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National Emission Standards for Hazardous Air Pollutants for Source Categories: Gasoline Distribution (Stage I)

 [Federal Register: December 14, 1994]
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 9 and 63
[AD-FRL-5116-5]
RIN 2060-AD93

National Emission Standards for Hazardous Air Pollutants for 
Source Categories: Gasoline Distribution (Stage I)

AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.



SUMMARY: The final rule provided in this document is a national 
emission standard(s) for hazardous air pollutants (NESHAP) for bulk 
gasoline terminals and pipeline breakout stations pursuant to section 
112 of the Clean Air Act as amended in 1990 (the Act). On February 8, 
1994, EPA proposed a NESHAP for the gasoline distribution source 
category. On August 19, 1994, the EPA also published supplementary data 
and recommendations on the level of control for gasoline cargo tanks. 
This document announces the EPA's final decisions on the rule.
    This final rule requires sources to achieve emission limits 
reflecting application of the maximum achievable control technology 
(MACT) consistent with section 112(d) of the Act. The rule regulates 
all hazardous air pollutants (HAP's) identified in the Act's list of 
189 HAP's that are emitted from new and existing bulk gasoline 
terminals and pipeline breakout stations that are major sources of 
HAP's or are located at plant sites that are major sources of HAP's.


DATES: Effective Date. December 14, 1994.
    Judicial Review. Under section 307(b)(1) of the Act, judicial 
review of NESHAP is available only by filing a petition for review in 
the U.S. Court of Appeals for the District of Columbia Circuit within 
60 days of today's publication of this final rule. Under section 
307(b)(2) of the Act, the requirements that are the subject of today's 
notice may not be challenged later in civil or criminal proceedings 
brought by the EPA to enforce these requirements.


ADDRESSES: Docket. Docket No. A-92-38, containing information 
considered by the EPA in developing the promulgated standards, is 
available for public inspection and copying between 8 a.m. and 4 p.m., 
Monday through Friday, including all non-Government holidays, at the 
EPA's Air and Radiation Docket and Information Center, room M1500, U.S. 
Environmental Protection Agency, 401 M Street, SW., Washington, DC 
20460; telephone (202) 260-7548. A reasonable fee may be charged for 
copying.
    Background Information Document. The background information 
document (BID) for the promulgated standards may be obtained as 
supplies permit from the U.S. Environmental Protection Agency Library 
(MD-35), Research Triangle Park, North Carolina 27711, telephone (919) 
541-2777; or from the U.S. Department of Commerce, National Technical 
Information Service (NTIS), Springfield, Virginia 22161, telephone 
(703) 487-4650. Please refer to ``Gasoline Distribution Industry (Stage 
I)--Background Information for Promulgated Standards'' (EPA-453/R-94-
002b). The BID contains: (1) a summary of the public comments made on 
the proposed standards and the EPA's responses to the comments, and (2) 
a summary of the revisions made to the regulatory analysis presented at 
proposal. Electronic versions of the BID as well as this preamble and 
final rule are available for download from the EPA's Technology 
Transfer Network (TTN), a network of electronic bulletin boards 
developed and operated by the Office of Air Quality Planning and 
Standards. The TTN provides information and technology exchange in 
various areas of air pollution control. The service is free, except for 
the cost of a phone call. Dial (919) 541-5742 for up to a 14,400 bits 
per second (bps) modem. If more information on TTN is needed, contact 
the systems operator at (919) 541-5384.


FOR FURTHER INFORMATION CONTACT: For general and technical information 
concerning the final rule, contact Mr. Stephen Shedd, Waste and 
Chemical Processes Group, Emission Standards Division (MD-13), U.S. 
Environmental Protection Agency, Research Triangle Park, North Carolina 
27711; telephone (919) 541-5397. For information regarding the economic 
impacts of the rule, contact Mr. Scott Mathias, Innovative Strategies 
and Economics Group, Air Quality Strategies and Standards Division, at 
the above address; telephone (919) 541-5310. For information regarding 
the test methods and procedures referenced in the rule, contact Mr. Roy 
Huntley, Emission Inventory and Factors Group, Emissions, Monitoring 
and Analysis Division, at the above address; telephone (919) 541-1060.


SUPPLEMENTARY INFORMATION: The information presented in this preamble 
is organized as follows:


I. Applicability
II. Summary of Major Changes Since Proposal
    A. Applicability
    B. Level of Control
III. Significant Comments and Changes
    A. Applicability Determination
    B. Equipment Leak Requirements
    C. Storage Vessel Requirements
    D. Cargo Tank Requirements
    E. Continuous Monitoring
IV. Summary of the Final Rule
    A. Sources Covered
    B. Standards for Sources
    C. Effective Date for Compliance
    D. Compliance Extensions
    E. Compliance Testing and Monitoring
    F. Recordkeeping and Reporting
    V. Administrative Requirements
    A. Docket
    B. Executive Order 12866
    C. Paperwork Reduction Act
    D. Regulatory Flexibility Act
    E. Regulatory Review


I. Applicability


    The final rule is applicable to all existing and new bulk gasoline 
terminals and pipeline breakout stations that are major sources of 
HAP's or are located at plant sites that are major sources. Major 
source facilities that are subject to this rule must install and 
operate the control equipment and implement the work practices required 
in the rule. Section 112(a) of the Act defines major source as a 
source, or group of sources, located within a contiguous area and under 
common control that emits or has the potential to emit, considering 
controls, 10 tons per year (tpy) or more of any individual HAP or 25 
tpy or more of any combination of HAP's. Area sources are stationary 
sources that do not qualify as ``major.'' The term ``affected source'' 
as used in this rule means the total of all HAP emission points at each 
bulk gasoline terminal or pipeline breakout station that is subject to 
the rule.
    To determine the applicability of this rule to facilities that are 
within a contiguous area of other HAP-emitting emission sources that 
are not part of the source category covered by this rule, the owner or 
operator must determine whether the plant site as a whole is a major 
source. A formal HAP emissions inventory must be used to determine if 
total HAP emissions from all HAP emission sources at the plant site 
meets the definition of a major source. To determine the applicability 
of this rule to facilities that are not contiguous with other HAPemitting 
emission sources (i.e., to stand-alone bulk gasoline terminals 
or pipeline breakout station facilities), the owner or operator may use 
the emissions screening equations in the rule, which are intended to 
identify clearly nonmajor (area) sources, or conduct a formal HAP 
emissions inventory.
    Certain assumptions used by all nonmajor sources in the emission 
screening equations will become enforceable limitations on the 
facility's operations under this rule. These enforceable limitations 
include, type of gasoline used, type and number of storage vessels, 
limit on gasoline throughput, level of cargo tank vapor-tightness, and 
number of valves, pumps, connectors, loading arm valves, and open-ended 
lines in gasoline service. Federally enforceable limitations must be 
established outside the provisions of this rule, for facilities using 
the emissions inventory for determination of their major source status, 
and for some parameters used by facilities in the emission screening 
equation. The vapor processor outlet emission limit for cargo tank 
emissions and minimum efficiency for fixed roof storage vessel 
emissions are the federally enforceable limitations that must be 
established outside the provisions of this rule to be used in the 
emission screening equations. Facilities using the emission screening 
equations in the rule are required to record their assumptions and 
calculations, notify the Administrator that the facility is using the 
screening equations and provide the results of the calculations, and 
operate the facility in a manner not to exceed the operational 
parameters used in the calculations. Larger facilities (those that, in 
and of themselves, have HAP emissions over 50 percent of the major 
source emissions thresholds above and use the emissions screening 
equations in the rule) are additionally required to submit to the 
Administrator for approval their assumptions and calculations, maintain 
records to document the parameters have not been exceeded, and submit 
an annual certification that the operational parameters established for 
the facility have not been exceeded.


