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CFR Citation: 40 CFR Parts 60 and 63

RIN ID: RIN 2060-AN71

EPA ID: [EPA-HQ-OAR-2006-0699; FRL-8492-4]

NOTICE: Part III

DOCUMENT ACTION: Final rule.

SUBJECT CATEGORY: Standards of Performance for Equipment Leaks of VOC in the Synthetic Organic Chemicals Manufacturing Industry; Standards of Performance for Equipment Leaks of VOC in Petroleum Refineries

DATES: This final rule is effective on November 16, 2007. The incorporation by reference of certain publications listed in these rules is approved by the Director of the Federal Register as of November 16, 2007.

DOCUMENT SUMMARY: EPA is issuing final amendments to the standards of performance for equipment leaks of volatile organic compounds in the synthetic organic chemicals manufacturing industry and to the standards of performance for equipment leaks of volatile organic compounds in petroleum refineries. The amended standards for the synthetic organic chemicals manufacturing industry apply to affected facilities that are constructed, reconstructed, or modified after January 5, 1981, and on or before November 7, 2006. The amended standards for petroleum refineries apply to affected facilities that are constructed, reconstructed, or modified after January 4, 1983, and on or before November 7, 2006. In this action, EPA is also issuing new standards of performance for equipment leaks of volatile organic compounds in the synthetic organic chemicals manufacturing industry and for equipment leaks of volatile organic compounds in petroleum refineries which apply to affected facilities that are constructed, reconstructed, or modified after November 7, 2006. The final amendments and new standards are based on the results of our review of the existing regulations as required by section 111(b)(1)(B) of the Clean Air Act.

SUMMARY: Environmental Protection Agency,

SUPPLEMENTAL INFORMATION

Regulated Entities. Categories and entities potentially regulated by this action include:
Examples of Category NAICS code\1\ potentially regulated entities Industry...................... 324110........... Petroleum refiners. Primarily 325110, Synthetic organic 325192, 325193, chemical and 325199. manufacturing industry (SOCMI) units, e.g., producers of benzene, toluene, or any other chemical listed in 40 CFR 60.489. \1\ North American Industrial Classification Code.

This table is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be regulated by this action. To determine whether your facility is regulated by this action, you should examine the applicability criteria in 40 CFR 60.480, 60.590, 60.480a, and 60.590a. If you have any questions regarding the applicability of the final amendments or new standards to a particular entity, contact the people listed in the preceding FOR FURTHER INFORMATION CONTACT section.

Worldwide Web (WWW). In addition to being available in the docket, an electronic copy of the final rule is available on the WWW through the Technology Transfer Network (TTN). Following signature, EPA will post a copy of the final rule on the TTN's policy and guidance page for newly proposed or promulgated rules at http://www.epa.gov/ttn/oarpg. The TTN provides information and technology exchange in various areas of air pollution control.

Judicial Review. Under section 307(b) of the Clean Air Act (CAA), judicial review of the final rule is available only by filing a petition for review in the United States Court of Appeals for the District of Columbia Circuit by January 15, 2008. Under section 307(d)(7)(B) of the CAA, only an objection to the final rule that was raised with reasonable specificity during the period for pubic comment can be raised during judicial review. Moreover, under section 307(b)(2) of the CAA, the requirements established by this final rule may not be challenged separately in any civil or criminal proceedings brought by EPA to enforce these requirements.

Section 307(d)(7)(B) of the CAA further provides that ``[O]nly an objection to a rule or procedure which was raised with reasonable specificity during the period for public comment (including any public hearing) may be raised during judicial review.'' This section also provides a mechanism for us to convene a proceeding for
reconsideration, ``[i]f the person raising an objection can demonstrate to the EPA that is was impracticable to raise such objection within [the period for public comment] or if the grounds for such objection arose after the period for public comment (but within the time [[Page 64861]]
specified for judicial review) and if such objection is of central relevance to the outcome of the rule.'' Any person seeking to make such a demonstration to us should submit a Petition for Reconsideration to the Office of the Administrator, U.S. EPA, Room 3000, Ariel Rios Building, 1200 Pennsylvania Ave., NW., Washington, DC 20460, with a copy to both the person(s) listed in the preceding FOR FURTHER INFORMATION CONTACT section, and the Associate General Counsel for the Air and Radiation Law Office, Office of General Counsel (Mail Code 2344A), U.S. EPA, 1200 Pennsylvania Ave., NW., Washington, DC 20460.

Outline. The information presented in this preamble is organized as follows:

I. Background Information

A. What is the statutory authority for the final amendments and new standards?

B. What are the current equipment leak NSPS?

C. How were the final amendments developed?
II. Summary of the Final Amendments, New Standards, and Changes Since Proposal

A. What are the final amendments to 40 CFR part 60, subpart VV?

B. What are the final amendments to 40 CFR part 60, subpart GGG?

C. What are the requirements of 40 CFR part 60, subpart VVa?

D. What are the requirements of 40 CFR part 60, subpart GGGa? III. Rationale for Changes Since Proposal

A. How did EPA develop new standards for 40 CFR part 60, subparts VVa and GGGa?

B. How did EPA develop the new compliance requirements in 40 CFR part 60, subparts VVa and GGGa?

C. How did EPA develop the final amendments to 40 CFR part 60, subparts VV and GGG?
IV. Summary of Comments and Responses

A. Applicability

B. Standards

C. Test Methods and Procedures

D. Recordkeeping and Reporting

E. Burden Estimates
V. Summary of Cost, Environmental, Energy, and Economic Impacts

A. What are the impacts for SOCMI process units?

B. What are the impacts for petroleum refining process units?

C. What are the economic 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 Risks and Safety Risks

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

I. National Technology Transfer and Advancement Act

J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and LowIncome Populations

K. Congressional Review Act
I. Background Information
A. What is the statutory authority for the final amendments and new standards?

