[Federal Register Volume 61, Number 80 (Wednesday, April 24, 1996)]
[Rules and Regulations]
[Pages 18083-18088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-10094]



=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 70

[AD-FRL-5460-9]


Clean Air Act Final Interim Approval of the Federal Operating 
Permits Program; San Joaquin Valley Unified Air Pollution Control 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final Interim Approval.

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

SUMMARY: The EPA is promulgating interim approval of the Operating 
Permits Program submitted by the California Air Resources Board on 
behalf of the San Joaquin Valley Unified Air Pollution Control District 
for the purpose of complying with Federal requirements which mandate 
that States develop, and submit to EPA, programs for issuing operating 
permits to all major stationary sources, and to certain other sources.

EFFECTIVE DATE: May 24, 1996.

ADDRESSES: Copies of the District's submittal and other supporting

[[Page 18084]]

information used in developing the proposed interim approval including 
the Technical Support Document with response to comments are available 
for inspection during normal business hours at the following location: 
Operating Permits Section, A-5-2, Air and Toxics Division, U.S. EPA-
Region IX, 75 Hawthorne Street, San Francisco, California 94105.

FOR FURTHER INFORMATION CONTACT: Frances Wicher, (415) 744-1250, 
Operating Permits Section, A-5-2, Air and Toxics Division, U.S. EPA-
Region IX, 75 Hawthorne Street, San Francisco, California 94105.

SUPPLEMENTARY INFORMATION:

I. Background and purpose

A. Introduction

    Title V of the Clean Air Act (the Act), and implementing 
regulations at 40 CFR part 70 require that States develop and submit 
operating permits programs to EPA by November 15, 1993, and that EPA 
act to approve or disapprove each program within one year after 
receiving the submittal. The EPA's program review occurs pursuant to 
section 502 of the Act and the part 70 regulations, which together 
outline criteria for approval or disapproval. Where a program 
substantially, but not fully, meets the requirements of part 70, EPA 
may grant the program interim approval for a period of up to 2 years.
    On November 1, 1995, EPA proposed interim approval of the operating 
permits program for the San Joaquin Valley Unified Air Pollution 
Control District (San Joaquin Valley or District). See 60 FR 55516. The 
EPA received comments on the proposal and has summarized its response 
to the major comments in this notice and has fully responded to all 
comments in the Technical Support Document (TSD) accompanying this 
rulemaking. The TSD also describes the operating permits program in 
greater detail. In this notice, EPA is taking final action to 
promulgate interim approval of the operating permits program for San 
Joaquin Valley.
    In the November 1, 1995 proposal, EPA also proposed approval of the 
San Joaquin Valley's Rule 2530 Federally Enforceable Potential to Emit 
as a revision to San Joaquin Valley portion of the California State 
Implementation Plan and under section 112(l) of the Act. In a separate 
notice, EPA has taken final action to approve Rule 2530.

