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 1992iii 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 CO MPONENTS OF A STATE SMALL BUSINESS STATIONARY SOURC E 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 Assistanc e Program (SBAP)
.................. 20 3.2.1 Me thods for Disseminating Technical an d

Compliance Information to Smal l Businesses

............... 21 3.2.2 Assistance to Small Businesses on Methods

of Pollution Prevention and Accidenta l Release Prevention and Detection

.... 26 3.2.3 Pollution Prevention

.......... 28 3.2.4 Methods for Notifying Small Bu sinesses 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 Source s for Modifications of Work Practices o r Technological Methods of Compliance

... 33 3.3 Establishment of State Compliance Advisory Panels

. 34 3.3.1 Authorityand Functions of the Stat e

Compliance Advisory Panel

........ 34 3.3.2 Selection of Panel Members

....... 35 3.3.3 Implementation of the Complian ce Advisory

Panel

.................. 35
APPENDIX A
......................... 37
APPENDIX B
......................... 40
APPENDIX C
......................... 42
APPENDIX D
......................... 45iv LIST OF TABLES AND FIGURES
Table 1 Major Stationary Sources as Defined in Titles I andIII of the Act

......................... 9 Table 2 Ways of Implementing the Proactive and Reactive Com ponents of Information Dissemination to Small Businesses 27 Figure 1 Information Transfer System on Compliance and Technology Information

........... 25v PREFACE

Impleme ntation of the provisions of the 1990 Clean Air Ac t Amendm ents (Amendments) will more likely require regulation o f
sma ll businesses in order to attain and maintain the nationa l ambi ent air quality standards (NAAQS) and control air toxi c emissi ons. These small businesses frequently lack the technica l expertise and financial resources necessary to evaluate Stat e regulations and determine the appropriate mechanisms fo r compliance. The Congress, in anticipation of this new burden o n 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 smal l businesses. This document is intended to delineate the Fede ral and State roles in meeting these new statutory provisions and t o pro vide guidance to the States on submitting an acceptable Stat e implementation plan (SIP).

The mat erial included in this document is meant to provid e 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 recommende d interpretations of those requi rements. The State must comply with all statutory requirements of the Act however, to the extent that EPA is interpreting the Act requirements, these interpretati ons are not binding on the States, and EPA will independently evalua te each State plan in light of the Act's requirements.

Section 507 o f the Amendments (42 U.S.C. §2661f) requires each State to submit a revision to the federally-approved SIP b y November 15, 1992 to establish a Small Business Stationary Sourcevi

Technical and Environmental Compliance Assistance Program. Failure of the States to adequately re spond could result in the imposition of one or more penalties (sanc tions) included in the statute. The EPArecognizes that most States have active technical suppor t programs to assist regulated sources. The EPA encourages St ates 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 smal l businesses. The EPA interpret s 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 no t overbu rden the States with prescribed methods of meeting th e statute. The EPA believes that States and associated loca l age ncies are the best sources of information to small businesse s and can provide the most efficient service to the regulate d community. Although the Act does not require local agencies t o develop small business technical and compliance assistanc e 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 EP A desires that States be as innovative as possible i n program

design and implementation. To that end, the Agency i s
exam ining some of the existing technical assistance programs a t State and local levels designe d to provide general and/or specific tec hnical support to small businesses. While these programs ma y not have been designed to meet the provisions of section 507 or may ad dress 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 St ates as soon as it is available. In t he interim, EPA encourages State-to-vii

State communications to investigate methods for providing pr oactive and reactive support to small businesses.
The followingthree terms used in this guideline are important to understand: State office to serve as Ombudsman for smal l business (Small Business Ombud sman); the small business assistance program (SBAP); and the Compliance Advisory Panel. The comb ination of t hese three terms is referred to as the PROGRAM. The core o f the PROGRAM is the SBAP, where the actual assistance to smal l businesses occurs. The Small Business Ombudsman is to serve as a repres entative for small businesses in the implementation of th e State's responsibility under s ection 507. The Compliance Advisory Panel is to render advisory op inions, submit reports to EPA on the PROGRAM effectiveness, and rev iew information to assure that it is understandable by the layperson.1

1.0 INTRODUCTION

Congress adopted Title V, section 507, of the Amendments for th e 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 include s requirements that apply to the EPA as well as other requirement s that States must meet. In addition to these mandated requir ements, section 507 also provides EPA and States with the opportunity t o
exer cise discretion in certain areas of program implementation

. Su mmaries of the EPA and State mandatory and discretionar y provis ions contained in section 507 are presented in Subchapter s 1.1 and 1.2, respectively. To assist States in meeting both th e
ma ndatoryand discretionary provisions contained in section 507 , EPAhas developed this guidance document for States to use i n developing and implementing a small business technical an d environmental compliance assis tance program (herein referred to as the "PROGRAM"). In general, the PROGRAM includes three ke y compon ents: (component #1) the designation of a State office t o
serve as Ombudsman for small businesses in connection with th e imp lementation of the Act; (component #2) the establishment of a
sm all business assistance program (SBAP) for providing technica l and compliance assistance to small businesses; and (component #3) the cr eation of a Compliance Advisory Panel for determining th e overall effectiveness of the SBAP.
Chapter 2.0 of this guidance document describes the genera l 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 th e three key components of a State's PROGRAM.2

