[Federal Register Volume 61, Number 147 (Tuesday, July 30, 1996)]
[Rules and Regulations]
[Pages 39597-39601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19205]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 52 and 70

[PA065-4025; AD-FRL-5535-3]


Clean Air Act Final Full Approval Of Operating Permits Program; 
Final Approval of Operating Permit and Plan Approval Programs Under 
Section 112(l); Final Approval of State Implementation Plan Revision 
for the Issuance of Federally Enforceable State Plan Approvals and 
Operating Permits Under Section 110; Commonwealth of Pennsylvania

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final full approval of Title V Operating Permit Program and 
final approval of State Operating Permit and Plan Approval Programs.

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SUMMARY: The EPA is promulgating full approval of the Operating Permits 
Program submitted by the Commonwealth of Pennsylvania for the purpose 
of complying with Federal

[[Page 39598]]

requirements for an approvable State program to issue operating permits 
to all major stationary sources, and to certain other sources. EPA is 
also granting final approval to Pennsylvania's Operating Permit and 
Plan Approval Programs pursuant to Section 110 of the Clean Air Act 
(the ``Act'') for the purpose of creating Federally enforceable 
operating permit and plan approval conditions for sources of criteria 
air pollutants. In order to extend the federal enforceability of State 
operating permits and plan approvals to include hazardous air 
pollutants (HAPs), EPA is also approving Pennsylvania's plan approval 
and operating permits program regulations pursuant to Section 112 of 
the Act. Today's action also approves Pennsylvania's mechanism for 
receiving straight delegation of Section 112 standards.

EFFECTIVE DATE: August 29, 1996.

ADDRESSES: Copies of the State's submittal and other supporting 
information used in developing this final full approval are available 
for public inspection during normal business hours at the Air, 
Radiation, and Toxics Division, U.S. Environmental Protection Agency, 
Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 19107; 
the Air and Radiation Docket and Information Center, U.S. Environmental 
Protection Agency, 401 M Street, SW, Washington, DC 20460; Pennsylvania 
Department of Environmental Protection, Bureau of Air Quality, Rachel 
Carson State Office Building, 400 Market Street, P.O. Box 8468, 
Harrisburg, Pennsylvania 17105-8468.

FOR FURTHER INFORMATION CONTACT: Michael H. Markowski, 3AT23, U.S. 
Environmental Protection Agency, Region 3, 841 Chestnut Building, 
Philadelphia, Pennsylvania, 19107, (215) 566-2063.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose

A. Introduction

    Title V of the 1990 Clean Air Act Amendments (sections 501-507 of 
the Clean Air Act), and implementing regulations at 40 Code of Federal 
Regulations (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 1 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. If EPA has not fully 
approved a program by 2 years after the November 15, 1993 date, or by 
the end of an interim program, it must establish and implement a 
Federal program.
    On March 7, 1996, EPA proposed full approval of the operating 
permits program for the Commonwealth of Pennsylvania. See 61 FR 9125-
9132. EPA did not receive any public comments on the proposal, and in 
this document is taking final action to promulgate full approval of the 
Commonwealth's program.
    As part of this action, EPA is also taking final action to approve 
Pennsylvania's plan approval (i.e., construction permit) and operating 
permit programs pursuant to Section 110 of the Act. On June 28, 1989 
(54 FR 27274) EPA published criteria for approving and incorporating 
into the State Implementation Plan (SIP) regulatory programs for the 
issuance of federally enforceable state operating permits. Permits 
issued pursuant to an operating permit program meeting these criteria 
and approved into the SIP are considered federally enforceable. EPA has 
encouraged States to consider developing such programs in conjunction 
with Title V operating permit programs for the purpose of creating 
federally enforceable limits on a source's potential to emit. This 
mechanism enables sources to reduce their potential to emit of criteria 
pollutants to below the Title V applicability thresholds and avoid 
being subject to Title V. (See the guidance document entitled, 
``Limitation of Potential to Emit with Respect to Title V Applicability 
Thresholds,'' dated September 18, 1992, from John Calcagni, Director of 
EPA's Air Quality Management Division).
    Also as part of this action, EPA is taking final action to approve 
Pennsylvania's plan approval (i.e., construction permit) and operating 
permit programs pursuant to Section 112(l) of the Clean Air Act for the 
purpose of allowing the Commonwealth to issue plan approvals and 
operating permits which limit source's potential to emit hazardous air 
pollutants (HAPs). Section 112(l) of the Clean Air Act provides the 
underlying authority for controlling emissions of HAPs. Therefore, in 
order to extend federal enforceability of the Commonwealth's operating 
permit and plan approval programs to include HAPs, EPA is today 
approving Pennsylvania's plan approval and operating permit program 
submittals pursuant to Section 112(l) of the Act.

