95-10825. Clean Air Act Final Interim Approval of Operating Permits Program for Nineteen California Air Pollution Control Districts  

  • [Federal Register Volume 60, Number 85 (Wednesday, May 3, 1995)]
    [Rules and Regulations]
    [Pages 21720-21724]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-10825]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Part 70
    
    [AD-FRL-5200-7]
    
    
     Clean Air Act Final Interim Approval of Operating Permits 
    Program for Nineteen California Air Pollution Control Districts
    
    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 Amador County Air Pollution Control District (APCD), Butte 
    County APCD, Calaveras County APCD, Colusa County APCD, El Dorado 
    County APCD, Feather River Air Quality Management District (AQMD), 
    Great Basin Unified APCD, Imperial County APCD, Kern County APCD, 
    Lassen County APCD, Mendocino County APCD, Modoc County APCD, North 
    Coast Unified AQMD, Northern Sierra AQMD, Northern Sonoma County APCD, 
    Placer County APCD, Siskiyou County APCD, Tuolumne County APCD, and 
    Yolo-Solano AQMD, California (districts) 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: June 2, 1995.
    
    ADDRESSES: Copies of the nineteen districts' submittals and other 
    supporting information used in developing the final interim approval 
    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: For information, please contact: Sara 
    Bartholomew, Operating Permits Section, A-5-2, Air and Toxics Division, 
    U.S. EPA-Region IX, 75 Hawthorne Street, San Francisco, California 
    94105, (415) 744-1170.
    
    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 December 8, 1994, EPA proposed interim approval of the operating 
    permits programs for Amador County APCD, Butte County APCD, Calaveras 
    County APCD, Colusa County APCD, El Dorado County APCD, Feather River 
    AQMD, Great Basin Unified APCD, Imperial County APCD, Kern County APCD, 
    Lassen County APCD, Mendocino County APCD, Modoc County APCD, North 
    Coast Unified AQMD, Northern Sierra AQMD, Northern Sonoma County APCD, 
    Placer County APCD, Siskiyou County APCD, Tuolumne County APCD, and 
    Yolo-Solano AQMD, California. See 54 FR 63289. The EPA received public 
    comment on the proposal, and is responding to those comments in this 
    document and in a separate ``Response to Comments'' document that is 
    [[Page 21721]] available in the docket. The EPA also compiled a 
    Technical Support Document (TSD) for each of the nineteen districts, 
    which describes each operating permits program in greater detail.
        In this notice EPA is taking final action to promulgate interim 
    approval of the operating permits program for Amador County APCD, Butte 
    County APCD, Calaveras County APCD, Colusa County APCD, El Dorado 
    County APCD, Feather River AQMD, Great Basin Unified APCD, Imperial 
    County APCD, Kern County APCD, Lassen County APCD, Mendocino County 
    APCD, Modoc County APCD, North Coast Unified AQMD, Northern Sierra 
    AQMD, Northern Sonoma County APCD, Placer County APCD, Siskiyou County 
    APCD, Tuolumne County APCD, and Yolo-Solano AQMD, California.
    
