[Federal Register: June 30, 2006 (Volume 71, Number 126)]
[Proposed Rules]               
[Page 37743-37787]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30jn06-23]                         


[[Page 37743]]

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Part IV





Environmental Protection Agency





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40 CFR Parts 122 and 412



Revised National Pollutant Discharge Elimination System Permit 
Regulation and Effluent Limitation Guidelines for Concentrated Animal 
Feeding Operations in Response to Waterkeeper Decision; Proposed Rule


[[Page 37744]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 122 and 412

[EPA-HQ-OW-2005-0037; FRL-8189-7]
RIN 2040-AE80

 
Revised National Pollutant Discharge Elimination System Permit 
Regulation and Effluent Limitation Guidelines for Concentrated Animal 
Feeding Operations in Response to Waterkeeper Decision

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to revise the National Pollutant Discharge 
Elimination System (NPDES) permitting requirements and Effluent 
Limitations Guidelines and Standards (ELGs) for concentrated animal 
feeding operations (CAFOs) in response to the order issued by the 
Second Circuit Court of Appeals in Waterkeeper Alliance et al. v. EPA, 
399 F.3d 486 (2nd Cir. 2005). This proposed rule responds to the court 
order while furthering the statutory goal of restoring and maintaining 
the nation's water quality and effectively ensuring that CAFOs properly 
manage manure generated by their operations.
    This proposal would revise several aspects of EPA's current 
regulations governing discharges from CAFOs. First, EPA proposes to 
require only the owners and operators of those CAFOs that discharge or 
propose to discharge to seek coverage under a permit. Second, EPA 
proposes to require CAFOs seeking coverage under a permit to submit 
their nutrient management plan (NMP) with their application for an 
individual permit or notice of intent to be authorized under a general 
permit. Permitting authorities would be required to review the plan and 
provide the public with an opportunity for meaningful public review and 
comment. Permitting authorities would also be required to incorporate 
terms of the NMP as NPDES permit conditions. Third, this action 
proposes to authorize permit writers, upon request by a CAFO, to 
establish best management, zero discharge effluent limitations when the 
facility demonstrates that it has designed an open containment system 
that will comply with the no discharge requirements.
    This proposed rule also responds to the court's remand orders 
regarding water-quality based effluent limitations (WQBELs) and 
pathogens. EPA proposes to clarify that WQBELs are available in permits 
with respect to production area discharges and non-precipitation 
related discharges from land application, but are statutorily 
unavailable in permits for Large CAFOs with respect to precipitation 
related land application discharges because the only allowable 
discharge from a land application area is due to agricultural storm 
water which is by statute exempt from permitting requirements. Finally, 
EPA proposes to clarify its selection of BCT technologies for pathogens 
(fecal coliform), and reaffirm its decision to set the BCT limitations 
for fecal coliform to be equal to the BPT limits established in the 
2003 CAFO rule.

DATES: Comments on this proposed action must be received on or before 
August 14, 2006.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-OW-
2005-0037 by one of the following methods:
    (1) http://www.regulations.gov: Follow the on-line instructions for 

submitting comments.
    (2) E-mail: ow-docket@epa.gov, Attention Docket ID No. EPA-HQ-OW-
2005-0037.
    (3) Mail: Send the original and three copies of your comments to: 
Water Docket, Environmental Protection Agency, Mail code 4203M, 1200 
Pennsylvania Ave., NW., Washington, DC 20460, Attention Docket ID No. 
OW-2005-0037.
    (4) Hand Delivery: Deliver your comments to: EPA Docket Center, EPA 
West, Room B102, 1301 Constitution Avenue, NW., Washington, DC, 
Attention Docket ID No. OW-2005-0037. Such deliveries are only accepted 
during the Docket's normal hours of operation and special arrangements 
should be made for deliveries of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OW-2005-
0037. EPA's policy is that all comments received will be included in 
the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information provided, 

unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI or otherwise protected through http://www.regulations.gov or e-mail. 

The http://www.regulations.gov Web site is an ``anonymous access'' system, 

which means EPA will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through http://www.regulations.gov, 

your e-mail address will be automatically captured and included as part 
of the comment that is placed in the public docket and made available 
on the Internet. If you submit an electronic comment, EPA recommends 
that you include your name and other contact information in the body of 
your comment and with any disk or CD-ROM you submit. If EPA cannot read 
your comment due to technical difficulties and cannot contact you for 
clarification, EPA may not be able to consider your comment. Electronic 
files should avoid the use of special characters, any form of 
encryption, and be free of any defects or viruses. For additional 
information about EPA's public docket visit the EPA Docket Center 
homepage at http://www.epa.gov/epahome/dockets.htm.

    Docket: 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 Water Docket in the EPA 

Docket Center, EPA West, Room B102, 1301 Constitution Ave., NW., 
Washington, DC. 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 Water Docket is (202) 566-2426.

FOR FURTHER INFORMATION CONTACT: For additional information contact 
Kawana Cohen, Water Permits Division, Office of Wastewater Management 
(4203M), Environmental Protection Agency, 1200 Pennsylvania Ave., NW., 
Washington, DC 20460; telephone number: (202) 564-2345, e-mail address: 
cohen.kawana@epa.gov or Paul Shriner, Engineering and Analysis 

Division, Office of Science and Technology (4303T), Environmental 
Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460; 
telephone number: 202-566-1076, e-mail address: shriner.paul@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. General Information
    A. Does this Action Apply to Me?
    B. What Should I Consider as I Prepare My Comments for EPA?
II. Background
    A. The Clean Water Act
    B. History of Actions to Address CAFOs under the NPDES 
Permitting Program

[[Page 37745]]

    C. Ruling by the U.S. Court of Appeals for the Second Circuit
    1. Issues Upheld by the Court
    2. Issues Vacated by the Court
    3. Issues Remanded by the Court
    D. What Requirements Still Apply to CAFOs?
    E. Status of EPA's Response to the Waterkeeper Decision
III. This Proposal
    A. Duty to Apply for a Permit
    B. Nutrient Management Plans
    C. Remand Concerning Water Quality Based Effluent Limitations
    D. New Source Performance Standards for Subpart D Facilities
    E. Remand Concerning Pathogens for BCT
IV. Impact Analysis
V. Cross Media Approaches
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and 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 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

I. General Information

A. Does This Action Apply to Me?

    This action applies to concentrated animal feeding operations 
(CAFOs) as defined in section 502(14) of the Clean Water Act and in the 
NPDES regulations at 40 CFR 122.23. The following table provides a list 
of standard industrial codes for operations covered under this revised 
rule.

                              Table 1.--Entities Potentially Regulated by this Rule
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                                                                                                   Standarial
                                                                              North American       industrial
                Category                   Examples of regulated entities     industry code      classification
                                                                                  (NAIC)              code
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Federal, State, and Local Government:
Industry................................  Operators of animal production
                                           operations that meet the
                                           definition of a CAFO.
                                            Beef cattle feedlots                       112112               0211
                                             (including veal).
                                            Beef cattle ranching and                   112111               0212
                                             farming.
                                            Hogs..........................              11221               0213
                                            Sheep.........................        1241, 11242               0214
                                            General livestock except dairy              11299               0219
                                             and poultry.
                                            Dairy farms...................              11212               0241
                                            Broilers, fryers, and roaster               11232               0251
                                             chickens.
                                            Chicken eggs..................              11231               0252
                                            Turkey and turkey eggs........              11233               0253
                                            Poultry hatcheries............              11234               0254
                                            Poultry and eggs..............              11239               0259
                                            Ducks.........................             112390               0259
                                            Horses and other equines......              11292               0272
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    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that EPA is now aware 
could potentially be regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine whether 
your facility is regulated under this rulemaking, you should carefully 
examine the applicability criteria in 40 CFR 122.23. If you have 
questions regarding the applicability of this action to a particular 
entity, consult the person listed in the preceding FOR FURTHER 
INFORMATION CONTACT section.

B. What Should I Consider as I Prepare My Comments for EPA?

    1. Submitting Confidential Business Information. Do not submit this 
information to EPA through http://www.regulations.gov or e-mail. Clearly mark 

the part or all of the information that you claim to be CBI. For CBI 
information in a disk or CD-ROM that you mail to EPA, mark the outside 
of the disk or CD-ROM as CBI and then identify electronically within 
the disk or CD-ROM the specific information that is claimed as CBI. In 
addition to one complete version of the comment that includes 
information claimed as CBI, a copy of the comment that does not contain 
the information claimed as CBI must be submitted for inclusion in the 
public docket. Information so marked will not be disclosed except in 
accordance with procedures set forth in 40 CFR Part 2.
    2. Tips for Preparing Your Comments. It will be helpful if you 
follow these guidelines as you prepare your written comments:
    i. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date and page number).
    ii. Follow directions--The Agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
    iii. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    iv. Describe any assumptions and provide any technical information 
and/or data that you used.
    v. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    vi. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    vii. Explain your views as clearly as possible.
    viii. Make sure to submit your comments by the comment period 
deadline identified.

II. Background

A. The Clean Water Act

    Congress passed the Federal Water Pollution Control Act (1972), 
also known as the Clean Water Act (CWA), to ``restore and maintain the 
chemical, physical, and biological integrity of the nation's waters'' 
(33 U.S.C. 1251(a)). Among the core provisions, the CWA establishes the 
NPDES permit program to authorize and regulate the discharge of 
pollutants from point sources to waters of the U.S. 33 U.S.C. 1342.

[[Page 37746]]

Section 502(14) of the CWA specifically includes CAFOs in the 
definition of the term ``point source.'' Section 502(12) defines the 
term ``discharge of a pollutant'' to mean ``any addition of any 
pollutant to navigable waters from any point source'' (emphasis added). 
EPA has issued comprehensive regulations that implement the NPDES 
program at 40 CFR Part 122. The Act also provides for the development 
of technology-based and water quality-based effluent limitations that 
are imposed through NPDES permits to control the discharge of 
pollutants from point sources. CWA sections 301(a) and (b).

B. History of Actions to Address CAFOs under the NPDES Permitting 
Program

    EPA's regulation of wastewater and manure from CAFOs dates to the 
1970s. EPA initially issued national effluent limitations guidelines 
and standards for feedlots on February 14, 1974 (39 FR 5704), and NPDES 
CAFO regulations on March 18, 1976 (41 FR 11458).
    In February 2003, EPA issued revisions to these regulations that 
focused on the 5% of the nation's animal feeding operations (AFOs) that 
presented the highest risk of impairing water quality and public health 
(68 FR 7176) (``the 2003 CAFO rule''). The 2003 CAFO rule required the 
owners or operators of all CAFOs \1\ to seek coverage under an NPDES 
permit. CAFO industry organizations (American Farm Bureau Federation, 
National Pork Producers Council, National Chicken Council, and National 
Turkey Federation (NTF), although NTF later withdrew its petition) and 
environmental groups (Waterkeeper Alliance, Natural Resources Defense 
Council, Sierra Club, and American Littoral Society) filed petitions 
for judicial review of certain aspects of the 2003 CAFO rule. This case 
was brought before the U.S. Court of Appeals for the Second Circuit. On 
February 28, 2005, the court ruled on these petitions and upheld most 
provisions of the 2003 rule but vacated and remanded others. 
Waterkeeper Alliance et al. v. EPA, 399 F.3d 486 (2nd Cir. 2005). The 
court's decision, which applies nationally, is described in detail 
below.
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    \1\ The Clean Water Act regulates the conduct of persons, which 
includes the owners and operators of CAFOs, rather than the 
facilities or their discharges. To improve readability in this 
preamble, reference is made to ``CAFOs'' as well as ``owners and 
operators of CAFOs.'' No change in meaning is intended.
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    The revisions to the 2003 CAFO rule being proposed today relate 
directly to the changes required by the court's decision and continue 
to maintain the focus on regulating discharges from the universe of 
high-risk AFOs.

