Monday
June 6, 1988
 Part V


 Environmental

 Protection  Agency

 40 CFR Parts 232 and 233
 Clean Water Section 404 Program
 Definition and Permit Exemptions;
 Section 404 State Program Regulations;
 Final Rule

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   20764
                                 6-  1988 /
                                                                                         and  Regulations
   ENVIRONMENTAL PROTECTION
   AGEHCY

   40 CFR Parts 232 and 233
   [FRL-3214-1J

   Clean Water Act Section 404 Program
   Definitions and Permit Exemptions:
   Section 404 State Program
   Regulations

   ^GENCY.• Environmental Protection
  Agency (EPA).
  ACTION; Final rule.

   SUMMARY: We are hereby issuing final
  rules containing 404 program definitions
  and 404{f)(l) exemptions and the
  procedures and criteria used in
  approving, reviewing and withdrawing
  approval of State 404 programs. Part 232
  contains definitions and exemptions
  related to both the Federal and State-run
  404 program and Part 233 deals with
  State programs only. The revisions in
  these rules will provide the States more
  flexibility in program design and
  administration while still meeting the
  requirements and objectives of the
  Clean Water Act (the Act).
  EFFECTIVE DATES: This final rule is
  effective on July 6.1988. In accordance
  with 40 CFR 23.2, this regulation shall be
  considered issued for purposes of
  judicial review at 1:00 p.m., Eastern time
  on June 20,1988.
  FOR FURTHER INFORMATION CONTACT:
  Lori Williams,  Office of Wetlands
 Protection (A-104F), U.S. Environmental
 Protection Agency, Washington, DC
 20460, (202) 382-5043.
 SUPPLEMENTARY INFORMATION: This
 final rule contains the 404 program
 definitions and 404(f)(i) permit
 exemptions in addition to the
 procedures and criteria used in
 approving, reviewing  and withdrawing
 approval of 404 State  programs. Part 232
 basically recodif.es the existing 404
 program definitions and 404(fj(l) permit
 exemptions in a new,  separate part of
 eliminate any confusion about their
 applicability. Part 232 applies to both
 the Federal and State  programs. Part 233
 revises the procedures and criteria used
 in approving, reviewing and
 withdrawing approval of 404 State
 programs. These final rules provide the
 States more flexibility in program  design
 and  administration while still meeting
 the requirements and objectives of the
 Act.
  This rule was proposed on October 2
 1984 at 49 FR 39012. The notice invited
 public comments for a 60-day period
 ending December 3,1984. On December
 10,1984 (49 FR 48064),  the comment
period was extended to January 2.1985.
    Thirty-eight comments were received	
    15 State agencies, 10 environmental
    groups, 6 industry groups, 4 Federal
    agencies, and 3 others.
     The comments covered the full range
    of views, ranging from those which
    indicated that more streamlining is
    required to those which indicated that
    the proposed regulations increased
    flexibility at the expense of
    environmental protection.
     In addition to the more significant
   revisions described in the preamble, we
   have made minor editorial and content
•   changes from the proposal. We have
   also renumbered the sections in Part 233
   to close the large gaps in numbering in
   the proposal.
    It is the agency's intent that 40 CFR
)  Part 124 no longer applies to 404 State
   programs. We will be publishing   .
   technical, conforming regulations in the
   near future.
    The following summarizes the'major
   comments and EPA's response to them.

   Response to Comments and Explanation
   of Changes                ~

   Part 232-—404 Program Definitions,
   Exempt Activities Not Requiring 404
   Permits

    Section 232.2(b): In response to
  comment, we have revised the proposed
  definition of "application" for clarity.
    Section 232.2 (e) and (f): The •
  definition of "discharge of. dredged
  material" and "discharge of fill
  material" were modified for consistency
  with the Corps regulations (33 CFR 323.2
  (d)and(f)).
    Section 232.2(j): We received
  comment that our definition of "general
  permit" is different from the Corps'
  definition (33 CFR 323.2(n)). The
  proposed definition was taken from the
  Act (404(e)(l)) and, therefore, has been
  retained in the final regulation.
    Section 232.2(1): Under Section 404 of
  the Act, the Corps (and States approved
  by EPA) issue permits for discharges of
  dredged and fill material into waters of
  the U.S. Under Section 402, EPA (and
  States approved by EPA) issue permits
  for discharges of all other pollutants into
  waters of the U.S. In January 1986 the
  Corps and EPA entered into a
 Memorandum of Agreement (MO A) to
 resolve a longstanding difference over
 the appropriate Clean Water Act
 program to regulate certain discharges
 of solid wastes into waters of the U.S.
 The Corps issued its definition of "fill
 material" in 1977, which provided that
 only those solid wastes  discharged with
 the primary purpose of replacing an
 aquatic area or of changing the bottom
 elevation of a waterbody are regulated
 under the Corps' 404 program. These
   discharges include discharges of
   pollutants intended to fill a regulated
   wetland to create fast land for
   development. The Corps' definition
   excludes pollutants discharged with the
   primary purpose to dispose of wastes
   which, under the Corps' definition,
   would be regulated under Section 402.
   Under EPA's definition of "fill material,"
   all such solid waste discharges would
   be regulated under Section 404,
   regardless of the primary purpose of the
 •  discharger., The difference complicated
   the regulatory program for some solid
  wastes discharged into waters of the
  U.S.
    The MOA provides an interim
  arrangement between the agencies for
  controlling these discharges. In the
  longer term EPA and Army agree that
  con'sideration given to the control of
  discharges of solid waste both in wateis
  of the U.S. and upland should take into
  account the results of studies being
  implemented under the 1984 Hazardous
  and Solid Waste Amendments to the
  Resource Conservation and Recovery
  Act (RCRA). The main focus of the
  interim arrangement is to ensure arit
" effective enforcement program under
  Section 309 of the Act of controlling
  discharges of solid and semi-solid
  wastes into waters of the U.S. for the
 purpose of dispoal of waste. When
 warranted, EPA will normally initiate
 section 309 action to control such
 unauthorized discharges. If it becomes
 necessary to determine whether Section
 402 or 404 applies to an ongoing or
 proposed discharge, the determination
 will be based upon criteria in the
 agreement, which provide, inter alia, for
 certain homogeneous wastes to be
 regulated under the Section 402 Program
 and certain heterogeneous wastes to be
 regulated under the Section 404
 Program, subject  to certain criteria. This
 agreement does not affect the regulatory
 requirements for materials discharged
 into waters of the U.S. for  the primary'
 purpose of replacing an aquatic area or
of changing the bottom elevation of a
water body. Discharges listed in the
Corps definition of "discharge of fill
material" (33 CFR 323.2(1)) remain
subject to Section 404 even if they occur
in association with discharges of waste   /
meeting the criteria in the agreement for
Section 402 discharges.
   Unless extended by mutual
agreement, the MOA will expire at such
time as EPA has accomplished specified
steps in its implementation of RCRA. In
the meantime, these regulations simply
repromulgate EPA's existing definition
of fill material.
  Section 232.2 (q) and (r):.  Several
comments were directed toward the

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              Federal Register  /  Vol. 53, No. 108 / Monday, June  6,  1988 /Rules arid Regulations       20785
             gJtmiff TH IT M « •• H JMM»«^»m».l mfmi,, n—  ,.,! Ji, ^mj» u. Jl^nmc-i-ffi. .. -. n. . I, •H^IJBIIIIP.MB |, •« I »	 '. I — ,|.. m| .—ll...	!!••! I I •!.•.. IHII«H._H.Ill 11 .1 r -. . I'JTB. _ ^r -:. -i_i.i-jr_      -  	 	
 definitions of "waters of the United ,
 States" and wetlands." The com.mentors
 suggested that these definitions exceed
 the original intent of Congress.
   The legislative history of the Act, from
 both 1972 and 1977, emphasizes
 Congress' intent that  the jurisdiction of '
 the Act over waters of the United States
 reflect  the maximum extent permissible
 under the Commerce  Clause of the.
 Constitution. The specific definition of
 wetlands Ui>ed in these regulations was
 originally promulgated in ,1977 (prior to
 the 1977 Amendments to the Act) and
 has been approved in numerous courts,
 most recently by the Supreme Court in
• U.S. v. Riverside Bayview Homes Inc.
 (106 S.Ct 455 (Dec. 4,1985)). The overall
 definition of waters of the United States
 has also been approved by the courts,
 both in its current articulation and in
 earlier versions. Therefore, we see no ,
 need to change these definitions to
 narrow their coverage.
   Several questions have arisen about
 this application of this definition to
 isolated waters which are or could be
 used by migratory birds and endangered
 species. As the Agency explained in an
 opinion by (he General Counsel dated
 September 12,1985, if evidence
 reasonably'indicates that isolated
 Waters  are or would be used by
 migratory birds or endangered species,
 they are covered by EPA's regulation.  Of
"course,, the clearest evidence would be
 evidence showing actual use in  at least
 a portion of the waterbody. In adition, if
 a particular waterbody shares the
 characteristics of other waterbodies
 whose use by and value to migratory
 birds as well established, and those
 characteristics make it likely >hat the
waterbody in question would also be    '
 used by migratory birds, it would also
 seem to fall clearly within the definition
 (unless, of course, there is other
 informatic n that indicates the particular
waterbody would not in fact be so
used). Endangered species are, almost
by definition, rare. Therefore, in the case
 of endangered species, if there is no
 evidence of actual use of the waterbody
 (or similar waters in the area) by the
 species in question, one could actually
assume that the waterbody was not
susceptible to use'by such species,
nptwithstariding the particular
characteristics of the waterbody.
However, in each case a specific
determination of jurisdiction would have
'to be  made, and would turn cin the  ,,
particular fact's.
  For clarity and consistency, we are
adding  the following language from the
preamble to the Corps' regulations
published on November 13, 1986 (51 FR
41217). This language clarifies some
 casesUhalgtypically are^r ate not.
 considered "waters-pf the United   '
 States."    ;..;
   "Waters of the United States"
 typically include the following waters:
   • Which are or Would be used as
 habitat by birds protected by Migratory
 Bird Treaties; or
 •  • Which are or would be used as
'habitat by other migratory birds which
, cross State lines; or
   • Which are or would be  used as
 habitat for endangered species; or
   • Used to irrigate crops sold in  -
 interstate commerce.               ,  ,v
   For clarification it should be noted
 that we generally  do not consider the
 following waters to be "waters of the
 United States." However, EPA reserves
 the right on a case-by-case basis to
 determine that a particular waterbody
 within  these categories of waters is a
 water of the United States. Pursuant to
 agreements with EPA, the permitting
 authority also has the right to determine
 on a case-by-case basis if any of these
 waters are "waters of the United
 States."
   Non-tidal drainage and irrigation
 ditches excavated on dry land.
   • Artificially irrigated areas which
 would revert to upland if the irrigation
 ceased.
   • Artificial lakes or ponds created by
 excavating and/or diking dry land to
 collect  and retain water and which are
 used exclusively for such purposes as
 stock watering, irrigation, settling
 basins, or rice growing.
   • Artificial reflecting or swimming
 pools or other small ornamental bodies
 of water created by. excavating and/or
 diking dry land to retain water for   •
 primarily  aesthetic reasons.
   • Waterfilled depressions created in
 dry land incidental to construction
 activity and pits excavated in dry land
 for the purpose of obtaining fill, sand,  or
 gravel unless and until the construction
 or excavation operation is abandoned
 and the resulting body of water meets
 the definition of waters of the United
 States.
   Section 232.3: The 1977 Clean Water
 Act provided for specific exemptions
 (404(f)(l)) from permitting requirements.
 EPA's 1980 Consolidated Permit
 Regulations promulgated regulations
 spelling out the scope of the exempted
 activities. The October 2,1984,
 publication proposed several
 substantive revisions to the 404{f)(l)
 exemptions, as well as organizational
 changes. This rulemaking finalizes the
 organizational changes, but finalizes
 only one of the proposed substantive
 revisions. That revision substitutes "one
 year from discovery" for the previous
 "one year from formation" in
 § 232.2(d)(3)(i}(D), which exempts as
 minor drainage certain discharge of
 dredged or fill material.incidental to the
 emergency removal of sandbars, gravel
 bars, or other similar blockages. This
 rule also includes'the revised irrigation
 ditch provision which was the subject of
 a separate rulemaking (40 CFR
 233.35(a)(3), December 20,1984).
 Additionally, we have made the note
 following § 232.3.(b) more explicit to  .
 clarify that a conversion of wetlands to
 non-wetlands is (and has been)
 considered a "change in use." Apart
 from these changes, it appears, based on
 the comments received, that the
 regulated sector is familiar with  the
 existing language and that no additional
 clarification or improvement is now
 needed.        •
   One commenter suggested that the  ,
 Best Management Practices (BMPs) for
 the exemption from permitting for
 construction or .maintenance of farm.
 roads, forest roads or temporary roads
 for moving mining equipment are
 complex and difficult to administer and
 should be left to negotiation between
 the State and EPA for inclusion in the
, Memorandum of Agreement (§ 233.13).
 These BMPs are the same BMPs  that are
 required for exemption from Federal
 permitting requirements. These BMPs
 were promulgated in 1980 and have not
 been the subject of significant comment
 or complaint since then. A discharger  •
 under, an approved State program-
 should meet the same requirements  as
 under the Federal program.

Part 233—State Section 404 Program
Assumption Regulations

  We received several comments
 expressing concern that the proposed
 regulations would weaken Federal
 responsibilities, such as those in  the
 Fish and Wildlife Coordination Act,... "_. .
 Endangered Species Act, and National
 Environmental  Policy Act. WTien a State
 assumes the 404 permitting
 responsibility, these statutes usually no
 longer apply, since these statutes only
 apply to Federal actions. When a State
 assumes the program, the permit
 decision is a State action, not a.Federal  .
 action. However,  a Federal  oversight
 role is clearly established, by section
404(j) of the Act. Therefore, the altered
Federal role after program approval is a
 function of the statutory scheme, not
 these regulations.
  Section 233.1: Several comments were
received on partial State programs,
ranging from the view that partial
programs should not be allowed to the

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 20766       Federal Register /Vol. 53. No.  108 / Monday, June  6, 1988 / Rules  and Regulations
 view that it is desirable to approve
 partial programs. The commentors
 identified partial programs in terms of
 geographic extent or scope of activities
 regulated. EPA interprets the Act as
 requiring State programs to have full
 geographic and activities jurisdiction
 (subject  to the limitation in section
 404(g)). While specific authorization for
 partial programs under section 402 was
 enacted in the Water Quality Act of
 1987, no similar provision was added for
 section 404. Accordingly, partial 404
 programs are not approvable. Because
 of the special status of Indians, a lack of
 State authority to regulate activities on
 Indian lands will not cause the State's
 program  to be considered a partial
 program.
  We encourage Stales to begin working
 with the Federal land-owning agencies
 (I.e., Forest Service, Bureau of Land
 Management, and National Park Service
 to name a few) early  in the program
 development stage. This should
 eliminate or reduce any confusion that
 may develop, since subsequent to
program  approval, the State will assume
404 permitting responsibility in these
lands.
  In response to comments, we have
clarified that States may have a program
 that is more stringent or extensive than
what is required for an approvable
program. Under State law, and not as
part of its approved program, States
may also regulate discharges into those
waters over which the Corps retains
jurisdiction. Those parts of the State's
program that go beyond the scope  of
Federal requirements for an approvable
program are not subject to Federal
oversight or federally enforceable. Of
course, while States may impose more
stringent requirements they may not
compensate for making one requirement
more lenient than required under these
regulations by making another
requirement more? i.  .ngent than
required.
  Section 233.3: One  commentor
requested that we limit confidentiality
only to that information that does not
rotate to adverse effects on the aquatic
environment. As these regulations
conform to EPA's general regulations  on
confidentiality of information (40 CFR
Part 2}, we did not make the requested
change.
  Section 233.4: In the preamble to the
proposed rulemaking, we specifically
sought comment on the conflict of
interest section. Several comments were
received  on this topic, the vast majority
of which  supported the need for a
conflict of interest provision. However,
several commentors did suggest that
some flexibility should be added into
this section
   The current language is derived from
 the requirements for an approvable
 NPDES program. However, State 404
 programs should not be held to the same
 conflict of interest standards as State
 NPDES programs because of factual
 differences between the two programs.
 NPDES discharges are usually long term
 discharges, often from certain specific
 types of industrial or municipal
 dischargers. Discharges authorized by
 section 4Q4 typically tend to be one time,
 of shorter duration, and by a wider
 range of dischargers than NPDES,
 ranging from private citizens to large
 corporations, from small fills for boat
 docks or erosion prevention to major
 development projects. Therefore, an
 absolute ban on anyone with a financial
 interest in  a permit from serving on a
 board that approves permits is likely to
 be more difficult to comply with under
 the 404 program than under the NPDES
 program because under the NPDES  '
 criteria, so many people would be
 considered to be financially interested
 in 404 permits that the pool of potential
 404 board members would be
 unreasonably small. In addition,
 because of the nature and size of the
 discharge, 404 dischargers will often
 have less at stake financially than 402
 dischargers.
  Therefore, we have simplified the
 conflict of interest section from what
 was proposed. The final rule does not
 prohibit a person with an interest in a
 404 permit  decision from generally
•participating on a board which makes
 decisions on permit issuance or denial.
 However, anyone with a direct personal
 or pecuniary interest in a particular
 permit decision must make such interest
 known and must not participate in that
 permit decision. This new language
 allows more latitude in who may serve
 on a board, but still provides that there
 not be a conflict of interest or
 appearance of conflict of interest in any
 particular permit decision. This
 language effectuates the basic intent of
 the NPDES criteria, by  ensuring that
 board members  are disinterested
 decisionmakers.
  Section 233.10: In response to
 comment, we have clarified our original
 intent that  copies of State statutes and
 regulations submitted as part of a
 State's submission include statutes and
 regulations concerning the State's
 applicable  administrative procedures.
  Section 233.11: Several comments
 addressed  the need for additional
 information in the program description.
 These commentors were concerned that
 there may be insufficient information
 available to determine  a program's
 adequacy. These regulations reflect
 EPA's view that a complete program
description is essential for determining
the adequacy of a State's program. A
State's program must be at least as
stringent and extensive as the Federal
program. In response to these comments,
we have specified certain information
that must be included in the scope and
structure of the.State's program. The
description of the scope and structure of
the State's program must include a
detailed description of the extent of the
State's jurisdiction, scope of the .
activities regulated as well as the scope
of permit exemptions (if any),
anticipated coordination, and the
environmental permit review criteria.
  Section 233.11(h) clarifies the
requirements for a description of the
State's jurisdiction. As part of the
program description, the State must
describe separately the waters it will
assume after program approval and the
waters retained by the Corps. This
should make it easier for the public to
understand the split jurisdiction
between the State and the Corps.
  We dp not concur with the comment
that, in addition to a description of
funding and manpower available for
program administration, the program
description should include formal
assurance from the Governor that the
level of funding is sufficient to provide
for an effective program. However, we
have reinstated the existing requirement
that the State provide an estimate of the
anticipated workload. This should
provide the information needed to
determine if the State has sufficient
manpower to adequately administer a
good program. If there is insufficient
funding or manpower for an adequate
program, this will becoir-e evident either
in review of the program submission or
in the annual review of an approved
program.
  Section 233.13: In response to
comm ->nt, we have specified that, if
more than one State agency has
responsibility for program
administration, all the involved State
agencies must be parties to the
Memorandum of Agreement (MOA)
between the State and EPA's Regional
Administrator. This requirement is in
the existing regulations, but had been
eliminated in the proposal. Restoring
this requirement ensures that all State
agencies respbnsible for program
implementation are fully aware of their
responsibilities.
  One commenter suggested we use the
MOA to establish procedures to
withdraw a permit from State processing
prior to any State action on the
application. We do-not agree with this
suggestion. Except for one situation
provided for in Section 404(j), only the

