99-31542. Approval and Promulgation of Air Quality Implementation Plans; Allegheny County Portion of the Commonwealth of Pennsylvania's Operating Permits Program, and Federally Enforceable State Operating Permit Program  

  • [Federal Register Volume 64, Number 233 (Monday, December 6, 1999)]
    [Proposed Rules]
    [Pages 68066-68071]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-31542]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Parts 52 and 70
    
    [SIPTRAX No. PA138; FRL-6500-8]
    
    
    Approval and Promulgation of Air Quality Implementation Plans; 
    Allegheny County Portion of the Commonwealth of Pennsylvania's 
    Operating Permits Program, and Federally Enforceable State Operating 
    Permit Program
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed rule.
    
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    SUMMARY: EPA proposes three actions. First, EPA proposes approval of a 
    partial Operating Permit Program under the Clean Air Act (the Act), for 
    the purpose of allowing the Allegheny County (Pennsylvania) Health 
    Department (ACHD) to issue operating permits to all major stationary 
    sources in its jurisdiction. Second, EPA proposes approval of a State 
    Implementation Plan (SIP) revision submitted by the Commonwealth of 
    Pennsylvania for ACHD. This revision establishes a Federally 
    Enforceable State Operating Permit (FESOP) Program and gives ACHD the 
    authority to create federally enforceable installation and operating 
    permit conditions for regulated pollutants and limits on potential to 
    emit (PTE) for hazardous air pollutants (HAPs) for the purpose of 
    allowing sources to avoid major source applicable requirements. Third, 
    EPA proposes approval of the mechanism for ACHD to receive delegation 
    of Maximum Achievable Control Technology (MACT) Standards for major 
    sources subject to operating permit program requirements.
    
    DATES: Written comments must be received on or before January 5, 2000.
    
    ADDRESSES: Written comments may be mailed to Kathleen Henry, Chief, 
    Permitting and Technical Assessment Branch, Mailcode 3AP11, U.S. 
    Environmental Protection Agency, Region III, 1650 Arch Street, 
    Philadelphia, Pennsylvania 19103. Copies of the documents relevant to 
    this action are available for public inspection during normal business 
    hours at the Air Protection Division, U.S. Environmental Protection 
    Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103 
    and Allegheny County Health Department Bureau of Environmental Quality, 
    Division of Air Quality, 301 39th Street, Pittsburgh, Pennsylvania 
    15201.
    
    FOR FURTHER INFORMATION CONTACT: MaryBeth Bray, (215) 814-2632.
    
    SUPPLEMENTARY INFORMATION: On November 5, 1998 the Commonwealth of 
    Pennsylvania submitted a revision to its SIP on behalf of the ACHD to 
    establish two permitting programs; the FESOP program pursuant to part 
    52 of Title 40 of the Code of Federal Regulations (CFR), and the Title 
    V Operating Permit Program pursuant to 40 CFR part 70. The submittal 
    also included a request for delegation of MACT standards for HAPs from 
    section 112 of the Act. EPA is proposing approval of Pennsylvania's 
    request for two permitting programs for the ACHD as well as the 
    mechanism for the ACHD to receive delegation of section 112 standards.
    
    Submittal Description
    
        The ACHD November 5, 1999 submittal contained numerous revisions to 
    the SIP, including a recodification of the regulations in general, 
    revision to major and minor New Source Review and Prevention of 
    Significant Deterioration programs, as well as requests for approval or 
    delegation of programs under 40 CFR parts 52, 63, and 70. Today's 
    rulemaking action only involves approval of the FESOP and part 70 
    permitting programs, and approval of the mechanism for delegation of 
    programs under section 112 of the Act.
        EPA is proposing several significant changes and additions to the 
    ACHD's existing SIP-approved installation (preconstruction) and 
    operating permit programs. One purpose of these proposed SIP revisions 
    is to make all of the ACHD's SIP-approved permit programs consistent 
    with one another and with the Clean Air Act. Another important purpose 
    of the proposed SIP revision is to allow the ACHD, upon approval, to 
    limit sources' PTE for the purpose of exempting certain sources from 
    Title V and other major source requirements of the Act.
        ACHD submitted the permitting programs through the Commonwealth of 
    Pennsylvania, requesting the authority to issue operating permits 
    (Title V and FESOP) to sources of air pollutants within its 
    jurisdiction. The ACHD adopted the necessary regulations on October 5, 
    1995 and submitted a program approval request to the Commonwealth of 
    Pennsylvania. On November 5, 1998, the Commonwealth of Pennsylvania 
    submitted the program on behalf of ACHD to EPA for review. In addition, 
    a three-way implementation agreement (IA) between the ACHD, 
    Pennsylvania Department of Environmental Protection (PADEP), and the 
    EPA was submitted on August 9, 1999 to clarify certain procedural 
    issues
    
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    not included in the November 5, 1998 submittal. EPA found the submittal 
    to be administratively complete pursuant to 40 CFR 70.4(e)(1) on 
    February 2, 1999. EPA has concluded that the part 70 program and the 
    FESOP program meet all the necessary requirements of part 70 and part 
    52, respectively, and is proposing to grant full approval to both of 
    these programs. EPA has also concluded that the ACHD's program is 
    adequate for approving the mechanism needed to delegate section 112 
    programs. For more detailed information on the analysis of the ACHD's 
    submission, please refer to the technical support document included in 
    the docket at the address noted above.
    
