Monday
April 15, 1996
I
Part IV
Environmental
Protection Agency
40 CFR Part 68
List of Regulated Substances arid
Thresholds for Accidental Release
Prevention; Proposed Rule
16597
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Federal Register / Vol. 61, No. 73 /Monday. April 15, 1996 / Proposed Rules
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 68
[FRL-5657-7]
List of Regulated Substances and
Thresholds for Accidental Release
Prevention; Proposed Amendments
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
SUMMARY: The Environmental Protection
Agency (EPA) is proposing several
modifications to the rule listing
regulated substances and threshold
quantities under section 112(r) of the
Clean Air Act as amended. EPA is
proposing to delete the category of
Division 1.1 explosives (as listed by
DOT) from the list of regulated
substances. Regulated flammable
substances in gasoline used as fuel and
In naturally occurring hydrocarbon
mixtures prior to initial processing are
proposed for exemption from threshold
quantity determinations, and a
clarification of the provision for
threshold determination of flammable
substances in a mixture is proposed.
Modifications to the definition of
stationary source are proposed to clarify
the exemption of transportation and
storage incident to transportation and to
clarify that naturally occurring
hydrocarbon reservoirs are not
stationary sources or parts of stationary
sources. In addition, EPA is clarifying
that the Chemical Accident Prevention
Provisions do not apply to sources
located on the Outer Continental Shelf.
EPA believes these proposed changes
will better focus accident prevention
activities on stationary sources with
high hazard operations and reduce
duplication with other similar
requirements.
DATES: Comments. Comments must be
submitted on or before May 15,1996
unless a hearing is requested by April
25,1996. If a hearing is requested,
written comments must be received by
May 30, 1996.
Public Hearing. Anyone requesting a
public hearing must contact EPA no
later than April 25, 1996. If a hearing is
held, it will take place on April 30,1996
at 9:30 a.m.
ADDRESSES: Comments. Comments
should be mailed or submitted to:
Environmental Protection Agency, Air
Docket (6102). Attn: Docket No. A-96-
O8, Waterside Mall, 4'0l M St. SW,
Washington, DC 20460. Comments must
be submitted in duplicate. Comments
may be submitted on disk in
WordPerfect or Word formats. If a
public hearing is held, written
testimony should be submitted in
duplicate at the time of the hearing. .
Public Hearing. If a public hearing is
held, it will be held at Waterside Mall,
401 MSt.'SW, Washington, DC 20460,
in the Conference Center in a room to
be designated. Persons interested in
attending the hearing or wishing to
'present oral testimony should notify by
telephone Vanessa Rodriguez (see For
Further Information Contact).
Docket. The docket for this
rulemaking is A-96-O8/ This proposed
rule would amend a final rule, the
docket for which is A-91-74. The
docket may be inspected between 8:00
am and 5:30 pm, Monday through
Friday at EPA's Air Docket, Room
M1500, Waterside.Mall, 401 M St. SW,
Washington, DC 20460; telephone (202)
260-7548. A reasonable fee may be
charged for copying.
FOR FURTHER INFORMATION CONTACT:
Vanessa Rodriguez, Chemical Engineer,
Chemical Emergency Preparedness and
Prevention Office, Environmental
Protectio.n Agency, OS-120, 401 M St. '
SW, Washington, DC 20460, (202) 260-
7913. ,
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction and Background
A. Statutory Authority,
B. Background
C. Summary of Final Rule
II. Discussion of Proposed Modifications
A. Explosives .
B. Regulated Flammable Substances in
Gasoline and in Naturally Occurring._
Hydrocarbon Mixtures
C. Clarification of Threshold Determination
for Mixtures Containing Flammable
Substances
D. Definition of Stationary Source
E. Applicability to Outer Continental Shelf
III. Discussion of the Proposed Rule
IV. Required Analyses
A. E.O. 12866 . '
B. Regulatory Flexibility Act
C. Paperwork Reduction Act
D. Unfunded Mandates
I. Introduction and Background
A. Statutory Authority
This notice of proposed rulemaking
(NPRM) is being issued under sections'
112(r) and 301 of the Clean Air Act (Act)
as amended (42 U.S.C. sections 7412(r)
and 7601).
B. Background
The Clean Air Act (CAA or Act),.
section 112(r), contains requirements
related to prevention of accidental
releases. The goal of the accidental
release provisions is to prevent
accidental releases and minimize the
consequences of releases by focusing on
those chemicals and operations that
pose the greatest risk. The CAA requires
EPA to promulgate an initial list of at
least 100 substances ("regulated
substances") that, in the event of an
accidental release, are known to cause
or may be reasonably expected to cause
death, injury, or serious adverse effects
to human health and the environment.
