95-12474. Clean Air Act Proposed Interim Approval of Operating Permits Program; Indiana  

  • [Federal Register Volume 60, Number 98 (Monday, May 22, 1995)]
    [Proposed Rules]
    [Pages 27064-27069]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-12474]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 70
    
    [IN001; FRL-5209-6]
    
    
    Clean Air Act Proposed Interim Approval of Operating Permits 
    Program; Indiana
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed interim approval.
    
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    SUMMARY: The EPA proposes interim approval of the operating permits 
    program submitted by Indiana 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.
    
    DATES: Comments on this proposed action must be received in writing by 
    June 21, 1995. Comments should be addressed to the contact indicated 
    below.
    
    ADDRESSES: Copies of the State's submittal and other supporting 
    information used in developing the proposed interim approval are 
    available for inspection during normal business hours at the following 
    location: EPA Region 5, 77 West Jackson Boulevard, AR-18J, Chicago, 
    Illinois 60604. Please [[Page 27065]] contact Sam Portanova at (312) 
    886-3189 to arrange a time if inspection of the submittal is desired.
    
    FOR FURTHER INFORMATION CONTACT: Sam Portanova, AR-18J, 77 West Jackson 
    Boulevard, Chicago, Illinois 60604, (312) 886-3189.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background and Purpose
    
        As required under Title V of the Clean Air Act (``the Act'') as 
    amended (1990), EPA has promulgated regulations which define the 
    minimum elements of an approvable State operating permits program and 
    the corresponding standards and procedures by which the EPA will 
    approve, oversee, and withdraw approval of State operating permits 
    programs (see 57 FR 32250 (July 21, 1992)). These regulations are 
    codified at 40 Code of Federal Regulations (CFR) part 70. Title V 
    requires States to develop, and submit to EPA, programs for issuing 
    these operating permits to all major stationary sources and to certain 
    other sources.
        The Act requires that States develop and submit these programs to 
    EPA by November 15, 1993, and that EPA act to approve or disapprove 
    each program within 1 year after receiving the submittal. 40 CFR 
    70.4(e)(2), however, allows the Administrator to extend the review 
    period of a State's submittal if the State's submission is materially 
    altered during the 1-year review period. This additional review period 
    may not extend beyond 1 year following receipt of the revised 
    submission.
        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.
    
    II. Proposed Action and Implications
    
    A. Analysis of State Submission
    
        The EPA is proposing to grant interim approval to the operating 
    permits program submitted by Indiana on August 10, 1994. Indiana's 
    program substantially meets the requirements of part 70; however, 
    certain issues must be addressed in the State's submittal before EPA 
    can grant full approval. This notice will outline the corrections 
    necessary for full approval.
        For more detailed information on the analysis of the State's 
    submission, please refer to the part 70 Operating Permits Program 
    Review Checklist and technical support document (TSD) included with the 
    docket of this interim approval.
    1. Support Materials
        An August 5, 1994, letter from Kathy Prosser, Commissioner of the 
    Indiana Department of Environmental Management (IDEM), to Valdas V. 
    Adamkus, Regional Administrator of EPA Region 5, accompanying the 
    State's submittal, names the IDEM as the state agency responsible for 
    the administration of Indiana's Title V operating permit program 
    throughout the entire state.
        The Indiana Title V submittal contains all the elements required by 
    40 CFR 70.4(b). Also included in the State's submittal is a narrative 
    description of the State's program summarizing how the State will meet 
    the requirements of part 70 and a legal opinion from Pamela Carter, 
    Attorney General of the State of Indiana, certifying that the legal 
    authority exists for the State to administer and enforce the Title V 
    program.
        The State's Title V program regulations are found in the Indiana 
    Administrative Code (IAC) under 326 IAC 2-7. Although the Indiana Title 
    V submittal contains regulations other than 326 IAC 2-7, this notice is 
    only taking action on 326 IAC 2-7. Supporting legislative authority is 
    found in the Indiana Code (IC) under IC 4-21, IC 5-14, IC 13-1, IC 13-
    6, and IC 13-7.
    2. Regulations and Program Implementation
    
    a. Applicability
    
        The Indiana program meets the requirements of 40 CFR 70.2 and 70.3 
    for applicability in 326 IAC 2-7-2. Please refer to the TSD, included 
    with the docket of this interim approval, for more information 
    regarding the language in 326 IAC 2-7-2.
    
