96-10094. Clean Air Act Final Interim Approval of the Federal Operating Permits Program; San Joaquin Valley Unified Air Pollution Control District  

  • [Federal Register Volume 61, Number 80 (Wednesday, April 24, 1996)]
    [Rules and Regulations]
    [Pages 18083-18088]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-10094]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 70
    
    [AD-FRL-5460-9]
    
    
    Clean Air Act Final Interim Approval of the Federal Operating 
    Permits Program; San Joaquin Valley Unified Air Pollution Control 
    District
    
    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 the California Air Resources Board on 
    behalf of the San Joaquin Valley Unified Air Pollution Control District 
    for the purpose of complying with Federal requirements which mandate 
    that States develop, and submit to EPA, programs for issuing operating 
    permits to all major stationary sources, and to certain other sources.
    
    EFFECTIVE DATE: May 24, 1996.
    
    ADDRESSES: Copies of the District's submittal and other supporting
    
    [[Page 18084]]
    
    information used in developing the proposed interim approval including 
    the Technical Support Document with response to comments are available 
    for inspection during normal business hours at the following location: 
    Operating Permits Section, A-5-2, Air and Toxics Division, U.S. EPA-
    Region IX, 75 Hawthorne Street, San Francisco, California 94105.
    
    FOR FURTHER INFORMATION CONTACT: Frances Wicher, (415) 744-1250, 
    Operating Permits Section, A-5-2, Air and Toxics Division, U.S. EPA-
    Region IX, 75 Hawthorne Street, San Francisco, California 94105.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background and purpose
    
    A. Introduction
    
        Title V of the Clean Air Act (the Act), and implementing 
    regulations at 40 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 one 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.
        On November 1, 1995, EPA proposed interim approval of the operating 
    permits program for the San Joaquin Valley Unified Air Pollution 
    Control District (San Joaquin Valley or District). See 60 FR 55516. The 
    EPA received comments on the proposal and has summarized its response 
    to the major comments in this notice and has fully responded to all 
    comments in the Technical Support Document (TSD) accompanying this 
    rulemaking. The TSD also 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 San 
    Joaquin Valley.
        In the November 1, 1995 proposal, EPA also proposed approval of the 
    San Joaquin Valley's Rule 2530 Federally Enforceable Potential to Emit 
    as a revision to San Joaquin Valley portion of the California State 
    Implementation Plan and under section 112(l) of the Act. In a separate 
    notice, EPA has taken final action to approve Rule 2530.
    
