[Federal Register Volume 63, Number 163 (Monday, August 24, 1998)]
[Rules and Regulations]
[Pages 45114-45127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22193]



[[Page 45113]]

_______________________________________________________________________

Part III





Environmental Protection Agency





_______________________________________________________________________



40 CFR Parts 123 and 501



State Sewage Sludge Management Regulations Streamlining; Final Rule

  Federal Register / Vol. 63, No. 163 / Monday, August 24, 1998 / Rules 
and Regulations  

[[Page 45114]]



ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 123 and 501

[FRL-6145-8]
RIN 2040-AC87


Streamlining the State Sewage Sludge Management Regulations

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is today amending 
its regulations that establish the conditions for States seeking EPA 
approval to operate sewage sludge permit programs pursuant to the Clean 
Water Act (CWA). Existing requirements were modeled on the National 
Pollutant Discharge Elimination System (NPDES) requirements for EPA 
authorization of State wastewater effluent discharge programs. Many 
States, however, manage sewage sludge through State solid waste 
programs that are often structured quite differently from the NPDES 
programs. As a result, existing State sewage sludge programs would 
require significant changes for EPA approval under the current 
requirements. EPA is eager for States with well-run sewage sludge 
management programs to obtain approval to operate their own permit 
programs under the CWA without having to make unnecessary 
administrative and programmatic changes unrelated to protection of 
public health and the environment. Consequently, today's changes 
streamline the current regulations to ease the authorization process 
for States. These changes will provide flexibility to States in 
implementing their permit programs, and, at the same time, ensure that 
permitting determinations are based on environmental and public health 
considerations.

EFFECTIVE DATE: The final rule is effective on September 23, 1998. 
Section 501.15(d)(1)(i)(B) is stayed until the future publication of 40 
CFR 122.21(q). EPA will publish a document announcing the effective 
date of Sec. 501.15(d)(1)(i)(B).

FOR FURTHER INFORMATION CONTACT: Wendy Bell, (202) 260-9534, Permits 
Division (4203), U.S. EPA, 401 M Street S.W., Washington, D.C., 20460.

SUPPLEMENTARY INFORMATION:

Regulated Entities

    Entities potentially regulated by this action are governmental 
entities responsible for implementation of the State Sewage Sludge 
Management Program. Regulated entities include:

------------------------------------------------------------------------
                Category                  Examples of regulated entities
------------------------------------------------------------------------
State and Tribal government............  States and Tribes that request 
                                          authorization of their sewage 
                                          sludge management program.    
Federal government.....................  EPA Regional offices that      
                                          approve State sewage sludge   
                                          management programs.          
------------------------------------------------------------------------

This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that EPA is now aware 
could potentially be regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine whether 
your organization is regulated by this action, you should carefully 
examine the applicability criteria in parts 123 and 501 of title 40 of 
the Code of Federal Regulations. If you have questions regarding the 
applicability of this action to a particular entity, consult the person 
listed in the preceding FOR FURTHER INFORMATION CONTACT section.
    Information in the preamble is organized as follows:

I. Background
    A. Water Quality Act of 1987
    B. EPA's Sewage Sludge Management Program
II. Description of Today's Final Rule and Response to Comments
    A. General
    B. Part 123
    C. Part 501
III. Regulatory Requirements
    A. Executive Order 12866
    B. Executive Order 12875
    C. Paperwork Reduction Act
    D. Regulatory Flexibility Act
    E. Unfunded Mandates
    F. Submission to Congress and the General Accounting Office
    G. National Technology Transfer and Advancement Act
    H. Executive Order 13045

I. Background

    Implementation of the CWA has increased the extent to which 
wastewater is treated before being discharged to surface waters. At 
publicly owned treatment works (POTWs), implementation of secondary and 
advanced treatment requirements under the NPDES Program has improved 
effluent quality while increasing the amount of sewage sludge being 
generated. EPA estimates that 7 million dry metric tons of sewage 
sludge is generated by about 19,500 domestic wastewater facilities. 
Proper management of this growing amount of sewage sludge is becoming 
increasingly important as efforts to remove pollutants from wastewater 
become more effective.
    Several options exist for dealing with these vast quantities of 
sewage sludge. One such option is beneficial use. EPA considers sewage 
sludge a valuable resource since it contains nutrients and has physical 
properties that make it useful as a fertilizer and soil conditioner. 
Sewage sludge has been used for its beneficial qualities on 
agricultural lands, in forests, for landscaping projects, and to 
reclaim strip-mined land. EPA will continue to encourage such 
practices.
    Regulation of the use or disposal of sewage sludge is important 
because improper use or disposal can adversely affect surface water, 
ground water, wetlands, and public health through a variety of exposure 
pathways. The multi-media nature of the risks and exposure pathways 
requires a comprehensive approach to protect public health and the 
environment in order to promote the beneficial use of sewage sludge and 
ensure that solving problems in one medium will not create problems for 
another.
    EPA notes that the term ``biosolids'' is now being used by 
professional organizations and other stakeholders in place of ``sewage 
sludge'' to emphasize that it is a resource that can be recycled 
beneficially. EPA plans to work with these stakeholders to establish a 
definition for ``biosolids'' that is consistent with the definition of 
``sewage sludge'' in the CWA. In the meantime, EPA encourages the use 
of the term ``biosolids'' in order to promote public acceptance of 
beneficial uses for these residuals of wastewater treatment.

A. Water Quality Act of 1987

    Section 406 of the Water Quality Act of 1987, which amended section 
405 of the CWA, established a comprehensive program for reducing the 
risks to public health and the environment from the use or disposal of 
sewage sludge. This program included a requirement for EPA promulgation 
of sewage sludge standards. Furthermore, the 1987

[[Page 45115]]

amendments required that all NPDES permits issued to POTWs and other 
treatment works treating domestic sewage (TWTDS) contain conditions 
implementing sewage sludge standards, unless such conditions are 
included in other permits. The other permits may either be other 
federal permits or State permits issued under approved State programs. 
The amendments also provided that the Administrator may issue separate 
sewage sludge permits to TWTDS that are not subject to section 402 of 
the CWA or to any of the other listed permit programs. However, the 
amendments provided that the standards for use or disposal are 
enforceable directly against any user or disposer of sewage sludge 
under section 405(e) of the CWA. In other words, a TWTDS and any other 
user or disposer must comply with the standards by the statutory 
compliance deadlines whether or not a permit incorporating the 
standards has been issued to the TWTDS.

B. EPA's Sewage Sludge Management Program

    In 1989, EPA published regulations that establish the requirements 
and procedures a State must follow to obtain approval to operate a 
State sewage sludge management program under section 405(f)(1) of the 
CWA. These regulations established the requirements for States that 
chose to implement their sewage sludge programs through existing State 
NPDES programs (40 CFR part 123) as well as requirements for States 
that chose non-NPDES sewage sludge programs (40 CFR part 501) as the 
vehicle for managing sewage sludge in their States. These regulations 
also revised the NPDES permit requirements and procedures (parts 122 
and 124) to incorporate sewage sludge permitting requirements. See 54 
FR 18716 (May 2, 1989). On February 19, 1993 (58 FR 9404) these 
regulations were modified to allow for phased permit application 
submittal procedures. The basic requirements and procedures for States 
which seek EPA approval to administer a sewage sludge management 
program are the same under part 123 and part 501. EPA published the 
requirements in both places based on the belief that States that choose 
to add sewage sludge to their NPDES programs would find it easier if 
the requirements and approval procedures for the sewage sludge program 
were included along with the other NPDES requirements in part 123.
    State assumption of the sewage sludge program is optional and until 
State sewage sludge programs are authorized, EPA will administer the 
program. Two States (Utah and Oklahoma) have been authorized at this 
time. EPA is working with a number of other States seeking 
authorization for the Federal sewage sludge permit and management 
program.
    In discussions with these States, EPA found that the sewage sludge 
management program regulations were often a barrier to authorization. 
Given the wide and successful regulation of sewage sludge use or 
disposal by a number of States, EPA undertook a review of its 
regulations looking at ways to simplify the approval process.
    In order to provide greater flexibility to the States, EPA is 
modifying its sewage sludge management program regulations to 
accommodate more administrative and programmatic variations in State 
programs. EPA stresses that its willingness to allow greater variation 
in the State permit programs does not mean that the Agency will retreat 
from its responsibility to ensure public participation and protection 
of public health and the environment. EPA will not approve State 
programs that do not provide adequate protection.

II. Description of Today's Final Rule and Response to Comments

A. General

    EPA started the process that led to today's rule by reviewing 
information provided by States with active State sewage sludge 
programs. EPA then solicited input on two successive draft proposals 
from various stakeholders, including States, associations and 
environmental groups. The March 11, 1997 proposal was an outgrowth of 
that process and today's final rule continues to incorporate many of 
the suggestions made by commenters received on both preproposal drafts. 
EPA today finalizes changes to parts 123 and 501 that will provide more 
flexibility to States and ease the process of authorization. Under the 
previous regulations, States that chose to implement sewage sludge 
requirements through their NPDES programs had to meet the requirements 
and follow the procedures in part 123. States that wanted to obtain 
approval for existing non-NPDES programs had to comply with the 
procedures and requirements in part 501. These requirements for 
authorization under an NPDES or other type of program were very 
similar.
    As part of an overall effort to eliminate unnecessary regulations, 
EPA is deleting the provisions of part 123 that contain State program 
requirements applying solely to sewage sludge. These provisions simply 
repeat the requirements in part 501, and EPA does not believe both sets 
of regulations are necessary. Under today's rule, States seeking 
approval to operate State sewage sludge management programs under 
section 405(f)(1) must meet the requirements and procedures in part 501 
when submitting sewage sludge management programs. A State is free to 
operate an approvable sewage sludge management program as part of its 
existing State NPDES regulatory program or as part of its State solid 
waste management program or as part of another program. The 
requirements and procedures for approval are the same. Today's rule is 
not intended to preclude States from amending their existing, approved 
NPDES programs to include sewage sludge. In fact, EPA believes that 
many States will choose this route when they seek approval of their 
sewage sludge programs. States that intend to rely on their existing 
NPDES programs for regulation of sewage sludge may need to modify their 
programs to comply with part 501.
    All sewage sludge programs approved under part 501 must provide for 
citizen suits and public participation in State enforcement 
proceedings, whether a State program is managed through an NPDES 
program or not. Section 501.17(d) contains the same requirements for 
public participation in State enforcement proceedings as 
Sec. 123.27(d). Further, it should be noted that, under section 505 of 
the CWA, citizen suits are authorized for any violation of the 
regulations containing the standards for the use or disposal of sewage 
sludge (40 CFR part 503).
    Because part 501 was modeled on the NPDES program, States that 
manage their sewage sludge through solid waste or other programs may 
heretofore have had difficulties in meeting some of its procedural 
requirements because these programs have different requirements. 
Today's rule modifies some of the requirements in part 501 to make it 
easier for States with well-run sewage sludge programs to obtain 
approval for their programs.