    b. Permit Applications
    
        The Indiana program, in 326 IAC 2-7-4, substantially meets the 
    requirements of 40 CFR 70.5 for permit applications. The Indiana 
    program submittal also includes complete permit application forms.
        A deficiency in the State's permit application requirements exists, 
    however, concerning insignificant activities, which are defined in 326 
    IAC 2-7-1(20). The following are the insignificant activity threshold 
    levels for the Indiana program:
    
    5 pounds per hour (lb/hr) or 25 pounds per day (lb/day) of 
    particulate matter (PM);
    10 lb/hr or 50 lb/day of sulfur dioxide (SO2);
    5 lb/hr or 25 lb/day of nitrogen oxides (NOX);
    3 lb/hr or 15 lb/day of volatile organic compounds (VOC);
    25 lb/day of carbon monoxide (CO);
    0.6 tons per year (tpy) or 3.29 lb/day of lead or lead compounds 
    measured as elemental lead.
    
        A source must meet both emission levels (i.e., lb/hr and lb/day) to 
    qualify for the exemption. These levels equal a maximum potential of 
    2.74 tpy of VOC, 4.56 tpy of CO, NOX, and PM, and 9.13 tpy of 
    SO2. In addition, 326 IAC 2-1-1(b)(1)(H) exempts modifications to 
    major sources of hazardous air pollutants (HAP) which will increase 
    allowable emissions by less than 4 tpy for one HAP or 10 tpy of any 
    combination of HAPs from the Title V program.
        EPA is granting full approval to the VOC, CO, NOX, and PM 
    insignificant activity levels. EPA is granting interim approval to the 
    SO2 and HAP insignificant activity levels. If EPA's concerns for 
    the SO2 and HAP levels are addressed in the State's final 
    regulations before final action on this notice, then EPA can fully 
    approve Indiana's SO2 and HAP insignificant activities. 
    Alternatively, if the State does not address EPA's concerns before 
    final action on this notice, then EPA's final action will include an 
    interim approval on this issue. The rationale for the interim approval 
    status is provided in the TSD included with the docket of this interim 
    approval.
    c. Permit Issuance, Renewal, Reopenings and Revisions
    
        The Indiana program meets the requirements of 40 CFR 70.7 and 70.8 
    for permit issuance, renewal, reopenings, and public participation and 
    the requirements of 40 CFR 70.4(b)(12) for operational flexibility. 
    Please refer to the TSD, included with the docket of this interim 
    approval, for more information regarding the language in 326 IAC 2-7-11 
    for administrative permit amendments.
        An interim approval issue exists, however, with respect to the 
    State's threshold levels for group processing of permits. The Indiana 
    program's threshold level for minor permit modification (MPM) group 
    processing eligibility is not as stringent as the part 70 threshold 
    level. According to 326 IAC 2-7-12(c)(1)(B), Indiana's thresholds are:
    
    PM = 5 lb/hr or 25 lb/day (4.56 tpy)
    SO2 = 10 lb/hr or 50 lb/day (9.13 tpy)
    NOX = 5 lb/hr or 25 lb/day (4.56 tpy)
    VOC = 3 lb/hr or 15 lb/day (2.74 tpy) [[Page 27066]] 
    CO = 25 lb/hr or 125 lb/day (22.81 tpy)
    Lead = 0.6 tpy
    HAP = 4 tpy of one HAP/10 tpy of any combination of HAPs
    
        40 CFR 70.7(e)(3)(i) states that the threshold for allowing group 
    processing of permit modifications are modifications that collectively 
    emit: 10 percent of the emissions allowed by the permit for the unit 
    for which the change is requested; or 20 percent of the applicable 
    definition of major source; or 5 tons per year; whichever is least. EPA 
    is proposing interim approval for the Indiana threshold levels. To 
    obtain full approval, Indiana must establish a group processing 
    threshold consistent with 40 CFR 70.7(e)(3)(i) or demonstrate that an 
    alternative threshold would alleviate severe administrative burden and 
    would result in trivial environmental impact. If EPA's concerns are 
    addressed by a change in the State's final regulations or by a State 
    demonstration before final action on this notice, then EPA can fully 
    approve the State's group processing threshold levels. Alternatively, 
    if the State does not address EPA's concerns before final action on 
    this notice, then EPA's final action will include an interim approval 
    on this issue.
    
