[Federal Register Volume 69, Number 78 (Thursday, April 22, 2004)]
[Rules and Regulations]
[Pages 21737-21754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9042]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 63 and 262

[OA-2004-0001; FRL-7650-6]
RIN 2090-AA13


National Environmental Performance Track Program

AGENCY: Environmental Protection Agency (EPA)

ACTION: Final rule.

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SUMMARY: EPA is issuing regulations applicable only to members of EPA's 
National Environmental Performance Track Program (Performance Track, or 
the Program). Today's action includes a revision to the Resource 
Conservation and Recovery Act (RCRA) regulations to allow hazardous 
waste generators who are members of Performance Track up to 180 days, 
and in certain cases 270 days, to accumulate their hazardous waste 
without a RCRA permit or interim status; and simplified reporting 
requirements for facilities that are members of Performance Track and 
governed by Maximum Available Control Technology (MACT) provisions of 
the Clean Air Act (CAA). Today's final rule reflects EPA's response to 
comments filed by the public, interested stakeholders and associations, 
the Performance Track Participants Association, and Performance Track 
members. These provisions are intended to serve as incentives for 
facility membership in the National Environmental Performance Track 
Program while ensuring the current level of environmental protection 
provided by the relevant RCRA and MACT provisions.

DATES: This final rule is effective on April 22, 2004.

[[Page 21738]]


ADDRESSES: EPA has established a docket for this action under Docket ID 
No. OA-2004-0001. All documents in the docket are listed in the EDOCKET 
index at http://www.epa.gov/edocket. Although listed in the index, some 
information is not publicly available, i.e., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically in EDOCKET or in hard 
copy at the Office of Environmental Information Docket, EPA/DC, EPA 
West, Room B102, 1301 Constitution Ave., NW., Washington, DC. The 
Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744, and the telephone number for the Office 
of Environmental Information Docket is (202) 566-1752. In addition to 
being available in the docket, an electronic copy of this final rule 
will also be available on the Worldwide Web through the National 
Environmental Performance Track (Performance Track) Web site at http://www.epa.gov/performancetrack.

FOR FURTHER INFORMATION CONTACT: Mr. Robert D. Sachs, Performance 
Incentives Division, Office of Business and Community Innovation, 
Office of Policy, Economics and Innovation, Office of Administrator, 
Mail Code 1808T, United States Environmental Protection Agency, 1200 
Pennsylvania Avenue, Washington, DC 20460; telephone number 202-566-
2884; fax number 202-566-0966; e-mail address: [email protected], or 
Mr. Chad Carbone, Performance Incentives Division, Office of Business 
and Community Innovation, Office of Policy, Economics and Innovation, 
Office of Administrator, Mail Code 1808T, United States Environmental 
Protection Agency, 1200 Pennsylvania Avenue, Washington, DC 20460; 
telephone number 202-566-2178; fax number 202-566-0292; e-mail address: 
[email protected].

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does This Action Apply to Me?

    Categories and entities potentially regulated by this action 
include all entities regulated by EPA, pursuant to its authority under 
the various environmental statutes, who voluntarily decide to join the 
Performance Track Program. Thus, potential respondents may fall under 
any North American Industry Classification System (NAICS) Code. The 
following table lists the Primary NAICS Codes for all current 
Performance Track members.
    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 facility is eligible to be regulated by this action, you should 
carefully examine the qualifying criteria for the Performance Track 
Program at www.epa.gov/performancetrack. 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.

 Primary North American Industry Classification System (NAICS) Codes of
                    Current Performance Track Members
------------------------------------------------------------------------
                Industry group                      SIC         NAICS
------------------------------------------------------------------------
Surgical Appliance and Supplies Manufacturing.  ...........       339113
Laboratory Apparatus and Furniture              ...........       339111
 Manufacturing................................
Pharmaceutical Preparation Manufacturing......  ...........       325412
All Other Miscellaneous Chemical Product and    ...........       325998
 Preparation Manufacturing....................
Fossil Fuel Electric Power Generation.........  ...........       221112
Dry Cleaning and Laundry Services (except Coin- ...........       812320
 Operated)....................................
Heating Oil Dealers...........................  ...........       454311
Paper (except Newsprint) Mills................  ...........       322121
Radio and Television Broadcasting and Wireless  ...........       334220
 Communications Equipment Manufacturing.......
Surgical and Appliance and Supplies             ...........       339113
 Manufacturing................................
Research and Development in the Physical,       ...........       541710
 Engineering, and Life Sciences...............
Plastics Material and Resin Manufacturing.....  ...........       325211
Wood Preservation.............................  ...........       321114
All Other Basic Organic Chemical Manufacturing  ...........       325199
Ball and Roller Bearing Manufacturing.........  ...........       332991
Tire Manufacturing (except Retreading)........  ...........       326211
Semiconductor and Related Device Manufacturing  ...........       334413
All Other Motor Vehicle Parts Manufacturing...  ...........       336399
Fruit and Vegetable Canning...................  ...........       311421
Paperboard Mills..............................  ...........       322130
Commercial Screen Printing....................  ...........       323113
Unlaminated Plastics Film and Sheet (except     ...........       326113
 Packaging) Manufacturing.....................
Electronic Computer Manufacturing.............  ...........       334111
Other Motor Vehicle Electrical and Electronic   ...........       336322
 Equipment Manufacturing......................
Surgical and Medical Instrument Manufacturing.  ...........       339112
Ophthalmic Goods Manufacturing................  ...........       339115
All Other Miscellaneous Manufacturing.........  ...........       339999
Hydroelectric Power Generation................  ...........       221111
Electric Bulk Power Transmission and Control..  ...........       221121
Electric Power Distribution...................  ...........       221122
Medicinal and Botanical Manufacturing.........  ...........       325411
All Other Miscellaneous Nonmetallic Mineral     ...........       327999
 Product Manufacturing........................
Printed Circuit Assembly (Electronic Assembly)  ...........       334418
 Manufacturing................................
Motor Vehicle Body Manufacturing..............  ...........       336211
Dry, Condensed, and Evaporated Dairy Product    ...........       311514
 Manufacturing................................

[[Page 21739]]

 
Carpet and Rug Mills..........................  ...........       314110
Cut Stock, Re-sawing Lumber, and Planing......  ...........       321912
All Other Basic Inorganic Chemical              ...........       325188
 Manufacturing................................
Soap and Other Detergent Manufacturing........  ...........       325611
Custom Compounding of Purchased Resins........  ...........       325991
All Other Plastics Product Manufacturing......  ...........       326199
Concrete Block and Brick Manufacturing........  ...........       327331
Iron and Steel Mills..........................  ...........       331111
Aluminum Die-Casting Foundries................  ...........       331521
Metal Coating, Engraving (except Jewelry and    ...........       332812
 Silverware), and Allied Services to
 Manufacturers................................
Farm Machinery and Equipment Manufacturing....  ...........       333111
Office Machinery Manufacturing................  ...........       333313
Pump and Pumping Equipment Manufacturing......  ...........       333911
Electron Tube Manufacturing...................  ...........       334411
Search, Detection, Navigation, Guidance,        ...........       334511
 Aeronautical, and Nautical System and
 Instrument Manufacturing.....................
Instrument Manufacturing for Measuring and      ...........       334515
 Testing Electricity and Electrical Signals...
Prerecorded Compact Disc (except Software),     ...........       334612
 Tape, and Record Reproducing.................
Magnetic and Optical Recording Media            ...........       334613
 Manufacturing................................
Motor and Generator Manufacturing.............  ...........       335312
Motor Vehicle Transmission and Power Train      ...........       336350
 Parts Manufacturing..........................
Aircraft Manufacturing........................  ...........       336411
Guided Missile and Space Vehicle Manufacturing  ...........       336414
Sporting and Athletic Goods Manufacturing.....  ...........       339920
Solid Waste Combustors and Incinerators.......  ...........       562213
National Security.............................  ...........       928110
Potash, Soda, and Borate Mineral Mining.......  ...........       212391
Malt Manufacturing............................  ...........       311213
Cigarette Manufacturing.......................  ...........       312221
Canvas and Related Product Mills..............  ...........       314912
Reconstituted Wood Product Manufacturing......  ...........       321219
Wood Window and Door Manufacturing............  ...........       321911
Pulp Mills....................................  ...........       322110
Nonfolding Sanitary Food Container              ...........       322215
 Manufacturing................................
Synthetic Organic Dye and Pigment               ...........       325132
 Manufacturing................................
Synthetic Rubber Manufacturing................  ...........       325212
Noncellulosic Organic Fiber Manufacturing.....  ...........       325222
In-Vitro Diagnostic Substance Manufacturing...  ...........       325413
Adhesive Manufacturing........................  ...........       325520
Polish and Other Sanitation Good Manufacturing  ...........       325612
Surface Active Agent Manufacturing............  ...........       325613
Printing Ink Manufacturing....................  ...........       325910
Rubber Product Manufacturing for Mechanical     ...........       326291
 Use..........................................
All Other Rubber Product Manufacturing........  ...........       326299
Plate Work Manufacturing......................  ...........       332313
Metal Can Manufacturing.......................  ...........       332431
Other Ordnance and Accessories Manufacturing..  ...........       332995
Printing Machinery and Equipment Manufacturing  ...........       333293
Food Product Machinery Manufacturing..........  ...........       333294
Optical Instrument and Lens Manufacturing.....  ...........       333314
Photographic and Photocopying Equipment         ...........       333315
 Manufacturing................................
Turbine and Turbine Generator Set Units         ...........       333611
 Manufacturing................................
Bare Printed Circuit Board Manufacturing......  ...........       334412
Electronic Capacitor Manufacturing............  ...........       334414
Automatic Environmental Control Manufacturing   ...........       334512
 for Residential, Commercial, and Appliance
 Use..........................................
Instruments and Related Products Manufacturing  ...........       334513
 for Measuring, Displaying, and Controlling
 Industrial Process Variables.................
Other Communication and Energy Wire             ...........       335929
 Manufacturing................................
Current-Carrying Wiring Device Manufacturing..  ...........       335931
Automobile Manufacturing......................  ...........       336111
Truck Trailer Manufacturing...................  ...........       336212
Gasoline Engine and Engine Parts Manufacturing  ...........       336312
Motor Vehicle Air Conditioning Manufacturing..  ...........       336391
Dental Equipment and Supplies Manufacturing...  ...........       339114
Musical Instrument Manufacturing..............  ...........       339992
Other Nonhazardous Waste Treatment and          ...........       562219
 Disposal.....................................
Industrial Launderers.........................  ...........       812332
Regulation and Administration of                ...........       926120
 Transportation Programs......................
Space Research and Technology.................  ...........       927110
------------------------------------------------------------------------


[[Page 21740]]

    Entities potentially affected by this final action also include 
state, local, and Tribal governments that have been authorized to 
implement these regulations.
    Outline. The information presented in this preamble is organized as 
follows.
I. General Information
    A. Does this action apply to me?
II. Overview
    A. What is the history of this action?
    B. How have stakeholders been involved?
    C. What incentives for members are envisioned?
    D. What is EPA's rationale for this rule?
    1. What environmental benefits will the Performance Track 
Program bring to society?
    2. How will these incentives maximize the benefits of the 
Performance Track Program?
    3. Will these incentives undercut existing environmental 
protections?
    4. How does the Performance Track Program design limit 
membership to a uniquely appropriate set of facilities?
III. Final Rulemaking Changes
    A. Maximum Achievable Control Technology (MACT)
    1. Definition of Pollution Prevention
    2. Reduced frequency of required MACT reporting for all eligible 
Performance Track facilities
    3. Reporting reductions for Performance Track facilities that 
achieve MACT or better emission levels through pollution prevention 
methods such as process changes
    B. 180-Day accumulation time for Performance Track hazardous 
waste generators
    1. Background
    2. What are the current requirements for large quantity 
generator accumulation?
    3. What is in today's final rule?
    4. How will today's final rule affect applicability of RCRA 
rules in authorized States?
IV. Summary of Environmental, Energy and Economic Impacts
    A. What are the cost and economic impacts?
    B. What are the health, environmental, and energy impacts?
V. Effective Date for Today's Requirements
VI. Administrative Requirements
    A. Executive Order 12866, Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination with 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children from 
Environmental Health & Safety Risks
    H. Executive Order 13211: Actions that Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer Advancement Act
    J. Congressional Review Act
VII. Statutory Authority
VIII. Judicial Review

