Clean Air Act Approval and Promulgation of Title V, Section 507, Small Business Stationary Source Technical and Environmental Compliance Assistance Program for California

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[OAQPS # CA-65-1-6176; FRL-4889-6]

Clean Air Act Approval and Promulgation of Title V, Section 507,

Small Business Stationary Source Technical and Environmental Compliance

Assistance Program for California

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The EPA today proposes to approve the State Implementation

Plan (SIP) revision submitted by the State of California for the

purpose of establishing a Small Business Stationary Source Technical

and Environmental Compliance Assistance Program (PROGRAM). The

implementation plan was submitted by the State to satisfy the Federal

mandate of the Clean Air Act (CAA) to ensure that small businesses have

access to the technical assistance and regulatory information necessary

to comply with the CAA. The rationale for the approval is set forth in

this notice; additional information is available at the address

indicated below.

DATES: Comments on this proposed action must be received in writing by

June 30, 1994. Public comments on this document are requested and will

be considered before taking final action on this SIP revision.

ADDRESSES: Comments can be mailed to the U.S. Environmental Protection

Agency, Division Director, Air and Toxics Division, 75 Hawthorne

Street, San Francisco, CA 94105, Attention: R. Michael Stenburg.

Copies of the State's submittal and EPA's technical support

document are available for inspection during normal business hours at

the following locations: (1) U. S. Environmental Protection Agency, 75

Hawthorne Street, San Francisco, CA 94105; (2) State of California, Air

Resources Board, 2020 L Street, Sacramento, CA 95814.

For further information contact: R. Michael Stenburg, A-l, U.S.

Environmental Protection Agency, 75 Hawthorne Street, San Francisco, CA

94105, (415) 744-1102.

SUPPLEMENTARY INFORMATION:

I. Background

Implementation of the provisions of the Clean Air Act (CAA), as

amended in 1990, will require regulation of many small businesses so

that areas may attain and maintain the national ambient air quality

standards (NAAQS) and reduce the emission of air toxics. Small

businesses frequently lack the technical expertise and financial

resources necessary to evaluate such regulations and to determine the

appropriate mechanisms for compliance. In anticipation of the impact of

these requirements on small businesses, the CAA requires that States

adopt a Small Business Stationary Source Technical and Environmental

Compliance Assistance Program (PROGRAM), and submit this PROGRAM as a

revision to the Federally approved SIP. In addition, the CAA directs

the Environmental Protection Agency (EPA) to oversee these small

business assistance programs and report to Congress on their

implementation. The requirements for establishing a PROGRAM are set out

in section 507 of Title V of the CAA. In February 1992, EPA issued

Guidelines for the Implementation of section 507 of the 1990 Clean Air

Act Amendments, in order to delineate the Federal and State roles in

meeting the new statutory provisions and as a tool to provide further

guidance to the States on submitting acceptable SIP revisions.

The State of California has submitted a SIP revision to EPA in

order to satisfy the requirements of Section 507. In order to gain full

approval, the State submittal must provide for each of the following

PROGRAM elements: (1) The establishment of a Small Business Assistance

Program (SBAP) to provide technical and compliance assistance to small

businesses; (2) the establishment of a State Small Business Ombudsman

to represent the interests of small businesses in the regulatory

process; and (3) the creation of a Compliance Advisory Panel (CAP) to

determine and report on the overall effectiveness of the SBAP.

II. Analysis

1. Small Business Assistance Program

Section 507(a) sets forth six requirements\1\ that the State must

meet to have an approvable SBAP. The first requirement is to establish

adequate mechanisms for developing, collecting and coordinating

information concerning compliance methods and technologies for small

business stationary sources, and programs to encourage lawful

cooperation among such sources and other persons to further compliance

with the Act. The State has met this requirement by providing training

courses and compliance assistance manuals and by working with the

California Trade and Commerce Agency to disseminate technical

information.

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\1\A seventh requirement of section 507(a), establishment of an

Ombudsman office, is discussed in the next section.

