95-5516. Clean Air Act Final Interim Approval of Operating Permits Program; Illinois  

  • [Federal Register Volume 60, Number 44 (Tuesday, March 7, 1995)]
    [Rules and Regulations]
    [Pages 12478-12483]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-5516]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Part 70
    
    [IL001; FRL-5164-6]
    
    
    Clean Air Act Final Interim Approval of Operating Permits 
    Program; Illinois
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Final interim approval.
    
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    SUMMARY: The EPA is promulgating interim approval of the Operating 
    Permits Program submitted by Illinois for the purpose of complying with 
    Federal requirements for an approvable State program to issue operating 
    permits to all major stationary sources, and to certain other sources.
    
    EFFECTIVE DATE: March 7, 1995.
    
    ADDRESSES: Copies of the State's submittal and other supporting 
    information used in developing the final interim approval are available 
    for inspection during normal business hours at the following location: 
    United States Environmental Protection Agency, Region 5, 77 West 
    Jackson Boulevard, AR-18J, Chicago, Illinois 60604.
    
    FOR FURTHER INFORMATION CONTACT: Jennifer Buzecky, 77 West Jackson 
    Boulevard, Permits and Grants Section AR-18J, Chicago, Illinois 60604, 
    (312) 886-3194.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background and Purpose
    
    A. Introduction
    
        Title V of the 1990 Clean Air Act Amendments (sections 501-507 of 
    the Clean Air Act (``the Act'')), and implementing regulations at 40 
    Code of Federal Regulations (CFR) Part 70 require that States develop 
    and submit operating permits programs to EPA by November 15, 1993, and 
    that EPA act to approve or disapprove each program within 1 year after 
    receiving the submittal. 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. Where a program 
    substantially, but not fully, meets the requirements of part 70, EPA 
    may grant the program interim approval for a period of up to 2 years. 
    If EPA has not fully approved a program by 2 years after the November 
    15, 1993 date, or by the end of an interim program, it must establish 
    and implement a Federal program.
        On September 30, 1994, EPA proposed interim approval of the 
    operating permits program for Illinois. See 59 FR 49882. The EPA 
    received public comment on the proposal, and compiled a Technical 
    Support Document (TSD) which describes the operating permits program in 
    greater detail. In this notice EPA is taking final action to promulgate 
    interim approval of the operating permits program for Illinois.
    
