United States
            Environmental Protection
            Agency
            Office Of Water
            (EN-336)
October 1990
&EPA
State Sludge Management
Program Guidance Manual
                                        Printed on Recycled Paper

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      \      UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

      ?                 WASHINGTON, D.C. 20460
     jf


                           DEC 20  1990
M-RMORANDUM

SUBJECT:  Sludge Program
                                                       OFFICE OF
                                                        WATER
User/Tf the State Sludge Management Program Guidance


                  to Section 405 of the Clean Water  Act
      In the 1987 Amen ^-nts  o  ec




 promulgated regulations on ^,2'  permit conditions in NPDES
 requirements for de^elฐ^n^ f^?? an^for approval of State
 permits  (40 CFR Parts 122 ^^/administered either through
 Sludge -anagement programs that  are admin^ non_NpDฃS         s

 NPDES programs  (40 CFR Part 1 2^ ฐ   Management Program Guxdance
  (40 CFR  Part 501). _  The State  Sludge na  g    development  of State
  is designed to  assist State P^sฐ^? thS requirements  of  the
  sludge management Programs ^  mjjt the ^qu ^     ional   d

                           ItV1          of  those  submissions.
       The guidance

       Tollf^^^
  Description; and  (5  ^mฐ^n^mf^n??S ?he development of an
         -on   ch       en     in appendices .  Thi;

  closely follows the State program  regulations  s     RegioMl

              ^  both P-rogra^efopLnt  anl evaluation.
        EPA encourages States to begin developing program

   submissions as soon as Pฐs""ฃ "„ฃฃ Sandlrds for sludge use
   programs can be in place when t^hScal standards are currently
   Snd disposal are promulgated.  <^c™^rSearly 1992.)  Early

                              SnSlze^L disruption of existing
                                                             Printed on Rtcycltd Paper

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™    Programs and hel? tฐ fulfill the Congressional intent and
EPA policy to have sludge management remain primarily a matter of
State and local concern.

     I hope that you will find this guidance useful in producing
approvable State programs.  For further information concerning
this guidance, or for questions concerning State program
requirements, please contact Lynn Holloway of my staff at (202)
475-9520.                                                 v    '

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                         TABLE OF CONTENTS
CONTENTS                                                      PAGE

1.  INTRODUCTION ....... .................. ..... • ...........   M

   1 1   PURPOSES OF THIS MANUAL  .......................... •  • •   1-1
   1 2   BACKGROUND OF THE SLUDGE PROGRAM ...................   1-2
   1.3   STATE INVOLVEMENT IN THE CLEAN WATER ACT SLUDGE
        PROGRAM        ................ ....................   ^
   1.4   SUPPLEMENTAL SOURCES OF INFORMATION  .................   1-5
   1.5   ORGANIZATION OF THIS MANUAL  .........  ................   1-6

2.  PROCEDURES FOR STATE PROGRAM APPROVAL, MODIFICATION,
   AND WITHDRAWAL  .......................................   2'[
    2 1  APPROVAL OF STATE PROGRAMS ..........................    2-1
    2.2  PROGRAM MODIFICATION PROCESS ................... ......    2-6
    2.3  WITHDRAWAL OF STATE PROGRAMS ...... ......... .........    2-7
3.   LEGAL AUTHORITY
    3.1  STATUTORY AUTHORITY  . ...............................  3"1
    3.2  REGULATORY AUTHORITY  ...... ..................... • • •   ?-10-
    3 3  ATTORNEY GENERAL'S STATEMENT  ..... ..................   3-21
    3.4  STATUTORY AND REGULATORY REQUIREMENTS CHECKLIST ......   3-22
 4.  PROGRAM DESCRIPTION
    4.1  PROGRAM SCOPE  ..... ................................    4'2
    4.2  PROGRAM ORGANIZATION AND ADMINISTRATIVE STRUCTURE  ....   4-4
    4.3  RESOURCES ......... .............. • .................    ^
    4.4  PERMITTING  ........................................    4~8
    4.5  COMPLIANCE EVALUATION PROGRAM  ......................  4'12
    4.6  ENFORCEMENT   ......................................
    4.7  PROGRAM DESCRIPTION CHECKLIST  .................... • • •
 5.  MEMORANDUM OF AGREEMENT
    5 1   MEMORANDUM OF AGREEMENT FOR A NPDES PROGRAM  ........   5-1
    5.2   MEMORANDUM OF AGREEMENT FOR A PART 501 PROGRAM  ......   5-2
    5.3   MODEL MEMORANDA OF AGREEMENT  ................... • •   5-5.
                                   11

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                             APPENDICES


APPENDIX A - MODEL ATTORNEY GENERAL'S STATEMENT  		    A-l

APPENDIX B - ORGANIZATIONAL CHARTS 	    B-l


                      LIST OF TABLES AND FIGURES



TABLE                                                          PAGE


TABLE 1-1   STATES APPROVED TO ADMINISTER THE NATIONAL POLLUTANT
           DISCHARGE ELIMINATION SYSTEM (NPDES) PERMITTING
           PROGRAM	    M

TABLE 2-1   ELEMENTS OF STATE PROGRAM SUBMISSION  	   2-2

TABLE 3-1   FEDERAL DEFINITION OF SEWAGE SLUDGE 	-'....   3-4

TABLE 3-2   TERMS WHICH SHOULD BE DEFINED IN STATE. LEGAL
           AUTHORITIES  	   3'12

TABLE 3-3   EXAMPLE INCORPORATION BY REFERENCE LANGUAGE 	   3-13

TABLE 3-4   STANDARD CONDITIONS TO BE PLACED IN ALL SLUDGE USE
           AND DISPOSAL PERMITS	• • • •   3-17

TABLE 3-5   GOOD CAUSES FOR PERMIT MODIFICATION 	   3-19

TABLE 5-1   REPORTS TO EPA 	
 FIGURE
                                                                 PAGE
 FIGURE 2-1  OVERVIEW OF THE STATE PROGRAM APPROVAL PROCESS  	   2-4
                                   111

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                    1.  ORGANIZATION AND USE OF THIS MANUAL

1.1 PURPOSES OF THIS MANUAL
     This manual has two purposes. First, it provides guidance to State personnel for assembling a
State sludge program application.  Second,  it specifies the procedures by which the U.S.
Environmental Protection Agency (EPA) will evaluate the State sludge program application. The
manual is intended to provide guidance to both State and Federal personnel who are either preparing
or evaluating the State sludge program application.

     The manual describes requirements for a State program under the two options specified in the
Federal regulations:

     •  Under 40 Code of Federal Regulations (CFR) Part 123, if the State decides to modify its
        National Pollutant Discharge Elimination'System (NPDES) program to add sludge permitting
        requirements; or
     •  Under 40 CFR Part 501,  if the State decides to administer a non-NPDES program.

Each chapter of this manual discusses State sludge program requirements both for NPDES program
revisions and for non-NPDES programs.  The requirements for either type of program are essentially.
the same.  This  manual also contains checklists on legal authority and program requirements. These
checklists will assist State personnel in developing complete and approvable programs, and will also
assist EPA staff in evaluating program submissions by facilitating a comparison of the State's
program with EPA's requirements.  The manual also  includes sample Memoranda of Agreement
(MOA),  an Attorney General's  statement,  and an organizational chart which States can modify to
reflect their own sludge programs.

      The surest way to prepare a successful program submission and to minimize time-consuming
difficulties later in the process  is for State personnel to work closely with EPA Regional and
Headquarters staff, who can  assist and speed the State's efforts. The State should establish
 communication  with its EPA Region early in the process so that Agency staff can comment on
 proposed regulations and draft  program documents to ensure their approvability.
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   1.2 BACKGROUND OF THE SLUDGE PROGRAM
       For nearly two decades, the focus of EPA and State wastewater control programs has been to
   prevent pollutants from reaching surface waters.  The vigorous administration of the NPDES permits
   program under the Clean Water Act (CWA) has forced the development and installation of
   technologies capable of achieving significant pollutant removal from industrial and municipal
   wastestreams.  However, the success in cleaning the Nation's waterways has led to a concern that
   toxic and nonconventional pollutants removed from wastewaters by the treatment process are ending
   up in the sewage sludge, thus contaminating the sludge and making it more difficult to take
   advantage of its beneficial properties. The challenge facing Federal, State, and local governments is
  to control the generation, use, and disposal of sewage sludge to maximize its beneficial uses and
  ensure that it is safely disposed of in a manner that protects public health and the environment.

       CWA Section 405 requires EPA to promulgate standards for the use and disposal of sewage
  sludge that protect public health and the environment.  On February 6, 1989, EPA proposed such
  standards for five sludge use and disposal practices (54 fed, Rgg. 5746). These rules are scheduled
  to be promulgated in late 1991. In addition,  when the U.S. Congress amended the CWA on
  February  4,  1987, it amended Section 405 to require that sludge standards be implemented through
  permits  issued by EPA or by a State pursuant to an  approved program.  On May 2, 1989, EPA
  promulgated regulations establishing  sludge permitting requirements and procedures, as will as
-.requirements for State sludge programs (see 54 Fed. Reg.' 18746).  These regulations are set forth in
 40 CFR Parts 122, 123, 124, and 501.  Prior to the promulgation of the technical standards, EPA
 will focus on regulating Publicly Owned Treatment Works (POTWs) through NPDES permite issued
 under CWA Section 402, under EPA's Interim Permitting Strategy.1

 1.3 STATE INVOLVEMENT IN THE CLEAN WATER ACT SLUDGE PROGRAM
     The CWA  amendments and the  promulgation of Federal sludge permitting and State program
 regulations establish a legal and programmatic framework for a national sludge use and disposal
 program.   Like the NPDES program, Congress intended the sludge management program to be
 implemented and enforced primarily at the State level. EPA believes that sludge management
 remains a local concern that should be handled at the State and local levels (see EPA's 1984 Policy
    'States may participate in this interim program by entering into an informal agreement with EPA
or by obtaining full program approval.  See the Sewage Sludge Tntarir -
Water Enforcement and Permits, September 1989.
                                             1-2

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 on Municipal Sludge Management").  Thus, EPA encourages States to assume responsibility for
implementing the sludge permitting program by submitting a program application for approval.

     Through the program approval process,  a State demonstrates that it has an effective sludge
program that will implement and enforce Federal standards.  There are several advantages to
obtaining Federal approval of State sludge management programs:

     •  Many States already have effective sludge management programs  in place. Their experience
        and expertise can ensure implementation of the Federal sludge standards (40 CFR Part 503)
        in an efficient and comprehensive  manner;
     •  States are in a better position to apply Federal and State  standards in a manner that
        encourages  beneficial use and promotes sludge as a resource;
     •  States obtaining program approval will retain maximum control over State and local
        decisions and policies governing safe use and disposal of sewage  sludge; and
     •  States obtaining program approval will eliminate disruption to existing sludge programs.
        (Unless the State obtains approval for its own sludge program,  EPA will be required to
        permit all treatment works in the State which treat domestic sludge.  Thus, these facilities
        could be required to obtain both Federal and State permits.)

     Section 405 of the  CWA allows States two options for seeking EPA approval of a State sludge
management program.  A State with an approved NPDES program (these States are listed in
Table 1-1) may choose to integrate sludge use and disposal regulations  into its NPDES program.  To
obtain approval for  this  revised NPDES program,  a State need only augment the materials previously
submitted under 40  CFR Part 123 to explain how sludge management will be implemented through
its NPDES program.  Similarly, a State seeking approval of its NPDES program may include a
sludge management component  in its program submission.

     Alternatively,  a State may choose to  issue sludge permits separately from NPDES, such as
 through a solid waste program that manages  land disposal or an  air program that manages sewage
 sludge incinerators. It is not necessary for a  State to have an approved  NPDES program to gain
 approval for a sludge management program.  Dividing the sludge permitting responsibilities among
 several State agencies is also an option. These non-NPDES programs are submitted and evaluated
 using the procedures set forth in 40 CFR Part 501.
                                              1-3

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      TABLE 1-1.  STATES APPROVED TO ADMINISTER THE
NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSIfEM (NPDES)
                  PERMITTING PROGRAM
• Alabama
• Colorado
• Georgia
• Indiana
• Kentucky
• Minnesota
• Montana
• New Jersey
• North Dakota
• Pennsylvania
• Tennessee
• Virgin Islands
. , • West Virginia
• Arkansas
• Connecticut
• Hawaii
• Iowa
• Maryland
• Mississippi
• Nebraska
• New York
• Ohio
• Rhode Island
• Utah
• Virginia
• Wisconsin
• California
• Delaware
• Illinois
• Kansas
• Michigan
• Missouri
• Nevada
• North Carolina
• Oregon
• South Carolina
• Vermont
• Washington
• Wyoming
                         1-4

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     EPA intends to propose regulations which will authorize States to submit a partial sludge
management program.  States may choose to submit a partial sludge management program, for
example, where a State agency has responsibility for fully regulating a particular use or disposal
practice. The program may be administered as part of an existing program, e.g., the State's solid
waste program.  This approach gives the States maximum flexibility in adapting Federal sludge
requirements to existing State programs.

     A State submission for a partial program must clearly identify which aspects of the program it
plans to assume.  The State should explain why it is unable to assume a full program.  A  partial
State sludge program will be  allowed only where a State agency has a complete permit program,
including permit development, issuance, compliance monitoring,  and enforcement responsibilities.
This permit program must cover all facilities using the particular sludge use or disposal practice that
falls within the jurisdiction of the State agency or department. All users and disposers under a
particular practice would be subject to the partial program, even if not required to obtain  a permit.

      EPA  will provide additional guidance on partial sludge programs once the regulations have been
finalized.  Until that time, EPA will assist States interested in partial programs on a case  by case
basis.

 1.4  SUPPLEMENTAL SOURCES OF INFORMATION
      The State can obtain additional information on EPA's sludge management program from the
 following  documents:

      •  Guidance for Writing Case-bv-Case Permit Requirements for Municipal Sewage  Sludge.
         Office of Water,  May 1990
      •  Sewage Sludge Interim Permitting Strategy,  Office of Water, September 1989
      •  Summary of Environmental Profiles and Hazard Indices for Constituents of Municipal
         Sludge, July 1985
      •  Guidance on Sampling and Analysis of Municipal Sewage Sludge. Office of Water, August
         1989
      • Final Permitting and State Program Regulations, May 2, 1989, 54 FR 18716
      • Criteria for Classification  of Sewage Sludge Disposal Facilities, September 13, 1979, 44 FR
         53460
       • Proposed Standards for the Disposal of Sewage Sludge, February 6, 1989, 54 FR 5746
                                               1-5

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                                                           •Sewage Treatment Plants' October
      •  Proposed Codisposal Sewage Sludge Regulations, August 30, 1988, 53 FR 33314

 1.5  ORGANIZATION OF THIS MANUAL

      The remainder of this manual is organized into four chapters and two appendices. Chapter 2
 reviews the basic contents of a program application and outlines EPA's procedures for program
 approval.  Chapter 3 presents minimum statutory and regulatory authority which the State needs to
 implement and enforce a sludge program.  Chapter 4 details the contents of the program submission,
 including the program's organization; necessary resources; and procedures for reviewing permit
 applications, drafting and issuing permits, conducting compliance monitoring, and taking enforcement
 actions.  Chapter 5 discusses the Memorandum of Agreement between the State and the EPA
 Regional Office, which explains how they will work together after the program is approved.
 Example MOA appear at the end of that chapter.

     Two appendices are also contained in this manual.  Appendix A contains a model Attorney
General's statement.  Appendix B provides example organizational  charts of a State agency
administering the  State's sludge program.
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                 2  PROCEDURES FOR STATE PROGRAM APPROVAL,
                         MODIFICATION, AND WITHDRAWAL

     This chapter addresses the process by which a State sludge program application is assembled
and explains the steps EPA will follow in evaluating the documents, including public involvement,
prior to a decision on approval. The chapter also briefly discusses the procedures for  program
revision and withdrawal.

2.1  APPROVAL OF STATE PROGRAMS
     CWA Section 405 provides flexibility with regard to State organization of sludge management
programs by establishing two approaches for program approval:

     •  Expanding a State's existing NPDES program authority (40 CFR Part 123); or
     .  Establishing a non-NPDES sludge program (40 CFR Part 501).

 Both approaches require the preparation of the documents listed in Table 2-1, although approved
 State NPDES programs need only revise their previously approved documents to address sludge
 management.

      States are free to choose the approach that best suits their  organization and needs.  If a State
 does not currently have an approved NPDES program, or sludge will be regulated by a State entity
 other  than its NPDES  agency, it will need to apply for sludge program approval through the 40 CFR
 Part 501 process. If a State has an approved NPDES program and the State NPDES agency will be
 assuming sludge management responsibilities, application for approval through the 40 CFR Part 123
 process should be less burdensome because only modifications  to its NPDES program may be
 required.  The two approaches differ from one another primarily in relation to the amount of
 documentation a State must submit to show that its program satisfies CWA Section 405  and related
 program requirements.

  2.1.1 Overview of the Approval Process
       A State's decision to seek  approval of its sludge management program triggers a process
  designed  to ensure that the State agency implementing the program has sufficient legal authority,
  procedures, and resources to manage and operate the program properly.  There are a number
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                  TABLE 2-1.  ELEMENTS OF STATE PROGRAM SUBMISSION

       '
 of phases and activities in this process that must be jointly undertaken by EPA and the State  Each
 step „ .mponant to the successful approval of the State's proposed program, although they may not
 *ways occur in the order outlined (see Figure 2-1).  Also, repeating some steps may be necessary  in
 order to develop a successful program that will be operated in full compliance with the CWA
     Prior to assembling its program submission, a State should review EPA', regulations at 40 CFR
Pans 122, 123,  124, and 501, which detail the program's purposes, scope, and requirements  The
State should also monitor EPA's progress in establishing technical standards for sludge use and
disposal (40 CFR Part 503), since each approved State will have to adopt these standards when
promulgated.
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State Self-Evaluation
     Once a State becomes familiar with the contents and purposes of the Federal program, the next
steps are to analyze its own legal authority to administer a similar program and to estimate the
resources needed to run it effectively.  The State's legal analysis should examine statutes,
regulations, and applicable judicial decisions to determine whether there is a need for additional
statutory authority or revised regulations.  The State must  also explore sources of funding necessary
to administer the program.

Meeting with EPA
      At this point, if a State has not already done so, it should alert the EPA Regional Office of its
 intentions and seek input and assistance on development of its program submission.  The State should
 meet with the EPA Regional staff to review State legal authorities, to anticipate program needs, and
 to establish a timetable for assembling the program submission. This will ensure that all relevant
 issues are raised at an early  stage.

      After the initial meeting with EPA, the State should revise its authorities, if necessary.  Since
 legislative enactments are  a common source of delay  in the approval process, these changes, if
 needed, should be pursued as quickly as possible.  By addressing EPA's comments at this early
 juncture,  the remainder  of the State's program approval process can proceed quickly.  The State may
 then turn its attention to other documents required for the program submission.  Once the State has
 assembled its draft  submission, it is forwarded to the EPA Regional Office for detailed review and
  comment.
  EPA Review of Draft Submission
       The EPA Regional Office will provide EPA Headquarters [i.e., the Office of Water
  Enforcement and Permits (OWEP)]  with copies of the State's draft submission. Both Headquarters
  and the Region will then review the application to determine its consistency with the Clean Water
  Act and the Federal sludge management program regulations. EPA Headquarters and the Regional
  Office will coordinate their findings and provide the State with a single set of written comments.
  Upon receipt of EPA's comments on the draft program submission, the State may need to revise
  program application documents to incorporate or otherwise resolve outstanding EPA concerns.
                                                 2-3

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                             STATE
                                                        EPA ACTTVTTTFS
      State Conducts
     Self-Evaluation of
    Legal Authority and
        Resources


State Determines
. to Seek
Program Approval


                             State Submits Draft
                             Application to EPA
                              Regional Office
                                State Revises
                              Application and
                            Formally Submits to
                               EPA Regional
                               Administratror
                               State Submits
                            Additional Materials
  State Meets with EPA
     Regional Staff
   EPA Headquarters
  and Region Comment
        on Draft
 Region, with Headquarters
 Concurrence, Determines
  Completeness within 30 "
          Days
                                                       Proposed Approval
                                                   Publicly Noticed by Region
                                                     (Opportunity for Public
                                                           Hearing)
                                Approval
                             Publicly Noticed
Comments Considered in
 Final Agency Decision
FIGURE 2-1. OVERVIEW OF THE STATE PROGRAM APPROVAL PROCESS

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State's Formal Submission
     Once a State revises its draft submission to address EPA comments, the State's Governor
should formally transmit the final submission to the EPA Regional Administrator [as provided by 40
CFR 501.11(a)(l) or, for States modifying their NPDES program, in 40 CFR 123.21(a)].  The State
needs to submit three copies of the final program submission to EPA.