New source performance standards (NSPS) implement CAA section 111 and are issued for categories of sources which cause, or contribute significantly to, air pollution which may reasonably be anticipated to endanger public health or welfare. The primary purpose of the NSPS are to attain and maintain ambient air quality by ensuring that the best demonstrated emission control technologies are installed as the industrial infrastructure is modernized. Since 1970, the NSPS have been successful in achieving longterm emissions reductions at numerous industries by assuring costeffective controls are installed on new, reconstructed, or modified sources.

Section 111 of the CAA requires that NSPS reflect the application of the best system of emission reductions which (taking into consideration the cost of achieving such emission reductions, any non air quality health and environmental impact and energy requirements) the Administrator determines has been adequately demonstrated. This level of control is commonly referred to as best demonstrated technology (BDT).

Section 111(b)(1)(B) of the CAA requires that EPA periodically review and revise the standards of performance, as necessary, to reflect improvements in methods for reducing emissions. Based on the results of the review required by CAA section 111(b)(1)(B), we proposed amendments to the NSPS for equipment leaks of volatile organic compounds (VOC) in the synthetic organic chemicals manufacturing industry (SOCMI) and the petroleum refining industry on November 7, 2006 (71 FR 65302). In this action, EPA is finalizing amendments to 40 CFR part 60, subparts VV and GGG and issuing new standards of performance in 40 CFR part 60, subparts VVa and GGGa.

B. What are the current equipment leak NSPS?

New source performance standards for equipment leaks of VOC have been developed for four source categories. Subpart VV of 40 CFR part 60 applies to SOCMI process units. Subpart DDD of 40 CFR part 60, Standards of Performance for Volatile Organic Compound (VOC) Emissions from the Polymer Manufacturing Industry, applies to polypropylene, polyethylene, polystyrene, and poly (ethylene terephthalate) process units. Subpart GGG of 40 CFR part 60 applies to petroleum refining process units. Subpart KKK of 40 CFR part 60 applies to onshore natural gas processing plants. Subparts DDD, GGG, and KKK of 40 CFR part 60 crossreference the requirements in subpart VV, and they specify source categoryspecific definitions and exceptions to the requirements in subpart VV.

The NSPS for equipment leaks of VOC in the SOCMI (40 CFR part 60, subpart VV) were originally promulgated on October 18, 1983 (48 FR 48335) and apply to all equipment, as defined by the rule, within a process unit in the SOCMI that commenced construction, reconstruction, or modification after January 5, 1981. For the purpose of subpart VV, the SOCMI consists of process units producing any of the chemicals listed in 40 CFR 60.489 of subpart VV. The standards apply to pumps, compressors, pressure relief devices, sampling connection systems, openended valves or lines (OEL), valves, and flanges or other connectors in VOC service. Depending on the type of equipment, the standards require either periodic monitoring for and repair of leaks, the use of specified equipment to minimize leaks, or specified work practices. Monitoring for leaks must be conducted using EPA Method 21 in appendix A7 to 40 CFR part 60 or other approved equivalent monitoring techniques. Owners and operators must keep records that identify the equipment that is subject to the standards, identify equipment that is leaking, and document attempts at repair. Information related to leaks and repair attempts also must be included in semiannual reports. This subpart has been amended several times between 1984 and 2000. Typically, these amendments added definitions, exemptions, alternative compliance options, and clarifications. For example, one amendment provides an option to comply with the equipment leak provisions in the Consolidated Federal Air Rule (CAR) (40 CFR part 65, subpart F). None of these amendments increased the intended performance level of the standards.

The NSPS for equipment leaks of VOC in petroleum refineries (40 CFR part 60, subpart GGG) apply to petroleum refining process units for which construction, reconstruction, or modification commenced after January
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4, 1983. Those standards were originally promulgated on May 30, 1984 (49 FR 22606), and have been amended only once since the original promulgation (65 FR 61768, October 17, 2000) to update the American Society for Testing and Materials (ASTM) test method references. C. How were the final amendments developed?

We proposed amendments to 40 CFR part 60, subpart VV and 40 CFR part 60, subpart GGG on November 7, 2006 (71 FR 65302). The preamble for the proposed amendments described the rationale for the proposed amendments. Public comments were solicited at the time of proposal. The public comment period lasted from November 7, 2006, to February 8, 2007. We offered at proposal the opportunity for a public hearing concerning the proposed amendments, but no hearing was requested. We also published a Notice of Additional Data Availability (NODA) on July 9, 2007 (72 FR 37157). The NODA provided additional information regarding OEL. Public comments were solicited at the time of publication, and the public comment period lasted from July 9, 2007, to August 8, 2007.

We received a total of 28 public comment letters during the comment periods, 23 on the proposed amendments and five on the NODA. Comments were submitted by industry trade associations and consultants, chemical companies and petroleum refineries, state regulatory agencies, local government agencies, and environmental groups. These final amendments reflect our consideration of all of the comments received during the comment periods. Major public comments on the proposed amendments, along with our responses to those comments, are summarized in this preamble.
II. Summary of the Final Amendments, New Standards, and Changes Since Proposal

In response to public comments, we have revised the scope and applicability of the proposed amendments to the standards of performance for equipment leaks of VOC for SOCMI (40 CFR part 60, subpart VV) and petroleum refineries (40 CFR part 60, subpart GGG). As proposed, all of the amendments to subparts VV and GGG, except the change in leak definitions for pumps and valves, applied to affected facilities in these industries that commenced construction, reconstruction, or modification after January 5, 1981, (SOCMI) or January 4, 1983, (petroleum refineries). In addition, all of the proposed amendments, except the leak definition change, applied to affected facilities under all other NSPS that crossreference subpart VV (i.e., 40 CFR part 60, subparts DDD and KKK).