    d. Permit Content
    
        Another major component of Indiana's program concerns the contents 
    of a Title V permit. The program substantially meets the requirements 
    of 40 CFR 70.6. A Title V permit will incorporate applicable 
    requirements of existing State Implementation Plans (SIP), as well as 
    any future applicable requirements promulgated by EPA. Authority exists 
    in 326 IAC 2-7-13 to develop general permits covering numerous similar 
    sources, except for sources subject to the Acid Rain Program. These 
    general permits are targeted for future development.
        326 IAC 2-7-5(1)(F) states that emission limitations applicable to 
    start-up, shutdown and emergency bypasses shall be addressed on a case-
    by-case basis in the permit. Sources that request these limitations 
    must do so in their Title V permit application. In response to EPA's 
    concern that such a provision could be interpreted to enable the State 
    to issue a permit which would violate a SIP requirement, Indiana has 
    provided assurance that it will issue only those permits that comply 
    with all applicable requirements of the Indiana SIP. See letter of 
    April 28, 1995, from Kathy Prosser, Commissioner of the Indiana 
    Department of Environmental Management, to Valdas Adamkus, Regional 
    Administrator, EPA, Region 5.
        Another component of permit content is the length of time in which 
    a source must notify the permitting authority to report a deviation 
    from a permit condition. Part 70 of the operating permits regulations 
    requires prompt reporting of deviations from the permit requirements. 
    40 CFR 70.6(a)(3)(iii)(B) requires the permitting authority to define 
    ``prompt'' in relation to the degree and type of deviation likely to 
    occur and the applicable requirements. Although the permit program 
    regulations should define ``prompt'' for purposes of administrative 
    efficiency and clarity, an acceptable alternative is to define the term 
    in each individual permit. Prompt reporting, however, must be more 
    frequent than the semiannual reporting requirement, given this is a 
    distinct reporting obligation under 40 CFR 70.6(a)(3)(iii)(A). Indiana 
    addresses the issue of prompt reporting in 326 IAC 2-7-5(3)(C)(ii). 
    Because Indiana did not actually define ``prompt,'' EPA may veto 
    permits that do not contain sufficiently prompt reporting requirements 
    for deviations. EPA and Indiana will address the appropriate definition 
    of ``prompt'' in the Implementation Agreement that will be developed 
    for the Indiana program.
    
    e. Public and EPA Comment Periods
    
        326 IAC 2-7-18 provides for the public comment period for a draft 
    permit and the EPA review of a proposed permit to occur concurrently. 
    EPA will receive a copy of a draft permit when it is issued for a 30-
    day comment period for the public and affected States.
        If comments are received, but the State does not change the permit, 
    the State will notify EPA and send to EPA a signed copy of the draft 
    permit that will then be the proposed permit. EPA has up to 15 days 
    after the receipt of the proposed permit to notify the State if it 
    wishes to have a full 45-day review period for the proposed permit. 
    Otherwise, EPA's comment period ends 45 days after it first receives 
    the draft permit. Please refer to the TSD, included with the docket of 
    this interim approval, for more information regarding Indiana's public 
    comment procedures.
    
    f. Enforcement
    
        The Indiana program meets the enforcement authority requirements of 
    40 CFR 70.11. The Indiana statute addresses these requirements in IC 
    13-7-5, 13-7-11, 13-7-12, and 13-7-13. The Indiana Attorney General's 
    legal opinion certifies that the Indiana statue adequately meets the 
    requirements of 40 CFR 70.11.
    3. Permit Fee Demonstration
        According to 326 IAC 2-7-19, Indiana will charge part 70 sources a 
    $1500 flat fee plus $33 per ton of actual emissions of each regulated 
    pollutant. If the source emits over 100 tpy of both VOC and NOX 
    and is located in Lake or Porter County, it shall not pay more than 
    $200,000 in Title V fees. All other sources shall not pay more than 
    $150,000. Sources will have to pay 50 percent of this amount in 1994 
    and 75 percent of this amount in 1995. The dollar amounts will be 
    adjusted by the Consumer Price Index beginning in 1996. Indiana has 
    demonstrated in the Title V program submittal that its fee schedule 
    will collect adequate fees to satisfy the EPA presumptive minimum 
    amount beginning in 1996.
        Indiana's fee schedule for 1995 will be $24.75 per ton of emissions 
    plus a $1,125 flat fee per source. This is below the EPA presumptive 
    minimum fee amount. Indiana's program, however, will be in effect for 
    only a portion of 1995 and Indiana has demonstrated that it will 
    provide enough of the 1995 fee schedule for the post-program approval 
    period to meet the EPA presumptive minimum amount. Please refer to the 
    TSD, included with the docket of this interim approval, for more 
    information regarding the State's fee demonstration.
    4. Provisions Implementing the Requirements of Other Titles of the Act
    