B. Part 123

    Part 123 establishes the program requirements and approval 
procedures for States that seek EPA approval to administer NPDES permit 
programs pursuant to section 402 of the CWA. Today's rule modifies part 
123 by deleting certain specific references to sewage sludge 
requirements in order to make it clear that all State sewage sludge 
programs (both NPDES and non-NPDES) are subject to the requirements in 
part 501. The deleted references occur in Secs. 123.1, 123.2, 123.22, 
123.24 through 123.26, and 123.45. The rule

[[Page 45116]]

also amends Secs. 123.42, 123.44, and 123.62 through 123.64 to clarify 
the cross-references in the part 123 sections that apply to sewage 
sludge and NPDES State programs. EPA received only supporting comments 
on this part, and it is unchanged from the proposal.

C. Part 501

1. Purpose and Scope
    Section 501.1 describes the general requirements for EPA approval 
of a State sewage sludge program. Today's rule modifies Sec. 501.1(b) 
to explain that part 501 specifies the requirements and procedures for 
approval of all State sludge management programs, including those 
programs that are operated under the aegis of a State's NPDES program 
as well as those operated under other non-NPDES programs.
    Section 501.1(d)(1) and the rest of paragraph (d) have been 
renumbered because the existing text does not have a Sec. 501.1(d)(2). 
Today's rule deletes the requirement in Sec. 501.1(d)(1) that a State 
sludge management program have the authority to address sewage sludge 
transport and storage. This requirement is deleted because there are no 
Federal standards that regulate the storage of sewage sludge for less 
than two years or sewage sludge transport. Where sewage sludge remains 
on the land for longer than two years, it is deemed to be surface 
disposal rather than storage under 40 CFR 503.20(b) and is regulated 
under part 503. EPA is working with the Department of Agriculture to 
develop a guidance document that provides information on appropriate 
sewage sludge storage methods.
    The current language in this section includes a requirement that a 
State sewage sludge program must include the authority to regulate 
Federal facilities. This requirement is not being changed in today's 
rule. A State does not have to have the authority to regulate Federal 
facilities under its approved NPDES program in order for its sewage 
sludge program to be approved. If a State does not have NPDES Federal 
facility authority, the State must have authority to regulate sewage 
sludge from the State's Federal facilities under a non-NPDES program.
    The language in this section clarifies that a State must have the 
authority to regulate only those sewage sludge management activities 
covered by part 503. A State does not need the authority to regulate a 
practice not covered by part 503, such as making bricks out of sewage 
sludge.
    Section 501.1(d)(1)(ii) contains a list of the covered sewage 
sludge use or disposal practices. For consistency with the terminology 
used in part 503, today's rule deletes the phrase ``distribution and 
marketing'' since this sewage sludge use is regulated as ``land 
application,'' and clarifies that ``landfilling'' takes place at 
``municipal solid waste landfills.''
    Section 501.1(d)(1) contained a reference to a nonexistent 
section--40 CFR 123.30. Today's rule replaces this with a reference to 
a new paragraph (m) that is added to this section. Section 501.1(m) 
specifies the requirements for a partial sewage sludge program.
    CWA section 405(f) authorizes the Administrator to approve State 
programs so long as the programs will assure compliance with section 
405 requirements. Pursuant to this authority, EPA is providing for 
approval of partial sewage sludge management programs under part 501. 
Section 501.1(m) allows a State to submit a partial sewage sludge 
management program covering one or more of the sludge use and disposal 
practices falling under the jurisdiction of the administering State 
agency or department. The State agency seeking program approval is 
required to assume a complete management program with respect to the 
covered practice(s). Some States regulate septage use and disposal 
under different management programs than sewage sludge. In the case of 
those States, EPA will approve a partial program for land application, 
for example, that regulates only sewage sludge and excludes septage 
from its regulatory scope.
    Section 405(f)(1) of the Clean Water Act (CWA) requires that any 
NPDES permit issued to a publicly owned treatment works or other 
treatment works treating domestic sewage must include conditions to 
implement the sewage sludge regulations issued under section 405(d) 
unless these conditions have been included through certain other 
specified permits, including permits under a State permit program if 
EPA determines ``such programs assure compliance with any applicable 
requirements'' of section 405. The provisions of Sec. 501.1(c)(2) 
require that any complete sludge management program submitted for 
approval must include such authority. EPA is implementing its approval 
of partial programs in the same manner. An approvable partial program 
must include the authority to permit both POTWs and other TWTDS 
associated with the identifiable use and disposal option for which the 
State seeks authorization.
    With respect to the practice(s) covered by the partial program, the 
State agency is required to meet the requirements of CWA section 405, 
and has to be able to implement the applicable requirements of 40 CFR 
part 503. The State must be able to clearly identify who falls within 
the State program, and there must be no area in which authority over a 
particular group is unclear.
    The rule also clarifies requirements for the partial program with 
respect to the Attorney General's Statement, the Program Description, 
and the Memorandum of Agreement (MOA) between EPA and the State.
    In addition to the information required for the Program Description 
under Sec. 501.12, the State submission must explain how the program 
will operate, including the relationship between the partial program 
and the unassumed part which will remain under EPA control. In addition 
to the information required for the MOA under Sec. 501.14, the State 
submission must delineate responsibilities of both the State and EPA in 
administering the partial program.
    EPA received several favorable comments on the partial program 
requirements and two comments that asked for clarification on approval 
of partial programs that exclude septage. One commenter stated that the 
proposed partial program language only referred to TWTDS and a 
``permitting program.'' This was never EPA's intent and the term 
``permitting program'' has been changed to ``management program'' in 
the final rule. Any sewage sludge management program, partial or 
complete, must include requirements for monitoring compliance and 
provisions for enforcement of the Part 503 standards for all users and 
disposers of sewage sludge that are part of the sludge management 
program.
    A commenter asked whether a State must have a regulatory program 
for septage somewhere other than in its sewage sludge program in order 
to secure partial program authorization for land application of sewage 
sludge excluding septage. EPA is willing to approve such a partial 
program irrespective of whether septage is regulated by another program 
or not regulated at all. In this situation, compliance with the Federal 
septage requirements in part 503 would continue to be enforced by EPA.
2. Definitions
    Today's rule adds a definition of ``TWTDS,'' the acronym for 
``treatment works treating domestic sewage.'' The acronym replaces the 
phrase throughout the regulation.

[[Page 45117]]