II. Final Action and Implications

A. Response to Comments

    EPA received comments from four groups during the comment period: 
Caufield Enterprises (an independent oil producer in the southern San 
Joaquin Valley), the Western States Petroleum Association (WSPA), 
Chevron, and the San Joaquin Valley District. EPA's response to the 
major comments is summarized below. A full response to each comment is 
in the TSD.
1. Stationary Source Definition
    The District's title V program defines stationary source by 
combining elements of part 70's definitions of ``major source'' and 
``stationary source.'' The District's definition of stationary source, 
which is common to both its title V program and its new source review 
program, contains a provision applicable to any facility located 
totally within the Western or Central Kern County Oil Fields or the 
Fresno County Oil Field that is used for the production of light oil, 
heavy oil or gas. This provision states that all sources under common 
control or ownership within each field shall be considered a single 
stationary source even if they are located on non-contiguous or 
adjacent properties. This provision is more stringent than part 70; 
however, the section also states that light oil production, heavy oil 
production, and gas production shall constitute separate stationary 
sources. Part 70's definition of ``major source'' requires aggregating 
all emission points that belong to the same Major Group as described in 
the Standard Industrial Classification (SIC) Manual. See Sec. 70.2 
``Major source.'' Light oil production, heavy oil production and gas 
production are all in the same Major Group. EPA proposed as an interim 
approval issue that the District either revise the SIC code exemption 
in its definition of stationary source or show that it is as stringent 
as part 70.
    The District stated that changing the definition of stationary 
source from its historic usage in the new source review (NSR) program 
would complicate permitting actions under title V. The District also 
provided data that few emission units (and few emissions) would be 
added to the program compared to the number of the units and emissions 
that would be lost from the program if part 70's definition were used 
to determine applicability. WSPA and Chevron also raised concerns 
regarding changing from the historic NSR definition of stationary 
source.
    EPA has reviewed the information provided by the San Joaquin 
District on the number and type of additional emission units that would 
be included should the District change to EPA's definition of major 
source. These units are relatively few in number, have insignificant 
emissions, are attached to otherwise major sources, and would for the 
most part qualify for treatment as insignificant activities or 
insignificant emission units. Overall, San Joaquin Valley's definition 
of stationary source is neither inconsistent with nor less stringent 
than EPA's definition of major source; therefore, EPA is removing the 
proposed interim approval issue regarding it.
    Caufield Enterprises commented that the District's part 70 program 
as proposed is in conflict with the Clean Air Act because both section 
502 of the Act and Sec. 70.2 define a major source to be a contiguous 
source while San Joaquin Valley's program combines non-contiguous 
properties into a single source. The commenter stated that it was 
immaterial whether this provision is stricter or less strict than 
federal law since it was the intent of Congress to implement the title 
V program uniformly throughout the United States and that allowing the 
District to use a different definition for stationary source and major 
source for title V permitting is inconsistent with this intent.
    EPA believes that it is the intent of Congress to require states to 
implement operating permit programs that all contain certain minimum 
elements. See section 502(b). EPA also believes that Congress did not 
intend to bar States from establishing additional permitting 
requirements provided that those requirements were not inconsistent 
with the Act. See section 506(a).
    While it is true that section 501(2) of the Act defines major 
source as ``any stationary source (or group of stationary sources 
located within a contiguous area and under common control) * * * '', 
this definition serves to define the sources Congress, at a minimum, 
intended to be included in the program. The definition of major source 
in section 501(2) does not define the only sources that a state may 
include in its operating permit program. Clearly, states are allowed to 
include a broader range of sources in their programs than the Act 
nominally requires.
    San Joaquin Valley's definition of major source (which encompasses 
its definition of stationary source in its NSR program) differs from 
the definition of major source in section 501(2) by grouping all 
sources within an oil field that are under common control or ownership 
regardless of whether the sources are on contiguous or adjacent 
properties. This provision of San

[[Page 18085]]