    Part 70 Background
    
        Major sources of air pollutants are required under Title V of the 
    1990 Clean Air Act Amendments (sections 501-507 of the Act) to obtain 
    operating permits. EPA has promulgated rules which define the minimum 
    elements of an approvable state or local operating permits program and 
    the corresponding standards and procedures by which the EPA will 
    approve, oversee, and withdraw approval of operating permits programs. 
    See 57 FR 32250 (July 21, 1992). These rules are codified at 40 CFR 
    part 70. Title V requires state or local agencies to develop, and 
    submit to EPA, programs for issuing these operating permits to all 
    major stationary sources and to certain other sources. The EPA's 
    program review occurs pursuant to section 502 of the Act and the part 
    70 regulations, which together outline criteria for approval or 
    disapproval.
        EPA approved the Commonwealth of Pennsylvania's program, which 
    applied statewide, on August 29, 1996. As of that date, all major 
    stationary sources in Pennsylvania subject to Title V permitting 
    requirements were required to meet a one-year schedule for submitting a 
    Title V permit application. Today's proposed rulemaking action 
    addresses a request by Pennsylvania on behalf of the ACHD for approval 
    of a partial program under 40 CFR 70.4. This proposed rulemaking action 
    would allow the ACHD to carry out a Title V permitting program within 
    its jurisdiction. Approval of this request will not change the 
    obligation for sources located anywhere in Pennsylvania to meet the 
    initial Title V application deadlines.
    
    Discussion of Part 70 Submittal
    
        The ACHD's Title V permitting regulations include Article XXI 
    Chapters 2102, 2103, 2104, and 2109 as well as definitions in section 
    2101.20. EPA has determined that these regulations fully meet the 
    requirements of 40 CFR 70.2 and 70.3 with respect to applicability; 
    Secs. 70.4, 70.5, and 70.6 with respect to permit content; Sec. 70.5 
    with respect to complete application forms and criteria which define 
    insignificant activities; Sec. 70.7 with respect to public 
    participation and minor permit modifications; and Sec. 70.11 with 
    respect to requirements for enforcement authority. The technical 
    support document contains a detailed analysis of the ACHD's program and 
    describes the manner in which it meets all the operating permit program 
    requirements of 40 CFR part 70. However, several issues were identified 
    by EPA during its review of the ACHD's Title V operating permit program 
    which warrant a more detailed discussion and analysis. These issues are 
    outlined below. A discussion on fee adequacy is also included in this 
    section.
    
    1. Legal Opinion
    
        The legal opinion did not address the time frame required for 
    petitions for judicial review and the judicial review requirements for 
    failure to issue minor permits. The discussion below shows how the 
    ACHD's program meets these requirements.
        a. Time frame for judicial review: Although the Title V regulations 
    do not specify the time frame for filing a petition for judicial 
    review, the ACHD is generally subject to ACHD Article XI, Hearings and 
    Appeals. In order to obtain judicial review, section 1104(a) requires 
    that an Appellant must first file a notice of Appeal to the Director of 
    the ACHD and go through an administrative hearing process. The Notice 
    of Appeal must be filed no later then 10 days after written notice or 
    issuance of the action by which the Appellant is aggrieved. This meets 
    the 90 day (or shorter time period) requirement for initiating judicial 
    review.
        b. Judicial review for failure to act on minor permits: The ACHD's 
    program does not address judicial review for failure to issue a minor 
    permit modification as a separate appealable action. Section 
    2103.14(c)(8) clearly requires final action within 60 days for any 
    proposed minor permit modification. Section 2103.11(f) states that the 
    Department's failure to take final action (on any permit application 
    including modifications) is appealable and the Court of Common Pleas 
    may require action on the application without further delay. Therefore, 
    the authority exists to compel action on minor permit modifications.
    
    2. Transition Plan
    
        The transition plan included in section 2103.01 of the ACHD's 
    regulations specified deadlines for permit application submittal and 
    permit issuance. These dates have passed. Nonetheless, EPA previously 
    approved Pennsylvania's Title V program on August 29, 1996 (see 61 FR 
    39598) which established deadlines for permit applications that applied 
    state-wide. The ACHD's request to have a partial program approval does 
    not affect, or change in any way, the dates established in the 
    Commonwealth's approved program.
    
