98-2615. Approval and Promulgation of Air Quality Implementation Plans; Approval Under Section 112(l) of the Clean Air Act; West Virginia; Revisions to Minor New Source Review and Addition of Minor Operating Permit Programs  

  • [Federal Register Volume 63, Number 22 (Tuesday, February 3, 1998)]
    [Proposed Rules]
    [Pages 5484-5489]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-2615]
    
    
    =======================================================================
    -----------------------------------------------------------------------
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 52
    
    [WV026-6004; FRL-5957-7]
    
    
    Approval and Promulgation of Air Quality Implementation Plans; 
    Approval Under Section 112(l) of the Clean Air Act; West Virginia; 
    Revisions to Minor New Source Review and Addition of Minor Operating 
    Permit Programs
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: EPA is proposing to approve in part and disapprove in part a 
    State Implementation Plan (SIP) revision submitted by the State of West 
    Virginia. This SIP revision changes portions of West Virginia's minor 
    new source review permit program and establishes new provisions for 
    permitting existing stationary sources. This action proposes to 
    disapprove a new exemption from minor new source review for sources 
    which have been issued permits pursuant to the State's operating 
    permits program developed pursuant to Title V of the Clean Air Act 
    (``the Act''). This action also proposes to disapprove the provisions 
    governing the issuance of temporary construction and modification 
    permits. This action proposes to approve all other provisions of West 
    Virginia's minor new source review and existing stationary source 
    operating permit program. The intended effect of this action is to 
    propose approval of those State provisions which meet the requirements 
    of the Clean Air Act, and disapprove those State provisions which do 
    not. This action is being taken under section 110 of the Clean Air Act. 
    EPA is also proposing approval of West Virginia's minor new source 
    review and existing stationary source operating permit program pursuant 
    to Section 110 of the Act for the purpose of creating federally 
    enforceable permit conditions for sources of criteria air pollutants. 
    EPA is also proposing approval of West Virginia's minor new source 
    review and existing stationary source operating permit program under 
    section 112(l) of the Clean Air Act in order to extend the Federal 
    enforceability of State permits to include hazardous air pollutants 
    (HAPs).
    
    DATES: Comments must be received on or before March 5, 1998.
    
    ADDRESSES: Comments may be mailed to Kathleen Henry, Chief, Permit 
    Programs Section, Mailcode 3AP11, U.S. Environmental Protection Agency, 
    Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 19107. 
    Copies of the documents relevant to this action are available for 
    public inspection during normal business hours at the Air, Radiation, 
    and Toxics Division, U.S. Environmental Protection Agency, Region III, 
    841 Chestnut Building, Philadelphia, Pennsylvania 19107 and the West 
    Virginia Department of Environmental Protection, Office of Air Quality, 
    1558 Washington Street, East, Charleston, West Virginia, 25311.
    
    FOR FURTHER INFORMATION CONTACT: Jennifer M. Abramson,(215) 566-2066, 
    or by e-mail at Abramson.Jennifer@epamail.epa.gov.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
    A. Minor New Source Review
    
        Section 110(a)(2)(C) of the CAA requires every SIP to ``include a 
    program for the * * * regulation of the modification and construction 
    of any stationary source within the areas covered by the plan as 
    necessary to assure that national ambient air quality standards are 
    achieved.'' EPA's regulations now codified at Sec. Sec. 51.160 through 
    51.164 have since the early 1970s required a new source review (NSR) 
    program, and one is included in every state implementation plan (SIP). 
    This requirement predates and is separate from the requirement also set 
    forth in section 110(a)(2)(C) that States have ``major'' NSR permitting 
    programs under part C for the prevention of significant deterioration 
    of air quality (PSD) and part D for nonattainment area permitting 
    (nonattainment NSR) of title I.
    