Joaquin's stationary source definition will bring into its part 70 
program more sources than EPA's definition. On the other hand, the 
provision does not effectively exclude any sources subject to title V 
under the federal definition. As a result, the non-contiguous and non-
adjacent requirement in San Joaquin Valley's definition constitutes an 
additional permitting requirement that is not inconsistent with the Act 
and is allowed by section 506(a) of the Act.
2. Permit Terms for Model General Permits and Model General Permit 
Templates
    Chevron, WSPA, and the District commented that model general 
permits and model general permit templates should not be required to 
have permit terms of five years or less as proposed in interim approval 
issue 9. All three commenters recommended that these model permits have 
indefinite terms and require revision only when an applicable 
requirement changes or needs to be added. WSPA and Chevron noted that 
if EPA or the District believes that a correction is needed in a model 
permit/template then they have the ability to effect such a change and 
modify all associated permits.
    Title V and part 70 requires all elements of part 70 permits, 
whether or not they are based on model permits or permit templates, to 
undergo public, affected state, and EPA review at least once every five 
years. Rule 2520 sections 11.3.8, 11.7.6 and 11.7.7 limit public and 
EPA comment to the applicability of the permit/template to a source and 
thus prohibit public or EPA comment on the internal elements of a model 
permit/template after that model permit/template is issued. In effect, 
these provisions of the Rule bar regular public, affected state, and 
EPA review of the conditions and terms of a source's part 70 permit 
that are based on a model permit/template. The ability to comment on 
the applicability of a model general permit or permit template does not 
replace the ability to comment on the internal elements of that permit 
because not all issues will be ones of applicability. Hence there is a 
need to provide some mechanism to assure regular public, affected 
state, and EPA review of the model general permits and permit 
templates. Therefore, EPA is retaining this interim approval issue.
    In reviewing this issue, EPA did determine that it is not necessary 
that the model general permits/permit templates to contain five-year 
permit terms but rather that the District's part 70 program provide 
some mechanism that requires regular public, affected state, and EPA 
review of the internal provisions of each model general permit or 
permit template at least once every five years. EPA, therefore, has 
revised the interim approval issue.
    EPA does not argue with the commenters that EPA has the ability to 
reopen model permits/templates when necessary, but this ability does 
not replace the requirement for regular public and affected state 
review. EPA would also note that regulatory changes are not the sole 
reason why model general permits/permit templates may need to be 
changed.
3. Permit Shield Provision for General Permits and Permit Templates
    Proposed interim approval issue 15 required that Rule 2520 be 
revised to state, as required by Sec. 70.6(d), that, notwithstanding 
the permit shield provisions, if a source that is operating under a 
general permit is later determined not to qualify for the terms and 
conditions of that general permit, then the source is subject to 
enforcement action for operation without a part 70 permit. The District 
declined to revise Rule 2520 to add this language arguing it was 
unnecessary because its general permit provisions are more stringent 
than part 70. The District noted that any general permit obtained by a 
source under Rule 2520 would include qualification criteria and the 
applicable requirements, thus any deviation from the general permit 
should be treated like any other part 70 permit violation.
    EPA agrees that the District's general permit provisions are 
different from the provisions in part 70 in that the District's program 
gives each source a part 70 permit derived from the model general 
permit rather than issuing one permit that applies to multiple sources. 
EPA, however, is retaining this interim approval issue.
    At issue is not whether a source is complying with the terms of its 
permit but rather whether the permit the source has is the correct 
permit for that source. A source that applies to use a model general 
permit and receives a permit based on that model when it does not 
qualify is not substantially different from a source that fails to 
apply for and receive any permit because both sources do not have 
permits applicable to them. The former source may appear to have a 
permit and may appear to comply with some of the terms of that permit, 
but, because the permit was not crafted for that source, there is in 
fact no valid permit with which to comply. The source should be treated 
as operating without a part 70 permit rather than not operating in 
compliance with a part 70 permit.
    Chevron and WSPA requested clarification that this interim approval 
issue does not carry over into the application and use of general 
permit templates. The commenters noted that a general permit template 
is only a partial coverage for certain emission units. The commenters 
also recommended extending this concept to general permits in cases 
where the non-applicability represents failure to properly manage 
change at the facility, in contrast to a misrepresentation of the 
source at the time of permit application.
    EPA agrees with the commenters and has clarified the interim 
approval issue. If a general permit template is later determined not to 
be applicable to the sources then the emission units or the portion of 
the facility that was covered by the terms of the general permit 
template would be subject to enforcement action for operating without a 
title V permit and the balance of the facility, where the permit 
remains in force, would not be subject to the enforcement action.
    EPA does not believe there is any need to extend this concept to 
general permits where the source modifies so as to no longer qualify 
for the general permit. EPA interprets the requirement in Sec. 70.6(d) 
to apply only to sources that misrepresented their qualifications for a 
general permit at the time of initial issuance or renewal.
4. Other Comments
    The District addressed each of EPA's 17 proposed interim approval 
issues and in most cases stated it would propose language changes to 
Rule 2520 to address the interim approval issue. EPA appreciates the 
District's responses on these issues. For several interim approval 
issues, the District stated that it did not believe Rule revisions were 
warranted. These issues are discussed below. Please note that the issue 
numbers reflect those in the proposal and not the revised numbering in 
this notice.
    Interim Approval Issue 9: Clarify minor source applicability. The 
District believes that section 2.4 of Rule 2520 clearly applies only to 
area sources and that it is not necessary to clarify the sentence in 
section 2.4 that ``[o]nly the affected emissions units within the 
stationary source shall be subject to part 70 permitting requirements'' 
applies only to stationary sources that are also area sources. The 
District noted that any major source subject to an NSPS would be 
subject to title V permitting by its major source status.
    EPA agrees with the District that any major source regulated under 
an NSPS or section 112 standard would be