    II. Final Action and Implications
    
    A. Response to Comments
    
        EPA received comments from four groups during the comment period: 
    Caufield Enterprises (an independent oil producer in the southern San 
    Joaquin Valley), the Western States Petroleum Association (WSPA), 
    Chevron, and the San Joaquin Valley District. EPA's response to the 
    major comments is summarized below. A full response to each comment is 
    in the TSD.
    1. Stationary Source Definition
        The District's title V program defines stationary source by 
    combining elements of part 70's definitions of ``major source'' and 
    ``stationary source.'' The District's definition of stationary source, 
    which is common to both its title V program and its new source review 
    program, contains a provision applicable to any facility located 
    totally within the Western or Central Kern County Oil Fields or the 
    Fresno County Oil Field that is used for the production of light oil, 
    heavy oil or gas. This provision states that all sources under common 
    control or ownership within each field shall be considered a single 
    stationary source even if they are located on non-contiguous or 
    adjacent properties. This provision is more stringent than part 70; 
    however, the section also states that light oil production, heavy oil 
    production, and gas production shall constitute separate stationary 
    sources. Part 70's definition of ``major source'' requires aggregating 
    all emission points that belong to the same Major Group as described in 
    the Standard Industrial Classification (SIC) Manual. See Sec. 70.2 
    ``Major source.'' Light oil production, heavy oil production and gas 
    production are all in the same Major Group. EPA proposed as an interim 
    approval issue that the District either revise the SIC code exemption 
    in its definition of stationary source or show that it is as stringent 
    as part 70.
        The District stated that changing the definition of stationary 
    source from its historic usage in the new source review (NSR) program 
    would complicate permitting actions under title V. The District also 
    provided data that few emission units (and few emissions) would be 
    added to the program compared to the number of the units and emissions 
    that would be lost from the program if part 70's definition were used 
    to determine applicability. WSPA and Chevron also raised concerns 
    regarding changing from the historic NSR definition of stationary 
    source.
        EPA has reviewed the information provided by the San Joaquin 
    District on the number and type of additional emission units that would 
    be included should the District change to EPA's definition of major 
    source. These units are relatively few in number, have insignificant 
    emissions, are attached to otherwise major sources, and would for the 
    most part qualify for treatment as insignificant activities or 
    insignificant emission units. Overall, San Joaquin Valley's definition 
    of stationary source is neither inconsistent with nor less stringent 
    than EPA's definition of major source; therefore, EPA is removing the 
    proposed interim approval issue regarding it.
        Caufield Enterprises commented that the District's part 70 program 
    as proposed is in conflict with the Clean Air Act because both section 
    502 of the Act and Sec. 70.2 define a major source to be a contiguous 
    source while San Joaquin Valley's program combines non-contiguous 
    properties into a single source. The commenter stated that it was 
    immaterial whether this provision is stricter or less strict than 
    federal law since it was the intent of Congress to implement the title 
    V program uniformly throughout the United States and that allowing the 
    District to use a different definition for stationary source and major 
    source for title V permitting is inconsistent with this intent.
        EPA believes that it is the intent of Congress to require states to 
    implement operating permit programs that all contain certain minimum 
    elements. See section 502(b). EPA also believes that Congress did not 
    intend to bar States from establishing additional permitting 
    requirements provided that those requirements were not inconsistent 
    with the Act. See section 506(a).
        While it is true that section 501(2) of the Act defines major 
    source as ``any stationary source (or group of stationary sources 
    located within a contiguous area and under common control) * * * '', 
    this definition serves to define the sources Congress, at a minimum, 
    intended to be included in the program. The definition of major source 
    in section 501(2) does not define the only sources that a state may 
    include in its operating permit program. Clearly, states are allowed to 
    include a broader range of sources in their programs than the Act 
    nominally requires.
        San Joaquin Valley's definition of major source (which encompasses 
    its definition of stationary source in its NSR program) differs from 
    the definition of major source in section 501(2) by grouping all 
    sources within an oil field that are under common control or ownership 
    regardless of whether the sources are on contiguous or adjacent 
    properties. This provision of San
    
