Clean Air Act Final Interim Approval of Operating Permits Program and Approval of Delegation of Section 112(l); State of Iowa

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 70

[AD-FRL-5289-9]

Clean Air Act Final Interim Approval of Operating Permits Program

and Approval of Delegation of Section 112(l); State of Iowa

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 Iowa 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.

EPA is also approving, under section 112(l), the state's program for

accepting delegation of section 112 standards.

EFFECTIVE DATE: This rule will become effective on October 2, 1995.

ADDRESSES: Copies of the state's submittal and other supporting

information used in developing the final interim approval are available

for inspection during normal business hours at the following location:

USEPA Region VII, 726 Minnesota Avenue, Kansas City, Kansas, 66101.

FOR FURTHER INFORMATION CONTACT: Christopher D. Hess at (913) 551-7213.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose

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 one 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 section 502 and part 70, EPA may grant the program

interim approval for a period of up to two years. 40 CFR 70.4(d)(3)

sets forth the minimum requirements a state program must meet in order

to be eligible for interim approval. The 11 minimum requirements

include: (1) Adequate fees, (2) applicable requirements, (3) fixed term

permits, (4) public participation,

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(5) EPA and affected state review, (6) no permit issuance if objection

by EPA, (7) basic enforcement authority, (8) operational flexiblity,

(9) streamlined procedures for issuing and revising permits and for

determining completeness of applications, (10) adequate permit

application requirements, and (11) alternative operating scenarios. If

EPA has not fully approved a program by two years after the November

15, 1993, date, or by the end of an interim program, it must establish

and implement a Federal program.

On April 26, 1995, EPA proposed interim approval of the operating

permits program for Iowa (see 60 FR 20465-20469). The EPA received no

public comments on the proposal. In this notice, the EPA is taking

final action to grant interim approval of the operating permits program

for Iowa.

II. Final Action and Implications

A. Analysis of State Submission

In proposing interim approval of the Iowa program, the EPA

determined that the state met the minimum requirements for interim

approval outlined in 40 CFR 70.4(d)(3)(i)-(xi). In order to receive

full approval, the EPA outlined specific requirements in 60 FR 20465-69

that the state must meet.

These requirements included:

1. Four specific rule revisions, as well as corrections to the acid

rain regulations. The state adopted all required rule revisions and

corrections on May 15, 1995, and submitted them to the EPA in a letter

dated June 23, 1995. The rule revision and correction requirements

therefore have been met.

2. Finalizing the operating permit fee and submission of a revised

fee demonstration as necessary. In section II.A.2.a. of the April 26,

1995, notice of proposed interim approval, the EPA noted the state only

collected half of its operating permit fee of $24 until it could be

determined if the full amount was necessary to implement the program.

On March 20, 1995, the state elected to collect the full amount of

$24 and submitted documentation of this action to the EPA on May 26,

1995. Since the EPA previously determined the adequacy of a $24

operating permit fee, this requirement has been met.

3. Hiring the originally forecasted amount of personnel to

implement the Title V program or submission of a revised workload

analysis that adequately describes how the program may be successfully

implemented with fewer personnel.

Although the state has hired additional personnel for the purpose

of implementing Title V since the April 26, 1995, Federal Register

notice, the state has not met the original personnel forecast, nor has

it submitted a revised workload analysis. This requirement for full

approval has not been met; consequently, EPA is granting interim

approval of the program.

B. Section 112(g)

To regulate hazardous air pollutants, the EPA will establish

performance standards for each industry based on Maximum Achievable

Control Technology (MACT) under section 112(g) of the Act.

On February 14, 1995, the EPA published an interpretation of

section 112(g) applicability in 60 FR 8333. The notice postpones the

effective date of section 112(g) until after EPA has promulgated a rule

addressing that provision. The notice sets forth in detail the

rationale for the interpretation.

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 so as 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), Iowa must have a Federally

enforceable mechanism for implementing section 112(g) during the period

between promulgation of the Federal section 112(g) rule and adoption of

implementing Federal regulations.

The EPA is aware that Iowa lacks a program designed specifically to

implement section 112(g). However, Iowa has adopted a subrule amendment

at IAC 567-22.3(6) that gives the state authority to limit emissions of

hazardous air pollutants (HAP). Iowa may use this authority to

establish case-by case MACTs as needed for the review of new or

modified HAP sources until such time as it adopts section 112(g).

C. Section 112(l)

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, as well as for sources not subject to part 70 requirements.

Section 112(l)(5) requires that the state's program contain adequate

authorities, adequate resources for implementation, and an expeditious

compliance schedule, which are also requirements under part 70.