3. Elements of a Sludge Management Program Submission
    Section 501.11 lists the required elements of any sewage sludge 
management program that a State submits for approval. EPA received one 
comment objecting to these requirements. EPA did not propose to change 
this language nor did the Agency solicit comment on it, so EPA is not 
responding to the objections.
4. Program Description
    In order to ensure that a State program can be properly run, 
Sec. 501.12 requires a description of various program elements. Today's 
rule amends the current regulation to reduce the level of detail 
required by Secs. 501.12(b), (d), and (f) for the State program 
description. As modified, the regulation requires only the minimal 
information that EPA believes is necessary in a program description.
    Heretofore, the language in Secs. 501.12(b) (2) and (3) called for 
information on State program costs and funding sources for a program's 
first two years. The purpose of this requirement was to demonstrate 
that a State had the resources to properly carry out a new sewage 
sludge management program. In fact, many States have had programs 
established for many years. Consequently, for States that have at least 
2 years of active experience implementing a sewage sludge regulatory 
program, cost and funding information is not necessary since they have 
already shown that they have the necessary resources to run effective 
programs. EPA has therefore amended the rule to require this 
information on program costs and funding sources only for State 
programs that have been in existence for less than two years.
    EPA received several comments supporting the changes in this 
section. EPA also received one comment that stated that all the 
proposed information requirements are unnecessary for an existing 
program because EPA already has a working knowledge of existing State 
programs.
    EPA disagrees with this commenter's belief that EPA always has a 
working knowledge of existing State programs. The rule promulgated 
today reduces the requirements for submission of information for 
existing programs. EPA, however, has concluded that the remaining 
program description requirements are the minimum necessary to ensure 
that EPA has a complete understanding of a State program.
    Section 501.12(d) now requires submittal of forms that the State 
intends to use in its program. EPA wants to ensure that the State 
obtains the information necessary to implement an effective program but 
does not intend to require use of specific forms. Therefore, EPA has 
amended this section to provide for either submittal of applicable 
forms or the procedures used for obtaining information.
    Section 501.12(f)(1) requires a State seeking to administer a 
sludge management program to provide an inventory of all TWTDS subject 
to part 503 and subject to the State's program. EPA believes that, in 
implementing an effective program, States will need an inventory of all 
TWTDS but should not be required to develop an inventory of land 
application sites in order to obtain approval for their programs. If a 
State is submitting a partial program, the inventory need only list the 
TWTDS that would be regulated under the State's program. The language 
in Sec. 501.12(f) has been modified accordingly.
    EPA received two comments about the required inventory. The first 
comment stated that a State should not be required, as the current rule 
provides, to submit other Federal and State permit numbers as part of 
the TWTDS inventory.
    The submittal of existing permit numbers allows EPA to determine 
how many TWTDS are already permitted under different Federal or State 
programs. EPA agrees that permit numbers for permits unrelated to a 
sewage sludge program should not be required. EPA is changing the 
language in Sec. 501.12(f)(1)(iv) to clarify that the only permit 
numbers required as part of the inventory are those that contain sewage 
sludge requirements.
    EPA also received a comment that only land application programs 
should be included in the inventory. The commenter believes that 
including other TWTDS would be redundant because they are already 
permitted under other programs.
    The inventory requirement is for all TWTDS that are subject to part 
503 and the State's program, which includes facilities that use land 
application, surface disposal, incineration, or disposal in a municipal 
solid waste landfill, unless the State is submitting a partial program. 
The fact that a facility is permitted under another program does not 
necessarily mean that the permit includes all the part 503 
requirements.
5. Memorandum of Agreement With the Regional Administrator
    The changes to Sec. 501.14(a) adopted today clarify that it is the 
Regional Administrator who must approve the memorandum of agreement 
(MOA) before the MOA is effective.
    EPA has modified Sec. 501.14(b)(1)(i) to clarify that EPA will only 
transfer permit-related information to a State with respect to the 
portion of the State program for which the State has obtained approval. 
For example, if a State is seeking a partial program for land 
application, EPA will not transfer information on pending incinerator 
permit applications or compliance information for incinerators to the 
State.
    EPA has also amended Sec. 501.14(b) to modify some of the current 
waiver prohibitions. The current regulations prohibit waiver of EPA 
review of permits issued to ``Class 1 sludge management facilities.'' 
EPA has removed this provision because EPA believes that the need for 
review of such permits should be decided by the affected State and EPA 
Regional office based on circumstances in the affected State. EPA has 
concluded, in any event, that the Regional Administrator should retain 
the authority to terminate a waiver after providing a written 
explanation of the reason for the termination to the Director of the 
State program.
    Section 501.14(c) currently requires that the MOA provide for 
prompt transmission of all permit-related documents to EPA. Today's 
amendment modifies this provision to require that the MOA describe the 
circumstances in which these documents must be sent to EPA. In some 
cases, EPA may not want to see any permit-related documents unless the 
Region makes a specific request. In other cases, the Region may want 
the MOA to list conditions that would require automatic submittal of 
documents to EPA. This change will eliminate the transmission of 
documents that EPA does not intend to review but will not reduce EPA's 
ability to obtain any permit-related documents. The current regulation 
now provides in Sec. 501.19 that State sewage sludge management 
programs must comply with Sec. 123.41. This provision requires a State 
to make available to EPA ``any information obtained or used in the 
administration of a State program.''
    One commenter objected to any requirements for States to submit 
permit documents to EPA and for joint EPA/State inspections. The 
requirements of Sec. 501.14 list what must be discussed in the MOA. If 
a Region believes that a State has been operating a very good sewage 
sludge management program, it may decide that little oversight is 
necessary. In other situations, such as when a State has newly 
developed a program, a Region may feel that

[[Page 45118]]

extensive oversight is required. The Region also needs the ability to 
change the amount of information it requires for oversight based on a 
State's performance in operating its program. The proposed changes to 
this section provide EPA and the States flexibility in deciding what 
degree of oversight is necessary. The final language is essentially 
unchanged from the proposal except for the insertion of some clarifying 
language.
    Currently, Sec. 501.14 provides that the Regional Administrator 
would normally notify the State at least 7 days before an EPA facility 
inspection. Today's rule adopts the proposal to delete that language 
and allow the Region and State to decide whether such a time period 
should be included in the MOA.
6. Requirements for Permitting
    The provisions of Sec. 501.15 describe the procedural requirements 
that a State must follow in issuing permits in order to obtain EPA 
authorization to operate a section 405(f) sewage sludge management 
program. Many States operate well-managed sewage sludge programs that 
are organized differently from the NPDES model. EPA believes that the 
specific permitting procedures currently prescribed in Sec. 501.15 are 
not always necessary to ensure compliance with the part 503 regulations 
and may have provided unnecessary obstacles to authorization of State 
sludge management programs. EPA considered removing the majority of 
these requirements from Sec. 501.15. However, a number of States have 
laws that prohibit the State's adoption of more stringent requirements 
than EPA. EPA was concerned that removal of these permitting procedural 
requirements--a move aimed at simplifying the approval process--could, 
because of these State law provisions, have the perverse result of 
requiring a State to modify its existing program in order to obtain EPA 
approval for the program. In this case, deletion of the permitting 
requirements could effectively make the authorization process more 
difficult for some States while easing it for others.
    The two comments that EPA received on this issue asserted that 
commenters' States could be more stringent than EPA although they would 
have to defend their reasons for differing from the Federal rules. EPA 
received one comment that recommended the deletion of all (or almost 
all) the specific permitting requirements in Sec. 501.15. The majority 
of commenters supported the proposed language retaining most of the 
requirements but providing flexibility by allowing adoption of 
comparable provisions in State laws.
    EPA is adopting the provision as proposed. Today's rule retains 
most of the current permitting requirements that are conditions for 
approval but allows States to follow their existing practices in many 
instances. In some cases, the Regional Administrator must decide 
whether the State's minimum permit conditions or issuance requirements 
establish conditions and permit issuance procedures comparable to those 
required by this provision. EPA recognizes that this may result in 
differences between State programs but believes that such differences 
are not a significant concern and that the added flexibility far 
outweighs any potential problems.
    EPA received four comments on a mechanism to address differences in 
interpretation of program approval conditions between EPA Regions. The 
commenters all suggested that EPA should provide a method to resolve 
disputes between Regions and States through an internal policy or a 
provision in the rule for an ``appeal'' process to headquarters. 
Differences in approach between Regions are always a possibility due to 
EPA's decentralization. EPA has delegated the authority for approval of 
State sewage sludge programs to its Regions because of their intimate 
knowledge of these State programs and close working relationship with 
State officials. EPA headquarters will always attempt to resolve any 
differences that are brought to its attention, and thus does not 
believe a rule provision or policy is needed.
    Among its actions today, EPA is renumbering Sec. 501.15(a)(2) as 
Sec. 501.15(a)(4). This provision requires that an approvable State 
sewage sludge program must contain certain specific information 
requirements in permit applications. The retention and renumbering of 
this provision is necessary because the provision that will replace it, 
Sec. 501.15(d)(1)(i)(B), will not be effective until 40 CFR 122.21 is 
amended to add a new subsection (q). Although today's rule includes 
Sec. 501.15(d)(1)(i)(B), which requires the information called for in 
40 CFR 122.21(q), EPA is postponing the effective date of 
Sec. 501.15(d)(1)(i)(B) until Sec. 122.21(q) goes into effect. EPA 
proposed revisions to part 122 on December 6, 1995 (60 FR 62546) and 
expects to promulgate the final Sec. 122.21(q) requirements within 
several months of publication of today's rule.
    EPA does not believe retaining the existing information 
requirements until all of the new permit application requirements are 
in place will delay States that are considering applying for 
authorization. The application requirements are just one small part of 
a State program. EPA believes that any State preparing an application 
under the current application requirements of Sec. 501.15(a)(2), now 
Sec. 501.15(a)(4), will also meet the requirements of Sec. 122.21(q).
    As proposed, Sec. 122.21(q) would reduce the burden on permittees 
by allowing State directors to waive information requirements if they 
have access to substantially identical information, and by modifying 
the land application plan requirements to require advance public notice 
in the manner prescribed by State and local law.
    Several commenters repeated the comments that they submitted on 
proposed Sec. 122.21(q) and mentioned that it was hard to separate the 
two rules. EPA realizes that the two rulemaking procedures are 
intricately connected and plans to finalize both rules as close 
together as possible. EPA has not responded to the comments received on 
proposed Sec. 122.21(q) in the docket for today's rule, but will 
respond to those comments as part of its other rulemaking action.
    Today's rule also removes current Secs. 501.15(a) (3) and (4). The 
requirements of these provisions are repeated in Sec. 501.15(b). The 
CWA limits the terms of NPDES permits to no more than five years. In 
addition, EPA is today also modifying current Sec. 501.15(a)(5) to 
allow a State to issue non-NPDES sewage sludge permits for terms of no 
more than 10 years. EPA believes this is a good compromise between 
those who want to limit all sewage sludge permits to 5 years to insure 
that the permitting authority is aware of changed circumstances and 
those who believe permits do not need to expire, but should simply be 
modified if circumstances change.
    EPA received several comments supporting ten year permits. One 
commenter stated that their State issues permits that do not 
automatically expire. This type of system allows a problem situation to 
continue unabated unless it is brought to the attention of the 
permitting authority. EPA believes that requiring a permit to be 
reexamined every ten years is not overly burdensome and forces the 
permitting authority to examine the situation to make sure that the 
permittee is still meeting the permit conditions.
    EPA is also modifying current Sec. 501.15(a)(6)(ii) to clarify that 
a permit's schedule of compliance should only require interim dates if 
appropriate.
    EPA is modifying Sec. 501.15(b) to require that all permits issued 
by the

[[Page 45119]]