C. Ruling by the U.S. Court of Appeals for the Second Circuit

    The Second Circuit's decision in Waterkeeper upheld certain 
challenged provisions of the 2003 rule and vacated or remanded others, 
as follows.
1. Issues Upheld by the Court
    This section discusses provisions of the 2003 CAFO rule that were 
challenged by either industry or environmental petitioners, but were 
upheld by the Waterkeeper court and therefore remain unchanged. EPA is 
not proposing to revise any of these provisions and is not soliciting 
comment on them.
(a) Land Application Regulatory Framework and Interpretation of 
``Agricultural Storm Water''
    The Waterkeeper court upheld EPA's authority to regulate, through 
NPDES permits, the discharge of manure, litter, and process wastewater 
that CAFOs apply to crop or forage land. The court rejected the 
industry petitioners' claim that land application runoff must be 
channelized before it can be considered to be a point source discharge 
subject to permitting. The court noted that the CWA expressly defines 
the term ``point source'' to include ``any * * * concentrated animal 
feeding operation * * * from which pollutants are or may be 
discharged,'' and found that the Act ``not only permits, but demands'' 
that land application discharges be construed as discharges ``from'' a 
CAFO. Waterkeeper Alliance et al. v. EPA, 399 F.3d at 510.
    The Waterkeeper court also upheld EPA's determination in the 2003 
CAFO rule that precipitation-related discharges of manure, litter, or 
process wastewater from land application areas under the control of a 
CAFO qualify as ``agricultural stormwater'' only where the CAFO has 
applied the manure in accordance with nutrient management practices 
that ensure ``appropriate agricultural utilization'' of the manure, 
litter, and process wastewater nutrients. EPA's interpretation of the 
Act in this regard was reasonable, the court found, in light of 
Congressional intent in excluding agricultural stormwater from the 
meaning of the term ``point source'' and given the precedent set in an 
earlier Second Circuit case, Concerned Area Residents for the 
Environment v. Southview Farm, 34 F.3d 114 (2d Cir. 1994). Waterkeeper 
Alliance et al. v. EPA, 399 F.3d at 508-09.
(b) Effluent Guidelines
--Identification of best available technologies. The court rejected the 
environmental organizations' claim that when EPA chose the pollution 
control technologies on which to base effluent guidelines for CAFOs, 
the Agency did not meet its duty to identify the single CAFO with the 
best-performing technology. The court found that EPA had collected 
extensive data on the waste management systems at CAFOs and had 
considered approximately 11,000 public comments on the proposed CAFO 
rule, and on those bases, EPA had adequately justified its selection of 
``best available technologies'' on which to base the regulations.
--Groundwater controls. The court upheld EPA's decision in the 2003 
rule relating to groundwater controls. In the 2003 rule EPA stated that 
the Agency believed that requirements limiting the discharge of 
pollutants to surface water via groundwater that has a direct 
hydrologic connection to surface water were beyond the scope of the 
ELGs promulgated in the rule. The Agency also stated that nothing in 
the 2003 rule was to be construed to expand, diminish, or otherwise 
affect the jurisdiction of the CWA over discharges to surface water via 
groundwater that has a direct hydrologic connection to surface water.
--Economic methodologies. The court upheld the analytic methodologies 
that EPA used for determining whether the technology-based permit 
requirements for CAFOs set in the 2003 rule would be economically 
achievable by the industry as a whole.
2. Issues Vacated by the Court
    The following are the elements of the 2003 rule that the 
Waterkeeper court found to be unlawful and therefore vacated.
(a) Duty to Apply
    The CAFO industry organizations argued that the EPA exceeded its 
statutory authority by requiring all CAFOs to either apply for NPDES 
permits or demonstrate that they have no potential to discharge. The 
court agreed with the CAFO industry petitioners on this issue and 
therefore vacated the ``duty to apply'' provision of the 2003 CAFO 
rule.
    The court found that the duty to apply, which the Agency had based 
on a presumption that most CAFOs have at least a potential to 
discharge, was invalid, because the CWA subjects only actual discharges 
to permitting

[[Page 37747]]

requirements rather than potential discharges. The court acknowledged 
EPA's policy considerations for seeking to impose a duty to apply but 
found that the Agency lacked statutory authority to do so.
(b) Nutrient Management Plans
    The environmental organizations argued that the 2003 CAFO rule was 
unlawful because: (1) The rule empowered permitting authorities to 
issue permits without any meaningful review of a CAFO's NMP, (2) the 
rule failed to require that the terms of the nutrient management plan 
be included in the NPDES permit, and (3) the permitting approach 
established by the rule violated the Clean Water Act's public 
participation requirements. The court agreed with the environmental 
petitioners on these three issues.
    The court relied on provisions of the Act that authorize point 
source discharges only where NPDES permits ``ensure that every 
discharge of pollutants will comply with all applicable effluent 
limitations and standards,'' citing CWA sections 402(a)(1), (a)(2), and 
(b). Because the 2003 CAFO rule did not provide for permitting 
authority review of a CAFO's nutrient management plan before the permit 
was issued, the court found that the rule did not ensure that each 
Large CAFO's discharges comply with these CWA provisions. In addition, 
the court found that by not making the NMPs part of the permit and 
available to the public for review, the 2003 CAFO rule violated public 
participation requirements in sections 101(e) and 402 of the Act. The 
court also found that the terms of the NMPs themselves are ``effluent 
limitations'' as that term is defined in the Act and therefore must be 
made part of the permit and enforceable as required under CWA sections 
301 and 402.
3. Issues Remanded by the Court
    The Waterkeeper court also remanded other aspects of the CAFO rule 
to EPA ``for further clarification and analysis,'' as follows:
(a) Water Quality-Based Effluent Limits
    The court agreed with EPA that agricultural stormwater is excluded 
from the meaning of the term ``point source'' and therefore is not 
subject to water quality-based effluent limitations in permits. 
However, the court directed EPA to ``clarify the statutory and 
evidentiary basis for failing to promulgate water quality-based 
effluent limitations for discharges other than agricultural stormwater 
discharges as that term is defined in 40 CFR 122.23(e),'' and to 
``clarify whether States may develop water quality-based effluent 
limitations on their own.''
(b) New Source Performance Standards--100-Year Storm Standard
    The 2003 CAFO rule set the new source performance standards (NSPS) 
for swine, poultry, and veal CAFOs at a level of zero discharge. A CAFO 
in these categories could fulfill this requirement by showing that 
either (1) its production area was designed to contain all manure, 
litter, process wastewater, and precipitation from the 100-year, 24-
hour storm, or (2) it would comply with ``voluntary superior 
environmental performance standards'' based on innovative technologies, 
under which a discharge from the production area would be allowed if it 
was accompanied by an equivalent or greater reduction in the quantity 
of pollutants released to other media (e.g., air emissions). The court 
found that EPA had neither justified in the record nor provided an 
adequate opportunity for public comment with respect to either of these 
provisions. As a result, the court remanded these provisions to EPA to 
clarify, via a process that adequately involves the public, the 
statutory and evidentiary basis for them.
(c) BCT Effluent Guidelines for Pathogens
    The court held that the 2003 CAFO rule violated the CWA because EPA 
had not made an affirmative finding that the BCT-based Effluent 
Limitations Guidelines (ELGs)--i.e., the ``best conventional 
technology'' guidelines for conventional pollutants such as fecal 
coliform--do in fact represent BCT technology. The court remanded this 
issue to EPA to make such a finding based on the BAT/BPT technologies 
EPA studied or to establish specific BCT limitations for pathogens 
based on some other technology.

D. What Requirements Still Apply to CAFOs?

    The Waterkeeper decision either upheld or did not address most 
provisions of the 2003 CAFO rule. This section describes certain key 
portions of the rule that were not challenged in Waterkeeper. These 
unchallenged provisions are not addressed in or affected by today's 
proposal, except to provide background information. EPA has not 
reconsidered its initial decision regarding these provisions and is not 
soliciting comment on them.
    The definitions provided in 40 CFR 122.23(b) of the 2003 CAFO rule 
remain in effect and are unchanged. First, an operation must be defined 
as an animal feeding operation (AFO) before it can be defined as a 
concentrated animal feeding operation (CAFO). 40 CFR 122.23. The term 
``animal feeding operation'' is defined by EPA regulation as a ``lot or 
facility'' where animals ``have been, are or will be stabled or 
confined and fed or maintained for a total of 45 days or more in any 12 
month period and crops, vegetation, forage growth, or post harvest 
residues are not sustained in the normal growing season over any 
portion of the lot or facility.''
    Whether an AFO is a CAFO depends primarily on the number of animals 
confined, which is also unchanged. Large CAFOs are AFOs that confine 
more than the threshold number of animals detailed in 40 CFR 
122.23(b)(4). Medium CAFOs confine fewer animals than Large CAFOs and 
also: (1) Discharge pollutants into waters of the U.S. through a man-
made ditch, flushing system, or other similar man-made device; or (2) 
discharge pollutants directly into waters of the U.S. which originate 
outside of and pass over, across, or through the facility or otherwise 
come into direct contact with the confined animals. 40 CFR 
122.23(b)(6)(ii). The NPDES permitting authority also may, on a case-
by-case basis, designate any AFO, including small AFOs, as a CAFO after 
conducting an on-site inspection and finding that the facility ``is a 
significant contributor of pollutants to waters of the United States.'' 
40 CFR 122.23(c). The permitting authority may not exercise its 
authority to designate a Small CAFO unless pollutants are discharged 
into waters of the U.S. through a man-made ditch, flushing system, or 
other similar man-made device, or are discharged directly into waters 
of the U.S. which originate outside of the facility and pass over, 
across, or through the facility or otherwise come into direct contact 
with the animals confined in the operation. 40 CFR 122.23(c)(3).
    Although the Waterkeeper decision invalidated the duty to apply 
provision promulgated in the CAFO regulations at 40 CFR 122.23(d), 
there remains in the NPDES regulations a different duty to apply 
provision, at 40 CFR 122.21(a), that applies to point sources in 
general, including CAFOs. While the CAFO provision in Sec.  122.23(d) 
would have required all CAFOs to apply for a permit, Sec.  122.21(a) 
requires only a person who ``discharges or proposes to discharge 
pollutants'' to apply. The Waterkeeper decision did not invalidate 
Sec.  122.21(a), nor is this provision's continued application to CAFOs 
inconsistent with the decision in Waterkeeper. Therefore, under Sec.  
122.21(a), CAFOs currently are

[[Page 37748]]

required to apply for an NPDES permit if they discharge or propose to 
discharge pollutants other than agricultural stormwater, which is not a 
point source discharge.
    It should also be noted that the definitions of both ``Medium 
CAFO'' and ``Small CAFO'' in the regulations include only those 
facilities that have an actual discharge. Thus, under Sec.  122.21(a), 
all Medium and Small CAFOs must apply for a permit.
    Nutrient management planning requirements for permitted CAFOs 
established in the 2003 CAFO rule also were unaffected by the court's 
ruling. All permitted CAFOs must develop and implement an NMP that 
meets the requirements of 40 CFR 122.42(e) and, for Large CAFOs subject 
to 40 CFR Part 412, subpart C or D, 40 CFR 412.4. The NMP identifies 
the necessary actions to ensure that runoff is eliminated or minimized 
through proper and effective manure, litter, and wastewater management, 
including compliance with the ELGs. Permitted CAFOs must comply with 
all applicable recordkeeping and reporting requirements, including 
those specified in 40 CFR 122.42(e).
    ELG requirements for existing Large CAFOs also are unaffected by 
the court decision, with the exception of changes to the NMP compliance 
dates and BCT. ELG requirements ensure the appropriate storage of 
manure, litter, and process wastewater and proper land application 
practices. They vary depending upon the types of animals confined: 
Subpart A for horses and sheep; Subpart B for ducks; Subpart C for 
dairy cattle, heifers, steers, and bulls; and Subpart D for swine, 
poultry, and veal calves. (40 CFR Part 412). Additionally, New Source 
requirements for beef and dairy operations remain unchanged (40 CFR 
412.35).
    Permitted small and medium CAFOs are not subject to the ELGs 
specified in part 412. Rather, they must comply with technology-based 
requirements developed by the permitting authority on a case-by-case 
basis (i.e., Best Professional Judgment (BPJ)).

E. Status of EPA's Response to the Waterkeeper Decision

    In addition to the changes made through this proposed rule, EPA 
extended certain deadlines in the NPDES permitting requirements and 
ELGs in a separate rulemaking in order to allow the Agency adequate 
time to complete this rulemaking in response to the Waterkeeper 
decision in advance of those deadlines. (71 FR 6978). That rule revised 
dates established in the 2003 CAFO rule by which facilities newly 
defined as CAFOs were required to seek permit coverage and by which all 
CAFOs were required to have nutrient management plans developed and 
implemented. EPA extended the date by which operations defined as CAFOs 
as of April 14, 2003, who were not defined as CAFOs prior to that date, 
must seek NPDES permit coverage, from February 13, 2006, to July 31, 
2007. EPA also amended the date by which operations that become defined 
as CAFOs after April 14, 2003, due to operational changes that would 
not have made them a CAFO prior to April 14, 2003, and that are not new 
sources, must seek NPDES permit coverage, from April 13, 2006, to July 
31, 2007. Finally, EPA extended the deadline by which CAFOs are 
required to develop and implement nutrient management plans, from 
December 31, 2006, to July 31, 2007. That rulemaking revised all 
references to the date by which NMPs must be developed and implemented 
as specified in the 2003 CAFO rule.