Final EPA Review
     The procedures for reviewing a State's formal program submission are set out in 40 CFR
501.31 and 123.61.  Within 30 days of receipt of a State program submission, the Regional
Administrator must determine whether  the submission is complete.  As a practical matter,  if the State
has worked closely with EPA, there is  little chance of a negative finding at this juncture.  Prior to
issuing this finding, the Region will seek the concurrence of the Director of OWEP and the Associate
General Counsel for Water at EPA  Headquarters. Assuming the State's submission is complete,
EPA has 90 days to approve or deny the request for  State program approval, although this period
can be extended if the State agrees.  If the State's submission is incomplete, the 90-day "clock" will
not commence until EPA receives the additional  materials it needs.

Public Comment
      Once a completeness  determination is made, the EPA  Region publishes notice of a State's
 application for approval of its sludge management program in the Federal Register and in the largest
 newspapers in the State to attract Statewide attention. The EPA Region also mails notices of the
 State's application to all persons known to be  interested in  such matters, including all persons on
 appropriate State and EPA permitting mailing  lists and all treatment works treating domestic sewage
 listed on the inventory which is submitted as part of the State's application. The notice provides a
 comment period of at least 45 days to allow interested members of the public to express their views
 about the State's program  submission.

      In addition, the notice indicates when and where any  public hearings will be held, or if one has
 not been scheduled, how interested members of the public  may request that a hearing be held.1  It
 specifies where and when the State's submission will be available to the public and indicates the cost
      'EPA must provide at least 30 days notice to the public of the date and place of any hearing
  which is scheduled.
                                               2-5

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   of obtaining a copy.  The notice outlines the fundamental aspects of the State's proposed program
   Finally, the notice directs interested members of the public to an EPA Regional  contact who can
   provide additional information on the State's application.

   EPA's Decision

        Following the close of public comment period, EPA considers all significant comments in
   making its decision on program approval.  The Regional Administrator, again with the concurrence
   of the Director of OWEP and the  Associate General Counsel for Water, determines whether to
   approve the State's program.

  Notice Of an Approved  Program

       If the program is approved, the Governor of the State is notified and a public notice (including
  a summary of responses to significant public comments) is published in the Federal Register and
  mailed to all interested parties [see 40 CFR 124.10(c) for a list of interested parties].  This public
  notice explains the basis for EPA's decision.  If a State's program is not approved, EPA notifies the
  State and indicates the reasons for disapproval and the revisions  necessary for subsequent approval.

  2.2  PROGRAM MODIFICATION PROCESS
  2'2'1  Submission Of State Prn?ram
      State programs are expected to change over time.  Such changes might include, for example
 addition of a new method of sludge use or disposal; the use of general permits; adoption of new or
 revised disposal standards; transfer of the program administration from one State agency to another
 or the adoption of revised State forms.  In such cases, a State must request a modification to its
 approved program.

      Section 501.32(a) specifies that an approved State shall revise its program within one year after
promulgation of new or revised Federal regulations. If the State must amend or enact a statute in
order to make the required revision, such revision must occur within two years.  This type of
program modification is necessary to avoid inconsistencies between the State program and the
Federal regulations.

     Program modifications can be "substantial,"  thereby triggering public notice requirements or
"nonsubstantial." The procedures for substantial program modification are similar to  the original
                                              2-6

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program approval process with one significant difference;  The time periods (i.e., 30 days for
completeness determinations and 90 days for EPA review) do not apply. There are no time limits
for reviewing program modifications (see 40 CFR 123.62).

      Minor changes in forms, procedures, and regulations will generally be considered nonsubstantial
modifications.  If the Regional Administrator determines that a State's proposed modification is
nonsubstantial with concurrence of EPA Headquarters, the Regional Administrator may approve or
deny the revision without providing public notice and opportunity to comment.

      As with program approvals, early EPA involvement will facilitate  action on program
modification.  The EPA Region will help the State determine the documentation necessary for each
program modification.

2.3  WITHDRAWAL  OF STATE PROGRAMS
2.3.1 Voluntary Withdrawal
      Under 40 CFR  123.64(a) and 501.34, a State may voluntarily transfer program responsibilities
back to EPA by  giving the Regional Administrator 180 days notice, and by providing a plan for the
orderly transfer of relevant program information to EPA.  The Regional Administrator will  publicly  ,
 notice the transfer, in the same manner as the program approvals,  at least 30 days in advance. States
 must relinquish all sludge program administration previously approved by EPA.
                                                                 :
 2.3.2 Involuntary Withdrawal
      CWA Section 402(c)(3)  and EPA regulations in 40 CFR 123.64(b) and 501.33 provide for EPA
 withdrawal of its approval of a State program that no longer complies with Federal requirements.
 Program withdrawal  is considered an extreme remedy, but will be  invoked if a State is unable or
 unwilling to take required corrective action to solve  State program deficiencies. A more detailed
, description of the withdrawal procedures may be found in 40 CFR 123.64(b)(3), incorporated by
 reference into 40 CFR 501.34.
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                                  3.  LEGAL AUTHORITY

     In order to demonstrate a State's ability to implement and enforce sludge use and disposal
requirements, EPA requires  that State program submissions include copies of the State's statutes and
regulations.  These State laws establish the legal basis to implement and enforce the sludge program
and must be at  least as stringent as Federal requirements.

     This chapter is designed to assist a State and EPA in reviewing its legal authorities to determine
whether the scope and stringency  of State statutes and regulations are equivalent to Federal
requirements.  Those  States  planning to administer the Federal sludge program as  a part of the
NPDES program should have much of the basic structure needed for a sludge program already in
place.  A State with an existing sludge management program need only supplement its current
authority to conform with EPA's  minimum requirements.

     In addition to submitting copies of its laws and regulations, a State must also provide a written
opinion from its Attorney General that the existing legal authority is sufficient to implement and
enforce the program described in the program description (see Chapter 4).'  This  "Attorney General's
statement" is discussed in greater detail in Section 3.3 below; Appendix A contains a model Attorney
General's statement.

     A checklist outlining the statutory and regulatory requirements for a sludge program appears at
the end of this  chapter.  It follows the same order as  the text of this chapter and provides citations to
the applicable Federal regulations.  By using the checklist, the State can ensure that its legal
authority satisfies Federal requirements.

3.1  STATUTORY AUTHORITY
     A State agency's legal authority to regulate sludge use and disposal is derived from several
sources.  First, the State Constitution must provide the State government with the power to make
laws ensuring public  health and welfare.  Second, the State legislature must authorize a State agency
     'When the State agency implementing the sludge program has independent legal counsel, this
 statement may be signed by that counsel, if he or she is authorized to represent the agency in court
 on all matters.  If sludge is to be regulated by two  or more State agencies (e.g., a State Water Board
 and a Solid Waste Management Commission), and  each has separate in-house counsel, both will be
 required to submit statements for their respective agencies.
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  to regulate sludge use and disposal. Finally, the State agency must define how these broad statutory
  powers will be used through its adoption of administrative rules and regulations. This section
  addresses the broad powers which must be conferred upon the State agency by the legislature.

  3-1-l  Statutory  Authority for a Program Under NPDFS
       A State agency implementing a sludge management program under the auspices of an existing
  NPDES program  must review its current statutory authority to ensure it meets Federal requirements.
  At a minimum, the State must have the statutory authority to:

       •  Regulate all sludge use and disposal methods proposed to be managed under the program;
       •  Require compliance with sludge standards by any user or  disposer;
       •  Abate  hazards to public health and the environment caused by improper sludge
         transportation, storage, or disposal;
       •  Issue permits implementing Federal sludge standards to treatment works treating domestic
         sewage;
      •  Require submission of sludge use and disposal information by permit applicants;
      •  Require submission of information from the,regulated community;
      •  Modify, revoke, and reissue or terminate permits for cause;
      •  Require public and governmental access to information;
      •  Require members of permitting agency to  meet  a conflict-of-interest provision;
      •  Enter, inspect, and sample to determine compliance with applicable regulations and permits;
      •  Abate violations of the sludge management program;
      •  Seek injunctive relief where warranted; and
      •  Seek civil and criminal penalties against violators.

     EPA will not approve a sludge management program under 40 CFR Part 123 when a State
lacks the authority to perform any of the functions  listed above. The State must establish  that legal
authority exists to issue NPDES permits for sludge use and disposal.  Existing State statutory and
regulatory provisions regarding inspection, monitoring, reporting, and enforcement must be broad
enough to include implementation of sludge requirements under the  State's current NPDES program.

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     States may need to expand the scope of authority for their NPDES programs through minor
amendments addressing sludge management.  For example, additional statutory authority may be
needed to enable the State to issue sludge use and disposal permits to nondischarging treatment works
(i.e, those not covered by an NPDES permit).  The State may also need to expand its jurisdiction to
all environmental media affected by sludge use and disposal.  In addition, the State must submit an
addendum to the Attorney General's statement and revisions to the MOA.

3.1.2  Statutory  Authority for a Program  Under Part 501
     Federal regulations require that a State  desiring  to administer a sludge management program  in
lieu of EPA must have the authority to implement and enforce such a program.  Each State agency
responsible for program activities must have complete authority over facilities or practices subject to
its jurisdiction.  For example, an agency with exclusive jurisdiction over sludge incinerators must
have all of the requisite powers to implement and enforce the sludge program as it relates to
incinerators.  The following discussion identifies the  minimum authority which a State statute(s) must
give to the agency(ies).

 Authority to Require Persons Using or Disposing  of Sewage Sludge to Comply With AH
 Applicable Federal and State Sludge Requirements
      A State submission must demonstrate that the scope of the State sludge management program is.
 at  least as comprehensive as EPA's program.  It must  also demonstrate that the State has the
 authority to impose Federal and State standards and  requirements and that the State will enforce these
 requirements within the designated time frame for compliance set out in the  CWA.  These three
 items are discussed in the subsections below.

 Scope of the State Program
      Under the Federal program, all persons  using or disposing of sewage sludge are regulated and
 subject to EPA requirements. While all such persons will not be required to obtain a permit (only
 treatment works treating domestic sewage sludge are required to be permitted  under the CWA), all
 persons who are users or disposers must comply with the technical use and  disposal requirements
  developed by EPA.  Consequently, a State administering a sludge program on EPA's behalf must
  also have authority to ensure compliance by all persons using or disposing of sewage sludge.
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     Many States that have no, sough, program approval have existing sludge programs which are no,
 as broad in scope as the Federal program. For example, EPA has defined sewage siudge to include
 spec,flc materials (see Table 3-1).  If a Stale starute defines sludge in a narrower manner (e g
 septage is exciuded from the State's current definition of sewage sludge), this definition wi,,' need to
 be amended ,„ be consistent with tie Federal definition. „ is no, necessary for a single State agency
 to have responsibility for all methods of sludge use and disposal. However,  the authority of all
 mterested State agencies combined must be as broad in scope as EPA's program, and each agency
must be represented in the State's submission.
                TABLE 3-1. FEDERAL DEFINITION OF SEWAGE SLUDGE
SEWAGE SLUDGE IS DEFINED AS:
                         * residue removed
                                                  *• *— ซ ซ< *****
       •  Solids removed during primary, secondary, or advanced wastewater treatment
       •  Scum
       •  Septage
       •  Pumping from portable toilets
      •  Pumping from Class III marine sanitation devices
      •  Sewage sludge products
 SEWAGE SLUDGE DOES NOT INCLUDE:
      •  Grit and screenings
      •  Incinerator ash
      •  Septage or portable toilet pumping discharged to POTWs
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 Authority to Impose Federal Requirements
     The State must.be able to impose either Federal standards or equivalent State standards to
 regulate sludge use and disposal.  Existing Federal requirements for sludge use and disposal on land
 and in landfills are found at 40 CFR Part 257. EPA recently proposed comprehensive technical use
 and disposal standards and requirements at 40 CFR Part 503. In anticipation of the promulgation of
'these Federal standards, a State statute must authorize the State agency to adopt State use and
 disposal standards.  Further, these standards should be self-implementing, i.e.,  enforceable whether
 or not they are imposed by a permit. Upon Federal promulgation, these standards should be set out,
 either verbatim or through incorporation by reference, in the State agency's regulations.  A State
 should be aware  that incorporation by reference of unpromulgated Federal regulations may be
 considered invalid as an improper delegation of legislative powers from a State to EPA.  Thus, the
 State program submission should clearly indicate the State's intention to adopt the standards, once
 promulgated, and should indicate  the timetable for "their adoption.

 Federal Compliance Deadlines
      State statutes for implementing a sludge management program must  allow imposition  of the
 CWA deadlines for compliance with EPA's use and disposal standards and requirements.  Existing
 Federal requirements at 40 CFR Part 257 are currently effective and require immediate  compliance.
 Section 405(d)(2)(D) of the CWA requires compliance  with EPA's technical use and  disposal
 regulations as soon as feasible but in no case later than 12 months after promulgation (unless
 construction is necessary for compliance, in which case, compliance  must occur no later that 24
 months from the date of promulgation).  A State statute must reflect  these time frames.

 Authority to Take Actions to Protect Public Health  and the Environment
      The State agency applying for program approval must have the authority to respond to any
 public health or environmental threat posed by sludge use and disposal.  A State must be able to act
 quickly to order persons responsible for creating such threats to cease their activities.
 Alternatively, the State agency should  be authorized to abate the threats through direct and immediate
 corrective or remedial action, such as  injunctive relief to prevent.threatened or continuing hazards or
 the right to enter private premises to take corrective action when necessary to protect public health
 and the environment.
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  Authority to Issue Permits to Treatment Works Treating Domgsfi? S
       A State statute must also provide the State agency with the authority to require Publicly Owned
  Treatment Works (POTWs) and other treatment works treating domestic sewage to obtain permits for
  sludge use and disposal.  EPA has defined  "treatment works treating domestic sewage" as any
  facility, including Federal facilities and any privately owned treatment works which stores, treats,
  recycles, or  reclaims sewage sludge [see 40 CFR  122.2 and 501.2]. This definition includes
  facilities which generate or process sludge, or which control either sludge quality or the manner in
  which it is disposed. Examples are incinerators, commercial sludge handlers which process POTW
  sludge for distribution and sale, and owners and operators of sludge disposal, facilities.

      The following  three categories of persons are not considered  "treatment: works treating domestic
  sewage,"  and hence are exempt from the permit requirement:

      •  Owners of land used for the beneficial reuse of sludge, such as farm lands and home
         gardens;

      •  Commercial distributors/disposers which do  not alter the nature of die sludge prior to
         distribution  or disposal; and
      •  Individual septic systems as well as septage pumpers and haulers,3 including those pumping
         residues from portable toilets or Type III marine sanitation devices.3

 The State  is free to require permits of any or all of these persons since States may enact sludge
 requirements  which are more stringent than Federal requirements.

      At a  minimum, it is recommended that the State statute contain broad authority which will
 enable the agency to  require treatment works treating domestic sewage to obtain a permit in order to
 engage in these activities.  Further, the statute should set out the basic contents of these permits
 (e.g., conditions imposing the technical use and disposal standards,  self-monitoring and reporting
 requirements, and such other conditions as a State agency deems necessary to carry out the purposes
     While these persons are not "treatment works treating domestic sewage" and therefore, do not
require a permit, their activities remain subject to the Federal use and disposal standards and
requirements. As discussed above, the State must have the authority to require compliance by these
users and disposers.
    3Septage treatment and disposal systems are considered "treatment works treating domestic
sewage" and thus must be covered by a permit.
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of the statute);  As with the NPDES program, the statute should indicate that a sludge permit will not
be issued if the EPA Regional Administrator objects to its contents.

     Finally, EPA's regulations limit the duration of permits to a maximum of five years.  If a State
statute authorizes a permit duration longer than five years (e.g., a ten-year permit), the statute must
be amended.  However, statutes containing a  more stringent standard (i.e., a period of less than five
years) need not be amended.

Authority  to Require Submission of Information from the Regulated Community
     State  law must give the  agency responsible for implementation of a sludge management program
the authority to require information from the  regulated community.  The State must be able to
require the following information as part of a permit application:

     •  Activities which require the applicant to obtain a permit;
     •  Name, address, and  location of treatment works for which permit is being sought;
     •  Operator's name, address, telephone number, ownership status, and status as Federal,  State,
        private, public, or other entity;                :
     •  Whether or not facility is  located on  Indian lands;
     •  Relevant environmental permits held, or for which application has been submitted;
     •  Topographic map;
     •  Sludge monitoring data;
     •  Description of sludge use and disposal practices;
     •  Land application plan;
     •  Annual sludge production volume;
     •  Information required to determine appropriate permitting standards under 40 CFR 503; and
     •  Any other information the State Director needs to assess sludge use or disposal practices, to
        determine whether to issue a permit, or to ascertain appropriate permit requirements.

     In addition to permit  applications, the State must have the authority to require compliance
 information from the regulated community and information necessary to determine whether or  not
 cause exists for the modification, revocation  and reissuance, or termination of the permit.  Finally,
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 the permittee is also required to provide copies of all records which must be kept pursuant to its
 permit, including monitoring reports, to the State Director.
 Authority to Modify. Revoke, and Reissue or Terminate Permits for
      State law must also give the agency the authority to modify, revoke and reissue, or terminate a
 permit for cause (see Table 3-5 for the causes for permit modification).  Causes for modification or
 revocation and reissuance include situations where cause for termination exists but the Director
 determines modification or revocation and reissuance is more appropriate.  Causes for termination of
 a permit include:

      •  Permittee's noncompliance with any permit condition;
      •  Permittee's misrepresentation of, or failure  to disclose, relevant information;
      •  Determination that the permitted activity endangers public health and the environment, and
         that the best way to bring this activity to acceptable levels is to modify or terminate the
         permit; and
      •  Change in any condition which requires either a temporary or permanent reduction or
         elimination of the permitted activity.
 Authority to Provide Public Access to Information
      All programs administered under the CWA are required to involve the public to the maximum
 extent possible.  Consequently, an  approvable sludge management program must ensure that the
 following information is accessible to the public:4

      •  Name and address of permittees;
      •  Permit applications (with attachments);
      •  Permits (with attachments); and
      •  Effluent data and sludge quality and disposal information.

The State must allow EPA access to any information, including confidential information.
    4"Access" does not mean that the State may not charge a reasonable fee for photocopying and
mailing such information to interested persons.
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  Conflict of Interest
       The Clean Water Act contains "conflict of interest" provisions for State agency personnel.
  Under Section 304(i) of the Act, a State agency or board which approves all or portions of permits
  may not include in its membership any person who receives (or who during the past two years
  received) a significant portion of income either directly or indirectly from permit holders or permit
  applicants.5  In this way, the State can avoid any appearance of favoritism or undue influence.

       EPA has defined "significant portion of income" to mean 10 percent or more  of a person's
  gross income over a  calendar year if the person is under 60 years of age. For persons over 60 years
  of age, it means more than 50 percent of the gross income if received as part of a pension,
  retirement, or other similar benefit [see 40 CFR 123.25(c)].  States submitting a program application
  under 40 CFR Part 123 (i.e., as a component of an approved NPDES program) must meet these
  requirements. For States submitting an application under 40 CFR Part 501, the Administrator may
  waive these requirements if the agency or board meets a conflict-of-interest standard imposed under  .
  another EPA-approved State permitting program, or an equivalent standard.'  In the event that more
  than one State agency will administer the program, all of the agencies involved must satisfy this
  requirement.  Similarly, if the State intends to delegate all or any portion of the State  sludge program
.  to a local entity (e.g., a County Board), that entity must also satisfy the conflict of interest
  requirement.

  Authority to Enter. Inspect, and Sample
       The State agency must have the ability to enter all treatment works treating domestic sewage as
  well as other facilities and sites used for sludge use and disposal to determine whether the facilities
  are in compliance with  Federal and State standards and requirements.  This minimum Federal
  requirement will be  satisfied if the State agency can obtain a warrant to enter the facility in the event
  that voluntary consent to enter is denied by the owner or operator of the premises. If State authority
  does not currently extend to  sludge sampling and the inspection of sludge facilities, including
  disposal sites, a statutory amendment must be pursued.
       'The fact that a State agency has an NPDES or sludge permit does not mean that its employees
   are considered "permit holders or applicants."
       *For example, the Clean Air Act's conflict of interest provision at Section 128 requires that State
   air agencies which approve permits or enforcement orders have at least a majority of members who
   represent the public interest and do not derive a significant portion of their income from persons
   subject to permits and orders and that any potential conflicts of the Director are disclosed.
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      In addition to authorizing the State agency to enter and inspect sludge facilities, the State must
  be able to require persons using or disposing of sewage sludge to monitor and report on their
  compliance.  The authority to compel this information is an important tool in program
  implementation and enforcement.

  Authority to Enforce Sludge Standards and Requirements
      The Clean Water Act and EPA regulations establish minimum enforcement measures which a
 State must be able to take.  For violations of State program requirements, the State must have the
 authority to:

      •  Seek injunctive relief [40 CFR 501.17(a)(2)];
      •  Seek civil penalties of at least $5,000 per day per violation [40  CFR 501.17(a)(3)(i)];
      •  Seek criminal fines of $5,000 for knowingly making a false statement, or for falsification of
         information, or for tampering with a monitoring device [40 CFR 501.17(a)(3)(iii)]; and
      •  Seek criminal penalties of at least $10,000 per day per violation for other instances of
         noncompliance [40 CFR 501.17(a)(3)(ii)].

