[Federal Register Volume 80, Number 84 (Friday, May 1, 2015)]
[Rules and Regulations]
[Pages 25068-25108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09739]



[[Page 25067]]

Vol. 80

Friday,

No. 84

May 1, 2015

Part III





Environmental Protection Agency





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40 CFR Part 49





General Permits and Permits by Rule for the Federal Minor New Source 
Review Program in Indian Country for Five Source Categories; Final Rule

  Federal Register / Vol. 80 , No. 84 / Friday, May 1, 2015 / Rules and 
Regulations  

[[Page 25068]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 49

[EPA-HQ-OAR-2011-0151; FRL-9919-85-OAR]
RIN 2060-AQ95


General Permits and Permits by Rule for the Federal Minor New 
Source Review Program in Indian Country for Five Source Categories

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The U.S. Environmental Protection Agency (EPA) is finalizing 
general permits for use in Indian country pursuant to the Federal Minor 
New Source Review (NSR) Program in Indian Country for new or modified 
minor sources in the following two source categories: Hot mix asphalt 
(HMA) plants; and stone quarrying, crushing, and screening (SQCS) 
facilities. The EPA is also finalizing permits by rule for use in 
Indian country for new or modified minor sources in three source 
categories: Auto body repair and miscellaneous surface coating 
operations; gasoline dispensing facilities (GDFs), except in 
California; and petroleum dry cleaning facilities. The EPA is also 
taking final action authorizing the use of general permits established 
under the program to create synthetic minor sources for the HMA and 
SQCS source categories.

DATES: The final rule is effective on June 1, 2015.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2011-0151. All documents in the docket are 
listed in the http://www.regulations.gov index. Although listed in the 
index, some information is not publicly available e.g., CBI or other 
information whose disclosure is restricted by statute. Certain other 
material, such as copyrighted material, will be publicly available only 
in hard copy. Publicly available docket materials are available either 
electronically in http://www.regulations.gov or in hard copy at the EPA 
Docket Center, the EPA/DC, William Jefferson Clinton West Building, 
Room 3334, 1301 Constitution Avenue NW., Washington, DC 20004. 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 Air 
and Radiation Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Christopher Stoneman, Outreach and 
Information Division, Office of Air Quality Planning and Standards, (C-
304-03), Environmental Protection Agency, Research Triangle Park, North 
Carolina, 27711, telephone number (919) 541-0823, facsimile number 
(919) 541-0072, email address: [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, ``reviewing 
authority,'' ``we,'' ``us'' and ``our'' refer to the EPA. The 
information in this preamble is organized as follows:

Table of Contents

I. General Information
    A. Does this action apply to me?
    B. Where can I get a copy of this document and other related 
information?
II. Overview of the Final Rule
III. Background
    A. Federal Indian Country Minor NSR Rule
    B. General Permits and Permits by Rule for the Federal Minor New 
Source Review Program in Indian Country--Proposed Rule
IV. Final Rulemaking Action
    A. Permit Documents and Implementation Tools
    B. Requirements of the Endangered Species Act (ESA) and the 
National Historic Preservation Act (NHPA)
    C. Use of Streamlined General Permit Applications
    D. Administrative Aspects of General Permits
    E. Control Technology Review
    F. Use of Throughput Limits
    G. Setback Requirements
    H. Permit by Rule Regulatory Framework
    I. Use of General Permits and Permits by Rule To Create 
Synthetic Minor Sources
    J. Use of Both Permitting Mechanisms for Certain Source 
Categories
    K. Use of More Than One General Permit and/or Permit by Rule for 
a Source at a Single Location
    L. Additional Source Categories for General Permits and/or 
Permits by Rule
    M. Final Rule Changes to the Federal Indian Country Minor NSR 
Rule
V. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory 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 Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution or Use
    I. National Technology Transfer and Advancement Act
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Congressional Review Act

I. General Information

A. Does this action apply to me?

    Entities potentially affected by this final action consist of 
owners and operators of facilities included in the following source 
categories that are located, or planning to locate, in Indian country 
as defined in 18 U.S.C. 1151 where there is no EPA-approved program in 
place and that are subject to the requirements of the program:

                       Table 1--Source Categories
------------------------------------------------------------------------
                                 North American
                                    Industry       Examples of regulated
       Industry category         Classification          entities
                                     System
------------------------------------------------------------------------
HMA Facilities................            324122  Asphalt Shingles and
                                                   Coating Materials
                                                   Manufacturing.
                                          324121  Asphalt Paving Mixture
                                                   and Block
                                                   Manufacturing.
SQCS Facilities...............            212311  Dimension Stone Mining
                                                   and Quarrying.
                                          212312  Crushed and Broken
                                                   Limestone Mining and
                                                   Quarrying.
                                          212313  Crushed and Broken
                                                   Granite Mining and
                                                   Quarrying.
                                          212319  Other Crushed and
                                                   Broken Stone Mining
                                                   and Quarrying.
                                          212321  Construction Sand and
                                                   Gravel Mining.
Auto Body Repair and                      811121  Automotive Body,
 Miscellaneous Surface Coating                     Paint, and Interior
 Operations.                                       Repair and
                                                   Maintenance.
                                          332812  Metal Coating,
                                                   Engraving (Except
                                                   Jewelry and
                                                   Silverware), and
                                                   Allied Services to
                                                   Manufacturers.

[[Page 25069]]

 
GDFs..........................              4471  Gasoline Stations.
                                           44711  Gasoline Stations
                                                   without Convenience
                                                   Stores.
                                          447110  Gasoline Stations with
                                                   Convenience Stores.
                                           44719  Other Gasoline
                                                   Stations.
                                          447190  Other Gasoline
                                                   Stations.
Petroleum Dry Cleaning                    812320  Dry Cleaning and
 Facilities.                                       Laundry Services
                                                   (Except Coin-
                                                   Operated).
                                          812310  Coin-Operated
                                                   Laundries and Dry
                                                   Cleaners.
------------------------------------------------------------------------

    This list is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be potentially affected 
by this action. To determine whether your facility could be affected by 
this action, you should examine the applicability criteria in the final 
federal minor NSR program for Indian country, 40 CFR 49.153. If you 
have any questions regarding the applicability of this action to a 
particular entity, contact the person listed in the FOR FURTHER 
INFORMATION CONTACT section.

B. Where can I get a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this final rule is posted in the regulations and standards section of 
our NSR home page located at http://www.epa.gov/nsr and on the tribal 
NSR page at http://www.epa.gov/air/tribal/tribalnsr.html.

II. Overview of the Final Rule

    In July 2011, the EPA issued the Federal Minor New Source Review 
Program in Indian Country rule \1\ (the Federal Indian Country Minor 
NSR rule or Rule) that established, among other things, the 
requirements and process for the preconstruction permitting of minor 
sources in Indian country. Under the Rule, existing true minor sources 
were required to register with the EPA by March 1, 2013. True minor 
sources that commence construction after the Rule's effective date must 
also register within certain timeframes spelled out in the Rule (40 CFR 
49.160). In addition, beginning September 2, 2014, an owner or operator 
must obtain a preconstruction permit from the reviewing authority \2\ 
if the owner/operator will construct a new true minor source,\3\ will 
modify an existing true minor source in Indian country, or will modify 
an existing major source in Indian country. In addition, existing 
synthetic minor sources \4\ beginning construction of minor 
modifications were required to obtain preconstruction permits under the 
rule beginning August 30, 2011. The rule also specified the process and 
requirements for using general permits as a streamlined permitting 
approach to authorize construction and modifications at true minor 
sources. General permits streamline the preconstruction permitting of 
new or modified true minor sources because they involve the issuance of 
one permit that can apply to multiple stationary sources that have 
similar emissions units.
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    \1\ ``Review of New Sources and Modifications in Indian 
Country,'' U.S. Environmental Protection Agency, 76 FR 38748, July 
1, 2011, https://www.federalregister.gov/articles/2011/07/01/2011-14981/review-of-new-sources-and-modifications-in-indian-country.
    \2\ In this document, reviewing authority refers to an EPA 
Regional Office. However, tribes can become reviewing authorities if 
they decide to assist the EPA with implementation of the minor NSR 
program in their area, and the EPA delegates the authority to assist 
the EPA to the tribe.
    \3\ At 40 CFR 49.152(d), true minor source is defined as a 
source, not including the exempt emissions units and activities 
listed in Sec.  49.153(c), that emits or has the potential to emit 
regulated NSR pollutants in amounts that are less than the major 
source thresholds in Sec.  49.167 (Major NSR program for 
Nonattainment Areas) or Sec.  52.21 (Prevention of Significant 
Deterioration program), as applicable, but equal to or greater than 
the minor NSR thresholds in Sec.  49.153, without the need to take 
an enforceable restriction to reduce its potential to emit to such 
levels. The PTE includes fugitive emissions, to the extent that they 
are quantifiable, only if the source belongs to one of the 28 source 
categories listed in part 51, Appendix S, paragraph II.A.4(iii) or 
Sec.  52.21(b)(1)(iii) of 40 CFR, as applicable.
    \4\ At 40 CFR 49.152(d), synthetic minor source means a source 
that otherwise has the potential to emit regulated NSR pollutants in 
amounts that are at or above those for major sources in Sec.  
49.167, Sec.  52.21 or Sec.  71.2, as applicable, but that has taken 
a restriction so that its potential to emit is less than such 
amounts for major sources. Such restrictions must be enforceable as 
a practical matter.
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    In today's action, the EPA is finalizing the use of two types of 
minor NSR preconstruction permits to help streamline the EPA's 
permitting of true minor sources--and synthetic minor sources in select 
source categories--that construct or modify in Indian country and 
belong to one of five different source categories. The first type of 
permit is a general permit. The second type is a permit by rule, which 
is another mechanism for streamlining the issuance of preconstruction 
permits. Permits by rule use a regulatory-type structure (i.e., the 
permit requirements are codified in the Code of Federal Regulations) to 
permit sources by pre-authorizing construction and modification 
activities carried out in accordance with the codified requirements. To 
become covered by a permit by rule, as we are finalizing today, a 
source must notify the EPA that it meets the terms of coverage and is 
complying with the permit's terms and conditions but does not need 
approval of a Request for Coverage. The source must also submit its 
Notification of Coverage Form in fulfillment of the minor source 
registration requirement in the Federal Indian Country Minor NSR rule 
(40 CFR 49.160(c)(1)(iii)). Once it has done so and the reviewing 
authority has posted the Notification of Coverage Form online, the 
source may commence construction of a new source or modification of an 
existing source.
    In this final action, we are finalizing general permits for HMA 
plants and SQCS facilities. We are finalizing permits by rule for GDFs 
(except for California), auto body repair and miscellaneous surface 
coating operations, and petroleum dry cleaning facilities.\5\ For 
permits by rule, we are finalizing the regulatory framework via 
rulemaking that: (a) Defines a permit by rule; (b) explains how we will 
issue them; (c) describes the process for granting coverage; and (d) 
provides the general and specific permit terms and conditions. For all 
of the permits we are finalizing today, we are providing the following 
implementation documents and tools: Questionnaires; Instructions; 
Potential to Emit (PTE) Calculators; and Background Documents. For the 
general permits we are finalizing today, we are

[[Page 25070]]

providing Request for Coverage Forms (applications). For the permits by 
rule we are finalizing today, we are providing Notification of Coverage 
Forms.\6\
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    \5\ The general permits are available online at: http://www.epa.gov/air/tribal/tribalnsr.html and at Docket ID No. EPA-HQ-
OAR-2011-0151.
    \6\ All of the implementation documents and tools are available 
online at: http://www.epa.gov/air/tribal/tribalnsr.html.
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    In this action, the EPA is also finalizing the use of general 
permits to create synthetic minor sources for the HMA and SQCS source 
categories. We have decided to issue final general permits for these 
two categories (and not the three others) that involve more complex 
operations and multiple pollutants because the general permit approval 
process provides an opportunity for case-specific reviewing authority 
review. Because permits by rule do not provide for the same level of 
review, the EPA is not finalizing the use of permits by rule to create 
synthetic minor sources. Finally, in this action we are promulgating 
three minor amendments to the Federal Indian Country Minor NSR rule. 
One amendment will allow sources to use a general permit immediately 
upon the permit becoming final.\7\ The second and third amendments 
ensure that it is clear the permit by rule is an option available to 
true minor sources that are required to obtain a minor NSR permit.
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    \7\ Under the current Rule, a general permit becomes final 
either when the time for challenging the permit has expired or the 
review process for challenging a permit has been completed and the 
permit has been upheld. See 40 CFR 49.159.
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III. Background

A. Federal Indian Country Minor NSR Rule

1. What is the Federal Indian Country Minor NSR rule?
    On August 21, 2006, the EPA proposed the regulation: ``Review of 
New Sources and Modifications in Indian Country'' (commonly referred to 
as the Federal Indian Country NSR rule).\8\ Within this proposed 
regulation, the EPA proposed to protect air quality in Indian country, 
as defined in 18 U.S.C. 1151, by establishing a federal implementation 
plan (FIP) program to regulate, among other matters, the modification 
and construction of minor stationary sources consistent with the 
requirements of section 110(a)(2)(c) of the Clean Air Act (CAA). We 
refer to this part of the Federal Indian Country NSR rule as the 
Federal Indian Country Minor NSR rule. Under the Federal Indian Country 
Minor NSR rule, we proposed to fill a regulatory gap and provide a 
mechanism for issuing preconstruction permits for the construction of 
new minor sources and certain modifications of major and minor sources 
in Indian country. We promulgated final rules on July 1, 2011,\9\ and 
the FIP became effective on August 30, 2011.
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    \8\ ``Review of New Sources and Modifications in Indian 
Country,'' U.S. Environmental Protection Agency, 71 FR 48696, August 
21, 2006, http://www.gpo.gov/fdsys/pkg/FR-2006-08-21/html/06-6926.htm.
    \9\ ``Review of New Sources and Modifications in Indian 
Country,'' U.S. Environmental Protection Agency, 76 FR 38748, July 
1, 2011, https://www.federalregister.gov/articles/2011/07/01/2011-14981/review-of-new-sources-and-modifications-in-indian-country.
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    The Federal Indian Country Minor NSR rule applies to new and 
modified minor stationary sources and to minor modifications at 
existing major stationary sources located in Indian country \10\ where 
there is no EPA-approved program in place. Tribes can elect to develop 
and implement their own EPA-approved program under the Tribal Authority 
Rule,\11\ but they are not required to do so.\12\ In the absence of an 
approved tribal program, EPA implements this program. Alternatively, 
tribes can take delegation of the program from EPA and become the 
reviewing authority.
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    \10\ The Federal Indian Country Minor NSR rule defines ``Indian 
country'' to include three categories of lands consistent with 18 
U.S.C. 1151, i.e., Indian reservations, dependent Indian 
communities, and Indian allotments. The U.S. Court of Appeals for 
the District of Columbia Circuit vacated the rule with respect to 
non-reservation areas of Indian country (i.e., dependent Indian 
communities and Indian allotments) (Oklahoma Dept. of Environmental 
Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014)). The court held that 
the state, not tribes or the EPA, has initial primary responsibility 
for implementation plans under Clean Air Act section 110 in non-
reservation areas of Indian country in the absence of a 
demonstration of tribal jurisdiction by the EPA or a tribe. The 
rule, therefore, does not apply in non-reservation areas of Indian 
country unless a tribe or the EPA has demonstrated that a tribe has 
jurisdiction in a particular non-reservation area of Indian country.
    \11\ To develop and implement an EPA-approved program, under the 
Tribal Authority Rule a tribe must meet four requirements: (1) be a 
federally-recognized tribe, (2) have a functioning government, (3) 
have the legal authority and (4) have the capacity to run the 
program. For more information go to: ``Indian Tribes: Air Quality 
Planning and Management,'' U.S. Environmental Protection Agency, 63 
FR 7254, February 12, 1998, http://www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/98-3451.pdf.
    \12\ Under tribal law, tribes can also establish permit fees 
under a tribal permitting program as do most states.
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    Beginning September 2, 2014, any new stationary sources that will 
emit, or will have the PTE, a regulated NSR pollutant in amounts that 
will be: (a) Equal to or greater than the minor NSR thresholds, 
established in the Federal Indian Country Minor NSR rule; and (b) less 
than the amount that would qualify the source as a major source or a 
major modification for purposes of the Prevention of Significant 
Deterioration (PSD) or nonattainment major NSR programs, must apply for 
and obtain a minor NSR permit before beginning construction of the new 
source. Likewise, any existing stationary source (minor or major) must 
apply for and obtain a minor NSR permit before beginning construction 
of a physical or operational change that will increase the allowable 
emissions of the stationary source by more than the specified threshold 
amounts, if the change does not otherwise trigger the permitting 
requirements of the PSD or nonattainment major NSR program(s).\13\
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    \13\ A source may, however, be subject to certain monitoring, 
recordkeeping and reporting (MRR) requirements under the major NSR 
programs, if the change has a reasonable possibility of resulting in 
a major modification. A source may be subject to both the Federal 
Indian Country Minor NSR rule and the reasonable possibility MRR 
requirements of the major NSR program(s).
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    Among other things, the Federal Indian Country Minor NSR rule 
created a framework for the EPA to streamline the issuance of 
preconstruction permits to true minor sources by using general permits.
2. What is a true minor source and how does it differ from a synthetic 
minor source?
    ``True minor source,'' under the Federal Indian Country Minor NSR 
rule means a source that emits, or has the potential to emit, regulated 
NSR pollutants in amounts that are less than the major source 
thresholds under either the PSD Program at 40 CFR 52.21, or the Federal 
Major New Source Review Program for Nonattainment Areas in Indian 
Country at 40 CFR 49.166-49.173, but equal to or greater than the minor 
NSR thresholds in Sec.  49.153, without the need to take an enforceable 
restriction to reduce its PTE to such levels. A source's PTE includes 
fugitive emissions, to the extent that they are quantifiable, only if 
the source belongs to one of the 28 source categories listed in part 
51, Appendix S, paragraph II.A.4(iii) or Sec.  52.21(b)(1)(iii) of 40 
CFR, as applicable. By contrast, ``synthetic minor source'' means a 
source that otherwise has the potential to emit regulated NSR 
pollutants in amounts that are at or above those thresholds for major 
sources, but that has taken a restriction so that its PTE is less than 
such amounts. Such restrictions must be enforceable as a legal and 
practical matter.
3. What is a general permit?
    A general permit, for purposes of this action, is a permit document 
that contains standardized requirements that

[[Page 25071]]

multiple stationary sources can use. The Federal Indian Country Minor 
NSR rule specified the process and requirements for using general 
permits to authorize construction and modifications at minor sources as 
a streamlined permitting approach. The EPA may issue a general permit 
for categories of emissions units or stationary sources that are 
similar in nature, have substantially similar emissions, and would be 
subject to the same or substantially similar permit requirements.\14\ 
``Similar in nature'' refers to size, processes, and operating 
conditions. The purpose of a general permit is to provide for 
protection of air quality while simplifying the permitting process for 
similar minor sources. General permits offer a cost-effective means of 
issuing permits and provide a quicker and simpler mechanism for 
permitting minor sources than the site-specific permitting process.
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    \14\ ``Review of New Sources and Modifications in Indian 
Country,'' U.S. Environmental Protection Agency, 76 FR 38770, July 
1, 2011, https://www.federalregister.gov/articles/2011/07/01/2011-14981/review-of-new-sources-and-modifications-in-indian-country.
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    While the final Federal Indian Country Minor NSR rule contemplated 
issuance of general permits by the EPA Regional Offices,\15\ we have 
determined (for the permits on which we are taking final action) that a 
nationwide action is appropriate. Through this action, we are 
finalizing general permits to serve as preconstruction permit 
authorizations that contain emission limitations and other restrictions 
to govern how sources construct, modify and operate.
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    \15\ If a tribe develops an EPA-approved implementation plan, 
then under that plan it could also issue its own general permits.
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4. What is a permit by rule?
    Like a general permit, a permit by rule is a standard set of 
requirements that can apply to multiple stationary sources with similar 
emissions characteristics. For purposes of this action, a permit by 
rule would differ from a general permit in that the agency would codify 
a permit by rule directly into the Federal Indian Country Minor NSR 
rule. The process for a source to gain coverage under a permit by rule 
is more streamlined compared to a general permit, or a site-specific 
permit. The permits by rule program establishes a more streamlined 
notification of coverage process that allows an individual applicant to 
notify the reviewing authority that it meets the eligibility criteria 
for the permit and the permit conditions rather than have to go through 
a reviewing authority review and approval process. This 
``notification'' process streamlines permitting for eligible sources 
and makes it easier for the reviewing authority to implement the permit 
by rule program compared to traditional site-specific permits and 
standard general permits.

B. General Permits and Permits by Rule for the Federal Minor New Source 
Review Program in Indian Country--Proposed Rule

1. What was in the proposed rule?
    On January 14, 2014 (79 FR 2545), the EPA published a proposed 
rule, ``General Permits and Permits by Rule for the Federal Minor New 
Source Review Program in Indian Country,'' to simplify the CAA 
permitting process for five source categories: HMA plants, SQCS 
facilities, auto body repair and miscellaneous surface coating 
operations, GDFs (except in California), and petroleum dry cleaning 
facilities.\16\ The proposed action is intended to ensure that air 
quality in Indian country is protected by facilitating the 
implementation of the Federal Indian Country Minor NSR rule issued by 
the EPA in July 2011.
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    \16\ On July 17, 2014, the EPA published a second proposed rule 
to simplify the permitting process for six source categories: 
Concrete batch plants, boilers, stationary spark ignition engines, 
stationary compression ignition engines, graphic arts and printing 
operations, and sawmills. This second proposed rule can found at: 
``General Permits and Permits by Rule for the Federal Minor New 
Source Review Program in Indian Country,'' 79 FR 41846, July 17, 
2014, http://www.gpo.gov/fdsys/pkg/FR-2014-07-17/pdf/2014-16814.pdf. 
EPA will finalize permits for these six source categories in a 
separate action.
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    As the preferred approach, the EPA proposed draft general permits 
for new or modified minor sources in the following five categories of 
emission sources: HMA plants, SQCS facilities, GDFs, auto body repair 
and miscellaneous surface coating operations, and petroleum dry 
cleaning facilities. As an alternative approach, we proposed a permit 
by rule for new or modified minor sources in three of the five source 
categories: GDFs, auto body repair and miscellaneous surface coating 
operations, and petroleum dry cleaning facilities. We also proposed 
five changes to the following provisions in the Federal Indian Country 
Minor NSR rule: Sec.  49.151(c)(1)(iii)(B); Sec.  49.156(e); and Sec.  
49.160(c)(1)(ii) and (c)(1)(iii). The changes are:
    (a) Shortening the general permit application review process from 
90 to 45 days for certain source categories;
    (b) Adjusting the deadline by which minor sources covered by a 
general permit need to obtain a preconstruction permit;
    (c) Extending the permitting deadline for true minor sources within 
the oil and gas source category;
    (d) Removing a provision to make clear that sources may seek 
coverage under a general permit as soon as it is effective and need not 
wait an additional 4 months; and
    (e) Adjusting the deadline for oil and gas sources for certain 
registration-related requirements to be consistent with the proposed 
permitting deadline extension.
2. Previously Finalized Actions From the January 14, 2014, Proposal
    In a final rulemaking dated May 22, 2014, and published June 16, 
2014,\17\ the EPA amended the Federal Indian Country Minor NSR rule by 
finalizing the following three actions:
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    \17\ ``Review of New Sources and Modifications in Indian Country 
Amendments to the Registration and Permitting Deadlines for True 
Minor Sources,'' 79 FR 34231, June 16, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/2014-14030.pdf.
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     Adjusted the deadline by which minor sources covered by a 
general permit need to obtain a preconstruction permit by eliminating a 
requirement for all true minor sources that begin operation before 
September 2, 2014, to obtain a minor NSR permit 6 months after the EPA 
publishes a general permit (no general permits have been finalized to 
date, so the provision is now moot; item (b) above) (Sec.  
49.151(c)(1)(iii)(B));
     Extended the permitting deadline for true minor sources 
within the oil and gas source category (item (c) above) (Sec.  
49.151(c)(1)(iii)(B)); and
     Adjusted the deadline for oil and gas sources for certain 
registration-related requirements to be consistent with the proposed 
permitting deadline extension (item (e) above) (Sec.  
49.151(c)(1)(iii)(A); Sec.  49.160(c)(1)(ii) and (c)(1)(iii)).

IV. Final Rulemaking Action

    This section outlines the major areas where we sought comment in 
the January 14, 2014, proposal, highlights our responses and describes 
our final action in those areas. The complete Response to Comments 
Document (RTC) can be found in docket EPA-HQ-OAR-2011-0151 and contains 
more detailed summaries of the comments we received and our responses 
to them. As noted in Section III. Background, we have already responded 
to some of the comments made on the January 14, 2014, proposal in the 
final action we took on May 22, 2014. In addition, as noted below, we 
will address comments related to the permitting of minor sources in the 
oil and natural gas sector in the context of the EPA's follow up to

[[Page 25072]]

an Advance Notice of Proposed Rulemaking \18\ (ANPR). In the ANPR, we 
sought feedback on how to address minor source NSR permitting for oil 
and natural gas sources in Indian country.
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    \18\ ``Managing Emissions from Oil and Natural Gas Production 
Indian Country,'' 79 FR 32502, June 5, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-06-05/pdf/2014-12951.pdf.
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A. Permit Documents and Implementation Tools

1. Proposed Rule
    As our preferred approach, the EPA proposed general permits for use 
in Indian country pursuant to the Federal Indian Country Minor NSR rule 
for new or modified minor sources in the following five source 
categories: HMA plants, SQCS facilities, auto body repair and 
miscellaneous surface coating operations, GDFs, and petroleum dry 
cleaning facilities. In the alternative, we also proposed permits by 
rule for use in Indian country for new or modified minor sources for 
three of the five source categories: Auto body repair and miscellaneous 
surface coating operations, GDFs, and petroleum dry cleaning 
facilities. Overall, we sought comment on all aspects of the permit 
documents and implementation tools for these five source categories. 
Specifically, Section VI. Summary of Specific Terms and Conditions of 
the General Permits and Request for Comment of the January 14, 2014, 
proposal, provided a summary of the specific terms and conditions of 
the general permits and indicated specific areas where we requested 
comment. Detailed responses to the comments on the permits and related 
tools and documents are addressed in Sections 3.1 to 3.5 of the RTC 
Document.\19\
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    \19\ The document is available online at: http://www.epa.gov/air/tribal/tribalnsr.html and at: Docket ID No. EPA-HQ-OAR-2011-
0151.
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2. Final Action, Comments and Responses
    This section provides a brief summary of what the EPA considers to 
be the most significant comments received and our responses to those 
comments. Overall, on our January 14, 2014, proposal, we received 26 
comments: 13 from industry (or their representatives), 11 from tribes 
(or their representatives), 1 from a local air quality agency and 1 
from a state environmental agency.
    Overall, based in part on our review of the comments, in this final 
action the EPA is issuing general permits for two source categories: 
HMA plants and SQCS facilities. These are available at: http://www.epa.gov/air/tribal/tribalnsr.html. We are also promulgating permits 
by rule for three source categories: Auto body repair and miscellaneous 
surface coating operations, GDFs, and petroleum dry cleaning 
facilities. These are available in this Federal Register notice and 
will be codified at 40 CFR 49.162. For all of these permits, the 
implementation tools and documents are available at: http://www.epa.gov/air/tribal/tribalnsr.html. The tools and documents are: 
Request for Coverage Forms (applications for general permits); 
Notification of Coverage Forms (permits by rule); Questionnaires; 
Instructions; PTE Calculators and Background Documents.
    The following sections provide an abbreviated summary of 
significant comments on the proposed draft permits for the five source 
categories addressed in this final rule and our responses. In our final 
action, based in part on our review of the comments, we have made 
changes to the terms and conditions for the two draft general permits 
and the three proposed permits by rule and to the related 
implementation tools in the following areas: Setback requirements; 
throughput limits; various control requirements; and enhancements and 
clarifications to the implementation tools.
(a) Overview of Changes to Implementation Tools and Permits
    In response to public comments, we are making the following changes 
to the implementation tools:
    (1) Retitled the implementation tools for the three categories for 
which we are promulgating permits by rule to reflect that they are not 
general permits but are, in fact, permits by rule;
    (2) For the Notification of Coverage Forms for the three permits by 
rule we are promulgating today, we have added requirements for (a) a 
list of equipment that will be present at the new or modified source; 
(b) PTE; (c) at existing sources, estimated annual emissions based on 
actual operating conditions and equipment \20\ to satisfy the minor 
source registration requirement of Sec.  49.160; and (d) clarified that 
sources covered by the permits by rule must also register under Sec.  
49.160 and that submittal of the Notification of Coverage Form 
satisfies that requirement;
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    \20\ Estimates of emissions take into account equipment, 
operating conditions, and air pollution control measures and are 
calculated using the actual operating hours, production rates, in-
place control equipment, and types of materials processed, stored, 
or combusted during the preceding calendar year.
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    (3) For the permits by rule, we have separated the screening 
processes from the Notification of Coverage Forms and created a 
separate document, ``Procedures to Address Threatened and Endangered 
Species and Historic Properties for New or Modified True Minor Sources 
in Indian Country Seeking Air Quality Permits by Rule'';
    (4) For the Request for Coverage Forms for the two general permits 
we are promulgating today, we have added a request for estimates of PTE 
and, at existing sources, actual emissions to satisfy the minor source 
registration requirement of Sec.  49.160; clarified that sources 
covered by the general permits rule must also register under Sec.  
49.160 (submittal of the Request for Coverage Form satisfies that 
requirement); and added a section in which a source can list multiple 
source locations in which a portable source is planning to locate and 
for which it wants reviewing authority approval;
    (5) For the instructions and questionnaires, we have made the 
changes necessary to reflect the changes made to the Notification of 
Coverage Forms and Request for Coverage Forms;
    (6) For the questionnaires, to avoid confusion and redundancy with 
the eligibility criteria provided in the Notification of Coverage Forms 
and Request for Coverage Forms, we have removed the list of eligibility 
criteria at the front of the documents; and
    (7) For the background documents, we have made the changes 
necessary to reflect the changes made to permit requirements in areas 
such as setbacks and throughput limits (see Sections IV.F. and IV.G. 
below for more detail).
    In addition, we have made some changes in the permits being 
finalized in this action as a result of comments received on the July 
17, 2014, proposed rule we issued for general permits and permits by 
rule in Indian country.\21\ These changes concern general provisions in 
the permits and, thus, need to be reflected in all of the final permits 
from both proposals. One commenter stated that the condition in the 
draft general permits concerning Notification of Change in Ownership is 
unclear in establishing whether it is the responsibility of the new 
permittee or the old permittee to comply with the notification 
requirements. The same commenter requested that certain conditions of 
the draft general permit be clarified to cover situations in which 
there is a change of operator, but the ownership of the equipment is 
the same. In response to the comments, the EPA has clarified in the 
permits for the five source categories covered by this action that it 
is the responsibility of the new

