NPDE$ ADMINISTRATIVE
      PROCEDURES MANUAL
                    Prepared for:
U.S. Environmental Protection Agency
        Office of Water Enforcement
                 Washington, D.C.

                    Prepared by:
              JRB Associates, Inc.
              ':'.; - ^, McLean, Va:
               -            arid
                Richard C. Browne
                 Washington, D.C.

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                                CONTENTS

                                                                       Page

FOREWORD                                                               viii


CHAPTER I.  PART 124 IN PERSPECTIVE                      '              1-1

     OVERVIEW                                                          !-l

     THE STATUTE                                                       1-2

     HISTORY OF NPDES REGULATIONS                                      1-3
     SIGNIFICANT CHANGES IN PART 124                                   1-5

     FREQUENTLY ASKED QUESTIONS                                        1-8

     ADDITIONAL QUESTIONS                                              1-12


CHAPTER II.  SUBPARTS A-C - APPLICABILITY, APPLICATION                II-l
             PROCESS, STATE CERTIFICATION

     OVERVIEW                                                         II-l
     DEFINITION OF THE SEVEN PROCEDURAL STAGES                        II-2

          The Application Process                                     II-2
          State Certification                                         II-2
          Draft Permit or Denial                                      II-2
          Public Comment and Hearings                     •            II-3
          Final Permits                                               II-3
          Evidentiary Hearings or Nonadversary Hearings               II-4
          Appeal to the Administrator                                 II-5

     SEQUENCE OF THE APPLICATION PROCESS                              II-7

          Application for Permit                                      II-7
          Special Provisions for Applications from New Sources        II-8
          Requests for Modification, Revocation and Reissuance,       II-9
             or Termination
          Permits Required on Case-By-Case Basis                      11-10
          Procedure for Handling Application After Deciding           11-11
             to Deny or Terminate

     PROCEDURES ON STATE CERTIFICATION                                11-12

          Introduction                                                11-12
          State Certification                                         11-12
          Change in State Law                                         11-13
                                    iii

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                          CONTENTS (CONTINUED)

                                                                       Page

CHAPTER III.  SUBPART D - PREPARATION OF A DRAFT PERMIT               III-l

     OVERVIEW                                                         III-l


CHAPTER IV.  SUBPART E - PUBLIC NOTICE, COMMENT AND HEARINGS           IV-1

     OVERVIEW                                                          IV-1
     METHODS FOR CIRCULATING NOTICE                                    IV-2
     PROCEDURES FOR THE COMMENT PERIOD AND PUBLIC HEARINGS             IV-3

          Public Comments and Hearings                                 IV-3
          Raising Objections and Providing Information                 IV-3
             During Comment Period
          Terms Requested by Corps of Engineers and                    IV-3
             Other Governmental Agencies
          Re-opening of Comment Period                                 IV-4

CHAPTER V.  SUBPART F - SPECIAL PROVISIONS FOR VARIANCES                V-l
            AND STATUTORY MODIFICATIONS

     OVERVIEW                                                           V-l
     GENERAL PROCEDURES FOR PROCESSING VARIANCES AND                    V-2
        STATUTORY MODIFICATIONS

          Application                                                   V-2
          Effect on Permit                                              V-3
          Appeals                                                       V-4

     SPECIAL PROCEDURES                                                 V-5


CHAPTER VI.  SUBPART G - ISSUANCE AND EFFECTIVE DATE OF PERMIT         VI-1

     OVERVIEW                                                          VI-1
     ADMINISTRATIVE RECORD FOR FINAL PERMIT                            VI-3


CHAPTER VII.  SUBPART H - EVIDENTIARY HEARING PROCESS                 VII-1

     OVERVIEW                                                         VII-1

     PROCEDURES FOR INTERLOCUTORY APPEAL                              VII-3
     EXPEDITING THE PROCESS                                           VII-5
                                     IV

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                          CONTENTS (CONTINUED)
CHAPTER VIII.  SUBPART I - NONADVERSARY PROCEDURES

     OVERVIEW

     EXPEDITING THE PROCESS
  Page

VIII-1

VIII-1
VIII-4
CHAPTER IX.  GENERAL ISSUES

     OVERVIEW

     GENERAL PROVISIONS

          Public Access to Information
          Delegation of Authority; Time Limitations
          Service
          Settlements
          General Permits
          Grouping Parties
          Production or Exchange of Documents and Data
          Ex Parte Communications
          New Sources
  IX-1

  IX-1

  IX-3

  IX-3
  IX-4
  IX-5
  IX-5
  IX-6
  IX-8
  IX-8
  IX-8
  IX-11
CHAPTER X.  RESOURCE DOCUMENTS AND BIBLIOGRAPHY

     OVERVIEW

     TOPICAL INDEX TO DECISIONS OF THE GENERAL COUNSEL
       AND THE NPDES REGULATIONS

     BIBLIOGRAPHY

     INDEX TO NPDES REGULATIONS

     PARTS 122-125
   X-l

   X-l

   X-2


   X-8

   X-ll

   X-14
APPENDIX - DECISION LOGIC

     OVERVIEW
   A-l

   A-l
INDEX

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                                LIST OF  FIGURES
Figure                                                                 Page

 VI-1       Decision Logic to Determine "Uncontested Provisions"       VI-6
              Final Permit

VII-1       Subpart H - Evidentiary Hearing Procedures                VII-29

  A-l       NPDES Permit Process                                        A-2

  A-2       Subpart H - Evidentiary Hearing Procedures                  A-3

  A-3       Subpart I - Nonadversary Procedures for Initial             A-4
              Licensing
                                LIST OF TABLES



Table

VI-1        Enforceable Permit Provisions                              VI-7
                                       vi

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                                 LIST OF FORMS
                                                                       Page
Statement of Basis
Fact Sheet
Designation of Record Clerk
Administrative' Record for Draft Permit.
 III-3
 III-5
 III-ll
 111-12
Notice of Public Hearing
Public Notice of Draft Permit
Public Notice of Draft General Permit
  IV-5
  IV-8
  IV-11
Administrative Record for Final Permit
Checklist of Documents to Include in Administrative Record
   for Final Permit
  VI-5
  VI-8
Designation of Trial Staff and Decisional Body
RA's Order Granting/Denying Evidentiary Hearing and Notice
   of Contested/Uncontested Conditions
Referral to Chief ALJ
Public Notice of Evidentiary Hearing
Proposed Prehearing Order
Order on Request for Intervention
Motion
Stipulation
 VII-9
 VII-10

 VII-12
 VII-13
 VII-20
 VII-24
 VII-25
 VII-27
?ublic Notice of Panel Hearings
RA's Order Granting Nonadversary Hearing
Designation of Trial Staff and Decisional Body
VIII-6
VIII-13
VIII-15
                                      vii

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                                   FOREWORD
     This manual has been designed for use by attorneys,  permit writers,  and
regional hearing and record clerks in applying the procedures for NPDES permit
issuance and review as codified in'40 CFR 124.  The manual is divided into 10
chapters and an appendix.

     The first nine chapters track the individual Subparts contained in Part 124.
Chapter IX also contains miscellaneous provisions of the regulations that pertain
to more than one Subpart.  Chapter X provides resources that will be helpful in
preparing draft and final permits, and in implementing both evidentiary and non-
adversary initial licensing hearing provisions.

     Each chapter contains an overview of the Subpart being addressed.  These
overviews summarize the critical elements of the Subparts.  The remainder of
each chapter contains sample forms, checklists, and diagrams designed to expedite
your work in complying with the procedures in Part 124.

     The appendix contains.a three-part decision logic diagram, which graphically
illustrates the steps of the entire NPDES process in a condensed manner for easy
reference.

     An index has also been provided for easy reference to chapter materials.
Information particularly relevant to the attorneys, permit writers, and regional
hearing and record clerks has been indexed under the heading "Information."
                                      viii

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      CHAPTER I
PART 124 IN PERSPECTIVE

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                       CHAPTER I—PART 124 IN PERSPECTIVE
                                   OVERVIEW
     The National Pollutant Discharge Elimination System (NPDES) permit program
was established by the Federal Water Pollution Control Act Amendments of 1972.
The NPDES program is designed to protect the environment, specifically the Nation's
waters, from the effects of pollution.  It does this by requiring a permit for all
owners or operators of point sources discharging pollutants into the Nation's waters.
The permit regulates the type and amount of pollutants that may be discharged.

     The 1979 regulations extensively revise the former regulations governing
the NPDES permit program.  This chapter will give an overview and a brief history
of the NPDES regulations.  Significant changes in Part 124 of the regulations
dealing with the procedures for decisionmaking regarding NPDES permits are the
principal focus of this manual.  A listing of frequently asked questions with
references to specific sections in the manual is also included.  In addition, a
decision logic diagram for Part 124 decisions has been included in the appendix,
detailing relationships of persons involved, time schedules, and decisions.

     The Environmental Protection Agency (EPA) has also proposed regulations that
would consolidate five of its permit programs.  The five programs are the NPDES
permit program (Clean Water Act), Underground Injection Control (Safe Drinking
Water Act), Hazardous Waste Management (Resource Conservation and Recovery Act),
Prevention of Significant Deterioration (Clean Air Act), and the Dredge and Fill
program (Section 404, Clean Water Act).  This chapter will briefly discuss the
anticipated impact of the proposed Consolidated Permit Regulations.
                                       1-1

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                                  THE STATUTE
     The Federal Water Pollution Control Act Amendments of 1972 replaced the
Refuse Act permit program under which the Army Corps of Engineers regulated the
discharge of pollution into navigable waterways.   The 1972 Amendments placed
responsibility for water pollution control with EPA and, for the first time,
created a Federal-State partnership for regulating water quality.

     The Statute specifies the basic aspects of water pollution control require-
ments.  EPA is to establish effluent limitations and performance standards for
various sources, limiting the amounts of pollutants that may be discharged.
Industrial sources were required to meet limitations reflecting best practicable
control technology (BPT) to control water pollution by July 1, 1977 and best
available control technology (BAT) by July 1, 1983.  Publicly owned waste treat-
ment plants were to provide at least secondary treatment by July 1, 1977, and
best practicable wastewater technology by July 1, 1983.  The Clean Water Act of
1977 has refined and adjusted BAT requirements, specifially with reference to
treatment for toxic chemicals and providing additional time to meet BAT require-
ments in some cases.

     For new industrial plants, EPA is to issue new source performance standards
based on best available demonstrated control technology.  If the guidelines and
performance standards are insufficient to achieve water quality standards or
other requirements of state law, additional, more stringent requirements may
be imposed.  To ensure that effluent guidelines are met, a system to control
individual dischargers through permits was established.
                                       1-2

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                         HISTORY OF NPDES REGULATIONS
     In December 1972 and May 1973,  the EPA promulgated regulations outlining

the NPDES program.   The regulations  for Hearings were promulgated in July of

1974.  On August 21, 1978, the EPA proposed extensive revisions of the existing

regulations for the purposes of:


     •  Clarifying and improving existing'program regulations and
        procedures in light of past  experience;

     i)  Filling significant gaps in  coverage under the existing regulations,
        particularly in response to  court decisions, and the emphasis on
        controlling toxic and hazardous substances; and

     «  Making the regulatory changes which are necessary under the Clean
        Water Act of 1977.


     The final regulations were published on June 7, 1979, and revised the

proposed regulations based on the comments received during the subsequent

comment period.  Under Title 40 of the Code of Federal Regulations (40 CFR),

the new regulations have been established in the following five Parts:
     -Part 121-   State Certification of Activities Requiring a "Federal
                  License or Permit

                  Establishes the procedures and requirements for State
                  certification of licenses or permits issued by Federal
                  agencies.  (Unchanged from provisions formerly found in
                  40 CFR 123.)

     -Part 122-   National Pollution Discharge Elimination System

                  Specifies who must apply for permits; how permits are
                  issued; what terms and conditions must go into permits;
                  methods for revising or re-issuing permits; and other
                  basic program requirements.
                                        1-3

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      -Part 123-    State  Permit  Program Requirements

                   Establishes guidelines  for  submitting  an NPDES
                   permit program to  the EPA and  EPA's  procedures
                   for reviewing and  approving such programs.

      -Part 124-    Procedures  for Decisionmaking  Regarding National
                   Pollutant Discharge  Elimination System

                   Provides the  procedures for processing and  issuing
                   NPDES  permits.

      -Part 125-    Criteria and  Standards  for  the National Pollutant
                   Discharge Elimination System

                   Establishes the criteria and standards which the EPA
                   and approved  States  apply in making  certain permit
                   determinations which become the basis  for  the initial
                   permit terms  and conditions or modifications.


     A copy of the regulations,  Parts 122  through 125,  is provided in  Chapter X
of this manual.
     The proposed Consolidated Permit Regulations, published for comment on
June 14, 1979, incorporate Parts 122 through 124 of the NPDES regulations with

significant changes.  The principal impact of the proposed Consolidated Regu-
lations upon NPDES decisionmaking procedures in Part 124 (if the regulations

are promulgated in a similar manner as proposed) will result in cases where

public, nonadversary, or evidentiary hearings are to be held on portions of
a consolidated permit that relate to programs other than NPDES.  In these
cases, careful coordination of the differing elements of the permit will
be necessary to prevent delays.
                                       1-4

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                       SIGNIFICANT CHANGES  IN PART 124
     In most cases, the general framework of the former regulations covering
procedures for making permit determinations has not been changed.   However,
significant changes have been made in the following areas:

     •  The procedures for variances, modifications, and permit actions
        other than the basic issuance of a permit
     •  The degree to which permit decisions are documented before an
        evidentiary hearing begins
     •  The hearing procedures for "initial licensing"
     •  The relationship of prior administrative proceedings to any
        evidentiary hearing.

     The former regulations did not specify how modification requests, variance
applications, and other permit actions beyond the basic issuance of a permit
should be handled.  The new regulations specify the procedures for such actions
and put them on the same procedural "track" as other permit applications.

     The new regulations have also consolidated procedures for variances in a
single Subpart, whereas in the former regulations, they were scattered through
various Subparts of 40 Code of Federal Regulations.  In addition, the new regu-
lations provide that variance applications should be submitted, whenever possible,
before the close of comments on a draft permit.  This provision insures that there
will be an opportunity to consider all the relevant issues before the formulation
of the final permit terms, and that the issues will not be raised at a later
date for purposes of delay.

     There has also been a significant change in the degree to which permit
decisions are documented before an evidentiary hearing.  Under the new regulations,
the contents of fact sheets are expanded and specified in more detail to
assure that the explanation on how and why the Agency arrived at specific permit
                                       1-5

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conditions is adequate.   However,  the final regulations did not go as far as the
proposed regulations, in that each permit need not be accompanied by a fact sheet.
The fact sheet requirement has been limited to major or controversial discharges,
as well as variances, modifications (such as Section 301(i) modifications), and
general permits.

     The new regulations also provide that the draft and final permit terms
must be based on an administrative record, which could simply be an adequately
organized file drawer containing the relevant information.  This provision
ensures that the information considered in drawing up a permit is identified
and publicly available for comment.

     The Administrative Procedures Act (APA) allows decisions in cases involving
initial licensing to be made by procedures that are much less formal than strict
courtroom procedures.  The new regulations use this provision of the APA to
implement nonadversary hearing procedures for initial licensing and for Section
30.1 (h) modified permits.  Under the new procedures, a panel of EPA employees
(or if appropriate,  the panel may include persons not employed by EPA) having
special expertise in areas related to hearing issues will be present at the
hearing and may question the parties.  The proceeding will be subject to the
overall control of the Presiding Officer, usually an Administrative Law Judge
unless all parties waive their right to have an ALJ preside.  Because of the
non-accusatory nature of the new panel hearings, there is an increased reliance
on  fact-finding procedures other than cross-examination.

     There has also  been a significant change in the relationship of prior
administrative proceedings to any evidentiary hearing.  So that the Presiding
Officer will know what happened regarding the permit before the hearing began
and so that he or she will have the benefit of the earlier stages of consider-
ation of  the issues, the new regulations provide that the administrative record
on  which  the final permit was based will automatically be admitted into evidence
at  any evidentiary hearing.  In addition, no issue may be raised at an eviden-
tiary hearing if it  was not first raised during the comment period on the draft
permit  (including any public hearing period), unless good cause is shown for
                                       1-6

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the failure to do so.  The purpose of this provision is to encourage resolu-
tion of the issues at a less burdensome,  less expensive, and more open stage
of the permit issuance process.

     There have also been less extensive changes in the evidentiary hearing
procedures with respect to the cross-examination of EPA staff members, the
right of cross-examination, the ultimate burden of persuasion, and the sub-
mission of direct testimony.
                                        1-7

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                          FREQUENTLY ASKED  QUESTIONS


      The following list of questions  provides a "shopping list" of items that
 are answered in this and subsequent chapter's of the  manual.   A blank sheet has
 been provided at the end of these questions for you  to note  any other questions
 which you may frequently need to answer.

1.     What are the major changes in the new regulations?
      Chapter 1

 2.    What procedures are to be followed if a request fo-r modification is denied?.
      Chapter 2

 3.    What procedures are to be followed for permit denial or termination?
      Chapter 2

 4.    What must be included in a state certification?
      Chapter 2

 5.    Can the EPA modify a permit if a state changes  its certification?
      Chapter 2

 6.    What must be included in a draft permit?
      Chapter 3

 7.    What are some of the common problems  in preparing a draft permit?
      Chapter 3
                                      1-8

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 8.   When is a statement of basis prepared?

      Chapter 3


 9.   When are fact sheets required?

      Chapter 3


 10.   What must be included in a fact sheet?

      Chapter 3


 11.   What are the methods for circulating public notice?

      Chapter 4


 12.   What must be included in the various public notices?

      Chapter 4


 13.   When may a public hearing be held?

      Chapter 4
14.   What may the Director do if substantial new questions concerning a
      permit are raised during the comment period?

      Chapter 4
15.   For what types of discharge may a variance be obtained?

      Chapter 5


16.   Can a variance be obtained at any point in time by a permittee?

      Chapter 5


17.   What must be included in an application for a variance?

      Chapter 5
18.    What status does a permit have when the potential permittee is seeking
      a variance?

      Chapter 5
                                       1-9

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19.   For what reasons may a variance be granted?

      Chapter 5


20.   Who may grant a variance?

      Chapter 5


21.   When does a permit finally become effective?

      Chapter 6


22.   When only part of a permit is made the subject of a hearing, what effect
      does the uncontested part have?

      Chapter 6


23.   What must be included in the administrative record for a final permit?

      Chapter 6


24.   What status does a permit have when it is contested pending a hearing?

      Chapter 6


25.   What status does a permit have when it is being appealed to the Administrator?

      Chapter 6


26.   What must be included in a request for an evidentiary hearing?

      Chapter 7


27.   What are some ways to expedite the evidentiary hearing process?

      Chapter 7


28.   What authority  does  the Presiding Officer have to  control the hearing?

      Chapter 7


29.   When may the Presiding Officer certify an order or ruling for interlocutory
      appeal?

      Chapter 7
                                      1-10

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30.   What cases may proceed under the nonadversary procedures?

      Chapter 8


31.   What are some ways to expedite the nonadversary process?

      Chapter 8


32.   Is "separation of functions" followed in the nonadversary process?

      Chapter 9
33.   Is the exchange of documents and data permitted for evidentiary and
      nonadversary hearings?

      Chapter 9
34.    When does a stipulation or consent agreement need EPA headquarters
      approval?

      Chapter 9
                                      1-11

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ADDITIONAL QUESTIONS
        1-12

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    CHAPTER II
APPLICATION, STATE
  CERTIFICATION

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                                CHAPTER II
                SUBPARTS A-C  —  APPLICABILITY,  APPLICATION
                       PROCESS,  STATE CERTIFICATION
                                 OVERVIEW
     This chapter briefly summarizes and defines the seven procedural stages
of the permit decision and then,  in greater detail,  describes the requirements
for two of the stages:  the application process and  state certification
(Subparts B and C).

     The procedures for processing and issuing NPDES permits are covered in
Part 124 of the new regulations.   This Part organizes permit decisions into
seven stages.

     The new regulations provide that a permit denial,  modification,
revocation and reissuance, or termination will be subject to the same pro-
cedure of notice-and-comment and potential hearings  as  other permit actions.

     The regulations allow the EPA to modify a permit during the permit
review process in response to changes in state certification resulting from a
court decision or changes in state law.  The extent  of  modification will
depend on whether the modified certification is received prior to or after
final agency action.

     A description of the essential elements of the  procedures follows below.
For a complete analysis of the procedures, reference should be made to the
Subpart in question.
                                    II-l

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                 DEFINITION OF THE SEVEN PROCEDURAL STAGES
 1.   The  Application  Process                                             [Subpart B]
     Any  person who discharges  pollutants  into the waters of the
 United States must have  a  permit.  No permit other than a general
 permit will  be issued  until  the  discharger has  submitted a complete
 application  that  complies  with the filing requirements specified in
 Part 124,  Subpart B.

 2.   State  Certification                                                 [Subpart C]
     Section  401(a)(l)  of the Clean Water  Act prohibits the EPA
 from issuing a permit  until  certification is granted  or waived by
 the state  in which the discharge originates.  Therefore, when
 an application is received which does not include a state
 certification (as is often the case), the EPA must forward the
 application  to the appropriate state.   If certification is not received
 by the time  a draft  permit is  prepared, the EPA will  send the state
 another  request that certification be granted or denied.  Included
 in this  request will be  notice to the state that its  failure to
 respond  within a  specified reasonable time, not to exceed 60 days,
 will result  in a  waiver  of the right to certify, rather than
 denial of  certification.

 3.   Draft  Permit  or  Denial                                             [Subpart D]
     After  receiving  a  properly submitted  application  and considering
 all relevant data, the EPA must  tentatively decide whether to issue
 or deny  a  permit. If  the EPA  tentatively decides to  issue a permit,
 a draft  permit will  be prepared  and will  be made available for public
 review.  The draft permit  will specify  all the  limitations, requirements,
 and conditions to be placed  on the discharges.   The EPA must also
 prepare  either a  fact  sheet  or a statement of basis explaining in simple
"language how each draft  permit was prepared.
                                     II-2

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4.  Public Comment and Hearings                                        [Subpart  E  or  I]
    The regulations require the EPA to notify the public
regarding permits and permit hearings.  The public notice must
provide interested persons with a minimum of 30 days to comment
on the draft permit or 30 days notice before a hearing.  A longer
comment period may always be provided.

    The regulations allow public hearings to be held whenever there
is significant public interest.  It should be noted, however, that in the
case of initial licensing, the public hearing is completely
discretionary (see Section 124.41(i)(1)).

    Public participation in the NPDES permit decisionmaking process
takes on added significance under the new regulations.  All
parties, including applicants, must now raise all objections and
submit all relevant evidence by the close of the public comment period
or at the public hearings on the draft permit.  Parties can no longer
raise issues or present evidence for the first time at either an
evidentiary or a panel hearing, unless good cause for the failure
to do so earlier is shown.

5.  Final Permits                                                      [Subpart G or I]
    After the close of the public comment period, including any
public hearing period on a draft permit, the EPA will prepare and
issue a final permit.  Public notice of this action will be served
on the applicant and interested parties.  The notice will inform them
of their right to contest the permit by filing a request for an
evidentiary or panel hearing within 30 days.  Uncontested terms and
conditions become effective 30 days after the date of such notice.

    At the time the final permit is issued, the EPA will also
issue a response to the significant public comments received, which
will also indicate any provisions of the draft permit that have been
changed and the reasons for the change.
                                   II-3

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6.  Evidentiary Hearings or Nonadversary Hearings for Initial       [Subpart H or I]
    Licensing
    An evidentiary hearing is available to challenge final
individual permits.  The hearing is a formal proceeding under
the control of a Presiding Officer, an Administrative Law
Judge.  The Presiding Officer may hold prehearing conferences
with the parties for the purposes of obtaining stipulations,
admissions, identifying matters not in issue, and those matters
in dispute.  Time schedules may also be specified for the hearing
and for exchanging documents and data.  The Presiding Officer
also has wide authority to examine witnesses, exclude or limit
evidence, and allow cross-examination on factual questions.

    Following the hearing, the parties will be given an
opportunity to submit proposed findings of fact and conclusions.
The Presiding Officer will evaluate and review these, as well
as the record and any interlocutory decisions in preparing the
initial decision.  The initial decision automatically will
become effective 30 days after service, unless a petition for
review is filed by a party, or the Administrator, on his own
motion, decides to review the decision.

     Cases involving initial licensing, or other cases where all
the parties elect to do so, may proceed under the new, less formal
nonadversary procedure.  A panel (usually of three or more EPA
employees with expert knowledge on the hearing issues but occasion-
ally including persons not employed by EPA) will be present at
the hearing and may question the parties, subject to the overall
control of the proceeding by a Presiding Officer.  One purpose
of the new panel hearings is to avoid being "accusatory in form."
There will be increased reliance on fact gathering procedures
other than cross-examination.
                                 II-4

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    The primary purposes of the nonadversary panel hearing are to
obtain facts about why the permit is objectionable to the party
requesting the hearing,  to receive evidence and/or testimony to
support suggested alternative conditions, and to aid the panel and
the Presiding Officer or Regional Administrator in preparing
a recommended decision.   The panel, particularly the technical panel
members will probably ask the most questions of the witnesses.
Counsel for the parties and for the EPA staff (if Agency Trial Staff is
designated) will have a far less visible role in the proceedings,
compared with their role in formal evidentiary hearings.

     Cross-examination is not likely to be necessary in most non-
adversary panel hearings because the panel and Presiding Officer
will have the authority to question each witness informally and to
satisfy themselves as to whether the record contains facts sufficient
to support the recommended decision to be prepared.

    The emphasis in these proceedings will be on informality rather
than traditional courtroom or adjudicatory procedures.

    The subject of the nonadversary hearings for cases involving
initial licensing will be the EPA's draft permit.  A final permit
will not have been issued yet.  In other cases, the hearings may be held
after a final permit has been issued.  In addition, where EPA
grants or denies a variance such as a fundamentally different factors
variance, in an NPDES state, that variance decision would be subject
to an EPA nonadversary hearing (if properly requested).  After the
hearing, the person named to prepare the decision (either the Presiding
Officer or the Regional Administrator) will prepare and file a
recommended decision.  The recommended decision will become the final
decision of the EPA within 30 days after service, unless a petition for
review is filed by a party with the Administrator, or the Administrator
elects to review it.
                                     II-5

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7.  Appeal to the Administrator                                            [124.101]
                                                                           [124.125]
    Any party or requester,  as the case may be,  will have 30 days
after service of an initial  or recommended decision, or the denial
in whole or part of an evidentiary or panel hearing, to file a
notice of appeal and a petition for review with  the Administrator.
The Administrator will then  grant or deny the petition within a
reasonable time.  If the Administrator decides to accept review,
the parties will be given the opportunity to file briefs in support
of their position. .