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The second requirement is to establish adequate mechanisms for

assisting small business stationary sources with pollution prevention

and accidental release detection and prevention, including providing

information concerning alternative technologies, process changes,

products and methods of operation that help reduce air pollution. The

State has met this requirement by providing training on pollution

prevention and environmental hazard management. The Air Resources Board

(ARB) training programs and the state university and community college

systems provide training on pollution prevention. In addition the

California Trade and Commerce Agency's Business Environmental

Assistance Center's database provides technical information on

pollution prevention. The University of California Extension Centers

offer an environmental hazard management program. The Office of

Emergency Services has an accidental release detection and prevention

program that receives technical support from the ARB.

The third requirement is to develop a compliance and technical

assistance program for small business stationary sources which assists

small businesses in determining applicable requirements and in

receiving permits under the Act in a timely and efficient manner. The

State has met this requirement through its compliance assistance and

training programs which provide appropriate training courses and

compliance assistance manuals. The California Trade and Commerce

Agency's Business Environmental Assistance Center provides information

on regulatory requirements. The ARB's technical staff and local air

permitting agencies also provide assistance in determining permitting

requirements.

The fourth requirement is to develop adequate mechanisms to assure

that small business stationary sources receive notice of their rights

under the Act in such manner and form as to assure reasonably adequate

time for such sources to evaluate compliance methods and any relevant

or applicable proposed or final regulation or standards issued under

the Act. The State has met this requirement by proposing a pamphlet

explaining the rights of small businesses affected by the Act and by

having the ARB legal office respond to specific questions.

The fifth requirement is to develop adequate mechanisms for

informing small business stationary sources of their obligations under

the Act, including mechanisms for referring such sources to qualified

auditors or, at the option of the State, for providing audits of the

operations of such sources to determine compliance with the Act. The

State has met this requirement by operating a Registered Environmental

Assessors Program and by proposing a pamphlet explaining the

obligations of small businesses affected by the Act.

The sixth requirement is to develop procedures for consideration of

requests from a small business stationary source for modification of

(A) any work practice or technological method of compliance, or (B) the

schedule of milestones for implementing such work practice or method of

compliance preceding any applicable compliance date, based on the

technological and financial capability of any such small business

stationary source. The State has met this requirement by virtue of the

fact that local air permitting agencies have a variance procedure for

considering alternative compliance methods and schedules. The hearing

notices of the ARB and local air permitting agencies are required by

law to solicit information on alternative compliance methods for small

businesses facing severe economic impacts from regulation.

2. Ombudsman

Section 507(a)(3) requires the designation of a State office to

serve as the Ombudsman for small business stationary sources. The State

has met this requirement by proposing to create a high level position

in the California Air Resources Board to serve as the Ombudsman.

Although the Ombudsman's office will be located within the Air

Resources Board (ARB), the position will not be responsible for nor

accountable to the ARB staff that are implementing the program. The

Ombudsman's office will disseminate information, make referrals,

respond to complaints, and have a toll-free hotline. In February 1994,

the state advised us that candidates for the position of Ombudsman were

being reviewed.

3. Compliance Advisory Panel

Section 507(e) requires the State to establish a Compliance

Advisory Panel (CAP) that must include two members selected by the

Governor who are not owners or representatives of owners of small

businesses; four members selected by the State legislature who are

owners, or represent owners, of small businesses; and one member

selected by the head of the agency in charge of the Air Pollution

Permit Program. The State has met this requirement by specifing that

they will establish a Compliance Advisory Panel.

In addition to establishing the minimum membership of the CAP the

CAA delineates four responsibilities of the Panel: (1) To render

advisory opinions concerning the effectiveness of the SBAP,

difficulties encountered and the degree and severity of enforcement

actions; (2) to periodically report to EPA concerning the SBAP's

adherence to the principles of the Paperwork Reduction Act, the Equal

Access to Justice Act, and the Regulatory Flexibility Act;\2\ (3) to

review and assure that information for small business stationary

sources is easily understandable; and (4) to develop and disseminate

the reports and advisory opinions made through the SBAP. The State has

met these requirements by proposing that the purpose of the panel is to

assist program development and monitor and render advisory opinions on

the overall effectiveness of the program. The state has clarified in

writing to utilizing the Small Business Stationary Source Technical and

Compliance Program to serve as the secretariat for the CAP on the

development and dissemination of its reports and advisory opinions.