The Act identifies 16 substances to be
included in the initial list. Factors
required to be considered in listing
substances are the severity of acute
adverse health effects associated with
accidental releases of the substance, the
likelihood of accidental releases of the
substance, and the potential magnitude
of human exposure to accidental
releases of the substance. The CAA also
requires EPA to establish a threshold
quantity for each chemical at the time
of listing. In developing these . '
thresholds, factors required to be
considered include toxicity, reactivity,
volatility, dispersibility, combustibility,
or fiammability of the substance and the
amount of the substance which is
known to cause or'can be reasonably
anticipated to cause death, injury, or
serious adverse effects in case of a
release. Stationary sources that have
more than a threshold quantity of a
regulated substance are subject to
accident prevention regulations
promulgated under CAA section
112(r)(7), including the requirement to
develop risk management plans.
EPA's final rule on the list of
substances and thresholds (59 FR 4478,
January 31, 1994) (the "List Rule")
promulgated the regulated list of
substances and thresholds that identify
sources subject to the accident
prevention rules. EPA subsequently
sought comment on a proposed accident
prevention ("risk management
program") rule in two notices and
intends to promulgate a final rule in late
Spring 1996. .(See 58 FR 54190, October
20, 1993; 60 FR 13526, March 13, 1995.)
For additional information on the
requirements of section 112(r) and
related statutory provisions, see these, "
notices. "
C, Summary of the List Rule
In the List Rule, EPA promulgated a
list that includes 77 acutely toxic
substances, 63 flammable gases and
volatile flammable liquids, and Division
1.1 high explosive substances as listed
by the United States Department of
Transportation (DOT) in 49 CFR
172.101. The final rule establishes
threshold quantities for toxic substances
ranging from 500 to 20,000 pounds. For
all listed flammable substances, the
threshold quantity is 10,000 pounds,
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while all explosive substances have a
threshold quantity of 5,000 pounds. The
rule sets forth the procedures for
determining whether a threshold
quantity of a regulated substance is'
present at a stationary source. Specific
exemptions for quantities, considered in
the threshold determination are also '
included for mixtures, articles, and
certain uses and activities. The rule also
specifies the requirements for any
petitions to the Agency requesting to,
add substances to, or delete substances .
from, the list. ' . ;
The criteria EPA considered in
selecting substances for listing include
severity of acute adverse health effects,
likelihood of release, and potential
magnitude of human exposure. EPA was
required to set threshold quantities for
each regulated substance considering its
toxicity, reactivity, volatility,
dispersibility, and flammability, as well
as amounts known or anticipated to
cause effects Of.concern.
EPA selected commercially produced
acutely toxic and volatile substances
mostly from the list of extremely
hazardous substances (EHSs) under
section 302 of the Emergency Planning
and Community Right-to-Kriow Act >
(EPCRA). EPA chose volatile substances
because they are more likely to become
airborne and.impact the public. EPA
also considered accident history
associated with a substance. One
substance, oleum, was listed because it
has a history of accidents that have
impacted the public. Because vapor
cloud explosions and blast waves from
detonations of high explosives have
caused injuries to the public and
damage to the environment, 'EPA also
included highly flammable gases and
liquids and high explosives on the list.
The American Petroleum Institute
(API), the Institute of Makers of
Explosives (1MB), and one other party
.filed petitions for judicial review of the
List Rule (American Petroleum Institute
v. EPA, No. 94-1273 (D.C. Cir.) and
consolidated cases). On March 28, 1996;
EPA.made available for public comment
under CAA section 113(g) proposed
settlement agreements with API and
IME (61 FR 13858, March 28y1996).
It. Discussion of Proposed ' '
Modifications ":
Following EPA's promulgation of
regulated substances and thresholds in
the List Rule, the petitioners mentioned
above'and other members of the
regulated community raised a number of
issues concerning the list and
thresholds. Certain provisions of the
List Rule that seemed inconsistent.with
EPA's intent expressed in the preamble
or other documents supporting the final
rule were, identified. Additional
information was also received
addressing the concerns that led to the ,,
regulation. As a-result, EPA is proposing
the following amendments to the final
rule: delisting explosives; exempting
from threshold determination regulated
flammable substances in gasoline and in
naturally occurring hydrocarbon '
mixtures prior to initial processing;
clarifying the provision for threshold
determination of Flammable substances
in mixtures to exempt mixtures that do
not have a National Fire Protection
Association (NFPA) flammability hazard
rating of 4; modifying the definition of
stationary source, to clarify the
exemption of transportation arid storage
incident to transportation and to clarify
that naturally occurring hydrocarbon
reservoirs are not stationary sources or
parts of stationary sources; and
clarifying that the chemical accident
prevention provisions do not apply to
sources located on the Outer
Continental Shelf ("OCS sources").
A, Explosives
In the final rule-(59 FR 4478, January'
31,1994), EPA included explosives
classified by DOT as Class 1, Division
1.1,and listed as, such in 49 CFR
172.101 (the'Hazardbus Materials Table)
as regulated substances with a threshold
quantity of 5,000 pounds. Division 1.1
explosives were listed because of their
potential to readily detonate, causing ,
offsite impacts. While acknowledging
that explosives are regulated by a
number of other agencies, EPA
maintained that public safety would be
enhanced if additional information
about explosives, such as hazard
assessments,jwere available to
emergency response agencies and local'
emergency planners under section
112(r). EPA's primary concern was that
there were gaps in the-existing
regulatory framework in the area of
communication with emergency
responder's and local planners because
existing regulations and programs were
not comprehensive; EPA noted that
public safety would be enhanced by-
additional coordination .between
facilities handling explosives and the
local emergency planners and
resppnders.