    3. Insignificant Emission Units (IEUs)
    
        Under Part 70, EPA may approve as part of a state program a list of 
    insignificant activities and emission levels which need not be included 
    in permit applications. The ACHD has not requested EPA approval of such 
    a list of insignificant activities or emission levels. However, the 
    ACHD's program provides for certain exemptions from the requirement to 
    obtain a permit that should not be confused with IEUs. These exemptions 
    include activities that have been historically exempt from any 
    permitting requirements. For any activity that the ACHD treats as an 
    IEU, a case-by-case determination must be made. Section 2103.10(b)(12) 
    incorporates by reference (IBRs) 25 PA Code section 127.14(a)(8) and 
    (9), and (d) as well as any future changes to these sections. 
    Paragraphs 127.14(a)(8) and (9) allow PADEP to determine if an emission 
    unit is of minor significance on a case-by-case basis. Paragraph 
    127.14(d) states that, in the future, PADEP may establish a list of 
    sources and physical changes that are of minor significance. Further, 
    the paragraph explains that public notice and a 30-day comment period 
    would be provided prior to adoption of the list. If EPA approves the 
    list as a revision to PADEP's part 70 program, then these units would 
    be considered insignificant emission units in the Commonwealth and the 
    County.
    
    4. EPA 45-Day Review Period
    
        EPA is afforded a 45-day period to review proposed permits and 
    permit modifications for conformity with the Act and part 70 
    requirements. Section 2103.21(c)(3) does not ensure that EPA will have 
    the opportunity for a 45 day period of pre-issuance review of permits 
    that are revised as a result of the public and affected state's 
    comments. Pursuant to sections 2103.21(c) and (e), the comment periods 
    for EPA and the public and affected state review
    
    [[Page 68068]]
    
    comment periods begin simultaneously. Because the public and affected 
    state comment period is only 30 days, it is theoretically possible for 
    the ACHD to modify and issue the proposed permit or permit modification 
    on the basis of comments received. Thus EPA would not have an 
    opportunity to review the permit (which was revised on the basis of 
    comments received) for 45 days prior to its issuance.
        Section 2103.21(e) provides that permits will be resubmitted to EPA 
    if any material substantive changes have been made as a result of 
    comments received by the ACHD, but does not guarantee EPA a 45-day 
    review. Provisions defining material substantive changes are included 
    in the Implementation Agreement (IA) to clarify the criteria used to 
    determine which final permits must be provided to EPA for post-issuance 
    review. Further, the IA provides that EPA shall have 45-days from the 
    receipt of the notice of material substantive changes to object to the 
    permit. If a permit has been issued prior to the receipt of an EPA 
    objection, the IA states that the ACHD will revoke the permit within 20 
    days.
    
    5. Off Permit Changes
    
        The ACHD's use of the term ``Off Permit Change'' differs from EPA's 
    intended use. The ACHD's program limits these changes to de minimis 
    levels in section 2103.14. De minimis changes are covered under 
    operational flexibility changes and are not considered off-permit 
    changes. As written, the ACHD's program does not allow for off permit 
    changes. Furthermore, incorporation of provisions to make off permit 
    changes is optional. (40 CFR 70.4(b)(14))
    
    6. Absence of Part 70 Emergency Defense Provisions
    
        The ACHD has incorporated most of the record keeping and reporting 
    requirements required under part 70 for an emergency to be considered 
    an affirmative defense. However consistent with Pennsylvania's program, 
    the ACHD program does not allow for an emergency to be considered an 
    affirmative defense. EPA clarified, in its August 31, 1995, 
    supplemental part 70 document, that ``the part 70 rule does not require 
    the States to adopt the emergency defense. A State may include such a 
    defense in its part 70 program to the extent it finds appropriate, 
    although it may not adopt an emergency defense less stringent than that 
    set forth at 40 CFR 70.6(g).'' (60 FR 45530--45559). Thus, since the 
    ACHD's adoption of emergency defense provisions under part 70 is 
    discretionary, it is not inconsistent with Sec. 70.6(g).
    
    7. Definition of Affected Unit
    
        The definition of affected unit may seem less inclusive than the 
    definition in 40 CFR 72.2 because ACHD's definition is limited to 
    fossil fuel-fired sources. At this time, only sources which run on 
    fossil fuels are included under the Title IV acid rain requirements. 
    Therefore, the definition is essentially equivalent.
    