    Within the 30 day period, the Administrator may also, on his
own motion, decide to review the decision or the denial of a
hearing.  The Administrator will then notify the parties and
set up a briefing schedule.

    On review, the Administrator may summarily affirm without
opinion, modify, set aside,  or remand for further proceedings
the initial or recommended decision or the denial of an eviden-
tiary or panel hearing.  This petition for review by the Adminis-
trator is a prerequisite for judicial review of the final
decision of the Administrator.
                                   II-6

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                    SEQUENCE OF THE APPLICATION PROCESS             [Subpart B]
Application for Permit                                              [124.11]

    Any person who discharges pollutants into the Nation's
waters must have a permit."  However, certain sources are not
required to obtain an NPDES permit, i.e.:

    •  Irrigation return flows                                      \-\22 41
    •  Vessels being used for transportation
    •  Discharges of dredged or fill material which are
       regulated by Section 404 of the Clean Water Act
    •  Agriculture and silviculture operations producing
       pollutants through runoff.

    Other than general permits or permits otherwise initiated by
the EPA under §124.32, no NPDES permits will be issued until the
applicant has properly completed and submitted an appropriate
application form.

    All permits will be issued for a fixed period of time,          [122.12]
but not for more than five years.  Permits may be modified,
revoked and reissued, or terminated.  However, except for
continuation of expiring permits under the APA, as codified by
the regulations, the terms of a permit will not be extended
beyond the five-year limit by modification, extension, or other
means.  The continuation provision automatically continues the      [122.12(b)(1)]
terms of an expired federally issued permit pending the
issuance of a new permit if the permittee has submitted a
timely and sufficient application, and through no fault
of the permittee, the Regional Administrator is unable to
issue a new permit before the expiration date of the previous
permit.
                                    II-7

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    Any permit issued to dischargers in primary industries (see     [122.12(c)(1) and
                                                                      (2) 1
the industrial categories listed in Appendix A of Part 122) must
incorporate applicable effluent limitations standards, or a
"reopener clause" and specified effluent limitations.  The          [122.15(b)(1)]
following language is an acceptable "reopener clause" for
the purposes of this regulation:

    "This permit shall be modified, or alternatively, revoked
and reissued, to comply with any applicable standard or
limitation promulgated or approved under Sections 301(b)(2)
(C) and (D), 304(b)(2), and 307(a)(2) of the Clean Water
Act, if the effluent standard or limitation so issued or
approved:

    (i) Contains different conditions or is otherwise
        more stringent than any effluent limitation  in
        the permit; or
    (ii) Controls any pollutant not limited in the permit.
    The permit as modified or reissued under this paragraph
shall also contain any other requirements of the Act then
applicable.
Special Provisions for Applications from New Sources
                                                                         [124.12]
                                                                         [122.47(c)(4)]
    The regulations also include special provisions for appli-
cations from new sources.  Before beginning any on-site con-
struction, the EPA requires potential new sources to submit
information to the Regional Administrator, so that he or she
can make a determination on whether the facility is in fact
a new source.  Within 30 days of the receipt of all such
information, the Regional Administrator will make an initial
                                    II-8

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termination.  Public notice of the determination will be
sued.  If determined to be a new source, the notice will
ate that the applicant must comply with the environmental
view requirements of 40 CFR §6.900 et seq., which may
elude a requirement that an Environmental Impact Statement
IIS) be prepared.  If an EIS is required, no on-site con-
ruction may begin until a final permit is issued containing
,S-related requirements or the applicant enters into a
itten agreement which will assure compliance with all such
iquirements, unless construction is found not to cause
gnifleant adverse environmental impact.  This "preconstruc-
on ban" provision of Section 122.47(c)(4) does not apply
i projects under construction as of the August 13, 1979,
fective date of the regulations.

  Any interested person may challenge the determination
r requesting an  evidentiary hearing within 30 days of issu-
ice of the notice.  The Regional Administrator may delay a
taring on a new  source determination until the hearing on
ie final permit  and consolidate the two hearings.
iquests for Modification, Revocation and Reissuance, or Termination        [124.13]

  The requests can be made by any interested person, including
discharger with a permit.  The Director may also initiate
dification, revocation and reissuance, or termination, see
:ction 122.31(c).  Formal requests must be in writing and must
ate all the relevant facts and reasons underlying the request.

     If the request for modification is granted:                    [124.13(b)(1)•
                                                                     124.32(a)(1)]
     — the Director will formulate a new draft permit
        incorporating the changes (modification may be
        based on the initial request itself, unless more
        information is needed, in which case the Director
        may require a new permit application).
     — only those terms requested to be modified will
        be re-opened.  (All other aspects of the permit
        will remain in force.)
                                    II-9

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       If the request for revocation and reissuance is granted:      [124.13(b)(1);
                q                                                     124.32(a)(l)]
       — the Director will  formulate a new draft permit
          incorporating  the  changes and shall  issue a notice
          of intent  to revoke  the  existing permit.

       — the same procedures  would be followed  as if the
          permit  had expired and was being reissued.
     •  If the request for termination is  granted:                       [124.13(b)(2) ;
                                                                         124.32(a)(l)]
        — the Director shall issue a notice  of  intent
           to terminate.

        — see also Procedure for Handling Application After
           Deciding to Deny or Terminate (page 11-11).


     •  If the modification request is denied:                          [124.13(b)(2) ]

        — the Director will make a written reply to the
           discharger (and to the requester,  if different)
           briefly explaining his reasons  for that decision.

        — there is no automatic right to  a hearing on this
           determination.

     (Note:  the procedure for the grant of a request  for
             termination is covered later  on in this chapter.)
        Any such draft permit or notice of intent to revoke and         [124.32(b)]
        reissue or terminate must, as with all permit decisions, be
        based on the administrative record.
Permits Required on Case-by-Case Basis                                  [124.14]

     The Director, on a case-by-case basis, may determine that the

following facilities or operations are significant contributors of

pollution to waters of the United States and must obtain individual

permits:

     •  Concentrated animal feeding facilities;                         [122.42]

     •  Concentrated aquatic animal production facilities;              [122.43]

     •  Separate storm sewers; and                                      [122.45]

     •  Certain facilities other than separate storm sewers,            [122.48]
        which may also be covered by general permits.
                                        11-10

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     If the Regional Administrator decides that an individual permit

is required, he or she will give written notice to the discharger.

Notice will:

     •  Explain the reasons for the decision;

     •  Include a permit application;
     •  State that the application must be properly submitted
        within 60 days; and

     •  In the case of general permits, state that the general          [122.48(e)(2)]
        permit no longer authorizes the owner or operator to
        discharge pollutants (provided that there has already
        been an on-site inspection of the facility and a
        determination made that the facility should be regulated
        by a general permit).


     No evidentiary hearing is provided before requiring individual

permit applications.  The question as to whether the case-by-case

designation is proper and, thus, an individual permit should be

required can be raised by the potential individual permittee (or

other interested person) during the public comment period and any
subsequent hearings.
Procedure for Handling Application After Deciding to Deny or Terminate  [124.15;
                                                                         124.321
     If a permit is denied or terminated, the same basic pro-
cedures would be followed as apply to permit issuance:

     •  A notice of intent to deny or terminate
        will be issued

     •  Notice will be accompanied by a fact sheet or
        statement of basis

     •  Notice will be made available for public comment

     •  A response to comments will be prepared

     •  A final decision will be prepared

     •  An evidentiary hearing with a right of appeal to
        the Administrator may be requested on the issues
        raised.
                                       11-11

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                PROCEDURES ON STATE CERTIFICATION                         [Subpart  C]
Introduction                                                                 [124.21]


    Section 401(a)(1) of the Clean Water Act prohibits the EPA from

issuing a permit until certification is granted or waived by

the state in which the discharge originates.  All applications
without state certification must, therefore, be forwarded to

the appropriate state agency, along with a request for certi-

fication.  If the draft permit is prepared, and state certi-
fication is still not received, the Regional Administrator

must send the state the following:


    •   A copy of the draft permit, and

    •   Notice that the

        — EPA cannot take further action until the state
           either grants or denies certification, or waives
           the right to certify; and

        — right to certify will be deemed waived unless
           exercised within a specified reasonable time
           (not to exceed 60 days) from the date the draft
           permit is sent, unless unusual circumstances
           require a longer time-.
State Certification                                                          [124.22]


    If the state decides to grant or deny certification, it
will provide notice, including a copy of any certification
to the applicant and the Regional Administrator.


    A state certification must be in writing and must include:


    (1) The terms or conditions which will result in
        compliance with applicable state or Federal law
                                      11-12

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    (2)  If the state is certifying a draft permit,  it must
         identify:

         a.  any conditions in the draft permit which should
             be made more stringent to comply with applicable
             state and Federal law (the Clean Water  Act)  as well
             as the applicable provisions of the Act or state
             law upon which each condition is based.  Ordinarily
             states will probably limit their certifications to the
             requirements of their own state laws, rather than the
             Clean Water Act.

         b.  the extent to which each term or condition can be
             made less stringent without violating the require-
             ments of state law, a "ceiling".

    Note that the following conditions apply to state certification

procedures for EPA-issued permits:

    •  No final permit will be issued unless it incorporates             [124.23(a)]
       the requirements specified by the state in (1) and
       (2)a above.

    •  Failure of the state to specify as required in (2)a and
       (2)b above will be deemed a waiver of the right to
       certify with respect to such condition or term.

    •  Forcing the states to set as a ceiling the minimum terms
       and conditions which will be necessary to comply with
       applicable state law will alleviate the need for
       continual resubmission each time a draft permit is made
       less stringent as a result of public review during the
       permit issuance process.

    •  The states, however, may not require the EPA to adopt             [124.23(c)]
       less stringent conditions, nor condition or deny
       dertification on the grounds that state law requires
       less stringent conditions than Federal law.


Change in State Law                                                      [124.23(b)]

    If, after state certification has been granted,  there is a change
in state law, or certain provisions of the state law are found invalid
by a state court, the state may issue a modified certification or

notice of waiver, and forward it to the EPA.


    If the modified certification is received by the EPA prior to final
agency action, the permit will be issued consistent  with any more stringent

requirements of state law as specified by conditions identified in the
certification (unless change in certification is based on a relaxation
of state law).

                                    11-13

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    After final agency action, the Regional Administrator may
modify the permit only to the extent necessary to delete any
conditions found invalid by a state court.  No EPA appeal
proceedings are available to contest conditions specified by the
state in its certification;  relief is only available through
state procedure.
                                    11-14

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  CHAPTER III
PREPARATION OF
 DRAFT PERMIT

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                                CHAPTER III
                  SUBPART D—PREPARATION OF  A DRAFT PERMIT
                                  OVERVIEW
     When the EPA or approved states receive an application that meets NPDES
requirements, they must tentatively decide whether to issue or deny the permit.
If they tentatively decide to issue the permit, a draft permit will be prepared
and it will be made available for public review.   The draft permit will specify
all the compliance schedules, limitations, requirements and conditions to be
placed on the discharger.

     The EPA and the states are also required to prepare a fact sheet or statement
of basis for each draft permit.  A fact sheet is required for draft"permits
covering major dischargers, general permits, those arousing widespread public
interest or raising major issues, and those incorporating a variance or
modification.  It is not intended that a fact sheet be required whenever there
is any permit mnriifiration; rathpr, it is required only when the entire^permit
or significant terms or conditions are being modified, or the permit contains
modified terms or conditions specifically authorized by the Act (such as Section
301(i) or 301(h)).  The fact sheet will set forth the major facts and the
significant questions considered in setting the terms of the draft permit.

     A statement of basis is required for all other permits.  It presents,  in
less detail, the derivation of the terms and conditions of the permit and the
reasons for them.

     Any permit terms and conditions formulated by the EPA will be based on an
official agency file, called the administrative record.  The administrative record
will typically consist of the application, draft permit, statement of basis or
fact sheet, supporting documents and data.  The record will be made available to
the public for inspection and copying.

                                    III-l

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     This chapter includes examples of a statement of basis,  a fact  sheet,
and an administrative record.   For a complete analysis of the procedures,
refer to the appropriate section of the regulations.


     The following forms are included:
     •  Model formats for a statement of basis and a fact sheet,  with
        helpful hints for preparing the documents.

     •  Suggested formats for an index to the administrative record for
        both draft and final permits, including the text of the rules
        governing preparation and contests of the record.  Also included
        is a sample index to documents, listing some of the specific docu-
      .  ments that would be found in a typical administrative record.
                                   III-2

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                                                   [Statement  of  Basis]
         UNITED STATES  ENVIRONMENTAL  PROTECTION AGENCY

                           REGION  A

                       402  Permit  Street
                     Discharge, OH 95217
                      STATEMENT OF BASIS
                    DRAFT NPDES PERMIT TO
                 DISCHARGE INTO THE WATERS OF
                       THE UNITED  STATES
                               NPDES Permit No.
                               Application No.
                    [Optional,  State Permit No.
                       if available]
  Name and Address of Applicant
  Name and Address of Facility
    where Discharge Occurs
  Receiving. Water:
  Classification:
  I.   LOCATION OF DISCHARGE

      The above named applicant has applied for an NPDES permit,
      which will be issued by the U.S.  Environmental Protection
      Agency to discharge into the designated receiving water.
      A description and/or sketch of the location of the discharge
      is appended as Attachment I.  [Generally, a description alone
      should be sufficient for the statement of basis.]

 II.   DESCRIPTION OF APPLICANT'S FACILITY AND DISCHARGE
               ^                                           4M
               Provide a brief factual description of the
               kind of facility, parameters discharged and
               concentrations (from permit application), and
               the processes and sources which contribute
               to each discharge.
               ^                                           «•
III.   DESCRIPTION OF LIMITATIONS AND CONDITIONS                [124.33]

      Discharge 001

      •  Briefly refer to each effluent parameter - explain how
         how each limitation was denied - identifying tech-
         nologies applied and degree of production or control
                             III-3

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   expected from such treatment technologies.   Reference
   any calculations made in determining that a particular
   parameter did not need to be limited.  Cite sources
   of limitations (e.g., Guidelines/Development Document/
   Guidance).

   Briefly describe the basis for selection of monitoring
   requirements.
Discharge 002
                E<
Follow Same Procedure
General Conditions

•  Briefly describe any important or case-specific general
   conditions.  Explain the reasons and basis for the
   conditions.

Compliance Schedules

*  Briefly describe reasons for Compliance Schedules —
   highlight important issues.
          N.B.  The "STATEMENT OF BASIS" is intended to be
          brief, concise but complete.  The Preamble at
          44 FR 32881 states:

              In many cases the  "statement of basis' could
             consist of the internal memorandum prepared
             within the Agency which informs the person
             signing the permit  of the guidelines or other
             source of the effluent limits and any issues
             which the permit raises.  By utilizing such an
             approach, EPA believes we are maximizing the
             utilization of the  permit issuing authority's
             limited resources without denying the public
             or permittee basic  information upon which to
             judge the adequacy  of the permit.

             THEREFORE

             Existing Regional practices, unchanged, may be
             sufficient in many  cases to serve as a statement
             of basis.  Such a determination of existing
             sufficiency must be made by each Region.
                       III-4

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                                        [Fact Sheet for:   (1) Major
                                       Dischargers;  (2) Permits Incor-
                                       porating a Variance or Modifica-
                                       tion; (3) Permits which Raise
                                       Major Public  Issues or with
                                       Widespread Public  Interest.  Fact
                                        Sheet for General  Permits would
                                       be  similar but would not identify
                                       applicants and would justify
                                       general permit program area,
                                        etc. ]
        UNITED  STATES  ENVIRONMENTAL  PROTECTION AGENCY

                          REGION A

                      402  Permit Street
                    Discharge,  OH 95217
                         FACT  SHEET
            DRAFT NPDES PERMIT TO DISCHARGE INTO
               THE WATERS OF THE UNITED STATES
                              NPDES Permit  No.
                              Application No.
                   [Optional,  State Permit  No.
                      if  available]
 Name and Address of Applicant
 Name and Address of Facility where
   Discharge Occurs
 Receiving Water:
 Classification:
 I.   LOCATION OF DISCHARGE

     The above named applicant has applied for an NPDES permit,
     which will be issued by the U.S.  Environmental Protection
     Agency to discharge into the designated receiving water.
     A description and/or sketch of the location of the
     discharge is appended as Attachment I.   Enclose location
     map if submitted as part of application.

II.   DESCRIPTION OF DISCHARGE'

     A quantitative description of the existing discharge in
     terms of significant effluent parameters is appended
     as Attachment II.
                            III-5

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III.   DESCRIPTION OF LIMITATIONS AND CONDITIONS

      The effluent limitations in the draft Permit as well as
      monitoring requirements, schedules of compliance and
      special conditions are described in Attachment III.   Also
      included in Attachment III is an explanation of the  basis
      for each limitation or condition in the draft Permit.
 IV.  STATE CERTIFICATION REQUIREMENTS
            State whether there is a 401 Certi-
            fication for this permit - if not -
            why not.  Describe specific state
            certified limitations (as opposed
            to EPA-developed permit limitations),
                      [Subpart  C]
                      [124.21 et
                       seq.]
      Review and appeals of conditions specified by the
      State shall be made through the applicable pro-
      cedures of the State and may not be made through
      EPA procedures.

  V.  VARIANCE OR MODIFICATION (if applicable)
                      [124.23(e)]
            A brief statement of reasons why a
            requested variance modification is
            or is not justified.
                      [124.34(b)
                       (5)]
 VI.  EPA CONTACT

      Additional information concerning the draft Permit may
      be obtained between the hours of 	a.m. and
      	p.m., Monday through Friday from:
                         Name
                         Address
                         Room Number
                         Telephone
       Dated
Regional Administrator
                             III-6

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                   ATTACHMENT I                       [124.34(b)
                                                       (31)]
•  Attach a sketch or a detailed description of the location
   of the discharge point(s).

      e.g., Use location map or sketch from application

            or prepare sketch from USGS maps
      NOTE:  Sketch or detailed description is only
             required "where appropriate".  This should
             mean in any case where use of a sketch or
             detailed description will make the fact sheet
             clearer and more easily understandable.
                        III-7

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                        ATTACHMENT II
DESCRIPTION OF DISCHARGE:

Discharge 001    (Describe processes and other sources
                  which contribute to the discharge)

Effluent Parameter       Maximum Ib/day (mg/1)      Average Ib/day  (mg/1)
Discharge 002     (Describe sources, etc.)

Effluent Parameter       Maximum Ib/day  (mg/1)      Average Ib/day  (mg/1)
Discharge 003
                            III-8

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                       ATTACHMENT III


DESCRIPTION OF LIMITATION AND CONDITIONS:

Discharge 001

Effluent Parameter      Discharge Limitations  Monitoring Requirements
                        Daily Avg.  Daily Max.  Frequency  Type
   Parameter #1

   — Citation to Statutory/Regulatory Provisions on which
      limitations are based.

   — Description of technologies selected and effluent
      reduction or control expected from such treatment
      technologies.  Refer to Guidelines/Development Document/
      Guidance, Treatability Manuals, BMP Guidance Documents, etc.

   — Any calculations or other necessary explanation of
      derivation of limitations/monitoring requirements.  Include
      all calculations necessary to convert effluent guideline
      limitations to permit limitations, all 402(a)(1) Best
      Engineering Judgment calculations, etc.  Include any calculations
      used to determine  that an effluent limitation for a parameter
      was not necessary.

   — Reference any EPA  national policy guidance relied on such
      as the National Municipal Policy, the Second Round Permits
      Policy, etc.
 •   Parameter  #2:

 Discharge  002



 Discharge  003
                            III-9

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General Conditions

•  Reference 122.14

•  316(a) or 316(b) or other study requirements


Compliance Schedules

•  List any compliance schedules with statutory/regulatory,
   or other justification for the dates selected.

   Attain BCT or BAT limitations on    	.
   Attain interim limitations of 	on
                             II-I-10

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                                         [Designation of Record Clerk]
    UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                      REGION A

                  402 Permit Street
                 Discharge,  OH 95217
                      Re:  Ajax Manufacturing Company
                           NPDES Permit Application No.
                           Designation of Record Clerk
In accordance with the requirements of 40 C.F.R.  124.35(e),

the following person is designated Record Clerk with respon-

sibility for maintaining the Administrative Record for the

above identified draft Permit:

                  Name
                  Address
                  Telephone
   Dated                   Regional Administrator
                        III-ll

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                                                       [Administrative  Record  For  Draft  Permit]
                    UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                                           REGION A

                                      402 Permit Street
                                     Discharge,  OH  95217
                                     ADMINISTRATIVE RECORD
                                      FOR DRAFT PERMIT
APPLICATION NO:


PERMIT NO:


PERMITTEE:
         S12O5  Administrative record for EPA
           (a) Decisions by the Regional
         Adminstrator to formulate a draft permit
         under S 124.31 or S 124.32 shall be made
         on the basis of the administrative record
         defined in this section.
           (b) The record for a draft permit under
         § 124.31 shall consist of:
           (1) The initial application and any
         supporting data furnished by the
         applicant:
           (2) The draft permit;
           (3) The statement of basis required by
         S 124.33 or fact sheet prepared under
         §12434:
           (4) All documents cited in the fact
         sheet or die statement of basis;
           (5) Other documenta contained te the
         supporting file for the permit, including
         correspondence, telephone and meeting
         memoranda, compliance reports, etc;
          (6) All comments submitted en a new
         source determination under $  124.12,
         and any other documents H>A cooaidera
         relevant to the determination; and
           (7) Any environmental  asseranenU
         negative declaration, or environmental
         Impact appraisal dial may have been
         prepared.
  (c) The record for formulating a draft
permit under § 124.32 shall consist of the
draft permit, the statement of basis
required by J 124.33 or fact sheet
prepared under $ 124.34 and all
documents cited in the fact sheet or the
statement of basis.
  (d) Material readily available at the
issuing Regional Office or published
material.which is generally available,
and which is included in the
administrative record trader the  ,
standards of paragraphs (b) and (c),
does not need to be physically included
in the same file as the rest of the record
as long as it is specifically refeieuied in
the statement of basis or the fact sheet
  te] No later than the time a draft
permit is Issued, a Record Clerk shall be
designated with responsibility for
maintaining (he records estabttshed-
under this section. Copying of any
documents in the record shall be
allowed under appropriate
arrangements to prevent their loss. The
charge for such copies shall be made In
accordance with the written «rj"»dnle
contained In 40 CFE Part 2.
f Comment The administrative record far
draft pennlU under Una section wiU comprise
the bulk of the material for the final
administrative .record See § 121&4.J
                                               111-12

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 CHAPTER IV
PUBLIC NOTICE

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                                  CHAPTER IV
                 SUBPART E—PUBLIC NOTICE,  COMMENT AND HEARINGS
                                   OVERVIEW
    Part 124 ensures public notice and participation in permit proceedings.
This chapter will cover the methods for circulating notice,  the contents of  the
notice, and the procedures to be followed during the comment period.

    Public notice must provide interested persons with a minimum of 30 days  to
comment on the draft permit and 30 days notice before a hearing.  Notice must be
mailed to certain Federal and state agencies, persons on mailing lists, appli-
cants, and other persons specified in the regulations.  Notice may also be
published, posted at municipal buildings, or provided in any other manner that
is designed to inform interested persons.

    The regulations also allow public hearings concerning draft permits to be
held whenever there is significant public interest.  The EPA may also schedule
such a hearing on its own initiative.

    Public comment takes on added significance under the new regulations. Unless
good cause for the failure to do so earlier is shown, parties cannot raise issues
for the first time at an evidentiary hearing.  All parties,  including applicants,
must now raise all objections and submit all relevant evidence at the public
hearings on the draft permit or by the close of the public comment period.  The
purpose of the change is to encourage resolution of issues at the time.of public
comment on the draft permit, rather than in the more cumbersome and expensive
evidentiary hearing.

    The regulations also specify the information"to be contained in the
public notice.  In accordance with these requirements, particular notice
forms have been prepared and appear at the end of this chapter.
                                    IV-1

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                     METHODS FOR CIRCULATING NOTICE                      [124.41]
    The Director must give notice of formulation of a draft
permit and notice of all hearings by two methods:
    •  A detailed mailed public notice sent to
       — the applicant
       — the U.S. Corps of Engineers
       — the appropriate Federal and state agencies, including
          affected state
       — any persons requesting information
       — all persons on a mailing list

    •  One of the following less detailed public notices
       — newspaper publication within area affected by the
          discharge; or
       — posting notice at the Post Office and principal
          office of the municipality affected by the discharge.
                                       IV-2

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         PROCEDURES FOR THE COMMENT PERIOD AND PUBLIC HEARINGS

Public Comments and Hearings                                                 [124.42]

     Public notice must provide interested persons with a minimum
of 30 days to submit written comments on the draft permit and
administrative record.  During this period, any interested person
may also make a written request for a public hearing, stating the
nature of the issues to be raised.   The Director may hold such a
hearing if there is significant public interest or in any other
such appropriate case.  Public notice must be given 30 days before
the hearing, and any interested person may submit oral or written
statements and data concerning the permit.  At the hearing, reason-
able time limits may be set for oral statements and all statements
may be required to be submitted in writing.
Raising Objections and Providing Information During Comment Period           [124.43]

     This public comment period takes on added significance under
the new regulations.  All parties, including applicants, must now
raise all objections and submit all relevant evidence at the public
hearings or by the close of the public comment period.
Terms Requested by Corps of Engineers and Other Governmental Agencies        [124.44]

     Government agencies, both Federal and State, will be expected
to comment during the public comment period.   In appropriate cases,
however, they may still be consulted informally before the draft
permit is formulated.
                                       IV-3

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     If, during the comment period,  the District Engineer of
the Corps of Engineers advises the Director in writing that
specified conditions should be included in the permit or that
the permit should be denied so as to avoid substantial impair-
ment of anchorage or navigation of U.S. waters, the Director
must follow such advice.   Any review on such action will pro-
ceed through the applicable procedures of the Corps of Engineers.