Subsequent to promulgation of the
List Rule, IME provided EPA with
additional information, about the extent
of the regulatory gaps discussed above,
including coordination with emergency
responders. After additional review of
other federal, state, and local laws and
regulations for explosives, as well as
industry practices for explosives
manufacturing and storage, EPA has
concluded that.current regulations and
current and contemplated industry
practices promote safety and accident
prevention in storage, handling,
transportation, and use of explosives. As
a result, these regulations and practices
adequately protect the public and the
environment from the hazards of
accidents involving explosives.
Explosives are regulated by the Bureau
of Alcohol, Tobacco and Firearms
(BATF)> the Mine Safety and Health Act
(MSHA), the Occupational Safety and
Health Act (OSHA), the Department of
Defense (DoD), the Department of
Transportation (DOT), and-state and
local agencies. BATF's American Table
of Distances (ATD) specifies distances
for explosive storage from inhabited
buildings, public highways, and »
' passenger railways; these distances are
great enough to ensure that an
accidental explosion at a site that is in
compliance with the ATD should not
produce blast waves that are hazardous
to people at distances where the public
could be affected (the hazard to which
the public could be exposed if a site
complies with.the ATD is significantly,
lower than that which-the Agency
would be protecting against with its
listing of Division 1.1 explosives at a
5,000-pound threshold). Most facilities
that manufacture or store explosives
already are required to develop
emergency response plans and to
provide local emergency responders
with copies of Material Safety Data
Sheets (MSDS^s) or lists of materials
with MSDSs, or to advise local
emergency.responders regarding the
type, quantity, and location of Division
1.1 explosives on site. ,
EPA's review of existing regulations
and current industry practices still
indicates that public safety would be
enhanced if some sites handling
explosives made additional information '
about explosives available to emergency
responders and planners. While EPA
does not believe there are many sites
that are not already coordinating wi^th
local authorities under other regulatory
and voluntary programs, public safety
would be enhanced if there were
additional coordination between the ,
remaining facilities handling explosives
and the local emergency planners and .
responders. To address the gaps EPA
identified, IME has developed suggested
safety practices that would be adopted '
in due course if EPA provides final
consent to the proposed settlement
agreement. These actions would provide
additional information and, enhance the
coordination between explosives
facilities and the emergency planners.
and responders. IME member
companies would post signs at all
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normal access routes stating, "Danger.
Never Fight Explosive Fires. Explosives
are stored on this site," and providing
an emergency phone number. Whenever
a new Division 1.1 commercial
explosives storage or manufacturing
location is established at a temporary
job site, IME member companies would
notify Local Emergency Planning
Committees and other local authorities
(e.g., fire departments and law
enforcement agencies) of the type,.
quantity, and location of explosives on
site. At Division 1.1 commercial
explosives storage or manufacturing
locations with 5,000 pounds or more of
Division 1.1 explosives (not including
temporary job sites) where preparation
of emergency response plans is not
already required, IME member
companies would prepare emergency
response plans, notify Local Emergency
Planning Committees and other local
authorities of the type, quantity, and
location of explosives on site, provide
the emergency response plans to local
emergency responders, and respond to
reasonable requests for information from
said authorities. IME member
companies also would inform their
customers of the contents of the
Settlement Agreement and the actions to
be taken. IME would respond to
reasonable requests from law
enforcement agencies and emergency
responders for information concerning
the safe storage, distribution, and use of
explosives. IME also would distribute a
letter to other non-IME commercial
explosives manufacturers, distributors,
and users informing them of the
Settlement Agreement and actions to be
taken. The Agency believes these
actions effectively close the remaining
gap in emergency planning and
response communications, while
allowing existing laws to prevail.
Therefore, EPA is proposing to delist
explosives from the list of regulated
substances under section 112(r). EPA
requests comments on whether
explosives should be delisted.
B. Regulated Flammable Substances in
Gasoline and in Naturally Occurring
Hydrocarbon Mixtures
In the threshold determination
provisions for mixtures containing
flammable regulated substances, the List
Rule provides that such mixtures are
exempt if the owner or operator can
demonstrate that the mixture does not
meet boiling point or flash point
criteria; otherwise, the entire mixture is
treated as a regulated substance unless
another exemption applies. The boiling
point and flash point are objectively
determinable and derived from the
definition of highly flammable liquids
and gases, National Fire Protection
Association (NFPA) flammability hazard
rating of 4. Although EPA did not
specifically exempt gasoline and
naturally occurring hydrocarbon
mixtures (e.g., crude oil) from threshold
determination, it did not intend the List
Rule to cover regulated flammable
substances in mixtures that do not meet
the NFPA 4 criteria. Gasoline and crude
oil are listed with NFPA flammability
ratings of 3 in Fire Hazard Properties of
Flammable Liquids, Gases, and Volatile
Solids, NFPA 325M (1991 edition). EPA
noted in Proposed List of Substances
and Threshold for Accidental Release
Prevention: Summary and Response to
Comments (1994) that it believed
gasoline does not meet the boiling point
criterion for listing. EPA also noted that
it Considered unlisted hydrocarbons that
fail to meet the NFPA 4 criteria"to
represent a lower priority for accident
prevention.