    8. Title V Permit Fee Demonstration
    
        Section 502(b)(3) of the Act requires that each permitting 
    authority collect fees sufficient to cover all reasonable direct and 
    indirect costs required to develop and administer its Title V operating 
    permits program. Each Title V program submittal must contain either a 
    detailed demonstration of fee adequacy or a demonstration that 
    aggregate fees collected from Title V sources meet or exceed $25 per 
    ton of emission per year (adjusted from 1989 by the Consumer Price 
    Index (CPI)). The $25 per ton amount is presumed, for program approval, 
    to be sufficient to cover all reasonable program costs and is thus 
    referred to as the ``presumptive minimum'' (Sec. 70.9(b)(2)(i)).
        PADEP's approved fee schedule, under section 127.705 of the their 
    regulations, requires all Title V facilities in the Commonwealth to pay 
    an annual Title V emission fee of $37 per ton for each ton of a 
    regulated pollutant actually emitted from the facility. This amount 
    exceeds the $25 per ton presumptive minimum. Section 127.705 also 
    includes a provision that ties the amount of the fee to the CPI as 
    required by 40 CFR 70.9(b)(2)(iv). The $37 per ton amount was derived 
    by dividing the total annual estimated Title V operating permit program 
    cost by the total annual number of billable tons of emissions. PADEP 
    used actual operating hours and production rates, and considered in-
    place control equipment and the types of materials processed, stored, 
    or combusted in calculating the total actual billable tons figure. EPA 
    determined, in its approval of PADEP's Title V program, that these fees 
    will result in collection and retention of revenues sufficient to cover 
    the Title V operating permit program costs statewide. ACHD's fee 
    requirements as outlined in section 2103.41 are consistent with PADEP's 
    regulations and are therefore consistent with EPA's prior approval of 
    the statewide fee demonstration. Furthermore, 25 PA Code 127.706 states 
    that PADEP may provide financial assistance to the ACHD on an annual 
    basis as necessary to assist implementation of the Title V program.
    
    FESOP Program Background
    
        Major stationary sources in Allegheny County wishing to avoid the 
    requirement to apply for and receive a Title V permit must obtain a 
    FESOP. Major sources are those sources whose emissions of air 
    pollutants exceed threshold emissions levels specified in various 
    portions of the Act. Thus, a source that has maintained actual 
    emissions at levels below the major source threshold could still be 
    subject to major source requirements if it has the potential to emit 
    major amounts of air pollutants. In situations where unrestricted 
    operation of a source would result in a PTE above major source levels, 
    a source may legally avoid program requirements by accepting federally 
    enforceable permit conditions which limit emissions to levels below the 
    applicable major source thresholds. As a result, the source becomes 
    what is commonly referred to as a ``synthetic minor'' source. Federally 
    enforceable permit conditions, if violated, are subject to enforcement 
    by EPA and by citizens in addition to the state or local agency.
        On June 28, 1989, EPA published guidance on the basic requirements 
    for EPA approval of (non-Title V) FESOP programs. See 54 FR 27274. 
    Permits issued pursuant to such programs may be used to establish 
    federally enforceable limits on a source's potential emissions to 
    create ``synthetic minor'' sources. In short, the criteria require 
    state programs to:
        (a) be approved into the SIP,
        (b) impose legal obligations to conform to the permit limitations,
        (c) provide for limits that are enforceable as a practical matter,
        (d) issue permits through a process that provides for review and an 
    opportunity for comment by the public and by EPA, and
        (e) ensure that there will be no relaxation of otherwise applicable 
    federal requirements.
        The Federal Court of Appeals for the District of Columbia Circuit 
    vacated the definition of PTE as it pertains to both the new source 
    review rules and the federal operating permit rules, 40 CFR parts 51, 
    52, and 70. See, Chemical Manufacturers Association v. EPA, No. 89-1514 
    (Sept. 15, 1995) and Clean Air Implementation Project, et al v. 
    Browner, Civ. No. 92-1303 (June 28, 1996). Therefore, EPA also 
    recognizes PTE limits established by state and local permitting 
    authorities as being enforceable if the above criteria (b) through (e) 
    are met. However, future
    
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    rulemaking action may require that PTE limits be federally enforceable.
        As part of this action, EPA is also proposing to approve the ACHD's 
    FESOP program pursuant to section 112(l) of the Act for the purpose of 
    allowing the ACHD to issue operating permits which limit source's PTE 
    hazardous air pollutants (HAPs). Section 112(l) of the Act provides the 
    underlying authority for controlling emissions of HAPs. Therefore, in 
    order to extend federal enforceability of the ACHD's FESOP to include 
    HAPs, EPA today proposes to approve the ACHD's permit program pursuant 
    to section 112(l) of the Act.
    
