[Code of Federal Regulations]
[Title 40, Volume 13]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR69.32]

[Page 202-205]
 
                TITLE 40 - PROTECTION OF ENVIRONMENT
 
      CHAPTER I - ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 69 - SPECIAL EXEMPTIONS FROM REQUIREMENTS OF THE CLEAN AIR ACT--Table of Contents
 
      Subpart C - Commonwealth of the Northern Mariana Islands
 
Sec. 69.32  Title V conditional exemption.

    (a) Conditional exemption. In response to a petition submitted by 
the Governor of The Commonwealth of the Northern Mariana Islands (CNMI) 
and pursuant to section 325(a) of the Clean Air Act (Act), the 
Administrator of the United States EPA (EPA) grants the following 
conditional exemptions:
    (1) CNMI is exempted from the requirement to develop, submit for 
approval, and implement an operating permit program under title V of the 
Clean Air Act on the condition that CNMI meets the requirements of 
paragraph (b) of this section and subject to the provisions of 
paragraphs (c) through (f) of this section.
    (2) Except for sources listed under paragraph (a)(4) of this 
section, owners or operators of sources located in CNMI subject to the 
operating permit requirements of title V of the Clean Air Act are exempt 
from the requirement to apply for and obtain a title V operating permit, 
on the condition that the owner or operator of each such source must 
apply for and obtain an operating permit under an EPA approved alternate 
program that meets the requirements of paragraph (b) of this section and 
subject to the provisions of paragraphs (c) through (f) of this section. 
The owner or operator of each such source shall apply for and obtain a 
permit under the alternate operating permit program by the deadlines set 
forth in the approved program, but in any event shall obtain a permit no 
later than January 13, 2003. If the owner or operator of any source has 
not obtained an operating permit under an alternate operating program 
approved by EPA for CNMI by January 13, 2003, the exemption for such 
source shall expire and the owner or operator of such source shall 
become subject to the permitting requirements of 40 CFR part 71 on that 
date, consistent with paragraph (e)(3) of this section.
    (3) Upon EPA approval of an alternate operating permit program 
adopted by CNMI in accordance with this Sec. 69.32, a person 
shall not violate any permit condition or term in a permit that has been 
issued under such alternate permit program.
    (4) This exemption does not apply to owners or operators of major 
sources of hazardous air pollutants (HAPs) as defined under section 112 
of the Clean Air Act or to owners or operators of solid waste 
incinerators subject to the title V requirements of section 129(e) of 
the Act. Owners or operators of major sources of HAPs or solid waste 
incinerators shall be subject to the requirements of 40 CFR part 71 and 
shall apply for and obtain a part 71 permit by the deadlines specified 
in 40 CFR part 71. Any owner or operator of a major source of HAPs 
subject to 40 CFR part 63, subpart B, shall submit a timely part 71 
permit application as required by 40 CFR part 71 and 40 CFR part 63, 
subpart B, requesting a case-by-case section 112(g) or 112(j) Maximum 
Achievable Control Technology (MACT) determination.
    (b) Requirements for the alternate operating program. CNMI shall 
develop and submit an alternate operating permit program (the program) 
to EPA for approval. Upon approval by EPA, CNMI shall implement the 
program. The program, including the necessary statutory and regulatory 
authority, must be submitted by January 13, 1999 for approval. The 
submittal shall include the following elements:
    (1) The program must contain regulations that ensure that:
    (i) The permits shall include emission limits and standards, and 
other terms or conditions necessary to ensure compliance with all 
applicable federal requirements, as defined under 40 CFR 70.2.
    (ii) The limitations, controls, and requirements in the permits 
shall be permanent, quantifiable, and otherwise enforceable as a 
practical matter.

[[Page 203]]

    (iii) Permits shall contain monitoring, recordkeeping and reporting 
requirements sufficient to ensure compliance with applicable federal 
requirements during the reporting period.
    (iv) The program shall require that the owner or operator of each 
source submit permit applications with compliance certifications 
describing the source's compliance status with all applicable 
requirements. The program shall also provide that each permit contain a 
requirement that the owner or operator of a source submit annual 
compliance certifications. The compliance certification shall contain a 
compliance plan, and shall contain a schedule for expeditiously 
achieving compliance if the source is not in compliance with all 
applicable requirements. The program must provide that approval of a 
permit with a compliance plan and schedule does not sanction 
noncompliance.
    (2) The program shall provide for the collection of fees from 
permitted sources or other revenues in an amount that will pay for the 
cost of operation of such a program and ensure that these funds are used 
solely to support the program.
    (3) The program shall provide for public notice and a public comment 
period of at least 30 days for each permit, significant permit 
modification, and permit renewal, and shall include submittal to EPA of 
each permit, significant permit modification, and permit renewal.
    (4) The program shall provide EPA at least 45 days from receipt of a 
permit, modification, or renewal for EPA review and objection prior to 
issuance. The program shall provide that if EPA objects to a permit sent 
to EPA for review, CNMI cannot issue such permit until the permit is 
revised in a manner that resolves EPA's objections. The program will 
provide that CNMI will have no more than 180 days to resolve EPA's 
objections and that if the objections are not resolved within that time 
period, EPA shall issue the permit under 40 CFR part 71.
    (5) The program shall provide that all documents other than 
confidential business information will be made available to the public.
    (6) The program shall provide CNMI with the authority to enforce 
permits, including the authority to assess civil and criminal penalties 
up to $10,000 per day per violation and to enjoin activities that are in 
violation of the permit, the program, or the Act without first revoking 
the permit.
    (7) The program shall require that owners or operators of nonmajor 
sources of hazardous air pollutants that are required to obtain title V 
permits, and owners or operators of major sources of all other air 
pollutants as defined at 40 CFR 70.2 that are exempted from 40 CFR part 
71 under paragraph (a) of this section, obtain an operating permit under 
the approved program. The program shall include a schedule for issuing 
permits to all subject sources within three years of EPA approval of the 
program.
    (8) The program shall include a system of regular inspections of 
permitted sources, a system to identify any unpermitted major sources, 
and guidelines for appropriate responses to violations.
    (9) The program shall provide for the issuance of permits with a 
fixed term that shall not exceed five years.
    (10) The program shall allow CNMI or the EPA to reopen a permit for 
cause. The program shall provide that if EPA provides CNMI with written 
notice that a permit must be reopened for cause, CNMI shall issue a 
revised permit within 180 days (including public notice and comment) 
that sufficiently addresses EPA's concerns. The program shall provide 
that if CNMI fails to issue a permit that resolves EPA's concerns within 
180 days, then EPA will terminate, modify, or revoke and reissue the 
permit under part 71 after providing the permittee and the public with 
notice and opportunity for comment.
    (c) Ambient air quality program. CNMI shall implement the following 
program to protect attainment of National Ambient Air Quality Standards 
(NAAQS) as a condition of the waiver:
    (1) CNMI shall enforce its January 19, 1987 Air Pollution Control 
(APC) regulations, including the requirement that all new or modified 
sources comply with the NAAQS and Prevention of Significant 
Deterioration (PSD) increments.