II. Summary of Major Changes Since Proposal


    On February 8, 1994 (59 FR 5868), the EPA proposed NESHAP for all 
major source bulk gasoline terminals and pipeline breakout stations and 
provided notice of a public hearing on the proposal. A public hearing 
was held on March 10, 1994, and the 60-day comment period ended on 
April 11, 1994. On August 19, 1994 (59 FR 42788), the EPA published an 
announcement of the availability of supplemental information pertaining 
to the level of control and test procedures for cargo tank leakage, and 
established a comment period for this information. Public comments 
received in response to the proposal and the supplemental notice have 
been considered in this final rulemaking action.
    In response to comments received on the proposed standards, changes 
have been made in developing the final rule. While several of these are 
clarifying changes designed to make the Agency's intent clearer, a 
number of them are significant changes to the proposed control 
requirements of the standards. Substantive changes made since proposal 
are described in the following sections. The Agency's responses to 
public comments that are not addressed in this preamble and the revised 
analysis for the final rule are contained in the BID for this final 
rulemaking (see ADDRESSES section of this document).


A. Applicability


    The constants in the proposed emission estimation screening 
equations have been modified based on lower emission factors for 
leakage emissions from tank trucks and equipment components. In 
addition, the storage vessel constants have been recalculated using the 
current EPA emission equations (publication AP-42, Section 12) to 
estimate evaporative emissions from the storage of gasoline. Finally, 
an adjustment factor has been added to each equation to account for 
facilities that do not handle any reformulated or oxygenated gasoline 
containing methyl tert-butyl ether (MTBE).
    For the purposes of this rulemaking and under certain conditions, 
the EPA has determined that a bulk gasoline terminal or pipeline 
breakout station facility's ``potential to emit'' (PTE) may be based on 
certain operating limitations that are made enforceable under this 
rule. These limitations would be established in the range between 
actual and maximum design conditions based on emission screening 
equations provided in the rule. If a facility's operation (e.g., 
gasoline throughput) exceeds these limitations or if a facility fails 
to maintain records or report as required in this final rule, it will 
be considered to be in violation of the rule.


B. Level of Control


    The proposed leak detection and repair (LDAR) requirements for 
controlling equipment leaks have been replaced with a visual inspection 
program. Instrument leak detection and repair will be an available 
alternative rather than the basis of the final rule. Both new and 
existing major sources are required to perform a visual leak inspection 
of their equipment on a monthly basis.
    At proposal, the ``floor,'' or minimum level of control for 
gasoline storage vessels at existing facilities was determined to be 
the requirements in 40 CFR part 60, subpart Kb, the new source 
performance standards (NSPS subpart Kb) which apply to new volatile 
organic liquid storage vessels. Based on the revised analysis, a new 
floor for storage vessels has been determined. Only the storage vessel 
floating roof closure device or ``rim seal'' requirements in the NSPS 
subpart Kb are now considered to be the floor for existing storage 
vessels. Gasketed ``fittings'' (such as hatch covers, vents, drains, 
etc.), which are also an NSPS subpart Kb requirement, are not now 
considered to be a part of the floor for this rule. However, in the 
final rule gasketed fittings are required to be installed on existing 
external floating roof storage tanks that do not meet the NSPS subpart 
Kb rim seal requirement, as of today's date.
    The floor level of control and the control requirements for leakage 
from controlled cargo tanks (tank trucks and railcars) at existing and 
new major source bulk terminals have been changed so that cargo tanks 
must annually pass a certification test with a 25 mm (1 inch) of water 
pressure decay limit [in 5 minutes, after pressurization to +460 mm 
(+18 inches) of water column and then evacuation to -150 mm (-6 inches) 
of water] instead of the 75 mm (3 inch) of water pressure decay 
proposed limit. In addition, cargo tank owners and operators are 
required to annually perform a pressure test of the cargo tank's 
internal vapor valve and to be able to meet a 63 mm (2.5 inch) pressure 
change limit at any time. Test procedures to be used in performing 
these tests are added to the final rule. At proposal, new bulk gasoline 
terminals were required to install and operate a vacuum assist vapor 
collection system to minimize cargo tank leakage. The requirement for 
vacuum assist has been replaced with the same leak testing requirements 
described above for cargo tanks that load at existing facilities.


III. Significant Comments and Changes


    Comments on the proposed standards and the supplemental notice were 
received from industry, State and local air pollution control agencies, 
trade associations, an environmental group, and a U.S. Government 
agency. A detailed discussion of comments and the EPA's responses can 
be found in the promulgation BID, which is referred to in the ADDRESSES 
section of this document. The major comments, responses, and changes 
made to the rule since proposal are discussed below.