    a. Authority and/or Commitments for Section 112 Implementation
    
        Indiana has demonstrated in its Title V program submittal adequate 
    legal authority to implement and enforce all section 112 requirements 
    through Title V permits. This legal authority is contained in Indiana's 
    enabling legislation and in regulatory provisions defining ``applicable 
    requirements'' and stating that the permit must incorporate all 
    applicable requirements. EPA has determined that this legal authority 
    is sufficient to allow Indiana to issue permits that assure compliance 
    with all section 112 requirements.
        The EPA is accepting the above legal authority as an adequate 
    demonstration that Indiana is able to carry out all section 112 
    activities relative to Title V sources. For further rationale on this 
    interpretation, please refer to the TSD accompanying this rulemaking 
    and the April 13, 1993, guidance memorandum titled ``Title V Program 
    Approval Criteria for section 112 activities,'' signed by John Seitz, 
    Director of the Office of Air Quality Planning and Standards. 
    [[Page 27067]] 
    
    b. Implementation of section 112(g) Upon Program Approval
    
        As a condition of approval of the Title V program, Indiana is 
    required to implement section 112(g) of the Act. Indiana has 
    promulgated a ``MACT Rule'' in 326 IAC 2-1-3.3. The purpose of this 
    regulation is to provide Indiana the necessary mechanism to implement 
    section 112(g). 326 IAC 2-1-3.3(e) states that permit conditions 
    necessary to implement the provisions of 326 IAC 2-1-3.3 shall be 
    established in 326 IAC 2-1-3. 326 IAC 2-1-3 is the Indiana NSR 
    construction permit regulation, which has been approved into the 
    Indiana SIP. 326 IAC 2-1-3.3 applies to new or reconstructed sources 
    emitting greater than 10 tpy of a HAP or 25 tpy of any combination of 
    HAPs. The regulation also applies to modifications to HAP sources which 
    emit 4 tpy of one HAP or 10 tpy of any combination of HAPs.
        According to the Federal Register notice published on February 14, 
    1995, 60 FR 8333, the requirements of section 112(g) will not become 
    effective until after EPA has promulgated a regulation addressing that 
    provision. The Federal Register notice sets forth in detail the 
    rationale for this interpretation. At the time of Indiana's program 
    submittal and EPA's subsequent review period, EPA has not promulgated a 
    federal regulation containing the specific requirements of section 
    112(g).
        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 regulation so as 
    to allow States time to adopt regulations implementing the Federal 
    regulation, 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), Indiana must be able 
    to implement section 112(g) during the period between promulgation of 
    the Federal section 112(g) regulation and adoption of implementing 
    State regulations. Imposition of case-by-case determinations of maximum 
    achievable control technology (MACT) or offsets under section 112(g) 
    will require the use of a mechanism for establishing federally 
    enforceable restrictions on a source-specific basis.
        For this reason, EPA is proposing approval of Indiana's MACT 
    regulation (326 IAC 2-1-3.3) under the authority of Title V and part 70 
    solely for the purpose of implementing section 112(g) during the 
    transition period between promulgation of the section 112(g) regulation 
    and adoption by Indiana of regulations implementing the provisions of 
    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) regulation that sources are not 
    subject to the requirements of the regulation until State regulations 
    are adopted. The EPA is limiting the duration of this proposal to 18 
    months following promulgation by EPA of the section 112(g) regulation. 
    Once promulgated by EPA, the 112(g) regulation will serve as the 
    mechanism for establishing federally enforceable case-by-case MACT 
    emission limits for HAPs. EPA is interpreting Indiana's legal authority 
    and commitment (Enclosure H, page 33 of the Indiana program submittal) 
    to mean that, upon promulgation of the section 112(g) regulation, the 
    State will expeditiously adopt regulations consistent with the 
    provisions of 112(g).
        Although section 112(l) generally provides authority for approval 
    of State air toxics programs, Title V and section 112(g) provide 
    authority for this limited approval because of the direct linkage 
    between 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 section 110 or any other provision under 
    the Act.
    