[[Page 18086]]

subject to the District's rule under the major source requirement in 
section 2.3 of Rule 2520; however, it is also true that such a source 
would also be subject to Rule 2520 under the ``subject to an NSPS or 
112 standard'' requirement in section 2.4. In fact, it will be common 
for sources to be subject to the District's rule on a number of grounds 
(e.g., a major source subject to an NSPS). Therefore, the exclusivity 
of section 2.4 to area sources is not inherent in the rule. In 
addition, section 2.4 of Rule 2520 parallels the language of 
Sec. 70.3(a)(3) which reads ``any source, including an area source, 
subject to a standard * * *''. EPA does not interpret Sec. 70.3(a)(3) 
to apply only to area sources and would not agree that section 2.4 
applies only to area sources. EPA is therefore retaining this interim 
approval issue.
    Interim Approval Issue 10: Review and public notice municipal waste 
incinerator permits every five years, even in the event that permit 
expiration may be every 12 years. The District noted that 
Sec. 70.6(a)(2) does require that the District review permits for 
municipal waste incinerators every five years, but it does not require 
public notice and comment.
    Part 70 does not fully repeat the Act's requirement that title V 
permits for municipal waste incinerators be subject to public review 
every five years. The requirement is a provision of section 129(e) of 
the Act and not of title V. Section 129(e) of the Act requires that all 
municipal waste incinerators obtain title V permits and that those 
permits may have a permit term of up to 12 years, shall be reviewed 
every 5 years, and shall remain in effect until the date of 
termination, unless EPA or the permitting authority determines that the 
unit is not in compliance with all standards and conditions contained 
in the permit. Under section 129(e), such determination shall be made 
at regular intervals during the term of the permit, such intervals not 
to exceed five years, and only after public comment and public hearing. 
Based on the explicit language of section 129(e) requiring public 
comment and hearing, EPA is retaining this interim approval issue.
    Interim Approval Issue 12: Allow trading of emission increases and 
decreases without a case-by-case review to the extent allowed by an 
applicable requirement, and not merely those allowed by Rule 2301. The 
District commented that District Rule 2301, ``Emission Reduction Credit 
Banking'' states that the rule is applicable to all transfers or uses 
of emission reduction credits in the San Joaquin Valley, and that the 
District does not propose to change this provision. The District also 
commented that the permit terms will identify circumstances under which 
credits can be transferred without a case-by-case review, that under 
these circumstances, the language in Rule 2520 which requires that 
emission reduction transfers be consistent with Rule 2301 is 
appropriate, and that the District does not propose to change it.
    EPA notes that proposed interim approval issue 12 did not address 
the part of Rule 2520, section 9.12 that restricts the use of emission 
reduction credits. Rather, this interim approval issue addresses the 
first provision in section 9.12 that restricted terms and conditions in 
a permit for the trading of emission increases and decreases in the 
permitted facility to those allowed by Rule 2201. Section 70.6(a)(10) 
requires permitting authorities to include terms for emission trading 
without case-by-case approvals to the extent applicable requirements 
allow them. EPA's interim approval issue is to remove Rule 2520's 
restriction to Rule 2201 and expand it to encompass any applicable 
requirement, such as the Hazardous Organic NESHAP, that allows for 
emission trading without case-by-case approval. EPA, therefore, is 
retaining this interim approval issue but is clarifying that it does 
not affect the emission reduction credit provisions in Rule 2520, 
section 9.12.
    Interim Approval Issue 13: Require a schedule of compliance be 
included in the permit even if the source is in compliance with all 
applicable requirements. The District argues, based on language in part 
70 and title V, that neither title V nor part 70 requires that each 
permit issued contain a schedule of compliance unless the source is in 
non-compliance.
    The District is correct in stating that Sec. 70.6(c)(3) merely 
requires that a permit contain a schedule of compliance consistent with 
Sec. 70.5(c)(8); that Sec. 70.5(c)(8) requires a compliance plan be 
submitted with the application, part of which is a compliance schedule; 
and finally that Sec. 70.5(c)(8)(iii) lists what constitutes a 
compliance schedule and that for non-complying source, this is the 
``schedule of compliance'' in Sec. 70.5(c)(8)(iii)(C).
    The District is also correct in stating that section 504 of the Act 
requires that ``each permit issued under this title shall include * * * 
a schedule of compliance * * *'' However, the District is not correct 
in stating that facilities are not required to submit a schedule of 
compliance with their applications unless they are out of compliance. 
Section 503 clearly requires all permit applications, without regard to 
the source's compliance status, to include a ``compliance plan 
describing how the source will comply with all applicable requirements 
* * *'' and that the ``[c]ompliance plan shall include a schedule of 
compliance * * *''.
    Part 70 and the Act need to be read with the understanding that the 
terms ``compliance schedule'' and ``schedule of compliance'' are 
synonymous. With this understanding, it is clear that all sources, 
complying and non-complying, must include a schedule of compliance 
(i.e., a compliance schedule) in their applications and that all 
permits must have schedules of compliance (i.e., compliance schedules) 
in them. For complying sources and sources that have future-effective 
applicable requirements, the compliance schedule is a simple statement 
that the source will continue to comply or will comply in a timely 
manner. Only for non-complying sources are there detailed requirements 
for the contents of a schedule of compliance. Given the requirements of 
the Act and part 70, EPA is retaining this interim approval issue.