1.1 EPA Obligations Under Section 507

Within nine months after enactment of the Amendments, sectio n 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 assistanc e pro gram; (2) issuing technical guidance for the States to us e durin g implementation of the PROGRAM, including guidance o n alternative control technologies, pollution prevention, an d accidental release prevention methods for small business sta tionary sources; and (3) providing for the implementation of a portion of the PROGRAM under section 507(a)(4) if a State fails to subm it such
a program. Toward meeting the first requirement, EPA is issuin g th is guideline document. Furthermore, EPA will follow-up wit h individual assistance to States that request such help. Sta tes are encouraged to work with the appropriate EPA Regional Office t o resolv e issues or to discuss additional interpretations of thes e pr ovisions. In order for EPA to meet its second obligation o f pr oviding technical assistance to States, EPA is utilizing it s current technical support services such as the Control Technology Center (CTC), the Emissions Measurement Technical Informatio n Center (EMTIC), the Emergency Planning and Community Right-to-Know Hotline, and the Pollution Prevention Information Clearinghous e (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 th e third requir ement, EPA is designing and will operate a small busines s technical and compliance assistance program by utilizin g contractors under EPA supervis ion and the aforementioned technical support services, which will be available if a State fails t o implement the provisions of section 507.3

The EPA currently has various technical support services tha t the Agency anticipates will be able to provide technical ass istance to the States. The CTC is a n o-cost, technical assistance service for all State and local air pollution control agencies and R egional Offices. It offers quick access to EPA experts via the CTC Hotline and in-depth technical support through source-specific engineering assistance projects. The EMTI C is an information exchange network for the promotion of consisten t, uniform application of stationary source emission test methods i n the development and enforcement of emi ssion control programs on a national basis. The Emergenc y Planning and Community Right-to-Know Hotline provides ancillar y te chnical services for EPA's Chemical Emergency Preparedness an d Prevention Office (CEPPO). Th e CEPPO is primarily responsible for programs involving accidental releases of hazardous chemica l substances. Under the authority of the Emergency Planning an d 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 rele ases, mainly under the accidental release provisions of th e Am endments. The prevention program, in particular, contains a strong outreach component directed to smaller businesses tha t manufacture, store, distribute, or use hazardous chemicals i n other ways. Its aim is to increase the understanding and application of good prevention practices and technologies, using an approac h known as chemical process safety man agement. The Emergency Planning and CommunityRight-to-Know Hotline answers questions concernin g chemical accident prevention a nd the accidental release provisions of the Amendments. It also deals with questions concernin g 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 p rograms throug ha variety of activities including a hard copy referenc e4

libr ary, an electronic database, a toll-free Hotline, and othe r outreach efforts such as distributing information packets an d conducting workshops.

Other services provided by the EPA will include (1) coordinatio n with the Federal regulatory development programs within EPA an d other involved agencies to assure that small business needs an d per mitting issues are addressed during standards setting an d control techniques guideline ( CTG) development; (2) preparation of small business instructional materials along with the developmentof any standards or CTGs that present the information in easy-tounderstand language (to include sample permits, simplified permit application instructions, etc.); (3) preparation of alternativ e control techniques (ACT) documents for sources that are affe cted by State programs but are not expected to be regulated by Federa l programs in the near future (e fforts will be concentrated in those areas that will benefit the most States); and (4) coordinati on with State SBAPs to develop, as necessary and appropriate, materi als for other small businesses.

In addition to these general requirements, section 507(c )
co ntains a discretionary provision that allows EPA to conside r mod ifications to the eligibility criteria for determining i f certain small businesses may be excluded from the requirements of
sec tion 507, or if small businesses have the technical an d fin ancial capability to meet the requirements of the Act withou t 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 sou rces for technical assistance, i.e., financial and technical capabi lity to assess control alternatives. In exercising this discretion, EPA must provide notice and a n oppo rtunityfor public comment and consultation with th e Administrator of the Small Business Administration (SBA).5

Under section 507(d), EPA must establish a monitoring progra m through the EPA Ombudsman's Of fice to monitor the effectiveness of each Sta te PROGRAM under section 507. In so doing, Congress ha s cha rged EPA with a continuing oversight responsibility. To thi s end, EPA has established an Ombudsman through the Office of Small and Disadvantaged Business Utilization in the Office of th e Ad ministrator to monitor and report to Congress on th e effectiveness of this program. This Office can be reached at 703- 305-5938. The EPA Ombudsman is required to (1) render advisor y opi nions 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 Re duction Act, t he Regulatory Flexibility Act, and the Equal Access t o Ju stice Act (see next paragraph below); (3) review informatio n (e.g., enabling documents) issued by the responsible Federal an d State PROGRAM officials to ens ure that it is understandable to the layman; and (4) have the responsible Federal and State PROGRAM of ficials serve as the secretariat for the development an d dis semination of reports to Congress and advisory opinions. Th e EPA's Small Business Ombudsman Office would extend its program to small businesses in that parti cular State, to the extent resources permit, if that State fails to designate a State office a s Omb udsman to small businesses. In addition, the EPA Regiona l Offices maintain a small business liaison for assisting States on matters relating to all environmental media. A listing of thes e Regional contacts is contained in Appendix A.

The statute requires the EPA Ombudsman (and the State Complianc e Advisory Panel) to monitor each State PROGRAM for compliance with the Pa perwork Reduction Act, the Regulatory Flexibility Act, an d the Equal Access to Justice Ac t. As such, the Agency will monitor6

the State PROGRAM to determine whether it is following the broa d 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 questi ons are contained in Appendix B.

Wh ere the Agency has the responsibility for permitting an d collecting fees, EPA may reduce the fees required under the Act for
sm all business stationary sources by considering their availabl e financ ial resources [section 507(f)]. While EPA has no t est ablished specific criteria to be used in the process o f 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 fe e reductions will be assessed on a case-by-case basis. The Agenc y 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 continuou s emissions monitoring (CEM) requirements for small busines s sta tionarysources when developing regulations and CTGs tha t require CEMs pursuant to the Act [section 507(g)]; and (2) c onsider the si ze, type, and technical capabilities of small busines s sta tionarysources in the development of CTGs for small busines s stationary sources [section 507(h)].

