a bulk gasoline terminal subject to 
the provisions of this subpart shall:
    (1) Keep an up-to-date, readily accessible record of the continuous 
monitoring data required under Sec.  63.11092(b) or Sec.  63.11092(e). 
This record shall indicate the time intervals during which loadings of 
gasoline cargo tanks have occurred or, alternatively, shall record the 
operating parameter data only during such loadings. The date and time 
of day shall also be indicated at reasonable intervals on this record.
    (2) Record and report simultaneously with the notification of 
compliance status required under Sec.  63.11093(b):
    (i) All data and calculations, engineering assessments, and 
manufacturer's recommendations used in determining the operating 
parameter value under Sec.  63.11092(b) or Sec.  63.11092(e); and
    (ii) The following information when using a flare under provisions 
of Sec.  63.11(b) to comply with Sec.  63.11087(a):
    (A) Flare design (i.e., steam-assisted, air-assisted, or non-
assisted); and
    (B) All visible emissions readings, heat content determinations, 
flow rate measurements, and exit velocity determinations made during 
the compliance determination required under Sec.  63.11092(e)(3).
    (3) If an owner or operator requests approval to use a vapor 
processing system or monitor an operating parameter other than those 
specified in Sec.  63.11092(b), the owner or operator shall submit a 
description of planned reporting and recordkeeping procedures. The 
Administrator will specify appropriate reporting and recordkeeping 
requirements as part of the review of the permit application.


Sec.  63.11095  What are my reporting requirements?

    (a) Each owner or operator of a bulk terminal, pipeline breakout 
station, or pipeline pumping station subject to the control 
requirements of this subpart shall include in a semiannual compliance 
report to the Administrator the following information, as applicable:
    (1) For storage vessels, if you are complying with options i, ii, 
or iii in Table 1, the information specified in Sec.  60.115b(a), Sec.  
60.115b(b), or Sec.  60.115b(c) of this chapter, depending upon the 
control equipment installed; or, if you are complying with option iv in 
Table 1, the information specified in Sec.  63.1066.
    (2) For loading racks, each loading of a gasoline cargo tank for 
which vapor tightness documentation had not been previously obtained by 
the facility.
    (3) For equipment leak inspections, the number of equipment leaks 
not repaired within 15 days after detection.
    (b) Each owner or operator of an affected source subject to the 
control requirements of this subpart shall submit an excess emissions 
report to the Administrator at the time the semiannual compliance 
report is submitted. Excess emissions events under this subpart, and 
the information to be included in the excess emissions report, are 
specified in paragraphs (b)(1) through (4) of this section.
    (1) Each instance of a non-vapor-tight gasoline cargo tank loading 
at the facility in which the owner or operator failed to take steps to 
assure that such cargo tank would not be reloaded at the facility 
before vapor tightness documentation for that cargo tank was obtained.
    (2) Each reloading of a non-vapor-tight gasoline cargo tank at the 
facility before vapor tightness documentation for that cargo tank is 
obtained by the facility in accordance with Sec.  63.11094(b).
    (3) Each exceedance or failure to maintain, as appropriate, the 
monitored operating parameter value determined under Sec.  63.11092(b). 
The report shall include the monitoring data for the days on which 
exceedances or failures to maintain have occurred, and a description 
and timing of the steps taken to repair or perform maintenance on the 
vapor collection and processing systems or the CMS.
    (4) For each occurrence of an equipment leak for which no repair 
attempt was made within 5 days or for which repair was not completed 
within 15 days after detection:
    (i) The date on which the leak was detected;
    (ii) The date of each attempt to repair the leak;
    (iii) The reasons for the delay of repair; and
    (iv) The date of successful repair.

Other Requirements and Information


Sec.  63.11098  What parts of the General Provisions apply to me?

    Table 3 to this subpart shows which parts of the General Provisions 
apply to you.


Sec.  63.11099  Who implements and enforces this subpart?