    II. Final Action and Implications
    
    A. Analysis of State Submission
    
        The EPA received comments from a total of four organizations. The 
    EPA's response to these comments is summarized in this section. 
    Comments [[Page 12479]] supporting EPA's proposal are not addressed in 
    this notice; however, EPA's response to all comments is available in a 
    document contained in the docket at the address noted in the ADDRESSES 
    section above.
    1. Section 112(G) Implementation
        The EPA received several comments regarding the proposed approval 
    of Illinois' preconstruction permitting program for the purpose of 
    implementing section 112(g) during the transition period between title 
    V approval and adoption of a State rule implementing EPA's section 
    112(g) regulations. Two commentors argued that Illinois should not, and 
    cannot, implement section 112(g) until: (1) EPA has promulgated a 
    section 112(g) regulation, and (2) the State has a section 112(g) 
    program in place. The commentors also argued that Illinois' 
    preconstruction review program cannot serve as a means to implement 
    section 112(g) because it was not designed for that purpose. One 
    commentor also asserted that such a regulatory program is 
    unconstitutional because the section 112(g) requirements are vague.
        In its proposed interim approval of Illinois' part 70 program, EPA 
    also proposed to approve Illinois' preconstruction review program for 
    the purpose of implementing section 112(g) during the transition period 
    before promulgation of a Federal rule implementing section 112(g). This 
    proposal was based in part on an interpretation of the Act that would 
    require sources to comply with section 112(g) beginning on the date of 
    approval of the title V program, regardless of whether EPA had 
    completed its section 112(g) rulemaking. The EPA has since revised this 
    interpretation of the Act in a Federal Register notice published on 
    February 14, 1995. 60 FR 8333. The revised interpretation postpones the 
    effective date of section 112(g) until after EPA has promulgated a rule 
    addressing that provision. The revised notice sets forth in detail the 
    rationale for the revised interpretation.
        The section 112(g) interpretive notice explains that EPA is still 
    considering whether the effective date of section 112(g) should be 
    delayed beyond the date of promulgation of the Federal rule so as to 
    allow States time to adopt rules implementing the Federal rule, and 
    that EPA will provide for any such additional delay in the final 
    section 112(g) rulemaking. Unless and until EPA provides for such an 
    additional postponement of section 112(g), Illinois must be able to 
    implement section 112(g) during the period between promulgation of the 
    Federal section 112(g) rule and adoption of implementing State 
    regulations.
        For this reason, EPA is finalizing its approval of Illinois' 
    preconstruction review program. This approval clarifies that the 
    preconstruction review program is available as a mechanism to implement 
    section 112(g) during the transition period between promulgation of the 
    section 112(g) rule and adoption by Illinois of rules established to 
    implement section 112(g). However, since the approval is for the single 
    purpose of providing a mechanism to implement section 112(g) during the 
    transition period, the approval itself will be without effect if EPA 
    decides in the final section 112(g) rule that sources are not subject 
    to the requirements of the rule until State regulations are adopted. 
    Furthermore, EPA is limiting the duration of this approval to 18 months 
    following promulgation by EPA of the section 112(g) rule.
        The EPA believes that, although Illinois currently lacks a program 
    designed specifically to implement section 112(g), Illinois' 
    preconstruction review program will serve as an adequate implementation 
    vehicle during a transition period because it will allow Illinois to 
    select control measures that would meet MACT, as defined in section 
    112, and incorporate these measures into a federally enforceable 
    preconstruction permit. Illinois will be able to impose federally 
    enforceable measures reflecting MACT for most if not all changes 
    qualifying as a modification, construction, or reconstruction under 
    section 112(g) because Illinois' preconstruction permitting program is 
    not limited to criteria pollutants. 415 ILCS 5/9.1(d).
        Another consequence of the fact that Illinois lacks a program 
    designed specifically to implement section 112(g) is that the 
    applicability criteria found in its preconstruction review program may 
    differ from those in the section 112(g) rule. However, whether a 
    particular source change qualifies as a modification, construction, or 
    reconstruction for section 112(g) purposes during any transition period 
    will be determined according to the final section 112(g) rule. The EPA 
    would expect Illinois to be able to issue a preconstruction permit 
    containing a case-by-case determination of MACT where necessary for 
    purposes of section 112(g) even if review under its own preconstruction 
    review program would not be triggered.
        In addition, one commentor incorporated by reference its comments 
    on the proposed section 112(g) rule, and stated that the proposed rule 