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Federal  Register / Vol. 53, No.  108 / Monday, June 6,  1988 / Rules and Regulations
                                                                                      '
                                                                                                               20767
• Stats may issue a permit for discharges
 in State regulated waters.
   We do  not agree with the comment
 that the proposal fails to ensure
 adequate coordination of EPA and State
 enforcement activities, as it requires the
 MOA to address State and EPA roles
 and coordination on compliance
 monitoring and enforcement activities.
 The purpose of formalizing this aspect of
 the State's program in an MOA is to
 assure adeq  ate coordination on
 compliance monitoring and enforcement,:
 activities. As part of the State's program
 submission, this MOA is subject to
 public comment. If there  is any question
 on the adequacy of a particular program,
 it should become apparent during
 Federal agency and public review.
  Many commentors expressed concern
 about the provision for waiver of
 Federal review. Many were concerned
 that the waiver provision would be
 abused and that environmental
 protection of the resources would suffer.
 Several commentors were concerned
 that inappropriate categories would be
 waived. We feel that use of this waiver
 provision will reduce workload and
 paperwork and focus Federal resources
 where they are most needed and
 appropriate.  Specific waivers will be
 available for public review and,
 comment prior to program approval.
  This final regulation eliminates a
, separate section on sharing of
 information (former 40 CFR 233.29),
 since the  MOA with the Regional
 Administrator is already required to '-
 address State submittal of information
 to EPA and EPA access to State records,
 reports and files relevant to the
 program.. We feel this adequately serves
 the purpose of 40 CFR 233.29.
   Section 233.14: In. response to
 comments, we have, as in the previous
 section, now specified that all State
 agencies  responsible for program
 administration must be parties to the
 Memorandum of Agreement between.
 the State and the Secretary.
   EPA has also added a  note
 encouraging States to use this MOA to -.
 establish procedures for joint processing
 of Federal and State permits. Several
 comments requested that joint
 processing be made mandatory. While
 we agree that joint permit processing
 may be very beneficial to the regulated
 public, we cannot make this a condition
 to an approvable program. However, we
 will continue to,strongly encourage
 States to look .into the possibility of joint
 processing!  •                   .
   In response to,comment, we have
 retained  the existing requirement that, if
 States plan to assume existing Corps
 general permits, this MOA. must include
 procedures for transferring the support
                          -files, for,;t;hese genera\Eermts from-the "•
                          Corps tcltrie. State.;Tr8l wil!" facilitate  '•
                          State oversight of such general permits.
                            One commentor was concerned that
                          the regulations eliminated a provision
                          for procedures to ensure the State did
                          not approve permits on the basis of
                          incomplete applications transferred by
                          the Corps/This provision was deleted as
                          unnecessary. Once a State assumes the
                          program, it is responsible for fulfilling all
                          permitting requirements, including •
                          public notice. The regulation requires
                          that sufficient information be available
                          to meet the information requirements for
                          public notice and for assessing the
                          impacts of the discharge. Therefore, the
                          State must either deny incomplete
                          applications or take steps to get the
                          complete information.
                          • Section 233.15: The Act establishes a
                          120-day time clock for EPA decision on,
                          • a State's request for program approval.
                          The final regulation clarifies'that this
                          statuforily mandated time period starts
                          . on EPA's receipt of a complete program
                          submission. If the State significantly  ,
                          changes its submission during the
                          review period, the time clocks starts
                          over upon EPA's receipt of the revised
                          submission. The review period may be
                          extended upon agreement of the State
                          and EPA.                     .
                            We cannot agree to the suggestion
                          that the regulation lengthen the public
                          comment period and notice of public
                          hearing for decision on a State program.
                          The Act is ve'ry specific on the
                          timeframe for this decision. If a decision
                          is not made within the 120 days
                          timeframe,  the State's program is
                          automatically approved. EPA cannot
                          make a decision within the mandated
                          120 days of receipt if these time frames
                          are extended. Of course, as noted
                          earlier, a State may agree to extend the
                          time period for program approval; in  •
                          that event,  additional time could be
                          provided for public participation within
                          that State.
                            EPA vvill make its decision to approve
                         , or disapprove the State's program within
                          the statutorily mandated timeframe.
                          However, if approved, the State's
                          program will not be effective until the
                          notice of approval is published in the
                          Federal Register.  • •
                            • Many comments were received on the
                          delegation  of authority to the Regional
                          Administrator tp approve/disapprove
                          State programs. Most commentors were'
                          concerned  about national consistency
                          among the  States' programs. The
                          Delegation Manual, which formalizes
                         " this delegation of authority, requires
                          that the Regional Administrator
                          approving a State program must obtain
                         . the concurrence of two EPA     -
                          headquarters offices—Office of Water
  and Office of GeneralCounsel. This
  should ensure-the desired national
  consistency.
    EPA has added language to make it.   .
 'explicit that programs shall be approved
.  or disapproved based on whether the
  State's program fulfills the requirements
  of this regulation-and the Act.
    This rule  also clarifies that EPA will
  use existing State, Corps, FWS and
  NMFS mailing lists as the basis for
  mailing notices about the State's request
  for program approval.
    A summary of significant comments
  received and response to these
  comments will be prepared by the
  Regional Administrator prior to decision
  on a State's program. Since there are
  already specific requirements for public
  notice and public hearing, there is no
  need for (and we have deleted the
  requirement for) the responsiveness
  summary itself to describe the public
  participation activities or matters
  presented to the public.
  '  Section 233.16: This rule clarifies that -
  it is the. State's obligation to keep the
  Regional Administrator informed of any
  proposed or actual changes to the
  State's approved program.;	
    We rejected the suggestion that if a
  State must amend or enact new
  legislation to comply with any
 , modification in Federal  regulation, the
  change must be promulgated  Within one
  year of the modification. A two year
  time period was chosen because many
  State legislatures do not meet every
  year. A one-year deadline for these
  States would be impossible to meet. *
    We also do not agree  with the
  suggestion that minor revisions to an
  approved State program should undergo
  as much review and/or  coordination as
  substantial  program revisions. As the
  name (minor revision) implies, these
  program changes will not have a
  significant impact on the program or the
  environment. Of course, if there is
  question in EPA's mind  about whether a
  proposed revision is minor or
  substantial, the revision shall be
  considered substantial and undergo full
  review specified for an  original
  application.
    Section 233.21: Several commentors
  questioned  the legality"of State issued-
  general permits. Sections 404 (g), (h) and
  (j) of the Act authorize this type  of State
  permit.
    Many commenters were received on
  general permits. States have the option
  of assuming administration of Corps'
  existing general permits. If they choose
  to exercise  this option, the State is     •
  responsible for ensuring discharges
  comply with any existing permit
  conditions and any reporting, monitoring

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  207G8
Federal  Register / Vol. 53, No.  108 / Monday, June 6;  1988 / Rules. and Regulations
 or prcdischarge requirements. The Corps
 shall provide the State copies of the
 support files for any general permits
 assumed by the State.
   One commentor questioned the
 advisability of EPA approving transfer
 of some existing Corps general permits
 to a State. EPA cannot ignore Sections
 404 (g)(l) and (h)(5) which provide for a
 State to assume existing general
 permits. If a State with an approved
 State program proposes renewal of any
 permits that have not worked well, EPA
 will comment/object to these proposed
 permits, as appropriate.
   Several commentors expressed
 satisfaction with the Corps' existing
 general permits. These commentors
 expressed concern about the States not
 assuming such existing general permits
 and about their opportunity for
 participation in such a decision. It is the
, State's prerogative not to assume any of
 the existing general permits. However,
 if, at the time of initial program
 assumption, the State does not intend to
 assume existing Corps general permits,
 this will be noted within the program
 submission and will be subject to public
 comment and public hearing as part of
 the approval process. Failure to assume
 existing Corps general permits does not
 constitute a partial program, since the
 State will process individual permit
 applications for those discharges
 previously authorized by general permit.
 Any Corps general permit not assumed
 by the State will remain in effect, for
 purposes of the Clean Water Act, until
 its normal expiration date, unless
 revoked or modified sooner by the
 Corps under its procedures. If
 subsequent to program approval the
 State decides to revoke or modify a
 general permit it has assumed, the
 normal revocation procedures will
 apply.
   Many comments  were received on
 prcdischnrgc notified lien requirements
 for general permits. Some commenters
 agreed that notification should be
 determined on a permit-by-permit basis;
 others felt that such notification should
 be required on all general permits. This
 rule adopts the proposal that
 notification requirements be established
 on a permit-by-permit basis. For
 instance, prenotification or reporting
 may be required in areas where there is
 a likelihood for individual or cumulative
 adverse effect on the environment
 because of discharges conducted under
 a general permit. AH draft general
 permits will be reviewed by EPA and
 the other Federal review agencies as
 well as the general public. If during the
 review of a particular draft general
 permit, EPA determines that notification
                          provisions are appropriate to ensure
                          compliance with the 404(b)(l)
                          Guidelines, we will so state in the
                          Federal comments to the State. This
                          ensures that notification requirements  '
                          will be included where in fact
                          appropriate.
                            The Department of the Interior
                          requested that we require a 30-day
                          prenotification requirement on any
                          discharge pursuant to a general permit
                          that may impact units of the National
                          Park System, National Wildlife Refuge
                          System, National Fish Hatchery,
                          Reclamation project lands, Indian
                         ' Reservation and Trust lands, and public
                          lands under the jurisdiction of the
                          Bureau of Land Management. We -do not
                          feel at this time that there is a basis for
                          automatically requiring such
                          prenotification. If there is a need for
                          prenotification for a particular permit, it
                          may be specified through the Federal
                          comment on the draft permits and \vill
                          therefore be included in the issued  .
                          general permit, in accordance with
                         '§233.50.
                            Several commentors requested  that
                          we retain limits on any single operation
                          conducted under a general permit. We
                          agree that this is appropriate.
                          Subsection 233.2i(c) (1) and (2) require
                          each general permit to have limits pn the
                          size and location and type of fill for any
                          single operation, sufficient to ensure
                          minimal adverse environmental effects
                          when performed separately and minimal
                          cumulative adverse effects, as required
                          by Section 404(e).          ',
                            One commentor was concerned that
                          we had deleted all the standard permit
                          conditions (§ 233.23) for general permits.
                          Section 233.21(c) (1) and (2) recapture
                          the main items of § 233.23(c)(l) such as
                          specific description of activities
                          authorized including limitations for any
                          single operation and precise description
                          of geographic area to which the general
                          permit applies including any limitations
                          where operations may be conducted.
                          The only part of § 233.23 (Permit
                          conditions) that does not apply for
                          general permits is § 233.23(c)(l), which is
                          not applicable because it refers to items
                          that are pertinent only to individual
                          permits (e.g. name and address of
                          permittee).
                            Several commentors suggested that
                          the Director should show cause for
                          invoking discretionary authority to
                          require an individual permit. This
                          regulation specifies that discretionary
                          authority may be based on concerns for
                          the aquatic environment including
                          compliance with these regulations and
                          the 404(b)(l) Guidelines. Section 510 of
                          the Act preserves the Director's right to
                          impose more stringent requirements, i.e.,
  to invoke discretionary authority for
  other reasons under State law. Once the
  Director notifies a discharger that he
  will exercise discretionary authority to
  require an individual permit, the activity
  is no longer authorized under the
  general permit. If the activity continues
  after notification, the discharger is
  subject to enforcement action.
    Section 233.22: In response to
  comments requesting more specific
  permit conditions, we have clarified that
  emergency permits, to the extent
  possible, should incorporate all
  applicable permit conditions (§ 233.23),
  including restoration of the site. We
  have also retained the provision that
  emergency permits shall be limited to
  duration of time needed to complete the
  authorized emergency action.
    We do not agree with the comment
  that the Regional Administrator must  . .
  show cause to terminate an emergency
  permit. The Regional Administrator  '  :
  never terminates permits. The Director
  may terminate an emergency permit if
  he determines such an action is
  necessary to protect human health or
  the environment.
  - Section 233.23: Each permit shall have
  conditions  which assure compliance
  with all applicable statutory and
  regulatory requirements. If any of these
  requirements change, the permit
  conditions  must be modified as needed
  to assure compliance with,the revised
  requirements.
   In response to comments, we have
  added a requirement that the permit
  contain conditions which assure that the
  discharge will be conducted in a manner
  which minimizes adverse impacts on the
'  physical, chemical and biological
  integrity of the waters of the United
  States. This is a reiteration of the
  requirements in the 404(b)(l) Guidelines
  (§ 230.10(a)). Restoration and mitigation
  may be considered as mechanisms for
  reducing adverse impacts inappropriate
  circumstances.
   One commentor expressed concern
  about the proposed deletion of the
  permit condition referring to BMP's -
  approved by a Statewide 208(b)(4)
  agency. If a State has an approved 208
  program, these requirements would be
  covered by § 233.23(a), which requires
  the Director to establish conditions
  which assure compliance with all
  applicable statutory and regulatory
  requirements, so there is no need for a
  separate reference to the BMP's.
   In response to comment, we have
  retained the requirement for a permit
  condition explaining  that a permit
  violation is a violation of the Act as well
  as of State  statutes or regulations, as
 •this reminder may enhance compliance. "

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53, No.  108 /Monday, June 6, 1988 / Rules  and Regulations
                                                                                                                 20769
  We also, have expanded § 233.23(c)(6) to
  require the permittee to provide the
  Director information to determine
  whether cause exists for permit
  revocation or termination as well as
  modification.
    We concur with the comment that the
  Director or his authorized representative
  should have proper identification before,
  they can enter the premises or inspect
  any records. We believe this is
  reasonable and have added this to the
  final regulation.
    One commentor requested that the
  regulation require more specific
  identification of the disposal site. We
  feel that between the existing
  requirements for permit application,
  public notice and permit conditions, the
  disposal site will be adequately
  identified. However, as a safeguard, we
  have added'that the description of the
  project on the issued permit must
  include a description of the purpose of
  the discharge.
    Section 233.24 (Effect of a permit).
  This section has been deleted as
  unnecessary. The statements in this
  section were simply facts which do not
  need to be included in regulations to be
  in effect.
    Section 233.30: Many comments were
  received on the State application form.
  A number expressed concern that there
  would not be enough information
  available to evaluate the potential
  impacts of the discharge activity. We
•have accordingly revised this section to
 generally reflect the same application
  information requirements contained in
  the Corps' current regulations [33 CFR
 Part 325). Under this approach. State
 assumption of the program should not
 result in any change in either the kind of
 information available for review or the
 burden upon the applicant to supply the
 information. In, addition, a requirement
 for certification that all information
 contained in the application is true and
 accurate has been added to
 § 233,30(b)(4).           ;     ;
  ^Several commentors requested that '
 we include the publicity and pre-
 application consultation requirements in .
 the regulations-. As noted in the
 preamble to the proposed rule, we agree
 that publicity and preapplicatipn
 consultation are beneficial; however,
 they are not required for an appro vable
.program. We  will continue to en'courage
, States to include them in their programs.
   Section 233.31: In response to
 comment, this section has been
 simplified from proposed § 233.61; it
 now simply requires'coordination with
 other States whose waters may be
 impacted by the discharge and
 coordination with Federal and Federal-
 State water related planning and review
  processes,, without.attempting to list
  such processes. The's'ifiaHning and
.  review processes may include, but are -
  not limited to, coastal zone management
  plans, 208 areawide plans. Continuing
  Planning Process {§ 303(e)), and
  advanced identification (40 CFR 230.80).
  The coordination procedures will likely
  vary from State to State. The State's
•. anticipated coordination shall be
  included in the program description.
  EPA will carefully scrutinize the
  anticipated coordination to assure it is
  adequate..
    Comments were received suggesting
  that we require States to incorporate
  into their programs information
,  developed by FWS' National Wetlands
  Inventory (NWI). While we agree  that
  this information would be  very useful in
  administering a State's program and
  encourage States to take advantage of it,
  it should not be mandatory for States to
.  incorporate this information in their
  programs. The.NWI was not developed
  for regulatory purposes. Additionally,
  the FWS did not use EPA's definition of
  wetlands in the NWI; therefore, the
  "NWI wetlands" and the "404 wetlands"
  may not always coincide.
   Several commentors were concerned
  that the lack of specificity  of
  coordination requirements would
  weaken State programs. While these
 regulations do not list  specific entities
  (agencies) that must be coordinated
 with, we will carefully evaluate the
 coordination aspects of each State's
 program prior to decision on approval/
 disapproval. While we'anticipate that ,
 the State's permitting agency will
 coordinate with State fish and game
 agencies,'this is not required by the Fish
 and Wildlife Coordination  Act.(FWCA).
 Once a State assumes  the 404 permitting
 responsibility, that.Act no longer applies
 in the permitting process since
 permitting becomes a State (not Federal)
 action. The FWCA  will still require  ,
 coordination with FWS whenever a  '
 State-issued permit is' issued to a •'
 Federal agency or facility. However, it
 must also be remembered that States
 must assure compliance with the
 404(b)(l) Guidelines which  provide for
 protection of fish and wildlife resources.
 EPA is responsible  for soliciting
 comments from the Corps, FWS, and
 NMFS, and commenting to  the States.
   Section 233.32: Many comments were
 received on proposed § 233.62 (public
 notice), some in support of  and others
 Opposed to shortening  the public
 comment period. The final rule provides
 for a public comment period at least
 comparable to that  under the Federal
 program. The existing Corps' regulations
 (33 CFR.-Part 325.3) specify^ public-
 notice period of "A reasonable period of
                                         time, normally thirty days but not less
                                         than fifteen days from date of mailing."
                                         Today's rules specify ."* *  *a
                                         reasonable period of time, normally 30
                                         days," and allows approving a program
                                         that allows less than a 30 day public
                                         comment period if the Regional
                                         Administrator determines  that
                                         "sufficient public notice is provided for."
                                         The Regional Administrator must
                                         carefully consider all aspects of a
                                         State's program in regard to public  .
                                         involvement,  including how extensive
                                         the State's mailing lis.t is, whether  notice
                                         is published in area newspapers, what
                                         the actual  length of the comment period
                                         is, whether the shorter time period is for
                                      ,   all projects or just certain categories of
                                         discharge. We anticipate that comment
                                        periods would not be shorter than  20
                                        days, and we  will carefully scrutinize
                                        any that are less than 30 days.
                                          Several comments on the content of
                                        the public notices were also received.
                                        These comments objected to the lack of
                                        specificity of the information required to
                                        be included in the public notice. In
                                        response to these comments, the
                                        information requirements for public
                                        notice have been changed.- These  •  ' • . •
                                        regulations incorporate much of the
                                        language in, the Corps' existing
                                        regulations (33 CFR 325.3.) Therefore,
                                        there should be no net change in the .
                                        information available to evaluate a
                                        proposed discharge from the existing
                                        Federal program to an approved State
                                      "program.
                                         We have modified the requirement on
                                        who must automatically be mailed
                                        notice of a  permit application. While the ,
                                        notification may varjrdepending on'the
                                        type and location of the project, certain
                                        notifications, such as the local
                                        governmental  agency, should be routine.
                                        Other notificatibns that may be useful
                                        include historic preservation and coastal
                                        zone management offices.
                                         In response  to comments, we have
                                        also clarified that anyone may request
                                        to be put on a  mailing list to receive
                                        copies of public notices.
                                       1  One commentor .suggested that we ,-
                                        make it clear that information obtained
                                        in response to  the public notice will be
                                        taken into consideration as  part of  the
                                        environmental assessment to determine
                                        if an environmental impact  statement
                                        (EIS) should be prepared. We have  not •
                                        included this language since, once a
                                        State assumes the permitting •
                                        responsibility,  the National
                                        Environmental Policy Act (NEPA) no
                                        longer applies, NEPA applies to Federal
                                        actions. When a State assumes the
                                        program, the permit decision is a^State
                                        action, not a Federal action. While  many
                                        States have a State law equivalent  to