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    Joaquin's stationary source definition will bring into its part 70 
    program more sources than EPA's definition. On the other hand, the 
    provision does not effectively exclude any sources subject to title V 
    under the federal definition. As a result, the non-contiguous and non-
    adjacent requirement in San Joaquin Valley's definition constitutes an 
    additional permitting requirement that is not inconsistent with the Act 
    and is allowed by section 506(a) of the Act.
    2. Permit Terms for Model General Permits and Model General Permit 
    Templates
        Chevron, WSPA, and the District commented that model general 
    permits and model general permit templates should not be required to 
    have permit terms of five years or less as proposed in interim approval 
    issue 9. All three commenters recommended that these model permits have 
    indefinite terms and require revision only when an applicable 
    requirement changes or needs to be added. WSPA and Chevron noted that 
    if EPA or the District believes that a correction is needed in a model 
    permit/template then they have the ability to effect such a change and 
    modify all associated permits.
        Title V and part 70 requires all elements of part 70 permits, 
    whether or not they are based on model permits or permit templates, to 
    undergo public, affected state, and EPA review at least once every five 
    years. Rule 2520 sections 11.3.8, 11.7.6 and 11.7.7 limit public and 
    EPA comment to the applicability of the permit/template to a source and 
    thus prohibit public or EPA comment on the internal elements of a model 
    permit/template after that model permit/template is issued. In effect, 
    these provisions of the Rule bar regular public, affected state, and 
    EPA review of the conditions and terms of a source's part 70 permit 
    that are based on a model permit/template. The ability to comment on 
    the applicability of a model general permit or permit template does not 
    replace the ability to comment on the internal elements of that permit 
    because not all issues will be ones of applicability. Hence there is a 
    need to provide some mechanism to assure regular public, affected 
    state, and EPA review of the model general permits and permit 
    templates. Therefore, EPA is retaining this interim approval issue.
        In reviewing this issue, EPA did determine that it is not necessary 
    that the model general permits/permit templates to contain five-year 
    permit terms but rather that the District's part 70 program provide 
    some mechanism that requires regular public, affected state, and EPA 
    review of the internal provisions of each model general permit or 
    permit template at least once every five years. EPA, therefore, has 
    revised the interim approval issue.
        EPA does not argue with the commenters that EPA has the ability to 
    reopen model permits/templates when necessary, but this ability does 
    not replace the requirement for regular public and affected state 
    review. EPA would also note that regulatory changes are not the sole 
    reason why model general permits/permit templates may need to be 
    changed.
    3. Permit Shield Provision for General Permits and Permit Templates
        Proposed interim approval issue 15 required that Rule 2520 be 
    revised to state, as required by Sec. 70.6(d), that, notwithstanding 
    the permit shield provisions, if a source that is operating under a 
    general permit is later determined not to qualify for the terms and 
    conditions of that general permit, then the source is subject to 
    enforcement action for operation without a part 70 permit. The District 
    declined to revise Rule 2520 to add this language arguing it was 
    unnecessary because its general permit provisions are more stringent 
    than part 70. The District noted that any general permit obtained by a 
    source under Rule 2520 would include qualification criteria and the 
    applicable requirements, thus any deviation from the general permit 
    should be treated like any other part 70 permit violation.
        EPA agrees that the District's general permit provisions are 
    different from the provisions in part 70 in that the District's program 
    gives each source a part 70 permit derived from the model general 
    permit rather than issuing one permit that applies to multiple sources. 
    EPA, however, is retaining this interim approval issue.
        At issue is not whether a source is complying with the terms of its 
    permit but rather whether the permit the source has is the correct 
    permit for that source. A source that applies to use a model general 
    permit and receives a permit based on that model when it does not 
    qualify is not substantially different from a source that fails to 
    apply for and receive any permit because both sources do not have 
    permits applicable to them. The former source may appear to have a 
    permit and may appear to comply with some of the terms of that permit, 
    but, because the permit was not crafted for that source, there is in 
    fact no valid permit with which to comply. The source should be treated 
    as operating without a part 70 permit rather than not operating in 
    compliance with a part 70 permit.
        Chevron and WSPA requested clarification that this interim approval 
    issue does not carry over into the application and use of general 
    permit templates. The commenters noted that a general permit template 
    is only a partial coverage for certain emission units. The commenters 
    also recommended extending this concept to general permits in cases 
    where the non-applicability represents failure to properly manage 
    change at the facility, in contrast to a misrepresentation of the 
    source at the time of permit application.
        EPA agrees with the commenters and has clarified the interim 
    approval issue. If a general permit template is later determined not to 
    be applicable to the sources then the emission units or the portion of 
    the facility that was covered by the terms of the general permit 
    template would be subject to enforcement action for operating without a 
    title V permit and the balance of the facility, where the permit 
    remains in force, would not be subject to the enforcement action.
        EPA does not believe there is any need to extend this concept to 
    general permits where the source modifies so as to no longer qualify 
    for the general permit. EPA interprets the requirement in Sec. 70.6(d) 
    to apply only to sources that misrepresented their qualifications for a 
    general permit at the time of initial issuance or renewal.
    4. Other Comments
        The District addressed each of EPA's 17 proposed interim approval 
    issues and in most cases stated it would propose language changes to 
    Rule 2520 to address the interim approval issue. EPA appreciates the 
    District's responses on these issues. For several interim approval 
    issues, the District stated that it did not believe Rule revisions were 
    warranted. These issues are discussed below. Please note that the issue 
    numbers reflect those in the proposal and not the revised numbering in 
    this notice.
        Interim Approval Issue 9: Clarify minor source applicability. The 
    District believes that section 2.4 of Rule 2520 clearly applies only to 
    area sources and that it is not necessary to clarify the sentence in 
    section 2.4 that ``[o]nly the affected emissions units within the 
    stationary source shall be subject to part 70 permitting requirements'' 
    applies only to stationary sources that are also area sources. The 
    District noted that any major source subject to an NSPS would be 
    subject to title V permitting by its major source status.
        EPA agrees with the District that any major source regulated under 
    an NSPS or section 112 standard would be
    