A. Applicability Determination


 Screening Equations
    Several commenters felt that the EPA did not fully explain or 
support the development of the proposed emission estimation screening 
equations. As a result, these two equations were characterized by some 
commenters as arbitrary. One commenter who had experience preparing 
emissions inventories for bulk gasoline terminals in Texas pointed out 
that, for several terminals that do not exceed the 10/25 tons of HAP's 
per year threshold, the screening equation incorrectly indicates that 
many of these terminals emit greater than 10/25 tons of HAP's.
    The development of the screening equations was discussed in the 
preamble to the proposed standards. This development was explained in 
more detail in a memorandum that was included at proposal in the 
rulemaking docket (item II-B-23), and has been updated and included in 
the final docket. These equations were not arbitrary, but were 
developed specifically to identify facilities that have the potential 
to emit (PTE) less than 10/25 tons per year of HAP and to reduce the 
amount of effort needed to perform applicability determinations. 
However, if a facility has other HAP emission sources not considered in 
the equation, the equation will under-predict emissions and cannot be 
used to determine if the facility is a major source. Some commenters 
expressed support for the use of screening equations as an aid in 
determining rule applicability, but most of them had suggestions for 
revising the equations to make them more accurate and useful. In 
response to all of these comments, the equations have been retained in 
the rule but have been revised to accommodate the concerns of 
commenters and to make them more accurate in their function as a 
screening tool. These modifications and the new equations are discussed 
in detail in the responses to the following comments.
    Some commenters suggested that, instead of using ``worst-case'' 
HAP-emitting gasolines to derive the constants in the equations, the 
Agency should use average parameters to promote consistency between the 
equations and the rule. Also, the EPA should include an adjustment 
factor for facilities that do not handle gasoline oxygenated with MTBE.
    At proposal, the EPA developed the screening equations based on a 
HAP to VOC ratio that was determined to represent the average MTBE 
content in reformulated and oxygenated gasolines, and not the ``worstcase'' 
ratio. In the gasoline composition analyses that were available 
to the Agency before proposal, the MTBE content in gasoline ranged from 
11.8 to 16.3 percent. Based on these data, the EPA made an assumption 
that the average MTBE content of reformulated and oxygenated gasolines 
was 11.9 percent, which is slightly higher than the lowest percentage 
found in the data. In addition, the EPA assumed that most facilities 
that handle higher MTBE content oxygenated gasolines would also handle 
the lower MTBE content reformulated gasolines. This approach is 
consistent with the Agency's intent to avoid underestimating emissions 
in this screening process, which could allow a major source to be 
deemed an area source and thus improperly escape applicability of this 
rule. Facilities in any case will have the opportunity to perform a 
full emissions inventory in order to make a more accurate determination 
of their status.
    The EPA agrees that the proposed emission factors overestimate HAP 
emissions from facilities handling gasoline without MTBE. As a result, 
an adjustment factor has been included in the screening equations for 
facilities in this situation. Facilities that handle, or anticipate 
handling, any oxygenated or reformulated gasoline containing MTBE as a 
component will not use the adjustment factor in performing the 
calculations.
    Several commenters felt the EPA's assumption that annually 
certified and tested tank trucks with vapor control lose 10 percent of 
the displaced vapors through leakage while loading is too high. The EPA 
has reevaluated the basis for its assumption that tank trucks in an 
annual test program lose 10 percent of the displaced vapors as leakage 
emissions. The EPA has calculated a new leakage rate that is much lower 
than the proposed figure, and this calculation is discussed in Section 
III.D.1 of this notice.
    Commenters stated that fixed-roof storage vessels connected to a 
vapor control device emit virtually no HAP's and that a term should be 
added to represent and quantify the low emission levels from such 
controlled tanks. The EPA agrees with the commenters and has added a 
new expression, (1-CE), to both screening equations. The term ``CE'' 
represents the control efficiency of the control device used to process 
vapors from the fixed-roof tank. The value of CE must be documented by 
the facility as meeting the definition of federally enforceable in 
subpart A of 40 CFR part 63 (General Provisions). If the facility is 
not controlling emissions from its fixed-roof tanks using a vapor 
control device, a value of zero will be entered for the term ``CE.''
    Several commenters felt that the emission factors used for pump 
seals and valves were too high, based on recent data collected at 
marketing facilities. The EPA has evaluated the new data and agrees 
with this comment. The emission factors for pump seals and valves have 
been revised as discussed under Section III.B.1 of this notice.
    Commenters felt that the equations should provide emission credits 
for facilities that have implemented an instrument LDAR program or 
vacuum assist vapor collection. Data provided by industry show that the 
use of visual inspection programs is just as effective as the use of 
instrument LDAR in identifying equipment leaks at marketing terminals 
and breakout stations, as discussed further in Section III.B.2 of this 
notice. As a result, the EPA will not grant credits to facilities that 
currently use an LDAR program. The EPA has decided to not require 
vacuum assist as explained in Section III.D.2.a of this notice, due to 
Agency concerns about the control effectiveness of vacuum assist 
technology at bulk terminal loading racks. As a result, the EPA also 
will not provide emission credits for any facility using vacuum assist 
technology.
    One commenter stated that emission standards or limitations more 
stringent than the Federal NSPS (40 CFR part 60, subpart XX) limit (35 
mg/liter) should be recognized. The term ``EF'' in the screening 
equation for bulk terminals applies to any federally enforceable 
emission standard in effect for the vapor processor. The concept of 
``federally enforceable,'' defined in Sec. 63.2, allows emission 
standards or limitations more stringent than the NSPS limit.
    One commenter believed that the screening equations should be 
modified to account for storage vessels that store MTBE for infrequent 
periods and durations. The EPA does not intend to regulate under this 
rule storage vessels that store only MTBE or any other gasoline 
component or additive. All the other non-gasoline liquids such as MTBE 
will be studied for regulation under the forthcoming NESHAP source 
category of ``Non-Gasoline Liquid Distribution'' under section 112 of 
the Act.
    Commenters requested guidance on how to estimate emissions from 
``swing'' tanks, which store gasoline only part of the time. In keeping 
with the intent of these equations as an emission estimation screening 
tool, the EPA has made the simplifying assumption that vessels storing 
gasoline for any period or periods during a year will be assumed to 
store gasoline year round. As a result, the emissions from ``swing'' 
tanks will be estimated in the same way as for tanks that store 
gasoline on a continuous basis. Owners and operators should use the 
emissions inventory approach, as specified in Sec. 63.420(a)(2) and 
(b)(2), if these assumptions lead to a significant overestimation of 
HAP emissions at their facility.
 Emissions Inventory
    As a supplement to the emission estimation screening equations, 
Sec. 63.420(a)(2) and (b)(2) of the proposed rule exempted those 
facilities ``for which the owner or operator has documented to the 
Administrator's satisfaction that the facility is not a major source as 
defined in section 112(a)(1) of the Clean Air Act.'' The proposal 
preamble on page 5877 indicated that an ``emissions audit'' would have 
to be performed to satisfy these provisions. One commenter felt that 
the rule provisions should specifically state that the estimation of 
emissions for the applicability determination is to be accomplished by 
means of an emissions audit, as was stated in the preamble. Several 
other commenters found the term ``emissions audit'' confusing, and 
questioned what the EPA would consider acceptable for demonstrating 
applicability. Some suggested that the familiar term ``emission 
inventory'' be substituted because emission inventories are common 
requirements and procedures are in place under many State programs. 
Others requested that the EPA define or provide an approved methodology 
for conducting the emissions audit. One commenter said that the public 
should have an opportunity to comment on this guidance prior to this 
rule being promulgated. One commenter thought that the EPA should 
eliminate the requirement that a source determine its applicability 
status by means of an emissions audit. They felt such a requirement is 
unnecessary and contrary to prohibitions in Executive Order 12866 since 
major sources, which are subject to part 70 permitting, are already 
required to determine their applicable regulatory requirements and 
identify them in their permit applications.
    In describing the formal means of documenting a facility's major or 
area source status as an ``emissions audit'' in the proposal preamble, 
the EPA was referring to a calculation of a facility's potential to 
emit HAP considering federally enforceable controls. Such calculations 
are similar to those already being prepared under many existing Federal 
and State control programs. Therefore, the intent of the Agency was in 
accord with the thoughts of the commenters. The discussion in the 
preamble and the requirements in the final rule are intended to clarify 
and simplify compliance with the rule and are not known to be contrary 
to provisions of the part 70 permitting requirements. The EPA feels 
that guidance on performing HAP emissions inventories is not needed 
since the preparation of such inventories is standard practice. The 
activities undertaken in response to part 70 requirements are 
applicable and may relieve the majority of the burden of fulfilling 
this inventory.
 Potential to Emit
    One commenter felt that the rule was not clear in explaining 
whether a facility's major source applicability is determined from 
``potential to emit'' (PTE) or actual emissions and asked for 
clarification. Several commenters who interpreted the rule to indicate 
that PTE should be used expressed disagreement with the EPA, and 
believed that basing major source applicability on a source's PTE would 
draw into the regulation many more sources than the EPA has 
anticipated. They said the EPA should recognize that there are inherent 
limits in the operational parameters (throughput, etc.) of gasoline 
distribution facilities, and major source determination should be based 
on a source's actual emissions or at least a more reasonable gasoline 
loading potential. The American Petroleum Institute (API) recommended a 
scheme for categorizing facilities based on actual emission rates that 
they felt would alleviate the ``potentially drastic consequences'' of 
applying the PTE definition. These categories are: I--actual emissions 
exceed the major source threshold (10/25 tpy), so the source is subject 
to all provisions of the rule; II--actual emissions are greater than 80 
percent but less than 100 percent of the major source amounts. The 
facility would have to certify its area source status by obtaining a 
permit with enforceable limits, submit annual certification of emission 
rates, and notify the EPA of any change that could increase HAP 
emissions; III--actual emissions are greater than 50 percent but less 
than or equal to 80 percent of the major source definition. The 
facility would have to submit annual certification and provide 
notification of any change; IV--actual emissions are 50 percent or less 
of the major source cutoffs. This facility would only have to provide 
notification of any changes affecting emissions. Another commenter 
suggested that applicability should be based on a combination of the 
potential to emit of the vapor recovery system and the actual emissions 
of the storage vessel rim seals and fittings using the EPA's current 
emission factors.
    At proposal, the EPA did not use the term PTE in the preamble 
discussion or in the proposed rule. However, the proposed rule and 
discussion in the preamble did reference the General Provisions (40 CFR 
part 63, subpart A), which includes a definition for PTE. This 
definition is as follows:


    Potential to emit means the maximum capacity of a stationary 
source to emit a pollutant under its physical and operational 
design. Any physical or operational limitation on capacity of the 
stationary source to emit a pollutant, including air pollution 
control equipment and restrictions on hours of operation or the type 
or amount of material combusted, stored, or processed, shall be 
treated as part of its design if the limitation or the effect it 
would have on emissions is federally enforceable.