    B. Federally Enforceable State Operating Permit Programs
    
        Many stationary source requirements of the CAA apply only to 
    ``major sources''. Major sources are those sources whose emissions of 
    air pollutants exceed threshold emissions levels specified in the Act. 
    To determine whether a source is major, the Act focuses not only on a 
    source's actual emissions, but also on its potential emissions. 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. However, 
    in situations where unrestricted operation of a source would result in 
    a potential to emit above major-source levels, such sources may legally 
    avoid program requirements by taking federally-enforceable permit 
    conditions which limit emissions to levels below the applicable major 
    source threshold, becoming what is termed a ``synthetic minor'' source. 
    1Federally-enforceable permit conditions, if violated, are 
    subject to enforcement by the Environmental Protection Agency (EPA) or 
    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) federally enforceable state operating permit programs 
    (FESOPPs). 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.
    ---------------------------------------------------------------------------
    
        \1\  Several other mechanisms for major sources to become 
    ``synthetic minors'' and legally avoid major source program 
    requirements exist. For more information, refer to the memorandums 
    entitled ``Extension of January 25, 1995 Potential to Emit 
    Transition Policy'' (August 28, 1996), ``Release of Interim Policy 
    on Federal Enforceability of Limitations on Potential to Emit'' 
    (January 22, 1996), ``Options for Limiting the Potential to Emit 
    (PTE) of a Stationary Source under Section 112 and Title V of the 
    Clean Air Act (Act)'' (January 25, 1995), and ``Approaches to 
    creating Federally-Enforceable Emissions Limits'' (November 3, 
    1993).
    ---------------------------------------------------------------------------
    
    C. Federally Enforceable Permit Conditions for Hazardous Air Pollutants
    
        Section 112(l) of the Act provides EPA with the authority to 
    approve state programs which regulate sources of HAPs, analogous to the 
    section 110 authority provided to EPA for sources of criteria air 
    pollutants. EPA believes it
    
    [[Page 5485]]
    
    has the authority under section 112(l) to approve state programs for 
    the purpose of making permit conditions involving HAPs federally 
    enforceable. EPA believes it is consistent with the intent of section 
    112 of the CAA for states to provide mechanisms through which sources 
    may avoid classification as major sources by obtaining federally 
    enforceable limits on potential to emit. Other available mechanisms for 
    sources of hazardous air pollutants to avoid classification as major 
    sources are available (See footnote 1).
    
    II. Summary and Analysis
    
        On August 26, 1994, the West Virginia Department of Environmental 
    Protection (WVDEP) submitted for EPA approval a revision to the West 
    Virginia State Implementation Plan (SIP) regarding the issuance of 
    minor new source review and federally enforceable state operating 
    permits. This SIP revision, entitled 45CSR13- ''Permits for 
    Construction, Modification, Relocation and Operation of Stationary 
    Sources of Air Pollutants, Notification Requirements, Temporary 
    Permits, General Permits, and Procedures for Evaluation'', amends and 
    replaces 45CSR13 ``Permits for Construction, Modification, or 
    Relocation of Stationary Sources of Air Pollutants, and Procedures for 
    Registration and Evaluation'', effective June 1, 1974, which was 
    approved into the SIP November 10, 1975. On September 5, 1996, the West 
    Virginia Department of Environmental Protection (WVDEP) submitted a 
    letter clarifying that West Virginia also requests EPA approval under 
    CAA section 112(l) of the 45CSR13 program submitted on August 26, 1994.
        In order to evaluate the approvability of West Virginia's submittal 
    as a SIP revision, the changes from the SIP approved version of 45CSR13 
    must meet all applicable requirements (procedural and substantive) of 
    40 CFR part 51 and the CAA. EPA has reviewed this SIP revision package 
    in accordance with the completeness criteria described in section 
    110(k)(1) and 40 CFR part 51, appendix V and has found it to be 
    administratively and technically complete. The technical support 
    document (TSD) prepared in support of this proposed action contains a 
    detailed analysis of West Virginia's SIP submittal. The formal SIP 
    submittal, completeness determination and TSD are available for review 
    as part of the public docket at the times and locations listed in the 
    ADDRESSES section of this document.
        EPA's requirements for SIP approval applicable to minor new source 
    review permitting programs are established in part 51, subpart I--
    Review of New Sources and Modifications, Sec. Sec. 51.160. through 
    51.164. Other sections of subpart I, applicable only to new sources and 
    modifications which are major, do not apply and are thus not addressed 
    in this analysis. 2West Virginia's SIP submittal must also 
    satisfy the criteria discussed in the June 28, 1989 Federal Register 
    (54 FR 27274) in order for EPA to consider operating permits issued 
    pursuant to 45CSR13 to be federally enforceable on a permanent basis. 
    3These same criteria, in conjunction with the statutory 
    requirements of section 112(l)(5) of the Act, are used to evaluate the 
    approvability of the 45CSR13 program for the purpose of creating 
    federally enforceable permit conditions for sources hazardous air 
    pollutants (HAPs).
    ---------------------------------------------------------------------------
    
