Clean Air Act Final Interim Approval Of Operating Permits Program: The U.S. Virgin Islands

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 70

[VI001; FRL-5544-8]

Clean Air Act Final Interim Approval Of Operating Permits

Program: The U.S. Virgin Islands

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final interim approval.

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SUMMARY: The EPA is promulgating interim approval of the operating

permits program submitted by the U.S. Virgin Islands 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.

EFFECTIVE DATE: This program will be effective August 30, 1996.

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

information used in developing the final interim approval as well as

the Technical Support Document are available for inspection during

normal business hours at the following locations:

EPA Region II, 290 Broadway, 25th Floor, New York, New York 10007-

1866, Attention: Steven C. Riva.

EPA Region II, Caribbean Field Office, Centro Europa Building,

Suite 417, 1492 Ponce de Leon Avenue, Stop 22, San Juan, Puerto Rico

00907-4127, Attention: Jose Ivan Guzman.

The U.S. Virgin Islands Department of Planning and Natural

Resources (VIDPNR), Division of Environmental Protection, Building 111,

Apartment 14A, Water Gut Homes, Christainsted, St. Croix, U.S. Virgin

Islands 00820, Attention: Leonard Reed.

FOR FURTHER INFORMATION CONTACT: Umesh Dholakia, Permitting and Toxics

Support Section, at the above EPA office in New York or at telephone

number (212) 637-4023. Jose Ivan Guzman of the Caribbean Field Office

can be reached at (809) 729-6951, extension 223.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose

Title V 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 the EPA by

November 15, 1993, and that the 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. If a state does not have an approved program by two years

after the November 15, 1993 date, EPA must establish and implement a

Federal program.

On January 25, 1996, the EPA proposed approval of the Operating

Permits Program submitted for the Virgin Islands. (See 61 FR 2216). No

comment was received on the Proposed Approval Notice. In this notice,

the EPA is taking final action to promulgate interim approval of the

Operating Permits Program for the Virgin Islands.

II. Final Action and Implications

A. Analysis of State Submission

On January 25, 1996, the EPA proposed full approval of VIDPNR's

Title V Operating Permits Program. The proposed approval required that

the VIDPNR correct the wording errors in its legislation prior to

receiving final full approval. The Virgin Islands has not corrected

those errors. However, EPA believes that these wording errors were

accidental and do not reflect the intent of the legislation. The Virgin

Islands' Rules and Regulations, Air Pollution Control, Title 12,

Chapter 9, Subchapters 204 and 206, are based on the intent reflected

in the legislation and in accordance with part 70. In addition, the

program elements discussed in the proposal notice are unchanged from

the analysis in the Final Interim Approval Notice and continue to fully

meet the requirements of 40 CFR part 70.

B. Options for Approval/Disapproval

1. Title V Operating Permit Program

The EPA is promulgating interim approval of the Operating Permits

Program submitted to the EPA by the VIDPNR on November 18, 1993 with

supplemental packages through June 9, 1995. Among other things, the

VIDPNR has demonstrated that the program substantially meets the

minimum requirements for a state operating permit program as specified

in 40 CFR part 70. This interim approval extends until August 31, 1998.

Under the approved interim operating permit program, VIDPNR is allowed

to issue federally enforceable operating permits to all major

stationary sources and to certain other sources for the duration of

this approval. During this interim approval period, the Virgin Islands

is protected from sanctions, and EPA is not obligated to promulgate,

administer and enforce a federal operating permit program in Virgin

Islands. Permits issued under a program with interim approval have full

standing with respect to part 70, and the 1-year time period for

submittal of permit applications by subject sources begins upon the

effective date of this interim approval, as does the 3-year time period

for processing the initial permit applications. In order to ensure that

a fully approved program will be in place by the expiration date of the

interim approval, Virgin Islands must submit a modified program to EPA

by February 27, 1998 that addresses the following wording errors in the

Virgin Islands' legislation (Act No. 6011 signed into law September 2,

1994):

(1) Section 212(a) states that ``No rule or regulation and no

amendment * * * shall take effect AFTER public comment and/or hearing

on due notice as provided herein''. The word ``after'' should be

replaced by the word ``without''.

(2) Section 205 (a), (b)(1) and (2)--replace ``chapter'' with

``with respect to Part 70 permit program''.