      A State must be able to seek injunctive relief to compel compliance or to  immediately restrain
 any person from engaging in activities which violate sludge use and disposal standards,  whether or
 not that person has a permit.  Additionally, a State must have the  authority to seek the civil and
 criminal penalties  listed above.

 3.2 REGULATORY AUTHORITY
 3.2.1  Introduction
     This section addresses the specific requirements which must appear in the State agency's
 regulations in order to be at least as stringent as the Federal program administered by EPA.  A
 regulation checklist appears at the end of this chapter.

3.2.2 Regulatory Authority  for a Program Under NPDES
     States which  choose to implement a sludge management program in conjunction with an existing
NPDES program probably have much of the regulatory framework required by  Federal regulations.
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Changes will be necessary to make the State NPDES regulations apply to sewage sludge use and
disposal.  At a  minimum, the State should have the following seven regulatory provisions:

     •  Scope  of program/definitions;
     •  Sludge standards and conditions;
     •  Permit applications and signatories;
     •  Permit contents;
     •  Permit issuance;
     •  Entry  and inspection; and
     •  Enforcement.

 These provisions are discussed in more  detail in the following  sections.

 3.2.3  Regulatory Authority for a Program Under Part 501
     Under Federal requirements, a State desiring to run its own sludge management program must
 have the  regulatory framework to implement and enforce it. A State sludge program under 40 CFR
 Part 501  must contain the same seven regulatory provisions listed above.  The following discussion
 describes each provision in more detail.

 Scope of Program/Definitions
      The "Definitions" section of the regulations assists in establishing the scope and applicability of
 the State program.  A State must define terms so that the scope and applicability  of its program is as
 broad as that of the Federal program.  For example, in defining "person," the State must  include
 Federal  and State facilities as well as individuals, corporations,  associations, partnerships, and
 municipalities in order to achieve the same programmatic scope as  EPA.  Table 3-2  contains a
 number  of terms which should be used and defined in State regulations.  In reviewing a State's legal
 authority, EPA  will pay particular attention to definitions for  such phrases as "sewage sludge,"
  "treatment works treating domestic sewage," "dedicated land," and Other terms whose meaning or
 scope will be critical to understanding the State's ability to implement and enforce Federal standards.

  Sludge  Standards and Requirements
       The State  must  adopt Federal sludge standards and requirements as State law or adopt more
  stringent State standards.  The State must adopt the requirements set out in 40 CFR Part  257 to gain

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TABLE 3-2. TERMS WHICH SHOULD BE DEFINED IN STATE LEGAL AUTHORITIES
     •  Sewage sludge




     •  Treatment works treating domestic sewage



     •  Class I sludge management facility



     •  Sludge use and disposal standard



     •  Person




     •   Septage




     •   Land application



     •  Dedicated land




    •  Reclaimed land




    •  Agricultural land




    •  Nonagricultural land



    •  Silvicultural land



    •  Monofill




    •  Floodplain




    •  Base flood




    •  Surface  impoundment




    •   Distribution and marketing



    •  Incineration
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program approval.  As mentioned earlier, EPA is currently developing comprehensive sludge use and
disposal standards and requirements (to be set out in 40 CFR Part 503).  States approved prior to the
formal announcement of these standards will be required to adopt them once they have been
promulgated.  States seeking approval after they  are promulgated must adopt them as State standards
prior to program approval.

     There are two basic methods of converting Federal standards into State standards.   First, a State
may insert the Federal standards into its regulations verbatim.  Although this method clearly places
the regulated community on notice of these requirements,  it is time consuming and duplicative.7
Second, the State can incorporate the Federal standards into its regulations by reference.  This
involves a statement of intent to incorporate, citation to the materials being incorporated, and  a date.
An example of incorporation by reference is shown in Table 3-3. The State should examine
requirements of State law regarding  the exact format for an incorporation by reference.

      States that seek to incorporate by reference prospectively (i.e., by expressing the intent to
automatically adopt future regulations upon their promulgation) are cautioned  that a number of State
Courts have held prospective incorporation by reference to be an unconstitutional delegation of
legislative authority to EPA.  Therefore, unless  the State has upheld prospective incorporation, States
should wait until the Federal standards are final before adopting them.  Moreover, since EPA intends
to periodically review and revise these standards, States incorporating them by reference will have to
periodically reincorporate the correct standards to ensure their enforceability and consistency with
 Federal law.

C/834-03-301-02c/TABLE.3-3
         TABLE 3-3.  EXAMPLE INCORPORATION BY REFERENCE LANGUAGE
  The Federal sewage sludge use and disposal standards set out in 40 Code of Federal Regulations
  (CFR) Part 257, as they appear on (today or an earlier date), are hereby incorporated by
  reference and are enforceable requirements under State law.
      7Where the program is administered by several State agencies, each agency need only adopt those
  Federal standards for which it will be responsible.
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  Permit Applications and Signatories

       No permit system can be successful unless the permit writer has sufficient information about the
  facility.  In order to ensure the availability of this information, EPA regulations require that every
  treatment works treating domestic sewage submit a permit application containing all pertinent data.
  State regulations must require treatment works treating domestic sewage to submit the requisite
  application information in a similar manner and time frame as  specified by EPA.  States are free to
  design their own application form as long as it solicits the requisite information.

       The application must be signed  and certified by an appropriate signatory to ensure that the ' -
  treatment works remains accountable for the contents [see 40 CFR 122.22 and 501.15(a)(4)].
  Moreover, the regulations  should include the deadlines for the submission of application information
  established in the Federal regulations, as follows:
         MDTMTC      •                NPDES permits must submit this information when their next
         NPDES permit application is due or 120 days after promulgation of applicable use and
         disposal standards, whichever is sooner;
      •  All other existing treatment works must submit these data within 120 days of the
         promulgation of applicable use and disposal standards unless the Director (State agency)
         requests it sooner; and                                                      ซswซ-y;

      •  New treatment works are required to submit permit applications at least 180 days prior to
         commencing operations.

 Permit Contents

      Developing permit conditions for sludge often involves professional judgment regarding proper
 use and disposal.  Therefore,  permit conditions must be clearly enforceable and as free from
 challenge as possible.  One method of limiting uncertainties is to put as much detail as possible
 concerning potential permit contents into the State regulations.  This precaution will help delineate
 the extent of a State agency's  discretion in putting requirements in permits.

     At a minimum, the State regulations musr expressly note that the following conditions are to be
included in each treatment works' permit:

     • Federal and State  sludge use and disposal standards;
     •  Compliance schedule;

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     •  Self-monitoring, reporting and record keeping requirements;
     •  Standard conditions; and
     •  Other conditions to carry out the objectives of the statute and regulations as necessary .

These items are discussed in each subsection below.

Sludge Standards and Requirements
     The adoption of Federal sludge standards as State standards was previously discussed. Even
though these standards are enforceable in the absence of a permit, a State's regulations should
specifically direct the State agency  to include them, when appropriate, in the permits of treatment
works treating domestic sewage. Once in the permit, the treatment works is put on actual notice of
the standards and is required to submit compliance information.

Compliance Schedules
     As noted earlier,  the CWA establishes a deadline of one year from promulgation for final
compliance with the Federal sludge use and disposal standards (except where construction is needed
for compliance,  in which case the  deadline is two years).  Consequently, any permit issued prior to
this deadline should place the treatment works on a schedule to come into compliance within this    :
time frame.  In no case may a compliance schedule extend beyond the statutory deadlines [see 40
CFR 501.15(a)(6) for further information].

Self-Monitoring. Reporting, and Record Keeoine
      State regulations must authorize the State agency to impose self-monitoring, reporting, and
 record keeping requirements through permits. The self-monitoring conditions should address the
 sampling location(s), type, frequency, and analytical  methods to be used. The location must be
 representative of the sludge quality. The analytical methods and sample types used must be those set
 out in 40 CFR Part 136, unless Part 503 (when promulgated) directs otherwise.  Sampling techniques
 for sludge are discussed in EPA's POTW Sludge Sampling and Analysis Guidance Document.
 August 1989.
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       The monitoring frequency will be determined on a permit-by-permit baisis after considering the
  nature of the permittee's sludge quality; use and disposal  methods; and the State agency's need to
  know. Monitoring shall occur at least once per year [see 40 CFR 501.15(b)(10)(i), and EPA's
  Sewage Sludge Interim Permitting Strategy. September 1989].  Unless a  State agency designs a self-
  monitoring reporting form for the treatment works to use, the permittee should attach its sludge
  monitoring data to an NPDES Discharge Monitoring Report (DMR).  The State must require the
  permittee to prepare and retain records  of its monitoring activities for at  least five years [see 40 CFR
  122.41(j)(3) and 501.15(b)(10)(iii) for a complete description of these records]. The technical
  standards to be promulgated at 40 CFR Part 503 may establish minimum monitoring frequencies and
  record retention periods.

  Standard Conditions

      EPA regulations expressly require  a number of standard conditions to be placed in all treatment
 works permits (see Table 3-4).  These provisions establish automatic notification requirements and
 impose additional duties and obligations on the permittee (e.g., the responsibility of notifying the
 Director of planned changes in the facility, anticipated noncompliance,  and incidents of other
 noncompliance).  A State agency's regulations should indicate that every State permit will include
 these conditions as well as any other standard conditions deemed necessary by the State agency.

 Other  Conditions as  Necessary

     Even after EPA's sludge use and disposal standards are promulgated, they will not address all
 pollutants of potential  concern or  all possible sludge use and disposal methods.  Consequently, EPA
 and State personnel will continue to rely on best  professional judgment or case-by-case permitting for
 those methods and/or pollutants not covered.  Therefore, State  regulations must provide the State
 agency with the flexibility to impose such conditions as may be necessary to protect public health and
 the environment.

 General Permits
     EPA regulations allow a single permit to cover a category of treatment works employing the
same sludge use and disposal method (e.g., all treatment works involved in silviculture). These
"general permits" reduce potential administrative  burdens on the State agency without compromising
the quality or enforceability of the permit program. If a State is interested in using general permits,
it must  include similar issuance procedures as in Federal regulations [see 40 CFR 122.28 and

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TABLE 3-4.  STANDARD CONDITIONS TO BE PLACED IN ALL SLUDGE
                     USE AND DISPOSAL PERMITS
   Duty to comply

   Compliance with standards

   State enforcement penalties

   Need to halt or reduce activities is not a defense

   Duty to mitigate noncompliance

   Proper operation and maintenance

   Duty to provide information as requested

   Duty to allow inspection and entry

   Monitoring, record keeping, and reporting
   (generally)

   Signatory/certification requirements

   Notice of planned changes

   Notice of anticipated noncompliance

   Reporting other noncompliance

   Transferability of the permit

   Reopener

   Duty to reapply
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  501.15(e)(2); see also EPA's Guidance for the Use of NPDES General PPrmiTs  1933]. Since 40
  CFR 501 does not provide a separate general permit program approval, States  approved under Part
  501 may issue general permits.  However, the intended general permits and. the legal authority to
  issue them must be discussed in the program submission (see Chapter 4).

  Permit Tssuance
     • The Clean Water Act encourages public participation in the development of EPA programs.  To
  this end, EPA regulations contain a series of specific steps which must be taken prior to the issuance
  of permits.  These issuance procedures can be grouped together under the following headings:

      •  Public notice and comment requirements;
      •  Permit appeals procedures; and
      •  Causes for modifying and  terminating  permits.

 These procedures are highlighted in the subsections below.

      Public Notice and Comment Requirements   In order for the public to have a meaningful role
 in the sludge permitting program, EPA regulations at 40 CFR Pan 124 and 501.15(d) require writers
• to prepare draft permits and a fact sheet or rationale explaining the draft.  The draft permit is then
 publicly noticed in a  prescribed  manner (e.g., a newspaper notice) for at least 30 days,  during which
 time the public is invited to submit comments.  In the event that the comments reflect widespread
 interest, the State may schedule  a public meeting to discuss the permit.   The time and place for this
 meeting must also be publicly noticed at least 30 days in advance.  After the comment period has
 ended, the State finalizes the permit, taking "significant"  (substantive) comments into consideration.
      Permit Appeals.  EPA has also set out a  permit appeals system in its regulations.  An
 interested party must file an appeal request within 30 days of permit issuance.  After  30 days, all
 parties forfeit their right to appeal.  The regulations also address the appeal process itself [see 40
 CFR Part 124, Subpart E].  States are encouraged to adopt regulations which  provide similar finality
 to the permit appeals  process.

      Causes for Modifying and Terminating  Permits.  EPA has identified several good causes for
which it believes permit modification is justified;  permits can only be revised under these
                                             3-18

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circumstances.  These reasons for modification applicable to sludge permits are listed in Table 3-5.
As the table indicates, some of these reasons are considered major modifications, whereas others are
considered minor.  Major permit modifications must undergo a public notice and comment process.
Although a State agency may adopt any or all of the causes listed in 40 CFR 501.15(e)(2)(ii) or 40
CFR  122.62 and 122.63, it may not add others to the list.
                TABLE 3-5.  GOOD CAUSES FOR PERMIT MODIFICATION
        •   Substantial alterations at the treatment works
        •   New information since issuance
        •   New regulations since issuance
        •   Compliance schedule extensions
        •   To implement a reopener clause in the permit
        •   Adding land application plans
        •   Correct technical or legal mistakes
        •   Correcting typographical errors*
        •   Imposing additional self-monitoring or reporting*
        •   Change of interim compliance data in schedule of compliance*
         •   Changes in ownership/operator*


         Indicates modification is considered minor
                                              3-19

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       Several other concerns must also be addressed.  First, like NPDES permits, the duration of a
  sludge permit may not be extended beyond the original five year period through a modification.
  Second, either the State agency or any interested person must be allowed to initiate the modification
  process.  Modification requests submitted to the State must be in writing and supported by reasons
  for the change.

       A treatment works has no inherent right to its permit. The permit may be terminated if the
  permittee violates any of its conditions or if changes in conditions require the elimination of the
  permitted activity. State regulations must provide the State with the authority to terminate permits
  during their effective period.  Finally, EPA regulations allow the State agency to  administratively
  continue expired permits  beyond their expiration dates where the permittee has submitted a complete
  application for renewal but the permit has nevertheless not been  reissued in a timely manner [40
  CFR501.16(e)(l)and 122.6].

 Entry and Inspection

      The existence of sludge standards alone will not ensure that public health and the environment
 will be protected from improper use and  disposal.  The State must be authorized to conduct
 compliance monitoring activities to ensure that these standards are  followed. Compliance activities
 include:

      •  Entering treatment works and other use and disposal facilities at reasonable times;
      •  Inspecting the premises for compliance with standards and permits where  applicable;8
      •  Sampling the sludge quality before it leaves the treatment works or after it has been used or
         disposed; and
      •  Accessing and copying the permittee records concerning  sludge.
     EPA regulations require that approved States inspect all Class I sludge management facilities at
least once per year [40 CFR 123.5(e) and 501.16].  Class I sludge management facilities are POTWs
required to have an approved pretreatment program or which have sludge use or disposal practices
that have the potential to adversely affect public health or the environment.
                                              3-20

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Enforcement
     As previously noted, the State must have the authority to address violations quickly and
effectively.  Where a State statute has specifically set out available administrative and judicial
enforcement powers, the regulations need only cross reference the statutory provisions.

     In addition to a State agency's own enforcement powers, the regulations should also indicate
how the public will be involved in the enforcement process. While the State need not provide for
direct citizen suit against noncompliant persons, there must be some opportunity to become involved
in the State's enforcement actions.  EPA's regulations allow the States to choose between several
public participation alternatives which are also used in the NPDES program.  First, interested
 citizens may be granted the right to intervene in enforcement actions (administrative or civil
 litigation, but not criminal  actions).  Second, where interested citizen intervention is not a right, the
 State  may still agree not to oppose such intervention. If this latter alternative is selected, the State
 must  also agree to investigate and respond to citizen complaints and publicly notice proposed
 settlements of enforcement actions for at least 30 days.

 3.3  ATTORNEY GENERAL'S STATEMENT
       As part of its submission, a State program application must include a certification by the State
  Attorney General (or State agency's independent legal counsel) that the State agency has adequate
  legal authority to implement and enforce a State sludge program in accordance with minimum
  Federal requirements.  This document will explain the  State agency's authority to undertake the
  various program functions.  It must discuss the scope of the State agency's legal authority as derived
  from statutory, regulatory, and judicial sources. The statement should analyze the  State agency's
  power to adopt and enforce Federal standards,  issue permits, conduct surveillance activities, and take
   enforcement actions.

        Where the Attorney General identifies significant differences (either more or less stringent)
   between the Federal and  proposed State program, those differences should be discussed in the
   statement.  Finally, the Attorney General must certify that all of the legal authorities cited in the
   program submission either have been adopted or will  be fully effective at the time of program
   approval.  If new or revised statutory or regulatory provisions are being  drafted, it is  advisable to
   provide a copy of the draft to EPA for comment.  This  approach will expedite final program
   approval.  A model Attorney General's statement for  the State to review is found in Appendix A.
                                                 3-21

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3.4  STATUTORY AND REGULATORY REQUIREMENTS CHECKLIST

A.  STATUTORY AUTHORITY REQUIREMENTS
   Genera] Program
                                                                   State Statutory Authnrify
                                                                         (citations)

    A.  Authority to regulate use and disposal of sewage sludge
        [40 CFR 501.1(d)(l)(ii)] [40 CFR 122.1(b)(3)(4)J
        1.   Land application
        2.   Landfilling (sludge monofill)
        3.   Distribution and marketing
        4.   Incineration
        5.   Surface disposal sites
        6.   Other(specify:)	
   B.  Authority to regulate transportation and storage of sewage
       sludge [40 CFR 501.1(d)(l)] [40 CFR 122.1(g)(7)]

   C.  Authority to regulate the use or disposal of sewage sludge

       ?40 OT
   D.  Authority to take actions to protect public health and the
       environment from any adverse effects F40 CFR 501 Ifc
       [40 CFR 122.1(b)(4) and (g)(5)]                  ' W


  Permit Requirement

  A.  Authority to issue permits to any POTW or other treatment
      works treating domestic sewage (including Federal facilities)
      [40 CFR 501.1(c)(2)] [40 CFR 122.1(b)(3) and (g)(6)]

  B.  Authority to require permit applicants to submit information
  C.  Authority to modify, revoke and reissue, or terminate permits
              K? ?fK50U5(b)(7X8) and (d)(2)] [40 CFR 122.62]
              122.5(a)(l)J
 Access to
 A.  Public access to permit applications, permits, and effluent/sludge
     information [40 CFR 501.15(a)(l)] [40 CFR 122. 7(b)]
                                        3-22

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IV.  Conflict of Interest                                                S^e SftMpry Authority
                                                                            (citations)

     A.  Statement indicating that no member of any permit-approving
         board or body shall receive a significant portion of income
         from permit holders or applicants [40 CFR 501.15(f)(l)]
         [40 CFR 123.25(c)];  or                                       	
     B.  For non-NPDES programs only, certification from the board
         or body that it meets a conflict-of-interest standard imposed
         as part of another EPA-approved State permitting program
         [40 CFR 501.15(f)(2)]
 V. Compliance Monitoring

     A.  Authority to inspect and conduct surveillance to independently
         determine compliance or noncompliance with regulations and
         permits [40 CFR 501.15(b)(9)] [40 CFR 123.26]

     B.  Authority to require submission of technical data by regulated
         community [40 CFR 501.15(b)(8)] [40 CFR 122.41(h) and (1)1
 VI. Enforcement Authority T4Q CFR 501.171

     A   Authority to abate violations of State sludge program
          requirements [40 CFR 501.1(c)(5)] [40 CFR 123.27]

     B.   Specific remedies for violations of State sludge program
          requirements [40 CFR 501.17] [40 CFR 123.27(a) and (b)]

          1.  Authority to seek injunctive relief
          2.  Authority to assess or seek civil penalties in
              the amount of at least $5,000 per day per violation
          3.  Authority to assess criminal penalties of at least $10,000
              per day per willful or negligent violation
                                               3-23

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     B.  REQUIRED STATE PROGRAM REGULATIONS


     I.  Definitions [40 CFR 501.2] [40 CFR 122.2]                       ct91. ป„„,,„,    A  .   .
        F40 CFR 123.21 f40 CFR 124 2]                                  Staje Regulatory Authority
        (optional)                                                            (citations)

         Are State regulatory definitions or their equivalents,
         where provided, consistent with those found in the '
         Federal  regulations for the following terms:*

         A. Definitions with general applications

            1.  Treatment works treating domestic sewage
               (to include Federal facilities)
            2.  Sewage sludge	
            3.  Class I sludge management facility                                  '	
            4.  Septage                                              	
            5.  Disposal practice                                            "	~	
            6.  Distributor	
            7.  Facility	
            8.  Generator                                             "	
            9.  Sludge management practice                                 '	'	
           10.  State Program Director                                      	~	
           11.  State sewage sludge management agency                                "	
           12.  Use or utilization practice
           13.  User	
           14.   Disposer                                              	;	•

