95-21406. Title V Clean Air Act Proposed Interim Approval of Operating Permits Program; West Virginia  

  • [Federal Register Volume 60, Number 167 (Tuesday, August 29, 1995)]
    [Proposed Rules]
    [Pages 44799-44805]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-21406]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Part 70
    
    [AD-FRL-5287-8]
    
    
    Title V Clean Air Act Proposed Interim Approval of Operating 
    Permits Program; West Virginia
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed interim approval.
    
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    SUMMARY: EPA is proposing interim approval of the operating permits 
    program submitted by West Virginia. This program was submitted by West 
    Virginia 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. The rationale for proposing interim approval is set forth in 
    this notice; additional information is available at the address 
    indicated below. This action is being taken in accordance with the 
    provisions of the Clean Air Act.
    
    DATES: Comments on this proposed action must be received in writing by 
    September 28, 1995.
    
    ADDRESSES: Comments should be addressed to Jennifer M. Abramson 
    (3AT23), Air, Radiation and Toxics Division, U.S. Environmental 
    Protection Agency, Region III, 841 Chestnut Building, Philadelphia, PA 
    19107.
        Copies of West Virginia'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: Air, Radiation, and Toxics Division, U.S. Environmental 
    Protection Agency, Region III, 841 Chestnut Building, Philadelphia, PA 
    19107.
    
    FOR FURTHER INFORMATION CONTACT: Jennifer M. Abramson (3AT23), Air, 
    Radiation and Toxics Division, U.S. Environmental Protection Agency, 
    Region III, 841 Chestnut Building, Philadelphia, PA 19107, (215) 597-
    2923.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        As required under Title V of the Clean Air Act (CAA) as amended 
    (1990), EPA has promulgated rules which define the minimum elements of 
    an approvable state operating permits program and the corresponding 
    standards and procedures by which EPA will approve, oversee, and 
    withdraw approval of state operating permits programs (see 57 FR 32250 
    (July 21, 1992)). These rules are codified at 40 Code of Federal 
    Regulations (CFR) Part 70 and require states to develop, and submit to 
    EPA, programs for issuing these operating permits to all major 
    stationary sources and to certain other sources. Due to pending 
    litigation over several aspects of the Part 70 rule which was 
    promulgated on July 21, 1992, Part 70 is in the process of being 
    revised. When the final revisions to Part 70 are promulgated, the 
    requirements of the revised Part 70 will define EPA's criteria for the 
    minimum elements of an approvable state operating permits program and 
    the corresponding standards and procedures by which EPA will approve, 
    oversee, and withdraw approval of state operating permits program 
    submittals. Until the date which the revisions to Part 70 are 
    promulgated, the currently effective July 21, 1992 version of Part 70 
    shall be used as the basis for EPA review.
        The CAA 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. EPA's program 
    review occurs pursuant to section 502 of the CAA and the July 21, 1992 
    version of Part 70, which together outline the currently applicable 
    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, EPA must establish and implement a 
    federal operating permits program.
        Following final interim approval, if West Virginia fails to submit 
    a complete corrective program for full approval by 6 months before the 
    interim approval 
    
    [[Page 44800]]
    period expires, EPA would start an 18-month clock for mandatory 
    sanctions. If West Virginia then failed to submit a complete corrective 
    program before the expiration of that 18-month period, EPA would be 
    required to apply one of the sanctions in section 179(b) of the CAA. 
    Such a sanction would remain in effect until EPA determined that West 
    Virginia had corrected the deficiency by submitting a complete 
    corrective program. Moreover, if the Administrator found a lack of good 
    faith on the part of West Virginia, both sanctions under section 179(b) 
    would apply after the expiration of the 18-month period until the 
    Administrator determined that West Virginia had come into compliance. 
    In any case, if, six months after application of the first sanction, 
    West Virginia still had not submitted a corrective program that EPA 
    found complete, a second sanction would be required.
        If, following final interim approval, EPA disapproved West 
    Virginia's complete corrective program, EPA would be required to apply 
    one of the section 179(b) sanctions on the date 18 months after the 
    effective date of the disapproval, unless prior to that date West 
    Virginia had submitted a revised program and EPA had determined that 
    this program corrected the deficiencies that prompted the disapproval. 
    Moreover, if the Administrator found a lack of good faith on the part 
    of West Virginia, both sanctions under section 179(b) would apply after 
    the expiration of the 18-month period until the Administrator 
    determined that West Virginia had come into compliance. In all cases, 
    if, six months after EPA applied the first sanction, West Virginia had 
    not submitted a revised program that EPA had determined corrected the 
    deficiencies that prompted disapproval, a 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 West Virginia 
    has not timely submitted a complete corrective program or EPA has 
    disapproved a submitted corrective program. Moreover, if EPA has not 
    granted full approval to West Virginia's program by the expiration of 
    the interim approval period, EPA must promulgate, administer and 
    enforce a federal operating permits program for West Virginia upon the 
    date the interim approval period expires.
        On November 12, 1993, West Virginia submitted an operating permits 
    program for review by EPA. The submittal was supplemented by additional 
    materials on August 26, 1994 and September 29, 1994, and was found to 
    be administratively complete pursuant to 40 CFR 70.4(e)(1). The 
    submittal includes the following components: Transmittal letter; 
    description of West Virginia's Title V operating permits program; 
    permitting regulations and rule adoption documentation; attorney 
    general's legal opinion; permitting program documentation, procedures, 
    guidelines, or policies for implementing the operating permits program; 
    permit fee demonstration and program resource/organizational 
    information; and compliance tracking and enforcement description.
    II. Summary and Analysis of the State's Submittal
    
