GUIDELINES FOR IMPLEMENTATION OF SECTION 507 OF THE 

1990 CLEAN AIR ACT AMENDMENTS

FINAL GUIDELINES

U.S. EPA

Office of Air Quality Planning and Standards

Office of Air and Radiation

Research Triangle Park, NC 27711

January 1992

iii

TABLE OF CONTENTS

PREFACE ........................... v

1.0 INTRODUCTION ...................... 1

1.1 EPA Obligations Under Section 507 ......... 2

1.2 State Obligations Under Section 507 ........ 6

2.0 GENERAL REQUIREMENTS FOR SIP APPROVAL ......... 12

3.0 COMPONENTS OF A STATE SMALL BUSINESS STATIONARY SOURCE

TECHNICAL AND ENVIRONMENTAL COMPLIANCE ASSISTANCE PROGRAM

(PROGRAM) ....................... 17

3.1 Designation of a State Office to Serve as Ombudsman

For Small Business ................ 17

3.2 Establishment of a Small Business Assistance

Program (SBAP) .................. 20

3.2.1 Methods for Disseminating Technical and

Compliance Information to Small

Businesses ............... 21

3.2.2 Assistance to Small Businesses on Methods

of Pollution Prevention and Accidental

Release Prevention and Detection .... 26

3.2.3 Pollution Prevention .......... 28

3.2.4 Methods for Notifying Small Businesses of

their Rights on a Timely Basis ..... 31

3.2.5 Establishment of an Audit Program .... 32

3.2.6 Procedures for Consideration of Requests

from Small Business Stationary Sources

for Modifications of Work Practices or

Technological Methods of Compliance ... 33

3.3 Establishment of State Compliance Advisory Panels . 34

3.3.1 Authority and Functions of the State

Compliance Advisory Panel ........ 34

3.3.2 Selection of Panel Members ....... 35

3.3.3 Implementation of the Compliance Advisory

Panel .................. 35

APPENDIX A ......................... 37

APPENDIX B ......................... 40

APPENDIX C ......................... 42

APPENDIX D ......................... 45
iv

LIST OF TABLES AND FIGURES

Table 1 Major Stationary Sources as Defined in Titles I and III of

the Act ......................... 9

Table 2 Ways of Implementing the Proactive and Reactive Components

of

 Information Dissemination to Small Businesses 27

Figure 1 Information Transfer System on Compliance and

 Technology Information ........... 25
v

PREFACE

Implementation of the provisions of the 1990 Clean Air Act

Amendments (Amendments) will more likely require regulation of

small businesses in order to attain and maintain the national

ambient air quality standards (NAAQS) and control air toxic

emissions. These small businesses frequently lack the technical

expertise and financial resources necessary to evaluate State

regulations and determine the appropriate mechanisms for

compliance. The Congress, in anticipation of this new burden on

small businesses, added provisions designed to be implemented by

the Environmental Protection Agency (EPA) and the States to provide

technical assistance and compliance information to small

businesses. This document is intended to delineate the Federal and

State roles in meeting these new statutory provisions and to

provide guidance to the States on submitting an acceptable State

implementation plan (SIP).

The material included in this document is meant to provide

guidance to States in the adoption of a Small Business Stationary

Source Technical and Environmental Compliance Assistance Program.

The EPA describes the statutory requirements set forth in section

507 of the amended Clean Air Act (Act) and presents recommended

interpretations of those requirements. The State must comply with

all statutory requirements of the Act however, to the extent that

EPA is interpreting the Act requirements, these interpretations are

not binding on the States, and EPA will independently evaluate each

State plan in light of the Act's requirements.

Section 507 of the Amendments (42 U.S.C. §2661f) requires each

State to submit a revision to the federally-approved SIP by

November 15, 1992 to establish a Small Business Stationary Source
vi

Technical and Environmental Compliance Assistance Program. Failure

of the States to adequately respond could result in the imposition

of one or more penalties (sanctions) included in the statute. The

EPA recognizes that most States have active technical support

programs to assist regulated sources. The EPA encourages States to

continue any ongoing technical and compliance assistance programs

and, wherever possible, to include all appropriate State agencies

in the process of proactive and reactive support to small

businesses. The EPA interprets the statute as granting the States

substantial flexibility in designing and implementing programs to

assist applicable sources. The EPA has designed its guidance, as

set forth in the following chapters, such that it does not

overburden the States with prescribed methods of meeting the

statute. The EPA believes that States and associated local

agencies are the best sources of information to small businesses

and can provide the most efficient service to the regulated

community. Although the Act does not require local agencies to

develop small business technical and compliance assistance

programs, the States may find it appropriate to cooperatively work

with such local agencies whenever such agencies can be supportive

of the SIP required program.

The EPA desires that States be as innovative as possible in

program design and implementation. To that end, the Agency is

examining some of the existing technical assistance programs at

State and local levels designed to provide general and/or specific

technical support to small businesses. While these programs may

not have been designed to meet the provisions of section 507 or may

address environmental pollutants other than those encompassed by

the Act, these programs can demonstrate the approaches envisioned

by section 507. The EPA will provide this information to States as

soon as it is available. In the interim, EPA encourages State-to-
vii

State communications to investigate methods for providing proactive

and reactive support to small businesses.

The following three terms used in this guideline are important

to understand: State office to serve as Ombudsman for small

business (Small Business Ombudsman); the small business assistance

program (SBAP); and the Compliance Advisory Panel. The combination

of these three terms is referred to as the PROGRAM. The core of

the PROGRAM is the SBAP, where the actual assistance to small

businesses occurs. The Small Business Ombudsman is to serve as a

representative for small businesses in the implementation of the

State's responsibility under section 507. The Compliance Advisory

Panel is to render advisory opinions, submit reports to EPA on the

PROGRAM effectiveness, and review information to assure that it is

understandable by the layperson.
1

1.0 INTRODUCTION

Congress adopted Title V, section 507, of the Amendments for the

purpose of ensuring that small businesses would have access to the

technical and compliance information necessary to comply with the

Act. Toward achieving this objective, section 507 includes

requirements that apply to the EPA as well as other requirements

that States must meet. In addition to these mandated requirements,

section 507 also provides EPA and States with the opportunity to

exercise discretion in certain areas of program implementation.

Summaries of the EPA and State mandatory and discretionary

provisions contained in section 507 are presented in Subchapters

1.1 and 1.2, respectively. To assist States in meeting both the

mandatory and discretionary provisions contained in section 507,

EPA has developed this guidance document for States to use in

developing and implementing a small business technical and

environmental compliance assistance program (herein referred to as

the "PROGRAM"). In general, the PROGRAM includes three key

components: (component #1) the designation of a State office to

serve as Ombudsman for small businesses in connection with the

implementation of the Act; (component #2) the establishment of a

small business assistance program (SBAP) for providing technical

and compliance assistance to small businesses; and (component #3)

the creation of a Compliance Advisory Panel for determining the

overall effectiveness of the SBAP.