State include certain listed permit conditions unless comparable 
conditions are provided for in the MOA. This provides flexibility to 
both the Region and the State. This change is not intended to imply 
that permittees can choose which conditions to put into permits, but 
rather recognizes that States have different types of permitting 
systems. Some of the permit conditions in Sec. 501.15(b) are 
established by States as regulatory requirements for all TWTDS. Other 
conditions are required by 40 CFR part 503. Since all users or 
disposers of sewage sludge must comply with part 503 whether or not 
they have a permit, requirements contained in part 503 do not have to 
be spelled out in a permit in order to require compliance.
    This section also contains several other specific changes. The 
language that requires a minimum of once per year monitoring is deleted 
from Sec. 501.15(b)(10). This change is necessary for consistency with 
the proposed modifications to part 503 (60 FR 54771) that allow less 
than once per year monitoring. EPA will decide the final monitoring 
requirement when it promulgates the modifications to part 503.
    EPA has also deleted the last sentence in current 
Sec. 501.15(b)(13) because this permit condition has already been 
required in Sec. 501.15(b)(2). EPA is also modifying Sec. 501.15(b)(14) 
to clarify that a permittee that has applied for reissuance of a permit 
does not need to cease operations if the new permit is not issued 
before the term of an existing permit expires. This provision is 
consistent with section 558(b) of the Administrative Procedures Act 
that provides for the continuing effectiveness of permits and licenses 
when the permittee has filed a timely and sufficient application for 
renewal.
    Today's rule modifies Sec. 501.15(d) to require the listed permit 
procedures unless comparable State requirements are in place. As 
previously explained, this provision provides flexibility for 
accommodating varying State requirements that protect public health and 
the environment and provide public accountability.
    EPA is changing Sec. 501.15(d)(1)(i) to clarify which TWTDS must 
apply for a permit. The amended regulations provide that permit 
applications are only required from TWTDS whose use or disposal method 
is regulated under part 503. For example, a POTW that makes bricks out 
of all of its sewage sludge is not required to apply for a permit. In 
addition, an industrial facility is not required to apply at this time 
because such facilities are not currently covered by part 503. See 54 
FR 18727 and 58 FR 9406.
    In addition, permit applications are to be submitted to the State 
only for a use or disposal practice for which the State has obtained 
approval to operate a section 405(f) sewage sludge management program. 
Thus, if a State implements a partial program, permit applications for 
use or disposal practices not covered by the State program must still 
be submitted to the EPA Region.
    Finally, the application time for TWTDS that do not yet have an 
individual or general permit containing sewage sludge use or disposal 
conditions is different than the reapplication time for those TWTDS 
that already have such a permit. In cases where a TWTDS is covered 
under a State's sewage sludge general permit, the TWTDS should follow 
the State's notification procedures rather than submit an individual 
permit application.
    A TWTDS that already has an individual sewage sludge permit must 
submit a renewal application 180 days before its permit expires. If the 
permit is an NPDES permit, an application must be submitted every five 
years. If a State issues sewage sludge permits for a longer time period 
(up to ten years as allowed by 501.15(a)(2)(ii)), the permit renewal 
application must be submitted 180 days before the sewage sludge permit 
expires. Section 501.15(d)(1)(ii) has been added to clarify the renewal 
requirements.
    EPA is also deleting existing Sec. 501.15(d)(1)(ii)(A). This 
provision was intended to address those circumstances in which an 
incinerator or other TWTDS requested site-specific pollutant limits. 
However, there have been few requests for site-specific permits. In 
addition, proposed changes to part 503 (60 FR 54771) will make the 
incineration standard totally self-implementing along with the rest of 
the rule, i.e., the standard must be met whether or not a permit is 
issued. Therefore, this paragraph is no longer necessary. However, as 
provided in Sec. 501.15(d)(1)(i)(D), the Director may require permit 
applications from any TWTDS at any time if necessary to protect public 
health and the environment. This provides the Director with the 
flexibility to first address the largest public health or environmental 
threat.
    EPA is redesignating Sec. 501.15(d)(1)(ii)(B)-(E) as 
Sec. 501.15(d)(1)(i)(A),(C),(D), and (E) and adding a new 
Sec. 501.15(d)(1)(i)(B). These paragraphs contain the application time 
frames and have been moved from Sec. 501.15(d)(1)(ii) to 
Sec. 501.15(d)(1)(i) to help clarify that they apply to TWTDS that do 
not yet have an effective sewage sludge permit. Section 
501.15(d)(1)(i)(B) has been added to separate the application time 
frames from the required application information. As previously 
mentioned, Sec. 501.15(d)(1)(i)(B) will not be effective until 
Sec. 122.21(q) becomes effective. Language will be added to the 
Sec. 122.21(q) rulemaking to delete Sec. 501.15(a)(4) once 
Sec. 122.21(q) becomes effective. Until then, the application 
information is specified in Sec. 501.15(a)(4) and the time frames 
applicable to a permit application are specified in 
Sec. 501.15(d)(1)(i)(A),(C),(D) and (E).
    Section 501.15(d)(1)(i)(C) lists the limited background information 
requested of non-NPDES TWTDS. EPA is modifying its paragraph (3) to be 
consistent with the full permit information requirements as proposed in 
Sec. 122.21(q). If sewage sludge meets the ``exceptional quality'' 
requirements, no additional information is required about land 
application sites or facilities that further treat the sewage sludge.
    Section 501.15(d)(4) requires fact sheets for draft permits 
containing case-by-case permit conditions or land application plans. 
They are also required for Class I sludge management facilities or 
draft permits that are the subject of widespread public interest or 
raise major issues. EPA is revising this section to require a fact 
sheet only when a permit is the subject of widespread public interest 
or raises major issues. In addition, EPA is revising this provision to 
delete the list of the specific information required to be included in 
a fact sheet.
    EPA is making these changes to provide additional flexibility to 
States in operating their sewage sludge permit programs. EPA believes 
that the basis for a permit should be available to the public but does 
not believe that a fact sheet should be the only available option for a 
State to provide information to the public on a proposed permit. For 
example, in some States the basis for the permit may be the State's 
sewage sludge regulations. In this situation a fact sheet is not 
necessary.
    In addition, EPA is amending Sec. 501.15(d)(5) to insert the phrase 
``meeting or hearing'' in place of ``hearing'' throughout the section. 
This change simplifies the approval process for States whose public 
participation requirements for permit issuance call for public 
``meetings'' rather than ``hearings.'' This modification in the 
regulations obviates the need for a change in State law in States with 
such procedures in order to obtain approval.

[[Page 45120]]

    Today's rule also modifies the requirement that the State provide 
at least a 30-day comment period on the draft permit. Some States 
require public notification of a permit application so the public has 
the opportunity to review the application and request a public hearing 
before a draft permit is issued. In this situation a 30-day comment 
period after issuance of a draft permit may not be necessary. Today's 
rule also deletes the requirement for 30 days notice before a meeting 
or hearing. These changes are not intended to suggest that a State 
should not provide an adequate comment period or adequate advance 
notice of any hearing or meeting. State law must provide the public 
both timely and meaningful opportunity to participate in its permitting 
determinations. This means that a State's procedures must be reasonably 
calculated to apprise the public of the nature of any proposed 
permitting action as well as provide the public with an opportunity to 
submit its view on the proposed permitting action.
    Today's changes are merely intended to allow the States the 
flexibility to follow their current public notice procedures that may 
provide for public notice at different times in the permitting process.
    Changes to Sec. 501.15(d)(5) allow the State flexibility in the 
method used to provide public notice. The MOA could be used to specify 
required methods, if deemed necessary by an EPA Region.
    EPA received four comments on this proposed change. One of the 
commenters asserted that the proposed language could be interpreted to 
require public notice in all newspapers along the entire route used to 
transport biosolids from a generator to a land application site. EPA 
has changed the language in this section to provide flexibility to 
States with different types of public notification procedures while 
ensuring that members of the public that are affected by the sewage 
sludge use or disposal are notified. EPA did not intend the phrase 
``area affected by the facility or activity'' to mean the route of 
sewage sludge transportation. EPA's objective in modifying the rule 
language is to ensure actual public notice--not publication in a 
newspaper unlikely to be read by those people living near the sewage 
sludge use or disposal site(s).
    Other commenters thought that the public notice requirements for 
permits should be the same as the proposed land application plan public 
notice requirements that allow States to use any type of public 
notification process that is consistent with existing State and local 
laws.
    The land application plan is part of the permit application and is 
therefore subject to public notice and comment as part of the permit. 
When part 501 was developed in 1989, EPA decided to not require permit 
modifications for new land application sites in part because the permit 
required adequate public notice to the affected parties (54 FR 18738). 
EPA wants to ensure that adequate public notice remains part of the 
permit process. EPA believes the revised language accomplishes this 
while providing the States with the desired flexibility. Any State that 
requires some type of public notice of permits in the area affected by 
the sewage sludge use or disposal should have no problem meeting the 
requirements of today's rule. EPA has promulgated the provisions of 
Sec. 501.15 as proposed, with a slight language change to clarify the 
public notice methods in Sec. 501.15(d)(5)(ii).
7. Requirements for Enforcement Authority
    EPA is revising the language of Sec. 501.17 to clarify the intent 
of the section. A State must have the authority to assess civil 
penalties or criminal fines in, at least, the amounts listed. States 
are not required to impose these or any other specific penalties in any 
civil or criminal proceeding, and State law may, of course, authorize 
the imposition of larger penalties.
    The one commenter on this section thought EPA should provide for 
State environmental enforcement discretion. As mentioned above, the 
States must have the authority to impose fines up to the listed amounts 
but they do not have to impose penalties in any specific penalty 
amount. EPA has promulgated this provision as proposed.
8. Program Reporting to EPA
    The current requirements in Sec. 501.21 require extensive 
information on noncompliance to be reported semiannually to EPA by the 
State program director. EPA is attempting to streamline all of its 
reporting requirements, including the information requested from 
States. Today's rule reduces the information required from States and 
requires annual reports that contain only the information that EPA 
believes is of most value in reviewing a States's sludge management 
program.
    EPA received three comments on this section. One supported the 
proposed changes; the other two thought that EPA should be even more 
flexible. The proposed requirements are a significant reduction from 
what is required in the existing rule. Given EPA's limited experience 
in overseeing State sewage sludge programs, EPA believes the requested 
information is the minimum that should be reported annually about a 
sewage sludge program. EPA has revised Sec. 501.21(b)(2) for 
consistency with the changed language for reporting permit numbers in 
Sec. 501.12(f)(1)(iv). EPA is promulgating the rest of this section as 
proposed.
9. Procedures for Revision of State Programs
    The language in Sec. 501.32 required a State to revise its program 
within one or two years of promulgation of changes to the sewage sludge 
regulations. Today's change allows EPA and the State to agree to a 
different schedule in the MOA. As the MOA is part of the State program 
submittal, comments on this or any other issue in the MOA can be raised 
when the State program is published in the Federal Register. Because 
the sewage sludge regulations are directly enforceable, users or 
disposers of sewage sludge must comply with any new Federal sewage 
sludge requirements, whether or not the State has modified its 
regulations to conform with the Federal rule. EPA received no comments 
on this section and it is promulgated as proposed.