[[Page 25073]]

permittee to submit a written or electronic notice to the reviewing 
authority within 90 days before or after the change in ownership is 
effective. For the permits, we have also modified two Change in 
Ownership conditions \22\ that appear in Sec. Sec.  49.162(d)(5)(ii), 
49.163(d)(5)(ii), and 49.164(d)(5)(ii) to include the word ``operator'' 
to clarify that these conditions also cover a change in operators where 
ownership of the equipment is the same.
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    \21\ ``General Permits and Permits by Rule for the Federal Minor 
New Source Review Program in Indian Country,'' 79 FR 41846, July 17, 
2014, http://www.gpo.gov/fdsys/pkg/FR-2014-07-17/pdf/2014-16814.pdf.
    \22\ The Change in Ownership condition in Section 6 of the 
proposed permits by rule has been dropped from the final permits by 
rule because there is no Approval of Coverage to change for permits 
by rule.
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    One commenter stated that the term ``Responsible Official'' should 
be defined to ensure truth, accuracy and completeness of required 
reports. In response to the comment, EPA has added a definition of 
Responsible Official to each of the final permits.
    Two commenters supported the proposed rule's approach of requiring 
each source to post the current approval of the Request for Coverage 
and to label each affected emissions unit and associated air pollution 
control technology with the identification numbers listed in the 
approval. One commenter recommended that the General Permit and the 
most current approval of the Request for Coverage for the permitted 
source ``must be made available immediately upon request,'' as opposed 
to ``must be posted.'' The commenter stated that it was not necessary 
to label the air pollution control equipment as the description and 
serial numbers are provided in the application. The EPA acknowledges 
the support of the commenters with respect to posting the Approval of 
the Request for Coverage. Upon review of comments received related to 
the posting of the General Permit in addition to the Approval of the 
Request for Coverage, EPA is revising the permits to exclude the 
requirement that the General Permit must be posted. Posting of the 
Approval of the Request for Coverage is required under 40 CFR 
49.156(e)(6), but the General Permit itself is not required under the 
regulation to be posted and only needs to be available on site as 
needed. Regarding the labeling of emission units and air pollution 
control equipment, identification and labeling of these units is needed 
to facilitate identification of equipment covered under the General 
Permit by any potential inspectors. Therefore, EPA is finalizing the 
labeling requirements as proposed.
(b) Hot Mix Asphalt Plants and Stone, Quarrying, Crushing, and 
Screening Facilities
    The EPA received numerous comments \23\ on the draft General Air 
Quality Permit for New or Modified True Minor Source Hot Mix Asphalt 
Facilities in Indian Country and the related implementation tools.
---------------------------------------------------------------------------

    \23\ Comments received on throughput limits and setback 
requirements for the HMA plants and SQCS facilities general permits 
are addressed in Sections IV.F. and IV.G., respectively.
---------------------------------------------------------------------------

    One commenter recommended that the EPA use South Coast Air Quality 
Management District (SCAQMD) documents to develop some of the standards 
for asphalt plant equipment. We did consider SCAQMD rules when we 
developed some of the nonattainment area emission requirements in the 
HMA general permit because many of the nation's tribal nonattainment 
areas are in California. One commenter recommended that asphalt batch 
plants, process heaters, and storage tanks also be subject to Best 
Available Control Technology (BACT \24\). We agree that additional 
requirements for combustion units and asphalts tanks at HMA plants 
planning to locate or modify in nonattainment areas is appropriate and, 
accordingly, have modified the HMA general permit to include additional 
requirements for combustion units and asphalt tanks for nonattainment 
areas.
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    \24\ For federal purposes, BACT is a requirement for major 
sources under the PSD Program. However, the term is being used as it 
is used by the SCAQMD air program in the context of minor source NSR 
permitting in nonattainment areas.
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    One commenter recommended that the EPA add a requirement for hot 
asphalt conveying, mixing, and truck load out to have ``Blue Smoke 
Control.'' The EPA considers the proposed opacity limits and weekly 
opacity monitoring requirements to be adequate for controlling visible 
emissions from HMA facilities. Two commenters stated that the 
requirements to submit annual compliance and deviation reports are 
overly cumbersome when compared to state requirements applicable 
immediately outside reservations. The EPA notes that the provision 
requiring submittal of annual compliance monitoring and deviation 
reports is included in the Federal Indian Country Minor NSR rule itself 
and is, therefore, properly included in general permits.
    Commenters noted that, while the EPA used existing state general 
permits as the standard for the proposed HMA general permit, it picked 
more stringent permit requirements from the state permits reviewed, and 
created overly burdensome and duplicative requirements, creating an 
economic disadvantage for operators on tribal lands. The EPA notes that 
the primary purpose of a preconstruction review program is to protect 
air quality. The EPA believes that establishing a reasonable level of 
equality between what is required of sources locating in Indian country 
and sources locating outside of Indian country is an important 
secondary consideration; however, it is challenging to develop a single 
general permit for use across all tribal lands that would adequately 
protect air quality and create a perfectly level playing field.
    Two commenters stated that the EPA failed to recognize that many 
HMA plants are portable in operation, and that the proposed general 
permit does not allow the flexibility necessary to easily relocate HMA 
plants. The EPA notes that the proposed HMA general permit includes 
provisions allowing relocation of the HMA facility as long as the 
alternate location(s) is (are) identified in the Approval of the 
Request for Coverage. For HMA facilities (and SQCS facilities), three 
commenters recommended that the EPA adopt an approach based on 
generalized relocation criteria that would not require identification 
of specific locations. The EPA disagrees with the commenters. The 
purpose of the preconstruction permitting program is to protect air 
quality and a determination of whether that goal is actually being met 
is dependent on knowing where a particular facility is going to be 
located. The EPA has, however, revised the Request for Coverage Form to 
clarify that the applicant may identify multiple locations for which 
the applicant is seeking coverage under the General Permit, including 
potential future locations.
    One commenter stated that requiring operators to submit to the EPA 
a notice of construction each time the facility begins or resumes 
operations provides unnecessary enforcement risk to operators on tribal 
lands and should be stricken from the proposed HMA general permit. The 
EPA considers these notifications necessary to document when the 
requirements in the permit become applicable. Two commenters 
recommended that the EPA recognize an existing stack test on the same 
facility approved by an adjoining state agency, as stack tests are 
expensive, and the HMA industry has thin (profit) margins, creating an 
economic disadvantage for operators on tribal lands. The EPA has 
determined that it will allow a previous performance test that meets 
the performance test requirements

[[Page 25074]]

identified in the HMA general permit to be used in lieu of an initial 
performance test, as long as conditions that might affect the 
facility's performance have not changed since the previous performance 
test was conducted.
    One commenter stated that the restriction on HMA plants locating in 
severe and extreme ozone nonattainment areas and serious carbon 
monoxide (CO) nonattainment areas would place a restraint on any Indian 
tribe in these areas that might want to establish or attract an HMA 
plant for economic development purposes. The EPA notes that in severe 
and extreme ozone nonattainment areas, the air quality is already 
considerably degraded and that any additional impacts associated with a 
new facility must, therefore, be carefully evaluated before allowing 
construction to proceed. Although the EPA considered throughput limits 
for facilities locating in severe and extreme ozone nonattainment 
areas, we determined that these limits would need to be set at very low 
levels and would not provide sufficient flexibility for sources. The 
EPA revised the proposed HMA general permit to allow sources locating 
in serious CO nonattainment areas to be eligible for the permit, but 
maintained the exclusion for severe and extreme ozone nonattainment 
areas.
    Two commenters noted that the proposed HMA permit requirements 
create major-source like requirements for true minor sources and 
synthetic minor sources, and noted that the proposed HMA general permit 
is a very complex permit for a not very complex industry. The EPA 
believes that the conditions in the general permit for this source 
category are appropriate. The complexity of this source category is 
demonstrated by there being multiple pieces of equipment and/or 
processes and pollutants and it being typically collocated with SQCS 
facilities. Protecting air quality for sources in such a source 
category necessitates a more comprehensive and specific set of 
emissions limitations and standards and associated requirements. It is 
important to also keep in mind that a comparison of the requirements in 
the EPA's proposed HMA general permit and the limits listed in 
Attachment A of the HMA background document \25\ demonstrate that the 
EPA's proposed general permit for HMA plants is not the most stringent, 
nor the least stringent, in the country for HMA plants. The EPA's 
limits on throughput, fuel use, fuel sulfur content, nitrogen oxides 
emissions, CO emissions, and particulate matter (PM) emissions for 
attainment, unclassifiable or attainment/unclassifiable areas are all 
within the range of limits established by states in their general 
permits.
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    \25\ The background documents are available online at: http://www.epa.gov/air/tribal/tribalnsr.html and at Docket ID No. EPA-HQ-
OAR-2011-0151.
---------------------------------------------------------------------------

    Two commenters noted that the EPA did not provide any opportunity 
to use on-specification waste oil or used oil, which is common in the 
asphalt industry, and could create an economic disadvantage for 
operators on tribal lands. Another commenter stated that the HMA permit 
sulfur content limit for liquid fuels (<0.0015 percent sulfur) is a 
very stringent on-road fuel standard being applied to stationary or 
non-road equipment, and that this creates a disadvantage for operations 
on tribal land. The EPA has accounted for the use of waste oil and 
recycled oil in the definition of ``distillate fuel'' in Attachment B 
to the final General Permit.\26\ ``Distillate fuel'' is defined as 
``fuel oils, including recycled oils that comply with the 
specifications for fuel oil numbers 1 and 2, as defined by ASTM 396, or 
equivalent.'' Regarding sulfur content limits, we have limited the 
sulfur content for all fuels used to less than 0.0015 percent sulfur in 
order to maintain consistency with the current fuel standards for 
sulfur in 40 CFR 80.510, which are already required for engines under 
NSPS subpart IIII (Stationary Compression Ignition Internal Combustion 
Engines) and National Emission Standards for Hazardous Air Pollutants 
(NESHAP) subpart ZZZZ (Stationary Reciprocating Internal Combustion 
Engines). One commenter noted that the EPA created duplicative 
requirements for engines that already have extensive federal 
requirements applicable through EPA engine standards: NSPS, Maximum 
Achievable Control Technology (MACT), and on-road engine rules. The EPA 
acknowledges that the permit includes requirements for engines that are 
covered by NSPS and NESHAP engine rules. However, we did not simply 
duplicate the NSPS and NESHAP requirements in the permits. Instead, we 
conducted a case-by case control technology review of the source 
category and established engine requirements that are consistent with 
the NSPS and NESHAP requirements. This approach is consistent with the 
requirement of the Federal Indian Country Minor NSR rule, which 
requires that each permit include applicable emission limitations that 
assure each affected emissions unit will comply with all requirements 
of parts 60, 61 and 63.
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    \26\ The final general permits are available online at: http://www.epa.gov/air/tribal/tribalnsr.html and at Docket ID No. EPA-HQ-
OAR-2011-0151.
---------------------------------------------------------------------------

    One commenter stated that fuel consumption limits are overly 
burdensome and unnecessary for determining compliance with the HMA 
general permit, and recommended that they be removed from the General 
Permit. The EPA is retaining the fuel consumption limits in the final 
general permit in lieu of ton-per-year emission limits because tracking 
fuel use is easier for sources and, thus, reduces the burden of having 
to calculate and track emissions. Two commenters noted that the EPA did 
not provide any allowance or justification for not allowing wet 
scrubbers for particulate controls when they may be allowed on 
adjoining state lands, creating an economic disadvantage for operators 
on tribal lands. The EPA agrees with the commenter and has added 
provisions to the HMA general permit to allow for the use of a wet 
scrubber in appropriate circumstances. One commenter recommended that 
the EPA remove the provision requiring that extra bags and spare parts 
be maintained onsite, and allow operators the choice to shut down a 
facility that has a torn bag in the baghouse until a replacement is 
transported to the site. The EPA agrees with the commenter and has 
modified the permit to suggest the permittee maintain extra bags and 
spare parts on site to ensure timely repair. However, replacements bags 
can be transported on site when needed. In either case, the permittee 
must shut down the facility until a replacement bag is installed.
    The EPA received numerous comments on the draft General Permit for 
New or Modified True Minor Source Stone Quarrying, Crushing and 
Screening Facilities in Indian Country and the related implementation 
tools. Two commenters stated that a monthly total emissions limitation 
based on a 30-day rolling total would be appropriate since an SQCS 
facility can relocate much like an HMA plant, and even perhaps to an 
area in nonattainment for PM10. One commenter recommended 
that, as an alternative, the EPA could retain the 12-month period 
limits on raw material throughput but establish different throughput 
production limits for areas in attainment and for areas in serious, 
severe, or extreme nonattainment for PM.\27\ The EPA has considered the 
commenters' suggestion

[[Page 25075]]

and agrees that the approach used in the HMA general permit is 
appropriate for SQCS facilities since they often also need to relocate 
and are frequently collocated with HMA plants. The EPA replaced the 
proposed annual throughput limit with monthly throughput limits for 
both raw material and fuel. The limits are set at a level which will 
generally keep the combined emissions of a collocated SQCS facility and 
a HMA plant at a level that does not trigger title V applicability (see 
Section IV.K. Use of More Than One General Permit and/or Permit by Rule 
for a Source at a Single Location). The general permits for both HMA 
plants and SQCS facilities are written for use by both true minor 
sources and synthetic minor sources. The permits contain one set of 
requirements for each that apply to true minor sources and synthetic 
minor sources and include a margin of safety between the permitted 
throughput limit and the major source thresholds (see Section IV.I. Use 
of General Permits and Permits by Rule to Create Synthetic Minor 
Sources). In addition, the control technology determinations proposed 
are contained in the final general permits. They cover a myriad of 
emissions points at sources in these categories, including engines, 
mixers, dryers, and heaters.
---------------------------------------------------------------------------

    \27\ Subpart 4, which contains the provisions governing 
requirements for PM nonattainment areas, provides for only moderate 
and serious classifications.
---------------------------------------------------------------------------

    One commenter recommended that the EPA consider SCAQMD Rule 1157 to 
address particulate emissions from SQCS equipment. The EPA has reviewed 
Rule 1157 and notes that the draft permit conditions appear to be at 
least as stringent as those suggested by the commenter. One commenter 
noted that the draft general permit assumes that all engines used for 
this operation would be diesel-fired compression ignition engines and 
asked why provisions for spark ignition (SI) engines and the use of 
other fuels were not included. The EPA has not included provisions for 
SI engines in the final SQCS permit because the EPA believes that it is 
unlikely that many minor sources in this source category are using SI 
engines. Electricity for the motors running the crushers, screens, and 
conveyors at SQCS facilities is provided either by grid electric power 
or by diesel engines. Diesel engines are preferred in this source 
category because of their improved efficiency and reliability in these 
heavy work-intensive, industrial applications versus SI engines. In the 
EPA's view, adding SI engines to the SQCS general permit is, therefore, 
not necessary.
    One commenter recommended that the general permit reference the 
specifics of compliance such as stack testing and emission limits to 
the NSPS and MACT requirements in the federal regulations. The EPA 
notes that the emission limitations in the SQCS general permit are 
intended to ensure compliance with the applicable NSPS and NESHAPs for 
this source category, as required by the Federal Indian Country Minor 
NSR rule. However, the EPA's pre-construction permitting program under 
the Federal Indian Country Minor NSR rule is not an operating permit 
program. The terms and conditions in permits issued pursuant to the 
Federal Indian Country Minor NSR rule are enforceable independent of 
the NSPS and NESHAP requirements.
    Two commenters stated that the requirements in the SQCS permit can 
be damaging to tribal member-owned companies and may cause them to go 
out of business. The EPA does not believe that the requirements in the 
SQCS permit will be damaging to tribal member-owned companies. During 
the development of the draft permit, the EPA conducted research to 
identify, review and incorporate similar throughput limits, fuel usage 
limits, fuel sulfur limits, fugitive dust suppression methods, and 
engine emission and opacity limitations in state-issued permits. Based 
on this analysis, we have determined that the emission limitations and 
controls proposed in the general permit for both attainment and 
nonattainment areas are consistent with what is required of similarly 
located SQCS facilities across the country and, therefore, would not 
present an unfair or undue burden for tribal member-owned sources.
    The EPA received comments on whether to establish a single, 
combined permit for HMA and SQCS facilities. One commenter stated its 
preference for a permitting approach that requires each HMA plant and 
SQCS facility to request coverage under its own general permit, rather 
than placing both sources under one general permit. Another commenter 
stated that collocation of HMAs and SQCSs is quite probable, but 
believed that they cannot be combined and permitted in one permit. One 
commenter did not support offering a single permit for both facilities 
because most often it would be two different companies. One commenter 
recommended that HMAs and SQCSs be permitted separately, but when 
operated at the same location and utilizing materials from one 
operation to another that they combine (and limit) the emissions (as if 
they were one source) to protect the airshed without creating an 
emissions loophole. Another commenter recommended that a single general 
permit should be issued covering sources that are co-located in 
addition to issuing separate general permits for each source, noting 
that the requirement for co-located sources would be used to ensure 
that the two sources' combined emissions are below the major source 
thresholds.
    The EPA has considered the concerns and recommendations of 
commenters and has determined that it is appropriate to maintain 
separate permits for HMA and SQCS sources even when they are co-
located. In the final HMA and SQCS general permits, however, the EPA is 
providing alternative throughput and fuel limits for instances where an 
HMA operation and an SQCS operation are co-located and the owner/
operator wants to ensure that combined emissions are below the title V 
permitting thresholds. Each source should contact its reviewing 
authority if it intends to rely on the emission limitations and 
standards in the HMA and SQCS general permits to prevent having to 
obtain a title V permit. The Request for Coverage Forms were revised to 
allow applicants to request the co-location option.
    In addition, the co-location option for these source categories is 
not available in serious, severe and extreme ozone nonattainment areas. 
For severe and extreme areas, the co-location option is not available 
because the HMA general permit alone is not available in those areas 
because the major stationary source thresholds are very low in these 
types of areas, and we do not envision that any minor source HMA plants 
would be able to meet the thresholds through a general permit. 
Similarly, for serious areas, in trying to set co-location limits for 
these source categories that are set low enough to meet the 50 tons per 
year major source threshold for serious areas, we found that we would 
have to set the throughput limits at levels so low that we do not 
envision minor, co-located sources being able to meet the limits. In 
these cases, we believe that co-location is more appropriately handled 
for these sources thorough a site-specific permit.
(c) Auto Body Repair and Miscellaneous Surface Coating Operations
    The EPA received numerous comments on the draft General Air Quality 
Permit for New or Modified True Minor Source Auto body Repair and 
Miscellaneous Surface Coating Operations in Indian Country \28\ (the

[[Page 25076]]

Auto body General Permit) and the related implementation tools. One 
commenter recommended that, for ozone nonattainment regions, the EPA 
should consider requiring the most stringent emissions limitation or 
installation of BACT based on the requirements of the neighboring air 
district regardless of a facility's PTE or throughput, and recommended 
that the EPA use the most recent version of the SCAQMD BACT 
requirements for serious, severe, and extreme ozone nonattainment 
regions. The EPA has incorporated many of the SCAQMD BACT \29\ 
requirements, as well as amended volatile organic compound (VOC) 
content limits, into the Permit by Rule that we are finalizing for this 
source category versus a general permit. We did not include 
requirements for activities that we do not expect to be located at 
sources eligible for this permit by rule.
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    \28\ The comments we received also apply to the Air Quality 
Permit by Rule for New or Modified True Minor Source Auto body 
Repair and Miscellaneous Surface Coating Operations in Indian 
Country that the EPA proposed in the alternative. In this final 
action, we are promulgating a permit by rule for the auto body 
source category.
    \29\ For federal purposes BACT is a requirement for major 
sources under the PSD Program. However, the term is being used as it 
is used by the SCAQMD air program in the context of minor source NSR 
permitting in nonattainment areas.
---------------------------------------------------------------------------

    One commenter stated that the materials-use provisions in the draft 
Auto body General Permit are unclear, while another commenter 
recommended that the EPA specify the coating VOC content limits in 
grams per liter or pounds (lbs) per gallon, excluding water. The EPA 
based the material-use provisions in the draft Auto body General Permit 
on a worst-case VOC content limit of 8.34 lbs per gallon and then 
limited use to 5,000 gallons of materials with a VOC content of 8.34 
lbs per gallon or less per year. As recommended, the EPA has also 
specified coating content limits in grams per liter. One commenter 
recommended that an emission limit based on the Federal Indian Country 
Minor NSR rule ton per year permitting thresholds be used instead of a 
throughput limitation. The EPA chose to include limitations on material 
use in lieu of ton-per-year emission limits because tracking material 
use is easier for sources and, thus, reduces burden. The EPA's research 
of state permitting programs indicates that states are using material-
use limits for these sources.
    One commenter recommended that the EPA consider adding a 
requirement that prohibits the use of automotive coatings that contain 
cadmium or chromium to help ensure adequate public health protection. 
The Federal Indian Country Minor NSR rule permitting program does not 
provide the EPA authority to regulate hazardous air pollutants (HAPs) 
other than through the issuance of a synthetic minor permit. Therefore, 
the content limits do not address cadmium or chromium. One commenter 
recommended that the EPA add limits and work practices for stripping 
operations in the permit. The EPA notes that the recommended limits for 
stripping operations primarily address HAPs. As the EPA lacks authority 
under the NSR program to impose such limits and the commenter did not 
provide information indicating that such work practices are necessary 
for other reasons, the EPA has not included limits or work practices 
for stripping operations.
    One commenter stated that the term ``reasonable time'' is 
subjective and not easily enforceable as it pertains to reviewing 
authority information requests of permittees. This commenter 
recommended that a specific time frame should be included in the 
permit. The EPA agrees with the commenter and replaced ``reasonable 
time'' with ``30 days unless another timeframe is specified by the 
EPA.'' We have made this change in all of the final permits in this 
action. One commenter recommended that the Auto body General Permit 
identify a specific test method to ensure consistency in determining 
the efficiency of filters used in conjunction with capturing paint 
overspray in enclosed painting areas. The EPA agrees and has revised 
the permit by rule accordingly. One commenter noted that airless and 
air-assisted airless spray guns are not equivalent to high volume, low 
pressure (HVLP) spray guns and recommends that their use not be allowed 
under Section 2: Emission Limitations and Standards, Conditions 19 and 
33 of the draft general permits, unless the spray gun manufacturer can 
demonstrate that their device is capable of achieving transfer 
efficiency comparable to that of an HVLP spray gun. The EPA agrees with 
the comment in the context of serious, severe, and extreme ozone 
nonattainment areas. The more stringent requirement recommended by the 
commenter will only apply to these nonattainment areas. For other 
areas, consistency with the spray gun requirements in 40 CFR part 63 
Subpart HHHHHH is more appropriate. One commenter requested that the 
exemption for spray guns with a cup capacity of 3 fluid ounces or less 
be removed for facilities located in serious, severe or extreme ozone 
nonattainment areas. The commenter recommended continuing to exempt 
spray guns with this capacity used in air brush operations. The EPA 
agrees, and has changed the permit by rule. One commenter recommended 
that the EPA require installation and maintenance of a pressure gauge 
across each filter bank. The EPA agrees, and has revised the permit by 
rule, accordingly.
    One commenter recommended that the EPA revise the definitions for 
``Air Brush Operations,'' ``Freeboard Area,'' ``Freeboard Height'' and 
``Liquid Leak.'' The EPA agrees that the suggested changes are 
appropriate and, therefore, revised the definitions as suggested, 
except for ``Air Brush Operations'' because the term is not included in 
any of the conditions of the final Auto body Permit by Rule. One 
commenter recommended that, in the surface coating permit, the expected 
transfer efficiency of the HVLP spray gun be defined. The EPA 
disagrees. The draft Auto body General Permit defines an HVLP spray gun 
consistent with 40 CFR part 63 Subpart HHHHHH, and we prefer to 
maintain consistency with this regulation. One commenter stated that 
the materials use provisions for cold cleaning solvent in the draft 
Auto body General Permit are unclear, and recommended that an emission 
limit be used instead. The EPA believes that the requirements are 
sufficiently clear and that the materials use requirements are 
preferable to an emission limit in this context because it is far 
easier for small sources to track material use than emissions. As a 
result, the EPA is retaining material use limits in the final permit by 
rule.
    One commenter requested clarification on whether sources that do 
not exceed the permitting limit in the Federal Indian Country Minor NSR 
rule, but are subject to the MACT, still need to obtain a general 
permit. In response, the EPA notes that sources that are subject to a 
NESHAP, but whose emissions do not exceed the permitting thresholds for 
the Federal Indian Country Minor NSR rule, are not required to obtain a 
minor source permit. One commenter stated that the Auto body General 
Permit requires the permittee to keep records of the VOC and HAP 
content of the solvent used in a solvent degreaser, but asked why the 
permittee would need to keep records when there are no limits on the 
VOC content of the solvents. The EPA agrees and revised these 
recordkeeping requirements to require the Material Safety Data Sheet 
(MSDS) to be maintained for each solvent degreaser, consistent with the 
requirements for other VOC-containing material in the permit.
    One commenter noted that, in the notification of construction or 
modification requirement, it is not clear

[[Page 25077]]

whether the notification required for beginning operations is within 30 
days of start of construction or within 30 days after operations begin 
or resume. The EPA has revised the final Auto body Permit by Rule to 
clarify that the permittee must provide written notice within 30 days 
of beginning construction, and within 30 days of beginning initial 
operations or resuming operations after a modification.
    One commenter requested clarification on when the refresher 
training is required for spray booth operators. The EPA has updated 
Sec.  49.162(f) to the final Auto body Permit by Rule to specify that 
training must be conducted within 180 days for new hires and that 
operators must be re-certified at least every 5 years thereafter.
(d) Gasoline Dispensing Facilities
    The EPA received numerous comments on the draft General Air Quality 
Permit for New or Modified True Minor Source Gasoline Dispensing 
Facilities in Indian Country \30\ (the GDF General Permit) and the 
related implementation tools.\31\ One commenter stated that, for GDFs, 
the percent onboard refueling vapor recovery (%ORVR) estimate seems 
optimistic, and that basing applicability on throughput based on those 
assumptions may under estimate source emissions. The EPA disagrees with 
the commenter. The EPA determined the %ORVR for the vehicle fleet based 
on an agency analysis using the 2012 memorandum, ``Updated Data for 
ORVR Widespread Use Assessment,'' \32\ and believes this analysis is 
well substantiated. Therefore, the EPA has continued to rely on this 
analysis in establishing the throughput limits in the Permit by Rule 
that we are finalizing for this source category versus a general 
permit. One commenter supports the inclusion in the GDF General Permit 
of standing loss control (SLC) requirements for above ground storage 
tanks (ASTs) in those parts of Indian country that are located in 
serious, severe and extreme ozone nonattainment areas. The EPA has 
determined that SLC requirements for VOC emissions from ASTs should be 
applied to GDFs in Indian country serious, severe and extreme ozone 
nonattainment areas as we proposed. In doing this, the EPA has tried to 
balance the requirement to protect the National Ambient Air Quality 
Standards (NAAQS) with the desire to provide a level regulatory playing 
field.
---------------------------------------------------------------------------

    \30\ The comments we received also apply to the Air Quality 
Permit by Rule for New or Modified True Minor Source Gasoline 
Dispensing Facilities in Indian Country that the EPA proposed in the 
alternative. In this final action, we are promulgating a permit by 
rule for the GDF source category.
    \31\ While we did not receive comments on setting a throughput 
limit for the GDF permit by rule for marginal and moderate ozone 
nonattainment areas, we are adding one for the GDF permit by rule 
for those areas (see Section IV.F. for a fuller discussion of 
throughput limits).
    \32\ The memorandum can be found at: Docket Id. No. The EPA-HQ-
OAR-2010-1076.
---------------------------------------------------------------------------

    One commenter noted that the proposed GDF General Permit requires 
Stage I control for both underground and aboveground storage tanks and 
SLC for aboveground storage tanks, but that Stage II control is not 
required under the General Permit, even though Stage II control is 
still required in some states. The commenter recommended that the EPA 
require Stage II controls in states that still require Stage II 
controls, Phase II Enhanced Vapor Recovery (EVR) systems, and Phase II 
EVR systems in all serious, severe or extreme nonattainment areas. 
Another commenter recommended that the EPA require In-Station 
Diagnostics (ISD) for all GDFs that dispense more than 600,000 gallons 
per year. Another commenter recommended that vapor recovery systems be 
certified.
    The EPA previously issued a notice of final rulemaking to allow 
states to phase out Stage II controls for serious, severe and extreme 
ozone nonattainment areas (77 FR 28772, May 12, 2012). At that time, 
the Administrator made the determination that ORVR is in widespread 
use, and that Stage II controls could be removed to reduce costs for 
redundant control, as authorized under section 202(a)(6) of the CAA. 
The rule allowed, but did not require, states to discontinue Stage II 
vapor recovery programs. California has chosen to continue requiring 
the program. The additional emission reductions associated with the use 
of Stage II controls continue to be necessary and are required to be 
included in California plans for demonstrating how they will attain the 
NAAQS. We do not, however, anticipate any other areas in the country 
continuing to require Stage II controls at new or modified GDFs. Based 
on California's decision to continue to require the use of Stage II 
controls, and the fact that such controls are not necessary in other 
areas of the country, we have, however, determined that the use of the 
proposed permit by rule, which does not include Stage II controls, in 
California is not appropriate. As a result, while the final permit by 
rule for GDFs will not include Stage II controls, sources located in 
California will not be eligible to use the permit by rule. This 
approach will allow EPA Region 9, the current reviewing authority in 
all areas of California, to develop a general permit or permit by rule 
for areas within California that is tailored to address the unique air 
quality concerns in that area of the country. Requirements for the use 
of ISD and the certification of vapor recovery systems are not included 
in this final permit as these requirements are associated with Stage II 
systems.
    One commenter supports the exemption for tanks with less than 250 
gallon capacity. Commenters requested that the EPA modify several 
conditions in the draft GDF General Permit and Appendices to clarify 
control equipment requirements, add housekeeping measures, revise 
testing requirements, delete inconsistencies, and revise definitions. 
The EPA agrees with some of these requests and disagrees with others. 
The EPA made changes to the permit where we deemed that the change 
would strengthen the permit's ability to protect air quality. One 
commenter requested that the EPA revise the monitoring requirements in 
the draft GDF General Permit to add a requirement for the daily visual 
inspection of equipment. The EPA revised the permit to include a 
requirement for a daily visual inspection of equipment in extreme ozone 
nonattainment areas. One commenter recommended that the EPA make 
several changes in the draft general permit to Attachment C: Vapor 
Balance System Design Criteria, Management Practices, and Performance 
Testing, Paragraph 11, relating to applicability, technical references, 
and certifications for ASTs. The EPA concurs and has made the changes.
    One commenter recommended that the MACT standard for GDFs, 40 CFR 
part 63, subpart CCCCCC, should be referenced in the GDF General 
Permit, and noted that the permit conditions in the draft general 
permit are more stringent than are the MACT requirements in some 
respects. The requirements included in the permit are intended to 
harmonize with the existing NESHAP rule to the greatest extent 
possible. We have tried to maintain consistency with 40 CFR part 63, 
subpart CCCCCC to streamline the permit and to reduce burden to sources 
who may need to comply with both requirements. More stringent 
requirements were included for GDFs in certain nonattainment areas to 
protect the NAAQS.
(d) Petroleum Dry Cleaning Facilities
    The EPA received comments on the draft General Air Quality Permit 
for New or Modified True Minor Source Petroleum Dry Cleaning Facilities 
in

