[Federal Register Volume 65, Number 90 (Tuesday, May 9, 2000)]
[Proposed Rules]
[Pages 26792-26802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11566]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[AR-8-1-7409; FRL--6603-9]


Approval and Promulgation of Implementation Plans; Arkansas; 
Regulation 19

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA is proposing to approve revisions to the Arkansas 
State Implementation Plan (SIP or plan). Specifically, EPA proposes to 
approve a recodification of and revisions to Arkansas' SIP. These 
revisions were adopted by the Arkansas Department of Environmental 
Quality (ADEQ) on January 22, 1999, and submitted to EPA by the 
Governor of Arkansas on March 5, 1999. The EPA also proposes to 
incorporate into the Arkansas SIP portions of Arkansas regulation for 
its operating permits program which relate to the construction and 
modification of major sources. This is necessary because the submitted 
SIP revision incorporates these provisions to ensure that major sources 
which must receive an operating permit meet the Federal requirements 
relating to the construction and modification of major sources.
    The EPA proposes to approve these revisions based upon our finding 
that the regulations meet the requirements of the Clean Air Act (the 
Act) pertaining to the approval of SIPs and the Federal regulations 
which describe the requirements that a SIP must meet.
    Furthermore, EPA proposes to approve revisions to Arkansas' program 
for the prevention of significant deterioration (PSD) of air quality to 
replace the increments for total suspended particulates (TSP) with 
increments for particulate matter less than 10 microns (PM-10). In 
conjunction with this action, EPA also proposes to remove the TSP area 
designation tables in title 40 of the Code of Federal Regulations (40 
CFR) part 81 for Arkansas. The EPA is taking no action on a Chapter 8 
of the submittal of Regulation 19 which pertains to

[[Page 26793]]

designated facilities. The EPA will act on Chapter 8 in a separate 
action.

DATE: Comments must be received on or before June 8, 2000.

ADDRESSES: Written comments on this action should be addressed to Ms. 
Jole C. Luehrs, Chief, Air Permits Section (6PD-R), ATTENTION: Stanley 
M. Spruiell, at the EPA Region 6 Office listed below. Copies of 
documents relevant to this action, including the Technical Support 
Document, are available for public inspection during normal business 
hours at the following locations. Anyone wanting to examine these 
documents should make an appointment with the appropriate office at 
least two working days in advance.

Environmental Protection Agency, Region 6, Air Permits Section (6PD-R), 
1445 Ross Avenue, Dallas, Texas 75202-2733.
Arkansas Department of Environmental Quality, Division of Air Pollution 
Control, 8001 National Drive, P.O. Box 8913, Little Rock, Arkansas 
72219-8913.

FOR FURTHER INFORMATION CONTACT: Stanley M. Spruiell of the EPA Region 
6 Air Permits Section at (214) 665-7253 at the address above or at 
[email protected].

SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' or 
``our'' means EPA.

Table of Contents

I. What action are we taking?
II. What are National Ambient Air Quality Standards?
III. What actions has the State taken?
IV. Title, Intent, and Purpose--Chapter 1
V. Definitions--Chapter 2
VI. Protection of the National Ambient Air Quality Standards--
Chapter 3
VII. Minor Source Review--Chapter 4
VIII. General Emission Limitations Applicable to Equipment--Chapter 
5
IX. Upset and Emergency Conditions--Chapter 6
X. Sampling, Monitoring, and Reporting Requirements--Chapter 7
XI. 111(d) Designated Facilities--Chapter 8
XII. Prevention of Significant Deterioration (PSD) of Air Quality--
Chapter 9
XIII. Regulations for the Control of Volatile Organic Compounds--
Chapter 10
XIV. Major Source Permitting Procedures--Chapter 11
XV. Insignificant Activities List--Appendix A
XVI. Proposed Action.
XVII. Administrative Requirements

I. Summary of Today's Action

A. What Action Are We Taking?

    We propose to approve Regulation 19 of the ADEQ, except for Chapter 
8--Designated Facilities. Regulation 19 revises and recodifies the 
Arkansas SIP. The submitted regulation includes provisions which 
address the requirements of the Act and ensures the attainment and 
maintenance of the National Ambient Air Quality Standards (NAAQS) we 
promulgated under section 109 of the Act. The ADEQ adopted and 
submitted Regulation 19 under section 110 of the Act. The regulation 
includes:

--Enforceable emission limitations and other control measures and 
techniques,
--A program for enforcement of such measures,
--Provisions for the regulation of the modification and construction of 
stationary sources, and
--Other measures required under section 110 of the Act.

    We also propose to incorporate into the Arkansas SIP portions of 
Arkansas Regulation 26--Regulation of the Arkansas Operating Permit 
Program, adopted July 23, 1993 and submitted to EPA on October 29, 
1993. Under this proposal we will incorporate the provisions of 
Regulation 26 that are incorporated by reference by Regulation 19, 
Chapter 11. The provisions of Regulation 26 so incorporated are the 
provisions of Regulation 26 that meet the Federal requirements of 40 
CFR part 51, subpart I as they apply to new and modified major sources 
that are permitted under Regulation 26.
    We have reviewed the submittal and determine that Regulation 19 and 
the incorporated provisions of Regulation 26 meet the requirements of 
the Act. The following sections of this preamble summarize the 
requirements of regulations and our basis for proposing approval.
    We have also prepared a Technical Support Document (TSD) which 
contains a detailed analysis of our evaluation and proposed approval of 
Regulation 19. The TSD is included as part of the public docket and is 
available at the addresses listed above.

B. Are There Provisions of Regulation 19 That We Are Not Acting On in 
Today's Proposal?

    We are taking no action on Chapter 8--Designated Facilities. 
Designated facilities are regulated under section 111(d) of the Act. 
The review process of State Plans for designated facilities is carried 
out separately from other SIP activities. Please see section XI of this 
preamble for further discussion of designated facilities and the basis 
for taking no action in today's proposal.

II. What Are National Ambient Air Quality Standards?

    Section 109 of the Act requires the EPA Administrator to establish 
NAAQS for air pollutants which the Administrator has issued air quality 
criteria (criteria pollutants). For each criteria pollutant, 
Administrator must establish

--A primary ambient air quality standard which is necessary to protect 
the public health, and
--A secondary ambient air quality standard to protect the public 
welfare from any known or anticipated adverse affects associated with 
the presence of such air pollutant.

    We have established NAAQS in 40 CFR part 50, National Primary and 
Secondary Ambient Air Quality Standards. The criteria pollutants for 
which NAAQS exist are: sulfur oxides, particulate matter, carbon 
monoxide, ozone, nitrogen dioxide, and lead. Regulation 19 includes 
measures to ensure that NAAQS for these criteria pollutants are 
maintained.

