[Federal Register Volume 59, Number 120 (Thursday, June 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15306]


[[Page Unknown]]

[Federal Register: June 23, 1994]


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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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