II. Overview

A. What Is the History of This Action?

    EPA announced the National Environmental Performance Track Program 
on June 26, 2000. The Program is designed to recognize and encourage 
top environmental performers--those who go beyond compliance with 
regulatory requirements to attain levels of environmental performance 
and management that provide greater benefit to people, communities, and 
the environment. The Program is based upon the experiences of EPA, 
states, businesses, and community and environmental groups with new 
approaches that achieve high levels of environmental protection with 
greater efficiency. This experience includes: EPA's Common Sense 
Initiative, designed to improve environmental results by tailoring 
strategies for six industry sectors; the national Environmental 
Leadership Program and EPA Region I's Star Track Program, designed as 
new ways to encourage businesses to do better than required; and many 
performance track-type programs in states such as Texas, Oregon, 
Wisconsin, New Jersey, and Virginia.
    EPA currently is implementing the Performance Track Program, 
formerly known as the Achievement Track Program. The Program is 
designed to recognize facilities that consistently meet their legal 
requirements, that have implemented management systems to monitor and 
improve performance, that have voluntarily achieved environmental 
improvements beyond compliance, and that publicly commit to specific 
environmental improvements and to report on their progress in doing so. 
A complete description of the Performance Track Program, its 
requirements, and other program materials are available on EPA's Web 
site (www.epa.gov/performancetrack) or by calling the Performance Track 
Information Center toll free at 1-888-339-PTRK (7875).
    Performance Track is a voluntary program. Decisions to accept and 
remove facilities are wholly discretionary to EPA, and applicants or 
potential applicants have no legal right to challenge EPA's decision. 
EPA has held seven Performance Track application periods--between 
August 2000 and October 2000; between February 2001 and April 2001; 
between August 2001 and October 2001; between February 2002 and April 
2002; between August 2002 and October 2002; between February 2003 and 
April 2003; and between August 2003 and October 2003. In the future, 
EPA plans to continue holding two application periods each year. There 
have been 508 facility applicants to Performance Track since its 
inception. A total of 409 facilities have been accepted into the 
Program as members. There are currently 344 members in the Program. 
Generally, facilities that are no longer members (65) have either 
closed, experienced a change in ownership, or have been dropped from 
membership in Performance Track for failing to continue to meet program 
standards.
    Today's final rule establishes several regulatory incentives that 
are enforceable legal requirements for facilities that are members of 
the Performance Track Program and have taken all other steps required 
for the applicability or implementation of the individual regulatory 
incentives. Full eligibility and other Program requirements can be 
found at the Performance Track Web site (www.epa.gov/performancetrack). 
The Agency believes that, because of the stringency of the Program 
criteria, facilities in Performance Track should receive the non-
regulatory and regulatory benefits outlined in the Program Description 
(and summarized below). Specifically, for acceptance in Performance 
Track, facilities must:
     Have adopted and implemented an environmental 
management system (EMS) that includes specific elements;
     Be able to demonstrate environmental 
achievements and commit to continued improvement in particular 
environmental categories;
     Engage the public and report on their 
environmental performance; and
     Have a record of sustained compliance with 
environmental requirements.
    In addition, Performance Track is designed so that EPA and other 
stakeholders can monitor and track the implementation of the benefits 
currently being offered to Program members, as well as those being 
considered. Member facilities commit to providing annual reports on the 
status of their efforts to achieve their commitments to improvements in 
specific environmental categories.
    This reporting commitment and other activities to engage the public 
result in a high level of scrutiny that will aid in monitoring the 
activities of the Performance Track Program. EPA analyzes these data 
and publishes a program report annually. This report can be found at 
www.epa.gov/performancetrack. Last, facilities are accepted into 
Performance Track for a

[[Page 21741]]

period of three years. To continue receiving the benefits associated 
with the Program, facilities must renew their membership, which 
requires developing additional, continuing commitments to environmental 
performance improvements.
    In its efforts to promote improved environmental performance 
through the National Environmental Performance Track, EPA is evaluating 
additional regulatory incentives that could be applied to qualifying 
facilities. Today's rule is one step among several in developing 
incentives that will promote participation in the Program and the 
associated environmental benefits. These incentives will include both 
those that will be implemented through rulemaking (such as the 
regulatory changes issued today) and those that may be accomplished 
through policy, guidance, or administrative action by EPA or the 
states.
    EPA proposed today's rule on August 13, 2002 (67 FR 52674), and the 
public comment period remained open until November 12, 2002. EPA 
received comments from 26 different groups. These included 10 
Government entities and States; one public sector association; three 
nongovernmental organizations; seven industry trade associations; and 
five industry representatives. The majority of comments were supportive 
and made positive suggestions to improve the Program. Responses to 
comments are included throughout this preamble where EPA describes the 
content of the rule (see Section III. A. and B.).

B. How Have Stakeholders Been Involved?

    During the development of the Performance Track Program and 
subsequent to its announcement in June 2000, EPA held many meetings 
with a wide array of stakeholders. Stakeholders included companies, 
non-governmental organizations, states, associations, and others. Over 
the course of these meetings, EPA has discussed a broad range of 
issues, including any incentives that would reward Performance Track 
members, as well as incentives that would motivate non-Performance 
Track facilities to implement environmental improvements that would 
qualify them for membership in the Program.
    This rule grew out of the stakeholders' collective interest in 
promoting incentives for participating facilities. Since the inception 
of the Program, EPA has held four meetings with state regulators: May 
2000 in Denver, February 2001 in Chicago, November 2001 in Charleston, 
and January 2003 in Denver. At each of these meetings, break-out 
sessions were held to solicit feedback from state personnel on 
potential incentives to be offered to Performance Track members.
    On December 12, 2000, EPA held a ``Charter Event'' for the first 
round of Performance Track members. At this meeting EPA held a series 
of breakout discussions. During these sessions, ideas about incentives 
that could become part of the regulatory framework were discussed.
    Similarly, on October 30, 2001 EPA met with a variety of 
stakeholders including associations, non-governmental organizations, 
and states to discuss EPA's ``Innovations Strategy.'' During this 
meeting EPA held a specific breakout session on incentives that could 
be made available for Performance Track members.
    In addition, EPA has had discussions regularly with individual 
Performance Track participants and the Performance Track Participants 
Association (PTPA), which comprises 165 members. The PTPA is a 
nonprofit organization that provides a forum for corporations, trade 
associations, and public entities dedicated to improving their 
environmental performance through the vehicle of the Performance Track 
Program. The PTPA meets regularly for member events, and convenes a 
member conference annually. The PTPA also has an Incentives Workgroup 
that focuses on identifying and advocating incentives for Performance 
Track members.
    EPA is also working with 23 trade organizations through the 
Performance Track network to further enhance participation in the 
Program. Performance Track Network Partners join in a partnership to 
educate top environmental performers about the value of participating 
in Performance Track. This partnership increases information available 
to top environmental performers and provides greater opportunities to 
them. Network Partners include the following organizations: Academy of 
Certified Hazardous Waste Managers, American Chemistry Council, 
American Furniture Manufacturers Association, American Textile 
Manufactures Institute, Associated General Contractors (AGC) of 
America, the Auditing Roundtable, Cement Kiln Recycling Coalition, 
Global Environment & Technology Foundation Public Entity EMS Resource 
(PEER) Center, Greening of Industry Network (GIN), International 
Carwash Association, National Association of Chemical Distributors, 
National Paint and Coatings Association, National Defense Industrial 
Association, National Pollution Prevention Roundtable, National Ready 
Mixed Concrete Association, National Stone, Sand and Gravel 
Association, NORA (an Association of Responsible Recyclers), North 
American Die Casting Association, Screenprinting and Graphic Imaging 
Association International, Steel Manufacturers Association (SMA), 
Synthetic Organic Chemical Manufacturers Association (SOCMA), Voluntary 
Protection Programs Participants' Association, and Wildlife Habitat 
Council.

C. What Incentives for Members Are Envisioned?

    The Performance Track Program Description at http://www.epa.gov/performancetrack/, (publication number EPA-240-F-01-002) provides a 
list of incentives the Agency originally intended to make available to 
member facilities. EPA currently offers several incentives that are 
available to members when they enter the Program (e.g., recognition, 
networking opportunities, low priority for routine inspection). EPA is 
also in the process of developing other incentives in areas of the 
Resource Conservation and Recovery Act (RCRA), the Clean Water Act 
(CWA), and the Clean Air Act (CAA). These incentives include policy, 
guidance, and regulatory approaches. In some cases, other actions also 
must be completed before a facility may take advantage of an incentive. 
For example, states are responsible for implementing parts of many 
federal environmental programs. In such cases, states may need to 
revise regulations, seek EPA approval of a revised program, re-issue 
permits, or take other actions. EPA has made funds available to 
approximately 20 states to identify where existing state laws may need 
to be revised to support the National Environmental Performance Track. 
EPA maintains ongoing contact with State regulators to keep them 
apprised of new developments, and learn about their approaches. Further 
information is available at epa.gov/performancetrack/benefits/index.htm.
    In the Program Description, EPA also committed to propose specific 
regulatory changes as incentives for membership in the Performance 
Track. The changes in today's final rule fulfill one aspect of EPA's 
follow up on this commitment.
    EPA is issuing today's regulatory changes to encourage membership 
in the Program and to acknowledge and further promote realization of 
the environmental and other benefits resulting from the actions of 
member facilities. EPA excluded incentives that would involve a 
relaxation of substantive standards of performance or

