[Federal Register Volume 59, Number 103 (Tuesday, May 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13188]


[[Page Unknown]]

[Federal Register: May 31, 1994]


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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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