1.2 State Obligations Under Section 507

States are required to establish and implement a PROGRAM as par t of the State's responsibility to have a fully-approved an d implemented SIP. The SIP revi sions which incorporate this PROGRAM must be submitted to EPA within 24 months after enactment of th e7

Amendments (by November 15, 1992). The Agency interprets the Act
as requiring the State to submit, as a SIP revision, plans fo r est ablishing its PROGRAM. These plans should provide for timel y phasin g in of the program elements with implementation to full y com plywith the statutory provisions of the PROGRAM by th e effective date of the State's operating permit program -- i. e., not later than November 15, 1994. This timing is necessary so tha t
sma ll businesses that will be subject to the permit requirement s will have available the guidance the PROGRAM is required t o provide. As discussed in Chapter 2.0, in order to receive a pproval of the section 507 portion of the SIP, the State must submi t schedu les and commitments to have in place and/or to hav e ope rational all elements of the PROGRAM. These program element s are discussed below. Where the State chooses to submit schedules and commitments as the plan, these schedules and commitments must specifyhow and when each element will be placed into ful l ope ration (i.e., the Governor may not have specific authority t o ini tiate a particular element, and the plan must demonstrate th e efforts to gain legislative ap proval and subsequent implementation if the Governor does not presently have specific authority t o 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 eit her fully implemented in accordance with the statute and thi s guideline, or for which the schedules and commitments will ensure implem entation by November 1994. Elements of submitted PROGRAM S for which the State submits a schedule and commitment will b e eval uated against the principles established by the statute an d this guideline.8

The following program elements must be addressed in the SI P revisi on in order to satisfy the requirements of section 507(a ) regarding implementation of the PROGRAM:

1. De velopment, collection, and coordination o f information on compliance methods an d te chnologies for small business stationar y sources. 2. Assistance to small business stationary source s on methods of pollution prevention and acci dental release prevention and detection, includin g providing information concerning alternativ e technologies, process changes, products an d meth ods of operation that help reduce ai r pollution. 3. De signation of a State office to serve as a n Ombudsman for small businesses in implementin g the requirements of the Act. 4. Establishment of a small business stationar y so urce compliance assistance program fo r de termining applicable requirements and permi t issuance.
5. Adequate mech anisms for notifying small business statio nary sources on a timely basis of thei r rights under the Act. 6. Adequate mech anisms for informing small business stationary sources of their obligations und er the Act, including a program for referring sour ces to qual ified auditors or for the State to provid e for audits of the operations of such sources t o determine compliance with this Act.
7. Expedited pro cedures to respond to requests from small business stationary sources fo r modi fication of any work practice or technica l meth od of compliance, or schedule of milestone s for implement ing such work practice or method of co mpliance preceding any applicable complianc e date , based on the technological and financia l capability of any such small business stationary source. No such modification may be grante d unle ss it is in compliance with the applicabl e"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 th e requirements of the SIP. 8. Creation of a Compliance Advisory Panel.

Unless otherwise approved by EPA, the plan must demonstrate tha t al l small business stationary sources will be eligible fo r 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 emplo ys 100 or fewer individuals; 2. is a small business concern as defined in th e Small Business Act (see definition on page 10); 3. is not a major stationary source as defined i n Titles I and III of the Amendments (thes e definitions are listed in Table 1 ); 4. does n ot emit 50 tons or more per year of an y regulated pollutant ; and 1
5. emi ts less than 75 tons per year of all regulate d

pollutants.10

This demonstration can take the form of enabling documents d efining eligible sources or State cert ification 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 t o includ e small business stationary sources which do not meet th e 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 i ntend 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 Amendments 2 TITLE I
Sour ces subject to the nonattainment area provisions of Titl e 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 III12

Air toxics sources, as defined in s ection 112 of the Act, with the potential to emit 10 tpy or more o f any haz ardous air pollutant, 25 tpy or more of an y combination of hazardous air pollut ants, or a lesser quan tityof a given pollutant if the Administrato r so specifies.13

The Small Business Act defines a small b usiness as any business which is independently owned and operated and not dominant in its field as defined by Small Business Administration (SBA) regu lations under section 3 of the Small Business Act. The definitions for a small bu siness under SBA regulations can be found in 13 CFR Par t 121 and are listed by Standard Industrial Code (SIC) categories

. For further assistance in determining the size cut-off for d efining
a small business, States should consult with the SBA's Office o f PolicyAnalysis. States may contact SBA's Office of Polic y Analysis at 202-205-6530.

Section 507(c)(3)(B) also allows States to exclude from th e small business stationary source definition under section 50 7 those cate gories of small business stationary sources which the Stat e determ ines to have sufficient financial and technical support t o meet the requirements of the Act without the application of section 507. In exercising this discretion, States must provide not ice and opportunity for public comment and consult with the Administrator of the EPA and the SBA. Such exclusions may not be implemente d unless approved by EPA as part of the appropriate SIP. In making its determination, EPA will co nsult 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 b e
ex cluded are financially and technically capable of implementin g the Act.

Section 50 7(e) requires States to create a Compliance Advisory Panel t o carry out the same duties required by the EPA Smal l Business Ombudsman. Given the short response time and the need to coordinate with the legislature EPA believes that it is in t he best interest of the State to estab lish this panel as early as possible in this process. However, as already discussed in this subc hapter,14

a State may submit a schedule committing the State to establis h this panel no later than November 1994.
Finally, section 507(f) allows States th e flexibility to reduce any fees required under the Act for small business stationar y source s by considering their available financial resources. Th e basic intent of section 507 appears to suggest that States remove
or diminish the burdens imposed on small sources to assist i n complying with the provisions of the Act. Where States reduc e fees, however, the modification to the fee structure mus t dem onstrate that the effectiveness of the PROGRAM will not b e affected as a result.15

2.0 GENERAL REQUIREMENTS FOR SIP APPROVAL
Under the Act, the State is not requiredto 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 submit tal should consist of a description of the activities th e State will undertake and the infrastructure established (or to be esta blished) to ensure each component of the PROGRAM i s accomplished (see Chapter 1.0). In order to receive EPA approval of this required aspect of the SIP, the State should demonstrat e that the requirements in section 507 can be met by th e impl ementation of the State's existing and anticipated PROGRAM

. The submittal by the State mus t address each of the required eight elements presented in Subchapter 1.2 and discuss how each of th e elemen ts as implemented by the State will meet the requirement s established by the Act.