III. This Proposal

    This proposed rule is in response to the Second Circuit Court's 
vacature and remand orders. EPA intends to make only those changes 
necessary to address the court's decision.

A. Duty To Apply for a Permit

1. Provisions in the 2003 CAFO Rule
(a) Duty To Apply
    The 2003 CAFO rule required all CAFOs to seek coverage under an 
NPDES permit unless the Director determined that the CAFO has no 
potential to discharge. The breadth of this duty to apply was based on 
EPA's presumption that most CAFOs have a potential to discharge 
pollutants into waters of the United States. Therefore, all CAFOs were 
required to apply for a permit, except where the Director determined a 
CAFO had no potential to discharge.
(b) ``No Potential To Discharge'' Determination
    The 2003 CAFO rule included a process for CAFOs to seek a ``no 
potential to discharge'' determination by the Director. Where the 
Director determined, based on information supplied by the CAFO 
operator, that a CAFO had no potential to discharge manure, litter, or 
process wastewater, the CAFO operator had no duty to apply for a 
permit, unless circumstances at the facility changed such that the 
facility would have the potential to discharge. Examples of facilities 
that possibly would have qualified for this exemption included 
facilities in very arid areas, facilities that are downslope from 
waters of the United States, and facilities with completely enclosed 
operations.
2. Summary of the Second Circuit Court Decision
    The Second Circuit Court of Appeals vacated the provision that 
required all CAFO owners or operators to apply for an NPDES permit. The 
court held that the Clean Water Act authorizes EPA to require permits 
for the actual discharge of pollutants, but not for mere potential 
discharges. Because the 2003 CAFO rule imposed an obligation on all 
CAFOs to either apply for an NPDES permit or affirmatively demonstrate 
that they have no potential to discharge, the court ruled that it 
exceeded EPA's authority under the Clean Water Act.
3. This Proposal
    To address the court's decision on the duty to apply, EPA is 
proposing changes to the 2003 CAFO rule in two areas:
     Revising the requirement that all CAFOs apply for an NPDES 
permit; and
     Eliminating the procedures for a no potential to discharge 
determination.

    EPA also seeks to clarify how unpermitted CAFOs may meet the 
agricultural stormwater exemption when they land apply manure, litter, 
or process wastewater.
(a) Requirement That All CAFOs With a Discharge Seek Permit Coverage
    EPA is proposing to delete the ``duty to apply'' requirement 
adopted in the 2003 rule, which states that all CAFO owners or 
operators must seek coverage under an NPDES permit (40 CFR 122.21(a)(1) 
and 40 CFR 122.23(a) and (d)(1)).
    Today's proposed rule would replace the ``duty to apply'' 
requirement of the 2003 rule with a requirement that all CAFOs that 
``discharge or propose to discharge'' must seek coverage under an NPDES 
permit. This proposed change would address the Waterkeeper court's 
ruling and would hold CAFO owners and operators to the same ``duty to 
apply'' requirement as already exists for point sources under 40 CFR 
122.21(a)(1).
    The result of this proposed revision is that only owners and 
operators of those CAFOs that discharge or propose to discharge would 
be required to seek coverage under an NPDES permit. This revised duty 
to apply applies to all owners and operators that discharge or propose 
to discharge, regardless of the volume or duration of the discharge 
except for discharges of agricultural stormwater (see below). A 
facility may seek permit coverage in one of two

[[Page 37749]]

ways, by submitting an application for an individual permit or by 
submitting a notice of intent to be covered by a general permit that 
has been issued by the permitting authority. Generally, under this 
proposal, it would be the CAFO's responsibility to decide whether or 
not to seek permit coverage based on whether they discharge or propose 
to discharge. This is how the NPDES program operates for other point 
sources. Any CAFO that discharged or proposed to discharge and failed 
to obtain an NPDES permit would be in violation of the NPDES regulatory 
requirement to seek coverage under an NPDES permit. A facility with an 
actual discharge would also be in violation of the CWA prohibition 
against discharging without an NPDES permit (33 U.S.C. 1311(a)).
    Any discharge from a CAFO, even one that is unplanned or 
accidental, is illegal unless it is authorized by the terms of a 
permit. Many CAFOs have conditions that may result in a discharge. For 
example, manure structures that are improperly designed or, for other 
reasons, have insufficient capacity (e.g., due to facility expansion) 
may discharge. In addition, discharges can occur from a properly 
designed containment structure that is improperly operated and 
maintained or as a result of precipitation that exceeds the operating 
capacity of the structure. In the absence of an actual discharge or 
proposed discharge, CAFOs with such conditions are not required under 
the terms of today's proposed rule to obtain an NPDES permit. However, 
the owner or operator of a CAFO that fails to obtain an NPDES permit 
and has a discharge is subject to State or federal enforcement, as well 
as liability from citizen suits under CWA Section 505(a).
    Because discharges are prohibited from unpermitted CAFOs, NPDES 
permit coverage reduces CAFO operator risk and provides certainty to 
CAFO operators regarding activities and actions that are necessary to 
comply with the Clean Water Act. Compliance with the permit is deemed 
compliance with the CWA and thus acts as a shield against EPA 
enforcement or citizen suits under CWA Section 402(k). Furthermore, 
under the 2003 rule, most CAFO NPDES permits will incorporate ELG 
provisions that allow for discharge when precipitation causes an 
overflow from a structure that is properly designed, constructed, 
operated, and maintained, in accordance with the applicable design 
standards. Finally, upset provisions can protect permittees from legal 
liability when emergencies or natural disasters cause discharges beyond 
the permittee's reasonable control, as provided in Sec.  122.41(n). 
This protection is not available to unpermitted CAFOs.
    There are many factors a CAFO owner or operator should consider in 
determining whether to seek permit coverage. For example, if the CAFO 
is in a flood plain, subject to high annual precipitation, or subject 
to lengthy rainy seasons, it is likely to have a discharge if the CAFO 
drains to a water of the United States. Other factors likely to result 
in a discharge include runoff from open feed bunkers, field storage, or 
other stockpiles exposed to precipitation; lagoons that are not 
sufficiently pumped down for the upcoming winter season; holding of 
process wastewater for summer irrigation that precludes adequate 
capacity for chronic rainfalls; and inadequate containment due to 
unavailability of land for manure, litter, or process wastewater 
application due to timing constraints associated with, for example, 
saturated ground or imminent rain. In addition, a discharge may occur 
from land application due to improper maintenance or operation of 
manure handling equipment that may lead to spills, and application of 
manure, litter or process wastewater to land in such a way that it does 
not qualify for the agricultural stormwater exemption (see below).
    EPA recognizes that some CAFOs have a higher likelihood of actually 
discharging due to certain geographic and physiographic conditions. In 
order to guide CAFOs in making a decision on whether or not to seek 
permit coverage, EPA suggests that Large CAFOs falling into one or more 
of these categories should consider seeking permit coverage (this list 
is not intended to be exhaustive):
    1. Where a CAFO is located in close proximity to waters of the 
United States with land classified in USDA Land Use Capability Classes 
III through VIII \2\;
---------------------------------------------------------------------------

    \2\ Land capability classification is a system of grouping soils 
primarily on the basis of their capability to produce common 
cultivated crops and pasture plants without deteriorating over a 
long period of time. Soil survey map units contained in United 
States Department of Agriculture (USDA) soil surveys typically are 
assigned a land capability classification. The eight classes are 
defined as follows: Class 1 soils have slight limitations that 
restrict their use; Class 2 soils have moderate limitations that 
reduce the choice of plants or require moderate conservation 
practices; Class 3 soils have severe limitations that reduce the 
choice of plants or require special conservation practices, or both; 
Class 4 soils have very severe limitations that restrict the choice 
of plants or require very careful management, or both; Class 5 soils 
have little or no hazard of erosion but have other limitations, 
impractical to remove, that limit their use mainly to pasture, 
range, forestland, or wildlife food and cover; Class 6 soils have 
severe limitations that make them generally unsuited to cultivation 
and that limit their use mainly to pasture, range, forestland, or 
wildlife food and cover; Class 7 soils have very severe limitations 
that make them unsuited to cultivation and that restrict their use 
mainly to grazing, forestland, or wildlife; and Class 8 soils and 
miscellaneous areas (areas dominated by disturbed soil) have 
limitations that preclude their use for plant production and limit 
their use to recreation, wildlife, or water supply or for esthetic 
purposes.
---------------------------------------------------------------------------

    2. Where the CAFO's production area is not designed and operated 
for zero discharge, including where the containment structure is not 
designed or maintained to contain all manure, litter, process 
wastewater, precipitation and runoff that may accumulate during periods 
when the facility is unable to land apply in accordance with a nutrient 
management plan;
    3. Where a CAFO that land applies does not have or is not 
implementing nutrient management planning that is designed to ensure 
that any land application runoff qualifies for the agricultural 
stormwater exemption; and
    4. Where the CAFO has had a discharge in the past and has not 
corrected the factors that caused the discharge to occur.
    EPA seeks comment on the completeness and accuracy of the above 
list of situations where a discharge may occur to further assist CAFOs 
in their decisions regarding whether or not to seek permit coverage.
    EPA also solicits comment on its proposal to replace the duty to 
apply provision promulgated in the 2003 CAFO rule with the narrower 
duty to apply provision described above.
(b) ``No Potential to Discharge'' Determination
    EPA is proposing to delete the regulatory provisions adopted in the 
2003 CAFO rule allowing CAFOs to demonstrate that they have no 
potential to discharge and authorizing the Director to make such a 
determination. 40 CFR 122.23(d)(2) and 122.23(f). Such a designation 
would be irrelevant because the proposed rule requires only those CAFOs 
that discharge or propose to discharge to seek coverage under a permit.
(c) Agricultural Storm Water
    The discharge of manure, litter, or process wastewater from a land 
application area under the control of a CAFO is a discharge subject to 
NPDES permit requirements, unless the discharge is agricultural 
stormwater, which is excluded from the meaning of the term ``point 
source'' under 33 U.S.C. 1362(14).
    As described in the preamble to the 2003 rule, EPA recognized that 
manure, litter, or process wastewater applied in accordance with 
practices designed to

[[Page 37750]]

ensure appropriate agricultural utilization of nutrients fulfills an 
important agricultural purpose, namely the fertilization of crops, 
while reducing the potential for a subsequent discharge of pollutants 
to waters of the U.S. However, EPA also recognized that some runoff may 
occur during rainfall events even when a CAFO applies manure, litter, 
or process wastewater in accordance with practices designed to ensure 
appropriate agricultural utilization of nutrients. EPA believed that 
the potential for runoff and water quality impairments would be 
minimized where a CAFO implemented a site-specific NMP in conformance 
with 40 CFR 122.42(e)(1)(vi)-(ix) and, for Large CAFOs, the additional 
management practices required in 40 CFR 412.4(c).
    In the 2003 rule, EPA promulgated a definition of agricultural 
stormwater that included compliance with 40 CFR 122.42(e)(1)(vi-ix). 
The referenced regulatory text includes requirements for edge-of-field 
buffers, testing of manure and soil, land application at agronomic 
rates, and record keeping. While not explicitly included in the 
definition, Large CAFOs were also required under the effluent 
guidelines to comply with technical standards established by the 
Director, in accordance with 40 CFR 412.4(c). These more specific 
limitations implemented the general requirements at 40 CFR 
122.42(e)(1)(vi-ix), and because all CAFOs with a potential to 
discharge were required to obtain permits, virtually all Large CAFOs 
were required to comply with them.
    Under today's proposed rulemaking, Large CAFOs that have only 
agricultural stormwater discharges from their land application area, 
and no other discharges or proposed discharges from their production or 
land application areas, would no longer be required to seek permit 
coverage. (See 40 CFR 122.23(e).) However, precipitation-related 
discharges from CAFO land application areas would be considered 
agricultural stormwater only where the CAFO land applies in accordance 
with nutrient management practices that meet the requirements of 40 CFR 
122.42(e)(1)(vi)-(ix). EPA believes that, in order for the owner or 
operator of a CAFO to qualify for the statutory agricultural stormwater 
exemption, manure, litter, and process wastewater must be applied in 
compliance with technical standards that are, in significant part, 
intended to ensure the appropriate agricultural utilization of the 
nutrients contained in the manure, litter, and process wastewater.
    The Second Circuit upheld EPA's definition of agricultural 
stormwater, and EPA is not proposing to change the definition at this 
time, or requesting comment on such a change. However, EPA is 
considering requiring explicitly that Large CAFOs that are not 
permitted because they do not discharge or propose to discharge comply 
with the technical standards for land application established by the 
Director (in addition to meeting the requirements of 40 CFR 
122.42(e)(1)(vi-ix)) in order for runoff from their fields to be 
considered agricultural stormwater (which is exempt from permitting 
requirements). Even if EPA does not adopt this requirement explicitly, 
EPA believes that unpermitted Large CAFOs should incorporate the 
technical standards established by the Director into their NMPs. EPA 
also recommends that small or medium AFOs use nutrient management 
practices consistent with 40 CFR 122.42(e)(1)(vi-ix) and comply with 
the applicable technical standards in their land application of manure, 
litter, or process wastewater. EPA requests comment on this issue.
    Unpermitted CAFOs that land apply manure, litter, or process 
wastewater must document that they are land applying in accordance with 
the requirements described above in order to qualify for the statutory 
exclusion for agricultural stormwater. (See 40 CFR 122.42(e)(1)(ix).) 
The documentation required includes both the nutrient planning and the 
additional recordkeeping necessary to demonstrate that the CAFO 
properly land applied manure, litter, or process wastewater in 
accordance with 40 CFR 122.42(e)(1)(vi)-(ix), including the technical 
standards used to translate these requirements into specific land 
application rates and practices. EPA believes that an appropriate 
approach to planning and documenting such practices is by preparing a 
comprehensive nutrient management plan in accordance with guidance 
provided by USDA and the appropriate technical standards. Whatever form 
the documentation takes, it must be maintained on site. This 
documentation is crucial in determining whether the CAFO is land 
applying manure, litter, or process wastewater in a manner that ensures 
the appropriate agricultural utilization of nutrients and, as a result, 
is not illegally discharging pollutants from land application areas.