    II. Final Action and Implications
    
    A. Analysis of State Submission
    
        EPA received two comment letters on the proposed rulemaking for the 
    districts, one from the National Environmental Development Associations 
    Clean Air Regulatory Project (``NEDA/CARP''), and one from the American 
    Forest & Paper Association (``AF&PA''), both dated January 9, 1995. The 
    issues discussed in the December 8, 1994 proposal were not changed as a 
    result of public comment with the exception of the implementation of 
    section 112(g) from the effective date of the title V program. EPA's 
    final action is being revised from the proposed notice with respect to 
    this issue. This change is discussed below along with other issues 
    raised during the public comment period.
    1. 112(g) Implementation
        NEDA/CARP and AF&PA both submitted comments regarding EPA's 
    proposed approval of the nineteen California districts' preconstruction 
    permitting programs for the purpose of implementing section 112(g) 
    during the transition period between title V approval and adoption of a 
    District rule implementing EPA's section 112(g) regulations. In 
    opposition to the proposed action, the commenters argued that the 
    nineteen districts should not, and cannot, implement section 112(g) 
    until: (1) EPA has promulgated a section 112(g) regulation; and (2) the 
    District has a section 112(g) program in place.
        EPA received many comments nationally on this issue, and agrees 
    that it is not reasonable to expect the states and districts to 
    implement section 112(g) before a rule is issued. EPA has therefore 
    published an interpretive notice in the Federal Register regarding 
    section 112(g) of the Act: 60 FR 8333 (February 14, 1995). This notice 
    outlines EPA's revised interpretation of 112(g) applicability prior to 
    EPA's issuing the final 112(g) rule. The notice states that major 
    source modifications, constructions, and reconstructions will not be 
    subject to 112(g) requirements until the final rule is promulgated. EPA 
    expects to issue the 112(g) final rule in September 1995.
        The notice further explains that EPA is 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 and Districts 
    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), the nineteen districts must be able to 
    implement section 112(g) during the period between promulgation of the 
    Federal section 112(g) rule and adoption of implementing District 
    regulations.
        For this reason, EPA is proposing to approve the nineteen 
    districts' preconstruction review programs as a mechanism to implement 
    section 112(g) during the transition period between promulgation of the 
    section 112(g) rule and adoption by the nineteen districts of rules 
    specifically designed to implement section 112(g). However, since 
    approval is intended solely to confirm that the districts have 
    mechanisms 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 there will be no transition period. The EPA is 
    limiting the duration of its approval of the use of preconstruction 
    programs to implement 112(g) to 12 months following promulgation by EPA 
    of the section 112(g) rule.
    2. Insignificant Activities
        NEDA/CARP and AF&PA both assert that EPA lacks the legal footing to 
    reject the districts' present ``insignificant levels,'' and that EPA 
    has no authority to hold out ``suggested'' emission levels as a 
    threshold for receiving full approval.
        EPA disagrees that it lacks authority to reject inappropriate or 
    unsupported insignificance levels, or to articulate on a program-by-
    program basis levels that it definitely would accept. Part 70 allows 
    States to deem certain activities or emission levels insignificant if 
    they are listed in the program submitted to EPA and approved by EPA, 
    but does not grant States authority to create new exemptions without 
    EPA approval. Section 70.4(b)(2) requires the submittal of criteria 
    used to determine insignificant activities, and Sec. 70.5(c) does not 
    allow States to create an insignificant activities permit exemption if 
    the exemption will interfere with the imposition of applicable 
    requirements or the collection of fees. In addition, part 70 explicitly 
    authorizes EPA to approve insignificant activities based on emission 
    levels (Sec. 70.5(c)). EPA has the legal authority to reject district 
    provisions which contravene these part 70 requirements.
        As stated in the proposal, most of the nineteen programs provided 
    EPA with no criteria or information on the level of emissions of 
    activities on the districts' exemption lists. In addition, the specific 
    insignificant activities provisions submitted by the districts have 
    raised concerns with EPA regarding the districts' ability to ensure 
    that applicable requirements are included in permits. None of the 
    nineteen districts provided EPA with a demonstration to the contrary. 
    For these reasons, the nineteen districts' lists of insignificant 
    activities are not acceptable.
        In the proposed rulemaking EPA suggested insignificance levels that 
    the Agency would find acceptable even without a further demonstration. 
    Neither of the commenters specifically addressed these sugested 
    insignificance levels. EPA would like to note that the nineteen 
    districts have the flexibility to modify their regulations and submit 
    criteria for EPA approval of new exemptions, as long as each district 
    demonstrates, or EPA is otherwise satisfied, that such alternative 
    emission levels are insignificant compared to the level of emissions 
    and types of units that are permitted or subject to applicable 
    requirements.
    3. Public Petitions to EPA
        NEDA/CARP and AF&PA both registered their concern regarding the 
    public petition requirements, notification and other procedural 
    requirements, stating that they believe these requirements will thwart 
    efforts in California to develop market incentive approaches to 
    emissions reductions.
        Provisions for public participation, notification and public 
    petitions are required under title V of the Clean Air Act (CAA 
    502(b)(6) for public participation, and CAA 505(b)(2) for public 
    petitions), and are therefore included in part 70, the regulations that 
    implement title V. EPA believes public participation does not preclude 
    a district from developing market based incentive programs. 
    [[Page 21722]] 
    4. Compliance Certification
        NEDA/CARP and AF&PA both contend that EPA has misread its own rule 
    in requiring that the full text of the responsible official's 
    certification be included in both the application content and permit 
    content. They argue that the provision of Sec. 70.5(d) sets out the 
    terms and conditions for any certification of an application form, 
    report or compliance made pursuant to the rules, but does not establish 
    a signatory statement that must be attested to by the responsible 
    official to the exclusion of all other statements (emphasis in comment 
    letters).
        EPA disagrees with the above comment. Section 70.5 requires that: 
    ``This certification * * * shall state that, based on information and 
    belief formed after reasonable inquiry, the statements and information 
    in the document are true, accurate, and complete'' (emphasis added). 
    This indicates that it is not sufficient merely for the responsible 
    official to sign the certification; the certificate must state that he 
    or she considered the issue carefully. The statement must contain the 
    essential elements of Sec. 70.5(d), and include the words quoted above. 
    EPA does not rule out having a pre-printed statement on the certificate 
    for convenience.
    5. Deviation Reporting
        NEDA/CARP and AF&PA both contend that it is necessary for EPA to 
    revise several of its earlier interim approval notices, in which the 
    Agency conditioned final approval on including a definition of 
    ``prompt'' in the state operating permits program, in order to provide 
    a consistent application of the appropriate interpretation of its 
    rules.
        In the proposed interim approval notice EPA stated that the 
    nineteen districts' regulations should define the meaning of ``prompt'' 
    as used in the requirement found at 40 CFR 70.6(a)(3)(iii)(B), which 
    requires ``prompt'' reporting of deviations from applicable 
    requirements. The Agency indicated that an acceptable alternative to 
    defining in the regulation what constitutes ``prompt'' is to define 
    ``prompt'' in each individual permit.
        NEDA/CARP and AF&PA both support this approach. EPA has 
    consistently asserted that this is an acceptable alternative to 
    defining ``prompt'' in the body of the permitting regulations, and sees 
    no need to revisit past interim approval actions to clarify this 
    interpretation of the definition of what constitutes ``prompt'' 
    reporting of deviations from applicable requirements.
    6. Potential to Emit
        In the proposed rulemaking, EPA required Amador and Tuolumne 
    counties to revise the definition of ``potential to emit'' in their 
    rules to clarify that only federally-enforceable limitations may be 
    considered in determining a source's potential to emit. NEDA/CARP and 
    AF&PA both argue that limitations based on state requirements, as well 
    as federally-enforceable limitations, should be considered in 
    determining the potential to emit.
        EPA's requirement that Amador and Tuolumne revise their definitions 
    of the term ``potential to emit'' is based upon the definition of that 
    term found in 40 CFR 70.2. Section 70.2 defines ``potential to emit'' 
    as the maximum capacity of a stationary source to emit any air 
    pollutant under its physical and operational design. The definition 
    further provides, however, that a physical and operational limit on 
    potential to emit is considered to be part of the source's design if it 
    is enforceable by EPA. Since the Amador and Tuolumne rules do not 
    conform to this critical definition, the districts must revise their 
    programs to clarify that only federally enforceable restrictions can 
    provide a legal limitation on a source's potential to emit.
    