Based on the public comments, we decided to include only clarifications, changes that reduce burden, and additional compliance options in the final amendments to 40 CFR part 60, subparts VV and GGG. The final amendments to both subparts also limit which SOCMI and petroleum refinery affected sources are subject to the existing subparts. Specifically, the existing subparts only apply to those existing affected sources that commenced construction, reconstruction, or modification after January 5, 1981, (SOCMI) or January 4, 1983, (petroleum refineries) and on or before November 7, 2006. The final amendments to subpart VV also apply to affected sources under NSPS that crossreference subpart VV (i.e., 40 CFR part 60, subparts DDD and KKK).

In addition to amending 40 CFR part 60, subparts VV and GGG, we also decided to develop new standards in new subparts VVa and GGGa of 40 CFR part 60 that apply only to SOCMI and petroleum refinery affected sources, respectively, that commence construction, reconstruction, or modification after November 7, 2006. These new standards parallel the standards in the amended subparts VV and GGG, but they also include different standards for pumps in light liquid service and valves in gas/vapor or light liquid service (i.e., lower leak definitions than in subparts VV and GGG), and they include additional recordkeeping and instrument calibration requirements. Furthermore, the new standards in 40 CFR part 60, subpart VVa include monitoring and repair requirements for connectors. The new standards do not apply to affected sources under 40 CFR part 60, subparts DDD or KKK because we have not amended those subparts to reference the requirements in subpart VVa and we have not completed an analysis to determine if the new standards are BDT for subparts DDD and KKK.
A. What are the final amendments to 40 CFR part 60, subpart VV?

The final amendments to 40 CFR part 60, subpart VV provide additional compliance options, clarify ambiguous provisions, and make technical corrections. These changes are summarized in Table 1 in section III.C of this preamble.

1. Applicability

The owner or operator of an affected facility subject to 40 CFR part 60, subpart VV may choose to comply with the requirements in new 40 CFR part 60, subpart VVa instead of the requirements in subpart VV. 2. Standards

The final amendments simplify the compliance requirements for pumps. When indications of liquids dripping are observed during weekly inspections, 40 CFR part 60, subpart VV requires repair of the leak following the same procedures as if the leak were detected by monitoring. The final amendment in 40 CFR 60.4822(b)(2) allows the owner or operator to either repair the leak by eliminating the indications of liquids dripping or determine if it is leaking based on the instrument reading obtained by monitoring the pump in accordance with EPA Method 21 (40 CFR part 60, appendix A7) or other approved equivalent monitoring techniques. This amendment will focus the leak detection and repair (LDAR) program on finding and repairing VOC leaks.

The final amendments also include an alternative compliance option that allows less frequent monitoring for pumps and valves in batch process units that operate parttime during the year. This alternative applies to currently required monthly, quarterly, and semiannual monitoring intervals; less frequent monitoring is not allowed for monitoring that is currently required on an annual or less frequent basis. For example, pumps in a process unit that operate 5,250 hours per year (about 60 percent of fulltime operation) may be monitored every other month rather than monthly. This alternative will ensure that monitoring occurs consistently while the process unit is operating. The alternative monitoring schedule for batch processes was developed as part of the development of the hazardous organic national emission standards for hazardous air pollutants (NESHAP) (HON) (57 FR 62680). This alternative has been determined to be comparable to the provisions for continuous processes. As the time in use increases, the monitoring frequencies are identical for both batch and continuous processes.

In response to public comments, we have revised the proposed clarification to the initial monitoring requirements for pumps and valves (that all pumps and valves be monitored within the first month of operation after installation). The final amendments require the owner or operator to monitor all pumps
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on a monthly basis regardless of whether the pump is new or existing. The owner or operator of a new valve must monitor the valve for the first time within 30 days after being placed into service to ensure proper installation. Any valve for which a leak is not detected for 2 successive months may be monitored the first month of every quarter, beginning with the next quarter, until a leak is detected. As an alternative to monitoring a new valve within 30 days, if the valves in the process unit are monitored under the alternative standards for valves that allow skip period leak detection and repair in 40 CFR 60.4832, the owner or operator must count the new valve as leaking when calculating the percentage of valves leaking. If less than 2.0 percent of the valves are leaking for that process unit, the valve must be monitored for the first time during the next scheduled monitoring event for existing valves in the process unit or within 90 days, whichever comes first.

As an alternative to monitoring all of the valves in the first month of a quarter, an owner or operator may elect to subdivide the process unit into two or three subgroups of valves and monitor each subgroup in a different month during the quarter, provided each subgroup is monitored every 3 months. The owner or operator must keep records of the valves assigned to each subgroup.

The clarifications to the requirements for sampling connection systems in 40 CFR 60.4825 have been revised since proposal to add additional destinations for purged process fluid. All containers must be covered when not being filled or emptied. The amendments also clarify what materials must be captured and returned to the process during sampling.