Chapter 2.0 of this guidance document describes the general

requirements for States to follow in providing a demonstration to

EPA of the adequacy of their PROGRAM in order to receive approval

of the PROGRAM as part of the SIP. Chapter 3.0 addresses the three

key components of a State's PROGRAM.
2

1.1 EPA Obligations Under Section 507

Within nine months after enactment of the Amendments, section

507(b) requires EPA to establish a Federal program. The functions

of the program will include (1) assisting States in developing a

small business technical and environmental compliance assistance

program; (2) issuing technical guidance for the States to use

during implementation of the PROGRAM, including guidance on

alternative control technologies, pollution prevention, and

accidental release prevention methods for small business stationary

sources; and (3) providing for the implementation of a portion of

the PROGRAM under section 507(a)(4) if a State fails to submit such

a program. Toward meeting the first requirement, EPA is issuing

this guideline document. Furthermore, EPA will follow-up with

individual assistance to States that request such help. States are

encouraged to work with the appropriate EPA Regional Office to

resolve issues or to discuss additional interpretations of these

provisions. In order for EPA to meet its second obligation of

providing technical assistance to States, EPA is utilizing its

current technical support services such as the Control Technology

Center (CTC), the Emissions Measurement Technical Information

Center (EMTIC), the Emergency Planning and Community Right-to-Know

Hotline, and the Pollution Prevention Information Clearinghouse

(PPIC). A brief description of these services is provided in the

following paragraph. These technical support centers and offices

can provide the States with up-to-date information on new methods,

control techniques, and upcoming regulations. In meeting the third

requirement, EPA is designing and will operate a small business

technical and compliance assistance program by utilizing

contractors under EPA supervision and the aforementioned technical

support services, which will be available if a State fails to

implement the provisions of section 507.
3

The EPA currently has various technical support services that

the Agency anticipates will be able to provide technical assistance

to the States. The CTC is a no-cost, technical assistance service

for all State and local air pollution control agencies and Regional

Offices. It offers quick access to EPA experts via the CTC Hotline

and in-depth technical support through source-specific engineering

assistance projects. The EMTIC is an information exchange network

for the promotion of consistent, uniform application of stationary

source emission test methods in the development and enforcement of

emission control programs on a national basis. The Emergency

Planning and Community Right-to-Know Hotline provides ancillary

technical services for EPA's Chemical Emergency Preparedness and

Prevention Office (CEPPO). The CEPPO is primarily responsible for

programs involving accidental releases of hazardous chemical

substances. Under the authority of the Emergency Planning and

Community Right-to-Know Act of 1986 or SARA Title III, CEPPO helps

States and local entities plan what to do in the event of a

chemical emergency. The CEPPO's purview also extends to fostering

the prevention and minimization of the consequences of accidental

releases, mainly under the accidental release provisions of the

Amendments. The prevention program, in particular, contains a

strong outreach component directed to smaller businesses that

manufacture, store, distribute, or use hazardous chemicals in other

ways. Its aim is to increase the understanding and application of

good prevention practices and technologies, using an approach known

as chemical process safety management. The Emergency Planning and

Community Right-to-Know Hotline answers questions concerning

chemical accident prevention and the accidental release provisions

of the Amendments. It also deals with questions concerning

chemical emergency preparedness and other questions related to SARA

Title III. The Hotline staff can be reached at 1-800-535-0202.

Finally, PPIC provides information on pollution prevention programs

through a variety of activities including a hard copy reference
4

library, an electronic database, a toll-free Hotline, and other

outreach efforts such as distributing information packets and

conducting workshops.

Other services provided by the EPA will include (1) coordination

with the Federal regulatory development programs within EPA and

other involved agencies to assure that small business needs and

permitting issues are addressed during standards setting and

control techniques guideline (CTG) development; (2) preparation of

small business instructional materials along with the development

of any standards or CTGs that present the information in easy-tounderstand language (to include sample permits, simplified permit

application instructions, etc.); (3) preparation of alternative

control techniques (ACT) documents for sources that are affected by

State programs but are not expected to be regulated by Federal

programs in the near future (efforts will be concentrated in those

areas that will benefit the most States); and (4) coordination with

State SBAPs to develop, as necessary and appropriate, materials for

other small businesses.

In addition to these general requirements, section 507(c)

contains a discretionary provision that allows EPA to consider

modifications to the eligibility criteria for determining if

certain small businesses may be excluded from the requirements of

section 507, or if small businesses have the technical and

financial capability to meet the requirements of the Act without

the application of Section 507. The Agency will evaluate a State's

request to exclude sources from the SBAP based upon the statutory

reasons for including such sources for technical assistance, i.e.,

financial and technical capability to assess control alternatives.

In exercising this discretion, EPA must provide notice and an

opportunity for public comment and consultation with the

Administrator of the Small Business Administration (SBA).
5

Under section 507(d), EPA must establish a monitoring program

through the EPA Ombudsman's Office to monitor the effectiveness of

each State PROGRAM under section 507. In so doing, Congress has

charged EPA with a continuing oversight responsibility. To this

end, EPA has established an Ombudsman through the Office of Small

and Disadvantaged Business Utilization in the Office of the

Administrator to monitor and report to Congress on the

effectiveness of this program. This Office can be reached at 703-

305-5938. The EPA Ombudsman is required to (1) render advisory

opinions on the overall effectiveness of each State PROGRAM; (2)

report periodically to Congress on the compliance status of the EPA

and State agencies with the requirements of the Paperwork Reduction

Act, the Regulatory Flexibility Act, and the Equal Access to

Justice Act (see next paragraph below); (3) review information

(e.g., enabling documents) issued by the responsible Federal and

State PROGRAM officials to ensure that it is understandable to the

layman; and (4) have the responsible Federal and State PROGRAM

officials serve as the secretariat for the development and

dissemination of reports to Congress and advisory opinions. The

EPA's Small Business Ombudsman Office would extend its program to

small businesses in that particular State, to the extent resources

permit, if that State fails to designate a State office as

Ombudsman to small businesses. In addition, the EPA Regional

Offices maintain a small business liaison for assisting States on

matters relating to all environmental media. A listing of these

Regional contacts is contained in Appendix A.

The statute requires the EPA Ombudsman (and the State Compliance

Advisory Panel) to monitor each State PROGRAM for compliance with

the Paperwork Reduction Act, the Regulatory Flexibility Act, and

the Equal Access to Justice Act. As such, the Agency will monitor
6

the State PROGRAM to determine whether it is following the broad

intent of these provisions.

In carrying out this oversight responsibility, there are a

number of questions that may help EPA evaluate the efficacy of each

State PROGRAM. Examples of some potentially relevant questions are

contained in Appendix B.

Where the Agency has the responsibility for permitting and

collecting fees, EPA may reduce the fees required under the Act for

small business stationary sources by considering their available

financial resources [section 507(f)]. While EPA has not

established specific criteria to be used in the process of

determining whether fee reduction is appropriate, the Agency will

be guided by the statutory intent that such fees not detract from

the implementation of control objectives. Requests for fee

reductions will be assessed on a case-by-case basis. The Agency

does not intend of its own volition to grant broad fee reductions

for small businesses. Further, EPA is obligated under the Act to

(1) consider the necessity and appropriateness of continuous

emissions monitoring (CEM) requirements for small business

stationary sources when developing regulations and CTGs that

require CEMs pursuant to the Act [section 507(g)]; and (2) consider

the size, type, and technical capabilities of small business

stationary sources in the development of CTGs for small business

stationary sources [section 507(h)].

1.2 State Obligations Under Section 507

States are required to establish and implement a PROGRAM as part

of the State's responsibility to have a fully-approved and

implemented SIP. The SIP revisions which incorporate this PROGRAM

must be submitted to EPA within 24 months after enactment of the
7

Amendments (by November 15, 1992). The Agency interprets the Act

as requiring the State to submit, as a SIP revision, plans for

establishing its PROGRAM. These plans should provide for timely

phasing in of the program elements with implementation to fully

comply with the statutory provisions of the PROGRAM by the

effective date of the State's operating permit program -- i.e., not

later than November 15, 1994. This timing is necessary so that

small businesses that will be subject to the permit requirements

will have available the guidance the PROGRAM is required to

provide. As discussed in Chapter 2.0, in order to receive approval

of the section 507 portion of the SIP, the State must submit

schedules and commitments to have in place and/or to have

operational all elements of the PROGRAM. These program elements

are discussed below. Where the State chooses to submit schedules

and commitments as the plan, these schedules and commitments must

specify how and when each element will be placed into full

operation (i.e., the Governor may not have specific authority to

initiate a particular element, and the plan must demonstrate the

efforts to gain legislative approval and subsequent implementation

if the Governor does not presently have specific authority to

initiate an element of the PROGRAM).

In reviewing and approving section 507 SIP revisions submitted

by the State, EPA will fully approve each program element that is

either fully implemented in accordance with the statute and this

guideline, or for which the schedules and commitments will ensure

implementation by November 1994. Elements of submitted PROGRAMS

for which the State submits a schedule and commitment will be

evaluated against the principles established by the statute and

this guideline.
8

The following program elements must be addressed in the SIP

revision in order to satisfy the requirements of section 507(a)

regarding implementation of the PROGRAM:

1. Development, collection, and coordination of

information on compliance methods and

technologies for small business stationary

sources.

2. Assistance to small business stationary sources

on methods of pollution prevention and accidental

release prevention and detection, including

providing information concerning alternative

technologies, process changes, products and

methods of operation that help reduce air

pollution.

3. Designation of a State office to serve as an

Ombudsman for small businesses in implementing

the requirements of the Act. 

4. Establishment of a small business stationary

source compliance assistance program for

determining applicable requirements and permit

issuance.