B. Nutrient Management Plans

1. Provisions in the 2003 CAFO Rule Affected by the Court Decision
(a) Requirement to Develop and Implement a Nutrient Management Plan
    Under the 2003 CAFO rule, NPDES permits for all CAFOs must include 
a requirement for the permittee to develop and implement a nutrient 
management plan. At a minimum, the NMP must include BMPs and procedures 
necessary to achieve effluent limitations and standards. The plan must, 
to the extent applicable, include the minimum elements established at 
40 CFR 122.42(e)(1)(i)-(ix). For Large CAFOs in the cattle, swine, 
poultry, and veal subcategories, the NMP must also meet the more 
detailed requirements in the Part 412 effluent limitations guidelines. 
For Small and Medium CAFOs, or other operations not otherwise subject 
to Part 412 requirements for land application, the required elements of 
a nutrient management plan would be further specified in the permit 
based on the best professional judgment (BPJ) of the permitting 
authority. The Second Circuit's decision did not affect these 
provisions and EPA is not revisiting them or soliciting comments.
(b) Due Dates for Developing and Implementing Nutrient Management Plans
    The 2003 CAFO rule required all CAFOs to develop and implement an 
NMP by December 31, 2006, except that CAFOs seeking to obtain coverage 
under a permit subsequent to that date were required to have an NMP 
developed and implemented upon the date of permit coverage. This timing 
was consistent with the dates for the implementation of the ELG, which 
required existing Large CAFOs to implement the land application 
requirements at 40 CFR 412.4(c) by December 31, 2006. (Following the 
court decision these dates were extended to July 31, 2007, to give EPA 
time to complete the current rulemaking (see Section II.E).)
    As discussed in the preamble to the 2003 CAFO rule, EPA believed 
that these dates were reasonable given that operations would have had 
three and a half years from the time the 2003 rule was issued to 
conduct the necessary planning and construction to implement an NMP. 
For Large CAFOs that are new sources (i.e., those commencing 
construction after the effective date of the 2003 CAFO rule), the land 
application requirements at 40 CFR 412.4(c) apply immediately.
    EPA concluded that this timeframe also allowed States to update 
their

[[Page 37751]]

NPDES programs and issue permits to reflect the NMP requirements of the 
2003 CAFO rule and provided flexibility for permit authorities to 
establish permit schedules based on specific circumstances, including 
prioritization of nutrient management plan development and 
implementation based on site-specific water quality risks and the 
availability of technical expertise for development of NMPs.
2. Summary of the Second Circuit Court of Appeals Decision on Nutrient 
Management Plans
    As previously discussed, the Second Circuit Court of Appeals found 
that the terms of the NMPs were effluent limitations and vacated the 
2003 CAFO rule insofar as the rule allowed permitting authorities to 
issue NPDES permits to CAFOs without: reviewing the terms of the 
nutrient management plans, providing for adequate public participation 
in the development, revision, and enforcement of the nutrient 
management plans, and including the terms of the nutrient management 
plan in the permit.
    The decision did not affect the required contents of nutrient 
management plans established at 40 CFR 122.42(e)(1) and 40 CFR 
412.4(c)(1) in the 2003 CAFO rule.
    The Second Circuit court decision did not vacate any NPDES permits 
issued pursuant to the 2003 CAFO rule. Therefore, such permits already 
issued to CAFOs by States or EPA prior to June 27, 2005 (the effective 
date of the court's decision), are not directly affected by the court 
decision and the nutrient management plan requirements in those permits 
remain in effect until and unless the permits are modified, revoked and 
reissued, or terminated in accordance with State regulations.
3. This Proposal
    To address the court's decision, EPA is proposing regulatory 
revisions to the 2003 CAFO rule and other provisions of the NPDES 
regulations to provide for:
     Receipt and review of the nutrient management plan by the 
permitting authority prior to issuing an individual permit or granting 
coverage under a general permit;
     Procedures to provide opportunity for adequate public 
participation prior to issuing an individual permit or granting 
coverage under a general permit; and
     Incorporation of the terms of the nutrient management plan 
into the NPDES permit.
    In proposing these revisions, EPA has devoted particular attention 
to the process for issuance of general permits, because most CAFOs are 
expected to be covered by general permits and, for those that will be 
permitted under individual permits, the individual permitting process 
already allows for review of NMPs by the permitting authority, public 
review of an NMP as part of the individual permit application process, 
and incorporation of the terms of the NMP into the individual permit 
consistent with the CWA. Further, EPA proposes a process to address 
changes to the NMP once permit coverage is granted, for both individual 
and general permits. To effectuate these changes, EPA is proposing 
regulatory revisions to 40 CFR 122.21, 122.23, 122.28, 122.42, 122.62, 
and 122.63. In addition, in a separate rulemaking EPA extended the 
deadlines set in the 2003 CAFO rule for NMP development and 
implementation, as well as for newly defined CAFOs to seek permit 
coverage. (71 FR 6978.)
    The preamble discussion that follows is divided into six sections 
to separately address each of the following issues:
     CAFO permit application and notice of intent requirements;
     Procedures for permitting authority review;
     Procedures for public review and comment;
     Incorporation of nutrient management plan terms in NPDES 
permits;
     Changes to nutrient management plans; and
     Required dates to seek coverage under a permit and submit 
an NMP.
(a) CAFO Permit Application or Notice of Intent Requirements for 
Nutrient Management Plans
    In order to satisfy the court's requirements that the terms of a 
nutrient management plan must be publicly reviewed and incorporated 
into the permit, EPA is proposing to revise 40 CFR 122.21(i)(1)(x) to 
require the applicant to submit, as part of its permit application or 
notice of intent (NOI), a nutrient management plan developed in 
accordance with the provisions of 40 CFR 122.42(e)(1) and 40 CFR 
412.4(c)(1), as applicable. Although this proposed change would be 
codified in the section of the regulations applicable to individual 
permit applications (40 CFR 122.21(i)(1)), it would also apply to 
notices of intent to be covered by a general permit, because 40 CFR 
122.28(b)(2)(ii), the regulation governing notices of intent for 
general permits, incorporates the requirements of 40 CFR 122.21(i)(1) 
by reference. EPA Application Form 2B will also be revised to reflect 
these changes. The revised form is provided as Appendix A to this 
notice.
    This approach is consistent with the decision of the Second Circuit 
Court of Appeals, which left undisturbed the basic substantive 
requirements for nutrient management plans in the 2003 CAFO rule. The 
proposed revisions would not change the required contents of the NMP, 
but would now require CAFOs to submit the plan with the application or 
the notice of intent rather than only at the request of the Director. 
The permitting authority would then make the nutrient management plan 
available for review prior to developing an individual permit or 
providing coverage under an NPDES general permit.
(b) Procedures for Permitting Authority Review
    Once the permitting authority receives an application or an NOI 
from a CAFO seeking permit coverage, it would be the responsibility of 
the permitting authority to review the application or NOI to ensure 
that the nutrient management plan meets the requirements of 40 CFR 
122.42(e)(1) and, for Large CAFOs, the applicable requirements of 40 
CFR 412.4(c). As part of that process, the Director would review the 
NMP for completeness and sufficiency. EPA believes that this review 
process responds to the Waterkeeper decision by providing for 
permitting authority review of the NMP.
    For individual permits, the NMP would be submitted and reviewed as 
part of the permit application. The decision-making procedures in 40 
CFR Part 124 continue to apply to the Director's review of the 
application, which now would include the NMP. Part 124 requires review 
of the completeness and sufficiency of the permit, includes an 
opportunity for the CAFO to modify the plan or provide additional 
information to the permitting authority, and provides for a final 
decision by the Director after an opportunity for public comment and a 
public hearing.
    While the review process for NMPs in individual permits is already 
established in existing NPDES regulations, there are gaps in the 
requirements for general permitting of CAFOs that EPA proposes to fill 
in order to address the Second Circuit Court decision. Specifically, 
EPA is proposing new regulatory provisions to establish permitting 
authority review of NMPs for CAFO general permits. These procedures are 
in the proposed new Paragraph (d) to be added to 40 CFR 122.28.
    Proposed 40 CFR 122.28(d) would require the Director to review the 
NMP submitted with the NOI and to take

[[Page 37752]]

appropriate steps to ensure that the NMP meets the requirements of the 
regulations. If upon review the permitting authority determines that 
additional information is necessary to complete the notice of intent or 
clarify, modify, or supplement previously submitted material, the 
Director would notify the CAFO owner or operator and request the 
appropriate information be provided. When the NOI is complete the 
permitting authority would notify the public of its receipt and of the 
terms of the nutrient management plan proposed to be incorporated into 
the existing general permit as terms and conditions applicable to that 
CAFO. Following an opportunity for public comment and public hearing, 
the permitting authority would decide whether to authorize coverage 
under the general permit and incorporate the terms of the NMP into the 
general permit for that CAFO.
    EPA is considering the use of a template which could be used as a 
voluntary tool to facilitate completion of the NMP by CAFO applicants, 
as well as to facilitate review by the permitting authority. Such a 
template would help to systematically organize the information 
necessary to satisfy the NMP requirements in the regulation. The 
template could, for example, be used as a form, that when completed by 
the operator, and approved by the permitting authority, could suffice 
as the NMP itself. Alternatively, it could also be used as a checklist 
that the operator and/or permitting authority could use to organize the 
information in the NMP and to assist in assessing its adequacy (see 
Section III.B.3.d, below). It would be up to the permitting authority's 
discretion as to how to incorporate the terms of the NMP into the 
permit and permitting authorities might need to tailor any template to 
their permit process and technical requirements, including the 
technical standards established by the Director.
    EPA has developed a draft template for public review that is 
intended to be user friendly. It follows the requirements for an NMP 
identified in 40 CFR 122.42(e) relating to: manure storage; management 
of animal mortalities; diversion of clean water; prevention of direct 
contact of animals with waters of the US; chemical handling; site-
specific conservation practices; protocols for testing manure, litter, 
process wastewater and soil; protocols for land application; and 
recordkeeping. This draft template is in the public record for this 
rulemaking at http://www.regulations.gov under docket  EPA-HQ-OW-