In response to comments, we have revised the proposed option for delay of repair in 40 CFR 60.4829. The proposed amendment would have allowed the owner or operator to discontinue monitoring for equipment on delayofrepair. We have not included this in the final amendments and new standards because a leak may worsen while on delayofrepair and require a more immediate shutdown. Therefore, all equipment on delayofrepair must be monitored as scheduled. The option to consider equipment to be repaired if two consecutive readings are below the leak definition was not removed. If two consecutive readings are below the applicable leak definition, the owner or operator may remove the equipment from delayofrepair.

3. Definitions

Several amendments clarify the original intent of the definitions in 40 CFR part 60, subpart VV. These definitions include ``connector,'' ``process unit,'' and ``sampling connection system.'' In addition, definitions of ``closedloop system,'' ``closedpurge system,'' ``storage vessel,'' and ``transfer rack'' were added to further clarify existing definitions. The definition of ``process unit'' is discussed in further detail in section IV.A.3 of this preamble. The rationale for revising and adding the other definitions is included in Docket ID No. EPAHQOAR20060699.

4. Miscellaneous Corrections

Finally, the final amendments include a few technical corrections to fix references and other miscellaneous errors in 40 CFR part 60, subpart VV. No changes have been made to the proposed corrections, and a number of additional corrections are included in the final amendments. The technical corrections are identified in section III.A.3 of the preamble to the proposed amendments (71 FR 6530765308, November 7, 2006) as well as Table 1 of this preamble.
B. What are the final amendments to 40 CFR part 60, subpart GGG?

A few minor changes have been made to the 40 CFR part 60, subpart GGG amendments since proposal. The heading and 40 CFR 60.590(b) were revised to clarify that the subpart applies to sources that commence construction, reconstruction, or modification on or before November 7, 2006, and 40 CFR 60.590(d) was revised to exclude facilities subject to 40 CFR part 60, subpart VVa. Proposed revisions that remain in the final amendments to subpart GGG include a definition of ``asphalt'' and an exemption from the requirements for OEL in 40 CFR 60.4826(a) through (c) for OEL containing asphalt. The definition of ``process unit'' is comparable to the definition in 40 CFR part 60, subpart VV.

The final amendments also include a few technical corrections to fix references and other miscellaneous errors in 40 CFR part 60, subpart GGG. These changes are identified in section III.B.5 of the preamble to the proposed amendments (71 FR 65309, November 7, 2006). No changes have been made to these corrections since proposal. C. What are the requirements of 40 CFR part 60, subpart VVa?

40 CFR part 60, subpart VVa applies to affected facilities in the SOCMI that are constructed, reconstructed, or modified after November 7, 2006. This new subpart includes all the requirements of 40 CFR part 60, subpart VV, as amended, along with new provisions. The owner or operator of an affected facility subject to subpart VVa may elect to comply with the CAR at 40 CFR part 65, subpart F, or the HON at 40 CFR part 63, subpart H, instead of the requirements in subpart VVa, provided they still comply with the requirements in 40 CFR 60.4826a.

40 CFR part 60, subpart VVa includes lower leak definitions for pumps and valves than 40 CFR part 60, subpart VV. Under subpart VVa, the leak definition for pumps in light liquid service is 2,000 parts per million (ppm) (5,000 ppm for pumps handling polymerizing monomers) instead of 10,000 ppm. The leak definition for valves in gas/vapor service or light liquid service is 500 ppm instead of 10,000 ppm. Rationale for this new standard was provided in section III.A.1 of the preamble to the proposed amendments and is discussed further in section III.A.1 of this preamble.

40 CFR part 60, subpart VVa also includes requirements for monitoring connectors. The owner or operator is required to monitor connectors at a leak definition of 500 ppm and at a frequency that is based on the percentage of connectors found to be leaking. The rationale supporting the LDAR provisions for connectors is located in section III.A.2 of this preamble.

40 CFR part 60, subpart VVa includes additional recordkeeping requirements and quality assurance measures. Records must identify the monitoring instrument, operator, equipment, the date, and maximum instrument reading. A calibration drift assessment is required at the end of each day of monitoring and records of monitoring instrument calibrations are required. The calibration drift assessment requirements proposed for 40 CFR part 60, subpart VV were revised based on public comments. The requirements in the new standards include a requirement to remonitor equipment if the drift assessment shows positive drift. The requirements in the new standards provide for a less stringent remonitoring effort for drift assessments showing negative drift.
D. What are the requirements of 40 CFR part 60, subpart GGGa?

40 CFR part 60, subpart GGGa applies to affected facilities at petroleum refineries that are constructed, reconstructed, or modified after November 7, 2006. New subpart GGGa
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includes the requirements in 40 CFR part 60, subpart GGG, as amended. Affected facilities must comply with the requirements in new subpart VVa of 40 CFR part 60, except for the monitoring requirements applicable to connectors.
III. Rationale for Changes Since Proposal
A. How did EPA develop new standards for 40 CFR part 60, subparts VVa and GGGa?

Five sources of information were considered in reviewing the appropriateness of the current NSPS requirements for new sources: (1) Applicable Federal regulations; (2) applicable state and local regulations; (3) data from National Enforcement Investigations Center (NEIC) inspections; (4) emissions data provided by industry representatives; and (5) petroleum refinery consent decrees. (A significant number of refineries, representing about 77 percent of the national refining capacity, are subject to consent decrees that limit the emissions from 40 CFR part 60, subpart GGG process units.) Once we identified leak definitions for various equipment types, we evaluated these leak definitions in conjunction with technical feasibility, costs, and emission reductions to determine BDT for each type of equipment.