In addit ion to submitting the required plan revision to th e appropriate Regional Office no later than November 15, 1992, each St ate must demonstrate that the submitted plan, includin g implemented and yet-to-be implemented elements, is capable o f meeting the requirements of the Act. In contrast to other t ypes of plan revisions with clearly de finable objectives (i.e., attainment of the NAAQS), the demonstration is more of an abstract anal ysis of how each element of the State program will work in concert w ith the overal l program to ensure that eligible small businesses ar e 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 p art of the submittal due on November 15, 19 92. Schedules and commitments submitted must provide fo r implementation of the full pro gram, as defined in Chapter 3.0, not later than November 15, 1994.16

Although the Act requires the State to submit "plans fo r establishing a [PROGRAM]" by November 15, 1992, the Act does no t specify when the PROGRAM must be fully implemented. However , since States may begin to implement a federally enforceable sourc e operating permit PROGRAM by No vember 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 inform ing the States about and aiding them w ith the permit program requirements, the States need to be prepared at that point to provide thes e services.

In some cases, the measure of program adequacy is clear an d easily quantified (i.e., the designation of the State office t o
serve as Ombudsman). In other cases, the demonstration is mor e subjective (sources will have access to appropriate technica l infor mation/staff to assist in complying with the statutor y provisions). In addition, in preparing these guidelines, EPA has attempted to allow States the maximum degree of flexibility i n designing and implementing the PROGRAM. The easier option, from an EPA review perspective, would have been to design a highl y prescriptive PROGRAM. While this would have simplified EPA' s review responsibility, such a PROGRAM would not have recogni zed the diffe rences in State infrastructures and could have impose d substantial burdens on the States to design and implement thi s 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 receiv e ap proval of their State PROGRAM for incorporation into th e federally-approved SIP.

The State must demonstrate that the State PROGRAM clearl y add resses each of the eight statutorily mandated elements of th e17

PROGRAM. The PROGRAM described in Chapter 3.0 requires the State to develop an information diss emination system accessible to small businesses (PROGRAM component #2). The State must demonstra te that it has in place and operational an accountability system tha t 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 info rmation regarding compliance with State and Federal rules as require d under the Act). Section 507(a)(5) of the Act requires the State t o de velop and implement "outreach" programs. The State mus t therefore demonstrate a proactive aspect of the PROGRAM whic h 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. Th e Act also requires the State to evaluate the effectiveness of th e State PROGRAM in achieving the se objectives. The EPA will examine the State-established procedures for internal PROGRAM revie w design ed to ensure maximum PROGRAM effectiveness. This interna l
rev iewprocess includes the Compliance Advisory Panel. It i s advisable that the Panel be functional at a time sufficiently i n advanc e of the time required for full PROGRAM implementation t o assist in the design and initial implementation of the PROGRAM , such t hat the panel can effectively perform oversight of th e 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 t hat the primary responsibility for these activities will be placed within State offices. The EPA does not prescribe the placement of th eThe 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 Omb udsman Office or the office to be charged with implementatio n 4 of an SBAP.

An Ombudsman, as defined in Webster's dictionary, is a deput y or representative. It would a ppear that Congress, in establishing the requirement for designation of a State office to serve a s Ombudsman for small businesses (PROGRAM component #1), desired to
ensure that small businesses have a representative in th e infras tructure being established that understands the needs o f small businesses. As such, EPA believes that in designating th e offi ce, States should carefully examine how this office ca n represent the interests of small businesses, especially in r elation to e nsuring that small businesses receive the technical an d compli ance assistance demanded by section 507. As discussed i n Ch apter 3.0, there are many duties that can be ascribed to th e Ombudsman. The critical test for EPA approval, with respect t o this element of the PROGRAM, will be whether (1) the designate d office is encumbered with activities that prevent it fro m performing effectively; (2) sufficient expertise exists t o represent small businesses; an d (3) no conflicts of interest exist within the office that would prevent the Ombudsman from servin g effectively.

The A ct requires that the State create a Compliance Advisor y Panel (PROGRAM component #3) f or the primary purpose of performing
ov ersight of the State's section 507 responsibilities. I n
su bmitting this component, the State must demonstrate that th e Pan el is legally adopted and duly constituted as described i n section 507. The panel must b e empowered to perform the statutory19

fun ction as explained in Chapter 3.0 and must be sufficientl y funded to carry out these responsibilities.

The EP A, in review of the State PROGRAM as prescribed in th e submitted SIP revision, will a ttempt to assess whether the PROGRAM
as designed by the State is capable of meeting the statutor y requirements. The EPA will as sess each aspect of the SIP revision
as it relates to the goal of providing technical and complianc e assistance to the affected com munity. 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 ar e separate. To the extent that several different governmental units
are in volved in implementation of the PROGRAM, the State shoul d demonstrate each office's responsibility and accountability under the PROGRAM. In addition, the State must demonstrate the te chnical capabi lityand sufficient resource allocations for each offic e charged with implementing any element of the PROGRAM. Thi s dem onstration may take the form of a memorandum of understandin g between the various government al units or directives issued by the appropriate governmental authority.