Additional authorities will be to issue reports to EPA on the program's

compliance with federal requirements and to review publications to

ensure that they are understandable to small business operators.

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\2\Section 507(e)(1)(B) requires the CAP to report on the

compliance of the SBAP with these three Federal statutes. However,

since State agencies are not required to comply with them, EPA

believes that the State PROGRAM must merely require the CAP to

report on whether the SBAP is adhering to the general principles of

these Federal statutes.

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4. Eligibility

Section 507(c)(1) of the CAA defines the term ``small business

stationary source'' as a stationary source that:

(A) Is owned or operated by a person who employs 100 or fewer

individuals;

(B) Is a small business concern as defined in the Small Business

Act;

(C) Is not a major stationary source;

(D) Does not emit 50 tons per year (tpy) or more of any

regulated pollutant; and

(E) Emits less than 75 tpy of all regulated pollutants.

The State has not established a definition of a small business and

therefore has not established procedures for including or excluding

sources from that definition. As a general rule, in mailing pamphlets

and in providing information on hotlines, the State does not plan to

screen businesses seeking information. The goal of the State is to

develop and implement a program that will assist all businesses needing

environmental assistance to operate in compliance in California. In

addition to fulfilling the requirements of the Federal program, the

State is committed to going beyond the federal program definition in

offering assistance to any small business.

III. Today's Action

In today's action, EPA is proposing to approve the SIP revision

submitted by the State of California.

The State of California has submitted a SIP revision implementing

each of the required PROGRAM elements required by section 507 of the

CAA by November 15, 1994. The State SIP revision commits to: (1) Create

a high level position in the Air Resources Board to serve as State

Small Business Ombudsman, (2) notify the appointing authorities of the

need to appoint members to the Compliance Advisory Panel, (3) initiate

the Small Business Assistance Program through expansion of existing

programs as well as the creation of new programs. EPA is therefore

proposing to approve this submittal.

This action has been classified as a Table 2 action by the Regional

Administrator under the procedures published in the Federal Register on

January 19, 1989 (54 FR 2214-2225). A revision to the SIP processing

review tables was approved by the Acting Assistant Administrator for

Office of Air and Radiation on October 4, 1993 (Michael Shapiro's

memorandum to Regional Administrators). A future notice will inform the

general public of these tables. Under the revised tables this action

remains classified as a Table 2. On January 6, 1989 the Office of

Management and Budget (OMB) waived Table 2 and 3 SIP revisions (54 FR

2222) from the requirements of section 3 of Executive Order 12291 for

two years. The US EPA has submitted a request for a permanent waiver

for Table 2 and Table 3 SIP revisions. The OMB has agreed to continue

the temporary waiver until such time as it rules on EPA's request. This

request continued in effect under Executive Order 12866 which

superseded Executive Order 12291 on September 30, 1993.

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 rule on small entities. 5 U.S.C. 603 and 604.

Alternatively, EPA may certify that the rule 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.

By today's action, EPA is approving a State program created for the

purpose of assisting small businesses in complying with existing

statutory and regulatory requirements. The program being approved today

does not impose any new regulatory burden on small businesses; it is a

program under which small businesses may elect to take advantage of

assistance provided by the State. Therefore, because the EPA's approval

of this program does not impose any new regulatory requirements on

small businesses, I certify that it does not have a significant

economic impact on any small entities affected.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Intergovernmental

relations.

Authority: 42 U.S.C. 7401-7671q.

Dated: May 13, 1994.

John Wise,

Acting Regional Administrator.

[FR Doc. 94-13188 Filed 5-27-94; 8:45 am]

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