III. Regulatory Requirements

A. Executive Order 12866

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency must determine whether the regulatory action is ``significant'' 
and therefore subject to Office of Management and Budget (OMB) review 
and the requirements of the Executive Order. The Order defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may:
    (1) have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of Executive Order 12866, it has been 
determined that this rule is a ``significant regulatory action''. As 
such, this action was

[[Page 45121]]

submitted to OMB for review. Changes made in response to OMB 
suggestions or recommendations will be documented in the public record.

B. Executive Order 12875

    To reduce the burden of Federal regulations on States and small 
governments, the President issued Executive Order 12875, entitled 
Enhancing the Intergovernmental Partnership, on October 28, 1993 (58 FR 
58093). Under Executive Order (E.O.) 12875, EPA may not issue a 
regulation that is not required by statute and that creates a mandate 
upon a State, local or Tribal government unless the federal government 
provides the necessary funds to pay the direct costs incurred by the 
State, local or Tribal government or EPA provides to the Office of 
Management and Budget a description of the extent of the Agency's prior 
consultation and written communications with elected officials and 
other representatives of affected State, local or Tribal governments, 
the nature of their concerns, and an Agency statement supporting the 
need to issue the regulation. In addition, E.O. 12875 requires EPA to 
develop an effective process permitting elected officials and other 
representatives of State, local, and Tribal governments ``to provide 
meaningful and timely input in the development of regulatory proposals 
containing significant unfunded mandates.''
    EPA has determined that E.O. 12875 does not apply since this rule 
does not create a mandate upon State, local, or tribal governments. 
This rule imposes no enforceable duty on any State, local, or tribal 
government or the private sector.

C. Paperwork Reduction Act

    The information collection requirements for parts 123 and 501 were 
approved by OMB under the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq. (OMB Control No. 2040-0057). The rule changes are designed to 
streamline the regulatory process and will not impose any new 
information collection requirements.

D. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., 
provides that, whenever an agency promulgates a final rule under 
section 553 of the Administrative Procedures Act, after being required 
by that section or any other law to publish a general notice of 
rulemaking, the agency generally must prepare a final regulatory 
flexibility analysis (FRFA). The agency must prepare a FRFA for a final 
rule unless the head of the agency certifies that it will not have a 
significant economic impact on a substantial number of small entities.
    Today's rule will only apply to those States and tribes that choose 
to seek EPA authorization for their sewage sludge permit programs. As 
previously explained, today's changes streamline the regulations to 
ease the authorization process and provide States and tribes 
flexibility in implementing their permit programs. These changes will 
reduce the burden on all affected entities. The Administrator therefore 
certifies, pursuant to section 605(b) of the RFA, that this rule will 
not have a significant economic impact on a substantial number of small 
entities.

E. Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. 
L. 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of the UMRA generally requires EPA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective or least burdensome alternative 
that achieves the objectives of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows EPA to adopt an alternative other than the least 
costly, most cost-effective or least burdensome alternative if the 
Administrator publishes with the final rule an explanation why that 
alternative was not adopted.
    Before EPA establishes any regulatory requirements that may 
significantly or uniquely affect small governments, including tribal 
governments, it must have developed under section 203 of the UMRA a 
small government agency plan. The plan must provide for notifying 
potentially affected small governments, enabling officials of affected 
small governments to have meaningful and timely input in the 
development of EPA regulatory proposals with significant Federal 
intergovernmental mandates, and informing, educating, and advising 
small governments on compliance with the regulatory requirements.
    Today's rule contains no Federal mandates under the regulatory 
provisions of Title II of the UMRA for State, local, or tribal 
governments or the private sector because the UMRA generally excludes 
from the definition of ``Federal intergovernmental mandate'' duties 
that arise from participation in a voluntary Federal program. This rule 
imposes no enforceable duty on any State, local, or tribal government 
or the private sector. In any event, EPA has determined that this rule 
does not contain a Federal mandate that may result in expenditures of 
$100 million or more for State, local and tribal governments, in the 
aggregate, or the private sector in any one year. The amendments 
provide additional flexibility to the States in complying with current 
regulatory requirements and reduce the burden on affected governments. 
As noted above, there are no costs associated with today's changes. 
Thus, today's rule is not subject to the requirements in sections 202 
and 205 of the UMRA.
    EPA has determined that this rule contains no regulatory 
requirements that might significantly or uniquely affect small 
governments and thus this rule is not subject to the requirements in 
section 203 of UMRA. The amendments will not significantly affect small 
governments because as explained above, the amendments provide 
additional flexibility in complying with pre-existing regulatory 
requirements. The only small governments affected by this rule are 
tribal governments and they are subject to the same requirements as 
States if they choose to seek authorization of their sewage sludge 
program.

F. Submission to Congress and the General Accounting Office

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit 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 United States prior 
to publication of the rule in the Federal Register. This action is not 
a ``major rule'' as defined by 5 U.S.C. 804(2). This rule will be 
effective September 23, 1998.

[[Page 45122]]

G. National Technology Transfer and Advancement Act

    Under section 12(d) of the National Technology Transfer and 
Advancement Act (NTTAA), the Agency is required to use voluntary 
consensus standards in its regulatory activities unless to do so would 
be inconsistent with applicable law or otherwise impractical. Voluntary 
consensus standards are technical standards (e.g., materials 
specifications, test methods, sampling procedures, business practice, 
etc.) that are developed or adopted by voluntary consensus standard 
bodies. Where available and potentially applicable voluntary consensus 
standards are not used by EPA, the Act requires the Agency to provide 
Congress, through the Office of Management and Budget, an explanation 
of the reasons for not using such standards.
    This final rule does not prescribe any technical standards, so the 
Agency has determined that the NTTAA requirements are not applicable.

H. Executive Order 13045

    The Executive order, Protection of Children from Environmental 
Health Risks and Safety Risks (62 FR 19885, April 23, 1997) applies to 
any rule that EPA determines (1) ``economically significant'' as 
defined under E.O. 12866 and (2) concerns an environmental health or 
safety risk that EPA has reason to believe may have a disproportionate 
effect on children. EPA interprets the E.O. 13045 as encompassing only 
those regulatory actions that are risk based or health based, such that 
the analysis required under section 5-501 of the E.O. has the potential 
to influence the regulation.
    This rule is not subject to E.O. 13045 because it is not an 
economically significant action as defined by E.O. 12866 and it does 
not involve decisions regarding environmental health or safety risks. 
This rule streamlines the regulations and authorization procedures for 
States seeking authorization to implement the Federal Sewage Sludge 
Management Program.

List of Subjects

40 CFR Part 123

    Environmental protection, Confidential business information, 
Hazardous materials, Penalties, Reporting and recordkeeping 
requirements, Sewage disposal, Waste treatment and disposal, Water 
pollution control.

40 CFR Part 501

    Environmental protection, Confidential business information, 
Publicly owned treatment works, Reporting and recordkeeping 
requirements, Sewage disposal, Waste treatment and disposal.

    Dated: August 11, 1998.
Carol M. Browner,
Administrator.

    For the reasons set out in the preamble, parts 123 and 501 of title 
40 of the Code of Federal Regulations are amended as follows:

PART 123--[AMENDED]

    1. The authority citation for part 123 continues to read as 
follows:

    Authority: The Clean Water Act, 33 U.S.C. 1251 et seq.

    2. Section 123.1 is amended by revising paragraphs (a) and (c) to 
read as follows:


Sec. 123.1  Purpose and scope.

    (a) This part specifies the procedures EPA will follow in 
approving, revising, and withdrawing State programs and the 
requirements State programs must meet to be approved by the 
Administrator under sections 318, 402, and 405(a) (National Pollutant 
Discharge Elimination System--NPDES) of the CWA. This part also 
specifies the procedures EPA will follow in approving, revising, and 
withdrawing State programs under section 405(f) (sludge management 
programs) of the CWA. The requirements that a State sewage sludge 
management program must meet for approval by the Administrator under 
section 405(f) are set out at 40 CFR part 501.
* * * * *
    (c) The Administrator will approve State programs which conform to 
the applicable requirements of this part. A State NPDES program will 
not be approved by the Administrator under section 402 of CWA unless it 
has authority to control the discharges specified in sections 318 and 
405(a) of CWA. Permit programs under sections 318 and 405(a) will not 
be approved independent of a section 402 program.
* * * * *
    3. Section 123.2 is revised to read as follows:


Sec. 123.2  Definitions.

    The definitions in part 122 apply to all subparts of this part.
    4. Section 123.22 is amended by removing paragraph (f) and 
redesignating paragraph (g) as paragraph (f).
    5. Section 123.24 is amended by removing paragraph (d)(8).
    6. Section 123.25 is amended by revising the introductory text of 
paragraph (a) and paragraph (a)(37) to read as follows:


Sec. 123.25  Requirements for permitting.

    (a) All State Programs under this part must have legal authority to 
implement each of the following provisions and must be administered in 
conformance with each, except that States are not precluded from 
omitting or modifying any provisions to impose more stringent 
requirements:
* * * * *
    (37) 40 CFR parts 129, 133, and subchapter N; and
* * * * *
    7. Section 123.26 is amended by revising paragraph (e)(5) to read 
as follows:


Sec. 123.26  Requirements for compliance evaluation programs.