III. What Actions Has the State taken?

    On January 22, 1999, ADEQ adopted Regulation 19--Regulations of the 
Arkansas Plan of Implementation for Air Pollution Control after holding 
a public hearing on November 23, 1998. Regulation 19 became effective 
as a State rule on February 15, 1999.
    The Governor of Arkansas submitted Regulation 19 to us on March 5, 
1999, and requested that we approve Regulation 19 as a revision to the 
Arkansas SIP. We reviewed the SIP submittal for administrative 
completeness to assure that it meets the criteria set forth in 40 CFR 
part 51, appendix V--Criteria for Determining the Completeness of Plan 
Submissions. We informed the Governor and ADEQ on May 25, 1999, that 
the submission met these criteria and is administratively complete. Our 
determination that the plan submission is administratively complete 
means that we consider it to be an official submission for the purposes 
of 40 CFR 51.103.
    Regulation 19 includes the following Chapters and Appendix as 
described in Table 1 below:

Table 1.--Chapters and Appendices in Regulation 19 Submitted by Arkansas
                            on March 5, 1999
------------------------------------------------------------------------
                Chapter                               Title
------------------------------------------------------------------------
Chapter  1.............................  Title, Intent, and Purpose.
Chapter  2.............................  Definitions.
Chapter  3.............................  Protection of the National
                                          Ambient Air Quality Standards.
Chapter  4.............................  Minor Source Review.
Chapter  5.............................  General Emission Limitations
                                          Applicable to Equipment.

[[Page 26794]]

 
Chapter  6.............................  Upset and Emergency Conditions.
Chapter  7.............................  Sampling, Monitoring, and
                                          reporting Requirements.
Chapter  8.............................  Designated Facilities.
Chapter  9.............................  Prevention of Significant
                                          Deterioration.
Chapter 10.............................  Regulations for the Control of
                                          Volatile Organic Compounds.
Chapter 11.............................  Major Source permitting
                                          Procedures.
Appendix A.............................  Insignificant Activities List.
------------------------------------------------------------------------

IV. Title, Intent, and Purpose--Chapter I

A. What Has Changed Since the Last Approval?

    The provisions of Chapter 1 were previously identified in the 
Arkansas Rules of the Plan (ROP), Section 1--Title, Section 2--Purpose, 
and Section 9--Severability. These Sections were approved at 41 FR 
43904 (October 5, 1976). These provisions are now recodified in Chapter 
1, which is divided into Section 19.101--Title, Section 19.102--
Applicability, Section 19.103--Intent and Construction, and Section 
19.104--Severability.
    Section 19.101 recodifies Arkansas ROP Section 1 and identifies the 
Title as ``Regulations of the Arkansas Plan of Implementation of Air 
Pollution Control,'' also referred to as the ``Regulations of the 
Plan'' and ``Regulation 19.''
    Section 19.102 recodifies portions of Arkansas ROP Section 2 and 
provides that Regulation 19 applies to any stationary source which has 
the potential to emit any Federally regulated pollutant.
    Section 19.103 recodifies Arkansas ROP Section 2 and revises the 
Plan to more specifically identify the intent and construction of 
Regulation 19 as follows:

--Provide a clear delineation of the regulations of the ADEQ that are 
adopted to satisfy the requirements of the Act and the Federal 
regulations which stem from the Act. The Federal requirements that the 
ADEQ administers are: the NAAQS (40 CFR part 50), certain delegated 
subparts of the New Source Performance Standards (NSPS)(40 CFR part 
60), provisions designed for PSD (40 CFR 52.21), minor new source 
review as described in Chapter 4 of Regulation 19 (40 CFR part 51) and 
certain delegated subpart of the National Emission Standards for 
Hazardous Air Pollutants (NESHAP)(40 CFR parts 61 and 63).
--Limits Federal enforceability to only those requirements mandated by 
Federal law and facilitates a permit system which provides for permit 
conditions that are federally enforceable as well as those conditions 
which are State enforceable.
--Presumes a single permit system which encompasses both Federal and 
State requirements.
--Promotes a streamlined permitting process which mitigates regulatory 
costs and provides flexibility in maintaining compliance with Federal 
mandates.

    Section 19.104 recodifies Arkansas ROP Section 9 and provides that 
when a provision of Regulation 19 is determined to be invalid, such 
invalidity shall not affect other provisions of Regulation 19.

B. Is Chapter 1 Approvable?

    Chapter 1 requires that sources in Arkansas meet all requirements 
of the Act and is therefore approvable.

V. Definitions--Chapter 2

A. What Has Changed Since the Last Approval?

    The definitions were previously identified in Arkansas ROP, Section 
3--Definitions. The definitions are now codified in Chapter 2 which 
lists and defines several terms that are used in Regulation 19. The TSD 
contains a detailed analysis of the definitions in Chapter 2 and the 
basis for our proposed approval.

B. Is Chapter 2 Approvable?

    The definitions in Chapter 2 are consistent with the corresponding 
definitions in the Act and in applicable Federal regulations. We 
therefore propose to approve Chapter 2 of Regulation 19.

VI. Protection of the National Ambient Air Quality Standards--
Chapter 3

A. What Has Changed Since the Last Approval?

    The provisions of Chapter 3 were previously documented in Arkansas 
ROP Section 2. Chapter 3 is divided into Section 19.301--Purpose, 
Section 19.302--Department Responsibilities, Section 19.303--Regulated 
Source Responsibilities, and Section 19.304--Delegated Federal 
Programs.
    Section 19.301 defines the purpose of Chapter 3 as identifying the 
responsibilities of the State and of regulated sources in meeting and 
maintaining the NAAQS. Section 19.302 identifies the ADEQ's 
responsibilities as taking precautions to prevent the NAAQS from being 
exceeded. The precautions include conducting air quality monitoring and 
using computer modeling (according to EPA approved models) when it 
reasonably expects air quality to be in excess of the NAAQS.
    Section 19.303 identifies the responsibilities of the regulated 
sources. Such responsibilities include: (1) obtaining a permit when 
required by law or Regulation 19, (2) operating equipment in such 
manner as to meet applicable requirements of permits and regulations, 
and (3) repairing malfunctioning equipment and pollution control 
equipment as quickly as possible.
    Section 19.304 requires sources to comply with all Federal programs 
that the ADEQ is responsible for administering. This includes: (1) 
certain delegated subparts of the NSPS (40 CFR part 60), (2) provisions 
designed for PSD (40 CFR 52.21), (3) certain delegated subparts of the 
NESHAP (40 CFR parts 61 and 63), which were promulgated September 28, 
1998.

B. Is Chapter 3 Approvable?

    As submitted, Chapter 3 incorporates the previously approved SIP 
with revisions which clarify how the ADEQ will maintain compliance with 
the NAAQS. We therefore propose to approve Chapter 3 of Regulation 19.

VII. Minor Source Review--Chapter 4 and Parts of Chapters 3 and 5

A. What Has Changed Since the Last Approval?

    The currently approved SIP was approved on May 5, 1989, 54 FR 
18494. The requirements for permitting the construction of new and 
modified sources were previously documented in Arkansas ROP, Section 
4--Permits. The current requirements are documented in Regulation 19, 
Chapter 4 (Minor Source Review) and in parts of Chapter 3 (Protection 
of the National Ambient Air Quality Standards) and Chapter 5 (General 
Emission Limitations Applicable to Equipment). Chapter 4 and parts of 
Chapters 3 and 5 contains the requirements for permitting new and 
modified minor sources.\1\ The following paragraphs address our 
evaluation of Chapter 4 and the minor source review provisions of 
Chapters 3 and 5.
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    \1\ The permitting requirements for major sources are in 
Chapters 9 and 11. These Chapters are discussed in sections XII and 
XIV of this preamble.