B. Interim Approval

    The EPA is promulgating interim approval of the operating permits 
program submitted by the California Air Resources Board on behalf of 
the San Joaquin Valley Unified Air Pollution Control District on July 3 
and August 17, 1995, and supplemented on September 6 and 21, 1995. The 
District or the State must make the following changes to receive full 
approval:
    (1) Revise the applicability language in Rule 2520 2.2 and the 
definitions of Major Air Toxics Source (Rule 2520 3.18) and Major 
Source (Rule 2520 3.19) to be consistent with the Act and part 70 to 
cover sources that emit at major source levels.
    (2) Limit the exemption for non-major sources in Rule 2520 4.1 so 
that it does not exempt non-major sources that EPA determines, upon 
promulgation of a section 111 or 112 standard, must obtain title V 
permits. Sec. 70.3(b)(2)
    (3) Revise Rule 2520 7.1.3.2 to eliminate the requirement that 
fugitive emission estimates need only be submitted in the application 
if the source is in a source category identified in the major source 
definition in 40 CFR part 70.2. See Sec. 70.3(d).
    (4) Revise Rule 2520 to provide that unless the District requests 
additional information or otherwise notifies the applicant of 
incompleteness within 60 days of receipt of an application, the 
application shall be deemed complete. See Secs. 70.5(a)(2) and 
70.7(a)(4).

[[Page 18087]]