    (a) This subpart can be implemented and enforced by the U.S. EPA or 
a delegated authority such as the applicable State, local, or tribal 
agency. If the U.S. EPA Administrator has delegated authority to a 
State, local, or Tribal agency, then that agency, in addition to the 
U.S. EPA, has the authority to implement and enforce this subpart. 
Contact the applicable U.S. EPA Regional Office to find out if 
implementation and enforcement of this

[[Page 66087]]

subpart is delegated to a State, local, or tribal agency.
    (b) In delegating implementation and enforcement authority of this 
subpart to a State, local, or tribal agency under subpart E of this 
part, the authorities specified in paragraph (c) of this section are 
retained by the Administrator of U.S. EPA and cannot be transferred to 
the State, local, or tribal agency.
    (c) The authorities that cannot be delegated to State, local, or 
tribal agencies are as specified in paragraphs (c)(1) through (4) of 
this section.
    (1) Approval of alternatives to the requirements in Sec. Sec.  
63.11085 through 63.11097. Any owner or operator requesting to use an 
alternative means of emission limitation for storage vessels in Table 1 
must follow either the provisions in Sec.  60.114b of this chapter if 
you are complying with options i, ii, or iii in Table 1, or the 
provisions in Sec.  63.1064 if you are complying with option iv in 
Table 1.
    (2) Approval of major alternatives to test methods under Sec.  
63.7(e)(2)(ii) and (f), as defined in Sec.  63.90, and as required in 
this subpart.
    (3) Approval of major alternatives to monitoring under Sec.  
63.8(f), as defined in Sec.  63.90, and as required in this subpart.
    (4) Approval of major alternatives to recordkeeping and reporting 
under Sec.  63.10(f), as defined in Sec.  63.90, and as required in 
this subpart.


Sec.  63.11100  What definitions apply to this subpart?

    As used in this subpart, all terms not defined herein shall have 
the meaning given them in the Clean Air Act (CAA); in subparts A, K, 
Ka, Kb, WW, and XX of part 60 of this chapter; or in subparts A and R 
of this part. All terms defined in both subpart A of part 60 of this 
chapter and subparts A and R of this part shall have the meaning given 
in subparts A and R of this part. For purposes of this subpart, 
definitions in this section supersede definitions in other parts or 
subparts.
    Administrator means the Administrator of the United States 
Environmental Protection Agency or his or her authorized representative 
(e.g., a State that has been delegated the authority to implement the 
provisions of this subpart).
    Bulk gasoline plant means any gasoline storage and distribution 
facility which receives gasoline by pipeline, ship or barge, or cargo 
tank and has a gasoline throughput of less than 20,000 gallons per day. 
Gasoline throughput shall be the maximum calculated design throughput 
as may be limited by compliance with an enforceable condition under 
Federal, State or local law and discoverable by the Administrator and 
any other person.
    Bulk gasoline terminal means any gasoline storage and distribution 
facility which receives gasoline by pipeline, ship or barge, or cargo 
tank and has a gasoline throughput of 20,000 gallons per day or 
greater. Gasoline throughput shall be the maximum calculated design 
throughput as may be limited by compliance with an enforceable 
condition under Federal, State or local law and discoverable by the 
Administrator and any other person.
    Flare means a thermal oxidation system using an open (without 
enclosure) flame.
    Gasoline cargo tank means a delivery tank truck or railcar which is 
loading gasoline or which has loaded gasoline on the immediately 
previous load.
    Gasoline dispensing facility means any stationary facility which 
dispenses gasoline directly into the fuel tank of a motor vehicle.
    In gasoline service means that a piece of equipment is used in a 
system that transfers gasoline or gasoline vapors.
    Metropolitan statistical area (MSA) means a geographic entity 
defined by the Federal Office of Management and Budget for use by 
Federal statistical agencies, based on the concept of a core area with 
a large population nucleus, plus adjacent communities having a high 
degree of economic and social integration with that core. Qualification 
of an MSA requires the presence of a city with 50,000 or more 
inhabitants, or the presence of an Urbanized Area (UA) and a total 
population of at least 100,000 (75,000 in New England). The county or 
counties containing the largest city and surrounding densely settled 
territory are central counties of the MSA. Additional outlying counties 
qualify to be included in the MSA by meeting certain other criteria of 
metropolitan character, such as a specified minimum population density 
or percentage of the population that is urban. MSA in New England are 
defined in terms of minor civil divisions, following rules concerning 
commuting and population density.
    Operating parameter value means a value for an operating or 
emission parameter of the vapor processing system (e.g., temperature) 
which, if maintained continuously by itself or in combination with one 
or more other operating parameter values, determines that an owner or 
operator has complied with the applicable emission standard. The 
operating parameter value is determined using the procedures specified 
in Sec.  63.11092(b).
    Pipeline breakout station means a facility along a pipeline 
containing storage vessels used to relieve surges or receive and store 
gasoline from the pipeline for re-injection and continued 
transportation by pipeline or to other facilities.
    Pipeline pumping station means a facility along a pipeline 
containing pumps to maintain the desired pressure and flow of product 
through the pipeline and not containing storage vessels.
    Submerged filling means the filling of a gasoline cargo tank or a 
stationary storage tank through a submerged fill pipe whose discharge 
is no more than 6 inches from the bottom of the tank. Bottom filling of 
gasoline cargo tanks or storage tanks is included in this definition.
    Urban means all territory, population, and housing units in 
urbanized areas and in places of more than 2,500 persons outside of UA. 
``Urban'' classification cuts across other hierarchies and can be in 
metropolitan or non-metropolitan areas.
    Urban 1 areas means counties that are part of an MSA with a 
population greater than 250,000, based on the 1990 and the most current 
U.S. Census Bureau statistical decennial census data.
    Urban 2 areas means counties where more than 50 percent of the 
population is classified by the U.S. Census Bureau as urban, based on 
the 1990 and the most current U.S. Census Bureau statistical decennial 
census data.
    Urbanized area (UA) means an area consisting of a central place(s) 
and adjacent territory with a general population density of at least 
1,000 people per square mile of land area that together have a minimum 
residential population of at least 50,000 people.
    Vapor collection-equipped gasoline cargo tank means a gasoline 
cargo tank that is outfitted with the equipment necessary to transfer 
vapors, displaced during the loading of gasoline into the cargo tank, 
to a vapor processor system.