[[Page 21742]]

that would require statutory change. EPA identified incentives that 
would apply broadly to different types of facilities, that reduce the 
reporting and other operating costs of the current system, and that can 
be implemented nationally.
    EPA believes it is important to offer the kinds of incentives 
described here for several reasons. First, the achievements of these 
facilities deserve public recognition. Second, some of the reporting 
and other administrative requirements that apply to the broader 
regulated community may not be needed for Performance Track facility 
members because they have implemented appropriate environmental 
management systems, have consistently met their regulatory commitments, 
and have agreed to make information regarding their performance 
publicly available. Third, these incentives may offer the opportunity 
for member facilities to apply their resources to achieving even better 
environmental performance. And finally, the availability of these 
incentives should encourage other facilities to make environmental 
improvements that will enable them to qualify for membership.
    In this final rule, EPA is changing certain regulatory provisions 
of the CAA and RCRA. These incentives provisions are applicable 
exclusively to members of Performance Track. They include:
     Reducing the frequency of reports required under 
the CAA, and in some circumstances submitting an annual certification 
in lieu of an annual report. In this incentive, first EPA reduces the 
frequency of required MACT reporting for all eligible Performance Track 
facilities to an interval that is twice the length of the regular 
reporting period. This incentive does not apply to major air sources, 
but it does apply to area air sources if they are not required to hold 
CAA Title V permits. The second part of this air incentive provides 
Performance Track facilities with three options to submit an annual 
certification that all required monitoring and recordkeeping 
requirements have been met in lieu of the periodic report. For major 
air sources and area sources required to hold CAA Title V permits 
however, reports must still be submitted at least semi-annually in 
order to meet CAA Title V statutory requirements.
     Allowing large quantity hazardous waste 
generators who are members of the Performance Track up to 180 days (and 
270 days if the waste must be transported 200 miles or more) to 
accumulate hazardous waste without a RCRA permit or interim status, 
provided that these generators meet certain conditions. This incentive 
will result in fewer loads of hazardous waste being transported.
    EPA also proposed changes to certain Clean Water Act regulations 
(CWA) in August 2002. The incentives proposed streamlined reporting 
requirements for Publicly Owned Treatment Works (POTWs). EPA has 
decided not to adopt the changes proposed in this rulemaking. This 
decision is based primarily on public comments that such changes should 
be offered to all POTWs, not only Performance Track members. The agency 
will continue to consider this matter.
    EPA acknowledges comments received on another potential regulatory 
incentive--the opportunity for Performance Track Facilities to 
consolidate reporting under various environmental statutes into a 
single report. Comments included recommendations for a pilot program 
with a cross-section of facilities, facility sizes, and states and the 
need to ensure compliance and include performance metrics in exchange 
for any consolidated reporting incentive. EPA will continue to explore 
the potential for this incentive with EPA's Office of Environmental 
Information.
    The incentives in today's final rule are part of a broad series of 
incentives that EPA is currently developing and intends to provide for 
Performance Track members in the future. That is, EPA continues to 
seek, analyze, develop, and implement new incentives that apply only to 
its Performance Track members. As an example, on May 15, 2003, EPA 
proposed a MACT rule (68 FR 26249) that would further promote improved 
environmental performance through incentives that are only available to 
facilities participating in the Performance Track program. Also, on 
October 29 2003, EPA published a Notice of Data Availability (NODA) in 
RCRA (69 FR 61662) as part of EPA's burden reduction initiative. The 
NODA supplemented EPA's January 17, 2002 proposal entitled ``Resource 
Conservation and Recovery Act Burden Reduction Initiative'' at 67 FR 
2518. This provision proposes to decrease the frequency of facility 
self-inspections for certain types of storage units for Performance 
Track member facilities.

D. What Is EPA's Rationale for This Rule?

    EPA believes that facilities who demonstrate top environmental 
performance through membership in the Performance Track Program should 
be provided with incentives, recognition and rewards for such behavior. 
By providing regulatory incentives only available to members of 
Performance Track, EPA believes membership in the Program will increase 
over time. As membership increases, so will the number of environmental 
commitments members make, and therefore the quantity of improvements to 
the environment. Each facility member of Performance Track commits to 
quantified, measurable environmental goals that are identified as 
significant in their environmental management system. Members also 
commit to report to EPA on an annual basis with the quantified results 
of progress towards their commitments. As these goals are achieved, and 
in some cases exceeded, impacts to the environment are reduced, notably 
in some cases in areas that are not regulated by EPA or States. These 
quantified, incremental environmental improvements and required 
reporting are the core of EPA's Performance Track Program.
    It is critically important to EPA that members of Performance Track 
are truly top environmental performers. Regulatory incentives of the 
nature envisioned by EPA for Performance Track members should be 
available only to top environmental performers. To ensure that members 
of Performance Track fit this general criterion, EPA developed specific 
criteria for applicants to meet in order to be accepted. These are 
described in moderate detail below.
    Facilities must satisfy the four entry criteria to be accepted into 
the Performance Track:
    (1) Facilities must be in compliance with applicable Federal, 
State, Local, and Tribal environmental regulations.
    (2) Facilities must operate a well-designed environmental 
management system (EMS) as part of their overall management system.
    (3) Facilities must demonstrate a record of environmental 
improvements for the previous two years beyond the minimums required of 
them. Facilities also must take additional future actions and commit to 
further improvements in the succeeding three years.
    (4) Facilities must engage the public, and each year must report 
publicly on their progress toward meeting the goals that they have 
chosen, as well as summarize their compliance and the performance of 
their EMS. EPA makes the applications and annual performance reports of 
each facility member available to the public.
    These criteria are the key to generating environmental 
improvements; they were designed to work as an integrated approach. No 
single criterion, standing alone, would provide EPA with the necessary

[[Page 21743]]

assurance that the changes finalized here will lead to increased 
compliance or performance. However, the Agency believes that these 
criteria in combination ensure that facilities eligible for regulatory 
incentives are both capable of and committed to maintaining beyond-
compliance environmental performance and that any lapses will be rare 
and quickly corrected by facility management. Further, the Agency and 
the public will continue to receive information on facility compliance 
and performance. Nothing in this final rule will compromise the ability 
of the Agency to investigate and take action on suspected environmental 
violations.
    History of Sustained Compliance With Environmental Regulations: EPA 
believes that a strong compliance history is a critical factor in 
defining performance in the Performance Track. EPA, in cooperation with 
State, local, and Tribal authorities to the extent possible, reviews 
the compliance history of all applicants. Performance Track members 
must have a record of compliance with environmental laws and be in 
compliance with all applicable environmental requirements. They also 
commit to maintaining the level of compliance needed to qualify for the 
Program.
    EPA screens all applications consistent with EPA's Compliance 
Screening for EPA Partnership Programs: Policy Overview (located at 
http://www.epa.gov/performancetrack/program/guidance.pdf ). In 
evaluating an applicant's compliance record, EPA, along with its state 
partners, consults available databases and enforcement information 
sources. EPA encourages applicants to assess their own compliance 
record as they make decisions regarding participation in this program. 
Applicants can check their compliance record with EPA's Enforcement and 
Compliance History Online (ECHO) database located at (http://www.epa.gov/echo).
    Participation in the Performance Track is denied if the compliance 
screen identifies any of the following criminal or civil activity 
issues under Federal or State law:
Criminal Activity
     Corporate criminal conviction or plea for 
environmentally-related violations of criminal laws involving the 
corporation or a corporate officer within the past 5 years.
     Criminal conviction or plea of employee at the 
same facility for environmentally-related violations of criminal laws 
within the past 5 years.
     Ongoing criminal investigation/prosecution of 
corporation, corporate officer, or employee at the same facility for 
violations of environmental law.
Civil Activity
     Three or more significant violations at the 
facility in the past 3 years.
     Unresolved, unaddressed Significant Non-
Compliance (SNC) or Significant Violations (SV) at the facility.
     Planned but not yet filed judicial or 
administrative action at the facility.
     Ongoing EPA- or state-initiated litigation at 
the facility.
     Situation where a facility is not in compliance 
with the schedule and terms of an order or decree.
    Environmental Management Systems: To satisfy the second program 
criterion, a Performance Track member facility must have a mature 
environmental management system. These systems integrate environmental 
considerations into routine decision-making at facilities, establish 
work practices that consistently reduce environmental risks and 
releases, evaluate environmental performance, and set management 
priorities based on the environmental impacts of individual facilities. 
Because they organize and consolidate information on a facility's 
environmental obligations and potential weaknesses for management, an 
EMS often improves the facility's compliance record and reduces 
accidents. However, many EMS frameworks address unregulated 
environmental impacts as well as regulated impacts. Thus, an EMS 
provides a facility with the ability to assess and mitigate impacts 
that are most significant for the facility or that pose the most risk 
to the ecosystem and community surrounding the facility. An EMS allows 
a facility to take additional environmental mitigation actions that are 
highly effective and appropriate, providing better environmental 
results as well as more flexibility than the existing regulatory 
structure alone.
    The EMS provisions in Performance Track are designed to ensure that 
member facilities will continue not only to meet their regulatory 
obligations, but also to perform better than required by regulation. 
The Performance Track criterion specifies that a qualifying facility 
must have an EMS that includes detailed elements in the following 
categories: Environmental policy (including compliance with both legal 
requirements and voluntary commitments), planning, implementation and 
operation, checking and corrective action, and management review. 
Additionally, qualifying EMSs must have been in full operation for at 
least one review cycle (generally one year) and must have been audited. 
The EMS requirements are described in more detail in EPA's National 
Environmental Performance Track Program description at www.epa.gov/
PerformanceTrack.
    Past and future environmental improvements: Facilities must 
demonstrate their commitment to continuous environmental improvement. 
To do this, facilities must identify accomplishments in specific 
categories. The categories are: energy use, water use, materials use, 
air emissions (including greenhouse gases), waste, discharges to water, 
accidental releases, habitat preservation/restoration, and product 
performance. Past improvements must have been beyond regulatory 
requirements. In addition, Performance Track facilities must make use 
of their EMSs to set and commit to achieving environmental performance 
goals that go beyond regulatory requirements and that mitigate some 
facility-selected significant environmental impacts. These performance 
goals must be chosen among the specific categories identified above, 
including both regulated and unregulated environmental impacts.
    Because these performance goals and accomplishments go beyond 
regulatory requirements and, in some cases, well beyond areas covered 
by existing environmental regulations, EPA believes that facilities 
that qualify for Performance Track have demonstrated a serious 
commitment to real environmental improvement. By virtue of their 
willingness to undertake greater environmental responsibilities, these 
facilities have earned the confidence that they will maintain 
compliance with regulatory requirements under the streamlined 
procedures outlined in this final rule.
    Public commitments: To satisfy the fourth Program criterion, 
Performance Track facilities publicly disclose progress toward their 
commitments and other performance information each year in an annual 
progress report, including summary information regarding their EMS and 
compliance with legal requirements. Because these commitments and the 
performance reporting go beyond those required by current regulation, 
communities have access to more information about the performance of 
local facilities. This public scrutiny also provides an incentive for 
firms to make meaningful commitments and achieve them.
    EPA believes that facilities that make the choice to apply and to 
demonstrate their commitments to environmental

[[Page 21744]]