[[Page 25078]]

Indian Country \33\ (the Petroleum Dry Cleaning General Permit) and the 
related implementation tools. Two commenters agreed with the throughput 
limits and inspection requirements for dry cleaning facilities, while 
another commenter stated the inspection timeframes and repair deadlines 
for dry cleaning dryers were burdensome. One commenter recommended that 
the EPA include BACT \34\ guidelines for new petroleum dry cleaning 
equipment in nonattainment areas identical to the SCAQMD BACT 
guidelines, while another commenter noted there would be costs 
associated with meeting the draft requirements for nonattainment areas 
in the permit. One commenter recommended that the MACT standard for dry 
cleaners be referenced in the General Permit. One commenter stated its 
belief that the draft permit conditions are more stringent than the 
MACT requirements, and recommended that the EPA remove any sections 
from the General Permit that duplicate the MACT rule. The EPA has 
determined that it will maintain the proposed throughput limits and 
inspection requirements in the Permit by Rule that we are finalizing 
for this source category versus a general permit. The EPA believes the 
timeframe for inspections and repair is reasonable, as these are 
equivalent to requirements in the Petroleum Dry Cleaners NSPS (40 CFR 
part 60, subpart JJJ). The EPA intended to include more stringent 
requirements for sources locating in certain ozone nonattainment areas. 
The EPA did not intend to include standards from the NESHAP standard 
for perchloroethylene dry cleaners (40 CFR 63, subpart M) in the permit 
by rule as the permit is not intended to regulate emissions of HAP. 
Instead, the EPA drew upon requirements from the Petroleum Dry Cleaners 
NSPS (40 CFR part 60, subpart JJJ) in establishing the requirements in 
the draft permit. The EPA believes that more stringent provisions are 
necessary in serious, severe, and extreme ozone nonattainment areas and 
has included such provisions in the final permit by rule. As these 
nonattainment provisions are largely drawn from state and local 
requirements, the EPA believes that the final permit conditions are 
reasonable for areas with impaired air quality and consistent with the 
requirements in other areas outside of Indian country.
---------------------------------------------------------------------------

    \33\ The comments we received also apply to the Air Quality 
Permit by Rule for New or Modified True Minor Source Dry Cleaning 
Facilities in Indian Country that the EPA proposed in the 
alternative. In this final action, we are promulgating a permit by 
rule for the petroleum dry cleaning source category.
    \34\ For federal purposes BACT is a requirement for major 
sources under the PSD Program. However, the term is being used as it 
is used by the SCAQMD air program in the context of minor source NSR 
permitting in nonattainment areas.
---------------------------------------------------------------------------

B. Requirements of the Endangered Species Act (ESA) and the National 
Historic Preservation Act (NHPA)

1. Proposed Rule
    The ESA requires federal agencies to ensure, in consultation with 
the U.S. Fish and Wildlife Service and/or the National Marine Fisheries 
Service (the Services), that any action they authorize, fund, or carry 
out will not likely jeopardize the continued existence of any listed 
threatened or endangered species, or destroy or adversely modify the 
designated critical habitat of such species. Under relevant ESA 
implementing regulations, federal agencies consult with the Service(s) 
on actions that may affect listed species or designated critical 
habitat.
    The NHPA requires federal agencies to take into account the effects 
of their undertakings on historic properties--i.e., properties that are 
either listed on, or eligible for listing on, the National Register of 
Historic Places--and to provide the Advisory Council on Historic 
Preservation (the Council) a reasonable opportunity to comment on such 
undertakings. Under relevant NHPA implementing regulations, NHPA 
consultations are generally conducted with the appropriate Tribal and/
or State Historic Preservation Officers in the first instance, with 
opportunities for direct Council involvement in appropriate 
circumstances. The Federal Minor NSR Program in Indian Country has 
increased the number of activities for which the EPA is the permitting 
authority. To ensure appropriate consideration of listed species and 
historic properties, we provided draft screening processes in 
Appendices A and B to the draft Request for Coverage Forms for the 
draft general permits that we made available for comment.
2. Final Action, Comments and Responses
    This section provides a brief summary of significant comments 
received and our responses. Overall, as a result of the comments in 
this final action, we are largely retaining the processes we proposed, 
but with some important adjustments. In terms of process, as discussed 
in Section IV.H. Permit by Rule Regulatory Framework, we have modified 
the permit by rule process to require that a source planning to seek 
coverage under a permit by rule must first demonstrate it has 
adequately completed the screening processes for threatened and 
endangered species and historic properties, and received a written 
letter from the EPA indicating that the processes have been 
satisfactorily addressed, prior to notifying the reviewing authority 
that it is covered under the permit by rule.\35\ (To this end, as noted 
above, for the permits by rule, we have separated the screening 
processes from the Notification of Coverage Forms and created a 
separate document, ``Procedures to Address Threatened and Endangered 
Species and Historic Properties for New or Modified True Minor Sources 
in Indian Country Seeking Air Quality Permits by Rule.'') Responses to 
individual comments are set forth in Section 2.4 of the RTC Document.
---------------------------------------------------------------------------

    \35\ In some cases, the EPA may delegate to an Indian tribe the 
authority to assist the EPA with administration of the Federal 
Indian Country Minor NSR rule (including the permits by rule). 
However, even where such a delegation occurs, the EPA will retain 
responsibility for providing notification to sources that the listed 
species and historic property processes have been satisfactorily 
addressed.
---------------------------------------------------------------------------

    One commenter expressed support for requiring applicants to meet 
the screening requirements for protected resources. We note that the 
EPA has revised terminology in the screening procedures for the 
protected resource screening procedures to provide greater clarity, but 
has otherwise largely retained the proposed procedures. One commenter 
asked if the EPA will be including the endangered species and historic 
preservation requirements in all air permitting actions. At this time, 
the EPA is only requiring sources to complete threatened and endangered 
species and historic property screening procedures in order to obtain 
coverage under the general permits and permits by rule being finalized 
in this action. Any issues related to other air permitting action not 
included by this final action are beyond the scope of this action.
    One commenter inquired if the threatened and endangered species 
clause (i.e., the ESA) is also included in the title V permits. This 
rulemaking action is not within the scope of the title V permit program 
(i.e., sources in Indian country that are defined as major sources or 
otherwise required to obtain operating permits under 40 CFR part 71); 
thus, the comment is outside the scope of this action. One commenter 
requested clarification on which geographic areas the ESA ``action 
areas'' would encompass. For purposes of the listed species screening 
procedures, the EPA uses the definition of the term ``action area'' 
found in 50 CFR 402.02 of the ESA regulations; however, we have added 
additional information in the

[[Page 25079]]

screening process to further explain considerations in determining the 
action area.
    Multiple commenters expressed concerns about the ability of permit 
applicants to meet the time, expertise, and cost burdens associated 
with complying with the listed species and historic property screening 
requirements. The EPA understands that satisfactorily addressing the 
screening procedures for threatened and endangered species and historic 
properties will impose some burden on sources seeking permits. However, 
we have attempted to streamline the screening processes in order to 
minimize the effort needed to complete them. For example, both sets of 
procedures have been clarified to make more explicit that sources can 
rely on prior assessments performed by other federal agencies to 
satisfy the procedures.
    One commenter believes that it is not appropriate for the EPA to 
use a process to demonstrate compliance with the ESA and NHPA that is 
modeled after the National Pollutant Discharge Elimination System 
(NPDES) general permit for Stormwater Discharge from Construction 
Activities. The commenter requested that the EPA defer the regulation 
of ESA and NHPA to Federal Land Management Agencies (FLMs). The EPA 
believes that the screening procedures included in the general permits 
and permits by rule are appropriate means to ensure proper review of 
possible effects on threatened and endangered species and historic 
properties as sources seek coverage under the permits. Where available, 
and to avoid duplication of efforts, we believe it is appropriate for 
facilities seeking to be covered under the general permits or permits 
by rule to use listed species and historic property assessments, 
analyses, and outcomes obtained through the FLMs' separate compliance 
with the ESA and NHPA in connection with their own actions to satisfy 
the relevant screening procedures of the minor NSR general permits and 
permits by rule. For the permits by rule, we have modified the 
protected resource procedures in Appendix A of the document titled 
``Procedures to Address Threatened and Endangered Species and Historic 
Properties for New or Modified True Minor Sources in Indian Country 
Seeking Air Quality Permits by Rule'' to clarify that this approach is 
the first consideration in the screening process. For the general 
permits, we have made the same change to the protected resource 
procedures that are attached to the Request for Coverage Forms.
    One commenter stated that, because no regulatory text has been 
provided with respect to the EPA's proposed approach to addressing ESA 
and NHPA requirements, it is impossible to fully evaluate the EPA's 
proposal. The commenter also noted that the EPA's ESA/NHPA approach 
poses a number of potentially significant problems: (a) The proposed 
rule does not expressly address whether this rulemaking action is 
itself subject to the ESA and NHPA; (b) the process the EPA identifies 
for ensuring compliance with the ESA and NHPA involves requiring 
applicants to interface with the agencies responsible for guiding 
implementation of the ESA and NHPA in the absence of any procedure 
governing that interaction; (c) there are no clear timeframes for these 
agencies to respond to an applicant's request for coordination; and (d) 
the legal consequences of certifying compliance with the ESA and NHPA 
are undefined. This commenter also noted that the process does not 
acknowledge the importance of the EPA's role in compliance with the ESA 
and NHPA, stating that the no effect determination, or any obligation 
to undertake consultation with other federal agencies, is the EPA's 
responsibility and that the EPA should not defer to the opinions of 
other agencies.
    The EPA notes that it is the issuance of the general permit or 
permit by rule that triggers any ESA/NHPA requirement, not the separate 
coverages of individual sources. To address these requirements, the EPA 
has established the listed species and historic properties screening 
procedures via this action to provide an effective means of identifying 
and addressing any impacts on the protected resources as sources seek 
coverage. We note that sources must demonstrate satisfactory completion 
of the screening procedures and that this demonstration must form part 
of the legal basis that the source is eligible for coverage under the 
general permit or permit by rule. To provide an opportunity for the 
public to review these screening procedures, all of the five proposed 
general permits and associated implementation tools were made available 
in the docket for review and comment. The applications for each draft 
general permit contain appendices (Appendix A for listed species and 
Appendix B for historic properties) with the detailed screening 
procedures that an applicant will follow to assess the potential 
impacts of their source as it pertains to the relevant protected 
resources. We specifically requested comment on these general permits 
and implementation tools and believe that our process provided an 
appropriate opportunity for public involvement.
    One commenter recommended that the EPA should include a 
determination expressly finding that the minor sources on tribal lands 
subject to the Federal Indian Country Minor NSR rule will have no 
effect on any species listed under the ESA, nor any potential effects 
on resources protected by the NHPA in the final permit. This commenter 
stated that the use of the term ``significant risk'' (``. . . based on 
the evaluation of available information, that the sources that are the 
subject of this proposal are unlikely to present a significant risk to 
listed species and critical habitat and to historic properties . . .'') 
confuses the issue, as that term is not the relevant standard under the 
ESA or NHPA for determining whether regulatory requirements pursuant to 
those statutes apply. The commenter believes that the EPA should 
instead conclude that minor sources on tribal lands subject to the 
Federal Indian Country Minor NSR rule are likely to have ``no effect'' 
on any listed species or critical habitat, and no potential to affect 
historic properties.
    The EPA does not believe that a single determination for all new 
sources in Indian country that may be covered under a general permit or 
permit by rule would be appropriate. To ensure that appropriate 
consideration of any potential impacts on listed species or historic 
properties occurs, we believe a level of site-specific assessment is 
needed, primarily for the purpose of investigating potential land 
disturbance activities but also to address any other potential impacts. 
We believe the source screening procedures contained in the Request for 
Coverage Forms for general permits and ``Procedures to Address 
Threatened and Endangered Species and Historic Properties for New or 
Modified True Minor Sources in Indian Country Seeking Air Quality 
Permits by Rule'' for permits by rule are the most efficient way to 
make those determinations.

C. Use of Streamlined General Permit Applications

1. Proposed Rule
    In the proposed rule, we sought comment on the appropriateness of 
utilizing permits by rule for three source categories as an alternative 
to general permits: auto body repair and miscellaneous surface coating 
operations, GDFs, and petroleum dry cleaning facilities. We 
specifically requested comment on the permit by rule notification 
procedures.

[[Page 25080]]

2. Final Action, Comments and Responses
    This section provides a brief summary of significant comments 
received regarding the appropriateness of utilizing permits by rule and 
streamlined notification forms, and our responses. (Since we are not 
issuing general permits for the three source categories, we will not be 
issuing any general permit applications for those categories.) 
Responses to comments on the use of streamlined notification forms for 
the permits by rule in today's action can be found in Section 4.0 of 
the RTC Document.
    Several commenters provided support for EPA's proposed use of 
streamlined permit applications for permits by rule. Some commenters 
noted that several states and local reviewing authorities use permits 
by rule to authorize construction of minor sources and that the EPA has 
approved several state or local permits by rule in State Implementation 
Plans. Three commenters asserted that the use of permits by rule would 
expedite the permitting process and reduce administrative burdens and 
costs for permitting agencies and/or operators. Four commenters opposed 
the use of permits by rule for the three source categories. One 
commenter also opposed the use of permits by rule for any future source 
categories that the EPA may propose. One of these commenters stated 
that a lack of notification could result in a permittee missing out on 
critical permitting steps. The commenter also asked how the EPA or a 
tribe would be able to review and confirm that a facility is providing 
the correct information. The commenter asserted that this scenario is 
no different than the process before the Federal Indian Country Minor 
NSR rule.
    The EPA believes that the use of permits by rule is appropriate for 
the three source categories. Permits by rule provide a streamlined 
approach that (a) reduces the time permitting authorities must devote 
to reviewing permit applications and issuing permits, (b) protects air 
quality by controlling emissions-generating activities that pose little 
environmental concern and (c) simplifies the permitting process for 
sources that pose little environmental concern. The EPA has attempted 
to balance air quality concerns in Indian country with the resource and 
workload needs of reviewing authorities. The issuance of general 
permits for these facilities as compared to covering them with a permit 
by rule would greatly add to the workload of the reviewing authority 
without providing greater benefits to air quality. Given the relative 
simplicity and generally lower emissions of these sources, we have 
determined that we do not need to conduct a case-specific review to 
evaluate whether an individual source qualifies for the permit, and we 
are comfortable requiring only a streamlined notification form from 
these sources. Because we will need to continue to balance the workload 
and resource needs of the reviewing authority with the need to protect 
air quality, we do not agree with the comment that permits by rule 
should not be used for any future source categories. We note that the 
permit by rule notifications do not ask for detailed source information 
because these source categories reflect facilities that are 
straightforward in their configuration and emissions (they are 
primarily VOC emission sources), and do not require detailed review or 
confirmation of the information.

D. Administrative Aspects of General Permits

1. Proposed Rule
    The EPA requested comment on the administrative aspects of general 
permits. Specifically, among other areas, we requested comment on two 
issues:
    (a) Whether the EPA's proposed approach of incorporating by 
reference each reviewing authority's approval of a Request for Coverage 
into the general permit is necessary and appropriate; and
    (b) The appropriateness of draft permit terms related to the 
reviewing authority's ability to reopen, revise, or terminate an 
individual approval of coverage under the general permit.
2. Final Action, Comments and Responses
    This section provides a brief summary of significant comments 
received related to administrative procedures for permit issuance and 
obtaining coverage under a general permit and permit by rule. Responses 
to these comments are also addressed in Sections 1.2 and 1.3 of the RTC 
Document. In this final action, we are providing responses to issues 
raised in comments, but we have concluded that those comments do not 
necessitate any substantive changes to the administrative aspects of 
the permits.
    One commenter disagreed with the EPA's proposed procedure for 
amending general permits, noting that the provision is overly broad and 
inconsistent with the procedures for amending source-specific permits. 
This commenter recommends that the EPA treat sources covered by general 
permits (or permits by rule) in the same manner as facilities covered 
by source-specific permits.
    The EPA's procedure for issuing general permits is governed by 40 
CFR 49.156, and the EPA interprets the Federal Indian Country Minor NSR 
rule to require the provision in 40 CFR 49.156 to be used anytime a 
general permit is revised (amended). In the proposal (79 FR 2546), the 
EPA clarified that although a general permit may be revised in the 
future, we do not intend to use the revision process to subject 
existing sources already covered by a general permit to new control 
requirements, unless and until they modify. This process is consistent 
with how site-specific permits are revised.
    A few commenters expressed concern on how the Federal Indian 
Country Minor NSR rule would address permitting a source that could 
cause or contribute to a NAAQS violation or a PSD increment violation. 
Commenters also objected to the EPA's stated preference for general 
permits, noting that the proposed rule does not address the fundamental 
problem of a lack of staff at local agencies to process these new 
regulatory requirements, and recommended that the EPA include a 
staffing plan and the funding to support it, or use permits by rule 
instead. Commenters noted that the EPA's ability to terminate a permit 
for ``cause'' would create uncertainty, and puts tribally owned 
companies at risk. The EPA believes that the ability to deny coverage 
is necessary to prevent exceedances of the NAAQS due to cumulative 
increases in emissions. The EPA recommends that tribes planning to 
construct tribally-owned facilities work with the specific reviewing 
authority in their area to address these concerns. The general permit 
program will help alleviate any potential backlog in the issuance of 
minor source permits to sources that would otherwise require site-
specific permits, allowing limited agency resources to be focused on 
more complicated sources that require more in-depth review. The 
conditions under which a permit can be terminated for cause are defined 
in each general permit; therefore, the situations for which coverage 
under a general permit would be terminated are fairly specific.
    One commenter pointed out that the proposed rule did not include 
specific regulatory language for any of the proposed permits by rule. 
This commenter argued that the lack of regulatory text prevented full 
and complete public review and comment on the proposed rule. The 
commenter asked that the EPA provide regulatory text and a full 
explanation of the permit

[[Page 25081]]

by rule approach before finalizing the rule. The EPA did not provide 
specific regulatory language for any of the proposed permits by rule, 
but rather proposed to codify the requirements of the proposed general 
permits of the specified source category. For the permits by rule in 
this final action, we are codifying the requirements as contained in 
the draft general permit for the three source categories, including 
changes that we have identified are appropriate based on our review of 
public comments. We believe that the proposed general permits have 
provided the public with a sufficient understanding of the contents of 
the final rule, and, therefore, satisfy our obligations under section 
301(a) of the CAA.

E. Control Technology Review

1. Proposed Rule
    In the proposal, we requested comment on the EPA's conclusion, 
based on its control technology review, that the control measures in 
the draft general permits are currently used by other similar sources 
in other areas of the country and that the measures in the draft 
permits are, therefore, technically and economically feasible and cost-
effective.
2. Final Action, Comments and Responses
    This section provides a brief summary of significant comments 
received and our responses. Responses to these comments are also 
addressed in Section 2.2 of the RTC Document. The EPA is largely 
retaining the basic approach to the control technology review outlined 
in the January 14, 2014, proposal.
    A few commenters expressed concern with the EPA's decision to apply 
local control requirements on a nationwide basis. They stated that this 
might lead to a competitive advantage or disadvantage for sources 
locating in Indian country and tribes could lose revenue as a result. 
Commenters recommended that the EPA issue regional permits, and that 
the control requirements for each region should be based on the rules 
and regulations in adjacent areas, and on the nonattainment status of 
the area. The EPA addressed the challenge of developing a single 
general permit for use across a broad range of Indian country by 
evaluating national EPA standards, as well as state and some local 
standards currently in place, and then adopting requirements we feel 
are appropriate and that reflect commonly used standards.

F. Use of Throughput Limits

1. Proposed Rule
    The Federal Indian Country Minor NSR rule requires the reviewing 
authority to establish annual allowable emission limitations for each 
affected emissions unit and for each NSR regulated pollutant emitted by 
the unit, if the unit is issued an enforceable limitation lower than 
the PTE of that unit. See 40 CFR 49.155(a)(2). The EPA included 
throughput, fuel usage, and materials usage limitations and compliance 
monitoring requirements in the proposed general permits and permits by 
rule as a means for limiting emissions and demonstrating compliance 
with those limits. For the five source categories that are the subject 
of this action, some states (but not all) provide both annual ton per 
year allowable emission limitations and throughput limits in their 
general permits. Other state reviewing authorities provide only overall 
production limits that limit the amount of throughput a facility can 
process over a period of time. We requested comment on the use of 
throughput limits as a surrogate for ton-per-year allowable emission 
limitations, or, alternatively, establishment of annual allowable 
emission limitations for each pollutant, and the use of throughput 
limits as surrogate monitoring measures to demonstrate compliance with 
ton-per-year annual allowable emission limitations.
2. Final Action, Comments and Responses
    This section provides a brief summary of significant comments 
received and our responses. Responses to all comments regarding this 
issue are set forth in Section 2.3 of the RTC Document. In our final 
action, we are retaining throughput limits; however, in response to 
comments we received, we are making adjustments to the throughput 
limits for the general permits for HMA plants and SQCS facilities. We 
believe these adjustments are appropriate for three reasons:
     They provide monthly throughput limitations to reflect the 
fact that HMA plants and SQCS facilities relocate often (see Section 
IV.A. Permit Documents and Implementation Tools);
     They provide co-located throughput limits to reflect the 
fact that these facilities are often sited together (see Section IV.K. 
Use of More Than One General Permit and/or Permit by Rule for a Source 
at a Single Location); and
     They ensure a margin of safety between a source's 
permitted throughput limit and the major source thresholds for 
synthetic minor sources since the general permits for these two source 
categories are written for use by both true minor and synthetic minor 
sources (see Section IV.I. Use of General Permits and Permits by Rule 
to Create Synthetic Minor Sources).
    We are also adding a throughput limit to the GDF permit by rule for 
marginal and moderate ozone nonattainment areas.
    The EPA received comments on the use of throughput limitations for 
HMA and SQCS facilities. A few commenters agreed with the throughput 
production limits and fuel-type and usage limits stated in the draft 
permits for HMA plants and SQCS facilities and believe that the 
emission limitations based on those factors are reasonable. One 
commenter asserted that the inclusion of different throughput limits in 
general permits for attainment versus nonattainment areas is 
unnecessary because each such nonattainment area will have a 
nonattainment state implementation plan (SIP) that, by definition, will 
include measures adequate to achieve attainment. The EPA disagrees that 
the existence of nonattainment SIPs renders the inclusion of 
nonattainment-area specific emission limitations unnecessary. A state's 
SIP may or may not account for activities in Indian country and the 
state may lack authority to implement or enforce the SIP there.\36\ As 
a result, the EPA believes that establishing different throughput 
limits for nonattainment areas is necessary to help move such areas 
toward attainment.
---------------------------------------------------------------------------

    \36\ In Oklahoma Dept. of Environmental Quality v. EPA, 740 
F.3rd 185 (D.C. Cir. 2014), the U.S. Court of Appeals for the 
District of Columbia Circuit held that the state, not tribes or the 
EPA, has initial primary responsibility for implementation plans 
under Clean Air Act section 110 in non-reservation areas of Indian 
country (i.e., dependent Indian communities and Indian allotments) 
in the absence of a demonstration of tribal jurisdiction by the EPA 
or a tribe. However, SIPs generally do not apply in reservations, 
including informal reservations or trust lands, and these areas are 
believed to comprise the bulk of Indian country.
---------------------------------------------------------------------------

    Several commenters supported the use of throughput limits noting 
that monitoring throughput limits, hours of operation and production 
are more efficient and cost-effective methods for minor sources to 
demonstrate their compliance. A few commenters advocated that sources 
be allowed flexibility in demonstrating compliance, including using 
alternative methods to a throughput limit so that facility capacity is 
not unnecessarily constrained. A few commenters requested that the 
General Permit also include clearly defined, enforceable, annual 
allowable emission limits.

[[Page 25082]]

    The EPA notes that these types of permit terms and conditions are 
commonly found in state general permits and permits by rule. 
Throughput, materials usage, and hours of operation are easy to track. 
As a result, limitations on throughput, materials usage and hours of 
operation are less burdensome than requiring sources to determine 
emissions on a regular basis in order to demonstrate compliance with an 
emission limit. If a source feels an alternative limit or compliance 
monitoring method is more compatible with their operational procedures, 
they may apply for a source-specific permit to have such criteria 
considered.

G. Setback Requirements

1. Proposed Rule
    For HMA plants and SQCS facilities, we included permit provisions 
regarding the location of the emitting activities relative to the 
source property boundary. We call these provisions, which are designed 
to minimize the near-field impacts of emissions, setback requirements. 
Under the proposed setback requirement, sources could not locate within 
a specific distance of the property boundary and nearest residences. We 
proposed that these provisions seemed both reasonable and prudent 
measures to protect local air quality and are economically feasible and 
cost effective.
    We invited comments to identify other source categories for which 
setback requirements should apply. We also welcomed comments on the 
types of buildings from which we should establish setbacks (e.g., 
schools, nursing homes). Lastly, we further requested comment on 
whether the setback requirements conflict with tribal authority over 
zoning-related matters, and, if so, on how we should resolve that 
conflict.
2. Final Action, Comments and Responses
    One commenter recommended that the EPA add a setback requirement to 
the HMA permit similar to the one included in the proposed SQCS 
facilities permit. Another commenter noted that the setback 
requirements may be difficult for existing sources to meet if the 
source is modified. Due to the lack of an EPA analysis demonstrating 
the air quality benefits of requiring setbacks, we lack sufficient 
information to incorporate them in the final general permits for HMA 
plants and SQCS facilities. Therefore, the final general permits for 
HMA plants and SQCS facilities do not contain setback provisions. 
Nonetheless, the reviewing authority retains the discretion to deny the 
granting of source coverage under the general permits based on local 
air quality concerns. The many comments the EPA received on its 
inclusion of setback requirements in the SQCS and HMA permits, and our 
responses to those comments, are found in Sections 3.2.1.1, 3.2.1.2, 
3.2.4.1, 3.3.4, and 4.2.1 of the RTC Document.