5. Adequate mechanisms for notifying small business

stationary sources on a timely basis of their

rights under the Act.

6. Adequate mechanisms for informing small business

stationary sources of their obligations under the

Act, including a program for referring sources to

qualified auditors or for the State to provide

for audits of the operations of such sources to

determine compliance with this Act.

7. Expedited procedures to respond to requests from

small business stationary sources for

modification of any work practice or technical

method of compliance, or schedule of milestones

for implementing such work practice or method of

compliance preceding any applicable compliance

date, based on the technological and financial

capability of any such small business stationary

source. No such modification may be granted

unless it is in compliance with the applicable
 "Regulated air pollutant" means the following: 1

(1) Nitrogen oxides (NOx) or any volatile organic compound.

(2) Any pollutant for which a national ambient air quality standard has

been promulgated.

(3) Any pollutant that is subject to any standard promulgated under

section 111 of the Act.

(4) Any Class I or II substance listed pursuant to section 602 of the Act.

(5) Any pollutant subject to a standard promulgated under section 112 or

other requirements established under section 112 of the Act, including

section 112(r).

(6) Any pollutant subject to requirements under section 112(j) of the Act. 

Such pollutant shall be considered to be regulated at the time the

Administrator does not promulgate a standard by the date established

pursuant to section 112(e) of the Act.

(7) Any pollutant for which the requirements of section 112(g)(2) of the

Act have been met, but only with respect to the individual source

subject to section 112(g)(2) requirement.

9

requirements of the Act including the

requirements of the SIP.

8. Creation of a Compliance Advisory Panel.

Unless otherwise approved by EPA, the plan must demonstrate that

all small business stationary sources will be eligible for

assistance under the State program. Section 507(c) defines a small

business stationary source as a stationary source that:

1. is owned or operated by a person that employs 100

or fewer individuals;

2. is a small business concern as defined in the

Small Business Act (see definition on page 10);

3. is not a major stationary source as defined in

Titles I and III of the Amendments (these

definitions are listed in Table 1);

4. does not emit 50 tons or more per year of any

regulated pollutant

; and 1

5. emits less than 75 tons per year of all regulated

pollutants.
10

This demonstration can take the form of enabling documents defining

eligible sources or State certification that eligible sources will

not be excluded from the PROGRAM without prior EPA approval.

Section 507(c) allows States, after notice and opportunity for

public comment, to extend the definition of eligible source to

include small business stationary sources which do not meet the

criteria of subparagraphs (3), (4), or (5) above, but do not emit

more than 100 tons per year of all regulated pollutants. As these

provisions of this guideline intend to establish minimum criteria,

the Agency does not intend to disapprove such expansions that fit

within the 507(c) exception. Should States fail to implement the

PROGRAM, however, EPA intends to implement the PROGRAM based upon

the statutory criteria.
 The EPA recognizes that several definitions exist for the term "major 2

stationary source." The EPA is including this definition in this

document to clearly define those sources for which the State is minimally

responsibile to provide technical and compliance assistance under Section

507.

 For this purpose, Title I treats volatile organic compounds (VOC's) and 3

oxides of nitrogen (NOx) sources differently. In areas qualifying for

an exemption under section 182(f), NOx sources with the potential to

emit less than 100 tpy would not be considered major sources under Part

D of Title I. In areas not qualifying for this exemption, NOx sources

are subject to the lower thresholds created by section 182(f). In ozone

transport regions, a lower threshold of 50 tpy for VOC sources is

created by section 184(b). Because section 182(f) does not refer to

section 184(b), the lower threshold in ozone transport regions applies

to VOC sources, but not to NOx sources. Whatever its location, any 100

tpy source would be considered a major source under section 302.

11

Table 1. Major Stationary Sources as Defined in Titles I and III

of the Amendments2

TITLE I

Sources subject to the nonattainment area provisions of Title

I, Part D, with the potential to emit pollutants in the following

or greater amounts:

 TONS PER

YEAR (tpy)

(i) Ozone (VOCs and NOx) 

3

Serious

50

Transport regions not

severe or extreme 50 (VOC only)

Severe

25

Extreme

10

(ii) Carbon monoxide

Serious (where stationary

sources contribute significantly) 50

(iii) Particulate Matter (PM-10)

Serious 70

TITLE III
12

Air toxics sources, as defined in section 112 of the

Act, with the potential to emit 10 tpy or more of

any hazardous air pollutant, 25 tpy or more of any

combination of hazardous air pollutants, or a lesser

quantity of a given pollutant if the Administrator

so specifies.
13

The Small Business Act defines a small business as any business

which is independently owned and operated and not dominant in its

field as defined by Small Business Administration (SBA) regulations

under section 3 of the Small Business Act. The definitions for a

small business under SBA regulations can be found in 13 CFR Part

121 and are listed by Standard Industrial Code (SIC) categories.

For further assistance in determining the size cut-off for defining

a small business, States should consult with the SBA's Office of

Policy Analysis. States may contact SBA's Office of Policy

Analysis at 202-205-6530.

Section 507(c)(3)(B) also allows States to exclude from the

small business stationary source definition under section 507 those

categories of small business stationary sources which the State

determines to have sufficient financial and technical support to

meet the requirements of the Act without the application of section

507. In exercising this discretion, States must provide notice and

opportunity for public comment and consult with the Administrator

of the EPA and the SBA. Such exclusions may not be implemented

unless approved by EPA as part of the appropriate SIP. In making

its determination, EPA will consult with the Administrator of SBA,

taking into consideration public comments received by the State,

and the State's demonstration that the class of sources to be

excluded are financially and technically capable of implementing

the Act.

Section 507(e) requires States to create a Compliance Advisory

Panel to carry out the same duties required by the EPA Small

Business Ombudsman. Given the short response time and the need to

coordinate with the legislature EPA believes that it is in the best

interest of the State to establish this panel as early as possible

in this process. However, as already discussed in this subchapter,
14

a State may submit a schedule committing the State to establish

this panel no later than November 1994.

Finally, section 507(f) allows States the flexibility to reduce

any fees required under the Act for small business stationary

sources by considering their available financial resources. The

basic intent of section 507 appears to suggest that States remove

or diminish the burdens imposed on small sources to assist in

complying with the provisions of the Act. Where States reduce

fees, however, the modification to the fee structure must

demonstrate that the effectiveness of the PROGRAM will not be

affected as a result.
15

2.0 GENERAL REQUIREMENTS FOR SIP APPROVAL

Under the Act, the State is not required to have the PROGRAM in

place at the time it submits the SIP revision, but rather to have

a plan for PROGRAM implementation. As a result, the State's

submittal should consist of a description of the activities the

State will undertake and the infrastructure established (or to be

established) to ensure each component of the PROGRAM is

accomplished (see Chapter 1.0). In order to receive EPA approval

of this required aspect of the SIP, the State should demonstrate

that the requirements in section 507 can be met by the

implementation of the State's existing and anticipated PROGRAM.

The submittal by the State must address each of the required eight

elements presented in Subchapter 1.2 and discuss how each of the

elements as implemented by the State will meet the requirements

established by the Act.

In addition to submitting the required plan revision to the

appropriate Regional Office no later than November 15, 1992, each

State must demonstrate that the submitted plan, including

implemented and yet-to-be implemented elements, is capable of

meeting the requirements of the Act. In contrast to other types of

plan revisions with clearly definable objectives (i.e., attainment

of the NAAQS), the demonstration is more of an abstract analysis of

how each element of the State program will work in concert with the

overall program to ensure that eligible small businesses are

provided with the technical assistance and compliance information

envisioned by section 507. As explained in Chapter 1.0, the State,

in addition to any elements which have been implemented, may submit

schedules and commitments as part of the submittal due on November

15, 1992. Schedules and commitments submitted must provide for

implementation of the full program, as defined in Chapter 3.0, not

later than November 15, 1994.
16

Although the Act requires the State to submit "plans for

establishing a [PROGRAM]" by November 15, 1992, the Act does not

specify when the PROGRAM must be fully implemented. However, since

States may begin to implement a federally enforceable source

operating permit PROGRAM by November 15, 1994, the Agency believes

it is necessary for States to have their PROGRAMs operational by

that time. Since many aspects of the PROGRAM concern informing the

States about and aiding them with the permit program requirements,

the States need to be prepared at that point to provide these

services.