improvements in the public spotlight impose upon themselves a unique 
and particularly strong set of pressures to deliver this heightened 
level of performance.
    In time, EPA expects the Performance Track Program to produce 
additional environmental gains as a result of the more efficient use of 
the resources of federal, state, and local environmental authorities. 
Because EPA expects the entry criteria to result in member facilities 
that are carrying out their environmental obligations in a manner 
beyond what is required of them, EPA believes that other authorities 
will be able to shift enforcement and compliance resources to other 
facilities in the regulated community. EPA believes this resource 
reallocation may bring further environmental improvements, as limited 
compliance resources are applied more effectively.
    The regulatory changes EPA is issuing today will enable eligible 
Performance Track members to reduce their reporting or other compliance 
costs.
1. What Environmental Benefits Will the Performance Track Program Bring 
to Society?
    Over the past three years the Performance Track program has already 
produced substantial environmental benefits beyond its member 
facilities' legal requirements. Some of these environmental benefits 
include reducing: energy use by 1.1 million mmBtus, water use by 475 
million gallons, hazardous materials use by 908 tons, emissions of 
volatile organic compounds by 329 tons, emissions of air toxics by 57 
tons, emissions of nitrogen oxides by 152 tons, discharges to water of 
biochemical oxygen demand, chemical oxygen demand, and total suspended 
solids by 1,327 tons, toxic discharges to water by 5,543 tons, solid 
waste by 150,000 tons, and hazardous waste by 692 tons. Member 
facilities in the Program have also increased their use of reused and 
recycled materials by 10,823 tons and have preserved or restored 2,698 
acres of wildlife habitat. In addition to these benefits, which should 
continue to increase, with additional membership into the Program, EPA 
believes that the refocusing of resources made possible by the Program 
may lead to additional environmental benefits as well as increased 
compliance by non-member facilities. The public recognition and 
administrative burden relief offered by Performance Track, to the 
extent that they affect company's bottom lines, may also influence 
company decisions to undertake additional non-regulatory projects that 
go beyond regulatory requirements. The public will be able to judge the 
nature and magnitude of these environmental benefits by examining the 
annual reports that Performance Track facilities are required to 
prepare and make public.
2. How Will These Incentives Maximize the Benefits of the Performance 
Track Program?
    Incentives play a crucial role in maximizing the environmental 
benefits of any voluntary program. Facilities must perceive a benefit 
to themselves that is at least equal to their perceived costs of 
membership in a voluntary program. These costs include the 
administrative burden of membership, as well as any costs incurred in 
meeting the substantive requirements of the Program. Facility members 
of the Performance Track Program also face the additional risk of 
adverse public reaction if they fail to meet their environmental goals 
or if their audits of compliance or EMS performance reveal problems. 
These public risks are unique to Performance Track facilities. 
Facilities participating in other EPA voluntary programs, as well as 
facilities that do not participate in any voluntary program, may and do 
keep audit information confidential. Improved public information about 
the environmental performance of facilities is an important component 
and public benefit of the Performance Track Program and it 
significantly raises the costs perceived by facility managers for 
internal oversights or lapses.
    As more benefits to facility members in the Performance Track 
Program become available and increase, more facilities will be 
encouraged to apply. Increased program incentives may also generate 
environmental benefits from non-members. If facilities that do not 
currently meet the Performance Track Program criteria believe that 
membership would benefit them, they may work to improve their 
management systems and environmental performance to become eligible.
3. Will These Incentives Undercut Existing Environmental Protections?
    The incentives in today's rule do not undercut existing 
environmental protections. EPA believes the 180-day accumulation period 
for hazardous waste and the reporting changes for MACT standards will 
have no direct deleterious effects on the environmental performance of 
Performance Track facilities. EPA and other regulatory bodies will 
receive compliance information from Performance Track facilities less 
frequently; however, all recordkeeping requirements remain in effect. 
As a safeguard, EPA and the other governmental authorities retain their 
ability to take enforcement actions against any facility that fails to 
comply with permits or other obligations. The risk of a public removal 
from this Program for failure to comply adds an extra incentive to 
comply with Program requirements. EPA believes that this, and the fact 
that facilities may be perceived by the public and by governmental 
offices as better environmental performers than their competitors, 
reduces the risk that any environmental damages will result from this 
program or the regulatory changes EPA is adopting.
4. How Does the Performance Track Program Design Limit Membership to a 
Uniquely Appropriate Set of Facilities?
    EPA designed the Performance Track Program to generate improvements 
in environmental performance of facilities. EPA believes that the entry 
criteria and ongoing obligations for continued membership in 
Performance Track (as summarized in the introduction to section D) will 
bring about benefits to the environment such as decreased releases of 
pollutants to the air, water, and land; greater efficiency in energy 
and raw material usage; and decreased risks of accidental releases of 
hazardous substances. These incremental environmental benefits will 
stem from the facilities' activities that are tied to their membership 
in Performance Track, which justifies making available to this category 
of facilities the benefits of the modified requirements issued today.
    Further, EPA believes that there are controls and safeguards built 
into the Performance Track Program that reduce the possibility a 
facility will receive the benefits of today's modified requirements 
without the facility delivering improved environmental performance.
    EPA's announcement of this Program (www.epa.gov/PerformanceTrack) 
describes how applications are reviewed and facilities that meet the 
entry criteria are selected. It also summarizes other steps EPA takes 
in running the Program, including conducting site visits at up to 20 
percent of the member facilities each year, and the removal of 
facilities found not to be meeting the commitments they have made. EPA 
believes this approach is capable of identifying the set of facilities 
that belong in the Program and differentiating them from tens of 
thousands of other facilities in the United States. EPA also believes 
that the combination of the administrative controls of the Performance 
Track Program and the public reporting voluntarily accepted by program

[[Page 21745]]

members will, as a rule, be effective in limiting membership to only 
such facilities that deliver improved environmental performance.

III. Final Rulemaking Changes

A. Maximum Achievable Control Technology (MACT)

1. Definition of Pollution Prevention
    As part of the MACT provision in today's rule, EPA is defining the 
term ``Pollution Prevention.'' The Pollution Prevention Act (42 U.S.C. 
13102) defines ``source reduction.'' EPA equates Pollution Prevention 
with source reduction. In today's rule, the statutory definition of 
source reduction is adopted as the definition of Pollution Prevention. 
Thus, EPA defines Pollution Prevention to mean source reduction.
    In its August 13, 2002 proposal (67 FR 52674), EPA included a 
definition of Pollution Prevention (P2). The proposed regulatory 
definition was taken from EPA's guidance from May 1992, and later 
elaborated upon by then Administrator Carol Browner in ``P2 Policy 
Statement: New Directions for Environmental Protection'' issued on June 
14, 1993 (found at http://www.epa.gov/p2/p2policy/definitions.htm). 
EPA's Policy Statement definition of P2 is not identical to the 
statutory definition of P2. The Policy Statement of P2 adds a few 
clauses to the statutory definition of P2, and removes another.
    Consistent with EPA's Policy Statement definition of P2, the 2002 
proposal did not include the following clause from the statutory 
definition: ``The term `source reduction' does not include any practice 
which alters the physical, chemical, or biological characteristics or 
the volume of a hazardous substance, pollutant, or contaminant through 
a process or activity which itself is not integral to and necessary for 
the production of a product or the providing of a service.'' Although 
this clause from the statute was not included in the 2002 proposal, it 
was still applicable since EPA cited the statute.
    In addition, the language in the 2002 proposal included an 
additional clause that is not part of the statute, again taken from 
EPA's Policy Statement definition of P2: ``and other practices that 
reduce or eliminate the creation of pollutants through: Increased 
efficiency in the use of raw materials, energy, water, or other 
resources, or protection of natural resources by conservation.''
    Subsequently, EPA changed its approach in a proposed rule on May 
15, 2003. In that action, EPA proposed the statutory definition of P2 
verbatim (68 FR 26249). This change stemmed from EPA's conclusion that 
the statutory definition of P2 was more appropriate for this rule than 
the Policy Statement definition.
    The May 2003 proposed rule was intended primarily to provide 
alternative compliance options for major sources who reduce their 
Hazardous Air Pollutants. Also in that proposal were two provisions 
applicable only to Performance Track members. Since the 2003 proposal 
included provisions for Performance Track members, EPA provided the 
public with the opportunity to comment on the interface between the 
2003 proposed definition of P2 and Performance Track.
    EPA received public comments on the 2002 proposal, but no 
commenters suggested changes to the P2 definition language. Public 
comments discussed how the P2 provision was used in this rule. One 
commenter suggested that all regulated entities that achieve MACT or 
better through pollution prevention measures be eligible for reporting 
reductions. Another commenter supported the proposed reporting 
reductions based on pollution prevention activities. One commenter 
suggested that EPA reduce or eliminate MACT if a source exceeded its 
performance goal, or if a major source lowered emissions to below major 
thresholds through pollution prevention or operational changes.
    EPA also received comments on the 2003 proposal, and like the 2002 
proposal, there were no comments that directly addressed the definition 
of P2 as it relates to Performance Track. There were, however, many 
comments that discussed how the definition of P2 is used in the 2003 
proposal. EPA will address these comments when it takes final action on 
that proposed rule in the future since none of those comments had any 
relevance to today's rule.
    Therefore, today EPA is adopting the definition of P2 that was 
proposed on May 15, 2003, without modification because it is the most 
appropriate definition for today's regulatory action.
2. Reduced Frequency of Required Mact Reporting for All Eligible 
Performance Track Facilities
    Facilities covered by the MACT provisions of the Clean Air Act must 
meet a variety of record-keeping, monitoring, and reporting 
requirements as specified in 40 CFR Part 63--National Emission 
Standards for Hazardous Air Pollutants for Source Categories.
     For facility members in the Performance Track, EPA is reducing 
reporting frequency while assuring the continued availability of 
information required for assessing compliance with MACT standards.
    Because of the high-level environmental performance of Performance 
Track facilities, EPA believes it is appropriate to provide these 
facilities the opportunity to reduce their reporting frequency under 
part 63. Since the underlying data required from these facilities will 
still be gathered, the Agency can still receive the information needed 
to identify any lapses in compliance.
    Current MACT reporting requirements differentiate between 
facilities, based on facility performance, with respect to reporting 
frequency. For example, reporting frequency may be increased from semi-
annually to quarterly for some reports based on the frequency of 
excursions outside of required performance parameters. The approach the 
Agency is adopting today applies a similar concept by reducing 
reporting frequency for top environmental performers.
    Today's rule reduces the frequency of certain required periodic 
MACT reports for eligible Performance Track facilities. Periodic 
reports include a range of reports that are required to be sent in to 
the Permit Authority at intervals that range from quarterly, or more 
frequently if required by special circumstances, to semi-annually. The 
reports are different from records, which must be kept on site and 
incorporated into the periodic reports and other reports. There are 
general reporting requirements in 40 CFR part 63, subpart A, and 
additional reporting requirements under other subparts applying to 
specific categories of stationary sources that emit (or have the 
potential to emit) one or more hazardous air pollutants. Performance 
Track facilities that choose to take advantage of this incentive should 
notify their State Authority that the facility will submit reports on 
an annual, rather than semi-annual, basis.
    Today's rule doubles the reporting intervals for these reports by 
amending 40 CFR 63.2 and 63.10, and adding a new 40 CFR 63.16. For 
major sources and area sources required to hold Title V permits, 
however, reports must still be submitted at least semi-annually to meet 
Title V permitting requirements specified in section 504(a) of the 
Clean Air Act. Public comments expressed concern about the 
applicability of this incentive, noting specifically that the six-month 
statutory reporting frequency floor for such air sources may limit the 
incentive to minor (or synthetic minor) air sources. EPA acknowledges 
these concerns. EPA is issuing this incentive provision as proposed 
because of its potential value to any current and future

[[Page 21746]]

Performance Track facilities that are regulated as minor sources and 
not required to hold Title V permits. This final rule does not revise 
other requirements concerning event reporting, record keeping, and 
monitoring. EPA also recognizes that because membership in Performance 
Track is for three years and Clean Air Act permits are for five years, 
coordination between these event cycles will be required.
3. Reporting Reductions for Performance Track Facilities That Achieve 
Mact or Better Emission Levels Through Pollution Prevention Methods 
Such as Process Changes
    Today's rule also reduces the level of detail of the required 
reporting, under some circumstances, for those facilities that reduce 
emissions below 25 tons per year of aggregate hazardous air pollutant 
(HAP) emissions and 10 tons per year of any individual HAP, and that 
have reduced emissions to a level that is fully in compliance with the 
applicable MACT standard.
    For those Performance Track facilities that are below the 
thresholds for major sources of HAPs (25 tons per year aggregate and 10 
tons per year for an individual HAP), and that have reduced the levels 
of all HAP emissions to at least the level required by full compliance 
with the applicable standard, additional reductions in reporting 
requirements are available, depending on the nature of the requirement 
and the means the facility is using to meet the requirement. As above, 
however, for major sources, reports must still be submitted at least 
semi-annually to meet Title V permitting requirements.
    For those facilities using pollution prevention technologies or 
techniques to meet MACT standards, reductions in reporting burden 
depend on the requirements of the part 63 standard, as well as facility 
performance.
    (1) If the standard calls for control technology and the facility 
complies using control technology:
    The facility can substitute a simplified annual report to meet all 
required reporting elements in the applicable part 63 periodic report, 
certifying that they are continuing to use the control technology to 
meet the emission standard, and are running it properly. The facility 
must still fulfill all monitoring and recordkeeping requirements.
    (2) If the emission standard is based on performance of a 
particular control technology and the facility complies using P2:
    The facility can substitute a simplified annual report to meet all 
required reporting elements in the applicable part 63 periodic report, 
certifying that they are continuing to use P2 to reduce HAP emissions 
to levels at or below the MACT standard requirements. The facility must 
still maintain records demonstrating the veracity of the certification.
    (3) If the standard calls for pollution prevention and the facility 
complies by using pollution prevention and the facility reduces 
emissions by an additional 50% or greater than required by the 
standard:
    The facility can substitute a simplified annual report, to meet all 
required reporting elements in the applicable Part 63 periodic report, 
certifying that they are continuing to use P2 to reduce HAP emissions 
to levels below the MACT standard. The facility must still maintain 
records demonstrating the veracity of the certification.
    Performance Track facilities that choose to take advantage of this 
incentive should notify their State Authority that the facility will 
submit a simplified annual report to meet all required reporting 
elements covered by today's rule.
    For each of the above alternatives, if the facility no longer meets 
the criteria for continued membership in the Program, the incentive 
will no longer apply.