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20770
                                    o1'  53'  No" WB  I  Monday,  June 6, 1988  /  Rules
 NEPA, it is not the function of these
 regulations to address EIS requirements
 under such State laws.
  Section 233.33: This provision has
 been rewritten to clarify how the
 transcript of public hearings will be
 made available to the public.
  Section 233.34: Several commentors
 expressed concern that  requiring the
 State to prepare a written determination
 for each permit is excessive paperwork.
 We do not concur with this view; we
 feel that a written determination is
 needed for each permit decision to
 ensure proper evaluation and to
 facilitate subsequent review. Therefore,
 these regulations contain the
 requirement that the Director must
 prepare a written determination for each
 permit application outlining the decision
 and the rationale for the decision. Of
 course, in accordance with § 230.6 of the
 Guidelines, the level of detail may be
 tailored to the circumstances.
  Any State environmental review
 criteria must be at least  equivalent to
 the 404(b)(l) Guidelines  for an
 approvable program. The 404(b)(l)
 Guidelines were the subject of an
Advanced Notice of Proposed
Rulemaking (ANPRM) (47 FR 36798)
published August 23,1982, to solicit
 comments and examples of alleged
problems with these Guidelines. At this
 time, EPA has not found sufficient basis
 for revising the Guidelines. Therefore,
States must assure compliance with the
current Guidelines, as required in
section 404(h)(l)(A)(i).
  We do not concur with the suggestion
 that we establish specific deadlines for
State decision on an application. The
only deadlines in this regulation are
 those which relate to the statutorily
mandated limefrarnes for Federal
review of an application.
  Section 233.35:The final regulation
simply requires signature by both the
applicant and  .he Director, and does not
specify the sequence in which they sign.
 However. EPA anticipates that, if the
 project is controversial or if the permit
 conditions are restrictive, the Director
 may wish to require the  applicant to sign
 the permit to indicate acceptance of its
 terms prior to  the Director's signature.
  Section 233.36: These regulations
simplify the procedures for modification,
suspension and revocation of permits.
State procedures to handle these
situations shall be approved if there is
opportunity for public comment,
coordination with the Federal review
agencies, and opportunity for public
 hciiring. Language has been added
 (§ 233,36(b)) specifying that permit
 modification must be in  compliance with
 § 233.20 (Prohibitions).
                                          The 402 State program regulations
                                        handle modifications differently than
                                        these 404 State Program Regulations, 40
                                        CFR 122.62 provides an exclusive list of
                                        grounds which justify the modification
                                        of a 402 State.permit. Section 233.36
                                        does not. This difference between the
                                        two programs is appropriate for the
                                        following reasons. First, the 402 program
                                        has a long history of litigation
                                        concerning reopener and the five year
                                        maximum permit term; the 404 program
                                        aoes not. Second, the 402 program
                                        generally regulates continuous
                                        discharges; consequently, there is great
                                        concern with balancing the permittee's
                                        need for certainty and continuity against
                                        the program's need to impose more
                                        stringent standards. The 404 program,
                                        however, tends to regulate short-term
                                        discharges, and thus the permittee's
                                        need for continuity is much less than it
                                        is in the 402 program. Consequently, the
                                        404 programs may facilitate permit-
                                        modification by States where the 402
                                        program can not.         ',
                                          One commenter expressed concern
                                        about use of abbreviated review
                                        procedures for modification of permits
                                        for minor modification of project plans
                                        that do not "significantly" change the
                                        character, scope and/or purpose of the
                                        project or result in significant change in
                                        environmental impact. The commenter
                                        was concerned that the use of the word
                                        "significant" was too vague and allowed
                                        a procedural loophole to avoid public
                                        and agency review. The key word in this
                                        sentence is "minor" modification.
                                        Things that will be evaluated in making
                                        the decision on whether the project
                                        modification is minor are whether there
                                        is any change  m project purpose, or any
                                        change that increases the amount of
                                        dredged or fill material,  or'any change
                                        that  enlarges the scope of the project.
                                        We anticipate that, if there is any
                                        question about the need for public and
                                        a-ency review of a project modification,
                                        the State will initiate full review
                                        procedures.
                                          Section 233.37: In the preamble to the
                                        proposed regulation (49 FR 39015) we
                                        noted that the requirements concerning
                                        who must sign may not necessarily be
                                        appropriate for the 404 program. The
                                        language in the proposal was the result
                                        of a settlement agreement [NRDC v.
                                        EPA, and consolidated cases [No. 80-
                                        1607 (D.C. Circuit)]). All the comments
                                        received on this subject agreed that the
                                        proposed signature  requirements are
                                        appropriate for NPDES discharges, but
                                        are too inflexible and are not really
                                        appropriate for 404 discharges, since
                                        most 404 discharges are a one time
                                        discharge and on a relatively small
                                        scale. We concur with these comments.
                                        Therefore, this final regulation
 incorporates the signatory requirements
 contained in the Corps' current
 regulations (33 CFR 325.1). Thus, there
 will be no change from the existing
 Section 404 requirements when a State
 assumes the program.
   The certification that all statements
 contained in the application or other
 documents are true and accurate and
 that there are penalties for submitting
 false information has been removed
 from this section to § 233.30 (Application
 for a permit). Section 233.41(a)(3)(iii)
 also addresses this certification in that it
 provides for authority to seek criminal
 fines against any person who  knowingly
 makes false statements in any
 application, record, report, plan or other
 document filed or required to  be      '
 maintained under the Act, these
 regulations or the approved State
 program.
  Section 233.38: One commentor
 requested that if a State permit
 application has been submitted in a
 timely manner,  an existing Federal
 permit should be continued beyond its
 expiration date until  a State permit is
 issued. The provision in the
 Administrative Procedures Act for  •
 continuing Federal permits does not
 apply in this setting. Therefore, such
 continuation may be  accomplished only '
 through State law. These regulations
 allow but do not require the State to
 have such authority. We cannot
 mandate that this be  a requirement for
 an approvable program.
  Section 233.40: The compliance
 evaluation provision has been rewritten
 from the existing regulation to simplify it
 and to provide additional  flexibility. We
continue to believe that compliance
 evaluation is an important component of
 an effective Section 404 program.
Therefore, the previous provisions (40
CFR 233.27 (1984)) should  be considered
as guidance in interpreting the new
 streamlined language,. '
  We do not agree with the comment
 that State  agency authority to  "*  * *
enter any site or premises subject to
regulation" is excessive or may violate
civil rights. This provision does not
override applicable warrant
requirements or other safeguards. Of
 course, if State requirements so
constrain the State's right of entry that
 the State lacks meaningful authority to
 inspect, the program would not be
 approvable. (We are  not presently
 aware of any States where there would
 be this problem, however.)
  Section  233.41: Many comments were
 received on the proposed  alternative
 requirements for authority to assess civil
 and criminal fines of a specific amount.
The comments ranged from approval of

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                        =2^teLlJ^                                                                          20771
  the alternative concept to concern about
  weakening State enforcement capability.
  This regulation promulgates the
  proposed subsection allowing approval
  of a State program without the'specific.
  monetary penalty authority if it has a
  demonstrable effective alternative
  enforcement mechanism.
    We are interested in ensuring that  .
  State programs have strong enforcement
  capability, since it is not desirable for
  EPA to constantly overfile in State
  enforcement actions. Because the Act
  does not specify that a State must have
  penalties equal to the Federal penalties
  or at any other particular level for an
  approvable program, EPA has
  substantial discretion in deciding  what
  is sufficient State enforcement authority.
  These regulations establish monetary
  penalties for .which the State must have
  the authority to assess; they need  not be
  assessed by the State for every
  violation. These amounts are
  approximately half those EPA is
  authorized to assess.
 .  If a State cannot fulfill these monetary
  penalty requirements, it can still have an
  approved program if EPA is satisfied >'
  that it has "an alternate, demonstrably
 effective method of ensuring
 compliance." However, even under the
 alternative enforcement program
 provision, States must still have the ..
 authority to assess both civil and
 criminal penalties,  although the amounts
 may not equal those required by
 § 233.41(a}(iH"i).
   Before approving any alternate      '
 enforcement mechanism, ,the Regional
 Administrator (RA) will carefully
 evaluate the State's proposed
 alternative enforcement mechanism to
 ascertain the effectiveness of the
 proposed alternative. The State's
 program must have a clear history of
 demonstrated effective deterrence,
 while also having direct punitive value. '
 Programs will have to be in effect for at
 least one year prior to formal
 application for program approval in
 order to have a sufficient track record
 for evaluating effectiveness.
  An effective, strong restpration
 program is the type of enforcement
 program that would be given serious
 consideration as an alternative under
 this provision. Being of a solid nature,
 404 discharges tend to stay where
 originally placed, making restoration of
 illegally filled areas more feasible for
 404 discharges as compared to 402
 discharges. Most 404 discharges are a
 onetime discharge,  of relatively short
duration, and on a relatively small scale.
This  lends more'credence to restoration
working as an alternative enforcement
mechanism which can serve to protect
   the- environrnent,. djejgr future violations,
   and penalize the vjpIftorf~ •
     A key aspect that the RA must
   consider in determining effectiveness is
   whether the alternative program has an
   equivalent deterrence effect as would
   assessment of monetary penalties. The
   alternative approach must be strong
   enough to cause a violator to cease any
   and all illegal activities. It must also
   deter others from violating the State's
   permit program. How effective the
   alternative mechanism will be in  ,
  preventing and restoring any
  environmental damage will also be
  considered by the RA in making a
  decision on approval/denial of a State's
  alternative enforcement  program.
    The enforcement authority which a
  State must have in order for a  Section
  404 program to be approved is
  essentially the same enforcement
  authority it must have to administer an ,
  NPDES program.under the Act. If a State
  lacks authority to recover penalties of
  the levels required under
  § 233.41(a)(3)(i)-(Jii), EPA will review a
  State's authority to assess penalties in
  light .of the State's ability to provide
  other incentives to compliance and
- deterrence to noncompliance. EPA
  intends that penalties for violations of
  Section 404 programs will provide
  general and specific deterrence.
  Penalties assessed in State administered
  programs should persuade the. viola tor
  to take precautions against falling into
 , noncompliance again, deter violations ^
  by others, and restore economic equity
  to regulated parties who have complied
 with Section 404 requirements.  Penalties
 assessed in a State program should, at a
 minimum, recapture the economic
 benefit that a violator has wrongfully
 obtained. In support of its application
 for program approval, a State may
 provide information regarding its
 authority to obtain money judgments
 from Section 404 violators under
 equitable theories such as restitution
 and unjust enrichment.
   Any proposed alternative enforcement
 mechanism will be available for public
 comment as part of the State's program
 submission. We'are concerned about
 national consistency in administration
 and effectiveness of State programs.
 Therefore, we must stress that approval
 of an alternate enforcement mechanism
 will not be undertaken lightly. States
 should continue to try to meet the
 existing monetary penalty requirements.
   In these regulations we have added a '
 reporting requirement for States using
 the alternative enforcement authority.
 Under fina} § 233.41(d) the State must    -
 keep the Regional Administrator
 informed of all enforcement actions
   carried out under the alternative
   provision. The manner of reporting will
   be established as part of the State's
   submission in the Memorandum of
   Agreement with the Regional
   Administrator. This reporting
   requirement will enable  EPA to closely
   monitor the effectiveness of the State's
   enforcement program and to determine
  any need for EPA overfiling in State
  enforcement cases and/or action under
  Section 309.
    In response to comment, we have ,
  retained the requirement that the burden
  of proof for State enforcement cases
  shall be no greater than the burden of
  proof required of EPA.
    One commentor suggested that any
  intervention in a State enforcement
  action must include some showing of
  justification. This regulation adopts  the
  proposal which allows intervention
  "*  *  * by any citizen having an interest
  which is or may be adversely affected."
  We feel this adequately answers the
  suggestion.                            ,
   ^One commentor requested that EPA
  prescribe procedures for any affected
  person to initiate legal action in State or
  Federal court against the Director, the
  permittee, or anyone operating in
  noncompliance with a State program.
 This would be comparable to the citizen
 suit provision in Section 505 of the Act.   '
 While such a provision might strengthen
 a State program, there is no such
 statutory requirement for an approvable
 program. However, we do anticipate
 that many States will have some form of
 citizen suit provisions.

. Subpart F—Oversight Policy

   Many Federal environmental
 programs were designed by Congress to
 be administered at the State level
 wherever possible. EPA's policy has
 been to transfer the administration of
national programs to State governments
to the fullest extent possible, consistent
with statutory intent and good
management practice. The clear intent
of this design is to use the  strengths of
Federal and State governments in a
partnership to protect public health and
the nation's.air, water, and land. State
governments are expected to assume
primary responsibility, while EPA is to
provide consistent environmental
leadership at the national level, develop
general program frameworks, establish
standards as required by the legislation,
assist States in preparing to assume
responsibility for program operation,
provide technical  support to States in
maintaining high quality programs, and
ensure national compliance with
environmental quality standards.

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20772
Federal Register / Vol. 53, No.  108 / Monday, June 6,  1988 / Rules and  Regulations
  The relationship between EPA and the
States under assumption of the Section
404 Program is intended to be a
partnership. Both EPA and the States
have continuing roles and
responsibilities under assumed State 404
programs. EPA remains responsible to
the President, the Congress and the
public for progress toward meeting
national environmental goals and for
ensuring that the C'ean Water Act is
adequately enforced. Thus, EPA's policy
to transfer management responsibilities
for environmental programs to State
governments carriers with it a
corresponding EPA responsibility to
assure the objectives of the Federal law
are achieved,
  Evaluation of approved State 404
programs will generally focus on overall
program performance and identifying
patterns of problems. However,  there
will be some cases where EPA (and
other Federal agency) participation in an
Individual State permit decision will be
appropriate. Section 404(j) specifically
provides for Federal comment on
individual permit applications.
  However, based on our general policy
and our specific experience with
Michigan's Section 404 program, the
provision for waiver of Federal review
(§ 404{k)J will be exercised to focus
permit-specific oversight primarily on
proposed discharges with potentially
serious adverse environmental impacts.
Review of Michigan's assumed program
clearly illustrates that Federal review
was waived in the vast majority of
cases. In 1985, approximately 1% of the
permit applications received Federal  '
review; in 1986, approximately 1.596.
   We expect to issue guidance on
Federal oversight of approved State
programs under these regulations. This
will include guidance on identifying and
describing categories of activities
eligible and appropriate for waiver of
Federal review, emphasizing reasonable
waiver initially, followed by increasing
waiver over time based on experience
with the State 404 Program. Thus,  as
experience demonstrates that a State is
effectively administering its approved
program, so as to comply with all
national requirements, it is expected
that additional waivers will be
developed, replacing more individual
permit review with periodic
programmatic review. This periodic
review will usually be conducted on an
annual basis, but may be more frequent,
as necessary or appropriate. EPA
intends that other Federal agencies  with
responsibility under Section 404 will
have an opportunity to participate in
Stale program review activities and in
                          the determination of what changes to
                          -such review would be appropriate,
                            Section 233.50: Several commentors
                          expressed concern that top much time is
                          allowed for Federal review of State  '
                          permit applications. The final
                          regulations retain the proposed time
                          frames because they are based on
                          Section 404(j) of the Act. However, the
                          regulations do allow for the times to be
                          shortened by mutual agreement of the
                          Federal agencies and the State.
                            Several commentors questioned why
                          EPA receives the public notice from the
                          State and distributes the notice to the
                          Federal agencies. The Act establishes
                          EPA as the Federal focus of contact with
                          the State. However, if the State, with the
                          goal of streamlining, wants to provide
                          copies of the public notice directly to all
                          the Federal agencies, this can be
                          accommodated within the Memorandum
                          of Agreement with the Regional
                          Administrator (§ 233.13). In either case,
                          the comments from the Federal review
                          agencies will be forwarded to EPA to
                          consolidate the Federal comment to the
                          State.
                            In addition to the public notice and
                          draft general permit, the Regional
                          Administrator shall forward to the
                          Corps, FWS, and NMFS any other
                          information pertinent  to making an'
                          informed comment that the States
                          makes available to him.
                            This regulation eliminates the
                          requirement that States prepare draft
                          individual permits. Draft  general permits
                          must be prepared (§ 404(j) refers to a
                          copy of each proposed general permit)
                          but there is no comparable statutory
                          requirement for draft individual permits.
                          Moreover, draft permits are not
                          prepared as part of the current Federal
                          program. Public review of individual
                          permit applications is currently based
                          on  the public notice; public review
                          subsequent to State assumption will
                          also be based on public notice.
                          Therefore, th_.e will be no substantial
                          change from existing procedures.
                            One commentor questioned why the
                          public notice was circulated to EPA for
                          Federal review instead of the permit
                          application (§ 404(j)).  The public notice
                          usually contains all the pertinent
                          information in the permit application
                           (§  233.32(d)). Under the Corps
                           administered program, public and
                          Federal  review is normally based on the
                           public notice; therefore, there will be no
                           significant change from current practice.
                           In  addition, under ei'ther the Federal and
                           State programs, EPA can request a copy
                           of  a particular application if it has a
                           need for it.
                             In response to comment, we have
                           reinstated the provision that if the
 Regional Administrator notified the
 Director within 30 days of receipt of the
 public notice that there is no comment,
 he may  reserve the right to object within
 90 days of receipt of the notice based on
 new information .brought out by the
 public during the comment period or at a
 hearing.
   Contrary to several comments
 received, the regulation already
 provides that the State shall provide a .
 copy of every issued permit to the
 Regional Administrator (§ 233.50(a)(4)).
 These issued permits will be reviewed
 for compliance with the requirements for
 an approvable program, as part of EPA's
 overall oversight.
   One cOmmentor suggested that our
 provision for the Regional Administrator
 to consolidate comments for the Federal
 agencies conflicted with Section
 404(h)(l)(H). However, Section 404fj)
 specifically assigns this coordination/
 consolidation role to EPA's Regional
 Administrator. This section clearly
 establishes EPA's Regional
 Administrator as the Federal focus for
 approved State programs. After "full
 consideration" of the comments of the
 Federal review agencies, EPA will
 prepare and transmit the Federal
 comment on a permit application to the
 State. If appropriate and/or useful, EPA
 may transmit copies of the other Federal
 agencies' comment to the State as part
 of the official Federal comment. Those
 agencies are, of course, also'free to
 furnish  information copies of their
 comments to the State at the same time
 they submit them to EPA.
   Section 233.51: This section received
 many comments, which range-from the
 view that Federal review has been
 waived far too much to one that Federal
 review has not been waived for enough
 categories of discharge. Other than the
 few categories never eligible for waiver,
 waivers will be developed on a State-
' by-State basis. Each State has unique
 resources that must be considered in
 developing categories or discharge
 eligible for waiver. These categories will
 be developed in  consultation with the
 Federal review agencies and will be
 open to public comment. We anticipate
 that use of this waiver mechanism will
 reduce  unnecessary paperwork and
 direct the Federal presence to where it is,,
 most needed and appropriate.
    The proposed  rule specified that
 general permits are not eligible for
 waiver of Federal review. The proposal
 intended that draft general permits are
 not eligible for waiver of review. This
 has been clarified in the final rule.
    In response to comment, we have
 reinstated the provision that discharges
 into National and historical monuments