     Specified conditions submitted by any state or federal
agency with jurisdiction over fish,  wildlife, or public health
may also be included in the permit to the extent necessary to
carry out the provisions of the Clean Water Act.
Re-opening of Comment Period                                                 [124.45]

     The new regulations do not provide for an automatic "reply
comment" period, in which interested parties could respond to
points made during the main comment period.  However, when sub-
stantial new questions are raised during the public comment
period, the Director may

     •   re-open the comment period
     •   prepare a fact sheet or revised fact sheet, and
         re-open the comment period, or
     •   prepare a new draft permit appropriately modified.
                                        IV-4

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                                                         [Notice of "Public Hearing]
Permit No.
              UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                                  REGION A

                             402 Permit Street
                            Discharge, OH 95217
   NOTICE OF PUBLIC HEARING ON
      DRAFT NPDES PERMIT TO
    DISCHARGE INTO THE WATERS
      OF THE UNITED STATES

                   Date of Notice
                                                                      [124.41(g)]
Application No.
Name and Address of Applicant
Name and Address of Facility
 Where Discharge Occurs
                                            [124.41(c)(2)]
Receiving Water:
Classification:
     This is to give notice that on
                                              [124.41(g)(2)]
                                          date
the Regional Administrator or a Presiding Officer designated

by him/her will conduct a Public Hearing on the above identified

Draft Permit.  The hearing will be held at 	

and will begin at

have been heard.
time
                     name and address of place of hearing
            and continue until all interested persons
                                      IV-5

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     EPA's contact person for information regarding the draft     [124.41(c) (3)]

permit and from whom copies of the permit and the Statement of

Basis or Fact Sheet may be obtained is:

                   Name

                   Address

                   Telephone
     The administrative record containing all documents

relating to the permit is located at
                                     room number and address
and is available for public inspection between 	 a.m. and

 	 p.m. Monday through Friday, except holidays.
                        Section 316(a) information
                        if  applicable.
     Public notice of the draft permit was dated
     LOCATION  OF DISCHARGE

     A  description  and/or sketch of the location of the

     discharge is appended  as Attachment  I.
 *  THE REMAINDER  OF THIS  INFORMATION IS ONLY NECESSARY*
 *  FOR THE MORE DETAILED  MAILED PUBLIC NOTICE*
[124.41(c)(4)]
[124.41(c)(5)]
   f!24.41(e)]
[124.41(g)(D]


[124.41(c)(2)]
   [124.41(d>]
      DESCRIPTION  OF APPLICANT'S FACILITY AND DISCHARGE
                  Provide  a  brief  factual  description of
                  the kind of  facility,  and the processes
                  and sources  which  contribute to each
                  discharge.
                                       IV-6

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                        New Source Information  if
                        applicable including  EIS
                        information.
[124.41(d)(3)]
     The purpose of this Public Hearing is "to receive comments

from interested persons and the public on the Draft Permit

proposed by EPA for this facility.   The following is a summary

of the procedures which will be followed at  the hearing:
[124.41(g)(3)l
[124.41(d)(2)l
      [124.42]
     1.  The Presiding Officer shall have authority to open
         and conclude the hearing and to maintain order.

     2.  Any person appearing at the Hearing may submit oral
         or written statements and data concerning the draft
         permit.

     3.  The Presiding Officer may set reasonable limits on
         the time allowed for oral statements.
                  OPTION: The notice may prescribe time
                  limits  (i.e., number of minutes allowed
                  for each person or group)
                                      OR
                  The notice may require submission of
                  statements in writing.
 [124.42(b)(2)]
                                      IV-7

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                                                    [Public Notice of Draft Permit
                                                    Except General Permits]
                UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                                  REGION A

                             402 Permit Street
                            Discharge,  OH 95217
                     PUBLIC NOTICE OF DRAFT NPDES PERMIT TO           [124.41(c)]
                              DISCHARGE INTO THE
                          WATERS OF THE UNITED STATES
Permit No. 	          Date of Notice

Application No. 	
Name and Address of Applicant
Name and Address of Facility.                                       [124.41(c)(2)]
  Where Discharge Occurs
Receiving Water:
Classification:
     This is to give notice that the U.S. Environmental Protection

Agency has formulated a Draft Permit for the above-identified facility

under the National Pollutant Discharge Elimination System.


     EPA's contact person for information regarding the draft        [124.41(c) (3)]

permit and from whom copies of the permit and the Statement of

Basis or Fact  Sheet may be obtained is:

                 Name

                 Address

                 Telephone
                                      IV-8

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     The administrative record containing all documents

relating to the draft permit is located at
[124.41(c)(4)]
                                           room number and address
and is available for public inspection between 	 a.m.  and 	 p.m.

Monday through Friday, except holidays.
                         Section 316(a) information
                         if applicable.
[124.41(c)(5)]
   [124.41(e>]
     LOCATION OF DISCHARGE

     A description and/or sketch of the location of the discharge    [124.41(c)(2)]

     is appended as Attachment I.
     DESCRIPTION OF APPLICANT'S FACILITY AND DISCHARGE
                 Provide a brief factual description of the
                 kind of facility, and the processes and
                 sources which contribute to each discharge.
   [124.41(d)]
                 New Source Information if .applicable
                 including EIS  information.
     COMMENT PROCEDURES

     EPA's comment and public hearing procedures may be found

     at  40 C.F.R. §124.42.  The following is a summary of those

     procedures:

         1.  The comment period during which written comments
             on the draft permit may be submitted extends for
             30 days from the date of this Notice.  The comment
             period for this permit closes on 	
[124.41(d)(3)]
                                                    date
                                      IV-9

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2.   During the comment period,  any interested person
    may request a Public Hearing by filing a written
    request which must state the issues to be raised.
    The last day for filing a request for public
    hearing is 	.
                      date
    In appropriate cases, including cases where there
    is significant public interest, the EPA Director
    may hold a public hearing.  A decision has not
    yet been made as to whether a public hearing will
    be held for this permit.
    OR:  If a decision to hold a hearing has already been
         made, state DATE, TIME AND PLACE of hearing.
    NOTE:  In cases of Permits which will follow the
           Nonadversary Procedures of Subpart I, include
           the information required by §124.41(i).
    For example:

         Further action on this draft permit will be
    governed by Subpart I of Part 124 of EPA's regulations
    (Nonadversary Procedures for Initial Licensing).  These
    procedures are conducted informally but, in order to
    participate, interested persons must submit a written
    request for a hearing.  In this case, written requests
    for hearings must be submitted to the Regional  Hearing
    Clerk no later than 	.
                              date

         While such hearings are informal, the issues
    presented in the hearing must have been raised  in the
    comment period on the draft permit, and testimony of
    witnesses must ordinarily be submitted in writing
    before  the hearing.

         For a form of Notice of Panel Hearing, see page
    VIII-6.
                               IV-10

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                                                 [Public Notice of Draft General
                                                 Permit to be published both  in
                                                 a  daily  or weekly newspaper
                                                 within the area of  the discharge
                                                 and  in the Federal  Register ]
                UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                                  REGION A
                              402 Permit Street
                             Discharge,  OH 95217


                    PUBLIC NOTICE OF DRAFT GENERAL PERMIT
     This is to give notice that the U.S. Environmental Protection Agency
has formulated a Draft General Permit for the General Permit Program Area
(GPPA) described in Attachment I to this notice.

                  ["Prepare a map or narrative description  I     [124.41(f)(2)(ii)]
                  |_of the GPPA for attachment.            J
     EPA's contact person for information regarding the draft permit
and from whom copies of the permit and the Statement of Basis
or Fact Sheet may be obtained is:

                   Name
                   Address
                   Telephone

     The administrative record containing all documents         [124.41(c)(4)]
relating to the permit is located at	
                                     room number and address
and is available for public inspection between 	a.m. and
      i.m. Monday through Friday, except holidays.
                                      IV-11

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DESCRIPTION OF ACTIVITIES TO BE COVERED
               Briefly describe the activities or
               operations to be covered by the
               General Permit.
BASIS FOR CHOOSING GPPA
               Explain reasons and basis for
               selection of the GPPA.
               New Source Information if
               applicable.
[124.41(d)(3)]
COMMENT PROCEDURES
EPA's comment and public hearing procedures may be found

at 40 C.F.R. §124.42.  The following is a summary of those

procedures:

    1.  The  comment period during which written comments
        on the Draft General Permit may be submitted
        extends for 30 days from the date of this Notice.
        _T.he  comment pe.riod for  this permit closes
        on 	.
                 date

    2.  During the comment period, any interested person
        may  request a Public Hearing by filing a written
        request which must state the issues to be raised.
        The  last day for filing a request for public
        hearing is 	.
                          date

    3.  In appropriate cases, including cases where there
        is significant public interest, the EPA Director
        may  hold a public hearing.  A decision has not
        yet  been made as to whether a public hearing will
        be held for this permit.
            OR:  If a decision to hold a hearing has
                 already been made, state DATE, TIME,
                 AND PLACE of hearing.
                                  IV-12

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  eHAPTiE'R V
VARIANCES AND
MODIFICATIONS

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                                 CHAPTER V
              SUBPART F-SPECIAL PROVISIONS FOR VARIANCES AND
                          STATUTORY MODIFICATIONS

                                  OVERVIEW

     The Clean Water Act provides for certain variances, modifications, and
extensions of its statutory requirements.  The procedures regarding applica-
tion for, processing of, and decision on requests for variances are covered
in Subpart F of 40 CFR 124.  However, to properly understand variance proce-
dures, reference must be made to the Act itself and the substantive criteria
for granting such variances, modifications, and extensions set out (in the
cases where regulations have been promulgated) in Subparts C, D, E, F, G, H,
I, and J of 40 CFR. 125.

     The obligation to request variances, modifications, or extensions is on
the discharger.  Requests must be filed by certain deadlines and be accompanied
by applications substantiating that certain conditions were met.  The deadlines
and the conditions vary according to the type of variance, extension, or modifi-
cation requested.  The procedures for processing variance requests are similar
for all but 301(h) secondary treatment modifications and 316(a) thermal variances.
If a variance request is granted, a draft permit will be prepared to reflect the
variance.  Denials of requests will be supported in the record of the relevant
permit.  Grants and denials of variance requests are also subject to appeal.

     This chapter describes the general procedures for handling variance
requests.  Specific procedures, with reference to applicable sections of the
Act and regulations, are listed for the various types of variance requests.
                                     V-l

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             GENERAL PROCEDURES FOR PROCESSING
           VARIANCES AND STATUTORY MODIFICATIONS
Application
     In order for a discharger to obtain a permit containing
provisions that vary from statutory requirements, a written
application must be submitted.  The actual contents of the
application and the deadline for its submittal depend on
the type of variance, modification, or extension being
requested.

     In the case of a Section 301(c) economic variance or a          [124.51(d)(1);
Section 301(g) water quality variance the discharger may              124.51(b)(2)(i)]
initially apply for a variance before the permit application
is submitted by submitting an "initial" application.*  If
the Director anticipates such a potential variance or if,
for example, a fundamentally different factors variance is
still pending from the first permit, he or she may require
the discharger to submit a variance application  to aid in
writing a draft permit.

     A discharger lacking necessary information  to complete
an application for a variance under 301(c) or 301(g) may
request an extension of the deadline for submitting the
application.  The Director may grant such an extension
for up to six months.

     One other factor which may affect the manner of and
deadline for applying is the status of applicable regula-
tions.  Certain Subparts of 40 CFR 125 covering  criteria
for granting variances had not been promulgated  as of
August, 1979.
*Because there was also a statutory deadline for submitting requests for Section 301(h)
 secondary  treatment waivers, Section 301(h) applicants also submitted "initial"
 applications; this section does not apply to those situations.

                                     V-2

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Effect on Permit

     Any modification, extension,  or other variance must
be accommodated in a draft permit.  The manner in which
this occurs depends on the status  of the permit at the
time the variance request is received.

     If the permit application has been received, but the              [124.53(a)(1)]
draft permit has not yet been formulated, a determination
on the variance request shall be made and reflected in the
draft permit.  An exception would be made if the request
would unduly delay the permit; in such a case, the handling
of the variance request may be separated from the permit
process.

     If the draft permit has been formulated, but a final              [124.53(a)(2)]
permit has not yet been issued, the permit may be stayed
and a determination on the variance request incorporated
into it.  As above, an exception would be made to separate
the variance request from the permit process if the permit
were threatened with undue delay.

     If a final permit has already been issued, or if the              [124.53(a)(3)]
permit process has been separated from the action on the
variance request, a new draft permit may be formulated to
accommodate any variance granted.

     Where appropriate, the fact sheet or administrative
record shall reflect the bases for any variances.
                                      V-3

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Appeals
     Generally, permit provisions that represent a modifi-
cation, extension, or variance from statutory requirements
are subject to the same hearings and appeals as any other
provisions.  For state-issued NPDES permits, any Federal
determination on a variance request may be appealed by
filing for a Subpart I hearing.  Contested variance
provisions of federally issued permits would be heard
under Subpart I or Subpart H, at the discretion of the
Regional Administrator.

     Final appeal within the EPA would be to the Administrator.          [124.101]
                                      V-4

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                            SPECIAL PROCEDURES:
                APPLICATION PROCEDURES AS COVERED BY 124.51
                                    AND
                  DECISION PROCEDURES AS COVERED BY 124.52

Request:  Non-POTW variance based on the presence of "fundamentally different
factors" from those forming basis for effluent limitations guideline.

Authority:  124.51(b)(l)

Deadline:   Close of public comment period on draft permit.

Application Content:  Part 125, Subpart D

Processing;  Normal procedures under 124.52-.54.
             State Director or Regional Administrator may deny or recommend
             approval.
             EPA DAAWE may deny or approve.
Request:  Non-POTW variance from BAT requirements, based on effluent limitations
guidelines for 302(b)(2)(F) pollutants because of economic capability of owner
or operator.

Authority;  124.51 (b)(2)
            301(c)

Deadlines:  •  Initial "post card" application by:
               (1)  September 25, 1978 for pollutants controlled by BAT effluent
                    limitation guideline promulgated before December 27, 1977; or
               (2)  270 days after promulgation of an applicable effluent
                    guideline for guidelines promulgated after December 27, 1977.
            •  Completed request by close of public comment period on draft permit.
               Extension of up to six months may be granted upon request
               (Section 124.51(d)(2)).
                                      V-5

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Application Content;  Substantive content not available (to be published in
                      Part 125, Subpart E).

Processing:  Normal procedures under 124.52-.54.
             State Director or Regional Administrator may deny or recommend
             approval.
             EPA DAAWE may deny or approve.
Request:  Non-POTW variance from BAT requirements based on effluent limitation
guidelines for 301(b)(2)(F) pollutants because of certain environmental
considerations.

Authority:  124.51(b)(2)
            301(g)

Deadlines:  •  Initial "post card" application by:
               (1)  September 25, 1978, where applicable effluent limitation guideline
                    promulgated before December 27, 1977; or
               (2)  270  days after promulgation of applicable-effluent guideline
                    promulgated after December 27, 1977.
            •  Completed request by close of public comment period on draft permit.
               Extension of up to six months may be granted upon request
               (Section  124.51(d)(2)).

Application Content:  Substantive content not available  (to be published in
                      Part 125, Subpart F).
                    *
Processing:  Normal Procedures under 124.52-.54.
             State Director or Regional Administrator may deny or recommend approval.
             DAAWE may deny or approve.
                                       V-6

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Request:  Non-POTW variance of effluent limitations based on other than promulgated
effluent limitation guidelines.

Authority:  124.51(b)(2)
            301(c) or 301(g)

Deadline:  Close of public comment period on draft permit.  Extension of up
           to six months may be granted upon request (Section 124.51(d)(2)).

Application Content;  Substantive content not available  (to be published in
                      Part 125, Subparts E and F).

Processing:  Normal procedures under 124.52-.54.
             State Director or Regional Administrator may deny or recommend approval.
             DAAWE may deny or approve.
Eequest:  Non-POTW extension of statutory deadlines in SOlCb)(1)(A) and  .
SOI(b)(1)(C) based on delay in completion of a POTW into which the source
is  to discharge.
Authority;  124.51(b)(3)
            301(1)(2)-

Deadlines:  (1)  June 26, 1978; or
            (2)  180 days after the relevant POTW requests an extension under
                 124.51(c)(2).

Application Content:  Part 125, Subpart J

Processing:  Normal procedures under 124.52-.54.
             Director may grant or deny.
                                       V-7

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Request:  Non-POTW extension of' statutory deadline in 301(b)(2)(A) for best
available control technology based on use of innovative technology.
Authority;  124.51(b)(4)
            301(k)

Deadline;  Close of public comment period on dischargers first draft permit
           requiring BAT.

Application Content;  Substantive content not available (to be published in
                      Part 125, Subpart C).

Processing:  Normal procedures under 124.52-.54.
             Regional Administrator may grant or deny.
             State Director may grant or deny after consultation with the
             Regional Administrator.
Request:  Modification of requirements under 302(a) for achieving water quality-
related effluent limitations.

Authority:  124.51(b)(5) for non-POTWs; 124.51(c)(3) for POTWs
            302(b)(2)

Deadline;  Close of public comment period on draft permit.

Application Content;  Explain why requirements of 302 have been met.

Processing;  Normal procedures under 124.52-.54.
             State Director or Regional Administrator may deny or recommend approval.
             DAAWE may deny or approve.
                                     V-8

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Request:  Non-POTW variance for thermal component of a discharge.

Authority;  124.51(b)(6)
            316 (a)

Deadlines:  (1)  Close of public comment period on draft permit if thermal effluent
                 limitations are established under 402(a)(1) or are based on water
                 quality standards.
            (2)  With application for permit under 124.11.
N.B.  Initial application may be filed and additional studies filed later
(see Section 124.56).

Application Content:  Part 125, Subpart H

Processing:  Special procedures under 124.56.
             Director may grant or deny.
Request:  POTW modification of secondary treatment requirements of 301(b)(l)(B)
for discharges into marine waters.

Authority:  124.51(c)(l)
            301(h)

Deadlines;  (1)   Initial application by September 25,  1978
            (2)   Completed application by  September  13,  1979.

Application Content:   Part 125,  Subpart G

Processing:   Special  procedures  under 124.55.  For further  information  contact
              301(h) Task Force,  Office of  Water  Program  Operations  (WH-546),
              EPA,  202/426-^8972.
                                      V-9

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Request:  POTW extension from statutory deadlines in 301(b)(l)(B) and 301(b)(l)(C)
based on delay in receipt of Federal funding for construction of the POTW.

Authority:  124.51(c)(2)
            301(1)(1)

Deadline:  June 26, 1978

Application Content:  Part 125, Subpart J

Processing:  Normal procedures under 124.52-.54.
             Director may grant or deny.
                                     V-10

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CHAPTER VI
ISSUANCE OF
  PERMIT

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                                CHAPTER VI
                     SUBPART G—ISSUANCE AND EFFECTIVE
                              DATE OF PERMIT
                                 OVERVIEW
     Subpart G covers the issuance of  final permits.   It  describes  the  pro-
cedures necessary to finalize a draft  permit and the  circumstances  under  which
provisions of a final permit become enforceable.

     The steps in issuing a final permit are included in the decision logic,
located in the Appendix.  A final, complete permit is issued only after certain
procedural requirements have been satisfied.  Also, a permit may be issued in
part and stayed in part, pending resolution of its contested provisions.   While
the decision logic  (illustrating the overall 1IPDES permit process)  covers permit
issuance procedures, a more detailed logic in this chapter (Figure VI-1)  provides
a method to segregate contested permit conditions from those which are uncontested
and therefore immediately enforceable.  A chart (Table VI-1) is also provided in
this chapter that summarizes when a permit, in part or otherwise, becomes effective.

     Certain steps are necessary for every permit.  There must be a public comment
period of at least 30 days.  Before issuing a permit, all significant comments
must be answered in writing.  If the final permit differs from the draft  permit,
all changes must be highlighted and the reasons for the changes explained.  The
responses to comments, and the explanation and justifications of changes, must be
made in writing and made part of the administrative record.
                                   VI-1

-------
      The administrative record,  established for the draft permit,  must  be
 updated for the final permit.   Included in the update are all comments  received
 during the public comment period,  responses to the comments,  records of any
 hearings held, and any supporting  documentation such as correspondence, compli-
 ance reports, and meeting memoranda.

      Certain final issuance procedures vary,  depending on the nature of the
final permit being issued.  For instance,  permits for some new sources require
preparation of a final EIS, which must be  issued at least 30 days before the
subject final permit can be issued.

     The provisions of a final permit contested in a hearing must  be identified
and separated from the uncontested provisions.  This process is somewhat difficult,
but its significance lies in the rule that uncontested provisions  of final permits
become effective and enforceable 30 days after the notice of a hearing is given.
The determination of uncontested provisions must be made when  a hearing  is granted
or an appeal is made to the Administrator.  Contested provisions are stayed pending
the outcome of the hearing or appeal.

      The procedures covered in Subpart G involve some significant  decision-
making by Agency officials.  The comments  in this subpart aid  in understanding
the subtle distinctions of these decisions.
                                    VI-2

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              ADMINISTRATIVE RECORD FOR FINAL PERMIT
     Any final permit issued under 124.61 for which the draft
permit was subject to the administrative record requirements
of 124.35 requires an administrative record.  Included in the
administrative record for the final permit are:

     •   The Administrative Record for the Draft Permit
         The required contents for that record are listed in
         124.35(b) for draft permits initiated by discharger
         applications and in 124.35(c) for draft permits
         initiated by the Director.

     •   All Comments Received During the Comment Period
         A comment period of at least 30 days is required for
         a draft permit, under 124.42(a).  Note that the
         comment period may be re-opened under 125.45(c).
         All written comments from the complete period must
         be included in the record.

     •   Tape(s) or Transcript(s) of Hearing(s)
         Public hearings on the draft permit may be held
         pursuant to 124.42(b).  The record of the hearing
         shall include all written materials submitted and
         all oral statements, reduced to written or taped
         form.

     *   Response to Comments
         The Director is required under 124.63(a) to respond
         in writing to comments submitted during the comment
                                    VI-3

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period and during any hearing.   The response shall
include:
—  Permit Changes.  Each provision in the final
    permit that differs from or is in addition
    to those in the draft permit shall be speci-
    fically identified.  The reasons for the changes
    shall be stated.
—  Response to Comments.  All significant comments
    shall be briefly described.  A response to each
    of the significant comments shall be made.
—  Cited documents.  Any documents cited in  the
    response to comments shall also be included.
Environmental Impact Statement
If required under 40 CFR §6.916, a final environmental               [124.62]
impact statement shall be prepared before the final
permit for a new source is issued.

The Final Permit

Other Supporting Documents
Any documents contained in the file supporting the
permit shall be included.  Examples are: copies of
notices, correspondence, logs of telephone conversations,
meeting memoranda, compliance reports, etc.
Any materials readily available at the issuing Regional
Office or published material which is generally available,
and which is included in the administrative record under
124.61 or 124.63, does not need to be physically included
in the same file as the rest of the record as long as it
is specifically referenced in the fact sheet, statement
of basis or in the response to comments.
                           VI-4

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                                                  [Administrative Record  for  Final Permit]
                   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                                            REGION  A

                                     402 Permit Street
                                    Discharge, OH  95217
                                   ADMINISTRATIVE RECORD
                                      FOR  FINAL PERMIT
APPLICATION NO:

PERMIT NO:

PERMITTEE:
           § 124.64  Administrative record for final
           permit Issued by EPA.
             (a) Decisions to issue a final permit
           under § 124.61 shall be made on the
           basis of the administrative record
           defined in this section.
             (b) The administrative record for any
           final permit shall consist of the
           administrative record for the draft
           permit and
             (1) All comments received during the
           public comment period required by
           § 124.42;
             (2) The tape or transcript of any
           hearing(s) held under § 124.42;
             (3) The response to comments
           required by § 124.63;
             (4) Any final Environmental Impact
           Statement;
             [5] Other documents contained in the
           supporting file for the permit, including
           correspondence, telephone and meeting
           memoranda, compliance reports, etc.;
           and
             (6) The final permit.
           These documents shall be added to the
           record as soon as feasible after their
           receipt or publication by the Agency.
             (c)(l) This section applies to all final
           permits where the draft permit was
           subject to the administrative record
           requirements of § 124.35.
  (2) Whether or not a draft permit was
 formulated or final permit was issued
 subject to this Subpart, the Regional
 Administrator, at any time prior to the
 rendering of an initial decision in an
 evidentiary hearing on that permit, may
 withdraw the permit in whole or in part
 and formulate a new draft permit under
 § 124.31 addressing the portions so
 withdrawn. The new draft permit shall
 proceed through the same process of
 public comment and opportunity for a
 public hearing, etc. as would apply to
 any other draft permit subject to this
 Part. Any portions of the permit  which
 are not withdrawn and which are not
 stayed under J 124.61 shall remain in
 effect.
  (d) Material readily available at the
 issuing Regional Office or published
 material which is generally available,
 and which is included in the
 administrative record under the
standards of this section or of § 124.63
("Response to Comments"), does not
need to be physically included in the
 same file as the rest of the record as
long as it is specifically referenced in
 the  fact sheet or statement of.basis or in
 the  response to comments.
                                              VI-5

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 PAGE NOT
AVAILABLE
DIGITALLY

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                                 TABLE VI-1

                       ENFORCEABLE PERMIT PROVISIONS
Existing Sources

Evidentiary hearing granted on
application for renewal of
existing permit
§124.61(f)
Evidentiary hearing granted in
whole or in part regarding permit
for existing source
§124.61(e)
Petition for review of denial of
request for evidentiary hearing
§124.61(e)
-All conditions of existing permit remain
 in full force and effect although the
 Regional Administrator,  on request of
 applicant,  can modify the existing
 permit to delete requirements which
 unnecessarily duplicate  uncontested
 provisions of the new permit

-Contested provisions stayed pending
 final Agency action

-Uncontested provisions continue in full
 force and effect
-All contested provisions stayed pending
 final Agency action

-Uncontested provisions become effective
 30 days unless denial of evidentiary
 hearing appealed (124.61 (e)(5)
-All contested provisions stayed pending
 final Agency action
New Sources or New Discharges

Evidentiary hearing granted regarding
permit for initial permit
§124.61 (c)
Petition for review of the denial
of an evidentiary hearing
§124.60(c)
 All contested provisions of stayed
 pending final Agency action and since
 there is no existing permit,  the source
 is considered to be WITHOUT A PERMIT
 PENDING FINAL AGENCY ACTION
                                     VI-7

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                   CHECKLIST OF DOCUMENTS TO INCLUDE
                        IN ADMINISTRATIVE RECORD
   LJ  Permit Application
   [~|  Designation of Record Clerk
   LJ  Draft Permit
   II  Statement of Basis/Fact Sheet
   I—I  Public Notice/Draft
   LJ  Notice of Public Hearing
   I	I  Comments
   I	I  Response to Comments
   CD  Final Permit
   I—I  Statement of Basis/Fact Sheet - Final
   I	I  Request for Evidentiary Hearing
   I—I  Order and Specifications of Regional Administrator
*-  I	I  Designation of Trial Staff and Decisional Body  [124.77]
	I,,'	Mr.i-i'no Of Grant of Hearing
   I	I  Request to be Party
  11  I _Rpfprral to Chief Administrative Law Judge
   I—I  Notice of Pre-Hearing Conference
   I—I  Appearances
   I	I  Pre-Hearing Conference Order
   I—I  Request for Intervention
   I	I  Order of Administrative Law Judge on Request for Intervention
   LJ  Stipulation
                                                                  JRB Associates, Inc.-
                                   VI- 8

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     CHAPTER VII
EVIDENTIARY HEARINGS

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                                  CHAPTER VII
                     SUBPART H—EVIDENTIARY HEARING PROCESS
                                   OVERVIEW
     An evidentiary hearing provides permittees a mechanism for challenging final
individual permits.  The hearing is to be conducted by a Presiding Officer, an
Administrative Law Judge.  Prehearing conferences may be held for the purposes of
obtaining stipulations, admissions, identifying matters not in issue, and matters
in dispute.  Time schedules may also be specified for the hearing and for exchanging
documents and data.  The Presiding Officer will also have wide authority during the
hearing, including the authority to examine witnesses, exclude or limit evidence,
and rule on motions and other procedural matters pending before him or her,
e.g., motions for summary judgment.

