Federal Register / Vol. 61, No. 98 / Monday, May 20, 1996 / Proposed Rules 25173

PART 356—SALE AND ISSUE OF

MARKETABLE BOOK-ENTRY

TREASURY BILLS, NOTES, AND

BONDS (DEPARTMENT OF THE

TREASURY CIRCULAR, PUBLIC DEBT

SERIES NO. 1–93)

Authority: 5 U.S.C. 301; 31 U.S.C. 3102, et

seq.; 12 U.S.C. 391.

Date: May 15, 1996.

Darcy Bradbury,

Assistant Secretary (Financial Markets).

[FR Doc. 96–12630 Filed 5–16–96; 11:00 am]

BILLING CODE 4810–39–W

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 55

[FRL–5507–7]

RIN 2060–AG40 and AG39

Outer Continental Shelf Air

Regulations Delegation Remand

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: The EPA is proposing

revision to the outer continental shelf

(OCS) regulations in response to a

voluntary remand from the U.S. Court of

Appeals for the District of Columbia

Circuit. These regulations establish air

pollution control requirements for

certain sources located on the OCS.

In response to the requirements of

section 328 of the Clean Air Act (Act),

on September 4, 1992, EPA promulgated

the OCS regulations setting up two

regimes for controlling air pollution

from OCS sources for the purposes of

attaining and maintaining Federal air

quality standards and to comply with

certain Act requirements for

preconstruction review of new and

modified major sources. Sources located

within 25 miles of the States’ seaward

boundaries (the 25-mile limit) must

comply with regulations which are, in

most respects, the same as the

regulations for similar sources located

on shore. Sources beyond the 25-mile

limit are required to comply with

Federal new source performance

standards (NSPS), requirements for the

prevention of significant deterioration

(PSD), and national emission standards

for hazardous air pollutants (NESHAP)

related to attainment and maintenance

of ambient air quality standards or the

requirements of part C of title I of the

Act. The Federal operating permits

program and enhanced compliance

monitoring regulatory requirements will

also be incorporated into part 55 when

they are promulgated. In promulgating

the OCS regulations, EPA provided for

delegation to State and local agencies

the authority to implement and enforce

the regulations for sources within the

25-mile limit. However, EPA did not

provide for delegation of the authority

to implement and enforce the

regulations for sources located beyond

the 25-mile limit. The Santa Barbara

County Air Pollution Control District

(APCD) filed a petition for review of the

regulations on several issues, including

the issue of delegation beyond the 25-

mile limit. Upon EPA’s request for a

voluntary remand, the court remanded

the delegation issue to EPA for

reconsideration.

By this action, EPA is revising the

OCS regulations to provide for

delegation to State and local agencies

the authority to implement and enforce

the OCS regulations beyond the 25-mile

limit. Delegation of the program to any

specific State or local agency will be

under separate action.

DATES: Written comments on the

proposed action must be received by

EPA at the address below on or before

June 19, 1996.

ADDRESSES: Comments should be

submitted to the public docket for this

action is available for public inspection

and copying between 8:00 a.m. and 4:00

p.m., Monday through Friday, at the Air

and Radiation Docket and Information

Center (6102), Attention Docket A–95–

07, South Conference Center, Room 4,

401 M Street, SW, Washington, DC

20460. A reasonable fee for copying may

be charged.

FOR FURTHER INFORMATION CONTACT: Mr.

David Stonefield, U.S. EPA, MD–15,

Research Triangle Park, NC 27711,

telephone (919) 541–5350.

SUPPLEMENTARY INFORMATION:

I. Background and Purpose

A. Introduction

The Clean Air Act Amendments of

1990 (Pub. L. 101–549, 104 Stat. 2399

(1990)) added section 328 to the Act and

transferred authority to regulate sources

on part of the OCS from the Department

of the Interior (DOI) to EPA. The DOI

retained the authority to regulate OCS

sources in the Gulf of Mexico west of

87.5 degrees longitude. As to the

remaining portions of the OCS—the

Atlantic, Pacific, and Arctic coasts and

the Gulf of Mexico east of 87.5

degrees—section 328 requires EPA to

establish requirements for the control of

air pollution from OCS sources to attain

and maintain Federal and State ambient

air quality standards and to comply

with the provisions of part C (for the

prevention of significant deterioration)

of title I of the Act. For sources within

25 miles of the States’ seaward

boundaries, those requirements must be

the same as would be applicable if the

source were located in the

corresponding onshore area (COA). For

sources beyond the 25-mile limit, the

Administrator had discretion in

determining the requirements. The EPA

proposed (56 FR 63774, December 5,

1991) and promulgated (57 FR 40792,

September 4, 1992) regulations to

implement the requirements of section

328. The regulations require, among

other things, that sources located

beyond 25 miles of States’ seaward

boundaries meet applicable Federal

pollution control requirements which

include PSD, NSPS and NESHAP

regulations to the extent that they are

rationally related to protection of air

quality standards or part C of title I of

the Act (40 CFR 55.13). In addition, EPA

stated in the preamble to the final rule

that it would incorporate into the OCS

rules the requirements of the Federal

operating permits regulations (40 CFR

part 71) and the enhanced monitoring

regulations, when promulgated (57 FR

40803).

