[Federal Register Volume 65, Number 159 (Wednesday, August 16, 2000)]
[Rules and Regulations]
[Pages 49919-49922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20723]


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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 70

[CO-001a; FRL-6851-3]


Clean Air Act Full Approval of Operating Permit Program; Approval 
of Expansion of State Program Under Section 112(l); State of Colorado

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

SUMMARY: The EPA is promulgating full approval of the Operating Permit 
Program submitted by the State of Colorado. Colorado's operating permit 
program was submitted for the purpose of meeting the federal Clean Air 
Act (Act) directive that States develop, and submit to EPA, programs 
for issuing operating permits to all major stationary sources and to 
certain other sources within the State's jurisdiction. EPA is also 
approving the expansion of Colorado's program for receiving delegation 
of section 112 standards to include non-part 70 sources.

DATES: This direct final rule is effective on October 16, 2000, without 
further notice, unless EPA receives adverse comment by September 15, 
2000. If adverse comment is received, EPA will publish a timely 
withdrawal of the direct final rule in the Federal Register and inform 
the public that the rule will not take effect.

ADDRESSES: Written comments may be mailed to Richard R. Long, Director, 
Air and Radiation Program, Mail Code 8P-AR, Environmental Protection 
Agency (EPA), Region VIII, 999 18th Street, Suite 500, Denver, Colorado 
80202-2466. Copies of the documents relevant to this action are 
available for public inspection during normal business hours at the Air 
and Radiation Program, Environmental Protection Agency, Region VIII, 
999 18th Street, Suite 500, Denver, Colorado 80202-2466 and are also 
available during normal business hours at the Colorado Department of 
Public Health and Environment, Air Pollution Control Division, 4300 
Cherry Creek Drive South, Denver, CO 80222-1530.

FOR FURTHER INFORMATION CONTACT: Patricia Reisbeck, Mail Code 8P-AR, 
Environmental Protection Agency, Region 8, 999 18th Street, Denver, 
Colorado 80202-2466; (303) 312-6435.

SUPPLEMENTARY INFORMATION:

I. Background

    As required under title V of the Clean Air Act (``the Act'') as 
amended (42 U.S.C. 7401 et seq.), EPA has promulgated rules that define 
the minimum elements of an approvable State operating permit program 
and the corresponding standards and procedures by which the EPA will 
approve, oversee, and withdraw approval of State operating permit 
programs (see 57 FR 32250 (July 21, 1992)). These rules are codified at 
40 Code of Federal Regulations (CFR) part 70 (``part 70''). Title V 
directs States to develop, and submit to EPA, programs for issuing 
operating permits to all major stationary sources and to certain other 
sources.
    The Act directs States to develop and submit operating permit 
programs to the EPA by November 15, 1993, and requires that EPA act to 
approve or

[[Page 49920]]

disapprove each program within one year after receiving the submittal. 
The EPA's program review occurs pursuant to section 502 of the Act (42 
U.S.C. 7661a) 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. If EPA has not fully approved a program by 
two years after the November 15, 1993 date, or before the expiration of 
an interim program approval, it must establish and implement a federal 
program.
    The State of Colorado was granted final interim approval of its 
program on January 24, 1995 (see 60 FR 4563) and the program became 
effective on February 23, 1995. Interim approval of the Colorado 
program expires on December 1, 2001.