B. 180-Day Accumulation Time for Performance Track Hazardous Waste 
Generators

1. Background
    Today EPA is adopting provisions, with certain modifications in 
response to numerous public comments as discussed below, that allow 
large quantity hazardous waste generators who are members of the 
Performance Track Program up to 180 days (or up to 270 days in certain 
cases) to accumulate hazardous waste without a RCRA permit or without 
having interim status. This regulatory flexibility is intended to 
provide a benefit to current members of Performance Track, and an 
incentive for potential members to join the Program. EPA believes the 
regulatory flexibility provided in this rule will not compromise 
protection of human health and the environment at Performance Track 
facilities because of the strict nature of the requirements to become 
and remain a member of Performance Track. These requirements were 
described in Section I. D. of this document.
    The RCRA incentives in today's rule are consistent with the general 
objectives of Performance Track, as discussed in Section I of this 
preamble. In addition, this aspect of the final rule may assist EPA in 
learning more about how accumulation times for hazardous waste 
generators may affect the ultimate disposition of hazardous wastes 
(e.g., recycling vs. disposal), the economics of hazardous waste 
generation and accumulation, and the overall environmental performance 
of hazardous waste generator facilities. More specifically, EPA 
believes that additional accumulation time will allow generators to 
accumulate enough waste to make transportation to waste management 
facilities more cost-effective and efficient for the generator. EPA 
also believes that additional accumulation time may result in 
environmental benefits related to the reduction in the movement and 
handling of hazardous waste on-site, as well as fewer off-site 
shipments. This additional accumulation time for Performance Track 
members is consistent with the rationale used for the F006 (metal 
finishing) hazardous waste rule (65 FR 12377, March 8, 2000).
2. What Are the Current Requirements for Large Quantity Generator 
Accumulation?
    The current standards under 40 CFR part 262 for generators of 
hazardous waste who generate greater than 1,000 kilograms of hazardous 
waste per month (or one kilogram or more of acute hazardous waste), 
known as large quantity generators (LQGs), limit the amount of time 
hazardous waste can be accumulated at the generator's facility without 
a RCRA permit. Under Sec.  262.34, LQGs may accumulate hazardous waste 
on-site for up to 90 days without having to obtain a RCRA permit. The 
generator must comply with certain unit-specific standards (e.g., tank, 
container, containment building, and drip pad standards) for 
accumulation units, and certain general facility requirements such as 
those for marking and labeling of containers, preparedness and 
prevention, and emergency response procedures. Generators may also 
petition the EPA Regional Administrator to grant an extension of up to 
30 days to the 90-day accumulation time limit due to unforeseen, 
temporary, and uncontrollable circumstances, on a case-by-case basis 
(see Sec.  262.34(b)).
    Today's final rule does not make any changes to the existing 
regulations that apply generally to 90-day accumulation by LQGs; EPA 
did not solicit comment in its proposed rule on those provisions

[[Page 21747]]

or any other existing provision of Sec.  262.34. This includes the 
provisions for extended accumulation times for F006 wastes, which are 
specified at Sec.  262.34(g). Those provisions, which apply only to 
generators who accumulate F006 wastes, allow for extended accumulation 
times that are similar in many respects (including the time limits) to 
those in today's rule for Performance Track members. It is therefore 
possible that when today's rule is implemented a generator of F006 
waste who is also a member in Performance Track could take advantage of 
extended accumulation times under either regulatory provision (i.e., 
under Sec.  262.34(g), (h) and (i), or under Sec.  262.34(j), (k) and 
(l)).
3. What Is in Today's Final Rule?
    Today's final rule allows LQGs of hazardous waste that are members 
of the Performance Track Program to accumulate hazardous waste at their 
facilities for longer than the 90 days currently specified in Sec.  
262.34, subject to certain limitations and conditions. The rule does 
not affect other existing generator requirements; for example, 
Performance Track members are required to manifest their hazardous 
waste shipments (see subpart B of part 262) and to comply with other 
generator requirements in part 262 (e.g., packaging and labeling of 
waste shipments).
    The requirements for Performance Track facility extended 
accumulation times are added as new paragraphs (j), (k) and (l) to 
Sec.  262.34. The following is a discussion of each provision.
    Time Limits. Section 262.34(j)(1) specifies that hazardous waste 
generators who are Performance Track members may accumulate hazardous 
wastes for an extended period of time--up to 180 days, or up to 270 
days if the generator must transport waste, or offer waste for 
transportation, over a distance of 200 miles or more. Such generators 
do not need to have RCRA permits or to have interim status if they stay 
within these limits. Note that these extended accumulation time limits 
are consistent with the current limits for generators of F006 wastes 
(see Sec.  262.34(g)).
    Initial Notice. Under Sec.  262.34(j)(2), Performance Track 
generators need to give prior notice to EPA or the authorized state 
agency of their intent to accumulate hazardous waste in excess of 90 
days in accordance with this rule. These notices will assist EPA and 
state agencies in monitoring implementation of this incentive. Public 
comments to the proposal expressed concern that such notifications may 
place additional burden on facilities with dynamic waste streams if re-
notifications are required for each new waste stream. EPA acknowledges 
this concern, clarifies that notifications are generally one-time 
events, and estimates that this burden will be of minimal impact to 
member facilities.
    Notices filed under Sec.  262.34(j)(2) must identify the generator 
and facility, specify when extended accumulation at the facility will 
begin, and include a description of the wastes that will be accumulated 
for extended time periods and the units that will be used for that 
purpose.
    The initial notice must also include a statement that the facility 
has made all changes to its operations, procedures, and equipment 
necessary to accommodate extended time periods for accumulating 
hazardous wastes (Sec.  262.34(j)(2)(iii)). This addresses situations 
in which longer accumulation times may involve, for example, changing 
the design, location, or capacity of the unit(s) in which the wastes 
are accumulated. Such changes could affect how the facility addresses 
other generator requirements, such as those for personnel training or 
emergency response procedures. Including this statement in the notice 
helps ensure in advance that Performance Track members are aware of and 
have implemented any changes at the facility that may be needed to 
accommodate extended accumulation times.
    For generators who intend to accumulate hazardous waste for up to 
270 days because the waste must be transported, or offered for 
transport, more than 200 miles from the generating facility, the notice 
submitted by the generator must contain a certification that an off-
site permitted or interim status hazardous waste treatment, storage, or 
disposal facility (TSD) capable of accepting the waste is not located 
within 200 miles of the generator. In response to comments received on 
this issue, EPA has clarified in this final rule the situations under 
which Performance Track generators may accumulate hazardous waste for 
up to 270 days without a permit. The provision for accumulation up to 
270 days is intended to address situations where wastes must be 
transported for considerable distances to off-site facilities because a 
permitted or interim status TSD is not located within 200 miles, and 
where extended accumulation time may thereby enable the facility to 
more efficiently ship fewer, larger loads of wastes to those 
facilities.
    Section 3001(d)(6) of RCRA allows small quantity generators to 
accumulate hazardous waste on-site without a permit or interim status 
for up to 270 days if the generator must transport the waste (or offer 
the waste for transport) more than 200 miles from the generating 
facility. While EPA does not necessarily consider the 200 mile 
exception under RCRA 3001(d)(6) for small quantity generators as an 
outer boundary on what would be permissible under today's rule, it does 
suggest that Congress was not comfortable with providing more 
flexibility for small quantity generators. Accordingly, EPA believes 
that the 200 mile exception is a reasonable boundary to maintain for 
large and small quantity generators under the Performance Track 
program. At least one commenter has stated that a 200 mile exception 
would encourage generators under the Performance Track program to 
utilize the closest treatment, storage or disposal facility, rather 
than the best facility. In response, EPA would like to note that any 
facility receiving hazardous waste from a generator under the 
Performance Track program must be a federally permitted or interim 
status facility and therefore should be able to handle the waste 
responsibly.
    EPA also received one comment questioning the necessity of the 
certification requirement related to 270 day accumulation. Currently 
small quantity generators and generators of F006 wastes are able to 
accumulate wastes for up to 270 days without certifying to the absence, 
within 200 miles of the generator, of an off-site permitted or interim 
status hazardous waste treatment, storage, or disposal facility capable 
of accepting the waste. EPA has included the certification requirement 
in this incentive because this rule will allow significantly larger 
quantities of all hazardous wastes to be accumulated for up to 270 days 
than is authorized by current rules. The certification requirement is 
minimally burdensome and constitutes a reasonable trade-off in light of 
the breadth of operational flexibility that this rule affords to 
Performance Track members.
    Standards for Accumulation Units. Another condition (Sec.  
262.34(j)(3)) in today's rule requires Performance Track generators to 
accumulate hazardous wastes in storage units (such as containers, 
tanks, drip pads, and containment buildings) that meet the standards 
for storing hazardous wastes at RCRA interim status facilities (see 
subparts I, J, W, and DD of 40 CFR part 265, respectively). These are 
standard requirements for large quantity generators.
    If Performance Track facilities use containers for extended 
accumulation of hazardous wastes, today's rule

[[Page 21748]]

additionally requires secondary containment systems for containers to 
prevent releases into the environment that might be caused by handling 
accidents, deterioration, or other circumstances. Secondary containment 
is a standard requirement for RCRA-permitted facilities that use 
containers to store hazardous wastes containing free liquids and 
certain listed hazardous wastes (i.e., F020, F021, F023, F026, and 
F027). It is not, however, typically required for hazardous waste 
generators or interim status facilities. Public comments on the 
secondary containment requirement included support for the proposal, 
concerns about the costs of secondary containment, and recommendations 
for more stringent requirements. EPA believes that requiring secondary 
containment in the context of this rule is a reasonable, common-sense 
precaution to take in exchange for extending accumulation time limits 
and increasing the volume limit.
    Volume Limit. Under Sec.  262.34(j)(4), Performance Track member 
generators are allowed to accumulate no more than 30,000 kilograms of 
hazardous waste at the facility at any one time. The Agency has 
information that the typical capacity for a hazardous waste truck 
transport vehicle ranges from an average of approximately 16,400 kg to 
a maximum of approximately 27,300 kg.\1\ In addition, generators 
shipping hazardous waste by rail may have capacities of approximately 
50,000 kg.\2\ While one public comment asked EPA to consider a 
significantly higher waste stream-specific accumulation limit, comments 
on balance did not support modifications to the proposal. EPA believes 
that a 30,000 kg waste accumulation limit is reasonable and appropriate 
in ensuring economical shipments of wastes in a wide range of transport 
vehicle sizes.
---------------------------------------------------------------------------