    has technical, legal, and constitutional defects that disqualify it as 
    a valid or workable approach to section 112(g) implementation. The EPA 
    believes the appropriate forum for pursuing objections to the legal 
    validity of Federal regulations is by: (1) Submitting comments on a 
    proposed rulemaking during the public comment period for that 
    particular rulemaking, or (2) petitioning for review of the promulgated 
    rule in the D.C. Circuit Court of Appeals. If the commentor has 
    concerns with the final section 112(g) rule, the commentor will have 
    the opportunity to pursue such action once the section 112(g) rule is 
    promulgated.
        Two commentors assumed that EPA would delegate the section 112(g) 
    requirements to the State. The EPA wishes to clarify that the 
    implementation of section 112(g) by the State, including case-by-case 
    MACT determinations, is a requirement for approval of a State title V 
    program. In other words, approval of the title V operating permits 
    program confers on the State responsibility to implement section 
    112(g). Since the requirement to implement section 112(g) lies with the 
    State in the first instance, there is no need for a delegation action 
    apart from the title V program approval mechanism, except where the 
    State seeks approval of a ``no less stringent'' program under 40 CFR 
    part 63 subpart E. EPA's approval of Illinois' program for delegation 
    of section 112 standards as promulgated does not affect this 
    responsibility to implement section 112(g).
    2. Variance
        EPA received two comments regarding the variance provisions 
    contained in Illinois' existing regulations. The commentors objected to 
    EPA's position that State variances are not recognized by EPA unless a 
    variance is issued in accordance with part 70 procedures. The 
    commentors stated that dismissing all State-issued variances would 
    conflict with part 70. The commentors also stated that while part 70's 
    requirements for compliance schedules do not sanction non-compliance by 
    a source, variances provided by the state are consistent with the 
    recognition of non-complying sources and the requirement for compliance 
    schedules in the permit application.
        EPA agrees with the commentors that variances provided by the State 
    could be consistent with the issuance of a part 70 permit. The 
    inclusion of a compliance schedule in a part 70 permit is a part 70 
    requirement and, therefore, a State variance from the applicable 
    requirements at the time of permit [[Page 12480]] issuance that is 
    provided to a non-complying source may not be inconsistent with part 
    70. EPA would not, however, recognize variances that grant relief from 
    the duty to comply with the terms of an issued federally enforceable 
    part 70 permit except where such relief is granted through procedures 
    allowed by part 70. Once again, EPA is not taking any action on 
    Illinois' variance procedures. The Agency is only clarifying that all 
    variances provided by the State for title V sources must be granted in 
    accordance with part 70.
    3. Insignificant Activities
        Four commentors responded to EPA's proposed concerns regarding 
    Illinois' draft insignificant activities regulations. In response to 
    these comments EPA reviewed the draft regulations a second time. On 
    February 2, 1995, EPA formally received a final copy of these 
    regulations for inclusion in the State's CAAPP submittal. Please see 
    the docket for a more detailed review of the Illinois rule.
        All commentors objected to EPA's interpretation that the threshold 
    levels of 1.0 pound per hour (lb/hr) of criteria pollutants and .1 lb/
    hr of HAP in 35 Illinois Administrative Code (IAC) Part 201.211 are not 
    acceptable. These cut-off rates mentioned above are contained in the 
    State's provision, ``Application for Classification as an Insignificant 
    Activity.'' 35 IAC 201.211. One commentor stated that the more 
    appropriate classification of insignificant activities lies in 
    different sections of the State's regulations. The section referred to 
    by the commentor distinguishes between HAP and non-HAP emissions. For 
    HAP calculations, the rule relies on concentrations of HAPs in the form 
    of raw material fed to an emission unit. 35 IAC 201.209(a)(1) (A)-(C). 
    For non-HAPs, the rule refers to emission units that never exceed .1 
    lb/hr or .44 tpy. 35 IAC 201.210(a) (2) and (3). Although EPA cannot 
    now determine whether or not the HAP calculations would result in 
    emissions in amounts greater than the significance limits that will 
    ultimately be finalized in the section 112(g) rulemaking, EPA also 
    believes that the non-HAP provisions in 35 IAC 201.210(a) (2) and (3) 
    do not now pose a problem for approval of the State's submittal. The 
    Agency, therefore, is taking no action on these provisions. EPA 
    originally objected to 35 IAC 201.210(a)(1), however, because this 
    provision includes emissions determined to be insignificant according 
    to the provisions in 35 IAC 201.211 (allowing sources to apply for 
    insignificant activities that are granted by IEPA's discretion). The 
    regulatory sections offered by the commentor, therefore, are not 
    entirely dispositive of the issue.
        Upon further reflection, EPA generally agrees with the commentors 
    that the rate itself of 1.0 lb/hr of criteria pollutant emission cut-