2005-0037 and is also available on the EPA Web site at http://www.epa.gov. EPA 

is interested in receiving feedback on the form and content of the 
template.
(c) Procedures for Public Participation Prior to Permit Coverage
    As noted above, the regulatory procedures for public participation 
in the issuance of individual permits are already established. (See 
generally, 40 CFR Part 124.) Because the NMP would be part of the 
individual permit application, it would be subject to existing 
regulations requiring public participation, including the requirement 
for public notice (40 CFR 124.10) and the opportunity for the public to 
provide comments and request a public hearing (40 CFR 124.11). Because 
of the proposed regulatory change requiring nutrient management plans 
to be submitted with the permit application (see discussion at 
II.B.3.i.; 40 CFR 122.21 and 122.28), the public would have access to 
the nutrient management plan prior to permit issuance and would also 
have full opportunity to comment on the adequacy of the plan and on the 
nutrient management terms and conditions of the draft NPDES permit 
developed for the specific CAFO facility. EPA believes that this 
process responds to the court's decision.
    The general permit issuance process differs from the individual 
permitting process discussed above in the way in which a permit is 
developed and the means by which individual facilities obtain coverage 
under the permit. A general permit is developed by the permitting 
authority to cover multiple facilities without the need to receive 
individual permit applications from facilities in advance of the 
development of the permit. Once the draft general permit is developed, 
the public (including potential future permittees) is provided the 
opportunity to review the permit, submit comments, and request a 
hearing. After considering any comments submitted, the permitting 
authority then finalizes the general permit. Once the final general 
permit is issued, facilities may submit a notice of intent (NOI) 
seeking coverage under the permit. Typically, the permitting authority 
then grants coverage, without the need for further public notice and 
comment, or requires the facility to seek coverage under an individual 
permit.
    Following the Waterkeeper decision, general permits for CAFOs must 
be modified, once issued, to include the terms of an NMP applicable to 
a specific CAFO. Moreover, Waterkeeper requires that the public have an 
opportunity to comment on the incorporation of NMP requirements into 
the permit. Thus, a second round of public notice and comment is 
necessary when providing coverage for CAFOs under a general permit. 
There is no provision in the existing regulations that explicitly 
addresses incorporation of site-specific requirements into a general 
permit when a CAFO seeks coverage or any additional public process for 
such incorporation.
    Today, in proposed 40 CFR 122.28(d), EPA proposes to establish new 
procedures applicable to the general permitting process that would 
allow the incorporation of the site-specific NMPs into CAFO general 
permits and provide an opportunity for public review of a CAFO's NOI 
(including the entire NMP) before the CAFO receives coverage under a 
general permit. The proposed procedures would also allow the public to 
review and comment on those terms of the nutrient management plan to be 
incorporated into the permit, and to request a public hearing before a 
CAFO receives coverage under a general permit. The discussion that 
follows describes the process for public participation that EPA is 
proposing. Further discussion of incorporation of the terms of the NMP 
into the general permit is provided below in section III.B.3.d of this 
preamble.
    The proposed Sec.  122.28(d) would provide specific procedures for 
public participation. The proposed rule would require that, for each 
facility submitting a completed NOI, the permitting authority must 
notify the public of the following: (1) That it has received a complete 
NOI; (2) that the permitting authority is proposing to allow coverage 
under the general permit; and (3) that the nutrient management plan is 
available for public review, along with the terms of the nutrient 
management plan proposed to be incorporated into the permit by the 
permitting authority.
    Today's proposed rule would allow the permitting authority 
discretion as to how best to provide such public notification in the 
general permit context. For example, public notification could be 
provided on the permitting authority's web page or through other 
electronic means. Another alternative would be to use the notice or 
fact sheet for the general permit to establish a procedure allowing any 
person to request notice by mail or electronically of the receipt of an 
NOI, the permitting authority's proposed action, and the terms of the 
nutrient management plan proposed to be incorporated into the permit. 
EPA believes that these are appropriate ways to balance the competing 
concerns of providing adequate notification to the public, providing 
flexibility to the permitting authority, and ensuring the practicality 
of general permits. The

[[Page 37753]]

permitting authority should describe the process to be used to give the 
public notice of and comment opportunities on site-specific NMPs in the 
draft and final general permit to ensure meaningful public 
participation. EPA solicits comment on the methodology for providing 
public notice.
    Under today's proposal, the Director would also have discretion to 
establish an appropriate period of time for public review of the NOI 
and proposed permit conditions incorporating the terms of the NMP into 
the permit. For example, the Director might establish a period of 30 
days, depending upon a variety of factors. Factors to consider might 
include the number of NOIs being publicly noticed at any one time, the 
complexity of the material made available for public review, expected 
level of public interest based on prior notices of CAFOs seeking 
coverage, the relative availability of NOIs to the public (e.g., on the 
internet), the opportunity for the public to extend the comment period 
for one or more facilities, and whether individuals can request and 
receive individual notification of CAFOs seeking coverage in a timely 
fashion. Because this proposal would not mandate a 30-day public notice 
period as currently required in 40 CFR 124.10, EPA would require that 
the Director establish a time frame for public review by regulation or 
propose the time frame for public notice in the draft general permit 
and include it as a provision in the final permit. This would allow the 
public and other interested parties an opportunity to comment on the 
sufficiency of the time allotted for public notice. EPA solicits 
comment on this approach, as well as on fixed minimum time frames for 
public review, such as 7 days, 15 days, 21 days, and 30 days.
    The Director would also have to provide an opportunity for the 
public to request a hearing. EPA further proposes that the procedures 
for requesting and holding a hearing on the terms of the NMP to be 
incorporated into the general permit would be the same as those for 
draft individual permits, which are provided in Sec. Sec.  124.11 
through 124.13. When granting permit coverage, the permitting authority 
would be required to respond to all significant public comments.
    EPA believes that the proposed processes will provide adequate 
notice to affected States. CWA section 402(b)(3) provides that the 
Administrator, in approving State programs, shall make sure adequate 
authority exists to ensure notice to ``any other State the waters of 
which may be affected'' and Section 402(b)(5) provides that the 
Administrator must insure that any State ``whose waters may be affected 
by the issuance of a permit may submit written recommendations to the 
permitting State'' and that if those recommendations are rejected that 
the permitting State notify the affected State in writing of the 
reasons for the rejection. Although today's proposal does not include 
provisions specifically intended to address these requirements, EPA 
believes that the public notice provisions are sufficient to notify 
affected States. Additionally, the permitting authority's response to 
all significant comments would include responses to comments from 
affected States. EPA solicits comment from States and other interested 
parties as to whether this approach is adequate or whether there are 
specific requirements for review by affected States that should be 
added to this proposal.
    The proposed rule seeks to balance several competing concerns in 
crafting the public participation procedures for general permitting of 
CAFOs. First, EPA believes that the proposed rule would maintain the 
utility of a general permit program as a resource-efficient method by 
which to authorize multiple dischargers under an NPDES permit while 
meeting the court's directive to ``provide for adequate public 
participation'' in the development of site-specific effluent 
limitations. Waterkeeper Alliance et al. v. EPA, 399 F.3d at 524. 
Second, EPA believes the proposed rule would provide sufficient 
flexibility for State permitting authorities to adopt their own 
procedures while ensuring they meet the public participation 
requirements of the Clean Water Act. EPA is attempting to implement the 
Second Circuit decision in a way that would not have the effect of 
eliminating the use of general permits for CAFOs. Because of the large 
number of CAFOs that may seek permit coverage, the Agency considers it 
appropriate to develop procedures that would allow and encourage 
permitting authorities to continue the use of NPDES general permits as 
a means for applying Clean Water Act limitations and standards to CAFOs 
on a timely basis. Of course, the Director may always require a 
facility to apply for an individual permit instead of allowing coverage 
under a general permit (even after coverage under a general permit has 
been granted) under already existing regulations.
    EPA seeks comment on the approach taken in today's proposal 
concerning public participation in the general permitting process. 
Specifically, the Agency is interested in comment as to whether the 
procedures strike an appropriate balance between the above mentioned 
competing concerns.
(d) Incorporation of Nutrient Management Plan Terms in NPDES Permits
    EPA is proposing to modify the language of 40 CFR 122.42(e)(1) to 
require that any individual or general permit issued to a CAFO contain 
the terms of the NMP. In the 2003 CAFO rule, the Agency finalized 
regulations that required each CAFO permit to include requirements to 
develop and implement a nutrient management plan that met the 
conditions specified in 40 CFR 122.42(e)(1)(i)-(ix) and, for Large 
CAFOs, that also fulfilled the requirements of 40 CFR 412.4(c). The 
Second Circuit decision did not affect these requirements and EPA is 
not revisiting its decision with respect to the contents of the 
nutrient management plan. The NMP must continue to include the elements 
in 40 CFR 122.42(e)(1)(i) through (x) and the elements required by the 
effluent limitation guideline at 40 CFR 412.4(c), where applicable. 
However, the proposal would ensure that the terms of the NMP become 
terms and conditions of the permit, as required by the Second Circuit.
    The Waterkeeper decision requires the permitting authority to 
include the terms of a CAFO's nutrient management plan in the NPDES 
permit issued to the CAFO. The court's opinion appeared to distinguish 
between the ``nutrient management plan,'' which must be submitted by 
the CAFO to the permitting authority for review (as discussed above), 
and the ``terms'' of the nutrient management plan, which must be 
incorporated into the permit following the public review process 
described above. In light of the court's opinion, EPA is proposing to 
require the permitting authority to incorporate the terms of the NMP 
into the permit as enforceable terms and conditions of the permit. At a 
minimum, the terms of the NMP must meet the requirements specified in 
40 CFR 122.42(e)(1)(i)-(ix) and 412.4(c) (for Large CAFOs, as 
applicable). Thus, the terms of the NMP would need to ensure, for 
example, adequate storage of manure, litter, and process wastewater, 
proper management of mortalities, and diversion of clean water. The 
terms of the NMP would identify site-specific conservation practices to 
be implemented by the CAFO and establish site-specific requirements for 
proper land application of manure, litter, and process wastewater, 
including application rates.

[[Page 37754]]

    EPA expects that a submitted NMP, as a whole, will include data, 
calculations, and other information that provide a basis for the terms 
of the NMP and any other planning decisions encompassed in an NMP. The 
data, calculations, and additional information are generally analogous 
to both the information contained in a permit application and the 
assumptions, calculations, and other determinations typically provided 
as part of the fact sheet that is prepared for every draft NPDES 
permit. On the other hand, the terms of the NMP are the sort of 
requirements normally found as terms and conditions in a permit. In 
other words, whereas a fact sheet (or, in this case, the supplemental 
information provided in the NMP) contains the information that forms 
the basis of the requirements included in a permit, the permit itself 
contains the actual requirements applicable to the permitted facility. 
A complete NMP contains both the requirements applicable to the 
facility (``the terms of the NMP'') and the background information 
(assumptions, data, calculations, etc.) which provide the basis for 
those requirements.
    This relationship is well illustrated when considering rates of 
application for land applying manure, which, for Large CAFOs, must be 
developed consistent with technical standards for nutrient management 
established by the Director in accordance with 40 CFR 123.36. These 
technical standards typically require application rates to be 
calculated using the Phosphorous Index or its equivalent established by 
the State. The calculations in turn are derived from data from fields 
where land application is to occur and predictions for nutrient 
utilization based upon crops to be planted in those fields. In 
preparing an NMP, a CAFO would include both the data necessary to 
determine the application rates in accordance with the applicable 
technical standards and the calculations it used to determine those 
rates.
    EPA believes that it is appropriate to allow the permitting 
authority discretion as to how to incorporate the terms of an NMP that 
meets the regulatory requirements of 40 CFR 122.42(e) and 412.4 into 
the permit. For example, the permitting authority could simply attach 
the whole NMP to the permit and require implementation of the terms of 
the NMP as a condition of the permit. Alternatively, the permitting 
authority could identify and extract the terms of the NMP from the 
larger document and incorporate only the extracted terms into the 
permit. Another possibility is that the software used by some nutrient 
management planners to develop NMPs could be modified to generate a 
separate form that would clearly identify the terms of the NMP when 
generating the whole NMP report. As mentioned above, the Agency is 
considering the use of a model or template for identification of the 
terms of the NMP. The Agency solicits comment on these various 
approaches to identify the terms of the NMP that would be included in 
the permit.
    EPA also seeks comments on a modified approach as an alternative to 
the process described above for incorporating nutrient management terms 
and conditions into general permits. It is premised on EPA's 
recognition that some NMP requirements may be broadly applicable to all 
of the CAFOs covered by a general permit. Under this approach there 
would be three possible categories of permit conditions. The first 
category would include permit conditions that can be established in the 
general permit itself so as to apply to all CAFOs seeking coverage 
under that permit. The second category would allow for flexibility in 
some broadly applicable requirements. Conditions falling into this 
category would lend themselves to a default requirement set by the 
permitting authority, with the option for facilities to substitute 
alternative measures in their NMPs that are equivalent or more 
effective in achieving the same objective. In such instances, of 
course, it would be necessary for the permitting authority to review 
the NMP submitted by each CAFO that chooses such alternative measures 
to determine whether the selected measures satisfy the relevant 
regulatory requirement(s). The third category would include those 
requirements for which a broadly applicable condition in the general 
permit would not be possible because they are of necessity facility-
specific. A prime example of this third category is the requirement for 
field-specific rates of application.
    Under this alternative approach, for the first category of 
conditions, the permitting authority would have the discretion to 
incorporate some NMP requirements into the terms and conditions of the 
general permit itself so they are applicable to all CAFOs covered by 
the permit. Examples of requirements that might lend themselves to the 
first category include, 40 CFR 122.42(e)(1)(iii) (diversion of clean 
water), (iv) (prevent contact of confined animals with waters of the 
United States), and (v) (proper disposal of chemicals), and 40 CFR 
412.37(a)(4) (mortality management)).
    During the comment period on the draft general permit, the public 
would have the opportunity to comment and request a hearing on the 
broadly applicable nutrient management terms and conditions proposed by 
the permitting authority. If after notice and comment the permitting 
authority included these conditions in the final permit, the permitting 
authority would be free to focus greater attention on those terms of a 
facility's nutrient management plan that were actually site-specific 
(i.e., those conditions in the second and third categories, described 
below, specified in the facility's NMP). Of course, the public would 
still have the opportunity to review each CAFO's nutrient management 
plan (as well as the terms of the NMP that would be included in the 
general permit) to ensure that the plan complied with all conditions of 
the general permit. EPA seeks comment on the feasibility of utilizing 
this approach under a general permit.
    For the second category of permit conditions in this modified 
approach, the permitting authority might establish broadly-applicable 
permit terms that could be implemented through specific NMP measures, 
while allowing for flexibility as previously noted. For example, the 
permitting authority could set a minimum requirement for adequate 
storage of manure (40 CFR 122.42(e)(1)(i)) by specifying the number of 
days of storage capacity for each facility type. In such an instance, a 
facility wishing to take an alternative approach would need to 
describe, for example, the alternative measures it would take that 
would justify a shorter period of storage capacity. Other broadly 
applicable requirements that so many qualifiers could lend themselves 
to site-specific alternatives might include permit conditions requiring 
conservation practices to reduce soil erosion from land application 
areas to the tolerable rate (``T'') as a standard to ensure adequate 
conservation practices, as required by 40 CFR 122.42(e)(1)(vi), or 
requiring CAFOs to address the timing of land application (40 CFR 
412.4(c)(2)(i)) in part by prohibiting surface application of manure on 
frozen or snow-covered land that is upslope from waters of the United 
States. EPA solicits comment on such an approach, the sort of measures 
that might lend themselves to such an approach, and the sort of 
alternative measures that might qualify as site-specific substitutions.
    Under this alternative methodology for establishing some terms of 
the NMP, the permitting authority would still need to identify the 
third category of facility-specific terms of the nutrient