    \1\ Unit Cost Compendium, prepared by DPRA Incorporated, for 
USEPA, Office of Solid Waste, September 30, 2000 and personal 
communication with DPRA.
    \2\ Rail car capacities vary depending on whether the transport 
unit is a mail box car (from 160 cubic yards to 370 cubic yards), a 
rail gondola (from 15 cubic yards to 262 cubic yards), or a rail 
tanker (22,000 gallons), R.S. Means, Environmental Remediation 
Estimating Methods, 1997. In general, one cubic yard of solid equals 
1.5 tons and one cubic yard of liquid equals 1 ton.
---------------------------------------------------------------------------

    Recordkeeping, Labeling, and Marking. Section 262.34(j)(5) 
specifies the types of records that program members must maintain at 
their facilities as a condition for extended accumulation times. These 
records are primarily intended to document that the accumulation time 
limits are not exceeded. Retaining these records is a standard 
requirement for all LQGs of hazardous waste.
    Similarly, Sec.  262.24(j)(6) requires that tanks and container 
units used for extended accumulation be marked or labeled with the 
words ``Hazardous Waste,'' and that containers be marked to indicate 
when the accumulation period begins. These are also standard conditions 
for hazardous waste generators, and are specified in this rule mainly 
for the sake of clarity.
    General Facility Standards. Under current regulations, all 
hazardous waste generators are subject to certain general facility 
standards relating to personnel training, preparedness and prevention, 
and contingency plans and emergency procedures. These general facility 
requirements also apply to Performance Track generators, and have been 
included in this rule for the sake of clarity.
    Pollution Prevention. The Agency sought comment on whether it is 
appropriate to require Performance Track facilities to implement 
pollution prevention practices as a condition for using extended 
accumulation times in Sec.  262.34(j)(8). A public comment suggested 
this provision duplicates requirements at Sec.  262.41(a)(6-7). EPA 
acknowledges the provisions in these two sections are similar. However, 
the existing provision Sec.  262.41(a)(6-7) is intended for one purpose 
and today's Sec.  262.34(j)(7) for another.
    Final Sec.  262.41(a)(6 and 7) state: ``(6) A description of the 
efforts undertaken during the year to reduce the volume and toxicity of 
waste generated. (7) A description of the changes in volume and 
toxicity of waste actually achieved during the year in comparison to 
previous years to the extent such information is available for years 
prior to 1984.'' This provision is required as part of the Biennial 
report that RCRA generators must submit to the Agency or State.
    Final Sec.  262.34 (8) states: ``The generator has implemented 
pollution prevention practices that reduce the amount of any hazardous 
substances, pollutants, or contaminants released to the environment 
prior to its recycling, treatment, or disposal; and'' This new 
provision is required for RCRA generators who are members of 
Performance Track. The information must be submitted annually along 
with the Performance Track member's annual report to the Agency. 
Requiring this information as part of the annual report is consistent 
with the core provisions of the Performance Track program. Further, EPA 
believes any burden associated with this requirement is negligible.
    Annual Report. Under final Sec.  262.34(j), Performance Track 
generators accumulating their hazardous waste for more than 90 days are 
required to provide information regarding the impact of the additional 
accumulation time. This information will be submitted as part of the 
Annual Performance Report, currently required of all Performance Track 
members (see www.epa.gov/PerformanceTrack, or the document entitled 
``National Environmental Performance Track Program Guide,'' EPA 240-F-
01-002). Specifically, the report must include, for the previous year, 
information on the quantity of each hazardous waste that was 
accumulated for extended time periods, the number of off-site waste 
shipments, identification of destination facilities and how the wastes 
were managed at those facilities, information on the impact of extended 
accumulation time limits on the facility's operations (including any 
cost savings that may have occurred), and information on any on-site or 
off-site spills or other environmental problems associated with 
handling these wastes. Certain public comments expressed concern about 
the burden imposed by the proposed additional reporting requirements. 
EPA does not believe that the additional reporting elements constitute 
an unreasonable burden upon Performance Track members. The information 
submitted in these reports will assist the Agency in evaluating the 
success of this Performance Track Program incentive, and may inform 
future Agency decisions pertaining to hazardous waste accumulation. The 
provisions of this rule are supplementary to the existing recordkeeping 
and reporting requirements applicable to Generators, such as those 
found at 40 CFR part 262, subpart D.
    Accumulation Time Extensions. Today's final rule also adds a new 
paragraph (k) to Sec.  262.34, to address extensions of accumulation 
time limits in certain situations. This provision is consistent with 
the current regulations that apply generally to LQGs (see Sec.  
262.34(b)), and has been included in today's rule for the sake of 
clarity. Specifically, it allows the overseeing agency the option of 
granting a Performance Track generator an additional 30 days of 
accumulation time, if such extra time is needed due to unforseen, 
temporary, and uncontrollable circumstances. Requests for such time 
extensions will be reviewed and approved (or disapproved) in the same 
manner as they currently are for non-Performance Track LQGs.

[[Page 21749]]

    Withdrawal/Termination From Program. Final Sec.  262.34(l) 
addresses situations in which a Performance Track facility that has 
been accumulating hazardous wastes for extended periods of time under 
this rule decides to withdraw from the Program, or when EPA has for 
some reason decided to terminate the generator's membership in the 
Program. In such cases, the generator will need to comply with the 
previously applicable regulations as soon as possible (the standard 
requirement for less-than-90-day accumulation by large quantity 
generators), but no later than six months after withdrawal or 
termination.
4. How Will Today's Rule Affect Applicability of RCRA Rules in 
Authorized States?
    Under section 3006 of RCRA, EPA may authorize a qualified State to 
administer and enforce a hazardous waste program within the State in 
lieu of the federal program, and to issue and enforce permits in the 
State. (See 40 CFR part 271 for the standards and requirements for 
authorization.) Following authorization, a State continues to have 
enforcement responsibilities under its law to pursue violations of its 
hazardous waste program. EPA continues to have independent authority 
under RCRA sections 3007, 3008, 3013, and 7003.
    After authorization, Federal rules written under RCRA provisions 
that predate the Hazardous and Solid Waste Amendments of 1984 (HSWA) no 
longer apply in the authorized state. New Federal requirements imposed 
by those rules that predate HSWA do not take effect in an authorized 
State until the State adopts the requirements as State law.
    In contrast, under section 3006(g) of RCRA, new requirements and 
prohibitions imposed by HSWA take effect in authorized States at the 
same time they take effect in non-authorized States. EPA is directed to 
carry out HSWA requirements and prohibitions in authorized States until 
the State is granted authorization to do so.
    Today's final rule is not promulgated under HSWA authorities. 
Consequently, it does not amend the authorized program for states upon 
promulgation, as EPA does not implement the rule. The authorized RCRA 
program will change when EPA approves a State's application for a 
revision to its RCRA program.
    For today's Performance Track rule, EPA encourages States to 
expeditiously adopt Performance Track regulations and begin program 
implementation. To revise the federally-authorized RCRA program, States 
need to seek formal authorization for the Performance Track rule after 
program implementation. EPA encourages States to begin implementing 
this incentive as soon as it is allowable under State law, while the 
RCRA authorization process proceeds.\3\
---------------------------------------------------------------------------

    \3\ EPA encourages States to take this approach for less 
stringent federal requirements where rapid implementation is 
important. For example, EPA encouraged States to implement State 
Corrective Action Management Unit Regulations, once adopted as a 
matter of State law, prior to authorization (see 58 FR 8677, 
February 16, 1993).
---------------------------------------------------------------------------

IV. Summary of Environmental, Energy, and Economic Impacts

A. What Are the Cost and Economic Impacts?

    Today's final action will reduce costs for the facilities eligible 
to take advantage of the rule. Most of these cost reductions result 
from reduced reporting hours burden for facilities, or reduced waste 
management costs.
    EPA has completed seven enrollment periods for the Performance 
Track Program. There are currently a total of 344 \4\ facilities in the 
Program (mostly industrial facilities, but also a number of facilities 
in the service sector, several federal facilities and a POTW). The 
economic estimates for today's rule are based on the most recent data 
that EPA has obtained, and reflects Program membership through round 
six. EPA intends to solicit and to accept additional facilities into 
the Program generally, so therefore it is not possible to project cost 
and burden hour reductions with complete accuracy. Another factor that 
hinders such projections is that, just as membership in Performance 
Track is voluntary, it is up to the facilities themselves to decide 
which incentives apply to them and of which to avail themselves.
---------------------------------------------------------------------------

    \4\ The economic estimates for today's rule are based on the 
most recent data that EPA has obtained, and reflects Program 
membership through round six.
---------------------------------------------------------------------------

    Maximum Achievable Control Technology: A total of 309 \5\ 
facilities have been accepted into the Performance Track program during 
the first six open enrollment periods. Of those facilities, EPA 
estimates that 93 facilities are likely to be eligible for the MACT 
incentive in today's rule. Performance Track facilities likely to be 
eligible for the MACT incentive include those members permitted as 
minor or synthetic minor air sources and in a NAICS sector likely to be 
to be subject to a MACT requirement. An analysis of EPA's IDEA database 
yielded 106 potential minor or synthetic minor air sources (See http://www.epa.gov/compliance/planning/data/multimedia/idea/index.html). EPA 
then screened out 13 Performance Track members in sectors unlikely to 
be subject to MACT requirements (i.e., nine members in the Public 
Facilities and Institutions sector; two members in the Mining and 
Construction sector; and two members in the Wholesale Retail and 
Shipping sector). This analysis resulted in 93 eligible facilities in 
the current membership. EPA estimates the annual increase in 
Performance Track members likely to be eligible for the MACT incentive 
by applying the percentage eligible among the current membership (i.e., 
30 percent) to subsequent years.
---------------------------------------------------------------------------

    \5\ 5 The economic estimates for today's rule are based on the 
most recent data that EPA has obtained, and reflects Program 
membership through round six.
---------------------------------------------------------------------------

    Extended Accumulation Time for Hazardous Waste Generators: EPA 
estimates that 125 facilities are likely to be eligible for the RCRA 
incentives in today's rule.\6\ The number of Performance Track 
facilities that could potentially be affected by the RCRA portion of 
the rule was assembled from the list of all Performance Track 
facilities that identified themselves as hazardous waste generators. 
EPA then relied on the RCRA 2001 Hazardous Waste Data (i.e., Biennial 
Reporting System) to determine the quantity of waste generated by each 
facility per year (See http://www.epa.gov/epaoswer/hazwaste/data/index.htm). The next step involved excluding Performance Track 
facilities that are small quantity generators (SQGs), since SQGs may 
already accumulate hazardous waste for up to 180 days, and thus would 
not benefit from today's final rule. Again, EPA estimates the annual 
increase in Performance Track members likely to be eligible for the 
RCRA incentive by applying the percentage of the current membership to 
subsequent years.
---------------------------------------------------------------------------

    \6\ Memorandum dated December 5, 2003, from Industrial 
Economics, Incorporated (IEc) to EPA's Office of Policy, Economics, 
and Innovation.
---------------------------------------------------------------------------

Total Estimated Impact of Final Rule on Costs and Labor Hours
    The estimated cost and hour burden for respondents for today's rule 
in total is negative 7,954 hours over the three years of the 
Information Collection Request, equating to a cost savings of $706,846. 
The estimated cost and hour burden for respondents for today's rule, 
disaggregated, is negative 16.6 hours per facility per year, that is, a 
reduction of 16.6 hours from current requirements. The costs are 
negative $1,350.80 per facility per year, that is, cost reductions/
savings of $1350.80.