    off contained in 35 IAC 201.211 need not be amended for full approval. 
    Emission cut-offs approved for insignificant activities are based upon 
    State-specific circumstances and analysis. One State's cut-offs may not 
    be appropriate for another State's programs due to variations in local 
    factors such as non-attainment areas, State Implementation Plans (SIP), 
    source types, and emissions. EPA believes the State should be given 
    substantial deference in this matter and finds the insignificance 
    levels established by Illinois will not, in and of themselves, 
    interfere with the State's ability to ensure that part 70 sources meet 
    all applicable requirements of the SIP. Although a severe ozone 
    nonattainment area exists in the State, EPA believes that it is 
    reasonable in this case to project that the insignificant levels 
    established in the State of Illinois' regulations will not interfere 
    with its effort to be reclassified as attainment. Illinois believes 
    that this level will not only reduce its administrative burden, but 
    allow it to eventually meet its attainment demonstrations.
        The Agency, however, is still concerned with the development of 
    these regulations and continues to believe that interim approval is 
    appropriate for these rules at this time. 35 IAC 201.208 of the State's 
    rule does not meet the requirements of 40 CFR 70.5(c), which requires 
    that an application may not omit information needed to determine the 
    applicability of, or to impose, any applicable requirements, or to 
    evaluate the fee amount required under the schedule approved pursuant 
    to 40 CFR 70.9. These provisions are intended to ensure that sources do 
    not file incomplete permit applications due to inadvertent usage of a 
    State's insignificant activity provisions. In addition, 35 IAC 
    201.210(b) must be amended to clarify that a source must specifically 
    list in its permit application the activities present at its facility 
    and not just rely on a general statement that denotes the presence of 
    activities.
        Although the emission cut-offs for criteria pollutants are not a 
    concern at this time, revisions to the State's insignificant 
    regulations will still be necessary for full approval of the State's 
    program. EPA believes the State must make the following changes for 
    full approval: (1) the language of 201.208 must worded to state that at 
    the time of filing an application, the application must include all 
    necessary information to determine the applicability of or to impose 
    any applicable requirements or fees and (2) 201.210(b) must be amended 
    so that sources specifically list the insignificant activities present 
    at their facilities.
    4. Administrative Amendments
        EPA received three comments on the inclusion of the State's 
    incorporation of emission trades based upon a SIP-approved trading 
    program into a title V permit based upon the administrative amendment 
    procedure. Two of the commentors requested clarification as to whether 
    EPA intends to subject emissions trading that occurs under an emissions 
    cap established in a part 70 permit to significant modification 
    procedures. One commentor stated that it is not necessary for EPA to 
    consider this provision now since Illinois has no such regulations 
    developed concerning emissions trading.
        Responding to the commentors' request for clarification, EPA does 
    not interpret part 70 to require states to subject emissions trades 
    that occur under an emissions cap established in a part 70 permit to 
    significant modification procedures. These trades are established by a 
    part 70 permit and, therefore, sources do not need to revise their part 
    70 permits when utilizing these trading provisions.
        Part 70, however, does not allow the use of an administrative 
    permit amendment to accomplish incorporation of emissions trades 
    resulting from the application of an approved economic incentives rule, 
    a marketable permits rule or a generic emissions trading rule into a 
    part 70 permit. 40 CFR 70.7(d). Any substantive change to a permit term 
    or condition must follow the permit revision procedures of part 70. 
    Future part 70 rulemakings may change this requirement, but for the 
    present, EPA can only review State submittals in accordance with the 
    promulgated part 70 rulemaking of July 21, 1992.
        Despite the fact that Illinois does not currently have an approved 
    trading program, it is appropriate for EPA to now consider this State 
    legislative provision allowing emission trades to be incorporated 
    through the administrative amendment procedure. EPA cannot approve 
    regulations in a State program that would conflict with provisions in 
    the part 70 regulations.
    5. Compliance Certification
        Three commentors objected to EPA's proposed interim approval 
    regarding the [[Page 12481]] State's legislation concerning compliance 
    certification by a responsible official. The Illinois statute requires 
    that applications be certified for truth, accuracy, and completeness by 
    a responsible official in accordance with applicable regulations. 415 
    ILCS 5/39.5(5)(e). Part 70 requires that certifications be based upon a 
    ``reasonable belief'' or that statements be based upon ``information 
    and belief.'' 40 CFR 70.5(d) and 70.6(c)(1).