H. Permit by Rule Regulatory Framework

1. Proposed Rule
    We proposed to codify a nationally applicable permit by rule for 
source categories or emissions generating activities for which we have 
determined that the permit by rule mechanism would offer permit 
streamlining benefits, while at the same time protecting air quality, 
into a new section of the Federal Indian Country Minor NSR rule. As 
proposed, permits by rule would be used to address source categories of 
true minor sources, where the reviewing authority does not need to 
conduct an in-depth review to evaluate whether an individual source 
meets all of the requirements in the permit. A permit by rule may be 
issued for a category of emissions units or sources that are similar in 
nature, have substantially similar emissions and would be subject to 
the same or substantially similar requirements governing operations, 
emissions, monitoring, reporting and recordkeeping. ``Similar in 
nature'' refers to size, processes and operating conditions. We 
requested comment on all aspects of the streamlined permit by rule 
approach.
2. Final Action, Comments and Responses
    This section provides a brief summary of significant comments 
received. In our final action, we are codifying nationally applicable 
permits by rule for three source categories: GDFs, auto body repair and 
miscellaneous surface coating operations, and petroleum dry cleaning 
facilities. Overall, as described in greater detail below, we are 
making two significant changes to the process or framework we proposed 
in January 14, 2014. First, we are requiring that sources obtain 
advance, written confirmation from the EPA that the screening 
procedures have been completed correctly for threatened and endangered 
species and historic properties. To provide clarification, we have 
created a new document, ``Procedures to Address Threatened and 
Endangered Species and Historic Properties for New or Modified True 
Minor Sources in Indian Country Seeking Air Quality Permits by Rule,'' 
that sources will need to use prior to submitting a Notification of 
Coverage Form. Second, we are making clear the process citizens will 
need to follow to appeal a source's coverage under a permit by rule.
    Under these three permits by rule, individual sources eligible for 
coverage will be subject to the operational, monitoring and 
recordkeeping requirements specified in the relevant rule. In this 
action, in addition to promulgating the three permits by rule, we are 
amending the Indian Country Minor NSR rule general permit provisions at 
40 CFR 49.156 to set forth the unique elements of the permits by rule 
process. The permits by rule program establishes a more streamlined 
notification of coverage process that allows an individual applicant to 
notify the reviewing authority that it meets the eligibility criteria 
for the permit and the permit conditions. The source will complete the 
Notification of Coverage Form and submit copies of the form to both the 
reviewing authority and the appropriate tribal entity to satisfy the 
registration requirement at 40 CFR 49.160(c)(1)(iii). A copy of the 
completed form must be kept onsite and made available upon request. 
This ``notification'' process streamlines permitting for eligible 
sources and makes it easier for the reviewing authority to implement 
the permit by rule program compared to traditional site-specific 
permits and standard general permits.
    A permit by rule must be issued according to the applicable 
requirements in Sec. Sec.  49.154(c), 49.154(d) and 49.155. A source 
category permit by rule must include the permit elements listed in 
Sec.  49.155(a). The reviewing authority will determine which 
categories of true minor sources are appropriate for coverage under a 
permit by rule. Permits by rule will be issued at the discretion of the 
reviewing authority. Issuance of a permit by rule is considered final 
agency action with respect to all aspects of the permit by rule except 
its applicability to an individual source.
    Prior to submitting the Notification of Coverage Form to the 
reviewing authority, a source must demonstrate to the EPA that the 
endangered or threatened species and historic property screening 
procedures set forth in the procedures document \37\ provided for

[[Page 25083]]

that purpose for the permits by rule have been satisfactorily 
completed. The source must submit documentation of the endangered or 
threatened species and historic property screening evaluations to the 
EPA (and the tribe in the area in which the source is located/locating) 
for review prior to submitting the completed Notification of Coverage 
Form and obtaining coverage under a permit by rule. Thirty days after 
receipt of the documentation, the EPA must notify the source by letter 
of one of two possible outcomes: (a) The documentation is satisfactory 
(i.e., the listed species and historic property screening procedures 
have been completed properly); or (b) the documentation is not adequate 
and additional information/evaluation is needed. If the initial 
submittal is deemed deficient, the EPA will identify any deficiencies 
and may offer further direction on completing the screening 
process(es). Once the source has addressed the noted deficiencies it 
must resubmit its updated screening procedure documentation to the EPA 
for review. The source must obtain written confirmation from the EPA 
indicating that it has adequately documented that the screening 
procedures have been properly completed before it can submit its 
Notification of Coverage Form.
---------------------------------------------------------------------------

    \37\ The processes are contained in the following document: 
``Procedures to Address Threatened and Endangered Species and 
Historic Properties for New or Modified True Minor Sources in Indian 
Country Seeking Air Quality Permits by Rule,'' http://www.epa.gov/air/tribal/tribalnsr.html.
---------------------------------------------------------------------------

    If the source qualifies for a permit by rule and intends to notify 
the reviewing authority that it is covered under the rule, the source 
may submit its Notification of Coverage Form upon the effective date of 
the permit by rule, generally 60 days after publication of the permit 
by rule in the Federal Register. Pursuant to the registration 
requirement of Sec.  49.160(c)(1)(iii), the source must submit a 
completed Notification of Coverage Form to the reviewing authority. The 
Notification of Coverage Forms are available online at http://www.epa.gov/air/tribal/tribalnsr.html or at: Docket ID No. EPA-HQ-OAR-
2011-0151. The source must also submit a copy of the completed 
Notification of Coverage Form to the tribe in whose area of Indian 
country the source is locating or expanding.
    Upon receiving the Notification of Coverage Form, the EPA must post 
the notification on its Web site. The posting of the notification form 
is considered final agency action with respect to its applicability to 
an individual source. The sole issue that may be appealed after an 
individual source is covered under a permit by rule is the 
applicability of the permit by rule to that particular source. Appeals 
must be made to the U.S. Court of Appeals within 60 days of EPA's 
action. The EPA is promulgating this process as a separate regulation 
from 40 CFR 49.159 to provide a process for permits by rule that is 
streamlined compared to the two-step process provided in 40 CFR 49.159 
for general permits.
    The source must comply with all terms and conditions of the permit 
by rule. The source will be subject to enforcement action for failure 
to obtain a preconstruction permit if the emissions unit(s) or source 
is constructed under coverage of a permit by rule and the source is 
later determined not to qualify under the terms and conditions of the 
permit by rule.
    Coverage under a permit by rule becomes invalid if construction is 
not commenced within 18 months after the date of the posting of the 
completed Notification of Coverage Form under a source category permit 
by rule, if construction is discontinued for a period of 18 months or 
more, or if construction is not completed within a reasonable time. The 
reviewing authority may extend the 18-month period upon a satisfactory 
showing that an extension is justified. This provision does not apply 
to the time period between construction of the approved phases of a 
phased construction project; construction of each such phase must 
commence within 18 months of the projected and approved commencement 
date. Any source category covered by a permit by rule may also instead 
apply for a source-specific permit under 40 CFR 49.154.
    The EPA received many comments on the regulatory framework proposed 
for establishing permits by rule. Summaries of all of these comments, 
and the EPA's responses, are found in Section 4.1 of the RTC Document. 
Many of these commenters supported the EPA's proposed use of permits by 
rule for GDFs, auto body repair and miscellaneous surface coating, and 
petroleum dry cleaning facilities, stating that a permit by rule is 
appropriate for these types of sources and that several states already 
use permits by rule for these source categories. A few commenters 
asserted that the use of permit by rule would expedite the permitting 
process, reduce administrative burdens and costs for permitting 
agencies, and allow the EPA to more efficiently manage minor sources. 
Two commenters expressed concerns about whether the EPA has the 
resources to process general permits in a timely manner, referenced 
issues experienced by the EPA Region 8 office when the synthetic minor 
source permitting program for that region became effective, and pointed 
to the Fort Berthold Indian Reservation FIP \38\ used in that region as 
a model for EPA's minor source permitting. Two commenters asserted that 
the permit by rule approach provides sufficient opportunities for 
public input, as well as retaining the public's right to judicial 
review of any source's receipt of coverage under a permit by rule. One 
commenter recommended that the requirement for certification of 
compliance be retained in the final rule, and that the applicant be 
required to mail a copy of the application to the reviewing authority 
for the reviewing authority's records. A few commenters opposed use of 
permits by rule for these three source types, stating that the process 
does not allow for public notice and comment. Two commenters stated 
that a facility may not be aware of all aspects of the permitting 
process they must meet to comply. One commenter noted that neither the 
EPA nor the tribe would be able to review and confirm that a facility 
is providing the correct information.
---------------------------------------------------------------------------

    \38\ ``Approval and Promulgation of Federal Implementation Plan 
for Oil and Natural Gas Well Production Facilities; Fort Berthold 
Indian Reservation (Mandan, Hidatsa, and Arikara Nation), North 
Dakota,'' U.S. Environmental Protection Agency, 78 FR 17836, March 
22, 2013, http://www.gpo.gov/fdsys/pkg/FR-2013-03-22/pdf/2013-05666.pdf.
---------------------------------------------------------------------------

    After carefully considering all of the comments on these issues, 
the EPA concludes that permits by rule are appropriate for the 
following three source categories and is, therefore, finalizing them: 
GDFs, auto body repair and miscellaneous surface coating operations, 
and petroleum dry cleaning facilities. In doing this, the EPA addresses 
the goal of protecting air quality, while reducing workloads of 
reviewing authorities and minimizing delays associated with the 
permitting process by providing a streamlined approach for permitting 
construction of less complex minor sources that have the simplest 
compliance requirements.
    The EPA disagrees with those commenters opposing the use of permits 
by rule. These three source types are relatively straightforward 
sources (compared to HMA plants and SQCS facilities), have similar 
operations and can be adequately controlled with a single set of 
control requirements without the need for additional reviewing 
authority evaluation or further public notice. Requiring these 
facilities to seek coverage under a general permit would add to the 
workload of the reviewing authority

[[Page 25084]]

without providing substantial benefits to air quality since a general 
permit would be unlikely to impose any additional substantive 
requirements. Since we are establishing the permit by rule through 
notice and comment rulemaking, the public has had an adequate 
opportunity to comment on the proposed rule and the provisions of the 
permits by rule for the three source categories. The public retains the 
opportunity for judicial review on the issue of whether the source 
should be able to gain coverage under the permit by rule. Regarding the 
concern that a facility may not be aware of all aspects of the 
permitting process, the EPA has developed multiple implementation tools 
and documents to provide facilities with the information necessary to 
understand the permitting process, assist facilities in navigating the 
permitting process and help to ensure that a facility meets critical 
permitting requirements. The EPA is adding the requirement to submit a 
copy of the Notification of Coverage Form to the relevant tribal 
government office when notifying the reviewing authority in order to 
ensure that the tribal government is aware of new facilities. The EPA 
is also clarifying that under 40 CFR 49.160(c)(1)(iii), minor source 
applicants \39\ (other than sources in the oil and natural gas sector) 
that must register with the EPA beginning on September 2, 2014, will do 
so by providing a copy of their minor source permit Notification of 
Coverage Form.
---------------------------------------------------------------------------

    \39\ The language of 40 CFR 49.160(c)(1)(iii) refers 
specifically to ``applications.'' Eligible sources that have decided 
to be covered by a permit by rule are not required to submit 
applications. They are required to submit ``notification'' forms to 
the reviewing authority that they are electing to be covered under a 
permit by rule. Submittal of the Notification of Coverage Form to 
the reviewing authority satisfies the registration requirement.
---------------------------------------------------------------------------

    One commenter argued that the use of permits by rule would 
effectively mean that sources exceeding the minor source permit 
threshold are exempt from a permit. Another commenter asserted that 
permits by rule are not appropriate for either true minor or synthetic 
minor sources. The commenter also stated that it is difficult to 
enforce against a source that has constructed in violation of the 
``permit by rule'' requirements. The EPA disagrees. Permits by rule are 
only available to true minor sources. As with source-specific permits 
and general permits, the permit by rule contains a set of enforceable 
terms and conditions that will ensure that facilities remain true minor 
sources. Facilities that cannot meet the throughput limitations or 
emission controls in the permits by rule would not be eligible for 
coverage. Facilities must submit a Notification of Coverage Form 
certifying that the facility will comply with all of the terms and 
conditions in the relevant permit by rule. Each permit by rule contains 
clear, enforceable terms and conditions such that noncompliance can 
quickly be identified. If a source operates in violation of the terms 
in a permit by rule for which the owner/operator has submitted a 
completed Notification of Coverage Form, the reviewing authority can 
revoke coverage under the permit by rule and the owner/operator may be 
subject to an enforcement action for failing to obtain a permit prior 
to commencing construction.
    One commenter pointed out that the proposed rule did not include 
``specific regulatory language'' for any of the proposed permits by 
rule, and argued that the lack of regulatory text prevented full and 
complete public review and comment on the proposed rule. As discussed 
in Section VIII (Proposed Permits by Rule) of the preamble to the 
proposed rule, rather than proposing separate, specific regulatory 
language for any of the proposed permits by rule, we proposed a general 
approach to issuing permits by rule and to codify the requirements of 
the draft general permits for the specified source category. Therefore, 
EPA did effectively propose specific regulatory language for each 
proposed permit by rule.

I. Use of General Permits and Permits by Rule To Create Synthetic Minor 
Sources

1. Proposed Rule
    We proposed to allow a source to use coverage under general 
permits, including the permits by rule mechanism, to establish 
federally enforceable emission limitations that can restrict operations 
of an otherwise major source, such that the source qualifies as a 
synthetic minor source. We requested comment on all aspects of using 
general permits and permits by rule to create synthetic minor sources 
generally and with respect to the five source categories in the 
proposed rule. We requested specific comment on whether:
     Any regulatory changes in the permits being proposed would 
be necessary to implement this change in policy;
     A source should be allowed to qualify to use a general 
permit or permit by rule to become a synthetic minor source, and then 
subsequently use a general permit or permit by rule to authorize 
construction or modification activities;
     Both regulatory purposes can be achieved in a single 
general permit/permit by rule;
     Permits by rule are an appropriate type of permit for 
creating synthetic minor sources, given that the permit notification 
does not provide an opportunity for public input on the coverage of a 
particular source by a permit by rule;
     Any specific changes that would need to be made to the 
general permits to include provisions for creating synthetic minor 
permits for these source categories;
     Any specific changes that would need to be made in the 
production limits of each permit to properly regulate synthetic minor 
sources for these categories; and
     Permit conditions include sufficient monitoring, 
recordkeeping and reporting provisions to: (a) Assure continuous 
compliance; and (b) lower the emissions potential to that of a true 
minor source.
2. Final Action, Comments and Responses
    In our final action, we have modified the EPA's policy on the use 
of general permits to create synthetic minor sources and are allowing 
the use of general permits to create synthetic minor sources. We have 
further concluded that it is not appropriate to allow the use of 
permits by rule to create synthetic minor sources. Consistent with EPA 
guidance,\40\ we have set the throughput limits in the HMA and SQCS 
general permits at levels sufficiently low to ensure a margin of safety 
between a source's permitted throughput limit (and corresponding 
emissions) and the major source thresholds, since the general permits 
for these two source categories are written for use by both true minor 
and synthetic minor sources (see Section IV.F. Use of Throughput 
Limits).
---------------------------------------------------------------------------

    \40\ See the following memos available in the docket (ID No. 
EPA-HQ-OAR-2011-0151): ``Guidance on Limiting the Potential to Emit 
in New Source Permitting,'' from Terrell E. Hunt, Associate 
Enforcement Counsel, Office of Enforcement and Compliance Monitoring 
and John S. Seitz, Director, Office of Air Quality Planning and 
Standards, to EPA Regional Counsels, 1-10, et al, June 13, 1989, 
http://www.epa.gov/ttn/atw/pte/june13_89.pdf; and ``Options for 
Limiting the Potential to Emit (PTE) of a Stationary Source Under 
Section 112 and Title V of the Clean Air Act (Act),'' from John S. 
Seitz, Director, Office of Air Quality Planning and Standards, and 
Robert I. Van Heuvelen, Director, Office of Regulatory Enforcement, 
to Air Division Directors, EPA Regions 1-10, January 25, 1995, 
http://www.epa.gov/region7/air/title5/t5memos/ptememo.pdf.
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    The EPA received numerous comments regarding the use of general

[[Page 25085]]

permits and specific regulatory changes to the draft permits for each 
source category to address synthetic minor sources. A summary of all of 
these comments, and the EPA's responses, are found in Sections 5.1 and 
5.3 of the RTC Document.
    Many commenters supported the use of general permits or permits by 
rule to create synthetic minor sources. A few commenters agreed that 
major sources should be able to take advantage of this streamlined 
permitting process, noted that this process would provide an incentive 
for sources that would otherwise be considered a major source to 
voluntarily reduce emissions, and that these general permits will 
satisfy the air quality standards set by the NSR program. As noted, the 
EPA is not finalizing the use of a permit by rule to create synthetic 
minor sources, but will allow the use of a general permit for that 
purpose. Because we are finalizing general permits in this action for 
only two source categories (HMA plants and SQCS facilities), only 
general permits for these two source categories can be used to create 
synthetic minor sources.
    Several commenters stated that the use of general permits to 
establish federally enforceable emissions limits will ensure that 
emissions from synthetic minor sources are appropriately restricted. 
The commenters further stated that this would result in efficiency for 
both operators and regulatory agencies, while leading to improved 
health and welfare in Indian country. A few commenters requested that 
the EPA provide more discussion regarding the technical process for 
developing a general permit, and asked how the EPA plans to address 
compliance with the one-hour and annual NO2 NAAQS. The EPA 
agrees that the use of general permits to establish federally 
enforceable limits on PTE will ensure that emissions from synthetic 
minor sources are appropriately restricted. The EPA has revised the 
throughput limits and fuel use limits in the HMA and SQCS general 
permits to keep covered sources' emissions below the NSR major source 
thresholds, with an adequate margin to account for uncertainties of 
measurement, emissions from unpermitted activities, variability in 
emission rates, and excess emissions during startup, shutdown, or 
malfunction.\41\ We agree with commenters that, if appropriately 
restricted and monitored, synthetic minor sources covered by a general 
permit would not pose an environmental concern and would have emissions 
similar to sources subject to a source-specific permit.
---------------------------------------------------------------------------

    \41\ The throughput limits for the permits by rule being 
promulgated today are also set at levels to keep covered sources' 
emissions below the NSR major source thresholds. However, because 
the permit by rule cannot be used to create synthetic minor sources, 
it is not necessary to lower the throughput limits for the three 
source categories to reflect an added margin to account for 
uncertainties of measurement, emissions from unpermitted activities, 
variability in emission rates, and excess emissions during startup, 
shutdown, or malfunction.
---------------------------------------------------------------------------

    With respect to the NO2 NAAQS, EPA conducted a control 
technology review that is discussed in the proposed rule (See Section 
V. Source Categories for Which Draft General Permits in Indian Country 
are Available for Public Review). The EPA believes that the final 
permits we are issuing and promulgating today are appropriately 
protective of the NAAQS (see Section IV.E. Control Technology Review). 
However, we reserve the ability to deny coverage under a general permit 
based on concerns we may have about the state of air quality in the 
area where a source is seeking to locate or modify, and the potential 
impacts of an individual source in that area.
    A few commenters reiterated that case-by-case permitting 
determinations for source types where equipment and operations do not 
differ significantly from source to source is unnecessary. One 
commenter noted that state programs have used general permits and 
permits by rule to authorize synthetic minor sources, and that these 
permitting programs afford permittees consistency, predictability, and 
efficiency, while reducing the administrative burden on the permitting 
authority and allowing permittees of similar sites to operate on a 
level playing field. A few commenters pointed to the Fort Berthold FIP 
as an example of the successful use of general permits or permits by 
rule for synthetic minor permits, also noting that the requirements of 
the Fort Berthold FIP were consistent with the requirements of the 
North Dakota SIP; thus, providing a level playing field. The EPA agrees 
with commenters that the use of general permits to create synthetic 
minor sources provides consistency, predictability, and efficiency, and 
reduces the administrative burden on the permitting authority, while 
allowing for greater scrutiny in the review of the permit application 
by the reviewing authority. The EPA is not finalizing the use of 
permits by rule for synthetic minor sources because permits by rule do 
not provide for the same level of review and scrutiny by the reviewing 
authority. They also do not provide the same level of public 
participation. The EPA does not believe it is necessary to establish a 
separate general permit for the specific purpose of creating synthetic 
minor sources. The EPA is, therefore, providing one general permit each 
for the HMA and SQCS source categories that are suitable for true minor 
and synthetic minor sources. The EPA has balanced the need to provide a 
level regulatory playing field with the need to protect the NAAQS. 
(However, the issue does not arise for the three permit by rule source 
categories in this action because the permit by rule is not a suitable 
mechanism for creating synthetic minor sources.)
    Several commenters provided support for the use of general permits 
to create synthetic minor sources, but opposed the use of permit by 
rule for this purpose, while several commenters advocated for the use 
of a permit by rule for synthetic minor sources. Two commenters 
asserted that no additional risk of noncompliance would result from the 
use of permits by rule for synthetic minor sources, while another 
commenter urged the EPA to consider using the streamlined permits for 
synthetic minor sources on a case-by-case basis. The EPA has determined 
that a permit by rule approach is not appropriate for creating 
synthetic minor sources. We are only allowing the use of general 
permits to create synthetic minor sources, which allows for greater 
scrutiny in the review of the permit application by the reviewing 
authority. This level of review helps to ensure that a particular 
source that would otherwise be major is likely to be able to comply 
with the throughput limits and emissions control requirements in the 
general permit, thereby ensuring that the source's emissions will be 
below the major source threshold(s). We believe that this level of 
review is necessary for sources with a PTE that would otherwise be 
above the major source threshold(s). Because permits by rule do not 
provide for the same level of review regarding coverage, we are not 
finalizing the use of permits by rule to create synthetic minor 
sources.
    A few commenters urged that the EPA make regulatory changes to be 
more explicit and to inhibit future litigation concerning the issuance 
of general permits or permits by rule for synthetic minor sources, 
while other commenters urged the EPA to include more stringent 
monitoring, recordkeeping and reporting requirements so that synthetic 
minor sources can prove their emissions are below the major source 
thresholds. A few commenters supported the EPA's suggestion to issue 
synthetic minor permits only to sources with actual emissions at a 
margin below the major source thresholds. This would assure

[[Page 25086]]

that synthetic minor sources do not inadvertently become major sources. 
Several commenters disagreed, stating that the EPA should not require 
more stringent monitoring, recordkeeping and reporting requirements for 
synthetic minor sources using a general permit or permit by rule. Other 
commenters stated that the EPA should not impose additional 
requirements or limitations on the use of general permits or permits by 
rule for synthetic minor sources. A few commenters argued that 
compliance with permit limits will be required regardless of whether a 
source is a true or synthetic minor source, and requested that the 
general permits, implementation documents, and tools contained in the 
proposed rule be amended to allow both true and synthetic minor sources 
to apply for coverage. The EPA is not setting a requirement that 
synthetic minor permits may only be issued to sources with actual 
emissions at a margin below the major source thresholds, but we are 
requiring sources to identify whether they are a synthetic minor source 
in their Request for Coverage Form. In the application process, 
permittees could apply for a general permit for purposes of creating a 
synthetic minor source only if they meet the eligibility requirements 
and are able to comply with the federally-enforceable limits 
established in the general permit. Once EPA approves the Request for 
Coverage, the requirements in the general permit become federally-
enforceable limits on the source's PTE. The monitoring, recordkeeping 
and reporting requirements remain the same for true minor sources and 
synthetic minor sources.

J. Use of Both Permitting Mechanisms for Certain Source Categories

1. Proposed Rule
    The EPA requested comments on finalizing both permitting mechanisms 
for a given source category by providing authorization to construct or 
modify true minor sources via permits by rule and by providing 
enforceable limitations to create synthetic minor sources via general 
permits. We sought comment on whether this concept should be applied 
differently or the same for different source categories.
2. Final Action, Comments and Responses
    The EPA has decided to not make both permit types available for any 
single source category largely because we have determined that none of 
the five source categories would be suitable candidates for both permit 
types. As proposed, the EPA is finalizing general permits for the HMA 
and SQCS source categories, but is not finalizing permits by rule 
because the EPA does not believe that true minor sources in these two 
source categories are good candidates for permits by rule. For the 
other three source categories in today's final action, the EPA is 
finalizing only permits by rule because we do not believe that it is 
necessary to provide general permits for these categories as the 
potential impacts of emissions from sources in these categories can be 
readily addressed through a permit by rule. We believe that the 
majority of sources in the three source categories in this action for 
which we are promulgating permits by rule are not major sources and, 
therefore, would not need to seek synthetic minor status. However, any 
source in these three source categories that performs a PTE analysis 
and determines it is a major source can seek synthetic minor source 
status through a site-specific permit.
    The EPA received comments regarding finalizing both permitting 
mechanisms (general permits and permits by rule) for GDFs, auto body 
repair and miscellaneous surface coating operations, and petroleum dry 
cleaning facilities. Summaries of all of these comments and our 
responses to them are contained in Section 5.2 of the RTC Document.
    While one commenter supported the establishment of both permitting 
mechanisms for these three source types, several commenters opposed the 
EPA's proposed ``hybrid approach'' to establishing permits by rule for 
true minor sources and general permits for synthetic minor sources. 
Several commenters suggested that permits by rule would work as well as 
a general permit for any source category, and that the EPA should 
accordingly treat true and synthetic minor sources for all source 
categories in the same manner. As noted, the EPA is not adopting a 
hybrid approach of establishing general permits for synthetic minor 
sources and permits by rule for true minor sources. The EPA does not 
anticipate that these three source types would require a synthetic 
minor permit or that a hybrid approach would be necessary.

K. Use of More Than One General Permit and/or Permit by Rule for a 
Source at a Single Location

1. Proposed Rule
    As proposed, the intent of this minor source permitting process is 
to ensure that a single stationary source gains coverage under a 
general permit or permit by rule only if its PTE is below major source 
emission levels. We requested comment on whether to allow a single 
stationary source to gain coverage under more than one general permit 
or permit by rule. We also requested comment on whether we should 
categorically decline to allow coverage under more than one general 
permit or permit by rule for a single stationary source, or whether the 
application/notification materials offer the EPA an adequate 
opportunity to verify that source-wide PTE for a stationary source is 
below major source levels.
2. Final Action, Comments and Response
    The EPA received comments related to the use of more than one 
general permit or permit by rule for a source at a single location. 
Summaries of all of these comments and our responses to them are 
contained in Section 5.4 of the RTC Document. In this final action, as 
discussed in detail below, we are retaining the approach in our 
proposal on calculating PTE emissions for permit eligibility purposes, 
and we are adjusting the throughput limits in the HMA and SQCS general 
permits to accommodate cases of co-location for those two source 
categories.
    Several commenters supported allowing the use of more than one 
general permit or permit by rule for a single source with different 
types of equipment or co-located processes. One commenter asserted that 
co-located sources should not be precluded from using general permits 
if site-wide emissions remain below major source thresholds. A few 
commenters expressed concerns with allowing a synthetic minor source to 
acquire coverage under more than one general permit or permit by rule, 
as it could potentially allow a source to incrementally increase 
emissions and avoid major NSR preconstruction review and other 
regulatory requirements. Other commenters disagreed, asserting that 
there is no basis in the rulemaking record for assuming that the use of 
more than one general permit or permit by rule might allow a source to 
increase emissions beyond regulatory requirements. Several commenters 
contended that a permit by rule for larger, more complex sources, or 
synthetic minor sources would not provide for adequate review by a 
reviewing authority, and suggested including a requirement to report 
total emissions to prove the source is in compliance.
    The EPA is finalizing its proposed policy with respect to a source 
gaining coverage under multiple general permits

[[Page 25087]]

or permits by rule with modifications. Under the proposed policy, to 
qualify for a general permit or permit by rule a source must sum the 
PTE of its new, modified and existing units. If that sum is below major 
source thresholds, the source is a true minor source and is eligible 
for a true minor source general permit or permit by rule, provided it 
can meet the permits' throughput limits and other terms and conditions 
(even if the source is already subject to an existing general permit/
permit by rule). In this final action, we also allow the same steps for 
synthetic minor sources seeking a general permit. In both cases, the 
agency reserves the ability to deny a general permit for synthetic 
minor sources seeking to combine new emissions with existing emissions 
if the reviewing authority has concerns about local air quality 
conditions.
    In addition, we have modified the general permit applications for 
HMA plants and SQCS facilities so as to allow those source types to co-
locate, if desired. If the applicant is seeking such co-location, the 
permit contains the option to comply with alternative throughput limits 
set low enough to ensure the source's emissions are below the level 
that would trigger the requirement to obtain a title V permit.

L. Additional Source Categories for General Permits and/or Permits by 
Rule

1. Proposed Rule
    In developing the proposal, the EPA solicited input from tribal 
governments and the EPA Regional Offices on which source categories 
should be covered by streamlined permitting in Indian country. The 
tribes and the EPA Regional Offices identified the five source 
categories addressed in the proposed action because they were thought 
to be common in Indian country and were good potential candidates for 
streamlined permitting for several reasons: They represent categories 
of emissions units or stationary sources that are similar in nature, 
have substantially similar emissions, and would be subject to the same 
or substantially similar permit requirements.\42\ The following source 
categories were also thought to be good candidates for streamlined 
permitting:
---------------------------------------------------------------------------

    \42\ ``Review of New Sources and Modifications in Indian 
Country,'' U.S. Environmental Protection Agency, 76 FR 38770, July 
1, 2011, https://www.federalregister.gov/articles/2011/07/01/2011-14981/review-of-new-sources-and-modifications-in-indian-country.
---------------------------------------------------------------------------

     Printing operations (including solvent cleaning/
degreasing);
     Engines (spark and compression ignition);
     Concrete batch plants;
     Saw mills;
     Landfill operations;
     Boilers; and
     Oil and gas production and operations.
    We requested comment on whether the additional source categories 
identified above should receive coverage by general permits or permits 
by rule, including comments as to which categories are appropriate for 
each type of rule. With respect to landfill operations, the EPA 
specifically requested comment on whether enough landfill activity is 
occurring in Indian country to warrant the development of a general 
permit or permit by rule. In connection with the EPA's Municipal Solid 
Waste Landfills New Source Performance Standard (40 CFR 60.750, subpart 
WWW), the EPA created a database of active landfills across the U.S. 
using information from the EPA's Greenhouse Gas Reporting Program,\43\ 
Landfill Methane Outreach Program, and Information Collection Request 
Center. The database indicates there is a very small number of 
landfills in Indian country. These results were compared to the source 
culling that we did with the National Emissions Inventory and the lists 
of sources from Regions 5 and 10, which also showed few landfills in 
Indian country. Based on this information, we indicated that we were 
not convinced that the resources necessary to develop a general permit 
or permit by rule for landfills would be justified and requested 
comment on the issue.\44\
---------------------------------------------------------------------------

    \43\ For more information, go to: http://www.epa.gov/ghgreporting/index.html.
    \44\ The results of this analysis can be found at Docket ID No. 
The EPA-HQ-OAR-2011-0151 and online at http://www.epa.gov/air/tribal/tribalnsr.html.
---------------------------------------------------------------------------

2. Final Action, Comment and Response
    The EPA received comments related to additional source categories 
for which general permits or permits by rule might be appropriate. 
Summaries of all of those comments and our responses to them are 
contained in Sections 6.1, 6.2, 6.3, and 6.4 of the RTC Document. The 
EPA received several comments in support of the use of general permits 
or permits by rule for minor sources for engines, concrete batch 
plants, saw mills, boilers, printing operations, and landfills, and 
only one comment in opposition. Aside from landfill operations, the 
source categories discussed in this section are being addressed in 
separate actions. In particular, in July 2014, the EPA proposed a 
combination of general permits and permits by rule for spark ignition 
engines, compression ignition engines, saw mills, graphic arts and 
printing operations, boilers, and concrete batch plants, but not for 
landfills.\45\ A review of the available data for landfills in Indian 
country indicates that there are a limited number of these sources in 
Indian country, and we do not expect this to change. As a result, we do 
not think that the establishment of a general permit or permit by rule 
for this source category is warranted.
---------------------------------------------------------------------------

    \45\ ``General Permits and Permits by Rule for the Federal Minor 
New Source Review Program in Indian Country,'' U.S. Environmental 
Protection Agency, 79 FR 41846, July 17, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-07-17/pdf/2014-16814.pdf.
---------------------------------------------------------------------------

    The EPA received numerous comments supporting the development of 
general permits or permits by rule for the oil and natural gas source 
category, noting that these permits offer operators a level of 
certainty regarding permitting requirements, will reduce emissions, and 
will decrease regulatory burdens for sources and regulators. A few 
commenters also expressed support for the use of general permits or 
permits by rule for synthetic minor sources in the oil and natural gas 
source category, because the facilities and emission controls do not 
significantly vary from site to site. The EPA has determined that 
permitting for sources in the oil and natural gas source category 
should be dealt with in a separate action because of the unique 
characteristics of those sources. Accordingly, in May 2014, the EPA 
issued an ANPR to solicit input on potential permitting approaches to 
address emissions from new, modified and existing oil and natural gas 
production activities. The EPA will consider the comments received in 
response to the original January 14, 2014, proposed rule concerning the 
permitting of minor oil and natural gas sources in Indian country in 
the action it will take as a follow up to the ANPR.