In addition, the State must demonstrate that adequate lega l authority exists to implement the PROGRAM (i.e., interdepartmental coordi nation, ability to establish and maintain the Complianc e Advisory Panel, etc.), that adequate commitment of resources exists to implement the proposed PROGRAM (i.e., available staff , esta blished hotlines, designated Ombudsman, etc.), and that th e PROGRAMhas been duly adopted and subjected to public review a s 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. Thi s could include, but would not be limited to, requests fo r20

legislative authority to develop and implement the progra m elem ents, budgetary requests for program support, allocation o f resources from fees collected, and contract bids for element s to be supported by nongovernmental personnel.
Irrespective of the manner in which a State chooses to desig n and implement the PROGRAM, it is incumbent upon the State t o demons trate the PROGRAM capabilities in order to receive EP A 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, EP A
an ticipates that States will use many different and innovativ e approaches to ensure that the appropriate information is available to small businesses. The EPA recognizes that many State and local age ncies have provided technical assistance to the regulate d indus try. The EPA trusts that States will be able to formaliz e existing activities to meet many of the provisions of thes e guidelines.21

3.0 COMP ONENTS OF A STATE SMALL BUSINESS STATIONARY SOURC E TECHNICAL AND ENVIRONMENTAL COMPLIANCE ASSISTANCE PROGRA M (PROGRAM)

To comply with the provisions of section 507 requiring State s to dev elop plans for establishing a PROGRAM, States mus t incorporate three key components: (1) designating a State of fice to
serve as the Ombudsman for small businesses; (2) establishing a Small Business Assistance Program (SBAP) that contains th e necessary procedures for meeting the objectives of section 5 07; and (3) es tablishing a Compliance Advisory Panel for determining th e overall effectiveness of the S BAP. This chapter provides guidance to Sta tes for implementing these three key components of th e PROG RAM. Specifically, Subchapter 3.1 provides guidance on th e establishment of a State office to serve as Ombudsman for smal l business (Small Business Ombudsman) (PROGRAM component #1) , Subcha pter 3.2 provides guidance for establishing an SBAP t o provide assistance to small bu sinesses subject to the requirements of the Act (PROGRAM component #2), and Subchapter 3.3 provide s guidan ce for establishing a Compliance Advisory Panel to provid e oversight of the PROGRAM (PROGRAM component #3).

3.1 Designation of a State Office to Serve as Ombudsman Fo r Small Business

The first key component which States must consider i n imp lementing a PROGRAM is the designation of a Small Busines s Ombud sman. One of the primary functions of the Ombudsman is t o represent small businesses to the appropriate governmenta l organi zations. The following discussion describes methods fo r satisfying the provisions of section 507(a)(3) for designating an office within the State government to serve as an Ombudsman fo r small business stationary sources.22

In designa ting the Ombudsman the State may find it appropriate to identify a specific State o fficial or office. Recognizing that manyStates may already have an existing Ombudsman office, th e 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 desi gnating a specific official or State office, the State should ensure that the of fice is provided adequate additional staff and funding t o effectively represent small businesses.

The EPA's review of the criteria set forth in Chapter 2.0 fo r approval of any State office to serve as Ombudsman will conside r the following:

! Is t he Office capable of representing small busines s concerns to the State air poll ution control agency? In some cases, this may require independent status;

! Wil l the Office have direct access to individuals or othe r gov ernment units to ensure the views and needs of smal l business are considered? This may include access to th e Governor, the head of the State environmental contro l auth ority, the head of the State economic developmenta l agency, the Attorn ey General, or other secretary equivalent level officers;

! Is t he Office authorized to provide reports to an d co mmunicate with appropriate personnel (e.g. Stat e Legislators, Governor's office, the head of the Stat e enviro nmental control authority, the head of the Stat e economic developmental agency, the Attorney General, o r other secretary equivalent level officers)?;

! Is the Office granted sufficient independent authority t o identify problems and make recommendations as th ey relate to implementation of the SBAP?
The EPA encourages the early a ppointment of the State Ombudsman to assist in the development of the SBAP. In addition, earl y inv olvement in the planning process will enable the Ombudsman t o23

assist in the oversight role e nsuring that small business concerns
are represented. At a minimum, the SIP revision should eithe r clearly identify the placement of the Ombudsman and indicate that this of fice has been designated prior to the date of the SI P revision submittal or present a schedule based upon the necessary steps to authorize establishment of the Ombudsman.

The St ate Ombudsman Office for small businesses, in order t o represent small business effectively, may be charged with th e following duties:

! Co nduct independent evaluations of all aspects of th e SBAP; ! Review and provide comments an d recommendations to the EPA and State/local air pollution control authorities regarding the development and implementation o f regulations that impact small businesses;

! Facilitate and promote the participation of smal l 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 th e requirements of the Act to small business;

! Aidin the dissemination of information (i.e., upcomin g air regulations, control technologies, etc.) to small businesses and other interested parties;

! Participate in and sponsor meetings and conference s with State/local regulatory officials, industry groups , and small business representatives;

! Aid in investigating and resolving complaints an d 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 busines s representatives;24 ! Operate a telephone Hotline (possibly toll-free) t o provide confidential help on individual source problem s and grievances;

! Refer small businesses to the appropriate specialists in the SBAP where they may obtain information an d as sistance on affordable alternative technologies , process changes, products and operational methods t o help reduce air pollution and accidental releases;

! Arrange for and assist in the preparation of guideline docume nts by the SBAP to ensure that the language i s readily understandable by the lay person;

! Wo rk with trade associations and small businesses t o bringabout voluntary compliance with regulations unde r the Act;

! Interface with Regional and St ate offices of the Small Business Administration, the Department of Commerc e and/or other State and Federal agencies that may have programs to financially assist small businesses in nee d of funds to comply with environmental regulations;

! Interface with private sector financial institutions t o assist small businesses in locating sources of funds t o complywith State/local air pollution contro l requirements; and

! Conduct studies to evaluate the impacts of the Act on the State's economy, local economies, and smal l businesses.