Tables to Subpart BBBBBB of Part 63

[[Page 66088]]



Table 1.--To Subpart BBBBBB of Part 63--Applicability Criteria, Emission
          Limits, and Work Practice Standards for Storage Tanks
------------------------------------------------------------------------
    If you own or operate            And if             Then you must
------------------------------------------------------------------------
A gasoline storage tank with  Your storage tank is  i. Reduce emissions
 a capacity of greater than    not subject to the    of total organic
 or equal to 75 cubic meters   control               HAP or Total
 (m\3\).                       requirements of       Organic Compounds
                               part 60, subpart Kb   (TOC) by 95 weight-
                               (Sec.   60.112b) of   percent with a
                               this chapter.         closed vent system
                                                     and control device
                                                     as specified in
                                                     Sec.
                                                     60.112b(a)(3) of
                                                     this chapter, or
                                                    ii. Equip each
                                                     internal floating
                                                     roof gasoline
                                                     storage tank
                                                     according to the
                                                     requirements in
                                                     Sec.
                                                     60.112b(a)(1) of
                                                     this chapter,
                                                     except for the
                                                     requirements in
                                                     Sec.
                                                     60.112b(a)(1)(iv)
                                                     through (ix) of
                                                     this chapter, or
                                                    iii. Equip each
                                                     external floating
                                                     roof gasoline
                                                     storage tank
                                                     according to the
                                                     requirements in
                                                     Sec.
                                                     60.112b(a)(2) of
                                                     this chapter,
                                                     except that the
                                                     requirements of
                                                     Sec.
                                                     60.112b(a)(2)(ii)
                                                     of this chapter
                                                     shall only be
                                                     required if such
                                                     storage tank does
                                                     not currently meet
                                                     the requirements of
                                                     Sec.
                                                     60.112b(a)(2)(i) of
                                                     this chapter, or
                                                    iv. Equip and
                                                     operate each
                                                     floating roof
                                                     gasoline storage
                                                     tank according to
                                                     the requirements in
                                                     Sec.
                                                     63.1063(a)(1) and
                                                     (b), and equip each
                                                     external floating
                                                     roof gasoline
                                                     storage tank
                                                     according to the
                                                     requirements of
                                                     Sec.
                                                     63.1063(a)(2) if
                                                     such storage tank
                                                     does not currently
                                                     meet the
                                                     requirements of
                                                     Sec.
                                                     63.1063(a)(1).
------------------------------------------------------------------------


Table 2.--To Subpart BBBBBB of Part 63--Applicability Criteria, Emission
          Limits, and Work Practice Standards for Loading Racks
------------------------------------------------------------------------
    If you own or operate            And if             Then you must
------------------------------------------------------------------------
A gasoline loading rack at a  Your loading rack is  i. Equip your
 bulk gasoline terminal.       not subject to the    loading rack with a
                               control               vapor collection
                               requirements of       system designed to
                               part 60, subpart XX   collect the TOC
                               (Sec.   60.502);      vapors displaced
                               part 63, subpart R    from cargo tanks
                               (Sec.   63.422); or   during product
                               to an enforceable     loading, and
                               State, local, or     ii. Reduce emissions
                               tribal regulation     of TOC to < =80
                               requiring that        milligrams per
                               emissions from your   liter of gasoline
                               loading operations    loaded into
                               be limited to < =80    gasoline cargo
                               milligrams per        tanks at the
                               liter of gasoline     loading rack, and
                               loaded into          iii. Design and
                               gasoline cargo        operate the vapor
                               tanks at the          collection system
                               loading rack.         to prevent any TOC
                                                     vapors collected at
                                                     one loading rack
                                                     from passing to
                                                     another loading
                                                     rack, and
                                                    iv. Limit the
                                                     loading of gasoline
                                                     into gasoline cargo
                                                     tanks that are
                                                     vapor tight using
                                                     the procedures
                                                     specified in Sec.
                                                     63.11088(b) through
                                                     (d).
------------------------------------------------------------------------