In some cases, the measure of program adequacy is clear and

easily quantified (i.e., the designation of the State office to

serve as Ombudsman). In other cases, the demonstration is more

subjective (sources will have access to appropriate technical

information/staff to assist in complying with the statutory

provisions). In addition, in preparing these guidelines, EPA has

attempted to allow States the maximum degree of flexibility in

designing and implementing the PROGRAM. The easier option, from an

EPA review perspective, would have been to design a highly

prescriptive PROGRAM. While this would have simplified EPA's

review responsibility, such a PROGRAM would not have recognized the

differences in State infrastructures and could have imposed

substantial burdens on the States to design and implement this

PROGRAM. Since this program is substantially different from many

other SIP programs, it is logical for each State to ask, in advance

of the State's efforts to meet these requirements and design a

PROGRAM, what PROGRAM is acceptable to EPA in order to receive

approval of their State PROGRAM for incorporation into the

federally-approved SIP.

The State must demonstrate that the State PROGRAM clearly

addresses each of the eight statutorily mandated elements of the
17

PROGRAM. The PROGRAM described in Chapter 3.0 requires the State

to develop an information dissemination system accessible to small

businesses (PROGRAM component #2). The State must demonstrate that

it has in place and operational an accountability system that

serves small businesses in a reactive mode (i.e., that the system

components, however assembled and integrated, respond to requests

from eligible sources and provide such sources with the information

regarding compliance with State and Federal rules as required under

the Act). Section 507(a)(5) of the Act requires the State to

develop and implement "outreach" programs. The State must

therefore demonstrate a proactive aspect of the PROGRAM which

actively seeks to inform small businesses of these rights, as well

as the source's obligations under the Act. A PROGRAM without one

or the other of these modes of operation is not approvable. The

Act also requires the State to evaluate the effectiveness of the

State PROGRAM in achieving these objectives. The EPA will examine

the State-established procedures for internal PROGRAM review

designed to ensure maximum PROGRAM effectiveness. This internal

review process includes the Compliance Advisory Panel. It is

advisable that the Panel be functional at a time sufficiently in

advance of the time required for full PROGRAM implementation to

assist in the design and initial implementation of the PROGRAM,

such that the panel can effectively perform oversight of the

PROGRAM at a later date.

As noted in Chapter 1.0, two of the components of the PROGRAM

are the State Ombudsman and the SBAP. The EPA anticipates that the

primary responsibility for these activities will be placed within

State offices. The EPA does not prescribe the placement of the
 The term office is used interchangeably in this document to mean either 4

a specific, designated State official, the title of a State official, or

an organizational unit or department within the State's Executive

Branch.

18

Ombudsman Office or the office to be charged with implementation

4

of an SBAP.

An Ombudsman, as defined in Webster's dictionary, is a deputy

or representative. It would appear that Congress, in establishing

the requirement for designation of a State office to serve as

Ombudsman for small businesses (PROGRAM component #1), desired to

ensure that small businesses have a representative in the

infrastructure being established that understands the needs of

small businesses. As such, EPA believes that in designating the

office, States should carefully examine how this office can

represent the interests of small businesses, especially in relation

to ensuring that small businesses receive the technical and

compliance assistance demanded by section 507. As discussed in

Chapter 3.0, there are many duties that can be ascribed to the

Ombudsman. The critical test for EPA approval, with respect to

this element of the PROGRAM, will be whether (1) the designated

office is encumbered with activities that prevent it from

performing effectively; (2) sufficient expertise exists to

represent small businesses; and (3) no conflicts of interest exist

within the office that would prevent the Ombudsman from serving

effectively.

The Act requires that the State create a Compliance Advisory

Panel (PROGRAM component #3) for the primary purpose of performing

oversight of the State's section 507 responsibilities. In

submitting this component, the State must demonstrate that the

Panel is legally adopted and duly constituted as described in

section 507. The panel must be empowered to perform the statutory
19

function as explained in Chapter 3.0 and must be sufficiently

funded to carry out these responsibilities.

The EPA, in review of the State PROGRAM as prescribed in the

submitted SIP revision, will attempt to assess whether the PROGRAM

as designed by the State is capable of meeting the statutory

requirements. The EPA will assess each aspect of the SIP revision

as it relates to the goal of providing technical and compliance

assistance to the affected community. State assurances of PROGRAM

operational capability should clearly describe each PROGRAM element

and demonstrate coordinated action between organizations, whether

State or local agencies, wherever the responsibilities are

separate. To the extent that several different governmental units

are involved in implementation of the PROGRAM, the State should

demonstrate each office's responsibility and accountability under

the PROGRAM. In addition, the State must demonstrate the technical

capability and sufficient resource allocations for each office

charged with implementing any element of the PROGRAM. This

demonstration may take the form of a memorandum of understanding

between the various governmental units or directives issued by the

appropriate governmental authority.

In addition, the State must demonstrate that adequate legal

authority exists to implement the PROGRAM (i.e., interdepartmental

coordination, ability to establish and maintain the Compliance

Advisory Panel, etc.), that adequate commitment of resources exists

to implement the proposed PROGRAM (i.e., available staff,

established hotlines, designated Ombudsman, etc.), and that the

PROGRAM has been duly adopted and subjected to public review as

defined in the Act and 40 CFR Part 51, Subpart F. Where elements

of the PROGRAM are not in place at the time of SIP submittal, the

State must demonstrate activity to implement the element. This

could include, but would not be limited to, requests for
20

legislative authority to develop and implement the program

elements, budgetary requests for program support, allocation of

resources from fees collected, and contract bids for elements to be

supported by nongovernmental personnel.

Irrespective of the manner in which a State chooses to design

and implement the PROGRAM, it is incumbent upon the State to

demonstrate the PROGRAM capabilities in order to receive EPA

approval. As discussed previously, EPA believes that States should

be provided with the maximum degree of flexibility to develop and

implement this PROGRAM within the constraints of the statute. This

means that there is no single acceptable PROGRAM. In fact, EPA

anticipates that States will use many different and innovative

approaches to ensure that the appropriate information is available

to small businesses. The EPA recognizes that many State and local

agencies have provided technical assistance to the regulated

industry. The EPA trusts that States will be able to formalize

existing activities to meet many of the provisions of these

guidelines.
21

3.0 COMPONENTS OF A STATE SMALL BUSINESS STATIONARY SOURCE

TECHNICAL AND ENVIRONMENTAL COMPLIANCE ASSISTANCE PROGRAM

(PROGRAM)

To comply with the provisions of section 507 requiring States

to develop plans for establishing a PROGRAM, States must

incorporate three key components: (1) designating a State office to

serve as the Ombudsman for small businesses; (2) establishing a

Small Business Assistance Program (SBAP) that contains the

necessary procedures for meeting the objectives of section 507; and

(3) establishing a Compliance Advisory Panel for determining the

overall effectiveness of the SBAP. This chapter provides guidance

to States for implementing these three key components of the

PROGRAM. Specifically, Subchapter 3.1 provides guidance on the

establishment of a State office to serve as Ombudsman for small

business (Small Business Ombudsman) (PROGRAM component #1),

Subchapter 3.2 provides guidance for establishing an SBAP to

provide assistance to small businesses subject to the requirements

of the Act (PROGRAM component #2), and Subchapter 3.3 provides

guidance for establishing a Compliance Advisory Panel to provide

oversight of the PROGRAM (PROGRAM component #3).

3.1 Designation of a State Office to Serve as Ombudsman For

Small Business

The first key component which States must consider in

implementing a PROGRAM is the designation of a Small Business

Ombudsman. One of the primary functions of the Ombudsman is to

represent small businesses to the appropriate governmental

organizations. The following discussion describes methods for

satisfying the provisions of section 507(a)(3) for designating an

office within the State government to serve as an Ombudsman for

small business stationary sources.
22

In designating the Ombudsman the State may find it appropriate

to identify a specific State official or office. Recognizing that

many States may already have an existing Ombudsman office, the

State may desire to expand the current duties of the Ombudsman to

include representing small businesses as the State implements the

provisions of the Act. Prior to or simultaneously with designating

a specific official or State office, the State should ensure that

the office is provided adequate additional staff and funding to

effectively represent small businesses.