        EPA agrees with the commentors to the extent that interim approval 
    for this issue is not appropriate. Upon further review, Illinois' 
    legislative authority for certification of responsible officials 
    carries the same meaning as part 70. A responsible official of the 
    permit applicant would presumably need to make some inquiry into the 
    document being certified to ensure that the official's certification 
    meets the requirements of the Illinois statute. In light of this, EPA 
    will remove the compliance certification issue from the items needing 
    further State action for final approval.
    6. Enhanced NSR
        Three commentors objected to EPA's proposal of interim approval for 
    Illinois' inclusion of preconstruction review permits into part 70 
    permits via the administrative amendment procedures of part 70. To 
    summarize, all three commentors object to requiring the development of 
    specific regulations that would outline the substantive, procedural and 
    compliance requirements necessary for incorporation of a 
    preconstruction permit into a part 70 permit through the administrative 
    amendment procedure. This incorporation of a preconstruction permit 
    into a part 70 permit is known as ``enhanced new source review (NSR).''
        In EPA's proposal, EPA stated that 40 CFR 70.7(d)(1)(v) allows such 
    incorporation only when the State's preconstruction review program 
    meets procedural and compliance requirements substantially equivalent 
    to the requirements of 40 CFR 70.7 and 70.8 and compliance requirements 
    substantially equivalent to those contained in 40 CFR 70.6. To utilize 
    40 CFR 70.7(d)(1)(v), the state must develop regulations which outline 
    the actual requirements necessary for preconstruction permits to 
    qualify for inclusion in part 70 permits using the administrative 
    amendment procedure and for EPA to approve these regulations as 
    ``substantially equivalent.'' Without these regulations, the public and 
    EPA cannot track the issuance and amendments of part 70 permits to 
    ensure that the permits contain all requirements. The public also needs 
    assurance that a source will not be able to avoid the requirements of 
    the part 70 process through a different permitting program such as 
    preconstruction review.
        Although 40 CFR 70.7(d)(1)(v) is not a necessary element of a part 
    70 program, the State of Illinois submitted a title V permit program 
    that provides for the use of this procedure. EPA, therefore, must 
    determine the adequacy of this aspect of the State's submittal. Because 
    Illinois' existing legislative authority allows the use of enhanced 
    NSR, without any further regulations defining substantially equivalent 
    procedures to 40 CFR 70.6, 70.7 and 70.8, this provision is currently 
    deficient. To cure this deficiency, the State must: (1) develop 
    regulations outlining the exact substantive, procedural and compliance 
    requirements for incorporation of preconstruction permits into part 70 
    permits and (2) submit these regulations to EPA for review and approval 
    to ensure that these regulations are ``substantially equivalent'' to 
    the part 70 regulations.
        415 ILCS 5/39.5(13)(c)(v), therefore, will remain on the interim 
    approval list until the State corrects this deficiency. Until 
    regulations are developed outlining the elements of an enhanced NSR 
    program, the State will be expected to interpret ``substantially 
    equivalent'' in 415 ILCS 5/39.5(13)(c)(v) consistently with part 70.
    7. Knowingly Tampering with Monitoring Devices
        Two commentors objected to EPA's inclusion of Illinois' statutory 
    provision concerning enforcement of knowingly tampering with any 
    ``monitoring device or record.'' 415 ILCS 5/44(j)(4)(D). Part 70 
    requires that criminal fines be imposed upon one who knowingly renders 
    inaccurate any required ``monitoring device or method.'' 40 CFR 
    70.11(a)(3)(iii). One commentor stated that Illinois' enforcement 
    provision is identical in meaning and effect to the language in part 70 
    and is appropriate in the context of Illinois' law.
        Upon further review, EPA agrees with the commentors that the 
    Illinois legislative provisions for enforcement for knowingly tampering 
    with monitoring devices or records is equivalent in meaning to the 
    requirements of part 70. EPA will, therefore, remove from the list of 
    interim approval issues the requirement that the State make a 
    legislative change to its enforcement provisions.
    8. Prompt Reporting of Deviations
        EPA received two comments supporting its review of Illinois' 
    submittal concerning the prompt reporting of deviations from permit 
    conditions required by 40 CFR 70.6(a)(3)(iii)(B). Because Illinois did 
    not include a definition of ``prompt'' in its legislation or 
    regulations, an acceptable alternative is for the State to define 
    ``prompt'' in each part 70 permit. This definition will be dependent 
    upon the individual circumstances of each source.
        The commentors, however, believe that the EPA must revise several 
    of its earlier interim approval notices, in which the Agency 
    conditioned final approval on including a definition of prompt in the 
    State program, in order to provide a consistent application of the 
    appropriate interpretation of its rules. EPA is not aware of any 
    program approval notices that need to be corrected at this time.
    