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[[Page 26795]]

    Chapter 4 recodifies the permitting requirements for minor sources 
and divides the program as follows:

           Table 2.--Description of Each Section in Chapter 4
------------------------------------------------------------------------
           Section                    Title              Description
------------------------------------------------------------------------
19.401......................  General               Identifies emission
                               Applicability.        thresholds for each
                                                     air pollutant for
                                                     which a permit is
                                                     required if the
                                                     threshold is
                                                     exceeded.
19.402......................  Approval Criteria...  Requires a source to
                                                     show that
                                                     construction or
                                                     modification does
                                                     not violate control
                                                     strategy and does
                                                     not interfere with
                                                     attainment or
                                                     maintenance of a
                                                     NAAQS.
19.403......................  Owner/Operator        Requires that
                               Responsibilities.     issuance of a
                                                     permit does not
                                                     interfere with
                                                     owner's or
                                                     operator's
                                                     responsibility to
                                                     comply with
                                                     applicable portions
                                                     of Regulation 19.
19.404......................  Required Information  Identifies the
                                                     minimum information
                                                     required in a
                                                     complete permit
                                                     application.
19.405......................  Action on             Describes the
                               Application.          administrative
                                                     process for
                                                     reviewing and
                                                     issuing a permit.
19.406......................  Public Participation  Describes the
                                                     procedures for
                                                     public
                                                     participation.
19.407......................  Permit Amendments...  Describes the
                                                     procedures for
                                                     amending a permit.
19.408......................  Exemption from        Identifies
                               Permitting.           construction
                                                     activities which
                                                     are exempt from
                                                     permitting.
19.409......................  Transition..........  Provides for sources
                                                     which become
                                                     subject to
                                                     Regulation 19 as of
                                                     the effective date
                                                     of the Regulation
                                                     to submit
                                                     application meeting
                                                     Regulation 19
                                                     requirements within
                                                     180 days the date
                                                     that Regulation 19
                                                     became effective as
                                                     a State regulation
                                                     (February 15,
                                                     1999).
19.410......................  Permit Revocation     Describes when the
                               and Cancellation.     ADEQ may revoke or
                                                     cancel a permit.
19.411......................  General Permits.....  Describes provisions
                                                     by which a source
                                                     may obtain a
                                                     general permit.
19.412......................  Dispersion Modeling.  Describes the
                                                     requirements for
                                                     dispersion modeling
                                                     to demonstrate
                                                     compliance with the
                                                     NAAQS.
19.413......................  Confidentiality.....  Provides for
                                                     confidential
                                                     treatment of
                                                     information or
                                                     trade secrets which
                                                     are included in a
                                                     permit application.
------------------------------------------------------------------------

    The TSD contains a more detailed description of each section and a 
detailed discussion of the basis for how each Section of Chapter 4 
meets the Federal requirements in 40 CFR part 51, subpart I. The 
requirements of subpart I are discussed in greater detail in section 
VII.G of this preamble.

B. Does Arkansas Address the Minor Source Review Requirements in Any In 
Other Part of Regulation 19?

    Arkansas also addresses requirements of 40 CFR part 51, subpart I 
in the following sections of Regulation 19:

Section 19.303. Department Responsibilities
Section 19.502. General Regulations
Section 19.504. Stack Height/Dispersion Regulations

    Our analysis of Arkansas minor source review program includes our 
analysis of the new source review provisions of these sections in 
addition to the provisions of Chapter 4.\2\
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    \2\ This section of the preamble only addresses Chapters 3 and 5 
that pertain to minor source review. Other provisions of these 
Chapters, not related to minor source review are discussed elsewhere 
in this preamble as follows: Chapter 3 is discussed in Section VI 
and Chapter 5 is discussed in Section VIII.
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C. What Is Minor Source Review?

    Minor source review is the assessment of the emissions and their 
impacts on the ambient air from new and modified minor sources. The 
ADEQ adopted and submitted Chapter 4 as a revision to its SIP which 
includes its minor source review provisions. Chapter 4 includes a 
mechanism to assure that the emissions from new and modified minor 
sources:

--Do not violate the control strategy in its approved SIP and
--Do not interfere with the maintenance and attainment of the NAAQS.

D. Why Is Minor Source Review Needed in the SIP?

    Minor source review is required by section 110(a)(2)(C) of the Act 
which requires each plan to ``include a program to provide for the * * 
* regulation of the modification and construction of any stationary 
source within the areas covered by the plan as necessary to assure that 
the national ambient air quality standards are achieved * * *''
    We also require plans to address the construction and modification 
of a facility, building, structure, or installation in 40 CFR part 51, 
subpart I--Review of New Sources and Modifications (subpart I). These 
provisions require the plan to include provisions which ensure that new 
and modified sources will not violate applicable portions of the 
control strategy and will not interfere with the attainment or 
maintenance of a NAAQS.\3\ See 40 CFR 51.160(a).
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    \3\ Subpart I applies to the construction and modification of 
all sources, including major and minor sources. Chapter 4 of 
Regulation 19 only addresses the review requirements applicable to 
minor sources. Arkansas addresses the review requirements for major 
sources in Regulation 19, Chapter 9--Prevention of Significant 
Deterioration (discussed in section XII of this preamble), and in 
Chapter 11--Major Source Permitting Procedures (discussed in section 
XIV of this preamble).
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E. What Is a Minor Source?

    A minor source is any source which does not meet the definition of 
a major source. The Act in section 302(j) defines the terms ``major 
stationary source'' and ``major emitting facility'' as ``any stationary 
facility or source of air pollutants which directly emits, or has the 
potential to emit, one hundred tons per year or more of any air 
pollutant (including any major emitting facility or source of fugitive 
emissions of any such pollutant, as determined by rule by the 
Administrator).'' Regulation 19.903(B) adopts these definitions. The 
provisions of Regulation 19, Chapter 4 apply only

[[Page 26796]]

to sources which are not ``major'' under this definition.

F. What Are the Federal Requirements for Review of New or Modified 
Minor Sources?

    As mentioned in section VII.C, the requirements of a program for 
review of new and modified sources are contained in subpart I. This 
subpart consists of sections 51.160-51.164 which apply to the review of 
new and modified sources.\4\ We can approve any implementation plan 
which meets these requirements.
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    \4\ Subpart I also includes sections 51.165, Permit 
requirements, and 51.166--Prevention of significant deterioration of 
air quality (PSD). The requirements of these sections apply only to 
the construction and modification of major sources as defined in 
those sections. Section 51.165 is applicable to the permitting of 
major sources and major modifications in nonattainment areas. At 
present, Arkansas has no nonattainment areas and section 51.165 does 
not apply. Section 51.166 applies to sources subject to PSD and is 
discussed in more detail in our evaluation of the PSD program in 
Chapter 9. See the discussion of the PSD program in section XII of 
this preamble.
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G. Do the Minor Source Review Provisions of Chapters 3, 4, and 5 Meet 
the Requirements of Subpart I?

    The Tables 3 and 4 outline the requirements of subpart I and 
identifies the provisions of Regulation 19 which satisfy these subpart 
requirements.\5\ The TSD contains a more detailed discussion on the 
subpart I requirements and of the Regulation 19 provisions which meet 
the requirements in subpart I.
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    \5\ Please note that Tables 3 and 4 identify the provisions of 
Regulation 19 which satisfy the requirements of subpart I. In 
addition to Chapter 4--Minor Source Review, certain requirements of 
subpart I are also satisfied in a portion of Chapter 3--Protection 
of the National Ambient Air Quality Standards and Chapter 5--General 
Emission Limitations Applicable to Equipment.