[[Page 37755]]

management plan to be incorporated into the permit. For example, the 
permitting authority would need to identify the manure, litter, and 
process wastewater application rates in each CAFO's nutrient management 
plan on a site-specific basis and incorporate those rates as terms and 
conditions of the permit before the permitting authority could 
authorize coverage of the CAFO under the permit. The public would have 
the opportunity to review and comment and request a hearing on these 
site-specific terms and conditions, as well as on the NMP's adequacy to 
satisfy any generally applicable permit requirements, as provided by 
the procedures in today's proposal.
    EPA believes the alternative described above has the potential to 
speed the pace at which unpermitted CAFOs receive authorization under 
general permits while being consistent with the Second Circuit 
decision. In seeking comments, EPA specifically asks States to comment 
on the possible workload burden associated with the procedures proposed 
today as well as the alternative described immediately above.
    For either approach discussed above, EPA is proposing that the 
permitting authority would be required to respond to all significant 
comments received during the comment period. As necessary, the Director 
would require a CAFO owner or operator to make revisions to the CAFO's 
NMP in order to address issues raised during the review process. Once 
the Director determines that the process for the development of a 
CAFO's NMP has been completed, the Director must make a final decision 
whether to grant permit coverage to the CAFO under the general permit. 
If coverage is granted, the Director must incorporate the relevant 
terms of the NMP into the general permit and inform the CAFO owner or 
operator of the terms of the NMP that have been incorporated as permit 
conditions.
    Under today's proposal, incorporation of the terms of a particular 
CAFO's NMP into a general permit would not be a permit modification 
subject to 40 CFR 122.62. Rather, EPA views this as an extension of the 
CAFO general permitting process itself. As discussed above, EPA intends 
the process proposed in 40 CFR 122.28(d)(1) to generally parallel the 
procedures in 40 CFR Part 124. A person who objects to the 
incorporation of the terms of an individual CAFO's NMP into a general 
permit could appeal the permit decision to the Environmental Appeals 
Board pursuant to 40 CFR 124.19, when EPA is the permitting authority.
    EPA seeks comment on today's proposed process for incorporation of 
the terms of a CAFO's NMP into NPDES permits. EPA specifically seeks 
comment from States on the workload implications of requiring the 
permitting authority to respond to all significant comments on each 
individual CAFO's NOI (including the NMP) and the terms of the NMP to 
be incorporated into the permit.
    (e) Changes to Nutrient Management Plans
    When a CAFO obtains coverage under an NPDES permit, as proposed in 
today's notice, it would be the CAFO's responsibility to implement the 
terms and conditions of the nutrient management plan as incorporated 
into the permit, as of the date of permit coverage. Because 
agricultural operations sometimes modify their nutrient management and 
farming practices as a normal part of their operations, and because 
such alterations may require changes to NMPs after a permit is issued, 
EPA is proposing a permit revision process to specifically address 
these circumstances.
    The Agency does not, however, believe that such a process is 
necessary for all operating changes at a CAFO. Most routine changes at 
a facility should not require changes to the NMP itself because of the 
way NMPs are developed. Nutrient management plans are dynamic documents 
and are developed to accommodate routine variations, for example 
changes resulting from anticipated crop rotation or climatic 
variability inherent in agricultural operations, as well as changes in 
numbers of animals and volume of manure, litter or process wastewater 
resulting from normal fluctuations or a facility's planned expansion. 
Nevertheless, as discussed in the preamble to the 2003 CAFO rule, 
changes to a nutrient management plan will be necessary under some 
circumstances; for example, when there is a substantial increase in the 
number of animals, or a major change in the CAFO's cropping program not 
anticipated in the original NMP.
    EPA encourages CAFO operators to develop, at the outset, NMPs that 
thoughtfully anticipate, to the extent feasible, all contingencies and 
changes in operations that may occur over the term of the permit. The 
NMP should provide information on possible crop rotations or other 
alterations in cropping patterns with accompanying field-specific 
calculations for manure, litter, and process wastewater application 
rates based on realistic crop yield goals, soil characteristics, 
weather, and other site-specific field conditions. In this way, the 
public will have the opportunity to review all anticipated operational 
scenarios and associated field-specific manure, litter, and process 
wastewater application rates, including the calculation on which these 
rates were based. In this manner, NMPs and associated permit conditions 
can address most year-to-year changes in nutrient management practices 
during the term of the permit and greatly reduce the need for NMP and 
associated permit modifications as a range of potential operational 
scenarios will have already been accounted for.
    For example, the NMP could specify: (1) The maximum amount of 
manure that the CAFO may apply to land application areas under its 
control, based on its total available land application area and the 
capacity of its waste storage and treatment facilities, as well as 
manure and soil test results; (2) the maximum amount of manure that may 
be transferred to other persons (see Sec.  122.42(e)(3)) by the CAFO, 
given limitations on available markets, the cost of transporting 
wastes, etc.; (3) a complete inventory of all of the fields under the 
CAFO's control that might receive manure, with the associated acreage, 
soil types, soil tests and testing protocols, setbacks, and other soil 
conservation measures; (4) a list of all of the crops the CAFO may wish 
to grow on each of those fields, with a matrix of the associated 
realistic yield expectations and land application rates consistent with 
the various field conditions; and/or (5) plans to address contingencies 
(e.g., a spill or especially heavy rainfall event), including 
consultation with the permitting authority as appropriate.
    The NMP should indicate calculations necessary to determine rates 
of application for the array of crops most likely to be planted in 
accordance with the cropping system utilized by the CAFO operator, 
including likely fallback scenarios. For Large CAFOs, the land 
application rates must comply with the ELG requirements of 40 CFR 
412.4. The NMP may also identify other crops that could be planted and 
other fields that might be utilized for land application, thus allowing 
the CAFO to utilize a mix of fields and crops different from the most 
likely or preferred combinations. Nevertheless, the NMP should 
reasonably forecast the practices most likely to be utilized by the 
CAFO. EPA solicits comment on the degree of flexibility that should be 
allowed in NMPs. Greater flexibility would minimize the need for 
subsequent permit revisions, but will also increase the up-front work 
load, both for the permittee and for the

[[Page 37756]]

permitting authority, and provide the permitting authority and the 
public with less certainty as to which practices the CAFO will actually 
utilize.
    Even when a CAFO owner or operator develops an NMP that encompasses 
a significant degree of flexibility, it nevertheless may be necessary 
to revise the NMP during a CAFO's term of permit coverage. EPA believes 
that, due to the issues associated with agricultural operations and the 
variables associated with nutrient management planning, including 
seasonal variations, weather, soil and slope variation, and 
availability of feed, seed, and other resources, it is necessary to 
provide flexibility in the best management practice requirements for 
CAFOs beyond that typically available for other permit conditions. 
Consistent with this objective, EPA is proposing to establish specific 
protocols to allow changes to an NMP after permit coverage has been 
granted.
    EPA is proposing formal public notice and comment procedures that 
the permitting authority would be required to follow for permit 
modification when a CAFO is seeking to make substantial changes to its 
NMP. EPA is proposing that substantial changes would include, but are 
not limited to: (1) Changes that could result in an increase in runoff 
of manure, litter, or process wastewater from the facility; (2) an 
increase in the rate of nutrients from manure, litter, or process 
wastewater applied to the land application area that is significant in 
relation to technical standards established by the Director; (3) a 
significant change in the nutrient balance at the CAFO caused by: (i) 
An increase in the ratio of animals, manure, litter, or process 
wastewater to the available land application acreage or storage 
capacity; (ii) changes in the CAFO's procedures for handling, storage, 
treatment, or land application of manure, litter, or process 
wastewater; (iii) a significant increase in the number of animals; or 
(iv) a significant reduction of manure, litter, or process wastewater 
hauled off site when there is no equivalent decrease in the amount of 
manure, litter, or process wastewater produced; and (4) the addition of 
land application areas not previously included in the nutrient 
management plan. Specific examples of such changes would include 
changes to the method of land application from injection to surface 
application, changes in timing from spring to late fall or winter 
application, and installation of new drainage systems that would 
increase runoff from land application fields. The proposed new 
paragraph 40 CFR 122.42(e)(5)(iv) identifies what would constitute 
substantial changes to the facility's NMP that would trigger this 
process for permit revisions.
    For these types of changes, EPA is proposing to create new 
procedures in 40 CFR 122.42(e)(5) to allow CAFOs to change their 
nutrient management plans after the Director has incorporated the terms 
of the NMP into the permit. These procedures, which would be available 
to CAFOs operating under both individual and general permits, would be 
nearly identical to those for CAFOs seeking coverage in the first 
place. The Agency believes that such a process satisfies the need for 
the permitting authority and the public to have ample opportunity to 
review and comment on changes to a facility's NMP, while allowing the 
CAFO the flexibility it needs.
    In addition, there may be changes at a facility that were not 
contemplated in the currently applicable NMP that do not require 
substantial changes to the terms of the NMP in the permit. In these 
instances, while a revised NMP would need to be submitted to the 
Director, the Director should not need to seek public comment on the 
revised NMP. Such changes might include, for example, changes in 
cropping patterns not anticipated in the original NMP where they are 
managed consistent with the original plan and properly documented. In 
such instances, today's proposal would require the CAFO owner or 
operator to provide the revised NMP, along with appropriate 
documentation to reflect changed conditions, to the permitting 
authority. The better the documentation of the terms in the NMP, 
including calculations, the easier it will be for a permitted facility 
to demonstrate that changes in its nutrient management practices are 
non-substantial modifications of its NMP.
    Today's proposal (see proposed 40 CFR 122.42(e)(5)) would require 
that, whenever a CAFO makes any change to its NMP, the owner or 
operator would provide the Director with the revised NMP and identify 
the changes from the previous version submitted to the permitting 
authority. The Director would then review the changes to ensure that 
the NMP still meets the requirements of 40 CFR 122.42(e)(1)(i) through 
(x) and, for Large CAFOs, 40 CFR 412.4(c) and technical standards 
developed by the Director. If the changes are not substantial, the 
Director would simply modify the permit as necessary and notify the 
public of such modification (and not seek public comment). If the 
changes are substantial, the nutrient management plan would be revised 
using procedures similar to those proposed for the initial 
incorporation of an NMP into a general permit. Thus, today's proposed 
rule would require the Director to notify the public of substantial 
changes, and provide an opportunity for public notice and comment. 
Moreover, the appeals process would be the same as that for 
incorporation of NMPs into a general permit. EPA solicits comment on 
the approach proposed to deal with NMP revisions, as well as on the 
conditions concerning what constitutes a substantial change to an NMP.
    Because the process in 40 CFR 122.42(e)(5) would allow for public 
review of changes to the terms of nutrient management plans and the 
underlying data and calculations, EPA proposes that the incorporation 
of changes to the permit through this process would be treated as a 
minor permit modification, under Sec.  122.63(h), and not require 
additional review. EPA considered requiring any change to the NMP to be 
considered a permit modification requiring procedures under Sec.  
122.62, but rejected this option as it would significantly burden 
permitting authorities and CAFO operators' ability to make necessary 
and timely minor changes to NMPs as discussed above.
    For substantial changes, the Agency also proposes to expressly 
allow the facility, at the Director's discretion, to proceed in 
implementing the change for up to 180 days before completion of public 
review and permitting authority approval, so long as the change is not 
likely to result in increased runoff of manure, litter or process 
wastewater from the facility. Given the importance of timing in 
farming, EPA recognizes that CAFOs may be unable to delay the 
implementation of a substantial change to their nutrient management 
plan to allow for public review and still implement the change in a 
timely fashion.
    EPA believes that it would be reasonable to allow the Director to 
temporarily allow substantial changes so long as certain conditions are 
met. First, the approval would be temporary, allowing the CAFO to 
implement the changes for only 180 days. Second, the facility would 
need to provide to the Director documentation to demonstrate that the 
change would not result in increased runoff of manure, litter, or 
process wastewater from the facility. Third, the Director would have to 
review the documentation and conclude that the changes would not result 
in increased runoff of manure, litter, or process wastewater from the 
facility. Finally, the Director would have to include such expedited 
decisions with the permit in the public record and notify the public of 
its decision. Moreover, by the end of the 180 day