                   Table 3.--To Subpart BBBBBB of Part 63--Applicability of General Provisions
----------------------------------------------------------------------------------------------------------------
                                                                                            Applies to subpart
              Citation                       Subject              Brief description               BBBBBB
----------------------------------------------------------------------------------------------------------------
Sec.   63.1........................  Applicability.........  Initial applicability        Yes, specific
                                                              determination;               requirements given in
                                                              applicability after          Sec.   63.11085.
                                                              standard established;
                                                              permit requirements;
                                                              extensions, notifications.
63.1(c)(2).........................  Title V permit........  Requirements for obtaining   Yes, Sec.
                                                              a title V permit from the    63.11081(b) of
                                                              applicable permitting        subpart BBBBBB
                                                              authority.                   exempts some area
                                                                                           sources from the
                                                                                           obligation to obtain
                                                                                           title V operating
                                                                                           permits.
Sec.   63.2........................  Definitions...........  Definitions for part 63      Yes, additional
                                                              standards.                   definitions in Sec.
                                                                                           63.11100.
Sec.   63.3........................  Units and               Units and abbreviations for  Yes.
                                      Abbreviations.          part 63 standards.
Sec.   63.4........................  Prohibited Activities   Prohibited activities;       Yes.
                                      and Circumvention.      circumvention,
                                                              severability.
Sec.   63.5........................  Construction/           Applicability;               Yes.
                                      Reconstruction.         applications; approvals.

[[Page 66089]]