        B.  Definitions related to land application

           1.  Annual pollutant loading rate
           2.  Cumulative pollutant loading rate                                          '	—
           3.  Annual whole sludge application rate                             "	

       C.  Definitions related to sewage sludge monofill               	

           1.  Sewage sludge monofill
           2.  Sewage sludge unit                                                 	•	
           3.  New sewage sludge unit                                         '	—

       D.  Definitions related to incineration

           1. Reference air concentration
          2. Sewage sludge incinerator        -                             	'	
          3. New Source Performance Standards (NSPS)                         "	
             [40 CFR Part 60]
                                                  use"'disposal
                                              3-24
::,;„ , iiiiilil'ij .IS:

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                                                                  State Regulatory Authority
                                                                        (citations)
       4.  National Emissions Standards for Hazardous Air
           Pollutants (NESHAPS) [40 CFR Part 61]
       5.  National Ambient Air Quality Standards (NAAQS)
           [40 CFR Part 50]
       6.  New Source Review Standards  [40 CFR Part 51.18]
       7.  Prevention of Significant Deterioration (PSD)
           [40 CFR Part 52.21]

    E.  Definitions related to distribution and marketing

        1.  Annual production application rate
       2.  Distribution
       3.  Sludge product
II.  Requirements for PermittinE

    A.  Contents of a permit application [40 CFR 501.15(a)(2)]
        [40 CFR 122.21(d)(3)(ii)]

        1.   Operator's name, address, telephone number,
            ownership status
        2.   Located on Indian Lands?
        3.   Numbers of all environmental permits held
        4.   Activities conducted by applicant
        5.   Description of sludge use and disposal practices
        6.   Annual sludge production volume
        7.   Topographic map  extending one mile from property
            boundaries and depicting location of sludge
            management facilities, water bodies and wells
            within  1/4 mile of property boundaries
        8.  Any sludge monitoring data, including ground
            water data
        9.  Location of site(s) for sludge treatment or
            disposal
        10.  Name of person or entity land-applying sludge,
            if applicable
        11.  Land application site plan
        12.  Any information required to determine the
            appropriate permitting under 40 CFR Part 503
        13.  Any other information the Program Director
            may request
        14.  Signature by responsible officer
        15.  Certification of data accuracy

      B. Standard permit conditions, applicable to all
         permits [40 CFR 501.15(b)] [40 CFR 122.41]
                                              3-25

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  1.  Duty to comply with permit and 503 standards
  2.  Duty to mitigate violations
  3.  Proper operation and maintenance
  4.  Inspection and entry

     a.  Right of entry by State personnel or agents
     b.  Access to inspect all parts of facility at
         any reasonable time
     c.  Sample and monitor to assure compliance
     d.  Access to inspect and copy any records
         related to sludge

  5.  Duty to provide information, including
     self-monitoring data
  6.  Self-monitoring reports shall include:

     a. Date, exact place,  and time of sampling
        measurements
     b. Individuals) who perform the sampling or
        measurements
     c.  Date(s) analyses were performed
     d. Individuals) who performed the analyses
     e.  Analytical techniques or methods  used
     f.  Results of such analyses

 7.  Test procedures as specified in 40 CFR Parts
     503 and 136 or other procedures specified
     in permit
 8.  Self-monitoring report signatory and
     certification requirements
 9.  Duty to retain all records relating to sludge
     sampling data, use and disposal for at
     least 5 years
10.  Compliance deadlines

     a.  Require compliance as  soon as possible,
        but no  later than any applicable regulatory
        deadline under Section 405 of CWA
     b.  If schedule exceeds one year from the date
        of issuance, the milestones shall not exceed
        six months
     c.  Milestone reports due no later than 14 days
        following each interim  date
     d.  Final report of compliance or noncompliance
        due no later than 14 days following final
        date of compliance
                                                             State Regulatory Authority
                                                                    (citations)
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                                                             State Regulatory Authority
                                                                    (citations)
 11.  Notice requirements

      a.  Any planned physical alterations or additions
         to permitted facility                                 	—
      b.  Significant changes planned in the permittee's
         sludge use or disposal practice(s) or sites             	;	
      c.  Anticipated noncompliance resulting from
         planned changes                                    	—	
      d.  Permit is  nontransferable except after due
         notice to Director	•.—
      e.  Other noncompliance reporting
         Other relevant information which the Director
         requests                                           	—	
  12.  CWA penalties for violation of permit conditions

      a.  Civil - $25,000/day/violation
      b.  Criminal (negligent) not less than $2,500
          nor more than $25,000/day/violation and/or
          imprisonment of one year
      c.  Criminal (knowing violation) - not less than
          $5,000 nor more than $50,000 per day of
          violation, and/or imprisonment for not more
          than  3 years

  13.  Need to  halt or reduce permitted activity is not
      a defense
  14.  Use of reopener - unexpired permit to be reopened
      if any more stringent standard promulgated under
      CWA Section 405
  15.  Duration of permit not longer than 5 years
  16.  Duty to  reapply
C. Regulations on permit issuance procedures
   [40 CFR 501.15(d)] [40 CFR 122.62] [40 CFR 122.64]
   [ 40 CFR 124.3, 124.5, 124.6, 124.8, 124.10,
   and  124.58]

    1.  Permit application

       a.  NPDES POTWs must submit application
           information with their next application for
           NPDES permit, or within 120 days of the
           promulgation of an applicable standard
       b.  For sludge-only POTWs and other
           treatment works treating domestic sewage,
           submit an application if the Director
           determines that  a permit is'necessary
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                                                              State Regulatory Authority
         .              ,  .        ,.                               (citations)
     c.  A new source submits an application at
         least 180 days prior to commencing operations        	
     d.  A permit will not be processed until the                                  ~	
         applicant has fully complied with the
         application requirements
 2.  Draft permits

     a.  Issue whenever decision is made to issue,
        modify, or revoke and reissue a permit
     b.  Draft permit must include all required
        permit conditions

 3.  Fact sheets for draft permits

     a.  Fact sheets shall be prepared for:

        •   Class  I sludge management facilities
        •   Permits requiring case-by-case conditions
        •   Permits which are the subject of widespread
           public interest or raise major issues

    b.  Fact sheets shall include:

        •   Brief description of facility or activity
        •   Calculations/explanation of derivation of
           conditions for sludge use and disposal
        •   Brief description of how each of the '
           required elements of the land application
           plan area is addressed, where applicable

4.   Public  notice  of permit actions and public
    comment period

    a.  Types of notification

       •   Notice of intent to issue a permit
       •   Notice of intent to terminate a permit

   b.  30 days for public comment

   c.  30 days notice before any scheduled
      public hearing
                                     3-28

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                                                        State Regulatory Authority
                                                              (citations)
d. Notification sent to the following:
    •   Applicant
    •   Any other agency (including EPA) which
       must issue a permit (RCRA, UIC, PSD,
       NPDES, MPRDS, or 404) for the same
       facility or activity
    •   Any State agency responsible for plan
       development
    •   State or local governmental entity with
       jurisdiction over the proposed location
       of the facility
    •   Any person who requests a copy

 e.  Methods of notice:

    •   Class I permits and permits that require
       land  application plans newspaper publication
    •   In a manner constituting legal notice to
       the public under State law
    •  Any other method

 f.  Contents of notice

    •  Name and address of the office
       processing the permit
    •  Name and address of the applicant
    •  Brief description of the activity
       described in the permit application
    •  Name, address, and  telephone number
       for further information
    •  Description of comment procedures,
       including method to request public
       hearing (if not scheduled in advance)
    •  Statement that no permit will be issued
       over the objection of EPA

 g. Hearings

    •  Public hearing shall be held whenever
     .  a significant degree  of public
        interest exists

 h.  Public notices for hearings shall
     include the following:

     •  Date of previous public notices
        relating to the permit
     •  Date, tune, and place of the hearing
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                                                            State Regulatory Authority
           ~    .  .    _ .                                         (citations)
           Description of the nature and purpose
           of the hearing
           Written comments and/or request for                        ~              ~
           a public hearing may be submitted
           during the comment period
    i.  Response to significant comments at
       time of permit issuance shall:

       •  Specify which provisions, if any of
          the draft permit were changed in
          final permit
       •  Describe and response to all significant
          comments on draft permit

5.  Permit Actions

    a.  Transfer permits - by modification to
       identify new owner and incorporate
       any other such requirements as may be
       necessary to assure compliance with
       the CWA by:

       •   Major modification
       • ,  Minor modification
       •  Revocation and  reissuance
       •  Automatic transfer
   b.  Causes for modification or revocation
      and reissuance

      •  Alterations to the permitted facility
         or activity
      •  New information received by the Director
      •  New regulations promulgated under CWA Section
         405(d)
      •  Director determines that good cause
         exists for  modification of a compliance
         schedule required under the permit
      •  When required by a permit condition to
         incorporate,  revise, or add a land
         application plan

  c.  Causes for modification or revocation
      and reissuance

      •   Inspection of facility or receipt of
         required information
      •   Review of permit file
      •   Permittee request

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                                                               State Regulatory Authority
                                                                     (citations)
      d.  Causes for termination or denial of a
          permit application or permit renewal
          include the following:

          •  Noncompliance by the permittee with any
             condition of the permit
          •  Permittee's failure in the application or
             during the permit issuance process to
             disclose fully, or any misrepresentation
             of any material facts
          •  Determination'that the permitted activity
             endangers human health or the environment
          •  Changed conditions requiring reduction
             or elimination of any permitted  activity

D.  Regulations applicable to  specific sludge use
    and/or disposal practices  [40 CFR 501.1(d)(l)]
    [40 CFR 122.1(b)(4) and (g)(7)]

    1.  Landfill  - monofill
    2.  Land application - agricultural land
    3.  Land application - nonagricultural land
    4.  Distribution and marketing
    5.  Incineration
    6.  Surface  impoundments
    7.  Other		_	

 E.  Optional program provisions [40 CFR 501.15(e)]

    1.  Continuation of expiring permits [40 CFR 122.6].
        Expired permit continues in  force until the
        effective date of a new permit.

        a. Expired permit remains fully effective
           and  enforceable

        b. When permittee is not in compliance with
            the  conditions of the new or expired permit,
            the  State may do one of the following:

            •  Initiate enforcement action based on the
               permit which has been continued
            e  Issue  a notice of intent to deny the
                new permit
            •   Issue a new permit with  appropriate
                conditions
            •   Take other actions authorized  by the
                Federal regulations
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                                                                      State Regulatory Authority
          2. General permit [40 CFR 122.28]                                (citations)

             a.  Written to cover a category of discharges
                 or sludge use or disposal practices or
                 facilities within a geographic area or
                 political boundaries
             b.  Written to cover facilities with same                             	
                 activities and subject to same standards
                 and requirements
             c.  Individual facility, whether or not covered                 	'	"
                 by genera] permit, may be required to
                obtain an individual permit
             d. Any owner or operator may request to be                  "	~"~—
                excluded from the coverage of the general
                permit by applying for an individual permit           	
             e.  Applicability of general permit to a                              "	
                particular individual is automatically
                terminated upon the effective date of an
                individual permit
            f.   Individual  excluded from a general permit                          	
                solely because individual permit exists may
                request that the individual  permit be revoked,
                and that it be covered by the general permit '        	

        3.  Minor modification of permits [40 CFR  122.63]          	
            a.  Correct typographical errors
            b.  Require more frequent monitoring or reporting
            c.  Change an interim compliance date
            d.  Allow for a change in ownership when no
               other change occurs


IV- Requirements for Enforcement Anthnrify
    f40 CFR 501.17]

    A.  Specific remedies for violations of State
        sludge program requirements [40 CFR 501 17(a)(b)l
        [40 CFR 123.27]

        1.  Injunctive relief
       2.  File suit to seek civil penalties in the amount
           of at least $5,000/day for each violation
       3.  Press criminal charges, seeking monetary
           penalties of at least $10,000/day for each
           willful or  negligent violation
       4.  The maximum civil penalty or criminal fine is
           assessable on a per violation per day basis
                                             3-32

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                                                               State Regulatory Authority
                                                                      (citations)
   5.  False statements - Knowingly makes any false
       statement, misrepresentation, or certification;
       knowingly renders inaccurate any monitoring
       device or method, punishable by a fine of
       $5,000 per violation

B. Burden of proof — degree of knowledge or intent is
   not greater than that required by Clean Water Act
   [40 CFR 501.17(b)(2)]  [40 CFR 123.2(b)(2)j

C. Public participation - provide for public
   participation in State enforcement process by either
   [40 CFR 501.17(d)] [40 CFR 123.27(d)]

    1.  Allowing intervention as a right by any
       interested citizen in any civil or administrative
       action
   2.  Not opposing citizen  intervention when
       permissive intervention is authorized, and

       a.  Investigating and  providing responses to
           all citizen complaints [123.26(b)(4)], and
       b.  Providing published notice and a 30  day
           public comment period regarding any
           proposed settlement of an enforcement action.
D. Additional enforcement remedies (optional)

    1.  Authority to issue an administrative order to
       abate any violation  [40 CFR 123.27(a)(l)]
    2.  Authority to assess fines on  an administrative
       basis [40 CFR Part 22]
                                           3-33

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                               4.  PROGRAM DESCRIPTION

       The State sludge program application must describe the organization administering the
program, and detail procedures for implementing the sludge management program.  According to
Federal regulations, the program description is required to contain the following nine components:

       •   Narrative description of program scope, structure, and implementation procedures;
       •   Organizational chart;
       •   Narrative description of organization and structure of responsible State agency or
           agencies, including:
               Designation of lead agency
               Responsibilities of  each agency
               Interagency/intra-agency coordination procedures
               Description of participating State staff, including the number, occupations, and
               general duties;
       •   Itemized estimate of resource requirements and program costs for the first two years;
       •   Estimate of sources and amounts of funding for the first two years;
       •   Inventory of all POTWs and other treatment works treating  domestic sewage;  .
       •   Narrative description of applicable State program procedures for:
               Permitting
               Compliance tracking
               Enforcement; and
       •   Copies of permit application forms, permit forms, and reporting forms.

 This chapter discusses how the State drafts its program description.  It  specifies the information
                                                                •,
 necessary to document the State's  organization, management, resources, and procedures for
 permitting, compliance tracking, enforcement, and maintaining a shidge inventory.   It addresses both
 States pursuing approval under an existing NPDES program and States which do not have NPDES
 programs.  A checklist to guide States and EPA in determining the completeness and adequacy of the
 program description appears at the end of the chapter.
                                               4-1

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  4.1  PROGRAM SCOPE [40 CFR 123.22 and 501.12(a)]
         The program description must clearly identify the scope of the organizational structure
  supporting the program and the administrative procedures that implement it.  This section describes
  requirements for expanding the scope of the State NPDES program and defining the scope of a non-
  NPDES State sludge management program.

  4il.l NPDES Program  Scope
        If the State decides to incorporate sludge permitting requirements under its existing NPDES
  program, this NPDES  program must be revised to  incorporate sewage sludge generation, treatment,
 -use and disposal.  The State's NPDES program must be made applicable to owners or operators of
  any treatment works treating domestic sewage, whether or not the treatment works is otherwise
  required to obtain an NPDES permit.

        A State seeking approval of a sewage sludge management program is required to  have the
 authority to regulate any person using or disposing of sewage  sludge within the State (including
 Federal facilities) through  the six  methods regulated under 40  CFR Part 503:

        •    Land application;
        •    Monofill (and co-disposal landfill);
        •    Distribution and marketing;
        •    Incineration;
        •    Surface disposal; and
        •    Any other sludge use and disposal practices that may be covered by Federal regulations
            implementing CWA Section 405.

The State need only have the legal authority to regulate the transportation and storage of  sewage
sludge so that it can take action where necessary to protect public health and the environment.

       If any of the practices covered by the 40 CFR Part 503  technical standards are not currently
being used in the State,  the program  description should indicate this.  A State must have the
authority to regulate sewage sludge sent to a co-disposal landfill even though it is not required to
have a program to regulate the landfill itself.  Due to the infeasibility of regulating sludge quality for
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co-disposal landfills under 40 CFR Part 503, EPA decided to regulate the disposal of sludge in co-
disposal landfills through landfill design and operation requirements under 40 CFR Part 258.
However, Part 503 will require POTWs sending their sludge to a co-disposal landfill to meet the Part
258 requirements for material that a landfill may accept (e.g., that the sludge not be hazardous and
that it pass the Paint Filter Liquids Test), and a State must be able to impose these requirements on
the sending POTW.  The submission should also include a discussion of the practices that will be
regulated  in addition to those listed above.

4.1.2  Part 501 Scope
       According to 40 CFR 501.12(a), the program application must describe the scope of the
program the State intends to administer.   Since the scope of a State sludge management program
approved  under Part 501 is the same as the scope of a program approved under  Part 123, a State
developing a 501 sludge program should  make sure that its submission addresses the points discussed
above  in Section 4.1.1.

4.1.3  Partial Program Scope
       EPA anticipates revising the NPDES regulations to provide regulatory language for partial
sludge management program approvals.   Pending proposal of those revisions, EPA is willing to work
with States that are interested in partial sludge program delegation to prepare submissions for
approval.  (After the regulations are effective, EPA will issue more specific guidance on partial
sludge programs).  A partial sludge program  will be allowed where a State agency has responsibility
for regulating one or more of the use or  disposal practices listed in  Section 4.1.1 above.  As stated
in Chapter 1, partial sludge programs will be allowed either under Part 123 as a component of an
NPDES program, or under  Part 501 as a non-NPDES partial program.

       The State agency must have a complete permit program to qualify for partial program
 approval, including permit development, issuance, compliance monitoring,  and enforcement
 responsibilities. -The program will be required to cover all facilities utilizing the particular sludge
 use or disposal practice falling within the State-agency's jurisdiction.  The program must be
 consistent with the maximum extent of the agency's authority under State law.  The State should be
 prepared to explain why it is unable or unwilling to assume full program delegation. In addition, all
 users  and disposers under a particular practice are subject to the partial program, even if not required
 to obtain a permit.
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          For example, a State agency regulating land application would be aide to apply for program
   approval based on that practice alone.  The partial program would be required to cover all permittees
   using land application, as well as ultimate users and disposers (even if they are not required to have
   a permit).  Alternatively, a State agency with jurisdiction over all sludge use and disposal practices in
   the State except for incineration would be able to  submit a program based on all sludge use and
   disposal practices except incineration.

         The sludge management activities or facilities not covered by the  partial program will be
   administered by EPA.  This division of authority should not lead to conflicting obligations for
   permittees; for example, requiring them to obtain  sludge permits  from both EPA and the State. The
   program should make it clear  whether the permit issuing authority is the,Suite or EPA.

   4.2    PROGRAM ORGANIZATION AND ADMINISTRATIVE STRUCTURE [40 CFR 123 22
         and 501.12(b)]
         The program submission must describe the  organization of the  agency or agencies responsible
  for administering the State's sludge management program.  This .description must identify,  all  State
  agencies that will have any responsibilities  in the program  by name, detail these responsibilities, and.
  outline interagency and/or intra-agency coordination. In addition, the  application should identify and
  indicate the scope and function of any advisory body which exerts influence or contributes to policy
  development or decision making on sludge  use and disposal.  Also, any other State offices that play a
  role in the administration of this program, such as  the Attorney General's office and wildlife or
  coastal zone management offices, should be identified.                                          '•

        This narrative description must be accompanied by one organization chart for each agency
  implementing the State's program.  If multiple State agencies are  involved, an overall organizational
  chart which clearly shows the position of each agency in the State governmental hierarchy is
  necessary.  The State needs to  clearly describe which offices within the agency(ies) are responsible
  for administering different aspects of the program.  For example,  if the State agency has  a permits
 section and a compliance section, the program submission should indicate  the responsibilities of each
 in administering the program.  Any assignment of program responsibilities to local agencies and the
 corresponding State oversight must  be described.   Example organizational charts appear in
 Appendix B.
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4.2.1 NPDES Program Organization
      If the sludge program is to be part of the State's NPDES program, the program submission
only needs to identify organizational and administrative changes which reflect personnel involved in
sludge use and disposal.  This brief description should be accompanied by an organizational chart
which illustrates delegation of responsibility for implementation and oversight of the sludge
management program.

4.2.2 Part 501 Program Organization
       If the State intends to implement its sludge program under Part 501, the organizational
description of the program must be more comprehensive than the comparable description under a
State's NPDES program.  Since no framework for the program exists, more detail is required to
explain to  EPA exactly which agencies are involved, what their responsibilities are, and  how they
interact. The following subsections indicate the organizational issues which must be clarified in the
State's program submission.