    [[Page 18086]]
    
    subject to the District's rule under the major source requirement in 
    section 2.3 of Rule 2520; however, it is also true that such a source 
    would also be subject to Rule 2520 under the ``subject to an NSPS or 
    112 standard'' requirement in section 2.4. In fact, it will be common 
    for sources to be subject to the District's rule on a number of grounds 
    (e.g., a major source subject to an NSPS). Therefore, the exclusivity 
    of section 2.4 to area sources is not inherent in the rule. In 
    addition, section 2.4 of Rule 2520 parallels the language of 
    Sec. 70.3(a)(3) which reads ``any source, including an area source, 
    subject to a standard * * *''. EPA does not interpret Sec. 70.3(a)(3) 
    to apply only to area sources and would not agree that section 2.4 
    applies only to area sources. EPA is therefore retaining this interim 
    approval issue.
        Interim Approval Issue 10: Review and public notice municipal waste 
    incinerator permits every five years, even in the event that permit 
    expiration may be every 12 years. The District noted that 
    Sec. 70.6(a)(2) does require that the District review permits for 
    municipal waste incinerators every five years, but it does not require 
    public notice and comment.
        Part 70 does not fully repeat the Act's requirement that title V 
    permits for municipal waste incinerators be subject to public review 
    every five years. The requirement is a provision of section 129(e) of 
    the Act and not of title V. Section 129(e) of the Act requires that all 
    municipal waste incinerators obtain title V permits and that those 
    permits may have a permit term of up to 12 years, shall be reviewed 
    every 5 years, and shall remain in effect until the date of 
    termination, unless EPA or the permitting authority determines that the 
    unit is not in compliance with all standards and conditions contained 
    in the permit. Under section 129(e), such determination shall be made 
    at regular intervals during the term of the permit, such intervals not 
    to exceed five years, and only after public comment and public hearing. 
    Based on the explicit language of section 129(e) requiring public 
    comment and hearing, EPA is retaining this interim approval issue.
        Interim Approval Issue 12: Allow trading of emission increases and 
    decreases without a case-by-case review to the extent allowed by an 
    applicable requirement, and not merely those allowed by Rule 2301. The 
    District commented that District Rule 2301, ``Emission Reduction Credit 
    Banking'' states that the rule is applicable to all transfers or uses 
    of emission reduction credits in the San Joaquin Valley, and that the 
    District does not propose to change this provision. The District also 
    commented that the permit terms will identify circumstances under which 
    credits can be transferred without a case-by-case review, that under 
    these circumstances, the language in Rule 2520 which requires that 
    emission reduction transfers be consistent with Rule 2301 is 
    appropriate, and that the District does not propose to change it.
        EPA notes that proposed interim approval issue 12 did not address 
    the part of Rule 2520, section 9.12 that restricts the use of emission 
    reduction credits. Rather, this interim approval issue addresses the 
    first provision in section 9.12 that restricted terms and conditions in 
    a permit for the trading of emission increases and decreases in the 
    permitted facility to those allowed by Rule 2201. Section 70.6(a)(10) 
    requires permitting authorities to include terms for emission trading 
    without case-by-case approvals to the extent applicable requirements 
    allow them. EPA's interim approval issue is to remove Rule 2520's 
    restriction to Rule 2201 and expand it to encompass any applicable 
    requirement, such as the Hazardous Organic NESHAP, that allows for 
    emission trading without case-by-case approval. EPA, therefore, is 
    retaining this interim approval issue but is clarifying that it does 
    not affect the emission reduction credit provisions in Rule 2520, 
    section 9.12.
        Interim Approval Issue 13: Require a schedule of compliance be 
    included in the permit even if the source is in compliance with all 
    applicable requirements. The District argues, based on language in part 
    70 and title V, that neither title V nor part 70 requires that each 
    permit issued contain a schedule of compliance unless the source is in 
    non-compliance.
        The District is correct in stating that Sec. 70.6(c)(3) merely 
    requires that a permit contain a schedule of compliance consistent with 
    Sec. 70.5(c)(8); that Sec. 70.5(c)(8) requires a compliance plan be 
    submitted with the application, part of which is a compliance schedule; 
    and finally that Sec. 70.5(c)(8)(iii) lists what constitutes a 
    compliance schedule and that for non-complying source, this is the 
    ``schedule of compliance'' in Sec. 70.5(c)(8)(iii)(C).
        The District is also correct in stating that section 504 of the Act 
    requires that ``each permit issued under this title shall include * * * 
    a schedule of compliance * * *'' However, the District is not correct 
    in stating that facilities are not required to submit a schedule of 
    compliance with their applications unless they are out of compliance. 
    Section 503 clearly requires all permit applications, without regard to 
    the source's compliance status, to include a ``compliance plan 
    describing how the source will comply with all applicable requirements 
    * * *'' and that the ``[c]ompliance plan shall include a schedule of 
    compliance * * *''.
        Part 70 and the Act need to be read with the understanding that the 
    terms ``compliance schedule'' and ``schedule of compliance'' are 
    synonymous. With this understanding, it is clear that all sources, 
    complying and non-complying, must include a schedule of compliance 
    (i.e., a compliance schedule) in their applications and that all 
    permits must have schedules of compliance (i.e., compliance schedules) 
    in them. For complying sources and sources that have future-effective 
    applicable requirements, the compliance schedule is a simple statement 
    that the source will continue to comply or will comply in a timely 
    manner. Only for non-complying sources are there detailed requirements 
    for the contents of a schedule of compliance. Given the requirements of 
    the Act and part 70, EPA is retaining this interim approval issue.
    