    Terminals and breakout stations have many limitations that affect 
emissions and some of these can vary according to gasoline demand. 
Industry provided data showing many methods to calculate maximum 
capacity, including total tank storage capacity, loading rack pumping 
capacity, feeder pipeline pumping rate, etc. Each of these methods of 
calculating capacity results in different and conflicting PTE results. 
The EPA has decided to provide an approach in the final rule that 
provides the facility an opportunity to set some operational and 
physical limitations that best fit its own operation only if all the 
HAP emitted are from affected gasoline operations. The EPA considered 
allowing gasoline terminals and pipeline breakout stations emitting 
additional HAP emissions from non-gasoline sources at the plant site to 
use this approach. However, the EPA believes covering all situations 
and other source categories under this rule would be too complex and 
uncertain. Therefore, those sources would have to obtain enforceable 
conditions and limitations outside the provisions of this rule.
    Under this approach for plant sites emitting HAP only from affected 
gasoline operations, the bulk gasoline terminal or pipeline breakout 
station facility can establish its potential to emit through a 
combination of operational and physical limitations that are otherwise 
federally enforceable outside the context of this rule or that are made 
enforceable through compliance with parameters included in the 
screening equations in this rule. Examples of allowable federally 
enforceable limitations and conditions are provided in the definitions 
section of the General Provisions (Sec. 63.2). Examples of limitations 
at bulk terminals and pipeline stations that are required to meet the 
definition of federally enforceable outside the context of this rule 
are emission limits on vapor processors that process emissions from 
storage vessels and cargo tanks. Recordkeeping and reporting 
requirements will be used to monitor compliance with all limitations. 
Thus, the final rule allows the facility to limit PTE by complying with 
the approved values of the physical or operational parameters contained 
in the emission screening equations, such as maximum throughput. This 
provides the facility the most flexibility in operations without 
overestimating PTE.
    The proposed rule required facilities to either use a specific 
emission estimation screening equation or prepare an inventory of 
emissions to determine their emissions for determination of major or 
area source status. The proposal allowed area source facilities to 
report their applicability findings and calculations in their initial 
notifications to the Agency [required under Sec. 63.9(b)]. After review 
and acceptance by the Agency, the facility would have been considered 
an area source and would not be subject to the control requirements of 
the rule. Changes to the final rule establish certain facility 
parameters used in the emission screening equation as new ``physical or 
operational limitation[s] on the capacity of the stationary source to 
emit a pollutant.'' Upon request, the owner or operator of the bulk 
gasoline terminal or pipeline breakout station will be responsible for 
demonstrating compliance with the facility's applicability 
determination, including all assumptions, limitations, and parameters 
used to calculate potential to emit HAP.
    To monitor these limitations, certain facilities are required in 
the final rule to annually certify that these facility parameters are 
not being exceeded. It would be burdensome and unnecessary for all 
facilities below the emissions threshold for major sources to provide 
detailed reports and records, and annually certify that changes have 
not occurred. As suggested in the API comments, only facilities within 
50 percent of the emissions threshold for major sources will be 
required to submit a detailed report of these calculations and 
assumptions used in the calculations in an initial report, and then 
provide annual certification that the established facility parameters 
are not being exceeded. The remaining facilities will need to retain a 
record at the facility of these calculations and notify the 
Administrator of the use and results of the emission screening 
equation. These records would remain at the facility for inspection by 
the Administrator. If the PTE ``limitations'' are exceeded or if the 
facility fails to keep records or report as required, the facility will 
be in violation of this rule and may in some cases be considered a 
major source and be subject to the emission standards of this rule.
    The final rule also requires the reports submitted containing those 
limitations and certifications to be approved by the Administrator and 
made available for public inspection. The notifications and reports 
documenting those limitations must be submitted within 1 year of 
today's date to the Administrator. The final rule allows facilities to 
change these parameters after submittal of the revised calculations and 
approval by the Administrator.
    If the facility becomes an area (nonmajor) source by complying with 
the PTE enforceable limitations and conditions established under this 
final rule, then the emission control requirements of this rule would 
not apply. Furthermore, for purposes of section 112 of the Act, it 
would not be a regulated area source that would be required to have an 
operating permit under 40 CFR part 70. In other words, being subject to 
the PTE limitations in this rule does not in and of itself make the 
facility subject to 40 CFR part 70. However, there may be other reasons 
that the stationary source is required to comply with 40 CFR part 70.
    The EPA believes the mechanisms provided in this rule for limiting 
PTE provide adequate safeguards for this source category. However, the 
EPA is still evaluating whether the general approach taken in this rule 
will be appropriate for other source categories.
4. Refinery Bulk Terminals
    One commenter requested that, for bulk terminals contiguous to 
refineries, the EPA clearly define the separation between terminal 
storage tanks and refinery storage tanks. These terminals are usually 
fed from tanks located within the refinery itself, often thousands of 
feet from the terminal. Refinery tanks will be regulated by the NESHAP 
for petroleum refineries (proposed at 59 FR 36130, July 15, 1994). The 
commenter felt that tanks not located at the terminal itself should be 
considered part of the refinery for the purposes of regulation.
    Several commenters were of the opinion that the EPA should 
distinguish the association and applicability of the gasoline 
distribution MACT rule from the refinery MACT rule currently under 
development. Many commenters believe that only cargo tank loading racks 
and cargo tank leakage should be regulated at terminals that are 
``contiguous to'' refineries, and that tankage and equipment leakage 
emissions should be regulated under the refinery MACT rule. One 
suggested method to distinguish whether facilities are subject to the 
refinery rule or the gasoline distribution rule is to consult the 
applicable Standard Industrial Classification (SIC) codes already 
assigned to these facilities.
    Terminals and pipeline facilities contiguous to refineries are of 
two types. First, there are terminals and pipeline facilities that are 
located within a contiguous area and under common control, but are 
managed by the ``marketing'' or ``distribution'' departments, though 
they are located on the same property as a refinery. The other type are 
terminals and pipeline facilities located among the refinery process 
units and storage tanks and managed by the ``refinery'' management 
departments. SIC codes are assigned and are currently being used by 
these facilities to distinguish between equipment. Industry commenters 
expressed a need to retain this separation because they often have 
separate management for maintenance, capital improvements, personnel, 
and operation of the assigned equipment. This separation would keep the 
management of the air pollution control equipment under the same 
management structure as the surrounding process equipment. The Agency 
agrees with the commenters that maintaining this structure would be 
beneficial, because it will increase the management of proper operation 
and maintenance of the control equipment, decrease compliance costs, 
and improve the reporting and recordkeeping and enforcement of this 
rule.
    Since a final rule cannot refer to another standard that has not 
been promulgated as a final rule, this change is not incorporated into 
the final gasoline distribution rule. The Agency, however, plans to 
carry out this change by modifying this rule at the promulgation of the 
refinery MACT standards. The proposed refinery MACT standards contain 
different requirements for equipment leaks and compliance schedules for 
storage tanks. The Agency will assess the differences between these two 
rules after it considers public comments on the refinery MACT proposal 
and develops the final refinery MACT standards. Meanwhile, all 
provisions of this gasoline distribution rule will be implemented as 
they are being promulgated here, since there are no requirements in 
this rule that must be implemented before the scheduled promulgation of 
the refinery MACT standards. Independent of the SIC code designation 
decision discussed above, the EPA will make a decision in the refinery 
MACT rule on the use of emission trading or averaging between the 
collocated gasoline distribution and refinery sources.