        \2\  West Virginia has developed separate rules to meet the 
    requirements of subpart I applicable to major sources, namely, 
    45CSR14 - ``Permits for Construction and Major Modification of Major 
    Stationary Sources of Air Pollution for the Prevention of 
    Significant Deterioration'' and 45CSR19 - ``Requirements for Pre-
    Construction Review, Determination of Emissions Offsets for Proposed 
    New or Modified Sources of Air Pollutants and Emission Trading for 
    Intrasource Pollutants''.
        \3\  In the memorandums entitled ``Release of Interim Policy on 
    Federal Enforceability of Limitations on Potential to Emit'' 
    (January 22, 1996) and ``Options for Limiting the Potential to Emit 
    (PTE) of a Stationary Source under Section 112 and Title V of the 
    Clean Air Act (Act)'' (January 25, 1995), EPA announces a temporary 
    recognition of practically enforceable state limits on potential 
    emissions as being federally enforceable.
    ---------------------------------------------------------------------------
    
    A. Minor New Source Review
    
        The SIP revision represents comprehensive changes from the SIP 
    approved version of West Virginia's minor new source review program. 
    For purposes of efficiency, the discussion and analysis of these 
    changes are grouped according to the following categories: 
    applicability, permit issuance procedures (including public 
    participation), and program features and nomenclature.
    1. Applicability
        West Virginia's submittal exempts constructions, modifications, and 
    relocations which are subject to the major preconstruction permit 
    requirements of West Virginia's 45CSR14 (PSD) or 45CSR19 (non-
    attainment NSR) programs from minor new source review permitting 
    requirements. The purpose of this exemption is to avoid duplicative 
    permitting obligations for the construction and relocation of new major 
    sources, and for sources which undergo major modifications since such 
    activities are subject to the State's major new source review 
    permitting programs. The submittal also exempts a category of sources 
    referred to as ``Indirect Affected sources'' from West Virginia's minor 
    new source review program. Indirect sources are facilities such as 
    parking lots, highway projects, and airport constructions or expansions 
    which attract or potentially attract mobile sources of pollution. The 
    Federal requirement for state SIPs to include ``indirect source review 
    programs'' has been removed (see CAA section 110(a)(5)). West 
    Virginia's submittal also attempts to exempt sources which have been 
    issued operating permits pursuant to Title V of the Clean Air (herein 
    after referred to as ``Title V sources'') from minor new source review. 
    If approved into the SIP, such an exemption will apply to virtually all 
    major sources in West Virginia. Although constructions and 
    modifications at Title V sources are subject to the permit revision 
    procedures of West Virginia's Title V permitting program, such 
    procedures do not replace the Federal requirements for new source 
    review (major or minor) applicable to such activities. The effect of 
    this exemption is to allow constructions of new non-major sources and 
    non-major modifications at Title V sources to proceed without 
    considering the impact of such activities on the State's control 
    strategy (including applicable PSD increments) or ability to attain or 
    maintain national ambient air quality standards (NAAQS). Accordingly, 
    West Virginia is unable to prevent activities at Title V sources which 
    result in violations of the State's control strategy, or interfere with 
    attainment or maintenance of the NAAQS, a fundamental requirement of 
    new source review programs.
        In addition to the categorical exemptions discussed above, West 
    Virginia's submittal changes applicability to minor new source review 
    in other ways. The program uses the terms ``stationary source'' and 
    ``modification'' to define the scope of activities which are subject to 
    review. Both these terms are defined with emissions levels determining 
    what qualifies as either a ``stationary source'' or a ``modification''. 
    Unless subject to an emissions control rule promulgated by the 
    Commission, sources with emissions or potential emissions below the 
    specified ``stationary source'' emissions levels are not considered to 
    be ``stationary sources''. West Virginia employs a (six) 6 lb/hr 
    threshold for sources of VOC or any of the pollutants for which the 
    State has promulgated an ambient air quality standard (SO2, PM10, NO2, 
    CO, O3 and non-methane
    