II. Analysis of State Submission

    The Governor of Colorado submitted an administratively complete 
Title V operating permit program for the State of Colorado on November 
5, 1993. This Colorado program, including the operating permit 
regulations at part C of Regulation No. 3, substantially met the 
requirements of part 70. EPA deemed the program administratively 
complete in a letter to the Governor dated January 4, 1994. The program 
submittal included a legal opinion from the Colorado Attorney General 
stating that the laws of the State provide adequate legal authority to 
carry out all aspects of the program, a description of how the State 
would implement the program regulations, application and permit forms, 
and a permit fee demonstration.
    EPA's comments noting deficiencies in the Colorado program were 
sent to the State in a letter dated April 8, 1994. The deficiencies 
were segregated into those that would require corrective action prior 
to interim program approval, and those that would require corrective 
action prior to full program approval. The State committed to address 
the program deficiencies that would require corrective action prior to 
interim program approval in a letter dated May 12, 1994, and 
subsequently held a public hearing to consider and adopt the necessary 
changes on August 18, 1994.
    The State submitted its revised part 70 program and a supplemental 
Attorney General's opinion with letters dated September 29, 1994 and 
October 3, 1994. EPA reviewed these corrective actions and determined 
them to be adequate to allow for interim program approval. On January 
24, 1995, EPA published a Federal Register document promulgating final 
interim approval of the Colorado program. See 60 FR 4563.
    Areas of the Colorado program that were identified by EPA in the 
January 24, 1995 Federal Register as deficient and the State's 
corrective actions for full program approval are as follows:
    (1) The State was required to revise its administrative process in 
section II.D.5 of part A of Air Quality Control Commission Regulation 
3, for adding additional activities to the list of insignificant 
activities allowed as exemptions under 40 CFR 70.5(c), to require 
approval by the EPA of any new exemptions before such exemptions can be 
utilized by a source.
    Correction: In a letter dated March 7, 1996, the State submitted a 
copy of Colorado's revised section II.D.5 of part A of Regulation No. 
3, adopted August 17, 1995, requiring EPA approval of any new additions 
to the State's insignificant activities list. EPA reviewed the revised 
regulation and determined that it is adequate to allow for full program 
approval.
    (2) The State was asked to revise the Colorado Air Quality Control 
Act (Colo. Rev. Stat. section 25-7-109.6(5)(1999)) to remove the 
condition that an accidental release prevention program pursuant to 
section 112(r) of the Act will only be implemented if Federal funds are 
available. A guidance memo, dated April 13, 1993, from John Seitz, 
Director of the Office of Air Quality Planning and Standards, entitled 
``Title V Program Approval Criteria for Section 112 Activities'' 
provides that in order to obtain full Title V approval from EPA the 
State must have authority to ``* * * issue Part 70 permits that assure 
compliance with all currently applicable requirements * * *''. Such 
requirements include requirements under section 112(r)(7) of the Act 
for certain sources to prepare and implement a risk management plan to 
prevent and minimize accidental releases of hazardous air pollutants, 
and to submit the plan to EPA.
    Correction: In a letter dated March 13, 1996, the State indicated 
that it does comply with the April 13, 1993 memorandum from John Seitz 
and has the necessary authority to implement all of the current 
requirements of section 112, including section 112(r). This position 
was affirmed in an opinion letter from the Office of the Attorney 
General for the State of Colorado, dated June 23, 1997. The opinion 
concluded that, although State law prohibited Colorado from 
establishing its own section 112(r) accidental release program in the 
absence of federal funding, the State had adequate authority to 
incorporate pertinent requirements from the federal program in State-
issued Title V operating permits and, therefore, a statutory amendment 
would not be required to comply with Title V. EPA concurred with the 
State's opinion, as discussed in a letter from Richard Long, dated July 
9, 1997.
    In addition to providing the opinion letter, the State made a 
commitment to work toward resolving any issues that the final 112(r) 
rule might raise. The final 112(r) rule, which was promulgated on June 
20, 1996, did not require additional involvement by the State and thus 
raised no new issues. See 40 CFR 68.215; see also 61 FR 31728 (June 20, 
1996). Therefore, after further review, EPA believes that the State of 
Colorado has authority to implement all the section 112(r) requirements 
that are necessary for full program approval.
    In a letter dated June 24, 1997, Colorado documented its actions 
that corrected the interim approval deficiencies and requested EPA's 
review and full approval of its program. The letter also acknowledged 
that full approval action might be delayed because EPA had identified 
concerns that Colorado's audit privilege and immunity law (SB 94-139) 
(``self-audit law'') might impair the State's ability to enforce 
federally authorized programs, including the Title V program. After 
lengthy negotiations between EPA and the State, Colorado proposed to 
amend the self-audit law. The statutory amendments were adopted by the 
State legislature and signed by the Governor on May 30, 2000.
    In addition, on April 14, 2000, the Attorney General for Colorado 
issued a formal opinion interpreting various provisions of the self-
audit law, resolving certain other enforcement issues not addressed by 
the statutory amendments. Finally, on May 30, 2000, EPA and the State 
of Colorado entered into a memorandum of agreement concerning 
implementation of the self-audit law. The memorandum of agreement was 
intended as a companion document to be read in conjunction with the 
Attorney General's April 14 opinion.
    Taken altogether, the statutory amendments, the Attorney General's 
opinion, and the memorandum of agreement effectively resolved all the 
issues EPA identified concerning the effect of the self-audit law on 
Colorado's ability to enforce federally authorized programs. 
Accordingly, EPA is free to proceed with rulemaking to grant full 
approval of the Colorado Title V program.