Sec.   63.6(a).....................  Compliance with         GP apply unless compliance   Yes.
                                      Standards/Operation &   extension; General
                                      Maintenance             Provisions apply to area
                                      Applicability.          sources that become major.
Sec.   63.6(b)(1)-(4)..............  Compliance Dates for    Standards apply at           Yes.
                                      New and Reconstructed   effective date; 3 years
                                      Sources.                after effective date; upon
                                                              startup; 10 years after
                                                              construction or
                                                              reconstruction commences
                                                              for CAA section 112(f).
Sec.   63.6(b)(5)..................  Notification..........  Must notify if commenced     Yes.
                                                              construction or
                                                              reconstruction after
                                                              proposal.
Sec.   63.6(b)(6)..................  [Reserved]                                           ......................
Sec.   63.6(b)(7)..................  Compliance Dates for    Area sources that become     No.
                                      New and Reconstructed   major must comply with
                                      Area Sources that       major source standards
                                      Become Major.           immediately upon becoming
                                                              major, regardless of
                                                              whether required to comply
                                                              when they were an area
                                                              source.
Sec.   63.6(c)(1)-(2)..............  Compliance Dates for    Comply according to date in  No, Sec.   63.11083
                                      Existing Sources.       this subpart, which must     specifies the
                                                              be no later than 3 years     compliance dates.
                                                              after effective date; for
                                                              CAA section 112(f)
                                                              standards, comply within
                                                              90 days of effective date
                                                              unless compliance
                                                              extension.
Sec.   63.6(c)(3)-(4)..............  [Reserved]                                           ......................
Sec.   63.6(c)(5)..................  Compliance Dates for    Area sources that become     No.
                                      Existing Area Sources   major must comply with
                                      that Become Major.      major source standards by
                                                              date indicated in this
                                                              subpart or by equivalent
                                                              time period (e.g., 3
                                                              years).
Sec.   63.6(d).....................  [Reserved]                                           ......................
Sec.   63.6(e)(1)..................  Operation &             Operate to minimize          Yes.
                                      Maintenance.            emissions at all times;
                                                              correct malfunctions as
                                                              soon as practicable; and
                                                              operation and maintenance
                                                              requirements independently
                                                              enforceable; information
                                                              Administrator will use to
                                                              determine if operation and
                                                              maintenance requirements
                                                              were met.
Sec.   63.6(e)(2)..................  [Reserved]                                           ......................
Sec.   63.6(e)(3)..................  Startup, Shutdown, and  Requirement for SSM plan;    No.
                                      Malfunction (SSM)       content of SSM plan;
                                      Plan.                   actions during SSM.
Sec.   63.6(f)(1)..................  Compliance Except       You must comply with         No.
                                      During SSM.             emission standards at all
                                                              times except during SSM.
Sec.   63.6(f)(2)-(3)..............  Methods for             Compliance based on          Yes.
                                      Determining             performance test,
                                      Compliance.             operation and maintenance
                                                              plans, records, inspection.
Sec.   63.6(g)(1)-(3)..............  Alternative Standard..  Procedures for getting an    Yes.
                                                              alternative standard.
Sec.   63.6(h)(1)..................  Compliance with         You must comply with         No.
                                      Opacity/Visible         opacity/VE standards at
                                      Emission (VE)           all times except during
                                      Standards.              SSM.
Sec.   63.6(h)(2)(i)...............  Determining Compliance  If standard does not state   No.
                                      with Opacity/VE         test method, use EPA
                                      Standards.              Method 9 for opacity in
                                                              appendix A of part 60 of
                                                              this chapter and EPA
                                                              Method 22 for VE in
                                                              appendix A of part 60 of
                                                              this chapter.
Sec.   63.6(h)(2)(ii)..............  [Reserved]                                           ......................
Sec.   63.6(h)(2)(iii).............  Using Previous Tests    Criteria for when previous   No.
                                      to Demonstrate          opacity/VE testing can be
                                      Compliance with         used to show compliance
                                      Opacity/VE Standards.   with this subpart.
Sec.   63.6(h)(3)..................  [Reserved]                                           ......................
Sec.   63.6(h)(4)..................  Notification of         Must notify Administrator    No.
                                      Opacity/VE              of anticipated date of
                                      Observation Date.       observation.
Sec.   63.6(h)(5)(i), (iii)-(v)....  Conducting Opacity/VE   Dates and schedule for       No.
                                      Observations.           conducting opacity/VE
                                                              observations.
Sec.   63.6(h)(5)(ii)..............  Opacity Test Duration   Must have at least 3 hours   No.
                                      and Averaging Times.    of observation with thirty
                                                              6-minute averages.
Sec.   63.6(h)(6)..................  Records of Conditions   Must keep records available  No.
                                      During Opacity/VE       and allow Administrator to
                                      Observations.           inspect.
Sec.   63.6(h)(7)(i)...............  Report Continuous       Must submit COMS data with   No.
                                      Opacity Monitoring      other performance test
                                      System (COMS)           data.
                                      Monitoring Data from
                                      Performance Test.
Sec.   63.6(h)(7)(ii)..............  Using COMS Instead of   Can submit COMS data         No.
                                      EPA Method 9.           instead of EPA Method 9
                                                              results even if rule
                                                              requires EPA Method 9 in
                                                              appendix A of part 60 of
                                                              this chapter, but must
                                                              notify Administrator
                                                              before performance test.
Sec.   63.6(h)(7)(iii).............  Averaging Time for      To determine compliance,     No.
                                      COMS During             must reduce COMS data to 6-
                                      Performance Test.       minute averages.

[[Page 66090]]