        The analysis contained in this notice focuses on the major portions 
    of West Virginia's operating permits program submittal: regulations and 
    program implementation, variances, fees, and provisions implementing 
    the requirements of Titles III and IV of the CAA. Specifically, this 
    notice addresses the deficiencies in West Virginia's submittal which 
    will need to be corrected to fully meet the requirements of the July 
    21, 1992 version of Part 70. These deficiencies as well as other issues 
    related to West Virginia's operating permits program are discussed in 
    detail in the Technical Support Document (TSD). The full program 
    submittal and the TSD are available for review as part of the public 
    docket. The docket may be viewed during regular business hours at the 
    EPA Region III office listed in the ADDRESSES section of this notice.
    
    A. Regulations and Program Implementation
    
        West Virginia's operating permits program is primarily defined by 
    regulations adopted as Series 30 of Title 45, Legislative Rules of the 
    Air Pollution Control Commission, or 45CSR30--Requirements for 
    Operating Permits. The following analysis of West Virginia's operating 
    permits regulations corresponds directly with the format and structure 
    of the July 21, 1992 version of Part 70.
        During the review of West Virginia's 45CSR30, EPA identified 
    several instances in which regulatory provisions contain vague 
    language, misreferences and/or typographical errors. The provisions in 
    which these errors occur are identified in the TSD and must be 
    interpreted as if written correctly to fully meet the requirements of 
    Part 70.
        Section 70.2  Definitions. West Virginia's regulations 
    substantially meet the requirements of 40 CFR 70.2 for definitions. 
    However, the section 2.18 definition of ``Emissions unit'' does not 
    include activities or parts of activities which emit or potentially 
    emit pollutants listed under section 112(b) of the CAA. West Virginia 
    must revise the section 2.18 definition of ``Emissions unit'' to 
    specifically include activities or parts of activities which emit or 
    potentially emit pollutants listed under section 112(b) of the CAA in 
    order to fully meet the requirements of 40 CFR 70.2.
        Section 70.3  Applicability. West Virginia's regulations fully meet 
    the requirements of 40 CFR 70.3 for applicability. The section 2.26 
    definition of ``Major source'' allows for research and development 
    (R&D) facilities to be treated as separate sources from other 
    stationary sources which are part of the same industrial grouping, are 
    located on contiguous or adjacent property, and are under common 
    control. The term ``Research and development facility'' is defined in 
    section 2.37 to preclude activities which contribute to the product 
    produced for sale or exchange for commercial profit.
        EPA stated in the preamble to the final part 70 rule that, ``in 
    many cases States will have the flexibility to treat an R&D facility * 
    * * as though it were a separate source, and [the R&D facility] would 
    then be required to have a title V permit only if the R&D facility 
    itself would be a major source'' (57 FR 32264 and 32269, July 21, 
    1992). Read consistently with the ``major source'' definition in the 
    rule, this statement means that separate source treatment would occur 
    only in situations where the collocated R&D portion of a source has its 
    own two-digit SIC code and is not a support facility. Accordingly, EPA 
    had until recently considered separate treatment of R&D facilities to 
    be grounds for interim approval.
        As explained in the supplemental proposal to revise Part 70 which 
    EPA expects to publish soon, EPA believes that R&D should be treated as 
    having its own industrial grouping for purposes of the title I and 
    section 302(j) elements of the major source definition.
        Separate treatment will not exempt R&D facilities in all cases. 
    Some R&D activities may still be subject to permitting because they are 
    either individually major or a support facility making significant 
    contributions to the product of a collocated major facility. The 
    support facility test dictates that, even where there are two or more 
    industrial groupings at a commonly owned facility, these groupings 
    should be considered together if the output of one is more than 50 per 
    cent devoted to support of another.
        Although West Virginia's program does not specifically reference 
    the 
    