The cost methodology incorporates the calculation of annualized costs and emission reductions associated with each of the options presented. Costeffectiveness is the annualized cost of control divided by the annual emission reductions achieved. For NSPS regulations, the standard metric for expressing costs and emission reductions is the impact on all affected facilities accumulated over the first 5 years of the regulation. Details of the calculations can be found in the public docket (EPAOARHQ20060699). Our BDT determinations took all relevant factors into account, including cost considerations.

For each of the new standards, the predominant method used to reduce emissions from equipment leaks is the work practice of an LDAR program that includes periodic monitoring of equipment using EPA Method 21. This method has been used for more than 20 years to detect leaks and is currently the most widelyused test method. However, other approved methods may be used to detect leaks.

We also considered an equipment standard requiring installation of ``leakless'' equipment. ``Leakless'' equipment, such as diaphragm valves, is less likely to leak than standard equipment, but leaks may still develop. Therefore, monitoring or other type of observation is appropriate to ensure that leaks are caught if they develop. In addition, these types of equipment may not be suitable for all possible process operating temperatures, pressures, and fluid types. We could not identify any new ``leakless'' technologies that could be applied in all applications. Therefore, requiring ``leakless'' equipment is not technically feasible and this option was not considered to be BDT for SOCMI or petroleum refining sources. We note that 40 CFR part 60, subpart VV does include provisions for equipment designed for no detectable emissions, so owners or operators that do replace existing equipment with ``leakless'' equipment have options for compliance. 1. Leak Definitions for Pumps and Valves

We previously demonstrated that leak definitions of 2,000 ppm for pumps and 500 ppm for valves are BDT in the preamble to the proposed amendments to 40 CFR part 60, subparts VV and GGG (November 7, 2006, 71 FR 65305, with additional discussion at 71 FR 65308). Since proposal, the costeffectiveness values for this new requirement have changed slightly based on changes to the assumptions used to develop emission estimates; section V of this preamble includes details on the specific changes. For SOCMI, the estimated emission reductions are 94 tons of VOC per year at a cost savings of $380/ton. For petroleum refineries, the estimated emission reductions are 13 tons of VOC per year at a cost of $1,600/ton. The cost to achieve these emission reductions is still considered to be reasonable; therefore, we maintain our original conclusion that EPA Method 21 monitoring of pumps and valves and repair of leaks above 2,000 ppm for pumps and 500 ppm for valves is BDT.

We have also evaluated the costeffectiveness of lowering the leak definitions even further for valves because there are some state rules and petroleum refinery consent decrees at lower levels. The results of that analysis show that an LDAR program for valves at a leak definition lower than 500 ppm is not costeffective. The analysis shows emission reductions of 26 tons of additional VOC per year at a cost
effectiveness of $5,700/ton for SOCMI and emission reductions of 8 tons of additional VOC per year at a costeffectiveness of $16,000/ton for refineries. The additional VOC emission reductions at a leak definition lower than 500 ppm is not costeffective. The results of the impacts analysis is provided in the docket (Docket ID No. EPAHQOAR2006 0699).

We decided not to consider a lower leak definition for pumps because we do not have evidence that it will achieve significant emission reductions at reasonable cost and because such a requirement would impose an unwarranted increase in the compliance burden. No other Federal or state rules require repair of pumps with leaks below 2,000 ppm, and concerns have been expressed in the past that repair of pumps with lower concentrations could result in significant and costly maintenance. We also cannot estimate the emission reductions because we are unsure how effective repairs will be for pumps with low leak concentrations. In addition, many facilities that will be subject to the new standards have other process units that are subject to other standards. Including a leak definition in the new standards that differs from the leak definitions in all other rules would make compliance more challenging at such facilities and unnecessarily increase the potential for inadvertent errors.

We also did not consider increasing the number of times per year that valves and pumps must be monitored. Valves and pumps are already subject to monthly monitoring. The cost to monitor more frequently would outweigh the possible emission reductions. Additionally, pumps are subject to weekly inspections for indications of liquids dripping. Therefore, the monitoring frequency was not changed and is still considered BDT.

2. Other New Standards in 40 CFR Part 60, Subpart VVa

Connector Monitoring. The current NSPS in 40 CFR part 60, subpart VV limits VOC emissions from connectors by specifying that if a potential leak is found by visual, audible, olfactory, or any other detection method, the owner or operator must eliminate the indications of the potential leak or monitor the connector to determine whether the potential leak is leaking VOC greater than 10,000 ppm. If the potential leak is actually a leak, it must be repaired. When the current NSPS were promulgated, we concluded that this procedure would reduce emissions by correcting major leaks.

After consideration of current operating practices, we concluded that repairing connector leaks as they are discovered is still the predominant method for reduction of VOC from connectors. However, during our review of the current requirements, we found a
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number of Federal and state regulations that require additional efforts to reduce emissions, including regular monitoring and repair. Therefore, we evaluated options to achieve further emission reductions from connectors. Federal rules in which connector monitoring and repair of leaks above 500 ppm is required include the National Emission Standards for Organic Hazardous Air Pollutants for Equipment Leaks (HON) in 40 CFR part 63, subpart H, the National Emission Standards for Equipment LeaksControl Level 2 Standards (Generic MACT) in 40 CFR part 63, subpart UU, the National Emission Standards for Hazardous Air Pollutants for Source Categories: Generic Maximum Achievable Control Technology Standards (Ethylene NESHAP) in 40 CFR part 63, subpart YY, and the CAR. The National Emission Standards for Hazardous Air Pollutants: Miscellaneous Organic Chemical Manufacturing (MON) in 40 CFR part 63, subpart FFFF also includes connector monitoring and repair of leaks above 500 ppm for new sources. In addition, the National Emission Standards for Hazardous Air Pollutants From Petroleum Refineries (Refinery NESHAP) in 40 CFR part 63, subpart CC provides a higher maximum value for percent of leaking valves under which an owner or operator may use the skip period provisions if connector monitoring is included in the LDAR program. Based on this information, we felt that additional VOC control could be achieved by requiring connector monitoring and repair, but we needed additional information to determine whether connector monitoring is BDT. As a result, we requested comment on whether we should require periodic monitoring and repair of connectors to ensure that any leaks are corrected more quickly.