* * * * *
    (e) * * *
    (5) Inspecting the facilities of all major dischargers at least 
annually.
    8. Section 123.42 is amended by revising the introductory paragraph 
to read as follows:


Sec. 123.42  Receipt and use of Federal information.

    Upon approving a State permit program, EPA will send to the State 
agency administering the permit program any relevant information which 
was collected by EPA. The Memorandum of Agreement under Sec. 123.24 
(or, in the case of a sewage sludge management program, Sec. 501.14 of 
this chapter) will provide for the following, in such manner as the 
State Director and the Regional Administrator agree:
* * * * *
    9. Section 123.44 is amended by revising paragraphs (d)(1), (d)(2), 
(e), and (j) to read as follows:


Sec. 123.44  EPA review of and objection to State permits.

* * * * *
    (d) * * *
    (1) Will consider all data transmitted pursuant to Sec. 123.43 (or, 
in the case of a sewage sludge management program, Sec. 501.21 of this 
chapter);
    (2) May, if the information provided is inadequate to determine 
whether the proposed permit meets the guidelines and requirements of 
CWA, request the State Director to transmit to the Regional 
Administrator the complete record of the permit proceedings before the 
State, or any portions of the record that the Regional Administrator 
determines are necessary for review. If

[[Page 45123]]

this request is made within 30 days of receipt of the State submittal 
under Sec. 123.43 (or, in the case of a sewage sludge management 
program, Sec. 501.21 of this chapter), it will constitute an interim 
objection to the issuance of the permit, and the full period of time 
specified in the Memorandum of Agreement for the Regional 
Administrator's review will recommence when the Regional Administrator 
has received such record or portions of the record; and
* * * * *
    (e) Within 90 days of receipt by the State Director of an objection 
by the Regional Administrator, the State or interstate agency or any 
interested person may request that a public hearing be held by the 
Regional Administrator on the objection. A public hearing in accordance 
with the procedures of Sec. 124.12 (c) and (d) of this chapter (or, in 
the case of a sewage sludge management program, Sec. 501.15(d)(7) of 
this chapter) will be held, and public notice provided in accordance 
with Sec. 124.10 of this chapter, (or, in the case of a sewage sludge 
management program, Sec. 501.15(d)(5) of this chapter), whenever 
requested by the State or the interstate agency which proposed the 
permit or if warranted by significant public interest based on requests 
received.
* * * * *
    (j) The Regional Administrator may agree, in the Memorandum of 
Agreement under Sec. 123.24 (or, in the case of a sewage sludge 
management program, Sec. 501.14 of this chapter), to review draft 
permits rather than proposed permits. In such a case, a proposed permit 
need not be prepared by the State and transmitted to the Regional 
Administrator for review in accordance with this section unless the 
State proposes to issue a permit which differs from the draft permit 
reviewed by the Regional Administrator, the Regional Administrator has 
objected to the draft permit, or there is significant public comment.
    10. Section 123.45 is amended by removing paragraph (e).
    11. Section 123.62 is amended by revising paragraphs (b)(3), and 
(c) to read as follows:


Sec. 123.62  Procedures for revision of State programs.

* * * * *
    (b)* * *
    (3) The Administrator will approve or disapprove program revisions 
based on the requirements of this part (or, in the case of a sewage 
sludge management program, 40 CFR part 501) and of the CWA.
* * * * *
    (c) States with approved programs must notify EPA whenever they 
propose to transfer all or part of any program from the approved State 
agency to any other State agency, and must identify any new division of 
responsibilities among the agencies involved. The new agency is not 
authorized to administer the program until approved by the 
Administrator under paragraph (b) of this section. Organizational 
charts required under Sec. 123.22(b) (or, in the case of a sewage 
sludge management program, Sec. 501.12(b) of this chapter) must be 
revised and resubmitted.
* * * * *
    12. Section 123.63 is amended by revising the introductory text of 
paragraph (a) and paragraph (a)(4) to read as follows:


Sec. 123.63  Criteria for withdrawal of State programs.

    (a) In the case of a sewage sludge management program, references 
in this section to ``this part'' will be deemed to refer to 40 CFR part 
501. The Administrator may withdraw program approval when a State 
program no longer complies with the requirements of this part, and the 
State fails to take corrective action. Such circumstances include the 
following:
* * * * *
    (4) Where the State program fails to comply with the terms of the 
Memorandum of Agreement required under Sec. 123.24 (or, in the case of 
a sewage sludge management program, Sec. 501.14 of this chapter).
* * * * *
    13. Section 123.64 is amended by revising the introductory text of 
paragraph (a) and paragraph (b)(1) to read as follows:


Sec. 123.64  Procedures for withdrawal of State programs.

    (a) A State with a program approved under this part (or, in the 
case of a sewage sludge management program, 40 CFR part 501) may 
voluntarily transfer program responsibilities required by Federal law 
to EPA by taking the following actions, or in such other manner as may 
be agreed upon with the Administrator.
* * * * *
    (b) * * *
    (1) Order. The Administrator may order the commencement of 
withdrawal proceedings on his or her own initiative or in response to a 
petition from an interested person alleging failure of the State to 
comply with the requirements of this part as set forth in Sec. 123.63 
(or, in the case of a sewage sludge management program, Sec. 501.33 of 
this chapter). The Administrator will respond in writing to any 
petition to commence withdrawal proceedings. He may conduct an informal 
investigation of the allegations in the petition to determine whether 
cause exists to commence proceedings under this paragraph. The 
Administrator's order commencing proceedings under this paragraph will 
fix a time and place for the commencement of the hearing and will 
specify the allegations against the State which are to be considered at 
the hearing. Within 30 days the State must admit or deny these 
allegations in a written answer. The party seeking withdrawal of the 
State's program will have the burden of coming forward with the 
evidence in a hearing under this paragraph.
* * * * *

PART 501--[AMENDED]

    14. The authority citation for part 501 continues to read as 
follows:

    Authority: The Clean Water Act, 33 U.S.C. 1251 et seq.

    15. Section 501.1 is amended by revising paragraphs (b) and (d), 
and adding paragraph (m) to read as follows:


Sec. 501.1  Purpose and scope.

* * * * *
    (b) This part specifies the procedures EPA will follow in 
approving, revising, and withdrawing State sludge management programs 
under section 405(f), and the requirements State programs must meet to 
be approved by the Administrator under section 405(f) of CWA. Sludge 
Management Program submissions may be developed and implemented under 
any existing or new State authority or authorities as long as they meet 
the requirements of this part.
* * * * *
    (d) In addition, any complete State Sludge Management Program 
submitted for approval under this part must have authority to regulate 
all sewage sludge management activities subject to 40 CFR part 503, 
unless the State is applying for partial sludge program approval in 
accordance with paragraph (m) of this section. The State sludge 
management program must include authority to regulate all Federal 
facilities in the State. Sludge management activities must include as 
applicable:
    (1) Land application;
    (2) Landfilling in a Municipal Solid Waste Landfill regulated under 
40 CFR part 258;

[[Page 45124]]

    (3) Incineration;
    (4) Surface disposal; and
    (5) Any other sludge use or disposal practices that may 
subsequently be regulated by 40 CFR part 503.
* * * * *
    (m) A State whose sludge management program has not been approved 
under this part may submit to the Regional Administrator an application 
for approval of a partial sewage sludge program. The following are the 
requirements for approval of a partial program:
    (1) A partial program submission must constitute a complete 
management program covering one or more categories of sewage sludge use 
or disposal. The program must also apply to anyone engaged in the 
sewage sludge use or disposal practice that is the subject of the 
partial program. A complete management program is one that provides for 
the issuance of permits, the monitoring of compliance and, in the event 
of violations, possible enforcement action.
    (2) The partial program submission must also address the following 
requirements:
    (i) The Attorney General's Statement, in addition to the 
information required by Sec. 501.13, must clearly explain the 
jurisdiction of the administering agency or department;
    (ii) The program description, in addition to the information 
required by Sec. 501.12, must explain how the program will operate, 
including which use and disposal practice(s) the State will cover. The 
program description must also explain the relationship and coordination 
between the proposed partial sewage sludge program and that part of the 
program for which EPA will remain the permitting authority, including a 
discussion of the division of permitting, enforcement, and compliance 
monitoring responsibilities between the State and EPA; and
    (iii) The Memorandum of Agreement between EPA and the State, in 
addition to the information required by Sec. 501.14, must set out the 
responsibilities of EPA and the State in administering the partial 
program, including specific provisions for transfer of information and 
determination of which users or disposers of sewage sludge are included 
in the partial program.
    16. Section 501.2 is amended by adding a definition to read as 
follows:


Sec. 501.2  Definitions.

* * * * *
    ``TWTDS'' means treatment works treating domestic sewage.
    17. Section 501.12 is amended by revising paragraphs (b), (d), 
(f)(1) introductory text, (f)(1)(iv), (f)(1)(v), and (f)(2), and 
removing paragraph (f)(3) to read as follows:


Sec. 501.12  Program description.