     The limited right of cross-examination in evidentiary hearings is also
explicitly recognized in the new regulations.  There is no automatic right of
cross-examination and the proponent of cross-examination has the burden of
justifying its use.  In addition., all direct and rebuttal testimony must be
submitted in written form unless it can be affirmatively shown that the testi-
mony can only be effectively presented orally.

     An essential change in the new procedures is the prohibition against raising
issues at an evidentiary hearing that were not first raised during the comment
period on the draft permit.  An exemption from this requirement is provided if
good cause can be shown for the failure to raise the issues earlier.

     The regulations also provide for an interlocutory appeal process.  This
process allows a party to appeal an order or ruling prior to the issuance of the
                                     VII-1

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initial decision by the Presiding Officer.  It is permitted only if the Presiding
Officer, upon motion of a party, certifies the orders or rulings for appeal.
Requests for certification must be filed in writing within 10 days of service of
notice of the order or ruling and must briefly state the grounds for such request.
Certification may be granted only if certain threshold conditions are met.

     After the hearing, the parties will have an opportunity to submit proposed
findings of fact, conclusions, and a supporting brief.  The Presiding Officer may
allow reply briefs.  The Presiding Officer will then review and evaluate these,
together with the hearing record and any interlocutory decisions, in issuing the
initial decision.  The initial decision will automatically become effective 30
days after its service, unless there is a petition for review, or the Administrator
on his or her own motion decides to review the decision.

     The decision logic included in this chapter (Figure VII-1) illustrates
the key events in the evidentiary hearing process.  Helpful hints for
expediting the process will also be provided, as well as checklists for
evaluating requests for an evidentiary hearing, sample forms for a proposed
prehearing conference order and a stipulation.  Reference should be made to
the section in question for a complete analysis of the procedures.
                                    VII-2

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                PROCEDURES FOR INTERLOCUTORY APPEAL                         [124.90]
     The former practice of deciding legal issues separately through
referral to the Office of General Counsel has been stopped.   These
issues will now be subject to normal interlocutory appeals (an appeal
during the hearing).   The interlocutory appeal process allows a party
to appeal an order or ruling prior to the issuance of the initial
decision by the Presiding Officer.  To invoke this procedure, a party
must, within 10 days of service of notice of the ruling or order, file
a written request to the Presiding Officer for certification of the
orders or rulings for appeal on the record.  The request must briefly
state the grounds relied upon.  It should be noted that the Office of
General Counsel will continue to play a major role in deciding issues
of law.

     The Presiding Officer may certify an order or ruling for appeal
to the Administrator only if all 3 of the following requirements are
satisfied:
     (1)  The appeal involves an important question
          on which there is substantial ground for
          difference of opinion;
     (2)  The appeal is necessary to prevent exceptional
          delay, expense, or prejudice to the parties; and
     (3)  Either an immediate appeal will materially
          advance the ultimate completion of the pro-
          ceeding or the review after the final order
          is issued will be inadequate or ineffective.
     The Administrator will decline to hear the appeal if he or she
determines that certification was improperly granted.

     Within 30 days of their submission, the Administrator will accept
or decline all interlocutory appeals.  If the Administrator takes
no action within this time, the appeal will be considered dismissed.
                                     VII-3

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     If the Presiding Officer declines to certify an order
or ruling for appeal, it may be reviewed by the Administrator
only upon appeal from the initial decision, unless in
exceptional circumstances  the Administrator determines upon
motion of a party that to delay review would not be in the
public interest.  Such motion must be made within 5 days after
notification of the Presiding Officer's refusal to certify.

     Only in exceptional circumstances may the Presiding Offi-
cer stay the proceeding pending a decision by the Administrator
upon the Presiding Officer's grant or denial of certification.

     Ordinarily, the interlocutory appeal will be decided on
the basis of the submissions made to the Presiding Officer.
The Administrator may, however, allow briefs and oral argu-
ments.  Issues of law will be referred to the General Counsel
for determination, subject to the Administrator's approval.
                                    VII-4

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              HELPFUL HINTS FOR EXPEDITING EVIDENTIARY HEARINGS
            "There are no inherently protracted cases,  only cases
            which are unnecessarily protracted by inefficient
            procedures and management."
            (Foreword to Manual for Complex Litigation, Fourth
            Edition)


     This is a brief compilation of some ideas for managing contested

cases.


     Every participant in litigation has his or her own ideas about how to
handle the case, and extensive literature has been produced that discusses
the problems of delayed action, particularly in the administrative processes

of government.  In the final analysis, however, it is attention to the case

by all participants, including lawyers, witnesses, technical and para-

professional assistants, and staff support people, that is most likely to
lead to efficiency.


     Checklists serve no function or purpose—in fact, a person's good ideas
about how to staff a case are valueless—unless the checklists are used in ways

that are suited to the individual case and the objectives of the litigation.
Therefore, the following list is nothing more than several ideas that may help
participants to plan the management of cases that are  likely to be contested.

     •  THE MULTIDISCIPLINARY TEAM APPROACH to contested cases is
        essential to a successful NPDES matter.

             This means that technical professionals who review
             applications and prepare draft permits, consul-
             tants, technical and scientific support staff,
             lawyers, and clerical support and administrative
             staffs must all be brought together EARLY and OFTEN
             when a particular permit is identified as contro-
             versial or is otherwise likely to lead to a request
             for hearing.  The roles and responsibilities of each
             member of the team need to be worked out and agreed
                                     VII-5

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        upon early in the process.   One case manager
        should be designated as  the person through
        whom all information about  the case is filtered.
        This case manager may be any qualified team
        member, until the time a request for hearing
        is granted.   From this point on, the lead staff
        lawyer should ordinarily assume the responsi-
        bilities of the case manager.  When a lawyer
        serves as case manager,  a qualified technical
        staff member should be designated to head up  the
        technical/scientific effort and should have the
        necessary authority to direct and coordinate
        all work done by the technical members of the
        team.
   FACT SHEETS/STATEMENTS OF BASIS are useful tools for assuring
   that all team members have contributed to permit preparation
   at an early stage.

        Because the Regulations call for a determina-
        tion as to whether an extensive Fact Sheet or a
        more simple Statement of Basis will be prepared
        for every permit, the person responsible for the
        determination should call in the entire team to
        participate both in the determination and in the
        preparation of the appropriate supporting document.
        Obviously, less time will be required of the team
        if a Statement of Basis is to be prepared.  However,
        it is no less important that the team participate
        in and agree upon the determination that the State-
        ment of Basis will be appropriate rather than a more
        detailed Fact Sheet.  Determinations about which
        document will be prepared for a large number of
        permits being issued at the same time may be made
        by a small committee of qualified staff members.
•  WRITTEN TESTIMONY of scientific/technical witnesses, which will
   later be required for cases that go to hearing, can be outlined
   at the time the Statement of Basis or Fact Sheet is prepared.

        If outlines are prepared early, the team will be
        able to focus its attention on the issues and on
        the support necessary for the case to progress
        efficiently.
                           VII-6

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   THE ADMINISTRATIVE RECORD,  now required  for  every  permit,  is
   a practical and useful vehicle for  ensuring  that all  documentary
   support for the permit is (a)  identified and (b) readily avail-
   able,  before the draft permit  is  publicly noticed.

        The Administrative Record will be assembled
        "as-you-go," using a checklist, to  ensure that
        the file contains support or citations  for each
        of the conditions or limitations contained in
        the permit.
   PREHEARING CONFERENCES are an integral and essential part of
   the hearing process.

        At the time a request for hearing is granted,
        agency staff should be prepared to go forward
        promptly with a  request for a prehearing confer-
        ence addressed to the Presiding Officer.  If the
        agency staff is  properly prepared, the early
        prehearing conference will allow the main issues
        in the case to become clear and will permit a
        schedule of work to be arranged to move the case
        to an early decision.  (For additional suggestions,
        see "Proposed Prehearing Order" on p. VII-20.)
•  PREPARED TESTIMONY can be assembled far more easily if (a) it
   has been outlined early in the process and (b) the entire team
   is fully conversant with the issues in the case.
        To prepare written testimony for filing before
        a hearing is one of the most difficult tasks
        facing a participant in a contested case.  There
        simply are no shortcuts.  The task will be
        simplified if the team has been assembled early
        and has identified the issues for which testimony
        needs to be prepared.  To circulate draft
        testimony "for comment" is not a pleasing notion.
        But not having testimony checked (a) to ensure
        that the witness has prepared COMPLETE testimony,
        i.e., without inadvertent gaps or omissions, or
        (b) to "tie in" the testimony with other dependent
        witnesses, i.e., as in the case of hypothetical
        questions or different aspects of a single issue,
        is unthinkable.  It should be the function of the
        case manager to ensure that prepared testimony is
        as complete and accurate as possible.  NOTE:  The
        point being made here is the importance of the
        accuracy and completeness of what the witness has
        to say.  The witness and only the witness has the
        final word in what testimony he or she presents,
        based upon his or her own personal knowledge,
        experience, or expertise.
                                 VII-7

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DOCUMENTATION for the permit conditions and limitations
must be identified and cited before the draft permit is
issued.

     The regulations no longer allow lately
     discovered justification for permit condi-
     tions.  Consequently, any document that will
     assist in explaining or justifying a permit
     condition must be identified at the time that
     the condition is proposed, prepared, or drafted.
                          VII-8

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                                                [Designation of Trial Staff
                                                      and Decisional Body]
        UNITED STATES  ENVIRONMENTAL PROTECTION  AGENCY

                           REGION A

                      402 Permit Street
                     Discharge,  OH  95217
IN THE MATTER OF:

NATIONAL POLLUTANT DISCHARGE
ELIMINATION SYSTEM EVIDENTIARY
  HEARING
Permit No. 	
Ajax Manufacturing Company
                 Permittee
        REGIONAL ADMINISTRATOR'S
        DESIGNATION  OF
        AGENCY  TRIAL STAFF
        AND DECISIONAL  BODY
     In accordance with the provisions of 40 C.F.R. Sections
124.77 and 124.78, I hereby designate the following persons

as members of the Agency Trial Staff and Decisional Body,
respectively, for the above identified proceeding:

      Agency Trial Staff  .
                  Names
                  Organizational Affiliations
                  Addresses
      Decisional Body
                  Names
                  Organizational Affiliations
                  Addresses
      Dated
Regional Administrator
                            VII-9

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                                                             [RA's Order Granting
                                                          Evidentiary Hearing and
                                                             Notice of Contested/
                                                          Uncontested Conditions]
                UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                                 REGION  A

                             402  Permit  Street
                            Discharge, OH  95217
                               Re: Permit No.
                                                                          [124.75]
Regional Administrator's Order
Granting Evidentiary Hearing;and
Notice of Contested and Uncontested [124.75(b)]
Permit Terms and Conditions         [124.61(e)]
Dear


     This will acknowledge your Request for an Evidentiary Hearing

dated 	, on the above identified permit.
           date
     This Order constitutes my decision to 	
                                             grant/ grant in part/
	 your Request in accordance with EPA Rules at
    deny in part
40 C.F.R. 124.75 and will serve as the specification and notice of
terms and conditions which are contested (and therefore stayed) and

uncontested  (and therefore effective) which is required by 40 C.F.R.

124.61(e).

     Referring to your Request for Hearing, I have determined to

grant your request as to the following issues:
                          State issues in language
                          used by requester
                                    [124.75(a)]
                                  VII-10

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     I have determined to deny your request as to the following issues

for the reasons stated:
                         State issues in language
                         used by requester —
                         briefly stating reasons
                         [124.75(d)]
     The following terms and conditions of the above identified permit

are contested and the force and effect of these terms and conditions is

stayed pending final Agency action in accordance with 40 C.F.R. 124.61(e)(l)
                      Specify terms and conditions —
                      referring to the final permit
     The following terms and conditions of the permit are uncontested and

therefore are enforceable obligations of the discharger. (40 C.F.R. 124.61(e))
                      Specify terms and conditions —
                      referring to the final permit
     Public Notice of  this Order granting an Evidentiary Hearing and     [124.77]

 designation of Agency  Trial Staff and members of the decisional body

 will be  issued in the  near future.
           Dated
Regional Administrator
                                  VII-11

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                                                   [Referral to Chief ALJ]
        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                          REGION A

                     402 Permit Street
                    Discharge, OH  95217
Honorable
Chief Administrative Law Judge
U.S. Environmental Protection Agency
Washington, D.C.  20460
                                Re:  Evidentiary Hearing
                                     NPDES Permit No.
                                     Ajax Manufacturing Company

Dear Judge	:

     In accordance with the requirements of 40 C.F.R. Section
124.81, I am referring the above identified proceeding to you

with the request that you assign an Administrative Law Judge

to serve as Presiding Officer.

     A copy of the notice of grant of an Evidentiary Hearing

is enclosed.  The notice was	on

	, 19   .
    Dated                            Regional Administrator
                          VII-12

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                                                          [Public Notice  of
                                                      Evidentiary Hearing]

         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                           REGION A

                       402 Permit Street
                      Discharge,  OH 95217


               PUBLIC NOTICE OF EVIDENTIARY HEARING          [124.41(h)]
                                                                [124.77]


Permit No.                            Date of Notice 	
Name of Permittee
Address of Permittee

      This is to give notice that on 	 the
                                            date
Regional Administrator 	  a request
                       granted/granted in part
for an Evidentiary Hearing under EPA rules for the above

identified National Pollutant Discharge Elimination System

(NPDES) Permit.  The request for hearing, dated 	,
                                                     date
was filed by 	, 	
             name of party requesting  address of party requesting

      Further proceedings involving .this Permit will be governed

by EPA's Rules for Decisionmaking which are found at 40 C.F.R.

Part 124 (published in the Federal Register at 44 F.R.  32854 on

June 7, 1979).  Copies of these rules are available for inspection

and copying at the Regional Office.

      EPA's contact person for information regarding this permit  [124.41
                                                                  (c)(3)]
and from whom copies of the permit, the statement of basis or

fact sheet and the Regional Administrator's order granting the

hearing may be obtained is:
                    Name
                    Address
                    Telephone

      The administrative record containing all documents relat-   [124.41
                                                                  (c
ing to the permit is located at 	
                                 room number and address
                            VII-13

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and is available for public inspection between 	 a.m.

and 	 p.m., Monday through Friday, except holidays.

          |~  Section 316(a) information if  ~|                    [124.41(c)
             applicable                                           (5>]

      Public notice of the draft permit was dated 	.    [124.41(g)
                                                      date        (1)]
A public hearing on this permit was/was not, held on
     date
      The purpose of this Evidentiary Hearing is to determine     [124.41(g)
                                                                   (3)]
whether the permit, as it was issued by EPA, should be changed

in the manner suggested by the Request for Hearing.  The  case

will be assigned to an EPA Administrative Law Judge for hearing

and preparation of an initial decision.  The following is  a

summary of rules with regard to the Evidentiary Hearing process:

      1.  Any person seeking to be a party must file a            [124.41(h)
          request to be admitted as a party to the hearing        (4)(i)]
          within 15 days of the date of publication of            [124.79]
          this notice, that is, no later than	.
                                                  date
      2.  Any person seeking to be party may propose              [124.41(h)
          additional material issues of law or fact                (4)(ii)]
          not already raised by the original requester
          or another party.
          HOWEVER, under EPA Rules no evidence shall be submitted [124.76]
          and no issue shall be raised by any party to a  hearing
          that was not submitted to or raised in the adminis-
          trative record unless good cause is shown for the
          failure to submit them.

      3.  The terms and conditions of the permit at issue may     [124.41(h)
          be amended after the evidentiary hearing and any        (4)(iii)]
          person interested in the permit must request to be
          a party in order to preserve any right to appeal
          or otherwise contest the final administrative
          determinat ion.

      4.  Parties may be represented by counsel or other         [124.73(b).
          authorized agent or representative.
                            VII-14

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5.   The Agency trial staff for this proceeding         [124.41(h)(5)]
    is composed of the following persons:                    [124.77]
                                                             [124.78]
                  Names

6.   The Decisional Body for this proceeding is         [124.41(h)(5)]
    composed of the following persons:                       [124.77]
                                                             [124.78]
                  Names

7.   The Regional Hearing Clerk is:                     [124.41(h)(6)]

                  Name
                  Address
                  Telephone

8.   A request to become a party to these proceedings         [124.79]
    must meet the following requirements:

    a)  Such requests shall state each legal or              [124.74]
        factual question alleged to be at issue,
        and their relevance to the permit decision,
        together with a designation of the specific
        factual areas to be adjudicated  and the
        hearing time estimated to be necessary for
        that adjudication.
        Information supporting the request or
        other written document relied upon to
        support the request shall be submitted
        unless it is already  in the administrative
        record.

    b)  The name, mailing address and telephone number
        of the person making  such request;

    c)  A clear and concise factual statement of the
        nature and scope of the interest of the
        requester;

    d)  The names and addresses of all persons whom   ,
        the requester represents; and

    e)  A statement by the requester that upon motion
        of any party or sua sponte by the Presiding
        Officer and without cost or expense to any
        other party, the requester shall make avail-
        able to appear and testify, the  following:

          i)  The requester;
         ii)  All persons represented by the requester,
              and
        iii)  All officers, directors, employees
              consultants and agents of  the requester
              and the persons represented by the
              requester.
                      VII-15

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f)  Specific references to the contested
    permit terms and conditions, as well
    as suggested revised or alternative
    permit terms and conditions (not
    excluding permit denial) which in
    the judgement of the requester, would
    be required to implement the purposes
    and policies of the Act.

g)  In the case of challenges to the
    application of control or treatment
    technologies identified in the state-
    ment of basis or fact sheet, identifi-
    cation of the basis for the objection,
    and the alternative technologies or
    combination of technologies which the
    requester believes are necessary to
    meet the requirements of the Act.

h)  Specific identification of each of the
    discharger's obligations which should
    be stayed if the request is granted.
    If the request contests more than one
    permit term or condition then each
    obligation which is proposed to be
    stayed must be referenced to the
    particular contested term warranting
    the stay.
                 VII-16

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     The following is a general description of  the receiving water       [124.41
                                                                        (c)(2)]
and the location of each existing or proposed discharge point and

of the permittee's activities:
     The following is a brief description of the permit                 [124.41
                                                                        00(3)]
terms and conditions which have been contested and for which

the Evidentiary Hearing has been granted:
                                    VII-17

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EX_ PARTE COMMUNICATIONS:                                     [124.78]

     No interested person outside the EPA or member of

the EPA trial staff shall make or knowingly cause to

be made to any members of the decisional body an ex parte

communication relevant to the merits of the proceedings.

Nor shall the members of the decisional body initiate such

communications themselves.

     "Ex parte communication" means any communication,

whether written or oral, relating to the merits of the

proceeding between the decisional body and an interested

person outside the EPA or the EPA trial staff where such

communication was not originally filed or stated in the

administrative record or in the hearing.  Ex parte

communications do not include:

       i)  Communications between EPA employees
           other than between the EPA trial staff
           and the members of the decisional body
       ii)  Discussions between the decisional body
           and either
           a)  Interested persons outside the EPA; or
           b)  The EPA trial staff;

If  all parties have  received prior written notice of  such

proposed  communications and have been given the opportunity

to  be  present and participate therein.

     iii)  Communications between EPA employees including
           trial staff but not the decisional body and  any
           persons outside the EPA including interested
           persons outside the EPA.

     "Interested person outside  the  EPA"  includes the

permit applicant, any person who filed written comments  in

the proceedings, any person who  requested the hearing,  any
                          VII-18

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person who requested to participate or intervene in the




hearing, any participant or party in the hearing and the




attorney of record for such persons.







FILING AND SERVICE:




      An original and one (1) copy of all written sub-




missions relating to an evidentiary hearing filed after




the notice of hearing is published shall be filed with




the Regional Hearing Clerk.  The party filing any sub-




mission shall serve a copy of such submission upon the




Presiding Officer and each party of record.  Service




shall be by mail or personal delivery.




      Every submission shall be accompanied by an acknowl-




edgement of service by the person served or proof of service




in the  form of  a statement of the date, place, time, and




manner  of service and the names of  the persons served,  certified




by the  person who made service.  (A  signed  statement that  an




attached list of persons were mailed  the submission is  suf-




ficient to meet the requirements of this paragraph.  Certified




mail  is not required).
                         VII-19

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                                                 [Proposed Prshearing Order]
       UNITED  STATES ENVIRONMENTAL PROTECTION AGENCY

                           REGION A

                        402 Permit  Street
                      Discharge, OH   95217
IN THE MATTER OF:
NATIONAL POLLUTANT DISCHARGE    )
ELIMINATION SYSTEM EVIDENTIARY  )
  HEARING                       )   PROPOSED
                                )   PREHEARING ORDER
                                )
Permit  No.
 Aj ax Manufacturing  Company
                  Permittee
[This form is intended to be used by the Agency Trial Staff as
a checklist of those procedural matters which, if followed, will
greatly expedite the hearing.  It applies equally in both Evidentiary
and Nonadversary Hearing cases (the latter where a Trial Staff is
designated).   This checklist should be consulted as soon as a Request
for Hearing has been granted and should be reviewed regularly during
preparations for the Hearing.

   It is appropriate to draft a Proposed Prehearing Order for consider-
ation by the Presiding Officer at the Prehearing Conference.  Where
this is done, the Proposed Order.should be accompanied by. a "Motion
to Adopt Proposed Prehearing Order" and should be filed and served
before the Prehearing Conference.  Such a Motion should state that
the Proposed Order represents the position of the Agency Trial Staff
on the matters contained in the Order which position will be asserted
at the Prehearing Conference.

   Obviously, Prehearing Conferences can be streamlined and expedited
if the Presiding Officer and other parties to the Hearing are informed
of the Trial Staff's position prior to the Conference.
                               VII-20

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     A commendable alternative  to this recommended  practice  is the
  submission of  a "Proposed Agenda  for Prehearing Conference" prior
  to  the Conference.   However,  the  Proposed Order approach has the
  additional benefit  of enabling the Trial Staff to come to  grips
  with its  position on the appropriate issues  at an early stage  and
  to  articulate  the position  in a form which may be used conveniently
  by  the Presiding Officer in preparing  the Order  required by 124.83(e).]


  (e) The Presiding Officer shall prepare                                                  [ 124. 83 (e) ]
a written prehearing order reciting the
actions taken at the prehearing
conference and setting forth the
schedule for the hearing, unless a
transcript has been taken and
accurately reflects these matters. The
order shall include a written statement
of the areas of factual agreement and
disagreement and of the methods and
procedures to be used in developing the
evidence and the respective duties of
the parties in connection therewith. This
order shall control the subsequent
course of the hearing unless modified by
the Presiding Officer for good cause
•shown.

§ 124.83  Prehearing conferences.
  -{a) The Presiding Officer, sua sponte,
or at the request of any party, may
direct the parties or their attorneys or
duly authorized representatives to
appear at a specified time and place for
one or more conferences before or
during a hearing, or to submit written
proposals or correspond for the purpose
of considering any of the matters set
forth in paragraph (c) of this section.


   [NOTE: The Proposed Order  format is a convenient method for submitting
   the "written  proposals" called for by 124.83(a).]



  (b) The Presiding Officer shall allow a
reasonable period before the hearing
begins for the orderly completion of all
prehearing procedures and for the
submission and disposition of all
prehearing motions. Where the
circumstances warrant, the Presiding
Officer shall call a prehearing
conference to inquire into the use of
available procedures contemplated by
the parties and the time required for
their completion, to establish a schedule
for their completion, and to set a
tentative date for beginning the hearing.
                                       VII-21

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  (c) In conferences held, or in
suggestions submitted, under paragraph
(a), the following matters may be
considered:
  (1) The necessity or desirability of
simplification, clarification,
amplification or limitation of the issues.
  (2) The admission of facts and of the
genuineness of documents, and the
possibility of stipulations with respect to
facts.
  (3) The consideration of and ruling
upon objections to the introduction into
evidence at the hearing of any written
testimony, documents, papers, exhibits,
or other submissions proposed by a
party, except that the administrative
record required by §  124.64 shall be
received in evidence subject to the
provisions of J 124.85(d)(2).
Notwithstanding the foregoing, at any
time before the end of the hearing any
party may make, and the Presiding
Officer shall consider and rule upon,
motions to strike testimony or other
evidence other than the administrative
record on the grounds of relevance,
competency or materiality.
  (4) The identification of matters of
which official notice may be taken.
  (5) The establishment of a schedule
which includes definite or tentative
times for as many of the following as are
deemed necessary and proper by the
Presiding Officer:
  (i) The submission of narrative
statements of position on each factual
issue in controversy;
  (ii) The submission of written
testimony and documentary evidence
(e.g., affidavits, data, studies, reports
and any other type of written material)
in support of such statements; or
  (iii) Written requests to any party for
the production of additional
documentation, data, or other
information relevant and material to the
facts in issue.
  (6) The grouping of participants with
substantially like interests for purposes
of eliminating  duplicative or repetitive
development of the evidence and
making and arguing motions and
objections.
  (7) Such other matters as may
expedite the hearing or aid in the
disposition of  the matter.