The EPA's review of the criteria set forth in Chapter 2.0 for

approval of any State office to serve as Ombudsman will consider

the following:

! Is the Office capable of representing small business

concerns to the State air pollution control agency? In

some cases, this may require independent status;

! Will the Office have direct access to individuals or other

government units to ensure the views and needs of small

business are considered? This may include access to the

Governor, the head of the State environmental control

authority, the head of the State economic developmental

agency, the Attorney General, or other secretary equivalent

level officers;

! Is the Office authorized to provide reports to and

communicate with appropriate personnel (e.g. State

Legislators, Governor's office, the head of the State

environmental control authority, the head of the State

economic developmental agency, the Attorney General, or

other secretary equivalent level officers)?;

! Is the Office granted sufficient independent authority to

identify problems and make recommendations as they relate to

implementation of the SBAP?

The EPA encourages the early appointment of the State Ombudsman

to assist in the development of the SBAP. In addition, early

involvement in the planning process will enable the Ombudsman to
23

assist in the oversight role ensuring that small business concerns

are represented. At a minimum, the SIP revision should either

clearly identify the placement of the Ombudsman and indicate that

this office has been designated prior to the date of the SIP

revision submittal or present a schedule based upon the necessary

steps to authorize establishment of the Ombudsman.

The State Ombudsman Office for small businesses, in order to

represent small business effectively, may be charged with the

following duties:

! Conduct independent evaluations of all aspects of the

SBAP;

! Review and provide comments and recommendations to the

EPA and State/local air pollution control authorities

regarding the development and implementation of

regulations that impact small businesses;

! Facilitate and promote the participation of small

businesses in the development of new regulations that

impact small businesses;

! Assist in providing reports to higher authorities and

the public regarding the applicability of the

requirements of the Act to small business;

! Aid in the dissemination of information (i.e., upcoming

air regulations, control technologies, etc.) to small

businesses and other interested parties;

! Participate in and sponsor meetings and conferences

with State/local regulatory officials, industry groups,

and small business representatives;

! Aid in investigating and resolving complaints and

disputes from small businesses against the State/local

air pollution control authorities; 

! Periodically review the work and services provided by

the SBAP with trade associations and small business

representatives;
24

! Operate a telephone Hotline (possibly toll-free) to

provide confidential help on individual source problems

and grievances;

! Refer small businesses to the appropriate specialists

in the SBAP where they may obtain information and

assistance on affordable alternative technologies,

process changes, products and operational methods to

help reduce air pollution and accidental releases;

! Arrange for and assist in the preparation of guideline

documents by the SBAP to ensure that the language is

readily understandable by the lay person;

! Work with trade associations and small businesses to

bring about voluntary compliance with regulations under

the Act;

! Interface with Regional and State offices of the Small

Business Administration, the Department of Commerce

and/or other State and Federal agencies that may have

programs to financially assist small businesses in need

of funds to comply with environmental regulations;

! Interface with private sector financial institutions to

assist small businesses in locating sources of funds to

comply with State/local air pollution control

requirements; and

! Conduct studies to evaluate the impacts of the Act on

the State's economy, local economies, and small

businesses. 

States are encouraged to establish a network for sharing

information on small businesses. These efforts could be

coordinated through the Ombudsman's office.

3.2 Establishment of a Small Business Assistance Program (SBAP)

The second key component that States must consider in

implementing a PROGRAM is the establishment of an SBAP. The SBAP

should provide sufficient communications with small businesses
25

through the collection and dissemination of information to the

small business on matters of (1) determining applicable

requirements under the Act and permit issuance; (2) the rights of

small businesses under the Act; (3) compliance methods and

acceptable control technologies; (4) pollution prevention and

accidental release prevention and detection; and (5) audit

programs. The SBAP should also act as an information clearinghouse

by referring small businesses to State technical experts

specifically trained to handle specific questions relevant to

achieving compliance with the Act. For example, the SBAP could

operate a toll-free telephone hotline to respond to inquiries from

small businesses. Small businesses could learn about the services

provided by the SBAP either through direct contact with the SBAP or

through information outreach programs with such organizations as

industry groups and trade associations.

In general, the SBAP may be coordinated directly through or

under the direction of the State air pollution control agency as an

identifiable unit, but not be limited to this entity. For EPA to

approve an SBAP that is separate from the State air pollution

control agency, the State must demonstrate that the SBAP has the

technical staff necessary to provide the technical information

requested. A contact person(s) in the State SBAP should be

established and a toll-free Hotline is also recommended.

In establishing an SBAP in accordance with this chapter, States

must satisfy several of the required program elements listed in

Subchapter 1.2 under section 507(a). Specifically, these elements

are (1) developing, collecting, and coordinating information

exchange on compliance methods and control technologies; (2)

providing assistance to small business stationary sources with

pollution prevention and accidental release prevention and

detection; (3) providing assistance for determining applicable
26

requirements under the Act and permit issuance; (4) determining

adequate mechanisms for notifying small business stationary sources

of their rights under the Act on a timely basis; (5) determining

adequate mechanisms for informing small business stationary sources

of their obligations under the Act, including a program for

referring sources to qualified auditors or for the State to provide

for such audits to determine compliance with this Act; and (6)

procedures for considering requests from small business stationary

sources for modifications of work practices or technological

methods of compliance or compliance procedures. The SBAP would

provide information and/or compliance and technical assistance

relevant to each of these elements to small businesses.

Information relative to procedures for implementing each of these

required elements is contained in the following subchapters.

3.2.1 Methods for Disseminating Technical and Compliance

Information to Small Businesses

Each SIP revision developed in response to section 507 must

contain procedures for disseminating information (easily

understandable to the layman) on compliance issues and control

technologies. In addition, States must provide a means of handling

small business inquiries on specific methods for achieving

compliance with State air pollution control regulations. In

general, this flow of information process involves two components:

a proactive component and a reactive component. The proactive

component involves adequate communication with and information

outreach to small businesses in the form of easily discernable

information which specifically details their obligations under the

Act. The reactive component involves the establishment of a

clearinghouse for handling incoming inquiries from small businesses

regarding methods for achieving compliance with air pollution

control requirements under the Act. Ways in which the proactive
27

and reactive components of the information dissemination process

can be implemented are described in the following paragraphs.

In implementing the proactive aspect of information

dissemination, there are numerous ways information could be

disseminated to small businesses. One way would be for the State's

small business programs to prepare information packets which

describe in layman terms compliance and technical information

relevant to a small business stationary source's obligation under

the Act. These packets would be distributed to the small business

community via an outreach program. The outreach program would

consist of industry groups, trade associations, and other

organizations all assisting in distributing this information to

small businesses. Information packets could be mailed to small

businesses through the State air pollution control agency or

Ombudsman office. Public service announcements on small business

assistance could be made on the radio or TV. The State's pollution

prevention technical assistance program for small businesses, if

one exists, could be contacted to see how efforts on information

dissemination could be coordinated. Possibly, the pollution

prevention program could sponsor seminars or training to the small

business on the State's SBAP and its services. Additionally, the

use of the SBA, SBA field offices, State economic development

commissions, Senior Corps of Retired Executives (SCORE), Small

Business Institutes, State small business associations, major

chemical distributors, the Chamber of Commerce, local Emergency

Planning Committees, and small business development centers for

information and referral services should be considered as avenues

to assist small businesses in obtaining environmental and technical

information. It should be left to the State's air compliance

program, however, to provide answers or advice on questions about

regulations or permits.
28

Trade associations could also be encouraged to establish

"circuit riders" to reach out and assist small businesses with

generic problems. This type of outreach program could also be

invaluable in coordinating the preparation of permit applications.

By the time State outreach programs distribute informational

materials for small businesses, a system will need to be in place

for answering specific questions from small businesses concerning

regulatory requirements, appropriate control technologies, and

compliance monitoring equipment (if appropriate). In some

instances, the informational materials may never reach some small

businesses. Such small businesses may instead learn about the

State SBAP and the need to control or prevent air pollution through

contact with peers. In either case, small businesses will need to

direct their questions to an information clearinghouse. The

following describes ways of implementing the reactive component of

the information dissemination process.

As stated earlier, the State should establish a contact

person(s) within the SBAP, and a toll-free Hotline is recommended.