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                                    .^^J^                                            Regulations       20773
   are not eligible for, waiver pf Federal •
   review, in light of the special Federal
   interest in them.
     We anticipate that existing Corps
   nationwide permits will be used as a
   basis for developing categories to
   discharge eligible for waiver of Federal
   review. Previous Federal agencies'
   comments (or no comment) can also1 be
   used in determining activities eligible,for
   waiver of Federal peview. Where EPA
   has .used.the advanced identification
   procedure with the Corps or the State
   under 40 CFR 230.80, or on its own
   initiative  under Section 404(c) (40 CFR
   Part 231), the results of that process will
   be used to determine those areas and
   categories of discharge that should be,
   and/or those that should not be,
   considered for waiver of Federal review.
     Categories of activities eligible for  "
   Waiver of Federal review, in a particular
   State will be developed after
   consultation with the Corps, FWS, and
   NMFS. These categories will be
   described in the State's submission for
   program approval and therefore will be
   subject to public comment. Activities for
  which Federal review is waived are also
  subject to  annual  review. If, at any time,
  any of these.categories of activities are
  deemed inappropriate for continued   .
  waiver,  they can (and will) be        ,
  withdrawn from the waiver provision
  and become subject to individual
  review.
   (Section 233.52: In response to
 ^comments, we have added a
  requirement .that the State's draft annual
  report to be made  available for public -
  inspection.         .  .  .
    The annual report is a mandatory, not
  a discretionary,  requirement for an
  approved program. In response to
  comment, we have added to the
  information that shall be included in the
  annual report the number of suspected
 unauthorized activities reported to the ,
 State and Jie nature of the State's action
 on  these reported activities; added that
 the State shall report the .number of
 violations identified as well as the
 number and nature of enforcement
 actions taken; and the number of permit
 applications,received but not yet,
 processed.
   Contrary to comment on the annual.
 reporting requirements, the regulation
 does require the  Director to respond, in
 the final report, to  the Regional
 Administrator's comments and
 questions about the draft report.
   Section 233.53:'One commentor
 suggested that program withdrawal
 should be initiated only where a State's
•program, on the whole; has repeatedly
 failed to, comply with the 'requirements
 for an approvable program; This
 comnientor suggested that continued '..
 ,  problems ;j|-ith any one'.^theSbriteria
   specified in*§ 233.53(b) (2) and (3) is not
   sufficient grounds for program
   withdrawal; We cannot concur with this
.   suggestion. While we do agree that
  .program withdrawal will not be taken
   lightly and that program approval will
 .  not be withdrawn for minor reasons,
   continued non-performance of any of the
   criteria specified can be grounds for
  initiating program withdrawal. Each of  -
  the criteria listed is a vital part of an
  approved program and continued non-
  performance of any of these would
  result in a program that no longer fulfills
  the requirements for an approved
  program'.
    These regulations provide that  the
  Administrator shall respond in writing
  to a'ny petition to commence withdrawal
 proceedings^ One commentor suggested
 that this exceeded  the public
 involvement requirements. We believe .
 'that such written response is
 nonetheless good policy and publish the
 rule as proposed.

 Executive Order 12291

    Since these rules are revisions which
 provide regulatory relief by, for the most
 part, increasing flexibility in State
 program design and administralion, we
 have determined that they are not a
 major rule requiring a Regulatory Impact
 Analysis under Executive Order 12291.  -7
 This rule has been reviewed'by the
 Office of Management and Budget in
 accordance with the requirements of
 'Executive Order 12291;            .

 Regulatory Flexibility Act
   .This  final rule was .reviewed under
 the Regulatory Flexibility Act of 1980,
 Pub. L. 96-354, which requires
 preparation of a regulatory flexibility
 analysis for any rule which is likely to
 have significant economic impact on a
•substantial number of small entities.
 Since this revision to 40 CFR Part 233
 will reduce paperwork, reporting
 requirements and application
 information requirements, this final rule
• will be beneficial to small entities.  Thus,
 no Regulatory Flexibility Analysis  is  _
 needed.

 Paperwork Reduction Act

   The Office of Management and Budget
 (OMB) has approved the information
collection requirements contained in this1
final rule  under the provisions of the
Paperwork Reduction Act. 44, U.S.C.
3501 el seq. and has assigned OMB
control numbers:        ;              •-
  2090-011.   ;   -
 ' 2090-012.   •
'  2090-013. .'.-,".
- 2p9Ch-015.,
    List of Subjects in 40 CFR Parts 232 and
    233

     Administrative practice and
    procedure, Reporting and recordkeeping
    requirements, Confidential business
    information. Water pollution control,  >
    Indian lands, Intergovernmental
  .  relations, Water supply, Waterways,
    Navigation, Penalties, Wetlands.
     Dated: May 27.1988.
   Lee M. .Thomas,
   Administrator, Environmental Protection
   Agency.
     For the reasons set out in the
   preamble, 40 CFR Part 232 is amended
   as set forth below.    ,
    , 1. Part 232 is  added to read as follows:

   PART 232—404 PROGRAM
   DEFINITIONS; EXEMPT ACTIVITIES
   NOT REQUIRING 404 PERMITS
  Sec.            '-••"•
  232.1  Purpose and scope of this part.
  232.2  Definitions.
  232.3  Activities not requiring permits.
    "Authority: 33 U.S.C. 1344.

  §232.1   Purpose and scope of this part
    Part 232 contains definitions
  applicable to the Section 404--program
  for discharges of dredged or fill material.
  These definitions apply to both the
  Federally operated program and State
  administered programs after program
  approval. This part also describes those
  activities which are exempted from
  regulation. Regulations prescribing the
  substantive environmental criteria for
  issuance of Section 404 permits appear
'  at 40 CFR Part 230; Regulations
  establishing procedures to be followed
  by the EPA in denying or restricting a
  disposal site appear at 40 CFR Part 231.
  Regulations containing the procedures
  and policies-used by the Corps in
  administering the 404 program appear at  •
  33 CFR Parts 320-330.  Regulations
  specifying the procedures EPA will
  follow, and the criteria EPA will apply
  in approving, monitoring, and
  withdrawing approval of Section 404
  State programs appear at 4b CFR Part  '
  233.

  §232.2 Definitions.
    (a) Administrator means the
  Administrator of the Environmental
  Protection Agency or an authorized
  representative.1
    (b) Application means a form for      :
 applying for a permit to discharge
 dredged or fill material into waters of
  the United States.     ••',.•
   (c) Approved program means a' State
•program-which has "been approved by
 the,Regional  Administrator under Part
 233 of this chapter of which is deemed

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 20774
Federal  Register / Vol.  53,  No. 108  /  Monday, June  6, 1988 / Rules  and  Regulations
 approved undor Section 404(h)(3). 33
 U.S.C. 1344(h)(3).
   (d) Best management practices
 (BMPs) means schedules of activities,
 prohibitions of practices, maintenance
 procedures, and other management
 practices to prevent or reduce the
 pollution of waters of the United States
 from discharges of dredged or fill
 material. BMPs include methods,
 measures, practices, or design and
 performance standards which facilitate
 compliance with the Section 404(b)(l)
 Guidelines {40 CFR Part 230). effluent
 limitations or prohibitions under Section
 307(a), and applicable water quality
 standards.
   (e) Discharge of dredged material
 means any addition of dredged material
 into waters of the United Stales. The
 term includes, without limitation, the
 addition of dredged material to a
 specified discharge site located in
 waters of the United States and the
 runoff or overflow from a contained
 land or water disposal site. Discharges
 of pollutants into waters of the United
 States resulting from the onshore
 subsequent processing of dredged
 material that is extracted for any
 commercial use (other than fill) are not
 included within this term and are
 subject to Section 402  of the Act even
 though the extraction  and deposit of
 such material may require a permit from
 the Corps or the State Section 404
 program. The term does not include de
minimus, incidental soil movement
 occurring during normal dredging
 operations.
  (f) Discharge of fill material means
 the addition of fill material into waters
of the United States. The term generally
 Includes, without limitation, the
following activities: Placement of fill
 that is necessary to the construction of
any structure; the building of any
structure or impoundment requiring
rock, sand, dirt, or other materials for its
 construction; site-development fills for
recreational, industrial, commercial,
 residential, and other  uses, causeways
 or road fills; dams  and dikes; artificial
 islands; property protection and/or
 reclamation devices such as riprap,
groins, seawalls, breakwaters, and
revetments; beach nourishment; levees;
 fill for structures such as sewage
 treatment facilities, intake and outfall
pipes associated with  power plants and
subaqueous utility lines; and artificial
reefs,
  (g) Dredged material means  material
 th«t is excavated or dredged from
 waters of the United States.
  (h) Effluent means dredged material
 or fill material, including return flow
 from confined  sites.
                             (i) Fill material means any "pollutant"
                           which replaces portions of the "waters
                           of the United States" with dry land or
                           which changes the bottorn elevation of a
                           water body for,any purppse.
                             (j) General permit means a permit
                           authorizing a category of discharges of
                           dredged or fill material under the Act.
                           General permits are permits for
                           categories of discharge Which are
                           similar in nature, will cause only
                           minimal adverse environmental effects
                           when performed separately, and will
                           have only minimal cumulative adverse
                           effect on the environment.
                             (k) Owner or operator means the
                           owner or operator of any activity
                           subject to regulation under the 404
                           program.
                             (1) Permit means a written
                           authorization issued by an approved  .
                           State  to implement the requirements of
                           Part 233, or by the Corps under 33 CFR
                           Parts 320-330. When used in these
                           regulations, "permit" includes "general
                           permit" as well as individual permit.
                             (m) Person means an individual,
                           association, partnership, corporation,
                           municipality, State or Federal agency, or
                           an agent or employee thereof.,
                             (n) Regional Administrator means the
                          Regional Administrator of the
                          appropriate Regional Office of the
                          Environmental Protection Agency or the
                          authorized representative of the
                          Regional Administrator,
                            (o) Secretary means  the Secretary of
                           the Army acting through the Chief of
                          Engineers.
                            (p) State regulated waters means
                          those  waters of the United States in
                          which the Corps suspends the issuance
                          of Section 404 permits upon approval of
                          a State's Section 404 permit-program by
                          the Administrator under Section 404(h).
                          The program cannot be transferred for
                          those  waters which are presently used,
                          or are susceptible to use in their natural
                          condition or by reasonable improvement
                           as a means to transport interstate or
                          foreign commerce shoreward to their
                           ordinary high water mark, including all
                          waters which are subject to the ebb and
                           flow of the tide shoreward to the high
                           tide line, including wetlands adjacent
                           thereto. All other waters of the United
                           States in a State with an approved   ,  "
                           program shall be under jurisdiction of
                           the State program, and shall be.
                           identified in the program description as
                          required by Part 233.
                             (q) Waters of the United States
                           means: •       '
                             (1) All waters which are currently
                           used, were used in the  past, or may be
                           susceptible to us in interstate or foreign
                           commerce, including all waters which
                           are subject to the ebb and flow of the
                           tide.              ,
   (2) All interstate waters including
 interstate wetlands.
   (3) All other waters, such as intrastate
 lakes, rivers, streams (including
 intermittent streams), mudflats,
 sandflats, wetlands,  sloughs, prairie
 potholes, wet meadows, playa lakes, or
 natural ponds, the use, degradation, or
 destruction of which would or could
 affect interstate or foreign commerce
 including any such waters:
   (i) Which are or could be used by
 interstate or foreign travelers for
 recreational or other purposes; "or
  ((ii) From which fish or shellfish are or
 could be taken and sold in interstate or
 foreign commerce; or
   (m) Which are used or Could be used
 for industrial purposes by industries in
 interstate commerce.
   (4) All impoundments of waters
 otherwise defined as waters of the
 United States under this definition;
   (5) Tributaries of waters identified in
 paragraphs (g)(l)-(4) of this section;
   (6) The territorial sea; and
   (7) Wetlands adjacent to waters
 (other than waters that are themselves
 wetlands) identified in paragraphs
 (q)(l)-(6) of this section.
  Waste .treatment systems, including
 treatment ponds or lagoons designed to
 meet the requirements of the Act (other
 than cooling ponds as defined in 40 CFR
 123.11(m) which also  meet  the criteria of
 this definition) are not waters of the
 United States.
  (r) Wetlands means those areas that
 are inundated or saturated by surface or
ground water at a frequency and   '
duration sufficient to support,  and that
 under normal circumstances do support,
a prevalence of vegetation typically
 adapted for life in saturated soil
conditions. Wetlands generally include
swamps, marshes, bogs, and similar
areas.

§ 232.3  Activities not requiring permits.
  Except as specified in paragraphs (a)
and (b) of this section, any discharge of
dredged or fill material that may result
from any of the activities described in
paragraph (c) of this section is'not
prohibited by or otherwise subject to
regulation under this  Part.          s
  (a) If any discharge of dredged  or fill
material resulting from the activities
listed in paragraph (c) of this section
contains any toxic polutant listed under
Section 307 of the Act, such discharge
shall be subject to any applicable toxic
effluent standard or prohibition, and
shall require a Section 404  permit.
  (b) Any discharge of dredged or fill
 material into  waters of the United States
 incidental to any of the activities
 identified in paragraph (c)  of this section