     [NOTE:  Each of the above  mentioned  7 items may be addressed
     appropriately  in  a Proposed  Prehearing  Order.   In any event,
    Counsel ought  to  be prepared to  address each  of  these issues
     (i.e.,  state  a position)  at  the  Prehearing Conference.]
                                         VII-22

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  (d) At a prehearing conference or
within some reasonable time set by the
Presiding Officer, each party shall make
available to all other parties the names
of experts and other witnesses it
expects to call. At its discretion or at the
request of the Presiding Officer, a party
may include a  brief narrative summary
of any witness's anticipated testimony.
Copies of any written testimony,
documents, papers, exhibits, or
materials which a party expects to
introduce into  evidence, and the
a~dministrarive record required by
§ 124.64, shall be marked for
identification as ordered by the
Presiding Officer. Witnesses, proposed
written testimony and other evidence
may be added  or amended only upon a
finding by the Presiding Officer that
good cause existed for failure to
introduce the additional or amended
material within the time specified by  the
Presiding Officer. Agency employees
and consultants shall be made available
as witnesses by the Agency to the same
extent that production of such witnesses
is required of other parties .under
§ 124.74(c)(4). (See also § 124.85(b)(l6)).


   [NOTE:  Preparation and  exchange of witness and exhibit lists
   (i.e.,  lists of exhibits marked for  identification) before
   the Hearing  begins invariably saves  hours  (and sometimes  days)
   of valuable  hearing time.]
                                      VII-23

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                                                        [Order on Request
                                                        For Intervention]
        UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                          REGION A

                      402 Permit Street
                     Discharge,  OH  95217
IN THE MATTER OF:

NATIONAL POLLUTANT DISCHARGE
ELIMINATION SYSTEM EVIDENTIARY
  HEARING
Permit No. 	
Ajax Manufacturing Company
                 Permittee
                                            ORDER ON REQUEST
                                            FOR INTERVENTION
             Text should recite facts about the
             request - an analysis as to whether
             the request meets the requirements
             of 124.79 (b) (including the require-
             ments of 124.74 and 124.76) and an
             order granting/denying the request.
    Dated
Administrative Law Judge
                           VII-24

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                                                                                         [Motion]
                  UNITED STATES  ENVIRONMENTAL PROTECTION  AGENCY

                                         REGION A

                                    402  Permit Street
                                  Discharge,  OH  95217
IN THE  MATTER  OF:
NATIONAL POLLUTANT  DISCHARGE          )
ELIMINATION SYSTEM  EVIDENTIARY        )
   HEARING                                  )        MOTION FOR
Permit  No.
Ajax Manufacturing  Company
                     Permittee
    f 124.8S Motions.
      (a) Any party may make a motion,
    (including a motion to dismiss a
    particular claim or a contested issue), to
    the Presiding Officer about any matter
    relating to the proceeding. All motions
    shall be filed and served as provided in
    § 124.80 except those made on the
    record during an oral hearing before the
    Presiding Officer.
      (b) Within 10 days after service of any
    written motion, any party to the
    proceeding may file a response to the
    motion. The time for response may be
    shortened to three days or extended for
    an additional ten days by the Presiding
    Officer for good cause shown.
      (c) Notwithstanding § 122.15, any
    party may file with the Presiding Officer
    a motion seeking to apply to the permit
    any regulatory or statutory requirement
    issued or made available after the
    issuance of the permit under § 124.61.
    The Presiding Officer shall grant any
    motion to apply a new statutory
    requirement unless he or she finds it
    contrary to legislative intent. The
    Presiding Officer may grant a motion to
    apply a new regulatory requirement
    where appropriate to carry out the
    purposes of the Act, and where no party
    would be unduly  prejudiced thereby.
                                           VII-25

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[NOTE: Properly drawn Motions, when based upon carefully considered
points and authorities, may serve key functions.
       Motions provide a convenient vehicle for focusing the attention
of the Presiding Officer and the other parties on one or many issues
which arise before the Hearing begins and which,  if decided upon before-
hand, will save hearing time.  Motions during the Hearing which involve
important issues often occupy time for parties to prepare responses
and to be heard orally.  For important controversial issues which can
be identified early  (e.g., grouping of parties, consolidation and sever-
ance, summary determination, production of documents) identification
of issues through Motions will save time at the Hearing for the presen-
tation of facts.]

[NOTE:  Memoranda of Points and Authorities in support of a Motion may
be incorporated into the body of the Motion or into a separate Memo-
randum.  If included in the body of the Motion, Points and Authorities
should be so  labeled.  If included in a separate Memorandum, the Memo-
randum should be filed and served with the Motion.  The Motion itself
should then refer to the "attached Memorandum."]
                             VII-26

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                                                                    [Stipulation]
                UNITED STATES  ENVIRONMENTAL PROTECTION AGENCY

                                 REGION A

                             402 Permit Street
                            Discharge, OH  95217
IN THE MATTER OF:

NATIONAL POLLUTANT DISCHARGE
ELIMINATION SYSTEM EVIDENTIARY
  HEARING
Permit No. 	
Ajax Manufacturing Company
                 Permittee
                                                 STIPULATION
     It is hereby stipulated by -and between the Permittee and the
Agency Trial Staff in  the above identified proceeding that:

     1.  Permittee hereby withdraws its request for evidentiary

hearing.
     2.  The permit involved in this proceeding shall be modified

as follows:
          a.
          b.
          c.
Specify changes by using
carefully drawn amending
language — (e.g., Delete.
Substitute ...) referring
to specific conditions of
the permit.
                                    VH-27

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     3.  This Stipulation shall not bind the Environmental Protection
Agency or have any force or effect or be filed in this proceeding until
approved and signed by the Deputy Assistant Administrator for Water
Enforcement.

     Dated by the last signatory hereto:  	
                                                       Date
Ajax Manufacturing Company
By	
Title
U.S. Environmental Protection Agency
By	
     Counsel for Agency Trial Staff
Approved:
          Deputy Assistant Administrator
            for Water  Enforcement
                                  VII-28

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AVAILABLE
DIGITALLY

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 CHAPTER VIII
NONADVERSARY
   HEARINGS

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                                 CHAPTER VIII
                      SUBPART I—NONADVERSARY PROCEDURES
                                   OVERVIEW
     Procedures that are much less adversarial than strict courtroom procedures
will be utilized" for cases involving initial licensing and Section 301(h) modified
permits.  In other cases,, the regulations allow permit applications to be processed
under the nonadversary procedure if a party submits a proper request, no objection
is received, and the EPA agrees with the request.

     The nonadversary hearings move away from traditional format hearings in which
the EPA and other parties present opposing cases before a single hearing officer.
Instead, a panel of EPA employees, at least two of whom have not taken part in
preparing the draft permit, will be present-at the hearing.  The panel members
will have special expertise on the hearing issues and they will question the parties,
subject to the overall control of the proceedings by the Presiding Officer.   Panel
membership may, if appropriate, include persons not employed by EPA.

     An Agency Trial Staff will not be designated for all panel hearings, though
the regulations allow one to be named if necessary.  Instead, the Agency will pre-
pare a draft response to the permit application.  The information contained in the
application and the draft response will be the focus of attention at the hearing
in cases involving initial licensing.  In other cases, a panel hearing may be held
after a final permit has been issued.

     While nonadversary procedure is designed to be nonaccusatory, there are
nevertheless some strict formal requirements which must be met.  Just as in the
case of an evidentiary hearing, the Request for Panel Hearing must meet the
                                    VIII-1

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requirements of Section 124.74 as to contents of the request.  In addition, issues
not raised in the Request for Hearing may not be first raised at the panel hearing
itself; written "comments" (less formal than prepared testimony) must be filed in
advance of the hearing unless a "Motion to Permit Oral Comments" is filed and
granted two weeks prior to the hearing.  All parties should be made aware of these
formal requirements lest the formal rules for panel hearings become confused with
the quite informal rules governing public hearings.

     The hearing itself will be divided into two stages.  In the first stage, the
parties can present their views and arguments to the panel and be questioned by it.
Cross-examination will not be permitted at this stage of the proceeding unless it
is determined that such cross-examination would expedite resolution of the issues.
However, the parties may submit written questions for the Presiding Officer or a
panel member to ask the participants.

     Since nonadversary hearings are designed to provide the technical panel and
Presiding Officer (Decisional Body) with facts sufficient for a recommended decision,
it is likely that the panel rather than the parties will conduct most of the
examination or inquiry of witnesses.  Should an important area of inquiry be over-
looked, it is likely that the panel will only need to be reminded of the area of
inquiry.  It is not likely that cross-examination by a party will be necessary to
draw out the facts in a case where the panel needs to be satisfied on the spot that
the facts are in the record and are adequate to support the issue they are
intended to bear upon.

     In the second stage of the proceeding, formal cross-examination may be
allowed if a proper request is submitted.  The request must be in writing and
must specify the disputed issues of material fact, whom the party desires to cross-
examine, and an estimate of the time necessary.  The Presiding Officer may, instead
                                                                •
of granting cross-examination, require alternative means of clarifying the record to
be used.  Once again, the main thrust of the panel hearing is to allow the panel,
as decisional body,  the greatest flexibility to obtain the facts in the form most
useful to the panel.   Should the panel believe, for example, that a written
                                    VIII-2

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supplemental report from a witness will be more useful than further oral
questioning, the report should be called for.   The panel may find that the
parties can submit written questions to a witness to elicit information desired.
Because reconvening the hearing for cross-examination will be expensive and
time consuming, there is good reason for the panel to seek imaginative methods
for ensuring completeness of the record.

     After the hearing, a recommended decision will be prepared.   The recommended
decision will become the final decision of the EPA within 30 days after service,
unless there is a petition for review or the Administrator elects to review it.
If the Administrator does review the decision, he or she may consult with the
Presiding Officer, the panel members, or any other EPA employee in preparing the
final decision.

     The decision logic included in this chapter illustrates the key events in
the nonadversary process.  Helpful hints for expediting the process and sample
forms are included.
                                   VIII-3

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                       HELPFUL HINTS FOR EXPEDITING

                          NONADVERSARY HEARINGS
     THE NONADVERSARY HEARING PROCEDURE has been adopted expressly for its
     simplicity.  The Agency staff — permit writers,  technical support staff,
     lawyers, and clerical support staff — and the administrative record are

     the keys to keeping the procedure simple.
          A good administrative record, carefully prepared by the staff,
          will ensure efficiency and simplicity in the case.   Though the
          nonadversary procedure is new to the EPA permit program,
          informal hearing procedures are not new to Agency decision-
          making.  The single most important distinction between more
          formal and less formal procedures is the method used for making
          a record to support the final decision.  In simplest terms,
          the nonadversary procedure relies primarily upon written or
          documentary support for the permit or for alternatives suggested
          by a party to the hearing.  The "hearing" portion of the proceeding
          is designed exclusively to allow the decisionmakers (Presiding
          Officer and Panel) to ask questions of the Agency staff or other
          parties, which will clarify the written record or aid the
          decisionmakers to better understand the facts.  The hearing
          then is designed to assist the decisional body rather than to
          provide a forum for argument or debate over positions of the
          parties.

          Simplicity will be ensured; in most cases, there will be no
          need for Agency Trial Staff to appear at the hearing if a
          thoroughly documented administrative record and a well-
          reasoned Fact Sheet or Statement of Basis accompanies the
          permit file to the hearing room.
•    HELPFUL HINTS FOR EVIDENTIARY HEARINGS apply also to NONADVERSARY

     PROCEEDINGS.
          While not repeated here, the principles set out in Chapter VII
          for evidentiary hearings should be followed for informal pro-
          ceedings as well.
                                 VIII-4

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•    STAFF WITNESSES who appear before panel hearings should be thoroughly
     familiar with those portions of the record for which they have
     responsibility.
          In many cases, one person will not be able to testify about every
          term and condition of the permit.   In such cases,  each witness
          should become acquainted with the entire range of  issues in the
          case and understand where his or her testimony fits in.  The
          panel's work will be considerably lessened by this practice.


     PANELS OF WITNESS can be used very effectively in nonadversary hearings.


          The hearing panel, i.e., Decisional Body, will be able more
          readily to have its questions answered by the best qualified
          witness if all witnesses on a particular issue are called and
          sworn in at the same time.  In this way, a witness who can
          furnish the answer to a question will be allowed to answer
          it immediately rather than having to wait his or her turn
          to take the witness stand.  The hearing panel should find
          such a practice more satisfactory because they will know
          in advance that someone will be available at the witness
          table to promptly answer any question on an issue under
          instruction.  This procedure may become all the more impor-
          tant in cases where no Agency Trail Staff are present.
                                  VIII-5

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                                             [Public Notice of  Panel Hearing]


                  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                                    REGION A

                                402 Permit Street
                               Discharge,  OH  95217


                         PUBLIC NOTICE OF  PANEL HEARING       [124.116]
                                                              [124.41(1)]
                                                              [124.41(c)]
Permit No.                                       Date of Notice:
Name and Address of Permittee:
     This is to give notice that on 	 the Regional
                                          date
Administrator granted a Request for a Panel Hearing under EPA's rules

for Nonadversary Procedures in connection with the above-identified

National Pollutant Discharge Elimination System (NPDES) Permit.  The

request for hearing dated 	 was filed by 	
                             date                  name and address
       of party requesting


         tor:  The hearing in this case is being held by direction 1  [124.114(b)]
              of the Regional Administrator.                     J  [124.41 (j) (1)]

     Further proceedings involving this Permit will be governed by

EPA's Rules for Decisionmaking which are found at 40 C.F.R. Part 124

(published in the Federal Register at 44 F.R. 32854 on June 7, 1979).

Copies of these rules are available for inspection and copying at the

Regional Office.
                                      VIH-6

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     EPA's contact person for information regarding this Permit   [124.41(c) (3)]

and from whom copies of the draft Permit, the statement of basis

or fact sheet, and the Regional Administrator's Order granting

the hearing may be obtained is:


            Name

            Address

            Telephone

     The administrative record containing all documents relating  [124.41(c)(4)]

to the Permit is located at	
                                  room no. and address

and is available for public inspection between 	 a.m. and

      p.m., Monday through Friday, except holidays.

              [Section 316(a) information if applicable.]          [124.4.(c)(5)]

     The purpose of the Panel  Hearing is to determine whether

the draft  Permit, as prepared  by the EPA Staff, should  be  changed

in the manner suggested by the Request for Hearing.

       [OR:   Specify the issues identified sua  sponte by the R.A.]   [124.114(b)(2)]

     An EPA Administrative Law Judge will serve as'Presiding        [124.119(a)(1)]

Officer for  this proceeding and  I have determined  that  the

Presiding  Officer will prepare the Recommended Decision in this

case.

       [OR:   The Regional Administrator will prepare  the            [124.116]
             Recommended Decision in this case.]

       [OR:   The parties have waived their right to have an        [124.119(a)(2)]
             Administrative Law Judge serve as  Presiding Officer
             and	a  lawyer employed by the
             EPA and without prior connection with  this  proceeding
             will  serve as Presiding Officer.]
                                    VIII-7

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                                [124.78]

                                [124.120(b>]
                                [124.120(b)]
                                [124.120(b)]
                                [124.78]
      The  following  persons will  serve as members of  the  technical

 panel (Decisional Body).

          Name

          Address

          Area  of Expertise

      The  following  EPA employees will provide  staff  support  to

 the panel but  may not  sit as  panel members:

          Name

          Address
~.
      I have determined to designate  an  Agency  Trial  Staff  for this

 case.   The  following persons will serve as Agency Trial  Staff:

          Name

          Address
_                                                                 •

      [OR:  I have determined  not to  designate  an Agency  Trial
            Staff for  this case.]

      Your attention is directed  to  the  following Rule on Ex

 Parte Communications:

      No interested  person outside the EPA or member  of the EPA        [124.78]

 Trial Staff shall make or knowingly  cause to be made to  any  members

 of the decisional body an ^x  parte communication relevant  to the

 merits of the  proceedings.  Nor  shall members  of the decisional body

 initiate  such  communications  themselves.

      "Ex  parte communications" means any  communication written  or oral

 relating  to the merits of the proceeding  between the decisional body

 and an interested person outside the Agency  or the Agency  Trial Staff

 where such sommunication was  not originally  filed or stated  in  the

 administrative record  or in the  hearing.   Ex parte communications do

 not include:

      (i)   Communications between Agency employees other  than between
           the  Agency Trial Staff and the members of  the  decisional
           body;
VIII-8

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     (ii)  Discussions between the decisional body and
          either

     (A)   Interested persons outside the Agency;  or

     (B)   The Agency Trial Staff;

          If all parties have received prior written notice
          of such proposed communications and have been given
          the opportunity to be present and participate therein.

    (iii)  Communications between Agency employees including
          Trial Staff but not the decisional body and any per-
          sons outside the Agency including interested persons
          outside the Agency.

          "Interested person outside the Agency"  includes
          the permit applicant, any person who filed written
          comments in the proceeding, any person  who requested
          the hearing, any person who requested to participate
          or intervene in the hearing, any participant or party
          in the hearing and the attorney of record for such
          persons.

     The following is a summary of EPA's rules which will apply

to this nonadversary proceeding:

          (a)  Each person desiring to participate shall file
               a motion to participate with the Regional Hearing
               Clerk no later than 	.     [124.117(a)]
                                              date                 [124.41(j)(4>]

               [Suggest 15 days from notice.]

          (b)  Each request shall include:

               (1)  A brief statement of the interest of the       [124.117(a)]
                    person in the proceeding;

               (2)  A brief outline of the points to be
                    addressed;

               (3)  An estimate of the time required;

               (4)  The name, mailing address and telephone         [124.74(c)
                    number of the person making such request;         ^  'J

               (5)  A clear and concise factual statement of
                    the nature and scope of the interest of
                    the requester;
                                  VIII-9

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    (6)  The names and addresses of all persons
         whom the requester represents; and

    (7)  A statement by the requester that, upon
         motion of any party, or sua sponte by
         the Presiding Officer and without cost
         or expense to any other party, the re-
         quester shall make available to appear
         and testify, the following:

         (i)  The requester;

         (ii)  All persons represented by the
              requester; and

        (iii)  All officers, directors, employees,
              consultants and agents of the re-
              quester and the persons represented
              by  the requester.

     (8)  Specific references to  the contested  permit
         terms  and  conditions,  as  well as  suggested
         revised  or alternative  permit terms and con-
         ditions  (not excluding  permit denial) which,
         in  the judgment of  the  requester, would be
         required to  implement  the purposes and poli-
         cies of  the Act.

     (9)  If  the request  is  submitted by an organi-
         zation,  a  non-binding  list  of the persons
         to  take  part in the presentation.

(c)   At least two  weeks before  the  scheduled date of  the
     hearing, the  Presiding  Officer will make  a hearing
     schedule available and  will mail  it to each person
     who has  requested to participate.

(d)   All comments  on the  Draft  Permit must  be  presented  [124.118]
     as follows:

     (1) No  later than  30  days  before  the  scheduled
          start  of the hearing,  that is, no later
          than	 , each  party  shall
                    date
          file all of its comments  on the  draft per-
         mit,  based on  information in  the  administra-
          tive record and any other information which
          is or  reasonably  could have been  available
          to that  person.  All  comments shall  include
          any affidavits, studies,  data,  tests, or
          other  materials relied upon for  making any
          factual statements in the comments.
                       VIII r 10.

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                (2) (a)  Written comments filed under paragraph (1)
                       of this section shall constitute the bulk
                       of the evidence submitted at the hearing.
                       Oral statements at the hearing should be
                       brief and in the nature of argument.  They
                       should be restricted either to points that
                       could not have been made in written comments,
                       or to emphasizing points which are made in
                       the comments, but which the participant be-
                       lieves can be more effectively argued in
                       the hearing context.

                   (b)  Notwithstanding the foregoing, within two
                       weeks prior to the deadline specified in
                       paragraph  (a) of this section for the filing
                       of comments, any party who has filed a re-
                       quest to participate in the hearing may
                       move to submit all or part of its comments
                       orally at  the hearing in lieu of submitting
                       written comments and the Presiding Officer
                       shall, within one week, grant such motion
                       if the Presiding Officer finds that such
                       person will be prejudiced  if required to
                       submit such comments in written form.

                (3)    Parties to any hearing may submit written
                       material  in response to the comments filed
                       by other  participants under paragraph  (1)
                       of this section at  the  time they appear
                       at the panel  stage  of the  hearing.

     The Regional Hearing Clerk  is:                                 I124.41(j)(6)J

                Name

                Address

                Telephone

     Filing and Service;   An original and one  (1)  copy  of  all  written sub-
missions relating to an evidentiary hearing filed  after  the notice of hearing

is published shall be filed  with the  Regional  Hearing Clerk.   The party filing
any submission shall serve a copy of  such submission upon the  Presiding Offi-
cer and each party of record.   Service shall be by mail  or personal delivery.

     Every submission shall  be accompanied by  an acknowledgement of service
by the person served or proof of service in the form of  a statement of the
date, place, time, and manner of service and the names  of the  persons served,

certified by the person who  made service.
                                  VIII-11

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     A  signed  statement  that  an  attached  list  of  persons  were mailed  the  sub-
mission is  sufficient  to meet the  requirements of this  paragraph.   Certified
mail is not required.
     The following is a general description of the applicant's
activities and operations which result in the discharge described
in the Permit Application:
                  Tl24.41(d)(l)]
                     [Description]

     The following is a general description of the receiving water
and of the location of each existing or proposed discharge point:

                     [Description]
                  Dated
Regional Administrator
                                   VI.II-KL2

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                                      [RA's Order Granting Nonadversary  Hearing]
                LIMITED STATES ENVIRONMENTAL PROTECTION AGENCY

                  •                REGION A

                             402 Permit Street
                             Discharge, OH 95217
                                Re:  Permit No.
                                     Regional Administrator's Order
                                     Granting Nonadversary Hearing
[124.114]
Dear

     This will acknowledge your Request for a Panel Hearing

dated 	, on the above identified permit.
               date

     This Order constitutes my decision to
deny in part
at 40 C.F.R. 124.114.
                                           grant/grant in part/
                          your Request in accordance with EPA Rules
     Referring to your Request for Hearing, I have determined to

grant your request as to the following issues:
                          State issues in language
                          used by requester
     I nave determined to deny your request as to the following

issues for the reasons stated:
                          State issues in language
                          used by requester —
                          Briefly stating reasons
                                  VIII-13

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     Public Notice of this Order Granting a Panel Hearing               [124.116]
                                                                     [124.120(b)]
and of designation of Agency Trial Staff and members  of the

decisional body and a statement of the person who will issue

the recommended decision will be issued in the near future.
                 Dated                       Regional Administrator
                                  VIII-14

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                                [Designation of Trial Staff and Decisional
                                 Body if so designated by the Regional
                                 Administrator, see Section 124.120(b)]
         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                            REGION A

                       402 Permit Street
                      Discharge, OH  95217
IN THE MATTER OF:
NATIONAL POLLUTANT DISCHARGE    )
ELIMINATION SYSTEM NONADVERSARY )
  HEARING
[Draft] Permit No. 	
Ajax Manufacturing Company
                 Permittee
   REGIONAL ADMINISTRATOR'S
   DESIGNATION OF
   AGENCY TRIAL STAFF
   AND DECISIONAL BODY
     In accordance with the provisions of 40 C.F.R. Sections

124.77 and 124.78, I hereby designate the following persons

as members of the Agency Trial Staff and Decisional Body,

respectively, for the above identified proceeding:

     Agency Trial Staff
                Names
                Organizational Affiliations
                Addresses
     Decisional Body
                Names
                Organizational Affiliations
                Addresses
         Dated
Regional Administrator
                                                              ' JRB Associates, Inc.
                              VIII-15

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  CHAPTER IX
GENERAL ISSUES

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                         CHAPTER IX—GENERAL  ISSUES
                                 OVERVIEW


     This chapter will cover a number of miscellaneous provisions of the
regulations that may apply to more than one subpart of Part 124:

     •   Public access to information
     •   Delegation of authority
     •   Time limitations
     •   Service
     •   Settlements
     •   General permits
     •   Grouping parties
     •   Production or exchange of documents and data
     •   Ex parte communications
     •   New sources.

     The new regulations contain provisions for exchange of documents and
data and grouping of parties in evidentiary and panel hearings.  An exchange of
documents and data will be permitted if it is deemed necessary and proper by
the Presiding Officer.  To avoid duplicative arguments, evidence, and motions
during the hearings, the Presiding Officer also has the authority to group parties
with substantially similar interests.
                                  IX-1

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     Where service of notice or other pleadings is required, submission shall be
by mail or personal delivery.  In addition, if service is by mail, the time limit
specified therein for the person served to do some act will be extended for 3 days.

     To encourage expeditious resolution of the issues, the regulations allow
the parties to a hearing to stipulate to those facts in which they are in agree-
ment.  However, approval by the Deputy Assistant Administrator for Water Enforce-
ment is required for those stipulations which settle the. case or a major portion
of it.
         communication between the decisional body and the Agency Trial Staff or
interested persons outside the Agency which is relevant to the merits of the case
and not: originally filed or stated in the administrative record or in the hearing
is prohibited by the ex parte communications rule, unless all the parties were
given notice and the opportunity to participate therein.

     This ex parte prohibition also applies to the nonadversary initial licensing
hearings.  However, formal "separation of functions" has been eliminated in  this
new procedure.  Persons involved in the draft permit may sit on the panel, and
members of the panel may advise the Administrator on appeal.

     The new regulations also contain many special provisions for new sources.
Before beginning any on-site construction, potential new sources are required to
submit relevant information to the Regional Administrator , so that he or she can
make a determination on whether the facility is in fact a new source.  If the
facility is determined to be a new source, the applicant must also comply with 'the
environmental review requirements of 40 CFR Section 6.900 et seq.  Any Environ-
mental Impact Statement prepared and any other applicable factors will be con-
sidered by the Regional Administrator in deciding whether to issue a permit  for
a new source and what conditions to put in any such permit,
                                        IX-2

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                           GENERAL PROVISIONS



Public Access to Information                                          [Subpart J]
                                                                        [124.131]

     The following shall be made available to the public

without restriction:


     •  NPDES permits

     •  Permit application forms and any attachments that
        are used to supply information requested by the
        application form

     •  Effluent data

     •  State certifications

     •  Comments of governmental agencies and anyone else

     •  Draft permits

     •  Fact sheets/Statements of basis.


     It should be noted that in the past, because of inconsis-
tencies in the language of Sections 402(j) and 308, there has
been some confusion as to the confidentiality of information
contained in NPDES permits and permit applications.  However,

in March of 1978, the General Counsel issued Class Determination
1-78, entitled Confidentiality of Information in National

Pollution Discharge Elimination System Permits and Permit Appli-
catj-ons Under Section 402 (j) of the Federal Water Pollution Control

Act.  This determination states, among other things, that

        The NPDES permit application is a standard form
        specified by EPA.  It asks the applicant to supply
        certain specific information.  In some cases, there
        is insufficient space for the applicant to supply
        all of the requested information.  In those cases
        the applicant attaches additional sheets with the
        further information.  For purposes of Section 402(j),
        the NPDES permit application required to be made
                                    IX-3

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         public is the application form itself and any
         attachments that are used to supply information
         requested by the application form.  Any informa-
         tion obtained by EPA that goes beyond that asked
         for in the application, whether submitted by the
         applicant or obtained by EPA under authority such
         as 40 CFR 125.13 [of the former regulations], is
         not considered part of the permit application as
         contemplated by Section 402 (j ).  This additional
         information will be treated in accordance with
         the procedures of 40 CFR 2.302.