II. Final Action and Implications

A. Analysis of State Submission

    The Secretary of the Department of Environmental Resources, as the 
designee of the Governor of the Commonwealth of Pennsylvania, submitted 
an administratively complete title V Operating Permit Program for the 
Commonwealth of Pennsylvania on May 18, 1995. The Pennsylvania program, 
including the operating permit regulations (25 Pa. Code Chapter 127, 
Subchapter G, ``Title V Operating Permits'') fully meets the 
requirements of 40 CFR parts 70.2 and 70.3 with respect to 
applicability; parts 70.4, 70.5, and 70.6 with respect to permit 
content including operational flexibility; part 70.5 with respect to 
complete application forms and criteria which define insignificant 
activities; part 70.7 with respect to public participation and minor 
permit modifications; and part 70.11 with respect to requirements for 
enforcement authority.
    Section 127.531 of Subchapter G contains the acid rain provisions 
of the Commonwealth's Title V operating permits program. EPA is aware 
that Pennsylvania has not directly incorporated by reference EPA's 
Title IV regulations found at 40 CFR Part 72, and has not adopted EPA's 
model rule. However, as referenced in EPA's March 7, 1996 Federal 
Register notice proposing full approval of Pennsylvania's program (61 
FR 9125), several regulatory provisions require that Pennsylvania's 
Title V program be operated in accordance with the requirements of 
Title IV and its implementing regulations. Section 127.531(a) provides 
that the acid rain provisions of that section ``shall be interpreted in 
a manner consistent with the Clean Air Act and the regulations 
thereunder.'' Section 127.531(b) requires that affected sources submit 
a permit application and compliance plan ``that meets the requirements 
of * * * the Clean Air Act and the regulations thereunder.'' Further, 
the Sec. 121.1 definition of ``applicable requirements'' for Title V 
sources includes standards or other requirements ``of the acid rain 
program under Title IV of the Clean Air Act * * * or the regulations 
thereunder.''
    For additional assurance that Pennsylvania's operating permit 
program will operate in compliance with applicable acid rain 
requirements, EPA notes that the Commonwealth has agreed to accept 
delegation of the applicable provisions of 40 C.F.R. Parts

[[Page 39599]]

70, 72, and 78 for the purpose of implementing the Title IV 
requirements of its operating permit program. The Pennsylvania 
Department of Environmental Protection (PADEP) shall apply these 
provisions for purposes of incorporating Acid Rain program requirements 
into each affected source's operating permit; identifying designated 
representatives; establishing permit application deadlines; issuing, 
denying, modifying, reopening, and renewing permits; establishing 
compliance plans; processing permit appeals; and issuing written 
exemptions under 40 C.F.R. 72.7 and 72.8. This commitment is contained 
in an Implementation Agreement which has been negotiated between EPA 
and PADEP.
    As part of the May 18, 1995 submittal, PADEP submitted to EPA for 
review and approval a revision to its State Implementation Plan (SIP) 
designed to create federally enforceable limits on a source's potential 
to emit. The revision consists of regulations establishing a State 
operating permit program and a plan approval (i.e., construction 
permit) program, codified in Subchapters F and B, respectively, of the 
Commonwealth's air quality regulations. Pennsylvania refers to 
construction permits as ``plan approvals.'' As explained more fully in 
EPA's March 7, 1996 Notice of Proposed Rulemaking, 61 FR 9125, and in 
the Technical Support Document which accompanied that proposed 
rulemaking, the SIP revision submitted by Pennsylvania generally 
strengthens the SIP by establishing a comprehensive operating permit 
and plan approval program designed to limit source's potential to emit 
of both criteria and hazardous air pollutants. As explained in the 
March 7, 1996 Notice, EPA's review of this revision to the federally 
enforceable Pennsylvania SIP indicates that the operating permit and 
plan approval programs both meet applicable federal criteria for 
approval. Specifically, EPA's review of the State operating permit 
program submitted by Pennsylvania indicates that the program meets the 
five criteria for approval set forth in the June 28, 1989 Federal 
Register document (54 FR 27282) and the statutory criteria for approval 
under Section 112(l)(5) of the Act. Please refer to EPA's March 7, 1996 
Federal Register Notice for further information.
    EPA's review of the Pennsylvania plan approval program indicates 
that this program also meets applicable federal criteria for approval. 
Specifically, EPA has determined that the Pennsylvania plan approval 
program meets the statutory criteria for approval under Section 
112(l)(5) of the Act. As explained in EPA's March 7, 1996 Notice, a 
State operating permit or plan approval (i.e., construction permit) 
issued pursuant to a program which has been approved by EPA and 
incorporated into the SIP, and which meets the June 28, 1989 Federal 
Register document and Clean Air Act Section 112(l) criteria, are deemed 
federally enforceable and may be used to limit the potential to emit of 
both criteria and hazardous air pollutants (HAPs). This will, in many 
cases, allow a source to voluntarily limit its potential to emit of air 
pollutants and avoid being subject to otherwise applicable major source 
requirements of the Act, including Title V operating permit 
requirements. Accordingly, EPA is today approving and incorporating 
into the SIP Pennsylvania's operating permit and plan approval program 
regulations pursuant to Sections 110 and 112 of the Act.
    On January 31, 1996, PADEP proposed for public review and comment a 
draft ``Voluntary Environmental Compliance Audit Policy.'' EPA is 
concerned that this policy may impermissibly limit PADEP's authority to 
seek civil penalties for certain violations disclosed by a source after 
a voluntary audit. See Clean Air Act Sections 113(e)(1) and 502(b)(5); 
40 CFR 70.11(a)(3) and (c). This policy has not been finalized and 
implemented by PADEP, and thus its final scope and applicability are 
uncertain. However, EPA advised Pennsylvania by letter on June 5, 1996 
that if PADEP's final audit policy impermissibly limits PADEP's 
authority to seek civil penalty from sources subject to this 
rulemaking, then EPA will consider this to be grounds for reopening 
this rulemaking and reconsidering its decision to fully approve the 
programs that are the subject of this rulemaking.