    c. Program for Delegation of Section 112 Standards as Promulgated
    
        The requirements for a Title V program approval, specified in 40 
    CFR 70.4(b), also encompass section 112(l)(5) requirements for approval 
    of a State program for delegation of section 112(d), (f), or (h) 
    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 proposing to grant approval, under section 
    112(l)(5) and 40 CFR 63.91, of Indiana's program for receiving 
    delegation of section 112(d), (f), or (h) standards that are unchanged 
    from the Federal standards as promulgated. This program approval 
    applies to both existing and future standards, but is limited to 
    sources covered by the part 70 program.
        Indiana has informed EPA that it intends to accept delegation of 
    section 112(d), (f), or (h) standards through rule adoption. The 
    details of this delegation mechanism will be set forth in a Memorandum 
    of Agreement between Indiana and EPA expected to be completed prior to 
    approval of Indiana's section 112(l) program for delegations.
    
    d. Limiting HAP Emissions Through a FESOP Program
    
        At the time of the publication of this Federal Register notice, 
    USEPA has not approved a FESOP regulation which would establish 
    federally enforceable limits on sources' potential to emit. If USEPA 
    approves the Indiana FESOP regulation, Indiana will have the ability to 
    place federally enforceable limits on HAPs in addition to criteria 
    pollutants. The federal enforceability of HAP limits will be addressed 
    in any future SIP approving the FESOP program.
    e. Title IV
    
        Indiana's program contains adequate authority to issue permits 
    which reflect the requirements of Title IV and its implementing 
    regulations. 326 IAC 21-1-1 incorporates by reference 40 CFR parts 72, 
    75, 76, 77, and 78. Indiana's program submittal contains a commitment 
    to revise its regulations as necessary to accommodate federal revisions 
    and additions to Title IV and the Acid Rain regulations once they are 
    promulgated.
    
    B. Options for Approval/Disapproval and Implications
    
        The EPA is proposing to grant interim approval to the operating 
    permits program submitted by Indiana on August 10, 1994. If this 
    interim approval is promulgated, the State must make the following 
    changes to receive full approval: (1) The State must amend its 
    insignificant activities levels for SO2 and HAPs to levels which 
    assure that large sources are included in Title V review and (2) the 
    State must revise its emissions threshold level for MPM group 
    processing eligibility to be consistent with the 40 CFR 
    70.7(e)(3)(i)(B) threshold level or the State may demonstrate that an 
    alternative to the 40 CFR 70.7(e)(3)(i)(B) level is acceptable. 
    Indiana's program is not fully approvable because of the deficiencies 
    mentioned above. The program, however, substantially meets the 
    requirements of part 70 because Indiana's regulations and legislation 
    comply with all other part 70 requirements. If EPA's concerns on the 
    issues mentioned above are addressed before final action on this 
    notice, then EPA can fully approve Indiana's program. Alternatively, if 
    the State does not address EPA's concerns on these issues before final 
    action on this notice, then EPA's final action will remain an interim 
    approval of the Indiana program. [[Page 27068]] 
        This interim approval, which may not be renewed, extends for a 
    period of up to 2 years. During the 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 State. 
    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 interim approval, as 
    does the 3-year time period for processing the initial permit 
    applications. Because the interim approval automatically expires 2 
    years after promulgation of a final interim approval, the State may 
    submit its interim corrections at any time. However, the State may not 
    submit its corrections any later than 18 months after promulgation of 
    final interim approval. The EPA will then have 6 months to promulgate a 
    final action.
    