B. Delegation Authority

Section 328(a)(3) of the Act permits

States adjacent to an OCS source to

adopt and submit to EPA regulations for

implementing and enforcing the

requirements of that section. It requires

that:

[I]f the Administrator [of EPA] finds that

the State regulations are adequate, the

Administrator shall delegate to that State any

authority the Administrator has under this

Act to implement and enforce such

requirements.

Therefore, in the OCS regulations,

EPA included § 55.11 which authorizes

the delegation of the implementation

and enforcement authority to State and

local agencies for OCS sources that are

located within the 25-mile limit.

However, in the preamble to the

proposed and final rules, EPA stated

that it would retain the authority to

implement and enforce the OCS

regulations for sources located beyond

the 25-mile limit for two reasons. First,

since the sources located beyond the 25-

mile limit are subject only to Federal

requirements, the State would have to

adopt two OCS programs, one for

sources within the 25-mile limit and

one for sources beyond the limit.

Second, it may be difficult to determine

the appropriate agency to receive

delegation for sources located beyond

the 25-mile limit (56 FR 63784 and 57

FR 40801–802). Therefore, in the final
25174 Federal Register / Vol. 61, No. 98 / Monday, May 20, 1996 / Proposed Rules

1Another issue raised by the Santa Barbara

County APCD petition involved EPA special offset

provisions for OCS sources. On August 12, 1994,

the court vacated that portion of the OCS

regulations and remanded it to EPA for further

consideration. Elsewhere in today’s Federal

Register, EPA is promulgating an interim final

regulation revising the OCS regulation in

accordance with the court’s instructions.

rule, EPA did not provide for the

delegation of the implementation and

enforcement authority for sources

beyond the 25-mile limit.

C. Judicial Review

On November 2, 1992, the Santa

Barbara County APCD filed a petition

for review of the OCS regulations with

the U.S. Court of Appeals for the District

of Columbia Circuit (Santa Barbara

County Air Pollution Control District v.

EPA, 31 F. 3rd 1179 (D.C. Cir., 1994)).

One of the issues that the Santa Barbara

County APCD raised was EPA’s failure

to provide for delegation of the

authority to implement and enforce the

OCS regulations for sources located

beyond 25 miles from a State’s seaward

boundary.1 In reviewing the issue, EPA

determined that section 328 of the Act

requires it to delegate any authority the

EPA has under the Act to implement

and enforce the requirements of section

328(a) if it determines that the State

government has adequate regulations.

Therefore, EPA requested the court to

remand this issue to it for

reconsideration.

II. Revisions to the Regulations

The OCS regulations contain three

references to the delegation authority

beyond the 25-mile limit. The EPA is

proposing in each case to revise the

language of the OCS regulations to make

clear that EPA may delegate the

authority to implement and enforce the

OCS regulations for the OCS sources

beyond the 25-mile limit. Specific

regulatory changes are proposed for

§§ 55.3(c), 55.6(d), and 55.11(a). In

addition, to allow for the delegation of

authority for sources beyond the 25-mile

limit, revisions in the wording of other

sections are necessary to clarify the

regulations. The specific regulatory

changes proposed include revisions to

§ 55.2 (definition of nearest onshore

area) and the addition of § 55.11(j).

Section 55.3 establishes the

applicability of the regulations for OCS

sources. Section 55.3(c) relates to

sources located beyond the 25-mile

limit and excludes those sources from

the requirements of § 55.11, which

specifically deals with the delegation of

the authority for implementation and

enforcement within the 25-mile limit.

The EPA proposes to delete the

reference in § 55.3(c) that provides that

the delegation requirements of § 55.11

do not apply for sources located beyond

the 25-mile limit.

Section 55.6 establishes permit

requirements for OCS sources. Section

55.6(d) relates to sources located beyond

the 25=mile limit, and paragraph (2)

states that the Administrator will retain

the authority to implement and enforce

the OCS regulations for those sources.

The proposed revisions would delete

the existing paragraph (2) and replace it

with a new paragraph (2) which defines

the permit requirements for sources if

the program is delegated. The new

provisions prohibit the issuance of

permits to operators that have not

demonstrated compliance with all

applicable requirements of the OCS

regulations. This new paragraph is

identical to the paragraph in § 55.6(c)

for sources located within the 25-mile

limit.