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                                            IL±0ŁLI±^^                                               20775
    must have a permit if it is part of an
    activity whose purpose, is to convert an
    area of the waters of the United 'States
    into a use to which it was net-previously
    subject, where the flow or circulation of
    waters of the United States may be
    impaired or the reach of such waters   '
    reduged. Where the proposed discharge
 .   will result in significant'discemable
    alterations to flow or circulation, the
   presumption is that flow or circulation
   may be impaired by such alteration.
     [Note.—For example, a permit will be
   required for the conversion of a cypress
   swamp to some other use or the conversion of
   a wetland from silvicultural to agricultural
   use when there is .a discharge of dredged or
 ,  fill material into waters of the United States
   in conjunction vs iih constuction of d&es,
   drainage ditches or other works or structures
   used to effect such;conversion. A conversion
   of Section 404 wetland to a non-wetland is a
   change in use of an area of waters of the U.S.
   A discharge which elevates the bottom of
   waters of the United States without
   converting it to dry land does not thereby :
   reduce the reach of, but may alter the flow or
  circulation of, waters of the United States.]
    (c) The following activities are exempt
  from Section 404 permit requirements;
 • except as specified in paragraphs (a)
  and (b} of this section:-
    (l)'(i) Normal farming, silviculture  and
  ranching activities such as plowing,
  seeding, cultivating, minor drainage, and
  harvesting for  the production of food,
  fiber, and forest products, or upland soil,
  and water conservation practices, as
  defined in paragraph (d) of this section
  . (»)(A) To fall under this exemption,
 the activities specified in paragraph
 (c)(l) of this'section must be part of an
 established (i.e., ongongj-farming,
 silviculture, or ranching operation, and
 must be in accordance with definitions
 in paragraph (d) of this section.
 Activities on areas lying fallow as part
 of a conventional rotational cycle are
 part of an established operation.
  - (B) Activities which bring an area into
 farming, silviculture or ranching use are
 not part of an established operation. An
 operation ceases to be established when
 the area in which it was conducted has
 been converted to another use  or has
 lain idle so long that modifications to
 the hydrological regime are necessary to
 resume opera'ion. If an activity takes
 place outside the waters of the United
 States, or if it does not involve  a   \
 discharge, it doRS not need a Section 404
 permit whether or not it was part of an
 established farming, silviculture or
 ranching operation.
   (2) Maintenance, including emergency
reconstruction of recently damaged •
narts, of currently serviceable structures
such as dikes, dams, levees, groins,
riprap  breakwaters, causeways, bridge
    abutme'nts or approaches, and
    transfortatioh striiMiref; Maintenance
    does not include any modification that
    changes the character, scope, or size of
    the original fill design. Emergency
    reconstruction must occur within a
    •reasonable period of time after damage
    occurs in order to qualify for this
    exemption.
    •  (3) Construction or maintenance of
    farm or stock ponds or irrigation ditches
    or the maintenance (but not
  ,  construction] of drainage ditches.
    Discharge associated with siphons,
    pumps, headgates, wingwalls, wiers,
    diversion structures, and such other
   facilities as are appurtenant and
   functionally related to irrigation  ditches
   are included in this exemption.
     (4) Construction of temporary
   sedimentation basins on a construction
   site which does not include placement of
   fill material into waters of the United
   States. The term "construction site"
  refers to any site involving the erection
  of buildings, roads, and other discrete
  structures and the installation of support
  facilities necessary for construction and
  utilization of such structures. The term
 • also includes .any other land areas
  which involve land-disturbing
  excavation activities, including
  quarrying or other mining activities,  •
  where an increase in the runoff of
  sediment is controlled through the use of
  temporary sedimentation basins.
    (5) Any activity with respect to which
  a State has an approved program under
  Section 208(b](4) of the Act which meets
  the requirements of Section 208(b)(4)fB)
  and (C).    "                         '
    (6) Construction or maintenance of
  farm roads, forest roads, or temporary
  roads for moving mining equipment,
  where such roads are constructed and
  maintained in accordance with best
  management practices (BMPs) to assure
  that flow and circulation patterns and
 chemical and biological characteristi 3
 of waters of the United States are not"
 impaired, that the reach of the waters of
 the United States is not reduced, and
 that any adverse effect on the aquatic
 environment will be otherwise
 minimized. The BMPs which must be
 applied to satisfy this provision include
 the following baseline provisions:
   (i) Permanent roads (for farming or
 forestry activities), temporary access
 roads (for mining, forestry, or farm
 purposes) and skid trails (for losing) in
 waters of the United States shall be held
 to the  minimum feasible number, width,
 and total length consistent with the
 purpose of specific farming, silvicultural
 or mining operations, and local-
 topographic and climatic conditions;
  • (ii) All roads, temporary or         •'
permanent, shall be located sufficiently
  .  far from streams or other water bodies
    (except for portions of such roads which
    must cross water bodies) to minimize
    discharges of dredged or fill material
    into waters of the United States;
      (iii) The road fill shall be bridged,
    culverted, or otherwise designed to  •
    prevent the restriction of expected-flood
    flows;
    '.  (iv) The fill shall be properly
    stabilized and maintained to prevent
    erosion during and following
    construction;                           .
      (v) Discharges of dredged or fill
    material into waters of the United States
    to construct a road fill shall  be made in
    a manner that minimizes the
    encroachment of trucks, tractors,
    bulldozers, or other heavy equipment  "
    within the waters pf the United States
   (inpluding adjacent wetlands) that lie
   outside the lateral boundaries of the fill
   itself;
     (yi) In designing, constructing, and
  maintaining roads, vegetative
  disturbance in the waters of the United
  States shall be kept to a minimum;
    (vii) The design, construction and
  maintenance of the road crossing shall
  not disrupt the migration or other
  movement of those species of aquatic
  life inhabiting the water body;
    (v}ii) Borrow material shall be taken
  from upland sources whenever feasible;
    (ix) The discharge shall not take, or
  jeopardize the continued existence of, a
  threatened or endangered species as
  defined under the Endangered Species
.  Act, or adversely modify or destroy the
  critical habitat of such species;
    (x) Discharges into breeding and
  nesting areas for migratory waterfowl,
  spawning areas, and wetlands shall be
  avoided if practical alternatives exist;
  .  (xi) The discharge shall not be located
  in the proximity of a public water supply
  intake;     ,                 .
    (xii) The discharge shall not occur in  .
  areas of concentrated shellfish
  production;
    (xiii) The discharge shall not occur in
  a component of the National Wild and
  Scenic River System;
   (xiv) The discharge of material shall
 consist of suitable material free from
 toxic pollutants in toxic amounts; and
   (XV) All temporary fills shall  be    -
 removed in their entirety and the area
 restored to its original elevation.
  (d) For purpose of paragraph  (c)(l) of
 this section, cultivating, harvesting,
 minor drainage, plowing, and seeding
 are defined  as follows:
  (1)  Cultivating means physical
 methods of soil treatment employed  '   '
.within established farming, ranching
and silviculture lands on farm, ranch, or

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20776
                                                                         6-  1988 /  Rules and Regulations
 forest crops to aid and improve their
 growth, quality, or yield.
   (2) Harvesting means physical
 measures employed directly upon farm,
 forest, or ranch crops within established
 agricultural and silvicultural lands to
 bring about their removal from farm,
 forest, or ranch land, but does not
 Include the construction of farm, forest,
 or ranch roads.
   (3)(i) Minor drainage means:
   (A) The discharge of dredged or fill
 material incidental to connecting  upland
 drainage facilities to waters of the
 United States, adequate to effect the
 removal of excess soil moisture from
 upland croplands. Construction and
 maintenance  of upland (dryland)
 facilities, such as ditching and tiling,
 incidental to the planting, cultivating,
 protecting, or harvesting of crops,
 involve no discharge of dredged or fill
 material into waters of the United
 States, and as such never require a
 Section 404 permit;
   (B) The discharge of dredged or fill
 material for the purpose of installing
 ditching or other water control facilities
 Incidental to planting, cultivating,
 protecting, or harvesting of rice,
 cranberries or other wetland crop
 species, where these activities and the
 discharge occur in waters of the United
 States which are in established use for
 such agricultural and silvicultural
 wetland crop production;
   (C) The discharge of dredged or fill
 material for the purpose  of manipulating
 the water levels of, or regulating the
 flow or distribution of water within,
 existing impoundments which have been
 constructed in accordance with
 applicable requirements  of the Act, and
 which are in established use for the
 production or rice, cranberries, or  other
 wetland crop species.
  [Note.—The provisions of paragraphs
 {d){3J(i) (B) and (C) of this section apply to
 areas that are In established use exclusively
 for wetland crop production as well as areas
 in established use for conventional wetland/
 non-welland crop rotation (e.g., the rotations
 of rice and soybeans) where such rotation
 results in the cyclical or intermittent
 temporary dewalering of such areas.]
   (D) The discharge of dredged or fill
 material incidental to the emergency
removal of sandbars, gravel bars, or
 other similar blockages which are
 formed during flood flows or other
events, where such blockages  close or
constrict previously existing
drainageways and, if not promptly
removed, would result in damage to or
loss  of existing crops or would impair or
prevent the plowing, seeding, harvesting
or cultivating of crops on land in
established use for crop production.
Such removal does not include enlarging
                                         or extending the dimensions of, or
                                         changing the bottom elevations of, the
                                         affected drainageway as it existed prior
                                         to the formation of the blockage.
                                         Removal must be accomplished within
                                         one year after such blockages are
                                         discovered in order to be eligible for
                                         exemption.
                                           (ii) Minor drainage in Waters of the
                                         United States is limited to drainage
                                         within areas that are part of an
                                         established farming or silviculture
                                         operation. It does not include drainage
                                         associated with the immediate or
                                         gradual conversion of a \yetland to,a
                                         non-wetland (e.g., wetland species to
                                         upland species not typically adequate to
                                         life in saturated soil conditions), or
                                         conversion from one wetland use to
                                         another (for example, silviculture to
                                         farming).
                                          In addition, minor drainage does not
                                         include the construction of any canal,
                                         ditch, dike or other waterway or
                                         structure which drains or otherwise
                                        significantly modifies a stream, lake,
                                        swamp, bog or any other wetland or
                                        aquatic area constituting waters of the
                                        United States. Any discharge of dredged
                                        or fill material into the waters of the
                                        United States incidental to the
                                        construction of any such structure or
                                        waterway requires a permit.
                                          (4) Plowing means all forms of
                                        primary tillage, including rholdboard,
                                        chisel, or wide-blade plowing, discing,
                                        harrowing, and similar physical means
                                        used on farm, forest or ranch land for
                                        the breaking up, cutting, turning over, or
                                        stirring of soil to prepare it for the,
                                        planting of crops. Plowing does not
                                        include the redistribution of soil, rock,
                                        sand, or other surficial materials in a
                                        manner which changes any area of the
                                        waters of the United States to dryland.
                                        For example, the redistribution of
                                        surface materials by blading, grading, or
                                        other means to fill in wetland areas is ,
                                        not plowing. Rock crushing activities
                                        which result in the loss of natural
                                        drainage characteristics, the reduction
                                        of water storage and recharge
                                        capabilities, or the overburden of
                                        natural water filtration capacities do not
                                        constitute plowing. Plowing, as
                                        described above, will never involve a
                                        discharge  of dredged or fill material.
                                          (5) Seeding means the sowing of seed
                                        and placement of seedlings to produce
                                        farm, ranch, or forest crops and includes
                                        the placement of soil beds,for seeds or
                                        seedlings on established farm and forest
                                        lands.                        . ,
                                          (e) Federal projects which qualify
                                        under the  criteria contained in Section
                                        404(r) of the Act are exempt from
                                        Section 404 permit requirements, but
                                        may be subject to other State or Federal
                                        requirements.
   2. Authority citation for Part ".33
 continues to read as follows:

   Authority: 33 U.S.C. 1344.

   3. Part 233 is amended by revising.
 Subparts A, B, C, E, and F and by
 redesignating Subpart D as G and the
 section number is changed from "233.42"
 to "233.60" and by adding a new
 Subpart D to read as follows:

 PART 233-404 STATE PROGRAM
 REGULATIONS

 Subpart A—General

 Sec.                          •   ,
 233.1. Purpose and scope.
 233.2 Definitions.
 233.3 Confidentiality of information.
 233.4 Conflict of interest.

 Subpart B—Program Approval
 233.10   Elements of a program submission.
 233.11   Program description.
 233.12   Attorney General's statement.
 233.13   Memorandum of Agreement with
    Regional Administrator.
 233.14   Memorandum of Agreement with the
    Secretary.
 233.15   Procedures for approving State
    programs.
 233.16   Procedures for revision of State
    programs.

 Subpart C—Permit Requirements
 233.20  Prohibitions.        , '
 233.21  General permits.
 233.22  Emergency permits.
 233.23  Permit conditions.

 Subpart D—Program Operation
 233.30  Application for a permit.
 233.31  Coordination requirements.
 233.32  Public notice.
 233.33  Public hearing.
 233.34  Making a decision on the permit
    application.
 233.35  Issuance and effective date of permit.
 233.36  Modification, suspension or
    revocation of permits.
 233.37  Signatures on permit applications
    and  reports.
 233.38  Continuation of expiring permits.

 Subpart  E—Compliance Evaluation and
 Enforcement                     .
233.40 Requirements for compliance
   evaluation programs.  •
233.41 Requirements for enforcement
   authority.

Subpart  F—Federal Oversight
233.50 Review of and objection to State
   permits.
233.51 Waiver of review.
233.52 Program reporting.
233.53 Withdrawal of program approval.
Subpart A—General

§ 233.1  Purpose and scope.
  (a) This Part specifies the procedures
EPA will follow, and the criteria EPA
                                                                                                                                   I/

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                                                                                                                  20777
  will apply, in approving, reviewing, and ,
  withdrawing approval of State programs
  under Section 404 of the Act.
    (b) Except as provided in § 232.3, the
  State program miist regulate all
  discharges of dredged or fill material
  into State regulated waters. Partial State
  programs are not approvable under
  Section404. A State's decision'not to
  assume existing Corps general permits
  does not constitute a partial program.
  The discharges previously authorized by
  general permit will be regulated by State
.  individual permits. However, in many
  pases States  will lack authority to
  regulate activities  on Indian lands. This ;'
  lack of authority does not impair a
  State's ability to obtain full program
  approval in accordance with this Part,
  i.e., inability  of a State to regulate
  activities on Indian lands does not
  constitute a partial program. The
  Secretary will administer the program
  on Indian lands if the State does not
  have authprity to regulate activities on
  Indian lands.
   (c) Nothing in this Part precludes a
 State from adopting or enforcing
 requirements which are more stringent ,
 or from operating a program with
 greater scope, than required under this.
 Part. Where an approved State program
 has a greater scope than required by
 Federal law, the additional coverage is
 not part of the Federally, approved
 program and  is not subject to Federal
 oversight or enforcement.
   Note.;—State assumption of the Section.404
 program is limited to  certain waters, as
 provided in section 404(g)'(l). The Federal
 program operated by  the Corps of Engineers ,
 continues to apply to  the remaining waters in
 the State even after program approval.
 However, this does not restrict States from
 regulating discharges of dredged or fill
.material into those waters over which the
 Secretary retains Section 4O4 jurisdiction.
   (d) Any approved State Program shall,
 at-all times, be conducted in accordance
 with their'- > iirements of the Act and,of
 this Part. VVhile States may impose-more
 stringent'requirements, they may not
 impose any less stringent requirements
 for any purpose.       ,.  '

 §233.2  Definitions.
   The definitions in Parts 230 and 232 as
 well as the following definitions apply
 to this Part.
   (a) Act means the Clean Water Act
 (33 ILS.C. 1251 et seq.).
  ,(b) Corps means  the U.S. Army Corps
 of Engineers.
   (c) FVVS means the U.S. Fish and    :
 Wildlife Service. ,
   (d) Interstate agency means an agency
of two or more States established by or
under an agreement or compact
approved by the Congress, or any other
   agency-of two or more States having
   substantial powers or duties pertaining
   to the control of pollution.  *"     ,
    (e) NMFS means the National Marine
   Fisheries Service.
   • (f) State means any of the 50 States,
   the District of Columbia, Guam, the
   Commonwealth of Puerto Rico, the
   Virgin Islands, American Samoa, the
   Commonwealth of the Northern Mariana
   Islands, and the Trust Territory of the '
 'Pacific Islands. For purposes of this
  regulation,  the word State also includes
  any interstate agency requesting
  program approval or administering an
  approved program.-
    (g) State Director [Director] means the
  chief administrative officer of any State
  or interstate agency operating an
  approved programmer the delegated
  representative of the Director. If
  responsibility is divided among two or
  more State or interstate agencies,'
  Director means the chief administrative
  officer of the State or interstate agency
  authorized to perform the particular
  procedure or function to which reference
  is made.     •       '"•'".
    (h) State 404 program or State   ,  "
 program; means a State program which
 has been approved by EPA under
 Section 404 of the Act to regulate the
 discharge of dredged or fill material into
 certain-waters as defined in § 232.2(p).

 § 233.3  Confidentiality of information.
 .;  (a) Any information submitted to EPA
 pursuant to these regulations may be
 claimed as confidential by the submitter
 at the time of submittal and a final
 determination as to that claim will be
 made in accordance with the procedures
 of 40 CFR Part 2 and paragraph (c) of
 •this section.
    (b) Any information submitted to the
 Director may be claimed as confidential
 in accordance with State law, subject to
 paragraphs {a} and (c) of this section.
    (c) Claims of confidentiality for the   '
 following information will be denied:
    (1) The name, and address of any
 permit applicant or permittee,
    (2) Effluent data,   .
    (3) Permit  application, and
   (4) Issued  permit.

 § 233.4 Conflict of Interest
                        \
   Any public officer or employee who
 has a'direct personal or pecuniary
 interest in any matter that is subject to  •
 decision by the agency shall make
, known such  interest in the'official
 records of the agency and shall refrain
 from participating in any manner in such
 decision.       :
  Subpart B—Program Approval

  § 233.10 Elements of a program
  submission.
    Any State that seeks to administer a
  404 program under this Part shall submit
  to the Regional Administrator at least
  three-copies .of the following:
    (a] A letter from the Governor of the
  State requesting program approval.
    (b] A complete program description,,
  as set forth in § 233.11.
    (c) An Attorney General's statement,
  as. set forth in § 233.12.        ,,
   (d) A Memorandum of Agreement
  with the Regional Administrator, as set
  forth in § 233.13.
   (e) A Memorandum of Agreement
  with the Secretary, as set forth in
  § 233.14.
   (f) Copies of all applicable State
  statutes and regulations, including those
  governing applicable State
  administrative procedures,

  §233.11  Program description.
   The program description as required
  under § 233.10 shall include:
   (a) A description of the scope and
  structure of the State's program. The
 description should include extent.of
 State's jurisdiction, scope of activities
 regulated, anticipated coordination,
 scope of permit exemptions if any, and
 permit review criteria;
   (b) A description of the State's
. permitting, administrative, judicial
 review, and other applicable
 procedures; „
   (c) A description of the basic
 organization and structure of the State
 agency (agencies) which will have
 responsibility for administering the
 program. If more than one State agency
 is responsible for the administration of
 the program; the description shall
 address the responsibilities of each
 agency and how the agencies intend to
.coordinate administration and
 evaluation'of the program;
 .  (d) A description of the funding and
 manpower which will be available for
 program administration;   . '     •  •
   (e) An estimate of the ant:.cipated
 workload, e.g., number of dischargei.
  . (f) Copies of permit application forms,
 permit forms, and reporting forms;
   (g) A description of the State's
 compliance evaluation and enforcement
 programs, including a description of how
-the State will coordinate its enforcement
 strategy with that of the Corps and EPA;
  (h) A description of the waters of the
 United States within a State over which
 the State assumes jurisdiction under the
 approved program; a description of the
 waters of the United States within a
 State over which the Secretary retains

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  20778
Vol. 53, No.  108 / Monday,  June 6,  1988 /  Pules and Regulations
 jurisdiction subsequent to program
 approval; and a comparison of the State
 and Federal definitions of wetlands.
   Noto.—Stales should obtain from the
 Secretary an identification of {hose waters of
 the U.S. within the State over which the
 Corps retains authority under Section 404(g)
 of the Act.
   (i) A description of the specific best
 management practices  proposed to be
 used to satisfy the exemption provisions
 of Section 404(f){l)(E) of the Act for
 construction or maintenance of farm
 roads, forest roads, or temporary roads
 for moving mining equipment.
 § 233.12 Attorney General's statement
   (a) Any State that seeks to administer
 a program under this Part shall submit a
 statement from the State Attorney
 General (or the attorney for those State
 or interstate agencies which have
 independence legal counsel), that the
 laws and regulations of the State, or an
 interstate compact, provide adequate
 authority to carry out the program and
 meet the applicable requirements of this
 Part. This statement shall cite specific
 Statutes and administrative regulations
 which are lawfully adopted at the time
 the statement is signed  and which shall
 be fully effective by the time the
 program is approved, and, where
 appropriate, judicial decisions which
 demonstrate adequate authority. The
 attorney signing the statement required
 by this section  must have authority to
 represent the State agency in court on
 all matters pertaining to the State
 program.
  (b) If a Stale  seeks approval of a
 program covering activities on Indian
 lands, the statement shall contain an
 analysis of the  State's authority over
 such activities.
  (c) The State Attorney General's
 statement shall contain  a legal analysis
 of the effect of State law regarding the
 prohibition on taking private property
 without just compensation on the
 successful implementation of the State's
 program.
  (d) In those States where more than
 one agency has responsibility for
 administering the State program, the
 statement must include certification that
 each agency has full authority to
 administer the program  within its
 category of jurisdiction and that the
 State, as a whole, has full authority to
 administer a complete State Section 404
 program.
 § 233.13  Memorandum of Agreement with
 Regional Administrator.
  (a) Any State that seeks to administer
a program under this Part shall submit a
Memorandum of Agreement executed by
 the Director and the Regional
      Administrator. The Memorandum of
      Agreement shall become effective upon
      approval of the State program. When
      more than one agency within a State has
      responsibility for administering the
      State program. Directors of each of the
      responsible State agencies shall be
      .parties to the Memorandum of
      Agreement.
        (b) The Memorandum of Agreement
      shall set out the State and Federal
      responsibilities for program
      administration and enforcement. These
      shall include, but not be limited to:
        (1) Provisions specifying classes and
      categories of permit applications for
      which EPA will waive Federal review
      (as specified in § 233.51).
        (2) Provisions specifying the frequency
      and content of reports, documents and
      other information which the State may
      be required to submit to EPA in addition
      to the annual report, as  well as a
      provision establishing the submission
      date for the annual report, The State
      shall also allow EPA routinely to'review
      State records, reports and files relevant
      to the administration and enforcement
      of the approved program.
       (3) Provisions addressing EPA and
      State roles and coordination with
      respect to compliance monitoring and
      enforcement activities.
       (4) Provisions addressing modification
      of the Memorandum of Agreement.