    [[Page 5486]]
    
    hydrocarbons). The 6 lb/hr size threshold for stationary sources, a 
    component of West Virginia's SIP since the 1970's, now also applies to 
    sources of VOCs, a category of pollutants which are regulated as ozone 
    precursors. For sources of hazardous or toxic air pollutants (HAPS/
    TAPS), West Virginia employs a new threshold equal to or above levels 
    employed in the State's toxic emissions control rule(45CSR27). These 
    levels range from (eight-tenths) 0.8 lbs/yr (Beryllium) to (ten 
    thousand)10,000 lbs/yr (Allyl Chloride, Trichloroethylene). Lead and 
    lead compounds are defined as HAPS/TAPS with a (twelve thousand) 12,000 
    lbs/year threshold.
        Accordingly, West Virginia's minor new source review program 
    captures all non-major sources which are subject to State emission 
    control rules, and other non-major sources with potential or actual 
    emissions above established thresholds. Similarly, physical or 
    operational changes at stationary sources which result in emissions 
    increases below the ``modification'' emission levels are not considered 
    to be ``modifications''. Where the SIP-approved version of 45CSR13 
    contained no such emission levels to define modifications, West 
    Virginia's submittal employs a modification threshold of (two) 2 lbs/hr 
    or (five) 5 tons/year or more of any pollutant which is not a toxic or 
    hazardous air pollutant. For sources with potential emissions of 
    hazardous or toxic air pollutants equal to or greater than the levels 
    specified in West Virginia's toxic emissions control rule (45CSR27), 
    any change which results in an emissions increase is considered to be a 
    modification and subject to minor new source review. Changes at sources 
    with potential emissions below the 45CSR27 levels are also considered 
    to be modifications if the emissions increase would result in total 
    emissions at the source above the 45CSR27. Regardless of the pollutants 
    involved, the program requires changes which result in emission 
    increases below the modification emissions thresholds to be reported to 
    the State. On a case-by-case basis, the State may determine that such 
    activities must also be permitted. This notification requirement for 
    modifications provides an additional layer of protection which will 
    enable the State to determine whether small changes at sources will 
    interfere with the attainment and maintenance of the NAAQS, or violate 
    the control strategy (including PSD increments).
        Similar to the Federal definition of the term ``major 
    modification'' in 40 CFR part 51, the definition of ``modification'' in 
    45CSR13 exempts certain types of actions. As a new exemption, section 
    2.18.d.A. precludes from being considered a modification the 
    installation or replacement of air pollution control equipment if the 
    new equipment is at least as effective as the equipment replaced and no 
    new air pollutant is discharged from its installation. EPA believes 
    that this exemption employs adequate safeguards for purposes of West 
    Virginia's minor new source review program. West Virginia's program 
    uses the terms ``major stationary source'' and ``major modification'' 
    to establish the upper limits of the scope of the 45CSR13 program. 
    Identical terms are used to determine applicability in West Virginia's 
    major pre-construction permitting programs, 45CSR14 (PSD) and 45CSR19 
    (non-attainment NSR). 4Since 45CSR13 exempts construction 
    and modification-related activities which are subject to either 45CSR14 
    or 45CSR19, it is critical that these programs define ``major 
    stationary source'' and ``major modification'' consistently to avoid 
    confusion when determining which pre-construction permitting program 
    applies in a given instance. 5The 45CSR13 definition of the 
    term ``Major modification'' references the definitions continued in 
    45CSR14 and 45CSR19 and thus inherently satisfies EPA's concern about 
    definition parity. While the 45CSR13 definition of ``Major stationary 
    source'' is consistent with the definitions found in 45CSR14 and 
    45CSR19 in terms of emissions thresholds, the 45CSR13 definition does 
    not delineate when fugitive emissions need to be included as is done in 
    the major permit program rules. Without such a distinction, the 45CSR13 
    definition could be interpreted to require fugitive emissions to be 
    included in all cases so that certain sources of fugitive emissions are 
    ``major sources'' under 45CSR13 but not under 45CSR14 and 45CSR19. This 
    presents a consistency problem since such sources would be exempt from 
    all new source review requirements. To address this issue, West 
    Virginia submitted a written clarification indicating that, with 
    respect to the inclusion of fugitive emissions in major stationary 
    source determinations, the definition of ``Major stationary source'' in 
    45CSR13 will be interpreted consistently with 45CSR14 and 45CSR19.
    ---------------------------------------------------------------------------
    