         If an applicant has claimed as confidential any
         information contained in the NPDES permit appli-
         cation or the NPDES permit, confidential treat-
         ment will be denied in accordance with this
         Determination and notice given to the applicant
         in accordance with 40 CFR 2.205(f).
Delegation of Authority; Time Limitations                               [Subpart J]
                                                                          [124.132]

     Under Subpart J the Administrator may delegate any of
his or her authority to act to a judicial officer.  (This

provision requires clarification because the Administrator
is not compelled to take any action "under this Subpart.")


     If the Agency misses deadlines imposed by these regu-

lations, procedural relief, including deadline extensions,
may be granted to a party who shows that it has been
prejudiced by that failure.
                                    IX-4

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Service (manner of; additional time)

      Service shall be by mail or personal delivery.  Every
submission must be accompanied by an acknowledgment of service
by the person served, or proof of service in the form of a
statement of the date, place, time, and manner of service and
the names of persons served, certified by the person who made
service.  A signed statement that an attached list of persons
were mailed the submission is sufficient to meet the require-
ments of this regulation.  Certifed mail is not required.

      In addition, if service is by mail, the time limit speci-
fied therein for the person served to do some act will be ex-
tended 3 days.
      [Subpart J]
         [124.80]
        [124.134]
        [124.134]
Settlements

      At any time, the parties to a hearing may stipulate to
relevant facts or to settlement.  However, all stipulations
which settle an evidentiary or panel hearing in whole or sub-
stantial part will not bind the EPA or have any force or effect,
unless and until such stipulations are approved and signed by
the Deputy Assistant Administrator for Water Enforcement.  This
provision obviates the need for approval of stipulations settling
minor issues and facts, while also recognizing that a case which
has been set down for a hearing is apt to involve major issues
of significance to the NPDES program.  Hence, approval should
be required for those stipulations which settle the case or a
major portion of it.  Stipulations sent in to the Deputy
Assistant Administrator for Water Envorcement for review
and signature should be addressed:  Att:  Adjudicatory
Hearing Clerk (EN-336), Permits Division, Chief of Water
Enforcement, EPA, 401 M St., S.W., Washington, D.C. 20460.
      [Subpart J]
[124.85(d)(6)(e>]
        [124.133]
                                    IX-5

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General Permits                                                                [122.48]

     The EPA or approved states may issue general permits
to control the discharge of pollutants from certain sub-
stantially similar activities located in the same geographic
area.  The program is intended to deal with numerous minor
discharges subject to the  same limitations and conditions.

     The new regulations require the permit-issuing agencies
to designate general permit program areas  (GPPA's).  The GPPA's
will correspond with existing geographic or political boun-
daries, such as Section 208 planning areas, state highway
systems, and sewer districts.  General permits may then be
issued to cover all owners or operators of separate storm
sewers or other categories of point sources within a desig-
nated GPPA, other than those covered by individual NPDES permits.

     General permits will  be issued directly by the EPA or
approved states without any preceding applications from indi-
vidual owners  or operators.  They will then be subject to
public notice, comment, and opportunity for a public hearing
under Part 124.  No evidentiary or nonadversary panel hear-                   [124.71]
ings will be held to consider the terms and conditions of these
permits.  However, any individual source subject to a general
permit may instead apply for an individual permit, and then
request an evidentiary hearing on the issuance or denial of
an individual  permit.  Such applications for an individual              [122.48(e)(3)]
permit must be submitted no later than 90  days after the
publication of the general permit.

     The procedures also provide that sources excluded from
general permit coverage solely because they already have an
individual NPDES permit, may request that  the individual
permit be revoked, and that they be covered by the general
permit.
                                   IX-6

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     The Director may, on his or her own motion,  or

upon petition from interested persons,  revoke a general
permit and require an individual permit if:
     [122.48(e)]
        The discharge is a significant contributor of
        pollution.

        The discharger has not complied with the terms
        and conditions of the general permit

        There has been a change in the availability of
        technology or practices for the control of
        pollutants from the particular source

        Effluent limitation guidelines are subsequently
        promulgated for point sources covered by the
        general permit

        A Water Quality Management plan containing
        requirements applicable to such source is
        approved; or

        With respect to other minor sources operating
        in the area, this source does not;

        —involve the same or substantially similar
          type of operation

        —discharge the same type of wastes

        —require the same effluent limitations or
          operating conditions, or

        —require the same similar monitoring requirements.
[122.48(b)(2)(i)]
     The Regional Administrator  (but not the State Director)

may require such an individual permit only if there has been
an on-site inspection of the facility which demonstrated
that the source would be more appropriately regulated under
such a permit.  Notice should be given to the discharger as
specified in Chapter II of this manual.  A national general
permit policy document is presently being drafted to provide
more in-depth guidance for this new approach in permitting.
                                   IX-7

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Grouping Parties                                                         [124.83(c)(6)]

     The new regulations authorize the Presiding Officer to
group parties with substantially like interests for purposes
of avoiding duplicative evidence, arguments, and motions during
an evidentiary or panel hearing.
Production or Exchange of Documents and Data                        [124.83(c)(5)(iii)]
                                                                            [124.83(e)]
     Exchange of documents and information may be ordered if            [124.119(b)(1)]
it is deemed necessary and proper by the Presiding Officer.
A party may then make a written request to any other party
for the production of additional data or other information
relevant to the facts in issue.  Generally speaking, Section
308 provides the EPA with adequate authority to compel pro-
duction of information if necessary.  The Freedom of Infor-
mation Act ordinarily provides adequate authority for parties
to obtain information from the EPA.
Ex Parte Communications                                                       [124.78]

     From the time of notice of the grant of an evidentiary
or panel hearing to  the date of final Agency action, any communi-
cation between  the decisional body and  interested persons outside
the Agency, or  between the decisional body and the Agency Trial
Staff is prohibited  as an ex parte communication if:

     •  Relevant to  the merits of the case

     •  Not originally filed or stated  in the administrative
        record  or in the hearing; and

     •  All parties  did not receive prior written notice of
        such proposed communication or  they were not given
        the opportunity to be present at and participate in
        the discussion.
                                   IX-8

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      The diagram below illustrates and defines the relation-
 ships involved in an ex parte communication:
                      Decisional Body
   (any Agency employee reasonably
    expected to be involved in the
    decision process)
  Agency Trial Statf
(any Agency employee designated
by the Agency as available to
investigate, litigate, and
present the evidence and argu-
ments of the Agency in the
hearings)
Interested persons outside
the Agency
(includes the permit applicant,
any person requesting the hearing,
and any party to the hearing)
     A June 16, 1978 memorandum from the Administrator entitled
Ex Parte Contacts in NPDES Adjudicatory Hearing Decision, states

        The term "interested person outside the agency"
        appears in the Sunshine Act, and refers generally
        to anyone who has a stake in the outcome of the
        proceedings greater than a member of the general
        public.  The term includes, for instance, all
        parties to the hearing and their competitors, public
        officials (including elected representatives such
        as mayors, Senators, and Congressmen), environmental
        and other interest groups, and companies, organiza-
        tions or associations with some special interest in
        the issues (for example, the Chamber of Commerce or
        industry trade associations).
     Ex parte communications do not include:
     •  Communications between Agency employees, other than
        those in the decisional body, and interested persons
        outside the Agency;

     •  Communications between Agency employees, other than
        between the Agency Trial Staff and members of the
        decisional body.
     A member of the decisional body who receives or makes an

ex parte communication must file for the public record of the
                                  [124.78(a)(3>]
                                    IX-9

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 hearing,  a memorandum stating the substance of such communi-
 cation,  as well as submit any written communications.   In
 addition, upon receipt of such a communication by any  member              [124.78(b)]
 of the decisional body, the person presiding at the hearing
 may require the party who knowingly made the communication
 to show cause as to why its claim or interest in the pro-
 ceeding should not be dismissed, denied, or otherwise adversely
 affected.

      The rule governing ex parte communications also
applies to nonadversary initial licensing hearings.  There-
fore, whenever an Agency Trial Staff is designated, "separation
of functions" in the strict sense will apply.  In addition, for
purposes of the rule, the decisional body includes the panel
members whether or not permanently employed by the Agency.  The
Regional Administrator may also designate EPA employees who
will provide staff support to the panel, but who may or may
not: serve as panel members.  Such persons will also be subject
to the ex parte rules.                                                   [124.120(b)]

     However, because the decisions involved are complex and                [124.120]
policy-dominated, and because the purpose of the panel                      [124.126]
hearings is to avoid being accusatory in form or substance,
formal "separation of functions" has been eliminated.  The
initial licensing procedure allows persons who were involved
in the preparation of the draft permit to sit on the panel, and
allows panel members, the Presiding Officer, or other EPA
employees to advise the Administrator on appeal.  This does
not mean that the objective of independent review of a permit
during successive levels of Agency decisionmaking has been
discarded.  The regulations have met this objective by requiring
any hearing panel to include at least 2 persons who have not
taken part in preparing the draft permit, and that when the
Administrator reviews a permit, any person assisting him or
her directly in preparing the final decision must be without
substantial prior connection with the matter.
                                   IX-10

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New Sources

     A new source is defined in 122.3(v) as "any building,
structure, facility, or installation from which there is or
may be a discharge of pollutants the construction of which
commences:
     »  After promulgation of standards of performance and
        Section 306 of the Clean Water Act which are appli-
        cable to such source; or
     •  After proposal of standards of performance under
        Section 306 which are applicable to such source,
        but only if the standards are promulgated within
        120 days of their proposal."
     The regulations contain many special provisions for new sources.
For instance, before beginning any on-site construction, potential
new sources are required to submit relevant information to the
Regional Administrator so that he or she can make a determination
on whether the facility is in fact a new source.  Any interested
person may challenge the Regional Administrator's initial determina-
tion by requesting an evidentiary hearing.  (For more details on
this provision (124.12), see Chapter II of this manual.)

     The criteria and standards for new source determinations
are specified in 122.47(b).  A new source will result from
construction of a source on a site:

     •  Where another source  is  not  located; or
     •  Where another source is located, provided that the:
        —process which causes the discharge from the other
          source is totally replaced; or
        —construction results in a new or additional discharge.
                                   IX-11

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     If the facility is determined to be a new source, the
applicant must comply with the environmental review require-
ments of 40 CFR §6.900 et seq.  The Regional Administrator
will determine whether an Environmental Impact Statement (EIS)
is required.  If it is determined that an EIS will be prepared,
the public notice of the draft permit will occur at the same
time or after a draft EIS is issued. The EIS will include a                [124.31]
recommendation on whether the permit is to be issued or denied.
Any EIS prepared and any other applicable factors listed in
40 CFR §6.920 will be considered by the Regional Administrator
in deciding whether to issue a permit for a new source.

     No final permit for a new source will be issued until
at least 30 days dfter the date of issuance of a final EIS if
one is required under 40 CFR §6.916.  If an EIS is required,               [124.62]
no on-site construction may begin before issuance of a final
permit incorporating appropriate ElS-related requirements, or
before the applicant executes a binding written agreement
calling for compliance with all such requirements, unless the
Regional Administrator determines that construction will not
cause a significant adverse environmental impact.  If an EIS
is not required, no on-site construction may begin before 15
days following issuance of a finding of no significant impact,
unless upon a request to begin construction, the Regional
Administrator determines that a finding of no significant
impact will probably be made.  If any on-site construction
begins in violation of the above requirements, the Regional
Administrator will advise the owner that it is proceeding with
construction at its own risk, and that such construction acti-
vities constitute grounds for denial of a permit.  The Regional
Administrator may also seek a court order to enjoin the
construction.                                                         [122.47(c)(4)]
                                   IX-12

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     In addition, no permit will be issued to a facility which

is a new source if its discharge will:
     •  Cause or contribute to the violation of water
        quality standards if the point of discharge is
        located in a segment that was an effluent limi-
        tation segment prior to this discharge; or

     •  Exceed the total pollutant load allocation if
        the discharge is into a water quality segment.                     [122.13(i)]
                                   IX-13

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     CHAPTER X
RESOURCE DOCUMENTS
   & BIBLIOGRAPHY

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                                  CHAPTER X
                    RESOURCE DOCUMENTS AND BIBLIOGRAPHY
                                 OVERVIEW
     The materials provided in this chapter are research aids and tools designed
to assist participants in preparing for and conducting hearings.

     The complete text of Parts 122, 123, 124, and 125 is provided as a handy
reference in using this manual.

     An index to common NPDES issues and problems is provided with reference to
past decisions of the General Counsel and to the current regulations.

     In addition, an annotated bibliography of useful references is provided
which includes such topics as pleading and practice in hearings,  evidence, legal
forms, and past decisions and opinions from the EPA General Counsel.
                                 X-l

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                      TOPICAL INDEX TO DECISIONS OF THE

                  GENERAL COUNSEL AND THE NPDES REGULATIONS
[This index to common and frequently occurring issues in NPDES permit

proceedings will aid the user in locating, by number, relevant decisions

of the General Counsel in Adjudicatory Proceedings under the 1974

Regulations.]


Issue:  Amendments to Permits reflect guideline changes

        — OGC .#10,23,27

        — Section 122.31(e)(3) and (4)


Issue:  "Backsliding"

        — Section 122.15(i)


Issue:  Best Engineering Judgment [Section 402(a)(D]

        — Case by Case Regulation - limitations not included in guidelines
           OGC #54

        •— Factors for Defining BPT - case by case
           OGC #38,40

        — Information Requests
           Section 308/402(a)(1)
           OGC #21,27,32,35,39,43

        — Issuance of Permits Prior to Promulgation of NSPS Guidelines
           OGC #1,4,9,21,23,32,38,43

        — Sections 125.3(c)(2) and 122.15(f)(10)


Issue:  Burden of Proof

        — OGC #5,23,51

        — Section 124.85(a)  (see also Section 122.14(1) (4) for burden
           of proof in upset proceedings)
                                     X-2

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Issue:  Certification by State [Section 401]

        — Conditions/Limitations due to State Certification
           OGC #14,17,25

        — Section 124.21 (Subpart C)
Issue:  Confidentiality of Section 308 data

        — OGC #50

        — Section 124.131


Issue:  Compliance

        — Compliance Dates and Schedules
           BPT—OGC #11,23,27.42

        — Compliance Steps toward Statutory Goals  to be Achieved
              after Expiration of Permit
           OGC #2

        — Enforcement Compliance Status Letters  (ECSL's)
           OGC #45,47


Issue:  Cooling System

        — Section 316(b)
           OGC #32,41                *


Issue:  Corps of Engineers Requirements

        — OGC #17,22,27,28

        — Section 124.44


Issue:  Deadlines — permit extension beyond 7/1/77

        — 'OGC #11,26,40,45,47,49

        — Part 125, Subpart J


Issue:  Discovery/subpoenas

        — OGC #23
                                        X-3

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Issue:  Effluent Guidelines

        — Application of Guidelines Promulgated Subsequent to Request
             for Evidentiary Hearing
           OGC #36,39
           U.S. Pipe and Foundry Company

        — Use of Promulgated Regulations during Judicial Review
             Permit Conditions; Adjudicatory Hearings
           OGC #3,23,27,32

        — Section 124.86(c) and introductory paragraph to Section 122.15
Issue:  Ex Parte Communications

        — Section 124.78


Issue':  Force Majeur — Conditions beyond control of permittee

        — OGC #8,15,32


Issue:  Indirect Discharges

        — OGC #43 at 200

        — Section 122.3(k) and  (p)


Issue:  Internal Waste Streams  (up the pipe)

        — OGC #18,27,33,43

        — Section 122.16(h)


Issue:  Irrigation Return Flow

        — OGC #21

        — Section 122.3(y)  (excluded)


Issue:  Issues in Proceedings

        — Raising additional issues  (discretion) Appeal  75-7 p.  93


Issue:  Liability for Violations

        — Joint and several liability
           OGC #43
                                     X-4

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Issue:  MaIfunctions

        — OGC #1


Issue:  Mixing Zones

        — OGC #31


Issue:  Monitoring

        — Frequency, Analytical Methods,  Studies
           OGC #27,29,39

        — (Research Samples), OGC #43 at  212

        — Section 122.20


Issue:  Navigable Waters

        — OGC #7,30,53

        — Section 122.3(t)


Issue:  New Source Determinations

        — OGC #36,51,52

        — Section 122.3(v)  and  122.47


Issue:  Operator Requirements

        — OGC #19


Issue:  Parties to Proceedings

        — Consolidation and Severance
           Section 124.82

        — Additional parties/issues
           Section 124.79/Appeal #75-7
                                     X-5

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Issues: Privately Owned Treatment Works

        — OGC #43

        — Section 122.3(k)


Issues: Removal of In-Place Pollutants

        — OGC #40


Issue:  Sewers

        — Combined Sewers
           OGC #48


Issue:  Sludge Disposal Requirements in Permits

        — OGC #33

        — Section 122.15(h)


Issue:  Standby Emergency Facilities

        — OGC #40

        — Section 122.14(k) and  (1) upset/bypass


Issue:  Stays/Extensions for Adjudication

        — OGC #43; Section 124.61


Issue:  Stipulations - Consent decrees

        — Binding Effect
           OGC #2,22,41

        — Section 124.133


Issue:  Studies

        — BAT Studies - Section 308 Authority
           OGC #39


Issue:  Summary Determination

        — Section 124.84
                                     X-6

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Issue:  Water Quality Standards

        — Cost benefitting requirements to meet State water
             quality standards
           OGC #37

        — More stringent than BAT or Guidelines
           OGC #2,13,14,16,17,44
Issue:  Wells

        — Injection Wells
           OGC #6,8,18,27,43

        — Section 122.41
                                    X-7

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                             ANNOTATED BIBLIOGRAPHY
 I.   Hearing Procedure

 Ruhlen, M. , Manual for Administrative Law Judges.   Washington,  B.C.:
     The Administrative Conference of the United States.   Superintendent of
     Documents, U.S. Government Printing Office, Stock No.  052-044-00007-5,
     1974.   A brief but useful guide to authority,  duties,  and responsibilities
     of Administrative Law Judges.  Contains a compendium of suggested forms
     for orders.   Counsel should refer to this pamphlet as an authoritative
     guide to hearing procedures.


 Manual for Complex Litigation with Amendments to June 3, 1977,  ed.  4. Chicago:
     Commerce Clearing House, Inc., 1977.  This reference,  a successor to the
     Handbook of Recommended Procedures for the Trial of Protracted  Cases, is
     a comprehensive collection of recommended practices and suggested forms
     useful for administering the "big case".  While directed mainly toward
     complex and multidistrict litigation in the Federal courts, the forms
     section of the book contains a number of useful checklists  for  prehearing
     orders, which have been used successfully in the district courts.  Many
     of the suggestions can be applied fully to complicated administrative
     litigation.


 Frumer, L., Bender's Federal Practice Forms.  New York;   Matthew Bender and
     Company Incorporated, 1951.  This 16-volume treatise with annual supplement,
     which is a companion to Moore's treatise on Federal Practice, is a very
     complete reference to recommended forms used in the Federal courts.  The
     sections on pleadings and motions are particularly well suited for use
     in administrative litigation.


 Pedersen,  W. , The Decline of Separation of Functions in Regulatory Agencies,
     64 Virginia Law Review 991 (1978).  A law review article by the principal
     author of the nonadversary procedures.  Provides legal philosophies behind
     his approach.
II.   Witnesses

 Handbook for the Businessman as a Witness.   New York:   The United States
     Trademark Association,  1974.   A highly  readable practical bread and butter
     pamphlet for both witnesses and counsel.   The title should not detract from
     the book's value as a tool for technical or scientific expert witnesses.
                                     X-8

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III.   Evidence

  Cleary,  E. ,  ed., McCormick's  Handbook  of  the Law of  Evidence,  2nd  ed.
      St.  Paul:   West  Publishing  Co.,  1972.  A widely  used  authoritative  reference
      on  the  law of  evidence.   Most  useful  as a  "counsel  table"  tool.  This  edition
      is  not  annotated to  the Federal  Rules of Evidence.


  "Federal Rules of  Evidence,"  in Federal Rules,  1979  edition.   St.  Paul:
      West Publishing  Co.,  1979.   A  handy counsel table reference  to the  text
      of  the  Federal Rules  of Evidence.  While the Federal  Rules are not  directly
      applicable in  NPDES  hearings,  Agency  Counsel have,  in the  past,  found
      reference  to the Rules  to be a very convenient and  authoritative way of
      focusing evidentiary  objections  and arguments on some concrete statement
      of  evidentiary principles.   Because the Federal  Rules of Evidence have
      liberalized and  modernized  many  of the old  formalistic principles of
      evidence,  the  Rules  often offer  a  completely satisfactory  result in debates
      on  evidence at administrative  hearings.


  Saltzburg,  S.  and  Redden, K., Federal  Rules of  Evidence Manual,  2nd ed.
      Charlottesville, Virginia:   The  Michie Company,  1977.  This  is a thoroughly
      annotated  and  annually  supplemented reference to the  Federal Rules  of
      Evidence.   It  is especially useful as a counsel  table guide  because it
      incorporates editorial  comments, Advisory  Committee notes, and legislative
      history in the annotation to each  of  the rules.  Case citations also
      contribute to  the usefulness of  the manual for research and  memorandum
      writing.


  Gelpe and Tarlock, The Uses of  Scientific Information  in  Environmetnal  Decision
      Making.  48 S. Cal.  L. Rev., 371 (1974).
 IV.   Substantive NPDES Issues

  U.S.  Environmental Protection Agency,  National Pollutant Discharge Elimina-
      tion System Adjudicatory Hearing Proceedings,  Decisions of the Administra-
      tor and Decisions of the General Counsel.   Washington,  B.C.:   U.S.  Environ-
      mental Protection Agency, 1976-77.   The compendium of OGC Decisions
      Nos. 1-36 (Volume 1) and 37-54 (Volume 2)  issued in connection with Adjudi-
      catory Proceedings from 1974 through December  1976.   Individual copies
      of Decisions Nos. 55-74, through January 1979, may be obtained from EPA
      Headquarters.


  Environmental Protection Agency General Counsel Opinions.  Chatsworth,
      California:   NILS Publishing Company,  1979. A two-volume compendium of
      EPA General Counsel Opinions,  supplemented periodically.   These are
      written opinions from OGC on legal interpretations of EPA-administered
      legislation and programs.  They should not be  confused  with NPDES
      decisions of the General Counsel in adjudicatory proceedings.
                                       X-9

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Doglin, E. and Guilbent, T., eds.,  Federal Environmental Law.   St.  Paul:
    Environmental Law Institute, West Publishing Co., 1974.  The chapter on
    "The Federal Law of Water Pollution Control"  authored by Robert Zener,
    former EPA General Counsel, is  still an often-cited and definitive refer-
    ence to the history of the Federal Water Pollution Control Act Amendments
    of 1972 and the early efforts of EPA to implement the statute.
V.  General

A Uniform System of Citation, Twelfth Edition.  Cambridge, Massachusetts:
    The Harvard Law Review Association, 197.6.  This is the so-called "Blue
    Book".  The most frequently used reference to forms for citation in
    legal documents such as briefs, memoranda, correspondence, etc.


Wiener, F., Briefing and Arguing Federal Appeals.  Washington, B.C.:
    The Bureau of National Affairs, Inc., 1967. .This is a widely used text
    on brief writing, which is a "must" skill for any trial lawyer.  While
    devoted primarily to Federal court appellate advocacy, the methods and
    approaches recommended for brief writing are quite appropriate for use
    in preparing trial briefs and memoranda of law, even at the trial level.
                                    X-10

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                  INDEX  TO  NPDES REGULATIONS  (PARTS  122-125)
PART 121-STATE CERTIFICATION OF
ACTIVITIES REQUIRING A FEDERAL
LICENSE OR PERMIT

  3. 40 CFR Part 121 is redesignated
from 40 CFR Part 123.
  4. Part 122 is revised to read as
follows:

PART 122—NATIONAL POLLUTANT
DISCHARGE ELIMINATION SYSTEM

Subpart A—General

Sec.
122.1  Purpose and scope.
122.2  Law authorizing NPDES permits.
122.3  Definitions.
122.4  Exclusions.
122.5  Signatories.

Subpart B—NPDES Permit Application and
.iMuanca
122.10 Application for a permit.
122.11 Permit issuance; effect of permit.
122.12  Duration of permits and continuation
    of expiring permits; Transferability of
    permits.
122.13  Prohibitions.
122.14  Conditions applicable to all permits.
122.15  Applicable limitations, standards.
    prohibitions, and conditions.
122.16  Calculation and specification of
    effluent limitations and standards.
 122.17  Schedules of compliance.

Subpart C—Permit Compliance
 122.20  Monitoring.
122.21  Recording of monitoring results.
 122.22  Reporting of monitoring results and
    compliance by permittees.
 122.23  Noncompliance reporting.

 Subpart D—Permit Modification,
 Revocation and Relsauance, and
 Termination
 122.30  General.
 122.31  Modification, revocation and
    reissuance, and termination.

 Subpart E—Special NPDES Programs
 122.40  General.
 122.41  Disposal of pollutants into wells, into
     publicly owned treatment works or by
     land application.
 122.42  Concentrated animal feeding
     operations.
 122.43  Concentrated aquatic animal
     production facilities.
 122.44  Aquaculture projects.
 122.45  Separate storm sewers.
 122.46  Silvicultural activities:
 122.47  New sources and  new dischargers.
 122.48  General permit program.
 122.49  Special considerations under Federal
     law.
Subpart F—Miscellaneous
122.60  Delegation of authority.
  Appendix A.—Point Source Categories and
Permit Expiration Dates.
  Authority.—Clean Water Act, as amended
by the Clean Water Act of 1977, 33 U.S.C.
1251 et seq; Administrative Procedure Act 5
U.S.C. 551 et seq.

PART  123—STATE PERMIT PROGRAM
REQUIREMENTS

Subpart A—General
Sec.
123.1
123.2
123.3
123.4
123.5
      Purpose and scope.
      Definitions.
      Elements of a program submission.
      Program description.
      Memorandum of Agreement with the
    Secretary for section 404 programs.
123.6  Attorney General's Statement.
123.7  Memorandum of Agreement with the
    Regional Administrator.
123.8  Sharing of information.