     Table 3.--Chart Comparing 40 CFR Part 51, Subpart I to Arkansas
                   Regulation 19, Chapters 3, 4, and 5
------------------------------------------------------------------------
   Provision of 40 CFR 51, subpart I       State rule for minor sources
------------------------------------------------------------------------
             Section 51.160  Legally enforceable procedures
------------------------------------------------------------------------
(a) Determine whether proposed           Sections 19.401, 19.402,
 construction or modification will        19.403, 19.405, 19.407,
 violate control strategy or interfere    19.408, 19.410, 19.411, and
 with attainment or maintenance of a      19.502.
 NAAQS.
(b) Prevent construction or              Sections 19.303, 19.402,
 modification which does not meet         19.405, 19.410, 19.411, and
 paragraph (a) as described above.        19.502.
(c) Submission of required information   Sections 19.404 and 19.405.
 by owner or operator of source
 undergoing construction or
 modification.
(d) Approval to construct does not       Sections 19.303, 19.403, and
 affect responsibility to comply with     19.502.
 control strategy.
(e) Identify types and sizes of          Sections 19.401, 19.407, 19.40,
 facilities, buildings, structures, or    19.411, and Appendix A.
 installations that are subject to
 review.
(f) Air quality data and dispersion and  Sections 19.302 and 19.412.
 other air quality modeling.
------------------------------------------------------------------------
           Section 51.161  Public availability of information
------------------------------------------------------------------------
(a) State or local agency must provide   Sections 19.405, 19.406, and
 opportunity for public comment on        19.411.
 information submitted, and include
 agency's analysis of effects the
 construction or modification on
 ambient air quality, and the agency's
 proposed approval or disapproval.
(b) Minimum requirements for public      Sections 19.406 and 19.411.
 notice.
(c) Public comment period other than 30  N/A.
 days if 30-day comment period
 conflicts with existing requirements.
(d) Send copy of public notice to the    Section 19.406.
 EPA Regional Office, all other State
 and local air pollution control
 agencies having jurisdiction.
------------------------------------------------------------------------
          Section 51.162  Identification of responsible agency.
------------------------------------------------------------------------
Identify State or local agency           Sec.  19.405
 responsible for meeting requirements
 of 40 CFR part 51, subpart I.
------------------------------------------------------------------------
                Section 51.163  Administrative procedures
------------------------------------------------------------------------
Identify the administrative procedures   Sections 19.404, 19.405,
 that the responsible agency will         19.406, 19.407, 19.408,
 follow in making the determination in    19.409, 19.410, 19.411, and
 40 CFR 51.160.                           19.413.
------------------------------------------------------------------------
                 Section 51.164  Stack height procedures
------------------------------------------------------------------------
The degree of emission limitation must   Sec.  19.504.
 not be affected by stack height that
 exceeds good engineering practice.
------------------------------------------------------------------------


 Table 4.--Chart Comparing Arkansas Regulation 19, Chapters 3, 4, and 5
                      to 40 CFR Part 51, Subpart I
------------------------------------------------------------------------
                                         Provision of 40 CFR 51, subpart
      State rule for minor sources                      I
------------------------------------------------------------------------
   Chapter 3--Protection of the National Ambient Air Quality Standards
------------------------------------------------------------------------
Section 19.303. Regulated Sources Responsibilities Section 51.160(d)....

[[Page 26797]]

 
------------------------------------------------------------------------
                     Chapter 4--Minor Source Review
------------------------------------------------------------------------
Section 19.401. General Applicability..  Section 51.160(a) and (e).
Section 19.402. Approval Criteria......  Section 51.160(a)-(b).
Section 19.403. Owner/Operator's         Section 51.160(d).
 Responsibilities.
Section 19.404. Required Information...  Sections 51.160(c) and 51.163.
Section 19.405. Action on Application..  Sections 51.160(a)-(c);
                                          51.161(a); 51.162; and 51.163.
Section 19.406. Public Participation...  Sections 51.160(b); 51.161(a)-
                                          (b), and (d); and 51.163.
Section 19.407. Permit Amendments......  Sections 51.160(a), (e); and
                                          Sec.  51.163.
Section 19.408. Exemptions from          Sections 51.160(a), (e); and
 Permitting.                              51.163.
Section 19.409. Transition.............  Section 51.163.
Section 19.410. Permit Revocation and    Sections 51.160(a)-(b); and
 Cancellation.                            51.163.
Section 19.411. General Permits........  Sections 51.160(a)-(b), and
                                          (e); 51.161(a)-(b); and
                                          51.163.
Section 19.412. Dispersion Modeling....  Section 51.160(f).
Section 19.413. Confidentiality........  Section 51.163.
------------------------------------------------------------------------
     Chapter 5--General Emission Limitations Applicable to Equipment
------------------------------------------------------------------------
Section 19.502. General Regulations....  Section 51.160(a)-(b).
Section 19.504. Stack Height/Dispersion  Section 51.164.
 Regulations.
------------------------------------------------------------------------

G. Are the Minor Source Review Provisions of Chapters 3, 4, and 5 
Approvable?

    As shown in Tables 3 and 4 above, the Minor Source Review 
provisions of Chapters 3, 4, and 5 meet the requirements of subpart I. 
We therefore find that these provisions meet the requirements of the 
Act and the requirements of subpart I. We therefore propose to approve 
these Minor Source Review provisions of Regulation 19.

VIII. General Emission Limitations Applicable to Equipment--Chapter 
5

A. What Has Changed Since the Last Approval?

    The currently approved SIP was approved on January 12, 1982 (47 FR 
01291), January 14, 1982 (47 FR 02113), and February 23, 1989 (54 FR 
07764). Emission limitations were previously documented in Arkansas 
ROP, Sections 5 and 8. Section 5 contained the regulations for new and 
modified equipment. Section 8 contained the regulations for existing 
equipment. The current Chapter 5 consolidates ROP Sections 5 and 8 into 
a single regulation. The Chapter generally defines the Federally 
regulated air pollutant limitations applicable to all equipment subject 
to the plan.
    The Chapter is divided into Sections defining the Purpose (Section 
19.501), General Regulations (Section 19.502), Visible Emission 
Regulations (Section 19.503), Stack Height/Dispersion Regulations 
(Section 19.504), and Revised Emission Limitations (Section 19.505).
    The Sections on General Regulations (19.502) and Stack Height/
Dispersion (19.504) are discussed in Tables 3 and 4 in section IV of 
this preamble. These Tables identify the requirements of subpart I 
which these portions of Regulation 19 satisfy.
    Section 19.503 documents the requirements for visible emissions and 
combines the requirements for new, modified, and existing equipment. It 
has been updated with terminology consistent with EPA Method 9 for the 
determination of opacity of visible emissions (40 CFR part 60, Appendix 
A).
    Section 19.505 permits the Director to revise emission limitations 
upward or downward in certain situations. The Director may impose more 
restrictive emission limitations if necessary to protect the NAAQS. The 
Director may not approve a less stringent limitation if it would cause 
a violation of the NAAQS.

B. Is Chapter 5 Approvable?

    Since the Chapter only consolidates requirements for new, modified, 
and existing equipment for visible emissions and updates the 
terminology, satisfies some requirements for subpart I, and restricts 
the Director's ability to approve revised emission limitations if the 
revision would violate the NAAQS, we propose approval of Chapter 5.