    B. Interim Approval
    
        The EPA is promulgating interim approval of the operating permits 
    program submitted by the California Air Resources Board on behalf of 
    the San Joaquin Valley Unified Air Pollution Control District on July 3 
    and August 17, 1995, and supplemented on September 6 and 21, 1995. The 
    District or the State must make the following changes to receive full 
    approval:
        (1) Revise the applicability language in Rule 2520 2.2 and the 
    definitions of Major Air Toxics Source (Rule 2520 3.18) and Major 
    Source (Rule 2520 3.19) to be consistent with the Act and part 70 to 
    cover sources that emit at major source levels.
        (2) Limit the exemption for non-major sources in Rule 2520 4.1 so 
    that it does not exempt non-major sources that EPA determines, upon 
    promulgation of a section 111 or 112 standard, must obtain title V 
    permits. Sec. 70.3(b)(2)
        (3) Revise Rule 2520 7.1.3.2 to eliminate the requirement that 
    fugitive emission estimates need only be submitted in the application 
    if the source is in a source category identified in the major source 
    definition in 40 CFR part 70.2. See Sec. 70.3(d).
        (4) Revise Rule 2520 to provide that unless the District requests 
    additional information or otherwise notifies the applicant of 
    incompleteness within 60 days of receipt of an application, the 
    application shall be deemed complete. See Secs. 70.5(a)(2) and 
    70.7(a)(4).
    