      § 233.14  Memorandum of Agreement with
      the Secretary.
       (a) Before a State program is approved
      under this Part, the Director shall enter
      into a Memorandum of Agreement with
      the Secretary. When more than one
      agency within a State has responsibility
     for administering the State, program,
     Directors of each of the responsible
     agencies shall.be parties of the
     Memorandum of Agreement.
       (b) The Memorandum of Agreement
     shall include:
       (1) A description of waters of the
     United States within the State over
     which the Secretary retains jurisdiction,
     as identified by the Secretary.
       (2) Procedures whereby the Secretary
     will, upon program approval, transfer to
     the State pending 404 permit
     applications for discharges in State
     regulated waters and other relevant
     information not already  in the
     possession of the Director.
       Note.—Where a State permit program
     includes coverage of those traditionally
     navigable waters in which only the Secretary
     may issue Section 404 permits, the State is
     encouraged to establish in this MOA
     procedures for joint processing of Federal
     and State permits, including jd.nt public
     notices and public hearings
    (3) An identification of all general
  permits issued by the Secretary the
  terms and conditions of which the State
  intends to administer and enforce upon
  receiving approval of its program, and a
  plan for transferring responsibility for
  these general permits to the State,
  including procedures for the prompt
  transmission from the Secretary to the
  Director of relevant information not
  already in the  possession of the
  Director, including support files for
  permit issuance, compliance reports and
  records of enforcement actions.

  § 233.15 Procedures for approving State
  programs.
   (a) The 120 day statutory review
  period shall commence on the date of
  receipt of a complete State program
  submission as  set out in § 233.10 of this
  Part. EPA  shall determine whether the
  submission is complete within 30 days
 of receipt of the submission  and shall
 notify the State of its determination. If
 EPA finds that a  State's submission is
 incomplete, the statutory review period
 shall not begin until all the necessary
 information is received by EPA.
   (b) If EPA determines the State
 significantly changes its submission
 during the review period, the statutory
 review period shall begin again upon the
 receipt of a revised submission.
   (c) The State and EPA may extend the
 statutory review period-by agreement.
   (d) Within 10 days of receipt of a
 complete State  Section 404 program
 submission, the Regional Administrator
 shall provide copies of the State's
 submission to the Corps, FWS, and
 NMFS (both Headquarters and
 appropriate Regional  organizations.)
   (e) After determining that a State
 program submission .Is complete, the
 Regional Administrator shall publish
 notice of the State's application in the
 Federal Register and in enough of the
 largest newspapers in the State to
 attract statewide attention. The
 Regional Administrator shall also mail
 notice to persons known to be interested
 in such matters. Existing State, EPA,
 Corps, FWS, and  NMFS mailing lists
 shall be used as a basis for this mailing.
 However, failure  to mail  all such notices
 shall not be grounds for invalidating
'approval (or disapproval) 6f  an
 otherwise acceptable  (or unacceptable)
 program. This notice shall:
  (1) Provide for a comment period of
 not less than 45 days during which
 interested members of the .public may
 express their views on the State
 program.
  (2) Provide for a public hearing within
 the State to be held not less than 30

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                                               No.108  /  Monday, June  6, 1988 / Rules and Regulations        20779
                                               Tiinnniiiiiiimiiimi \\i\m\ mi i .in	•m.n I~-,.I'.-IM,-I-,	:	    *-*    •            **\*f i \j
   days after notice of hearing is published
   in the Federal Register;
     (3) Indicate where and when the
   State's submission may be reviewed by
   the public;
     (4) Indicate whom an interested
   member of the public with questions
  . should,contact; and
     (5) Briefly outline the fundamental
   aspects of the State's proposed program
   and the process for EPA review and
   decision.                   .  .   ,
     (f) Within 90 days of EPA's receipt of
   a complete program submission, the
   Corps, FWSi and NMFS shall submit to
•   EPA any comments on the State's
   program.1
    (g) Within 120 days of receipt of a
   complete program submission (unless an
   extension is agreed to by the  State), the
   Regional Administrator shall  approve or
   disapprove the program based'on „
   whether the State's program fulfills the
   requirements of this Part  and  the Act,
   taking intp consideration all comments  •
  received. The Regional Administrator
  shall prepare a responsiveness summary
  of significant comments received and his
  .response to these comments. The
  Regional Administrator shall respond
  individually to, comments received from
  the Corps, FWS, and NMFS.       .   •
    (h) If the Regional Administrator
  approves the State's Section 404
  program,  he shall notify the State and
  the Secretary of the decision and
 * publish notice in the Federal Register.
  Transfer of the program to the State
  shall not be considered effective until
  such notice appears in the Federal
  Register. The Secretary shall suspend
  the issuance by the Corps of Section 404
  permits in State regulated waters on
  such effective date.
   (i) If the Regional Administrator
  disapproves the State's program based
  on the State not meeting the
 requirements of the Act and this Part,
  the Regional Administrator shall notify
 the State of the reasons for the
 disapproval and of any revisions or
 modifications to the State's program •
 which are necessary to obtain  approval.
 If the State fesubmits a program
 submission remedying the identified -
 problem areas, the approval procedure
 and statutory review period shall begin
 upon receipt.of thb.revised submission.

 § 233,16 Procedures for revision of State
 programs.
   (a) The State shall keep  the Regional
 Administrator fully informed of any
 proposed,or actual changes to the
 State's statutory or regulatory authority
 or any other modifications which are •
 significant to administration of the
 program.
     (b) Any approved program which
   requires revision because of'a
   modification to this Part or to, any other
   applicable Federal statute or regulation
   shall be revised within one year of the
   date of promulgation of such regulation,
   except that if a State must amend or
   enact a statute in order to make the
   required revision, the revision shall take
   place within .two years.
     fc) States with approved programs
   shall notify the Regional Administrator
   whenever they propose to transfer all or
   part of any program from the approved
   State agency to any other State agency,
   The new agency is not authorized to
   administer the program until approved
   by the Regional Administrator under
   paragraph (d) of this section.
     (d) Approval of revision •of a State
   program shall be accomplished as
   follows:
     (1) The Director shall submit a
  modified program description or other;
  documents which the Regional
  Administrator determines to be
  necessary to evaluate whether the
  program complies with the requirements
  of the Act and this Part.
    (Z) Notice of approval of program
  changes which are not substantial
  revisions may be given by letter from
  the Regional Administrator to the
  Governor or his designee.
    (3J Whenever the Regional
  Administrator determines that the
:  proposed revision is substantial, he shall
  publish and circulate notice to those
  persons known to be interested in such
  matters, provide opportunity for a public
  hearing, and consult with the Corps,
  FWS, and NMFS,The Regional
  Administrator shall approve or
  disapprove program  revisions based on
  whether the program fulfills  the
«  requirements of the Act and this Part,
  and shall publish notice of his decision
  in the Federal Register. For purposes of
  this paragraph, substantial revisions
  include, but are.not,limited to, revisions
  that affect the area 'of jurisdiction, scope
  of activities regulated, criteria for
 review of permits, public participation,
 or enforcement capability.     -     •
   (4) Substantial program changes shall
 become effective upon approval by the
 Regional Administrator and publication
 of notice in the Federal Register.
   (e) Whenever the Regional
Administrator has reason to believe that
circumstances have changed with
respect to a State's program,  he may
request and the State shall provide a
supplemental Attorney General's
statement, program description, or such
other documents  or information'as are
necessary to evaluate the program's
compliance with  the requirements of the
Act-and this Part.              "    ,
   Subpart C—Permit Requirements

   § 233.20  Prohibitions.
     No permit shall be issued by the
   Director in the following circumstances:
     (a) When permit does not comply with
   the requirements of the Act or
   regulations thereunder, including the
   Section 404(b)(l) Guidelines (Part 230 of
   this Chapter).
    (b) When the Regional Administrator
   has objected to issuance of the permit
   under § 233.50 and the objection has not
   been resolved.        -^
    (c) When the proposed discharges
   would be in an area which has been
  prohibited, withdrawn, or denied as a
  disposal site by the Administrator under
  Section 404(c) of the Act, or when the
 -discharge would fail to_ comply with a
  restriction imposed thereunder.
    (d) If the Secretary determines, after
  consultation with the Secretary of the
  Department in which the Coast Guard is
  operating, that  anchorage and
  navigation of any of the navigable
  waters would be  substantially impaired.

  § 233.21  General permits.
    (a) Under Section 404(h)(5)bf the Act,
  States may, after program approval,
 administer and enforce general permits
 previously issued by the Secretary in
 State regulated Waters.
   Note: If States intend to assume existing
 general permits, they must be able  to ensure   '
 compliance with existing permit conditions  '
 an any reporting monitoring, or       .
 prenotification requirements.
   (b) The Director may issue a general
 permit for categories of similar activities
 if he determines that the regulated
 'activities willcause only.minimal
 adverse environmental effects when
 performed separately and will have only
, minimal cumulative adverse effects-on
 the environment. Any general permit
 issued shall be in'compliance with the
•Section 404(b)[l) Guidelines. •
   (c) In addition to the conditions
 specified in § 233.23, each general
 permit shall contain:
   (1) A specific description of the
 type(s) of activities which are
 authorized, including limitations for any
 single operation. The description shall
 be detailed enough to ensure that the
 requirements of paragraph (b) of this
 section are met.  (This paragraph
.supercedes § 233.23(c)(l) for general
 permits;) '.              •  '      ••    .   •
   (2) A precise description of the
 geographic area  to which the general
 permit applies,Including limitations on
 the type(s) of water where operations
 may be conducted sufficient to ensure
 that the requirements of paragraph (b) of
 this section are met.

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    (dj Predischarge notification or other
  reporting requirements may be required
  by the Director on a permit-by-permit   •
  basis as appropriate to ensure that the
  general permit will comply with the
  requirement (section 404(e) of the Act)
  that the regulated activities will cause
  only minimal adverse environmental
  effects when performed separately and
  will have only minimal cumulative
  adverse effects on the environment.
   (e) The Director may, without
  revoking the general permit, require any
  person authorized under a general
  permit to apply for an individual permit.
  This discretionary authority will be
  based on concerns for the aquatic
  environment including compliance with
  paragraph (b) of this section and the
 4Q4(b)(l) Guidelines (40 CFR Part 230.)
   (1) This provision in no way affects
«Ihe legality of activities undertaken
 pursuant to the general permit prior to
 notification by the Director of such
 requirement.
   (2) Once the Director notifies the
 discharger of his decision to exercise
 discretionary authority to require an
 Individual permit, the discharger's
 activity is no longer authorized by the
 general permit.

 § 233.22  Emergency permits.
   (a) Notwithstanding any other
 provision of this Part, the Director may
 issue a temporary emergency permit for
 a discharge of dredged or fill material if
 unacceptable harm to life or severe loss
 of physical property is likely to occur
 before a permit could be issued or
 modified under procedures normally
 required.
  (b) Emergency permits shall
 incorporate, to the extent possible and
 not inconsistent with the emergency
 situation, all applicable requirements of
 § 233.23.
  (1) Any emergency permit shall be
limited to the duration of time (typically
no more lhaii 90 d^jS] required to
complete the authorized emergency
action.
  (2) The emergency permit shall have a
condition requiring appropriate
restoration of the site.
  (c) The emergency permit may be
terminated at any time without process
{§ 233.38) if the Director determines that
termination is necessary to protect
human health or the environment.
  (d) The Director shall consult in an
expeditious manner, such as by
telephone, with the Regional
Administrator, the Corps, FWS, and
NMFS about issuance of an emergency
permit.
  (e) The emergency permit may be oral
or written. If oral, it must be followed
within Ł days by a written emergency
                  permit. A copy of the written permit
                  shall be sent to the Regional
                  Administrator.
                    (f) Notice of the  emergency permit
                  shall be published and public comments
                  solicited in accordance with § 233.32 as
                  soon as possible but no later than 10
                  days after the issuance date.

                  § 233.23  Permit conditions.
                   (a) For each permit the Director shall
                  establish conditions which assure
                  compliance with all applicable statutory
                  and regulatory requirements, including
                 the 404{b)(l) Guidelines, applicable
                 Section 303 water quality standards, and
                 applicable Section  307 effluent
                 standards and prohibitions.
                   (b) Section 404 permits  shall be
                 effective for a fixed term not to exceed 5
                 years.
                   (c) Each 404 permit shall include
                 conditions meeting or implementing the
                 following requirements:
                   (1) A specific identification and
                 complete description  of the authorized
                 activity including name and address of'
                 permittee,  location  and purpose of
                 discharge,  type and quantity of material
                 to be discharged. (This subsection is not
                 applicable to general permits).
                   (2) Only the activities specifically
                 described in the permit are authorized.
                   (3) The permittee  shall comply with all
                 conditions  of the permit even if that
                 requires halting or reducing the
                 permitted activity to maintain
                 compliance. Any permit violation
                 constitutes a violation of the Act as well
                 as of State  statute and/or regulation.
                  (4) The permittee  shall take all
                reasonable steps to  minimize or prevent
                any discharge in violation of this permit.
                  (5) The permittee  shall inform the
                Director of any expected or known
                actual noncompliance.
                  (6) The permittee"  shall provide such
                information to the Director, as the
                Director requests, to determine
                compliance status, or whether cause
                exists for permit modification,
                revocation  or termination.
                  (7) Monitoring, reporting and
                recordkeeping requirements as needed
                to safeguard the aquatic environment.
                (Such requirements will be determined
                on a case-by-case basis, but at a
                minimum shall include monitoring and
                reporting of any expected leachates,
                reporting of noncompliance, planned
                changes or  transfer of  the permit.)
                  (8) Inspection and entry. The
                permittee shall allow the Director, or his
                authorized representative, upon
                presentation of proper identification, at
                reasonable  times to:
                  (i) Enter upcjn the permittee's premises
                where a regulated activity is located or
  where records must be kept under the
  .conditions of the permit,
    (ii) Have access to and copy any
  records that must be kept under the
  conditions of the permit,
    (iii) Inspect operations regulated or
  required under the permit, and
    (iv) Sample or monitor, for the  -
  purposes of assuring permit compliance
  or as otherwise authorized by the Act,
  any substances or parameters at any
  location.                              '
    (9) Conditions assuring that the
  discharge will be conducted  in a manner
  which minimizes adverse impacts upon
  the physical, chemical and biological
  integrity of the waters of the United
  States, such as requirements for
  restoration or mitigation.

  Subpart D—Program Operation

-  § 233.30  Application for a permit,
   (a) Except when an activity is
  authorized by a general permit issued
 pursuant to §  233.21 or is exempt from
 the requirements to obtain a permit
 under § 232.3, any person who proposes '
 to discharge dredged or fill material into
 State regulated waters shall complete,
 sign and submit a permit application to
 the Director. Persons proposing to
 discharge dredged or fill materialunder
 the authorization of a general permit
 must comply with any reporting
 requirements of the general permit.
  (b) A complete application  shall
 include:          x
  (1) Name, address, telephone number
of the applicant and name(s) and
address(es)  of adjoining property
owners.               "    ,  •
  (2) A complete description of the
proposed activity including necessary
drawings, sketches or plans sufficient
for public notice (the applicant is not
generally expected to submit detailed
engineering plans and specifications);
the location, purpose and intended use
of the proposed activity; scheduling of
the activity;  the location and dimensions
of adjacent structures; and a list of
authorizations required by other
Federal, interstate, State or local
agencies for the work, including all
approvals received or denials already
made.
  (3) The application must include a
description of the type, composition,
source and quantity of the material to be
discharged, the method of discharge,
and the site and plans for disposal of the
dredged or fill material.
  (4) A certification that all information
contained in the application is true and
accurate and acknowledging awareness
of penalties for submitting false
information.                     ,.

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                                               No. 108 /Monday, June 6,  1988 /  Rules and Regulations        20781
     (5) All'activities which the applicant
   plans to undertake which are     '
   Reasonably related to the same project
   should be included in the same permit
   application.      f
   -  (c) In addition to the information
   indicated in § 233.30(b), the applicant   •
   will be required to furnish such
   additional information as the Director
   deems appropriate to assist in the
   evaluation of the application. Such
   additional information may include
   environmental data and information on
   alternate methods and sites as may be
   necessary for the .preparation of the
   required environmental documentation.
    (d) TKe level of detail shall be
  reasonably commensurate with the type
  and size of discharge, proximity to
  critical  areas, likelihood of long-lived
  toxic chemical substances, and potential
  level of environmental degradation.
    Note: EPA encourages States  to provide
  permit applicants guidance regarding the-
  level of detail of information and,          '
  documentation required under this
  subsection. This guidance can be provided
  either through the application form or on an
  individual basis, EPA also encourages the
  State to maintain a program to inform
  potential applicants for permits  of the
  requirements of the State program and of the
  steps required to obtain permits for activities
  in State regulated waters.