    [[Page 44801]]
    support facility test, EPA expects that such a test will be applied in 
    making major source applicability determinations as established under 
    the new source review program and continued under title V. Major source 
    applicability determinations made without the support facility test 
    would not fully meet the requirements of 40 CFR 70.3.
        Section 70.5  Permit Applications. West Virginia's regulations 
    substantially meet the requirements of 40 CFR 70.5 for permit 
    applications. However, in section 3.2.d, West Virginia lists several 
    types of ``insignificant activities'' which need only to be identified, 
    rather than described, in permit applications. Several of the 
    activities listed in section 3.2.d are not intrinsically 
    ``insignificant'' and could potentially prevent the Chief from having 
    sufficient emissions information to impose all applicable requirements 
    in accordance with Part 70.
        The following section 3.2.d activities must be clarified to ensure 
    that emissions from such units will not interfere with the imposition 
    of all applicable requirements:
    
    3.2.d.D  ``Indoor or outdoor kerosene heaters'';
    3.2.d.E  ``Space heaters operating by direct heat transfer'';
    
        Section 3.2.d.K (``Portable generators'') must be bounded to 
    include size or production rate cutoffs, or other qualifiers, to ensure 
    that emissions from these units will not interfere with the imposition 
    of all applicable requirements.
        Additionally, unless and until the Administrator determines that 
    Title VI requirements need not be contained in Title V permits, West 
    Virginia must also modify section 3.2.d.C (``Comfort air conditioning * 
    * *'') as necessary to ensure that the Chief will have sufficient 
    information to incorporate Title VI requirements into Title V permits.
        Section 3.2.d.M of West Virginia's rule authorizes the Chief to 
    determine activities or emissions units to be insignificant in addition 
    to those listed in section 3.2.d. For the same reasons stated above, 
    the Chief's discretion to consider additional activities to be 
    insignificant must be bounded. Bounding of the Chief's discretion is 
    necessary since, as section 3.2.d.M is presently structured, EPA will 
    not be given the opportunity to review these activities or emissions 
    units prior to them being listed in a source's application form. 
    Section 70.5(c) requires that insignificant activities be approved by 
    EPA as part of a State's approved program. This allows EPA to determine 
    whether such insignificant activities are likely to interfere with the 
    State's ability to assure compliance with applicable requirements 
    through permits.
        In the absence of a specific list of insignificant activities, a 
    limitation on size or production rate may serve the same purpose. EPA 
    views size or production rate cutoffs in the range of 1-2 tons per year 
    for criteria pollutant emissions and the lesser of 1000 pounds per year 
    or section 112(g) de minimis levels for hazardous air pollutant 
    emissions to be an acceptable range for individual insignificant 
    activities. However, EPA may approve different levels that West 
    Virginia demonstrates will not interfere with the determination or 
    imposition or applicable requirements.
        Notwithstanding the Chief's authority to consider additional 
    activities as insignificant on an application by application basis, 
    West Virginia must ensure that, consistent with the requirements of 
    section 70.5(c), the insignificant activities list approved as part of 
    the West Virginia program will not be modified without prior EPA 
    approval. West Virginia must also clarify that potential emissions from 
    all insignificant activities or emissions units, whether included in 
    section 3.2.d or determined by the Chief on an application by 
    application basis, will be included in determining whether a source is 
    a major source.
        Notwithstanding the 45CSR30 provisions for insignificant 
    activities, sections 4.1.b and 4.3 specifically require sources to 
    provide all information necessary to evaluate the permit application 
    and to determine the applicability of, or to impose, any applicable 
    requirement.
        Sections 70.4 and 70.6  Permit Content. West Virginia's regulations 
    substantially meet the requirements of 40 CFR 70.4 and 40 CFR 70.6 for 
    permit content. The following changes must be made in order to fully 
    meet the requirements of 40 CFR 70.4 and 40 CFR 70.6:
        1. For clarity and consistency with Part 70 and section 5.1, 
    section 3.3.a must be revised to clarify that permits issued to major 
    sources will include all applicable requirements that apply to the 
    source, including those applicable requirements which may be later 
    found to be applicable to one or more ``insignificant activities''.
        2. Section 5.1.j.D. provides that permit provisions for emissions 
    trading ``May include categories of VOC's which in the Chief's 
    discretion can be substituted for one another in a production 
    process.'' This provision is incorrectly placed in section 5.1.j., 
    emissions trading, and should, instead be included in section 5.1.i., 
    alternative operating scenarios. West Virginia must revise sections 
    5.1. i. and j. to clarify that permit provisions for emissions trading 
    may not include categories of VOC's which in the Chief's discretion can 
    be substituted for one another in a production process.
        3. Section 5.3.e.A. must be revised to ensure that permits will 
    contain provisions requiring compliance certifications to be submitted 
    at least annually or such more frequent periods as specified by an 
    applicable requirement or by the permitting authority.
        4. Section 5.5 must be revised to clarify that for temporary 
    sources that do not obtain a new preconstruction permit prior to each 
    change in location, the operating permits shall include a requirement 
    that the owner operator notify the Chief at least ten (10) days in 
    advance of each change in location.
        Section 70.7  Permit Issuance, Renewal, Reopenings, and Revisions. 
    West Virginia's regulations substantially meet the requirements of 40 
    CFR 70.7 for permit issuance, renewal, reopenings, and revisions. EPA's 
    concern over the ambiguity in section 6.4.a.E as to the procedural and 
    compliance requirements necessary to administratively amend 
    preconstruction permits into Title V permits was addressed by an 
    October 11, 1994 supplemental Attorney General's opinion. In relevant 
    part, the opinion states:
    