Section 55.11 currently establishes

the requirements for the delegation of

the implementation and enforcement of

the OCS regulations within the 25-mile

limit. The EPA proposes to revise

§ 55.11(a) to clarify that the State can

request delegation for sources beyond

the 25-mile limit, as well as for sources

located within the 25-mile limit.

The existing definition of ‘‘nearest

onshore area’’ (NOA) only applies to

sources within 25 miles of States’

seaward boundaries. Under the existing

regulatory scheme for OCS sources in

which EPA retained all authority for

sources beyond the 25-mile limit, the

definition was only needed for sources

located within 25 miles of States’

seaward boundaries. However, in

delegating the authority to implement

and enforce the regulations for sources

beyond the 25-mile limit, it will be

necessary to determine the NOA for the

source. Therefore, EPA is proposing to

expand the NOA definition by deleting

the limitation to sources within 25 miles

of the States’ seaward boundaries.

A new subsection ‘‘(j)’’ is proposed for

§ 55.11 to define the exercise of

authority over OCS sources. The

delegated agency in the COA for sources

located within the 25-mile limit and the

delegated agency in the NOA for sources

located beyond the 25-mile limit will

exercise all delegated authority. If there

is no delegated agency in the COA or

NOA, EPA will issue permits and

implement and enforce the OCS

regulations. This language mirrors that

of § 55.5(c)(4), which discusses the

exercise of authority for sources within

the 25-mile limit.

Section 328(a)(4)(B) of the Act and

§ 55.5 of the OCS regulations establish

a procedure for areas other than the

NOA to be designated as the COA for

sources within the 25-mile limit.

Pursuant to § 55.5, for an area other than

the NOA to be designated as the COA,

it must demonstrate, among other

things, that it has more stringent air

pollution control regulations than the

NOA. Since sources located beyond the

25-mile limit are subject only to Federal

regulations, as identified in § 55.13, any

delegated State or local agency would be

enforcing the same regulations.

Therefore, for sources beyond the 25-

mile limit, EPA will delegate the

authority to implement and enforce the

OCS regulations only to the State or

local agency that is responsible for the

NOA, assuming that the requirements

for delegation are met (§ 55.5(b)).

The EPA is also rescinding that

preamble language which specifically

states that delegation beyond the 25-

mile limit is unacceptable (57 FR 40794,

40797, 40801, and 40802).

III. Administrative Requirements

A. Executive Order 12866

Under Executive Order 12866, the

Agency must determine whether the

regulatory action is significant and

therefore subject to the Office of

Management and Budget (OMB) review

and the requirements of the Executive

Order. The Order defines significant

regulatory action as one that is likely to

result in a rule that may:

(1) Have an annual effect on the

economy of $100 million or more or

adversely affect in a material way the

economy, productivity, competition,

jobs, the environment, public health or

safety or State, local, or tribal

governments or communities;

(2) create a serious inconsistency or

otherwise interfere with an action taken

or planned by another Agency;

(3) materially alter the budgetary

impact of entitlements, grants, user fees,

or loan programs or the rights and

obligations of recipients thereof; or

(4) raise novel legal or policy issues

arising out of legal mandates, the

President’s priorities, or the principles

set forth in the Executive Order.

Pursuant to the terms of Executive

Order 12866, OMB has determined that

the revisions to the OCS rules are

‘‘significant’’ because the OCS sources

would be regulated by two Federal

agencies, EPA and DOI. As such, this

action was submitted to OMB for

review. Changes made in response to

OMB suggestions or recommendations

are documented in the public record.

B. Unfunded Mandates Act

Section 202 of the Unfunded

Mandates Act of 1995 requires that EPA

prepare a budgetary impact statement
Federal Register / Vol. 61, No. 98 / Monday, May 20, 1996 / Proposed Rules 25175

before promulgating a rule that includes

a Federal mandate that may result in

expenditures by State, local, and tribal

governments, in aggregate, or by the

private sector, of $100 million or more

in any 1 year. Section 203 requires EPA

to establish a plan for obtaining input

from, informing, educating, and

advising any small governments that

may be significantly or uniquely

affected by the rule.

Under section 205 of the Unfunded

Mandates Act, EPA must identify and

consider a reasonable number of

regulatory alternatives before

promulgating a rule for which a

budgetary impact statement must be

prepared. The EPA must select from

those alternatives the least costly, most

cost-effective, or least burdensome

alternative that achieves the objective of

the rule, unless EPA explains why a

particular alternative is not selected or

the selection of a particular alternative

is inconsistent with law.

Because this proposed rule does not

impose any new mandates on State,

local, or tribal governments, and the

rule is estimated to result in the

expenditures by State, local, and tribal

governments or the private sector of less

that $100 million in any 1 year, EPA has

not prepared a budgetary impact

statement or specifically addressed the

selection of the least costly, most costeffective, or least burdensome

alternative. Because small governments

will not be significantly or uniquely

affected by this rule, EPA is not required

to develop a plan with regard to small

governments. However, EPA will work

with eligible State and local air

pollution control agencies to assist them

in requesting delegation of authority to

implement and enforce the OCS

regulations.