B. Equipment Leak Requirements


 Emission Factors
    Several commenters strongly objected to the EPA's use of 1980 
refinery data to estimate emissions from equipment (pumps, valves, 
etc.) at bulk terminals and pipeline breakout stations. These 
commenters were in support of using the new API data gathered at 
several bulk terminals. These data indicate that leakage from bulk 
terminal and breakout station equipment is very small and that the 
refinery emission factors overestimate these emissions greatly. The 
commenters pointed out that the EPA's use of the higher factors would 
lead to incorrect calculations of applicability status and baseline 
emissions.
    At proposal, the EPA used the refinery equipment emission factors 
in publication AP-42, Section 9.1, Petroleum Refining, to estimate 
emissions from equipment components at marketing terminals and pipeline 
breakout stations. The API supplied new data which indicated that 
corresponding emission factors for marketing terminals and breakout 
stations are over 99 percent lower. The EPA has reviewed the data 
submitted by API. In May 1994, the EPA released a draft report 
containing new correlation equations for marketing facilities using the 
API data. The Agency is still reviewing and analyzing the API data to 
determine new EPA emission factors. For the purposes of this analysis 
and completion of this final rule, API's suggested emission factors are 
being used because in our judgement these new factors better reflect 
emissions from this source category than the 1980 refinery data. The 
EPA intends to issue new EPA emission factors in the near future.
 Control Level
    Several commenters expressed disagreement with the proposal to 
require a leak detection and repair (LDAR) program at bulk terminals 
and breakout stations, stating that the emissions from equipment leaks 
are much smaller than the EPA had estimated. Consequently, the 
commenters considered the EPA's estimated emission reductions due to an 
LDAR program to be greatly overstated. As a result, the cost 
effectiveness of such a program would be very poor. In lieu of an LDAR 
program, many commenters felt that a mandatory visual inspection 
program (similar to existing programs at many terminals) would be more 
appropriate. The API performed a leak rate survey at bulk terminals, 
including both terminals where an LDAR program was in effect and 
terminals that were not carrying out a formal LDAR program. The API's 
conclusion was that there was no statistically significant difference 
in the leak rates found at the two groups of terminals. The commenters 
concluded that LDAR programs are more appropriate for refineries, where 
the equipment handles fluids at higher temperatures and pressures.
    Before proposal of this MACT regulation, the EPA learned that few 
existing terminals and pipeline breakout stations (less than 1 percent) 
routinely use a portable organic vapor analyzer (OVA) to carry out LDAR 
programs on their gasoline handling equipment. As a result, the 
``floor'' for control of equipment leaks at existing terminals was 
found to be periodic visual inspections (no formal, federally 
enforceable inspection program). A monthly LDAR program using an OVA 
was determined to be in practice at a few terminals associated with 
refineries and therefore was determined to be the floor for equipment 
at new terminals and breakout stations. As stated earlier, the EPA in 
the proposal analysis used the refinery emission factors in AP-42 to 
calculate baseline emissions from equipment leaks at existing 
facilities and analyzed LDAR as an ``above the floor'' option. The EPA 
found LDAR to be cost effective; however, the Agency noted that there 
were industry concerns with the refinery factors and thus did not 
select the higher emission reduction alternative (monthly instead of 
quarterly LDAR). As discussed above, after reviewing equipment leak 
data submitted by API, the EPA agrees that the equipment leak factors 
at marketing terminals are much lower than the refinery factors, 
resulting in much lower potential emission reductions due to an LDAR 
program. As a result of this determination, the cost effectiveness of a 
formal instrument LDAR program has been found to be much less favorable 
for gasoline marketing facilities.
    The new gasoline distribution equipment leak data submitted by API 
showed only a slight difference (0.2 percent) between emission factors 
at facilities performing periodic LDAR (with an instrument) and 
facilities with a periodic visual program. Based on its review of these 
data, the EPA agrees with API's assessment that this difference is 
statistically insignificant. Therefore, the EPA is in agreement with 
the majority of commenters that periodic visual inspection and LDAR 
programs achieve essentially equal emission reductions for these 
facilities.
    Industry submitted survey information that 81 percent of terminal 
facilities are implementing some type of periodic visual inspection 
program. The survey data did not show the frequency of visual 
inspections, but API has stated that current industry periodic visual 
programs range in frequency from daily to quarterly. The API suggested 
a quarterly program and provided language to make it enforceable and 
verifiable through recordkeeping. The program suggested by API 
included: (1) A quarterly determination of leaks by visual, audible, 
and olfactory inspection of pumps and valves; (2) a log book listing 
all of the equipment in gasoline service; (3) note all non-inspected 
equipment; (4) if a leak is detected, repair as soon as practical 
(considering safety); if the leak cannot be repaired immediately, then 
the leak must be repaired or the equipment replaced within 15 calendar 
days, unless not practical for reasons stated in the log book or, when 
possible, use of the leaking equipment is to be suspended; (5) annual 
checks of log book by facility supervisor; and (6) quarterly logs and 
records of annual checks retained for 5 years and accessible for 
inspection within 3 business days.
    The NSPS for bulk gasoline terminals [40 CFR part 60, subpart XX, 
Sec. 60.502(j)] requires monthly inspection of loading racks as 
follows:


    (j) Each calendar month, the vapor collection system, the vapor 
processing system, and each loading rack handling gasoline shall be 
inspected during loading of gasoline tank trucks for total organic 
compounds liquid or vapor leaks. For the purposes of this paragraph, 
detection methods incorporating sight, sound, or smell are 
acceptable. Each detection of a leak shall be recorded and the 
source of the leak repaired within 15 calendar days after it is 
detected.


The visual inspection program in the final rule is similar to these 
NSPS provisions; however, the provisions have been expanded based on 
suggestions of the commenters and certain requirements in existing 
Federal LDAR regulations. As in the NSPS, a monthly inspection using 
sight, sound, and smell is required. Each detection of a leak is to be 
recorded in a log book. Leaks must be repaired as soon as practicable, 
but with the first attempt at repair made no later than 5 calendar days 
after detection, and repair completed within 15 days after detection. 
Delay of repair is allowed upon demonstration to the EPA that timely 
repair is not feasible. Full records of each inspection are required, 
including for each leak a record of the date of detection, nature of 
the leak and detection method, dates of repair attempts and methods 
used, and details of any delays of repairs.
    The final rule contains a requirement for both new and existing 
facilities to perform a visual inspection of equipment on a monthly 
basis because it is achieved in practice on the same and similar 
equipment under the 40 CFR part 60, subpart XX requirements as 
described above and at some facilities that are covered under monthly 
LDAR programs in response to 40 CFR part 60, subparts VV and GGG, and 
40 CFR part 61, subparts J and V. As noted earlier, the emission 
reductions resulting from these visual inspection programs have not 
been established, so the emission benefits cannot be quantified other 
than to say that periodic inspections ensure low emission levels. The 
national annual cost for monthly visual inspections under this final 
rule is estimated to be $43,000.