    (5) Revise Rule 2520 sections 11.1.4.2 and 11.3.1.1 and Rule 2201 
5.3.1.1.1 to include notice ``by other means if necessary to assure 
adequate notice to the affected public.'' See Sec. 70.7(h)(1).
    (6) Revise Rule 2520's permit issuance procedures to provide for 
notifying EPA and affected states in writing of any refusal by the 
District to accept all recommendations for the proposed permit that an 
affected state submitted during the public/affected state review 
period. See Sec. 70.8(b)(2).
    (7) Either delete section 11.7.5 in Rule 2520 and section 5.3.1.8.5 
in Rule 2201, which purport to limit the grounds upon which EPA may 
object to a permit to compliance with applicable requirements, or 
revise them to be fully consistent with Sec. 70.8(c).
    EPA's authority to object to issuance of permits derives from 
section 505(b) of the Act. No state or local agency may restrict 
authorities granted EPA under the Clean Air Act; therefore, EPA views 
section 11.7.5 of Rule 2520 and Section 5.3.1.8.5 of Rule 2201 as not 
binding upon its actions. EPA will exercise its authority to object to 
permits consistent with Sec. 70.8(c) and without regard to the 
restriction on that authority in San Joaquin's title V program. Should 
the District issue a permit to which EPA has objected and the District 
has not revised or reissued to meet the objection, EPA will consider 
the permit invalid and will require the District to revise and reissue 
the proposed permit or will revoke, revise, and reissue the permit 
itself. EPA has made these revisions to Rule 2520 an interim approval 
issue in order to ensure that the Rule 2520 clearly states EPA's 
authority to object to permits.
    (8) Revise Rule 2520 2.4 to clarify that the sentence in section 
2.4 that ``[o]nly the affected emissions units within the stationary 
source shall be subject to part 70 permitting requirements'' applies 
only to stationary sources that are also area sources.
    (9) Revise Rule 2520 8.1 to provide that each model general permit 
and model general permit templates will be subject to public, affected 
state, and EPA review consistent with initial permit issuance at least 
once every 5 years.
    (10) Revise Rule 2520 8.1 to provide that any permit for a solid 
waste incineration unit that has a permit term of more than 5 years 
shall be subject to review, including public notice and comment, at 
least once every five years. See Sec. 70.6(a)(2).
    (11) Revise Rule 2520 13.2.3 to state that the permit shield will 
apply only to requirements addressed in the permit. EPA will not 
consider a source shielded from an enforcement action for failure to 
comply with an applicable requirement if that applicable requirement is 
addressed only in the written reviews supporting permit issuance and 
not in the permit. Further, EPA will veto any permit that extends the 
permit shield to conditions, terms, or findings of non-applicability 
that are not included in the permit.
    (12) Revise Rule 2520 9.12 to require the permit contain terms and 
conditions for the trading of emission increases and decreases in the 
permitted facility to the extent that any applicable requirement 
provides for such trading without case by case approval. The District 
may limit transfers of emission reduction credits in accordance with 
District Rules 2201 and 2301. Sec. 70.6(a)(10)
    (13) Revise Rule 2520, Section 9.0 (permit content) to include the 
Sec. 70.6(c)(3) requirement for schedules of compliance for applicable 
requirements for which the source is in compliance or that will become 
effective during the permit term. During the interim period, the 
District should incorporate compliance schedules, as required by 
Sec. 70.6(c)(3), into all issued permits.
    (14) Revise Rule 2520 to treat changes made under the prevention of 
significant deterioration (PSD) provisions of the Act and EPA' PSD 
regulations in the same manner as ``title I modifications'' as that 
term is defined in Rule 2520 and Rule 2201.
    (15) Revise Rule 2520 to state that, notwithstanding the permit 
shield provisions, if a source that is operating under a general permit 
or general permit template is later determined not to qualify for the 
terms and conditions of that general permit or template, then the 
source is subject to enforcement action for operation without a part 70 
permit. For sources operating under a general permit template, if a 
source is later determined not to qualify for the template, only the 
portion of the facility covered by the template shall be subject to 
enforcement action for operation without a part 70 permit. See 
Sec. 70.6(d).
    (16) Because California State law currently exempts agricultural 
production sources from permit requirements, CARB has requested source 
category-limited interim approval for all California districts. EPA is 
granting source category-limited interim approval to the San Joaquin 
program. In order for this program to receive full approval, the Health 
and Safety Code must be revised to eliminate the exemption of 
agricultural production sources from the requirement to obtain a title 
V permit. Once the California statute has been revised, the District 
must also revise its permit exemption rules to eliminate any blanket 
exemption granted agricultural sources.
    This interim approval, which may not be renewed, extends until May 
25, 1998. During this interim approval period, the State is protected 
from sanctions for failure to have a program, and EPA is not obligated 
to promulgate a Federal permits program in the District. Permits issued 
under a program with interim approval have full standing with respect 
to Part 70, and the one-year time period for submittal of permit 
applications by subject sources begins upon the effective date of 
interim approval, as does the three-year time period for processing the 
initial permit applications.
    If the District fails to submit a complete program through the 
State for full approval by November 24, 1997, EPA will start an 18-
month clock for mandatory sanctions. If the District fails to submit a 
complete program before the expiration of that 18-month period, EPA 
would impose sanctions. If EPA disapproves the District's corrective 
program, and has not granted full approval within 18 months after the 
disapproval, then EPA must impose mandatory sanctions. In both cases, 
if the District has not come into compliance within 6 months after EPA 
applies the first sanction, a second sanction is required. In addition, 
discretionary sanctions may be applied where warranted any time after 
the end of the interim approval period. If the EPA has not granted full 
approval to the District program by May 25, 1998, EPA must promulgate, 
administer, and enforce a Federal permits program for San Joaquin 
Valley.