        \4\  The definition of the terms ``major stationary'' source and 
    ``major modification'' in West Virginia's 45CSR14 (PSD) and 45CSR19 
    (non-attainment NSR), must be consistent with the federal 
    definitions found in section 40 CFR 51.165 (non-attainment New 
    Source Review(NSR)) and Sec. 51.166 (Prevention of Significant 
    Deterioration (PSD)).
        \5\  The issue of consistency of terms is addressed in the 
    proposed revisions to title 40 of the Code of Federal Regulations 
    (40 CFR) parts 51, 70 and 71 published in the Federal Register on 
    August 31, 1995 (see 60 FR 45564). In this document, EPA proposes 
    rulemaking to clarify that all of the terms used in Sec. Sec. 51.160 
    through 51.164 have the same meaning as provided elsewhere in 
    subpart I of part 51, or in the Act.
    ---------------------------------------------------------------------------
    
    2. Permit Issuance Procedures
        The procedures for permit issuance applicable to the issuance of 
    construction, modification, relocation, and existing stationary source 
    operating permits have been enhanced to satisfy the requirements of 
    Sec. 51.161 for new source review programs and the criteria set forth 
    by EPA on June 28, 1989 (57 FR 27274) for federally enforceable state 
    operating permit programs (FESOPPs). Other changes affecting permit 
    issuance include the addition of new provisions for conducting 
    completeness evaluations of permit applications, revised deadlines for 
    permit issuance, and the removal of outdated source registration 
    provisions. Provisions allowing sources to construct or modify by 
    default have also been removed.
        The revised procedures also allow the Chief to issue temporary 
    permits which authorize experimental product or process changes for up 
    to six (6) months (which may be extended in writing up to twelve (12) 
    additional months). In acting to issue or deny an application for a 
    temporary permit, the Chief is required to provide a fifteen (15) day 
    public comment period on the temporary permit application.
        EPA recognizes that, in some cases, a full-scale six (6) month 
    minor new source review permit issuance process for proposed 
    experimental product or process changes may be impracticable and/or 
    unnecessarily burdensome. EPA also recognizes that states should have 
    the ability to limit the public participation for certain minor new 
    source permitting actions. Since states can exempt certain activities 
    from minor NSR based on de minimis or administrative necessity grounds 
    in accordance with the criteria set forth in Alabama Power Co. V. 
    Costle, 636 F.2d 323(D.C. Cir. 1979), it follows that states should 
    also be able to provide partial or full exemption from the full public 
    process requirements of Sec. 51.160(e). Any such limitation on the full 
    public participation requirements of Sec. 51.160(e), however, should be 
    applied consistent with the environmental significance of the activity. 
    6Although
    
    [[Page 5487]]
    
    temporary permits are issued only in specific instances and for limited 
    periods of time, such conditions do not characterize situations of an 
    inherently less environmentally significant nature. The effect of the 
    temporary permitting procedure is that environmentally significant 
    constructions or modifications may be authorized on a temporary basis 
    without adequate opportunity for public participation. Without a 
    correlation to the environmental significance of the activity, EPA 
    cannot consider the minimum public process afforded, fifteen (15) days, 
    to be adequate in all instances.
    ---------------------------------------------------------------------------
    
        \6\  On August 31, 1995, EPA proposed a new paragraph (c) in 
    Sec. 51.161 to clarify that, except for certain specified 
    activities; state programs may vary procedures for, and timing of, 
    public review in light of the environmental significance of the 
    activity (see 60 FR 45564).
    ---------------------------------------------------------------------------
    
    3. Program Features and Nomenclature
        The revisions to 45CSR13 include new administrative provisions for 
    issuing general permits authorizing construction or relocation of a 
    category of sources by the same operator, or involving the same or 
    similar precesses or pollutants, in accordance with the terms and 
    conditions specified in the general permit. The revised 45CSR13 also 
    establishes new provisions allowing for permit transfers after the 
    Chief determines that the proposed permittee has all necessary permit 
    responsibility. The new permittee must certify that a complete copy of 
    the permit application and permit has been reviewed, and that all terms 
    and conditions in the permit and operating parameters contained in the 
    application will be adhered to. The Chief must also be provided a 
    written agreement between the existing and new permittee with regard to 
    the specific transfer date and the extent of permit responsibility 
    between them. The revised 45CSR13 also includes a new provision for 
    permit cancellation requiring permit holders to submit requests for 
    cancellation in writing. The cancellation provision specifies that no 
    permit cancellation shall become effective until the permittee and EPA 
    have been given at least 30 days written notice. The cancellation 
    provision further specifies that permit cancellation will not excuse 
    any violation of permit terms or conditions prior to the effective date 
    of the permit cancellation.
        The revisions to 45CSR13 include the addition of several new terms 
    and the modification of existing terms which are defined in a manner 
    consistent with the program's proper implementation and with the 
    corresponding definitions of Sec. Sec. 51.165 and 51.166 applicable to 
    major new source review permitting programs. The revisions also delete 
    several outdated terms such as ``indirect affected source''. These 
    changes update the programs definitions consistent with the current 
    terminology employed by the Act and with EPA's regulations.
    
