Bulk Gasoline Terminals NSPS - Frequent Questions
This page contains answers to frequently asked questions about 40 CFR part 60, Subpart XXa -Standards of Performance for Bulk Gasoline Terminals that Commenced Construction, Modification, or Reconstruction After June 10, 2022. The final rule was published in the Federal Register on May 8, 2024, and became effective July 8, 2024.
- What constitutes a “modification” under NSPS subpart XXa?
- Are minor equipment changes considered a “modification” of an existing collection of equipment at a bulk gasoline terminal affected facility under NSPS subpart XXa, such that owners or operators would be subject to the leak detection and repair requirements for equipment leaks at 40 CFR 60.502a(j)?
- Can EPA provide examples of items they consider to be minor equipment changes that would not constitute a “modification” under NSPS subpart XXa?
- Does EPA have examples of other equipment leak regulations where minor equipment changes would not constitute a “modification?”
What constitutes a “modification” under NSPS subpart XXa?
As stated in 40 CFR 60.500a(b), a modification for purposes of NSPS subpart XXa is determined by the application of the General Provisions of 40 CFR part 60, subpart A and the definition of “modification” at 40 CFR § 60.2 in and provisions outlined at 40 CFR § 60.14. Specifically, the General Provisions at 40 CFR § 60.2 define the term “modification” as “any physical change in, or change in the method of operation of, an existing facility which increases the amount of any air pollutant (to which a standard applies) emitted into the atmosphere by that facility or which results in the emission of any air pollutant (to which a standard applies) into the atmosphere not previously emitted.”
In addition, 40 CFR 60.14(a) further elaborates that “any physical or operational change to an existing facility which results in an increase in the emission rate to the atmosphere of any pollutant to which a standard applies shall be considered a modification within the meaning of section 111 of the Act. Upon modification, an existing facility shall become an affected facility for each pollutant to which a standard applies and for which there is an increase in the emission rate to the atmosphere.” 40 CFR 60.14(a) also indicates that there are exceptions to this general definition of what constitutes a modification, including those items listed in 40 CFR 60.14(e)-(f). Of relevance are the six exceptions identified in 40 CFR 60.14(e), which shall not, by themselves, be considered modifications. These exceptions include:
(1) Maintenance, repair, and replacement which the Administrator determines to be routine for a source category, subject to the provisions of paragraph (c) of this section and § 60.15.
(2) An increase in production rate of an existing facility, if that increase can be accomplished without a capital expenditure on that facility.
(3) An increase in the hours of operation.
(4) Use of an alternative fuel or raw material if, prior to the date any standard under this part becomes applicable to that source type, as provided by § 60.1, the existing facility was designed to accommodate that alternative use. A facility shall be considered to be designed to accommodate an alternative fuel or raw material if that use could be accomplished under the facility's construction specifications as amended prior to the change. Conversion to coal required for energy considerations, as specified in section 111(a)(8) of the Act, shall not be considered a modification.
(5) The addition or use of any system or device whose primary function is the reduction of air pollutants, except when an emission control system is removed or is replaced by a system which the Administrator determines to be less environmentally beneficial.
(6) The relocation or change in ownership of an existing facility.
Thus, for purposes of NSPS subpart XXa, any physical or operational changes consistent with these exceptions are not considered to be modifications.
Are minor equipment changes considered a “modification” of an existing collection of equipment at a bulk gasoline terminal affected facility under NSPS subpart XXa, such that owners or operators would be subject to the leak detection and repair requirements for equipment leaks at 40 CFR 60.502a(j)?
Under 40 CFR 60.14(a), any physical or operational change to an existing facility which does not result in an increase in the emission rate of volatile organic compounds (VOC) to the atmosphere is not a modification. Further, minor equipment changes at bulk gasoline terminals that are considered “maintenance, repair, and replacement” that are “routine for the source category,” pursuant to 40 CFR 60.14(e)(1) are not modifications. This application of the regulations is consistent with EPA’s analysis in the 2024 final rule, which estimated that, of the approximately 1,300 bulk gasoline terminals in the U.S., only 15 facilities (or approximately 1%) would modify/reconstruct and become subject to NSPS subpart XXa in the next 5 years.
Can EPA provide examples of items they consider to be minor equipment changes that would not constitute a “modification” under NSPS subpart XXa?
Minor equipment changes for bulk gasoline terminals that are likely to not, by themselves, be considered modifications pursuant to 40 CFR 60.14(a) or 60.14(e), could include, but are not limited to: adding piping, valves, or pumps which are needed to improve emissions control or for operational flexibility that are not anticipated to increase site/facility VOC emissions; temporary installation of piping and equipment needed to perform maintenance or repair activities for storage vessels, loading racks, and vapor collection and processing systems; and/or addition of piping components needed for safety or mechanical integrity purposes (e.g., low point bleeds, sampling, pressure relief, and isolation valves).
Does EPA have examples of other equipment leak regulations where minor equipment changes would not constitute a “modification?”
NSPS subpart XXa does not include such a provision at this time. However, many of EPA’s equipment leak NSPS, such as 40 CFR part 60, subparts GGG, GGGa, VV, VVa, and VVb contain provisions that provide that the “Addition or replacement of equipment for the purpose of process improvement which is accomplished without a capital expenditure shall not by itself be considered a modification under this subpart.” See 40 CFR 60.480b(c) (emphasis added). See also 40 CFR 60.480(c), 40 CFR 60.480a(c), 40 CFR 60.590(c), and 40 CFR 60.590a(c)).
Additionally, these equipment leak NSPS also contain or cross-reference an additional definition for “capital expenditure.” See 40 CFR 60.481b of NSPS subpart VVb for an example of using a “capital expenditure” test to determine modifications.