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        (5) Revise Rule 2520 sections 11.1.4.2 and 11.3.1.1 and Rule 2201 
    5.3.1.1.1 to include notice ``by other means if necessary to assure 
    adequate notice to the affected public.'' See Sec. 70.7(h)(1).
        (6) Revise Rule 2520's permit issuance procedures to provide for 
    notifying EPA and affected states in writing of any refusal by the 
    District to accept all recommendations for the proposed permit that an 
    affected state submitted during the public/affected state review 
    period. See Sec. 70.8(b)(2).
        (7) Either delete section 11.7.5 in Rule 2520 and section 5.3.1.8.5 
    in Rule 2201, which purport to limit the grounds upon which EPA may 
    object to a permit to compliance with applicable requirements, or 
    revise them to be fully consistent with Sec. 70.8(c).
        EPA's authority to object to issuance of permits derives from 
    section 505(b) of the Act. No state or local agency may restrict 
    authorities granted EPA under the Clean Air Act; therefore, EPA views 
    section 11.7.5 of Rule 2520 and Section 5.3.1.8.5 of Rule 2201 as not 
    binding upon its actions. EPA will exercise its authority to object to 
    permits consistent with Sec. 70.8(c) and without regard to the 
    restriction on that authority in San Joaquin's title V program. Should 
    the District issue a permit to which EPA has objected and the District 
    has not revised or reissued to meet the objection, EPA will consider 
    the permit invalid and will require the District to revise and reissue 
    the proposed permit or will revoke, revise, and reissue the permit 
    itself. EPA has made these revisions to Rule 2520 an interim approval 
    issue in order to ensure that the Rule 2520 clearly states EPA's 
    authority to object to permits.
        (8) Revise Rule 2520 2.4 to clarify that the sentence in section 
    2.4 that ``[o]nly the affected emissions units within the stationary 
    source shall be subject to part 70 permitting requirements'' applies 
    only to stationary sources that are also area sources.
        (9) Revise Rule 2520 8.1 to provide that each model general permit 
    and model general permit templates will be subject to public, affected 
    state, and EPA review consistent with initial permit issuance at least 
    once every 5 years.
        (10) Revise Rule 2520 8.1 to provide that any permit for a solid 
    waste incineration unit that has a permit term of more than 5 years 
    shall be subject to review, including public notice and comment, at 
    least once every five years. See Sec. 70.6(a)(2).
        (11) Revise Rule 2520 13.2.3 to state that the permit shield will 
    apply only to requirements addressed in the permit. EPA will not 
    consider a source shielded from an enforcement action for failure to 
    comply with an applicable requirement if that applicable requirement is 
    addressed only in the written reviews supporting permit issuance and 
    not in the permit. Further, EPA will veto any permit that extends the 
    permit shield to conditions, terms, or findings of non-applicability 
    that are not included in the permit.
        (12) Revise Rule 2520 9.12 to require the permit contain terms and 
    conditions for the trading of emission increases and decreases in the 
    permitted facility to the extent that any applicable requirement 
    provides for such trading without case by case approval. The District 
    may limit transfers of emission reduction credits in accordance with 
    District Rules 2201 and 2301. Sec. 70.6(a)(10)
        (13) Revise Rule 2520, Section 9.0 (permit content) to include the 
    Sec. 70.6(c)(3) requirement for schedules of compliance for applicable 
    requirements for which the source is in compliance or that will become 
    effective during the permit term. During the interim period, the 
    District should incorporate compliance schedules, as required by 
    Sec. 70.6(c)(3), into all issued permits.
        (14) Revise Rule 2520 to treat changes made under the prevention of 
    significant deterioration (PSD) provisions of the Act and EPA' PSD 
    regulations in the same manner as ``title I modifications'' as that 
    term is defined in Rule 2520 and Rule 2201.
        (15) Revise Rule 2520 to state that, notwithstanding the permit 
    shield provisions, if a source that is operating under a general permit 
    or general permit template is later determined not to qualify for the 
    terms and conditions of that general permit or template, then the 
    source is subject to enforcement action for operation without a part 70 
    permit. For sources operating under a general permit template, if a 
    source is later determined not to qualify for the template, only the 
    portion of the facility covered by the template shall be subject to 
    enforcement action for operation without a part 70 permit. See 
    Sec. 70.6(d).
        (16) Because California State law currently exempts agricultural 
    production sources from permit requirements, CARB has requested source 
    category-limited interim approval for all California districts. EPA is 
    granting source category-limited interim approval to the San Joaquin 
    program. In order for this program to receive full approval, the Health 
    and Safety Code must be revised to eliminate the exemption of 
    agricultural production sources from the requirement to obtain a title 
    V permit. Once the California statute has been revised, the District 
    must also revise its permit exemption rules to eliminate any blanket 
    exemption granted agricultural sources.
        This interim approval, which may not be renewed, extends until May 
    25, 1998. During this interim approval period, the State is protected 
    from sanctions for failure to have a program, and EPA is not obligated 
    to promulgate a Federal permits program in the District. Permits issued 
    under a program with interim approval have full standing with respect 
    to Part 70, and the one-year time period for submittal of permit 
    applications by subject sources begins upon the effective date of 
    interim approval, as does the three-year time period for processing the 
    initial permit applications.
        If the District fails to submit a complete program through the 
    State for full approval by November 24, 1997, EPA will start an 18-
    month clock for mandatory sanctions. If the District fails to submit a 
    complete program before the expiration of that 18-month period, EPA 
    would impose sanctions. If EPA disapproves the District's corrective 
    program, and has not granted full approval within 18 months after the 
    disapproval, then EPA must impose mandatory sanctions. In both cases, 
    if the District has not come into compliance within 6 months after EPA 
    applies the first sanction, a second sanction is required. In addition, 
    discretionary sanctions may be applied where warranted any time after 
    the end of the interim approval period. If the EPA has not granted full 
    approval to the District program by May 25, 1998, EPA must promulgate, 
    administer, and enforce a Federal permits program for San Joaquin 
    Valley.
    
