[Code of Federal Regulations]
[Title 40, Volume 14]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR72.72]

[Page 70-73]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 72--PERMITS REGULATION--Table of Contents
 
              Subpart G--Acid Rain Phase II Implementation
 
Sec. 72.72  Criteria for State operating permit program.

    A State operating permit program (including a State Acid Rain 
program) shall meet the following criteria. Any aspect of a State 
operating permits program or any implementation of a State operating 
permit program that fails to meet these criteria shall be grounds for 
nonacceptance or withdrawal of all or part of the Acid Rain portion of 
an approved State operating permit program by the Administrator or for 
disapproval or withdrawal of approval of the State operating permit 
program by the Administrator.
    (a) Non-Interference with Acid Rain Program. The State operating 
permit program shall not include or implement any measures that would 
interfere with the Acid Rain Program. In particular, the State program 
shall not restrict or interfere with allowance trading and shall not 
interfere with the Administrator's decision on an offset plan. Aspects 
and implementation of the State program that would constitute 
interference with the Acid Rain Program, and are thus prohibited, 
include but are not limited to:
    (1) Prohibitions, inconsistent with the Acid Rain Program, on the 
acquisition or transfer of allowances by an affected unit under the 
jurisdiction of the State permitting authority;

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    (2) Restrictions, inconsistent with the Acid Rain Program, on an 
affected unit's ability to sell or otherwise obligate its allowances;
    (3) Requirements that an affected unit maintain a balance of 
allowances in excess of the level determined to be prudent by any 
utility regulatory authority with jurisdiction over the owners of the 
affected unit;
    (4) Failing to notify the Administrator of any State administrative 
or judicial appeals of, or decisions covering, Acid Rain permit 
provisions that might affect Acid Rain Program requirements;
    (5) Issuing an order, inconsistent with the Acid Rain Program, 
interpreting Acid Rain Program requirements as not applicable to an 
affected source or an affected unit in whole or in part or otherwise 
adjusting the requirements;
    (6) Withholding approval of any compliance option that meets the 
requirements of the Acid Rain Program; or
    (7) Any other aspect of implementation that the Administrator 
determines would hinder the operation of the Acid Rain Program.
    (b) The State operating permit program shall require the following 
provisions, which are adopted to the extent that this paragraph (b) is 
incorporated by reference or is otherwise included in the State 
operating permit program.
    (1) Acid Rain Permit Issuance. Issuance or denial of Acid Rain 
permits shall follow the procedures under this part, part 70 of this 
chapter, and, for combustion or process sources, part 74, including:
    (i) Permit application--(A) Requirement to comply. (1) The owners 
and operators and the designated representative for each affected 
source, except for combustion or process sources, under jurisdiction of 
the State permitting authority shall be required to comply with subparts 
B, C, and D of this part.
    (2) The owners and operators and the designated representative for 
each combustion or process source under jurisdiction of the State 
permitting authority shall be required to comply with subpart B of this 
part and subparts B, C, D, and E of part 74 of this chapter.
    (B) Effect of an Acid Rain permit application. A complete Acid Rain 
permit application, except for a permit application for a combustion or 
process source, shall be binding on the owners and operators and the 
designated representative of the affected source, all affected units at 
the source, and any other unit governed by the permit application and 
shall be enforceable as an Acid Rain permit, from the date of submission 
of the permit application until the issuance or denial of the Acid Rain 
permit under paragraph (b)(1)(vii) of this section.
    (ii) Draft Permit. (A) The State permitting authority shall prepare 
the draft Acid Rain permit in accordance with subpart E of this part and 
part 76 of this chapter or, for a combustion or process source, with 
subpart B of part 74 of this chapter, or deny a draft Acid Rain permit.
    (B) Prior to issuance of a draft permit for a combustion or process 
source, the State permitting authority shall provide the designated 
representative of a combustion or process source an opportunity to 
confirm its intention to opt-in, in accordance with Sec. 74.14 of this 
chapter.
    (iii) Public Notice and Comment Period. Public notice of the 
issuance or denial of the draft Acid Rain permit and the opportunity to 
comment and request a public hearing shall be given by publication in a 
newspaper of general circulation in the area where the source is located 
or in a State publication designed to give general public notice. 
Notwithstanding the prior sentence, if a draft permit requires the 
affected units at a source to comply with Sec. 72.9(c)(1) and to meet 
any applicable emission limitation for NOX under Secs. 76.5, 
76.6, 76.7, 76.8, or 76.11 of this chapter and does not include for any 
unit a compliance option under Sec. 72.44, part 74 of this chapter, or 
Sec. 76.10 of this chapter, the State permitting authority may, in its 
discretion, provide notice by serving notice on persons entitled to 
receive a written notice and may omit notice by newspaper or State 
publication.
    (iv) Proposed permit. The State permitting authority shall 
incorporate all changes necessary and issue a proposed Acid Rain permit 
in accordance with