C. Paperwork Reduction Act

These rule revisions do not contain

any information collection requirements

subject to review by the OMB under the

Paperwork Reduction Act of 1980, 44

U.S.C. § 3501, et seq.

D. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA)

of 1980 requires Federal agencies to

identify potentially adverse impacts of

Federal rules upon small entities. Small

entities include small businesses,

organizations, and governmental

jurisdictions. In instances where

significant economic impacts are

possible on a substantial number of

these entities, agencies are required to

perform a regulatory flexibility analysis.

Furthermore, EPA Guidelines for

Implementing the Regulatory Flexibility

Act, issued on April 9, 1992, require the

Agency to determine whether

regulations will have any economic

impacts on small entities. These

revisions to the OCS regulations do not,

in themselves, impose any requirements

on small entities, nor require or exclude

small entities from meeting the

requirements of the OCS regulations. As

a result, EPA has determined that these

revisions will not have a significant

impact on a substantial number of small

entities.

Therefore, as required under § 605 of

the RFA, 5 U.S.C. 605, I certify that

these revisions do not have a significant

impact on a substantial number of small

entities.

List of Subjects in 40 CFR Part 55

Environmental protection,

Administrative practice and procedures,

Air pollution control, Continental shelf,

Intergovernmental relations, Nitrogen

oxides, Ozone, permits, Reporting and

recordkeeping requirements, Sulfur

oxides.

Dated: May 13, 1996.

Carol M. Browner,

Administrator.

For reasons set out in the preamble,

40 CFR part 55 is proposed to be

amended as set forth below.

PART 55—OUTER CONTINENTAL

SHELF AIR REGULATIONS

1. The authority citation for part 55

continues to read as follows:

Authority: Section 328 of the Clean Air Act

(42 U.S.C. 7401 et seq.) as amended by Public

Law 101–549.

§ 55.2 [Amended]

2. In § 55.2 the introductory text of the

definition of ‘‘Nearest Onshore Area’’ is

proposed to be amended by adding a

comma after ‘‘OCS source’’ and

removing the words ‘‘located within 25

miles of the States’ seaward boundary,’’

which follows.

3. Section 55.3 is proposed to be

amended by revising paragraph (c) to

read as follows:

§ 55.3 Applicability.

* * * * *

(c) The OCS sources located beyond

25 miles of States’ seaward boundaries

shall be subject to all the requirements

of this part, except the requirements of

§§ 55.4, 55.5, 55.12 and 55.14 of this

part.

* * * * *

4. Section 55.6 is proposed to be

amended by revising paragraph (d)(2) to

read as follows:

§ 55.6 Permit requirements.

* * * * *

(d) * * *

(1) * * *

(2) The Administrator or delegated

agency shall not issue a permit to

operate to any existing OCS source that

has not demonstrated compliance with

all the applicable requirements of this

part.

* * * * *

5. Section 55.11 is proposed to be

amended by revising paragraph (a) and

by adding paragraph (j) to read as

follows:

§ 55.11 Delegation.

(a) The governor or the governor’s

designee of any State adjacent to an OCS

source subject to the requirements of

this part may submit a request, pursuant

to section 328(a)(3) of the Act, to the

Administrator for the authority to

implement and enforce the

requirements of this OCS program (i)

within 25 miles of the State’s seaward

boundary and/or beyond 25 miles of the

State’s seaward boundary. Authority to

implement and enforce §§ 55.5, 55.11,

and 55.12 of this part will not be

delegated.

* * * * *

(j) Delegated Authority.

The delegated agency in the COA for

sources located within 25 miles of the

State’s seaward boundary or the

delegated agency in the NOA for sources

located beyond 25 miles of the State’s

seaward boundary will exercise all

delegated authority. If there is no

delegated agency in the COA for sources

located within 25 miles of the State’s

seaward boundary, or in the NOA for

sources located beyond 25 miles of the

State’s seaward boundary, the EPA will

issue the permit and implement and

enforce the requirements of this part.

For sources located within 25 miles of

the State’s seaward boundary, the

Administrator may retain the authority

for implementing and enforcing the

requirements of this part if the NOA and

COA are in different States.

[FR Doc. 96–12627 Filed 5–17–96; 8:45 am]

BILLING CODE 6560–50–P

40 CFR Part 261

[SW–FRL–5507–8]

Hazardous Waste Management

System; Identification and Listing of

Hazardous Waste; Proposed Exclusion

AGENCY: Environmental Protection

Agency.

ACTION: Proposed rule and request for

comment.

SUMMARY: The Environmental Protection

Agency (EPA) is proposing to grant a