IX. Upset and Emergency Conditions--Chapter 6

A. What Has Changed Since the Last Approval?

    The currently approved SIP was approved on August 27, 1981, 46 FR 
43145. The provisions for upset conditions were previously contained in 
Arkansas ROP, Section 6. The current requirements in the event of an 
upset are documented in Chapter 6, Section 19.601. The requirements 
relating to an Emergency condition are contained in Section 19.602.
    Section 601 defines an upset condition and sets requirements for 
action to minimize or eliminate the excess emissions. This Section 
meets the ``enforcement discretion'' approach and the ``affirmative 
defense'' criteria stated in EPA's Excess Emission Policy (see memo 
State Implementation Plans (SIPs): Policy Regarding Excess Emissions 
During Malfunctions, Startup, and Shutdown from Steven A. Herman, 
Assistant Administrator for Enforcement and Compliance Assurance, and 
Robert Perciasepe, Assistant Administrator for Air and Radiation, to 
Regional Administrators, Regions I-X, September 20, 1999). It also 
establishes reporting requirements which meet the record keeping and 
reporting aspects of an exceedence.
    Section 602 defines emergency condition, such as acts of nature 
which are beyond the control of the source or operator. It also 
outlines the steps required to take acceptable corrective action when 
emissions are exceeded.

B. Is Chapter 6 Approvable?

    Chapter 6 meets EPA's policy on excess emissions, contains the 
necessary elements to make the requirements enforceable and is 
consistent with the current SIP. We propose approval of Chapter 6.

[[Page 26798]]

X. Sampling, Monitoring, and Reporting Requirements--Chapter 7

A. What Has Changed Since the Last Approval?

    Sampling, monitoring, and reporting requirements were previously 
documented in Arkansas ROP, Section 7. The currently approved SIP was 
approved on August 27, 1981, 46 FR 43145. These requirements are now 
documented in Chapter 7, Section 19.701 through 19.706. In general, 
Chapter 7 applies only to federally regulated air pollutant emissions.
    The Chapter is divided into Sections defining the Purpose of the 
Chapter (Section 19.701), requirements for Air Emissions Sampling 
(Section 19.702), Continuous Emissions Monitoring (Section 19.703), and 
Record Keeping and Reporting (Section 19.705). The Chapter has added 
Sections for a Notice of Completion (Section 19.704) and Public 
Availability of Emissions Data (Section 19.706).
    The Sections on Air Emissions Sampling, Continuous Emissions 
Monitoring, and Record Keeping and Reporting are contextually similar 
to the previously approved SIP.
    The Section added on Notice of Completion requires that for 
equipment for which a new major permit or major permit modification is 
required, the Department shall be notified in writing within 30 days of 
the date of commencement of construction or modification and the date 
of commencement of operation of the equipment.
    The Section added for Public Availability of Emission Data requires 
that data obtained by the Department shall be correlated in units of 
applicable emissions limitations and made available to the public.

B. Is Chapter 7 Approvable?

    Since the Chapter's major change is to make the requirements 
applicable to Federally regulated air pollutants, which is acceptable, 
the added Sections increase requirements, and the remaining sections 
are essentially unchanged, we propose approving Chapter 7.

XI. 111(d) Designated Facilities--Chapter 8

    Under Section 111(d) of the Act, emission standards are to be 
adopted by the States and submitted to the EPA for approval. These 
standards limit the emissions of designated pollutants from existing 
facilities which, if new, would be subject to the NSPS. The procedures 
under which States submit these plans to control existing sources are 
defined in 40 CFR part 60, subpart B. The submittal and review process 
of these State Plans is carried out separately from other SIP 
activities. We are thus taking no action on Chapter 8 in today's 
proposal.

XII. Prevention of Significant Deterioration of Air Quality--  
Chapter 9.

A. How Does Arkansas' SIP Currently Address PSD?

    Currently, the SIP requirements for PSD are approved as the PSD 
Supplement to the Arkansas Plan of Implementation For Air Pollution 
Control. We approved the initial plan submitted by the Governor on 
April 23, 1981 (adopted April 10, 1981), and revisions submitted June 
3, 1988 (adopted March 25, 1988) and June 19, 1990 (adopted May 25, 
1990). We approved the current Arkansas PSD program on May 2, 1991 (56 
FR 20137). The current PSD program is documented in 40 CFR 52.170(c) in 
the table ``EPA Approved Regulations in the Arkansas SIP'' and 40 CFR 
52.181.

B. How Does Regulation 19 Address PSD?

    Arkansas recodified its PSD program in Regulation 19, Chapter 9. 
Chapter 9 recodifies the PSD regulations without substantive change 
except as discussed below.

C. What Has Changed Since Our Last Approval of Arkansas' PSD Program?

    We replaced the PSD increments for TSP with increments for PM-10 on 
June 3, 1993 (58 FR 31622). We promulgated this revision to the Federal 
PSD permitting regulations in 40 CFR 52.21, as well as revision to the 
PSD permitting requirements that State programs must meet in order to 
be approved into the SIP in 40 CFR 51.166.
    These revised regulations specified the implementation date for 
States with SIP-approved PSD permitting programs (including Arkansas) 
as the date that we approve the revised State PSD program containing 
the PM-10 increments. In accordance with 40 CFR 51.166(a)(6)(i), each 
State with a SIP-approved PSD program was required to adopt the PM-10 
increment requirements, which Arkansas submitted and which we are 
approving in this action. For further background regarding the PM-10 
increments, see the June 3, 1993, Federal Register document.
    In order to address the PM-10 increments, the State of Arkansas 
revised Regulation 19, Chapter 9. Arkansas changed the date of which 
the Federal regulations are incorporated by reference from June 28, 
1989 to June 3, 1994 (the effective date of the PM-10 increments). We 
have reviewed this revision and found that it addresses all of the 
required regulatory revisions for PM-10 increments. In today's action 
we propose to approve the recodification of Arkansas' PSD program and 
the revisions to incorporate the PM-10 increments into the SIP. We are 
also proposing, consistent with Arkansas' revisions, to remove the TSP 
area designation tables in 40 CFR part 81 for Arkansas.

D. Why Are We Removing the TSP Area Designation Tables in 40 CFR Part 
81 for Arkansas?

    Section 107(d) of the 1977 Amendments to the Act authorized each 
State to submit to the Administrator a list identifying those areas 
which: (1) do not meet a NAAQS (nonattainment areas), (2) cannot be 
classified on the basis of available ambient data (unclassifiable 
areas), and (3) have ambient air quality levels better than the NAAQS 
(attainment areas). In 1978, we published the original list of all area 
designations pursuant to section 107(d)(2) (section 107 areas), 
including those designations for TSP, in 40 CFR part 81.
    One of the purposes stated in the Act for the section 107 areas is 
for implementation of the statutory requirements for PSD. The PSD 
provisions of part C of the Act generally apply in all section 107 
areas that are designated attainment or unclassifiable (40 CFR 
52.21(I)(3)). Under the PSD program, the air quality in an attainment 
or unclassifiable area is not allowed to deteriorate beyond prescribed 
maximum allowable increases in pollutant concentrations (i.e., 
increments).
    We revised the primary and secondary NAAQS for particulate matter 
on July 1, 1987 (52 FR 24634), eliminating TSP as the indicator for the 
NAAQS and replacing it with the PM-10 indicator. However, we did not 
delete the section 107 areas for TSP listed in 40 CFR part 81 at that 
time because there were no increments for PM-10 promulgated at that 
time.\6\ States were required to continue implementing the TSP 
increments in order to prevent significant deterioration of particulate 
matter air quality until the PM-10 increments replaced the TSP