    Discussion of FESOP Program Submittal
    
        Subparts B and C--1 (sections 2102 and 2103.1x) of the submittal 
    include the requirements for the FESOP program. These subparts also 
    contain the ACHD's installation (or preconstruction) and operating 
    permit program. The proposed revision generally strengthens the SIP by 
    establishing a comprehensive installation and operating permit program 
    and by making this program consistent with the Title V operating permit 
    regulations codified in subpart C--2 (section 2103.2x).
        On June 28, 1989, EPA amended the definition of ``federally 
    enforceable'' to clarify that terms and conditions contained in state-
    issued operating permits are federally enforceable for purposes of 
    limiting a source's PTE, provided that the state's operating permits 
    program is approved into the SIP under section 110 of the Act as 
    meeting certain conditions, and provided that the permit conforms to 
    the requirements of the approved program. The conditions for EPA 
    approval discussed in the June 28, 1989 notice establish five criteria 
    for approving a state operating permit program. See 54 FR 27274-27286. 
    The following section describes each of the criteria for approval of a 
    state's program for the issuance of federally enforceable operating 
    permits for purposes of limiting a source's PTE and how the ACHD's SIP 
    submittal satisfies those criteria.
    
    1. The State's Operating Permit Program (i.e., the Regulations or Other 
    Administrative Framework Describing how Such Permits are Issued) Must 
    be Submitted to and Approved by EPA as a SIP Revision.
    
        The Commonwealth of Pennsylvania submitted the ACHD's revisions of 
    Article XXI to EPA for approval as a revision of its SIP on November 5, 
    1998. EPA is proposing to approve the ACHD's regulation (subparts B and 
    C.1 of Article XXI) as a program that meets the criteria for 
    establishing PTE limits. Thus, EPA will recognize a source's limits on 
    PTE for avoiding major source applicability, so long as the individual 
    installation or operating permit issued under the approved program 
    meets those same requirements.
    
    2. The SIP Revision Must Impose a Legal Obligation That Operating 
    Permit Holders Adhere to the Terms and Limitations of Such Permits (or 
    Subsequent Revisions of the Permit Made in Accordance With the Approved 
    Operating Permit Program) and Provide That Permits Which do not Conform 
    to the Operating Permit Program Requirements and the Requirements of 
    EPA's Underlying Regulations may be Deemed not ``Federally 
    Enforceable'' by EPA.
    
        Article XXI, section 2103.12.f.1 requires that all permits issued 
    (major and minor) shall include provisions that the permittee must 
    comply with at all times. Any permit noncompliance constitutes a 
    violation of Article XXI, the Pennsylvania Air Pollution Control Act, 
    and the Act, and is grounds for any and all enforcement actions. 
    Additionally, section 2103.10.c.3 makes it a violation for any person 
    to fail to comply with any term or condition of any permit.
    
    3. The State Operating Permit Program Must Require That all Emission 
    Limitations, Controls, and Other Requirements Imposed by Such Permits 
    Will be at Least as Stringent as any Applicable Limitations and 
    Requirements Contained in the SIP, or Enforceable Under the SIP, and 
    that the Program may not Issue Permits that Waive, or Make less 
    Stringent, any Limitations or Requirements Contained in or Issued 
    Pursuant to the SIP, or that are Otherwise ``Federally Enforceable'' 
    (e.g. Standards Established Under Sections 111 and 112 of the Clean Air 
    Act).
    
        Article XXI, section 2103.12.a.C states that the conditions of the 
    permit must provide for and require compliance with all applicable 
    requirements. Section 2103.12.g states that all permits shall include 
    standard emission limit requirements, and specify the origin and 
    authority for each limitation. Additionally, if an alternative emission 
    limit is provided, section 2103.12.g(2) requires that it must be 
    demonstrated to be equivalent to or more stringent than the applicable 
    limit, and it must be quantifiable, enforceable, and based on 
    replicable procedures.
    
    4. The Limitations, Controls, and Requirements of the State's Operating 
    Permits Must be Permanent, Quantifiable, and Otherwise Enforceable as a 
    Practical Matter.
    
        Article XXI, section 2103.12.g states that along with required 
    emission limits and standards, the permit must include those 
    operational requirements and limitations that assure compliance with 
    all applicable requirements at the time of permit issuance. For each 
    emission rate and standard in a permit, associated conditions will be 
    included which establish a method to determine compliance, including 
    appropriate testing, monitoring, recordkeeping, and reporting. Section 
    2103.12.h.1 establishes broad authority to require the appropriate 
    testing, monitoring, recordkeeping, and reporting. EPA understands that 
    ACHD drafts all permits to be consistent with underlying local, state, 
    and federal rules and incorporates monthly or more frequent short term 
    emission limits.
    