  § 233.31   Coordination requirements.
    [a) If a proposed discharge may affect
  the biological, chemical, or physical
  integrity of the waters of any State(s)
  other than the State in which the
  discharge occurs, the Director shall
  provide  an opportunity for such State(s)
  to submit written comments within the
  public comment period and to suggest
  permit conditions. If these
  recommendations are not accepted by  '
  the Director, he shall  notify the affected
  State and the Regional Administrator
  prior to permit issuance in writing, of his
  failure to accept-these
  recommendations, together with his
.  reasons for so doing. The Regional
  Administrator shall then have the time
  provided for in § 23,3.50(d) to comment
  upon, object to, or make
  recommendations.
   (b) State Section 404 permits shall be
  coordinated with Federal and Federal-
  State water related planning  and review
  processes.

  §233.32  Public notice.
   (a) Applicability.
   (1) The Director shall give public
  notice of the .following actions:      '
   (i) Receipt of a permit application.
   (ii) Preparation of a draft general
  permit.
   (iii) Consideration of a major
 modification to an issued permit.
     (iv) Scheduling of a public hearing.
     (v) Issuance of an emergency permit.
     (2) Public notices may describe more
   than one permit or action.
     (b) Timing.         '          ;
     (1) The public notice shall provide a
 •  reasonable period of time/normally at
   least 30 days', within which interested
   parties may express their views
   concerning the permit application.
     (2)~ Public notice of a public hearing
   shall be given at least 30 days before the
   hearing.
     (3) The Regional Administrator may
   approve a program with shorter public
  notice timing if the Regional
  Administrator determines that sufficient'
  public notice is provided for.
    (c) The Director shall give public
  notice by each of the following methods:
    (1) By mailing a copy of the notice to
  the following persons (any person
  otherwise entitled to receive notice
  under this paragraph may waive his
  rights to receive notice for any classes
 ' or categories of permits):
    (i)  The applicant..
    (ii) Any agency with jurisdiction over
  the activity or the disposal site, whether
  or not the agency issues a permit.
    (iii) Owners of property adjoining the
  property where the regulated activity
  will occur.
    (iv) All persons who have specifically
  requested copies of public notices. (The
  Director may update the mailing list
  from  time to time by requesting written
  indication of continued interest from   ,
  those listed. The Director  may delete
 from  the list the name of any person
 who fails to respond to such a request.)
    (y)  Any State whose waters may be-
 affected by  the proposed discharge.
    (2) In addition, by providing notice in
 at least one  other way (such as
 advertisement in a newspaper of
 sufficient circulation) reasonably
 calculated to cover the area  affected by
 the activity.  '            ,
   (d)  All public notices shall contain at
 least the following information:.
   (l>The name and address of the
 applicant and, if different, the address
 or location of the activity(ies) regulated
 by the -permit.
.   (2) The name, address, and telephone
 number of a  person to contact for further
 information.
   (3) A brief description of the comment
 procedures and procedures to request a
 public hearing, including deadlines.
   (4) A brief description of the proposed
 activity, its purpose  and intended use,  "
 so as to'provide sufficient information
 concerning the nature of the activity to
 generate meaningful comments,
 including a description of the type of
 structures, if any, to be erected on fills,
 and a  description of the type.
  composition and quantity of materials to
  be discharged.
    (5) Ajplan and elevation drawing
  showing the general and specific site.
 . location and character of all proposed
  activities, including the size relationship
  of the proposed structures, to the.size of
  the impacted waterway  and depth of
  water in the area, -
    (6) A paragraph describing the various
  evaluation factors, including the  '
  404{b)(l) Guidelines or State-equivalent
  criteria, on which decisions are based.
    (7) Any other information which
  would significantly assist interested
  parties in evaluating the  likely impact of
  the proposed activity.
    (e) Notice of public hearing shall also
  contain the following information:
    (1) Time, date, and place of hearing.
    (2) Reference to the date of any
  previous public notices relating to the
  permit.
    (3) Brief description of  the nature and
  purpose of the hearing.

  §233.33  Public hearing.
    (a) Any interested person may request
  a public hearing during the public
 comment period as specified in § 233.32.
 Requests shall be in writing and shall
 state the nature of the issues proposed
 to be raised at the hearing.
   (b) The Director shall hold a public
 hearing whenever he determines there is
 a significant degree of public interest in
 a permit application 'or a draft general
 permit, He may also hold  a hearing, at_
 his discretion, whenever he detejmines
 a hearing may be useful to a decision on
 the permit application.
   (c) At a hearing, any person may
 submit oral or-written statements or
 data concerning the permit application
 or draft general permit. The public
 comment period shall automatically be
 extended to the close of any public
 hearing under this section. The presiding
 officer may also extend the comment
 period at the hearing.
   (d) All public hearings shall be
 reported verbatim. Copies of the record
 of proceedings maybe purchased by
 any person from the Director or the   .
 reporter of such hearing. A copy of the
 transcript (or if none is prepared, a tape
 of the proceedings) shall be made
 available for public inspection at an
 appropriate State office.

 § 233.34  Making a decision on the permit
application.    .           '    .        .
  (a) The Director will review all
applications for compliance with the
404(b)(l) Guidelines and/or equivalent
State environmental criteria as well as
any other applicable State laws or
regulations.

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  20782
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    (b) The Director shall consider all
  comments received in response to the
  public notice, and public hearing if a
  hearing is held. All comments, as well as
  the record of any public hearing, shall
  be made part of the official record on
  the application.
    (c) After the Director has completed
  his review of the application and
  consideration of comments, the Director
  will determine, in accordance with  the
  record  and all applicable regulations,
  whether or not the permit should be .
  issued. No permit shall be issued by the
  Director under the circumstances
  described in § 233.20. The Director shall
  prepare a written determination on  each
  application outlining his decision and
  rationale for his decision. The
  determination shall be dated, signed and
  included in the official record prior to
  final action on the application. The
  official  record shall be open to the
  public.

  § 233.35  Issuance and effective date of
  permit
   (a) If  the Regional Administrator
  comments on a permit application or
  draft general permit under § 233.50, the
  Director shall follow the procedures
 specified in that section in issuing the
 permit,
   (b) If the Regional Administrator does
 not comment on a permit application or
 draft general permit, the Director shall
 make a final permit decision after the
 close of the public comment period and
 shall notify the applicant.
  (1) If the decision is to issue a permit,
 the permit becomes effective when it is
 signed by the Director and  the applicant.
  (2) If the decision is to deny the
 permit, the Director will notify the
 applicant in writing of (hti reasonfs) for
 denial.

 § 233.36   Modification, suspension or
 revocation of permits.
  (a) Gener ' The Director may
 reevaluale the circumstances and
 conditions of a permit either on his own
 motion or at the request of the permittee
 or of a third party and initiate action to
 modify, suspend, or revoke a permit if
 he determines that sufficient cause
 exists. Among the factors to be
 considered are:
  (1) Permittee's noncompliance with
 any of the terms or conditions of the
 permit;
  (2) Permittee's failure in the
 application or during the permit
 issuance process to disclose fully all
 relevant  facts or the permittee's
 misrepresentation of any relevant facts
 •it the time:
  (3) Information that activities
authorized by a general  permit are   .
                                                                                                                             .1...
           having more than minimal individual or
           cumulative adverse effect on the
           environment, or that the permitted
           activities are more appropriately
           regulated by individual permits;
             (4) Circumstances relating to the
           authorized activity have changed since
           the permit was issued and justify
           changed permit conditions Or temporary
           or permanent cessation of any discharge
           Controlled by the permit;
             (5) Any significant information
           relating to the activity authorized by the
           permit if such information was not
           available at the time the permit was
           issued and would have justified the
           imposition of different permit conditions
           or denial at the time of issuance;
             (6) Revisions to applicable statutory
           or regulatory authority, including toxic
           effluent standards or prohibitions or
           water quality standards. •
           1  [b] Limitations. Permit modifications
           shall be in compliance with § 233.20.
             (c) Procedures. (1) The Director shall
           develop procedures to modify, suspend
           or revoke permits if he determines cause
           exists for such action (§ 233.36(a)). Such
           procedures shall provide opportunity for
           public comment {§ 233.32), coordination
           with the Federal review agencies
           (§  233.50), and opportunity for public
          hearing (§ 233.33) following notification
          of the permittee. When permit
          modification is proposed, only the
          conditions subject to modification need
          be reopened.
            (2) Minor modification of permits. The
          Director may, upon the consent of the
          permittee, use abbreviated procedures
          to modify a permit to make trie following
          corrections or allowance for changes in
          the permitted activity:
            (ij Correct typographical errors;
            (ii) Require more frequent monitoring
          or reporting by permittee;
            (iii) Allow for a change in ownership
          or operational control of a project or
          activity where the Director determines
          that no other change in  the permit is
          necessary, provided that a written
          agreement containing a specific date for
          transfer of permit responsibility,
          coverage, and liability between the
          current and new permittees has been
          submitted to the Director
           (iv) Provide for minor modification of
          project plans that  do not significantly
          change the character, scope, and/or
          purpos'e of the project or result in
          significant change in environmental
          impact;               '        ,
           (v)  Extend the term of a permit, so
          long as the modification does not extend
          the term of the permit beyond 5 years
          from its original effective date and does
          not result in any increase in the amount
          of dredged or fill material allowed to be
          discharged.           :
  § 233.37  Signatures on permit applications
  and reports.
    The application and any required
  reports must be signed by, the person  •
  who desires to undertake the proposed
  activity or by that person's duly
  authorized agent if accompanied by a
  statement by that person designating the
  agent. In either case, the signature of the
  applicant or the agent will be   ,
  understood to be an affirmation that he
  possesses or represents the person who
  possesses the requisite property interest
  to undertake the activity proposed in the
  appli'cation.

  § 233.38  Continuation of expiring permits.
   A Corps 404 permit does not continue
  in force beyond its expiration date
  under Federal law if, at that time, a
  State is the permitting authority. States
  authorized to administer the 404
  Program may continue Corps or State-
  issued permits until the effective date of
  the new permits, if State law allows.
  Otherwise, the discharge is being
  conducted without a permit from the
  time of expiration of the old permit to
  the effective date of a new State-issued
 permit, if any.

 Subpart E—Compliance Evaluation
 and Enforcement

 § 233.40 Requirements for compliance
 evaluation programs.
   (a) Irt.order to abate violations of the
 permit program, the State shall maintain  "
 a program designed to identify persons
 subject to regulation who have failed to
 obtain a permit or to comply with permit
 conditions.
   (b) The Director and State officers
 engaged in compliance evaluation, upon
 presentation of proper identification,
 shall have authority to enter any site or
 premises subject to regulation or in
 which records relevant to program
 operation are kept in order  to copy any
 records, inspect, monitor or otherwise
 investigate compliance with the S.tate
 program.
  (c) The State program shall provide
 for inspections to be conducted, samples
 to be taken and other information to be
 gathered in a manner that will produce
 evidence admissible in an enforcement
 proceeding.
  (d) The State shall maintain a program
 for receiving and ensuring proper •
 consideration of information submitted
 by the public about violations.

§ 233.41 Requirements for enforcement
authority.

  (a) Any State agency "administering a
program shall have'authority:

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               Federal Register./ Vol. 53, No.  108 /Monday, June 6,  1988 /  Rules and Regulations
                                                                        20783
   (1) To restrain immediately and ,
 effectively any persoriirom engaging in  '
 any unauthorized .activity;
   (2) To sue to enjoin any threatened or
 continuing violation of any program
 requirement;
   (3) To assess or sue to recover civil
 penalties and to seek criminal remedies, .
, as follows:
   (i) The agency shall have the authority
 to assess or recover civil penalties for
 discharg > of dredged or fill material
 without a required permit or in violation
 of any Section 404 permit condition in
 an amount of at least $5,000 per day of
 such violation.  •
   (ii) The agency shall have the
 authority to seek criminal fines against
 any person who willfully or with
 criminal negligence discharges dredged
 or fill  material, without a required permit
 or violates any permit condition issued
 under Section 404 in the amount of at
 least $10,000 per day of such violation.
   (iii) The agency shall have the
 authority.to seek criminal fines against
 any person who knowingly makes false
 statements, representation, or
 certification in any application, record,
rreport, plan, or other document filed or
 required to be maintained under the Act,
 these regulations or the approved State
•program, or who falsifies, tampers with,
 or knowingly renders inaccurate any
 monitoring device or method required -to
 be maintained under the permit, in an
 amount of at least $5,000 for each
 instance of violation.
   (b)(l) The  approved maximum civil
 penalty or criminal fine shall be
 assessable for each violation and, if the.
 violation is'continuous, shall be
 assessable in that maximum amount for
 each day of violation.   -
   (2) The burden of proof and degree of
 knowledge or intent required under
 State law for establishing violations
 under paragraph (a)(3) of this section,
 shall be no greater than the burden of '
 proof  or degree of knowledge or intent
 EPA must bear when it brings an action
 under the Act.
   (c) The civil penalty assessed, sought,
 or agreed upon by the Director under
 paragraph (a] (3) of this section shall be
 appropriate to the violation.
   Note.—To the extent that State judgments or
 settlements provide penalties in amounts
 which  EPA believes to be substantially
 inadequate in comparison to the .amounts
 which  EPA would require, under similar facts,
 EPA may, when authorized by Section 309 of
 the Act, commence separate action for
 penalties. ...
   (d)(l) The Regional Administrator
 may approve,a State program where ,the
 State  lacks authority to recover  '   ,
 penalties of the levels required under
 paragraphs (a)(3)(i)-(iii) of this section
 only if the Regional Administrator
 determines, after .evalulfiing'''a record of
 at least one year for an alternative   •
 enforcement program, that the State has
 an alternate, demoristrably effective  -
 method of ensuring compliance which
 has both punitive and deterrence effects.
   (2) States whose programs were
 approved via waiver of monetary"
 penalties shall keep the Regional •
 Administrator informed of all
 enforcement actions taken under any
 alternative method approved pursuant
 to paragraph (d)(l) of this section. The.
 manner of reporting will be established
 in the Memorandum of Agreement with
 the Regional Administrator (§ 233.13).
   (e) Any State administering a program
 shall provide for public participation in
 the State enforcement process by
 providing either:
   (1) Authority which allows
 intervention of right in any civil or
•administrative  action to obtain remedies
 specified in paragraph (a)(3) of this
 section by any  citizen having an interest
 which is or may be adversely affected, .
 of    . ,       '    .
   (2) Assurance that the State agency or
 enforcement authority will:      - .. • •
   (i) Investigate and provide written
 responses to all citizen'complaints
 submitted pursuant,to State procedures;
  , (ii) Not oppose intervention by any
 citizen when permissive intervention
 may be authorized by statute, rule, or
 regulation; and
   (iii) Publish notice of and provide at
 least 30 days for public comment on any
 proposed settlement of a State
 enforcement action.

 Subpart F—Federal Oversight

 §233.50  Review of and objection to State
 permits.
   (a) The Director shall promptly
 transmit to the  Regional Administrator:
   .(1) A copy of the public  notice for any
 complete permit applications received
 by >'..d Director, except those for which
 permit review has.been waived under
 § 233.51. The State shall supply the
 Regional Administrator with copies of
 public notices for permit applications for
 which permit review has been waived
 whenever requested by EPA.
   (2) A'copy of a draft general permit
 whenever the State intends to issue a
 general permit.                  •
   (3) Notice of every significant action
 taken by the State agency related to the
 qonsideratiori of any permit application
 except those for which Federal review
 has been waived or draft general permit.
   (4) A copy qf every issued permit.
   (5) A copy of the Director's response
 to another State's comments/
.recommendations, if the Director does
  not accept these recommendations
  (§ 233.32(a)). -                       .
    (b) Unless review has been waived
  under § 233.51, the Regional
  Administrator shall provide a copy of
  each public notice, each draft general
  •permit, and other information needed for
  review of the application to the Corps,
  FWS. and NMFS. within 10 days of
.  receipt. These agencies shall notify the  -
  Regional Administrator within 45 days
:  of their receipt if they wish to comment
  on the public notice or draft general
  permit. Such agencies should submit
  their evaluation and comments to the
  Regional Administrator within 50 days
  of such receipt. The final decision to
  comment, object or to require permit
  conditions shall be made by the
  Regional Administrator, (These times
  may be shortened by mutual agreement
  of the affecteo' Federal agencies and the
  State.)
   (c) If the information provided is
  inadequate to determine whether the
  permit application or draft general
  permit meets the requirements of the
  Act, these regulations, and the 404(b)(l)
  Guidelines, the Regional Administrator
,  may, within 30 days of receipt, request
  the Director to transmit to the Regional
  Administrator the complete record of
  the permit proceedings before the State,
  or any portions of the record, or other
  information, including a supplemental
  application, that the Regional
  Administrator determines necessary for
  review.
   (d) If the Regional Administrator
  intends to comment upon, object to,  or
  make recommendations with respect to
  a permit application, draft general
  permit, or the Director's failure to accept
  the recommendations of an affected
  State submitted pursuant to § 233.31(a),
  he shall notify the Director of his intent
  within 30 days of receipt. If the Director,
  has been so notified, the permit shall not
  be issued until after the receipt of such
  comments or 90 days of the Regional'
  Administrator's receipt of the public
  notice, draft general permit or Director's
  response (§ 233.31(a)), whichever comes
  first. The Regional Administrator may
  notify the Director within 30 days of
  receipt that there is no comment but that
  he reserves the right to object within 90
  days of receipt, based on any new
  information brought out by  the public
  during the comment period or at a
 .hearing.
   (e) If the Regional Administrator has
  given notice to the Director under .
  paragraph (d) of this section, he shall
  submit to the Director,  within 90 days of
  receipt of the public notice, draft general
  permit,  or Director's response
  (§ 233.31(a)), a.written statement of his

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   20784
               / Monday. ]um  6, 1988 / Rules'and  Regulations
   comments, objections, or
   recommendations: the reasons for the
   comments, objections, or
   recommendations; and the actions that
   must be taken by the Director in order to
   eliminate any objections. Any such
   objection shall be based on the Regional
   Administrator's determination that the
   proposed permit is (1) the subject of an
   interstate dispute underj 233.31(a) and/
  or (2) outside requirements of the Act,
   these regulations, or the 404(b)(l)
  Guidelines. The Regional Administrator
  shall make available upon request a
  copy of any comment, objection, or
  recommendation on a permit application
  or draft general permit to the permit
  applicant or to the public.
    (f) When the Director has received an
  EPA objection or requirement for a
  permit condition to a permit application
  or draft general permit under this
  section, he shall not issue the permit
  unless he has  taken the steps required
  by the Regional Administrator to
  eliminate the objection.
    (g) Within 90 days of receipt by the
  Director of an objection or requirement
  for a permit condition by the Regional
  Administrator, the State or any
  interested person may request that the
  Regional Administrator hold a public
  hearing on ihe objection or requirement.
   The Regional Administrator shall
 conduct a public hearing whenever
 requested by the State proposing to
 issue the permit, or if warranted by
 significant public interest based on
 requests received.
   (h) If a public hearing is held under
 paragraph (g) of this section, the
 Regional Administrator shall, following
 that hearing, reaffirm, modify or
 withdraw the objection or requirement
 for a permit condition, and notify the
 Director of this decision.
   (1) If the Regional Administrator
 withdraws his  objection or requirement
 for a permi! condition, the Director may
 issue the permit.
   (2) If Ihe Regional Administrator does
 not withdraw the objection or
 requirement for a permit condition, the
 Director must issue a permit revised to
 satisfy the Regional Administrator's
 objection or requirement for a permit
 condition or notify EPA of its intent to
 deny the permit within 30 days of
 receipt of the Regional Administrator's
 notification.
   (i) If no public hearing is held under
 paragraph (g) of (his section, the
 Director within 90 days of receipt of the
objection or requirement for a permit
condition shall  either issue the permit
rt'Vtaed to satisfy EPA's  objections or
notify EPA of its intent to deny the
permit.
     (j) In the event that the Director
  neither satisfies EPA's objections or
  requirement for a permit condition nor
  denies the permit,, the Secretary shall
  process the  permit application.