Multiple State Agencies With Sludge Management Responsibilities
       States regulating, or intending to regulate, various classes of sewage sludge use and disposal
commonly have management responsibilities in more than one State agency (or divisions within an
agency).  The State may have as many agencies involved in sludge management as it has regulated
methods of sludge use and disposal.   Its program description needs to identify the agency responsible
for each method specified in the program's scope and to delineate  clearly the jurisdiction of each
agency involved in the program. For example, a State may have one agency responsible for land
application of sewage sludge and another agency responsible for landfills, or one agency with
statewide jurisdiction for POTWs while another administers the program to all other treatment works
(i.e., privately owned facilities, Federal facilities, and commercial  sludge treatment and  distribution
or disposal facilities). The program submission must clearly detail both the division of
responsibilities within and between the agencies and their procedures for coordination.  This
discussion should also explain any overlap of responsibilities between the agencies. If interagency or
intra-agency agreements will be necessary, a copy of these agreements should be  included in the
program submission.  Interagency agreements may be submitted as draft, but must be final at the
 time of program approval.

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  Lead Agency
        Section 501.12(b) of 40 CFR stipulates that if more than one State agency is to be involved in
  the sludge management program, a lead agency must be designated which will be responsible for
  overall program coordination as well as for coordination between the State and EPA.  Though not
  required, identifying a central coordinator within the lead agency is recommended.  Central
  coordination is necessary to convey information on activities throughout the State's program in the
  most expeditious manner possible. The time demands for program coordination should not be
  underestimated.

 Delegation to Local Agencies
       EPA encourages States to use existing sludge management programs to the extent practicable.
 Therefore, 40 CFR 501.12(15)(f) allows a State sludge management agency to assign portions of its
 program  functions to a local agency,  as long as that agency does not own or operate a POTW or
 other facility subject to the  sewage sludge regulations.  A State agency  intending to use this approach
 must identify which responsibilities will be delegated to the local agency and must demonstrate the
 agency's  capabilities to carry out the assigned functions.  Documents which assign functions and
 specify the respective State/local sludge management responsibilities must be submitted with the
 program description.

       Any assignment of program responsibilities to a local agency must be certified in the Attorney
 General's Statement as being valid under both State and local law.  The MOA. must provide for
 adequate State agency oversight of implementation by the local agency.  Under 40 CFR 501.1(1), the
 State sludge management agency remains responsible for all reports required to be submitted to EPA.
 Finally, the State sludge management agency must retain full authority and ultimate responsibility for
 administering all aspects of the State's approved program.

4.3   RESOURCES [40 CFR 123.22 and 501.12(b)]
      The program submission must demonstrate that the State possesses adequate resources
(including sufficient funding) and qualified personnel to operate the described program.
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4.3.1 NPDES Program Resources
      Since the State's NPDES program description describes the personnel and funding necessary
to administer the NPDES permitting program, this description needs only to be supplemented to
demonstrate that resources such as staffing are adequate to implement the sludge management
program.

4.3.2 Part 501 Program Resources
       The State program submission must address staffing, itemize costs, and estimate funding to
effectively administer the sludge management program.  Each of these areas is described separately
below.

Staffing T40 CFR 501.12fbWlYl
       The staff description must include the number of employees' with program responsibilities,
their occupations and duties (e.g., administration, permitting, compliance, or enforcement).  The
State's program description is not required to contain individual job descriptions, but should describe
general minimum qualifications (academic and/or experience) required for personnel in each program
area. The staff description should delineate whether these positions have actually been filled, and if
not, when they are scheduled to be filled. In addition, the description should identify  the following
special  considerations, when appropriate:

       •   Personnel dividing time between two or more functions (care should be taken not to
           double count available personnel);
       •   Persons who may be  working part-time; and
       •   Additional assistance  from other offices (i.e., technical expertise or legal support from
           other offices).

 Itemized Estimate of Costs T40 CFR 501.12fbV2Yl
       The program description must contain an itemized estimate of costs expected to be incurred in
 the first two years for program development and implementation.  This description should project
 personnel and resource needs and translate these resources into work-years  or FTEs (full-time
 employees).  EPA recommends that the State conduct a workload analysis and present it in the
 program application.  This analysis should address each component of the program (e.g., applications
 processing, permitting, compliance monitoring, and enforcement). The State should be sure to use a

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   reasonable estimate of the time necessary to perform each function and the number of times the
   function will be performed.  For example, if the State estimates that permits for 40 Class I sludge
   management facilities will be issued in the next two years and that the States will need three workdays
   to develop sludge conditions for each, then estimated workload for this activity is  120 workdays or
   0.55 work-years.

   .  .    The State should break down itemized costs by agency and include die following:

         •   Personnel
                 Administrative personnel
            -    Technical personnel (e.g., for inspections and sampling)
                 Clerical personnel; and
         •   Equipment.

        Once the State has determined its estimated resource requirements, it should compile a list of
 personnel and equipment currently available to  each agency to fulfill its requirements.  These
 available resources should  be listed in the program description.   The description should also clearly
 identify any staffing or other resource shortfalls and explain how they will be handled without
 impairing program performance.

 Estimate of Funding

       The program description must estimate the expected available funding for the program and the
 source(s) for this funding [40 CFR 501.12(b)(3)].  The description should also discuss how  each
 agency will obtain budget approval for its  requisite resources.

 4.4    PERMITTING [40  CFR 123.25 and 501.15]
       Specific Federal sludge permitting requirements are presented in detail in 40  CFR 123.25 and
 501.15, which incorporate the permit provisions of 40 CFR Part  122 by reference.  The State's rules
 and regulations must define State permitting requirements (see Chapter 3).  However, as required by
40 CFR  123.21(c) and 501.12(c), the program submission must describe permitting  procedures.
Aspects to be considered in  the State's permitting procedures are outlined in the checklist at the end
of this chapter.
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4.4.1 NPDES Progrflm Permitting
       Since approved NPDES States seeking approval of a State sludge management program under
40 CFR Part 123 already have permitting procedures in place, these States need only submit changes
made to incorporate sludge permitting activities.  The State's program description should include new
or revised permit application forms and standard conditions for permits.  Changes to current
procedures for reviewing permit applications, drafting permit conditions, taking permit actions, and
providing public notice, if any, should also be described in the program description.  For a detailed
description of these changes, the State should refer to the following discussion of permitting
requirements for the Part 501 program submission.

4.4.2  Part 501 Pfogram Permitting
       The  checklist at the end of the chapter describes three major elements in the permitting
process:  .permit application; permit development and contents; and permit issuance.  To assist State
personnel in developing a program submission, these elements are  described below.

Permit...Application
       The  program submission should describe procedures for identifying those facilities or sludge
use  and disposal methods that will be permitted.  It should also describe the procedures that
permittees will be required  to follow to obtain a permit under the State's program.  For example, the
State may choose to send a formal letter transmitting the State sludge regulations, a permit
application  and the name and phone number of a State contact person to whom the applicant may
direct questions, or rely on some  other method to inform treatment works of their  obligation to
obtain a permit.

       In accordance with 40 CFR 501.12(d), a sample permit application form must be provided in
 the State's  submission. The State should compare its application information requirements with the
 minimum application information required by the Federal regulations [40 CFR 501.15(a)(2) and
 122.21(c)], as listed  in the checklist at the end of this chapter.  If the State's applications  differ from
 agency to agency,  the State should submit a copy of each application form, designating the types of
 facilities for which it will be used.

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         The permitting process discussion should outline the administrative procedures used to review
   applications.  This description may take the form of a chart or flow diagram depicting the
   administrative steps.  It should describe how the agency will follow up receipt of the application and
   obtain all requisite information.  The description should also establish time frames for the review
   period in which a permit must be either drafted or denied. Further, the permitting description should
   include procedures for administrative, judicial, and EPA review, and to the extent that the State
  regulations are not specific, briefly highlight the State's permit appeals proems.

  Permit Development and  Contents

        In describing development of the draft permit, the submission should identify when fact sheets
  will be used and how they  will be prepared.1 The State should also  examine its procedures to ensure
  that fact sheets will contain the minimum information required by Federal regulations:

        •   Brief description of the type of facility;
        •   Type and quantity of sludge;
        •   Brief summary of the reason for  the draft permit conditions, including references to
            applicable statutory or regulatory provisions and appropriate supporting references to the
            administrative record;  and
        •   Any calculations or other necessary explanation of the derivation of the following sludge
            limitations and conditions, including a citation to the applicable standard provisions and
            reasons why they are applicable:
                Limitations to control toxic pollutants
                Limitations on indicator pollutants
                Limitations on a case-by-case basis.

 In addition, all fact sheets should include:
       •    Name and telephone number of the permit writer or other contact person;
       •   For every permit issued to a treatment works owned by a person other than the State or a
           municipality, an  explanation of the Director's reasons  for permitting  the facility; and
     The Federal regulations require all draft permits to be accompanied by a fact sheet.  Fact sheets
are required for every Class I sludge management facility permit and for any other draft permit that:
Requires conditions developed on a case-by-case basis to implement Section 405(d)(4) of the Clean
Water Act; includes a sewage sludge land application plan; or the State finds is the subject of public
interest or raises major issues.
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       •    A sketch or detailed description of the location of the facility described in the application.

       The program submission should also specify procedures for developing appropriate permit
conditions.  All permits must contain the minimum standard conditions specified
by the Federal regulations (see 40 CFR 123.41 and 501.15).  These standard conditions are listed in
Table 3-4 in Chapter 3.

       The program description must also contain  a sample permit form.  If permit forms differ for
different sludge use or disposal methods, a sample of each form should be enclosed.

Permit Issuance
       Each State agency participating in the sewage sludge management program must have
procedures to transfer, modify, revoke and reissue, or terminate permits.  If these procedures are
contained in State regulations, additional narrative descriptions may not be necessary.  However, if
State regulations  allow broad discretion in the transfer of permits, the State may want to describe the
criteria and procedures that will govern such transfers.  These requirements are found at 40 CFR
501.15(c).

       General Permits.  Under 40 CFR 501.15(e), the State has the option of applying for
approval to issue general permits to treatment works with similar operations  and sludge use or
disposal practices.  The  treatment works must be within the same geographic area or political
boundaries, and may include sewer districts or authorities, cities, counties, or the State. The
treatment works  to be included under the general permit must also all be  subject to the same
standards, conditions, and monitoring requirements.  General permits may not be appropriate for
Class I facilities, which  usually require case-by-case permit conditions. The program description
must discuss potential groups of sludge users or disposers which may be  regulated under a general
permit, as well as  modifications to permit procedures which are peculiar  to general permits.

       Each agency must also provide the opportunity for facilities covered under existing individual
permits to apply for coverage under an applicable general permit.  Likewise, facilities covered under
general permits must have the opportunity to "opt out" and apply for an  individual permit. The
program description must include such procedures.
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            l'C Notice pf Permit Actions. The program description must delineate each agency's
  procedures for ensuring public participation in the permitting process.  The agency must provide
  public notice of all draft permits, permit modifications, permit revocation and reissuance, and permit
  termination actions. If public notice procedures are detailed in the State regulations (see Chapter 3),
  additional narrative descriptions of these procedures may not be necessary. If the public notice
  details are contained in agency policy or a procedures manual,  it is helpful to include a brief
  description of these procedures in the State's program description along with  a copy of the manual.
  Public hearing procedures should also be described.

 4.5  COMPLIANCE EVALUATION PROGRAM [40 CFR 123.26 and 501.16]
        Compliance monitoring activities are central to an effective sludge management program.  It
 is through these activities that the State identifies facilities whose practices threaten public health or
 the environment. Consistent and accurate data collection and documentation are critical  elements in a
 reputable compliance evaluation program.  The checklist at the end of this chapter outlines the
 compliance activities which should be addressed in the State's program submission.

 4.5.1  NPDES Program  Compliance Monitoring
       An approved NPDES State seeking a State sludge management program under 40 CFR Part
 123 will most likely rely on compliance evaluation procedures used in its NPDES program.  Such
 States need only submit changes to these procedures which incorporate sludge compliance activities.
 States must ascertain the applicability of water compliance procedures to sampling, inspection, and
 analysis requirements for sludge,  and modify those procedures to satisfy sludge requirements if
 necessary.  The following section on requirements  for Part 501 programs  contains more information
 on this topic.

 4.5.2  Part SOI Program Compliance Monitoring
       A State seeking approval of a sludge management program under 40 CFR Part 501 must
provide a detailed description of its compliance evaluation program.  This program must reflect the
compliance monitoring procedures and requirements set forth in 40 CFR 123.26.  These
requirements consist of:

       •   Procedures to maintain a comprehensive inventory of facilities  and  a schedule of reports
          to be submitted by each facility;
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      •   Procedures to receive, evaluate, retain, and investigate self-monitoring reports for
          possible enforcement actions;

      •   Procedures to inspect facilities and related  activities to determine compliance (Class I
          sludge management facilities at least once a year);

      •   Procedures for sampling to:

              Determine compliance
              Verify accuracy of self-monitoring results
              Verify accuracy of self-monitoring sampling and analysis procedures;

      •   Chain-of-custody procedures to ensure admissibility of evidence;

      •   Procedures for the public to report information;

      •   Procedures to investigate reports of violation, including receiving and considering reports
          submitted by the public; and

      •   Procedures to maintain a management information system to support compliance
          evaluation activities.


      The State's description of its compliance monitoring program must address each of these
considerations, discussed below.  If more than one agency is involved in the sludge program  each
has different protocols, their description should be presented separately to eliminate possible

confusion.


Maintaining a Comprehensive Inventory of Facilities T40 CFR 501.12(f) and 123.22(D; 40 CFR
501.16 and  123.26(6X1)1

       States applying for approval of a State sludge management program must submit an inventory
of all treatment works treating  domestic sewage in the State.  The inventory must include the
following information for each  facility:


       •   Name, location, and ownership status (e.g.,  public, private, Federal);
       •   Sludge use or disposal practice(s);
       •   Annual sludge production volume;
       •   Permit numbers of  all environmental permits held, if any; and
       •   Compliance status.
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        At a minimum, the initial inventory in the program submission should include all facilities
 that are or will be required to obtain a permit (i.e., all publicly and privately owned treatment
 works, and Federal facilities treating sewage sludge).  It should also include sewage sludge
 commercial distributors which the State plans to permit. Industrial treatment works treating domestic
 sewage will not be regulated under Phase I of 40 CFR Part 503.  If these facilities become subject to
 regulation under subsequent rulemakings, then the State's program and inventory will have to be
 expanded to cover these facilities.

       Additionally, the inventory must include all sewage sludge use and disposal sites,  including
 the name, location, and permit number (if any) for each site.  An inventory of the beneficial use sites
 that receive sludge through a distribution and marketing program (i.e., home gardens) is not
 required.  If the State does not choose to submit this additional inventory of uise and disposal sites
 with the rest of the program application, the description should indicate how the State will complete
 the inventory within five years  of program approval.

       As part of the compliance monitoring program, each State is required to update and maintain
 the inventory.  Updating is required to add new or changed facilities  and  sites that could require a
 new or modified permit. Procedures for updating the inventory may  include:

       •   Requiring existing facilities and sites to report any substantive changes as a permit
           condition;
       •   Reliance on inspections to verify reported changes and identify unreported ones;
       •   Arrangements with cities and counties to be notified of any new facilities or sites locating
           within their jurisdictions; or
       •   Arrangements with nonparticipatory State agencies for notification of facilities or sites
           coming to their attention during the course of business.

       The program description must describe how each agency will accomplish this task.  For
example,  the State can require all newly identified or substantially changed facilities  to submit a
revised permit application.
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Receipt. Evaluation,  and Retention and Investigation of Permittee Self-Monitoring Reports T40
CFR 501.16 and 123.26(a)1
       The program description must explain how each agency will receive, track, and evaluate all
notices and reports required to be submitted by permittees. Since States will use these procedures to
determine whether to seek enforcement against permittees, the procedures must be comprehensive
enough to evaluate and accurately track the information over time.

Inspections F40  CFR 501.16 and 123.26(bH2)1
       The Federal regulations require inspections of all Class I sludge management facilities at least
annually.  All other sludge management facilities should be inspected on a routine basis. The
inspection should include sludge treatment and use or disposal sites and practices, where appropriate.
Inspections of facilities and activities subject to regulation are required in order to determine
compliance; to verify the accuracy of information submitted by permittees; and to verify the
adequacy of sampling, monitoring, and other methods used- by permittees to submit information.

Compliance Sampling T40 CFR 501.16 and  123.26(d)l
       States must have the authority to conduct investigatory inspections, which include sampling
and other information gathering.  Sampling must be conducted in accordance with appropriate
"chain-of-custody" procedures to ensure the admissibility of evidence  in an enforcement proceeding
or in court.

Public Participation [40 CFR 501.16 and 123.26fbH3U4)1
       The sludge management program must encourage public participation. Often, violations may
be spotted by conscientious employees or private citizens before a  State can identify them through its
inspections or sampling.  The program description should describe procedures for receiving
information submitted by the public as well as the procedures for responding to public reports of
suspected violations.

Compliance Tracking Management System T40 CFR 501.16 and 123.26(eWn
       The program submission must also describe each agency's  procedures for maintaining a
management information system which supports compliance evaluation activities.  The compliance
management program should address the  inventory, flow of information, enforcement screening,  and
a data management system.
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 4.6  ENFORCEMENT [40 CFR 501.17 and 123.27]
        At a minimum, all State sludge management programs must have the authority to invoke
 timely and effective enforcement remedies.  The checklist at the end of the chapter outlines both
 required and suggested components of a comprehensive enforcement management strategy for the
 State sludge management program. Those requirements are briefly discussed in the following
 sections.

 4.6.1 NPPES Program Enforcement
       The enforcement authorities required for the sludge management program are identical to "
 those required for the existing NPDES program.  The State NPDES enforcement authorities should
 be compared to the Federal  regulations to verify consistency and ensure they are adequate to
 implement sludge requirements. More detailed information about enforcement authorities is provided
 in the following section on Part 501 program requirements.

 4.6.2  Part 501 Program Enforcement
       In addition to ensuring adequate enforcement authority, a State seeking approval under 40
 CFR Part 501 should describe its enforcement strategy and procedures.  The narrative description of
 this enforcement strategy should discuss the State's informal and formal enforcement remedies,
 strategies, and policies.  The minimum enforcement requirements are discussed in greater detail in
 Chapter 3.

       It is very important that any limitations and restrictions governing the use of the enforcement
 remedies be disclosed. Thus, if State law requires certain actions be taken prior to initiating
 enforcement actions (e.g., a conciliation meeting, a show cause hearing), they must be explained  in
 the program description.  Obstacles which prevent the State from achieving the minimum
 enforcement requirements must be removed.

 Civil, Criminal,  and Administrative Penalties
       The State's program must describe each agency's process for pursuing administrative fines,
 civil litigation, and criminal  prosecution, and the appropriate range of penalties for violations. The
discussion of the enforcement program must also include a synopsis of the relationship and
coordination between the permitting office, the inspection/compliance office, !ind State legal officials
(e.g., the Attorney General's office).  Finally, the enforcement discussion must address provisions to

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ensure the public's right to participate in, and have adequate notice of, enforcement actions.  These
requirements are discussed in greater detail in Chapter 3.
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 4.7  PROGRAM DESCRIPTION CHECKLIST


 I-   PROGRAM SCOPE

     A. Will the State's program regulate:

     _ 1 .  Sludge-only monofills
     _ 2.  Co-disposal landfills
     _ 3.  Land application
     _ 4.  Distribution and marketing
     _ 5.  Incineration
     _ 6.  Surface disposal
     _ 7.  Other  (Specify: _ )

     B.  If the program will regulate landfills, does the submission specify the following:

        1. Sludge-only monofills

        _  a.  Municipal
        _ b.  Privately owned

        2.  Co-disposal landfills

        _ a.  Municipal
        _ b.  Privately owned

    C.  If the program will regulate land application, does the submission specify the following:

        1.  Agriculture
    _  2.  Silviculture
    _  3.  Grazing lands
    _  4.  Reclaimed lands
    _  5.  Dedicated land disposal sites
    _  6.  Other  (Specify: e.g., highway medians, parks,  golf courses)

_  D.  Will the State's program regulate Federal facilities?  Will the State's program require permits
        for facilities other than treatment works treating domestic sewage? If so, which facilities or
        persons?

_  E.  Is the submission's description of the program's scope clear and comprehensive?


H.  PROGRAM ORGANIZATION AND ADMINISTRATIVE STRUCTURE

_  A. Will the State program be administered by more than one agency/ department?

_  B. Are two (or more)  agencies responsible for one sludge use and dispos,al method?

_  C. Does the submission include an organizational chart?
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   D. Does the chart indicate each agency/department responsible for each regulated disposal
       method listed in the scope?

   E. Does the organizational chart or the submission clearly designate the lead agency that will
~     report  to EPA?

   F. Does the chart specify positions responsible for the following:

   	 1.  Review of permit application
   	 2.  Permit issuance
   	 3.  Inspection and monitoring
   	4.  Compliance  tracking
   	 5.  Enforcement

	 G. Does the submission include a narrative of the State's program organization?

	 H. Is the  narrative description consistent with the organizational chart?

	 I.  Does the narrative clearly state the sludge use and disposal methods for which each agency is
       responsible?

	 j.  is interagency/interdepartmental coordination described?