        Under 45CSR30.6.4.a.E, West Virginia's Title V administrative 
    permit amendment procedure will be used to incorporate only those 
    pre-construction permits issued under EPA-approved programs which 
    have met procedural requirements substantially equivalent to the 
    requirements of sections 6 and 7 of 45CSR30 that would be applicable 
    to the change if it were subject to review as a permit modification, 
    and which have also met compliance requirements substantially 
    equivalent to those contained in section 5.
    
        EPA's approval of this portion of West Virginia's program is based 
    in part on the Attorney General's interpretation stated above. As such, 
    EPA expects West Virginia to implement section 6.4.a.E consistent with 
    the Attorney General's interpretation to fully meet the requirements of 
    40 CFR 70, Sec. 70.7(d)(1)(v). Notwithstanding, the following changes 
    must be made in order to fully meet the requirements of 40 CFR 70.7:
        1. West Virginia must modify section 4.1 to require sources which 
    become subject to the permitting program after 
    
    [[Page 44802]]
    the effective date to submit permit applications within 12 months. 
    During the interim, West Virginia must require sources which become 
    subject to the permitting program after the effective date to submit 
    permit applications within 12 months.
        2. Section 6.5.a.A.(c) allows sources to make changes below 
    established ``de minimis'' levels without having to undergo any type of 
    permit modification. The July 21, 1992 version of Part 70 does not 
    provide ``de minimis'' levels for source changes below which no permit 
    modification is required. Accordingly, section 6.5.a.A.(c) must be 
    removed. It should be noted that in most cases sources making changes 
    below the thresholds established in section 6.5.a.A.(c) will be able to 
    make such changes pursuant to the ``off-permit'' provisions of section 
    5.9. Additional flexibility for these types of changes may be provided 
    in the Part 70 revisions process.
        3. Section 6.8.a.A.(a)(B) must be revised to clarify that public 
    notice will be given for all scheduled public hearings, not just those 
    public hearings which have been scheduled at the request of an 
    interested person.
        4. West Virginia must revise section 6.8.a.C. to clarify that for 
    all permit modification proceedings, except those modifications 
    qualifying for minor permit modifications or fast-track modifications 
    under the Acid Rain Program, public notice will be given by publication 
    in a newspaper of general circulation in the area where the source is 
    located (or in a state publication designed to give general public 
    notice), and to persons on a mailing list developed by the permitting 
    authority including those who request in writing to be on the list.
        Section 70.11  Enforcement Authority. West Virginia's regulations 
    and code provisions substantially meet the requirements of 40 CFR 70.11 
    for enforcement authority. However, W.Va. Code section 22-5-6(b)(1) 
    impermissibly limits criminal penalties for knowing misrepresentations 
    of material fact to a total of $25,000 without regard to the continuing 
    nature of the misrepresentation. West Virginia must modify W.Va. Code 
    section 22-5-6(b)(1) to provide for a maximum criminal penalty of not 
    less than $10,000 per day per violation for knowing misrepresentations 
    of material fact.
    B. Variances
    