    B. Federally Enforceable State Operating Permit Programs
    
        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 provided that the 
    state's operating permits program is approved into the SIP under 
    section 110 of the CAA as meeting certain criteria, and provided that 
    the permit conforms to the requirements of the approved program (54 FR 
    27282). The five criteria set forth by EPA 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. West Virginia's revised 45CSR13 
    includes a new ``opt-in'' provision where sources not otherwise 
    required to be permitted for purposes of new source review may 
    voluntarily apply for an existing stationary source operating permit. 
    This provision was added so that 45CSR13 could serve dually as West 
    Virginia's minor new source review program and as its FESOPP. The 
    procedures for issuing existing stationary source operating permits 
    under 45CSR13 are identical to those followed for issuing minor new 
    source review permits. West Virginia's revised 45CSR13 program meets 
    the June 28, 1989 criteria by ensuring that permit terms are permanent, 
    quantifiable, and practically enforceable and by providing adequate 
    notice and comment to both EPA and the public. However, since such 
    requirements must be satisfied on a permit by permit basis, EPA may 
    deem individual permits which contain terms and conditions that are not 
    quantifiable or practically enforceable not ``federally enforceable''. 
    Regarding ``permanence'', section 11.3 of West Virginia's rule provides 
    that the issuance of a Title V operating permit will operate to revoke 
    an existing stationary source operating permit. EPA expects that many 
    of the existing stationary source operating permits issued are to 
    sources which are seeking to avoid Title V permitting obligations. For 
    these sources, the ``automatic revocation'' provision will not be 
    triggered. However, some sources may rely on limitations on potential 
    emissions established in existing stationary source operating permits 
    to avoid other ``major source'' program requirements such as major NSR, 
    PSD, or Title III MACT standards and will trigger the ``automatic 
    revocation'' provisions. For these sources, the superseding Title V 
    permit will need to address such limitations as applicable requirements 
    (similar to how minor NSR permit conditions are addressed in the Title 
    V permit), or else place the source at risk for violating applicable 
    ``major source'' program requirements. EPA is assured that sources that 
    obtain limitations on potential emissions in existing stationary source 
    operating permits will keep such limitations in effect, so as to never 
    be in violation of ``major source'' permitting or other program 
    requirements. EPA interprets section 11.3 to authorize supersession of 
    existing stationary source operating permits only, and not 
    construction, modification or relocation permits. The TSD provides a 
    thorough analysis of the West Virginia's 45CSR13 program against EPA's 
    June 28, 1989 criteria.
    
    C. Federally Enforceable Permit Conditions for Hazardous Air Pollutants
    
        West Virginia's revised 45CSR13 defines the term ``regulated air 
    pollutant'' to include nineteen (19) hazardous/toxic pollutants which 
    are regulated by the State's air toxic rule (45CSR27), and ``..any 
    other pollutants subject to an emissions standard promulgated by the 
    Commission including mineral acids in 45CSR7.'' West Virginia has 
    adopted specific regulations which incorporate Federal National 
    Emissions Standards for Hazardous Air Pollutants (NESHAPS) promulgated 
    at 40 CFR parts 61 and 63 by reference. West Virginia updates these 
    authorities in State regulations on an annual basis. EPA interprets the 
    45CSR13 definition of ``regulated air pollutant'' to provide the 
    necessary authority for 45CSR13 permits to contain conditions on HAPs 
    which are regulated by 40 CFR parts 61 and 63 NESHAPS and which have 
    been adopted into West Virginia's regulations. On September 5, 1996, 
    the West Virginia Department of Environmental Protection (WVDEP) 
    submitted a letter clarifying that West Virginia also requests EPA 
    approval under section 112(l) of the 45CSR13 program submitted on 
    August 26, 1994.
        EPA approval of 45CSR13 program under section 112(l) of the Act is 
    necessary to extend West Virginia's authority under section 110 of the 
    Act to include the authority to create federally enforceable limits on 
    the potential to emit HAPs. EPA has determined that the five approval 
    criteria for approving FESOPPs into the
    