The NFPA criteria contain both the
objective elements included in EPA's
rule as well as certain judgmental
criteria. NFPA 4, as defined in the
NFPA Standard System for the
Identification of Fire Hazards of
Materials, NFPA 704 (1990 edition),
includes the following:
"Materials that will rapidly or
completely vaporize at atmospheric.
pressure and normal ambient
temperature, and which will burn
readily. This degree usually includes:
Flammable gases;
Flammable cryogenic materials;
Any liquid or gaseous material that is
liquid while under pressure and has a
flash point below 73 °F (22.8 °C) and a
boiling point below 100 °F (37.8 °C)
(i.e., Class IA flammable liquids);
Materials that ignite spontaneously in
air."
Thus, the promulgated threshold
determination provision does hot
exempt mixtures that meet the flash
point and boiling point criteria, but that
do not rapidly or completely vaporize -,
and, therefore, are not true NFPA 4
mixtures based on the full definition. In
particular, certain grades of gasoline and
some naturally occurring hydrocarbon ,
mixtures might be subject to threshold
determination under the provisions of
the final rule, based on the flash point
and boiling point criteria, even though
these mixtures do not meet the
judgmental criteria of NFPA 4.
To better reflect EPA's original intent
to exempt non-NEPA 4 mixtures and to
clarify the regulatory status of gasoline
and naturally occurring hydrocarbon
mixtures (e.g., crude oil ana" natural gas
con'densate), EPA is proposing to
provide specific exemptions from
threshold determination for regulated
flammable substances in gasoline used
as fuel for internal combustion engines
and for regulated substances in
.naturally occurring hydrocarbon
mixtures prior to initial processing in a
petroleum refining process unit or a
natural gas processing plant. Naturally
occurring hydrocarbon mixtures would
include any or any combination of the
following: condensate, crude oil, field
gas, and produced water..EPA is
proposing definitions of these
substances for inclusion in the rule and
is also proposing definitions of
petroleum refining process unit and
natural gas processing plant. EPA
believes the proposed definitions reflect
standard, widely accepted meanings of
these terms.
EPA believes gasoline and the
naturally occurring hydrocarbon
mixtures condensate and crude oil,
because they contain many non-volatile
components, have low potential for
vapor cloud explosions (the basis for
listing flammable substances under
CAA section 112(r)), even if, in some
cases, they may meet the flash point and
boiling point criteria cited in the final
rule. Produced water in naturally
occurring hydrocarbon mixtures would
likely reduce the flammability and
potential for vapor cloud explosion of
these mixtures. EPA believes field gas,
prior to initial processing, also has low
potential for vapor cloud explosions
that might have an impact on the public.
Exploration and production facilities
likely do not have many congested areas
or confined spaces; congested areas or
turbulent conditions (in'an advancing
flame front) generally are necessary for
a vapor cloud explosion to occur. On-
site processes are relatively simple, and
there are unlikely to be many ignition
sources. The American Petroleum
Institute (API) evaluated the potential
consequences of releases of naturally
occurring hydrocarbon, mixtures at oil
and gas exploration and production
facilities, as discussed in Hazard'
Assessment of Exploration and
Production Facilities Potentially Subject
to the Environmental Protection
Agency's Risk Management Program
Regulations (January 20, 1995) (see
docket), and concluded that hazard :
distances were generally very shortvfor
the types of facilities evaluated.. Finally,
EPA believes these explicit, specific,
and clear exemptions-for gasoline and
naturally occurring hydrocarbons are
useful in addition to revising the
flammable mixture provision to better
reflect NFPA 4, because they simplify
the task of applying the judgmental
criteria of NFPA 4 for these pervasive
mixtures.
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As naturally occurring hydrocarbon
mixtures undergo processing in a .
petroleum refining process unit or a
natural gas processing plant, the
potential for a vapor cloud explosion
likely increases. The processes are more
complex^ there may be significant on-
"site congestion from buildings and
equipment, flammable substance may be
stored in large quantities, and there may
be many ignition sources.. The
components of crude oil and
condensates may be separated based on
volatility/The more volatile mixtures '.
(or purified substances) resulting from
such processing may meet the criteria
for NFPA 4 and, therefore, would need
to be considered for threshold
determination'in accordance with the
provisions for threshold determination
of regulated flammable substances in
mixtures, as discussed in the next
section of this preamble. Similarly,
before gasoline is finally formulated into
a fuel' for internal combustion engines, .
during processing in a refinery, it may
meet the criteria for NFPA 4 arid,
, therefore, would need to be .considered'
for threshold determination in
accordance with the provisions for
threshold determination of regulated
flammable substances in mixtures.