    B. Additional Issues
    
        The Illinois Environmental Protection Agency (IEPA) informed the 
    EPA, after publication of the proposed interim approval of the State's 
    title V program, that the State cannot meet its January 1, 1995, 
    commitment for an effective acid rain program. In light of the 
    structure of existing state legislation, in order for an eventual full 
    approval of the State's CAAPP, the State must incorporate by reference 
    the Federal acid rain program into the State's existing CAAPP 
    legislation. 415 ILCS 5/39.5(17). IEPA requested an extension of its 
    commitment to incorporate by reference the Federal program so that the 
    State can combine this incorporation by reference with the amendments 
    to its CAAPP legislation required for interim approval. This 
    presentation to the legislature would occur in the January, 1996, 
    legislative session, rather than the January, 1995, session originally 
    contemplated. IEPA argues that amending its CAAPP legislation once 
    rather than twice would not interfere with the State's implementation 
    of Phase II of the Acid Rain Program.
        On January 9, 1994, EPA received a letter from Bharat Mathur, 
    Chief, Bureau of Air, IEPA, to Stephen Rothblatt, Chief, Regulation 
    Development Branch, EPA Region 5, detailing why the State cannot meet 
    its January 1, 1995, commitment and reiterating its commitment to 
    implement the Acid Rain program.
        Due to the State's existing enabling legislation for titles IV and 
    V and its commitment to implement the acid rain program in the interim 
    period between [[Page 12482]] this final notice and an effective 
    incorporation by reference of the Federal acid rain program into the 
    State's legislation, EPA believes an extension of the State's 
    commitment to adopt acid rain legislation is appropriate. Existing 
    State legislation allows the State to collect applications for Phase II 
    affected source and allows the State to process these applications and 
    evidences the State's ability to implement the Federal acid rain 
    program in accordance with all Federal regulations. 415 ILCS 5/
    39.5(17). Until the State officially incorporates the Federal acid rain 
    program by reference, EPA expects the State to use its broad 
    legislative authority for the receipt and processing of phase II 
    applications in accordance with all Federal regulations.
    