[[Page 26799]]

increments. With the State adoption and implementation of the PM-10 
increments becoming effective, the TSP area designations generally 
serve no useful purpose relative to the PSD program. Instead, the PM-10 
area designations now serve to properly identify those areas where air 
quality is better than the NAAQS, i.e., ``PSD areas,'' and to provide 
the geographic link necessary for implementation of the PM-10 
increments.\7\
---------------------------------------------------------------------------

    \6\ We did not promulgate new PM-10 increments simultaneously 
with the promulgation of the PM-10 NAAQS. Under section 166(b) of 
the Act, we are authorized to promulgate new increments ``not more 
than two years after the date of promulgation of * * * standards.'' 
Consequently, we temporarily retained the TSP increments, as well as 
the section 107 areas for TSP.
    \7\ Section 107(d)(4)(B)(iii) of the Act mandates that all areas 
not designated nonattainment for PM-10 by operation of law, are 
designated unclassifiable. The PM-10 increments apply in any area 
designated unclassifiable for PM-10.
---------------------------------------------------------------------------

    Thus, in the June 3, 1993, Federal Register document in which we 
promulgated the PM-10 increments, we stated that, for States with SIP-
approved PSD programs, we would delete the TSP area designations at the 
same time we approve the revision to a State's plan incorporating the 
PM-10 increments. In deleting any State's TSP area designations, we 
must ensure that the deletion of those designations will not result in 
a relaxation of any control measures that ultimately protect the PM-10 
NAAQS.
    As stated above, Arkansas has adopted and submitted adequate PSD 
revisions for PM-10 increments. In addition, Arkansas has no TSP areas 
designated as nonattainment. All existing particulate control measures 
in the Arkansas SIP remain in effect to ensure continuing attainment 
and maintenance of the PM-10 standard throughout the State. Thus, 
deletion of the TSP area designations will not result in relaxation of 
any PM controls that would impact the PM-10 NAAQS. We believe it is 
appropriate at this time to delete the State's TSP designation tables 
in 40 CFR 81.304.
    Consistent with the above discussion, we are proposing to delete 
all of Arkansas' existing TSP designation tables in 40 CFR 81.304 and 
placing these section 107 areas into the PM-10 area designation table 
in 40 CFR 81.304, consistent with the June 3, 1993 Federal Register.

E. Is Chapter 9 approvable?

    The only significant changes to Chapter 9 is to incorporate the 
requirements for the PSD increments for PM-10. Since we have determined 
that the changes meet the requirements of the Act and of the Federal 
PSD requirements, we are proposing to approve Chapter 9. We are also 
proposing to TSP area designation tables in 40 CFR part 81 for 
Arkansas.

XIII. Regulations for the Control of Volatile Organic Compounds--
Chapter 10

A. What has changed since the last approval?

    The currently approved SIP was approved, in general, January 29, 
1980 (45 FR 06569) as Arkansas volatile organic compound (VOC) 
Regulations, Sections 1 through 6. The most recent revision to Sections 
3 and 4 was on October 13, 1981 (46 FR 50370). The most recent revision 
to Section 5 was on February 7, 1983 (48 FR 05722). The current 
Regulation integrates the VOC rules into Regulation 19 as Chapter 10, 
Sections 19.1001 through 19.1006. The Regulation 19 Sections are 
essentially the same as the Arkansas VOC Rules Sections. The Regulation 
19 Sections are Title (19.1001), Purpose (19.1002), Definitions 
(19.1003), General Provisions (19.1004), Provisions for Specific 
Processes (19.1005), and Severability (19.1006).
    Sections 19.1003 and 19.1004 were changed by moving definitions for 
``Volatile Organic Compounds,'' ``Sources '' ``Organic compounds with 
negligible photochemical reactivity,'' ``Commission,'' and ``Potential 
to emit'' to Chapter 2 containing other definitions.
    Section 19.1004 contains only minor wording changes which corrected 
previous version or removed redundant wording. The requirement for 
Lowest Achievable Emission Rate for new major sources is changed to 
mirror the requirements of the Act which are in effect as of the 
effective date of this regulation. This change updates the requirements 
to the Federal Clean Air Act requirements.
    Section 19.1005 relating to Surface Coating of Metal Parts and 
Products was changed such that the requirement that if more than one 
emission limitation applies to a specific coating, then the most 
(rather than the least) stringent emission limitation shall be applied. 
Section 19.1005(F) relating to External Floating Roof Tanks was changed 
to reduce the gap area between the secondary seal and tank wall for 
vapor mounted seals. This is a more stringent requirement.
    All other Sections in Chapter 10 were unchanged.

B. Is Chapter 10 approvable?

    Since Chapter 10, VOC Regulations, is essentially the same as the 
previously approved VOC Regulations and the minor changes are 
acceptable, we propose approval of Chapter 10.

XIV. Major Source Permitting Procedures--Chapter 11

A. What Does Chapter 11 Require?

    Chapter 11 of Regulation 19 addresses the permitting procedures for 
major sources which are also subject to Regulation 26, Arkansas' 
regulation for its operating permit program under title V.\8\ Chapter 9 
contains the process, already approved by EPA \9\ for issuance of a new 
or major modification of an existing source which is major for purposes 
of PSD by virtue of incorporation by reference of the provisions of 40 
CFR 52.21(b)-(r).\10\ Chapter 11 requires major sources which are 
subject to Regulation 26 to also have their permit applications 
processed in accordance with the procedures contained in Regulation 26, 
which are incorporated by reference. Thus, Chapter 11 creates the nexus 
between the PSD and title V programs to allow Arkansas to issue one 
permit to its sources which are defined as major under both programs.
---------------------------------------------------------------------------

    \8\ This refers to the provisions of title V (Permits) of the 
Act (42 U.S.C. 7661, 7661a-7661f) and the implementing regulations 
under 40 CFR part 70 (State Operating Permit Programs). These 
provisions establish the elements that an operating permits program 
must meet under part 70. Arkansas' Regulation 26 contains the 
requirements of their operating permits program. Arkansas currently 
operates its title V program under an interim approval. See 60 FR 
46171 (September 8, 1995). Arkansas is currently working with EPA to 
revise Regulation 26 to correct the deficiencies identified in the 
interim approval.
    \9\ See section XII in this preamble for a description of our 
approval of Arkansas' PSD program and of our evaluation of Chapter 
9.
    \10\ Chapter 9, Section 19.904(A) incorporates the provisions of 
40 CFR 52.21 (b) through (r).
---------------------------------------------------------------------------

    For minor sources, the permitting process is contained in Chapter 4 
which complies with 40 CFR 51.160--51.164 as explained above. The 
process for issuance of major and minor construction permits was 
formerly in section 4 of the ROP. Chapters 4 and 9 of Regulation 19 do 
not, however, fully cover all PSD sources defined as major sources 
under section 302(j) of the Act and subject to Section 4 of the ROP. 
Chapter 11 is necessary to provide a process for permitting the 
following:
     Sources which are major for purposes of PSD but undergo a 
physical change or change in the method of operation which does not 
result in a significant net emission increase, i.e., minor 
modifications. Such change therefore is not subject to PSD review.\11\

[[Page 26800]]

Subpart I, however, applies to the construction of all sources, 
including major and minor sources. Such change, therefore, must meet 
the applicable requirements of subpart I, sections 51.160-51.164. 
Regulation 26 contains the provisions which satisfy these provisions of 
subpart I.\12\ These provisions are incorporated into Regulation 19 by 
Chapter 11.
---------------------------------------------------------------------------