M. Final Rule Changes to the Federal Indian Country Minor NSR Rule

1. Proposed Rule
    In the January 14, 2014, notice, we proposed five changes to three 
separate provisions in the existing Federal Indian Country Minor NSR 
rule to ensure the smooth functioning of the general permit program:
    (a) Shortening the general permit application review process from 
90 to 45 days for certain source categories (Sec.  49.156(e)(4));
    (b) Adjusting the deadline by which minor sources covered by a 
general

[[Page 25088]]

permit need to obtain a preconstruction permit (Sec.  
49.151(c)(1)(iii)(B));
    (c) Extending the permitting deadline for true minor sources within 
the oil and gas source category (Sec.  49.151(c)(1)(iii)(B));
    (d) Removing a provision to make it clear that sources may seek 
coverage under a general permit as soon as it is effective and need not 
wait an additional four months (Sec.  49.156(e)(1)); and
    (e) Adjusting the deadline for oil and natural gas sources for 
certain registration related requirements to be consistent with the 
proposed permitting deadline extension (Sec.  49.160(c)(1)(ii) and 
(iii)).
    We proposed the first change for three source categories: GDFs, 
auto body repair and miscellaneous surface coating operations, and 
petroleum dry cleaning facilities.
2. Final Action, Comments and Responses
    On June 16, 2014, EPA issued final amendments \46\ addressing three 
of the changes:
---------------------------------------------------------------------------

    \46\ ``Review of New Sources and Modifications in Indian Country 
Amendments to the Registration and Permitting Deadlines for True 
Minor Sources,'' U.S. Environmental Protection Agency, 79 FR 34231, 
June 16, 2014, http://www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/2014-14030.pdf.
---------------------------------------------------------------------------

     Adjusted the deadline by which minor sources covered by a 
general permit need to obtain a preconstruction permit by eliminating a 
requirement for all true minor sources that begin operation before 
September 2, 2014, to obtain a minor NSR permit 6 months after the EPA 
publishes a general permit (no general permits were finalized by May 
2014, so the provision was moot) (Sec.  49.151(c)(1)(iii)(B)) (pertains 
to item (b) under above Section 1. Proposed Rule);
     Extended the permitting deadline for true minor sources 
within the oil and gas source category (Sec.  49.151(c)(1)(iii)(B)) 
(pertains to item (c) under above Section 1. Proposed Rule); and
     Adjusted the deadline for oil and gas sources for certain 
registration-related requirements to be consistent with the proposed 
permitting deadline extension (Sec.  49.151(c)(1)(iii)(A)) and Sec.  
49.160(c)(1)(ii) and (iii)) (pertains to item (e) under above Section 
1. Proposed Rule).

The comments received on these changes were addressed in the June 16, 
2014, Federal Register notice.

    In today's final action, we are addressing the two other proposed 
changes:
     Shortening the general permit application review process 
from 90 to 45 days for certain source categories (Sec.  49.156(e)(4)) 
(pertains to item (a) under above Section 1. Proposed Rule); and
     Removing a provision to make clear that sources may seek 
coverage under a general permit as soon as it is effective and need not 
wait an additional 4 months (Sec.  49.156(e)(1)) (pertains to item (d) 
under above Section 1. Proposed Rule).
    The first change is now moot because we are finalizing permits by 
rule for the three source categories in question (except that the GDF 
permit by rule does not cover California); the permit by rule process 
does not include an application review. We are addressing the second 
change by amending Sec.  49.156(e)(1) to make the general permits 
available as soon as they are effective, which is generally 60 days 
after signature. In addition, we have added a provision to ensure that 
this is also true for permits by rule that we promulgate.
    The EPA received comments related to these two changes. Summaries 
of all comments and our responses are contained in Section 7.0 of the 
RTC Document. Several commenters supported the EPA's proposal to amend 
Sec.  49.156(e)(1) so that minor sources would not be required to wait 
four months to seek coverage under the general permit after the general 
permit's effective date, but may seek coverage as soon as the general 
permit is effective. The EPA is removing the requirement for sources to 
wait four months after the general permit is finalized to request 
coverage. The EPA also received a number of comments related to 
shortening the general permit application review process from 90 to 45 
days for certain source categories. Multiple commenters supported the 
EPA's proposal to shorten the general permit application review process 
from 90 to 45 days for 3 of the proposed source categories (GDFs, auto 
body repair and miscellaneous surface coating operations, and petroleum 
dry cleaning facilities). A few commenters recommended that the EPA 
consider reducing the application review period for general permits to 
30 days. As noted, the EPA is not finalizing revisions to Sec.  
49.156(e)(4) to shorten the General Permit application review process 
from 90 to 45 days for the permits for the GDF, auto body repair and 
miscellaneous surface operations, or petroleum dry cleaning source 
categories because we are not issuing general permits for those source 
categories. Rather, we are establishing permits by rule, for which 
there is no review process for these three source categories.
    We are promulgating a minor amendment to Sec.  49.151(c)(1)(iii)(B) 
by adding the words ``permit by rule'' after general permit to ensure 
that it is clear that the permit by rule option is available to true 
minor sources required to obtain a minor source permit. The section 
reads as follows with the added amendatory words ``/permit by rule'':
    ``If your true minor source is not an oil and natural gas source 
and you wish to begin construction of a new true minor source or a 
modification at an existing true minor source on or after September 2, 
2014, you must first obtain a permit pursuant to Sec. Sec.  49.154 and 
49.155 (or a general permit/permit by rule pursuant to Sec.  49.156, if 
applicable). If your true minor source is an oil and natural gas source 
and you wish to begin construction of a new true minor source or a 
modification at an existing true minor source on or after March 2, 
2016, you must first obtain a permit pursuant to Sec. Sec.  49.154 and 
49.155 (or a general permit/permit by rule pursuant to Sec.  49.156, if 
applicable). The proposed new source or modification will also be 
subject to the registration requirements of Sec.  49.160, except for 
sources that are subject to Sec.  49.138.''
    Finally, we are promulgating a minor amendment to Sec.  49.156 by 
adding the words ``permits by rule'' after general permits to ensure 
that it is clear that the section also contains requirements for permit 
by rule. The introductory paragraph to the section reads as follows 
with the added amendatory words ``/permits by rule'':
    ``This section applies to general permits/permits by rule for the 
purposes of complying with the preconstruction permitting requirements 
for sources of regulated NSR pollutants under this program.''

V. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was, 
therefore, not submitted to the Office of Management and Budget for 
review.

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA. This action merely establishes general permits and/or permits 
by rule to satisfy the requirements of the Federal Indian Country Minor 
NSR rule. Such permits are already available in

[[Page 25089]]

many states. It does not impose any new obligations or enforceable 
duties on any state, local or tribal government or the private sector. 
Therefore, this action does not impose an information collection 
burden. OMB has previously approved the information collection 
activities in the permits in this action, which are contained in the 
Information Collection Request for Federal Indian Country Minor NSR 
rule issued in July 2011 (OMB Control No. 2060-0003).

C. Regulatory Flexibility Act

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the Regulatory 
Flexibility Act. In making this determination, the impact of concern is 
any significant adverse economic impact on small entities. 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, has no net burden or otherwise has a positive economic effect 
on the small entities subject to the rule. The EPA analyzed the impact 
of streamlined permitting on small entities in the Federal Indian 
Country Minor NSR rule (76 FR 38748, July 1, 2011). The EPA determined 
that that action would not have a significant economic impact on a 
substantial number of small entities. Today's action merely implements 
a particular aspect of the Federal Indian Country Minor NSR rule. As 
such, this action will not have a significant economic impact on a 
substantial number of small entities. We have, therefore, concluded 
that this action will have no net regulatory burden for all directly 
regulated small entities.

D. Unfunded Mandates Reform Act

    This action does not contain any unfunded mandates, as described in 
the Unfunded Mandates Reform Act, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action imposes 
no enforceable duty on any state, local or tribal governments or the 
private sector.

E. Executive Order 13132: Federalism

    This action 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.

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

    This action has tribal implications. However, it will neither 
impose substantial direct compliance costs on federally recognized 
tribal governments, nor preempt tribal law. The EPA has conducted 
outreach on this rule via on-going monthly meetings with tribal 
environmental professionals in the development of this final action. 
This action reflects tribal comments on and priorities for developing 
general permits and permits by rule in Indian country. The EPA offered 
consultation to elected tribal officials immediately after proposal on 
December 16, 2013, via letter to 566 tribes to provide an opportunity 
for meaningful and timely input into the development of this 
regulation. No tribal officials requested consultation on this action.

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

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental, health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not concern an environmental 
health risk or safety risk.

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

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    The final action involves technical standards. The EPA has decided 
to use the EPA Methods 5, 7E and 10. While for the proposal the agency 
identified 13 voluntary consensus standards (ASME B133.9-1994 (2001), 
ISO 9096:1992 (2003), ANSI/ASME PTC-38-1980 (1985), ASTM D3685/D3685M-
98 (2005), CAN/CSA Z223.1-M1977, ANSI/ASME PTC 19-10-1981--Part 10, ISO 
10396:1993 (2007), ISO 12039:2001, ASTM D5835-95 (2007), ASTM D6522-00 
(2005), CAN/CSA Z223.2-M86 (1999), CAN/CSA Z223.21-M1978, ASTM D3162-94 
(2005)) as being potentially applicable, we are not finalizing these in 
this rulemaking. The use of these voluntary consensus standards would 
not be practical with applicable law due to a lack of equivalency, 
documentation, validation data and other important technical and policy 
considerations. The EPA did not receive comments that have caused us to 
alter the standards and methods in the final permits.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    The EPA believes the human health or environmental risk addressed 
by this action will not have potentially, disproportionately high and 
adverse human health or environmental effects on minority, low-income 
or indigenous populations. This action does not affect the level of 
protection provided to human health or the environment. This final rule 
merely implements certain aspects of the Federal Indian Country Minor 
NSR rule. Therefore, this final action will not have a 
disproportionately high and adverse human health or environmental 
effects on minorities, low-income, indigenous populations in the United 
States.
    Our primary goal in developing this program is to ensure that air 
resources in Indian country will be protected in the manner intended by 
the CAA. This Rule will reduce adverse impacts by improving air quality 
in Indian country. In addition, we seek to establish a flexible 
preconstruction permitting program for minor sources in Indian country 
that is comparable to similar programs in neighboring states in order 
to create a more level regulatory playing field for owners and 
operators within and outside of Indian country. This Rule will reduce 
an existing disparity by filling the regulatory gap.

K. Congressional Review Act

    This action is subject to the Congressional Review Act, and the EPA 
will submit a rule report to each House of the Congress and to the 
Comptroller General of the United States. This action is not a ``major 
rule'' as defined by 5 U.S.C. 804(2).

List of Subjects in 40 CFR Part 49

    Environmental protection, Administrative practices and procedures, 
Air pollution control, Indians, Indians-law, Indians-tribal government, 
Intergovernmental relations, Reporting and recordkeeping requirements.


[[Page 25090]]


    Dated: April 17, 2015.
Gina McCarthy,
Administrator.
    For the reasons stated in the preamble, title 40, Chapter 1 of the 
Code of Federal Regulations is amended as follows:

PART 49--INDIAN COUNTRY: AIR QUALITY PLANNING AND MANAGEMENT

0
1. The authority citation for part 49 continues to read as follows:

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

Subpart C--General Federal Implementation Plan Revisions

0
2. Section 49.151 is amended by revising paragraph (c)(1)(iii)(B) to 
read as follows:


Sec.  49.151  Program overview.

* * * * *
    (c) * * *
    (1) * * *
    (iii) * * *
    (B) If your true minor source is not an oil and natural gas source 
and you wish to begin construction of a new true minor source or a 
modification at an existing true minor source on or after September 2, 
2014, you must first obtain a permit pursuant to Sec. Sec.  49.154 and 
49.155 (or a general permit/permit by rule pursuant to Sec.  49.156, if 
applicable). If your true minor source is an oil and natural gas source 
and you wish to begin construction of a new true minor source or a 
modification at an existing true minor source on or after March 2, 
2016, you must first obtain a permit pursuant to Sec. Sec.  49.154 and 
49.155 (or a general permit/permit by rule pursuant to Sec.  49.156, if 
applicable). The proposed new source or modification will also be 
subject to the registration requirements of Sec.  49.160, except for 
sources that are subject to Sec.  49.138.
* * * * *

0
3. Section 49.156 is amended by revising the section heading, the 
introductory text, and paragraph (e)(1), and by adding paragraph (f) to 
read as follows:


Sec.  49.156  General permits and permits by rule.

    This section applies to general permits/permits by rule for the 
purposes of complying with the preconstruction permitting requirements 
for sources of regulated NSR pollutants under this program.
    (e) * * *
    (1) If your source qualifies for a general permit, you may submit a 
Request for Coverage under that general permit to the reviewing 
authority upon the effective date of the general permit, generally 60 
days after publication of the general permit in the Federal Register.
* * * * *
    (f) Permits by rule overview--(1) What is a permit by rule? A 
permit by rule is a preconstruction permit issued by a reviewing 
authority that may be applied to a number of similar emissions units or 
sources within a designated category. The purpose of a permit by rule 
is to simplify the permit issuance process for similar facilities so 
that a reviewing authority's limited resources need not be expended for 
case-by-case permit development for such facilities. A permit by rule 
may be written to address a single emissions unit, a group of the same 
type of emissions units or an entire minor source. A source wishing to 
operate pursuant to a permit by rule must submit a Notification of 
Coverage Form to the reviewing authority prior to commencing 
construction or modification. Once a source submits the Notification of 
Coverage and the EPA posts it online, the source may commence 
construction or modification without further action by the reviewing 
authority.
    (2) When and where does a permit by rule apply? The provisions of a 
permit by rule established under the authority of this section apply on 
reservations and other areas of Indian country for which a tribe, or 
EPA acting in a tribe's stead, has demonstrated that a tribe has 
jurisdiction and where there is no EPA-approved tribal minor NSR 
program and according to the following implementation schedule: Sources 
that qualify for a permit by rule and have completed and submitted to 
the reviewing authority and the tribe in the affected area that is 
covered under the permit by rule the required Notification of Coverage 
may commence construction of a new source or modification of an 
existing source after the reviewing authority has posted the 
Notification of Coverage Form online. If your source qualifies for a 
permit by rule, you may submit a Notification of Coverage Form under 
that permit by rule upon the effective date of the permit by rule, 
generally 60 days after publication of the permit by rule in the 
Federal Register.
    (3) How will the reviewing authority issue permits by rule? The 
reviewing authority will issue permits by rule as follows:
    (i) A permit by rule may be issued for a category of emissions 
units or sources that are similar in nature, have substantially similar 
emissions and would be subject to the same or substantially similar 
requirements governing operations, emissions, monitoring, reporting and 
recordkeeping. ``Similar in nature'' refers to size, processes and 
operating conditions.
    (ii) A permit by rule must be issued according to the applicable 
requirements in Sec. Sec.  49.154(c) and (d) and 49.155.
    (4) For what source categories will source category permits by rule 
be issued? (i) The reviewing authority will determine at its discretion 
which categories of true minor sources are appropriate for coverage 
under a permit by rule.
    (ii) Permits by rule will be issued at the discretion of the 
reviewing authority. Issuance of a permit by rule is considered final 
agency action with respect to all aspects of the permit by rule except 
its applicability to an individual source. Permits by rule for 
additional source categories may be added in the future following the 
procedure set forth in paragraph (e)(3)(ii) of this section.
    (iii) Permits by rule are currently available for the following 
source categories:
    (A) Auto body repair and miscellaneous surface coating operations 
(Sec.  49.162).
    (B) Petroleum dry cleaning facilities (Sec.  49.163).
    (C) Gasoline dispensing facilities (Sec.  49.164).
    (5) What should the permit by rule contain? A source category 
permit by rule must include the permit elements listed in Sec.  
49.155(a).
    (6) What procedures must you follow to obtain coverage for your 
source under a permit by rule?
    (i) You must determine whether your source is a true minor source 
by following the procedures outlined in Sec.  49.153.
    (ii) If you determine your source is a true minor source, then to 
be eligible to be covered by the permit you must be willing to accept 
the terms and conditions of the permit by rule, including emissions 
limits that are either directly expressed as limits or specified as an 
operational throughput limit or threshold.
    (iii) Prior to submitting a completed Notification of Coverage to 
the reviewing authority notifying the reviewing authority that you are 
covered under a permit by rule, you must first submit documentation to 
the EPA (and to the tribe where the source is located/locating) 
demonstrating that you have completed the screening processes specified 
for consideration of threatened

[[Page 25091]]

and endangered species and historic properties and receive a 
determination from the EPA stating that you have satisfactorily 
completed these processes. (The processes are contained in the 
following document: ``Procedures to Address Threatened and Endangered 
Species and Historic Properties for New or Modified True Minor Sources 
in Indian Country Seeking Air Quality Permits by Rule,'' http://www.epa.gov/air/tribal/tribalnsr.html.) Within 30 days of receipt of 
your documentation, by letter to you, the reviewing authority must 
provide a determination that: The documentation satisfactorily 
demonstrates completion of the threatened and endangered species and 
historic property processes; or the documentation is not adequate and 
additional information is needed. If the initial submittal is 
deficient, the reviewing authority will note any such deficiencies and 
may offer further direction on completing the screening process(es). 
Once you have addressed the noted deficiencies you must resubmit your 
threatened and endangered species and historic property screening 
procedure documentation for review. An additional 15-day review 
notification period will be used for the reviewing authority to 
determine whether the ESA/NHPA screening procedures have been 
satisfied. If they have, the reviewing authority will send you a letter 
so stating. You must obtain a letter from the reviewing authority 
indicating that the source has adequately completed the processes 
regarding threatened and endangered species and historic properties is 
necessary before you can qualify for coverage under the permit by rule.
    (iv) If your source qualifies for a permit by rule and you choose 
to be covered under it, following notification from the EPA that you 
have satisfactorily completed the threatened and endangered species and 
historic property processes correctly, you may submit a Notification of 
Coverage to the reviewing authority beginning upon the effective date 
of the permit by rule, generally 60 days after publication of the 
permit by rule in the Federal Register. Submission of the completed 
Notification of Coverage to the reviewing authority satisfies the 
registration requirement of Sec.  49.160(c)((1)(iii). The necessary 
forms for submitting a Notification of Coverage are available online at 
http://www.epa.gov/air/tribal/tribalnsr.html. You must also submit a 
copy of the Notification of Coverage to the tribe in the area where 
your source is locating or modifying.
    (v) Upon receiving your Notification of Coverage, the notification 
will be posted on the reviewing authority's Web site, which is the 
relevant EPA Regional Office's Web site unless a tribe has been 
delegated authority to implement the Federal Minor NSR Program in 
Indian Country rule. The posting of the Notification of Coverage Form 
is considered final agency action with respect to the permit by rule's 
applicability to an individual source. Appeals can only be made 
regarding the applicability of the permit by rule to an individual 
source or modification. Appeals must be made to the relevant U.S. Court 
of Appeals within 60 days of the EPA's final action.
    (vi) Your source must comply with all terms and conditions of the 
relevant permit by rule. You will be subject to enforcement action for 
failure to obtain a preconstruction permit if the emissions unit(s) or 
source are constructed under coverage of a permit by rule and your 
source is later determined not to qualify for that permit by rule.
    (vii) Coverage under a permit by rule becomes invalid if 
construction is not commenced within 18 months after the date of the 
posting of the Notification of Coverage under a source category permit 
by rule, if construction is discontinued for a period of 18 months or 
more, or if construction is not completed within a reasonable time. The 
reviewing authority may extend the 18-month period upon a satisfactory 
showing that an extension is justified. This provision does not apply 
to the time period between construction of the approved phases of a 
phased construction project; construction of each such phase must 
commence within 18 months of the projected and approved commencement 
date.
    (viii) Any source eligible to request coverage under a permit by 
rule may instead choose to apply for a source specific permit under 
Sec.  49.154 if they prefer not to be subject to the permit by rule's 
terms and conditions.

0
4. Section 49.162 is added to read as follows:


Sec.  49.162  Air quality permit by rule for new or modified true minor 
source auto body repair and miscellaneous surface coating operations in 
Indian country.

    (a) Abbreviations and acronyms:

CAA or the Act Federal Clean Air Act
cc cubic centimeters
CFR Code of Federal Regulations
CO Carbon Monoxide
EPA United States Environmental Protection Agency
g/L grams per liter
lb/gal pounds per gallon
MSDS Material Safety Data Sheet
NAAQS National Ambient Air Quality Standards
NOX Oxides of Nitrogen
NSR New Source Review
PSD Prevention of Significant Deterioration
VOC Volatile Organic Compounds

    (b) Definitions for the purposes of this permit by rule--(1) 
Adhesion promoter means a coating, which is labeled and formulated to 
be applied to uncoated plastic surfaces to facilitate bonding of 
subsequent coatings, and on which, a subsequent coating is applied.
    (2) Airless and air-assisted airless spray mean any paint spray 
technology that relies solely on the fluid pressure of the paint to 
create an atomized paint spray pattern and does not apply any atomizing 
compressed air to the paint before it leaves the paint nozzle. Air-
assisted airless spray uses compressed air to shape and distribute the 
fan of atomized paint, but still uses fluid pressure to create the 
atomized paint.
    (3) Cause means with respect to the reviewing authority's ability 
to terminate a permitted source's coverage under a permit by rule that:
    (i) The permittee is not in compliance with the provisions of this 
permit by rule;
    (ii) The reviewing authority determines that the emissions 
resulting from the construction or modification of the permitted source 
significantly contribute to NAAQS violations, which are not adequately 
addressed by the requirements in this permit by rule;
    (iii) The reviewing authority has reason to believe that the 
permittee obtained coverage under the permit by rule by fraud or 
misrepresentation; or
    (iv) The permittee failed to disclose a material fact required by 
the Notification of Coverage or the requirements applicable to the 
permitted source of which the applicant had or should have had 
knowledge at the time the permittee submitted the Notification of 
Coverage.
    (4) Clear coating means any coating that contains no pigments and 
is labeled and formulated for application over a color coating or clear 
coating.
    (5) Cold cleaning solvent makeup means the gallons of gross cold 
cleaning solvent usage minus the gallons of solvent disposed of as 
waste solvent.
    (6) Construction means any physical change or change in the method 
of operation including fabrication, erection, installation, demolition, 
or modification of an affected emissions unit that would result in a 
change of emissions.
    (7) Color coating means any pigmented coating, excluding adhesion

[[Page 25092]]

promoters, primers, and multi-color coatings, that requires a 
subsequent clear coating and which is applied over a primer or adhesion 
promoter. Color coatings include metallic/iridescent color coatings.
    (8) Electrostatic application means any method of coating 
application where an electrostatic attraction is created between the 
part to be coated and the atomized paint particles.
    (9) Freeboard area means the air space in a batch-loaded cold 
cleaner that extends from the liquid surface to the top of the tank.
    (10) Freeboard height means the distance from the top of the 
solvent to the top of the tank for batch-loaded cold cleaners.
    (11) Freeboard ratio means the ratio of the solvent cleaning 
machine freeboard height to the smaller interior dimension (length, 
width, or diameter) of the solvent cleaning machine.
    (12) Halogenated Hazardous Air Pollutant (HAP) solvent means 
methylene chloride (CAS No. 75-09-2), perchloroethylene (CAS No. 127-
18-4), trichloroethylene (CAS No. 79-01-6), 1,1,1-trichloroethane (CAS 
No. 71-55-6), carbon tetrachloride (CAS No. 56-23-5), and/or chloroform 
(CAS No. 67-66-3).
    (13) High-volume, low-pressure (HVLP) spray equipment means spray 
equipment that is permanently labeled as such and used to apply any 
coating by means of a spray gun which is designed and operated between 
0.1 and 10 pounds per square inch gauge (psig) air atomizing pressure 
measured dynamically at the center of the air cap and at the air horns.
    (14) Liquid leak means a VOC-containing liquid leak from the 
degreaser at a rate of three drops per minute or more or any visible 
liquid mist.
    (15) Multi-color coating means any coating that exhibits more than 
one color in the dried film after a single application, is packaged in 
a single container, and hides surface defects on areas of heavy use, 
and which is applied over a primer or adhesion promoter.
    (16) Notification of Coverage means the permit notification that 
contains all the information required in the standard notification form 
for this permit by rule.
    (17) One-component coating means a coating that is ready for 
application as it comes out of its container to form an acceptable dry 
film. A thinner necessary to reduce the viscosity is not considered a 
component.
    (18) Permittee means the owner or operator of a permitted source.
    (19) Permitted source means each auto body repair and miscellaneous 
surface coating operation for which a source submits a complete 
Notification of Coverage.
    (20) Pretreatment coating means any coating that contains a minimum 
of one-half (0.5) percent acid by weight and not more than 16 percent 
solids by weight necessary to provide surface etching and is labeled 
and formulated for application directly to bare metal surfaces to 
provide corrosion resistance and adhesion.
    (21) Primer means any coating, which is labeled and formulated for 
application to a substrate to provide:
    (i) A bond between the substrate and subsequent coats;
    (ii) Corrosion resistance;
    (iii) A smooth substrate surface; or
    (iv) Resistance to penetration of subsequent coats, and on which a 
subsequent coating is applied.
    Primers may be pigmented.
    (22) Responsible official means one of the following:
    (i) For a corporation: A president, secretary, treasurer, or vice-
president of the corporation in charge of a principal business 
function, or any other person who performs similar policy or decision-
making functions for the corporation, or a duly authorized 
representative of such person if the representative is directly 
responsible for the overall operation of the permitted source.
    (ii) For a partnership or sole proprietorship: A general partner or 
the proprietor, respectively.
    (iii) For a public agency: Either a principal executive officer or 
ranking elected official, such as a chief executive officer having 
responsibility for the overall operations of a principal geographic 
unit of the agency.
    (23) Single-stage coating means any pigmented automotive coating, 
(excluding automotive adhesion promoters, primers and multi-color 
coatings), specifically labeled and formulated for application without 
a subsequent clear coating and that are applied over an adhesion 
promoter, a primer, or a color coating. Single-stage coatings include 
single-stage metallic/iridescent coatings.
    (24) Spray-applied coating operations means coatings that are 
applied using a hand-held device that creates an atomized mist of 
coating and deposits the coating on a substrate. For the purposes of 
this permit by rule, spray-applied coatings do not include the 
following materials or activities:
    (i) Coatings applied from a hand-held device with a paint cup 
capacity that is equal to or less than 3.0 fluid ounces (89 cc).
    (ii) Surface coating application using powder coating, hand-held, 
non-refillable aerosol containers, or non-atomizing application 
technology, including, but not limited to, paint brushes, rollers, hand 
wiping, flow coating, dip coating, electro deposition coating, web 
coating, coil coating, touch-up markers, or marking pens.
    (iii) Thermal spray operations (also known as metalizing, flame 
spray, plasma arc spray, and electric arc spray, among other names) in 
which solid metallic or non-metallic material is heated to a molten or 
semi-molten state and propelled to the work piece or substrate by 
compressed air or other gas, where a bond is produced upon impact.
    (25) Temporary protective coating means any coating which is 
labeled and formulated for the purpose of temporarily protecting areas 
from overspray or mechanical damage.
    (26) Tire retread adhesive means any adhesive to be applied to the 
back of pre-cured tread rubber and to the casing and cushion rubber, or 
to be used to seal buffed tire casings to prevent oxidation while the 
tire is being prepared for a new tread.
    (27) Truck bed liner coating means any coating, excluding color, 
multi-color, and single stage coatings, labeled and formulated for 
application to a truck bed to protect it from surface abrasion.
    (28) Two-component coating means a coating requiring the addition 
of a separate reactive resin, commonly known as a catalyst, before 
application to form an acceptable dry film.
    (29) Underbody coating means any coating labeled and formulated for 
application to wheel wells, the inside of door panels or fenders, the 
underside of a trunk or hood, or the underside of the motor vehicle.
    (30) Uniform finish coating means any coating labeled and 
formulated for application to the area around a spot repair for the 
purpose of blending a repaired area's color or clear coat to match the 
appearance of an adjacent area's existing coating.
    (31) Volatile organic compounds or VOC means any compound of 
carbon, excluding carbon monoxide, carbon dioxide, carbonic acid, 
metallic carbides or carbonates, and ammonium carbonate, which 
participates in atmospheric photochemical reactions. This does not 
include the compounds listed in 40 CFR 51.100(s)(1).
    (c) Information about this permit by rule. (1) Applicability. 
Pursuant to the provisions of the Clean Air Act (CAA), subchapter I, 
part D and 40 CFR part 49, subpart C, this permit authorizes the 
construction or modification and the