__  K. Are coordination activities adequate to provide comprehensive reporting to EPA?

	  L. Does the submission describe the role of local agencies?

in.  RESOURCES

	  A. Does the submission specify the work years to be provided by each agency/department to
       administer this program?                                                   ;

_  B. Does the submission contain charts showing all positions responsible for implementation of
       the program?

    C.  Does  the description include personnel for the following:

    	 1.  Permit preparation
    	 2.  Inspections
    	 3.  Sampling
    	 4.  Analysis
    	 5.  Data review
    	 6.  Enforcement
    _ 7.  Legal
    _ 8.  Clerical

 	 D. Are the work years to be provided sufficient to accomplish the activities described?
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     E. Does the submission specify the equipment to be provided by each agency/department for the
        following:

     	 1.  Sampling equipment
     	 2.  Analytical equipment
     _ 3.  Vehicles
     	 4.  Data management system
     	 5.  Safety equipment

 _;• F.  Does the equipment appear sufficient to accomplish the activities described?

 _  G.  Does the submission provide an itemized estimate of costs to establish and administer this
        program for the first two years?

 .!_ H.  Does the level of itemization contain distinct costs for each program activity described in
        Item C above?

 __ I.   Are the costs consistent with the personnel, equipment,  and administrative activities
        described?

__ J.   Does the submission describe the sources and amounts of funding to meet the costs for the
        first two years?

IV,  PERMITTING PROCEDURES

    A. Permit application:

    _  1.   Does the  submission clearly describe how treatment  works will be required to submit a
           permit application?
    _ 2.   Does the submission contain permit application form(s) that cover each sludge use and
           disposal method?
       3.   Does the permit application require all information required by  40 CFR Parts 123  or 501?

       _  a.  Activities conducted by the applicant which require it to obtain a permit
       _  b.  Name, mailing address,  and location of the treatment works treating domestic sewage
              for which the application is submitted
       _  c.  Operator's name,  address, telephone number, ownership status;, and status as Federal
              State,  private, public, or other entity
      	 d-  Whether the facility is located on Indian lands
      —  e.  List of all permits or construction approvals applied for or received
      _  f.   Topographic map  extending one mile beyond the  property boundaries of the treatment
              works, depicting the location of the sludge management faciliti.es, water bodies within
              1/4 mile outside of the property boundary, and wells used for drinking water
      _  g.  Any sludge monitoring data the applicant may have, including available groundwater
              monitoring data with the description of the well locations and approximate depth to
             groundwater
      —  h.  Description of the applicable sludge use and disposal practices (including, where
             applicable, the location of any sites where the applicant transfers sludge for treatment
             and/or disposal, as well as the name of the applicator of contractor who applies or
             distributes the sludge, if different from the applicant)
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       i.  Information on each land application site, demonstrating its suitability on a land
          application site selection plan which, at a minimum:
              Describes the geographical area covered by the plan
              Identifies site selection criteria
              Describes how sites will be managed
              Provides the permitting authority advance notice and opportunity to object
              Provides for public notice
   	j.  Annual sludge production volume
   ~ k. Any information required to determine the appropriate standards for permitting under
   ~~    40 CFR Part 503
   	 1.  Any other information deemed necessary

   4.  Are the data required.in permit application(s) appropriate and adequate to develop permit
       limits and requirements?

B. Permit development and contents:

	  1.  Does the program description include a copy of a permit form for each sludge use and
       disposal method to be regulated?  -
	 2.  Does the permit form contain the required contents and standard conditions specified by
~~     40 CFR 123 or 501?
   3.  Does the program description clearly indicate that fact sheets  will be developed for each
       Class I facility permit?
	 4.  Does the program description clearly describe the review process for prepared permits?

C. Permit issuance:

    1.  Does the permit review/approval process  include:

    	 a.  EPA review/approval
    __ b.  Administrative review/approval

    2.  Does the program description clearly establish time frames and identify personnel
       positions and responsibilities?

    	  a.  Permit application            '     .
    	  b. Permit review and issuance of draft permit
    	  c. Final permit issuance
    	  d. Permit appeal

    3.  Does the program description clearly describe the State's public notice/public hearing
        process for permits to be issued?

    4.  Does this process include:

    	  a.  Formal public notice hi newspaper
    	  b.  Is the newspaper circulated hi the geographic area affected
    	  c.  Comment time period
    	  d.  Procedures for commenting

 	 5.  Does the submission describe the State's  procedures to appeal the permit?

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  IV. COMPLIANCE TRACKING

  _ A. Does the submission state that all Class I facilities will be inspected at least annually?

  _ B.  Does the submission state the frequency  that each sludge use and disposal practice will be
         sampled?

  _ C.  Does the submission state the frequency  that all other facilities (non - Class I) will be
         inspected and sampled?

  — D.  Is the frequency adequate to ensure a compliance determination?

     E.  Does the submission describe  the type of sampling and analyses which will be performed by
         the State for each sludge use and disposal method to be regulated:

     	  1.  Monofills
     	  2.  Co-disposal landfills
     	  3.  Land application
     	 4.  Distribution and  marketing
     	 5.  Incineration
     	 6.  Surface disposal
     _ 7.  Other   (Specify:	)

 _  F.  Are the sampling methods described consistent with applicable regulations?

 —  G.  Are the analysis methods described consistent with  applicable regulations?

 __ H.  Does the submission  identify the laboratories to be used or are capable of conducting the
        analyses?                                      •                               6

 _ I.   Does the submission  include copies of sampling and analytical documentation forms and
     ,   chain-of-custody forms?

 _ J.   Does the submission  describe procedures to review  State compliance monitoring data and
        facility self-monitoring data?

__ K. Do the review procedures include referral procedures for violations  identified?

_ L. Does the program description describe the data management system  for tracking permit
       expiration, self-monitoring reports, violations, and enforcement?


V.  ENFORCEMENT

    A. Does the submission provide a plan for taking enforcement actions in response to violations?

    	 1. Delineation of roles  of the technical and legal staff
    — 2. Procedures to compile background information to support the enforcement action
    	 3. Procedures for interaction with other affected programs
    _ 4. Time frames for conducting technical evaluation and determining appropriate response


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   	 5.  Procedures to compile all material to serve as compliance history and support for any
          future actions
   	 6.  Tracking system to follow the progress of the enforcement action
   	 7.  Guidelines, including time frames, for escalating the enforcement action
   	 g.  Procedures to close out the enforcement action when compliance is achieved.

   B.  Does the plan describe which violations will result in the following:

   	 1.  Warning notices                                          :
   	 2.  Administrative orders
   	 3.  Administrative penalties
   	 4.  Compliance schedules
   	 5.  Civil penalties
   	 6.  Criminal penalties
   	 7.  Termination  of permit

	 C. Does the plan specify time frames to respond to violations and the personnel position and
       responsibilities?

	 D. Does the plan specify time frames for permittee opportunity to respond?

	 E. Does die submission describe procedures for public notice of enforcement actions?

	 F. Does the plan provide procedures for reinstating terminated permits?


VI. INVENTORY  •

	 A. Does the submission include an inventory of all municipal and nonmunicipal treatment works
       subject to regulation?

   B. Does this inventory include:

   	  1.  Name
   	 2.  Location
   	 3.  Ownership status (e.g., public, private or Federal)
   	 4.  Sludge use or disposal practices
   	 5.  Annual sludge production volume
   _ 6.  Applicable permit number(s) (NPDES,  UIC, RCRA, Clean Air Act,  State)
   	 7.  Compliance  status

	 C. Does the submission include an inventory of all other sludge disposal sites not included in
~~    Item-VLB. above?  (This list need not include sites which meet distribution and marketing
       requirements.)

    D. Does this inventory  include:

    	  1.  Name
    	  2.  Location
    	  3.  Permit number(s)
    	  4.  Source of sewage sludge

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_ E. If the submission does not include comprehensive inventories, does it include the information
       required under Item VI.B.l and 2 above?

	 F. If the submission provides only this partial inventory, does it include a detailed plan for
       completing the inventory within five years?

	 G. Does the submission describe in detail the procedures to develop and maintain an inventory?
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                          5.  MEMORANDUM OF AGREEMENT

     EPA's approval of a State sludge management program is signified by the MOA negotiated and
executed by the State Directors) and the EPA Regional Administrator.  A State seeking approval of
a sludge management program under either 40 Part 123 or 501 must execute an MOA.  The requisite
elements of the MOA are set forth at 40 CFR 123.24 and 501.14. The MOA establishes the
following:
     •  Transfers the administration of existing EPA permits and pending permit applications to the
        State;
     •  Indicates classes of permits which must be reviewed by EPA;
     •  Details the extent to which EPA will waive its right to review, object to, or comment upon
        State issued permits;
     •  Describes the frequency and  content of reports required to be submitted to EPA;
     •  Outlines the coordination of compliance monitoring and enforcement activities between the
        State and EPA;
     •  Specifies when permits will be jointly processed by EPA and the State; and
     •  Details when the MOA must be modified.
     The MOA, the Annual 106 Work Plan, and the State/EPA agreement should be consistent.
Detailed program priorities and specific arrangements will change and-.are more appropriately
negotiated in the context of the annual State/EPA agreement rather than in the MOA.  However, it is
still appropriate for the MOA to specify the basis for detailed requirements, such as a provision
specifying how  to determine which facilities will be inspected as part of the annual State/EPA
agreement. An example MOA and examples of amendments to existing MOAs appear at the end of
this chapter.

5.1  MEMORANDUM OF AGREEMENT FOR A NPDES PROGRAM
     The MOA between the State and EPA submitted as part of a'NPDES sludge program will
consist of an addendum to the original  NPDES MOA.  This addendum must contain terms and
conditions concerning the State's sludge management program.  Any State wishing to implement a
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 sludge program as part of its NPDES program should review the discussion on MOAs for a Part 501
 program contained in the following section.

 5.2   MEMORANDUM OF AGREEMENT FOR A PART 501 PROGRAM
      The MOA between the State and EPA, negotiated as part of a Part 501 sludge management
 program, addresses the elements cited above.  Each of these elements is described briefly in the
 subsections below.

 5.2.1 Transfer Administration of Permits
      The MOA must provide for the transfer Of program administration from the EPA Region to the
 State. All pending permit applications and supporting data (e.g., sludge quality data), should be
 transferred to the appropriate State agency(ies).  If a State does not have the authority to enforce
 EPA-issued permits, then it should agree to reissue them with identical provisions.  Similarly, copies
 of EPA's permit files must also be transferred to the State.

 5.2.2 Classes of Permits Which  Must Be Reviewed hy EPA
      The MOA between a State and EPA must specify the classes and categories of proposed or
 draft permits which the State will send to EPA for review.   Under no circumstances may Class I
 Sludge management facilities be exempted from review. In addition,  the EPA Region should
 probably  review all general permits and other permits of concern (e.g., permits for agricultural land
 application and/or  incinerators).  Further, the State must agree to forward copies of all final permits
 to EPA,  including applications and fact sheets.

 5.2.3 Waiver of EPA Permit Review
     Except for permits issued to Class I sludge management facilities, EPA may waive its right to
 review, object to, or comment on State-issued permits. The extent of EPA's waiver must be
 specified in the MOA. Additionally, the MOA shall contain a statement that the EPA retains the
 right to terminate the waiver as to future permit actions.

5.2.4 Reporting Requirements
     The  MOA between the State and EPA must specify the frequency and content of reports  and
other  information which the State will submit to EPA.  In addition, the MOA should set out agreed
                                             5-2   •

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upon procedures for EPA review of State records, reports, and files relevant to program

administration and enforcement.  Table 5-1 lists the reports required to be submitted to EPA.
                              TABLE 5-1. REPORTS TO EPA
           SEMIANNUAL SLUDGE VIOLATION REPORT

           -   Noncomplying Class I facilities
           -   Type and date(s) of noncompliance events
           -   Type and date(s) of action(s) taken
           -   Status of action(s) taken and date(s) of resolution

           ANNUAL REPORT

           -   Semiannual sludge violation report information
           -   Updated inventory
           -   Non-class I facility noncompliance information
           -   Number and type of Class I and Non-class I violations for FY
           -   Class I and Non-class I facilities brought into compliance for FY
           -   Facilities 6 months behind compliance schedules
           -   State compliance monitoring results
5.2.5  Compliance Monitoring and Enforcement

     The MOA must specify provisions for coordination of compliance monitoring activities by the

State and EPA.  Such provisions may include the basis on which EPA will select facilities or
activities for its own  inspections.  The MOA must provide for notification to EPA of scheduled State

inspections so  that EPA may elect to participate in such activities. Furthermore, the MOA should
provide that EPA will notify the State of the inspections which it plans to perform (normally seven

days notice).  EPA would not be required, however, to notify the State of any "surprise inspections"

designed to uncover possible criminal activity.


     The MOA should also specify that periodic enforcement reports will be forwarded to EPA. The

contents of the reports required to be submitted appear in Table 5-1.  Coordination of sampling

activities between the State and EPA should also be set out in the MOA. Finally, it must also
describe the coordination of enforcement activities between the State and EPA.
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 5.2.6  Joint Processing of Permits
     The MOA must contain provisions which specify procedures for joint processing of permits by
 the State and EPA, if applicable.  For example, in the event that EPA remains responsible for
 administrating specific permits (e.g., permits with a history of enforcement problems, or subject to
 ongoing litigation), the MOA should provide for State/EPA coordination on the issuance of an EPA
 sludge rider to the State permit.
5.2.7  Modification of MOA
     The MOA becomes effective after it has been signed by the Regional Administrator and
approved by the Administrator. After its effective date, either the State or E!PA may initiate
procedures to modify it.  EPA will initiate such action when necessary to ensure State compliance
with all applicable Federal requirements.  Modifications must be in writing and signed by the State
Director and Regional Administrator.

5.3  MODEL MEMORANDA OF AGREEMENT
     The model Memoranda of Agreement is provided on the following pagess.
                                            5-4

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                                              MODEL

                            STATE SLUDGE MANAGEMENT PROGRAM
                                     UNDER 40 CFR PART 501

                                 MEMORANDUM OF AGREEMENT
                                          BETWEEN THE
                                          STATE AGENCY
                                              AND THE
                    UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                             REGION
                                          Section I. General

      This Memorandum of Agreement (hereafter "Agreement" or "MOA") establishes policies, responsibilities
and procedures pursuant to 40 CFR Part 501 and defines the manner in which the (State)  Sludge Management
Program will be administered.                  .

      The (State Director) and the Regional Administrator hereby agree to maintain a high level of cooperation
and coordination in a partnership to assure  successful and effective administration of the  Sludge Management
Program.  If requested by either party, meetings between the  State and EPA will be scheduled at reasonable
intervals to review specific operating procedures, resolve problems,  or discuss  the administration of the State's
permit program.                                                                        -•

      In this partnership, EPA will provide to the (State Agency), on a continuing basis, technical and other
assistance on permit matters as requested.  The (State Agency) has  primary responsibility for implementing the
Sludge Management Program in accordance with Section 405 of the Federal Clean Water Act (CWA), 33 U.S.C.
ง1251 eL. seq. (hereafter CWA), applicable State legal authority, the requirements  of 40 CFR Part 501, and any
other applicable Federal regulations.

      The strategies and priorities for issuance, compliance monitoring, and enforcement of permits, as established
in this MOA, may be set forth in more detail in the annual State 106 program plan and the State/EPA Enforcement
Agreement  signed by the  (State Agency) and the Regional Administrator of EPA Region	.  This MOA, the
State 106 program plan, the State/EPA Enforcement Agreement, and any other State/EPA agreement(s) should be
consistent as required by 40 CFR ง501.14.

      The  State  and EPA will negotiate priorities for implementation of a Sludge Management Program and
inspection of POTWs and other sludge users and disposers.  The program must contain a list of permits to be
issued and  facilities to be inspected.   The State's noncompliance with any term  contained herein is grounds for
withdrawal of EPA approval  of the Sludge Management Program.

A.  (State Agency1) Responsibilities

      In accordance with the priorities and procedures established in this Agreement, the (State Agency) will:

      1.   Develop and maintain the legal authority (including State regulations)  and the resources required to
carry  out all aspects  of the State Sludge Management Program, including development of procedures  to ensure
adoption of up-to-date EPA regulations.  The State agrees to incorporate the requirements of 40 CFR Part 503
within	days of their promulgation.

      2.   Process, issue, reissue, or modify all sludge permits in a timely manner.

      3.   Comprehensively evaluate and assess compliance with schedules, limitations,  and other conditions in
permits.
                                                 5-5

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       4.   Maintain a vigorous enforcement program by taking timely and appropriate actions in accordance with
 the CWA and State statutes and regulations.

       5.   Maintain an adequate public file, accessible to EPA, at the appropriate regional or central office, for
 each permittee.  At a minimum, such files must include copies of:

            a.    Permit application;

            b.    Issued  permit;

            c.    Public  notice and fact sheet;

            d.    Self monitoring data, including any groundwater data;

            e.    All inspection reports;

            f.    All enforcement actions; and

            g.    Other pertinent information and correspondence.

       6.    Cooperate with EPA in the administration of Sludge Management Program in accordance with EPA
program policies and guidance.

       7.    Submit to the Regional Administrator the information described in section V of this Agreement and in
applicable portions of 40 CFR Part 501. Additionally, upon request by the Regional  Administrator,  the (State
Agency) shall submit specific  information and allow continuing access to all documents necessary for evaluating
(State Agency") administration  of the Sludge Management Program.

       8.    Provide assurance  that it has procedures to enforce the conflict of interest provisions contained in 40
CFR Part 501 and that these procedures are being  followed.

       9.    Develop and  issue  sludge use and disposal general permits.  After identifying those users or disposers
appropriately regulated by a general permit, the State will collect sufficient sludge data to draft a general permit.
Each draft will be accompanied by a fact sheet and will be forwarded to:

       Water Management Division Director
       U.S. EPA, Region	
       (Address)

       The Regional Water Management Division  Director will have 	days to review the draft permit and
respond to the State.  EPA will provide to the State in writing any objections, the reasons for the objections, and
the actions necessary to eliminate the objections. The State has a right to a public heaiing  on the objection pursuant
to40CFR501.14(b)(2).

B.     EPA Responsibilities

       1.   EPA will provide technical support and assistance to the (State Agency) in the following areas:

           a.   Interpretations of regulations at 40 CFR Part  123 and 501, relating  to Sludge Management
                Programs

           b.   General technical assistance in processing permit applications.

      2.   EPA will ensure that the (State Agency) is kept fully informed and up-to-date concerning:

           a.    EPA contractor reports; EPA development documents; and regulations relating to sludge use and
                disposal practices


                                                  5-6

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           b.    Settlement agreements between EPA and litigants which concern the interpretation or modification
                of regulations related to sludge use and disposal practices

           c.    EPA regulations, technical guidance, policies, and procedures which pertain to implementation
                of the Sludge Management Program.

      3.   EPA will provide the (State Agency) with the opportunity for meaningful involvement in program
development activities and program initiatives.  EPA will keep the (State Agency) informed of development of
Sludge Management Program policy statements, strategies, and related guidance, and provide for input by the (State
Agency) when appropriate.

      4.   EPA will oversee the  administration of the State Sludge Management Program on a continuous basis
for consistency with the CWA, this Agreement,  the annual program plan  (if any), and all applicable Federal
regulations and policies.  As a part of its assessment, EPA will review permits, reports, and enforcement actions
submitted by the (State Agency).  EPA may also consider comments from permittees, the public, and Federal and
local agencies concerning the (State Agency's) administration of its Sludge Management Program.   Any such
comments considered by EPA will be brought to the attention of the  (State Agency) by written correspondence.
(If the commenting party has not previously communicated this comment  to the (State Agency).  Any information
obtained or used by  the (State Agency) under the Sludge Management Program shall be available to EPA upon
request, without restriction.  If the information has been  submitted to the (State  Agency) under  a claim of
confidentiality, the (State Agency) shall inform EPA of that claim.  Claims of confidentiality will be treated in
accordance with 40 CFR Part 2, Subpart B; and 40 CFR 501.15(a)(l).

      5.   Upon approval of the MOA, EPA will promptly deliver to  the State Program Director all pending
permit applications on which no final action has been taken. Other information pertinent to program operation such '•
as support files, monitoring reports, and any previously issued permits should be transferred to the State Program
Director along with permit applications.  EPA shall deliver the above information within	days of approval of
this MOA. This information shall be addressed to:

      State Program Director
      (address)

      6.   Sludge permits currently in effect  shall remain in effect after  approval of a State Sludge Management
Program.   EPA shall transfer duties of permit administration to the State Director within	days of approval
of this MOA.   All information  in EPA's possession which is pertinent to program operation should accompany
those permits to the State Director at the address listed above.

      7.   If the State lacks the authority to administer Federally issued permits, the State will issue a permit with
provisions identical to the EPA-issued permit  currently in effect, which will be simultaneously dissolved.