[[Page 37757]]

period, these changes would need to undergo the public review 
procedures required for all substantial changes and be incorporated 
into the CAFO's permit by the Director. Changes EPA intends to 
encompass within this provision include the addition of new fields for 
land application where the Director determines that such additional or 
replacement fields have equivalent phosphorous ratings (based on the 
Phosphorous Index, for example) for nutrient uptake as the fields they 
are supplementing or replacing, whichever may be the case. EPA is 
interested in commenters' views concerning this proposed provision. EPA 
specifically solicits comment on whether a change that would result in 
increased rates of land application of manure, litter, or process 
wastewater in addition to those changes likely to result in increased 
runoff, should also be precluded from expedited implementation during 
the 180 day period.
    EPA is also interested in taking comment on an approach that might 
allow greater flexibility for CAFO operators in making cropping 
decisions while assuring permitting authorities and the public that 
they are complying substantively with the terms of the NMP as 
incorporated into the permit, even if the CAFO modifies its practices 
somewhat from those articulated in the NMP and the permit. Under this 
approach, the Agency would modify the annual report requirements for 
permitted CAFOs in 40 CFR 122.42(e)(4) to require all CAFOs to submit 
information with the annual report indicating how the CAFO achieved 
substantive compliance with the terms of the NMP as set forth in the 
permit. If the CAFO implemented any cropping options not included in 
the calculations provided in the NMP, the CAFO would document the 
procedures and nutrient management practices utilized, including crops 
grown and fields planted, together with nutrient management 
calculations that governed its land application practices for the prior 
calendar year, and explain how the modified cropping options as 
implemented continued to comply with the substantive terms of the NMP 
incorporated into the permit. Under this option, EPA would include 
guidance in either rule or preamble text on which types of deviations 
from the NMP would be allowed, and what would be required to 
demonstrate in the annual report that these deviations substantively 
complied with the permit terms. The Agency solicits comment on whether 
such an approach would be practical and the extent to which it could 
allow greater flexibility for CAFOs to meet the NMP requirements 
incorporated into their permits, while still ensuring appropriate 
permitting authority and public oversight of permit compliance.
(f) Required Dates
    In a separate rulemaking, EPA revised the dates in the 2003 CAFO 
rule by which CAFOs were required to develop and implement their NMPs. 
(71 FR 6978.) The 2003 CAFO rule required newly defined CAFOs to seek 
coverage under an NPDES permit by February 13, 2006, but required the 
development and implementation of a nutrient management plan by 
December 31, 2006. This would have conflicted with today's proposal 
that CAFOs submit their NMPs with their permit applications or notices 
of intent, as required by the Second Circuit Court's decision. The new 
rule requires CAFO owners and operators to submit their NMPs at the 
time of the permit application by extending the deadline for both to 
July 31, 2007. EPA extended these deadlines in a separate rulemaking so 
as to provide the Agency sufficient time to develop the regulatory 
revisions proposed in this rulemaking that more broadly respond to the 
Waterkeeper decision.

C. Remand Concerning Water Quality Based Effluent Limitations

    Water quality-based effluent limitations (WQBELs) are one of two 
fundamental types of limitations imposed in NPDES permits. The other is 
technology-based limitations. Technology-based limitations are required 
in all NPDES permits, unless the permit writer imposes more stringent 
WQBELs in the permit where necessary to ensure that water quality 
standards are attained in the receiving waters. (See CWA Section 
301(b)(1)(c), 33 U.S.C. 1311(b)(1)(c), and 40 CFR 122.44(d).) Where 
WQBELs are necessary, the permit writer establishes them without 
consideration of the availability or effectiveness of treatment 
technologies or the costs that dischargers would incur to meet those 
water quality-based limits. (See Arkansas v. Oklahoma, 112 S.Ct. 1046, 
1054 (1992); Westvaco v. EPA, 899 F.2d 1383 (4th Cir. 1990).)
    The environmental petitioners claimed that the 2003 CAFO rule 
violated both the Clean Water Act and the Administrative Procedure Act 
because it failed to promulgate WQBELs for CAFO discharges and also 
barred States from doing so. The Second Circuit agreed in part with 
this claim, as described in Section II.D.3 above, and remanded this 
issue to EPA for further clarification.
    The terms of the 2003 CAFO rule itself do not contain any 
requirements concerning WQBELs, but EPA addressed the subject of WQBELs 
in the preamble. In fact, there was only one WQBELs issue that EPA 
addressed or intended to address in the preamble--whether WQBELs can be 
imposed for land application discharges of agricultural stormwater--and 
on that issue, the court expressly agreed with EPA's discussion. What 
appears to have troubled the court were certain statements in the 
preamble that the court thought might also address how WQBELs apply to 
other types of discharges. EPA therefore offers the following 
clarification.
1. The Application of WQBELs to CAFO Discharges Under the 2003 CAFO 
Rule
    How WQBELs apply to a CAFO's land application runoff is different 
from how they apply to discharges from a CAFO's production areas, as 
explained below.
(a) Land Application Discharges
    In the 2003 rule, to determine how WQBELs apply to land application 
discharges at CAFOs, EPA first had to consider the statutory exclusion 
for agricultural stormwater. In the Clean Water Act, the definition of 
``point source'' specifically includes CAFOs but excludes agricultural 
stormwater discharges. (See CWA Section 502(14).) In the 2003 CAFO 
rule, EPA interpreted how this exclusion applies to discharges from 
land application at CAFOs. EPA found that where a CAFO applies manure, 
litter, or process wastewater to its fields, the resulting discharges 
from those fields are regulated by the Clean Water Act as point source 
discharges except where they qualify as agricultural stormwater. EPA 
determined that land application discharges qualify as agricultural 
stormwater only where manure, litter, or process wastewater has been 
applied in accordance with site-specific nutrient management practices 
that ensure appropriate agricultural utilization of the nutrients in 
the manure, litter or process wastewater, as specified in Sec.  122.42 
(e)(1)(vi)-(ix). (See 40 CFR 122.23(e).) Where a CAFO has not followed 
such practices, EPA concluded that any resulting precipitation-related 
discharge was not intended by Congress to be excluded from the Act as 
agricultural stormwater and is therefore subject to NPDES requirements.
    The land application requirements of the 2003 CAFO rule reflected 
this interpretation by EPA of the agricultural stormwater exclusion in 
the Act. EPA

[[Page 37758]]

found that where a CAFO follows these practices, any and all 
precipitation-related discharges of manure, litter, or process 
wastewater that occur from land application fields would be covered by 
the agricultural stormwater exclusion and would thus be considered 
nonpoint source runoff. (68 FR 7198.) In other words, a CAFO that 
follows the requirements in the 2003 rule eliminates all precipitation-
related point source discharges from its land application fields. While 
physically there may still be some runoff from the fields related to 
precipitation, the CAFO has no discharge of regulated precipitation-
related runoff, since any remaining precipitation runoff is 
agricultural stormwater.
    Because the CAFO effluent guidelines--the technology-based 
regulations--already prohibit all precipitation-related land 
application discharges that are subject to regulation, EPA noted in the 
2003 rule that it is not possible for a CAFO permit writer to add any 
other permit limitations on these discharges that are more stringent 
than the CAFO effluent guidelines, including any water quality-based 
limitations. (See 68 FR at 7198.) Only discharges of agricultural 
stormwater, which are nonpoint source discharges, remain. The Second 
Circuit agreed that the rule ``does not present a problem to the extent 
that [it] fails to promulgate--and bars States from promulgating--
WQBELs for any `agricultural stormwater discharge' * * * Agricultural 
storm water discharges are, after all, statutorily exempt from any 
effluent limitations, including WQBELs, because they are non-point 
source discharges.'' Waterkeeper, 399 F.3d at 522.
    It should be noted that the key point of this discussion--that 
water quality-based effluent limits are not available to limit land 
application discharges that are agricultural stormwater--involves, in 
the first instance, only precipitation-related land application 
discharges, since only precipitation-related discharges can be 
agricultural stormwater. Water quality-based effluent limits are 
available to the permit writer to limit any non-precipitation related 
(i.e., dry-weather) discharges that occur at land application areas to 
levels that are more stringent than the technology-based limitations 
(effluent guidelines), and EPA never intended to indicate otherwise. As 
EPA stated in the 2003 rule, ``any dry weather discharge of manure or 
process wastewater resulting from its application to land area under 
the control of a CAFO would not be considered an agricultural 
stormwater discharge and would thus be subject to Clean Water Act 
requirements.'' 68 FR 7198. To be sure, in most instances, a CAFO's 
requirement to meet technology-based permit limits that require manure 
to be applied at appropriate agronomic rates should itself eliminate 
all or most dry weather discharges. Nevertheless, if such discharges 
remain, the need for additional water quality-based effluent limits to 
control them will be determined by the permit writer based on the 
circumstances of each particular case.
(b) Production Area Discharges
    In contrast to precipitation-related land application discharges, 
under the 2003 rule, WQBELs can be applied by permit writers in 
appropriate cases to further limit discharges from CAFO production 
areas (except for new source CAFOs in the swine and poultry sectors, as 
discussed below). WQBELs can be imposed on these production area 
discharges, where appropriate, because the effluent guidelines do not, 
by themselves, prohibit all ``regulatable'' discharges from the 
production area. The effluent guidelines allow occasional overflow 
discharges from properly designed, operated, and maintained lagoons and 
storage ponds. It is possible that WQBELs might be necessary in a 
particular permit to further limit these discharges beyond the levels 
that are authorized under the CAFO effluent guidelines. It should also 
be noted that the exclusion for agricultural stormwater does not apply 
to discharges from the CAFO production area, as EPA stated in the 2003 
rule. (See 40 CFR 122.23(e) and 68 FR 7198). Thus, the agricultural 
stormwater exclusion does not serve to limit how WQBELs may be imposed 
to control production area discharges.
    For new source CAFOs in the swine and poultry sectors, however, no 
WQBELs can be imposed in permits for the production areas. This is 
because the effluent guidelines already prohibit all production area 
discharges from these new sources. (See 40 CFR 412.46(a).)
2. Discussion
    The Second Circuit expressed two concerns with EPA's discussion of 
how WQBELs apply at CAFOs. First, the court found that it was ``unclear 
* * * why the CAFO Rule exempts discharges other than agricultural 
storm water discharges from WQBELs.'' (See 399 F.3d at 522.) EPA had 
indicated its intention, the court found, ``not to promulgate any 
WQBELs whatsoever.'' As an initial matter, WQBELs for CAFOs are 
derived, where appropriate, on a case-by-case basis for individual 
permits, not promulgated in EPA regulations. EPA never intended to 
``promulgate'' any WQBELs in the 2003 rule, but simply to discuss how 
WQBELs might apply once a CAFO applied for a permit.
    Specifically, the court was concerned by EPA's preamble statement 
that ``EPA does not expect that water quality-based effluent 
limitations will be established for CAFO discharges resulting from the 
land application of manure, litter, or process wastewater.'' 399 F.3d 
at 522, citing 68 FR 7207. The court may have been concerned that EPA 
was exempting from the application of WQBELs not only agricultural 
stormwater discharges from CAFO land application areas (which the court 
agreed are not subject to WQBELs) but also any other discharges from 
land application areas or even production areas. (See 399 F.3d at 522 
(``EPA has * * * only justified its determination not to impose WQBELs 
* * * only insofar as agricultural stormwater discharges are concerned 
* * * The EPA has not attempted, in any way, to explain its failure to 
promulgate WQBELs for CAFO discharges other than agricultural 
stormwater discharges * * *'').) This was not EPA's intent. EPA 
intended only to affirm that where the precipitation-related discharge 
from land application areas has been limited to only agricultural 
stormwater, WQBELs are not available as further limitations on those 
discharges.
    Based on its understanding, the court directed EPA ``to explain 
whether or not, and why, WQBELs are needed to assure that CAFO 
discharges will not `interfere with the attainment or maintenance of 
that water quality in a specific portion of the navigable waters which 
shall assure protection of public health, public water supplies, 
agricultural and industrial uses, and the protection and propagation of 
a balanced population of shellfish, fish and wildlife, and allow 
recreational activities in and on the water,' '' citing 33 U.S.C. 
1312(a). 399 F.3d at 523. In response, EPA clarifies that WQBELs are 
not available for permits with respect to precipitation-related land 
application discharges for CAFOs. However, water quality-based effluent 
limits can be included in permits as necessary with respect to non-
precipitation-related land application discharges and with respect to 
production area discharges, as discussed above. For example, with 
respect to production area discharges, under the effluent guidelines, a 
CAFO may be subject to a permit requirement that allows production area 
discharges

