### Iowa Department of Natural Resources Environmental Protection Commission

ITEM 

## 10 DECISION

TOPIC Notice of Intended Action – Chapter 15 – Cross Media Electronic Reporting

The Department is requesting permission from the Commission to proceed with the rulemaking process and publish a Notice of In tended Action to add Chapter 15 “Cross Media Electronic Reporting” of th e 567 Iowa Administrative Code. This rulemaking was presented to the Comm ission for information in August. The purpose of the rule changes is to adopt th e U.S. Environmental Protection Agency’s (EPA) electronic reporting requirements for programs under Title 40 of the Code of Federal Regulations (CFR). EPA’s Cross Media Electronic Reporting Rule (CROMERR), which is found in 40 CFR Part 3, establishes electronic reporting as an acceptable regulatory alternative across a broa d spectrum of EPA programs and institutes standards for e-reporting systems to ensure that electronic documents are as legally dependable as their paper counterparts. CROMERR impacts electr onic data currently received or planned to be received in fede rally mandated programs in the Environmental Services Division. CROMERR does not require regulated entities to submit electronic data or require programs to accept electronic data. CROMERR establishes the performance standards for accepting electronic documents if the option is or will be available. Programs already receiving electronic information must modify the system(s) or create new systems to be compliant with CROMERR. Adoption of this rule is required for the De partment’s CROMERR application(s) to EPA. States are required to submit CROMERR app lications to EPA for existing electronic document receiving systems by January 13, 2010. If the Commission approves this Notice of In tended Action, a public hearing will be held on February 15, 2010 at 10:00 AM at the Depart ment’s Air Quality Bureau office. The public comment period for the proposed rules will close on February 16, 2010. An Administrative Rule Fiscal Impact Statement is attached. Jason Marcel, Environmental Program Supervisor Emission Inventory and Support Section, Air Quality Bureau Environmental Services Division November 23, 20092 ENVIRONMENTAL PROTECTI ON COMMISSION [567] Notice of Intended Action

Pursuant to the authority of Io wa Code section 455B.133 and 554D, the Environmental Protection Commission hereby gives Notice of Intended Action to add Chapter 15, “Cross Media Electronic Reporting” of the Iowa Administrative Code. The purpose of the proposed rule changes is to adopt the U.S. Environmental Protection Agency’s (EPA) electronic repor ting requirements for programs under Title 40 of the Code of Federal Regulations. EPA’ s Cross Media Electronic Reporting Rule (CROMERR) was born out of EPA’s goal to make electronic re porting and electronic recordkeeping available under authorized pr ograms. EPA expects that this will (1) reduce the cost and burden of data transfer and maintenance for all parties to the data exchanges; (2) improve the data and the vari ous business processes associated with its use; and (3) maintain the level of co rporate and individual responsibility and accountability for electronic re ports and records that currently exist in the paper environment. CROMERR applies to states, tr ibes, and local programs that administer or seek to administer authorized programs under Titl e 40 and establishes standards for acceptable electronic document receiving systems against which EPA will assess authorized program electronic reporting elements. Thes e standards address six function-specific categories: (1) system security; (2) electronic signature method; (3) submitter registration; (4) signature/certification scenar io; (5) transaction record; and (6) system archives.3 CROMERR impacts 40 CFR Parts 3, 9, 51, 60, 61, 63, 64, 69, 70, 71, 123, 142, 145, 162, 233, 257, 258, 271, 281, 403, 501, 745 and 763. This rulemaking impacts electronic data currently received or pla nned to be received in federally mandated programs in the Environmental Services Divi sion. Programs already receiving electronic information must modify the system(s) or create new systems to be compliant with CROMERR standards. CROMERR does not require regulated entities to submit electronic data or require programs to accept electronic data; however, it requires that any Title 40 authorized program that chooses to use electronic submission rather than paper for reporting purposes must receive EPA approval of program revisions or modifi cations that address its electronic reporting implementations. As a result, programs accepting or planning on accepting submission of electronic documents mu st submit an application as required by 40 CFR Part 3 for EPA review and approval. Adoption of this rule is required for the CROMERR application to EPA. A public hearing will be held on February 15, 2010, at 10:00 AM in the conference rooms at the Department’s Ai r Quality Bureau office located at 7900 Hickman Road, Windsor Heights, Iowa. At the public hearing, comments on the proposed amendments may be submitted orally or in writing. All comments must be received no later th an February 16, 2010. Any person who intends to a ttend the informational mee ting or the public hearing and has special requirements, such as those related to hearing or mobility impairments, should contact Wendy Rains at (515) 281-6061 to advise of any specific needs. These amendments are intended to imple ment Iowa Code section 455B.133 in order to comply with 554D.4 The following amendments are proposed. ITEM 1. Adopt a new 567—Chapter 15 as follows:

CHAPTER 15
CROSS MEDIA ELECTRONIC REPORTING 567—15.1(455B, 554D) Purpose. This rule implements the cross media electronic reporting rule (sometimes refe rred to as CROMERR) as defined by 40 CFR
Part 3. 15.1(1). Applicability. The provisions of this subr ule shall apply to persons and signatories who submit electron ic reports or other documents to satisfy requirements of Title 40 of the Code of Federal Regulations for authorized programs for which the Department is accepting specified electroni c documents and other media used for electronic reporting ex cept as follows: a) documents submitted via facsimile; b) electronic documents submitted via magnetic or optical media such as diskette, compact disc, digi tal video disc, or tape; c) electronic documents submitted through an electronic document receiving system pursuant to a non-fede ral state-only program; or d) data transfers between the department and the U. S. Environmental Protection Agency, local governments, or tribes as part of an authorized program or administrative arrangement. 15.1(2) Definitions . For the purpose of these rules, the following terms shall have the meaning indicated in this chapter.5 "Authorized program " means a federal program that the United States Environmental Protection Agency (EPA) has delegated to, authorized, or approved the Department, on behalf of the State of Iowa, to administer, or a program that the EPA has delegated to, authorized, or a pproved the Department to admi nister in lieu of a federal program, under provisions of 40 CFR and fo r which the delegation, authorization or approval has not been withdrawn or expired. "Copy of record" means a true and correct c opy of an electronic document received by an electronic document receivi ng system, which can be viewed in a humanreadable format that clearly and accurately associates all the info rmation provided in the electronic document with descriptions or labelin g of the information. A copy of record includes: (1) any electronic signature contained in or logically associated with the document; (2) the date and time of receipt; and (3) any other information used to record the meaning of the document or the circumstances of its receipt. "Electronic document" means any information that is submitted to one of the Department's electronic document receivi ng systems in digital form to satisfy requirements of an authorized program a nd may include data, text, sounds, codes, computer programs, software, or databases. "Electronic document receiving system" means the apparatus, procedures, software, or records established and used by the Department to receive electronic documents in lieu of paper.6 "Electronic signature" means any information in di gital form attached to or logically associated with a record submitted to one of the Department's electronic document receiving systems and executed or adopted by a person with the intent of expressing the same meaning as would a handwritt en signature if affixed to an equivalent paper document with the same content. "Electronic signature agreement" means a written agreement prepared by the Department and signed by an individual with respect to an electronic signature device that the individual will use to creat e his or her electronic signature. "Electronic signature device" means a code or other mechanism, assigned to an individual who is uniquely entitl ed to use it and that is then used to create the individual's electronic signature. "Federal program" means any program administ ered by EPA under any provision of 40 CFR. "Handwritten signature" means the scripted name or legal mark of an individual made by that individual with the present intention to authenticate a writing in a permanent form. "Signatory" means an individual authorized to and who signs a document submitted to one of the Department's electr onic document receiving systems pursuant to an electronic signature agreement. "State program" means any program other than an authorized program that is implemented by the Department under the laws of the State of Iowa. "Valid electronic signature" means an electronic signature on an electronic document created by using an electronic signatur e device that the identified signatory is uniquely entitled to use for signing the electronic document, provided the device has not7 been compromised and provided the signatory is an individual authorized to sign the document by virtue of legal status or rela tionship to the entity on whose behalf the signature is created. 15.1(3) Use of electronic document receiving systems . (a) Announcement on public website . When the Director has announced on the Department's public website that the Depa rtment is accepting specified electronic documents in lieu of paper to satisfy re quirements under each authorized program, individuals who submit such electronic documents must use the Department's CROMERR-compliant electronic document receiving systems. (b) Submittals requiring signature. Any electronic document submitted must bear a valid electronic signature of a signatory, if that signatory would be required under the authorized program to sign the paper document for which the electronic document substitutes. (c) Submittals not requiring signature . If no signature is required under the authorized program, individuals may submit electronic documents in lieu of paper to satisfy requirements of such programs th rough the Department's CROMERR-compliant electronic document receiving system without an electronic signature or an electronic signature agreement. 15.1(4) Electronic signature agreement. (a) Agreement to be executed . In the case of an electronic document that must bear the electronic signature of a signator y under an authorized program, each signatory must execute an electronic signature agreement. (b) Form and content of agreement. All agreements shall be in writing and filed with the electronic document receiving system administrator via a mail delivery service8 or by hand delivery. The agreement shall incl ude the information and follow the format as defined by the Department. The agreemen t form may be downloaded and printed for execution from the Department's public website. (c) Verification . The identity and authority of each individual submitting an electronic signature agre ement shall be verified by the State of Iowa. After the State has satisfactorily completed the verification, th e Department shall notify the individual electronically that the electronic signature device has been activated and access to the database has been granted. (d) Certification. Each submission authorized by an electronic signature shall contain the following statement “I certify under penalty of law that I have had the opportunity to review, in human-readable fo rmat, the content of the electronic document to which I here certify and attest, and I furt her certify under penalty of law that, based on the information and belief formed after reasonable inquiry, the statements and information contained in this submission ar e true, accurate, and co mplete. I understand that making any false statement, representa tion, or certification of this submission may result in criminal penalties.” 15.1(5) Valid electronic signature . (a) Signatory. An authorized signatory may not allow another individual to use the electronic signature de vice unique to his or her electronic signature. (b) Unique signature device . When the electronic signa ture device is used to create an individual's electronic signature, the code or mech anism must be unique to that individual at the time the signa ture is created and the indivi dual must be uniquely entitled to use it. The signatory shall: (1) protect the electronic signatu re device from compromise; and9 (2) report to the Department and State, within one business day of discovery, any evidence that the security of the device has been compromised. 15.1(6) Effect of electronic signature. (a) Electronic signature establishes intent. The presence of an electronic signature on an electronic document submitted to the Department establishes that the signatory intended to sign th e electronic document and to su bmit it to the Department to fulfill the purpose of the electronic document. (b) Electronic signature legally binding . Where an electronic document submitted to satisfy a reporting requirement of an authorized program bears an electronic signature, the electronic si gnature legally binds, obligat es, and makes the signatory responsible to the same extent as the si gnatory's handwritten signature on a paper document submitted to satisfy the same reporting requirement. If an applicable law or rule requires a handwritten signature on a documen t, an electronic signature satisfies that requirement. 15.1(7) Enforcement. (a) Penalties and other remedies. If the submitter or signatory fails to comply with a reporting requirement by failing to comp ly with the provisions of this subchapter, the electronic signature agreement, or other applicable reporting requirements, the submitter or signatory is subject to any appropr iate civil or criminal penalties or other remedies under State law.10 (b) Electronic document as evidence. Nothing in this subchapter or the authorized program limits the use of an electronic docum ent, copy of record, or other information derived from an electronic document as evidence in enforcement proceedings.