This contact person(s) and/or Hotline could direct incoming phone

calls to a core group of State technical experts (assigned specific

areas of expertise based on their experience and training

backgrounds) to provide the appropriate technical assistance to

small businesses. The EPA anticipates that the technical experts

relied upon will be part of the present technical staff in the

State air program control agency. Each technical expert would have

a thorough knowledge of the methods, control technologies,

approaches, and applicable regulations in his/her field of

responsibility. This suggests that the technical specialists must

have technical backgrounds in engineering or the physical sciences,

as well as expertise in risk management, regulatory development,

supervision, implementation, and communications. It is important
29

to note that the information clearinghouse will need to interface

with the various technical groups within the State environmental

agency. These groups would include agency sections that handle

engineering, regulatory development, permitting, inspections, and

compliance issues. The amount of diversity contained within the

SBAP will determine the extent of interaction required among the

groups. The EPA expects that some of the most common questions

which small businesses will ask are (1) what are the regulatory

requirements for a specific process; (2) what are the types of

control technologies to control a specific process; (3) what

methods exist for estimating emissions (e.g., use of emission

factors) for completing a permit application; (4) what are the

types of processes that may generate regulated pollutants; and (5)

what are the type(s) of process substitutes that can be used to

prevent emissions of regulated pollutants. The technical experts

should, however, understand the relationship of the above questions

to small business capabilities.

In the event that the technical experts at the State level

cannot provide adequate or complete information to the small

businesses, the SBAP should obtain the necessary information from

a number of other sources. These other sources include (1)

technical support services such as the CTC, EMTIC, and the

Emergency Planning and Community Right-to-Know Hotline established

by EPA; (2) EPA Regional Offices; (3) other States' air programs;

(4) trade associations; and (5) industry groups.

States should also consider the use of sections 1, 2 and 3 of

the EPA's CTC manual for developing and implementing an information

clearinghouse center. Specifically, sections 1 and 2 provide a

structure on which the various technical groups interface in the

CTC. Section 3, which provides the operating protocol of the CTC,

can be used for its scope and rationale in the development of an
30

SBAP. States that are interested in obtaining a copy of the CTC

manual may contact the CTC at 919-541-0800.

The SBAP information clearinghouse would not only answer

technical questions from the business community, but would also be

involved in identifying technical problems not yet addressed by

EPA's CTC or other informational sources. Incoming questions would

be stored in a State's computer tracking system or accumulated in

some other manner. Compilation of frequently asked but unanswered

questions could establish possible areas of research for either

State agencies or EPA to pursue. Figure 1 shows how such an

information transfer system on compliance and technology

information between States and EPA could work. State programs are

also encouraged to establish networks with
EPA

Small Business

?

Information Clearinghouse

S B A P

Technical Experts

Trade Associations

Information Available?

Other Resources

Other States

Industry

Yes

No

Figure 1. Information Transfer System on Compliance

and Technology Information

31
32

professional organizations such as the State and Territorial Air

Pollution

Programs Administrators and the Association of Local Air Pollution

Control Officials (STAPPA/ALAPCO), the Air and Waste Management

Association (AWMA), and the American Institute of Chemical

Engineers (AICHE) to exchange technical information and

experiences.

Finally, States could also exchange information and/or

suggestions on compliance and technology relevant to small

businesses through direct contact with other State air pollution

control agencies or by the use of an electronic bulletin board.

Interested States would log onto the bulletin board system and

search for information on their topic of interest using key words.

Questions entered into the system would be in question-and-answer

form. The bulletin board system would also contain updates on the

latest methods, procedures, and technology. Currently, the EPA

Office of Air Quality Planning and Standards (OAQPS) operates a

computerized technology transfer network bulletin board which could

serve such a purpose. In addition, the Pollution Prevention

Information Clearinghouse is available for States to exchange ideas

on pollution prevention methodologies. States may contact OAQPS at

919-541-5635 for additional information on services provided by

these offices. Table 2 provides a summary of the ways in which the

proactive and reactive components of the information dissemination

process can be implemented.

3.2.2 Assistance to Small Businesses on Methods of Pollution

Prevention and Accidental Release Prevention and Detection

The SIP revisions in response to section 507 must address the

ways in which the needs of small businesses will be met in the

areas of pollution prevention, as defined in the Pollution
33

Prevention Act of 1990, and accidental release prevention

provisions contained in Title III of the Amendments. States may

want to consider the use of the State SBAP information

clearinghouse described in Subchapter 3.2.3 as a means to provide

information on these subjects to small businesses.

Table 2. Ways of Implementing the Proactive and Reactive Components of Information Dissemination to

Small Businesses

PROACTIVE COMPONENT REACTIVE COMPONENT

(Communication/Outreach) (Information Clearinghouse)

- State Air Pollution Control Agency - SBAP Clearinghouse

- State Ombudsman Office - EPA Small Business Technical Assistance

- Newspapers Center

- Small Business Administration (SBA) - EPA Regional Offices

- SBA Field Offices - Other States Programs (direct contact or

- State Economic Development Commissions electronic bulletin board) 

- Senior Corps of Retired Executives (SCORE) - Trade Associations

- Small Business Institutes - Industry Groups

- State's Small Business Association - Associations and Professional Organizations

- Major Chemical Distributors (i.e., STAPPA/ALAPCO, AWMA, AICHE)

- Chamber of Commerce - Pollution Prevention Information Clearinghouse

- Small Business Development Centers or - Emergency Planning and Community Right-to-

 equivalent Know Hotline

- Trade Associations

- Industry Groups

- State Pollution Prevention Program

- State Emergency Response Commissions

- Local Emergency Response Committees
34

For disseminating information relevant to methods of pollution prevention and accidental release

prevention and detection, States should encourage national trade associations and their State

counterparts to establish "peer exchange" programs within industry-specific groups that could help

others use new pollution prevention techniques and information and accidental release prevention

technologies and management practices. State Economic Development Commissions should be

encouraged to sponsor workshops to provide technical assistance to small businesses. Other valuable

sources of information include trade associations; technical and professional societies; environmental

organizations and other public interest groups; civic organizations (e.g., League of Women Voters);

media (both broadcast and print); libraries; and community colleges and specialized training institutes.

Specific information relevant to pollution prevention and accidental release prevention and detection

follows.

3.2.3 Pollution Prevention

The EPA has established a Pollution Prevention Office, and the Office of Research and

Development (ORD) and other Agency offices are implementing pollution prevention programs. In

addition to these programs, many States have developed comprehensive pollution prevention and

regulatory compliance technical assistance programs. Many of these State programs target their

complementary nonregulatory technical assistance towards small and medium size businesses. States

have developed pollution prevention training programs, workshops and seminars and conducted onsite pollution prevention opportunity assessments for industry and small businesses.

The SIP revisions should address how the State plans to coordinate with any existing pollution

prevention program in the respective State. States may contact the National Roundtable of State

Pollution Prevention Programs at 612-379-5995 or the Pollution Prevention Information

Clearinghouse (PPIC) at 703-821-4800 for additional information on pollution prevention programs

for small businesses. Additional resources include Pollution Prevention Training Opportunities in

1991 and Pollution Prevention 1991: Progress on Reducing Industrial Pollutants, both of which can

be obtained from PPIC.
35

Finally, a listing of Regional coordinators who may provide assistance to States regarding

pollution prevention programs for small businesses is contained in Appendix C.

Accidental Release Prevention and Detection

Within EPA, the responsibility for programs related to the prevention, detection, and monitoring

of accidental chemical releases lies with CEPPO. This office will generate and provide to States

much of the information needed to assist small businesses in this area.

Depending on the nature of the structure each State chooses for its SBAP, States should be able

to answer questions or refer questions to specialists on a number of aspects of chemical accident

prevention, as well as detection and monitoring. Prevention, in the broadest sense, also includes

chemical process safety management. Basic information on prevention should cover four areas: (1)

requirements under the accidental release provisions of the Amendments; (2) complementary and

closely related requirements under the Emergency Planning and Community Right-to-Know Act of

1986 or SARA Title III; (3) the Occupational Safety and Health Administration (OSHA) process

safety standard as required by the Amendments; and (4) general information on prevention practices

and technologies.