    C. District Program Implementing Section 112(g)
    
        EPA is approving the use of San Joaquin Valley's preconstruction 
    review program (Rule 2201) as a mechanism to implement section 112(g) 
    during the transition period between promulgation of EPA's section 
    112(g) rule and adoption by San Joaquin Valley of rules specifically 
    designed to implement section 112(g). EPA is limiting the duration of 
    this approval to 18 months following promulgation by EPA of the section 
    112(g) rule.
    
    D. Program for Delegation of Section 112 Standards as Promulgated
    
        Requirements for part 70 program 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)
    
    [[Page 18088]]
    
    requires that the District'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 promulgating approval under section 112(l)(5) and 40 CFR 63.91 of 
    San Joaquin Valley's program for receiving delegation of section 112 
    standards that are unchanged from the federal standards as promulgated. 
    This program for delegations applies to both existing and future 
    standards but is limited to sources covered by the part 70 program.
    
    III. Administrative Requirements
    
    A. Docket
    
        Copies of the District's submittal and other information relied 
    upon for the final interim approval, including all comments received on 
    the proposal and EPA's responses to those comments, are contained in 
    docket number CA-SJV-95-001 maintained at the EPA Regional Office. 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 action under section 502 of the Act does not create any 
    new requirements but simply addresses the operating permits program 
    developed and submitted by the San Joaquin Valley District to meet the 
    requirements of 40 CFR part 70. EPA evaluated the impact on small 
    businesses of the title V operating permit program as part of its 
    promulgation of part 70 and determined that operating permit programs 
    required by part 70 would not have a significant economic impact on a 
    substantial number of small business and no Regulatory Flexibility Act 
    analysis was necessary.
    
    D. Unfunded Mandates Act
    
        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 
    the 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 promulgated today 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 and therefore, no budgetary 
    impact statement is necessary.
    
    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: April 10, 1996.
    Felicia Marcus,
    Regional Administrator.
    
        Part 70, title 40 of the Code of Federal Regulations is amended as 
    follows:
    
    PART 70--[AMENDED]
    
        1. The authority citation for part 70 continues to read as follows:
    
        Authority: 42 U.S.C. 7401, et seq.
    
        2. Appendix A to part 70 is amended by adding paragraph (y) to the 
    entry for California to read as follows:
    
    Appendix A to Part 70--Approval Status of State and Local Operating 
    Permits Programs
    
    * * * * *
    
    California
    
    * * * * *
        (y) San Joaquin Valley Unified APCD (complete submittal received on 
    July 5 and August 18, 1995); interim approval effective on May 24, 
    1996; interim approval expires May 25, 1998.
    
    * * * * *
    [FR Doc. 96-10094 Filed 4-23-96; 8:45 am]
    BILLING CODE 6560-50-W
    
    

Document Information

Effective Date:
5/24/1996
Published:
04/24/1996
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final Interim Approval.
Document Number:
96-10094
Dates:
May 24, 1996.
Pages:
18083-18088 (6 pages)
Docket Numbers:
AD-FRL-5460-9
PDF File:
96-10094.pdf
CFR: (5)
40 CFR 70.3(a)(3)
40 CFR 70.6(a)(2)
40 CFR 70.5(c)(8)
40 CFR 70.6(c)(3)
40 CFR 70.6(d)