[[Page 25093]]

operation of the auto body repair and miscellaneous surface coating 
operation for which a reviewing authority receives a completed 
Notification of Coverage (permitted source).
    (2) Eligibility. To be eligible for coverage under this permit by 
rule, the permitted source must qualify as a true minor source as 
defined in 40 CFR 49.152 and satisfied the requirements in 40 CFR 
49.156(f)(6)(iii).
    (3) Notification of Coverage. Requirements for submitting a 
Notification of Coverage are contained in paragraph (d)(1) of this 
section. The information contained in each permitted source's 
Notification of Coverage is hereby enforceable under this permit by 
rule.
    (4) Termination. Paragraph (d)(6) of this section addresses a 
reviewing authority's ability to revise, revoke and reissue, or 
terminate coverage under this permit by rule. It also addresses the 
reviewing authority's ability to terminate an individual permitted 
source's coverage under this permit by rule.
    (5) Definitions. The terms used herein shall have the meaning as 
defined in 40 CFR 49.152, unless otherwise defined in paragraph (b) of 
this section. If a term is not defined, it shall be interpreted in 
accordance with normal business use.
    (d) Permit by rule terms and conditions. The following applies to 
each permittee and permitted source with respect to only the affected 
emissions units and any associated air pollution control technologies 
in that permitted source's Notification of Coverage.
    (1) General provisions--(i) Obtaining coverage under this permit by 
rule. To obtain coverage under this permit by rule, an applicant must 
submit a completed Notification of Coverage to the appropriate 
reviewing authority for the area in which the permitted source is or 
will be located (the Notification of Coverage Form can be found at: 
http://www.epa.gov/air/tribal/tribalnsr.html). Table 2 contains a list 
of reviewing authorities and their area of coverage. You must also 
submit a copy of the Notification of Coverage to the Indian governing 
body for any area in which the permitted source will operate in Indian 
country.
    (ii) Construction and operation. The permittee shall construct or 
modify and shall operate the affected emissions units and any 
associated air pollution control technologies in compliance with this 
permit by rule and all other applicable federal air quality 
regulations; and in a manner consistent with representations made by 
the permittee in the Notification of Coverage.
    (iii) Location. This permit by rule only authorizes the permittee 
to construct or modify and to operate the permitted source in the 
location listed in the Notification of Coverage for that permitted 
source.
    (iv) Liability. This permit by rule does not release the permittee 
from any liability for compliance with other applicable federal and 
tribal environmental laws and regulations, including the CAA.
    (v) Severability. The provisions of this permit by rule are 
severable. If any portion of this permit by rule is held invalid, the 
remaining terms and conditions of this permit by rule shall remain 
valid and in force.
    (vi) Compliance. The permittee must comply with all provisions of 
this permit by rule, including emission limitations that apply to the 
affected emissions units at the permitted source. Noncompliance with 
any permit by rule provision is a violation of the permit by rule and 
may constitute a violation of the CAA; is grounds for an enforcement 
action; and is grounds for the reviewing authority to revoke and 
terminate the permitted source's coverage under this permit by rule.
    (vii) National Ambient Air Quality Standards (NAAQS)/Prevention of 
Significant Deterioration (PSD) Protection. The permitted source must 
not cause or contribute to a NAAQS violation or, in an attainment area, 
must not cause or contribute to a PSD increment violation.
    (viii) Unavailable defense. It is not a defense for the permittee 
in an enforcement action that it would have been necessary to halt or 
reduce the permitted activity in order to maintain compliance with the 
provisions of this permit by rule.
    (ix) Property rights. This permit by rule does not convey any 
property rights of any sort or any exclusive privilege.
    (x) Information requests. You, as the permittee, shall furnish to 
the reviewing authority, within 30 days unless another timeframe is 
specified by the EPA, any information that the reviewing authority may 
request in writing to determine whether cause exists for revising, 
revoking and reissuing, or terminating coverage under the permit by 
rule or to determine compliance with the permit by rule. For any such 
information claimed to be confidential, the permittee must submit a 
claim of confidentiality in accordance with 40 CFR part 2, subpart B.
    (xi) Inspection and entry. Upon presentation of proper credentials, 
the permittee must allow a representative of the reviewing authority 
to:
    (A) Enter upon the premises where a permitted source is located or 
emissions-related activity is conducted or where records are required 
to be kept under the conditions of the permit by rule;
    (B) Have access to and copy, at reasonable times, any records that 
are required to be kept under the conditions of the permit by rule;
    (C) Inspect, during normal business hours or while the permitted 
source is in operation, any facilities, equipment (including monitoring 
and air pollution control equipment), practices or operations regulated 
or required under the permit by rule;
    (D) Sample or monitor, at reasonable times, substances or 
parameters for the purpose of assuring compliance with the permit by 
rule or other applicable requirements; and
    (E) Record any inspection by use of written, electronic, magnetic 
and photographic media.
    (xii) Posting of coverage. The most current Notification of 
Coverage for the permitted source must be posted prominently at the 
facility, and each affected emissions unit and any associated air 
pollution control technology must be labeled with the identification 
number listed in the Notification of Coverage for that permitted 
source.
    (xiii) Duty to obtain source-specific permit. If the reviewing 
authority intends to terminate a permitted source's coverage under this 
permit by rule for cause as provided in Sec.  49.162(d)(6), then the 
permittee shall apply for and obtain a source-specific permit as 
required by the reviewing authority.
    (xiv) Credible evidence. For the purpose of establishing whether 
the permittee violated or is in violation of any requirement of this 
permit by rule, nothing shall preclude the use, including the exclusive 
use, of any credible evidence or information relevant to whether a 
permitted source would have been in compliance with applicable 
requirements if the permittee had performed the appropriate performance 
or compliance test or procedure.
    (2) Emission limitations and standards. (i) The permittee shall 
install, maintain, and operate each affected emissions unit, including 
any associated air pollution control equipment, in a manner consistent 
with good air pollution control practices for minimizing emissions of 
NSR regulated pollutants and considering the manufacturer's recommended 
operating

[[Page 25094]]

procedures at all times, including periods of startup, shutdown, 
maintenance and malfunction. The reviewing authority will determine 
whether the permittee is using acceptable operating and maintenance 
procedures based on information available to the reviewing authority 
which may include, but is not limited to, monitoring results, opacity 
observations, review of operating and maintenance procedures, and 
inspection of the permitted source.
    (ii) The permittee shall not use volatile organic compound (VOC) 
containing materials (e.g., coatings, thinners, and clean-up solvents) 
in excess of the following amounts (solvent used in a cold cleaning 
solvent degreaser does not count toward compliance with this limit):
    (A) 5,000 gallons per year based on a 12-month rolling total for 
facilities located in ozone attainment, unclassifiable or attainment/
unclassifiable areas; and
    (B) 900 gallons per year based on a 12-month rolling total for 
facilities located in ozone nonattainment areas.
    (iii) Total annual cold cleaning solvent makeup shall not exceed 
500 gallons in any 12-month period.
    (iv) The total combined heat input capacity of all combustion units 
(such as space heaters or ovens) shall not exceed 10 MMBtu/hr. The 
combustion units shall only burn natural gas, propane, or butane.
    (v) Each combustion unit rated at 2.0 MMBtu/hr or greater located 
in a serious, severe, or extreme ozone nonattainment area shall meet 
the following requirements:
    (A) NOX emissions shall not exceed 30 ppmdv 
at 3 percent oxygen or 0.011 lb/MMBtu based on a 15-minute average.
    (B) CO emissions shall not exceed 400 ppmdv at 3 percent 
oxygen or 0.30 lb/MMBtu based on a 15-minute average.
    (vi) The capacity of any volatile liquid storage tank shall not 
exceed 19,812 gallons.
    (vii) Except as specified in paragraph (d)(2)(xv) of this section, 
the VOC content of coatings, as applied, shall not exceed 8.34 pounds 
of VOC per gallon (999.4 grams of VOC per liter).
    (viii) All painters must have certification that they have 
completed training in the proper spray application of surface coatings 
and the proper setup and maintenance of spray equipment. The minimum 
requirements for training and certification are described in paragraph 
(f) of this section. The spray application of surface coatings by 
persons who are not certified as having completed the training 
described in paragraph (f) of this section is prohibited. This 
condition does not apply to the students of an accredited surface 
coating training program who are under the direct supervision of an 
instructor who meets the requirements of this condition.
    (ix) All spray-applied coating operations must be applied in a 
spray booth, preparation station, or mobile enclosure that meets the 
following standards:
    (A) All spray booths, preparation stations, and mobile enclosures 
must be equipped with an exhaust filter certified by the manufacturer 
to achieve at least 98 percent capture of paint overspray. The 
procedure used to demonstrate filter efficiency must be consistent with 
the American Society of Heating, Refrigerating, and Air-Conditioning 
Engineers (ASHRAE) Method 52.1, ``Gravimetric and Dust-Spot Procedures 
for Testing Air-Cleaning Devices Used in General Ventilation for 
Removing Particulate Matter, June 4, 1992.'' The test coating for 
measuring filter efficiency shall be a high solids bake enamel 
delivered at a rate of at least 135 grams per minute from a 
conventional (non-HVLP) air-atomized spray gun operating at 40 pounds 
per square inch (psi) air pressure; the air flow rate across the filter 
shall be 150 feet per minute. Owners and operators may use published 
filter efficiency data provided by filter vendors to demonstrate 
compliance with this requirement and are not required to perform this 
measurement. The requirements of this paragraph do not apply to water 
wash spray booths that are operated and maintained according to the 
manufacturer's specifications.
    (B) Spray booths and preparation stations used to refinish complete 
motor vehicles or mobile equipment must be fully enclosed with a full 
roof and four complete walls or complete side curtains, and must be 
ventilated at negative pressure so that air is drawn into any openings 
in the booth walls or preparation station curtains. However, if a spray 
booth is fully enclosed and has seals on all doors and other openings 
and has an automatic pressure balancing system, it may be operated at 
up to, but not more than, 0.05 inches water gauge positive pressure.
    (C) Spray booths and preparation stations that are used to coat 
miscellaneous parts and products or vehicle subassemblies must have a 
full roof, at least three complete walls or complete side curtains, and 
must be ventilated so that air is drawn into the booth. The walls and 
roof of a booth may have openings, if needed, to allow for conveyors 
and parts to pass through the booth during the coating process.
    (D) Mobile ventilated enclosures within the site that are used to 
perform spot repairs must enclose and, if necessary, seal against the 
surface around the area being coated such that paint overspray is 
retained within the enclosure and directed to a filter to capture paint 
overspray.
    (E) The exhaust filters of spray booths shall be equipped with 
pressure gauges that indicate, in inches of water, the static pressure 
differential across the exhaust filters.
    (F) Each spray booth located in a serious, severe, or extreme ozone 
nonattainment area that uses greater than 4 gallons per day of VOC-
containing material shall install add-on controls (with greater than or 
equal to 90 percent collection efficiency and greater than or equal to 
95 percent destruction efficiency) or use material with less than 5 
percent VOC by weight or low VOC materials that result in an equivalent 
emission reduction.
    (x) Except for serious, severe, and extreme ozone nonattainment 
areas, all spray-applied coating operations must be applied with a high 
volume, low pressure (HVLP) spray gun, electrostatic application, 
airless spray gun, or air-assisted airless spray gun. An equivalent 
spray technology may be used if it that has been demonstrated by the 
spray gun manufacturer to achieve a transfer efficiency comparable to 
that of an HVLP spray gun and for which the spray gun manufacturer has 
obtained written approval from the U.S. Environmental Protection Agency 
(EPA). The requirements of this condition do not apply to spray guns 
with a cup capacity less than 3.0 fluid ounces (89 cc).
    (xi) In serious, severe, and extreme ozone nonattainment areas, all 
spray-applied coating operations must be applied with an HVLP spray 
gun, low volume low pressure (LVLP) spray gun, or air brush spray 
operation. An equivalent spray technology may be used if it has been 
demonstrated by the spray gun manufacturer to achieve a transfer 
efficiency comparable to that of an HVLP spray gun and for which the 
spray gun manufacturer has obtained written approval from the EPA.
    (xii) All paint spray gun cleaning must be done so that an atomized 
mist or spray of gun cleaning solvent and paint residue is not created 
outside of a container that collects used gun cleaning solvent. Spray 
gun cleaning may be done with, for example, hand cleaning of parts of 
the disassembled gun in a container of solvent, by flushing solvent 
through the gun

[[Page 25095]]

without atomizing the solvent and paint residue, or by using a fully 
enclosed spray gun washer. A combination of non-atomizing methods may 
also be used.
    (xiii) All VOC-containing material (e.g., coatings, thinners, and 
clean-up solvents) shall be stored in closed containers.
    (xiv) All waste materials containing VOC (e.g., soiled rags) shall 
be stored in sealed containers until properly disposed.
    (xv) Each permitted source located in a serious, severe, or extreme 
ozone nonattainment area, shall not apply a coating that has VOC 
content in excess of the limits listed in the Table 1 below. Compliance 
with the VOC limits shall be based on VOC content, including any VOC 
material added to the original coating supplied by the manufacturer, 
less water.

                       Table 1--VOC Content Limits
------------------------------------------------------------------------
                                            VOC content     VOC content
             Type of coating              limits (grams/    limits (lb/
                                              liter)          gallon)
------------------------------------------------------------------------
Adhesion Promoter.......................             540             4.5
Clear Coating...........................             250             2.1
Color Coating...........................             420             3.5
Multi-Color Coating.....................             680             5.7
Pretreatment............................             660             5.5
Primer..................................             250             2.1
Single-Stage Coating....................             340             2.8
Temporary Protective Coating............              60             0.5
Truck Bed Liner Coating.................             310             2.6
Underbody Coating.......................             430             3.6
Uniform Finishing Coating...............             540             4.5
One or Two-Component Coatings for                    120             1.0
 Plastics...............................
Tire Retread Adhesive...................             100             0.8
Any other coating type or adhesive......             250             2.1
------------------------------------------------------------------------

    (xvi) For each batch-loaded cold cleaner degreaser, the permittee 
shall comply with the requirements of paragraph (e) of this section.
    (xvii) Each permitted source located in a serious, extreme, or 
severe ozone nonattainment area, shall use cleaning materials in the 
batch-loaded cold cleaner degreaser that have a VOC content of less 
than 25 grams per liter.
    (3) Monitoring and testing requirements--(i) Initial performance 
tests. (A) Within 60 days after achieving the maximum production rate 
at which the permitted source will operate the affected emissions 
unit(s), but not later than 180 days after the first day of operation 
under the permit by rule, the permittee shall perform an initial 
performance test to verify compliance with the emission limitations in 
paragraphs (d)(2)(v) and (d)(2)(ix)(F) of this section (including 
capture efficiency requirements), if applicable. Performance tests 
shall be performed:
    (1) According to a test plan submitted at least 30 days in advance 
of the test date to the reviewing authority;
    (2) While the permitted source is operating under typical operating 
conditions;
    (3) Using test methods from 40 CFR part 60, appendix A. In lieu of 
the test methods from 40 CFR part 60, appendix A, measurements for 
NOX and CO may be taken using portable analyzers according 
to ASTM D6522-00, as incorporated by reference in 40 CFR 63.14(b)(27);
    (4) Using Method 5 with a sample volume of at least 31.8 dscf to 
determine particulate matter concentration; and
    (5) Simultaneously for CO and NOX whenever either one 
needs to be tested.
    (B) Compliance with each limit shall be demonstrated by averaging 
the results of at least three test runs of at least 1 hour duration 
each, unless the permittee can demonstrate to the satisfaction of the 
reviewing authority that the result of one of the test runs should be 
discarded. The test results the permittee submits must contain at least 
two test runs.
    (ii) The permitted source shall demonstrate compliance with the 
paint overspray capture efficiency requirements of paragraph 
(d)(2)(ix)(A) of this section using published filter efficiency data 
provided by filter vendors, as described in paragraph (d)(2)(ix)(A) of 
this section.
    (iii) The permitted source shall install, operate, and maintain an 
exhaust filter pressure gauge on each spray booth and monitor (in 
inches of water) the static pressure differential across the exhaust 
filter at least once per calendar month while the equipment is 
operating. As necessary, the exhaust filter shall be replaced according 
to the manufacturer's specifications.
    (iv) The exterior of each spray booth, preparation station, or 
mobile enclosure shall be inspected at least once per calendar month 
for evidence of overspray. If evidence of overspray is apparent, the 
permittee shall take corrective action to eliminate overspray from the 
exterior of each spray booth, preparation station, or mobile enclosure.
    (v) Prior to each use, each cold solvent cleaning degreaser shall 
be inspected for liquid leaks, visible tears, or cracks.
    (4) Recordkeeping requirements. (i) The permittee shall maintain 
all records required to be kept by this permit by rule onsite for at 
least 5 years from the date of origin of the record, unless otherwise 
stated.
    (ii) The Notification of Coverage and all documentation supporting 
the notification shall be maintained by the permittee for the duration 
of time the affected emissions unit(s) is covered under this permit by 
rule.
    (iii) The permittee shall keep records of the VOC-containing 
materials (including coatings, thinners, and clean-up solvents) as 
follows:
    (A) The name and Material Safety Data Sheet (MSDS) for each VOC-
containing material used onsite; and
    (B) The gallons of each VOC-containing material used each month and 
the resulting 12-month rolling total of VOC-containing material used. 
The 12-month rolling total is defined as the sum of the VOC material 
used during the current month and the VOC material used for the 
previous 11 months.
    (C) For each permitted source located in a serious, severe, or 
extreme ozone nonattainment area not complying with the control 
requirements in paragraph (d)(2)(ix)(F) of this section (add-on 
controls or low VOC-containing

[[Page 25096]]

material), the combined daily gallons of VOC-containing material used 
in all spray booths.
    (iv) The permittee shall keep records of the VOC content (g/L or 
lb/gal) for each coating material used onsite.
    (v) For each spray booth, preparation station, and mobile 
enclosure, the permittee shall maintain records of:
    (A) The filter efficiency of the exhaust material;
    (B) The monthly exhaust filter pressure gauge readings specified in 
Sec.  49.162(d)(3)(iii);
    (C) The date when each exhaust filter is replaced;
    (D) Any corrective actions taken to reduce overspray; and
    (E) The results of any corrective actions taken.
    (vi) The permittee shall maintain documentation from the spray gun 
manufacturer that each spray gun meets the requirements of paragraphs 
(d)(2)(x) and (xi) of this section, as applicable. For a spray gray 
that uses equivalent technology, documentation that the spray gun has 
been determined by the EPA to achieve a transfer efficiency equivalent 
to that of an HVLP spray gun is required.
    (vii) For each cold cleaning solvent degreaser, the permittee 
shall:
    (A) Maintain records of owner's manuals, or if not available, 
written maintenance and operating procedures; and
    (B) Maintain a log of any actions taken to repair leaks, tears or 
cracks and the results of the corrective action taken.
    (viii) The permittee shall maintain records of the MSDS for each 
solvent used in a solvent degreaser.
    (ix) The permittee shall maintain records of the gallons of cold 
cleaning solvent makeup used each calendar month and a total of the 
number of gallons of cold cleaning solvent makeup used in each 12-month 
period.
    (x) The results of each performance test conducted pursuant to 
paragraph (d)(3)(i) of this section shall be recorded. At a minimum, 
the permittee shall maintain records of:
    (A) The date of each test;
    (B) Each test plan;
    (C) Any documentation required to approve an alternate test method;
    (D) The results of each test;
    (E) The name of the company or entity conducting the analysis; and
    (F) Test conditions.
    (5) Notification and reporting requirements--(i) Notification of 
construction or modification, and operations. The permittee shall 
submit a written or electronic notice to the reviewing authority within 
30 days from when the permittee begins actual construction, and within 
30 days from when the permittee begins initial operations or resumes 
operations after a modification.
    (ii) Notification of change in ownership or operator. If the 
permitted source changes ownership or operator, then the new owner must 
submit a written or electronic notice to the reviewing authority within 
90 days before or after the change in ownership is effective. In the 
notice, the new permittee must provide the reviewing authority a 
written agreement containing a specific date for transfer of ownership, 
and an effective date on which the new owner assumes partial and/or 
full coverage and liability under this permit by rule. The submittal 
must identify the previous owner, and update the name, street address, 
mailing address, contact information, and any other information about 
the permitted source if it would change as a result of the change of 
ownership. The current owner shall ensure that the permitted source 
remains in compliance with the permit by rule until any such transfer 
of ownership if effective.
    (iii) Notification of closure. The permittee must submit a report 
of any permanent or indefinite closure to the reviewing authority in 
writing within 90 days after the cessation of all operations at the 
permitted source. The notification must identify the owner, the current 
location, and the last operating location of the permitted source. It 
is not necessary to submit a report of closure for regular, seasonal 
closures.
    (iv) Annual reports. The permittee shall submit an annual report on 
or before March 15 of each calendar year to the reviewing authority. 
The annual report shall cover the period from January 1 to December 31 
of the previous calendar year and shall include:
    (A) An evaluation of the permitted source's compliance status with 
the requirements in paragraph (d)(2) of this section;
    (B) Summaries of the required monitoring and recordkeeping above in 
paragraphs (d)(3) and (4) of this section; and
    (C) Summaries of deviation reports submitted pursuant to paragraph 
(d)(5)(v) of this section.
    (v) Deviation reports. The permittee shall promptly report to the 
reviewing authority any deviations as defined at 40 CFR 
71.6(a)(3)(iii)(C) from permit by rule requirements including 
deviations attributable to upset conditions. (For the purposes of this 
permit by rule, promptly shall be defined to mean: At the time the 
annual report in Sec.  49.162(d)(5)(iv) is submitted.) Deviation 
reports shall include:
    (A) The identity of the affected emissions unit(s) where the 
deviation occurred;
    (B) The nature of the deviation;
    (C) The length of time of the deviation;
    (D) The probable cause of the deviation; and
    (E) Any corrective actions or preventive measures taken as a result 
of the deviation to minimize emissions from the deviation and to 
prevent future deviations.
    (vi) Performance test reports. The permittee shall submit a test 
report to the reviewing authority within 45 days after the completion 
of any required performance test. At a minimum, the test report shall 
include:
    (A) A description of the affected emissions unit and sampling 
location(s);
    (B) The time and date of each test;
    (C) A summary of test results, reported in units consistent with 
the applicable standard;
    (D) A description of the test methods and quality assurance 
procedures used;
    (E) A summary of any deviations from the proposed test plan and 
justification for why the deviation(s) was necessary;
    (F) The amount of fuel burned, raw material consumed, and product 
produced during each test run;
    (G) Operating parameters of the affected emissions units and 
control equipment during each test run;
    (H) Sample calculations of equations used to determine test results 
in the appropriate units; and
    (I) The name of the company or entity performing the analysis.
    (vii) Reporting and notification address. The permittee shall send 
all required reports to the reviewing authority at the mailing address 
specified in paragraph (g) of this section.
    (viii) Signature verifying truth, accuracy and completeness. All 
reports required by this permit by rule shall be signed by a 
responsible official as to the truth, accuracy and completeness of the 
information. The report must state that, based on information and 
belief formed after reasonable inquiry, the statements and information 
are true, accurate, and complete. If the permittee discovers that any 
reports or notification submitted to the reviewing authority contain 
false, inaccurate, or incomplete information, the permittee shall 
notify the reviewing authority immediately and correct or amend the 
report as soon as practicable.
    (6) Changes to this permit by rule--(i) Revising, reopening, 
revoking and reissuing, or terminating for cause. The permit by rule 
may be revised,

[[Page 25097]]

reopened, revoked and reissued, or terminated for cause. The filing of 
a request by the permittee for a permit revision, revocation and re-
issuance, or termination, or of a notification of planned changes or 
anticipated noncompliance does not stay any permit by rule condition. 
This provision also applies to the documents incorporated by reference.
    (ii) Terminating coverage under this permit by rule. The reviewing 
authority may terminate coverage under the permit by rule, and thereby 
terminate that permittee's authorization to construct or modify, and 
that permitted source's authorization to operate under this permit by 
rule for cause as defined in paragraph (b) of this section. The 
reviewing authority may provide the permittee with notice of the intent 
to terminate, and delay the effective date of the termination to allow 
the permittee to obtain a source-specific permit as required by the 
reviewing authority.
    (iii) Permit becomes invalid. Authority to construct and operate 
under this permit by rule becomes invalid if the permittee does not 
commence construction within 18 months after the notification of 
coverage is received by the reviewing authority, if the permittee 
discontinues construction for a period of 18 months or more, or if the 
permittee does not complete construction within a reasonable time. The 
reviewing authority may extend the 18-month period upon a satisfactory 
showing that an extension is justified, according to 40 CFR 
49.156(e)(8).
    (e) Standards for batch-loaded cold cleaner degreasers. (1) Each 
degreaser shall be operated in accordance with the manufacturer's 
specifications and shall be used with tightly fitting covers that are 
free of cracks, holes, or other defects. In addition, the cover shall 
be closed at all times when the degreaser contains solvent, except 
during parts entry and removal or performing maintenance or monitoring 
that requires the removal of the cover.
    (2) The solvent container shall be free of all liquid leaks. 
Auxiliary degreaser equipment, such as pumps, water separators, steam 
traps, or distillation units, shall not have any liquid leaks, visible 
tears, or cracks. In addition, any liquid leak, visible tear, or crack 
detected pursuant to the provisions of this condition shall be repaired 
within 48 hours, or the degreaser shall be drained of all solvent and 
shut down until replaced or repaired.
    (3) All waste solvents shall be stored in properly identified and 
sealed containers. All associated pressure relief devices shall not 
allow liquid solvents to drain out.
    (4) Solvent flow cleaning shall be done within the freeboard area, 
and shall be done by a liquid stream rather than a fine, atomized, or 
shower-type spray. Solvent flow shall be directed downward to avoid 
turbulence at the air-solvent interface and to prevent liquid solvent 
from splashing outside of the degreaser.
    (5) Degreasing of porous or absorbent materials, such as cloth, 
leather, wood, or rope is prohibited.
    (6) Workspace and ventilation fans shall not be positioned in such 
a way as to direct airflow near the degreaser openings.
    (7) Spills during solvent transfer shall be wiped up immediately 
and the used wipe rags shall be stored in closed containers that are 
handled in accordance with paragraph (e)(3) of this section.
    (8) Solvent levels shall not exceed the fill line.
    (9) The parts to be cleaned shall be racked in a manner that will 
minimize the drag-out losses.
    (10) The freeboard ratio shall be 0.75 or greater. Parts shall be 
drained immediately after the cleaning until at least 15 seconds have 
elapsed; or dripping of solvent ceases; or the parts become visibly 
dry. Parts with blind holes or cavities shall be tipped or rotated 
before being removed from a degreaser, such that the solvents in the 
blind holes or cavities are drained in accordance with the above 
requirements.
    (11) Draining or filling of solvent containers shall be performed 
beneath the liquid solvent surface.
    (12) Solvent agitation, where necessary, shall be carried out only 
by pump recirculation, ultrasonics, a mixer, or by air agitation. Air 
agitation shall be accomplished under the following conditions:
    (i) The air agitation unit shall be equipped with a gauge and a 
device that limits air pressure into the degreaser to less than two 
pounds per square inch gauge;
    (ii) The cover must remain closed while the air agitation system is 
in operation; and
    (iii) Pump circulation shall be performed without causing 
splashing.
    (13) Airless/Air-tight Cleaning System Requirements--In lieu of 
meeting the requirements of paragraphs (e)(1) through (12) of this 
section, the permittee may use an airless/air-tight batch cleaning 
system provided that all of the following applicable requirements are 
met:
    (i) The equipment is operated in accordance with the manufacturer's 
specifications and operated with a door or other pressure sealing 
apparatus that is in place during all cleaning and drying cycles.
    (ii) All waste solvents are stored in properly identified and 
sealed containers.
    (iii) All associated pressure relief devices shall not allow liquid 
solvents to drain out.
    (iv) Spills during solvent transfer shall be wiped up immediately, 
and the used wipe rags shall be stored in closed containers that are 
handled in accordance with paragraph (e)(3) of this section.
    (v) The equipment is maintained in a vapor-tight, leak-free 
condition and any leak is a violation.
    (f) Training and certification requirements for spray-applied 
surface coating personnel. The owner or operator of the permitted 
source must ensure and certify that all new and existing personnel, 
including contract personnel, who spray apply surface coatings are 
trained in the proper application of surface coatings as required by 
this permit by rule. The training program must include, at a minimum, 
the items listed in this paragraph (f). All personnel must be trained 
no later than 180 days after hiring.
    (1) A list of all current personnel by name and job description who 
are required to be trained.
    (2) Hands-on and classroom instruction that addresses, at a 
minimum, initial and refresher training in the following topics:
    (i) Spray gun equipment selection, set up, and operation, including 
measuring coating viscosity, selecting the proper fluid tip or nozzle, 
and achieving the proper spray pattern, air pressure and volume, and 
fluid delivery rate.
    (ii) Spray technique for different types of coatings to improve 
transfer efficiency and minimize coating usage and overspray, including 
maintaining the correct spray gun distance and angle to the part, using 
proper banding and overlap, and reducing lead and lag spraying at the 
beginning and end of each stroke.
    (iii) Routine spray booth and filter maintenance, including filter 
selection and installation.
    (iv) Compliance with the requirements of this Permit by Rule.
    (3) A description of the methods to be used at the completion of 
initial or refresher training to demonstrate, document, and provide 
certification of successful completion of the required training. Owners 
and operators who can

[[Page 25098]]

show by documentation or certification that a painter's work experience 
and/or training has resulted in training equivalent to the training 
required in paragraph (f)(2) of this section are not required to 
provide the initial training required by that same paragraph to the 
painter.
    (4) Painter training that was completed within 5 years prior to the 
date training is required, and that meets the requirements specified in 
paragraph (f)(2) of this section satisfies this requirement and is 
valid for a period not to exceed 5 years after the date the training 
was completed.
    (5) Training and certification will be valid for a period not to 
exceed 5 years after the date the training is completed, and all 
personnel must receive refresher training that meets the requirements 
of this Sec.  49.162(f) and be re-certified every 5 years.
    (g) List of reviewing authorities and areas of coverage.

