[Federal Register Volume 72, Number 53 (Tuesday, March 20, 2007)]
[Proposed Rules]
[Pages 13059-13061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-5026]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 70

[Docket No. EPA-R02-OAR-2006-0963; FRL-8289-4]


Clean Air Act Title V Operating Permit Program Revision; New 
Jersey

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a revision to the New Jersey title V Operating Permit Program 
submitted by the New Jersey Department of Environmental Protection 
(NJDEP) on October 4, 2006. The New Jersey Operating Permit Program is 
implemented through its Operating Permits Rule, codified at Subchapter 
22 of Chapter 27 of Title 7 of the New Jersey Administrative Code. The 
October 4, 2006 revision changes the title V fee program that funds the 
New Jersey Operating Permit Program, and various sections of the 
Operating Permits Rule relating to definitions, general provisions, 
general application procedures, operating permit application contents 
and completeness review. These changes resulted in both substantial and 
nonsubstantial revisions to New Jersey's Operating Permit Program. EPA 
is proposing to approve these revisions. The intended affect of this 
action is to improve the State's Operating Permit Program.

DATES: Comments must be received on or before April 19, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R02-
OAR-2006-0963, by one of the following methods:
     www.regulations.gov: Follow the on-line instructions for 
submitting comments.
     E-mail: [email protected]
     Fax: 212-637-3901.
     Mail: Raymond Werner, Chief, Air Programs Branch, 
Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th 
Floor, New York, New York 10007-1866.
     Hand Delivery: Raymond Werner, Chief, Air Programs Branch, 
Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th 
Floor, New York, New York 10007-1866. Such deliveries are only accepted 
during the Regional Office's normal hours of operation. The Regional 
Office's official hours of business are Monday through Friday, 8:30 to 
4:30 excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R02-OAR-
2006-0963. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
www.regulations.gov, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI or otherwise protected through www.regulations.gov or e-mail. 
The www.regulations.gov Web site is an ``anonymous access'' system, 
which means EPA will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through www.regulations.gov 
your e-mail address will be automatically captured and included as part 
of the comment that is placed in the public docket and made available 
on the Internet. If you submit an electronic comment, EPA recommends 
that you include your name and other contact information in the body of 
your comment and with any disk or CD-ROM you submit. If EPA cannot read 
your comment due to technical difficulties and cannot contact you for 
clarification, EPA may not be able to consider your comment. Electronic 
files should avoid the use of special characters, any form of 
encryption, and be free of any defects or viruses. For additional 
information about EPA's public docket visit the EPA Docket Center 
homepage at http://www.epa.gov/epahome/dockets.htm.

FOR FURTHER INFORMATION CONTACT: Suilin Chan, Air Programs Branch, 
Environmental Protection Agency, 290 Broadway, 25th Floor, New York, 
New York 10007-1866, (212) 637-4019.

SUPPLEMENTARY INFORMATION: This section provides additional information 
by addressing the following questions:

I. Background

    The Clean Air Act (the Act) Amendments of 1990 required all states 
to develop Operating Permit Programs pursuant to title V of the Act, 42 
U.S.C. 7661-7661f, and the regulations promulgated under title V, which 
are found at 40 CFR part 70. EPA granted interim approval (effective 
June 17, 1996) of the Operating Permit Program submitted by New Jersey 
in response to this directive. 61 FR 24715 (May 16, 1996); 40 CFR part 
70, Appendix A. Effective November 30, 2001, EPA granted full approval 
to New Jersey's title V Operating Permit Program. 66 FR 63168 (December 
5, 2001).
    The current revision to the Operating Permits Rule adjusts the 
title V fee schedules to conform with the Omnibus Legislation adopted 
by the New Jersey state legislature in 2002, and ensures that requisite 
funding needs of the New Jersey Operating Permit Program are met. The 
revised Operating Permits Rule also includes changes that improve New 
Jersey's Operating Permit Program. New Jersey submitted its program 
revision request to the EPA on October 4, 2006. The revision request 
describes the specific changes made to New Jersey's Operating Permits 
Rule.

II. What Is Being Addressed in This Action?

    In today's action, EPA is proposing to approve revisions to 
N.J.A.C. 7:27-22, as identified below, which NJDEP adopted

[[Page 13060]]

on June 9, 2006, and submitted to EPA for approval on October 4, 2006.