    \11\ For purposes of PSD, 40 CFR 52.21(i)(1) provides that no 
stationary source or modification to which the paragraphs (j)--(r) 
apply shall begin actual construction without a permit which states 
that the source or modification meets such requirements. The 
provisions of section 52.21(j)-(r) apply to the construction of 
major sources and major modifications. ``Major stationary source'' 
is defined in section 52.21(b)(1) and ``major modification'' is 
defined in section 52.21(b)(2). A major modification is a physical 
change or change in the method of operation at a major stationary 
source which results in a significant net emissions increase. ``Net 
emissions increase'' is defined in section 52.21(b)(3) which 
describes how the net emissions increase is determined. Such 
increase is significant if it equals or exceeds the significance 
thresholds in section 52.21(b)(23). Thus minor modifications at 
major stationary sources do not fall within the purview of the PSD 
requirements.
    \12\ According to Regulation 26, Section 26.2(e), ``applicable 
requirement'' is defined as ``Any standard or other requirements 
provided for in the applicable implementation plan approved or 
promulgated by the EPA through rulemaking under title I of the Act* 
* *''(PSD inter alia) (this includes Regulation 19 Chapter 3 which 
requires protection of the NAAQS).
---------------------------------------------------------------------------

     A source which is major for title V but not major for PSD. 
This would include a source whose potential to emit is 100 tons per 
year (TPY) or more but less than 250 TPY and is not one of the source 
types listed in 40 CFR 52.21(b)(1).\13\ Although a new or modified 
source which is not a PSD major source is not subject to PSD, the 
applicable requirements of subpart I, sections 51.160-51.164 
nonetheless continue to apply as explained above. Regulation 26 
contains the provisions which satisfy these provisions of subpart 
I.\14\ These provisions are incorporated into Regulation 19 by Chapter 
11.
---------------------------------------------------------------------------

    \13\ Section 52.21(b)(1) is the definition of ``major stationary 
source.'' Under this definition, a source is major for PSD if its 
PTE is 100 TPY or more and the source belongs to one of the source 
categories listed in section 52.21(b)(1)(i)(a). Otherwise, a source 
is a PSD major only if its PTE is 250 TPY or more, pursuant to 
section 52.21(b)(1)(i)(b). Under section 302(j) of the Act and 40 
CFR part 70, a ``major source'' includes any stationary source with 
a PTE of 100 TPY or more.
    \14\ See footnote 12.
---------------------------------------------------------------------------

    Chapter 11 incorporates the applicable requirements of subpart I 
(sections 51.160-164) that are in Regulation 26 into Regulation 19, 
which we are proposing to approve into the SIP. By approving Chapter 
11, we will also be approving the subpart I provisions of Regulation 26 
which are incorporated by reference.
    Through Chapter 11, Arkansas will ensure that the construction and 
modification of sources subject to the Act's preconstruction review 
requirements will meet the applicable requirements of 40 CFR part 51, 
subpart I. The TSD includes our analysis of the provisions of 
Regulation 26 which ADEQ incorporates by reference into Regulation 19. 
The TSD documents how Regulation 26 meets the requirements of 40 CFR 
part 51, subpart I. It further demonstrates that the procedures in 
Regulation 26 will ensure that modifications which occur at title V 
sources will satisfy the requirements of the Act and subpart I. Table 4 
below identifies the provisions of Regulation 26 which meet the 
requirements of subpart I. The TSD contains a detailed evaluation of 
how the subpart I requirements are met.

 Table 4.--Subpart I Checklist--Review of New Sources and Modifications
          Review Regulations for Arkansas Regulation 26 Sources
------------------------------------------------------------------------
 Requirement of 40 CFR part 51, subpart  Provisions of Regulation 19 and
                   I                         26 which meet subpart I
------------------------------------------------------------------------
Section 51.160  Legally enforceable      Section 26.3(a)-(b).
 procedures.
                                         Section 26.4(a)-(b), (h), (j)-
                                          (k).
                                         Section 26.5(a)(1), (3)-(4),
                                          and (b).
                                         Section 19.302(A)-(B).
                                         Section 19.303(A)-(C).
                                         Section 19.502(A)-(C).
Section 51.161  Public availability of   Section 26.6(a), (b)(1)(i)-
 information.                             (ii), (v), (b)(4), (c)(1)-(2),
                                          (d)(1)-(2).
Section 51.162  Identification of        N/A (already in approved plan).
 responsible agency..
Section 51.163  Administrative           Section 26.3(a)-(b).
 procedures.
                                         Section 26.4(a)-(b), (h), (j)-
                                          (k).
                                         Section 26.5(a)(1), (3)-(4),
                                          and (b).
                                         Section 19.302(A)-(B).
                                         Section 19.303(A)-(C).
                                         Section 19.502(A)-(C).
                                         Section 26.6(a), (b)(1)(i)-
                                          (ii), (v), (b)(4), (c)(1)-(2),
                                          (d)(1)-(2).
Section 51.164  Stack height procedures  Section 19.504.
Section 51.165  Permit Requirements.     N/A.
 (nonattainment).
Section 51.166  Permit Requirements      Regulation 19, Chapter 9.
 (PSD).
------------------------------------------------------------------------

    Consistent with the above table, the ADEQ on March 21, 2000, 
forwarded a supplementary request that we incorporate only the 
provisions of Regulation 26 identified in Table 5 below into the SIP 
which in satisfaction of subpart I requirements. Accordingly we propose 
to incorporate the following provisions of Regulation 26 as shown in 
Table 5 below.

 Table 5.--Provisions of Regulation 26 Proposed To Be Incorporated Into
                                 the SIP
------------------------------------------------------------------------
    Provision of Regulation 26 to be
       incorporated into the SIP                 Title of section
------------------------------------------------------------------------
Section 26.3...........................  Requirements for a Permit,
                                          Applicability.
Section 26.3(a)........................  Requirement for a permit.
Section 26.3(b)........................  Sources subject to permitting.
Section 26.4...........................  Applications for Permits.
Section 26.4(a)........................  Duty to apply.
Section 26.4(b)........................  Standard application form and
                                          required information.

[[Page 26801]]

 
Section 26.4(h)........................  Complete application.
Section 26.4(j)........................  Applicant's duty to supplement
                                          application.
Section 26.4(k)........................  Certification by responsible
                                          official.
Section 26.5...........................  Action on Application.
Section 26.5(a)(1), (3)-(4)............  Action on part 70 applications.
Section 26.5(b)........................  Final action on permit
                                          application.
Section 26.6...........................  Permit Review by the Public,
                                          Affected States, and EPA.
Section 26.6(a)........................  Untitled.
Section 26.6(b)(1)(i)-(ii), (v), (b)(4)  Public participation.
Section 26.6(c)(1)-(2).................  Transmission of permit
                                          information to the
                                          Administrator.
Section 26.6(d)(1)-(2).................  Review of draft permit by
                                          affected states
------------------------------------------------------------------------

    Our analysis of these provisions of Regulation 26 \15\ are from the 
version of Regulation 26 which Arkansas adopted July 23, 1993, and 
submitted to us on October 29, 1993. The EPA approved this version of 
Regulation 26 as described in footnote 8. We will need to reexamine our 
analysis if Arkansas adopts Regulation 26 with significant changes and 
Arkansas may need to make further revisions to its SIP.
---------------------------------------------------------------------------

    \15\ Regulation 26 is Arkansas' regulation for its operating 
permit program under title V . Arkansas currently operates its title 
V program under an interim approval. See 60 FR 46171 (September 8, 
1995).
---------------------------------------------------------------------------

B. Is Chapter 11 Approvable?

    Consistent with the discussion above and in the TSD, Chapter 11 
meets the requirements of 40 CFR part 51, subpart I and are approvable.