        Unless parts of federally approved, promulgated and/or delegated 
    applicable requirements, EPA regards the sections 5.7.D. and 6.9.c.D. 
    references to variance provisions as wholly external to the program 
    submitted for approval under Part 70, and consequently is proposing to 
    take no action on such provisions. EPA has no authority to approve 
    provisions of West Virginia law, such as the variance provisions 
    referred to in this section, which are inconsistent with the CAA. EPA 
    does not recognize the ability of a permitting authority to grant 
    relief from the duty to comply with a federally enforceable Part 70 
    permit, except where such relief is granted through procedures allowed 
    by Part 70. EPA reserves the right to enforce the terms of the Part 70 
    permit where the permitting authority purports to grant relief from the 
    duty to comply with a Part 70 permit in a manner inconsistent with Part 
    70 procedures.
    
    C. Permit Fee Demonstration
    
        West Virginia's fee schedule is substantially less than the annual 
    $25 + (1989 Base year) CPI per ton ``presumptive minimum'' established 
    in section 502 of the Clean Air Act. Although West Virginia's fee 
    demonstration/workload analysis reveals that the existing annual fee 
    level, $18 + (1993 Base Year) CPI per ton, may generate adequate 
    revenues to fund the direct and indirect projected program costs during 
    the first four years of implementation, EPA is concerned about the 
    flexibility of the fee structure in its ability to respond to resource 
    needs in the future.
        West Virginia's program provides that the Chief of West Virginia's 
    Office of Air Quality (WVOAQ) shall, on or before October 1 of each 
    fiscal year, prepare an accounting report to the Air Pollution Control 
    Commission (APCC) of all Title V fees received from the previous fiscal 
    year and the manner in which they were used, together with projected 
    expenditures for the upcoming year. Accordingly, on or before May 1 of 
    each year, the APCC shall determine whether to adjust the annual $18 + 
    (1993 Base Year) CPI per ton fee amount. However, the APCC's ability to 
    adjust fees is only authorized up to $2 per ton and is not cumulative, 
    regardless of the amount needed.
        EPA recognizes that many of the required permitting activities such 
    as case-by-case MACT determinations are difficult to reasonably 
    estimate in terms of cost and that revenues may be impacted by 
    circumstances such as acid rain Phase II ``active'' substitution units 
    which become temporarily exempt from the payment of emissions-based 
    permit fees. In order to prevent permitting delays due to lack of 
    resources and to maintain the quality of the 45CSR30 permitting 
    program, West Virginia should provide the APCC with the authority to 
    adjust permitting fees to a level at least equivalent to the 
    ``presumptive minimum'' for a particular calendar year. As a result, 
    the APCC will have greater flexibility in responding to resource needs 
    without having to wait for legislative approval. The annual WVOAQ 
    accounting of all Title V fees received and the manner used, will serve 
    to ensure that revenues from Title V fees are expended solely to cover 
    reasonable direct and indirect Title V costs, as required by 45CSR30, 
    section 1.1.
        All 45CSR30 fees collected by West Virginia will be deposited in a 
    separate special account in the State treasury designated as the ``Air 
    Pollution Control Fund''. Although fees collected pursuant to 45CSR22, 
    Air Quality Management Fee Program, are also deposited in this account, 
    an account tracking system will distinguish between revenues and 
    expenditures attributable to 45CSR22 versus 45CSR30. In this way, West 
    Virginia will be able to ensure that fees, penalties and interest 
    collected for operating permits shall be expended solely to cover costs 
    required to administer the operating permits program, as required by W. 
    VA Code section 16-20-5(a)(18), and 45CSR30.1.1. Although the Chief's 
    ability to spend the money collected from 45CSR30 fees is contingent on 
    legislative appropriation, W. Va. Code section 16-20-5(a)(18) and 
    45CSR30.1.1 require fees to be sufficient to cover ``all reasonable 
    direct and indirect costs required to administer the operating permits 
    program''. As with other fee generating programs in the West Virginia, 
    the legislature has the authority to transfer excess 45CSR30 monies 
    into other accounts.
    