    [[Page 5488]]
    
    SIP, as specified in the June 28, 1989 Federal Register notice, are 
    also appropriate for evaluating and approving programs under section 
    112(l). Although the June 28, 1989 notice did not address HAPs, this is 
    because it was written prior to the 1990 amendments to section 112 of 
    the CAA. EPA believes that the use of the same criteria for evaluating 
    programs for both criteria and hazardous pollutants is appropriate 
    since the approval criteria are not based or dependent on pollutant, 
    but on general program elements which must be present for the program 
    to be deemed minimally approvable by EPA. Hence, the five criteria 
    discussed above are applicable to FESOPP approvals under section 112(l) 
    as well as under section 110.
        In addition to meeting the criteria discussed above, state programs 
    must meet the statutory criteria for approval under section 112(l)(5) 
    of the CAA. This section allows EPA to approve a program only if it: 
    (1) Contains adequate authority to assure compliance with any Section 
    112 standard or requirement; (2) provides for adequate resources; (3) 
    provides for an expeditious schedule for assuring compliance with 
    Section 112 requirements; and (4) is otherwise likely to satisfy the 
    objectives of the CAA. EPA plans to codify the approval criteria for 
    programs limiting the potential to emit 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). EPA currently anticipates 
    that these criteria, as they apply to FESOPP programs, will mirror 
    those set forth in the June 28, 1989 notice, with the addition that the 
    State's authority must extend to HAPs instead of or in addition to 
    VOC's and PM10. The EPA currently anticipates that FESOPP programs that 
    are approved pursuant to Section 112(l) prior to the planned Subpart E 
    revisions will have had to meet these criteria, and hence will not be 
    subject to any further approval action.
        EPA believes it has the authority under section 112(l) to approve 
    programs to limit potential to emit of HAPs directly under section 
    112(l) prior to this revision to Subpart E. Section 112(l)(5) requires 
    EPA to disapprove programs that are inconsistent with guidance required 
    to be issued under section 112(l)(2). This might be read to suggest 
    that the ``guidance'' referred to in section 112(l)(2) was intended to 
    be a binding rule. Even under this interpretation, EPA does not believe 
    that section 112(l) requires this rulemaking to be comprehensive. That 
    is, it need not address every possible instance of approval under 
    section 112(l). EPA has already issued regulations under section 112(l) 
    that would satisfy any section 112(l)(2) requirement for rulemaking. 
    Given the timing problems posed by impending deadlines set forth in 
    ``maximum achievable control technology'' (MACT) emission standards 
    under section 112 and for submittal of Title V permit applications, the 
    EPA believes it is reasonable to read section 112(l) to allow for 
    approval of programs to limit potential to emit prior to promulgation 
    of a rule specifically addressing this issue.
        West Virginia's satisfaction of the criteria published in the 
    Federal Register of June 28, 1989, has been discussed above. In 
    addition, West Virginia's 45CSR13 program meets the statutory criteria 
    for approval under 112(l)(5). EPA believes West Virginia's 45CSR13 
    program contains adequate authority to assure compliance with section 
    112 requirements since it does not provide for waiving any section 112 
    requirement(s). Sources would still be required to meet section 112 
    requirements applicable to non-major sources. Regarding adequate 
    resources, West Virginia subjects sources required to be permitted 
    under 45CSR13 to the State's fee regulation, 45CSR22 ``Air Quality Fee 
    Program''. Furthermore, EPA believes that West Virginia's 45CSR13 
    program provides for an expeditious schedule for assuring compliance 
    because it allows a source to establish a voluntary limit on potential 
    to emit and avoid being subject to a Federal Clean Air Act requirement 
    applicable on a particular date. Nothing in West Virginia's 45CSR13 
    program would allow a source to avoid or delay compliance with a 
    Federal requirement if it fails to obtain the appropriate federally 
    enforceable limit by the relevant deadline. Finally, West Virginia's 
    45CSR13 program is consistent with the objectives of the Section 112 
    program because its purpose is to enable sources to obtain federally 
    enforceable limits on potential to emit to avoid major source 
    classification under section 112. EPA believes that this purpose is 
    consistent with the overall intent of section 112. The Technical 
    Support Document contains a more thorough analysis of West Virginia's 
    45CSR13 program against the statutory criteria for approval under 
    112(l)(5).
        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.
    