______________________________ Date

______________________________ Richard A. Leopold, Director11 Administrative Rule Fi scal Impact Statement

Date: November 23, 2009 Agency: Department of Natural Resources IAC Citation: 567 IAC 15 Agency Contact: Anne Preziosi Summary of the Rule: The rule proposes to adopt federal electronic reporting requirements for programs under Title 40 of the Code of Federal Regulations. EPA’ s Cross Media Electronic Reporting Rule (CROMERR) does not require regula ted entities to submit electron ic data or require the above programs to accept electronic data. CROMERR establishes the signa ture and security performance standards for accepting electronic documents via electronic document receiving systems if the option is or will be available. Electronic receiving systems, typically databases, have signature and security performance standards under CROMERR. Programs already receiving electronic informati on must modify the system(s) or create new systems to be compliant with CROMERR. Exis ting systems that must comply with CROMERR are as follows: State Permitting and Air Re porting System (SPARS), Wastewater Permit information Exchange (WWPIE), NPDS database (used for NPDES permitting), and Safe Drinking Water Information System (SDWIS). Fill in this box if the impact meets these criteria: ____ No Fiscal Impact to the State.

_ X _ Fiscal Impact of less than $100,000 annually or $500,000 over 5 years. ____ Fiscal Impact cannot be determined. Brief Explanation: The Department estimates that $200,000 is needed for the above databases to comply with CROMERR. Funding will be requested through a federal grant program that promotes the exchange of environmental information. Critical components of this project were achieved at a significant savings. The Department is collaborating with the De partment of Transportation to develop an electronic records management sy stem, which will address copy of record requirements. The programming code for the database's “portal” will be provided by the State of Indiana at no cost to the Department. Fill in the form below if the impact does not fit the criteria above: ___ Fiscal Impact of $100,000 annua lly or $500,000 over 5 years.
* Fill in the rest of the Fi scal Impact Statement form. Assumptions:

Describe how estimates were derived:12 

### Estimated Impact to the State by Fiscal Year Year 1 (FY ) Year 2 (FY ) Revenue by Each Source: GENERAL FUND $0 FEDERAL FUNDS $200,000 Other (specify) $0

TOTAL REVENUE $200,000 Expenditures: GENERAL FUND $0 FEDERAL FUNDS $200,000 Other (specify) $0

TOTAL EXPENDITURES $200,000

NET IMPACT $0

X This rule is required by St ate law or Federal mandate. Please identify the state or federal law: 40 Code of Federal Regulations Parts 3, 9, 51, 60, 61, 63, 64, 69, 70, 71, 123, 142, 145, 162, 233, 257, 258, 271, 281, 403, 501, 745 and 763 EPA indicated in the Federal Register (70 FR 59848-59889) that the Government Paperwork Elimination Act of 1998 was a st rong driver for CROMERR. X Funding has been provided for the rule change. Please identify the amount pr ovided and the funding source: U.S. Environmental Protection Ag ency’s Exchange Network Grant Funding has not been provided for the rule. Please explain how the agency will pay for the rule change: Fiscal impact to persons affected by the rule: No fiscal impact is foreseen to businesses or the general public. Fiscal impact to Counties or other Local Go vernments (required by Iowa Code 25B.6): Counties or local governments with delegation of the affected Title 40 of the Code of Federal Regulations programs are also subject to this federal requirement. The electronic filing of EPA grants and other financial assi stance are exempt from CROMERR. * If additional explanation is needed, please attach extra pages. Agency Representative preparing estimate: Wendy Rains Telephone Number: 515-281-6061