    D. Provisions Implementing the Requirements of Title III
    
        Implementing Title III Standards through Title V Permits. Under 
    45CSR30 (Title 45, Series 30, Legislative Rules, Air Pollution Control 
    Commission, Requirements for Operating Permits) and West Virginia Code, 
    section 16-20-5 (Air Pollution Control Law of West Virginia), West 
    Virginia has demonstrated in its Title V program submittal broad legal 
    authority to incorporate into permits and enforce all applicable 
    requirements; however, West Virginia has also indicated that additional 
    regulatory authority may be necessary to carry out specific CAA section 
    112 activities. West Virginia has therefore supplemented its broad 
    legal authority with a commitment ``to adopt and submit all regulations 
    required to 
    
    [[Page 44803]]
    implement the provisions of section 112 of the Clean Air Act necessary 
    under the Title V operating permit program.'' This commitment is stated 
    in the transmittal letter of the November 12, 1993 operating permits 
    program submittal. EPA has determined that this commitment, in 
    conjunction with West Virginia's broad statutory authority, adequately 
    assures compliance with all the CAA's section 112 requirements. EPA 
    regards this commitment as an acknowledgement by West Virginia of its 
    obligation to obtain further legal authority as needed to issue permits 
    that assure compliance with the CAA's section 112 applicable 
    requirements. This commitment does not substitute for compliance with 
    Part 70 requirements that must be met at the time of program approval.
        EPA is interpreting the above legal authority and commitment to 
    mean that West Virginia is able to carry out all of the CAA's section 
    112 activities. For further rationale on this interpretation, please 
    refer to the TSD accompanying this rulemaking which is located in the 
    public docket and the April 13, 1993 guidance memorandum titled ``Title 
    V Program Approval Criteria for Section 112 Activities,'' signed by 
    John Seitz, Director, Office of Air Quality Planning and Standards, 
    Office of Air and Radiation, USEPA.
        Implementation of 112(g) Upon Program Approval. EPA is proposing to 
    approve West Virginia's 45CSR30 operating permits program, 45CSR13 and 
    45CSR14 preconstruction permit programs, and authority under W. Va Code 
    section 22-5-4(a)(5) to issue administrative orders for the purpose of 
    implementing section 112(g) during the transition period between 
    federal promulgation of a section 112(g) rule and West Virginia's 
    adoption of 112(g) implementing regulations. EPA had until recently 
    interpreted the CAA to require sources to comply with section 112(g) 
    beginning on the date of approval of the Title V program regardless of 
    whether EPA had completed its section 112(g) rulemaking. EPA has since 
    revised this interpretation of the CAA as described in a February 14, 
    1995 Federal Register notice (see 60 FR 8333). The revised 
    interpretation postpones the effective date of section 112(g) until 
    after EPA has promulgated a rule addressing that provision. The 
    rationale for the revised interpretation is set forth in detail in the 
    February 14, 1995 interpretive notice.
        The section 112(g) interpretive notice explains that EPA is still 
    considering whether the effective date of section 112(g) should be 
    delayed beyond the date of promulgation of the federal rule to allow 
    states time to adopt rules implementing the federal rule, and that EPA 
    will provide for any such additional delay in the final section 112(g) 
    rulemaking. Unless and until EPA provides for such an additional 
    postponement of section 112(g), West Virginia must be able to implement 
    section 112(g) during the transition period between promulgation of the 
    federal section 112(g) rule and adoption of West Virginia's 
    implementing regulations.
        EPA believes that, although West Virginia currently lacks a program 
    designed specifically to implement section 112(g), West Virginia's 
    45CSR30 operating permits program, and 45CSR13 and 45CSR14 
    preconstruction permit programs will serve as adequate implementation 
    vehicles during a transition period because they will allow West 
    Virginia to select control measures that would meet MACT on a case-by-
    case basis, as defined in section 112, and incorporate these measures 
    into federally enforceable source-specific permits. Section 112(g) 
    requirements for case-by-case MACT determinations are governed by the 
    provisions of the 45CSR30 operating permits program, sections 1.1, 2.6, 
    2.25, 4.1.a.B., and 12.2-12.4. In those situations when the Title V 
    process cannot insure the MACT determination is made before the 
    construction, reconstruction or modification takes place, West Virginia 
    will use its preconstruction permitting procedures of 45CSR13 and 
    45CSR14 to the extent applicable to the source. Moreover, for those 
    sources for which the Title V process is not suitable or for which 
    preconstruction permits are not applicable, West Virginia will issue an 
    administrative order pursuant to the authority of W. Va. Code section 
    22-5-4(a)(5) and 45CSR30.12 to apply the case-by-case MACT standard.
        This proposed approval clarifies that West Virginia's 45CSR30 
    operating permits program, 45CSR13 and 45CSR14 preconstruction permit 
    programs, and authority under W. Va. Code section 22-5-4(a)(5) to issue 
    administrative orders are available as mechanisms to implement section 
    112(g) during the transition period between EPA's promulgation and West 
    Virginia's adoption of section 112(g) rules. EPA is proposing to limit 
    the duration of this approval to an outer limit of 18 months following 
    promulgation by EPA of the section 112(g) rule. Comment is solicited on 
    whether 18 months is an appropriate period taking into consideration 
    West Virginia's procedures for adoption of regulations.
        However, since this proposed approval is for the single purpose of 
    providing a mechanism to implement section 112(g) during the transition 
    period, the approval itself will be without effect if EPA decides in 
    the final section 112(g) rule that sources are not subject to the 
    requirements of the rule until State regulations are adopted.
        Although section 112(l) generally provides the 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. If West 
    Virginia does not wish to implement section 112(g) through the proposed 
    mechanisms discussed above and can demonstrate that an alternative 
    means of implementing section 112(g) exists during the transition 
    period, EPA may, in the final action approving West Virginia's Part 70 
    program, approve the alternative instead.
        Program for Straight Delegation of Section 112 Standards. 
    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 promulgated by EPA as they apply to Part 70 
    sources. Section 112(l)(5) requires that the state programs contain 
    adequate authorities, adequate resources for implementation, and an 
    expeditious compliance schedule, which are also requirements under Part 
    70. Therefore, EPA is also proposing to grant approval under section 
    112(l)(5) and 40 CFR 63.91 of West Virginia's program for receiving 
    delegation of section 112 standards that are unchanged from the federal 
    standards as promulgated. For EPA-promulgated rules which are 
    applicable to sources in West Virginia, West Virginia intends to 
    request delegation after adopting the rules at the State level, 
    probably by incorporating the federal rules by reference. The details 
    of this delegation mechanism will be established prior to delegating 
    any section 112 standards under West Virginia's approved section 112(l) 
    program for straight delegation. This program applies to both existing 
    and future standards but is limited to sources covered by the Part 70 
    program.
    