Upon consideration and review of the public comments, we evaluated whether the connector monitoring and repair provisions included in the Generic MACT are BDT for 40 CFR part 60, subparts VVa and GGGa. The Generic MACT provisions include a leak definition of 500 ppm and a monitoring frequency based on the number of connectors found to be leaking during the initial monitoring campaign.

For SOCMI, the estimated emission reductions achieved by connector monitoring and repair of leaks above 500 ppm are 230 tons of VOC per year at a cost of $2,500/ton. For petroleum refineries, the estimated emission reductions are 92 tons of VOC per year at a cost of $20,000/ ton. The cost to achieve these emission reductions is considered to be reasonable for SOCMI sources but is not reasonable for petroleum refineries. Based on these impacts and consideration of current operating practices, we concluded that BDT for connectors at SOCMI sources is monitoring using EPA Method 21 or another approved alternative method at a frequency based on the number of connectors found leaking during initial monitoring and repair of leaks above 500 ppm. We concluded that BDT for connectors at petroleum refineries is equivalent to the current 40 CFR part 60, subpart GGG requirements. Therefore, we are promulgating connector monitoring and repair standards consistent with this determination for SOCMI sources subject to 40 CFR part 60, subpart VVa that will not apply to petroleum refinery sources subject to 40 CFR part 60, subpart GGGa.
B. How did EPA develop the new compliance requirements in 40 CFR part 60, subparts VVa and GGGa?

The recordkeeping requirements in the final amendments and new standards are authorized by section 114 of the CAA. Section 114 of the CAA allows EPA to require onetime, periodic, or continuous records for the purpose of determining if the owner or operator is in compliance with the standard. The recordkeeping requirements in the final amendments are the minimum necessary for affected facilities to demonstrate compliance and for EPA to enforce the rule. The recordkeeping requirements in the new standards include a few requirements in addition to the requirements in the final amendments. Most of these requirements are associated with new monitoring and repair requirements; other additional requirements are minimal and are necessary for EPA to enforce the rule. Further rationale for the new requirements is available below and in section IV.D of this preamble.

We have made significant changes to the proposed recordkeeping requirements as a result of the changes made to the scope and applicability of the standards. Because the final amendments to 40 CFR part 60, subparts VV and GGG include only clarifications to existing requirements, burden reducing provisions, and new compliance options, no changes or additions to the recordkeeping requirements in subpart VV or GGG are needed to document and/or enforce these amendments.

Sources subject to the new standards in 40 CFR part 60, subpart VVa are required to keep records of the same information required by 40 CFR part 60, subpart VV and certain additional information described below. Sources subject to 40 CFR part 60, subpart GGGa must comply with the requirements in subpart VVa except for the monitoring requirements applicable to connectors (and the associated recordkeeping requirements). Facilities subject to 40 CFR part 60, subparts DDD, GGG, or KKK are excluded from the requirement to comply with the recordkeeping provisions of subpart VVa because these subparts are not being amended to reference the new standards in subpart VVa.

The new recordkeeping provisions in 40 CFR part 60, subpart VVa require general identifying information for each monitoring activity required by the rule. As explained in the preamble to the proposed amendments (71 FR 65308, November 7, 2006), many facilities already record this information. This information requirement is consistent with other equipment leak standards and is needed by enforcement representatives to determine if the facility is complying with the standards. Specifically, EPA found that the results of the LDAR review demonstrated that the current requirements are not sufficient to verify that all monitoring requirements have been performed. For example, EPA enforcement initiatives have found missed monitoring (monitoring at an inappropriate interval, monitoring late, or not monitoring), understated leak rates, leaks not found or repaired, and monitoring records indicating that more equipment was monitored than physically possible given the time needed to meet EPA Method 21 requirements, among other issues. Since we cannot physically inspect every facility on the schedule required by the LDAR program, these additional records will provide safeguards that the program is being implemented as intended.

Other new recordkeeping requirements include specific information that is necessary to demonstrate compliance with the new monitoring provisions for connectors and pumps in light liquid service (weekly visual inspections for indications of dripping liquids). Records are also required to demonstrate compliance with the requirement for a calibration drift assessment at the end of each day and comparison of the results of the assessment with the most recent calibration results. We eliminated the proposed requirement to keep records of information on bypass lines because the new subpart does not include the requirement to monitor bypass lines. In addition, records of information related to the proposed initial monitoring requirement for pumps and valves
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added to a process unit are not required because this monitoring requirement was revised since proposal, making additional records unnecessary.

We have reviewed the recordkeeping requirements and believe that these are the minimum needed to ensure compliance and that the requirements do not impose excessive costs. The costs of the recordkeeping requirements for 40 CFR part 60, subpart VVa, including the time required to enter and store additional information, are included in the information collection request (ICR) (see section V.B of this preamble).
C. How did EPA develop the final amendments to 40 CFR part 60, subparts VV and GGG?