[[Page 21750]]

B. What Are the Health, Environmental, and Energy Impacts?

    EPA expects there to be no adverse effects on the environment from 
the direct impacts of today's rule changes. As discussed above, most of 
the changes relate to reporting or waste management, and do not in any 
way loosen the underlying environmental obligations of the Performance 
Track facilities. EPA expects that the reporting changes will not 
result in any of these facilities becoming more lax in their diligence.
    EPA believes that its refocus of resources may lead to additional 
environmental compliance. Public recognition and relief from regulatory 
requirements, to the extent that they affect each company's bottom 
line, may influence company decisions to undertake regulatory projects 
that go beyond regulatory requirements. The public will be able to 
judge the nature and magnitude of these environmental benefits by 
examining the annual reports that Performance Track facilities are 
required to prepare and make public.

V. Effective Date for Today's Requirements

    The changes contained in this final rule will take effect in the 
Federal MACT and RCRA programs on April 22, 2004. This rule cannot 
apply to sources complying with alternative requirements approved 
through the approval options in subpart E of the section, unless the 
source reapplies for and demonstrates that the equivalency 
demonstration for that source shows that this source would be eligible 
for this program (see 64 CFR 55810-55846, September 14, 2000).
    This also means that these RCRA rules will apply on April 22, 2004, 
in any State without an authorized RCRA program, but will not apply in 
any State with an authorized RCRA program until EPA approves a State's 
application for a revision to its RCRA program. These rule changes 
apply only to members of the Performance Track, which is a voluntary 
program. The changes are intended to provide regulatory relief and do 
not impose new requirements. Because regulated entities will not need 
time to come into compliance, the rule changes made today will be 
effective upon publication.

VI. Administrative Requirements

A. Executive Order 12866, Regulatory Planning and Review

    The estimated cost and hour burden for respondents for today's rule 
in total is negative 7,954 hours over the three years of the 
Information Collection Request, equating to a cost savings of $706,846. 
The estimated cost and hour burden for respondents for today's rule, 
disaggregated, is negative 16.6 hours per facility per year, that is, a 
reduction of 16.6 hours from current requirements. The costs are 
negative $1,350.80 per facility per year, that is, cost reductions/
savings of $1350.80.
    It has been determined that this rule is not a ``significant 
regulatory action'' under the terms of Executive Order 12866 and is 
therefore not subject to OMB review.

B. Paperwork Reduction Act

    The information collection requirements in this rule have been 
submitted for approval to the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The 
information collection requirements are not enforceable until OMB 
approves them.
    The information collected pursuant to today's rule is a combination 
of new information, and a reduction of other information the Agency 
currently collects. This information will be used so that the Agency 
will know that facilities eligible for today's provisions are properly 
implementing them, and also that States have implemented them, if they 
so choose. This information will enable the Agency to assess compliance 
with today's final provisions. Responses to the information request are 
required by respondents to retain provided in today's rule under the 
Authority: 42 U.S.C. 7401, et seq., and Authority: 42 U.S.C. 6906, 
6912, 6922-6925, 6937, and 6938. Responses by States for today's 
provisions are voluntary.
    The estimated cost and hour burden for respondents for today's rule 
in total is negative 7,954 hours over the three years of the 
Information Collection Request equating to a cost savings of $706,846. 
The estimated cost and hour burden for respondents for today's rule, 
disaggregated, is negative 16.6 hours per facility per year, that is, a 
reduction of 16.6 hours from current requirements. The costs are 
negative $1,350.80 per facility per year, that is, cost reductions/
savings of $1350.80. The frequency of the responses are a combination 
of one-time and annual, that is, there are different types of responses 
required. For instance, if a Performance Track facility seeks to extend 
its storage time under today's provisions, a one time notification is 
required. In addition, the facility must provide certain information on 
an annual basis to the authorized State. The estimated mean number of 
annual respondents between 2004 and 2006 is 277. The Paperwork 
Reduction Act requires that the Agency report to the Office of 
Management and Budget only positive burden hours for Industry and 
States via its ``83-I'' reporting form. Therefore, the total burden 
hours reported to OMB is 8950. Burden means the total time, effort, or 
financial resources expended by persons to generate, maintain, retain, 
or disclose or provide information to or for a Federal agency. This 
includes the time needed to review instructions; develop, acquire, 
install, and utilize technology and systems for the purposes of 
collecting, validating, and verifying information, processing and 
maintaining information, and disclosing and providing information; 
adjust the existing ways to comply with any previously applicable 
instructions and requirements; train personnel to be able to respond to 
a collection of information; search data sources; complete and review 
the collection of information; and transmit or otherwise disclose the 
information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9. When this ICR is 
approved by OMB, the Agency will publish a technical amendment to 40 
CFR part 9 in the Federal Register to display the OMB control number 
for the approved information collection requirements contained in this 
final rule.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act generally requires an agency to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rule requirements under the Administrative Procedure Act or 
any other statute 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 organizations, 
and small governmental jurisdictions.
    For purposes of assessing the impacts of today's final rule on 
small entities, small entity is defined as: (1) A small business 
according to the Small Business Administration definition for the 
business's NAICS code; (2) a small governmental jurisdiction that is a 
government of a city, county, town, school district or special district 
with a population of less than 50,000; and (3) a small organization 
that is any not-for-profit enterprise which is independently owned and 
operated and is not dominant in its field.

[[Page 21751]]

    After considering the economic impacts of today's final rule on 
small entities, I certify that this action will not have a significant 
economic impact on a substantial number of small entities.
    In determining whether a rule has a significant economic impact on 
a substantial number of small entities, the impact of concern is any 
significant adverse economic impact on small entities, since the 
primary purpose of the regulatory flexibility analyses is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impact of the proposed rule on small entities.'' 5 U.S.C. 
Sections 603 and 604. Thus, an agency may certify that a rule will not 
have a significant economic impact on a substantial number of small 
entities if the rule relieves regulatory burden, or otherwise has a 
positive economic effect on all of the small entities subject to the 
rule. Today's rule will relieve regulatory burden and result in cost 
savings to entities, including any small entities, that are members of 
the Performance Track Program. Many small entities (both businesses and 
governments) and their association representatives were invited to, and 
attended, the public hearings EPA conducted early in 2000 on the design 
of the Performance Track Program. EPA has therefore concluded that 
today's final rule will relieve regulatory burden for small entities.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 04-4, 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.
    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. Participation by facilities in the Performance 
Track is voluntary, and so is participation by State or local 
government agencies. There are no significant or unique effects on 
State, local, or Tribal governments, however there may be some minor 
effects incurred by these entities. EPA projects these costs to be very 
low. Thus, today's rule is not subject to the requirements of sections 
202 and 205 of the UMRA. Nevertheless, as discussed in section I B and 
elsewhere, EPA did engage these stakeholders in the process of 
developing the National Environmental Performance Track Program.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), 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.''
    This final rule does not have federalism implications. It 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. This rule provides incentives 
that States can adopt to provide benefits to their State member 
facilities in the National Performance Track Program. As a voluntary 
program, Performance Track allows States the option to adopt the 
provisions in this rule. Thus, Executive Order 13132 does not apply to 
this rule.
    Stakeholders, including many States, were consulted during the 
development of the Performance Track Program. Many suggestions and 
ideas generated by States and other stakeholders provided the basis for 
some of the provisions in this rule. The stakeholder involvement 
process undertaken is fully discussed in Section I B of this document. 
In the spirit of Executive Order 13132, and consistent with EPA policy 
to promote communications between EPA and State and local governments, 
EPA specifically sought comment on the proposed rule from State and 
local officials.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by Tribal officials in the development of regulatory 
policies that have Tribal implications.'' ``Policies that have Tribal 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on one or more Indian tribes, on 
the relationship between the Federal government and the Indian tribes, 
or on the distribution of power and responsibilities between the 
Federal government and Indian tribes.''
    This final rule does not have Tribal implications. It will not have 
substantial direct effects on Tribal governments, on the relationship 
between the Federal government and Indian tribes, or on the 
distribution of power and responsibilities between the Federal 
government and Indian tribes, as specified in Executive Order 13175. 
Any effects that Tribes may accrue from this rule will result in cost 
savings. Thus, Executive Order 13175 does not apply to this rule. 
Stakeholder involvement is discussed in Section I. B. of this document. 
In the spirit of Executive Order 13175, and consistent with EPA policy 
to promote communications between EPA and Tribal governments, EPA 
specifically sought additional comment on the proposed rule from Tribal 
officials.

[[Page 21752]]

G. Executive Order 13045: Protection of Children From Environmental 
Health & Safety Risks

    Executive Order 13045: ``Protection of Children from Environmental 
Health & 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.
    This final rule is not subject to the Executive Order because it is 
not economically significant as defined in Executive Order 12866, and 
because the Agency does not have reason to believe the environmental 
health or safety risks addressed by this action present a 
disproportionate risk to children. In the proposed rule, EPA invited 
the public to submit or identify peer-reviewed studies and data, of 
which the agency may not be aware, that assessed results of early life 
exposure to the provisions of this rule. No such studies or data were 
identified.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This rule is not a ``significant energy action'' as defined in 
Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 28355 
(May 22, 2001)) because it is not likely to have a significant adverse 
effect on the supply, distribution, or use of energy. Further, EPA has 
concluded that this rule is not likely to have any adverse energy 
effects.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer Advancement Act 
of 1995 (NTTAA), Public Law 104-113, section 12(d) (15 U.S.C. 272 
note), directs all Federal agencies to use voluntary consensus 
standards instead of government-unique standards in their regulatory 
and procurement activities, unless to do so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards (such as materials specifications, test 
methods, sampling procedures, business practices) that are developed or 
adopted by one or more voluntary consensus standards bodies. Examples 
of organizations generally regarded as voluntary consensus standards 
bodies include the American Society for Testing and Materials (ASTM), 
the National Fire Protection Association (NFPA), and the Society of 
Automotive Engineers (SAE). The NTTAA directs EPA to provide Congress, 
through annual reports to OMB, with explanations when an Agency does 
not use available and applicable voluntary consensus standards.
    This final rule does not involve technical standards. Thus, the 
provisions of NTTAA do not apply to this rule and EPA is not 
considering the use of any voluntary consensus standards.

J. Congressional Review Act

    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. A Major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). This final rule is effective on April 22, 2004.

VII. Statutory Authority

    The statutory authority for the MACT portion of this action is 
provided by sections 101, 112, 114, 116, and 301 of the Clean Air Act 
as amended (42 U.S.C. 7401, 7412, 7414, 7416, and 7601). The statutory 
authority for the RCRA portion of this action is provided by sections 
2002 and 3002 of the Solid Waste Disposal Act, as amended by the 
Resource Conservation and Recovery Act of 1976, as amended by the 
Hazardous and Solid Waste Amendments of 1984 (42 U.S.C. 6912 and 6922).

VIII. Judicial Review

    Under section 307(b)(1) of the Clean Air Act, judicial review of 
the MACT portion of this final rule is available only by the filing of 
a petition for review in the U.S. Court of Appeals for the District of 
Columbia Circuit by June 21, 2004. Any such judicial review is limited 
to only those objections that are raised with reasonable specificity in 
timely comments. Under section 307(b)(2) of the Clean Air Act, the 
requirements that are the subject of this final rule may not be 
challenged later in civil or criminal proceedings brought by us to 
enforce these requirements. Under section 6976(a) of the Resource 
Conservation and Recovery Act, judicial review of the RCRA portion of 
this final rule is available only by the filing of a petition for 
review in the U.S. Court of Appeals for the District of Columbia 
Circuit by June 21, 2004. Under this same section 6976(a) of RCRA, the 
requirements that are the subject of this final rule may not be 
challenged later in civil or criminal proceedings brought by us to 
enforce these requirements.

