[Code of Federal Regulations]
[Title 40, Volume 9]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR63.94]

[Page 109-112]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 63--NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS FOR SOURCE CATEGORIES--Table of Contents
 
    Subpart E--Approval of State Programs and Delegation of Federal 
                               Authorities
 
Sec. 63.94  Approval of State permit terms and conditions that substitute for a section 112 rule.

    Under this section a State may seek approval of State permit terms 
and conditions to be implemented and enforced in lieu of specified 
existing and future Federal section 112 rules, emission standards, or 
requirements promulgated under section 112, for those affected sources 
permitted by the State under part 70 of this chapter. The State may not 
seek approval under this section for permit terms and conditions that 
implement and enforce part 68 requirements.
    (a) Up-front approval process.(1) A State must submit a request that 
meets the requirements of paragraph (b) of this section. After receiving 
a complete request for approval of a State program under this section 
and making a preliminary determination of equivalence, the Administrator 
will seek public comment for 21 days through a Federal Register notice. 
The Administrator will require that

[[Page 110]]

comments be submitted concurrently to the State.
    (2) If, after review of all public comments, and State responses to 
comments submitted to the Administrator, the Administrator finds that 
the criteria of paragraph (b) of this section and the criteria of 
Sec. 63.91 are met, the Administrator will approve the State program. 
The approved program will be published in the Federal Register and 
incorporated directly or by reference in the appropriate subpart of part 
63.
    (3) If the Administrator finds that any of the criteria of paragraph 
(b) of this section or Sec. 63.91 have not been met, the Administrator 
will partially approve or disapprove the State program. For any partial 
approvals or disapprovals, the Administrator will provide the State with 
the basis for the partial approval or disapproval and what action the 
State can take to make the programs approvable.
    (4) Within 90 days of receiving a complete request for approval 
under this section, the Administrator will either approve, partially 
approve, or disapprove the State request.
    (b) Criteria for up-front approval. Any request for program approval 
under this section shall meet all of the criteria of this paragraph and 
Sec. 63.91 before approval. The State shall provide the Administrator 
with:
    (1)(i) To the extent possible, an identification of all specific 
sources in source categories listed pursuant to subsection 112(c) for 
which the State is seeking authority to implement and enforce 
alternative requirements under this section;
    (ii) If the identified sources in any source category comprise a 
subset of the sources in that category within the State's jurisdiction, 
the State shall request delegation for the remainder of the sources in 
that category that are required to be permitted by the State under part 
70 of this chapter. The State shall request delegation for the remainder 
of the sources in that category under another section of this subpart.
    (iii) Prior to submitting a request for one or more sources within a 
source category, the State shall consult with their EPA Regional Office 
regarding the number of sources in a category eligible for submittal 
under this option. Based on the Regional Office's decision, the State 
shall limit the number of sources for which it submits permit 
requirements.
    (2) To the extent possible, an identification of all existing and 
future section 112 emission standards for which the State is seeking 
authority under this section to implement and enforce alternative 
requirements.
    (3) If, after approval of the initial list of source categories 
identified in paragraph (b)(2) of this section, the State adds source 
categories for approval under this option, the State shall submit an 
addendum to the up-front approval submission, and identify the addition 
to the lists. The Administrator will follow the process outlined in 
paragraph (a) of this section for up-front approval.
    (4) A one-time demonstration that the State has an approved title V 
operating permit program and that the program permits the affected 
sources.
    (c) Approval process for alternative requirements. (1) After 
promulgation of a Federal section 112 rule, emission standard, or 
requirement for which the State has up-front approval to implement and 
enforce alternative requirements in the form of title V permit terms and 
conditions, the State shall provide the Administrator with pre-draft 
title V permit terms and conditions that are sufficient, in the 
Administrator's judgement, to allow the Administrator to determine 
equivalency. The permit terms and conditions shall reflect all of the 
requirements of the otherwise applicable Federal section 112 rule, 
emission standard, or requirement.
    (2) [Reserved]
    (3) If, the Administrator receives a complete request and finds the 
pre-draft title V permit terms and conditions submitted by the State 
meet the criteria of paragraph (d), the Administrator will approve the 
State's alternative requirements (by approving the pre-draft permit 
terms and conditions) and notify the State in writing of the approval.
    (4) The Administrator may approve the State's alternative 
requirements on the condition that the State makes certain changes to 
the pre-draft title V