      8.   If  the State does not have the legal authority to implement provisions in the permit originally issued
by EPA, EPA may nevertheless dissolve that permit and allow the State to issue one containing provisions has
authority to administer.  Alternatively, EPA may object to the State's administration of a  permit it does not have
full authority to administer,  and may retain control over the implementation of that permit.

      9.   A  permit applicant or permittee  shall be  given	 days notice of any prospective  transfer of
administrative program duties from EPA to the State Program Director.


                                 Section m.  Permit Review and Issuance

      The (State Agency) is responsible for expeditiously drafting, providing public notice for, issuing, modifying,
reissuing, and terminating permits in accordance with 40 CFR Part 501 and any other applicable regulations.
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  A-    Receipt of New Permit Applications by the State Agency1*

        Within	working days of the receipt of a complete permit application, the (State Agency^ will enter all
  required information into EPA's National Permit Compliance System (PCS) (when iit becomes available to accent
  the data).                                                                                           ^
  B.    Permit Reissuance
        All expiring sludge permits shall be reissued on or before the date of expiration. If such timely reissuance
  is not possAle, the (State Agency) will notify the Regional Administrator of the reasons for the delay.  In no event
  will permits administratively continued beyond an expiration date be modified or revised.

  c-    EPA Review of Draft Permits and Permit Modifications

        1.   The (State Agency) shall consult with the Regional Administrator before issuing public notice of a draft
  permit to ensure that the permit will comply with Federal guidelines and requirement.  The (State Agency^ shall
  transmit appropriate portions of working documents  to the Regional Administrator,  in  connection with the
 .consultation.

       2.   Unless otherwise waived, EPA will review all draft permits.  EPA will always  review  all  Class I
 permits.  At the time of issuance of the public notice, the (State Agency-!  shall send thsi EPA one copy of the public
 notice, the draft permit, and the fact sheet (when prepared) for each facility. In the case of a Class I facility the
 permit application  must also be submitted for review.                                                  '

       EPA shall have up to 90 days to comment upon,  object to, or make recommendations with respect to the
 draft permit.  The  time for EPA review shall  be extended up to 90 days upon requesl: of EPA. EPA will send to
 the (State Agency)  written agreement, comments,  or objections to each draft permit, including a  statement of the
 reasons for the comments  or objections and the sections of the  CWA,  regulations, or guidelines which support
 them.  A copy of all comments will also be sent to the permit applicant.  In  the event EPA  files  a 'general
 objection' to a draft permit, it shall have 90 days from receipt of the draft permit to supply the specific grounds
 for objection, and the terms and conditions which should be included in the permit. If (he initial permit information
 supplied  by the (State  Agency)  is inadequate to  determine whether the draft permit meets the guidelines and
, requirements of the CWA, EPA may file an  "interim objection* under 40 CFR 123.44(d) and request the (State
 ACfncv) to transmit the complete record (or portion thereof) of the (State Agency^ permit proceedings. The full
 period for EPA review shall recommence upon receipt of the requested information.  If the State  issues a general
 permit for sludge use or disposal, the Office  of Water Enforcement and Permits  may conduct the permit review
 on the Region's behalf [40 CFR 501.14(b)(2) and by reference, 40 CFR 123.44(a)(2)].

       3.   In the event the Regional Administrator objects to a permit under paragraph C.2 above, the Regional
 Administrator shall so notify the (State Agencv> in writing as to the reasons for the objection  and the actions
 necessary to eliminate the objection.  EPA's objections must be based on one or more  of the criteria identified in
 40 CFR 123.44(c).  The (State Agency) has the right to a public hearing  on the objection.  If EPA's concerns are
 not satisfied within  (90) days of the notice of objection (or within 30 days of the Regional Administrator's decision
 following a public hearing on the objection), exclusive authority to issue the permit vests in EPA.  No permit will
 be issued over the written objection of EPA.

 D-    Waiver of Permit Review bv EPA

       1.   At this time, EPA waives the right to comment on, or object to, the sufficiency of permit applications,
draft permits, proposed final permits, and final (issued)  permits, with the exception of the categories described
below:

           a.    Class I Sludge Management facilities as defined in 40 CFR 501,2.

           b.    Sludge use and disposal practices which may affect another state.
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      2.   With respect to modifications or revocations and reissuances of permits, EPA waives the right to review
any permit for which either the right to review the original permit was waived (unless the modification would put
the permit into one of the categories in paragraph D.I above) or the modification qualifies as minor as defined in
40 CFR 122.63  [40 CFR 501.15(e)(3)].

      3.   EPA reserves the right to terminate the waivers in paragraphs D. 1 and D.2 above, in whole or in part,
at any time.  Any such termination shall be made in writing to the  (State Agency1).

      4.   The  foregoing waiver shall not be construed to authorize the issuance of permits which do not comply
with applicable provisions of Federal laws, regulations, or guidelines, nor to relinquish the right of EPA to petition
the (State Agency) for review of any action or inaction because of violation of Federal  laws, regulations, or
guidelines.

E.    Public Participation

      1.   Permit applications, draft permits, public notices, and fact sheets or statement of basis (when prepared)
will be made available to any party upon request and payment of applicable State duplicating fees.

      2.   The (State Agency') will prepare and distribute copies of all public notices and fact sheets in accordance
with 40 CFR 501.15(d)(4) and (5) unless otherwise waived by the specific organization.

      3.   All Class  I sludge permits shall  be public noticed in a  daily or weekly newspaper within the area
affected by the activity, in accordance with 40 CFR 501.15(d)(5)(B).

F.    Issuance of Permits or Notice of Intent to Deny

      1.   If the final determination is to issue  the permit,  the  final permit  will be forwarded  to  the permit
applicant,  along  with a transmittal letter notifying the applicant that the permit is being issued.  Copies of issued
permits  will be forwarded to EPA within	days.

      2.   If the final determination is to deny the permit, notice of intent to deny shall be given to EPA and to
the applicant in accordance with Sludge Management Program within	days.

      3.   If a facility must be permitted by  both the State and EPA under different programs, the State, and EPA
may  agree to consolidate processing of permits.  The State and EPA may coordinate the expiration dates of new
and existing permits so that processing of renewal applications may be consolidated.  The following procedures
shall be used for joint State/EPA permit processing:      -	
G.    Termination. Modification. Revocation and Reissuance of Permits

      Except as waived in paragraph D.2 above, the (State Agency) shall notify EPA whenever  it intends to
terminate an issued sludge use or disposal permit.  In addition, the (State Agency) shall transmit to EPA a copy
of any permit which it proposes to modify or revoke and reissue with the proposed changes clearly identified. The
procedure set forth in paragraphs C.2 and 3 above shall be followed with respect  to modifications by the (State
Agency) of any issued permit.   For purposes of this agreement, each permit proposed to be modified shall be
deemed a newly proposed draft permit, except for minor modifications as described in 40 CFR 122.63 [40 CFR
501.16(e)(B)].                                 _        '            '

H.    Administrative or Court Action

      If the terms of any permit, including any permit for which review has been waived pursuant  to paragraph
D above,  are affected  in any manner by administrative or court action, the (State Agency) shall immediately
transmit a copy of the permit, with changes identified, to the Regional Administrator and shall allow	days for
EPA to make written objections to the changed permit.
                                                  5-9

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 I.     Class I Sludge Management Facilities List
       There shall be included, as a part of either the program description or the annual State 106 program plan,
 a Class I Sludge Management facilities list. This list shall include all POTWs identified under 40 CFR 403.8(a)
 as  requiring a pretreatment  program  and any  other treatment works  which the Regional Administrator, in
 conjunction with the State Program Director, classifies as a Class I Sludge Management Facility due to the potential
 of its sludge use or disposal practices to adversely affect public health or the environment.

 Jซ     Evidentiary Hearings

       1.   EPA will retain responsibility over permit appeals or requests for modifi<:ation which are pending at
 the time of program approval. In the event that such permit appeals or requests for modification remain unresolved
 at the time the EPA-issued permit expires, the (State Agency) will assume jurisdiction over the appeal or request
 unless it agrees that a particular matter should be resolved by EPA.

       2.   The (State Agency) will provide EPA with a copy of all precedent setting settlements and administrative
 or judicial decisions which affect the (State Agency's) ability to implement the Sludge Management Program in
 accordance with  Federal requirements.


                                         Section IV. Enforcement

       The (State Agency) agrees to maintain a vigorous enforcement program (including a compliance assessment
 of sludge users and  disposers) and to take  timely and appropriate enforcement actions where warranted.  Sludge
 use  and disposal  practices endangering public health  shall receive immediate and paramount attention.

 A.     Compliance Monitoring

       The (State Agency) shall operate a timely and effective  compliance monitoring program, including an
 automatic data processing (ADP) and/or manual tracking system,  to determine compliiince with permit conditions
 and  pretreatment  requirements (when applicable). For purposes of this MOA, the term "compliance monitoring"
 includes all activities taken by the (State Agency1) to assure full compliance with the Sludge Management Program
 requirements. The (State Agency's') monitoring program shall consist of two main activities:

       !•   Compliance Review - The (State Agency) shall conduct timely and substantive reviews and shall keep
 complete  records of all written  materials relating to the compliance status of sludge permittees, including:
 compliance schedule reports, discharge monitoring reports (if applicable), compliance inspection reports, and any
 other reports that permittees may be required to submit under the terms and conditions of a  sludge use or disposal
 permit, approved program, or court order.

      The (State  Agency") shall operate a system to determine if:

           •  Self-monitoring reports required by permit or sludge management regulations are submitted;
           •  Submitted reports are complete and accurate; and

           ••  Permit conditions and any other applicable requirements are met.


      The (State  Agency) and EPA shall have periodic enforcement conferences to decide priorities for initiating
enforcement actions and to coordinate enforcement activities.

      The (State  Agency") shall initiate appropriate enforcement  actions whenever required performance  is not
Achieved or when reports are not received.  In the case of violation by a Class I facility, the (State Agency) shall
initiate an appropriate enforcement action within	days of the date such report was or should have been received
by the State.  Priorities for reviewing these reports  and  for initiating enforcement actions will be  specified in
procedures set out in the program description.
                                                  5-10

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      2.   Compliance Inspection - The  (State Agency') shall conduct field activities, including sampling and
nonsampling inspections, to determine the status of compliance with permit requirements.  Inspection procedures
will be in accordance with State procedures for compliance monitoring and evaluations pursuant to 40 CFR 501.16
(and by reference, 40 CFR 123.26).  For purposes of this  MOA, the term compliance inspections includes (but
is not limited  to): evaluation inspections,  sample inspections,  toxicity testing inspections, sludge sampling, and
groundwater sampling.

      The (State  Agency) and the  Regional Administrator will  develop lists of permittees  subject to State
compliance inspections, pursuant to a neutral inspection scheme.  The (State Agency) shall conduct compliance
inspections of all Class I permittees at least annually. The list may be modified with the concurrence of both
parties.  The (State Agency)  shall also furnish an estimate  of  the number of other compliance inspections to  be
performed during the year.  The (State Agency) will give EPA at least _ days notice and the opportunity to
participate in its inspection activities.

      EPA  or the (State Agency) may determine that additional compliance inspections are necessary to assess
permit compliance.  If EPA makes a determination that additional compliance inspections are necessary, it shall
notify  the (State  Agency) and  may request it to conduct these inspections.  EPA retains the right  to perform
compliance inspections of any  permittee at any  time, but will normally provide seven days notice to the  (State
Agency) to give it an opportunity to participate.  EPA will otherwise keep the (State Agency) informed of its plans
and results.

      The (State Agency) shall  also be responsible for entering all inspection data into the PCS (if the State Agency
has the capability to do so and the system is available  to accept the data) and preparing a list of all noncomplying
Class I permittees in accordance with the  regulations at 40  CFR 501.21.

      Reports on compliance inspections shall  be  available for review by the (State  Agency) or the Regional
Administrator, as appropriate, within	days of the date of inspection.  The (State Agency) shall review each
report  to determine what, if any, enforcement  action shall be initiated.  Where the results of the inspection(s)
indicate that the permittee is in violation,  the (State Agency) shall initiate enforcement action within	days of
the date of the inspection(s) or make a decision in writing not to take any action. Priorities for the review of these
inspection reports and for initiating  enforcement action will be specified in procedures set out in the program
description.

      3.   Information Requests - Whenever either party requests information concerning a specific permittee and
the requested information is available from the  files, that information will be provided within	days.

B.    Action Against Violators

      The (State  Agency) is responsible for taking timely and  appropriate enforcement  actions against persons in
violation  of any  sludge  use or disposal  practice  requirements,  compliance schedules, limitations,  reporting
requirements,  and other permit conditions, including violations detected by State or Federal surveys.  The State
will notify EPA of all impending enforcement actions.   EPA reserves  the right to take timely and  appropriate
enforcement action in the first  instance when warranted  (e.g.,  in interstate disputes).

      The (State Agency) shall maintain procedures  for receiving and ensuring proper consideration of information
submitted by the  public about violations.  If EPA determines that the (State Agency) has not initiated timely and
appropriate  enforcement action against a violator, EPA may proceed with any or all of the enforcement options
available under section 309  of the  CWA after  notice to  and consultation with the (State Agency).   Prior to
proceeding with an enforcement action, EPA shall give the (State Agency)	days to initiate such enforcement
action.  This notification may be made either at the periodic enforcement meetings, by telephone, or through written
communication. Such notifications shall not be required when EPA is exercising its emergency power under section
504 of the CWA. Additionally,  EPA may join  in any enforcement action taken by  the State.

      The (State  Agency) shall immediately notify the Regional Administrator of any situation posing a substantial
endangerment to  health, welfare, or the environment resulting from any actual or threatened, direct  or indirect,
sewage sludge use or disposal practice.
                                                   5-11

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                             Section V.  Reporting and Transmittal of Information

 A.   The (State Agency1! will submit the following to EPA:
 Item
 1.
 2.
 3.
 4.
 5.
 6.
7.
8.
9,
 A copy of all permit applications
 (except those for which EPA has
 waived review).

 Copies of all draft sludge use or
 disposal permits and permit
 modifications,  including fact
 sheets (except those for which EPA
 has waived review).

 A copy of all public notices,
 (except those for which EPA has
 waived review).

 A copy of all proposed and modified
 sludge use or disposal permits.

 A copy of all sludge permits issued to a
 Class I sludge management facility.

 A copy of all other permits issued
 to a Class  I sludge management
 facility.

 A copy of all permit applications
 and public notices for which EPA
has waived review.

A letter of transmittal which lists
permittee's name, facility,
location, date signed, effective
date, and expiration date.

A copy of settlements and decisions
in permit appeals.
10.  A list of Class I facilities
     scheduled for compliance
     inspections, and a list of ill
     other facilities scheduled for
     compliance inspections.

11.  Proposed revisions to the
     scheduled compliance inspections.

12.  A list of compliance inspections
     performed during the previous
     quarter.
 Frequency of Submission

 Within	days of receipt



 When placed on public notice
 As issued



 As issued


 As issued


 As needed



 Upon request
                                                     Monthly - by the 5th
                                                     working day of each
                                                     month
As issued


Annually
                                               As needed
                                               Quarterly
                                                  5-12

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Item
Frequency of Submission
13.  Copies of all compliance inspection
     reports, report forms, data, and
     transmittal letters to Class I
     permittees.

14.  Copies of all compliance inspection
     reports and data transmittal letters
     to all other permittees.

15.  For Class I permittees, a semiannual
     noncompliance report as specified
     in 40 CFR 501.21(a).

16.  For other permittees,  an annual
     report as specified in  40 CFR
     501.21(b) which indicates
     the status of the Sludge
     Management  Program, updates
     the inventory of sludge generators
     and disposal facilities, and reports
     on incidents of noncompliance.

17.  Copies of all enforcement actions
     against permit violators (including
     letters, notices of violation,
     administrative orders, initial
     determinations, and referrals to
     the Attorney General).

18.  Copies of correspondence pertaining
     to administration of the Sludge
     Management  Program.

19.  Copies of all notifications of
     noncompliance required to be
     reported pursuant to 40 CFR
     501.21(a) and 501.14(b)(12)(iv).

20.  Any  other pertinent information
     requested by  EPA.
Within 30 days of
inspection
As requested
Semiannually, as
specified in 40 CFR
501.21(a)

Within	days of the
end of the  calendar year
as specified in 40 CFR
501.21(b)
As issued
As issued or received
Within	days of incident
As requested
B.   EPA shall transmit the following information to the State:

1.   A list of compliance inspections                  Annually
     EPA intends to conduct jointly with
     the State.
2.   Proposed revisions to the schedule
     of compliance inspections.

3.   Copies of all EPA compliance
     inspection reports and data.
As needed
Within 30 days of
inspection
                                                  5-13

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 Item                                                 Frequency of Submission

 4.   Copies of all EPA enforcement                   As performed
      actions against permit violators
      (including notice of violation,
      and administrative orders).

 5.   A review of the State administration              As performed
      of the Sludge Management Program
      based on State reports, meetings with
      State officials, and file audits.

 C.  The State shall transmit a copy of every issued sludge use or disposal permit to any affected State no later than
 	days after its issuance.


                                       Section VI.  Program Review

 A.  To fulfill its responsibility for assuring the Sludge Management Program requirements are met, EPA shall:

     1.  Review the information  submitted by the (State Agency'):

     2.  Meet with State officials from time to time to discuss  and observe the data handling, permit processing,
 and enforcement procedures, including both manual and ADP  processes;

     3.  Examine the files and documents at the (State Agency) regarding selected facilities to determine:  a) whether
 permits are processed  and issued consistently with Federal requirements; b) whether the (State Agency) is able to
 discover permit violations when they occur; c) whether (State Agency) reviews are timely; and d) whether (State
 Agency) selection of enforcement action is appropriate and effective.  EPA shall notify the (State Agency) in
 advance of any examination under this paragraph so  that appropriate State officials may be available to discuss
 individual circumstances and problems. EPA need not reveal to the (State  Agencvi in advance the files and
 documents to be examined.   A copy of the examination report shall be transmitted to the State when available;

    4.   Review, from  time to time, the legal authority upon which the State's program is based, including State
 statutes and regulations;

    5.   When appropriate, hold public hearings on the (State Agency's) Sludge Management Program;  and

    6.   Review the (State Agency) public participation policies, practices, and procedures.

 B.  Prior to taking any action to propose or effect any substantial amendment, recisiou, or repeal of any statute,
 regulations, directive,  or form which has been approved by EPA, and prior to the adoption of any new statute,
 regulation, directive or form, the (State Agency) shall notify the Regional Administrator and shall transmit the text
 of any  such proposed change or new form  to the Regional Administrator.  These changes may necessitate a
 program revision which must be approved by EPA pursuant to 40 CFR 501.32 (and by reference, 40 CFR 123.62).

 C.  If an amendment, recision, or repeal of any statute, regulations, directive, or form described in paragraph (B)
 above shall  occur  for any reason, including action by the (State) legislature or a court, the (State Agency) shall
 within	days of such event, notify the Regional Administrator and transmit a copy of the text to the Regional
 Administrator.

 D.  Prior to  the approval of any test method other than those specified for sludge use and disposal in 40 CFR Part
 136, or when adopted, Part  503, the (State Agency) shall obtain the approval of the Regional Administrator [40
 CFR501.14(10)(iv)].

E.  The (State Agency) shall seek and adopt such regulations, provide Attorney Genera) opinions, and take further
actions necessary to preserve and maintain any compliance with Sludge Management Program requirements.


                                                  5-14

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                                Section VIII.  Independent EPA Powers

   Nothing in this MO A shall be construed to limit the authority of EPA to take action pursuant to sections 308,
309, 405, 504,  or other sections of the CWA,  or  to limit its oversight  responsibility with respect to Sludge
Management Program administration.  This MOA is for the administrative convenience of EPA, and does not
confer any rights on violators.


                                   Section IX. Computations of Time

A. In computing any period of time prescribed by this MOA, the day on which the designated period of time
begins shall not be included.  The last day of the period shall be included unless it is a Saturday, Sunday,  or legal
holiday, in which case the period extends until the end of the next day which is not a Saturday, Sunday, or a legal
holiday.  When the period of time is less than seven (7) days, intermediate Saturdays, Sundays, or legal holidays
shall be excluded  in the computation.

B. For the purpose of EPA review of permit applications, draft or proposed permits, or permit modifications, the
period for review shall not commence until received by EPA.


                                        Section X.  Modification

    This MOA shall take effect immediately upon approval by the Administrator. Either the (State Agency') or EPA
may initiate action to modify this MOA at any time. If the Administrator determines that any modification to the
MOA initiated by the (State Agency) does not conform to the requirements of section 402(b) or 405 of the CWA,
the requirements of 40 CFR Part 501, or to any other applicable Federal regulation, the Administrator shall notify
the (State Agency') in writing of any proposed revision, or modifications which must be in this agreement.  Any
proposed amendments or revisions must be in writing and signed by the (State Director') and the Regional
Administrator, with the prior concurrence of the Director, EPA Office of Water Enforcement and Permits and EPA
Associate General Counsel for Water.  In no event may any State/EPA agreement override this Memorandum of
Agreement.