St ates are encouraged to establish a network for sharin g inform ation on small businesses. These efforts could b e coordinated through the Ombudsman's office.

3.2 Establishment of a S mall Business Assistance Program (SBAP)

The second key component that States must consider i n implementing a PROGRAM is the establishment of an SBAP. The SBAP should provide sufficient communications with small businesse s25

th roughthe collection and dissemination of information to th e small business on matters of (1) determining applicabl e requirements under the Act and permit issuance; (2) the rights of
sm all businesses under the Act; (3) compliance methods an d acceptable control technologies; (4) pollution prevention an d accidental release prevention and detection; and (5) audi t programs. The SBAP should also act as an information cleari nghouse by r eferring small businesses to State technical expert s specifically trained to handle specific questions relevant t o achieving compliance with the Act. For example, the SBAP coul d operate a toll-free telephone hotline to respond to inquiries from small businesses. Small busin esses could learn about the services provided by the SBAP either through direct contact with the SBAP or th roughinformation outreach programs with such organizations a s industry groups and trade associations.

In gener al, the SBAP may be coordinated directly through o r under the direction of the State air pollution control agenc y as an identifiable unit, but not be limited to this entity. For EPA to approve an SBAP that is separate from the State air pollutio n control agency, the State must demonstrate that the SBAP has th e techni cal staff necessary to provide the technical informatio n requested. A contact person(s) in the State SBAP should b e established and a toll-free Hotline is also recommended.
In establishing an SBAP in accordance wi th this chapter, States must s atisfy several of the required program elements listed i n Subchapter 1.2 under section 5 07(a). Specifically, these elements
are (1) developing, collecting, and coordinating informatio n
exc hange on compliance methods and control technologies; (2 ) provid ing assistance to small business stationary sources wit h pollution prevention and accidental release prevention an d detection; (3) providing assistance for determining applicabl e26

requ irements under the Act and permit issuance; (4) determinin g adequate mechanisms for notifying small business stationary sources of their rights under the Act on a timely basis; (5) determinin g adequate mechanisms for informing small business stationary sources of their obligations under the Act, including a program fo r 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
sou rces for modifications of work practices or technologica l method s of compliance or compliance procedures. The SBAP woul d provide information and/or compliance and technical assistanc e rele vant 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 Complianc e Information to Small Businesses
Each SIP revision developed in response to section 507 mus t contain procedures for disseminating information (easil y
un derstandable to the layman) on compliance issues and contro l technologies. In addition, States must provide a means of h andling small business inquiries on specific methods for achievin g compli ance with State air pollution control regulations. I n general, this flow of informat ion process involves two components:
a proactive component and a reactive component. The proactiv e component involves adequate communication with and informatio n outreachto small businesses in the form of easily discernabl e information which specifically details their obligations under the Act. The reactive component involves the establishment of a clearinghouse for handling incoming inquiries from small bus inesses regarding methods for achieving compliance with air pollutio n control requirements under the Act. Ways in which the proactiv e27

an d reactive components of the information dissemination proces s can be implemented are described in the following paragraphs.

In implementing the proactive aspect of informatio n disse mination, there are numerous ways information could b e disseminated to small businesses. One way would be for the State's
sma ll business programs to prepare information packets whic h describe in layman terms compliance and technical informatio n relevant to a small business stationary source's obligation under the Act. These packets would be distributed to the small business communityvia an outreach program. The outreach program woul d
co nsist of industry groups, trade associations, and othe r orga nizations all assisting in distributing this information t o small businesses. Information packets could be mailed to smal l busine sses through the State air pollution control agency o r Ombudsman office. Public service announcements on small business assistance could be made on the radio or TV. The State's po llution pr evention technical assistance program for small businesses, i f
one exists, could be contacted to see how efforts on informatio n dis semination could be coordinated. Possibly, the pollutio n prevention program could spons or 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 developmen t commis sions, Senior Corps of Retired Executives (SCORE), Smal l Business Institutes, State small business associations, majo r chem ical distributors, the Chamber of Commerce, local Emergenc y Plan ning Committees, and small business development centers fo r information and referral services should be considered as avenues to assist small businesses in obtaining environmental and te chnical information. It should be left to the State's air complianc e program, however, to provide answers or advice on questions about regulations or permits.28

Tr ade associations could also be encouraged to establis h "circuit riders" to reach out and assist small businesses wit h generic problems. This type of outreach program could also b e invaluable in coordinating the preparation of permit applications.

By the time State outreach programs distribute informationa l materials for small businesses, a system will need to be in place for answering specific questions from small businesses concerning regulatoryrequirements, appropriate control technologies, an d compliance monitoring equipment (if appropriate). In som e instances, the informational materials may never reach some small businesses. Such small businesses may instead learn about th e 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. Th e following describes ways of im plementing the reactive component of the information dissemination process.

As stated earlier, the State should establish a contac t person(s) within the SBAP, anda 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 s pecific
areas of expertise based on their experience and trainin g back grounds) to provide the appropriate technical assistance t o small businesses. The EPA anticipates that the technical experts
re lied upon will be part of the present technical staff in th e State air program control agency. Each technical expert wou ld have
a thorough knowledge of the methods, control technologies , approaches, and applicable regulations in his/her field o f responsibility. This suggests that the technical specialists must have technical backgrounds in engineering or the physical sc iences,
as wel l as expertise in risk management, regulatory development , supervision, implementation, and communications. It is important29

to note that the information clearinghouse will need to interface with t he various technical groups within the State environmenta l agency . These groups would include agency sections that handl e engineering, regulatory development, permitting, inspections, and
com pliance issues. The amount of diversity contained within th e SBA P will determine the extent of interaction required among th e group s. The EPA expects that some of the most common question s whichsmall businesses will ask are (1) what are the regulator y requirements for a specific process; (2) what are the types o f contro l technologies to control a specific process; (3) wha t methods exist for estimating emissions (e.g., use of emissio n factors) for completing a permit application; (4) what are th e types of processes that may ge nerate regulated pollutants; and (5) what are the type(s) of process substitutes that can be used t o prevent emissions of regulated pollutants. The technical experts should, however, understand the relationship of the above qu estions to small business capabilities.