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subpart E of this part and part 76 of this chapter or, for a combustion 
or process source, with subpart B of part 74 of this chapter, or deny a 
proposed Acid Rain permit.
    (v) Direct proposed procedures. The State permitting authority may, 
in its discretion, issue, as a single document, a draft Acid Rain permit 
in accordance with paragraph (b)(1)(ii) of this section and a proposed 
Acid Rain permit and may provide public notice of the opportunity for 
public comment on the draft Acid Rain permit in accordance with 
paragraph (b)(1)(iii) of this section. The State permitting authority 
may provide that, if no significant, adverse comment on the draft Acid 
Rain permit is timely submitted, the proposed Acid Rain permit will be 
deemed to be issued on a specified date without further notice and, if 
such significant, adverse comment is timely submitted, a proposed Acid 
Rain permit or denial of a proposed Acid Rain permit will be issued in 
accordance with paragraph (b)(1)(iv) of this section. Any notice 
provided under this paragraph (b)(1)(v) shall include a description of 
the procedure in the prior sentence.
    (vi) Acid Rain Permit Issuance. Following the Administrator's review 
of the proposed Acid Rain permit, the State permitting authority shall 
or, under part 70 of this chapter, the Administrator will, incorporate 
any required changes and issue or deny the Acid Rain permit in 
accordance with subpart E of this part and part 76 of this chapter or, 
for a combustion or process source, with subpart B of part 74 of this 
chapter.
    (vii) New Owners. An Acid Rain permit shall be binding on any new 
owner or operator or designated representative of any source or unit 
governed by the permit.
    (viii) Each Acid Rain permit (including a draft or proposed permit) 
shall contain all applicable Acid Rain requirements, shall be a complete 
and segregable portion of the operating permit, and shall not 
incorporate information contained in any other documents, other than 
documents that are readily available.
    (ix) No Acid Rain permit (including a draft or proposed permit) 
shall be issued unless the Administrator has received a certificate of 
representation for the designated representative of the source in 
accordance with subpart B of this part.
    (x) Except as provided in Sec. 72.73(b) and, with regard to 
combustion or process sources, in Sec. 74.14(c)(6) of this chapter, the 
State permitting authority shall issue or deny an Acid Rain permit 
within 18 months of receiving a complete Acid Rain permit application 
submitted in accordance with Sec. 72.21 or such lesser time approved 
under part 70 of this chapter.
    (2) Permit Revisions. In acting on any Acid Rain permit revision, 
the State permitting authority shall follow the provisions and 
procedures set forth at subpart H of this part.
    (3) Permit Renewal. The renewal of an Acid Rain permit for an 
affected source shall be subject to all the requirements of this subpart 
pertaining to the issuance of permits.
    (4) Acid Rain Program Forms. In developing the Acid Rain portion of 
the operating permit, the permitting authority shall use the applicable 
forms or other formats prescribed by the Administrator under the Acid 
Rain Program; provided that the Administrator may waive this requirement 
in whole or in part.
    (5) Acid Rain Appeal Procedures. (i) Appeals of the Acid Rain 
portion of an operating permit issued by the State permitting authority 
that do not challenge or involve decisions or actions of the 
Administrator under this part or part 73, 74, 75, 76, 77, or 78 of this 
chapter shall be conducted according to procedures established by the 
State in accordance with part 70 of this chapter. Appeals of the Acid 
Rain portion of such a permit that challenge or involve such decisions 
or actions of the Administrator shall follow the procedures under part 
78 of this chapter and section 307 of the Act. Such decisions or actions 
include, but are not limited to, allowance allocations, determinations 
concerning alternative monitoring systems, and determinations of whether 
a technology is a qualifying repowering technology.
    (ii) [Reserved]

[[Page 73]]

    (iii) The State permitting authority shall serve written notice on 
the Administrator of any State administrative or judicial appeal 
concerning as Acid Rain provision of any operating permit or denial of 
an Acid Rain portion of any operating permit within 30 days of the 
filing of the appeal.
    (iv) Any State administrative permit appeals procedures shall ensure 
that the Administrator may intervene as a matter of right in any permit 
appeal involving an Acid Rain permit provision or denial of an Acid Rain 
permit.
    (v) The State permitting authority shall serve written notice on the 
Administrator of any determination or order in a State administrative or 
judicial proceeding that interprets, modifies, voids, or otherwise 
relates to any portion of an Acid Rain permit.
    (vi) A failure of the State permitting authority to issue an Acid 
Rain permit in accordance with Sec. 72.73(b)(1) or, with regard to 
combustion or process sources, Sec. 74.14(b)(6) of this chapter shall be 
ground for filing an appeal.

[58 FR 3650, Jan. 11, 1993, as amended at 60 FR 17113, Apr. 4, 1995; 62 
FR 55482, Oct. 24, 1997; 66 FR 12978, Mar. 1, 2001]