    5. The Permits are Issued Subject to Public Participation. This Means 
    that the state Agrees, as Part of its Program, to Provide EPA and the 
    Public with Timely Notice of the Proposal and Issuance of Such Permits, 
    and to Provide EPA, on a Timely Basis, With a Copy of Each Proposed (or 
    Draft) and Final Permit Intended to be Federally Enforceable. This 
    Process must also Provide for an Opportunity for Public Comment on the 
    Permit Applications Prior to the Issuance of the Final Permit.
    
        Article XXI, sections 2102.05.c and 2103.11.e provide for public 
    notice and participation in the issuance, modifications, and renewals 
    of permits. Section 2102.04.h specifically lists the public notice and 
    participation procedures for synthetic minor permits. Section 2103.11.h 
    incorporates by reference the public notice requirements from 25 PA 
    Code 127.424, 424 and 43. Article XXI, subchapters B and C provide 
    thorough procedures for public participation which meet the public 
    participation requirements.
        Definitions: EPA is also, in this rulemaking action, incorporating 
    by reference definitions that may be relied upon in issuing 
    installation and operating permits. Certain definitions such as 
    ``actual emissions'' and ``maximum achievable control technology 
    (MACT)'' are not consistent with and are less stringent then 40 CFR 
    51.165. In such cases where the definition is not essential to this 
    rulemaking or this FESOP SIP revision, it will be addressed in a future 
    rulemaking action.
    
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        The following definitions are consistent with the requirements for 
    a FESOP program and part 70 program approval. These definitions are 
    proposed to be incorporated into the SIP for purposes of the FESOP 
    program approval and included in the part 70 program: emissions 
    allowable under the permit, major modification, major source, maximum 
    achievable control technology, and PTE. Please refer to the technical 
    support document for a more detailed analysis.
        Limiting HAP Emissions Through FESOP: As part of this action EPA 
    proposes to approve, pursuant to section 112(l) of the Clean Air Act, 
    the ACHD's request for authority to regulate HAPs through the issuance 
    of a FESOP. This would grant the ACHD authority to issue permits which 
    limit PTE of HAPs. EPA has determined that the five approval criteria 
    for approving FESOP programs into the SIP, as specified in the June 28, 
    1989 Federal Register notice referenced above, are also appropriate for 
    evaluating and approving the programs under section 112(l). The June 
    28, 1989 document does not address HAPs because it was written prior to 
    the 1990 amendments to section 112 of the Act.
        In addition to meeting the criteria discussed above, the ACHD's 
    permit program for limiting PTE of HAPs must meet the statutory 
    criteria for approval under section 112(l)(5) of the Act. This section 
    allows EPA to approve a program only if it:
        (a) contains adequate authority to assure compliance with any 
    section 112 standard or requirement;
        (b) provides for adequate resources;
        (c) provides for an expeditious schedule for assuring compliance 
    with section 112 requirements; and
        (d) is otherwise likely to satisfy the objectives of the Act.
        The EPA plans to codify the approval criteria for programs limiting 
    the PTE of HAPs through amendments to subpart E of 40 CFR part 63, the 
    regulations promulgated to implement section 112(l) of the Act. See 58 
    FR 62262 (November 26, 1993). Given the severe timing problems posed by 
    impending deadlines set forth in MACT emission standards under section 
    112 and for issuing Title V permits, the EPA believes it is reasonable 
    to read section 112(l) to allow for approval of programs to limit PTE 
    prior to promulgation of a rule specifically addressing this issue. 
    EPA's conclusions are discussed in the technical support document and 
    will not be repeated here. EPA is proposing approval of the ACHD's 
    FESOP now so that they may begin to issue federally enforceable 
    installation and operating permits limiting PTE as soon as possible.
    Provisions Implementing Other Titles of the Act for Part 70 Sources
        1. Section 112: The guidance memorandum entitled ``Title V Program 
    Approval Criteria for section 112 Activities,'' signed by John Seitz, 
    Director of the Office of Air Quality Planning and Standards of April 
    13, 1993 discusses the legal authority needed to implement and enforce 
    section 112 requirements through the Title V permit as well as resource 
    adequacy. The ACHD's program contains this legal authority in its 
    enabling legislation (the Pennsylvania Air Pollution Control Act, Local 
    Health Administration Law, Second Class County Code, The County Local 
    Agency Law, and Article XI, Rules and Regulations of the ACHD) and in 
    regulatory provisions defining applicable requirements. The ACHD's 
    submittal also contained the Allegheny County Solicitor's Opinion 
    stating the ACHD has the legal authority to incorporate all applicable 
    requirements into its operating permits. The submittal also contained a 
    demonstration of adequate resources. Therefore the ACHD has sufficient 
    legal authority and resources to issue permits that assure compliance 
    with all section 112 requirements and to carry out all section 112 
    activities, including those required under section 112(g).
        2. Program for Straight Delegation of Section 112 Standards: The 
    requirements for approval, specified in 40 CFR 70.4(b), encompass 
    section 112(l)(5) requirements for approval of a program for delegation 
    of the provisions of 40 CFR part 63 standards promulgated by EPA as 
    they apply to part 70 sources. Section 112(l)(5) requires that the 
    permitting authority's program contain adequate authorities, adequate 
    resources for implementation, and an expeditious compliance schedule, 
    which are also requirements under part 70. Therefore, EPA is also 
    proposing to grant approval, under section 112(l)(5) and 40 CFR 63.91, 
    of the state's program for receiving delegation of section 112 
    standards that are unchanged from the federal standards as promulgated.
        3. Program for Implementing Title IV of the Act: The ACHD's program 
    IBRs 40 CFR parts 72 through 78, which contain the Federal acid rain 
    requirements. The program contains adequate authority to issue permits 
    which reflect the requirements of Title IV of the Act.
    