A. Definitions

    NJDEP revised N.J.A.C. 7:27-22.1 to delete definitions that have 
become unnecessary because of the changes made to the Operating Permits 
Rule. The terms ``Category I'' and ``Category II'' are deleted because 
they are no longer used by NJDEP in determining title V fees for 
significant permit modifications under the new fee schedules. 
Significant modifications used to be classified as ``Category I'' (for 
which lesser fees were charged), or ``Category II'' (for which higher 
fees were charged). The differences in fees were based on the 
assumption that Category I source types are either not required to 
meet, or have already met, ``state of the art'' emission control 
requirements thereby obviating the need for review in this regard. 
However, the revised rule eliminates this presumption. All applications 
for significant permit modifications will be screened first to 
determine what level of review is needed, which in turn determines the 
amount of fees required pursuant to the revised fee schedules found at 
N.J.A.C. 7:27-22.31(r) and (s).
    A definition for ``probe'' has been added to the definitions 
section to aid in assessing the appropriate fees for stack test 
protocol reviews. The amount of fees charged is based on the number of 
probes used in the stack test.
    Definitions for ``registration,'' ``registration form,'' and 
``registrant,'' are also added to the definitions section because these 
terms are used in the new application procedures established under 
N.J.A.C. 7:27-22.14. Facilities may apply for a general operating 
permit by submitting the appropriate registration form.
    DEP also added to the definitions section the terms ``on-
specification used oil,'' ``space heater,'' and ``used oil'' as they 
were defined in N.J.A.C. 7:27-20.1 (Used Oil Combustion Rule). These 
terms were not previously defined in N.J.A.C. 7:27-22 and are now added 
to maintain consistency between N.J.A.C. 7:27-20 and N.J.A.C. 7:27-22.

B. General Provisions

    DEP amended N.J.A.C. 7:27-22.3(rr) to clarify the application 
procedures pertaining to environmental improvement pilot tests. 
Previously, the rule stated that environmental improvement pilot test 
approvals may be renewed by application but did not provide more 
details on the renewal process. The revised rule clarifies that a new 
application for preconstruction approval must be submitted if an 
environmental improvement pilot test needs to be extended for up to an 
additional 90 days after the expiration of the initially approved 90-
day period.

C. General Application Procedures

    NJDEP revised N.J.A.C. 7:27-22.4 to establish milestones for 
phasing out paper application submissions, and phasing in electronic 
submission of all applications, except for renewals. Electronic 
submission includes a non-Internet-based electronic system known as 
RADIUS, or an internet-based system known as e-NJEMS. The revisions in 
this section of the rule provide incentives, such as lower fees, to 
encourage electronic filing.

D. Operating Permit Application Contents

    NJDEP amended N.J.A.C. 7:27-22.6(a) to eliminate the requirement 
that application fees be submitted with an application in order for it 
to be deemed administratively complete. Fees are no longer required to 
accompany an application. Instead, NJDEP will determine the appropriate 
fees upon receipt of an application in accordance with the new fee 
schedules found at N.J.A.C. 7:27-22.31(r) and (s). The fee information 
is forwarded to the Department of Treasury for billing and collection.

E. Completeness Review

    NJDEP amended N.J.A.C. 7:27-22.10(f) by replacing the word ``the'' 
before ``fee requirement'' with the word ``any.'' Under the revised 
rule, certain applications require no fees. The word ``any'' is 
intended to indicate that there may or may not be a fee required for an 
application.