EPA requests comments on the
proposed exemption from threshold
determination for gasoline used as fuel.
for internal combustion engines and
specifically requests comments on .
whether the qualifying phrase, "used as
fuel for internal combustion engines," is
a necessary part of the exemption. EPA
also requests corriments on the proposed
exemption for regulated substances in
naturally occurring hydrocarbon
mixtures prior to initial processing and
on the proposed definitions related to
the exemption for naturally occurring
hydrocarbon mixtures.
C. Clarification of Threshold
Determination of Regulated Flammable
Substances in Mixtures
In the final rule, EPA provided flash
point and boiling point criteria for
determining whether a mixture
containing a regulated flammable ,
substance is subject to threshold
determination. Although these flash
point and boiling point criteria are
associated with an NFPA rating of 4, the
NFPA rating was not specifically cited
as a criterion. As discussed in the >
preamble to the List Rule, EPA believes
that rhixtures that do not have an NFPA
rating of 4 should not be subject to
threshold determination. Based on
comments from the regulated
community, EPA now believes the flash
point and boiling point criteria,
although they are part of the criteria for
the NFPA 4 rating, are not adequate by
themselves to identify mixtures with the
NFPA 4 rating. As noted above, the '
NFPA, 4 rating applies to substances that
will rapidly or completely,vaporize at
atmospheric pressure and normal
ambient temperature or that a're readily
dispersed in air, and that will burn
.readily. Like gasoline and crude oil, - .
which have NFPA 3 ratings for
flammability, other mixtures may
contain low boiling flammable
components that would cause the ,
mixture to meet the.flash point and
boiling point criteria, but also contain
higher boiling components that would
prevent the mixture from rapidly or
completely vaporizing. To clarify.
threshold determination for mixtures,
EPA is proposing to-provide that, for
mixtures that have one percent or
greater concentration of a regulated
flammable substance, the entire weight
of the mixture shall be treated as the
regulated substance unless the owner or
operator can demonstrate that the
mixture does riot have an NFPA
flammability hazard rating of 4, as"
defined in the NFPA Standard System v
for the Identification of Fire Hazards of
Materials, NFPA 704-19'SO. EPA
requests comments on this proposed
clarification, which would be in
addition to the specific exemption
proposed for gasoline and naturally
occurring hydrocarbons.
D. Definition of Stationary Source
The List Rule defined stationary
source to exclude transportation,
including storage incident to
transportation, provided such ,
transportation is regulated under 49
GFR parts 192, 193, or 195. In /. .
addressing issues related to EPCRA,
which alsp excludes transportation in --
commerce for most purposes, EPA has
interpreted the transportation exclusion
to exempt substances being transported
in'commerce or in storage under active
shipping papers and to treat as a
"stationary item" any storage in
containers not under active shipping
papers. In the List Rule, EPA referred to
DOT pipeline regulations, under 49 CFR
parts 192, 193, and 195, and stated in
the Preamble that pipelines, transfer
stations, and other activities already
covered by DOT would be excluded.
Furthermore, EPA intended to exclude
from the definition of stationary source
all transportation and storage incident
to such transportation to be consistent
with EPCRA. EPA believes the List Rule
definition of stationary source clearly
covers transportation containers only,
when they are no longer in
. transportation in commerce and clearly
excludes pipelines as defined by DOT;
however, based on comments from the
regulated community, EPA believes
there still may be potential for overlap
and confusion regarding the jurisdiction
and regulatory responsibility of EPA
and DOT for pipelines and for
transportation containers at stationary
sources. . »
- The Agency has received questions
regarding the language in: the stationary
source definition that reifers to ,
"transportation containers no longer
under active shipping papers." Both
EPA and DOT agree this term would
generally apply to containers that are
not in transportation in commerce and
that are at the stationary source for
purposes of storage, (loading, or
unloading that is not incidental to
transportation in commerce.
"Transportation in commerce" is
defined b~y DOT pursuant to Federal
Hazardous Materials Transportation
Law (Federal HAZMAT Law, 49 U.S.C.
sections 5107-5127). As a result of
continued questions regarding the scope
of Federal HAZMAT Law arid the
applicability of the regulations issued
thereunder, DOT is currently working to
better delineate and more clearly define
the applicability of its regulations. DCn\
currently contemplates clarifying its
jurisdiction through the rulemaking .
process. As a result, there may be a
future need for EPA to further amend
the definition of stationary source to
better comport with DOT clarifications
or actions. The Agency will continue to
work closely with DOT to minimize
overlap and confusion with respect to
jurisdiction and items in transportation
and will coordinate with DOT to ensure
that consistent interpretations about "
regulations coverage are provided to the
regulated community.