    E. Title IV Provisions/Commitments
    
        As part of the November 12, 1994 program submittal, West Virginia 
    committed to submit all missing portions of the Title IV acid rain 
    program necessary to the Title V operating permits program by January 
    1, 1995. On December 15, 1994, West Virginia submitted an emergency 
    rule to EPA which incorporates EPA's Part 72 
    
    [[Page 44804]]
    rule by reference. On June 23, 1995, West Virginia submitted an 
    identical permanent legislative rule to EPA, 45CSR33--``Acid Rain 
    Provisions and Permits'', which supersedes the emergency rule submitted 
    on December 15, 1994, and associated permit application forms. In the 
    June 23, 1995 transmittal letter, West Virginia acknowledged that some 
    of the provisions of 45CSR33 contain errors whereby the EPA 
    Administrator's authorities are incorrectly granted to the Director of 
    the Division of Environmental Protection and where conflicts between 
    45CSR33 and other state rules are addressed in a manner inconsistent 
    with the approach in Part 72. West Virginia committed to seek 
    amendments to fix these errors during the 1996 legislative session and 
    to interpret 45CSR33 consistent with the requirements of Part 72 until 
    the regulatory changes to 45CSR33 are adopted.
    III. Request for Public Comments
    
        EPA is soliciting public comments on the issues discussed in this 
    notice or on other relevant matters. These comments will be considered 
    before taking final action. Interested parties may participate in this 
    federal rulemaking action by submitting written comments to the EPA 
    Regional office listed in the ADDRESSES section of this notice.
    