Subpart B—Requirements of State
Programs
123.11  Requirement to obtain a permit.
123.12  Operational requirements.
123.13  Control of disposal of pollutants into
    wells.
123.14  Inspections, monitoring, entry, and
    reporting.

Subpart C—Transfer of Information,
Objections to Permits
123.21  Receipt and use of Federal
    information.
123.22  Transmission of information to EPA.
123.23  Objections to proposed NPDES
    permits.
123.24  Prohibitions.

Subpart D—Enforcement Provisions
123.31  Compliance evaluation programs.
123.32  Enforcement.

Subpart E—Planning and Conflict of
Interest Requirements
123.41  Continuing planning process.
123.42  Asency board membership.

Subpart F—Procedures for Approval of
State Permit Programs
123.51  Section 402 approval process.
123.52  Ser.-tion 404 approval process.

Subpart 0—Revisions to Approved
Programs
123.61  Procedure for revision of State permit
    projiiams.
123.62  NPDES program revisions under the
    Clean Water Act of 1977.

  Authority: Clean Water Act. as amended
by the Clean Water Act of 1977, 33 U.S.C.
1251 et seq.
                                                X-ll

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PART 124—PROCEDURES FOR
DECISIONMAKING REGARDING
NATIONAL POLLUTANT DISCHARGE
ELIMINATION SYSTEM PERMITS

Subpart A—Applicability
Sec.
124.1
124.2
Purpose-and scope.
Definitions.
Subpart B—The Application Process
124.11  Application for a permit.
124.12  Special previsions for applications
     from new sources.
124.13  Requests for modification, revocation
     and reissuance, or termination.
124.14  Permits required on a use-by-case
     basis.
124.15  Decisions on permit denials and
     terminations.

Subpart C—State Certification
124.21  Circulation of applications and draft
     permits to certifying States.
124.22  State certification.
124.23  Effect of State certification.
124.24  Special provisions for State
     certification  and concurrence in
     applications for section 301(h)
     modifications.

 Subpart D— Preparation of a Draft Permit
 124.31  Draft permit after application.
 124.32  Other draft permits.
 124.33  Statement of basis.
 124.34  Fact sheet.
 124.35  Administrative record for EPA draft
     permits.
 124.38  Applicabili ty of Subpart D to dra ft
     permits incorporating section 301 (h)
     modifications.
 Subpart E—Public Comment and Hearings
 124.41   Public notice regarding permits and
      permit hearings.
 124.42   Public comments and hearings.
 124.43   Obligation to raise points and
      provide information during the comment
      period.
 124.44   Terms requested by the Corps  of
      Engineers and other governmental
      agencies.
 124.45   Reopening of comment period.

 Subpart F—Special Provisions for
 Variances and Statutory Modifications
 124.51   Time deadlines for applications for
      variances from and modifications of
      effluent limitations.
 124.52   Decisions on variances and
      modifications.
 124.53   Procedures for variances and
      modifications where EPA is the permit
      issuing authority.
 124.54   Appeals of modifications and
      variances.
 124.55   Special provisions for modifying the
      secondary treatment requirements under
      section 301(h).
 124.56   Special procedures for decisions on
      thermal variances (section 316(a}|.
 Subpart G—Issuance and Effective Date of
 Permit
 124.Gl  Issuance and effective date of permit;
     stays.
 124.62  Final Environmental Impact
     Statement.
 124.63' Response to comments.
 124.64  Administrative record for final
     permit issued by EPA.

 Subpart H—Evidentiary Hearings for EPA-
 Issued Permits
 124.71  Applicability.
 124.72  Definitions.
 11I4.73  Filing and submission of documents.
 124.74  Requests for evidentiary' hearing.
 124.75  Decision on  request for a hearing.
 124.76  Obligation to raise issues and submit
     evidence before a final permit is  issued.
 124.77  Noiice of the grunt of a hearing.
 124.7U  Ex parte communications.
 124.79  Additional parties and issues.
 i;M.80  Filing and service.
 124.81  Assignment  of Administrative Law
     Judge.
 124.02  Consolidation and severance.
 124.93  Prohearing conferences.
 124.64  Summary determination.
 124.85  Hearing procedure.
 124.8G  Motions.
 124.87  Record of hearings.
 124.88  Proposed findings of fact and
     conclusions: brief.
 124.89  Decisions.
 124.90  Interlocutory appeal.
 124.101  Appeal to the Administrator.

 Subpart I—Non-Adversary Procedures for
 Initial Licensing
 124.111  Applicability.
 124.112  Relation of other Subparts.
 124.113  Public notice regarding draft permits
    and permit conditions.
 124.114  Hearinxs.
124.115  Effect of denial or absence of
    request for hearing.
124.116  Notice of hearing.
124.117  Request to participate in heating.
124.118  Submission of written comments on
    draft permit.
124.119  Presiding Officer.
124.120  Panel hearing.
124.121  Opportunity for cross-examination.
124.122  Record for final permit.
124.123  Filing of brief, proposed findings of
    fact and conclusions of law and
    proposed modified permit.
124.124  Recommended decision.
124.125  Appeal from or review of
    recommended decision.
124.126  Final decision.
124.127  Final decision if there is no review.

Subpart J—Miscellaneous
124.131   Public access to information.
124.132  Delegation of authority; time
    limitations.
124.133   EPA Headquarters' approval of
    stipulation or consent agreement.
124.134   Additional time after service by
    mail.
124.135   Effective date of Part 124.
  Authority.—Clean Water Act, as amended
by the Clean Water Act of 1977. 33 U.S.C.
1251 et seq; Administrative Procedure Act, 5
U.S.C. 551 et seq.
                                          X-12

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PART 125—CRITERIA AND
STANDARDS FOR THE NATIONAL
POLLUTANT DISCHARGE
ELIMINATION SYSTEM

Subpart A—Criteria and Standards for
Imposing Technology-Based Treatment
Requirements Under Section 301(b) of the
Act

Sec.
125.1  Purpose and scope.
125.2  Definitions.
125.3  Technology-based treatment
    requirements in permits.

Subpart B—Criteria for Issuance of Permits
to Aquacufture Projects
       Purpose and scope.
       Criteria.
125.10
125.11

Subpart C—Criteria for Extending
Compliance Dates for Facilities Installing
Innovative Technology Under Section
301(k) of the Act [Reserved]

Subpart D—Criteria and Standards for
Determining Fundamentally Different
Factors Under Sections 301(b)(1MA),
301(b)(2) (A) and (E), and 307(b) of the Act
125.30  Purpose and scope.
125.31  Criteria.
125.32  Method of application.

Subpart E—Criteria for Granting Economic
Variances From Best Available Technology
Economically Achievable Under Section
301(c) of the Act [Reserved]

Subpart F—Criteria for Granting Water
Quality Related Variances Under Section
301(g) of the Act [Reserved]

Subpart G—Criteria for Modifying the
Secondary  Treatment Requirement Under
Section 301(h) of the Act [Reserved]

Subpart H—Criteria for Determining
Alternative Effluent Limitations Under
Section 316(a) of the Act
125.70  Purpose and scope.
125.71  Definitions.
125.72  Early screening of applications for
    section 316(a) variances.
125.73  Criteria and standards for the
    determination of alternative effluent
    limitations under section 316(a).
Subpart I—Criteria Applicable To Cooling
Water Intake Structures Under Section
316(b) of the Act [Reserved]

Subpart J—Criteria for Extending
Compliance Dates Under Section 301(1) of
the Act
125.90  Purpose and scope.
125.91  Definition.
125.92  Requests for permit modification and
    issuance under section 301(i)[l) of the
    Act.
125.93  Criteria for permit modification and
    issuance under section 301(i)(l) of the
    Act
125.94  Permit terms and conditions under
    section 301(i)(l) of the Act.
125.95  Requests for permit modification or
    issuance under section 301(i)(2) of the
    Act
125.96  Criteria for permit  modification or
    issuance under section 301(i)(2) of the
    Act.
125.97  Permit terms and conditions under
    section 301(i)(2) of the  Act

Subpart K—Criteria and Standards for Best
Management Practices Under Section
304(e) of the Act
125.100  Purpose and  scope.
125.101  Definition.
125.102  Applicability of best management
    practices.
125.103  'Permit terms and  condition*.
125.104  Best management practices
    programs.

Subpart L—Criteria and Standards for
Imposing Conditions  for the Disposal of
Sewage Sludge Under Section 405 of the
Act [Reserved]

Subpart M—Ocean Dumping Criteria Under
Section  403 of the Act [Reserved]
  Authority: Clean Water Act. as amended
by the Clean-Water Act of  1977, 33 U.S.C.
1251 et seq.
                                         X-13

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If-  .  s
             Thursday
             June 7, 1979
             Part II


             Environmental
             Protection Agency

             National Pollutant Discharge Elimination
             System; Revision of Regulations

-------
   32854       Federal Register / Vol. 44, No. Ill / Thursday, June 7,1979 / Rules and Regulations
  ENVIRONMENTAL PROTECTION
  AGENCY

  40 CFR Pails ^ 115,121,122,123,124,
  125, 402, an<* 403

  [FRLrzof-2J

  National Pollutant Discharge
  Elimination System; Revision of
  Regulations

  AGENCY: Environmental Protection
  Agency (EPA).
  ACTION: Final rule.

  SUMMARY: This rule extensively revises
  the existing regulations governing the
  National Pollutant Discharge
  Elimination System (NPDES) program
  for three purposes:
    (1) To clarify and improve existing
  program regulations and procedures in
  light of past experience;
    (2) To fill significant gaps in coverage
  under the existing regulations,
  particularly in response to court
  decisions and the emerging emphasis on
  the control of toxic and hazardous
  pollutants; and
    (3) To make the regulatory changes
  which are necessary under the 1977
  amendments to the Clean Water Act.
  DATES: These regulations will be
  considered issued for purposes of
  judicial review at 1:00 p.m. eastern time
  on June 14,1979. If such date is a
  Federal holiday, the issuance date will
  be considered to be 1:00 p.m. eastern
  time on the next day after the seventh
  day which is not a Federal holiday.
  Parts 121,122,123,125 and 403 of this
  regulation shall be effective August 13,
  1979. Part 124 is effective as provided in
  § 124.135. In order to assist EPA to
  correct typographical errors, incorrect
  cross-references, and similar technical
  errors, comments of a technical and
 nonsubstantive nature on this final
 regulation may be submitted not later
 than August 13,1979. However, the
 effec.tive dates will not be delayed by
 consideration of such comments.
 FOR FURTHER INFORMATION CONTACT:
 Edward A. Kramer (EN-336), Office of
 Water Enforcement, Environmental
 Protection Agency, Washington, DC
 20460 [202-755-0750).
 SUPPLEMENTARY INFORMATION:

 Background
  The Federal Water Pollution Control
 Act Amendments of 1972 established the
 National Pollutant Discharge
 Elimination System (NPDES) permit
program.  Shortly after, in December 1972
and May 1973, EPA promulgated
  regulations outling the NPDES program
  in two Parts. 40 CFR Part 124
  established substantive requirements for
  approved State NPDES programs, while
  Part 125 established the similar
  requirements of the EPA permit
  program. These two Parts, revised
  several times, are the existing NPDES
  regulations which remain in force until
  the effective date of these regulations
  published today.
    In 1977, a new phase of the NPDES
  program began, prompted by several
  developments. First, five years of
  experience with dischargers, approved
  NPDES States, and the courts had been
  gained. Second, the "first round" of
  NPDES permits, issued for a term of five
  years, were beginning to expire. Third, a
  major statutory deadline (July 1,1977)
  had passed, and the 1983 deadline for
  achievement of more stringent treatment
  requirements became the new program
  goal, along with an increased emphasis
  on the control  of toxic and hazardous
  pollutants. In late 1977, Congress
  enacted the Clean Water Act of 1977,
  making several significant changes in
  the scope and  direction of the NPDES
  program. These changes include:
  revisions of the 1983 treatment
  requirements for industrial dischargers;
  extensions of the 1977 treatment
  deadline for certain municipal and
  industrial dischargers; provisions for
  certain variances from technology-based
  treatment requirements; recognition of
  the Consent Decree in NRDC v. Train, 8
  ERG 2120 (D.D.C. 1976); requirements for
  best management practices in certain
  industrial permits; provision for control
  of sewage sludge disposal in NPDES
  permits; provision for EPA to issue
  permits if it objects to a State NPDES
 permit; and authorization of State
 assumption of the permit programs
 under sections  318, 404, and 405.
   In addition to the need for regulatory
 revisions to address these major
 developments, the former regulations
 had to be amended and reorganized
 because they had become unwieldy. On
 one hand, much needless duplication of
 the basic substantive and procedural
 requirements between the former State
 and Federal NPDES program regulations
 can be eliminated. Under the regulations
 published today, the basic substantive
 and procedural  requirements applicable
 to all permits are set forth in Parts 122
 and 124. Part 123, which establishes
 State Permit Program Requirements,
 cross-references provisions from those
 Parts which are applicable to State
 programs. EPA believes that this new
 structure will help to simplify the
regulations for use by permittees, the
States, and the public, and will avoid
  inconsistencies between State and
  Federal programs.
    Parts of the former NPDES regulations
  were either too terse to provide
  meaningful guidance or left significant
  permit-related issues unaddressed. For
  example, in many situations the former
  regulations governing adjudicatory
  hearings provided inadequate assistance
  or direction to Presiding Officers or the
  parties. Based upon several years of
  experience accumulated by EPA in
  conducting these hearings, the
  regulations published today for Part 124
  provide more detailed procedures better
  tailored to result in responsible,
  informed permit issuance decisions.
  Similarly, and for the same purpose, the
  regulations published today for Parts 122
  and 125 provide guidance on substantive
  questions formerly unaddressed in
  regulations.
    Accordingly, five new Parts of Title
  40, incorporating all of existing Parts
  115,122,123,124,125 and 402, as well as
  portions of § 6.900, are established as
  follows:                            '

  • PART 121—STATE CERTIFICATION
  OF ACTIVITIES REQUIRING A
  FEDERAL LICENSE OR PERMIT

  • PART 122—NATIONAL
  POLLUTANT DISCHARGE
  ELIMINATION SYSTEM

  • PART 123—STATE PERMIT
  PROGRAM REQUIREMENTS

  • PART 124—PROCEDURES FOR
  DECISIONMAKING REGARDING
  NATIONAL POLLUTANT DISCHARGE
  ELIMINATION SYSTEM PERMITS

 • PART 125—CRITERIA AND
 STANDARDS FOR THE NATIONAL
 POLLUTANT DISCHARGE
 ELIMINATION SYSTEM

   A "Guide to the NPDES Regulations"
 which describes the regulations has
 been prepared and is available by
 writing the Environmental Protection
 Agency, Public Information Center (PM-
 215), 401 M Street, S.W., Washington,
 D.C. 20460.
   These regulations  were proposed on
 August 21,1978, (43 FR 37078).
 Originally, the comment period on.the
 proposed regulations was to have ended
 on October 20,1978. However, based on
 many requests from the public, the
 comment period was extended to
 November 20,1978 (43 FR 47213,
 October 13,1978). During the comment
 period, two public meetings were held:
 one in Washington, D.C. and one in San
Francisco. Over 100 people attended
each meeting and over 500 letters were

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              Federal Register /Vol. 44. No. Ill  / Thursday.  June 7, 1979  / Rules and Regulations       32855
 submitted containing thousands of
 comments. Comments were catalogued
 and summarized for each section of the
 proposal. These final regulations revise
 the proposed regulations based on
 comments received. A summary of
 comments received and the bases for
 revisions are discussed later in this
 preamble.             •
   In addition to the August 21,1978
 proposal, EPA published other
 regulations governing specific portions
                   of the NPDES program. These
                   regulations were promulgated
                   separately from the August 21,1978 core
                   package because of statutory deadlines
                   for application by permittees for certain
                   extensions  and modifications or because
                   of other pressing needs. The following
                   table'summarizes all regulations
                   recently published by EPA concerning
                   the NPDES program.  Except as noted in
                   the table, these separately published
                   regulations have been incorporated into
                   this final rule.
                                       Table I
FEDERAL REGISTER Date
Feb. 4. 1977 (42 FR 6846) 	


Apr. 25, 1978 (43 FR 17484)._.




May 16. 1978 (43 FR 21266)__






May 23, 1978 (43 FR 22160) —








June 26. 1978 (43 FR 27736)._..


Aug. 21. 1978 (43 FR 37078) 	


Sept 1, 1878 (43 FR 39282) 	

Status of
Summary of regulation regulations as
of last
publfcatjoo
	 Genera/ Permit Program. Proposed estab- Proposed
Bsnment of a new general program cover- Rule.
ing point source Discharges.
— 30KM Modfications. Proposed establish- Proposed
ment of criteria, standards and procedures Rule.
for granting 301(h) permit modifications to
the secondary treatment requirements for
certain ocean discharges.
	 30nn Extensions. Establishes criteria for Interim Final
granting extensions for compliance with Rule.
1977 statutory deadline for muraopaf treat-
ment requirements and industries planning
to connect to these treatment systems
and a method for incorporating these ex-
tensions in the NPDES program.
_ Veto/Modification. Revised Parts 124 and Final Rule 	
125 of EPA regulations to clarify the pro-
cedures and criteria which EPA win use in
exercising its authority to- object to (veto)
the issuance of State NPDES permits and
to require modification of permits to incor-
porate SAT/Toxic requirements in accord-
ance with NRDC Consent Decree of June
8. 1976.
... Fretnatment Pretreatment regulations to Final Rule . 	
control the introduction of non-domestic
wastes into municipal treatment plants.
.... NPDES Regulations Proposed revision to the Proposed
NPDES regulations Rule.

_ Best Management Practices. Proposed es- Proposed
taMshment of new controls on toxic and Rule.
Comments
Incorporated in final rule.
primarily at 5 122.48.

Procedures incorporated into
Part .124. Subpart G, of Part
125 reserved for standards
and criteria.

Incorporated in final rule as
Subpart J of Part 125.





Veto regulations incorporated
in final rule at J 123.23.
Modification regulations
incorporated in final rule at
5 122.15
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  32856
Federal  Register / Vol. 44, No. Ill  / Thursday, June 7, 1979  /  Rules and Regulations
  Appeals for the Third Circuit. In
  American Iron and Steel Institute \.
  EPA (AISIII), 543 F.2d 521 (3rd Cir.
  1976), the court held that "net/gross"
  provisions of NPDES regulations (which
  currently appear, in amended form, as
  § 122.16 (!) and (g) of these regulations)
  are not reviewable in the abstract, but
  become reviewable either in the context
  of individual effluent limitations
  guidelines or NPDES permit issuance.
  A/5///at 528.
    EPA agrees with the Court's analysis
  in AISIII. Today's regulations will be
  reviewable  when NPDES permits are
  issued. A very few, such as net/gross
  provisions, may also become reviewable
  when  effluent limitations guidelines are
  promulgated. None are reviewable now
  in the  Courts of Appeals.
    There remains a question not
  addressed by the AISIII decision: Is
  review of these regulations available in
  District Courts? EPA believes that
  District Court review is not available
  now. Two of the reasons cited in AISIII
  for the unavailability of Court of
  Appeals review similarly militate
  against District Court review: The
  absence of a factual context to focus
  review, and the absence of a concrete
  record to aid the reviewing court; AISIII
  at 528. Moreover, the absence of
  immediate effect on the discharger and
  other parties points persuasively to a
  conclusion that today's regulations are
  not ripe for review in either the District
  Courts or the Courts of Appeals. As the
  Supreme Court stated in Toilet Goods
 Ass'n.  v. Gardner, 387 U.S. 158,165
  (1967) the challenged regulations:
   would at most lead only to ... a
 determination that can then be promptly
 challenged through an administrative
 procedure, which in turn is reviewable by a
 court Such review will provide an adequate
 forum for testing the regulation in a concrete
 situation. [Footnotes omitted.]
   EPA  believes, for the same reasons,
 that the NPDES regulations should be
 reviewed in the concrete context of
 permit issuance proceedings. See
 Diamond Shamrock Corp. v. Costle, 580
 F. 2d 670 (D.C. Cir. 1978).

 Issuance Date of the Regulations
  EPA further wishes to point out that
 the NPDES regulations will  not be
 considered issued for the purpose of
 judicial review (if available at this time)
 until 1:00 p.m. eastern time,  7 days after
 publication in the Federal Register (June
 14,1979). EPA published notice of this
 intent to have a delayed issuance date
 on May 1,1979, 44 FR 25475. The
regulations will not become effective
until 60  days from that issuance date
(August 13,1979) except for Part 124
                           which will be 120 days (October 12,
                           1979). In addition, due to the length of
                           NPDES regulations and the number of
                           cross-references, EPA will accept
                           nonsubstantitive comments (e.g.^
                           typographical errors, incorrect cross-
                           references, missing lines, etc.) during
                           this same 60-day period. This
                           nonsubstantive comment period will not
                           affect the effective date of the NPDES
                           regulations.

                           Overview of These Regulations  ~

                           /. Part 121—State Certification of
                           Activities Requiring a Federal License
                           or Permit

                            A. What Does This Part Do? Part 121
                           contains State certification procedures
                           and requirements applicable to all
                           Federal Licenses and permits other than
                           NPDES.
                            B. How Does This Part Relate to
                           Existing Regulations? The existing State
                           certification regulations predate the
                           Federal Water Pollution Control Act
                           Amendments of 1972 and have never
                           been updated. However, because of the
                           impact of State certification of non-
                           NPDES permits on a myriad of Federal
                           programs, it will be necessary to consult
                           with the affected agencies in some detail
                           before changes are made. State
                           certification of Federal licenses or
                          permits other than NPDES will continue
                          unchanged. This Part merely
                          redesignates the existing regulations,
                          formerly 40 CFR123, as Part 121. State
                          Certification of NPDES permits is
                          discussed in the overview of Part 124.
                            C. How Does This Part Relate to the
                          August 21,1978 Proposed Regulations?
                          The August 21,1978 proposal
                          inadvertently deleted existing State
                          certification regulations. Thft deletion
                          was noted in a comment from the public.
                          In response to the comment, this Part
                          has been retained.

                          //. Part 122—National Pollutant
                          Discharge Elimination System

                           A.  What Does This Part Do? Proposed
                          Part 122 establishes the basic "program
                          definition" of the NPDES, whether
                          administered by EPA or an approved
                          State. This Part covers the full range of
                          substantive program requirements,
                          spelling out in detail: who must apply
                          for a permit; how a permit is issued;
                          what terms, conditions, and schedules of
                          compliance must be incorporated into
                         permits; when and how monitoring and
                         reporting of permit compliance must be
                         performed; when permits may be
                         revised or reissued; and what special
                         requirements apply to certain types of
                         dischargers.
   B. How Does This Part Relate To
 Existing Regulations? The former
 regulations contain separate NPDES
 program requirements for approved
 States (40 CFR Part 124) and for EPA (40
 CFR Part 125). The majority of
 provisions under former Parts 124 and
 125 are duplicative. To eliminate this
 duplication, the NPDES program
 requirements applicable to both EPA
 and approved States have now been  -
 consolidated into one set of regulations
 in Part 122. The process for approval of
 a State program to administer the  -
 NPDES is in a separate Part (see Part
 123 below), which cross-references the
 applicable substantive requirements of
 Part 122.
   Part 122 regulations reflect significant
 developments which have occurred
 since the NPDES program began.
 Furthermore, provisions  of the former
 regulations have been reorganized and
 rewritten. New regulations have been
 included where the former regulations
 do not adequately address the
 requirements of the Act (i.e., where
 court decisions have altered aspects of
 the NPDES program, where EPA
 guidance for administration of the
 NPDES program was not previously
 incorporated into  regulations, and where
 experience in administering the program
 has highlighted gaps in effective
 implementation of the Act). Finally,
 certain revisions have been made to
 conform the NPDES program to
 provisions of the 1977 amendments to
 the Clean Water Act.
   C. How Does This Part Relate to the
 August 21,1978 Proposed Regulations?
 The following is a discussion of the
 significant comments received and the
 basis for revisions made to Part 122 of
 the proposed regulations. Minor
 editorial changes have been made in all
 sections.

 § 222.3  Definitions.

 Il22.3(f)  Definition of "best
 management practices ".