[[Page 37759]]

only if the CAFO designs and operates its lagoon or pond to contain all 
process wastewater plus any storm water runoff resulting from the 25-
year, 24-hour storm. But water quality considerations may lead the 
permit writer to impose a more stringent permit requirement such as 
allowing discharges only if the lagoon or pond is designed and operated 
to contain water from an even bigger storm.
    The court's second concern was that the 2003 rule preamble was 
``ambiguous about whether States may promulgate WQBELs for discharges 
other than agricultural stormwater discharges.'' 399 F.3d at 523. The 
court directed EPA to explain this issue more clearly on remand. In 
response, the reasoning described above applies to State-issued as well 
as EPA-issued NPDES permits. Permit writers in NPDES-authorized States 
can include WQBELs as necessary with respect to non-precipitation-
related land application discharges and with respect to production area 
discharges.
    There are two additional considerations, however, with respect to 
State-issued permits. First, the effluent guidelines require CAFOs to 
limit their land application of wastes to levels that comport with 
State technical standards for manure management. In the 2003 rule 
preamble, EPA encouraged States to address water quality protection 
issues in setting those technical standards for appropriate land 
application practices. (See 399 F.3d at 523, citing 68 FR 7198). Thus, 
although the effluent guidelines are by their nature technology-based, 
EPA encouraged the States to address water quality concerns in setting 
their technical standards for manure management. But this does not 
change the basic regulatory scheme under which, once those technology-
based standards are applied in a permit, the only remaining 
precipitation-related runoff is agricultural stormwater, for which 
water quality-based effluent limitations are not available.
    Second, it is possible that a State can have additional 
requirements under its own State regulatory authorities that would go 
beyond the requirements of the federal NPDES program. Thus, where the 
only runoff from a CAFO's land application area is agricultural 
stormwater, that remaining runoff, though not subject to further NPDES 
regulation, could be subject to additional State requirements that are 
broader in scope, including additional requirements related to water 
quality. 33 U.S.C. 1370 and 40 CFR 123.1 and 123.25. These 
requirements, however, would not be federally enforceable.

D. New Source Performance Standards for Subpart D Facilities

1. Provisions in the 2003 CAFO Rule
(a) 100-Year, 24-Hour Rainfall Event Design Standards
    The Clean Water Act requires EPA to promulgate New Source 
Performance Standards (NSPS) for new, as opposed to already existing, 
sources of pollution. (See 33 U.S.C. 1316.) The Act provides that these 
standards must ``reflect the greatest degree of effluent reduction 
which the Administrator determines to be achievable through application 
of the best available demonstrated control technology, processes, 
operating methods, or other alternatives, including, where practicable, 
a standard permitting no discharge of pollutants.'' 33 U.S.C. 
1316(a)(1). The Act further requires that EPA ``take into consideration 
the cost of achieving such effluent reduction, and any non-water 
quality, environmental impact and energy requirements.'' 33 U.S.C. 
1316(b)(1)(B). EPA is given considerable discretion to weigh and 
balance the various factors required by statute to set NSPS. 
Riverkeeper, Inc. v. EPA, 358 F. 3d 174, 195 (2d Cir. 2004).
    The 2003 CAFO rule effluent guidelines for new Subpart D (swine, 
poultry, and veal) operations prohibit the discharge of any pollutants 
from CAFO production areas. It is common for new poultry, veal, and 
swine operations to confine the animals so that they are never exposed 
to rainfall or storm water runoff. In addition, many new operations 
employ manure handling systems that greatly reduce or eliminate the use 
of water as a conveyance or handling mechanism for the manure, and 
typically contain manure in covered or indoor facilities. (See 68 FR 
7219 and Chapter 8 of the ``Technical Development Document for the 
Final Revisions to the National Pollutant Discharge Elimination System 
Regulation and the Effluent Guidelines for Concentrated Animal Feeding 
Operations'' (EPA-821-R-03-001) or ``TDD'' for more information.) Based 
on these technologies, EPA determined that a no discharge standard was 
technologically feasible.
    EPA recognized that CAFOs may use different technologies to meet 
the no discharge standard and that these technologies may have slightly 
different vulnerabilities to extreme weather events. Therefore, the 
2003 CAFO rule would have allowed CAFOs to meet the no discharge 
standard by using waste management and storage facilities designed, 
constructed, operated, and maintained to contain all manure and process 
wastewater including the runoff and precipitation from a 100-year, 24-
hour rainfall event.\3\ The 100-year, 24-hour rainfall event is a 
statistical event defined as the amount of rainfall that has a one 
percent chance of being exceeded in a 24-hour period in any given year. 
Thus, a facility that was adequate to contain both the process 
wastewater generated at the facility and the runoff and precipitation 
from the 100-year event would not discharge in circumstances resulting 
in runoff and precipitation less than that produced in the 100-year 
event, when properly operated and maintained. EPA provided the 100-
year, 24-hour rainfall event criteria to provide clarity to the 
regulated community about how to design, operate and maintain their 
manure handling systems to achieve the no discharge standard.
---------------------------------------------------------------------------

    \3\ All storage structures must be operated in accordance with 
the additional measures specified in the regulations at 40 CFR 
412.37(a) and (b).
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(b) Superior Alternative Performance Standards
    The 2003 CAFO rule also allows existing CAFOs in Subparts C and D, 
and new beef, dairy, and heifer CAFOs to voluntarily participate in the 
Voluntary Alternative Performance Standards program. The alternative 
performance provisions allow CAFOs to request that the Director 
establish alternate permit effluent limitations in place of the 25-
year, 24-hour storm standard that would otherwise apply. This provision 
enables CAFOs to implement new technologies and management practices 
that perform as well as or better than the baseline effluent guidelines 
at reducing pollutant discharges to surface waters from the production 
area. To demonstrate that an alternative control technology would 
achieve equivalent or better pollutant reductions than the baseline 
effluent guidelines, the CAFO must submit a technical analysis, which 
first calculates the pollutant discharges based on the site-specific 
modeled performance of a system designed to comply with the baseline 
effluent guidelines and then demonstrates that the proposed alternate 
limitations would result in equal or lower discharges. The minimum 
specific components of the technical analysis were included in the ELGs 
at 40 CFR 412.31(a)(2).
    For new Large swine, poultry, and veal CAFOs (new sources under 
Subpart D), the 2003 rule had a similar provision for alternative 
permit limitations--the ``Voluntary Superior Environmental Performance 
Standards'' provision. This NSPS provision empowered permitting

[[Page 37760]]

authorities to establish site-specific alternative performance 
standards that allow production area discharges, so long as such 
discharges were accompanied by reductions of pollutant discharges to 
other media. (See 40 CFR 412.46(d).) Specifically, the quantity of 
pollutants discharged from the production area had to be accompanied by 
an equivalent or greater reduction in the quantity of pollutants 
released to other media from the production area (e.g., air emissions 
from housing and storage), the land application areas for all manure, 
litter, and process wastewater at on-site and off-site locations, or 
both. The Director was given the discretion to request supporting 
information to supplement such a request.
2. Summary of the Second Circuit Court Decision Concerning Remanded 
Issues
    The Second Circuit Court of Appeals remanded several elements of 
the 2003 CAFO rule related to new sources. Specifically, the court 
directed EPA to clarify the statutory and evidentiary basis for 
allowing subpart D CAFOs to comply with the NSPS requirements by either 
the 100-year storm standard or the alternative performance standards. 
With respect to the 100-year storm standard, the Court noted that while 
certain studies showed that the production area BMPs adopted by the 
2003 CAFO rule would have substantially prevented the production area 
discharges documented in the record, the court explicitly stated that 
substantially preventing discharges is not the same as prohibiting them 
outright. With respect to the alternative performance standards, the 
court held that EPA had not justified its decision to allow compliance 
with the no discharge standard through an alternative standard 
permitting production area discharges so long as the aggregate 
pollution to all media is equivalent to or lower than that resulting 
from the baseline standards. The court further held that EPA did not 
provide adequate notice for either of these provisions under the Clean 
Water Act's public participation requirements. (See 33 U.S.C. 1251(e) 
(``Public participation in the development, revision, and enforcement 
of any regulation, standard, effluent limitation, plan, or program 
established by the Administrator or any State under this Act shall be 
provided for, encouraged, and assisted by the Administrator and the 
States'').)
3. This Proposal
(a) 100-Year Storm Containment Structure
    EPA has reconsidered the NSPS in light of the Second Circuit 
decision. As a result of its review, EPA is proposing to delete 40 CFR 
412.46(a)(1), the provision allowing CAFOs to meet the no discharge 
standard through the use of a 100-year, 24-hour rain event containment 
structure. If EPA adopts this change, all discharge of manure, litter, 
and process wastewater would be prohibited from the production area for 
new source swine, poultry, and veal calf operations. The land 
application requirements would remain unchanged. Regulatory language 
implementing the proposed change may be found in today's proposed rule 
text.
    As part of this approach, EPA also proposes to modify Section 
412.37(a)(2) by removing the requirement that all surface liquid 
impoundments at new sources have a depth marker indicating the minimum 
capacity to contain the runoff and direct precipitation from a 100-
year, 24-hour rain event. The removal of the 100-year storm containment 
structure provision for new sources makes this provision irrelevant. 
Although the Agency proposes to delete the 100-year, 24-hour depth 
marker requirement, EPA recognizes that a marker indicating depth can 
be an excellent means of displaying how much storage a CAFO has, and 
whether it is time to pump down levels in the lagoon or pond. EPA 
believes depth markers are a useful tool to help with the management of 
any facility, and proposes to maintain, in 412.37(a), the depth marker 
requirement in the rule, even though EPA removed the 100-year, 24 hour 
rainfall specification. EPA solicits comment on this provision of the 
ELGs.
    Additionally, EPA is proposing an alternative that would authorize 
the NPDES Program Director to establish no discharge best management 
practice effluent limitations based upon a site-specific evaluation for 
an individual CAFO. Compliance with such limitations would provide an 
alternate approach for CAFOs to meet the zero discharge requirement. 
Specifically, EPA is proposing to authorize permit writers, upon 
request by a CAFO, to establish best management, zero discharge 
effluent limitations on a case-by-case basis when a facility 
demonstrates through a rigorous modeling analysis that it has designed 
an open containment system that will comply with the no discharge 
requirements. If a facility has complied with all of the specified 
site-specific design, construction, operation, and maintenance 
components of such a system demonstrated to meet the zero discharge 
requirement, it would be deemed to be in compliance with the no 
discharge requirement even in the event of an unanticipated discharge.
    EPA continues to recognize that CAFOs may use different 
technologies to meet the no discharge standard and that these 
technologies may have different vulnerabilities to extreme weather 
events. While some CAFOs may use closed containment systems to ensure 
meeting the no discharge requirements, EPA seeks to encourage new 
source CAFOs to consider implementation of anaerobic digesters, multi-
cell treatment lagoons, and nitrification and/or denitrification 
technologies. While these innovative technologies should be able to 
achieve zero discharge, and the operator must demonstrate to the permit 
authority's satisfaction that the system will be designed, operated and 
maintained to do so, there may be greater uncertainty in the 
performance of these systems during exceptionally heavy rainfalls and 
other rare weather conditions. To address such situations, EPA believes 
it appropriate to allow a facility to use an upset/bypass defense under 
40 CFR 122.41(m)-(n), for events that are beyond the