Clean Air Act Final Source Category Limited Interim Approval of the Operating Permits Program; Michigan

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 70

[MI001; FRL-5842-3]

Clean Air Act Final Source Category Limited Interim Approval of

the Operating Permits Program; Michigan

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final interim approval.

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SUMMARY: The EPA is promulgating source category limited (SCL) interim

approval of the operating permits program revision submitted by the

State of Michigan 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.

EFFECTIVE DATE: July 18, 1997.

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

information used in developing the final SCL interim approval are

available for inspection during normal business hours at the following

location: EPA Region 5, Air and Radiation Division (AR-18J), 77 West

Jackson Boulevard, Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: Beth Valenziano, Permits and Grants

Section (AR-18J), EPA, 77 West Jackson Boulevard, Chicago, Illinois

60604, (312) 886-2703. E-mail address: [email protected].

SUPPLEMENTARY INFORMATION:

I. Background and Purpose

Title V of the Clean Air Act Amendments of 1990 (title V), and the

implementing regulations at 40 CFR part 70 require that States develop

and submit operating permits programs to EPA. The EPA's program review

occurs pursuant to section 502 of the Clean Air Act (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 part 70, EPA may grant the program interim approval.

On June 24, 1996, EPA proposed interim approval of Michigan's

operating permits program (61 FR 32391). In that notice, EPA recognized

Michigan's 4 year permit issuance schedule for purposes of determining

fee schedule sufficiency, but EPA could not propose SCL interim

approval of the 4 year schedule because it had not been approved into

the State's regulations. At the time, the State rules provided for a 3

year issuance schedule, in accordance with 40 CFR 70.4(b)(11)(ii).

However, EPA proposed SCL interim approval in the alternative, so that

EPA would have the authority to finalize SCL interim approval if

Michigan were able to submit revised rules that included the 4 year

issuance schedule prior to EPA's final action on Michigan's program.

See 61 FR 32393-32394.

On January 10, 1997, EPA finalized interim approval of the State

program (62 FR 1387). The final approval became effective on February

10, 1997. In that document, EPA did not grant SCL interim approval

because Michigan was not able to submit its rule revisions in time to

be included in the final action. However, EPA noted that it would act

on Michigan's request for SCL interim approval once the State submitted

its revised regulations as a part 70 program revision. See 62 FR 1390.

The EPA received Michigan's revised program submittal requesting

SCL interim approval on April 18, 1997. The request was submitted by

the Governor's designee, the Director of the Michigan Department of

Environmental Quality (MDEQ). The submittal included the State's

revised operating permit program regulations, as well as information

documenting its procedurally correct adoption. In this document, EPA is

taking final action to promulgate SCL interim approval of the operating

permits program for the State of Michigan.

II. Final Action and Implications

A. Analysis of State Submission

Michigan's initial part 70 program submittal to EPA, dated May 15,

1995, included a request for SCL interim approval of its 4 year permit

issuance schedule. On July 17, 1995 and October 30, 1995, Michigan

supplemented its initial submittal with additional program

documentation, including support information for the SCL interim

[[Page 33011]]

approval request. On April 9, 1997, Michigan submitted its revised

operating permit program rules that were needed for EPA to act on the

State's SCL interim approval request.

SCL interim approval allows EPA to approve a State operating

permits program that establishes an initial permit issuance schedule up

to 2 years past the 3 year phase in period required by 40 CFR

70.4(b)(11)(ii). To approve such a permitting schedule, a State must

demonstrate compelling reasons why it cannot permit initial part 70

sources in 3 years. In addition, a State must demonstrate that the

extended issuance schedule substantially meets the requirements of part

70 by permitting 60 percent of the sources and 80 percent of the

emissions during the first 3 years of the program. See the August 2,

1993 memorandum from John S. Seitz, Director, Office of Air Quality

Planning and Standards, entitled ``Interim Title V Program Approvals''.

Michigan's July 17, 1995 and October 30, 1995 supplemental program

submittals met these requirements, as outlined in the proposed interim

approval of Michigan's program (61 FR 32393-32394).

However, as discussed above, EPA could not grant Michigan SCL

interim approval as part of its initial action on the State program

because the State's operating permit program regulations provided for a

3 year permit issuance schedule. In other words, because the State

rules currently met the 3 year issuance requirement, SCL interim

approval was not warranted. Now that Michigan has submitted revisions

to its rules that provide for the 4 year schedule, EPA is taking this

action to approve the State's SCL interim approval request.

As addressed in the final interim approval of Michigan's operating

permits program (62 FR 1390), EPA is finalizing SCL interim approval

without reproposing the action because the 4 year permit issuance

schedule in the State's final rules is identical to the 4 year schedule

that EPA proposed for SCL interim approval in the alternative. The only

comment EPA received on that proposal pertaining to the SCL interim

approval issue was a request from MDEQ to clarify the requirements for

submitting a program revision once the State rule revisions were final.

B. Final Action

The EPA is promulgating SCL interim approval of Michigan's 4 year

initial permit issuance schedule in accordance with MDEQ's April 9,

1997 request. This action only revises the status of Michigan's program

from interim approval to SCL interim approval, and does not otherwise

change EPA's final interim approval as published on January 10, 1997.

In addition, this action does not affect the interim approval

expiration date of February 10, 1999. Although Michigan's April 9, 1997

submittal included other regulatory revisions in addition to the

changes to the State's permit issuance schedule, EPA is not acting on

those changes at this time. As addressed in MDEQ's April 9, 1997

submittal, MDEQ and EPA will continue to work together to resolve the

State's interim approval issues, and will address these additional

program revisions at a later date.

III. Administrative Requirements

A. Official File

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

for the final SCL interim approval are maintained in the official file

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

record of all the information submitted to, or otherwise considered by,

EPA in the development of this final SCL interim approval. The official

file 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,

signed into law on March 22, 1995, EPA must prepare a budgetary impact

statement to accompany any proposed or final rule that includes a

Federal mandate that may result in estimated costs to State, local, or

tribal governments in the aggregate, or to the private sector, of $100

million or more. Under section 205, 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

requires 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 final SCL interim approval action

promulgated today does not include a Federal 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. 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.

Under 5 U.S.C. 801(a)(1)(A) as added 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 the rule in today's

Federal Register. This rule is not a ``major rule'' as defined by 5

U.S.C. 804(2).

List of Subjects in 40 CFR Part 70

Environmental protection, Administrative practice and procedure,

Air pollution control, Intergovernmental relations, Operating permits,

and Reporting and recordkeeping requirements.

Dated: June 5, 1997.

David A. Ullrich,

Acting 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. In appendix A to part 70 the entry for ``Michigan'' is amended

by revising paragraph (a) to read as follows:

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

Permits Programs

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Michigan

(a)(1) Department of Environmental Quality: received on May 16,

1995, July 20, 1995, October 6, 1995, November 7, 1995, and January 8,

1996; interim approval effective on February 10, 1997; interim approval

expires February 10, 1999.

(2) Interim approval revised to provide for a 4 year initial permit

issuance schedule under source category limited (SCL) interim approval,

pursuant to the Department of Environmental Quality's request

[[Page 33012]]

received on April 18, 1997. SCL interim approval effective on July 18,

1997.

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[FR Doc. 97-15852 Filed 6-17-97; 8:45 am]

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