B. Response to Comments

    EPA did not receive any comments on its March 7, 1996 Federal 
Register notice proposing full approval of the Pennsylvania Title V 
operating permit, State operating permit, and plan approval programs.

C. Final Action

    The EPA is promulgating full approval of the operating permits 
program submitted to EPA by the Commonwealth of Pennsylvania on May 18, 
1995. Among other things, Pennsylvania has demonstrated that the 
program will be adequate to meet the minimum elements of a State 
operating permits program as specified in 40 CFR Part 70.
    In addition, the EPA is approving the Pennsylvania Operating Permit 
and Plan Approval programs, codified in 25 Pa. Code Chapter 127 
Subchapters F and B, respectively, pursuant to Section 110 of the Act 
for the purpose of creating Federally enforceable permit conditions for 
sources of criteria air pollutants. In order to extend Pennsylvania's 
authority under Section 110 of the Act to include authority to create 
federally enforceable limits on the potential to emit of hazardous air 
pollutants (HAPs) listed pursuant to Section 112(b) of the Act, EPA is 
approving Pennsylvania's Operating Permit and Plan Approval programs 
pursuant to Section 112(l) of the Act.
    The scope of the Commonwealth's part 70 program approved in this 
document applies to all Title V facilities (as defined in the approved 
program) within the Commonwealth, except any sources of air pollution 
over which an Indian Tribe has jurisdiction. See, e.g., 59 FR 55813, 
55815-18 (Nov. 9, 1994). The term ``Indian Tribe'' is defined under the 
Act as ``any Indian tribe, band, nation, or other organized group or 
community, including any Alaska Native village, which is Federally 
recognized as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians.'' 
See section 302(r) of the Clean Air Act; see also 59 FR 43956, 43962 
(Aug. 25, 1994); 58 FR 54364 (Oct. 21, 1993).
    Requirements for 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) requires that the State's program contain 
adequate authorities, adequate resources for implementation, and an 
expeditious compliance schedule, which are also requirements under Part 
70. Therefore, the EPA is also promulgating full approval under section 
112(l)(5) and 40 CFR 63.91 of the State's program for receiving 
delegation of section 112 standards that are unchanged from Federal 
standards as promulgated. This program for delegations only applies to 
sources covered by the Part 70 program.

III. Administrative Requirements

A. Docket

    Copies of the Commonwealth's submittal and other information relied 
upon for the final full approval are contained in docket number PA065-
4025 maintained at the EPA Regional Office. The docket is an organized 
and complete file of all the information submitted to, or otherwise 
considered by, EPA in the development of this final

[[Page 39600]]

full approval. The docket is available for public inspection at the 
location listed under the ADDRESSES section of this document.

B. Executive Order 12866

    This action granting final full approval of Pennsylvania's Title V 
program and final approval of Pennsylvania's plan approval and State 
operating permit programs has been classified as a Table 3 action for 
signature by the Regional Administrator under the procedures published 
in the Federal Register on January 19, 1989 (54 FR 2214-2225), as 
revised by a July 10, 1995 memorandum from Mary Nichols, Assistant 
Administrator for Air and Radiation. The Office of Management and 
Budget (OMB) has exempted this regulatory action from E.O. 12866 
review.

C. Regulatory Flexibility Act

    The EPA's actions under section 502 of the Act do not create any 
new requirements, but simply address operating permits programs 
submitted to satisfy the requirements of 40 CFR Part 70. Because this 
action does not impose any new requirements, it does not have a 
significant impact on a substantial number of small entities.