    C. Federal Oversight and Sanctions
    
        Where EPA grants interim approval, it would extend for 2 years 
    following the effective date of final interim approval, and could not 
    be renewed. During the interim approval period, the State would not be 
    subject to sanctions and EPA would not be obligated to promulgate, 
    administer, and enforce a Federal permits program for the State. 
    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 interim approval as does the 3-year time period for processing the 
    initial permit applications.
        State failure to timely correct the deficiencies which are the 
    basis for an interim approval or EPA disapproval of a submitted 
    corrective program will start an 18-month clock for the mandatory 
    imposition of section 179(b) sanctions. Each of these occasions starts 
    a separate sanctions clock and time is not accumulated from one clock 
    to another. Section 179(b) of the Act mandates the impositions of the 
    following sanctions: (1) 2 to 1 emission offsets for new construction 
    in nonattainment areas and (2) restriction on federal funding of 
    highway projects. The offset sanction would be imposed 18 months after 
    a sanctions clock is started and the highway sanction would be imposed 
    6 months after the offset sanction.
        Following final interim approval, if the State failed to submit a 
    complete corrective program for full approval by 6 months before 
    expiration of the interim approval, EPA would start the sanctions 
    clock. If the State then failed to submit a corrective program that EPA 
    found complete before the expiration of that 18-month period, EPA would 
    be required to apply the first section 179(b) sanction, which would 
    remain in effect until EPA determined that the State had submitted a 
    complete corrective program. Moreover, if the Administrator found a 
    lack of good faith on the part of the State, both sanctions under 
    section 179(b) would apply after the expiration of the 18-month period 
    until the Administrator determined that the State had come into 
    compliance. In any case, if, 6 months after the application of the 
    first sanction, the State still had not submitted a corrective program 
    that EPA found complete, the second sanction would be required.
        If, following final interim approval, EPA were to disapprove the 
    State's complete corrective program, EPA would be required to apply the 
    first section 179(b) sanction on the date 18 months after the effective 
    date of the disapproval, unless, prior to that date, the State had 
    submitted a revised program and EPA had determined that it corrected 
    the deficiencies that prompted the disapproval. Moreover, if the 
    Administrator found a lack of good faith on the part of the State, both 
    sanctions under section 179(b) would apply after the expiration of the 
    18-month period until the Administrator determined that the State had 
    come into compliance, In all cases, if, 6 months after EPA applied the 
    first sanction, the State had not submitted a revised program that EPA 
    had determined corrected the deficiencies that prompted disapproval, 
    the second sanction would be required.
        In addition, discretionary sanctions may be applied where warranted 
    any time after the end of an interim approval period if a State has not 
    timely submitted a complete corrective program or EPA had disapproved a 
    submitted corrective program. Moreover, if EPA has not granted full 
    approval to a State program by the expiration of an interim approval 
    and that expiration occurs after November 15, 1995, EPA must 
    promulgate, administer and enforce a Federal permits program for that 
    State upon interim approval expiration.
    
    III. Administrative Requirements
    
    A. Request for Public Comments
    
        The EPA is requesting comments on all aspects of this proposed 
    interim approval. Copies of the State's submittal and other information 
    relied upon for the proposed interim approval 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 proposed rulemaking. The 
    principal purposes of the docket are:
        (1) To allow interested parties a means to identify and locate 
    documents so that they can effectively participate in the rulemaking 
    process, and
        (2) To serve as the record in case of judicial review. The EPA will 
    consider any comments received by June 21, 1995.
    
    B. Executive Order 12866
    
        The Office of Management and Budget (OMB) has exempted this action 
    from Executive Order 12866 review.
    C. Regulatory Flexibility Act
    
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final regulation on small entities. 5 U.S.C. sections 
    603 and 604. Alternatively, EPA may certify that the regulation 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.
        Operating permits program approvals under section 502 of the Act do 
    not create any new requirements, but simply approve requirements that 
    the State is already imposing. Therefore, because the federal operating 
    permits program approval does not impose any new requirements, I 
    certify 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 Act, preparation of a regulatory flexibility 
    analysis would constitute federal inquiry into the economic 
    reasonableness of State action.
        The Act forbids EPA to base its actions concerning operating 
    permits programs on such grounds. Union Electric Co. v. U.S. E.P.A., 
    427 U.S. 246, 256-66 (S. Ct 1976); 42 U.S.C. 7410(a)(2).
        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- [[Page 27069]] 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.
        The EPA has determined that the proposed 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. This 
    Federal action approves pre-existing requirements under State or local 
    law, and imposes no new Federal requirements. Accordingly, no 
    additional costs to State, local, or tribal governments, or to the 
    private sector, result from this action.
    
    List of Subjects in Part 70
    
        Environmental protection, Administrative practice and procedure, 
    Air pollution control, Intergovernmental relations, Operating permits, 
    and Reporting and recordkeeping requirements.
    
        Authority: 42 U.S.C. sections 7401-7671q.
    
        Dated: May 9, 1995.
    David A. Ullrich,
    Acting Regional Administrator.
    [FR Doc. 95-12474 Filed 5-19-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Published:
05/22/1995
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed interim approval.
Document Number:
95-12474
Dates:
Comments on this proposed action must be received in writing by
Pages:
27064-27069 (6 pages)
Docket Numbers:
IN001, FRL-5209-6
PDF File:
95-12474.pdf
CFR: (1)
40 CFR 70