EPA is proposing several amendments
to the definition of stationary source'to
reflect more clearly EPA's intent. First,
EPA is proposing to modify the
; definition pf stationary source to clarify
that exempt transportation shall
include, but not be limited to,
transportation activities subject to .
regulation or oversight under 49 CFR
parts 192, 193, or 195, as well as
transportation subject to natural gas or
hazardous liquid programs for which a
stat;e has in effect a certification under"
49 U.S.C. section 60105. DOT .
established safety standards for pipeline
facilities used in the transportation of
natural gas by pipeline in 49 CFR part
192, for liquefied natural gas facilities in
; 49 CFR part 193, arid for pipeline
, facilities used in the transportation of
hazardous liquids by pipeline in 49 CFR'
part 195. State programs with
certifications under 49 U.S.C. section
60105 are comparable to the DOT .
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requirements and thus ensure public
safety.
In addition, EPA is proposing to
modify the definition of stationary
source to clarify that naturally occurring
hydrocarbon reservoirs are not
stationary sources or parts of stationary
sources. This interpretation is consistent
with EPA's policy under EPCRA. API
concluded in the Hazard Assessment of
Exploration and Production Facilities
Potentially Subject to the Environmental
Protection Agency's Risk Management
Program Regulations Qanuary 20, 1995)
that the flow of hydrocarbons from
reservoirs would not contribute to the
magnitude of a catastrophic release
scenario. This conclusion was based on
consequence analysis of a range of fire
and explosion events, assuming a range
of handling conditions, types of
equipment, and material compositions
typical of exploration and production
facilities. Finally, EPA is clarifying that
the exemption for transportation
containers in transportation in
commerce or storage incident to such
transportation is not limited to
pipelines. EPA requests comments on
these proposed revisions to the
stationary source definition.
E Applicability to Outer Continental
Shelf
EPA is proposing an applicability
exception for sources on the outer
continental shelf (DCS sources). Such
an exception is consistent with CAA
section 328, which precludes the
applicability of EPA CAA rules to such
sources when such rules are not related '
to attaining or maintaining ambient air
quality standards or to the "prevention
of significant deterioration" provisions
of the CAA.
HI. Summary of Proposed Revisions to
the Rule
EPA is proposing to amend several
sections of part 68 of title 40 of the Code
of Federal Regulations.
In §68.3, the definition of stationary
source would be revised. The revised
definition Would specifically state that
naturally occurring hydrocarbon
reservoirs are not stationary sources or
parts of stationary sources. The
definition would state that exempt
transportation shall include, but not be
limited to, transportation activities
subject to regulation or oversight under
49 CFR parts 192. 193, or 195, as well
as transportation subject to natural gas
or hazardous liquid programs for which
a state has in effect a certification under
49 U.S.C. section 60105.
Several new definitions are proposed
for § 68.3, for condensate, crude oil,
field gas, natural gas processing plant.
petroleum refining process unit, and
produced water.
Section 68.10 is proposed to be
amended, to clarify that part 68 does not
apply to OCS sources.
Several revisions are proposed for '
§68.115 on threshold determination.
Section 68.115 (b) (2) is proposed to be
modified to state that the entire weight
of the mixture containing a regulated
flammable substance shall be treated as
the regulated substance unless the /
owner or operator can demonstrate that
the mixture does not have an NFPA
flammability hazard rating of 4. Another
proposed modification to §68.115(b)(2)
would exempt from threshold ,
determination regulated flammable
substances in gasoline used as fuel in
, internal combustion engines. Regulated
substances in naturally occurring
hydrocarbon mixtures (including
condensate, crude oil, field gas, and
produced water), prior to entry into a -
' natural gas processing plant or a
petroleum refining process unit, also are
proposed to be exempt from threshold
determination. Section 68.115(b)(3), on
concentrations of a regulated explosive
substance in a mixture, is proposed to' ,
be deleted, and 68.115 (b) (4),
68.115(b)(5), and 68.115(b)(6) would be
redesignated as 68.115 (b) (3),
68.115 (b) (4), and .68.115 (b) (5).
Section 68.130 is proposed to be
modified by the deletion of (a),
explosives listed by DOT as Division
1.1. Section 68.130(b) would be
redesignated as 68.130(a), and 68.130(c)
wouldbe68.130(b).
IV. Required Analyses
A. E.O. 12866
Under Executive Order 12866 (58 FR'
51735, October 4, 1993), the Agency
must judge whether the regulatory
action is "significant," and therefore
subject to OMB review and the
requirements of the Executive Order.
/The Order defines "significant
regulatory action" as one that is likely
to result in a rule that may:
(1) Have an annual effect on the
economy of $100 million or more or
adversely affect in a material way the
economy, a sector of the economy,
productivity, jobs, the environment,.-
public health or safety, or state, local, or
tribal government or communities;
(2) Create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary '
impact of entitlements, grants, user fees,
or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President's priorities, or the principles
set forth in the Executive Order.
It has been determined this proposed
.rule is not a "significant regulatory
action" under the terms of Executive
Order 12866 and therefore is not subject
to OMB review.