[[Page 49921]]

III. Program for Straight Delegation of Section 112 Standards

    Requirements for program approval, specified in 40 CFR 70.4(b), 
encompass requirements under section 112(l)(5) of the Act for 
delegation of National Emission Standards for Hazardous Air Pollutants 
(NESHAPs) promulgated by EPA under 40 CFR parts 61 and 63, as well as 
other section 112 standards and requirements. Section 112(l)(5) 
requires that the State's hazardous air pollutant control program 
contain adequate authorities to implement and enforce the program, 
adequate resources for implementation, and an expeditious compliance 
schedule.
    These criteria are also requirements for approval of a State 
operating permit program under part 70. Because Colorado had satisfied 
those requirements, EPA granted approval of the State's program under 
section 112(l)(5) and 40 CFR 63.91, for receiving delegation of section 
112 standards that are unchanged from the Federal standards, in the 
Federal Register document promulgating final interim approval of the 
Colorado operating permit program. See 60 FR 4563, 4568.
    EPA's approval of Colorado's section 112(l) program was limited, 
however, to delegation of standards as they apply to part 70 sources. 
Based on the State's request, dated February 2, 1996, EPA is expanding 
this approval to include non-part 70 sources. EPA believes that this 
expanded approval is warranted, because State law does not 
differentiate between part 70 and non-part 70 sources for purposes of 
implementation and enforcement of section 112 standards that the State 
has adopted. This approval establishes a basis for the State to receive 
direct delegation of authority to implement and enforce, for non-part 
70 sources, section 112 standards that the State adopts without change 
from the federal standards. Such direct delegation includes section 112 
standards that EPA may promulgate in the future. See 61 FR 36295 (July 
10, 1996).

IV. Final Action

    In this document, EPA is granting full approval of the Colorado 
part 70 operating permit program for all areas within the State except 
the following: any sources of air pollution located in ``Indian 
Country'' as defined in 18 U.S.C. 1151, including the following Indian 
reservations in the State: Southern Ute Indian Reservation and the Ute 
Mountain Ute Indian Reservation, or any other sources of air pollution 
over which an Indian Tribe has jurisdiction. See section 301(d)(2)(B) 
of the Act; see also 63 FR 7254 (February 12, 1998).
    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 
Act; see also 58 FR 54364 (October 21, 1993).
    Based on the State's request, EPA is also expanding its approval of 
the State's program under section 112(l)(5) of the Act and 40 CFR 63.91 
for receiving delegation of section 112 standards that are unchanged 
from the Federal standards, to include non-part 70 sources.
    The EPA is publishing this rule without prior proposal because the 
State is currently implementing its part 70 program and the Agency 
views this as a noncontroversial action and anticipates no adverse 
comments. However, in the proposed rules section of this Federal 
Register publication, EPA is publishing a separate document that will 
serve as the proposal to grant full approval of the operating permit 
program submitted by the State of Colorado should adverse comments be 
filed. This rule will be effective October 16, 2000, without further 
notice unless the Agency receives adverse comments by September 15, 
2000.
    If the EPA receives such comments, then EPA will publish a timely 
withdrawal in the Federal Register informing the public that the rule 
will not take effect. All public comments received will then be 
addressed in a subsequent final rule based on the proposed rule. The 
EPA will not institute a second comment period on this action. Any 
parties interested in commenting on this rule must do so at this time.

V. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget has exempted this regulatory 
action from Executive Order 12866, entitled ``Regulatory Planning and 
Review.''