Concerning the first two areas, specific questions may be referred to the SBAP, which may in

turn consult with EPA preparedness coordinators in the Regions, the Emergency Planning and

Community Right-to-Know Hotline, specialists within CEPPO, or other appropriate EPA program

offices. A listing of Regional coordinators along with their respective phone numbers is contained

in Appendix D. The EPA's Chemical Accident Prevention Program produces publications on

different aspects of prevention and has materials that specifically relate to the concerns of smaller

businesses. These materials will be made available to the State SBAP. In addition, EPA's Prevention

Program may sponsor workshops or other events, and announcements of these events will be directed

to the States in a timely way. Through the Accidental Release Information Program, which is part

of the Chemical Accident Prevention Program, States may obtain information from a database that
36

examines the causes of accidents. The Chemical Action Prevention Program's Chemical Safety Audit

Program provides a type of consultative audit that can assist facilities in improving their prevention

practices. States may contact the Emergency Planning and Community Right-to-Know Hotline at

1-800-535-0202 for information provided by this Program office.

Concerning the third area, for information on the OSHA process safety standard, (for which the

statutory deadline is November 15, 1991), States are advised to contact OSHA directly. This

standard, which covers process safety in the workplace, is very closely linked to the accidental release

provisions that cover the environment and the public, for which EPA has responsibility.

For the fourth area of general prevention information, EPA can make available to the State's

SBAP a resource guide that lists relevant organizations that States can contact. States may contact

the Emergency Planning and Community Right-to-Know Hotline to obtain a copy of this resource

guide. The following types of organizations could be useful.

! State Emergency Response Commissions

! Local Emergency Planning Committees

! State emergency management offices

! Fire service

! First responder agencies

! Trade associations (such as the Chemical Manufacturer's Association)

! Professional societies (such as the Center for Chemical Process Safety of the American

Institute of Chemical Engineers)

! Unions and worker organizations

! Environmental organizations
37

3.2.3 Establishment of Compliance Assistance for Determining Small Business Stationary

Source Applicability Requirements and Permitting

Compliance assistance may provide for direct and timely, one-on-one assistance to small

businesses to identify applicable requirements under the Act (e.g., SIP and new source requirements)

and obtain needed assistance in complying with those requirements, including preparation of permit

applications.

The SBAP could have the following specific roles in providing compliance assistance:

! Provide advice and assistance to small businesses in the interpretation of

applicable SIP requirements and in obtaining needed technical and compliance

assistance. This would include (1) identifying applicable rules; (2) determining

whether a permit is needed; and (3) identifying alternatives for achieving

compliance with applicable State/local regulations such as process changes,

recycling programs, material substitutions, and other methods/processes which

may reduce or eliminate pollutant emissions.

! Explain permitting procedures such as fees, when/where to apply, the length of

time necessary to receive a permit, the consequences of operating in violation,

fines, and appeal decisions.

3.2.4 Methods for Notifying Small Businesses of their Rights on a Timely Basis

Section 507(a)(5) states that the SIP submittal required under section 507 must include adequate

mechanisms to ensure that small businesses receive notice of their rights under the Act with sufficient

lead time to evaluate compliance methods and the applicable requirements. Notifying a small business

stationary source of its rights would include (but not be limited to) letting small businesses know of

their legal rights under the Act. For example, small businesses need to know their legal recourse

should they be notified of a SIP violation.

It is important that SIP revisions addressing section 507 contain adequate procedures to ensure

that information which clearly delineates all legal rights entitled to a small business under the Act is

adequately disseminated to small businesses on a timely basis. Some examples of ways in which to
38

disseminate this information to small businesses would be distributing easy-to-read pamphlets,

training field inspectors to properly inform small businesses of their rights during site visits, using

public service messages, and making presentations at trade association and chamber of commerce

meetings. Other dissemination processes would be through other State programs that have mass

mailings to small businesses and through business licensing programs.

3.2.5 Establishment of an Audit Program

Each SIP revision addressing section 507 must contain procedures explaining how their SBAP

will provide small businesses with a listing of qualified auditors or, at the option of the State, provide

audits of the operations of a source to determine compliance. The auditor would provide the small

business with technical assistance on pollution prevention opportunities or control options to comply

with the applicable regulations. The auditor should strive to promote pollution prevention as

discussed in the Pollution Prevention Act of 1990. Qualified auditors could be (1) inspectors from

the State air program; (2) State technical assistance personnel from the pollution prevention, chemical

accident prevention, and waste reduction programs; (3) environmental consulting companies; or (4)

individuals with air pollution control knowledge or experience such as former State or Federal air

inspectors or professional engineers. Such audits would be performed as a part of an outreach

program and could include an evaluation of work practices, recommendations on whether compliance

monitoring procedures are being correctly followed, and recommendations for making records orderly

and accessible. It is discretionary whether States or the auditors choose to charge sources for this

service.

The EPA recognizes that a voluntary audit may discover that a source is not in compliance with

applicable State regulations. The EPA cannot approve an SBAP that grants immunity to sources for

compliance problems discovered during such audits. The EPA recognizes the statutory intent,

however, that voluntary audits be a major component of the SBAP. As such, the voluntary audits

are designed to assist small businesses in complying with the applicable regulations. Should a

compliance problem be uncovered during a voluntary audit, the State should determine appropriate
39

action in the first instance. If EPA decides to take any action in response to such a compliance

problem, the Agency will consider how the information was obtained in determining appropriate

action.

3.2.6 Procedures for Consideration of Requests from Small Business Stationary Sources

for Modifications of Work Practices or Technological Methods of Compliance

The SIP revision must include procedures for handling requests from small businesses for

modifications of work practices or alternate control methods. In general, States must develop

administrative procedures for receiving requests from small businesses to modify the provisions of

State-adopted regulations. These administrative procedures should clearly indicate the format of such

requests and indicate how the State will review and act upon each submitted request. In those cases

where State and/or Federal law requires a public hearing, the procedures must state in what manner

public notice will be provided and how public comment will be incorporated into the final decision.

Where applicable, the procedures must indicate that the federally-approved SIP will not be affected

by the State's approval of such modifications until such time as formal approval is granted by the

EPA. The EPA believes that in most cases States have in place appropriate mechanisms for review

of source specific modification of the applicable State regulation and that additional procedures will

not be required. The State must demonstrate, however, that such procedures clearly identify to the

small business the manner and content of the request. States must also coordinate such requests with

EPA where the requests relate to Federal standards, and the specific authority to address such a

request has not been delegated to the State.

The procedures must also ensure that no such modification may be granted unless it is in

compliance with the applicable requirements of the Act, including the requirements of the applicable

SIP. Where such applicable requirements are set forth in Federal regulations, only modifications

authorized in such regulations may be allowed. Requests for such modifications should also be

reviewed by the State Small Business Ombudsman.
40

3.3 Establishment of State Compliance Advisory Panels

The third key component in the establishment of the PROGRAM is the creation of a State

Compliance Advisory Panel for determining the overall effectiveness of the State SBAP. The

following subchapters discuss the methodology for States to use in appointing an advisory panel to

determine the overall effectiveness of the SBAP. Specifically, Subchapter 3.3.1 addresses the

authority and function of the advisory panel, Subchapter 3.3.2 discusses the requirements for selecting

panel members, and Subchapter 3.3.3 describes methods for implementing the advisory panel.

3.3.1 Authority and Functions of the State Compliance Advisory Panel

Section 507(e) requires each State to create a Compliance Advisory Panel consisting of at least

seven individuals. The Compliance Advisory Panel has the following specific functions:

(a) Render advisory opinions on the effectiveness of the PROGRAM,

difficulties encountered, and degree and severity of enforcement;

(b) Prepare periodic reports to the EPA on the compliance status of the

PROGRAM following the intent of the provisions of the Paperwork

Reduction Act, the Regulatory Flexibility Act, and the Equal Access to

Justice Act; and

(c) Review information for small business stationary sources to assure such

information is understandable to the layperson.

The PROGRAM is required to serve as the Secretariat for the development and dissemination

of panel reports and advisory opinions and may provide administrative and logistical support to the

Panel.
41

3.3.2 Selection of Panel Members

Section 507(e) requires the selection of panel members by the following method:

(a) The Governor of the State shall select two members who are not owners

or representatives of owners of small business stationary sources to

represent the general public;

(b) The head of the State air pollution agency responsible for issuing

operating permits shall select one member to represent that agency;

(c) The State legislature shall select four members who are owners or

representatives of owners of small business stationary sources. In the

case of a unicameral legislature, two members shall be selected by the

majority leadership and two members selected by the minority leadership.