    C. Final Action
    
        The EPA is promulgating interim approval of the operating permits 
    program submitted by Illinois on November 15, 1993. The State must make 
    the following changes to receive full approval:
        1. The State must correct all deficiencies in its insignificant 
    activities regulations (refer to previous discussion of insignificant 
    activities for actual changes);
        2. The State must amend 415 ILCS 5/39.5(13)(c)(vi) to require the 
    use of the significant modification procedure to incorporate emission 
    trades into a CAAPP permit;
        3. The State must develop regulations defining enhanced NSR for the 
    purposes of implementing 40 CFR 70.7(d)(1)(v); and
        4. Due to the State's present legislative provisions concerning the 
    Acid Rain program, the State must incorporate by reference the federal 
    regulations for implementation of the acid rain program.
        The scope of Illinois' part 70 program approved in this notice 
    applies to all part 70 sources (as defined in the approved program) 
    within the State of Illinois, except any sources of air pollution over 
    which an Indian Tribe has jurisdiction. See, e.g., 59 FR 55813, 55815-
    55818 (Nov. 9, 1994). The term ``Indian Tribe'' is defined under the 
    Act as ``any Indian tribe, band, nation, or other organized group or 
    community, including any Alaska Native village, which is Federally 
    recognized as eligible for the special programs and services provided 
    by the United States to Indians because of their status as Indians.'' 
    See section 302(r) of the CAA; see also 59 FR 43956, 43962 (Aug. 25, 
    1994); 58 FR 54364 (Oct. 21, 1993).
        This interim approval, which may not be renewed, extends until 
    March 7, 1997. During this interim approval period, the State of 
    Illinois is protected from sanctions, and EPA is not obligated to 
    promulgate, administer and enforce a Federal operating permits program 
    in Illinois. Permits issued under a program with interim approval have 
    full standing with respect to part 70, and the 1-year time period for 
    submittal of permit applications by subject sources begins upon the 
    effective date of this interim approval, as does the 3-year time period 
    for processing the initial permit applications.
        If the State of Illinois fails to submit a complete corrective 
    program for full approval by September 9, 1996, EPA will start an 18-
    month clock for mandatory sanctions. If Illinois then fails to submit a 
    corrective program that EPA finds complete before the expiration of 
    that 18-month period, EPA will be required to apply one of the 
    sanctions in section 179(b) of the Act, which will remain in effect 
    until EPA determines that Illinois has corrected the deficiency by 
    submitting a complete corrective program. Moreover, if the 
    Administrator finds a lack of good faith on the part of the State of 
    Illinois, both sanctions under section 179(b) will apply after the 
    expiration of the 18-month period until the Administrator determined 
    that Illinois had come into compliance. In any case, if, six months 
    after application of the first sanction, Illinois still has not 
    submitted a corrective program that EPA has found complete, a second 
    sanction will be required.
        If EPA disapproves Illinois' complete corrective program, EPA will 
    be required to apply one of the section 179(b) sanctions on the date 18 
    months after the effective date of the disapproval, unless prior to 
    that date the State of Illinois has submitted a revised program and EPA 
    has determined that it corrected the deficiencies that prompted the 
    disapproval. Moreover, if the Administrator finds a lack of good faith 
    on the part of Illinois, both sanctions under section 179(b) shall 
    apply after the expiration of the 18-month period until the 
    Administrator determines that Illinois has come into compliance. In all 
    cases, if, six months after EPA applies the first sanction, Illinois 
    has not submitted a revised program that EPA has determined corrects 
    the deficiencies, a second sanction is required.
        In addition, discretionary sanctions may be applied where warranted 
    any time after the expiration of an interim approval period if Illinois 
    has not timely submitted a complete corrective program or EPA has 
    disapproved its submitted corrective program. Moreover, if EPA has not 
    granted full approval to the Illinois program by the expiration of this 
    interim approval and that expiration occurs after November 15, 1995, 
    EPA must promulgate, administer and enforce a Federal permits program 
    for Illinois upon interim approval expiration.
        Requirements for approval, specified in 40 CFR 70.4(b), encompass 
    section 112(l)(5) requirements for approval of a program for delegation 
    of section 112 standards as promulgated by EPA as they apply to Part 70 
    sources. Section 112(l)(5) requires that the State's program contain 
    adequate authorities, adequate resources for implementation, and an 
    expeditious compliance schedule, which are also requirements under part 
    70. Therefore, the EPA is also promulgating 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 Federal 
    standards as promulgated. This program for delegations only applies to 
    sources covered by the Part 70 program.
        The EPA is also promulgating approval of Illinois' federally 
    enforceable state operating permit program (FESOP) for the purposes of 
    creating federally enforceable limitations on the potential to emit of 
    Hazardous Air Pollutants (HAP) regulated under section 112 of the CAA. 
    The EPA is approving this program as meeting the criteria articulated 
    in the June 28, 1989, Federal Register notice for State operating 
    permit programs to establish limits federally enforceable on potential 
    to emit and the criteria established in section 112(l).
        The EPA is also promulgating approval of Illinois's preconstruction 
    permitting program found in 35 Ill. Adm. Code 201-203, under the 
    authority of title V and part 70 solely for the purpose of implementing 
    section 112(g) to the extent necessary during the period between final 
    promulgation of section 112(g) and adoption of any necessary State 
    rules to implement EPA's section 112(g) regulations. However, since the 
    approval is for the single purpose of providing a mechanism to 
    implement section 112(g) during the transition period, the approval 
    itself will be without effect if EPA decides in the final section 
    112(g) rule that sources are not subject to the requirements of the 
    rule until State regulations are adopted. Although section 112(l) 
    generally provides authority for approval of State air programs to 
    implement section 112(g), title V and section 112(g) provide authority 
    for this limited approval because of the direct linkage between 
    [[Page 12483]] the implementation of section 112(g) and title V. The 
    scope of this approval is narrowly limited to section 112(g) and does 
    not confer or imply approval for purposes of any other provision under 
    the Act, for example, section 110. The duration of this approval is 
    limited to 18 months following promulgation by EPA of section 112(g) 
    regulations, to provide Illinois adequate time for the State to adopt 
    any necessary regulations consistent with the Federal requirements.
    
    III. Administrative Requirements
    
    A. Docket
    
        Copies of the State's submittal and other information relied upon 
    for the final interim approval, including four public comments received 
    and reviewed by EPA on the proposal, are contained in a docket 
    maintained at the EPA Regional Office. The docket is an organized and 
    complete file of all the information submitted to, or otherwise 
    considered by, EPA in the development of this final interim approval. 
    The docket is available for public inspection at the location listed 
    under the ADDRESSES section of this document.
    
    B. Executive Order 12866
    
        The Office of Management and Budget has exempted this action from 
    Executive Order 12866 review.
    
