[Federal Register Volume 60, Number 170 (Friday, September 1, 1995)]
[Rules and Regulations]
[Pages 45671-45673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21760]



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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, 

[[Page 45672]]
(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]
BILLING CODE 6560-50-P