    Proposed Action
    
        EPA is proposing full approval of a Title V Operating Permits 
    Program for Allegheny County, as submitted by Pennsylvania on November 
    5, 1998. The ACHD has demonstrated that the program will be adequate to 
    meet the minimum elements of a partial operating permits program as 
    specified in 40 CFR part 70. The scope of the ACHD's program that EPA 
    proposes to approve in this notice would apply to all Title V 
    facilities (as defined in the approved program) within the County. EPA 
    is also proposing approval of the ACHD's FESOP program submitted on 
    November 5, 1998 as a SIP revisions under section 110 of the Act. EPA 
    has determined that the program fully meets the requirements of EPA's 
    June 28, 1989 criteria for FESOP programs. This approval recognizes 
    ACHD's FESOP program as capable of establishing federally enforceable 
    limitations on criteria pollutants and hazardous air pollutants. 
    Further, such actions will confer federal enforceability status to 
    permits issued pursuant to ACHD's part C Operating Permit Program prior 
    to EPA's final action so long as the requirements for federal 
    enforceability have been met. Finally, EPA is also proposing to grant 
    approval under section 112(l)(5) and 40 CFR 63.91 of the ACHD's 
    mechanism for receiving delegation of section 112 standards that are 
    unchanged from the Federal standards as promulgated. EPA also proposes 
    to approve, pursuant to section 112(l) of the Clean Air Act, the ACHD's 
    request for authority to regulate HAPs through the issuance of 
    federally enforceable state installation and operating permits.
        EPA is soliciting public comments on the issues discussed in this 
    document or on other relevant matters. These comments will be 
    considered before taking final action. Interested parties may 
    participate in the Federal rulemaking procedure by submitting written 
    comments to the EPA Regional office listed in the Addresses section of 
    this document.
    
    Administrative Requirements
    
    A. Executive Orders 12866
    
        The Office of Management and Budget (OMB) has exempted this 
    regulatory action from review under E.O. 12866, entitled ``Regulatory 
    Planning and Review.''
    
    B. Executive Order 13132
    
        Federalism (64 FR 43255, August 10, 1999) revokes and replaces 
    Executive Orders 12612 (Federalism) and 12875 (Enhancing the 
    Intergovernmental
    
    [[Page 68071]]
    
    Partnership). Executive Order 13132 requires EPA to develop an 
    accountable process to ensure ``meaningful and timely input by State 
    and local officials in the development of regulatory policies that have 
    federalism implications.'' ``Policies that have federalism 
    implications'' is defined in the Executive Order to include regulations 
    that have ``substantial direct effects on the States, on the 
    relationship between the national government and the States, or on the 
    distribution of power and responsibilities among the various levels of 
    government.'' Under Executive Order 13132, EPA may not issue a 
    regulation that has federalism implications, that imposes substantial 
    direct compliance costs, and that is not required by statute, unless 
    the Federal government provides the funds necessary to pay the direct 
    compliance costs incurred by State and local governments, or EPA 
    consults with State and local officials early in the process of 
    developing the proposed regulation. EPA also may not issue a regulation 
    that has federalism implications and that preempts State law unless the 
    Agency consults with State and local officials early in the process of 
    developing the proposed regulation.
        This proposed rule will not have substantial direct effects on the 
    States, on the relationship between the national government and the 
    States, or on the distribution of power and responsibilities among the 
    various levels of government, as specified in Executive Order 13132 (64 
    FR 43255, August 10, 1999), because it merely approves a state rule 
    implementing a federal standard, and does not alter the relationship or 
    the distribution of power and responsibilities established in the Clean 
    Air Act.'' Thus, the requirements of section 6 of the Executive Order 
    do not apply to this rule.
    