    Propsed Action
    
        EPA is proposing to grant interim approval to the operating permits 
    program submitted by West Virginia on November 12, 1993. The scope of 
    West Virginia's Part 70 program applies to all Part 70 sources (as 
    defined in the program) within West Virginia. In order to fully meet 
    the requirements of the July 21, 1992 version of Part 70, West Virginia 
    must make the following changes:
        1. Revise the section 2.18 definition of ``Emissions unit'' to 
    specifically include activities or parts of activities which emit or 
    potentially emit pollutants listed under section 112(b) of the CAA.
        2. Revise relevant portions of section 3.2.d as described above in 
    this notice so as to ensure that permit applications will contain 
    sufficient information needed to determine the applicability of, or to 
    impose, all applicable requirements. West Virginia must also ensure 
    that the insignificant activities list approved as part of the State's 
    program will not be modified without prior EPA approval. Moreover, West 
    Virginia must clarify that potential emissions from all insignificant 
    activities or emissions units, whether included in section 3.2.d. or 
    determined by the Chief on an application by application basis, will be 
    included in determining whether a source is a major source.
        3. Revise section 3.3.a to clarify that permits issued to major 
    sources will include all applicable requirements that apply to the 
    source, including those applicable requirements which may be later 
    found to be applicable to one or more ``insignificant activities''.
        5. Remove section 5.1.j.D. from section 5.1.j.
        6. Revise section 5.3.e.A. to ensure that permits will contain 
    provisions requiring compliance certifications to be submitted at least 
    annually or such more frequent periods as specified by an applicable 
    requirement or by the permitting authority.
        7. Revise section 5.5 to clarify that for temporary sources that do 
    not obtain a new preconstruction permit prior to each change in 
    location, the operating permits shall include a requirement that the 
    owner operator notify the Chief at least ten (10) days in advance of 
    each change in location.
        8. Modify section 4.1 so to require sources which become subject to 
    the permitting program after the effective date to submit permit 
    applications within 12 months.
        9. Remove section 6.5.a.A.(c).
        10. Revise section 6.8.a.A.(a).(B) to clarify that public notice 
    will be given for all scheduled public hearings, not just those public 
    hearings which have been scheduled at the request of an interested 
    person.
        11. Revise section 6.8.a.C. to clarify that for all permit 
    modification proceedings, except those modifications qualifying for 
    minor permit modifications or fast-track modifications under the Acid 
    Rain Program, public notice will be given by publication in a newspaper 
    of general circulation in the area where the source is located (or in a 
    state publication designed to give general public notice), and to 
    persons on a mailing list developed by the permitting authority 
    including those who request in writing to be on the list.
        12. Modify W. Va. Code Sec. 22-5-6(b)(1) to provide for a maximum 
    criminal penalty of not less than Sec. 10,000 per day per violation for 
    knowing misrepresentations of material fact.
        This interim approval, which may not be renewed, extends for a 
    period of up to 2 years. During the interim approval period, West 
    Virginia is protected from sanctions for failure to have a fully 
    approved Title V, Part 70 program, and EPA is not obligated to 
    promulgate a federal permits program in West Virginia. 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.
        Requirements for approval, specified in 40 CFR 70.4(b), encompass 
    the CAA's section 112(l)(5) requirements for approval of a program for 
    delegation of section 112 standards applicable to Part 70 sources as 
    promulgated by EPA. 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, EPA is also proposing under section 112(l)(5) 
    and 40 CFR 63.91 to grant approval of West Virginia's program for 
    receiving delegation of section 112 standards that are unchanged from 
    federal standards as promulgated. This program for delegations only 
    applies to sources covered by the Part 70 program.
        The Office of Management and Budget has exempted this action from 
    Executive Order 12866 review.
        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.
        EPA has determined that this proposed interim approval action 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 to propose 
    interim approval of West Virginia's operating permits program pursuant 
    to Title V of the CAA and 40 CFR Part 70 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 40 CFR Part 70
    
        Environmental protection, Administrative practice and procedure, 
    Air pollution control, Intergovernmental relations, Operating permits, 
    Reporting and recordkeeping requirements.
    
        Authority: 42 U.S.C. 7401-7671q.
    
    
    [[Page 44805]]
    
        Dated: August 18, 1995.
    W. Michael McCabe,
    Regional Administrator.
    [FR Doc. 95-21406 Filed 8-28-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Published:
08/29/1995
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed interim approval.
Document Number:
95-21406
Dates:
Comments on this proposed action must be received in writing by September 28, 1995.
Pages:
44799-44805 (7 pages)
Docket Numbers:
AD-FRL-5287-8
PDF File:
95-21406.pdf
CFR: (1)
40 CFR 70