»
B. Regulatory Flexibility Act
. In accordance with the Regulatory
Flexibility Act of 1980, Federal agencies
must evaluate the effects of the rule on
small entities and examine alternatives
that may reduce these effects.
EPA has examined the proposed
rule's potential effects'on small entities
as required by the Regulatory Flexibility
, Act. It has determined .that this rule will
have no adverse effect on small entities
because it reduces the number of
substances that would be used to
identify stationary sources for regulation
and provides exemptions that will likely
reduce the number of stationary sources
subject to the accidental release
prevention requirements. Therefore, I
certify that today's proposed rule .will
not have a significant economic effect
on a substantial number of small
entities.
C. Paperwork Reduction Act
This proposed rule does not, include
any information collection requirements
for OMB to review under the provisions
of the Paperwork Reduction Act of 1980,
44 U.S.C. 3501 et seq.
D. Unfunded Mandates
Under section 202 of the Unfunded ,
Mandates Reform Act of 1995, signed
into law on March 22, 1995, EPA must
' prepare a statement to accompany any
rule where the estimated costs to State,
local, or tribal governments in the
aggregate, or to the private'sector, will
be $100 million or more in any one year.
Under section 205, EPA must select the
most cost-effective and least
burdensome alternative that achieves
the objective of the rule and is
consistent with statutory requirements.
Seption 203 requires EPA to establish a
plan for informing and advising any
small governments that may be
significantly impacted by the rule.
EPA has estimated that this rule does
not include a Federal mandate that may
result in estimated costs of $100 million
or more to either State; local, or tribal
governments in the aggregate, Or to'the
private sector. .
List of Subjects in 40 CFR Part 68
Environmental protection, Chemicals,
Chemical accident prevention, Clean
Air Act, Extremely hazardous
substances, Incorporation by reference,
Intergovernmental relations, Hazardous
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Federal Register / Vol. 61, 'No. 73 /Monday, April 15, 1996 /Proposed Rules
16603
substances, Reporting and,,
Recordketeping requirements.
Dated: AprilS, 1996.
Carol M. Browner, . . >'
Administrator. ' - . ,
For the reasons set out in the
preamble, Title 40, Chapter I,
Subchapter C, Part 68 of the Code of
Federal Regulations is proposed to be
amended as follows:
PART 68CHEMICAL ACCIDENT
PREVENTION PROVISIONS
1. The authority citation for part 68
continues to read as follows:
Authority: 42 U.S.C. sections 7412(r), 7601.
. Subpart AGeneral
2. Section 68.3 is proposed to be
amended by adding the following ' ''
definitions in alphabetical order and
revising the definition of stationary
source to read as follows:
§68.3 Definitions.
* *_*-* * . , .
. Condensate means hydrocarbon
liquid separated from natural gas that
condenses due to changes in
temperature, pressure,-or both, and
remains liquid at standard conditions.
Crude oil means any naturally
occurring, unrefined petroleum liquid.
* . * * * *
Field gas means gas"extracted from a
production well before, the gas enters a
natural gas processing plant.
Natural gas processing plant (gas
plant) means any processing site
engaged in the extraction' of natural gas
liquids from field gas, fractionation of
mixed,natural gas liquids to natural gas
products, or both. A separator,
dehydration unit, heater treater,
sweetening unit, compressor, or similar
equipment shall not be considered a
"processing site" unless such
equipment is physically, located within
a natural gas processing plant (gas plant)
site.
Petroleum refining process unit means
a process unit used in an establishment
' primarily engaged in petroleum refining
as defined in the Standard Industrial
Classification code for petroleum
refining (2911) and used for the
following: (1) Producing transportation
fuels (such as gasoline, diesel fuels, and
jet fuels), heating fuels (such as
kerosene, fuel gas distillate, and fuel
oils), or lubricants; (2) Separating
petroleum; or (3) Separating, cracking,
reacting, or reforming intermediate
petroleum streams.'
Examples of such units, include, but
are not limited to, petroleum-based .
solvent units, alkylation units, catalytic
hydrotreating, catalytic hydrorefining,
catalytic'hydrocracking, catalytic
reforming, catalytic crackirig, crude '
distillation, lube oil processing,
hydrogen production, isomef ization,
polymerization, thermal processes, and
blending, sweetening, and treating
processes. Petroleum refining process
units include sulfur plants.
*.*.** * .
Produced water means water
extracted from the earth from an oil or
natural gas production well, or that is
separated from oil or natural gas after
extraction. ,
*' * *'**'
Stationary source means any
'buildings, structures, equipment,
installations, or substance emitting
stationary activities which belong to the
same industrial group, which are
located on one or more contiguous
properties, which are under the control
' of the same person (or persons under
common control), and from which an
accidental release may occur. A
stationary source includes
transportation containers that are, no
longer under active shipping papers and
transportation containers that are
connected to equipment at the
stationary source for the purposes ofs
temporary storage, loading, or
unloading. A stationary source'does not
include naturally occurring
hydrocarbon reservoirs. The term
stationary source does not apply to
' transportation, including storage
incident to transportation, of any
regulated substance,or any other
extremely hazardous substance .under
the provisions of this part.