XV. Insignificant Activities List--Appendix A

Are There Any Activities That Do Not Need a Permit or Permit Revision?

    Section 19.408(A) of Regulation 19 provides that the types of 
activities or emissions that are listed in Appendix A are deemed 
insignificant on the basis of size, emission rate, production rate, or 
activity. By such listing, the Department exempts certain sources or 
types of sources from the requirements to obtain a permit or plan under 
this regulation. Listing in this part has no effect on any other law to 
which the activity may be subject. Any activity for which a state or 
Federal applicable requirement applies (such as NSPS , NESHAP, or 
Maximum Achievable Control Technology) is not insignificant, even if 
this activity meets the criteria below.
    The TSD contains a detailed analysis of Section 19.408 and of 
Appendix A and a discussion of how these provisions meet subpart I.

B. Is Appendix A Approvable?

    Consistent with our evaluation of Section 19.408 and of Appendix in 
the TSD, these provisions of Regulation 19 are approvable.

XVI. Proposed Action

    We are proposing to approve the provisions of Regulation 19 as 
described in Table 6 below:

 Table 6.--Chapters and Appendices in Regulation 19 That EPA Proposes to
                                 Approve
------------------------------------------------------------------------
                Chapter                               Title
------------------------------------------------------------------------
Chapter 1..............................  Title, Intent, and Purpose.
Chapter 2..............................  Definitions.
Chapter 3..............................  Protection of the National
                                          Ambient Air Quality Standards.
Chapter 4..............................  Minor Source Review.
Chapter 5..............................  General Emission Limitations
                                          Applicable to Equipment.
Chapter 6..............................  Upset and Emergency Conditions.
Chapter 7..............................  Sampling, Monitoring, and
                                          reporting Requirements.
Chapter 9..............................  Prevention of Significant
                                          Deterioration.
Chapter 10.............................  Regulations for the Control of
                                          Volatile Organic Compounds.
Chapter 11.............................  Major Source permitting
                                          Procedures.
Appendix A.............................  Insignificant Activities List.
------------------------------------------------------------------------

    We are taking no action on Chapter 8--Designated Facilities in 
today's proposal. As discussed in section XI, we review and approve the 
State Plans for designated facilities under subpart B of 40 CFR part 
60. We will review and process Chapter 8 of Regulation 19 in a separate 
action.

XVII. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from Executive Order 12866, entitled ``Regulatory 
Planning and Review.''

B. Executive Order 13132

    Executive 13132, entitled ``Federalism'' (64 FR 43255, August 10, 
1999) revokes and replaces Executive Order 12612, ``Federalism,'' and 
Executive Order 12875, ``Enhancing the Intergovernmental Partnership.'' 
Executive Order 13132 requires EPA to develop an accountable process to 
ensure ``meaningful and timely input by State and local officials in 
the development of regulatory policies that have federalism 
implications.'' ``Policies that have federalism implications'' is 
defined in the Executive Order to include regulations that have 
``substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.'' Under 
Executive Order 13132, EPA may not issue a regulation that has 
federalism implications, that imposes substantial direct compliance 
costs, and that is not required by statute, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by State and local governments, or EPA consults with 
State and local officials early in the process of developing the 
proposed regulation. The EPA also may not issue a regulation that has 
federalism implications and that preempts State law unless the Agency 
consults with State and local officials early in the process of 
developing the proposed regulation.
    This proposed rule will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132. 
Thus, the requirements of section 6 of the Executive Order do not apply 
to this rule.

[[Page 26802]]

C. Executive Order 13045

    Executive Order 13045, entitled ``Protection of Children from 
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23, 
1997), applies to any rule that: (1) is determined to be ``economically 
significant'' as defined under Executive Order 12866, and (2) concerns 
an environmental health or safety risk that EPA has reason to believe 
may have a disproportionate effect on children. If the regulatory 
action meets both criteria, the Agency must evaluate the environmental 
health or safety effects of the planned rule on children, and explain 
why the planned regulation is preferable to other potentially effective 
and reasonably feasible alternatives considered by the Agency.
    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Order has the 
potential to influence the regulation. This proposed rule is not 
subject to Executive Order 13045 because it approves a State program.

D. Executive Order 13084

    Under Executive Order 13084, EPA may not issue a regulation that is 
not required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, Executive Order 13084 
requires EPA to provide to the OMB, in a separately identified section 
of the preamble to the rule, a description of the extent of EPA's prior 
consultation with representatives of affected tribal governments, a 
summary of the nature of their concerns, and a statement supporting the 
need to issue the regulation. In addition, Executive Order 13084 
requires EPA to develop an effective process permitting elected 
officials and other representatives of Indian tribal governments ``to 
provide meaningful and timely input in the development of regulatory 
policies on matters that significantly or uniquely affect their 
communities.''
    Today's rule does not significantly or uniquely affect the 
communities of Indian tribal governments. This action does not involve 
or impose any requirements that affect Indian tribes. Accordingly, the 
requirements of section 3(b) of Executive Order 13084 do not apply to 
this rule.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 600 et seq., generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. Small entities 
include small businesses, small not-for-profit enterprises, and small 
governmental jurisdictions. This proposed rule will not have a 
significant impact on a substantial number of small entities because 
SIP approvals under section 110 and subchapter I, part D of the Act do 
not create any new requirements but simply approve requirements that 
the State is already imposing. Therefore, because the Federal SIP 
approval does not create any new requirements, I certify that this 
action will not have a significant economic impact on a substantial 
number of small entities. Moreover, due to the nature of the Federal-
State relationship under the Act, preparation of a flexibility analysis 
would constitute Federal inquiry into the economic reasonableness of 
state action. The Act forbids EPA to base its actions concerning SIPs 
on such grounds. See Union Electric Co., v. U.S. EPA, 427 U.S. 246, 
255-66 (1976); 42 U.S.C. 7410(a)(2).

F. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995, 
signed into law on March 22, 1995, EPA must prepare a budgetary impact 
statement to accompany any proposed or final rule that includes a 
Federal mandate that may result in estimated annual costs to State, 
local, or tribal governments in the aggregate; or to private sector, of 
$100 million or more. Under section 205, EPA must select the most cost-
effective and least burdensome alternative that achieves the objectives 
of the rule and is consistent with statutory requirements. Section 203 
requires EPA to establish a plan for informing and advising any small 
governments that may be significantly or uniquely impacted by the rule.
    The EPA has determined that the approval action promulgated does 
not include a Federal mandate that may result in estimated annual costs 
of $100 million or more to either State, local, or tribal governments 
in the aggregate, or to the private sector. This Federal action 
approves pre-existing requirements under State or local law, and 
imposes no new requirements. Accordingly, no additional costs to State, 
local, or tribal governments, or to the private sector, result from 
this action.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Incorporation by reference, Lead, Nitrogen oxides, Ozone, 
Particulate matter, Sulfur oxides, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: April 28, 2000.
Carl E. Edlund,
Acting Regional Administrator, Region 6
[FR Doc. 00-11566 Filed 5-8-00; 8:45 am]
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