List of Subjects

40 CFR Part 63

    Administrative practice and procedure, Air pollution control, 
Hazardous substances, Intergovernmental relations, Reporting and 
recordkeeping requirements.

40 CFR Part 262

    Exports, Hazardous materials transportation, Hazardous waste, 
Imports, Labeling, Packaging and containers, Reporting and 
recordkeeping requirements.

    Dated: April 14, 2004.
Michael O. Leavitt,
Administrator.

0
For the reasons stated in the preamble, we amend parts 63 and 262 of 
title 40, chapter I of the Code of the Federal Regulations as follows:

PART 63--[AMENDED]

0
1. The authority citation for part 63 continues to read as follows:

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

Subpart A--[Amended]

0
2. Section 63.2 is amended by adding, in alphabetical order, 
definitions for the terms Pollution Prevention and Source at a 
Performance Track member facility to read as follows:


Sec.  63.2  Definitions.

* * * * *
    Pollution Prevention means source reduction as defined under the 
Pollution Prevention Act (42 U.S.C. 13101-13109). The definition is as 
follows:
    (1) Source reduction is any practice that:
    (i) Reduces the amount of any hazardous substance, pollutant, or

[[Page 21753]]

contaminant entering any waste stream or otherwise released into the 
environment (including fugitive emissions) prior to recycling, 
treatment, or disposal; and
    (ii) Reduces the hazards to public health and the environment 
associated with the release of such substances, pollutants, or 
contaminants.
    (2) The term source reduction includes equipment or technology 
modifications, process or procedure modifications, reformulation or 
redesign of products, substitution of raw materials, and improvements 
in housekeeping, maintenance, training, or inventory control.
    (3) The term source reduction does not include any practice that 
alters the physical, chemical, or biological characteristics or the 
volume of a hazardous substance, pollutant, or contaminant through a 
process or activity which itself is not integral to and necessary for 
the production of a product or the providing of a service.
* * * * *
    Source at a Performance Track member facility means a major or area 
source located at a facility which has been accepted by EPA for 
membership in the Performance Track Program (as described at 
www.epa.gov/PerformanceTrack) and is still a member of the Program. The 
Performance Track Program is a voluntary program that encourages 
continuous environmental improvement through the use of environmental 
management systems, local community outreach, and measurable results.
* * * * *

0
3. Section 63.10 is amended by:
    a. Revising paragraph (d)(1); and
    b. Adding paragraph (e)(3)(i)(D).
    The revision and addition read as follows:


Sec.  63.10  Recordkeeping and reporting requirements.

* * * * *
    (d) * * * (1) Notwithstanding the requirements in this paragraph or 
paragraph (e) of this section, and except as provided in Sec.  63.16, 
the owner or operator of an affected source subject to reporting 
requirements under this part shall submit reports to the Administrator 
in accordance with the reporting requirements in the relevant 
standard(s).
* * * * *
    (e) * * *
    (3) * * *
    (i) * * *
    (D) The affected source is complying with the Performance Track 
Provisions of Sec.  63.16, which allows less frequent reporting.
* * * * *

0
4. Section 63.16 is added to subpart A and reads as follows:


Sec.  63.16  Performance Track Provisions.

    (a) Notwithstanding any other requirements in this part, an 
affected source at any major source or any area source at a Performance 
Track member facility, which is subject to regular periodic reporting 
under any subpart of this part, may submit such periodic reports at an 
interval that is twice the length of the regular period specified in 
the applicable subparts; provided, that for sources subject to permits 
under 40 CFR part 70 or 71 no interval so calculated for any report of 
the results of any required monitoring may be less frequent than once 
in every six months.
    (b) Notwithstanding any other requirements in this part, the 
modifications of reporting requirements in paragraph (c) of this 
section apply to any major source at a Performance Track member 
facility which is subject to requirements under any of the subparts of 
this part and which has:
    (1) Reduced its total HAP emissions to less than 25 tons per year;
    (2) Reduced its emissions of each individual HAP to less than 10 
tons per year; and
    (3) Reduced emissions of all HAPs covered by each MACT standard to 
at least the level required for full compliance with the applicable 
emission standard.
    (c) For affected sources at any area source at a Performance Track 
member facility and which meet the requirements of paragraph (b)(3) of 
this section, or for affected sources at any major source that meet the 
requirements of paragraph (b) of this section:
    (1) If the emission standard to which the affected source is 
subject is based on add-on control technology, and the affected source 
complies by using add-on control technology, then all required 
reporting elements in the periodic report may be met through an annual 
certification that the affected source is meeting the emission standard 
by continuing to use that control technology. The affected source must 
continue to meet all relevant monitoring and recordkeeping 
requirements. The compliance certification must meet the requirements 
delineated in Clean Air Act section 114(a)(3).
    (2) If the emission standard to which the affected source is 
subject is based on add-on control technology, and the affected source 
complies by using pollution prevention, then all required reporting 
elements in the periodic report may be met through an annual 
certification that the affected source is continuing to use pollution 
prevention to reduce HAP emissions to levels at or below those required 
by the applicable emission standard. The affected source must maintain 
records of all calculations that demonstrate the level of HAP emissions 
required by the emission standard as well as the level of HAP emissions 
achieved by the affected source. The affected source must continue to 
meet all relevant monitoring and recordkeeping requirements. The 
compliance certification must meet the requirements delineated in Clean 
Air Act section 114(a)(3).
    (3) If the emission standard to which the affected source is 
subject is based on pollution prevention, and the affected source 
complies by using pollution prevention and reduces emissions by an 
additional 50 percent or greater than required by the applicable 
emission standard, then all required reporting elements in the periodic 
report may be met through an annual certification that the affected 
source is continuing to use pollution prevention to reduce HAP 
emissions by an additional 50 percent or greater than required by the 
applicable emission standard. The affected source must maintain records 
of all calculations that demonstrate the level of HAP emissions 
required by the emission standard as well as the level of HAP emissions 
achieved by the affected source. The affected source must continue to 
meet all relevant monitoring and recordkeeping requirements. The 
compliance certification must meet the requirements delineated in Clean 
Air Act section 114(a)(3).
    (4) Notwithstanding the provisions of paragraphs (c)(1) through 
(3), of this section, for sources subject to permits under 40 CFR part 
70 or 71, the results of any required monitoring and recordkeeping must 
be reported not less frequently than once in every six months.

PART 262--STANDARDS APPLICABLE TO GENERATORS OF HAZARDOUS WASTE

0
5. The authority citation for part 262 continues to read as follows:

    Authority: 42 U.S.C. 6906, 6912, 6922-6925, 6937, and 6938.


0
6. Section 262.34 is amended by adding paragraphs (j), (k), and (l) to 
read as follows:


Sec.  262.34  Accumulation time.

* * * * *
    (j) A member of the Performance Track Program who generates 1000 kg 
or

[[Page 21754]]

greater of hazardous waste per month (or one kilogram or more of acute 
hazardous waste) may accumulate hazardous waste on-site without a 
permit or interim status for an extended period of time, provided that:
    (1) The generator accumulates the hazardous waste for no more than 
180 days, or for no more than 270 days if the generator must transport 
the waste (or offer the waste for transport) more than 200 miles from 
the generating facility; and
    (2) The generator first notifies the Regional Administrator and the 
Director of the authorized State in writing of its intent to begin 
accumulation of hazardous waste for extended time periods under the 
provisions of this section. Such advance notice must include:
    (i) Name and EPA ID number of the facility, and specification of 
when the facility will begin accumulation of hazardous wastes for 
extended periods of time in accordance with this section; and
    (ii) A description of the types of hazardous wastes that will be 
accumulated for extended periods of time, and the units that will be 
used for such extended accumulation; and
    (iii) A Statement that the facility has made all changes to its 
operations, procedures, including emergency preparedness procedures, 
and equipment, including equipment needed for emergency preparedness, 
that will be necessary to accommodate extended time periods for 
accumulating hazardous wastes; and
    (iv) If the generator intends to accumulate hazardous wastes on-
site for up to 270 days, a certification that a facility that is 
permitted (or operating under interim status) under part 270 of this 
chapter to receive these wastes is not available within 200 miles of 
the generating facility; and
    (3) The waste is managed in:
    (i) Containers, in accordance with the applicable requirements of 
40 CFR part 265 subpart I; or
    (ii) Tanks, in accordance with the requirements of 40 CFR part 265, 
subpart J, and Sec.  265.200; or
    (iii) Drip pads, in accordance with subpart W of 40 CFR part 265; 
or
    (iv) Containment buildings, in accordance with subpart DD of 40 CFR 
part 265; and
    (4) The quantity of hazardous waste that is accumulated for 
extended time periods at the facility does not exceed 30,000 kg; and
    (5) The generator maintains the following records at the facility 
for each unit used for extended accumulation times:
    (i) A written description of procedures to ensure that each waste 
volume remains in the unit for no more than 180 days (or 270 days, as 
applicable), a description of the waste generation and management 
practices at the facility showing that they are consistent with the 
extended accumulation time limit, and documentation that the procedures 
are complied with; or
    (ii) Documentation that the unit is emptied at least once every 180 
days (or 270 days, if applicable); and
    (6) Each container or tank that is used for extended accumulation 
time periods is labeled or marked clearly with the words ``Hazardous 
Waste,'' and for each container the date upon which each period of 
accumulation begins is clearly marked and visible for inspection; and
    (7) The generator complies with the requirements for owners and 
operators in 40 CFR part 265, with Sec.  265.16, and with Sec.  
268.7(a)(5). In addition, such a generator is exempt from all the 
requirements in subparts G and H of part 265, except for Sec. Sec.  
265.111 and 265.114; and
    (8) The generator has implemented pollution prevention practices 
that reduce the amount of any hazardous substances, pollutants, or 
contaminants released to the environment prior to its recycling, 
treatment, or disposal; and
    (9) The generator includes the following with its Performance Track 
Annual Performance Report, which must be submitted to the Regional 
Administrator and the Director of the authorized State:
    (i) Information on the total quantity of each hazardous waste 
generated at the facility that has been managed in the previous year 
according to extended accumulation time periods; and
    (ii) Information for the previous year on the number of off-site 
shipments of hazardous wastes generated at the facility, the types and 
locations of destination facilities, how the wastes were managed at the 
destination facilities (e.g., recycling, treatment, storage, or 
disposal), and what changes in on-site or off-site waste management 
practices have occurred as a result of extended accumulation times or 
other pollution prevention provisions of this section; and
    (iii) Information for the previous year on any hazardous waste 
spills or accidents occurring at extended accumulation units at the 
facility, or during off-site transport of accumulated wastes; and
    (iv) If the generator intends to accumulate hazardous wastes on-
site for up to 270 days, a certification that a facility that is 
permitted (or operating under interim status) under part 270 of this 
chapter to receive these wastes is not available within 200 miles of 
the generating facility; and
    (k) If hazardous wastes must remain on-site at a Performance Track 
member facility for longer than 180 days (or 270 days, if applicable) 
due to unforseen, temporary, and uncontrollable circumstances, an 
extension to the extended accumulation time period of up to 30 days may 
be granted at the discretion of the Regional Administrator on a case-
by-case basis.
    (1) If a generator who is a member of the Performance Track Program 
withdraws from the Performance Track Program, or if the Regional 
Administrator terminates a generator's membership, the generator must 
return to compliance with all otherwise applicable hazardous waste 
regulations as soon as possible, but no later than six months after the 
date of withdrawal or termination.

[FR Doc. 04-9042 Filed 4-21-04; 8:45 am]
BILLING CODE 6560-50-P