Sec.   63.6(h)(7)(iv)..............  COMS Requirements.....  Owner/operator must          No.
                                                              demonstrate that COMS
                                                              performance evaluations
                                                              are conducted according to
                                                              Sec.   63.8(e); COMS are
                                                              properly maintained and
                                                              operated according to Sec.
                                                                63.8(c) and data quality
                                                              as Sec.   63.8(d).
Sec.   63.6(h)(7)(v)...............  Determining Compliance  COMS is probable but not     No.
                                      with Opacity/VE         conclusive evidence of
                                      Standards.              compliance with opacity
                                                              standard, even if EPA
                                                              Method 9 observation shows
                                                              otherwise. Requirements
                                                              for COMS to be probable
                                                              evidence-proper
                                                              maintenance, meeting
                                                              Performance Specification
                                                              1 in appendix B of part 60
                                                              of this chapter, and data
                                                              have not been altered.
Sec.   63.6(h)(8)..................  Determining Compliance  Administrator will use all   No.
                                      with Opacity/VE         COMS, EPA Method 9 (in
                                      Standards.              appendix A of part 60 of
                                                              this chapter), and EPA
                                                              Method 22 (in appendix A
                                                              of part 60 of this
                                                              chapter) results, as well
                                                              as information about
                                                              operation and maintenance
                                                              to determine compliance.
Sec.   63.6(h)(9)..................  Adjusted Opacity        Procedures for               No.
                                      Standard.               Administrator to adjust an
                                                              opacity standard.
Sec.   63.6(i)(1)-(14).............  Compliance Extension..  Procedures and criteria for  Yes.
                                                              Administrator to grant
                                                              compliance extension.
Sec.   63.6(j).....................  Presidential            President may exempt any     Yes.
                                      Compliance Exemption.   source from requirement to
                                                              comply with this subpart.
Sec.   63.7(a)(2)..................  Performance Test Dates  Dates for conducting         Yes.
                                                              initial performance
                                                              testing; must conduct 180
                                                              days after compliance date.
Sec.   63.7(a)(3)..................  Section 114 Authority.  Administrator may require a  Yes.
                                                              performance test under CAA
                                                              section 114 at any time.
Sec.   63.7(b)(1)..................  Notification of         Must notify Administrator    Yes.
                                      Performance Test.       60 days before the test.
Sec.   63.7(b)(2)..................  Notification of Re-     If have to reschedule        Yes.
                                      scheduling.             performance test, must
                                                              notify Administrator of
                                                              rescheduled date as soon
                                                              as practicable and without
                                                              delay.
Sec.   63.7(c).....................  Quality Assurance (QA)/ Requirement to submit site-  Yes.
                                      Test Plan.              specific test plan 60 days
                                                              before the test or on date
                                                              Administrator agrees with;
                                                              test plan approval
                                                              procedures; performance
                                                              audit requirements;
                                                              internal and external QA
                                                              procedures for testing.
Sec.   63.7(d).....................  Testing Facilities....  Requirements for testing     Yes.
                                                              facilities.
Sec.   63.7(e)(1)..................  Conditions for          Performance tests must be    Yes.
                                      Conducting              conducted under
                                      Performance Tests.      representative conditions;
                                                              cannot conduct performance
                                                              tests during SSM.
Sec.   63.7(e)(2)..................  Conditions for          Must conduct according to    Yes.
                                      Conducting              this subpart and EPA test
                                      Performance Tests.      methods unless
                                                              Administrator approves
                                                              alternative.
Sec.   63.7(e)(3)..................  Test Run Duration.....  Must have three test runs    Yes.
                                                              of at least 1 hour each;
                                                              compliance is based on
                                                              arithmetic mean of three
                                                              runs; conditions when data
                                                              from an additional test
                                                              run can be used.
Sec.   63.7(f).....................  Alternative Test        Procedures by which          Yes.
                                      Method.                 Administrator can grant
                                                              approval to use an
                                                              intermediate or major
                                                              change, or alternative to
                                                              a test method.
Sec.   63.7(g).....................  Performance Test Data   Must include raw data in     Yes.
                                      Analysis.               performance test report;
                                                              must submit performance
                                                              test data 60 days after
                                                              end of test with the
                                                              notification of compliance
                                                              status; keep data for 5
                                                              years.
Sec.   63.7(h).....................  Waiver of Tests.......  Procedures for               Yes.
                                                              Administrator to waive
                                                              performance test.
Sec.   63.8(a)(1)..................  Applicability of        Subject to all monitoring    Yes.
                                      Monitoring              requirements in standard.
                                      Requirements.
Sec.   63.8(a)(2)..................  Performance             Performance specifications   Yes.
                                      Specifications.         in appendix B of 40 CFR
                                                              part 60 apply.
Sec.   63.8(a)(3)..................  [Reserved]                                           ......................
Sec.   63.8(a)(4)..................  Monitoring of Flares..  Monitoring requirements for  Yes.
                                                              flares in Sec.   63.11
                                                              apply.
Sec.   63.8(b)(1)..................  Monitoring............  Must conduct monitoring      Yes.
                                                              according to standard
                                                              unless Administrator
                                                              approves alternative.