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permit terms and conditions and includes the changes in the complete 
pre-draft, proposed, and final title V permits for the affected sources. 
If the Administrator approves the alternative requirements on the 
condition that the State makes certain changes to them, the State shall 
make those changes or the alternative requirements will not be federally 
enforceable when they are included in the final permit, even if the 
Administrator does not object to the proposed permit. Until the 
Administrator affirmatively approves the State's alternative 
requirements (by approving the pre-draft permit terms and conditions) 
under this paragraph, and those requirements (permit terms) are 
incorporated into the final title V permit for any affected source, the 
otherwise applicable Federal emission standard(s) remain the federally 
enforceable and applicable requirements for that source.
    (5) If, after evaluating the pre-draft title V permit terms and 
conditions that were submitted by the State, the Administrator finds 
that the criteria of paragraph (d) of this section have not been met, 
the Administrator will disapprove the State's alternative requirements 
and notify the State in writing of the disapproval. In the notice of 
disapproval, the Administrator will specify the deficient or 
nonapprovable elements of the State's alternative requirements.
    (6) Within 90 days of receiving a complete request for approval 
under this paragraph, the Administrator will either approve, partially 
approve, or disapprove the State's alternative requirements.
    (7) Nothing in this section precludes the State from submitting 
alternative requirements in the form of title V permit terms and 
conditions or title V general permit terms and conditions for approval 
under this paragraph at the same time the State submits its program to 
the Administrator for up-front approval under paragraph (a) of this 
section, provided that the Federal emission standards for which the 
State submits alternative requirements are promulgated at the time of 
the State's submittal. If the Administrator finds that the criteria of 
Sec. 63.91 and the criteria of paragraphs (b) and (d) of this section 
are met, the Administrator will approve both the State program and the 
permit terms and conditions within 90 days of receiving a complete 
request for approval.
    (d) Approval criteria for alternative requirements.Any request for 
approval under this paragraph shall meet the following criteria. Taken 
together, the criteria in this paragraph describe the minimum contents 
of a State's equivalency demonstration for a promulgated Federal section 
112 rule, emission standard, or requirement. To be approvable, the State 
submittal must contain sufficient detail to allow the Administrator to 
make a determination of equivalency between the State's alternative 
requirements and the Federal requirements. Each submittal of alternative 
requirements in the form of pre-draft permit terms and conditions for an 
affected source shall:
    (1) Identify the specific, practicably enforceable terms and 
conditions with which the source would be required to comply upon 
issuance, renewal, or revision of the title V permit. The State shall 
submit permit terms and conditions that reflect all of the requirements 
of the otherwise applicable Federal section 112 rule, emission standard, 
or requirement. The State shall identify for the Administrator the 
specific permit terms and conditions that contain alternative 
requirements.
    (2) Identify specifically how the alternative requirements in the 
form of permit terms and conditions are the same as or differ from the 
requirements in the otherwise applicable Federal section 112 rule, 
emission standard, or requirement (including any applicable requirements 
in subpart A or other subparts or appendices). The State shall provide 
this identification in a side-by-side comparison of the State's 
requirements in the form of permit terms and conditions and the 
requirements of the Federal section 112 rule, emission standard, or 
requirement.
    (3) The State shall provide the Administrator with detailed 
documentation that demonstrates that the alternative requirements meet 
the criteria specified in Sec. 63.93(b), i.e., that the alternative 
requirements are at least as

[[Page 112]]

stringent as the otherwise applicable Federal requirements.
    (e) Incorporation of permit terms and conditions into title V 
permits. (1) After approval of the State's alternative requirements 
under this section, the State shall incorporate the approved permit 
terms and conditions into title V permits for the affected sources. The 
State shall issue or revise the title V permits according to the 
provisions contained in Sec. 70.7 of this chapter. The alternative 
permit terms and conditions may substitute for the Federal requirements 
once they are contained in a valid title V permit. If the State does not 
write the alternative conditions, exactly as approved, into the permit, 
EPA may reopen the permit for cause per Sec. 70.7(g) of this chapter, 
and the delegation may not occur.
    (2) In the notice of pre-draft permit availability, and in each pre-
draft, proposed, and final permit, the State shall indicate prominently 
that the permit contains alternative section 112 requirements. In the 
notice of pre-draft permit availability, the State shall specifically 
solicit public comment on the alternative requirements. In addition, the 
State shall attach all documents supporting the approved equivalency 
determination for those alternative requirements to each pre-draft, 
proposed, and final permit.

[65 FR 55841, Sept. 14, 2000]