[[Page 204]]

    (2) CNMI may conduct air emissions modeling, using EPA guidelines, 
for power plants located on Saipan to assess EPA's preliminary 
determination of non-compliance with the NAAQS for sulfur dioxide 
(SO2). CNMI shall complete and submit any additional modeling 
to EPA by January 13, 1998 to determine whether existing power plants 
cause or contribute to violation of the NAAQS and PSD increments in the 
APC regulations and 40 CFR 52.21.
    (3) If CNMI's additional modeling, based on EPA guidelines, predicts 
exceedances of the NAAQS for SO2, or if CNMI elects to accept 
EPA's preliminary determination that the NAAQS for SO2 have 
been exceeded, CNMI shall submit a revised SIP that ensures compliance 
with the NAAQS for SO2. CNMI shall submit the proposed 
revision to the SIP by January 13, 1998 or, if CNMI elects to conduct 
additional modeling, by January 13, 1999. CNMI shall take appropriate 
corrective actions through the SIP to demonstrate compliance with the 
NAAQS for SO2 by January 15, 2001.
    (d) State Implementation Plan (SIP) submittal. In conjunction with 
the submittal of the alternative operating permit program, CNMI shall, 
no later than January 13, 1999 submit a revision to its SIP that 
provides that a person shall not violate a permit condition or term in 
an operating permit that has been issued under an EPA approved alternate 
operating permit program adopted by CNMI pursuant to the exemption 
authorized in this Sec. 69.32.
    (e) Expiration and revocation of the exemption. This exemption shall 
expire or may be revoked under the following circumstances:
    (1) If CNMI fails to submit the required alternate operating permit 
program or any required SIP revision by January 13, 1999, the exemption 
shall automatically expire with no further rulemaking and 40 CFR part 71 
shall become effective for all subject sources in CNMI on that date, 
consistent with paragraph (c)(3) of this section.
    (2) In the event that EPA disapproves CNMI's alternate operating 
permit program because the program does not meet the requirements set 
forth in paragraph (b) of this section, EPA will revoke the exemption by 
rulemaking.
    (3) If, by January 13, 2003, the owner or operator of any subject 
source has not obtained a federally enforceable operating permit under 
an EPA approved program, the exemption shall automatically expire for 
such source and such source shall be subject to the permitting 
requirements of 40 CFR part 71. CNMI will work with EPA to identify such 
sources prior to expiration of the exemption under this paragraph (e).
    (4) EPA shall revoke the exemption in its entirety through 
rulemaking if CNMI does not adequately administer and enforce an 
alternate operating permit program approved by EPA.
    (5) EPA shall revoke the exemption by rulemaking with respect to the 
owner or operator of any source if, during the 45-day review period, EPA 
objects to issuance of a permit and CNMI fails to resolve EPA's 
objections within 180 days. EPA shall also revoke the exemption by 
rulemaking for the owner or operator of any source in the event that EPA 
reopens a permit for cause and CNMI does not issue a permit that 
resolves the concerns as set forth in EPA's notice to reopen within 180 
days.
    (6) EPA reserves its authority to revoke or modify this exemption in 
whole or in part.
    (f) Scope of the exemption. This exemption applies solely to the 
requirement that an owner or operator obtain an operating permit under 
title V of the Clean Air Act and the requirement that CNMI implement a 
title V permit program. In addition, this exemption does not apply to 
owners or operators of sources set forth in paragraph (a)(4) of this 
section. Owners and operators of air pollutant sources are required to 
comply with all other applicable requirements of the Clean Air Act. For 
purposes of complying with any applicable requirement that is triggered 
or implemented by the approval of a title V permit program, the approval 
date for owners or operators to which this exemption applies shall be 
the date that EPA approves the alternate program for each territory or, 
for owners or operators of sources that are subject to 40 CFR part 71, 
the approval date

[[Page 205]]

shall be the effective date of 40 CFR part 71, which is July 31, 1996.

[61 FR 58292, Nov. 13, 1996; 61 FR 66077, Dec. 16, 1996]