[[Page 66091]]


Sec.   63.8(b)(2)-(3)..............  Multiple Effluents and  Specific requirements for    Yes.
                                      Multiple Monitoring     installing monitoring
                                      Systems.                systems; must install on
                                                              each affected source or
                                                              after combined with
                                                              another affected source
                                                              before it is released to
                                                              the atmosphere provided
                                                              the monitoring is
                                                              sufficient to demonstrate
                                                              compliance with the std;
                                                              if more than one
                                                              monitoring system on an
                                                              emission point, must
                                                              report all monitoring
                                                              system results, unless one
                                                              monitoring system is a
                                                              backup.
Sec.   63.8(c)(1)..................  Monitoring System       Maintain monitoring system   Yes.
                                      Operation and           in a manner consistent
                                      Maintenance.            with good air pollution
                                                              control practices.
Sec.   63.8(c)(1)(i)-(iii).........  Routine and             Follow the SSM plan for      Yes.
                                      Predictable SSM.        routine repairs; keep
                                                              parts for routine repairs
                                                              readily available;
                                                              reporting requirements for
                                                              SSM when action is
                                                              described in SSM plan.
Sec.   63.8(c)(2)-(8)..............  CMS Requirements......  Must install to get          Yes.
                                                              representative emission or
                                                              parameter measurements;
                                                              must verify operational
                                                              status before or at
                                                              performance test.
Sec.   63.8(d).....................  CMS Quality Control...  Requirements for CMS         No.
                                                              quality control, including
                                                              calibration, etc.; must
                                                              keep quality control plan
                                                              on record for 5 years;
                                                              keep old versions for 5
                                                              years after revisions.
Sec.   63.8(e).....................  CMS Performance         Notification, performance    Yes.
                                      Evaluation.             evaluation test plan,
                                                              reports.
Sec.   63.8(f)(1)-(5)..............  Alternative Monitoring  Procedures for               Yes.
                                      Method.                 Administrator to approve
                                                              alternative monitoring.
Sec.   63.8(f)(6)..................  Alternative to          Procedures for               Yes.
                                      Relative Accuracy       Administrator to approve
                                      Test.                   alternative relative
                                                              accuracy tests for CEMS.
Sec.   63.8(g).....................  Data Reduction........  COMS 6-minute averages       Yes.
                                                              calculated over at least
                                                              36 evenly spaced data
                                                              points; CEMS 1 hour
                                                              averages computed over at
                                                              least 4 equally spaced
                                                              data points; data that
                                                              cannot be used in average.
Sec.   63.9(a).....................  Notification            Applicability and State      Yes.
                                      Requirements.           delegation.
Sec.   63.9(b)(1)-(2), (4)-(5).....  Initial Notifications.  Submit notification within   Yes.
                                                              120 days after effective
                                                              date; notification of
                                                              intent to construct/
                                                              reconstruct, notification
                                                              of commencement of
                                                              construction/
                                                              reconstruction,
                                                              notification of startup;
                                                              contents of each.
Sec.   63.9(c).....................  Request for Compliance  Can request if cannot        Yes.
                                      Extension.              comply by date or if
                                                              installed best available
                                                              control technology or
                                                              lowest achievable emission
                                                              rate (BACT/LAER).
Sec.   63.9(d).....................  Notification of         For sources that commence    Yes.
                                      Special Compliance      construction between
                                      Requirements for New    proposal and promulgation
                                      Sources.                and want to comply 3 years
                                                              after effective date.
Sec.   63.9(e).....................  Notification of         Notify Administrator 60      Yes.
                                      Performance Test.       days prior.
Sec.   63.9(f).....................  Notification of VE/     Notify Administrator 30      No.
                                      Opacity Test.           days prior.
Sec.   63.9(g).....................  Additional              Notification of performance  Yes; however, there
                                      Notifications When      evaluation; notification     are no opacity
                                      Using CMS.              about use of COMS data;      standards.
                                                              notification that exceeded
                                                              criterion for relative
                                                              accuracy alternative.
Sec.   63.9(h)(1)-(6)..............  Notification of         Contents due 60 days after   Yes; however, there
                                      Compliance Status.      end of performance test or   are no opacity
                                                              other compliance             standards.
                                                              demonstration, except for
                                                              opacity/VE, which are due
                                                              30 days after; when to
                                                              submit to Federal vs.
                                                              State authority.
Sec.   63.9(i).....................  Adjustment of           Procedures for               Yes.
                                      Submittal Deadlines.    Administrator to approve
                                                              change when notifications
                                                              must be submitted.
Sec.   63.9(j).....................  Change in Previous      Must submit within 15 days   Yes.
                                      Information.            after the change.
Sec.   63.10(a)....................  Record-keeping/         Applies to all, unless       Yes.
                                      Reporting.              compliance extension; when
                                                              to submit to Federal vs.
                                                              State authority;
                                                              procedures for owners of
                                                              more than one source.
Sec.   63.10(b)(1).................  Record-keeping/         General requirements; keep   Yes.
                                      Reporting.              all records readily
                                                              available; keep for 5
                                                              years.
Sec.   63.10(b)(2)(i)-(iv).........  Records Related to      Occurrence of each for       Yes.
                                      Startup, Shutdown,      operations (process
                                      and Malfunction.        equipment); occurrence of
                                                              each malfunction of air
                                                              pollution control
                                                              equipment; maintenance on
                                                              air pollution control
                                                              equipment; actions during
                                                              SSM.
Sec.   63.10(b)(2)(vi)-(xi)........  CMS Records...........  Malfunctions, inoperative,   Yes.
                                                              out-of-control periods.
Sec.   63.10(b)(2)(xii)............  Records...............  Records when under waiver..  Yes.
Sec.   63.10(b)(2)(xiii)...........  Records...............  Records when using           Yes.
                                                              alternative to relative
                                                              accuracy test.