In the case of a bicameral legislature, both the majority and minority

leadership in the upper and lower houses of the legislature shall each

appoint one member of the panel.

3.3.3 Implementation of the Compliance Advisory Panel

The Compliance Advisory Panel is an integral portion of a State PROGRAM to assist small

businesses. The Panel independently oversees the SBAP and the Ombudsman, determines their

effectiveness, reports its finding to EPA, and examines information disseminated to small businesses

to ensure that it is understandable for non-technical persons. While the Panel is not specifically

referenced in section 507(a) as an element of the PROGRAM, it is an integral portion of a State

PROGRAM and will need to be involved in numerous activities carried out by the SBAP and the

Ombudsman. Therefore, the independent requirements of Subsection (1) through (7) draw the Panel

into the SIP submittal requirement. During the House debate, Congressman Wyden recognized the

Panel's importance within the PROGRAM, stating "[t]he Compliance Advisory Panel... is an essential

element of any State assistance program -- without a panel to provide guidance and feedback, it

would be difficult to ensure that a program would adequately address the needs of small business

stationary sources. The EPA should only approve State implementation plans that include compliance

assistance panels." 136 Cong. Rec. H12884 (daily ed. Oct. 26, 1990) (statement of Rep. Wyden).
42

States should establish their Compliance Advisory Panel early on in the planning of the PROGRAM.

The panel could initially serve as an advisory group for the development of the State PROGRAM.
43

APPENDIX A
EPA REGIONAL SMALL BUSINESS LIAISONS

The following are EPA Regional Office Small Business liaisons who may provide States with

compliance and technical assistance.

REGION CONTACT PHONE NUMBER

I Mr. Lester Sutton (617) 565-3617

Small Business Liaison

Region I - EPA 

John F. Kennedy Federal

Building - WAA

Boston, Massachusetts 02203

II Mr. Steven Riva (212) 264-4711

Small Business Liaison

Region II - EPA

26 Federal Plaza

New York, New York 10278

III Ms. Evelyn MacKnight (215) 597-9807

Small Business Liaison

Region III - EPA

841 Chestnut Street

Philadelphia, Pennsylvania 19107

IV Mr. Thomas L. Nessmith (404) 347-7109

Small Business Liaison

Region IV - EPA

345 Courtland Street, N.E.

Atlanta, Georgia 30365

V Ms. Margaret McCue (312) 353-2073

Small Business Liaison

Region V - EPA

230 S. Dearborn Street

Chicago, Illinois 60604
VI Mr. Phillip A. Charles (214) 655-2200

Small Business Liaison

Region VI - EPA

1445 Ross Avenue

12th Floor, Suite 1200

Dallas, Texas 75202

VII Mr. Charles Hensley (913) 551-5177

Small Business Liaison

Region VII - EPA

726 Minnesota Avenue

Kansas City, Kansas 66101

VIII Mr. Charles Stevens (303) 294-1111

Small Business Liaison

Region VIII - EPA

999 - 10th Street, Suite 500

Denver, Colorado 80202-2405

IX Ms. Marsha Harris (415) 744-1635

Small Business Liaison

Region IX - EPA

75 Hawthorne Street

San Francisco, California 94106

X Ms. Mary Neilson (206) 553-4280

Small Business Liaison

Region X - EPA

1200 Sixth Avenue

Seattle, Washington 98101
APPENDIX B
MONITORING BY EPA ON THE EFFECTIVENESS OF THE PROGRAM

The EPA will need to answer a variety of questions when examining the effectiveness of each

State PROGRAM. Examples of potentially relevant questions are:

(a) Have the States established and implemented a PROGRAM on a timely basis? Is the State

Ombudsman's office independent from the State air pollution control agency (although this

is not required by the Act)?

(b) How effective have the State Compliance Advisory Panels been in evaluating their State

SBAPs?

(c) What problems were identified by the State Compliance Advisory Panels? What corrective

action was taken?

(d) What are the findings of the State Compliance Advisory Panels regarding the State's

adhering to the intent of the provisions of the Paperwork Reduction Act, Regulatory

Flexibility Act, and the Equal Access to Justice Act?

(e) What has been the economic impact on small businesses as a result of the implementation

of the Act?

(f) Has there been adequate outreach/technical assistance to the affected small business

community?

(g) What improvements need to be made? 

(h) Is the State Ombudsman carrying out his/her role in providing oversight and in handling

complaints and problems in a timely manner?
APPENDIX C
EPA REGIONAL POLLUTION PREVENTION CONTACTS

The following EPA Regional contacts may provide assistance to States pertaining to pollution

prevention programs for small businesses.

 REGION 1 CONTACT PHONE NUMBER

 I Abby Swaine (617) 565-4523

EPA - Region I Mail Code: 9111

JFK Federal Building

One Congress Street

Boston, Massachuetts 02203

II Janet Sapadin (212) 264-1925

EPA - Region II - Mail Code: 9243

26 Federal Plaza

New York, New York 10278

III Roy Denmark (215) 597-8327

EPA - Region III - Mail Code: 3ES43

841 Chestnut Building

Philadelphia, Pennsylvania 19107

IV Carol Monell (404) 347-7109

EPA - Region IV - Mail Code: EPA9420

345 Courtland Street, N.E.

Atlanta, Georgia 30365

V Linda Glass (312) 886-1019

EPA - Region V - Mail Code: 5MA-14

230 South Dearborn Street

Chicago, Illinois 60604

VI Laura Townsend (214) 655-6444

EPA - Region VI-Mail Code:6M-P

1445 Ross Avenue

12th Floor, Suite 1200

Dallas, Texas 75202
VII Alan Wehmeyer (913) 551-7339

EPA - Region VII - Mail Code: EPAA9670

726 Minnesota Avenue

Kansas City, Kansas 66101

VIII Don Patton (303) 293-1456

EPA - Region VIII - Mail Code: EPA9840

909 18th Street - Suite 500

Denver, Colorado 80202-2405

IX Alisa Greene (415) 744-2190

EPA - Region IX - Mail Code: H-1-B

75 Hawthorne Street

San Francisco, California 94105

X Carolyn Gangmark (206) 442-4072

EPA - Region X - Mail Code: 100

1200 Sixth Avenue

Seattle, Washington 98101
APPENDIX D
EPA REGIONAL ACCIDENTAL RELEASE PREVENTION AND DETECTION

PREPAREDNESS CONTACTS

The following EPA Regional Chemical Emergency Preparedness and Prevention (CEPP)

Coordinators may provide States with answers to specific questions regarding (1) requirements under

the accidental release provisions of the Amendments; and (2) complementary and closely related

requirements under the Emergency Planning and Community Right-to-Know Act of 1986 or SARA

Title III.

REGION CONTACT PHONE

I Ray DiNardo,

EPA - Region I Mail Code: EEE-LEX (617) 860-4300

New England Regional Laboratory

60 Westview Street

Lexington, Massachusetts 02173

NUMBER

II John Ulshoefer (201) 321-6620

EPA - Region II Mail Code:211

2890 Woodbridge Avenue

Edison, New Jersey 08837-3679

III Dave Wright (215) 597-6006

EPA - Region III Mail Code:3HW34

841 Chestnut Street

Philadelphia, Pennsylvania 19107

IV Henry Hudson (404) 347-1033

EPA - Region IV

345 Courtland Street, Northeast

Atlanta, Georgia 30365

V Mark Horwitz (312) 886-1964

EPA - Region V Mail Code: 5HS-TUB-6

230 South Dearborn

Chicago, Illinois 60604

VI Jim Staves (214) 655-2270

EPA - Region VI Mail Code: 6E-E

Interstate Bank Tower

1445 Ross Avenue

Dallas, Texas 75202-2733
VII Ron Ritter (913) 551-7308

EPA - Region VII

726 Minnesota Avenue

Kansas City, Kansas 66101

VIII Cheryl Crisler (303) 293-1723

EPA - Region VIII Mail Code: 8HWM-ERB

One Denver Place

999 - 18th Street

Suite 500

Denver, Colorado 80202-2405

IX Kathleen Shimmin (415) 744-2100

Office of Health and Emergency Planning M-1-2

EPA - Region IX

75 Hawthorne Street

San Francisco, California 94105

X Walt Jaspers (206) 553-4349

EPA - Region X Mail Code: HW-093

1200 6th Avenue

Seattle, Washington 98101