    C. Regulatory Flexibility Act
    
        The EPA's actions under section 502 of the Act do not create any 
    new requirements, but simply address operating permits programs 
    submitted to satisfy the requirements of 40 CFR Part 70. Because this 
    action does not impose any new requirements, it does not have a 
    significant impact on a substantial number of small entities.
    
    D. Effective Date
    
        An administrative agency engaging in rulemaking must comport with 
    the requirements of section 553 of the Administrative Procedures Act (5 
    U.S.C.A., chapter 5). Section 553 requires that an agency allow at 
    least 30 days from the date of publication before the effective date of 
    a substantive rulemaking. If, however, good cause can be shown, then 
    the agency may impose an effective date of less than 30 days after 
    publication. Good cause exists to initiate an effective date less than 
    30 days after publication when it is in the public interest and the 
    shorter time period does not cause prejudice to those regulated by the 
    rule. British American Commodity Options Corp. v. Bagley, 552 F.2d 482, 
    at 488-89 (1977). For the reasons explained below, EPA believes that 
    good cause exists for the effective date of Illinois' CAAPP to be the 
    date of publication of this rulemaking.
        An immediate effective date is in the public's interest for several 
    reasons. The requirement for sources to submit CAAPP applications to 
    the State is contingent in the Illinois regulations upon the effective 
    date of the program, not the date of publication. All sources subject 
    to title V in Illinois must submit their title V applications to the 
    state within one year of the effective date of the State's program. 
    Likewise, the collection of fees, hiring of permit engineers and 
    analysis of applicants' permits cannot begin until the State's program 
    is effective. Illinois' program, therefore, should be adopted without 
    any further delay inasmuch as the public has been without the 
    protection of this comprehensive regulatory program and because any 
    further delay would not serve the public interest.
        Although it is in the public's interest to commence Illinois' title 
    V program upon the date of publication, EPA must ensure that this 
    action will not have any prejudicial effects upon the regulated 
    community. Rowell v. Andrus, 631 F.2d 699, at 702-703 (1980). For 
    example, EPA must ensure that the regulated community has sufficient 
    notice of this rulemaking and ample opportunity to comment. EPA 
    believes that all interested parties have had sufficient notice of this 
    rulemaking and ample time to comment. The development of the State's 
    CAAPP occurred over the last few years. As such, it contains a 
    combination of legislation and regulations. These regulations were all 
    previously subjected to public comment at the State level. The State's 
    legislation has been effective and fully enforceable as a matter of 
    State law since September 26, 1992, and the first set of State CAAPP 
    regulations became effective on June 10, 1993. Illinois' CAAPP program, 
    therefore, has been fully effective and enforceable as a matter of 
    State law for over the past year. In addition, EPA also subjected these 
    same regulations and legislation to public comment when it published 
    its proposed interim approval of the State's CAAPP on September 30, 
    1994. From the preceding facts, it is obvious that all interested 
    parties have had ample time both to participate in the rulemaking 
    process and to ready themselves to comply with this program.
    
    List of Subjects in 40 CFR Part 70
    
        Environmental Protection, Administrative practice and procedure, 
    Air pollution control, Intergovernmental relations, Operating permits, 
    Reporting and recordkeeping requirements.
    
        Dated: February 24, 1995.
    
    Valdas V. Adamkus,
    
    Regional Administrator.
    
    
        40 CFR part 70 is amended as follows:
    
    PART 70--[AMENDED]
    
        1. The authority citation for part 70 continues to read as follows:
    
        Authority: 42 U.S.C. sections 7401 et seq.
    
    
        2. Appendix A to part 70 is amended by adding the entry for 
    Illinois in alphabetical order to read as follows:
    
    Appendix A to Part 70--Approval Status of State and Local Operating 
    Permits Programs
    
    * * * * *
    
    Illinois
    
        (a) The Illinois Environmental Protection Agency: submitted on 
    November 15, 1993; interim approval effective on March 7, 1995; 
    interim approval expires March 7, 1997.
        (b) Reserved
    * * * * *
    [FR Doc. 95-5516 Filed 3-6-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Effective Date:
3/7/1995
Published:
03/07/1995
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final interim approval.
Document Number:
95-5516
Dates:
March 7, 1995.
Pages:
12478-12483 (6 pages)
Docket Numbers:
IL001, FRL-5164-6
PDF File:
95-5516.pdf
CFR: (1)
40 CFR 70