C. Storage Vessel Requirements


 Control Level
    Several commenters claimed that the discussion in the proposal 
concerning the ``floor'' level of control for storage vessels was 
inadequate and unclear. The EPA's conclusion was that the NSPS 
requirements of 40 CFR part 60, subpart Kb (NSPS subpart Kb) 
constituted the floor for storage vessels at existing sources. One 
commenter stated that the EPA had not performed an adequate evaluation 
to establish the floating roof rim seal requirements of NSPS subpart Kb 
as the floor. Several other commenters believed that the EPA had 
demonstrated that NSPS subpart Kb's rim seal requirements are the floor 
for existing sources, but not the additional NSPS subpart Kb 
requirement to control the roof deck fittings. At proposal, the EPA 
required gasoline storage vessels at existing facilities to meet all of 
the control requirements in NSPS subpart Kb. Subpart Kb specifies 
closure devices between the wall of the storage vessel and the edge of 
the floating roof (``rim seals''), and the installation of gaskets on 
specified lids and other openings in the floating deck (``controlled 
fittings''). The EPA also proposed these same requirements as the floor 
for new facilities. Subpart Kb is the most recent (1984) new source 
performance standard applicable to all new, modified, and reconstructed 
volatile organic liquid storage vessels (including gasoline liquid 
storage vessels).
    Regarding the comments concerning the floor determination for rim 
seal requirements for existing sources, the EPA continues to maintain 
its previous conclusion that the NSPS subpart Kb rim seal requirements 
are the floor for storage vessels at gasoline distribution facilities 
as proposed and presented in the proposal notice (February 8, 1994, 59 
FR 5868) and further discussed in the promulgation BID. The EPA 
believes it did perform a proper evaluation, and the commenter did not 
provide any data or information to support a change in the finding that 
NSPS subpart Kb rim seals are the floor level of control.
    The EPA, however, does agree with the commenters' statements that 
the discussion in the proposal preamble did not support the NSPS 
subpart Kb fitting control requirements set in 1984 for new tanks as 
part of the floor for storage vessels at existing facilities. The EPA 
did not have access to any data regarding the number of gasoline 
storage vessels that are equipped with controlled fittings. The 
commenters also did not provide any data or information on the number 
of storage vessels with or without fitting controls for these 
subcategories. Information obtained in the tank survey conducted for 
the refinery MACT standards was inconclusive regarding the use of 
controlled fittings on storage vessels. As a result, the EPA has no 
data to support the conclusion that controls on tank fittings are part 
of the floor for existing sources. Therefore, the EPA has determined 
the existing source MACT floor for fittings as ``uncontrolled.''
    The Agency has considered controlled fitting requirements as an 
option providing the maximum degree of reduction in HAP emissions 
(``above the floor'') as required by the Act. The Administrator is 
required under section 112(d) to set emission standards for new and 
existing sources of HAP that require the maximum degree of reduction in 
emissions of HAP that is achievable, taking into consideration the cost 
of achieving the emission reduction, any nonair quality health and 
environmental impacts, and energy requirements. New tanks at new or 
existing facilities since 1984 are meeting the deck fitting control 
requirements in 40 CFR part 60, subpart Kb and, therefore, these 
requirements are achievable. Controlling fittings to that level is also 
considered the maximum degree of emission reduction.
    Emission reductions and costs for controlled fittings were analyzed 
on both a per model storage vessel and a nationwide basis using two 
typical size and throughput vessels, and different potential HAP 
contents in gasoline. Additionally, installation of controlled fittings 
on many tanks requires degassing and cleaning of the tanks. Industry 
reports that storage vessels are degassed and cleaned at least every 10 
years for safety inspections and requested that the Agency require all 
retrofits (fittings and rim seals) on storage tanks to occur 
simultaneously. Therefore, the new analysis included two options, with 
and without degassing and cleaning costs. If fitting controls were 
required within 3 years of today's date, the cost impact for this 
standard would include the degassing and cleaning costs along with the 
cost of controlled fittings if a tank's routine safety inspection would 
not have occurred during that 3-year time period. The option of waiting 
until the next routine tank degassing and cleaning would avoid the 
additional costs of cleaning and degassing as an impact of this 
standard since the activity would have occurred anyway. A discussion 
and presentation of the model tank analysis of fitting controls are 
included in Appendix B of the promulgation BID.
    Installing controlled fittings on floating roof tanks, without 
degassing and cleaning costs, would result in a cost savings due to the 
value of gasoline vapor prevented from evaporating through openings in 
the floating roof deck. The capital costs of installing deck fitting 
controls on the model tanks, without the cost of degassing and cleaning 
of the tanks, ranged in the analysis from $1,200 to $2,800, annualized 
costs ranged from a savings to a cost of $340 per year, and the cost 
effectiveness ranged from a savings to a cost of $7,500 per megagram of 
HAP reduced. When controlled deck fitting installation costs included 
degassing and cleaning costs, the capital costs ranged from $21,000 to 
$67,000, annualized costs ranged from $4,000 to $14,000 per year, and 
the cost effectiveness ranged from $25,000 to $300,000 per megagram of 
HAP reduced. Calculation of product price increases under either option 
showed them to be insignificant (less than 0.05 cent per gallon). In 
conclusion, installing controlled deck fittings is significantly less 
costly if it can be done at the next scheduled tank degassing and 
cleaning.
    The Agency has decided to require installation of controlled deck 
fittings on each existing external floating roof storage tank that is 
required to be degassed and taken out of service for the purpose of 
replacing or upgrading rim seals to meet 40 CFR 60, subpart Kb 
requirements. Since these tanks must be degassed and cleaned and have 
plant maintenance personnel on site, it is reasonable to require 
installation of the fitting controls at the same time. A national 
impact analysis was performed on this requirement. Table D-1 in 
Appendix D of the promulgation BID presents the results of the national 
analysis on storage tanks and other emission sources at bulk terminals 
and pipeline breakout stations. Installing fitting controls on external 
floating roof tanks is estimated to reduce 66 megagrams per year of HAP 
at an annualized cost savings of $93,000.
    The cost analyses show that installing controlled fittings when 
installing or replacing rim seals on existing external floating roof 
tanks involves a small capital cost (approximately $2,000 per tank), 
with an annualized cost savings, and insignificant change in gasoline 
prices. Given these low costs and the simplicity of these control 
measures when tanks are otherwise out of service, the EPA has concluded 
that fitting controls are practical and affordable for existing 
external floating roof storage tanks. These controls also prevent 
pollution and conserve energy by preventing liquid gasoline from 
evaporating. Having given full consideration to the directives in the 
Act, the Administrator is requiring gasoline storage vessels at 
existing facilities to control the deck fittings when replacing or 
installing rim seals on external floating roof storage tanks to comply 
with the requirements in this final rule. Given the small national HAP 
emission reduction, the Agency has decided not to require fitting 
controls on existing internal floating roof storage tanks. While the 
EPA is not at this time requiring these controls nationally on internal 
floating roofs, the EPA encourages industry to consider the 
installation of these controls on a case-by-case basis. All new storage 
tanks at both new and existing facilities are already required under 
NSPS requirements of 40 CFR part 60, subpart Kb to install these same 
fitting controls. Those NSPS requirements are cross-referenced and are 
therefore part of today's final rule. This level of control for roof 
deck fittings for new sources and for existing external floating roof 
tanks upgrading to rim seal requirements under this rule, is the same 
level as proposed on February 8, 1994. The storage vessel compliance 
period is discussed and analyzed in the next section.
    While this final rule does not require fitting controls for 
existing internal floating roof storage tanks or the existing external 
floating roof storage tanks currently meeting the rim seal requirements 
in this rule, the Agency believes it is appropriate and recommends the 
inspection, repair, and upgrading of gasketing materials on fittings in 
the tank roof when any storage tank is taken out of service. It is a 
major part of the normal safety and maintenance procedure to inspect, 
repair, and upgrade the physical and mechanical condition of all the 
tank components. Additionally, requiring fittings to be installed on 
all tanks will reduce additional air toxics and volatile organic 
compounds, and will upgrade all tanks to the same level of control. An 
effective mechanism to get controlled fittings in place on all tanks is 
the combination of this rule, the air toxics programs under section 
112(l) of the Act, and the national ambient air quality programs for 
control of ambient ozone under the Act. The EPA recommends that State 
and local air pollution control agencies pursue implementation of 
fitting controls on the remaining tanks under those programs.
 Compliance Period
    Several commenters said that the proposed 3-year compliance period 
for storage tanks is unreasonable and is more stringent than the 
compliance schedule in other Federal regulations. To install the 
required controls, tanks would have to be taken out of service, 
cleaned, and degassed. Requiring all storage tanks to comply in a 3-
year period could potentially disrupt the nation's gasoline supply, 
causing a gasoline shortage, especially in light of the new 
reformulated/oxygenated fuel requirements. One commenter stated that 
limited contractor resources could make the schedule logistically 
unworkable. Additionally, the cleaning and degassing of a storage tank 
creates an air emissions event that in many cases will exceed the 
emission reductions resulting from the new controls (e.g., the retrofit 
of an internal floating roof tank already meeting 40 CFR part 60, 
subpart Ka rim seal requirements). One commenter stated that the EPA 
must perform a cost effectiveness analysis to support a 3-year 
compliance date. All of the commenters suggested that the EPA relax the 
compliance schedule and allow storage tank owners and operators to 
comply at the next scheduled tank inspection or within 10 years, 
whichever comes first. One of the commenters felt that a 10-year period 
is an integral part of the floor for existing sources. This commenter 
recommended that, should the EPA not allow up to 10 years for 
compliance for all tanks currently equipped with floating roofs, at a 
minimum internal floating roof tanks currently meeting NSPS subpart Ka 
requirements should be provided a compliance period up to 10 years, or 
the next regular inspection cycle, whichever occurs first.
    Section 112(i)(3) of the Act requires the Administrator to 
establish a compliance date which shall provide for compliance as 
expeditiously as practicable, but in no event later than 3 years after 
the effective date (promulgation) of the standards. In addition, the 
Administrator (or a State with a program approved under title V) may 
issue a permit which grants up to a 1-year extension to comply with the 
standards if an additional period is necessary for installation of 
controls. However, some commenters suggest that taking a tank out of 
service before its normal cleaning and inspection schedule to comply 
with the regulation may generate more emissions than the added controls 
would reduce or control in the 3-year period.
    To determine whether any tanks should be allowed an extension of 
the compliance time to achieve the maximum degree of reduction in 
emissions of HAP, the EPA compared the emission reductions achieved by 
the controls (i.e., rim seals and fittings controls) to the emissions 
generated from degassing and cleaning of fixed-roof and internal and 
external floating roof tanks for various tank diameters and gasoline 
turnover rates. The results of this analysis showed that additional 
degassing and cleaning emissions do not exceed the emission reductions 
from tanks complying with this final rule within the required 3-year 
compliance period. The analysis did show net emissions increases for 
some very large tanks either installing secondary seals without 
installing fitting controls, or installing fitting controls alone. 
However, these final standards require a facility to install fitting 
controls when installing secondary rim seals, and no tanks are required 
to install fitting controls alone. A complete discussion of this 
analysis of emissions generated from tank cleaning and degassing is 
presented in Appendix B of the promulgation BID.