                          Table 2--List of Reviewing Authorities and Areas of Coverage
----------------------------------------------------------------------------------------------------------------
                                      Address for       Address for all
           EPA region               notification of   other notification     Area covered        Phone number
                                       coverage           and reports
----------------------------------------------------------------------------------------------------------------
Region I........................  EPA New England, 5  EPA New England, 5  Connecticut,        888-372-7341 617-
                                   Post Office         Post Office         Maine,              918-1111
                                   Square, Suite       Square, Suite       Massachusetts,
                                   100, Mail Code      100, Mail Code      New Hampshire,
                                   OEP05-2, Boston,    OES04-2, Boston,    Rhode Island, and
                                   MA 02109-3912.      MA 02109-3912.      Vermont.
Region II.......................  Chief, Air          Chief, Air          New Jersey, New     877-251-4575
                                   Programs Branch,    Compliance          York, Puerto
                                   Clean Air and       Branch, Division    Rico, and Virgin
                                   Sustainability      of Enforcement      Islands.
                                   Division, EPA       and Compliance
                                   Region 2, 290       Assistance, EPA
                                   Broadway, 25th      Region 2, 290
                                   Floor, New York,    Broadway, 21st
                                   NY 10007-1866.      Floor, New York,
                                                       NY 10007-1866.
Region III......................  Office of Permits   Office of Air       Delaware, District  800-438-2474 215-
                                   and Air Toxics,     Enforcement and     of Columbia,        814-5000
                                   3AP10, EPA Region   Compliance          Maryland,
                                   3, 1650 Arch        Assurance, 3AP20,   Pennsylvania,
                                   Street,             EPA Region 3,       Virginia, and
                                   Philadelphia, PA    1650 Arch Street,   West Virginia.
                                   19103.              Philadelphia, PA
                                                       19103.
Region IV.......................  Chief, Air Permits  Chief, Air & EPCRA  Alabama, Florida,   800-241-1754 404-
                                   Section, EPA        Enforcement         Georgia,            562-9000
                                   Region 4 APTMD,     Branch, EPA         Kentucky,
                                   61 Forsyth          Region 4 APTMD,     Mississippi,
                                   Street, Atlanta,    61 Forsyth          North Carolina,
                                   GA 30303.           Street, SW,         South Carolina,
                                                       Atlanta, GA 30303.  and Tennessee.
Region V........................  Air Permits         Air Enforcement     Illinois, Indiana,  800-621-8431 312-
                                   Section, Air        and Compliance      Michigan,           353-2000
                                   Programs Branch     Assurance Branch    Minnesota, Ohio,
                                   (AR-18J), EPA       (AE-17J), Air and   and Wisconsin.
                                   Region 5, 77 West   Radiation
                                   Jackson Blvd,       Division, EPA
                                   Chicago, Illinois   Region 5, 77 West
                                   60604.              Jackson Blvd,
                                                       Chicago, IL 60604.
Region VI.......................  Multimedia          Compliance and      Arkansas,           800-887-6063 214-
                                   Planning and        Enforcement         Louisiana, New      665-2760
                                   Permitting          Correspondence:     Mexico, Oklahoma,
                                   Division, EPA       Compliance          and Texas.
                                   Region 6, 1445      Assurance and
                                   Ross Avenue (6PD-   Enforcement
                                   R), Dallas, TX      Division, EPA
                                   75202.              Region 6, 1445
                                                       Ross Avenue
                                                       (6EN), Dallas, TX
                                                       75202.
Region VII......................  Chief, Air          Chief, Air          Iowa, Kansas,       800-223-0425 913-
                                   Permitting &        Permitting &        Missouri, and       551-7003
                                   Compliance          Compliance          Nebraska.
                                   Branch, EPA         Branch, EPA
                                   Region 7, 11201     Region 7, 11201
                                   Renner Blvd,        Renner Blvd,
                                   Lenexa, KS 66219.   Lenexa, KS 66219.
Region VIII.....................  U.S. Environmental  U.S. Environmental  Colorado, Montana,  800-227-8917 303-
                                   Protection          Protection          North Dakota,       312-6312
                                   Agency, Region 8,   Agency, Region 8,   South Dakota,
                                   Office of           Office of           Utah, and Wyoming.
                                   Partnerships and    Enforcement,
                                   Regulatory          Compliance &
                                   Assistance,         Environmental
                                   Tribal Air          Justice, Air
                                   Permitting          Toxics and
                                   Program, 8P-AR,     Technical
                                   1595 Wynkoop        Enforcement
                                   Street, Denver,     Program, 8ENF-AT,
                                   Colorado 80202.     1595 Wynkoop
                                                       Street, Denver,
                                                       CO 80202.
Region IX.......................  Chief, Permits      Enforcement         American Samoa,     866-EPA-9378 415-
                                   Office (Air-3),     Division            Arizona,            947-8000
                                   Air Division, EPA   Director, Attn:     California, Guam,
                                   Region 9, 75        Air & TRI Section   Hawaii, Navajo
                                   Hawthorne St, San   (ENF-2-1), EPA      Nation Nevada,
                                   Francisco, CA       Region 9, 75        and Northern
                                   94105.              Hawthorne St, San   Mariana Islands.
                                                       Francisco, CA
                                                       94105.
Region X........................  Tribal Air Permits  Tribal Air Permits  Alaska, Idaho,      800-424-4372 206-
                                   Coordinator, U.S.   Coordinator, U.S.   Oregon, and         553-1200
                                   EPA, Region 10,     EPA, Region 10,     Washington.
                                   AWT-150, 1200       AWT-150, 1200
                                   Sixth Avenue,       Sixth Avenue,
                                   Suite 900,          Suite 900,
                                   Seattle, WA 98101.  Seattle, WA 98101.
----------------------------------------------------------------------------------------------------------------


0
5. Section 49.163 is added to read as follows:


Sec.  49.163  Air quality permit by rule for new or modified true minor 
source petroleum dry cleaning facilities in Indian country.

    (a) Abbreviations and acronyms:

CAA or the Act--Federal Clean Air Act
CFR--Code of Federal Regulations
EPA--United States Environmental Protection Agency
NAAQS--National Ambient Air Quality Standards
NSR--New Source Review
PSD--Prevention of Significant Deterioration

    (b) Definitions for the purposes of this permit by rule--(1) Cause 
means with respect to the reviewing authority's ability to terminate a 
permitted source's coverage under a permit that:

[[Page 25099]]

    (i) The permittee is not in compliance with the provisions of this 
permit by rule;
    (ii) The reviewing authority determines that the emissions 
resulting from the construction or modification of the permitted source 
significantly contribute to National Ambient Air Quality Standard 
violations, which are not adequately addressed by the requirements in 
this permit by rule;
    (iii) The reviewing authority has reason to believe that the 
permittee obtained coverage under the permit by rule by fraud or 
misrepresentation; or
    (iv) The permittee failed to disclose a material fact required by 
the Notification of Coverage or the requirements applicable to the 
permitted source of which the applicant had or should have had 
knowledge at the time the permittee submitted the Notification of 
Coverage.
    (2) Construction means any physical change or change in the method 
of operation including fabrication, erection, installation, demolition, 
or modification of an affected emissions unit that would result in a 
change of emissions.
    (3) Notification of Coverage means the permit notification that 
contains all of the information required in the standard notification 
form for this permit by rule.
    (4) Permittee means the owner or operator of a permitted source.
    (5) Permitted source means each petroleum drying cleaning facility 
for which a source submits a complete Notification of Coverage.
    (6) Responsible official means one of the following:
    (i) For a corporation: A president, secretary, treasurer, or vice-
president of the corporation in charge of a principal business 
function, or any other person who performs similar policy or decision-
making functions for the corporation, or a duly authorized 
representative of such person if the representative is directly 
responsible for the overall operation of the permitted source.
    (ii) For a partnership or sole proprietorship: A general partner or 
the proprietor, respectively.
    (iii) For a public agency: Either a principal executive officer or 
ranking elected official, such as a chief executive officer having 
responsibility for the overall operations of a principal geographic 
unit of the agency.
    (7) Solvent recovery dryer means a class of dry cleaning dyers that 
employs a condenser to condense and recovery solvent vapors evaporated 
in a closed-loop stream of heated air, together with the piping and 
ductwork used in the installation of this device.
    (c) Information about this permit by rule--(1) Applicability. 
Pursuant to the provisions of the Clean Air Act (CAA), subchapter I, 
part D and 40 CFR part 49, subpart C, this permit by rule authorizes 
the construction or modification and the operation of each stationary 
petroleum dry cleaning facility for which a reviewing authority 
receives a completed Notification of Coverage (permitted source).
    (2) Eligibility. To be eligible for coverage under this permit by 
rule, the permitted source must qualify as a true minor source as 
defined in 40 CFR 49.152 and satisfied the requirements in 40 CFR 
49.156(f)(6)(iii).
    (3) Notification of Coverage. Requirements for submitting a 
Notification of Coverage are contained in paragraph (d)(1) of this 
section. The information contained in each permitted source's 
Notification of Coverage is hereby enforceable under this permit by 
rule.
    (4) Termination. Paragraph (d)(6) of this section addresses a 
reviewing authority's ability to revise, revoke and reissue, or 
terminate coverage under this permit by rule. It also addresses the 
reviewing authority's ability to terminate an individual permitted 
source's coverage under this permit by rule.
    (5) Definitions. The terms used herein shall have the meaning as 
defined in 40 CFR 49.152, unless otherwise defined in paragraph (b) of 
this section. If a term is not defined, it shall be interpreted in 
accordance with normal business use.
    (d) Permit by rule terms and conditions. The following applies to 
each permittee and permitted source with respect to only the affected 
emissions units and any associated air pollution control technologies 
in that permitted source's Notification of Coverage.
    (1) General provisions--(i) Obtaining coverage under this permit by 
rule. To obtain coverage under this permit by rule, an applicant must 
submit a completed Notification of Coverage to the appropriate 
reviewing authority for the area in which the permitted source is or 
will be located (the Notification of Coverage Form can be found at: 
http://www.epa.gov/air/tribal/tribalnsr.html). Table 1 of paragraph (f) 
of this section contains a list of reviewing authorities and their area 
of coverage. You must also submit a copy of the Notification of 
Coverage to the Indian governing body for any area in which the 
permitted source will operate.
    (ii) Construction and operation. The permittee shall construct or 
modify and shall operate the affected emissions units and any 
associated air pollution control technologies in compliance with this 
permit by rule and all other applicable federal air quality 
regulations; and in a manner consistent with representations made by 
the permittee in the Notification of Coverage.
    (iii) Locations. This permit by rule only authorizes the permittee 
to construct or modify and to operate the permitted source at the 
location listed in the Notification of Coverage for that permitted 
source.
    (iv) Liability. This permit by rule does not release the permittee 
from any liability for compliance with other applicable federal and 
tribal environmental laws and regulations, including the CAA.
    (v) Severability. The provisions of this permit by rule are 
severable. If any portion of this permit by rule is held invalid, the 
remaining terms and conditions of this permit by rule shall remain 
valid and in force.
    (vi) Compliance. The permittee must comply with all provisions of 
this permit, including emission limitations that apply to the affected 
emissions units at the permitted source. Noncompliance with any permit 
by rule provision is a violation of the permit by rule and may 
constitute a violation of the CAA; is grounds for an enforcement 
action; and is grounds for the reviewing authority to revoke and 
terminate the permitted source's coverage under this permit by rule.
    (vii) National Ambient Air Quality Standards (NAAQS)/Prevention of 
Significant Deterioration (PSD) Protection. The permitted source must 
not cause or contribute to a NAAQS violation or, in an attainment area, 
must not cause or contribute to a PSD increment violation.
    (viii) Unavailable defense. It is not a defense for the permittee 
in an enforcement action that it would have been necessary to halt or 
reduce the permitted activity in order to maintain compliance with the 
provisions of this permit by rule.
    (ix) Property rights. The permit by rule does not convey any 
property rights of any sort or any exclusive privilege.
    (x) Information requests. You, as the permittee, shall furnish to 
the reviewing authority, within 30 days unless another timeframe is 
specified by the EPA, any information that the reviewing authority may 
request in writing to determine whether cause exists for revising, 
revoking and reissuing, or terminating coverage under the permit by 
rule or to determine compliance with the permit by rule. For any such 
information claimed to be confidential, the permittee must submit a 
claim of confidentiality

[[Page 25100]]

in accordance with 40 CFR part 2, subpart B.
    (xi) Inspection and entry. Upon presentation of proper credentials, 
the permittee must allow a representative of the reviewing authority 
to:
    (A) Enter upon the premises where a permitted source is located or 
emissions-related activity is conducted or where records are required 
to be kept under the conditions of the permit by rule;
    (B) Have access to and copy, at reasonable times, any records that 
are required to be kept under the conditions of the permit by rule;
    (C) Inspect, during normal business hours or while the permitted 
source is in operation, any facilities, equipment (including monitoring 
and air pollution control equipment), practices or operations regulated 
or required under the permit by rule;
    (D) Sample or monitor, at reasonable times, substances or 
parameters for the purpose of assuring compliance with the permit by 
rule or other applicable requirements; and
    (E) Record any inspection by use of written, electronic, magnetic 
and photographic media.
    (xii) Posting of coverage. The most current Notification of 
Coverage for the permitted source must be posted prominently at the 
facility, and each affected emissions unit and any associated air 
pollution control technology must be labeled with the identification 
number listed in the Notification of Coverage for that permitted 
source.
    (xiii) Duty to obtain a source-specific permit. If the reviewing 
authority intends to terminate a permitted source's coverage under this 
permit by rule for cause as provided in Sec.  49.163(d)(6), then the 
permittee shall apply for and obtain a source-specific permit as 
required by the reviewing authority.
    (xiv) Credible evidence. For the purpose of establishing whether 
the permittee violated or is in violation of any requirement of this 
permit by rule, nothing shall preclude the use, including the exclusive 
use, of any credible evidence or information relevant to whether a 
permitted source would have been in compliance with applicable 
requirements if the permittee had performed the appropriate performance 
or compliance test or procedure.
    (2) Emission limitations and standards. (i) The permittee shall 
install, maintain, and operate each affected emissions unit, including 
any associated air pollution control equipment, in a manner consistent 
with good air pollution control practices for minimizing emissions of 
NSR regulated pollutants and considering the manufacturer's recommended 
operating procedures at all times, including periods of startup, 
shutdown, maintenance and malfunction. The reviewing authority will 
determine whether the permittee is using acceptable operating and 
maintenance procedures based on information available to the reviewing 
authority which may include, but is not limited to, monitoring results, 
opacity observations, review of operating and maintenance procedures, 
and inspection of the permitted source.
    (ii) The permittee shall not consume more than the amount of 
petroleum solvent specified below:
    (A) 5,600 gallons per year based on a rolling 12-month total for a 
facility located in an ozone attainment, unclassifiable or attainment/
unclassifiable area; or
    (B) 1,300 gallons per year based on a rolling 12-month total for a 
facility located in an ozone nonattainment area.
    (iii) If your facility has a total manufacturer's rated dryer 
capacity equal to or greater than 38 kilograms (84 pounds), then you 
shall meet the following requirements:
    (A) Each petroleum solvent dry cleaning dryer shall be a solvent 
recovery dryer. The solvent recovery dryer(s) shall be properly 
installed, operated and maintained according to the manufacturer's 
specifications.
    (B) Each petroleum solvent dry cleaning dryer located in a serious, 
severe or extreme ozone nonattainment area shall be a closed loop, dry-
to-dry machine with a refrigerated condenser (manufacture red on or 
after October 20, 2000) or with an evaporatively cooled condenser 
(manufacture red on or after July 9, 2004.)
    (iv) The maximum heat input capacity of each fuel combustion unit 
shall not exceed 10 MMBtu/hour and only natural gas, propane or butane 
may be used as fuels.
    (v) The total heat input capacity of the fuel combustion units 
shall be equal to or less than 30 MMBtu/hour.
    (vi) The capacity of any volatile organic liquid storage tank shall 
not exceed 19,812 gallons.
    (vii) All solvents shall be stored in closed containers.
    (viii) Button and lint traps shall be cleaned each working day.
    (ix) All washer lint traps, button traps, access doors, and other 
parts of the equipment where solvent may be exposed to the atmosphere 
shall be kept closed at all times except when required for proper 
operation or maintenance.
    (x) The still residue, used filtering material, lint, used solvent 
and all other wastes containing solvent shall be stored in sealed 
containers until properly disposed.
    (xi) If your facility is located in a serious, severe or extreme 
ozone nonattainment area, then the permittee shall also comply with the 
additional equipment specifications and operating requirements 
specified in Sec.  49.163(e).
    (3) Monitoring and testing requirements. Each petroleum solvent dry 
cleaning dryer shall be inspected every 15 calendar days for evidence 
of leaks and all vapor or liquid leaks shall be repaired within the 
subsequent 15 calendar day period.
    (4) Recordkeeping requirements. (i) The permittee shall maintain 
all records required to be kept by this permit by rule for at least 5 
years from the date of origin, unless otherwise stated, either onsite 
or at a convenient location, such that they can be delivered to the 
reviewing authority within 24 hours of a request.
    (ii) The Notification of Coverage and all documentation supporting 
the notification shall be maintained by the permittee for the duration 
of time the affected emissions unit(s) is covered under this permit by 
rule.
    (iii) The permittee shall maintain a log of:
    (A) The results of the daily leak inspections, any corrective 
actions taken to repair leaks, and the results of any corrective 
actions taken;
    (B) Each type of petroleum solvent used at the facility;
    (C) The date, type, and amount of solvent (in gallons) added to the 
solvent tank of each dry cleaning machine; and
    (D) The monthly total gallons of petroleum solvent used and the 
resulting 12-month rolling total of solvent used. The 12-month rolling 
total is defined as the sum of the gallons of petroleum solvent used 
during the current month and the gallons of petroleum solvent used for 
the previous eleven (11) months.
    (5) Notification and reporting requirements--(i) Notification of 
construction or modification, and operations. The permittee shall 
submit a written or electronic notice to the reviewing authority within 
30 days from when the permittee begins actual construction, and within 
30 days from when the permittee begins initial operations or resumes 
operations after modification.
    (ii) Notification of change in ownership or operator. If the 
permitted source changes ownership or operator, then the new owner must 
submit a written or electronic notice to the

[[Page 25101]]

reviewing authority within 90 days before or after the change in 
ownership is effective. In the notice, the new permittee must provide 
the reviewing authority a written agreement containing a specific date 
for transfer of ownership, and an effective date on which the new owner 
assumes partial and/or full coverage and liability under this permit by 
rule. The submittal must identify the previous owner, and update the 
name, street address, mailing address, contact information, and any 
other information about the permitted source if it would change as a 
result of the change of ownership. The current owner shall ensure that 
the permitted source remains in compliance with the permit by rule 
until such transfer of ownership is effective.
    (iii) Notification of closure. The permittee must submit a report 
of any permanent or indefinite closure to the reviewing authority in 
writing within 90 days after the cessation of all operations at the 
permitted source. It is not necessary to submit a report of closure for 
regular, seasonal closures.
    (iv) Annual reports. The permittee shall submit an annual report on 
or before March 15 of each calendar year to the reviewing authority. 
The annual report shall cover the period from January 1 to December 31 
of the previous calendar year and shall include:
    (A) An evaluation of the permitted source's compliance status with 
the requirements in paragraph (d)(2) of this section;
    (B) Summaries of the required monitoring and recordkeeping in 
paragraphs (d)(3) and (4) of this section; and
    (C) Summaries of deviation reports submitted pursuant to paragraph 
(d)(5)(v) of this section.
    (v) Deviation reports. The permittee shall promptly report to the 
reviewing authority any deviations as defined at 40 CFR 
71.6(a)(3)(iii)(C) from permit by rule requirements including 
deviations attributable to upset conditions. (For the purposes of this 
permit by rule, promptly shall be defined to mean: At the time the 
annual report in paragraph (d)(5)(iv) of this section is submitted.) 
Deviation reports shall include:
    (A) The identity of affected emissions unit where the deviation 
occurred.
    (B) The nature of the deviation;
    (C) The length of time of the deviation;
    (D) The probable cause of the deviation; and
    (E) Any corrective actions or preventive measures taken as a result 
of the deviation to minimize emissions from the deviation and to 
prevent future deviations.
    (vi) Reporting and notification address. The permittee shall send 
all required reports to the reviewing authority at the mailing address 
specified in paragraph (f) of this section.
    (vii) Signature verifying truth, accuracy and completeness. All 
reports required by this permit by rule shall be signed by a 
responsible official as to the truth, accuracy and completeness of the 
information. The report must state that, based on information and 
belief formed after reasonable inquiry, the statements and information 
are true, accurate, and complete. If the permittee discovers that any 
reports or notification submitted to the reviewing authority contain 
false, inaccurate, or incomplete information, the permittee shall 
notify the reviewing authority immediately and correct or amend the 
report as soon as practicable.
    (6) Changes to this permit by rule--(i) Revising, reopening, 
revoking and reissuing, or terminating for cause. The permit by rule 
may be revised, reopened, revoked and reissued, or terminated for 
cause. The filing of a request by the permittee for a permit revision, 
revocation and re-issuance, or termination, or of a notification of 
planned changes or anticipated noncompliance does not stay any permit 
by rule condition. This provision also applies to the documents 
incorporated by reference.
    (ii) Terminating coverage under this permit by rule. The reviewing 
authority may terminate coverage under the permit by rule, and thereby 
terminate that permittee's authorization to construct or modify, and 
that permitted source's authorization to operate under this permit by 
rule for cause as defined in paragraph (b) of this section. The 
reviewing authority may provide the permittee with notice of the intent 
to terminate, and delay the effective date of the termination to allow 
the permittee to obtain a source-specific permit.
    (iii) Permit becomes invalid. Authority to construct and operate 
under this permit by rule becomes invalid if the permittee does not 
commence construction within 18 months after the effective date of the 
Request for Coverage under the permit by rule, if the permittee 
discontinues construction for a period of 18 months or more, or if the 
permittee does not complete construction within a reasonable time. The 
reviewing authority may extend the 18-month period upon a satisfactory 
showing that an extension is justified according to 40 CFR 
49.156(e)(8).
    (e) Petroleum dry cleaning facilities in certain nonattainment 
areas. For facilities located in serious, severe, or extreme ozone 
nonattainment areas, the permittee shall operate and maintain the 
solvent dry cleaning system in accordance with the requirements 
specified below and in accordance with the manufacturer's 
recommendations:
    (1) General specifications. (i) All parts of the dry cleaning 
system where solvent may be exposed to the atmosphere or workroom shall 
be kept closed at all times except when access is required for proper 
operation and maintenance.
    (ii) Wastewater evaporators shall be operated to ensure that no 
liquid solvent or visible emulsion is allowed to vaporize to the 
atmosphere.
    (2) Additional specification for closed-loop machines. (i) A 
closed-loop machine means dry cleaning equipment in which washing, 
extraction, and drying is performed within the same single affected 
emissions unit and which re-circulates and recovers the solvent-laden 
vapor.
    (ii) A closed-loop machine shall not exhaust to the atmosphere or 
workroom during operation except when the vacuum pump exhausts to 
maintain a continuous vacuum.
    (iii) For any closed-loop machine that is not equipped with a 
locking mechanism, the operator shall not open the door of a closed-
loop machine prior to completion of the drying cycle.
    (iv) For any closed-loop machine that is equipped with a locking 
mechanism, the operator shall not inactivate the locking mechanism and 
open the door of a closed-loop machine prior to completion of the 
drying cycle.
    (3) Leak check and repair requirements. (i) No less frequently than 
monthly, the owner or operator shall inspect the dry cleaning system 
for liquid and vapor leaks, including, but not limited to, the 
following:
    (A) Hose connections, unions, couplings, valves, and flanges;
    (B) Machine door gasket and seating of the machine cylinder;
    (C) Filter head gasket and seating;
    (D) Pumps;
    (E) Base tanks and storage containers;
    (F) Water separators;
    (G) Filter sludge recovery;
    (H) Seals and gaskets of distillation unit(s);
    (I) Diverter valves;
    (J) Saturated lint from lint trap basket;
    (K) Button trap lid;
    (L) Cartridge or other types of filters;
    (M) Seals, gaskets and the diverter valve of the refrigerated 
condenser;
    (N) Exhaust stream ducts;
    (O) Lint trap ducts; and
    (P) Gaskets and ducts of the carbon adsorber.

[[Page 25102]]

    (ii) To inspect for a vapor leak, the operator shall use at least 
one of the following techniques:
    (A) Soap bubble technique in accordance with the procedures in EPA 
Method 21, section 4.3.3--Alternative Screening Procedure;
    (B) A non-halogenated hydrocarbon detector;
    (C) A portable hydrocarbon analyzer; or
    (D) An alternative method approved by the reviewing authority.
    (iii) To inspect for a liquid leak, the operator shall visually 
inspect the equipment for liquid leaking in a visible mist or at the 
rate of more than one drop every 3 minutes.
    (iv) Any liquid leak or vapor leak that has been detected by the 
operator shall be repaired within 3 working days of detection. If 
repair parts are not available at the facility, the parts shall be 
ordered within 2 working days of detecting such a leak and the operator 
shall provide written notification to the reviewing authority that 
explains the reason(s) for delaying the leak repair. Such repair parts 
shall be installed within 5 working days after receipt. A facility with 
a leak that has not been repaired by the end of the 7th working day 
after detection shall not operate the dry cleaning equipment, until the 
leak is repaired.
    (f) List of reviewing authorities and areas of coverage.

                          Table 1--List of Reviewing Authorities and Areas of Coverage
----------------------------------------------------------------------------------------------------------------
                                                        Address for all
                                      Address for            other
           EPA region               notification of    notifications and     Area covered        Phone number
                                       coverage             reports
----------------------------------------------------------------------------------------------------------------
Region I........................  EPA New England, 5  EPA New England, 5  Connecticut,        888-372-7341 617-
                                   Post Office         Post Office         Maine,              918-1111
                                   Square, Suite       Square, Suite       Massachusetts,
                                   100, Mail Code      100, Mail Code      New Hampshire,
                                   OEP05-2, Boston,    OES04-2, Boston,    Rhode Island, and
                                   MA 02109-3912.      MA 02109-3912.      Vermont.
Region II.......................  Chief, Air          Chief, Air          New Jersey, New     877-251-4575
                                   Programs Branch,    Compliance          York, Puerto
                                   Clean Air and       Branch, Division    Rico, and Virgin
                                   Sustainability      of Enforcement      Islands.
                                   Division, EPA       and Compliance
                                   Region 2, 290       Assistance, EPA
                                   Broadway, 25th      Region 2, 290
                                   Floor, New York,    Broadway, 21st
                                   NY 10007-1866.      Floor, New York,
                                                       NY 10007-1866.
Region III......................  Office of Permits   Office of Air       Delaware, District  800-438-2474 215-
                                   and Air Toxics,     Enforcement and     of Columbia,        814-5000
                                   3AP10, EPA Region   Compliance          Maryland,
                                   3, 1650 Arch        Assurance, 3AP20,   Pennsylvania,
                                   Street,             EPA Region 3,       Virginia, and
                                   Philadelphia, PA    1650 Arch Street,   West Virginia.
                                   19103.              Philadelphia, PA
                                                       19103.
Region IV.......................  Chief, Air Permits  Chief, Air & EPCRA  Alabama, Florida,   800-241-1754 404-
                                   Section, EPA        Enforcement         Georgia,            562-9000
                                   Region 4 APTMD,     Branch, EPA         Kentucky,
                                   61 Forsyth          Region 4 APTMD,     Mississippi,
                                   Street, Atlanta,    61 Forsyth Street   North Carolina,
                                   GA 30303.           SW., Atlanta, GA    South Carolina,
                                                       30303.              and Tennessee.
Region V........................  Air Permits         Air Enforcement     Illinois, Indiana,  800-621-8431 312-
                                   Section, Air        and Compliance      Michigan,           353-2000
                                   Programs Branch     Assurance Branch    Minnesota, Ohio,
                                   (AR-18J), EPA       (AE-17J), Air and   and Wisconsin.
                                   Region 5, 77 West   Radiation
                                   Jackson Blvd,       Division, EPA
                                   Chicago, IL 60604.  Region 5, 77 West
                                                       Jackson Blvd,
                                                       Chicago, IL 60604.
Region VI.......................  Multimedia          Compliance and      Arkansas,           800-887-6063 214-
                                   Planning and        Enforcement         Louisiana, New      665-2760
                                   Permitting          Correspondence:,    Mexico, Oklahoma,
                                   Division, EPA       Compliance          and Texas.
                                   Region 6, 1445      Assurance and
                                   Ross Avenue (6PD-   Enforcement
                                   R), Dallas, TX      Division, EPA
                                   75202.              Region 6, 1445
                                                       Ross Avenue
                                                       (6EN), Dallas, TX
                                                       75202.
Region VII......................  Chief, Air          Chief, Air          Iowa, Kansas,       800-223-0425 913-
                                   Permitting &        Permitting &        Missouri, and       551-7003
                                   Compliance          Compliance          Nebraska.
                                   Branch, EPA         Branch, EPA
                                   Region 7, 11201     Region 7, 11201
                                   Renner Blvd,        Renner Blvd,
                                   Lenexa, KS 66219.   Lenexa, KS 66219.
Region VIII.....................  U.S. Environmental  U.S. Environmental  Colorado, Montana,  800-227-8917 303-
                                   Protection          Protection          North Dakota,       312-6312
                                   Agency, Region 8,   Agency, Region 8,   South Dakota,
                                   Office of           Office of           Utah, and Wyoming.
                                   Partnerships and    Enforcement,
                                   Regulatory          Compliance &
                                   Assistance,         Environmental
                                   Tribal Air          Justice, Air
                                   Permitting          Toxics and
                                   Program, 8P-AR,     Technical
                                   1595 Wynkoop        Enforcement
                                   Street, Denver,     Program, 8ENF-AT,
                                   CO 80202.           1595 Wynkoop
                                                       Street, Denver,
                                                       CO 80202.
Region IX.......................  Chief, Permits      Enforcement         American Samoa,     866-EPA-9378 415-
                                   Office (Air-3),     Division            Arizona,            947-8000
                                   Air Division, EPA   Director, Attn:     California, Guam,
                                   Region 9, 75        Air & TRI Section   Hawaii, Navajo
                                   Hawthorne St, San   (ENF-2-1), EPA      Nation Nevada,
                                   Francisco, CA       Region 9, 75        and Northern
                                   94105.              Hawthorne St, San   Mariana Islands.
                                                       Francisco, CA
                                                       94105.
Region X........................  Tribal Air Permits  Tribal Air Permits  Alaska, Idaho,      800-424-4372 206-
                                   Coordinator, U.S.   Coordinator, U.S.   Oregon, and         553-1200
                                   EPA, Region 10,     EPA, Region 10,     Washington.
                                   AWT-150, 1200       AWT-150, 1200
                                   Sixth Avenue,       Sixth Avenue,
                                   Suite 900,          Suite 900,
                                   Seattle, WA 98101.  Seattle, WA 98101.
----------------------------------------------------------------------------------------------------------------


0
6. Section 49.164 is added to read as follows:


Sec.  49.164  Air quality permit by rule for new or modified true minor 
source gasoline dispensing facilities in Indian country.