C. District Program Implementing Section 112(g)

    EPA is approving the use of San Joaquin Valley's preconstruction 
review program (Rule 2201) as a mechanism to implement section 112(g) 
during the transition period between promulgation of EPA's section 
112(g) rule and adoption by San Joaquin Valley of rules specifically 
designed to implement section 112(g). EPA is limiting the duration of 
this approval to 18 months following promulgation by EPA of the section 
112(g) rule.

D. Program for Delegation of Section 112 Standards as Promulgated

    Requirements for part 70 program approval, specified in 40 CFR 
70.4(b), encompass section 112(l)(5) requirements for approval of a 
program for delegation of section 112 standards as promulgated by EPA 
as they apply to part 70 sources. Section 112(l)(5)

[[Page 18088]]

requires that the District's program contain adequate authorities, 
adequate resources for implementation, and an expeditious compliance 
schedule, which are also requirements under part 70. Therefore, EPA is 
also promulgating approval under section 112(l)(5) and 40 CFR 63.91 of 
San Joaquin Valley's program for receiving delegation of section 112 
standards that are unchanged from the federal standards as promulgated. 
This program for delegations applies to both existing and future 
standards but is limited to sources covered by the part 70 program.

III. Administrative Requirements

A. Docket

    Copies of the District's submittal and other information relied 
upon for the final interim approval, including all comments received on 
the proposal and EPA's responses to those comments, are contained in 
docket number CA-SJV-95-001 maintained at the EPA Regional Office. The 
docket is available for public inspection at the location listed under 
the ADDRESSES section of this document.

B. Executive Order 12866

    The Office of Management and Budget has exempted this action from 
Executive Order 12866 review.

C. Regulatory Flexibility Act

    The EPA's action under section 502 of the Act does not create any 
new requirements but simply addresses the operating permits program 
developed and submitted by the San Joaquin Valley District to meet the 
requirements of 40 CFR part 70. EPA evaluated the impact on small 
businesses of the title V operating permit program as part of its 
promulgation of part 70 and determined that operating permit programs 
required by part 70 would not have a significant economic impact on a 
substantial number of small business and no Regulatory Flexibility Act 
analysis was necessary.

D. Unfunded Mandates Act

    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a federal mandate that may result in estimated 
costs to state, local, or tribal governments in the aggregate; or to 
the private sector, of $100 million or more. Under Section 205, EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that the approval action promulgated today does 
not include a federal mandate that may result in estimated costs of 
$100 million or more to either state, local, or tribal governments in 
the aggregate, or to the private sector and therefore, no budgetary 
impact statement is necessary.

List of Subjects in 40 CFR Part 70

    Environmental Protection, Administrative practice and procedure, 
Air pollution control, Intergovernmental relations, Operating permits, 
Reporting and recordkeeping requirements.

    Dated: April 10, 1996.
Felicia Marcus,
Regional Administrator.

    Part 70, title 40 of the Code of Federal Regulations is amended as 
follows:

PART 70--[AMENDED]

    1. The authority citation for part 70 continues to read as follows:

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

    2. Appendix A to part 70 is amended by adding paragraph (y) to the 
entry for California to read as follows:

Appendix A to Part 70--Approval Status of State and Local Operating 
Permits Programs

* * * * *

California

* * * * *
    (y) San Joaquin Valley Unified APCD (complete submittal received on 
July 5 and August 18, 1995); interim approval effective on May 24, 
1996; interim approval expires May 25, 1998.

* * * * *
[FR Doc. 96-10094 Filed 4-23-96; 8:45 am]
BILLING CODE 6560-50-W