    III. Proposed Action
    
        EPA is proposing to disapprove the exemption from minor new source 
    review for sources issued Title V permits as such an exemption does not 
    comport with the Federal requirements of 40 CFR 51.160. EPA is also 
    proposing to disapprove the new provisions governing the issuance of 
    temporary construction or modifications permits as such provisions do 
    not satisfy the Federal requirements for public participation of 40 CFR 
    51.161. EPA is proposing to approve all other portions of 45CSR13 as a 
    revision to the West Virginia SIP. Such an action will enable EPA to 
    approve and make federally enforceable the many updates and 
    improvements from the SIP approved version of the program, and at the 
    same time prevent serious relaxations of the SIP related to the 
    program's scope and public participation requirements.
        EPA is proposing to approve 45CSR13 under section 110 of the Act 
    because the program meets the June 28, 1989 approval criteria for 
    federally enforceable state operating permit programs. For this reason 
    and because the program meets the statutory requirements of section 
    112(l)(5) of the Act, EPA is also proposing approval of West Virginia's 
    45CSR13 program pursuant to section 112(l) of the Act for the purpose 
    of limiting the potential to emit of HAPs. Such an action will confer 
    Federal enforceability status to existing stationary source operating 
    permits which are issued to sources of criteria pollutants or HAPs in 
    accordance with 45CSR13 and the five June 28, 1989 criteria, including 
    permits which have been issued prior to EPA's final action.
        Nothing in this action should be construed as permitting or 
    allowing or establishing a precedent for any future request for 
    revision to any state implementation plan. Each request for revision to 
    the state implementation plan shall be considered separately in light 
    of specific technical, economic and environmental factors and in 
    relation to relevant statutory and regulatory authority.
    
    IV. Administrative Requirements
    
    A. Executive Order 12866
    
        The Office of Management and Budget (OMB) has exempted this 
    regulatory action from E.O. 12866 review.
    
    B. Regulatory Flexibility Act
    
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
    must prepare
    
    [[Page 5489]]
    
    a regulatory flexibility analysis assessing the impact of any proposed 
    or final rule on small entities. 5 U.S.C. 603 and 604. Alternatively, 
    EPA may certify that the rule will not have a significant impact on a 
    substantial number of small entities. Small entities include small 
    businesses, small not-for-profit enterprises, and government entities 
    with jurisdiction over populations of less than 50,000.
        SIP approvals under sections 110 and subchapter I, part D of the 
    CAA do not create any new requirements but simply approve requirements 
    that the State is already imposing. Therefore, because the Federal SIP 
    approval does not impose any new requirements, the administrator 
    certifies that it does not have a significant impact on any small 
    entities affected. Moreover, due to the nature of the Federal-State 
    relationship under the CAA, 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).
        EPA's disapproval of the State request under section 110 and 
    subchapter I, part D of the CAA does not affect any existing 
    requirements applicable to small entities. Any pre-existing Federal 
    requirements remain in place after this disapproval. Federal 
    disapproval of the state submittal does not affect its state-
    enforceability. Moreover, EPA's disapproval of the submittal does not 
    impose any new requirements. Therefore, EPA certifies that this 
    disapproval action does not have a significant impact on a substantial 
    number of small entities because it does not remove existing 
    requirements and impose any new requirements.
    
    C. 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 
    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 approval action proposed 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. 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.
        The Administrator's decision to approve or disapprove this revision 
    to the West Virginia SIP for minor sources will be based on whether it 
    meets the requirements of section 110(a)(2)(A)-K) and of the Clean Air 
    Act, as amended, and EPA regulations in 40 CFR part 51.
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control.
    
        Authority: 42 U.S.C. 7401 et seq.
    
        Dated: January 22, 1998.
    W. Michael McCabe,
    Regional Administrator, Region III.
    [FR Doc. 98-2615 Filed 2-2-98; 8:45 am]
    BILLING CODE 6560-50-F
    
    
    

Document Information

Published:
02/03/1998
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
98-2615
Dates:
Comments must be received on or before March 5, 1998.
Pages:
5484-5489 (6 pages)
Docket Numbers:
WV026-6004, FRL-5957-7
PDF File:
98-2615.pdf
CFR: (1)
40 CFR 51.161