40 CFR Part 52

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[AZ25-1-6156; FRL-5002-8]

Clean Air Act Partial Approval and Partial Disapproval and

Promulgation of Title V, Section 507, Small Business Stationary

Source Technical and Environmental Compliance Assistance Program

for Arizona

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The EPA today proposes to partially approve and partially

disapprove the State Implementation Plan (SIP) revision submitted by

the State of Arizona 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 partial approval and partial disapproval is set forth in this

document; additional information is available at the address indicated

in the Addresses section.

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

July 25, 1994.

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

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

San Francisco, CA 94l05, Attention: R. Michael Stenburg.

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

are available for inspection during normal business hours at the

following locations:

U.S. Environmental Protection Agency,75 Hawthorne Street, San

Francisco, CA 94l05;

Arizona Department of Environmental Quality,3033 North Central

Avenue, Phoenix, Arizona 85012.

FOR FURTHER INFORMATION CONTACT: R. Michael Stenburg, A-1, U.S.

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

94l05, (4l5) 744-ll02.

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 Arizona has submitted a SIP revision to EPA inorder 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 requirements1 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 planning to hire

before November l5, l994 a Deputy Ombudsman to coordinate the

distribution of air quality related information on compliance methods,

technologies and permit applications. A hotline telephone number

already exists at ADEQ for the dissemination of pertinent environmental

information. This service would be expanded with menu items

specifically tailored to the needs of small businesses. The Deputy

Ombudsman will alsodistribute pamphlets, conduct direct mailings and

sponsor seminars and workshops. In addition the state would utilize a

network of Small Business Assistance Centers located at community

colleges throughout the State. These offices would provide a direct

link tothe small business community in the outlying areas of the State

and would provide a convenient location for the distribution of

information on the Program. The Arizona Business Connection, operated

by the Arizona Department of Commerce, would be a primary link in

providing Program information to their clients and directly link

clients to the Ombudsman's services. The state will also utilize the

Arizona Procurement Technical Assistance Network which provides small

business information through a computer bulletin board. Finally,

brochures and other written materials will be provided to Chambers of

Commerce and other economic development organizations.

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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 planning that prior to November

l5,l994 their Small Business Assistance Program would provide

assistance to small businesses on pollution prevention and accidental

release prevention and detection through the distribution of pamphlets

as well as direct mailings, seminars and workshops. Some of the

technical assistance would be provided through the existing Pollution

Prevention Program in the Office of Waste Programs at ADEQ. The

Pollution Prevention Program will provide technical assistance on

methods of pollution prevention and accidental release prevention and

detection, including alternative technologies, process changes, and

products and methods that help reduce air pollution.

The third requirement is to develop a compliance and technical

assistance program for small business stationary sources whichassists

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 by planning prior toNovember l5, l994 to

have the Ombudsman's office serve as a centralpoint of contact for

information related to permit applications and the handling of

complaints from citizens experiencing problems with ADEQ. In addition,

a Small Business Assistance Program (SBAP) would be housed within ADEQ.

The SBAP will provide assistance to small businesses on applicable

requirements under the CAA and Arizona law as well as assistance on

applying for and acquiring permits.

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 planning that prior to

November l5, l994 to have the Small Business Assistance Program provide

information regarding the rights of small businesses under the Clean

Air Act. The state has verbally committed to publish a pamphlet that

will descirbe the rights of small businesses.

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 planning that prior to November l5,

l994 to have the Small Business Assistance Program provide assistance

to small businesses on applicable requirements under the Clean Air Act

and Arizona law. The State isalso planning to provide a list of

compliance audit contractors and to educate small businesses on how to

select a contractor. In addition, AQED plans to train trade

associations as volunteers to help eligible businesses to select

contractors. ADEQ does provide in-house compliance audits and will

continue to do so, but cannot guarantee confidentiality nor immunity

from enforcement.

The sixth requirement is to develop procedures forconsideration 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 not met this requirement.

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 planning that prior to November l5, l994

that the duties of the existing Arizona Department of Environmental

Quality Ombudsman's office be expanded to encompass the specific needs

of the small business regulated community. The current ADEQ Ombudsman

reports to the Deputy Director of ADEQ, and provides services to

constituents across all ADEQ regulatory programs. The office of the

Deputy Director of ADEQ is totally separate from the regulatory

functions of the Department. It is also planned that prior to November

l5, l994 that a Deputy Ombudsman be hired to coordinate the

distribution of air quality related information on compliance methods,

technologies, permit applications. If demand requires, additional staff

will be hired to provide the necessary services for the Program.

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 Clean Air Act Amendments specify that the members

selected by the State legislature include l member each by the majority

and minority leadership of the lower house and l member each by the

majority and minority leadership of the upper house. The State

legislation provides for the appointment of two members by the Speaker

of the House and the appointment of two members by the President of the

Senate. At the time of selection, the Senate was controlled by the

Democratic party and the House was controlled by the Republican party.

Therefore, both the minority and majority leadership did select two

members for the CAP. EPA is proposing approval of this approach because

this selection is within the spirit of the law. However, if adverse

comments are received during the public comment period, EPA will re-

examine this issue.

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 Act2; (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 stating that the purpose of the panel is to

provide oversight responsibility, gauge Program effectiveness, and

render advisory opinions. Secretarial support will be provided by a

secretary associated with the small business assistance program.

Additional authorities will include ensuring Program consistency with

the Paperwork Reduction Act, Regulatory Flexibility Act, and the Equal

Access to Justice Act.

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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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The panel will review information for small business sources to

ensure that it can be understood by the lay person.

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 small business and

therefore has not established procedures for including orexcluding

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 State has committed to

adopting a process for determining eligibility at such time as the

current process is providing inadequate service to those businesses

that meet the CAA's definition of a small business.

III. This Action

In this action, EPA is proposing to partially approve and to

partially disapprove the SIP revision submitted by the State of

Arizona.

The State of Arizona has submitted a SIP revision adequately

addressing the requirements for the Small Business Ombudsman and the

Compliance Advisory Panel. However, the submittal does not adequately

meet the requirements for the Small Business Assistance Program. EPA is

therefore proposing to partially approve this submittal for satisfying

all the requirements of the Small Business Ombudsman and the Compliance

Advisory Panel and most of the requirements of the Small Business

Assistance Program. EPA is also proposing to partially disapprove this

submittal for not satisfying the Small Business Assistance Program

requirement 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.

In addition, a schedule should be submitted showing implementation of

this requirement.

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, l993 (Michael Shapiro's

memorandum to Regional Administrators). A future document 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 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, smallnot-for-profit enterprises, and

government entities withjurisdiction over populations of less than

50,000.

By this action, EPA is partially approving a State program created

for the purpose of assisting small businesses in complying with

existing statutory and regulatory requirements. The program being

partially 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 partial 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: June 10, 1994.

John Wise,

Acting Regional Administrator.

[FR Doc. 94-15306 Filed 6-22-94; 8:45 am]

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