                                 Section XI.  Incorporation by  Reference

    Wherever a State is required to adopt Federal standards or requirements,  it may do so by incorporation by
 reference. Unless permissible under State law, States will not prospectively incorporate  unpromulgated regulations
 by reference.


    In witness whereof, the parties execute this agreement.


 FOR STATE AGENCY:
 Director                                               (Date)
 State Agency

 FOR U.S. ENVIRONMENTAL PROTECTION AGENCY:
 Regional Administrator,                                (Date)
 Region	
                                                  5-15

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                                        AMENDMENT
                                           TO THE
                      (STATE) SEWAGE SLUDGE MANAGEMENT PROGRAM
                               MEMORANDUM OF AGREEMENT
                                          BETWEEN
                                       (STATE AGENCY)
                                          AND THE
              UNITED STATE ENVIRONMENTAL PROTECTION AGENCY, iREGION
                                       Section 1. General

      The Memorandum of Agreement (MOA) between the (State Agencvt and the Administrator of the United
              ***          Agency ^^ EPA)- approved ฐn
 d                *                             - approve  ฐn __ • * **** ***
 define (State Agency) and EPA responsibilities for the establishment, implementation, and enforcement of the
 (itate) iludge Management Program, approved pursuant to section 405 of the Clean Water Act, as follows.
 contrary
      The (State Agency) has primary responsibility for enforcement against sludge use and disposal methods
      y to Federal and state reulations or  ermit conditions.
The  (State Agencv) shall perform  inspection, surveillance and monitoring  activities  which  will  determine
independent of information supplied by the POTW, compliance or noncompliance by the POTW with sludge use
and disposal requirements incorporated into the POTW permit.
FOR STATE AGENCY:
State Director
State Agency
                        (Date)
FOR UNITED STATES ENVIRONMENTAL PROTECTION AGENCY:
Regional Administrator,
Region _
                                                (Date)
                                           5-16
              i :>•
                                                                                       ........... 'ill; .......... I;.: liillll ...... Ill ..... I. ................ i, Hill"

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                                           ADDENDUM
                                             TO THE
                   NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM
                                 MEMORANDUM OF AGREEMENT
                                            BETWEEN
                                           (State Agency)
                                            AND THE
            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, REGION	
           TO INCORPORATE AGREEMENT CONCERNING SLUDGE USE AND DISPOSAL
The  Memorandum of Agreement  (MOA) between the (State) and the Regional Administrator of -the U.S.
Environmental Protection Agency (EPA), approved on	, is hereby modified to define the State and
EPA's  respective responsibilities for the establishment, implementation, and enforcement of the State's Sludge
Management Program in accordance with regulations promulgated under sections 402 and 405 of the Clean Water
Act,  and as described in the program description.


                                         Section I. General

1.     Nothing in this Agreement should be interpreted to restrict EPA's oversight responsibility for all aspects of
a Sludge Management Program.

2.     This Agreement shall become effective when approved by the Administrator.

3.     Nothing in this chapter shall limit or relieve the parties of responsibilities established by the NPDES MOA
of which this is  an addendum.

4.     The State and  EPA  will negotiate priorities for implementation of a Sludge  Management Program and
inspection  of POTWs and other sludge users and disposers.

5.     The State's noncompliance with any of the terms contained herein is  grounds for withdrawal of EPA
approval of the  State's Sludge Management Program.


                             Section II. Transfer of Permit Administration

1.     Upon approval of this MOA, EPA will promptly deliver to the State Program  Director all pending permit
applications  on  which no final action has been taken.  Other information relevant to these applications and to
program operations in general, including support files, monitoring reports, compliance reports and previously issued
permits, shall accompany these pending permit applications.  This information shall be transferred to the State
Program Director within	days of approval of this MOA at the following address:

      State Sludge Management Program Director
      (address)

2.    Sludge permits  currently in effect  shall remain in effect after approval of a State Sludge Management
Program.  EPA  shall transfer the duties of permit administration to the State Director within	days of approval
of this MOA. All information relevant to  the administration of the  State permit program shall accompany these
permits.

3.    If the State lacks the authority to administer Federally issued permits, the  State will issue a permit with
provisions identical to the EPA-issued  permit currently in effect, which will simultaneously be dissolved.
                                                5-17

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  4.    If the State does not have the legal authority to implement one or more provision(s) in the permit originally
  issued by EPA, EPA may nevertheless dissolve that permit and allow the State to issue one containing those
  provisions which it does have  the authority to administer.  [Alternatively,  EPA may retain control over the
  implementation of that permit.]

  5.    If a sludge user or disposer  is required to  get a permit from both EPA and the State under different
  programs, the State and EPA may  consolidate processing of  permits under written procedures  which ensure
  adequate notice to all  affected permittees.  The State and EPA may coordinate the  expiration dates of new and
  existing permits so that processing of renewal applications may  be consolidated.


                                       Section III.   Review and Waiver

  1.    The Program Director will forward copies of the permit  applications, draft or proposed permits, and fact
  sheets of all  Class I facilities for review comment and objection. Such review may not be waived  by EPA.

  2.    For all other permit applications, the State Program  Director shall forward copies of permit applications
  draft or proposed permits, and fact sheets unless such review is waived by EPA.

  3.    When  the State issues a general permit for sludge use or disposal, the review required by 40  CFR
  123.44(a)(2)  for NPDES general permits by the Office of Water Enforcement and Permits will not apply General
 permits should be forwarded to:

       Water  Management Division Director,
       U.S. EPA, Region	
       (address)

 4.    EPA specifically waives its right to review, object to, or comment on the State issued permits listed below:
       a.
       b.
       c.
 5.     The Regional Administrator reserves the right to terminate any waiver with rei>pect to further permit
 actions listed in Section m.4 above.  Such termination, which may be in whole or in part, is effective upon written
 notification to the State Director.
                                    Section IV.  Reporting Requirements

 I.     The State Program Director will submit a semiannual sludge violation report containing information on
 incidents of noncompliance occurring within the previous six months by Class I sludge management facilities  The
 semiannual report will include, but not be limited to, the following:

       a.   significant failure to comply with minimum Federal requirements for sludge: use and disposal practices;
       b.   significant failure to comply with permit conditions;
       c.   failure to complete construction of essential elements of a sludge management facility or to meet key
           milestone dates specified in the permit;
       d.   failure to provide compliance monitoring reports or submission of reports so deficient that they impede
           review of compliance status;
       e.   significant noncompliance with other program requirements.

2.     The semiannual report will retain the name and reference number of a noncomplying facility,  the type of
noncompliance, including a  description and date of the occurrence, the date and type of action taken to ensure
compliance, and status of incidents) of noncompliance, with dates of resolution and any mitigating circumstances.
                                                  5-18

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                                          Section V.  Reporting

      The reporting provisions contained in the NPDES MOA shall remain in effect. In addition:

1.    The State will transfer to the Regional Administrator notice of every action taken by the State related to any
permit application, including a general permit, except for those actions for which permit review has been waived.

2.    The State will forward all permit applications to EPA unless review has been waived.

3.    A copy of every permit issued to a Class I sludge management facility will be transmitted by the State to
the Regional Administrator. Copies of other final permits issued to other treatment works treating domestic sewage
shall be transmitted to the Regional Administrator at his/her request.

4.    The State will forward a list of all facilities scheduled for compliance inspections to EPA.


                           Section VI.  Enforcement and Compliance Monitoring

      The enforcement and compliance monitoring provisions contained the NPDES MOA between (State) and the
Regional Administrator shall apply to treatment works treating domestic sewage  and to sludge users and disposers
and to sludge uses and disposal practices.  Additionally, the following provisions have been agreed upon:

1.    The State and EPA shall coordinate enforcement activities, including the following:

      a.   The State will notify EPA of all impending enforcement action.
      b.   EPA may request that a State conduct a compliance inspection, or  conduct one itself.  EPA will
           normally provide  the State with seven (7) days notice of its intent to perform a compliance inspection
           (exclusive of inspections designed to uncover possible criminal conduct).

2.    For purposes of sludge management facilities, compliance inspections may include toxicity testing, sludge
sampling and groundwater sampling.

                                      Section VII.  Program Review

      The program review section of the NPDES MOA shall remain in effect. In addition, the  responsibilities
delineated in this section shall apply to the sludge management program implemented under 40 CFR Part 123.


                                  Section VIII.  Independent EPA Powers

      The Independent EPA Powers section of the NPDES  MOA shall remain  in effect.  In addition,  nothing in
this MOA shall be construed  to limit the authority of EPA to take action pursuant to its powers under the CWA
or to  limit its oversight responsibilities with respect to sludge management program administration.  This MOA
is for the administrative convenience of EPA, and does not confer any rights to violators.
                                                  5-19

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                                Section DC.  Incorporation bv Reference

      Whenever the State is required to adopt Federal standards or requirements, it may do so by reference.
 Unless permissible under State law, the State will not prospectively incorporate regulations by reference.

      In witness whereof, the parties execute this agreement

 FOR STATE AGENCY:
Director                                            (Date)
State Agency



FOR UNITED STATES ENVIRONMENTAL PROTECTION AGENCY:
Regional Administrator,                               (Date)
Region	
                                             5-20
                                                                   a.

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             APPENDIX A




MODEL ATTORNEY GENERAL'S STATEMENT

-------

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Instructions:
        An Attorney General's  statement outlining adequate legal authority to administer  a State sludge
management program is required as part of the State program submission (see 40 CFR 501.13).  The following
is a form which, when completed and certified, may be submitted to fulfill this requirement. Use of this form is
optional.

                                         OFFICE OF THE
                                      ATTORNEY GENERAL
                         STATEMENT ON THE LEGAL AUTHORITY TO
                  IMPLEMENT A SEWAGE SLUDGE MANAGEMENT PROGRAM
                                                Date

I.  Background
      Due to its longstanding concern for environmental protection and its continuing regulation of the use and
disposal of sewage sludge, the  State (Commonwealth) of (	) is preparing an application package to be
submitted to the United States Environmental Protection Agency (hereafter referred to as "EPA") for approval
of a State Sludge Management Program.  Federal approval of this program shifts primary responsibility from EPA
to the Department(s) of (	_) of the State (Commonwealth) of (	) for issuing permits to implement
and enforce standards for  use and disposal of sewage sludge and for taking other appropriate measures to protect
human health and the environment from the adverse effects of sewage sludge in accordance with Section 405 of
the Clean Water Act (CWA).

      EPA regulations allow a State (or Commonwealth) to choose whether to administer its sewage sludge
program as a component of the National Pollutant Discharge Elimination System (NPDES) water pollution control
program or as an  independent activity.  The State has elected to implement its sludge program [as a  component
of/independently of] the NPDES program.1 Federal law also requires that this application include a statement by
the Attorney General for  the State Agency's attorney for those State Agencies which have independent legal
counsel] which discusses the State's legal authority to impose and enforce sewage sludge management requirements
which are at least as stringent as the Federal program administered by EPA, as set forth in 40 Code of Federal
Regulations (CFR) Part 123 (40 CFR Part 501).

      I hereby certify that, in my opinion, the laws of the State (or Commonwealth) provide adequate authority
to carry out all tasks necessary to implement an effective sewage sludge management program as set forth in EPA
       'Note:  If the State intends to submit its program as a compone'nt of its NPDES program, the Attorney
 General should indicate that this Statement supplements the earlier Attorney General's Statement addressing NPDES
 authorities.
                                                 A-l

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  regulations. This opinion is based on the reasoning, assumptions, and limitations set forth in the sections below.
  Copies of all relevant legal authorities (both statutory, regulatory, and case law) are attached to this statement.


  n' The Department's Authority to Regulate Sewage Sludge Management Generally
       State law  provides the Department(s) with authority to regulate the storage,  transportation, and use or
 disposal of sewage sludge by treatment works treating sewage sludge or other end users or disposers.  The sections
 below discuss this authority in detail.

 A-  Authority to Regulate Persons Storing. Transporting. Using, or Disposing of Sewage Sludge
       State law provides the authority to regulate  persons involved in storage, transportation, and use or disposal
 of sewage sludge. This includes the  authority to  require compliance  with standards issued under Section 405(d)
 of the CWA, as  required by 40 CFR 122.1(b)(3) and 40 CFR 122.4 [or 40 CFR 501.1(c)(l)] to gain program
 approval.

      State Statutory and Regulatory Authority and Case  Law:
      Remarks of the Attorney General:
B.  Authority to Regulate Methods of Storage and Transportation of Sewage Sludge
      State law authorizes the regulation of methods of sewage sludge storage and ti-ansportation, as required by
40 CFR 122.1(b)(4) [or 40 CFR 501.1(d)(l)] to gain program approval.

      State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
                                                 A-2
               i.,.I

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C.  Authority to Regulate Sewage Sludpe Use and Disposal Practices
      State law authorizes the regulation of sewage sludge use and disposal, as required by 40 CFR 122. l(b)(4)
[or 40 CFR 501.1(d)(l)(ii)] to gain program approval.

      State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
D. Emergency Response Authority
      State  law authorizes such action as  may be  necessary to abate any situation which presents, or could
potentially present, an imminent danger to public health or the environment, as required by 40 CFR 123.27(a)(l)
and (2) [or 40 CFR 501.1(c)(4) and 40 CFR 501.17(a)(l)] to gain program approval.

      State  Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
 HI.  The Department's Authority to Issue Sludge Management Permits
       State law provides the Department with the authority to issue and enforce permits for the use and disposal
 of sewage sludge.  The sections below discuss this authority in detail.
                                                   A-3

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  A. Authority to Issue Sewage Sludge Management Permits

        State law provides the authority to issue permits for the generation, use, and disposal of sewage sludge, as
  required by 40 CFR 122.l(b)(3) [or 40 CFR 501. l(c)(2)] to gain program approval.

        State Statutory and  Regulatory Authority and Case Law:
        Remarks of the Attorney General:
  B. Authority to Require Permit Application Information

       State law requires each permit applicant to submit an application containing at least that information required
  by 40 CFR 122.21 and 40 CFR 123.25(a)(4) [or 40 CFR 501.15(a)(2)(i-xii)J to gain program approval.

       State Statutory and Regulatory Authority and Case Law:
       Remarks of the Attorney General:
       Authority to Impose Permit Conditions
                                                                                                     as
      State law authorizes imposing conditions in sludge use and disposal permits at least to the same extent
required  by 40 CFR  122.41(a)-(n) and 40 CFR 123.25(a)(12) [or 40 CFR 501.15(b)(l-14)] to gain program
approval.

      State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
D-    Authority to Modify. Transfer. Revoke and Reissue, and Terminate Permits for Cause
      State law allows permits to be modified, transferred, revoked, reissued, and terminated at least to the extent
required by EPA in 40 CFR 122.61, 40 CFR 122.62, 40 CFR 122.63, 40 CFR 122.64, 40 CFR 123.25(a)(21-
25), and 40 CFR 124.5 [or 40 CFR 501.15(c)(l-3)] to gain program approval.
                                                 A-4

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      State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
IV.   Authority to Conduct Compliance Monitoring Activities
      Although the State's Sludge Management Program relies, in large part, on its permit program, the State's
sludge standards and requirements are enforceable, even in the absence of a permit. Consequently, to ensure that
proper sludge use and disposal practices are observed, compliance monitoring and enforcement activities must also
be authorized and carried out.  State law provides the Department with authority for State personnel to enter private
premises,  to inspect and sample sludge quality,  and to require self-monitoring and reporting by permit holders.
The sections below discuss this authority in detail. "

A.    Authority  to Enter and Inspect Treatment Works or Other Use and Disposal Premises
      State law provides the authority to enter and inspect premises used for generation, use, and/or disposal of
sewage sludge, as required by EPA in 40 CFR 123.26(c) [or 40 CFR 501.15(b)(9)(i-iv) and 40 CFR 501.16] to
gain program approval.

      State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
B.  Authority to Sample Sludge Quality
      State law provides the authority to take independent, representative samples of sludge to determine its quality
and to determine compliance with applicable sludge standards, as required by EPA in 40 CFR 123.26(a)-(d) [or
40 CFR 501.15(b)(9)(iv)] to gain program approval.

      State Statutory and Regulatory Authority and  Case Law:
      Remarks of the Attorney General:
                                                   A-5

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 C.  Authority to Require Self-Monitoring and Reporting

       State law provides the authority to require self monitoring and reporting on tise or disposal practices and
 sludge quality, as required by EPA in 40 CFR 122.48(b)(c).and 40 CFR 123.25(a)(19) [or 40 CFR 501.15(10)(i-
 v)] to gain program approval.

       State Statutory and Regulatory Authority and Case Law:
       Remarks of the Attorney General:


 V-  Remarks on the Attorney General's Authority to Enforce the Sewage Sludgy Management Program
       The Department(s) designated is a  duly constituted body of the State's  Executive Branch and has been
 granted enforcement powers.  The sections below discuss this authority in detail.

 A.  Authority to Abate Violations of State Law

       State law provides  the authority to abate violations of State law as required by EPA in 40 CFR 123.27(a)(l)
 [or 40 CFR 501.1.(c)(5)  and 40 CFR 501.17(a)(l)] to gab program approval.

      State Statutory and Regulatory Authority and Case' Law:


     . Remarks of the Attorney General:
B.  Authority to Assess Administrative Penalties
      State law provides the authority to assess administrative penalties in the amount of $	per day per
violation.

      State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
                                                 A-6

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C.  Authority to Seek Iniunctive Relief
      State law provides the authority to seek both temporary and permanent injunctive relief, as required by EPA
in 40 CFR 123.27(a)(l) and (2) [or 40 CFR 501.17(a)(l) and (2)] to gain program approval.

      State Statutory and Regulatory  Authority and Case Law:
      Remarks of the Attorney General:
D.    Authority to Seek Civil Penalties
      State law provides the authority to seek civil penalties in the amount of $5,000 per day for each violation,
as required by EPA in 40 CFR 123.27(a)(3)(i)( [or 40 CFR 501.1(c)(5) and 40 CFR 501.17(a)(3)(i)] to gain
program approval.

      State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:
 E.  Authority to Seek Criminal Penalties
      State law provides the authority to seek criminal penalties in the amount of $10,000 per day  for each
 violation as required by EPA in 40 CFR 123.27(a)(3)(ii - iii) [or 40 CFR 501. l(c)(5) and 40 CFR 501.17(a)(3)(ii)]
 to gain program approval.

      State Statutory and Regulatory Authority and Case Law:
       Remarks of the Attorney General:
                                                   A-7

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 VI.  The Department's Other Miscellaneous Authorities
       State law provides the Department with the authority to provide the public with access to information on
 sludge practices throughout the State and on the compliance status of individual persons.  State law also requires
 that Department personnel be free from conflicts of interest with permit holders or applicants.  The sections below
 discuss this authority in detail.

 A.  Authority for Public Access to Information
       State law provides the authority to grant public access to sludge use and disposal information to the extent
 required by EPA in 40 CFR  123.25(a)(3) and 40 CFR 122.7 [or 40 CFR 501.15(a)(l)] to gain program approval.

       State Statutory and Regulatory Authority and Case Law:
       Remarks of the Attorney General:

 B. Authority Prohibiting Conflict of Interest
       State law prohibits Department personnel from having any conflict of interest with permittees or applicants
 as required by EPA in 40 CFR 123.25(c) [or 40 CFR 501.15(f)] to gain program approval.

       State Statutory and Regulatory Authority and Case Law:
      Remarks of the Attorney General:

VH.    State Delegation to Local Agency (Part 501 State Programs Only)
      State law provides for the delegation of program responsibilities by a State agency to a local agency provided
that the conditions required by EPA in 40 CFR 501.1(1) are met.

Vm.  Certification of Effectiveness of the Law and Regulations
      I, the undersigned, certify that all of the laws and regulations discussed in Sections (  ) of this document have
been duly adopted according to the legislative and rulemaking procedures prescribed under State law, and that these
laws and regulations are now effective and enforceable or will be as of the date of program approval.
                                                  A-8

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IX.  Certification of the Signatory
      I, the undersigned, certify that I hold the position of ( ) in the State and, as such, hold sufficient authority
to act on behalf of the Attorney General' for purposes of executing this statement.
X.  Summary
      It is my considered opinion that the statutes and regulations of the State provide the Department(s) with
adequate authority to administer a State Sewage Sludge Management Program which is at least as stringent as the
program administered  by EPA; that all of the State statutes and regulations cited herein are fully effective and
enforceable (or will be by the time of program approval); that there are no judicial precedents which substantially
restrict the Department's(s') exercise of this  authority; and that this authority is sufficient to receive program
approval from EPA.
 CERTIFIED on this
 of       	.
day of
, 19	, in the City of
_, State
                                                          BY:
                                                               (Name)
                                                               (Title)
                                                    A-9

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      APPENDIX B




ORGANIZATIONAL CHARTS
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