D. Cargo Tank Requirements


 Emission Factors
    Several commenters stated that the EPA's assumption at proposal 
that tank trucks that have passed the EPA Method 27 annual vapor 
tightness test leak 10 percent of their emissions during controlled 
loading is outdated and inaccurate. Consequently, the baseline 
emissions calculated for tank trucks are grossly overstated. New data 
suggest that very few tank trucks leak due to today's better 
construction standards and the test requirements in effect under 
current Federal and State rules. One commenter provided calculations 
indicating that, under the proposed pressure decay standard (which is 
the same as the 40 CFR part 60, subpart XX NSPS requirement), a typical 
controlled tank truck would have a leakage emission factor for loading 
of 5.6 mg/liter (at the allowable maximum of 18 in. H<INF>2O 
backpressure). Another commenter estimated, on the basis of test 
failure rate data from the Bay Area Air Quality Management District 
(BAAQMD) and several oil companies, that the overall average leak rate 
is 0.88 percent of the total volume of vapors displaced during the 
loading of tank trucks connected to a vapor recovery system.
    The EPA's estimate of 10 percent vapor leakage from emission 
sources in tank trucks while loading at controlled loading racks was 
based on data collected in 1978 on 27 tank trucks in California. These 
tank trucks were under a State requirement to be certified annually in 
a vapor tightness test, and time periods ranging from 4 days to a full 
year had elapsed since the last certification test for these trucks. 
The volume losses among the trucks varied from 0.1 to 35.8 percent, 
with the average leakage being about 10 percent. The data from these 
tests were further described, and the 10 percent figure derived, in the 
BID for the proposed NSPS for bulk gasoline terminals (docket item IIA
-14).
    The commenter who supplied the 0.88 percent overall leakage 
estimate relied upon vapor volume loss data for individual tank trucks 
reported in the 1978 study, and combined these data with test failure 
rate data from the BAAQMD (pressure test data) and from several oil 
companies (combustible gas detector results gathered during loading 
rack performance tests). Based on an assumption that a leak definition 
of 10,000 ppm is equivalent to a 1 percent loss of vapors through 
leakage, the commenter determined that the average leak rate for tanks 
with leakage rates over 1 percent (``failing'' tanks) was 12.1 percent, 
while the average leak rate for the remaining, ``passing'' tanks was 
0.5 percent. On the basis of the failure rate data, the overall failure 
rate during 1989 to 1994 was found to be 3.3 percent. Combining the 
average leak rate figures with these failure prevalence data, the 
commenter arrived at the overall leak rate for all tank trucks of 0.88 
percent.
    The EPA recognizes and agrees with the commenter that the available 
data indicate that overall vapor leakage rates from tank trucks subject 
to a regular test and repair program using the pressure decay procedure 
have been reduced over the past 16 years. However, the use of 
concentration data to estimate a volume leakage rate, as the commenter 
has done, is uncertain. In addition, neither the EPA nor industry have 
access to current data for several areas throughout the country that 
would allow a national average calculation of this volume leakage to be 
made. Therefore, any numerical result derived from the existing data 
would be at best a broad estimate, which would not account for the full 
range of truck ages, ownership scenarios, and local control programs.
    In spite of these limitations, the EPA has made an estimate which 
it feels more closely reflects actual overall emissions under a vaportight 
cargo tank program than the emission factor used for the 
proposal. The Agency's new emission factor, 0.8 percent of the total 
vapors displaced or 8 mg of VOC/liter, is based on the use of a volume 
loss equation found in Appendix C of the tank truck CTG (EPA-450/2-78-
 combined with the test failure rate data submitted by the 
commenter and measured leakage from trucks that failed the test. This 
new emission factor represents the emissions after control to the level 
of today's final standards as discussed in the following sections. The 
promulgation BID, Appendix A presents more details on the calculation 
of this emission factor.
 Control Level
    a. Vacuum assist vapor collection. Many commenters expressed 
opposition to the proposal to require use of ``vacuum assist'' 
technology at new bulk terminal loading racks. Most of the commenters 
felt that annual vapor tightness testing is adequate to control tank 
truck leakage emissions. Some commenters expressed safety concerns; 
e.g., the potential for fires and tank truck implosion. One of them 
said that internal tank vacuums can (and already do) damage the 
internal compartment heads of tank trucks by reversing those heads and 
weakening the tank's outer shell, which compromises product retention 
capability. Several do not believe that vacuum assist technology has 
been demonstrated as ``achievable in practice.'' The technology has 
been used in only one State (Texas) and has not been tested under 
various climatic conditions, such as combined low temperatures and high 
humidity levels. Others believe that the complexity of the loading 
system would increase. Also, due to rapid fluctuations in gasoline flow 
rates and the requirement to maintain a vacuum at all times during 
loading, nuisance shutdowns of the loading operation could be a 
problem. One commenter said that such a system may adversely affect the 
efficiency of the vapor control device because air can leak into the 
vapor collection system and dilute the inlet VOC concentration. Another 
commenter felt that volatilization of fuel in the cargo tank would be 
increased due to the vacuum, sending more vapors to the control device. 
This would require a larger device which may have greater emissions, 
and more solid waste impact for the case of a carbon system. One 
commenter said that vacuum assist systems will increase electrical 
power consumption 15 to 400 percent depending on the type of emission 
control device used. Others said that vacuum assist is unnecessary, 
because tank trucks do not leak enough during loading to justify vacuum 
assist as a means of reducing the losses. Recent API data show that 
tank truck leakage has been significantly reduced since the EPA study 
performed in 1978. Three commenters said that the system addresses 
losses from the tank truck only while loading at the terminal and not 
while in transit or while operating at bulk plants and service 
stations. Other commenters said that vacuum assist is very expensive 
and not cost effective.
    The vacuum assist system was proposed for new source bulk terminals 
to control HAP emissions due to vapor leaks from cargo tanks during 
gasoline loading operations. This system creates a negative pressure in 
the vapor collection system during loading to ensure that vapors will 
not be forced out into the air through any leakage points. The proposal 
rationale was based on the following information. Vacuum assist systems 
are in use at a few bulk gasoline terminals (in addition to the annual 
vapor tightness test for truck tanks) in Texas, so it meets the Act 
requirement to consider the best controlled similar source in 
establishing the floor level of control for new terminals. Since less 
than 1 percent of terminals use this vacuum assist system, it is not 
considered the floor for cargo tank leakage at existing terminals. 
Annual vapor tightness testing of cargo tanks was considered at 
proposal to be the floor for existing terminals (this floor 
determination has been modified on the basis of public comments; see 59 
FR 42788, August 19, 1994). Based on field tests in the late 1970's, an 
annual vapor tightness testing program was estimated to reduce the 
leakage rate from baseline levels at 30 percent leakage to about 10 
percent leakage. The vacuum assist system was estimated to reduce the 
10 percent leakage rate under the annual vapor tightness test program 
by nearly 100 percent.
    Industry sources had expressed concerns before proposal regarding 
the operational reliability of a vacuum assist system, especially under 
extreme cold weather conditions. Those commenters also believed that 
the system could present a safety hazard if excess negative pressures 
were developed within a tank truck fuel compartment. To the Agency's 
knowledge, the systems in operation have not experienced any 
significant problems, and one of the systems has been operating for 
over 3 years. These systems contain safety pressure relief devices in 
combination with the pressure-vacuum vents already installed on each 
tank truck compartment. However, safety concerns are important to the 
Agency. The Agency specifically requested comment at proposal, 
including technical documentation and data where available, on the 
reliability, effectiveness, safety aspects, and any other issue 
concerning vacuum producing equipment for bulk terminal vapor 
collection systems. No technical documentation or data on installed 
systems was provided during the comment period.
    As discussed above in Section III.D.1, the leakage emission factor 
for controlled cargo tanks under an annual vapor tightness program was 
adjusted to reflect current data on the frequency with which cargo 
tanks pass the test on the first attempt. Emissions lost from cargo 
tanks under test programs with a pressure decay limit of 3 in. H<INF>2O 
are now estimated to be 1.3 percent of total vapor displaced during 
loading operations (just under 99 percent collection efficiency). In 
California, where an annual pressure decay limit of 1 inch of water is 
in effect, the emission losses during loading are estimated at 0.8 
percent (slightly over 99 percent collection). The corresponding HAP 
emission factors are 0.4 and 1.3 mg/liter of HAP for normal and 
oxygenated gasolines, respectively. At proposal, the leakage emission 
rate was estimated to be a 10 percent loss (90 percent collection 
efficiency). Thus, while vacuum assist systems were previously thought 
to have the potential to capture an additional 10 percent of the 
loading emissions, they now appear to have the potential to capture 
about 1 percent.
    The EPA shares commenters' concerns that the emission control 
achieved with the vacuum assist system is uncertain. The Agency's 
uncertainty centers on the system's effectiveness in accurately 
maintaining a slight vacuum to collect a small leak (1 percent of the 
volume displaced to the collection system) while handling the 
variability of flows and pressures and limiting the ingestion of air 
into the system to a degree where it does not affect the control 
effectiveness of the processor. The vapor volume collected by the 
system and internal pressures within the vapor collection system vary 
widely throughout the day. Each cargo tank loading and displacing 
vapors influences the pressures and flows in the system. Terminals 
operate on demand, just like gasoline service stations. The number of 
tanks loading at any given time varies from none, to a few, to 10 or 
more tanks. Additionally, vapor processor control efficiency may be 
adversely influenced by increased amounts of air sent to the control 
system. A vacuum assist system draws additional air into the system. 
Even small malfunctions in the system would be likely to increase 
emissions above the 1 percent control target. Finally, the Agency 
agrees that it lacks sufficient information to determine whether 
conditions outside of Texas may affect the control performance of 
vacuum assist methods.
    The proposal of vacuum assist was based on the minimum baseline 
(floor) at which standards may be set. Under section 112(d)(3) of the 
Act, the floor for new sources


