[Federal Register Volume 62, Number 117 (Wednesday, June 18, 1997)]
[Rules and Regulations]
[Pages 33010-33012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15852]


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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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