  §233.51  Waiver of review.
    (a) The MOA with the Regional
 ' Administrator shall specify the
  categories of discharge for which EPA
  will waive Federal review of State
  permit applications. After program
  approval, the MOA may be modified to
  reflect any additions or deletions of
  categories of discharge for which EPA
  will waive review. The Regional
 Administrator shall consult with the
 Corps, FWS, and NMFS prior to
 specifying or modifying such categories.
    (b) With the following exceptions, any
 category of discharge is eligible for
 consideration for waiver:
    (1) Draft general permits;
    (2) Discharges with reasonable
 potential for  affecting endangered or
 threatened species as determined bv
 FWS;
    (3) Discharges with reasonable
 potential for  adverse impacts on waters
 of another State;
   (4} Discharges known or suspected to
 contain toxic pollutants in toxic
 amounts (Section 101(aj(3} of the Act) or
 hazardous substances in importable
 quantities (Section 311 of the Act);
   (5) Discharges located in proximity of
 a public water supply intake;
   (6) Discharges within critical areas
 established under State or Federal lawv
 including but  not limited to National and
 State parks, fish and wildlife
 sanctuaries and refuges, National and
 historical monuments, wilderness areas
 and preserves, sites identified or
 proposed under the National Historic
 Preservation Act, and components of the
 National Wild and Scenic Rivers
 System.
  (c) The Regional Administrator retains
 the right to terminate a waiver as to  •
 future permit actions at any time by
 sending'the Director written notice of
 termination.

 § 233.52  Program reporting
  (a) The starting date for the annual
 period to be covered by.reports shall be
 established in the Memorandum of
 Agreement with the Regional
 Administrator (§ 233.13.)
  (b) The Director shall submit to the
 Regional Administrator within 90 days
 after completion of the annual period, a
 draft annual report evaluating the
State's administration of its program
identifying problems the State has
encountered in the administration of its
program and recommendations for
resolving these problems. Items  that
   shall be addressed in the annual report.
   include an assessment of the cumulative
   impacts of the State's permit program on
   the integrity of the State regulated
,   waters; identification of areas of
   particular concern and/or interest
   within the State; 'he number and nature
   of individual and general permits  issued,
   modified, and denied; number of
   Violations identified and number and
   nature-of enforcement actions taken;
   number of suspected unauthorized
   activities reported and nature of action
   taken; an estimate of extent of activities
   regulated by general permits;  and  the
   number of permit applications received
   but not yet processed.
    (c) The State shall make  the draft
  annual report available for public
  inspection.
    (d) Within 60 days of receipt of the
  draft annual report, the Regional
  Administrator will complete review of
  the draft report and transmit comments,
  questions, and/or requests for
  additional evaluation and/or
  information to the Director.
    (e) Within 30 days of receipt of the
  Regional Administrator's comments, the
  Director will finalize the annual report,
  incorporating and/or responding to the
  Regional Administrator's comments, and
  transmit the final report to the Regional
  Administrator.
    (f) Upon acceptance of the annual
  report, the Regional Administrator shall
  publish notice of availability of the  final
  annual report.

  § 233.53  Withdrawal of program approval. ••
   (a) A State with a program approved
 under this Part may voluntarily transfer.
 program responsibilities required by
 Federal law to the Secretary by taking .
 the following actions, or in such other
 manner as may be agreed upon with the
 Administrator.   ,    .
   (1) The State shall give the
 Administrator and the Secretary 180
 days notice of the proposed  transfer.
 The State shall also submit a plan for
 the orderly transfer of all relevant
 program information not in the
 possession of the Secretary (such as
 permits, permit files, reports, permit
 applications) which are necessary for
 the Secretary to administer the  program.
   (2) Within 60 days of receiving the
 notice and transfer plan, the
 Administrator and the Secretary shall  •
'evaluate the State's transfer  plan and
 shall identify for the State any
 additional information needed by the
Federal government for program
administration.
   (3) At least 30 days before  the transfer
is to occur the \drninistrj.or shall
publish  notice of jansfer 1.1  n?  Federal

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               Federal  Register /Vol., 53,  No. 108  / Monday, June 6, 1988 / Rules  and  Regulations        20785
  Register and in a sufficient number of
  the largest newspapers in the State to
  provide statewide coverage, and shall
  mail notice to all permit holders, permit
  applicants, other regulated persons and
  other interested persons on appropriate
  EPA., Corps and State mailing lists.
    (b) The Administrator may withdraw
  program approval when a State program
  no .longer complies with the
  requirements of this Part, and the State
  fails to take corrective action. Such  ,
  circumstances include the following:
    (1) When the State's legal authority no
  longer meets the requirements of this
  Part, including:
    (i) Failure of the State to promulgate
  or enact new authorities when
  necessary; or
    (ii) Action by a Sta,te legislature or
  court striking down or limiting State
  authorities.         .
  .  (2) When the operation of the State
  program fails to comply with the
  requirements of this Part, including:
   (i) Failure to exercise control over
  activities required to be regulated under
  this Part, including failure to issue
  permits; ,                     :
   (ii) Issuance of permits which do not
  conform to the requirements of this Part;
  or       •       . '       •
   (iii) Failure to comply with, the public
  participation requirements of this Part.
,   (3) Wh''en the State's enforcement
  program fails to comply with the
  requirements of this Part, including:
   (i) Failure to act on violations of
  permits or other program requirements;
   (ii) Failure to seek adequate
  enforcement penalties or to collect
  administrative fines when imposed, or
  to implement alternative enforcement
 methods approved by the Administrator;
  or
   (iii) Failure to inspect and monrtor
  activities subject to regulation.
;  (4) When the State program fails to
  comply with the terms of the
 Memora idum of Agreement required
  under § 233.13..               '
   (c) The following procedures apply
  when the Administrator orders the
  commencement of proceedings to
  determine whether to withdraw
  approval of a State program:
  . (1) Order. The Administrator may
  order the commencement of withdrawal
  proceedings on the Administrator's
  initiative or in response to a petition
  from an interested person alleging
  failure.of the State to comply with the
  requirements of this Part as set forth in
  subsection (b) of this section. The
  Administrator shall respond in  writing
  to any petition'to commence withdrawal
  proceedings. He may conduct an
  informal review of the allegations in the
  petition to determine whether cause
- exists to commence proceedings under
  this paragraph.'The Administrator's  .-
  order commf ncing proceedings under
  this paragraph, shall fix'a time and place
  for the commencement of the hearing,
  shall specify the allegations against the
  State which are to be considered at the
  hearing, and shall be published in the
  Federal Register.  Within 30 days after
  publication of the Administrator's order
  in the Federal Register, the State shall
  admit or deny these allegations in a
  written answer.
   The  party seeking withdrawal of the
  State's program shall have the burden of
  coming forward with the evidence in a
  hearing under this paragraph.
   (2) Definitions.  For purposes of this
  paragraph the definition of
  "Administrative Law judge," "Hearing
  Clerk," and "Presiding Officer" in 40
  CFR 22.03 apply in addition to the
  following:  .
   (i) "Party" means the petitioner, the
 State, the Agency, and any other person
 whose request to participate as a party
 is granted.
   (ii) "Person" means the Agency, the
 State and any individual or organization
 having an interest in the subject matter
 of the proceedings.
   (iii) "Petitioner" means any person
 whose  petition for commencement of
 withdrawal proceedings has  been
 granted by the Administrator.       .
  . (3) Procedures.
   (i) The following provisions of 40 CFR
 Part 22 [Consolidated Rules of Practice]
 are  applicable to proceedings under this
 paragraph:
   (A) Section 22.02—(use of number/
 gender);          .     .
   (B) Section 22.04—(authorities of
 Presiding Officer);
   (C) Section 22.06—(filing/service of
 rulings and orders);
   (D) Section 22.09—(examination of
 filed documents);
   (E) Section 22.19 (a), (b) and (c)—
 (prehearing conference);
   (F) Section 22.22—(evidence);
   (G) Section 22.23—(objections/offers
 of-proof);
   (H) Section 22.25—(filing the
 transcript; and
   (I) Section 22.2&-r(findings/
' conclusions).
  • (ii) The following provisions are also
 applicable:..
   (A) Computation and extension of
 time.
   (1) Computation. In computing any
 period of time prescribed or allowed in
 these rules of practice, except as
 otherwise provided, the day of the event
.from which the designated period begins
 to run shall not be included. Saturdays,
 Sundays, and Federal legal holidays
 shall be included.  When a stated time
  expires on a Saturday, Sunday or
  Federal legal holiday, the stated time
  period shall be extended to include the
  next business day.
    (2) Extensions of time, fhe
  Administrator, Regional Administrator,
  or Presiding Officer, as appropriate, may
  grant an extension of time for the filing
  of any pleading, document, or motion [i]
  upon timely motion of a party to the
  proceeding, for good .cause shown and
  after consideration of prejudice to other
  parties, or (ii]  upon his own motion.
  Such a motion by a party may only be
  made after notice to all other parties,
  unless the movant can show good cause
  why serving notice is impracticable. The
  motion shall be filed in advance of the
  date on which the pleading, document or
  motion is due .to be filed, unless the
  failure of a party to make timely motion
  for extension of time was the result of
  excusable neglect.
    (3) The time for commencement of the
  hearing shall not be extended beyond
  the date set in the Administrator's order
; without approval of the Administrator.
    (B) Ex parte discussion of proceeding.
  At no time after the issuance of the
  order commencing proceedings shall the
  Administrator, Regional Administrator,
  Judicial Officer, Regional Judicial
  Officer, Presiding Officer, or any other
  person who is  likely, to advise these
  officials in the decisions on .the case,
  discuss ex parte the merits of the
 proceeding with any interested person
 outside the Agency, with any Agency
 staff member, who performs a
 prosecutorial or investigative function in
 such proceeding or a factually related
 proceeding, or with any representative
 of such person." Any ex parte
 memorandum or othei communication
 addressed to the Administrator,
 Regional Administrator, Judicial Officer,
 Regional Judicial Officer, or the
 Presiding Officer during the pendency of
 the proceeding and relating to the merits
 thereof, by or on behalf of any party
 shall be regarded as argument made in
 the proceeding and shall be served upon
 all other parties. The other parties shall
 be given an opportunity to reply to such
 memorandum or communication.
   (C) Intervention.
   (1) Motion. A motion for leave to,'
 intervene in any proceeding conducted
 under these rules of practice must set
 forth the grounds for the proposed
 intervention, the position and interest jf
 the movant and the likely impact that
 intervention will have on the
 expeditious progress of the proceeding.;
 Any person already a party to the
 proceeding may file an answer to a
 motion to intervene, making specific
 reference to the factors  set forth in the

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 20786        Federalkegister / Vol. 53, No. -108 / Monday, June 6,  1988 / Rules and Regulations
 foregoing sentence and paragraph
 (b)(3)(ii)(CJ(3) of this section, within ten
 (10) days after service of the motion for
 leave to intervene.
   [2] However, motions to intervene
 must be filed within 15 days from the
 date the notice of the Administrator's
 order is published in the Federal
 Register.
   (3\ Disposition. Leave to intervene
 may be granted only if the movant
 demonstrates that (/) his presence in the
 proceeding would not unduly prolong or
 otherwise prejudice the adjudication of
 Ihe rights of the original parties; {ii] the
 movant will be adversely affected by a
 final order, and (iii} the interests of the
 movant are not being adequately
 represented by the original parties. The
 intervenor shall become a full party to
* the proceeding upon the granting of
 leave to intervene.
   [4) Amfcus curiae. Persons not parties
 to the proceeding who wish to file briefs
 may so move. The motion shall identify
 the interest of the applicant and shall
 state the reasons why the proposed
 amicus brief is desirable. If the motion is
 granted, the Presiding Officer or
 Administrator shall issue an order
 setting the time for filing such brief. An
 amicus curiae is eligible to participate in
 any briefing after his motion is granted,
 and shall be served with all briefs, reply
 briefs, motions, and orders relating to
 issues to be briefed.
   (D) Motions. (1) General. All motions,
 except those made orally on the record
 during a hearing, shall (f) be in writing;
 {//) state the grounds therefore with
 particularity; (iii] set forth the reliefer
 order sought; and (iv) be accompanied
 by any affidavit, certificate, other
 evidence, or legal memorandum relied
 upon. Such motions shall be served as
 provided by paragraph (b}(4) of this
 section.
   (2) Response Co motions. A party's
 respons »to any written motion must be
 filed within ten (10) days after service of
 such motion, unless additional time is
 allowed for such response. The response
 shall be accompanied by any affidavit,
 certificate, other evidence, or legal
 memorandum relied upon. If no
 response is filed within the designated
 period, the parties may be deemed to
 have waived any objection to the
 granting of the motion. The Presiding
 Officer, Regional Administrator, or
 Administrator, as appropriate. may,set  a
 shorter time for response, or make such
 other orders concerning the disposition
 of motions as they deem appropriate.
   (3) Decision. The Administrator shall
 rule on all motions filed or made after
 service of the recommended decision
 upon the parties. The Presiding Officer
 shall rule on all other motions. Oral
 argument on motions will be permitted
 where the Presiding Officer, Regional
 Administrator, or the Administrator
 considers it necessary or desirable.
   [4] Record of proceedings,  (i) The
 hearing shall be either stenographically
 reported verbatim or tape recorded, and ,
 thereupon transcribed by an  official
 reporter designated by the Presiding
 Officer;
   [if] All orders issued by the Presiding
 Officer, transcripts of testimony, written
 statements of position, stipulations,
 exhibits, motions, briefs, and other
 written material of any kind submitted
 in the hearing shall be a part of the
 record and shall be available for
 inspection or copying in the Office of the
 Hearing Clerk,  upon payment of costs.
 Inquiries may be made at the Office of
 the Administrative Law Judges, Hearing
 Clerk, 401 M Street SW., Washington, "
 DC 20460;
  {iii] Upon notice to all parties the     '
 Presiding Officer may authorize
 corrections to the transcript which
 involve matters of substance;
  (/V) An original and two (2) copies of
 all written submissions to the hearing
 shall be filed with the Hearing Clerk; •
  (v] A copy of each such submission
 shall be served by the person making
 the submission upon the Presiding
 Officer and each party of record. Service,
 under this paragraph shall take place by
 mail or personal delivery;
  (vi) Every submission shall be
 accompanied by acknowledgement of
 service by the person served or proof of
 service in the form of a statement of the
 date, time, and  manner of service and
 the names of the persons served,
 certified by the person who made
 service; and
  (v/7) The Hearing Clerk shall maintain
 and furnish to any person upon request,
 a list containing the name, service
 address, and telephone number of'all
 parties and their attorneys or duly
 authorized representatives.
  [5] Participation by a person not a
party. A person who is not a party may,
 in the discretion of the Presiding Officer,
 be permitted to make a limited
 appearance by making an oral or
 written statement of his/her position on
 the issues within such limits and  on
 such conditions as may be fixed by the
 Presiding Officer, but he/she may not
 otherwise participate in the proceeding.
   (6} Rights of parties, (i) All parties to
 the proceeding may:
   (A) Appear by counsel or other
 representative in all hearing and
 prehearing proceedings;
   (B) Agree to stipulations of facts
 which shal! be made a part of the
 record.
   (7) Recommended decision, (i) Within
30 days after the filing of proposed
findings and conclusions and reply
briefs, the Presiding Officer shall
evaluate the record before him/her, the
proposed findings and conclusions and
any briefs filed by the parties, and shall
•prepare a recommended decision, and
shall certify the entire record, including
the recommended decision, to the
Administrator.
   (ii) Copies of the recommended
decision shall be served upon all parties.
   (iii) Within 20 days after the  '
certification and filing of the record and
recommended decision, all parties may
file with the Administrator exceptions to
the recommended decision and a
supporting brief.
   (8) Decision by Administrator, (i)
Within 60 days after certification of the
record and filing of the Presiding
Officer's recommended decision, the
Administrator shall review the record
before him and issue his own decision.
   (ii) If the Administrator concludes that
the State has administered the program
in conformity with the Act and this Part,
his decision shall constitute "final
agency action" within the meaning of 5
U.S.C. 704.
   (iii) If the Administrator concludes
that the State has not administered the
program in conformity with the Act and
regulations, he shall list the deficiencies
in the program and provide the State a
reasonable time, not to exceed 90 days,
to take such appropriate corrective
action as the Administrator determines
necessary.
   (iv) Within the time prescribed by the
Administrator the State shall take such
appropriate corrective action as
required by the Administrator and shall
file with the Administrator and all
parties a statement certified by the State
Director that appropriate corrective
action has been taken.
   (v) The Administrator may require a
further showing in addition to the
certified statement that corrective action
has been taken.

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              Federal Register /  Vol  53,  No. 108  /Monday, June  6, 1988 / Rules  and  Regulations        20787
    (vi) If the state fails to take
  appropriate corrective action and file a
  certified statement thereof within the   :
  time prescribed by, the Administrator,
  the Administrator shall issue a
  supplementary order withdrawing
  approval of the State program. If the
  State takes appropriate corrective
  action, the Administrator shall issue a
  supplementary order stating that
  approval of authority is not withdrawn.
   (vii) The Administrator's
 supplementary order shall constitute
 final Agency action withiirthe meaning
 of 5 U.S. 704. .
   (d) Withdrawal of authorization under
 this section and the Act does not relieve
 any person from complying with the
 requirements of State law, nor does it
 affect the validity of actions taken by
 the State prior to withdrawal.
'* •   *    * '   • *     *
 [FR Doc. 88-12032 Filed 6-3-88; 8:45 am]
 BILLING CODE 6560-SO-M

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