    (a) Abbreviations and acronyms:

AST Aboveground Storage Tank
CAA or the Act Federal Clean Air Act
CFR Code of Federal Regulations

[[Page 25103]]

EPA United States Environmental Protection Agency
GDF Gasoline Dispensing Facility
NAAQS National Ambient Air Quality Standards
NSR New Source Review
ppm parts per million
PSD Prevention of Significant Deterioration
PV Pressure/Vacuum
VOC Volatile Organic Compounds

    (b) Definitions for the purposes of this permit by rule. (1) Cause 
means with respect to the reviewing authority's ability to terminate a 
permitted source's coverage under a permit that:
    (i) The permittee is not in compliance with the provisions of this 
permit by rule;
    (ii) The reviewing authority determines that the emissions 
resulting from the construction or modification of the permitted source 
significantly contribute to NAAQS violations, which are not adequately 
addressed by the requirements in this permit by rule;
    (iii) The reviewing authority has reasonable cause to believe that 
the permittee obtained coverage under the permit by rule by fraud or 
misrepresentation; or
    (iv) The permittee failed to disclose a material fact required by 
the Notification of Coverage or the requirements applicable to the 
permitted source of which the applicant had or should have had 
knowledge at the time the permittee submitted the Notification of 
Coverage.
    (2) Construction means any physical change or change in the method 
of operation including fabrication, erection, installation, demolition, 
or modification of an affected emissions unit that would result in a 
change of emissions.
    (3) Dual-point vapor balance system means a type of vapor balance 
system in which the storage tank is equipped with an entry port for a 
gasoline fill pipe and a separate exit port for a vapor connection.
    (4) Emergency engine means any stationary reciprocating internal 
combustion engine that meets all of the criteria in paragraphs 
(b)(4)(i) through (iii) of this section. All emergency engines must 
comply with the requirements specified in 40 CFR 63.6640(f) in order to 
be considered emergency engines. If the engine does not comply with the 
requirements specified, then it is not considered to be an emergency 
engine.
    (i) The engine is operated to provide electrical power or 
mechanical work during an emergency situation. Examples include engines 
used to produce power for critical networks or equipment (including 
power supplied to portions of a facility) when electric power from the 
local utility (or the normal power source, if the facility runs on its 
own power production) is interrupted, or an engine used to pump water 
in the case of fire or flood, etc.
    (ii) The engine is operated under limited circumstances for 
situations not included in paragraph (b)(4)(i) of this section, as 
specified in 40 CFR 63.6640(f).
    (iii) The engine operates as part of a financial arrangement with 
another entity in situations not included in paragraph (b)(4)(i) of 
this definition only as allowed in 40 CFR 63.6640(f).
    (5) Notification of Coverage means the permit notification that 
contains all the information required in the standard notification form 
for this permit by rule.
    (6) Permittee means the owner or operator of a permitted source.
    (7) Permitted source means each gasoline dispensing facility for 
which a permitted source submits a complete Notification of Coverage.
    (8) Responsible official means one of the following:
    (i) For a corporation: a president, secretary, treasurer, or vice-
president of the corporation in charge of a principal business 
function, or any other person who performs similar policy or decision-
making functions for the corporation, or a duly authorized 
representative of such person if the representative is directly 
responsible for the overall operation of the permitted source;
    (ii) For a partnership or sole proprietorship: a general partner or 
the proprietor, respectively; or
    (iii) For a public agency: Either a principal executive officer or 
ranking elected official, such as a chief executive officer having 
responsibility for the overall operations of a principal geographic 
unit of the agency.
    (9) Submerged filling means the filling of a gasoline storage tank 
through a submerged fill pipe whose discharge is no more than 6 inches 
from the bottom of the tank. Bottom filling of gasoline storage tanks 
is covered under this submerged filling definition.
    (10) Ullage means the volume of a container not occupied by liquid. 
For example, the ullage of a tank designed primarily for containing 
liquid is the volume of the tank minus the volume of the liquid it 
contains.
    (11) Vapor balance system means a combination of pipes and hoses 
that create a closed system between the vapor spaces of an unloading 
gasoline cargo tank and a receiving storage tank such that vapors 
displaced from the storage tank are transferred to the gasoline cargo 
tank being unloaded.
    (12) Vapor tight means equipment that allows no loss of vapors. 
Compliance with vapor-tight requirements can be determined by checking 
to ensure that the concentration at a potential leak source is not 
equal to or greater than 100 percent of the lower explosive limit when 
measured with a combustible gas detector, calibrated with propane, at a 
distance of 1 inch from the potential leak source.
    (c) Information about this permit by rule--(1) Applicability. 
Pursuant to the provisions of the CAA, subchapter I, part D and 40 CFR 
part 49, subpart C, this permit authorizes the construction or 
modification and the operation of each stationary gasoline dispensing 
facility (GDF) for which a reviewing authority receives a completed 
Notification of Coverage (permitted source).
    (2) Eligibility. To be eligible for coverage under this permit by 
rule, the permitted source must qualify as a true minor source as 
defined in 40 CFR 49.152 and satisfied the requirements in 40 CFR 
49.156(f)(6)(iii). In addition, coverage under this Permit by Rule is 
not available in areas located within the geographic boundaries of 
California.
    (3) Notification of Coverage. Requirements for submitting a 
Notification of Coverage are contained in paragraph (d)(1) of this 
permit by rule. The information contained in each permitted source's 
Notification of Coverage is hereby enforceable under this permit by 
rule.
    (4) Termination. Paragraph (d)(6) of this permit by rule addresses 
a reviewing authority's ability to revise, revoke and reissue, or 
terminate coverage under this permit by rule. It also addresses the 
reviewing authority's ability to terminate an individual permitted 
source's coverage under this permit by rule.
    (5) Definitions. The terms used herein shall have the meaning as 
defined in 40 CFR 49.152, unless otherwise defined in paragraph (b) of 
this permit by rule. If a term is not defined, it shall be interpreted 
in accordance with normal business use.
    (d) Permit by rule terms and conditions. The following applies to 
each permittee and permitted source with respect to only the affected 
emissions units and any associated air pollution control technologies 
in that permitted source's Notification of Coverage.
    (1) General provisions--(i) Obtaining coverage under this permit by 
rule. To obtain coverage under this permit by rule, an applicant must 
submit a completed Notification of Coverage to

[[Page 25104]]

the appropriate reviewing authority for the area in which the permitted 
source is or will be located (the Notification of Coverage Form can be 
found at: http://www.epa.gov/air/tribal/tribalnsr.html). Table 1 of 
paragraph (f) contains a list of reviewing authorities and their area 
of coverage. You must also submit a copy of the Notification of 
Coverage to the Indian governing body for any area in which the 
permitted source will operate. Coverage under this permit by rule is 
not available in areas within the geographical boundaries of 
California.
    (ii) Construction and operation. The permittee shall construct or 
modify and shall operate the affected emissions units and any 
associated air pollution control technologies in compliance with this 
permit by rule and all other applicable federal air quality 
regulations; and in a manner consistent with representations made by 
the permittee in the Notification of Coverage.
    (iii) Locations. This permit by rule only authorizes the permittee 
to construct or modify and to operate the permitted source in the 
location(s) listed in the Notification of Coverage for that permitted 
source.
    (iv) Liability. This permit by rule does not release the permittee 
from any liability for compliance with other applicable federal and 
tribal environmental laws and regulations, including the CAA.
    (v) Severability. The provisions of this permit by rule are 
severable. If any portion of this permit by rule is held invalid, the 
remaining terms and conditions of this permit by rule shall remain 
valid and in force.
    (vi) Compliance. The permittee must comply with all provisions of 
this permit by rule, including emission limitations that apply to the 
affected emissions units at the permitted source. Noncompliance with 
any permit provision is a violation of this permit by rule and may 
constitute a violation of CAA; is grounds for an enforcement action; 
and is grounds for the reviewing authority to revoke and terminate the 
permitted source's coverage under this permit by rule.
    (vii) National Ambient Air Quality Standards (NAAQS)/Prevention of 
Significant Deterioration (PSD) Protection. The permitted source must 
not cause or contribute to a NAAQS violation or, in an attainment area, 
must not cause or contribute to a PSD increment violation.
    (viii) Unavailable defense. It is not a defense for the permittee 
in an enforcement action that it would have been necessary to halt or 
reduce the permitted activity in order to maintain compliance with the 
provisions of this permit by rule.
    (ix) Property rights. This permit by rule does not convey any 
property rights of any sort or any exclusive privilege.
    (x) Information requests. You, as the permittee, shall furnish to 
the reviewing authority, within 30 days unless another timeframe is 
specified by the EPA, any information that the reviewing authority may 
request in writing to determine whether cause exists for revising, 
revoking and reissuing, or terminating coverage under the permit by 
rule or to determine compliance with the permit by rule. For any such 
information claimed to be confidential, the permittee must submit a 
claim of confidentiality in accordance with 40 CFR part 2 subpart B.
    (xi) Inspection and entry. Upon presentation of proper credentials, 
the permittee must allow a representative of the reviewing authority 
to:
    (A) Enter upon the premises where a permitted source is located or 
emissions-related activity is conducted or where records are required 
to be kept under the conditions of the permit by rule;
    (B) Have access to and copy, at reasonable times, any records that 
are required to be kept under the conditions of the permit by rule;
    (C) Inspect, during normal business hours or while the permitted 
source is in operation, any facilities, equipment (including monitoring 
and air pollution control equipment), practices or operations regulated 
or required under the permit by rule;
    (D) Sample or monitor, at reasonable times, substances or 
parameters for the purpose of assuring compliance with the permit by 
rule or other applicable requirements; and
    (E) Record any inspection by use of written, electronic, magnetic 
and photographic media.
    (xii) Posting of coverage. The most current Notification of 
Coverage for the permitted source, must be posted prominently at the 
facility, and each affected emissions unit and any associated air 
pollution control technology must be labeled with the identification 
number listed in the Notification of Coverage for that permitted 
source.
    (xiii) Duty to obtain source-specific permit. If the reviewing 
authority intends to terminate a permitted source's coverage under this 
permit by rule for cause as provided in Sec.  49.164(d)(6), then the 
permittee shall apply for and obtain a source-specific as required by 
the reviewing authority.
    (xiv) Credible evidence. For the purpose of establishing whether 
the permittee violated or is in violation of any requirement of this 
permit by rule, nothing shall preclude the use, including the exclusive 
use, of any credible evidence or information relevant to whether a 
permitted source would have been in compliance with applicable 
requirements if the permittee had performed the appropriate performance 
or compliance test or procedure.
    (2) Emission limitations and standards. (i) The permittee shall 
install, maintain, and operate each affected emissions unit, including 
any associated air pollution control equipment, in a manner consistent 
with good air pollution control practices for minimizing emissions of 
NSR regulated pollutants and considering the manufacturer's recommended 
operating procedures at all times, including periods of startup, 
shutdown, maintenance and malfunction. The reviewing authority will 
determine whether the permittee is using acceptable operating and 
maintenance procedures based on information available to the reviewing 
authority which may include, but is not limited to, monitoring results, 
opacity observations, review of operating and maintenance procedures, 
and inspection of the permitted source.
    (ii) GDFs located in an ozone attainment, unclassifiable or 
attainment/unclassifiable area or a marginal or moderate ozone 
nonattainment area shall limit throughput of gasoline to less than 
25,000,000 gallons per year based on a 12-month rolling total.
    (iii) GDFs located in a serious, severe or extreme ozone 
nonattainment area shall limit throughput of gasoline to less than 
8,000,000 gallons per year based on a 12-month rolling total.
    (iv) You must ensure gasoline is handled in a manner that will 
minimize vapor releases to the atmosphere. The measures to be taken 
include:
    (A) Minimizing gasoline spills;
    (B) Cleaning up spills as expeditiously as practicable. The spill 
bucket shall be free from standing liquid and debris;
    (C) Covering all open gasoline containers and all gasoline storage 
tank fill-pipes with a gasketed seal when not in use (all portable 
gasoline containers that meet the requirements of 40 CFR part 59, 
subpart F meet this requirement);
    (D) Minimizing gasoline sent to open waste collection systems that 
collect and transport gasoline to reclamation and recycling devices, 
such as oil/water separators; and

[[Page 25105]]

    (E) To the extent practicable, any other actions necessary to 
minimize vapor releases to the atmosphere.
    (v) Except as specified in paragraph (d)(2)(v)(B) of this section, 
you must only load gasoline into storage tanks at your facility by 
utilizing submerged filling, and as specified in this condition. The 
applicable distances shall be measured from the point in the opening of 
the submerged fill pipe that is the greatest distance from the bottom 
of the storage tank.
    (A) Submerged fill pipes must be no more than 6 inches from the 
bottom of the tank.
    (B) Submerged fill pipes not meeting the specifications paragraph 
(d)(2)(v)(A) of this section are allowed if the owner or operator can 
demonstrate that the liquid level in the tank is always above the 
entire opening of the fill pipe. Documentation providing such 
demonstration must be made available onsite for inspection by the 
reviewing authority.
    (vi) Except as provided in paragraph (d)(2)(viii) of this section, 
each new or modified gasoline storage tank constructed must be equipped 
with a Stage I dual-point vapor balance system.
    (vii) Except as provided in paragraph (d)(2)(viii) of this section, 
each Stage I dual-point vapor balance system on your gasoline storage 
tank must meet the design criteria and management practices in 
paragraph (e) of this section, as applicable.
    (viii) The affected emissions units listed below are not required 
to comply with the control requirements in paragraphs (d)(2)(vi) and 
(vii) of this section, but must comply with the requirements in 
paragraph (d)(2)(v) of this section.
    (A) Gasoline storage tanks with a capacity of less than 250 
gallons.
    (B) Gasoline storage tanks with a capacity of less than 2,000 
gallons.
    (C) Gasoline storage tanks equipped with floating roofs, or the 
equivalent.
    (ix) Cargo tanks unloading at GDFs must not unload gasoline into a 
storage tank at a GDF unless the following management practices are 
met:
    (A) All hoses in the vapor balance system are properly connected;
    (B) The adapters or couplers that attach to the vapor line on the 
storage tank have closures that seal upon disconnect;
    (C) All vapor return hoses, couplers, and adapters used in gasoline 
delivery are vapor-tight;
    (D) All tank truck vapor return equipment is compatible in size and 
forms a vapor-tight connection with the vapor balance equipment on the 
GDF storage tank;
    (E) All hatches on the tank truck are closed and securely fastened; 
and
    (F) The filling of storage tanks at GDF shall be limited to 
unloading from vapor-tight gasoline cargo tanks.
    (x) Each emergency engine shall:
    (A) Be equipped with a non-resettable hour meter;
    (B) If using fuel oil, use diesel or biodiesel containing no more 
than 15 ppm (0.0015 percent) sulfur;
    (C) Meet the following certification requirement for compression 
ignition emergency engines: for model year 2006 and later engines, the 
engine shall be certified to the standards in 40 CFR part 89.
    (D) Meet the following certification requirements for spark 
ignition emergency engines manufactured on or after January 1, 2009:
    (1) Engines greater than 50 hp and less than 130 hp shall be 
certified to the Phase I standards in 40 CFR 90.103; and
    (2) Engines greater than or equal to 130 hp shall be certified to 
the standards in 40 CFR 1048.
    (E) If not required to be certified to the standards in paragraph 
(d)(2)(x)(C) or (D) of this section:
    (1) Follow the manufacturer's emission-related operation and 
maintenance instructions or develop your own maintenance plan which 
must provide to the extent practicable for the maintenance and 
operation of the engine in a manner consistent with good air pollution 
control practice for minimizing emissions;
    (2) Change oil and filter and inspect every hose and belt every 500 
hours of operation or annually, whichever comes first; and
    (3) Inspect air cleaner or spark plugs, as applicable, every 1,000 
hours of operation, or annually, whichever comes first.
    (3) Monitoring and testing requirements. (i) For each vapor balance 
system, the permittee shall perform an initial performance test as 
prescribed in paragraph (e) of this section and every 3 years 
thereafter. The performance test shall be conducted within 60 days 
after achieving the maximum production rate at which the permitted 
source will operate the affected vapor balance system, but not later 
than 180 days after the first day of operation after the reviewing 
authority receives the completed Notification of Coverage.
    (ii) The permittee shall monitor monthly gasoline throughput in 
gallons.
    (iii) The permittee shall perform weekly inspections of the vapor 
control recovery system(s), all pumps, compressors, pipes, hoses, 
mechanical seals, or other equipment storing, handling, conveying, or 
controlling VOCs. For sources located in extreme ozone nonattainment 
areas, these equipment inspections shall be performed daily. The 
inspections shall be used to determine whether all equipment is in good 
working order according to any available manufacturer's recommendations 
and good engineering practices.
    (4) Recordkeeping requirements. (i) The permittee shall maintain 
all records required to be kept onsite by this permit by rule for at 
least 5 years from the date of origin, unless otherwise stated.
    (ii) The Notification of Coverage and all documentation supporting 
that application shall be maintained by the permittee for the duration 
of time the affected emissions unit(s) is covered under this permit by 
rule.
    (iii) The permittee shall maintain records of each inspection 
required by paragraph (d)(3)(iii) of this section. The records shall 
include a log of:
    (A) Identification of the devices inspected;
    (B) The date of the inspection;
    (C) The results of each inspection;
    (D) Any corrective actions taken as a result of the inspection; and
    (E) The results of any corrective actions taken.
    (iv) For each emergency engine, the permittee shall maintain a log 
of all maintenance activities conducted and a log of the hours of 
operation including the date, time, duration, and reason for use.
    (v) The permittee shall maintain records on a monthly basis of the 
fuel throughput and the 12-month rolling total. The 12-month rolling 
total is defined as the sum of the fuel throughput during the current 
month and the fuel throughput for the previous 11 months.
    (vi) The results of each performance test conducted pursuant to 
Sec.  49.164(d)(3)(i) shall be recorded. At a minimum, the permittee 
shall maintain records of:
    (A) The date of each test;
    (B) Each test plan;
    (C) Any documentation required to approve an alternate test method;
    (D) Test conditions;
    (E) The results of each test; and
    (F) The name of the company or entity conducting the analysis.
    (5) Notification and reporting requirements--(i) Notification of 
construction or modification, and operations. The permittee shall 
submit a written or electronic notice to the reviewing authority within 
30 days from when the permittee begins actual construction, and within 
30 days from when the permittee begins initial operations or resumes 
operation after a modification.

[[Page 25106]]

    (ii) Notification of change in ownership or operator. If the 
permitted source changes ownership or operator, then the new owner must 
submit a written or electronic notice to the reviewing authority within 
90 days before or after the change in ownership is effective. In the 
notice, the new permittee must provide the reviewing authority a 
written agreement containing a specific date for transfer of ownership, 
and an effective date on which the new owner assumes partial and/or 
full coverage and liability under this permit by rule. The submittal 
must identify the previous owner, and update the name, street address, 
mailing address, contact information, and any other information about 
the permitted source if it would change as a result of the change of 
ownership. The current owner shall ensure that the permitted source 
remains in compliance with the permit by rule until any such transfer 
of ownership is effective.
    (iii) Notification of closure. The permittee must submit a report 
of any permanent or indefinite closure to the reviewing authority in 
writing within 90 days after the cessation of all operations at the 
permitted source. The notification must identify the owner, the current 
location, and the last operating location of the permitted source. It 
is not necessary to submit a report of closure for regular, seasonal 
closures.
    (iv) Annual reports. The permittee shall submit an annual report on 
or before March 15 of each calendar year to the reviewing authority. 
The annual report shall cover the period from January 1 to December 31 
of the previous calendar year and shall include:
    (A) An evaluation of the permitted source's compliance status with 
the emission limitations and standards in paragraph (d)(2) of this 
section;
    (B) Summaries of the required monitoring and recordkeeping in 
paragraphs (d)(3) and (4) of this section; and
    (C) Summaries of deviation reports submitted pursuant to paragraph 
(d)(5)(v) of this section.
    (v) Deviation reports. The permittee shall promptly report to the 
reviewing authority any deviations as defined at 40 CFR 
71.6(a)(3)(iii)(C) from the permit by rule requirements including 
deviations attributable to upset conditions. (For the purposes of this 
permit by rule, promptly shall be defined to mean: at the time the 
annual report in paragraph (d)(5)(iv) of this section is submitted.) 
Deviation reports shall include:
    (A) The identity of affected emissions unit where the deviation 
occurred;
    (B) The nature of the deviation;
    (C) The length of time of the deviation;
    (D) The probable cause of the deviation; and
    (E) Any corrective actions or preventive measures taken as a result 
of the deviation to minimize emissions from the deviation and to 
prevent future deviations.
    (vi) Performance test reports. The permittee shall submit a test 
report to the reviewing authority within 45 days after the completion 
of any required performance test. At a minimum, the test report shall 
include:
    (A) A description of the affected emissions unit and sampling 
location(s);
    (B) The time and date of each test;
    (C) A summary of test results, reported in units consistent with 
the applicable standard;
    (D) A description of the test methods and quality assurance 
procedures used;
    (E) A summary of any deviations from the proposed test plan and 
justification for why the deviation(s) was necessary;
    (F) Operating parameters of the affected emissions unit and control 
equipment during each test run;
    (G) Sample calculations of equations used to determine test results 
in the appropriate units; and
    (H) The name of the company or entity performing the analysis.
    (vii) Reporting and notification address.The permittee shall send 
all required reports to the reviewing authority at the mailing address 
specified in paragraph (f) of this section.
    (viii) Signature verifying truth, accuracy and completeness. All 
reports required by this permit by rule shall be signed by a 
responsible official as to the truth, accuracy and completeness of the 
information. The report must state that, based on information and 
belief formed after reasonable inquiry, the statements and information 
are true, accurate, and complete. If the permittee discovers that any 
reports or notification submitted to the reviewing authority contain 
false, inaccurate, or incomplete information, the permittee shall 
notify the reviewing authority immediately and correct or amend the 
report as soon as practicable.
    (6) Changes to this permit by rule-- (i) Revising, reopening, 
revoking and reissuing, or terminating for cause. The permit by rule 
may be revised, reopened, revoked and reissued, or terminated for 
cause. The filing of a request by the permittee for a permit revision, 
revocation and re-issuance, or termination, or of a notification of 
planned changes or anticipated noncompliance does not stay any permit 
by rule condition. This provision also applies to the documents 
incorporated by reference.
    (ii) Terminating coverage under this permit by rule. The reviewing 
authority may terminate coverage under this permit by rule, and thereby 
terminate that permittee's authorization to construct or modify, and 
that permitted source's authorization to operate under this permit by 
rule for cause as defined in paragraph (b) of this section. The 
reviewing authority may provide the permittee with notice of the intent 
to terminate, and delay the effective date of the termination to allow 
the permittee to obtain a source specific permit as required by the 
reviewing authority.
    (iii) Permit becomes invalid. Authority to construct and operate 
under this permit by rule becomes invalid if the permittee does not 
commence construction within 18 months after the Notification of 
Coverage is received by the reviewing authority, if the permittee 
discontinues construction for a period of 18 months or more, or if the 
permittee does not complete construction within a reasonable time. The 
reviewing authority may extend the 18-month period upon a satisfactory 
showing that an extension is justified according to 40 CFR 
49.156(e)(8).
    (e) Vapor balance system design criteria, management practices, and 
performance testing. (1) Design criteria and management practices for 
each vapor balance system:
    (i) All vapor connections and lines on the storage tank(s) shall be 
equipped with closures that seal upon disconnect.
    (ii) The vapor line from the gasoline storage tank to the gasoline 
cargo tank shall be vapor-tight.
    (iii) The vapor balance system shall be designed such that the 
pressure in the tank truck does not exceed 18 inches water pressure or 
5.9 inches water vacuum during product transfer.
    (iv) The vapor recovery and product adaptors, and the method of 
connection with the delivery elbow, shall be designed so as to prevent 
the over-tightening or loosening of fittings during normal delivery 
operations.
    (v) If a gauge well separate from the fill tube is used, it shall 
be provided with a submerged drop tube that extends no more than 6 
inches from the bottom of the storage tank.
    (vi) Liquid fill connections for all systems shall be equipped with 
vapor-tight caps.
    (vii) Pressure/vacuum (PV) vent valves shall be installed on the 
storage tank vent pipes. The pressure specifications for PV vent valves 
shall be: a positive pressure setting of 2.5 to 6.0 inches of water and 
a negative

[[Page 25107]]

pressure setting of 6.0 to 10.0 inches of water. The total leak rate of 
all PV vent valves at an affected facility, including connections, 
shall not exceed 0.17 cubic foot per hour at a pressure of 2.0 inches 
of water and 0.63 cubic foot per hour at a vacuum of 4 inches of water.
    (viii) The vapor balance system shall be capable of meeting the 
static pressure performance requirement of the following equation: Pf = 
2e-500.887/v, where: Pf = minimum allowable final pressure, 
inches of water, v = total ullage affected by the test, gallons, e = 
dimensionless constant equal to approximately 2.718, 2 = the initial 
pressure, inches water.
    (ix) For aboveground storage tanks (ASTs) with a capacity greater 
than 250 gallons and located at a GDF in a serious, severe, or extreme 
ozone nonattainment area the permittee shall also:
    (A) Limit standing loss emissions to less than or equal to 0.57 lbs 
VOC per 1,000 gallons ullage per day (lbs/1,000 gallons/day), for newly 
installed tanks.
    (B) Limit standing loss emissions to less than or equal to 2.26 lbs 
VOC per 1,000 gallons ullage per day (lbs/1,000 gallons/day), for 
modified or reconstructed tanks.
    (2) Vapor balance system performance testing:
    (i) The permittee shall conduct performance testing to demonstrate 
compliance with the leak rate and cracking pressure requirements, 
specified in paragraph (e)(1)(vii) of this section, for pressure-vacuum 
vent valves installed on your gasoline storage tanks as follows:
    (A) According to a test plan submitted at least 30 days in advance 
of the test date to the reviewing authority; and
    (B) Using California Air Resources Board Vapor Recovery Test 
Procedure TP-201.1E,--Leak Rate and Cracking Pressure of Pressure/
Vacuum Vent Valves, adopted October 8, 2003 (see 40 CFR 63.14).
    (ii) The permittee shall conduct performance testing to demonstrate 
compliance with the static pressure performance requirement, specified 
in paragraph (e)(1)(viii) of this section, for each vapor balance 
system by conducting a static pressure test on each gasoline storage 
tank as follows:
    (A) According to a test plan submitted at least 30 days in advance 
of the test date to the reviewing authority;
    (B) Using California Air Resources Board Vapor Recovery Test 
Procedure TP-201.3,--Determination of 2-Inch WC Static Pressure 
Performance of Vapor Recovery Systems of Dispensing Facilities, adopted 
April 12, 1996, and amended March 17, 1999 (see 40 CFR 63.14) or Bay 
Area Air Quality Management District Source Test Procedure ST-30--
Static Pressure Integrity Test--Underground Storage Tanks, adopted 
November 30, 1983, and amended December 21, 1994 (see 40 CFR 63.14); 
and
    (iii) For ASTs subject to Sec.  49.164(e)(1)(ix), the ASTs shall be 
California Air Resources Board certified AST for Standing Loss Control 
per Vapor Recovery Test Procedures TP-206.1 or TP-206.2.
    (f) List of reviewing authorities, and areas of coverage.

                          Table 1--List of Reviewing Authorities, and Areas of Coverage
----------------------------------------------------------------------------------------------------------------
                              Address for        Address for all
       EPA region           notification of     other notification      Area covered           Phone number
                                coverage           and reports
----------------------------------------------------------------------------------------------------------------
Region I................  EPA New England, 5   EPA New England, 5   Connecticut, Maine,  888-372-7341
                           Post Office          Post Office          Massachusetts, New  617-918-1111
                           Square, Suite 100,   Square, Suite 100,   Hampshire, Rhode
                           Mail Code OEP05-2,   Mail Code OES04-2,   Island, and
                           Boston, MA 02109-    Boston, MA 02109-    Vermont.
                           3912.                3912.
Region II...............  Chief, Air Programs  Chief, Air           New Jersey, New      877-251-4575
                           Branch, Clean Air    Compliance Branch,   York, Puerto Rico,
                           and Sustainability   Division of          and Virgin Islands.
                           Division, EPA        Enforcement and
                           Region 2, 290        Compliance
                           Broadway, 25th       Assistance, EPA
                           Floor, New York,     Region 2, 290
                           NY 10007-1866.       Broadway, 21st
                                                Floor, New York,
                                                NY 10007-1866.
Region III..............  Office of Permits    Office of Air        Delaware, District   800-438-2474
                           and Air Toxics,      Enforcement and      of Columbia,        215-814-5000
                           3AP10, EPA Region    Compliance           Maryland,
                           3, 1650 Arch         Assurance, 3AP20,    Pennsylvania,
                           Street,              EPA Region 3, 1650   Virginia, and West
                           Philadelphia, PA     Arch Street,         Virginia.
                           19103.               Philadelphia, PA
                                                19103.
Region IV...............  Chief, Air Permits   Chief, Air & EPCRA   Alabama, Florida,    800-241-1754
                           Section, EPA         Enforcement          Georgia, Kentucky,  404-562-9000
                           Region 4 APTMD, 61   Branch, EPA Region   Mississippi, North
                           Forsyth Street,      4 APTMD, 61          Carolina, South
                           Atlanta, GA 30303.   Forsyth Street,      Carolina, and
                                                SW, Atlanta, GA      Tennessee.
                                                30303.
Region V................  Air Permits          Air Enforcement and  Illinois, Indiana,   800-621-8431
                           Section, Air         Compliance           Michigan,           312-353-2000
                           Programs Branch      Assurance Branch     Minnesota, Ohio,
                           (AR-18J), EPA        (AE-17J), Air and    and Wisconsin.
                           Region 5, 77 West    Radiation
                           Jackson Blvd,        Division, EPA
                           Chicago, IL 60604.   Region 5, 77 West
                                                Jackson Blvd,
                                                Chicago, IL 60604.
Region VI...............  Multimedia Planning  Compliance and       Arkansas,            800-887-6063
                           and Permitting       Enforcement          Louisiana, New      214-665-2760
                           Division, EPA        Correspondence:      Mexico, Oklahoma,
                           Region 6, 1445       Compliance           and Texas.
                           Ross Avenue (6PD-    Assurance and
                           R), Dallas, TX       Enforcement
                           75202.               Division, EPA
                                                Region 6, 1445
                                                Ross Avenue (6EN),
                                                Dallas, TX 75202.
Region VII..............  Chief, Air           Chief, Air           Iowa, Kansas,        800-223-0425
                           Permitting &         Permitting &         Missouri, and       913-551-7003
                           Compliance Branch,   Compliance Branch,   Nebraska.
                           EPA Region 7,        EPA Region 7,
                           11201 Renner Blvd,   11201 Renner Blvd,
                           Lenexa, KS 66219.    Lenexa, KS 66219.

[[Page 25108]]

 
Region VIII.............  U.S. Environmental   U.S. Environmental   Colorado, Montana,   800-227-8917
                           Protection Agency,   Protection Agency,   North Dakota,       303-312-6312
                           Region 8, Office     Region 8, Office     South Dakota,
                           of Partnerships      of Enforcement,      Utah, and Wyoming.
                           and Regulatory       Compliance &
                           Assistance, Tribal   Environmental
                           Air Permitting       Justice, Air
                           Program, 8P-AR,      Toxics and
                           1595 Wynkoop         Technical
                           Street, Denver, CO   Enforcement
                           80202.               Program, 8ENF-AT,
                                                1595 Wynkoop
                                                Street, Denver, CO
                                                80202.
Region IX...............  Chief, Permits       Enforcement          American Samoa,      866-EPA-9378
                           Office (Air-3),      Division Director,   Arizona,            415-947-8000
                           Air Division, EPA    Attn: Air & TRI      California, Guam,
                           Region 9, 75         Section (ENF-2-1),   Hawaii, Navajo
                           Hawthorne St, San    EPA Region 9, 75     Nation Nevada, and
                           Francisco, CA        Hawthorne St, San    Northern Mariana
                           94105.               Francisco, CA        Islands.
                                                94105.
Region X................  Tribal Air Permits   Tribal Air Permits   Alaska, Idaho,       800-424-4372
                           Coordinator, U.S.    Coordinator, U.S.    Oregon, and         206-553-1200
                           EPA, Region 10,      EPA, Region 10,      Washington.
                           AWT-150, 1200        AWT-150, 1200
                           Sixth Avenue,        Sixth Avenue,
                           Suite 900,           Suite 900,
                           Seattle, WA 98101.   Seattle, WA 98101.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2015-09739 Filed 4-30-15; 8:45 am]
 BILLING CODE 6560-50-P