    B. Final Action
    
        The EPA is promulgating interim approval of the operating permits 
    programs submitted by the California Air Resources Board on behalf of 
    Amador County APCD (complete submittal received on December 27, 1993), 
    Butte County APCD (complete submittal received on December 16, 1993), 
    Calaveras County APCD (complete submittal received on October 31, 
    1994), Colusa County APCD (complete submittal received on February 24, 
    1994), El Dorado County APCD (complete submittal received on November 
    16, 1993), Feather River AQMD (complete submittal received on November 
    16, 1993), Great Basin Unified APCD (complete submittal received on 
    January 12, 1994), Imperial County APCD (complete submittal received on 
    March 12, 1994), Kern County APCD (complete submittal received on 
    November 16, 1993), Lassen County APCD (complete submittal received on 
    January 12, 1994), Mendocino County APCD (complete submittal received 
    on December 27, 1993), Modoc County APCD (complete submittal received 
    on December 27, 1993), North Coast Unified AQMD (complete submittal 
    received on February 24, 1994), Northern Sierra AQMD (complete 
    submittal received on June 6, 1994), Northern Sonoma County APCD 
    (complete submittal received on January 12, 1994), Placer County APCD 
    (complete submittal received on December 27, 1993), Siskiyou County 
    APCD (complete submittal received on December 6, 1993), Tuolumne County 
    APCD (complete submittal received on November 16, 1993), and Yolo-
    Solano AQMD (complete submittal received on October 14, 1994), 
    California.
        The nineteen districts must make the changes specified in the 
    proposed rulemaking, under II.C., District Title V Interim Approval 
    Issues Common to All Nineteen Districts and Section III., Individual 
    District Title V Interim Approval Issues, in order to be granted full 
    approval.
        The scope of the nineteen districts' part 70 programs approved in 
    this notice applies to all part 70 sources (as defined in the approved 
    program) within the districts, 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 June 
    3, 1997. During this interim approval period, the nineteen districts 
    are protected from sanctions, and EPA is not obligated to promulgate, 
    administer and enforce a Federal operating permits program in any of 
    these districts. 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 any of the nineteen districts fails to submit a complete 
    corrective program for full approval by December 3, 1996, EPA will 
    start an 18-month clock for mandatory sanctions. If any of the 
    districts then fail to submit a corrective program that EPA finds 
    complete before the expiration of that 18-month period, EPA will apply 
    sanctions to that district as required by section 502(d)(2) of the Act, 
    which will remain in effect until EPA determines that the district has 
    [[Page 21723]] corrected the deficiency by submitting a complete 
    corrective program.
        If EPA disapproves any of the nineteen districts' complete 
    corrective program, EPA will apply sanctions to that district or 
    districts as required by section 502(d)(2) on the date 18 months after 
    the effective date of the disapproval, unless prior to that date the 
    district or districts has submitted a revised program and EPA has 
    determined that the district or districts corrected the deficiencies 
    that prompted the disapproval.
        In addition, discretionary sanctions may be applied where warranted 
    any time after the expiration of an interim approval period if any of 
    the nineteen districts 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 any of the nineteen 
    districts' programs 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 those districts 
    lacking full approval, 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 or District'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 nineteen 
    districts' programs 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.
    