Transportation includes, but is not
limited to, transportation subject to
oversight- or regulation under 49 CFR
parts 192, 193, or 195, or a state natural
gas or hazardous liquid program for
which the state has in effect a
certification to DOT under 49 U.S.C,
section 60105. Properties shall not be
considered contiguous solely because of
a railr'oad or gas pipeline right-of-way.
3. Section 68.10, as proposed at 60 FR
13543, is further amended by adding a
paragraph (e) to read as follows:
§68.10 Applicability. '
* * * * *
(e) The provisions of this part shall
not apply to an Outer Continental Shelf
("DCS") source, as defined in 40 CFR
55.2. '
Subpart CRegulated Substances for
Accidental Release Prevention
4. Section 68.115 is proposed to be
amended by revising paragraph (b)
introductory text and paragraph (b)(2);
removing paragraph (b) (3); and by
redesignating paragraphs (b)(4) as (b)(3),
' (b) (5) as (b) (4), and (b) (6) as (b) (5) to
read as follows:
§68.115 Threshold determination.
***,**
(b) For the purposes of determining
whether more than a threshold quantity
, of a regulated substance is present at the
stationary source, the following
, exemptions apply:
*'****
(2) Concentrations of a regulated
flammable substance in a mixture.
(i) General provision. If a regulated
substance is present in a mixture and
the concentration of the substance is
below one percent by weight of the
mixture, the mixture need not be
considered when determining whether
more than a threshold quantity of the
regulated substance is present at the
stationary source. Except as provided in
paragraph (b) (2) (ii) and (iii) of this
section, if the concentration of the
substance is one percent or greater by
weight of the mixture, then, for
purposes of determining whether a
threshold quantity is present at the
stationary source, .the entire weight of
the mixture shall be treated as the
regulated substance unless the owner or
operator can demonstrate that the '
mixture itself does not have a National
Fire Protection Association flammability
hazard rating of 4. The demonstration
shall be in accordance with the
definition of flammability hazard rating
4 in the NFPA 704, Standard System for
the Identification of the Fire Hazards of
Materials, National Fire Protection
Association, Quincy, MA, 1990.
Available from.the National Fire '
Protection Association, 1 Batterymarch
Park, Quincy, MA,02269-9101'. This
incorporation by reference was
approved by the Director of the Federal
Register in accordance with 5 U.S.C.
552(a) and 1 CFR part 51. Copies may
be inspected at the Environmental
Protection Agency Air Docket (6102),
Attri: Docket No. A-96-08, Waterside
Mall, 401 M. St. SW., Washington D.C.;
or at the Office of Federal Register at
800 North Capitol St., NW, Suite 700,
Washington, D.C. (Note: this document
will only be available for inspection at
the Federal Register after this action
becomes a final rule.) Boiling point and
flash point shall be defined and
determined in accordance with NFPA
321, Standard on the Basic
Classification of Flammable and
Combustible Liquids, National Fire
Protection Association, Quincy, MA,
1991. Available from the National Fire'
Protection Association, 1 Batterymarch
' Park, Quincy, MA 02269-9101. This
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16604
Federal Register / Vol. 61, No. 73 / Monday, April 15, 1996 / Proposed Rules
incorporation by reference was
approved by the Director of the Federal
Register in accordance with 5 U.S.C.
552(a) and 1 CFR part 51. Copies may
be inspected at the Environmental
Protection Agency Air Docket (6102),
Attn: Docket No. A-96-08, Waterside
Mall, 401 M. St. SW., Washington D.C.;
or at the Office of Federal Register at
800 North Capitol St., NW, Suite 700,
Washington, D.C. (Note: this document
will only be available for inspection at
the Federal Register after this action
becomes a final rule.) The owner or
operator shall document the National
Fire Protection Association flammability
hazard rating.
(ii) Gasoline. Regulated substances in
gasoline,, when in distribution or related
storage for use as fuel for internal
combustion engines, need not be
considered when determining whether
more than a threshold quantity is
present at a 'stationary source.
(iii) Naturally occurring hydrocarbon
mixtures. Prior to entry into a natural
gas processing plant or a petroleum
refining process unit, regulated
substances in naturally occurring
hydrocarbon mixtures need not be
considered when determining whether
more than a threshold quantity is
present at a stationary .source. Naturally
occurring hydrocarbon mixtures include
any combination of the following:
condensate, crude oil, field gas,,and
produced water, each as defined in
§68.3 of this part.
§68.13Q [Amended]
5. Section 68.130 is proposed to be
amended by removing paragraph (a) and
redesigriating paragraph (b) as (a), and
paragraph (c) as (b). The tables to the
section remain unchanged.
[FR Doc. 96-9095 Filed 4-12-96; 8:45 am]
BILLING ,COD!= 6560r-50-P
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