In the event that the technical experts at the State leve l cannot provide adequate or complete information to the smal l businesses, the SBAP should obtain the necessary information from
a number of other sources. These other sources include (1 ) tec hnical support services such as the CTC, EMTIC, and th e Emergency Planning and Communi ty Right-to-Know Hotline established by EPA; (2) EPA Regional Offices; (3) other States' air programs; (4) trade associations; and (5) industry groups.

States sho uld also consider the use of sections 1, 2 and 3 of the EPA's CTC manual for developing and implementing an info rmation cleari nghouse center. Specifically, sections 1 and 2 provide a str ucture on which the various technical groups interface in th e CTC. Section 3, which provide s the operating protocol of the CTC,
can be used for its scope and rationale in the development of a n30

SBAP. States that are interested in obtaining a copy of the CT C manual may contact the CTC at 919-541-0800.

Th e SBAP information clearinghouse would not only answe r technical questions from the b usiness community, but would also be invo lved in identifying technical problems not yet addressed by EPA's CTC or other informational sources. Incoming question s would be stored in a State's computer tracking system or accumulated in some other manner. Compilatio n of frequently asked but unanswered ques tions could establish possible areas of research for eithe r State agencies or EPA to pursue. Figure 1 shows how such a n information transfer system on compliance and technolog y information between States andEPA 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

3132

profes sional organizations such as the State and Territorial Ai r Pollution Programs Administrators and th e Association of Local Air Pollution Cont rol Officials (STAPPA/ALAPCO), the Air and Waste Managemen t Association (AWMA), and the American Institute of Chemica l Engineers (AICHE) to exchange technical information an d experiences.

Fi nally, States could also exchange information and/o r suggestions on compliance and technology relevant to smal l busine sses through direct contact with other State air pollutio n control agencies or by the use of an electronic bulletin board

. Interested States would log onto the bulletin board system an d search for information on thei r topic of interest using key words. Questions entered into the system would be in question-and-answer form. The bulletin board syst em would also contain updates on the late st methods, procedures, and technology. Currently, the EP A Office of Air Quality Planning and Standards (OAQPS) operates a computerized technology transfer network bulletin board whic h could
serve such a purpose. In addition, the Pollution Preventio n Information Clearinghouse is available for States to exchang e ideas on pollution prevention methodologies. States may contact O AQPS at 919- 541-5635 for additional information on services provided b y these offices. Table 2 provides a summary of the ways in wh ich the proactive and reactive compone nts of the information dissemination process can be implemented.

3.2.2 Assi stance to Small Businesses on Methods of Pollutio n Prevention and Accidental Release Prevention and Detection
The SIP revisions in response to section 507 must address th e ways i n which the needs of small businesses will be met in th e
ar eas of pollution prevention, as defined in the Pollutio n33

Pr evention Act of 1990, and accidental release preventio n provisions contained in Title III of the Amendments. States ma y want t o consider the use of the State SBAP informatio n 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 Committees34

For disseminating information relevant to methods of pollution prevention and accidental release pre ventionand detection, States should encourage national trade associations and their Stat e counterparts to establish "peer exchange" programs within industry-specific groups that could help others use new pollution prevention techniques and information and accidental release preventio n tec hnologies and management practices. State Economic Development Commissions should b e encouraged to sponsor workshops to provide technical assistance to small businesses. Other valuable sources of information include trade associ ations; 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 college s and specialized training institutes. Specific information relevant to pollution prevention and accidental release prevention and detection follows.

3.2.3 Pollution Prevention

The EP A has established a Pollution Prevention Office, and the Office of Research an d Development (ORD) and other Agency offices are implementing pollution prevention programs. In add itionto these programs, many States have developed comprehensive pollution prevention an d regula tory compliance technical assistance programs. Many of these State programs target thei r complementary nonregulatory technical assistance to wards 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 p rogram in the respective State. States may contact the National Roundtable of Stat e Pollu tionPrevention Programs at 612-379-5995 or the Pollution Prevention Informatio n Clearinghouse (PPIC) at 703-821-4 800 for additional information on pollution prevention programs forsmallbusinesses. Additional resources include Pollution Prevention Training Opportunities i n 1991 and Pollution Prevention 1991: Progress on Reducing Industrial Pollutants , both of which can be obtained from PPIC.35

Fi nally, a listing of Regional coordinators who may provide assistance to States regardin g 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 pr evention, detection, and monitoring of accidental chemical releases lies with CEPPO. This office will generate and provide to State s much of the information needed to assist small businesses in this area.
Depending on the nature of the structure each State choos es for its SBAP, States should be able to answer questions or refer questions to specialists on a number of aspects of chemical acciden t prevention, as well as detection and monitoring. Prevention, in the broadest sense, also include s chemical process saf

ety management. Basic information on prevention should cover four areas: (1) require ments under the accidental release provisions of the Amendments; (2) complementary an d 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) proces s safety standard as required by t he Amendments; and (4) general information on prevention practices and technologies.