The amendments to 40 CFR part 60, subpart VV are listed in Table 1 of this preamble. Most of the technical corrections for 40 CFR part 60, subparts VV and GGG were discussed in the preamble to the proposed amendments (71 FR 65302, November 7, 2006). Other technical corrections and amendments are the result of public comments, and these are discussed in detail in the responses to the applicable comments. For each amendment that is more significant than an editorial or grammatical correction, Table 1 to this preamble includes a reference to the rule language and a reference to the location of the detailed explanation.
Table 1.Summary of Final Amendments to 40 CFR Part 60, Subpart VV and

Rationale for Clarifications, Additional Compliance Options, and Technical Corrections
Explanation or
Citation location of Amendment explanation\1\
Heading....................... ................. Revised to clarify applicability of subpart. 60.480(b)..................... ................. Revised to identify applicability to affected facilities that were constructed, reconstructed, or modified after January 5, 1981 and on or before November 7, 2006. 60.480(d)(2).................. ................. Clarified that design capacity refers to a chemical listed in 40 CFR 60.489. 60.480(d)(2)(5).............. ................. Revised reference to nonexistent 40 CFR 60.482 to refer to 40 CFR 60.4821 through 60.48210. 60.480(e)(1).................. ................. Renumbered paragraph (e)(1) as (e)(1)(i) and paragraph (e)(2) as (e)(1)(ii); changed reference to paragraph (e)(2) to (e)(1)(ii). 60.480(e)(2).................. ................. Added paragraph that allows owners or operators to comply with 40 CFR part 60, subpart VVa as an alternative to 40 CFR part 60, subpart VV.
60.481........................ 71 FR 65308, Corrected editorial column 3. errors in definition of ``Capital expenditures.'' 60.481........................ 71 FR 65307, Added new definition column 2 and for ``Closedloop section 5.4.3 of system.'' RTC.
60.481........................ 71 FR 65307, Added new definition column 2 and for ``Closedpurge section 5.4.3 of system.'' RTC.
60.481........................ Section 5.3.2 of Revised definition of RTC. ``Connector.'' 60.481........................ Added missing Revised definition of word ``the'' ``First attempt at before the word repair.'' ``atmosphere''
and removed the
word ``rapid''.
60.481........................ 71 FR 65308, Revised definition of column 3 and ``Hard piping.'' updated the
mailing address
for ASME.
60.481........................ Section IV.A.2 of Revised definition of this preamble. ``Process unit.'' 60.481........................ Section 5.9.3 of Revised definition of RTC. ``Process unit shutdown.'' 60.481........................ 71 FR 65308, Revised definition of column 1. ``Repaired.'' 60.481........................ Section 3.2.1 of Added new definition RTC. for ``Storage vessel.'' 60.481........................ 71 FR 65307, Added new definition column 3. for ``Transfer rack.'' 60.4821(e)................... Section 3.3 of Added paragraph (e) RTC. to address equipment in service less than 300 hours per year. 60.4821(f)................... 71 FR 65304, Added paragraph (f) column 3 and that allows less sections 5.6.1 frequent monitoring and 5.6.2 of RTC. of pumps and valves on batch process units that operate less than 365 days per year. 60.4821(g)................... Section IV.A.2 of Added paragraph that this preamble. clarifies inclusion of shared tanks in a process unit subject to this subpart. 60.4822(a)(1)................ 71 FR 65307, Added clarification column 1, and for pumps that begin section IV.B.1 operation in light of this preamble. liquid service after the initial startup date for the process unit.
60.4822(a)(2)................ ................. Added reference to 40 CFR 60.4821(f) as an exception to the requirement for weekly visual inspections of pumps in light liquid service. 60.4822(b)(2)................ 71 FR 65304, Added monitoring and column 2, 71 FR repair requirements 65306, column 1, if weekly visual and section inspection of pumps 5.2.2 of RTC. in light liquid service indicates liquids dripping from pump seal. 60.4822(c)(2)................ 71 FR 65307, Added examples of column 1. first attempt at repair practices for pumps in light liquid service. 60.4822(d)................... ................. Editorial correction and clarification to address renumbering of paragraphs (d)(1) through (6). 60.4822(d)(1)(ii)............ ................. Replaced first word ``Equipment'' with ``Equipped.'' 60.4822(d)(4)(i)............. ................. Renumbered paragraph (d)(4) as (d)(4)(i). 60.4822(d)(4)(ii)............ 71 FR 65304, Added monitoring and column 2, 71 FR repair requirements 65306, column 1, if weekly visual and section inspection of a pump 5.2.2 of RTC. equipped with dual mechanical seals indicates liquids dripping from pump seal.
60.4822(d)(5)(i)............. ................. Removed ``and'' from end of sentence. [[Page 64867]]
60.4822(d)(5)(iii)........... ................. Added paragraph to specify how a leak is detected. 60.4822(d)(6)................ 71 FR 65304, Revised to clarify column 2 and 71 procedure and time FR 65306, column allowed for repair 1. of leaks. 60.4822(e)................... ................. Revised to add ``s'' to the end of ``no detectable emission.'' 60.4823(a)................... Section 5.3.5 of Added reference to RTC. exemption in 40 CFR 60.4823(j). 60.4823(j)................... 71 FR 65308, Editorial column 3. clarification of section and paragraph references. 60.4825(a) and (b)........... 71 FR 65307, Rearranged paragraphs column 2 and within these two section 5.3.5 of paragraphs and made RTC. editorial corrections to provide clarity. 60.4825(b)(2)................ 71 FR 65307, Added provision that column 2, and containers part of a section 5.4.3 of closedpurge system RTC. must be covered or closed when not being filled or emptied. 60.4825(b)(3)................ Section 5.4.1 of Added provision that RTC. gases remaining in the tubing or other apparatus once the closedpurge system valve(s) and sample container valve(s) are closed are not required to be collected or captured. 60.4825(b)(4)(b)(4)(iv)(A)( Rearranged Same as current C). paragraph paragraph (b)(4) numbering and except for editorial made a few clarifications. editorial
