[Federal Register Volume 60, Number 219 (Tuesday, November 14, 1995)]
[Rules and Regulations]
[Pages 57186-57188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28066]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 70

[KY-95-01; FRL-5330-2]


Clean Air Act Final Interim Approval of Operating Permits 
Program; Kentucky

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 submitted by the Kentucky 
Natural Resources and Environmental Protection Cabinet 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: December 14, 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: 
U.S. Environmental Protection Agency, Region 4, 345 Courtland Street 
NE, Atlanta, Georgia 30365, on the 3rd floor of the Tower Building. 
Interested persons wanting to examine these documents, contained in EPA 
docket number KY-95-01, should make an appointment at least 24 hours 
before the visiting day.

FOR FURTHER INFORMATION CONTACT: Yolanda Adams, Title V Program 
Development Team, Air Programs Branch, Air, Pesticides & Toxics 
Management Division, U.S. Environmental Protection Agency, Region 4, 
345 Courtland Street, NE., Atlanta, Georgia 30365, (404) 347-3555, Ext. 
4149.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose

A. Introduction

    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. 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 part 70, EPA 
may grant the program interim approval for a 

[[Page 57187]]
period of up to 2 years. If EPA has not fully approved a program by 
November 15, 1995, or by the end of an interim program, it must 
establish and implement a Federal program.
    On September 5, 1995, EPA proposed SCL interim approval of the 
operating permits program for the Commonwealth of Kentucky. See 60 FR 
46072. The September 5, 1995 notice also proposed approval of 
Kentucky's interim mechanism for implementing section 112(g) and for 
delegation of section 112 standards as promulgated. EPA did not receive 
any comments on the proposal. In this action, EPA is promulgating SCL 
interim approval of Kentucky's operating permits program, and approving 
the section 112(g) and section 112(l) mechanisms noted above.

II. Final Action and Implications

A. Title V Operating Permits Program

    The EPA is promulgating SCL interim approval of the operating 
permits program submitted by the Commonwealth of Kentucky on December 
27, 1993, and as supplemented on November 15, 1994, April 14, 1995, May 
3, 1995, and May 22, 1995. Kentucky's program substantially, but not 
fully, meets the requirements of part 70 and meets the interim approval 
requirements under 40 CFR 70.4. The Commonwealth must make the 
following changes to receive full approval: (1) revise the definitions 
of ``emissions unit'' and ``stationary source'' to include emissions of 
any pollutant listed under section 112(b) of the Act; (2) revise the 
definition of ``regulated air pollutant'' to include any pollutant 
subject to any requirements established under Section 112 of the Act; 
and (3) revise Rule 401 KAR 50:035 Section 5(2)(a) to provide for EPA 
review consistent with 40 CFR 70.8 in order to allow for requirements 
from preconstruction review permits to be incorporated into part 70 
permits via administrative amendments.
    The EPA can grant SCL interim approval to states whose programs do 
not provide for permitting all required sources if the state makes a 
showing that two criteria were met: (1) That there were ``compelling 
reasons'' for the exclusions and (2) that all required sources will be 
permitted on a schedule that ``substantially meets'' the requirements 
of part 70. EPA considers the omissions in Kentucky's definitions of 
``emissions unit'', ``stationary source'', and ``regulated air 
pollutant'', as compelling reasons for granting SCL interim approval. 
Kentucky's SCL interim approval request included a revised transition 
schedule that demonstrates the Commonwealth will permit at least 60% of 
its sources and at least 80% of its emissions during the first three 
years. The revised transition plan demonstrates that all part 70 
sources will be permitted on a schedule that substantially meets the 
requirements of part 70.
    The scope of the Commonwealth's part 70 program approved in this 
notice applies to all part 70 sources (as defined in the approved 
program) within the Commonwealth of Kentucky, except Jefferson County 
and any sources of air pollution over which an Indian Tribe has 
jurisdiction. See, e.g., 59 FR 55813, 55815-55818 (Nov. 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; see also 59 FR 43956, 43962 (Aug. 25, 1994); 58 FR 54364 (Oct. 21, 
1993).
    This interim approval, which may not be renewed, extends until 
December 15, 1997. During this interim approval period, the 
Commonwealth of Kentucky is protected from sanctions, and EPA is not 
obligated to promulgate, administer and enforce a Federal operating 
permits program in the Commonwealth. 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 3-year time period for processing the initial 
permit applications.
    If the Commonwealth fails to submit a complete corrective program 
for full approval by June 16, 1997, EPA will start an 18-month clock 
for mandatory sanctions. If Kentucky 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 Kentucky has corrected the deficiency by submitting a complete 
corrective program. Moreover, if the Administrator finds a lack of good 
faith on the part of the Commonwealth, both sanctions under section 
179(b) will apply after the expiration of the 18-month period until the 
Administrator determined that Kentucky had come into compliance. In any 
case, if, six months after application of the first sanction, Kentucky 
still has not submitted a corrective program that EPA has found 
complete, a second sanction will be required.
    If EPA disapproves Kentucky's complete corrective program, EPA will 
be required to apply one of the section 179(b) sanctions on the date 18 
months after the effective date of the disapproval, unless prior to 
that date the Commonwealth has submitted a revised program and EPA has 
determined that it corrected the deficiencies that prompted the 
disapproval. Moreover, if the Administrator finds a lack of good faith 
on the part of the Commonwealth, both sanctions under section 179(b) 
shall apply after the expiration of the 18-month period until the 
Administrator determines that Kentucky has come into compliance. In all 
cases, if, six months after EPA applies the first sanction, the 
Commonwealth has not submitted a revised program that EPA has 
determined corrects the deficiencies, a second sanction is required.
    In addition, discretionary sanctions may be applied where warranted 
any time after the expiration of an interim approval period if Kentucky 
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 Kentucky's 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 
for the Commonwealth upon interim approval expiration.

B. Preconstruction Permit Program Implementing Section 112(g)

    EPA is approving the use of Kentucky's preconstruction review 
program found in Rule 401 KAR 50:035 as a mechanism to implement 
section 112(g) during the transition period between promulgation of 
EPA's section 112(g) rule and Kentucky's adoption of rules specifically 
designed to implement section 112(g). This approval is limited to the 
implementation of the 112(g) rule and is effective only during any 
transition time between the effective date of the 112(g) rule and the 
adoption of specific rules by Kentucky to implement 112(g). The 
duration of this approval is limited to 18 months following 
promulgation by EPA of section 112(g) regulations, to provide the 
Commonwealth with adequate time to adopt regulations consistent with 
Federal requirements.

C. Program for Delegation of Section 112 Standards as Promulgated

    Requirements for approval, specified in 40 CFR 70.4(b), encompass 
section 112(l)(5) requirements for approval of a 

[[Page 57188]]
program for delegation of section 112 standards as promulgated by 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, and an expeditious compliance schedule, which are also 
requirements under part 70. Therefore, the EPA is also promulgating 
approval under section 112(l)(5) and 40 CFR 63.91 of the Commonwealth's 
program for receiving delegation of section 112 standards that are 
unchanged from Federal standards as promulgated. This program for 
delegations applies to both existing and future standards and to 
sources covered by the part 70 program as well as non-part 70 sources.

III. Administrative Requirements

A. Docket

    Copies of the Commonwealth's submittal and other information relied 
upon for the final interim approval are contained in docket number KY-
95-01 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.

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: October 31, 1995.
Patrick M. Tobin,
Acting Regional Administrator.
[FR Doc. 95-28066 Filed 11-13-95; 8:45 am]
BILLING CODE 6560-50-P