[[Page 66092]]


Sec.   63.10(b)(2)(xiv)............  Records...............  All documentation            Yes.
                                                              supporting initial
                                                              notification and
                                                              notification of compliance
                                                              status.
Sec.   63.10(b)(3).................  Records...............  Applicability                Yes.
                                                              determinations.
Sec.   63.10(c)....................  Records...............  Additional records for CMS.  No.
Sec.   63.10(d)(1).................  General Reporting.....  Requirements Requirement to  Yes.
                                                              report.
Sec.   63.10(d)(2).................  Report of Performance   When to submit to Federal    Yes.
                                      Test Results.           or State authority.
Sec.   63.10(d)(3).................  Reporting Opacity or    What to report and when....  No.
                                      VE Observations.
Sec.   63.10(d)(4).................  Progress Reports......  Must submit progress         Yes.
                                                              reports on schedule if
                                                              under compliance extension.
Sec.   63.10(d)(5).................  SSM Reports...........  Contents and submission....  Yes.
Sec.   63.10(e)(1)-(2).............  Additional CMS Reports  Must report results for      No.
                                                              each CEMS on a unit;
                                                              written copy of CMS
                                                              performance evaluation; 2-
                                                              3 copies of COMS
                                                              performance evaluation.
Sec.   63.10(e)(3)(i)-(iii)........  Reports...............  Schedule for reporting       Yes; note that Sec.
                                                              excess emissions.            63.11095 specifies
                                                                                           excess emission
                                                                                           events for this
                                                                                           subpart.
Sec.   63.10(e)(3)(iv)-(v).........  Excess Emissions        Requirement to revert to     Yes, Sec.   63.11095
                                      Reports.                quarterly submission if      specifies excess
                                                              there is an excess           emission events for
                                                              emissions and parameter      this subpart.
                                                              monitor exceedances (now
                                                              defined as deviations);
                                                              provision to request
                                                              semiannual reporting after
                                                              compliance for 1 year;
                                                              submit report by 30th day
                                                              following end of quarter
                                                              or calendar half; if there
                                                              has not been an exceedance
                                                              or excess emissions (now
                                                              defined as deviations),
                                                              report contents in a
                                                              statement that there have
                                                              been no deviations; must
                                                              submit report containing
                                                              all of the information in
                                                              Sec.  Sec.   63.8(c)(7)-
                                                              (8) and 63.10(c)(5)-(13).
Sec.   63.10(e)(3)(vi)-(viii)......  Excess Emissions        Requirements for reporting   Yes.
                                      Report and Summary      excess emissions for CMS;
                                      Report.                 requires all of the
                                                              information in Sec.  Sec.
                                                               63.8(c)(7)-(8) and
                                                              63.10(c)(5)-(13).
Sec.   63.10(e)(4).................  Reporting COMS Data...  Must submit COMS data with   Yes.
                                                              performance test data.
Sec.   63.10(f)....................  Waiver for              Procedures for               Yes.
                                      Recordkeeping/          Administrator to waive.
                                      Reporting.
Sec.   63.11(b)....................  Flares................  Requirements for flares....  Yes; the section
                                                                                           references Sec.
                                                                                           63.11(b).
Sec.   63.12.......................  Delegation............  State authority to enforce   Yes.
                                                              standards.
Sec.   63.13.......................  Addresses.............  Addresses where reports,     Yes.
                                                              notifications, and
                                                              requests are sent.
Sec.   63.14.......................  Incorporation by        Test methods incorporated    Yes.
                                      Reference.              by reference.
Sec.   63.15.......................  Availability of         Public and confidential      Yes.
                                      Information.            information.
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[FR Doc. E6-18656 Filed 11-8-06; 8:45 am]

BILLING CODE 6560-50-P