shall not be less stringent than the emission control that is 
achieved in practice by the best controlled similar source, as 
determined by the Administrator.


The Administrator has determined that emission control is not being 
achieved in practice given the technical uncertainties about achieving 
emission reduction from this source as discussed in the previous 
paragraph. Consequently, the proposed vacuum assist requirement for new 
bulk terminals has been deleted from the final rule.
    b. Vapor tightness standards. Two commenters recommended during the 
proposal's comment period that the EPA implement the cargo tank vapor 
tightness program in effect within the State of California since 1977. 
The California standard requires annual certification that cargo tanks 
meet 5-minute pressure and vacuum decay standards of 1 inch of water 
column (in. H<INF>2O). Based on a BAAQMD survey of 200 tank truck 
owners which quantified actual pressure change values, California is 
proposing to lower this annual standard to 0.5 in. H<INF>2O. In 
addition, the same commenters recommended that the EPA apply the 
California year-round standard of 2.5 in. H<INF>2O pressure loss in 5 
minutes. The EPA published a supplemental Federal Register notice (59 
FR 42788, August 19, 1994) and opened a comment period for 
consideration of the existing California standards as the level of 
control for new and existing sources in the final MACT rule. The 
following comments were received on the floor determination and on the 
level of control that is appropriate for controlling cargo tank 
leakage. The promulgation BID summarizes additional comments and 
responses to comments received on the proposal and supplemental notice.
    Five commenters felt that the existing California standards should 
be specified for cargo tanks at new sources, but would be inappropriate 
for existing sources. These commenters based their opinion on the 
conclusion that the EPA had inappropriately based its floor 
determination on California's gasoline throughput, or number of tank 
trucks operating in the State. They felt that, since the legal 
responsibility for compliance would be on the terminal owner or 
operator, the basis should be the number of terminals in California. 
One commenter said that this figure is 71, out of a total of 1,125 
terminals nationwide (6.3 percent). Since this value is less than the 
required 12 percent, applying this control level to existing sources 
would be an ``above the floor'' option. Thus, a cost effectiveness 
analysis should be provided to justify the California standards as the 
existing source floor. Another commenter stated that the California 
Highway Patrol, which monitors California's tank testing program, does 
not include vapor tightness testing in its 44-point program for 
inspecting out-of-State cargo tanks. The commenter felt that this issue 
could impact the foundation upon which the EPA had reopened the 
proposal action. Two commenters favored incorporation of the California 
standards for both new and existing sources.
    Several commenters responded to the EPA's request for comments on 
whether the level of control for cargo tanks at new and existing 
facilities should be based on the existing or the proposed California 
standards. Commenters were unanimous in asserting that only the 
existing, and not the proposed, California standards should be 
considered. Two of the commenters felt that BAAQMD's survey of 200 tank 
truck owners was not sufficiently representative to indicate that the 
more stringent proposed standards should be applied. Another commenter 
said the proposed requirements should not be adopted because: (1) the 
testing in the survey has not been properly peer reviewed, (2) the 
proposal has yet to be adopted by the California Air Resources Board 
(ARB), and (3) there is no conclusive demonstration of any significant 
emissions difference between the current and proposed standards. Two 
other commenters echoed that there is no basis for considering the more 
stringent standards because the effect on tank truck emissions is 
unknown. Finally, one commenter requested that the EPA consider the 
proposed California standards for new and existing facilities, feeling 
that this would standardize regulations nationwide and result in lower 
costs for equipment and remove some burden from the California ARB.
    The California ARB and the California air pollution control 
districts have been implementing tank truck leakage standards since the 
late 1970's. Currently, all tank trucks transporting gasoline in 
California, including tank trucks from neighboring States that operate 
in California, must meet the California standards and are checked by 
the California air pollution control districts. In summary, they 
include three major standards: an annual certification, a year-round 
standard for the tank and its vapor piping and hoses, and a year-round 
pressure standard for the tank truck's internal vapor valve. The annual 
certification standards include initially pressurizing and later 
evacuating the tank and associated vapor piping and hoses to 18 in. 
H<INF>2O and to 6 in. H<INF>2O, respectively. In 5 minutes the 
allowable pressure change may be no more than the values shown in Table 

 Further details on the performance requirements and test procedures 
used in the California program were discussed at 59 FR 42788. The EPA's 
Control Techniques Guideline (CTG) document and NSPS, subpart XX 
contain annual pressure and vacuum test levels of initial pressures and 
test duration which are the same as California's. However, a less 
stringent pressure change of 75 mm of water column (3 in. H<INF>2O) is 
allowed for all tank trucks under the NSPS, the CTG, and the proposal.


      Table 1.--Allowable Cargo Tank Test Pressure or Vacuum Change     

                                              Annual                    
                                          certification-     Allowable  
                                             allowable       pressure   
                                           in 5 minutes,   time, mm H<INF>2O 
                                            mm H<INF>2O (in.      (in. H<INF>2O)  
                                               H<INF>2O)                     
                   40 CFR citation                      OMB control No. 
                                  *****                                 
National Emission Standards for Hazardous Air                           
 Pollutants for Source Categories....................                   
                                                                        
                                  *****                                 
                                                                        
                                  *****                                 
                                              Annual                    
                                          certification-     Allowable  
                                             allowable       pressure   
                                            pressure or   change (<greek-
                                          <greek-D>v) in   time, mm H<INF>2O 
                                           5 minutes, mm     (in. H<INF>2O)  
                                           H<INF>2O (in. H<INF>2O)                
                                                               Interval 
                                                               pressure 
                       Time interval                          change, mm
                                                               H<INF>2O (in. 
                                                                 H<INF>2O)   
                       Table 1 to Subpart R--General Provisions Applicability to Subpart R                      
                                                           Applies to                                           
                       Reference                           subpart R                     Comment                
63.1(a)(5).............................................  No             Section reserved                        
63.1(a)(9).............................................  No             Section reserved                        
                                                                         Sec. 63.420                            
                                                                         recordkeeping for some large area      
                                                                         sources in Sec. 63.428                 
                                                                         subpart R                              
63.1(c)(3).............................................  No             Section reserved                        
63.1(d)................................................  No             Section reserved                        
63.4(a)(4).............................................  No             Section reserved                        
63.5(b)(2).............................................  No             Section reserved                        
63.5(c)................................................  No             Section reserved                        
63.6(b)(6).............................................  No             Section reserved                        
63.6(c)(3)-(c)(4)......................................  No             Sections reserved                       
63.6(d)................................................  No             Section reserved                        
63.6(i)(15)............................................  No             Section reserved                        
63.8(a)(3).............................................  No             Section reserved                        
                                                                         notification requirement               
63.9(h)(4).............................................  No             Section reserved                        
63.10(c)(2)-(c)(4).....................................  No             Sections reserved                       
63.10(c)(9)............................................  No             Section reserved                        
                                                            Applies                                             
                                                               to                                               
                         Reference                          subpart                    Comment                  
                                                               R 

 
 


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