* * * * *
    (b) A description (including organization charts) of the 
organization and structure of the State agency or agencies which will 
have responsibility for administering the program. If more than one 
agency is responsible for administration of a program, the 
responsibilities of each agency, and their procedures for coordination 
must be set forth, and an agency must be designated as a ``lead 
agency'' (i.e., the ``State sludge management agency'') to facilitate 
communications between EPA and the State agencies having program 
responsibility. If the State proposes to administer a program of 
greater scope of coverage than is required by federal law, the 
information provided under this paragraph must indicate the resources 
dedicated to administering the federally required portion of the 
program. This description must include:
    (1) A description of the general duties and the total number of 
State agency staff carrying out the State program;
    (2) An itemization of the estimated costs of establishing and 
administering the program for the first two years after approval 
including cost of the personnel described in paragraph (b)(1) of this 
section, cost of administrative support, and cost of technical support, 
except where a State is seeking authorization for an established sewage 
sludge management program that has been in existence for a minimum of 
two years and is at least as stringent as the program for which the 
State is seeking authorization; and
    (3) An estimate of the sources and amounts of funding for the first 
two years after approval to meet the costs listed in paragraph (b)(2) 
of this section, except where a State is seeking authorization for an 
established sewage sludge management program that has been in existence 
for a minimum of two years and is at least as stringent as the program 
for which the State is seeking authorization.
* * * * *
    (d) Copies of the permit, application, and reporting forms or a 
description of the procedures the State intends to employ for obtaining 
information needed to implement its permitting program.
* * * * *
    (f)(1) An inventory of all POTWs and other TWTDS that are subject 
to regulations promulgated pursuant to 40 CFR part 503 and subject to 
the State program, which includes:
* * * * *
    (iv) Permit numbers for permits containing sewage sludge 
requirements, if any, and;
    (v) Compliance status.
    (2) States may submit either:
    (i) Inventories which contain all of the information required by 
paragraph (f)(1) of this section; or
    (ii) A partial inventory with a detailed plan showing how the State 
will complete the required inventory within five years after approval 
of its sludge management program under this part.
* * * * *
    18. Section 501.14 is amended by revising paragraphs (a), 
(b)(1)(i), (b)(2), (b)(3), and (c) to read as follows:


Sec. 501.14  Memorandum of Agreement with the Regional Administrator.

    (a) Any State that seeks to administer a program under this part 
must submit a Memorandum of Agreement. The Memorandum of Agreement must 
be executed by the State Program Director and the Regional 
Administrator and will become effective when approved by the Regional 
Administrator. In addition to meeting the requirements of paragraph (b) 
of this section, the Memorandum of Agreement may include other terms, 
conditions, or agreements consistent with this part and relevant to the 
administration and enforcement of the State's regulatory program. The 
Administrator will not approve any Memorandum of Agreement which 
contains provisions which restrict EPA's exercise of its oversight 
responsibility.
    (b) * * *
    (1)(i) Provisions for the prompt transfer from EPA to the State of 
pending permit applications applicable to the State program (or portion 
of the State program for which the State seeks approval) and any other 
information relevant to program operation not already in the possession 
of the State Director (e.g., support files for permit issuance, 
compliance reports, etc.). If existing permits are transferred from EPA 
to the State for administration, the Memorandum of Agreement must 
contain provisions specifying a procedure for transferring the 
administration of these permits. If a State lacks the authority to 
directly administer permits issued by the federal government, a 
procedure may be established to transfer responsibility for these 
permits.
* * * * *
    (2) Provisions specifying classes and categories of permit 
applications, draft permits, and proposed permits that the

[[Page 45125]]

State will send to the Regional Administrator for review, comment and, 
where applicable, objection. These provisions must follow the permit 
review procedures set forth in 40 CFR 123.44.
    (3) The Memorandum of Agreement must also specify the extent to 
which EPA will waive its right to review, object to, or comment upon 
State-issued permits.
* * * * *
    (c) The Memorandum of Agreement must also provide for the 
following:
    (1) The circumstances in which the State must promptly send 
notices, draft permits, final permits, or related documents to the 
Regional Administrator; and
    (2) Provisions on the State's compliance monitoring and enforcement 
program, including:
    (i) Provisions for coordination of compliance monitoring activities 
by the State and by EPA. These may specify the basis on which the 
Regional Administrator will select facilities or activities within the 
State for EPA inspection; and
    (ii) Procedures to assure coordination of enforcement activities.
    (3) When appropriate, provisions for joint processing of permits by 
the State and EPA for facilities or activities which require permits 
from both EPA and the State under different programs (see for example 
40 CFR 124.4).
    (4) Provisions for modification of the Memorandum of Agreement in 
accordance with this part.
* * * * *
    19. Section 501.15 is amended by revising paragraph (a), the 
introductory text of paragraph (b), paragraphs (b)(10)(i), (b)(13), 
(b)(14), the introductory text of paragraph (d), paragraph (d)(1), and 
(d)(4) through (d)(8), to read as follows:


Sec. 501.15  Requirements for permitting.

    (a) General requirements. All State programs under this part must 
have legal authority to implement each of the following provisions and 
must be administered in conformance with each, except that States are 
not precluded from omitting or modifying any provisions to impose more 
stringent requirements:
    (1) Confidentiality of information. Claims of confidentiality will 
be denied for the following information:
    (i) The name and address of any permit applicant or permittee;
    (ii) Permit applications, permits, and sewage sludge data. This 
includes information submitted on the permit application forms 
themselves and any attachments used to supply information required by 
the forms.
    (2) Duration of permits. (i) NPDES permits issued to treatment 
works treating domestic sewage pursuant to section 405(f) of the CWA 
will be effective for a fixed term not to exceed five years.
    (ii) Non-NPDES Permits issued to treatment works treating domestic 
sewage pursuant to section 405(f) of the CWA will be effective for a 
fixed term not to exceed ten years.
    (3) Schedules of compliance.  (i) General. The permit may, when 
appropriate, specify a schedule of compliance leading to compliance 
with the CWA and the requirements of this part. Any schedules of 
compliance under this section must require compliance as soon as 
possible, but not later than any applicable statutory deadline under 
the CWA.
    (ii) Interim dates. If a permit establishes a schedule of 
compliance which exceeds one year from the date of permit issuance, the 
schedule must set forth interim requirements and the date for their 
achievement, as appropriate.
    (iii) Reporting. The permit must be written to require that no 
later than 14 days following each interim date and the final date of 
compliance, the permittee must notify the Director in writing of its 
compliance or noncompliance with the interim or final requirements, or 
submit progress reports if paragraph (a)(3)(ii) of this section is 
applicable.
    (4) Information requirements. All treatment works treating domestic 
sewage shall submit to the Director within the time frames established 
in paragraph (d)(1)(ii) of this section the following information:
    (i) The activities conducted by the applicant which require it to 
obtain a permit.
    (ii) Name, mailing address, and location of the treatment works 
treating domestic sewage for which the application is submitted.
    (iii) The operator's name, address, telephone number, ownership 
status, and status as Federal, State, private, public, or other entity.
    (iv) Whether the facility is located on Indian lands.
    (v) A listing of all permits or construction approvals received or 
applied for under any of the following programs:
    (A) Hazardous Waste Management program under RCRA.
    (B) UIC program under SDWA.
    (C) NPDES program under CWA.
    (D) Prevention of Significant Deterioration (PSD) program under the 
Clean Air Act.
    (E) Nonattainment program under the Clean Air Act.
    (F) National Emission Standards for Hazardous Pollutants (NESHAPS) 
preconstruction approval under the Clean Air Act.
    (G) Ocean dumping permits under the Marine Protection, Research, 
and Sanctuaries Act.
    (H) Dredge or fill permits under section 404 of CWA.
    (I) Other relevant environmental permits, including State or local 
permits.
    (vi) A topographic map (or other map if a topographic map is 
unavailable) extending one mile beyond the property boundaries of the 
treatment works treating domestic sewage, depicting the location of the 
sludge management facilities (including disposal sites), the location 
of all water bodies, and the location of wells used for drinking water 
listed in the public records or otherwise known to the applicant within 
\1/4\ mile of the property boundaries;
    (vii) Any sludge monitoring data the applicant may have, including 
available ground water monitoring data, with a description of the well 
locations and approximate depth to ground water, for landfills or land 
application sites (see appendix I to 40 CFR part 257);
    (viii) A description of the applicant's sludge use and disposal 
practices (including, where applicable, the location of any sites where 
the applicant transfers sludge for treatment and/or disposal, as well 
as the name of the applicator or other contractor who applies the 
sludge to land if different from the applicant, and the name of any 
distributors when the sludge will be disposed of through distribution 
and marketing, if different from the applicant);
    (ix) For each land application site the applicant will use during 
the life of the permit, the applicant will supply information necessary 
to determine if the site is appropriate for land application and a 
description of how the site is (or will be) managed. Applicants 
intending to apply sludge to land application sites not identified at 
the time of application must submit a land application plan which at a 
minimum;
    (A) Describes the geographical area covered by the plan;
    (B) Identifies site selection criteria;
    (C) Describes how sites will be managed;
    (D) Provides for advance notice to the permit authority of specific 
land application sites and reasonable time for the permit authority to 
object prior to the sludge application; and
    (E) Provides for advance public notice as required by State and 
local law, but

[[Page 45126]]