    III. Administrative Requirements
    
    A. Docket
    
        Copies of the nineteen districts' submittals and other information 
    relied upon for the final interim approval, including two public 
    comments received and reviewed by EPA on the proposal, are contained in 
    docket number CA-NONGR19-94-01-OPS, 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.
        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.
    
    C. Regulatory Flexibility Act
    
    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 21, 1995.
    John Wise,
    Acting 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 the entry for 
    California in alphabetical order to read as follows:
    
    Appendix A to Part 70--Approval Status of State and Local Operating 
    Permits Programs
    
    * * * * *
    California
        The following district programs were submitted by the California 
    Air Resources Board on behalf of:
        (a) Amador County Air Pollution Control District (APCD) (complete 
    submittal received on September 30, 1994); interim approval effective 
    on June 2, 1995; interim approval expires June 3, 1997.
        (b) [Reserved]
        (c) Butte County APCD (complete submittal received on December 16, 
    1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (d) Calaveras County APCD (complete submittal received on October 
    31, 1994); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (e) Colusa County APCD (complete submittal received on February 24, 
    1994); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (f) El Dorado County APCD (complete submittal received on November 
    16, 1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (g) Feather River Air Quality Management District (AQMD) (complete 
    submittal received on December 27, 1993); interim approval effective on 
    June 2, 1995; interim approval expires June 3, 1997.
        (h) [Reserved]
        (i) Great Basin Unified APCD (complete submittal received on 
    January 12, 1994); interim approval effective on June 2, 1995; interim 
    approval expires June 3, 1997.
        (j) Imperial County APCD (complete submittal received on March 24, 
    1994); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (k) Kern County APCD (complete submittal received on November 16, 
    1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (l) [Reserved]
        (m) Lassen County APCD (complete submittal received on January 12, 
    1994); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (n) [Reserved]
        (o) Mendocino County APCD (complete submittal received on December 
    27, 1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (p) Modoc County APCD (complete submittal received on December 27, 
    1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (q) [Reserved]
        (r) [Reserved]
        (s) North Coast Unified AQMD (complete submittal received on 
    February 24, 1994); interim approval effective on June 2, 1995; interim 
    approval expires June 3, 1997.
        (t) Northern Sierra AQMD (complete submittal received on June 6, 
    1994); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (u) Northern Sonoma County APCD (complete submittal received on 
    January 12, 1994); interim approval effective on June 2, 1995; interim 
    approval expires June 3, 1997.
        (v) Placer County APCD (complete submittal received on December 27, 
    1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (w) [Reserved] [[Page 21724]] 
        (x) [Reserved]
        (y) [Reserved]
        (z) [Reserved]
        (aa) [Reserved]
        (bb) [Reserved]
        (cc) Siskiyou County APCD (complete submittal received on December 
    6, 1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 997.
        (dd) [Reserved]
        (ee) [Reserved]
        (ff) Tuolumne County APCD (complete submittal received on November 
    16, 1993); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
        (gg) [Reserved]
        (hh) Yolo-Solano AQMD (complete submittal received on October 14, 
    1994); interim approval effective on June 2, 1995; interim approval 
    expires June 3, 1997.
    * * * * *
    [FR Doc. 95-10825 Filed 5-2-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Effective Date:
6/2/1995
Published:
05/03/1995
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final interim approval.
Document Number:
95-10825
Dates:
June 2, 1995.
Pages:
21720-21724 (5 pages)
Docket Numbers:
AD-FRL-5200-7
PDF File:
95-10825.pdf
CFR: (1)
40 CFR 70