F. Title V Fees

    NJDEP revised N.J.A.C. 7:27-22.31(a), (b), (c), (d), (e), (f), (g), 
(h), (i), (j), (k), (l), (m), (p), (r), (s), (t) and (u) to establish 
or revise the Base and Supplementary Fee Schedules for various title V 
permitting activities in order to conform with the Omnibus Fee 
Legislation of 2002, and to assure adequate funding for New Jersey's 
title V Operating Permit Program. NJDEP deleted all provisions that 
applied to past fiscal years and added new provisions in accordance 
with the new fee schedules. A summary of the changes made to N.J.A.C. 
7:27-22.31 follows.
    Previously, NJDEP charged fees for processing minor and significant 
permit modifications based on the number of significant source 
operations being modified for fiscal years prior to 1998. The revised 
rule requires no fee for minor modifications but increases fees for 
significant modifications and applications for environmental 
improvement pilot tests. Also, new fees are added for operating permit 
renewal applications and registration under a general operating permit 
for used-oil space heaters.
    NJDEP also revised the rule to clarify that the emissions-based 
fees must be submitted by subject facilities every year. The annual 
emissions-based fee rate was increased from $25 to $60 per ton of 
regulated pollutant in 1989 dollars, adjusted by the Consumer Price 
Index (CPI) as required by the 2002 Omnibus Legislation. Provisions 
have been included in the revised rule to keep the existing annual 
emission fee rate unchanged should the CPI drop to a negative value in 
any given year. The minimum annual emissions-based fees have been 
increased from $1,000 to $3,000 per facility. The annual emissions fee 
exemption for carbon monoxide (CO) was deleted in the revised rule 
because it was valid from 1998 through 2002 only. CO emissions are no 
longer exempted from fee calculations from FY 2003 forward. However, 
the revised rule does exempt carbon dioxide emissions from fees as an 
incentive to encourage dry cleaners to replace dry cleaning equipment 
that uses perchloroethylene, a known carcinogen, with equipment that 
uses the non-harmful liquid carbon dioxide as its sole dry cleaning 
agent.
    The fee collection process has been changed to implement New 
Jersey's ``uniform process.'' Previously, facilities were required to 
submit all required fees with or before the applications for initial 
permits, and with applications for modifications. The revised rule no 
longer requires the requisite fees to be determined by the applicants 
and submitted with the applications. Under the revised rule, fees are 
determined by NJDEP's Bureau of Operating Permits upon receipt of 
applications for initial permits, significant modifications, or 
renewals. The New Jersey Treasury Department bills and collects the 
fees. The bases used in calculating the fees for each application are 
stipulated in N.J.A.C. 7:27-22.31. To better track who has paid the 
required fees, the option to pay by money order is eliminated.

G. Appendix

    DEP corrected a typographical error found in Table B of the 
Appendix of the New Jersey Operating Permits Rule which incorrectly 
listed ``2-Methoxyethanol'' with CAS number 108864. The correct CAS 
number for ``2-Methoxyethanol'' is 109864.

[[Page 13061]]

III. What Is Our Proposed Action?

    EPA is proposing to approve revisions to New Jersey's regulations 
as described above. The State of New Jersey has adopted the above rule 
revisions in accordance with state rulemaking procedures. EPA is 
therefore proposing to approve the revisions to New Jersey's Operating 
Permits Rule, codified at N.J.A.C. 7:27-22, as a revision to New 
Jersey's Operating Permit Program.

IV. Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget. For this reason, this action is also not subject to Executive 
Order 13211, ``Actions Concerning Regulations That Significantly Affect 
Energy Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This 
proposed action merely proposes to approve state law as meeting Federal 
requirements and imposes no additional requirements beyond those 
imposed by state law. Accordingly, the Administrator certifies that 
this proposed rule will not have a significant economic impact on a 
substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.). Because this rule proposes to approve pre-
existing requirements under state law and does not impose any 
additional enforceable duty beyond that required by state law, it does 
not contain any unfunded mandate or significantly or uniquely affect 
small governments, as described in the Unfunded Mandates Reform Act of 
1995 (Pub. L. 104-4).
    This proposed rule also does not have tribal implications because 
it will not have a substantial direct effect on one or more Indian 
tribes, 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 by Executive 
Order 13175 (65 FR 67249, November 9, 2000). This action also does not 
have Federalism implications because it does 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 (64 FR 43255, August 10, 1999). This action 
merely proposes to approve a state rule implementing a Federal 
standard, and does not alter the relationship or the distribution of 
power and responsibilities established in the Clean Air Act. This 
proposed rule also is not subject to Executive Order 13045 ``Protection 
of Children from Environmental Health Risks and Safety Risks'' (62 FR 
19885, April 23, 1997), because it is not economically significant.
    In reviewing State Operating Permit Programs submitted pursuant to 
title V of the Clean Air Act, EPA will approve such regulations 
provided that they meet the requirements of the Clean Air Act and EPA's 
regulations codified at 40 CFR part 70. In this context, in the absence 
of a prior existing requirement for the State to use voluntary 
consensus standards (VCS), EPA has no authority to disapprove such 
regulations for failure to use VCS. It would, thus, be inconsistent 
with applicable law for EPA, when it reviews such regulations, to use 
VCS in place of a State regulation that otherwise satisfies the 
provisions of the Clean Air Act. Thus, the requirements of section 
12(d) of the National Technology Transfer and Advancement Act of 1995 
(15 U.S.C. 272 note) do not apply. This proposed rule does not impose 
an information collection burden under the provisions of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

List of Subjects in 40 CFR Part 70

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Reporting and recordkeeping requirements.

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

    Dated: March 6, 2007.
Alan J. Steinberg,
Regional Administrator, Region 2.
[FR Doc. E7-5026 Filed 3-19-07; 8:45 am]
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