Therefore, the EPA is granting full approval under section 112(l)(5)

and 40 CFR 63.91 of these programs for receiving delegation of section

112 standards that are unchanged from Federal standards as promulgated.

D. Final Action

The EPA is granting interim approval of the operating permits

program submitted by Iowa on November 15, 1993. In addition, the EPA is

granting approval of the state's program for receiving delegation of

section 112 standards. In order to receive full approval of the

operating permit program, the state must hire the original amount of

forecasted personnel or provide a revised workload analysis describing

how the program may be successfully implemented with fewer personnel.

This approval includes the following regulations adopted by the

state of Iowa:

1. Iowa Administrative Code 567-22.100-147, effective March 16, 1994;

2. Amendments to Iowa Administrative Code 567-22.3(6); 101-103; 105;

107-108; 110; 120; 123-124; 132; 134; 139; 141-142; 146; 147; adopted

May 15, 1995, and effective July 12, 1995; and

3. Iowa Administrative Code 567-2 (effective September 7, 1988); 567-7

(effective September 7, 1988); 567-10 (effective September 16, 1992).

The scope of Iowa's part 70 program approved in this notice applies

to all part 70 sources (as defined in the approved program) within

Iowa, except any sources of air pollution over which an Indian Tribe

has jurisdiction (see 59 FR 55813, 55815-18 (November 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; 59 FR 43956, 43962 (August 25, 1994); and 58 FR 54364 (October 21,

1993).

This interim approval, which may not be renewed, extends until

October 1, 1997.

During this interim approval period, Iowa is protected from

sanctions, and EPA is not obligated to promulgate, administer, or

enforce a Federal operating permits program in the state.

Permits issued under a program with interim approval have full

standing with respect to part 70, and the one-year time period for

submittal of permit applications by subject sources begins upon the

effective date of this interim approval, as does the three-year time

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period for processing the initial permit applications.

If Iowa fails to submit a complete corrective program for full

approval by April 1, 1997, EPA will start an 18-month clock for

mandatory sanctions. If Iowa then fails to submit a corrective program

that EPA finds complete before the expiration of that 18-month period,

EPA will be required to apply one of the sanctions in section 179(b) of

the Act, which will remain in effect until EPA determines that Iowa has

corrected the deficiency by submitting a complete corrective program.

Moreover, if the Administrator finds a lack of good faith on the

part of Iowa, both sanctions under section 179(b) will apply after the

expiration of the 18-month period until the Administrator determines

that the state has come into compliance. In any case, if, six months

after application of the first sanction, Iowa still has not submitted a

corrective program that EPA has found complete, a second sanction will

be required.

In addition, discretionary sanctions may be applied where warranted

any time after the expiration of an interim approval period if Iowa has

not submitted a timely complete corrective program or EPA has

disapproved its submitted corrective program.

If EPA has not granted full approval to the Iowa program 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 upon interim approval expiration.

III. Administrative Requirements

A. Docket

Copies of the state's submittal and other information relied upon

for the final interim approval are contained in a docket maintained at

the EPA Regional Office. The docket is an organized and complete file

of all the information submitted to, or otherwise considered by, EPA in

the development of this 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.

C. Regulatory Flexibility Act

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.

D. Unfunded Mandates

Under sections 202, 203, and 205 of the Unfunded Mandates Reform

Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22,

1995, EPA must undertake various actions in association with proposed

or final rules that include a Federal mandate that may result in

estimated costs of $100 million or more to the private sector, or to

state, local, or tribal governments in the aggregate.

Through submission of these operating permit programs, the state of

Iowa has elected to adopt the program provided for under Title V of the

Clean Air Act. These rules bind the state to perform certain actions

and also require the private sector to perform certain duties. To the

extent that the rules being finalized for approval by this action will

impose new requirements, sources are already subject to these

regulations under state law. EPA has determined that this interim final

action does not include a mandate that may result in estimated costs of

$100 million or more to state, local, or tribal governments in the

aggregate or to the private sector.

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: August 16, 1995.

Dennis Grams,

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 Iowa in

alphabetical order to read as follows:

Appendix A to Part 70--Approval Status of State and Local Operating

Permits Programs

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Iowa

(a) The Iowa Department of Natural Resources submitted on

November 15, 1993, and supplemented by correspondence dated March

15, 1994; August 8, 1994; October 5, 1994; December 6, 1994;

December 15, 1994; February 6, 1995; March 1, 1995; March 23, 1995;

and May 26, 1995. Interim approval effective on October 2, 1995;

interim approval expires October 1, 1997.

(b) [Reserved]

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[FR Doc. 95-21760 Filed 8-31-95; 8:45 am]

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