B. Executive Order 13132

    Federalism (64 FR 43255, August 10, 1999) revokes and replaces 
Executive Order 12612 (Federalism) and Executive Order 12875 (Enhancing 
the Intergovernmental Partnership). Executive Order 13132 requires EPA 
to develop an accountable process to ensure ``meaningful and timely 
input by state and local officials in the development of regulatory 
policies that have federalism implications.'' ``Policies that have 
federalism implications'' is defined in the Executive Order to include 
regulations that have ``substantial direct effects on the states, on 
the relationship between the national government and the states, or on 
the distribution of power and responsibilities among the various levels 
of government.'' Under Executive Order 13132, EPA may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal Government provides the funds necessary to pay the direct 
compliance costs incurred by state and local governments, or EPA 
consults with state and local officials early in the process of 
developing the proposed regulation. EPA also may not issue a regulation 
that has federalism implications and that preempts state law unless the 
Agency consults with state and local officials early in the process of 
developing the proposed regulation.
    This final rule will not have substantial direct effects on the 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132. 
Thus, the requirements of section 6 of the Executive Order do not apply 
to this rule.

C. Executive Order 13045

    Protection of Children from Environmental Health Risks and Safety 
Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) Is 
determined to be ``economically significant'' as defined under 
Executive Order 12866, and (2) concerns an environmental health or 
safety risk that EPA has reason to believe may have a disproportionate 
effect on children. If the regulatory action meets both criteria, the 
Agency must evaluate the environmental health or safety effects of the 
planned rule on children, and explain why the planned regulation is 
preferable to other potentially effective and reasonably feasible 
alternatives considered by the Agency.
    This rule is not subject to Executive Order 13045 because it is not 
an economically significant regulatory action as defined by Executive 
Order 12866, and it does not establish a further health or risk-based 
standard because it approves state rules which implement a previously 
promulgated health or safety-based standard.

[[Page 49922]]

D. Executive Order 13084

    Under Executive Order 13084, EPA may not issue a regulation that is 
not required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, Executive Order 13084 
requires EPA to provide to the Office of Management and Budget, in a 
separately identified section of the preamble to the rule, a 
description of the extent of EPA's prior consultation with 
representatives of affected tribal governments, a summary of the nature 
of their concerns, and a statement supporting the need to issue the 
regulation.
    In addition, Executive Order 13084 requires EPA to develop an 
effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.'' Today's rule 
does not significantly or uniquely affect the communities of Indian 
tribal governments. This action does not involve or impose any 
requirements that affect Indian tribes. Accordingly, the requirements 
of section 3(b) of Executive Order 13084 do not apply to this rule.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to conduct a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. Small entities include small 
businesses, small not-for-profit enterprises, and small governmental 
jurisdictions.
    This final rule will not have a significant impact on a substantial 
number of small entities because part 70 approvals under section 502 of 
the Act do not create any new requirements but simply approve 
requirements that the State is already imposing. Therefore, because 
this approval does not create any new requirements, I certify that this 
action will not have a significant economic impact on a substantial 
number of small entities.

F. 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 
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 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 
requirements. Accordingly, no additional costs to State, local, or 
tribal governments, or to the private sector, result from this action.

G. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of Congress and to the Comptroller General of the United 
States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. This rule is not a 
``major rule'' as defined by 5 U.S.C. 804(2).

H. Petitions for Judicial Review

    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 October 16, 2000. 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 in 40 CFR Part 70

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

    Dated: August 4, 2000.
 Jack W. McGraw,
Acting Regional Administrator, Region VIII.

    40 CFR part 70 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. In appendix A to part 70 the entry for Colorado is amended by 
adding paragraph (b) to read as follows:

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

* * * * *

Colorado

* * * * *
    (b) The Colorado Department of Public Health and Environment--
Air Pollution Control Division submitted an operating permits 
program on November 5, 1993; interim approval effective on February 
23, 1995; revised June 24, 1997; full approval effective on October 
16, 2000.

[FR Doc. 00-20723 Filed 8-15-00; 8:45 am]
BILLING CODE 6560-50-U