    C. Executive Order 13045
    
        Executive Order 13045, entitled ``Protection of Children from 
    Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23, 
    1997), applies to any rule that the EPA determines (1) is 
    ``economically significant,'' as defined under Executive Order 12866, 
    and (2) the environmental health or safety risk addressed by the rule 
    has a disproportionate effect on children. If the regulatory action 
    meets both criteria, the Agency must evaluate the environmental health 
    or safety effects of the planned rule on children and explain why the 
    planned regulation is preferable to other potentially effective and 
    reasonably feasible alternatives considered by the Agency.
        This final rule is not subject to E.O. 13045 because it does not 
    involve decisions intended to mitigate environmental health and safety 
    risks.
    
    D. Executive Order 13084
    
        Under E.O. 13084, EPA may not issue a regulation that is not 
    required by statute, that significantly affects or uniquely affects the 
    communities of Indian tribal governments, and that imposes substantial 
    direct compliance costs on those communities, unless the Federal 
    government provides the funds necessary to pay the direct compliance 
    costs incurred by the tribal governments. If the mandate is unfunded, 
    EPA must provide to the Office of Management and Budget, in a 
    separately identified section of the preamble to the rule, a 
    description of the extent of EPA's prior consultation with 
    representatives of affected tribal governments, a summary of the nature 
    of their concerns, and a statement supporting the need to issue the 
    regulation. In addition, Executive Order 13084 requires EPA to develop 
    an effective process permitting elected and other representatives of 
    Indian tribal governments ``to provide meaningful and timely input in 
    the development of regulatory policies on matters that significantly or 
    uniquely affect their communities.'' Today's rule does not 
    significantly or uniquely affect the communities of Indian tribal 
    governments. This action does not involve or impose any requirements 
    that affect Indian Tribes. Accordingly, the requirements of section 
    3(b) of E.O. 13084 do not apply to this rule.
    
    E. Regulatory Flexibility Act
    
        The Regulatory Flexibility Act (RFA) generally requires an agency 
    to conduct a regulatory flexibility analysis of any rule subject to 
    notice and comment rulemaking requirements unless the agency certifies 
    that the rule will not have a significant economic impact on a 
    substantial number of small entities. Small entities include small 
    businesses, small not-for-profit enterprises, and small governmental 
    jurisdictions. This proposed rule will not have a significant impact on 
    a substantial number of small entities because SIP approvals under 
    section 110 and subchapter I, part D of the Clean Air Act do not create 
    any new requirements but simply approve requirements that the State is 
    already imposing. Therefore, because the Federal SIP approval does not 
    create any new requirements, I certify that this action will not have a 
    significant economic impact on a substantial number of small entities. 
    Moreover, due to the nature of the Federal-State relationship under the 
    Clean Air Act, preparation of a flexibility analysis would constitute 
    Federal inquiry into the economic reasonableness of state action. The 
    Clean Air Act forbids EPA to base its actions concerning SIPs on such 
    grounds. Union Electric Co. v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 
    42 U.S.C. 7410(a)(2).
    
    F. Unfunded Mandates
    
        Under section 202 of the Unfunded Mandates Reform Act of 1995 
    (``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
    must prepare a budgetary impact statement to accompany any proposed or 
    final rule that includes a Federal mandate that may result in estimated 
    annual costs to State, local, or tribal governments in the aggregate; 
    or to private sector, of $100 million or more. Under section 205, EPA 
    must select the most cost-effective and least burdensome alternative 
    that achieves the objectives of the rule and is consistent with 
    statutory requirements. Section 203 requires EPA to establish a plan 
    for informing and advising any small governments that may be 
    significantly or uniquely impacted by the rule.
        EPA has determined that the proposed approval action for the ACHD's 
    two permitting programs does not include a Federal mandate that may 
    result in estimated annual costs of $100 million or more to either 
    State, local, or tribal governments in the aggregate, or to the private 
    sector. This Federal action approves pre-existing requirements under 
    State or local law, and imposes no new requirements. Accordingly, no 
    additional costs to State, local, or tribal governments, or to the 
    private sector, result from this action.
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Carbon monoxide, 
    Hydrocarbons, Intergovernmental relations, Nitrogen dioxide, Ozone, 
    Particulate matter, Reporting and recordkeeping requirements, Sulfur 
    oxides.
    
        Authority: 42 U.S.C. 7401 et seq.
    
        Dated: November 29, 1999.
    Thomas C. Voltaggio,
    Acting Regional Administrator, Region III.
    [FR Doc. 99-31542 Filed 12-3-99; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
12/06/1999
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
99-31542
Dates:
Written comments must be received on or before January 5, 2000.
Pages:
68066-68071 (6 pages)
Docket Numbers:
SIPTRAX No. PA138, FRL-6500-8
PDF File:
99-31542.pdf
CFR: (2)
40 CFR 52
40 CFR 70