clarifications.
60.4825(b)(4)(iv)(D)......... Section 5.4.2 of Added provision for RTC. use of a waste management unit meeting the requirements of 40 CFR 61.348(a). 60.4825(b)(4)(iv)(E)......... Section 5.4.2 of Added provision for RTC. use of a device used to burn off specification used fuel oil in accordance with 40 CFR part 279, subpart G. 60.4826(a)(1)................ Section 5.3.5 of Added reference to RTC. exemptions in 40 CFR 60.4826(d) and (e). 60.4827(a)(1)................ Corrected section Clarified current designations. paragraph (a) to specify that valves must be monitored monthly except as provided in 40 CFR 60.4827(f), (g), and (h); 40 CFR 60.4821(c) and (e); and 40 CFR 60.4831 and 2.
60.4827(a)(2)(i) and (ii).... 71 FR 65307, Added clarification column 1, and for valves that section IV.B.1 begin operation in of this preamble. light liquid service after the initial startup date for the process unit. 60.4827(c)(1)(i)............. ................. Paragraph (c)(1) redesignated as paragraph (c)(1)(i). 60.4827(c)(1)(ii)............ 71 FR 65307, Added paragraph to column 3 through allow an owner or 71 FR 65308, operator to column 1, and subdivide valves in section 5.1.2 of a process unit. RTC.
60.4828(a)(2)................ Section 5.7 of Added clarification RTC. that audio visual olfactory indications of potential leaks should be eliminated within 5 calendar days of detection. 60.4828(d)................... 71 FR 65307, Revised to require column 1. that first attempt at repair of pumps and valves in heavy liquid service, pressure relief devices in light liquid or heavy liquid service, and connectors must include best practices under 40 CFR 60.4822(c)(2) and 40 CFR 60.482 7(e).
60.4829(a)................... Section 5.9.3 of Clarified that for RTC. repair that occurs during a process unit shutdown, monitoring to verify that repair must occur within 15 days after startup of the process unit. 60.4829(f)................... Section 5.9.3 of Added new paragraph RTC. for a leaking pump or valve for which a delay in repair is allowed. 60.4831(d) and 60.4832(b)(5) ................. Added reference to new 40 CFR 60.485(h) that provides more detailed explanation for calculating the percent of valves leaking. 60.4832(a)(7)................ 71 FR 65307, Added clarification column 1, and for valves that section IV.B.1 begin operation in of this preamble. light liquid service after the initial startup date for the process unit. 60.4832(b)(7)................ ................. Added paragraph to specify that a new valve must be monitored according to 40 CFR 60.482 7(a)(2)(i) or (ii) before the provisions of 40 CFR 60.4832 can be applied to the valve.
60.484(a)..................... 71 FR 65308, Editorial correction. column 3.
60.484(b)(2).................. ................. Editorial clarification. 60.485(b)..................... ................. Revised reference to nonexistent 40 CFR 60.482 to refer to 40 CFR 60.4821 through 40 CFR 60.48210. 60.485(e)..................... 71 FR 65308...... Clarified that the requirements apply to a piece of equipment. 60.485(e)(1) and (2).......... Section 6.3 of Clarified to specify RTC. that light liquids are organic compounds. 60.485(g)(4).................. Corrected Corrected equation exponents in for the net heating equation. value of the gas being combusted in a flare.
60.485(g)(5).................. ................. Added ASTM D642099 as an alternative to EPA Method 18. 60.485(h)..................... Section 5.1.4 of Added equation and RTC. clarifications for calculating percent of valves leaking. 60.486(e)(2)(ii).............. Section 7.4 of Revised to allow an RTC. alternative to requiring a signature for the list of equipment with no detectable emissions. 60.486(e)(6).................. Section 3.3 of Added recordkeeping RTC. requirements for equipment in VOC service less than 300 hours per year. 60.487(c)(2)(i), These changes are Corrected references 60.487(c)(2)(iii), related to to specific sections 60.487(c)(2)(iv). rearranging of and other editorial paragraphs in corrections. 60.4822.
\1\ RTC refers to Standards of Performance for Equipment Leaks of VOC in the Synthetic Organic Chemicals Manufacturing Industry and Standards of Performance for Equipment Leaks of VOC in Petroleum Refineries. Background Information for Final Standards. Summary of Public Comments and Responses. See Docket ID No. EPAHQOAR20060699.
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IV. Summary of Comments and Responses

We proposed amendments to 40 CFR part 60, subpart VV and 40 CFR part 60, subpart GGG on November 7, 2006

FOR FURTHER INFORMATION CONTACT For information concerning the final amendments and new standards, contact Ms. Karen Rackley, Coatings and Chemicals Group, Sector Policies and Programs Division, Office of Air Quality Planning and Standards (E14301), Environmental Protection Agency, Research Triangle Park, North Carolina 27711; telephone number: (919) 5410634; fax number: (919) 5410246; email address:
rackley.karen@epa.gov. For information concerning compliance and enforcement of the final amendments and new standards, contact Ms. Marcia Mia, Air Compliance Branch, Compliance Assessment and Media Programs Division, Office of Compliance (MC 2223A), Environmental Protection Agency, Washington, DC 20460; telephone number: (202) 564 7042; fax number: (202) 5640050; and email address:
mia.marcia@epa.gov.