in all cases requires notice to landowners and occupants adjacent to or 
abutting the proposed land application site.
    (x) Annual sludge production volume;
    (xi) Any information required to determine the appropriate 
standards for permitting under 40 CFR part 503; and
    (xii) Any other information the Program Director may request and 
reasonably require to assess the sludge use and disposal practices, to 
determine whether to issue a permit, or to ascertain appropriate permit 
requirements.
    (b) Conditions applicable to all permits. In addition to permit 
conditions which must be developed on a case-by-case basis in order to 
meet applicable requirements of 40 CFR part 503, paragraphs (a)(1) 
through (a)(3) of this section, and permit conditions developed on a 
case-by-case basis using best professional judgment to protect public 
health and the environment from the adverse effects of toxic pollutants 
in sewage sludge, all permits must contain the following permit 
conditions (or comparable conditions as provided for in the Memorandum 
of Agreement):
* * * * *
    (10) Monitoring and records. (i) The permittee must monitor and 
report monitoring results as specified elsewhere in this permit with a 
frequency dependent on the nature and effect of its sludge use or 
disposal practices. At a minimum, this will be as required by 40 CFR 
part 503.
* * * * *
    (13) Reopener. If a standard for sewage sludge use or disposal 
applicable to permittee's use or disposal methods is promulgated under 
section 405(d) of the CWA before the expiration of this permit, and 
that standard is more stringent than the sludge pollutant limits or 
acceptable management practices authorized in this permit, or controls 
a pollutant or practice not limited in this permit, this permit may be 
promptly modified or revoked and reissued to conform to the standard 
for sludge use or disposal promulgated under section 405(d) of the CWA.
    (14) Duty to reapply. If the permittee wishes to continue an 
activity regulated by the this permit after the expiration date of this 
permit, the permittee must apply for a new permit.
* * * * *
    (d) Permit procedures. All State programs approved under this part 
must have the legal authority to implement, and be administered in 
accordance with, each of following provisions, unless the Regional 
Administrator determines that the State program includes comparable or 
more stringent provisions.
    (1) Application for a permit. (i) Any TWTDS whose sewage sludge use 
or disposal method is covered by part 503 and covered under the State 
program, and who does not have an effective sewage sludge permit, must 
complete, sign, and submit to the Director an application for a permit 
within the following time frames.
    (A) TWTDS with a currently effective NPDES permit must submit the 
required application information when the next application for NPDES 
permit renewal is due.
    (B) The required application information is listed in 40 CFR 
122.21(q).
    (C) Other existing TWTDS not addressed under paragraph (d)(1)(i)(A) 
of this section must submit the information listed in paragraphs 
(d)(1)(i)(C)(1) through (d)(I)(i)(C)(5) of this section, to the 
Director within one year after publication of a standard applicable to 
their sewage sludge use or disposal practices. The Director will 
determine when such a TWTDS must submit a full permit application.
    (1) Name, mailing address and location of the TWTDS;
    (2) The operator's name, address, telephone number, ownership 
status, and status as Federal, State, private, public or other entity;
    (3) A description of the sewage sludge use or disposal practices. 
Unless the sewage sludge meets the ceiling concentrations in 40 CFR 
503.13(b)(1), the pollutant concentrations in 40 CFR 503.13(b)(3), the 
Class A pathogen requirements in 40 CFR 503.32(a), and one of the 
vector attraction reduction requirements in 40 CFR 503.33(b)(1) through 
(b)(8), the description must include the name and address of any 
facility where sewage sludge is sent for treatment or disposal, and the 
location of any land application sites;
    (4) Annual amount of sewage sludge generated, treated, used or 
disposed (dry weight basis); and
    (5) The most recent data the TWTDS may have on the quality of the 
sewage sludge.
    (D) Notwithstanding paragraph (d)(1)(i)(A) or (d)(1)(i)(B) of this 
section, the Director may require permit applications from any TWTDS at 
any time if the Director determines that a permit is necessary to 
protect public health and the environment from any potential adverse 
effects that may occur from toxic pollutants in sewage sludge.
    (E) Any TWTDS that commences operations after promulgation of an 
applicable standard for sewage sludge use or disposal must submit an 
application to the Director at least 180 days prior to the date 
proposed for commencing operations.
    (ii) All TWTDS with a currently effective sewage sludge permit must 
submit a new application at least 180 days before the expiration date 
of their existing permit.
    (iii) The Director will not begin the processing of a permit until 
the applicant has fully complied with the application requirements for 
that permit.
* * * * *
    (4) Fact sheets. A fact sheet must be prepared for every draft 
permit which the Director finds is the subject of widespread public 
interest or raises major issues. The fact sheet will briefly set forth 
the principal facts and the significant factual, legal, methodological 
and policy questions considered in preparing the draft permit. The 
Director will send this fact sheet to the applicant and, on request, to 
any other person.
    (5) Public notice of permit actions and public comment period. (i) 
The Director must give public notice that the following actions have 
occurred:
    (A) A draft permit has been prepared. At least 30 days must be 
allowed for public comment on the draft permit unless the Director has 
previously provided for public comment, for example after receipt of 
the permit application.
    (B) A meeting or hearing has been scheduled.
    (ii) Methods. Public notice of activities described in paragraph 
(d)(5)(i) of this section must be given in the area affected by these 
activities by any method reasonably calculated to give actual notice of 
the action in question to any person affected or requesting notice of 
the action. Public notice may include publication of a notice in a 
daily or weekly newspaper within the area affected by the facility or 
activity, press releases, or any other forum or medium to elicit public 
participation.
    (iii) Contents.
    (A) All public notices. All public notices issued under this part 
must contain the following minimum information:
    (1) Name and address of the office processing the permit action for 
which notice is being given;
    (2) Name and address of the permittee or permit applicant and, if 
different, of the facility or activity regulated by the permit;
    (3) A brief description of the activity described in the permit 
application (including the inclusion of land application plan, if 
appropriate);

[[Page 45127]]

    (4) Name, address and telephone number of a person from whom 
interested persons may obtain further information, including copies of 
the draft permit, fact sheet, and the application;
    (5) A brief description of the comment procedures required by 
Sec. 501.15(d)(6) and the time and place of any meeting or hearing that 
will be held, including a Statement of procedures to request a meeting 
or hearing (unless a meeting or hearing has already been scheduled) and 
other procedures by which the public may participate in the final 
permit decision; and
    (6) Any additional information considered necessary or proper.
    (B) Public notices for meetings or hearings. In addition to the 
general public notice described in paragraph (d)(5)(iii)(A) of this 
section, the public notice of a meeting or hearing must contain the 
following information:
    (1) Date, time and place of the meeting or hearing; and
    (2) A brief description of the nature and purpose of the meeting or 
hearing, including the applicable rules and procedures.
    (6) Public comments and requests for public meetings or hearings. 
During the public comment period, any interested person may submit 
written comments on the draft permit and may request a public meeting 
or hearing, if no meeting or hearing has already been scheduled. A 
request for a public meeting or hearing must be in writing and must 
state the nature of the issues proposed to be raised in the meeting or 
hearing. All comments will be considered in making the final decision 
and must be answered as provided in paragraph (d)(8) of this section.
    (7) Public meetings or hearings. The Director will hold a public 
meeting or hearing whenever he or she finds, on the basis of requests, 
a significant degree of public interest in a draft permit. The Director 
may also hold a public meeting or hearing at his or her discretion, 
(e.g. where such a hearing might clarify one or more issues involved in 
the permit decision).
    (8) Response to comments. At the time a final permit is issued, the 
Director will issue a response to comments. The response to comments 
must be available to the public, and must:
    (i) Specify which provisions, if any, of the draft permit have been 
changed in the final permit decision, and the reasons for the change; 
and
    (ii) Briefly describe and respond to all significant comments on 
the draft permit raised during the public comment period or during any 
meeting or hearing.
* * * * *
    20. Section 501.17 is amended by revising paragraphs (a)(3)(i) 
through (a)(3)(iii) and (b)(1) to read as follows:


Sec. 501.17  Requirements for enforcement authority.

    (a) * * *
    (3) * * *
    (i) Civil penalties will be recoverable for the violation of any 
permit condition; any applicable standard or limitation; any filing 
requirement; any duty to allow or carry out inspection, entry or 
monitoring activities; or any regulation or orders issued by the State 
Program Director. The State must at a minimum, have the authority to 
assess penalties of up to $5,000 a day for each violation.
    (ii) Criminal fines will be recoverable against any person who 
willfully or negligently violates any applicable standards or 
limitations; any permit condition; or any filing requirement. The State 
must at a minimum, have the authority to assess fines of up to $10,000 
a day for each violation. States which provide the criminal remedies 
based on ``criminal negligence,'' ``gross negligence'' or strict 
liability satisfy the requirement of this paragraph (a)(3)(ii) of this 
section.
    (iii) Criminal fines will be recoverable against any person who 
knowingly makes any false statement, representation or certification in 
any program form, or in any notice or report required by a permit or 
State Program Director, or who knowingly renders inaccurate any 
monitoring device or method required to be maintained by the State 
Program Director. The State must at a minimum, have the authority to 
assess fines of up to $5,000 for each instance of violation.
    (b)(1) The civil penalty or criminal fine will be assessable for 
each instance of violation and, if the violation is continuous, will be 
assessable up to the maximum amount for each day of violation.
* * * * *
    21. Section 501.21 is revised to read as follows:


Sec. 501.21  Program reporting to EPA.

    The State Program Director must prepare annual reports as detailed 
in this section and must submit any reports required under this section 
to the Regional Administrator. These reports will serve as the main 
vehicle for the State to report on the status of its sludge management 
program, update its inventory of sewage sludge generators and sludge 
disposal facilities, and provide information on incidents of 
noncompliance. The State Program Director must submit these reports to 
the Regional Administrator according to a mutually agreed-upon 
schedule. The reports specified below may be combined with other 
reports to EPA (e.g., existing NPDES or RCRA reporting systems) where 
appropriate and must include the following:
    (a) A summary of the incidents of noncompliance which occurred in 
the previous year that includes:
    (1) The non-complying facilities by name and reference number;
    (2) The type of noncompliance, a brief description and date(s) of 
the event;
    (3) The date(s) and a brief description of the action(s) taken to 
ensure timely and appropriate action to achieve compliance;
    (4) Status of the incident(s) of noncompliance with the date of 
resolution; and
    (5) Any details which tend to explain or mitigate the incident(s) 
of noncompliance.
    (b) Information to update the inventory of all sewage sludge 
generators and sewage sludge disposal facilities submitted with the 
program plan or in previous annual reports, including:
    (1) Name and location;
    (2) Permit numbers for permits containing sewage sludge 
requirements;
    (3) Sludge management practice(s) used; and
    (4) Sludge production volume.
    22. Section 501.32 is amended by revising paragraph (a) to read as 
follows:


Sec. 501.32  Procedures for revision of State programs.

    (a) Any State with an approved State program which requires 
revision to comply with amendments to federal regulations governing 
sewage sludge use or disposal (including revisions to this part) must 
revise its program within one year after promulgation of applicable 
regulations, unless either the State must amend or enact a statute in 
order to make the required revision, in which case such revision must 
take place within 2 years; or a different schedule is established under 
the Memorandum of Agreement.
* * * * *
[FR Doc. 98-22193 Filed 8-21-98; 8:45 am]
BILLING CODE 6560-50-P