(3) Section 215 (a)--delete ``compliance order'' and replace with

``notice of violation'' after ``Commissioner is authorized to issue..''

(4) Section 215 (b)(3)--There should be an additional sentence

following ``$250,000''. ``The assessment of any administrative fine in

excess of $250,000 may be enforced by the commencement of a civil

action by the Attorney General pursuant to the Virgin Islands Law''.

If Virgin Islands (VI) fails to submit a complete corrective

program for full approval by February 27, 1998, EPA will start an 18-

month clock for mandatory sanctions. If VI then fails to submit a

complete corrective program before the expiration of that 18-month

period, EPA will apply sanctions as required by Section 502(d)(2) of

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

corrected the deficiencies by submitting a complete corrective program.

If EPA disapproves VI's complete corrected program, EPA will apply

sanctions as required by Section 502(d)(2) on the date 18 months after

the effective date of the disapproval, unless prior to that date, VI

has submitted a revised program and EPA has determined that it

corrected the deficiencies that prompted the disapproval.

In addition, discretionary sanctions may be applied where warranted

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

not timely submitted a complete corrective program or EPA has

disapproved its submitted corrective program. Moreover, if EPA has not

granted full approval to the VI program by the

[[Page 39883]]

expiration of this interim approval, EPA must promulgate, administer

and enforce a federal operating permit program for the Virgin Islands

upon interim approval expiration.

2. Program for Delegation of Section 112 Standards as Promulgated

The 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 the EPA as they

apply to part 70 sources. Section 112(l)(5) requires that the State's

program contain adequate authorities, adequate resources for

implementation, an expeditious compliance schedule, and adequate

enforcement ability, which are also requirements under part 70. In a

letter dated May 30, 1995, VIDPNR requested delegation through 112(l)

of all existing 112 standards and all future 112 standards for both

part 70 and non-part 70 sources and infrastructure programs. In the

letter, VIDPNR demonstrated that they have sufficient legal

authorities, adequate resources, the capability for automatic

delegation of future standards, and adequate enforcement ability for

implementation of section 112 of the Act for both part 70 sources and

non-part 70 sources. Therefore, the EPA is also promulgating approval

under section 112(l)(5) and 40 CFR 63.91 to Virgin Islands for its

program mechanism for receiving delegation of all existing and future

section 112(d) standards for both part 70 and non-part 70 sources, and

section 112 infrastructure programs that are unchanged from Federal

rules as promulgated.

III. Administrative Requirements

A. Docket

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

for the final interim approval are contained in the docket maintained

at the EPA Regional Offices in New York and Puerto Rico and at VIDPNR.

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 Section 202 of the Unfunded Mandates Reform Act of 1995

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

must prepare a budgetary impact statement to accompany any proposed or

final rule that includes a Federal mandate that may result in annual

estimated costs to State, local, or tribal governments in the

aggregate, or to the private sector, of $100 million or more. Under

Section 205, the EPA must select the most cost-effective and least

burdensome alternative that achieves the objectives of the rule and is

consistent with statutory requirements. Section 203 of the Unfunded

Mandates Act requires the EPA to establish a plan for informing and

advising any small governments that may be significantly or uniquely

impacted by the rule.

The EPA has determined that the approval action promulgated today

does not include a Federal mandate that may result in annual 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 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.

E. Submission to Congress and the General Accounting Office

Under section 801(a)(1)(A) of the Administrative Procedure Act

(APA) as amended by the Small Business Regulatory Enforcement Fairness

Act of 1996, EPA submitted a report containing this rule and other

required information to the U.S. Senate, the U.S. House of

Representatives and the Comptroller General of the General Accounting

Office prior to publication of this rule in today's Federal Register.

This rule is not a ``major rule'' as defined by section 804(2) of the

APA as amended.

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: July 16, 1996.

Jeanne M. Fox,

Regional Administrator.

40 CFR part 70 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 Virgin

Islands in alphabetical order to read as follows:

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

Permits Programs

* * * * *

Virgin Islands

(a) The Virgin Islands Department of Natural Resources submitted an

operating permits program on November 18, 1993 with supplements through

June 9, 1995; interim approval effective on August 30, 1996.

(b) (Reserved)

* * * * * *

[FR Doc. 96-19440 Filed 7-30-96; 8:45 am]

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