C o ncerning the first two areas, specific questions may be referred to the SBAP, which may in turn consu lt with EPA preparedness coordinators in the Regions, the Emergency Planning an d Commun ity 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 inAppe ndix D. The EPA's Chemical Accident Prevention Program produces publications o n differentasp ects 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 t hese events will be directed to the States in a timely way. Through the Accidental Release Information Program, which is part

o f the Chemical Accident Prevention Program, States may obtain information from a database that36

examines the causes of accidents. The Chemical Action Pr evention Program's Chemical Safety Audit Program pro vides 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 t he OSHA process safety standard, (for which the statutory d eadline is November 15, 1991), States are advised to contact OSHA directly. Thi s standard, which covers process safety in the workplace, is very clo sely 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 theEmergency 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)
! Prof essionalsocieties (such as the Center for Chemical Process Safety of the American Institute of Chemical Engineers)
! Unions and worker organizations
! Environmental organizations37

3.2.3 Establishment of Compliance Assi stance for Determining Small Business Stationary

Source Applicability Requirements and Permitting Compliance assistance may provide for direct and timely, one-on-one assistance to smal l 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 o f applicableSIP requirements and in obtaining needed technical and compliance assistanc e. This would include (1) identifying applicable rules; (2) determining whethe ra permit is needed; and (3) identifying alternatives for achievin g compliancewith applicable State/local regulations such as process changes , recycling programs, material substitutions, and other methods/processes which may reduce or eliminate pollutant emissions.

! Explain permitt

ing procedures such as fees, when/where to apply, the length of timenecessary 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 thei rlegal rights under the Act. For example, small businesses need to know their legal recours e 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 to38

dissemi natethis information to small businesses would be distributing easy-to-read pamphlets , training fie ld inspectors to properly inform small businesses of their rights during site visits, usin g public service messages, and making presentations at trade association and chamber of commerc e meeting s. Other dissemination processes would be through other State programs that have mas s mailings to small businesses and through business licensing programs.

3.2.5 Establishment of an Audit Program

Each SIP revision addr

essing section 507 must contain procedures explaining how their SBAP will provide small businesses with a listing of qua lified auditors or, at the option of the State, provide audits of t he 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 wi ththe applicable regulations. The auditor should strive to promote pollution prevention a s dis cussed 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) indiv iduals with air pollution control knowledge or experience such as former State or Federal ai r in spectors or professional engineers. Such audits would be performed as a part of an outreac h 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 andaccessible. 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 compl ianceproblems 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 appropriate39

actionin the first instance. If EPA decides to take any action in response to such a complianc e 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 fo r modific ations of work practices or alternate control methods. In general, States must develo p administrativeprocedures for receiving requests from small businesses to modify the provisions of State-adopted regulations. These administrative procedures should clear ly indicate the format of such requests and indicate how the State w ill 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 bythe State's approval of such modifications until such time as formal approval is granted by th e EPA. The EPA b elieves that in most cases States have in place appropriate mechanisms for review of source specific modif

ication 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. Sta tes 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 pro cedures must also ensure that no such modification may be granted unless it is i n compliance with the applicable r equirements of the Act, including the requirements of the applicable SIP. Where such applicable requirements are set forth in Federal regulations, only modification s authorized in such regulations may be allowed. Requests for such modifications should also b e reviewed by the State Small Business Ombudsman.40

3.3 Establishment of State Compliance Advisory Panels

The th ird key component in the establishment of the PROGRAM is the creation of a State Compli anceAdvisory Panel for determining the overall effectiveness of the State SBAP. Th e 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 th e 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) Rende radvisory opinions on the effectiveness of the PROGRAM , difficulties encountered, and degree and severity of enforcement; (b) Prepare pe riodic reports to the EPA on the compliance status of th e PROGRA Mfollowing the intent of the provisions of the Paperwor k Reducti on Act, the Regulatory Flexibility Act, and the Equal Access to Justice Act; and (c) Review information f

or small business stationary sources to assure such information is understandable to the layperson.

The PROGRAMis required to serve as the Secretariat for the development and dissemination of panel r eports 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 tw o members who are not owners or representatives of owners of small business stationary sources t o represent the general public; (b) The head of the State air pollution agency responsible for issuin g operating permits shall select one member to represent that agency; (c) Th eState legislature shall select four members who are owners o r representatives of owners of small business stationary sources. In th e case of a unicameral legislature, two members shall be selected by th e majority leadership and two members selected by the m inority leadership. In the case of a bicameral legislature, both the majority and minority leadership in the upper and lower houses of the legislature shall eac h appoint one member of the panel.

3.3.3 Implementation of the Compliance Advisory Panel

The Compl iance Advisory Panel is an integral portion of a State PROGRAM to assist smal l businesses. The Panel independently oversees the SBAP and the Ombudsman, determines thei r effectiveness, reports its finding to EPA, and examines information disseminated to small businesses to en sure that it is understandable for non-technical persons. While the Panel is not specificall y referenced in se ction 507(a) as an element of the PROGRAM, it is an integral portion of a State PROGRAMand will need to be involved in numerous activities carried out by the SBAP and th e Ombudsman. Therefore, the independent requirements of Subsection (1) through (7) draw the Panel into the SIP submit

tal 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, i t would be diffi cult to ensure that a program would adequately address the needs of small busines s stationary sources. The EPA should only approve State implementation plans that include compliance assistancepanels." 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 AEPA REGIONAL SMALL BUSINESS LIAISONS

Thefollowing 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 60604VI 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 98101APPENDIX BMONITORING 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 a ir 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 Ad visory Panels? What corrective action was taken? (d) Whatare th e findings of the State Compliance Advisory Panels regarding the State' s ad heringto 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 busines s 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 CEPA 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 75202VII 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 98101APPENDIX DEPA REGIONAL ACCIDENTAL RELEASE PREVENTION AND DETECTION PREPAREDNESS CONTACTS

Thefollowing EPA Regional Chemical Emergency Preparedness and Prevention (CEPP ) Coordinators may provide States with answers to specific questi ons regarding (1) requirements under the acci dental release provisions of the Amendments; and (2) complementary and closely relate d requirements under the Eme rgency 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 75202-2733VII 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