D. Unfunded Mandates

    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 
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 proposed/promulgated 
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. This Federal action 
approves pre-existing requirements under State or local law, and 
imposes no new Federal requirements. Accordingly, no additional costs 
to State, local, or tribal governments, or to the private sector, 
result from this action.

E. Submission to Congress and the General Accounting Office

    Under section 801(a)(1)(A) of the Administrative Procedure Act 
(APA) as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996, EPA submitted a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives and the Comptroller General of the General Accounting 
Office prior to publication of the rule in today's Federal Register. 
This rule is not a ``major rule'' as defined by section 804(2) of the 
APA as amended.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any state implementation plan. Each request for revision to 
the state implementation plan shall be considered separately in light 
of specific technical, economic, and environmental factors and in 
relation to relevant statutory and regulatory requirements.
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by September 30, 1996. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements. (See section 307(b)(2).)

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Incorporation by reference, Intergovernmental relations, 
Nitrogen dioxide, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur oxides.

40 CFR Part 70

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

    Dated: June 26, 1996.
Stanley L. Laskowski,
Acting Regional Administrator, EPA Region III.

    Chapter I, title 40 of the Code of Federal Regulations is amended 
as follows:

PART 52--[AMENDED]

    1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.

Subpart NN--Pennsylvania

    2. Section 52.2020 is amended by adding paragraph (c)(110) to read 
as follows:


Sec. 52.2020  Identification of plan.

* * * * *
    (c) * * *
    (110) Revisions to the Operating Permit, Plan Approval and Sampling 
and Testing Program Regulations submitted on May 18, 1995 by the 
Pennsylvania Department of Environmental Resources:
    (i) Incorporation by reference.
    (A) Letter of May 15, 1995 from the Pennsylvania Department of 
Environmental Resources transmitting Pennsylvania's Title V operating 
permit, plan approval, and State operating permit programs.
    (B) Revisions to the definition of ``Potential to emit'' and 
addition of the following definitions in Title 25, Chapter 121, Section 
121.1, effective on November 26, 1994: ``Air pollution'', ``Applicable 
requirements'', ``Compliance docket'', ``Compliance review form'', 
``Deviation'', ``Documented conduct'', ``Federally enforceable 
emissions cap'', ``General plan approval'', ``General operating 
permit'', ``Minor operating permit modification'', ``Performance 
standard'', ``Related party'', ``Renewal'', ``Research and development 
facility'', ``Responsible official'', ``Title V facility'', ``Title V 
permit'', and ``Title V regulated air pollutant.''
    (C) The following amendments to Title 25, Chapter 127, effective on 
November 26, 1994: Sec. 127.1, 127.3, 127.11 through 127.14, 127.25, 
127.32, 127.35, 127.36, 127.44, 127.45, 127.47, 127.49 through 127.51, 
127.401 through 127.404, 127.411 through 127.414, 127.421 through 
127.431, 127.441 through 127.450, 127.461 through 127.464, 127.701 
through 127.703, and 127.707.
    (D) The following amendments to Title 25, Chapter 139, effective on 
November 26, 1994: Sec. 139.4, 139.5, 139.12, 139.13, 139.14, 139.32, 
139.101 through 139.104, and 139.108.

[[Page 39601]]

    (ii) Additional material.
    (A) Remainder of May 18, 1995 State submittal.
    3. Section 52.2061 is added to read as follows:


Sec. 52.2061  Operating permits.

    (a) Emission limitations and related provisions which are 
established in Pennsylvania operating permits as federally enforceable 
conditions shall be enforceable by EPA. EPA reserves the right to deem 
permit conditions not federally enforceable. Such a determination will 
be made according to appropriate procedures, and be based upon the 
permit, permit approval procedures, or permit requirements which do not 
conform with the operating permit program requirements or the 
requirements of EPA's underlying regulations.
    (b) (reserved)
    4. Section 52.2062 is added to read as follows:


Sec. 52.2062  Plan approvals.

    (a) Emission limitations and related provisions which are 
established in Pennsylvania plan approvals as federally enforceable 
conditions shall be enforceable by EPA. EPA reserves the right to deem 
plan approval conditions not federally enforceable. Such a 
determination will be made according to appropriate procedures, and be 
based upon the plan approval, the relevant approval procedures, or plan 
requirements which do not conform with the plan approval program 
requirements or the requirements of EPA's underlying regulations.
    (b) (reserved)

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 the entry for 
Pennsylvania in alphabetical order to read as follows:

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

* * * * *

Pennsylvania

    (a) Pennsylvania Department of Environmental Resources [now known 
as the Pennsylvania Department of Environmental Protection]: submitted 
on May 18, 1995; full approval effective on August 29, 1996.
    (b) (Reserved)

[FR Doc. 96-19205 Filed 7-29-96; 8:45 am]
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