  Many commenters indicated
 confusion as to the relationship between
 best management practices mandated
 under section 304(e) of the Act and  best
 management practices which might be
 required under other authorities (e.g.,
 through section 401 State certification;
 pursuant to section 208(e) for water
 quality management plan requirements;
 where effluent limitations are
 inappropriate or infeasible to control
plant source discharges in accordance
with NRDC v. Costle  (Runoff Point
Sources) 568 F.2d 1369 (D.C. Cir. 1977)).
To clarify this point, it should be noted
that the definition of best management

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              Federal Register / Vol. 44,  No. Ill  /  Thursday, June 7, 1979 / Rules and Regulations      32857
 practices in paragraph (f), while adapted
 from section 304(e) language and
 legislative history, applies to uses of the
 term "under any or all authorities."
 Thus, the term has beemised to reflect
 section 304(e) as well as requirements
 imposed under section 402(a)(l) in
 accordance with the Runoff Point
 Sources decision in NRDC v. Costle.
   Several commenters also noted that
 the legislative history of section 304(e)
 specifically excludes actual plant
 process design and related operating
 decisions from the definition of best
 management practices. EPA agrees, and
 has revised the definition to include this
 limitation authority under section 304(e).
 § 122.3(k) (proposed %122.3(j))
 Definition of "discharge of a pollutant".
   Many commenters disagreed with one
 or more of the types of activities
 included within the definition of a
 "discharge  of a pollutant" in proposed
 paragraph (j). In response, the following
 revisions and clarifications have been
 incorporated into the final regulations.
   First, the regulations have been
 clarified to. indicate that a discharge to a
 pipe is not, in and of itself, a discharge
 of pollutants subject to the permit
 program. A discharge to  a pipe must
 ultimately reach navigable waters in
 order to fall within the purview of the
 NPDES requirements.
   Second, a number of comments
 questioned  the statutory authority for
 the requirement in the proposed
 § 122.3fj} that classified a discharge
 through a State or municipally owned
 treatment system as a direct discharge,
 if that treatment system was not
 designed and constructed to meet the
 "applicable requirements of section
 301(b) of the Act." These commenters
 argued that this provision placed an
 undue burden on industrial users of
 State/municipal treatment systems and
 that this method of control was beyond
 authority granted EPA by the Act
  EPA has changed this requirement in
 response to  these comments, although
 the Agency believes that the proposed
 regulations were within its authority.
 This provision hi revised § 122.3(k) now
 defines as a "discharge of a pollutant"
 only those discharges into pipes which
 do not lead to a treatment system, but
 rather into waters of the United States.
  On the other hand, a discharger
 discharging into a storm sewer or other
 publicly owned conveyance which does
 not lead to a publicly owned treatment
 works, but directly to navigable waters,
 is clearly subject to the permit
requirement. See United States v.
Granite State Packing Co., 343 F.  Supp.
57 (D.N.H.1972], aff'd., 470 F.2d 303  (1st
 Cir. 1972). The final regulations continue
 to reflect this requirement.
   Third, the provision in the proposed
 definition_of "discharge of pollutant,"
 which stated that discharges through
 State or municipal systems handling
 primarily industrial wastes be
 considered direct discharges has been
 deleted in response to comments. Many
 commenters considered the proposed
 approach to be unwieldly and
 inconsistent with the language of the
 Act regarding publicly owned treatment
 works (POTWs). This provision was
 intended to allow a more equitable
 control of compatible wastes
 (biochemical oxygen demand (BOD) and
 suspended solids (SS)} which are
 discharged into POTWs by industries
 (incompatible industrial wastes are
 controlled through the pretreatment
 regulations, 40 CFR Part 403). At
 present, POTWs are required by the Act
 to achieve,  at a minimum, the effluent
 quality attainable through the
 application of secondary treatment. The
 secondary treatment information
 regulation (40 CFR Part 133) controls
 concentration and percent removal of
 BOD and SS, pollutant parameters
 normally associated with domestic
 wastes. However, many POTWs receive
 and treat large amounts of industrial
 waste. The  secondary treatment
 information regulation does not
 completely  address compatible
 industrial waste; 40 CFR § 133.103(b)
 only allows an upward adjustment of
 the concentration limits where the
 effluent limitation guidelines, which
. would be applicable to the industry if it
 were a direct discharger, are less
 stringent than secondary treatment. 40
 CFR 133 does not allow for more
 stringent concentration limits where
 industrial effluent limitations guidelines
 are more stringent. Nor does the
 secondary treatment regulation allow
 for any adjustment of the 85% removal
 requirement The proposed provision
 would have allowed EPA to address
 these two areas and we continue to
 believe that it is supportable under the
 Act. However, we do agree with those
 commenters who said that such a
 provision would be very unwieldly and
 would make permit writing under these
 circumstances a very difficult task.
 Therefore, we have deleted this
provision  and intend to deal with these
 issues by revising the definition of
secondary treatment or alternatively,
covering these areas in a revision to the
definition of best practicable waste
treatment technology.
  Further, a number of commenters
objected to the provision which included
discharges through pipes, sewers or
 other conveyances owned by third
 parties other than a State or
 municipality as direct discharges. These
 commenters argued that such
 discharges, at a minimum, should be
 considered to be discharges through
 treatment systems. In addition, many
 commenters questioned the statutory
 authority and practicability of such a
 provision.
   EPA has revised this provision to
 indicate that discharges through"
 privately owned treatment systems are
 direct discharges. Moreover, EPA
 continues to believe that adequate
 authority exists for such a provision.
 This provision reflects EPA's
 interpretation of the Act in the Decision
 of the General Counsel No. 43
 (Friendwood Development Company).
 Nevertheless, EPA does not intend for
 this requirement to result in many
 permits for a single discharge point. To
 avoid-the administrative problems
 caused by  multiple permits, EPA
 recommends the issuance of a single
 permit to all users as well as the control
 or treatment facility, with all parties
 listed as permittees and with joint and
 several liability for obligations under the
 permit.
   Finally, a number of commenters
 argued that the inclusion of surface
 runoff channelized into point sources in
 the proposed definition of "discharge of
 a pollutant" was overreaching in light of
 the statutory exclusion of irrigation
 return flows. Many commenters also
 argued that the definition was confusing
 when read in conjunction with proposed
 § 122.4 (Exclusions), § 122.45 (Separate
 storm sewers), and § 122.46
 (Silvicultural activities). This definition
 has not been changed. The concerns of
 the commenters have been addressed
 through revisions to § 122.4, § 122.45,
 and § 122.46. For further details see
 discussion on these sections later in this
 preamble.

 § 122.3(1) (proposed § 122.3(K))
 Definition of "discharge monitoring
 report".

   A number of comments were received
 on the proposed definition of "discharge
 monitoring report." Some argued that
 the definition should allow more
 flexibility to States in development of a
 form for reporting of self-monitoring
 results by permittees. Other commenters
 argued that EPA standard national
 forms for Discharge Monitoring Reports
 should be used both by EPA and by
 approved States. EPA was persuaded by
 the latter arguments and has changed
 the definition to require the use of
standard national forms by both EPA
and approved NPDES States. This will

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  32858      Federal Register / Vol. 44. No. Ill / Thursday. June 7.  1979 / Rules and Regulations
  facilitate the use of computer systems
  designed to directly read and analyze
  the reported information. It will also
  increase the ability of all program -
  offices within EPA to share such
  information. EPA will provide the States
  with preprinted standard forms (States
  may substitute their name, logo, etc. on
  these forms) and will also provide
  necessary computer software.

  § 122.3(1) (Proposed § 122.3(s))
  Definition of "navigable waters".
    The definition of "navigable waters"
  has been slightly revised to clarify its
  intent and scope, but the basic thrust
  and coverage remain the same as in the
  proposed rules.
    Some commenters suggested that EPA
  exclude certain types of impoundments
  of navigable waters from the definition,
  such as holding ponds, cooling ponds,
  and closed cycle lagoons. Under some
  circumstances, it is appropriate to
  impound navigable streams in order to
  create a cooling pond or lake. EPA does
  not mean to prohibit this practice and
  applicable regulations specifically
  recognize this use and specify where it
  is allowable to comply with technology-
  based regulations.  For example, in 40
  CFR § 423.11 (m) and (n), the terms
  "cooling pond" and "cooling lake" are
  distinguished. A "cooling pond" may
  under some circumstances be navigable
  waters, but usually is not. A "cooling
  lake" is always a navigable water. Yet
  in either case affluent guidelines
  explicitly recognize some circumstances
  in which it is appropriate to use such
  impoundments for treatment. (Compare
 40 CFR § 423.13(1){3) with 40 CFR
  § 423.15(1)(2)). These are exceptional
 cases, however. In general, the Act's
 requirements must  be met at the point of
 discharge into navigable waters.
   Some commenters suggested that
 waste treatment systems be excluded
 from the definition of navigable waters.
 EPA disagrees with this comment where
 cooling ponds are involved. Such ponds
 are frequently extremely large in size
 and some harbor fish populations which
 invite recreational uses. If such ponds
 are opened for recreational use,
 recreational users of the previously non-
 navigable waters could be exposed to
 potentially harmful  effects where, for'
 example, fish are contaminated and
 consumed by such users. EPA believes
 this use should remain subject to control
 under the Act's regulatory provisions,
 and that such broad jurisdiction is
 consistent with the thrust of the Act and
 its legislative history.
  Use by industries  in interstate
commerce.  Some controversy has
centered around the question of what
  waters are defined as "waters of the
  United States" because of use by
  industries in interstate commerce for .
  industrial purposes. The Decision of the
  General Counsel No. 73 concluded that
  the definition in the previous regulations
  required actual use by an industrial user
  downstream from the discharger. Since
  there were no users downstream-from
  the discharging industry, the stream in
  question was found not to be waters of
  the United States. The opinion explicitly
  stated, however, that it was based upon
  the regulations, not the Act, and left
  open the question whether EPA was free
  to adopt a broader definition tied to the
  susceptibility of the stream of use by
  industries in interstate commerce:
   These regulations are intended to
  broaden the definition of waters of the
  United States in the manner suggested
  by Decision No. 73. Waters will be
  considered to be'waters of the United
  States not only if they are actually used,
  but also if they may be susceptible to
  use, for industrial purposes by industries
  hi interstate commerce. Thus the
  regulations now focus, not on the nature
  of the stream's users, but on the
  characteristics of the stream itself, and
  it will no longer be necessary to  show
  actual industrial use for a stream to fall
  within the definition.
   On the other hand, except for cooling
 ponds which meet the criteria for
  "waters of the United States" (such as,
 for example, those which are used for
 fishing or other recreational purposes by
 interstate travelers), EPA agrees with a
 frequently encountered comment that
 waste treatment lagoons or other waste
 treatment systems should not be
 considered waters of the United States.
 Accordingly, the definition has been
 revised to exclude such treatment
 systems.
   Moreover, if any portion of a stream is
 used or susceptible to_use by industries
 hi commerce, the entire stream is waters
 of the United States. As an example,
 assume that three industries in
 interstate commerce (A, B and C), lie
 along a stream which flows into a small
 lake contained entirely on the property
 of Industry C, and from which there is
 no outflow. Industries A and B are
 upstream of Industry C. All three  use the
 stream for industrial purposes and
 discharge effluent into the stream. The
 stream is waters of the United States
 because it is used by industries in
 interstate commerce. All three industries
 require NPDES permits, including
 Industry C, even though there is no user
 downstream from Industry C. The
 question of actual or potential use
downstream from the discharger
(Industry C) is not relevant to the
  determination, since the character of the
  stream as a whole is clearly such as to
  be susceptible to use by an industry hi
  interstate commerce.
  § § 122.3 (u) and fv) (proposed § 122.3ft))
  Definition of "new sources and new
  dischargers".

    Some commenters objected to the
  definition of new source in the proposed
  regulations, particularly the 120-day
  limit hi paragraph  (t)(l)(ii) for the
__ promulgation of proposed standards.
  These commenters pointed out that the
  120-day limit for promulgation of
  standards was not part of the statutory
  definition of new sources hi section 306
  of the Act and so went beyond proper
  EPA authority. EPA believes that the
  definition of new source in section 306
  of the Act must be read in the context of
  section 306 hi its entirety. Section
  306(b)(l)(B) contemplates the
  promulgation of new source
  performance standards within 120 days
  of proposal. See Decision of the General
  Counsel No. 71. Read together with the
  definition to section 306(a)(2), this
  section supports the language of both
  the proposed and final regulation.
  Further, there is also an overriding
  policy in support of the 120-day
  limitation; since construction of a source
  to meet new source performance
  standards can only proceed hi a
 meaningful way if final standards are
 available, any inequities which may
 result from EPA failure to promulgate
 standards within 120 days of proposal
 are resolved by the language of section
 306(d). A source which falls outside the
 new source definition but is a new
 discharger and commences construction
 after October 18,1972, may gain the
 benefit of the new source protection
 period by satisfying the requirements of
 section 306{d). See  preamble discussion
 of § 122.47(d).
   A number of commenters objected to
 the use of the definition of "new
 discharger" to proposed § 122.3{t)(2)
 (now § 122.3(v)). They argued the
 definition would automatically require a
 new permit when a discharger ceased
 operation during the term of the permit.
 They also suggested the definition could
 be read to impose new source
 performance standards on a discharger
 which recommences operation after
 terminating a discharge. EPA has
 revised the definition of "new
 discharger" in response .to these
 comments. The term now applies only to
 a genuinely new source of discharge but
 which is not a "new source" as defined
 in section 306 of the Act because
 applicable performance standards have
 not been issued. The final regulations

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               Federal Register / Vol. 44, No. Ill  / Thursday, June 7. 1979  /  Rules and Regulations       32859
  continue to require that new dischargers
  meet applicable standards and
  limitations upon commencement of
  discharge, and identify most of these
  sources as eligible under section 306{d)
  of the Act and § 122.47(d) for the ten
  year protection from more stringent
  standards of performance.
    EPA does not intend to require a new
  permit automatically/when a discharge
 , ceases. Many permits cover facilities
  which in the normal Bourse of their
  operations cease and recommence
  discharge. Their permits do not lapse
  when they cease discharging. However,
  the proposed rules were intended to
  require a source which shuts down
  (including those which do so in order to
  escape a statutory deadline or other
  requirement) to meet all applicable
  standards and limitations upon
  recommencement of discharge. This
  requirement is now contained in
  § 122.17(c)(3).
    Definitions of Application, Discharge
  Monitoring Report, New Source/
  Environmental Questionnaire and
  Permit. Proposed § 122.3 referenced
  Appendices  A, B, C and D which were to
  contain copies of the application form,
...permit format, new source/
  environmental questionnaire arid
  discharge monitoring reports,
  respectively. These Appendices have
  been deleted from the final regulations
  pending completion of these forms. They
  will be published at a later date.
    A new Appendix A has been added
  which is a redesignation and redivision
-  of the industrial categories appendix
  contained in former regulations
  promulgated on May 23,1978 and
  December 11,1978 (see Table I of this,
•  preamble). The Appendix has been
  revised to conform to the modified
  settlement agreement approved by the
  District Court and issued on March 9,
  1979, in NRDC v. Costle (which modifies
>  the NRDC v. Train 8 ERG 2120 (D.D.C.
 1976), settlement agreement of June 8,
 1976). Additional time after the issuance
 date for effluent limitations guidelines
 under the consent decree has been
 added to allow for processing of
 permits. This Appendix will be updated
 from time to time if further modifications
 are made.
   New Definitions. In response to
 comments requesting definitions for
 additional terms, EPA has  included
 several new definitions in  the final
 regulations.
   A definition of "publicly owned
 treatment works" ("POTWs")
 (i 122.3(bb)J has been added which is
 consistent with the definition of POTW
 found in other EPA regulations, e.g., 40
 CFR § 403.3(m).
   A definition of "Direct discharge"
 (§ 122.3(h)) has been added which states
 that this term means the discharge of
 pollutants.
   The term "Director" (| 122.3(i)) has
 been changed to include both the
 Regional Administrator and the State
 Director, as appropriate. Generally, the
 use of the  term Director means that the
 regulation is applicable to both EPA and
 approved States. The terms "Regional
 Administrator" (§ 122.3(cc)J,
 "Enforcement Division Director"
 (§ 122.3(n}) and "State Director
 (§ 122.3(ii)) are now used only where the
 regulation addresses an action that is
 unique to one of those people. This
 change in  the use of the term "Director"
 necessitated the addition of a new term,
 "State Director" which is the same
 definition  as was found for "Director" in
 proposed § 122.3(h).
   A definition of "process waste water"
 (§ 122.3(aa)) has been added which
 restates the definition found in 40 CFR
 § 401.11(q).

 § 122.4 Exclusions^
   Some commenters thought proposed
 § 122.4(a)(l) over-stepped EPA's
 statutory authority to control vessels
 when "operating in a capacity other
 than a vessel." Commenters felt that the
 language in section 502(12)(B) of the Act
 which defines "discharge of a pollutant"
 as "any addition of any pollutant to the
 waters of the contiguous zone or the
 ocean from any point source other than
 a vessel or other floating craft,"
 (emphasis added) precluded regulating
 mining vessels as point sources. The Act
 does not define "vessels or other
 floating craft", but it appears that those
 terms refer to transportation vessels.
 The legislative history of the Federal
 Water Pollution Control Act
 Amendments of 1972 (FWPCA) and the
 Marine Protection Research and
 Sanctuaries Act (MPRSA) of the same
 year, indicated that all ocean discharges
 within the  jurisdiction of the United
 States were to be regulated by EPA
 under one Act or the other. As the
 Senate Public Works Committee noted
 on the FWPCA:
  Coupled with the provisions in the bill
 reported by  the Committee on Public Works,
 the bill to be reported from the Commerce
 Committee [i.e., the MPRSA] should enable
 the United States to have complete and
 integrated regulation of the disposal of
 pollutants into all waters and over all
 sources of pollutants subject to its
jurisdiction (emphasis added). See A  "  "
 Legislative History of the Water Pollution
 Control Act Amendments of 1972, Senate
 Committee on Public Works, 93d Cong.. 1st
 sess. (1973) at 1492 (hereafter FWPCA Legis.
 Hist).
   Hence, if the commenters are right,
 the MPRSA or Ocean Dumping Act
 would require permits for temporarily
 fixed drilling vessels, ocean mining
 dredge ships or processing vessels.
   We believe the greater weight of
 authority points to the fact that similar
 structures should be treated similarly,
 i.e., an oil platform at sea and an oil
 platform that is temporarily anchored to
 the bottom of the sea should have to
 meet the same requirements under the
 same Act. Similarly a deepsea mining
 processing ship should have the same
 requirements as an onshore processing
 plant discharging into the ocean. It
 appears the exception in section
 502(12)(B) was intended solely to
 exclude redundant authority over ocean
 dumping under NPDES and the Ocean
 Dumping Act.
   The Clean Water Act clearly is better
 designed to regulate routine industrial
 discharges. The industry-by-industry
 approach required for effluent limitation
 guidelines under the Act is more attuned
 to handling discharges from these two
 industries than the Ocean Dumping Act
 since the Ocean Dumping Act requires
 extensive, studies aimed at finding
 alternatives to ocean discharges.
   Regular sewage discharges from
 vessels are still regulated by the Coast
 Guard under section 312 of the Act.
 Paragraph 122.4(a)(l) is aimed at
 industrial processes  that occur at sea.
   Many commenters objected to the
 comment after § 122.4(a)(2) in the
 proposed regulations regarding the
 relationship of section 402 and 404
 permits, which incorporated the
 "primary purpose" test presently .stated
 in Corps of Engineers regulations for
 section 404 permits, 33 CFR § 323.2(m).
 These commenters objected to the
 vagueness of the comment and to the
 implication that both a section 402 and a
 section 404 permit could be required for
 the same activity. This comment has
 been deleted because the Agency is
 currently reviewing its position on the
 overlap between section 402 and 404
 permits. Part of this Agency review
 involves a draft policy document
 concerning the applicability of the
 NPDES program to the disposal of solid
 waste in waters of the United States.
 Since Agency policy  was not resolved at
 the time of publication of these final
 regulations, no resolution or further
 clarification is now appropriate.
   Many commenters objected to the
 restriction contained in § 122.4(a)(3) of
 the proposed regulations that limited
 that exclusion to indirect  dischargers  as
 denned in § 122.3(o) of the proposed
regulations. Although § 122.4{a)(3) has
been retained without change, these

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  32S60       Federal Register  /  Vol. 44,  No. Ill  /  Thursday, June 7, 1979 / Rules and Regulations
  comments have been reviewed in
  conjunction with comments submitted
  on proposed § 122.3{j) (definition of
  "discharge of pollutant"). For further
  details, see preamble discussion on
  proposed § 122.3(j).
    Many commenters objected to the
  comment after § 122.4(a)(4), pertaining
  to the exclusion of irrigation return
  flows, as being beyond EPA authority.
  Comments under this section were
  considered in conjunction with those
  received under proposed § 122.3(j)
  (discharge of pollutant), § 122.45
  (separate storm sewers), and § 122.46
  (silvicultural activities). The comment
  has been deleted and changes have
  been made in § 122.48 which address
  many of the concerns raised by
  commenters.

  § 122.5  Signatories.

    Many commenters objected to the
  proposed revision of § 122.5, which
  required that ail permit program forms
  be signed bya principal executive
  officer of a level of at least vice
  president for a corporation, or by an
  equivalent level official for partnerships
  or for public facilities. This section has
  been changed to require that only permit
  applications must be signed by a
  principal executive officer or equivalent
  official. Other permit program forms
  may be signed by a duly authorized
  representative of the appropriate official
  so long as the authorized representative
  is responsible for the overall operation
  of the discharging facility, and the
  authorization is made in writing.
  Further, the signatory may rely on the
  representations of the person
  immediately responsible for obtaining
  the information in the document when
 certifying to its accuracy, etc. This
 change will ease the paperwork burden
 upon the regulated community, while at
 the same time providing an equal degree
 of legal accountability on the part of the
 principal executive officer or equivalent
 level official. By authorizing a
 representative to sign other permit
 program forms, the responsible official
 does not lose legal accountability for the
 accuracy of the information that is
 submitted.

 § 122.10 Application for a permit.

  A number of commenters were
 concerned about the intent of proposed
 § 122.10{b) regarding enforcement
 against persons currently discharging
 without a permit who have applied for,
 but have not yet received, an NPDES
 permit. In response, EPA has deleted
 this section. However, EPA wishes to
 clarify its enforcement policy with
regard to existing dischargers who have
  submitted timely and sufficient
  applications for an initial NPDES permit,
  and have otherwise proceeded in good
  faith, but have not yet received a permit
  through no fault of their own. In those
  cases, these dischargers will not be
  subject to enforcement action by EPA
  for discharging without a permit.
   EPA has also placed the requirements
  of proposed § 124.11(b) and (c) into
  § 122.10 so that all the requirements
  relating to permit application will be
  contained in one section.
   Many commenters objected to the
  requirement in proposed § 124.11(b)(3)
  and (c) for submitting applications 180
  days before the present permit expired
  (180 days before the discharge) when
  there is no concomitant requirement on
  the issuing authority to issue a permit in
  a resonable time. Because of the
  significant resource restraints on States
  and EPA, it may not be possible to issue
  permits to all applicants, especially
  minor dischargers, in a set time period.
  Although the  statute requires a permit
  for a lawful discharge of pollutants, the
  fact a discharger is without a permit due
  to the lack of action by the issuing
  authority will weigh heavily against the
  instituting of enforcement actions.

  § 122.12 Duration and transferability.
   Some commenters suggested that the
 five year limit for permit terms be
 extended to ten years for new sources.
 While new sources and certain new
 dischargers may qualify for a
 "protection period" from any more
 stringent standards of performance
 under section 306(d) of the Act, the five
 year permit term is an express statutory
 requirement and cannot be altered
 through these regulations. However,
 permits may be continued under the
 Administrative Procedure  Act (APA)
 where the applicant has submitted a
 timely application for renewal and EPA
 has been unable to process the
 application. See § 122.12(b).
   Several comments were also received
 on proposed § 122.12(c)  (now
 § 122.12(d)), which established
 requirements for transfer of permits.
 Many of these comments objected to the
 required approval by the permitting
 authority prior to transfer,  arguing (1)
 restraint of trade and (2) increase of
 paperwork. EPA does not agree with the
 first argument but does agree with the
 second. Accordingly, paragraph (d) has
 been revised to make transfer approval
 automatic within 30 days unless action
is taken by the Director. The Director's
option to require a new application for
permit reissuance or modification, as
well as the requirement for a written
agreement between the transferor and
 transferee specifying transfer of liability
 has been retained.
   A new section, § 122.12(c) has. been
 added which substantially incorporates -
 the requirements of former § 124.46
 (Compliance with 1984 Treatment
 Deadlines for Discharges of Toxic
 Pollutants 43 FR 58066). Some of the
 requirements originally in former
 § 124.46, (e.g., the permit must
 incorporate "[ajny other terms and
 conditions necessary to carry out the
 provisions of the Act") have not been
 repeated in new § 124.12(c) because
 they are elsewhere in Part 122.
   EPA has moved proposed § 122.33 to
 § 122.12(b) because "extension of
 expiring permits" is more logically dealt
 with in this section on permit duration.
 In porposed § 122.33, EPA indicated that
 expiring permits could be "extended"
 under 5 U.S.C. section 558{c)  (section
 9(c) of the APA. For clarity EPA has
 substituted the terms "continuation" or
 "continued" for "extension" or
 "extended," since the APA does not use
 the  terms "extension" or extended."
   Proposed § 122.33fa)—MaGy
 commenters objected to the restrictions
 in proposed § 122J33(a) for automatic
 continuations, arguing that the only
 restriction provided by the APA for
 automatic continuation is "timely and
 sufficient application for a renewal."
 Some commenters suggested deletion of
 the requirement that the delay in permit
 issuance not be caused by actions of the
 permittee (proposed § 122.33(a}(2}).
 Other commenters suggested revising
 the requirement to provide  that requests
 for evidentiary hearings do not
 constitute a delay caused by the
 permittee.
   In response to these comments, EPA
 has  deleted proposed § 122.33(a){2) from
 the final regulations, but believes that
 delays caused by the permittee may in
 some cases render a permit application
 "untimely." Proposed § 122.33(a)(3) (now
 § 122.12(b)(l)(ii)) restricts permit
 continuation to instances where the
 Regional Administrator is unable to
 issue a new permit before the expiration
 date of the old permit. This  provision
 has been retained but it is intended only
 to implement the requirement of section
 558(c) that there be no final Agency
 determination on an application, and not
 to restrict the applicability of section
 558(c).
  § 122.33(c}—Proposed § 122.33(c)(2)
 (now § 122.12(b)(3)) indicated that a
permit continuation could be denied by
the Enforcement Division Director when
the permittee was not in compliance
with the expiring permit. Many
commenters contended that such a
denial is  not authorized by the APA.     •,

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              Federal Register / Vol. 44. No. Ill  / Thursday. June 7. 1979 / Rules and Regulations      32861
  EPA agrees and has redrafted
  5 122.12(b)(3)(iii) accordingly. However,
  if the Regional Administrator makes a
  final determination to deny an
  application for permit reissuance,
  section 558(c) is by its terms no longer
  applicable, and the discharger is subject
  to enforcement action for discharging
  without a permit.      J
   Several commenters questioned the
  applicability of this section to permits
  issues by EPA in NPDES States before
  the State program was approved. In
  response to this question, § 122.12(b](4)
  clarifies that although § 122.12(b) does
  not apply where EPA originally issued
  the permit but an NPDES State is now
  the permit issuing authority, States may
  continue the State-issued permit if so
  authorized under State law.

  § 122.13 Prohibitions.
   § 122.13(b}—Several commenters
  expressed  concern over the role of State
  certification in the permit issuance
  process. This issue is addressed more
  directly in  the preamble discussion of
  Part 124, Subpart C.
   § 122.13(c)—See the preamble
  discussion to § 123.23 for a discussion of
  EPA's authority to object to the issuance
  of State-issued permits under section
  402(d)oftheAct.   -
   § 122.13(i}—In response to a number
  of comments, § 122.13(i) has been
  modified. This section has been changed
  to clarify that only a new source or a  .
  new discharger into a water quality
  segment (as defined in 40 CFR
  § 130.20(o)(l)) must demonstrate that
  there are sufficient pollutant load
'allocations to allow the discharge and
  that the facility is entitled to these
  allocations. The proposal applied to all
  new sources or new dischargers,
  including those to an effluent limitation
  segment (as defined in 40 CFR
  § 130.20(a)(2)). However, upon review of
  the comments, the Agency determined
 that the requirement was appropriate
 only in water quality segments.

  § 122.14  Conditions applicable to all
permits.

   5 122.14(aJ—This section in the
proposed regulations  (the permit as a
limited authorization  to-discharge)
received the greatest number of
comments. Many of these comments
pointed out the difficulty of analyzing
the effect of paragraph (a) without the
benefit of reviewing the application form
-to which it is tied. The Agency agrees
with these comments. As a result the
substantive requirements of paragraph
{a} are reserved in these Final
regulations and will be reproposed,
together with publication of a draft
 application form, in the summer of 1979.
 In conjunction with the application form
 revision, the Agency is also examining
 the overall permit scheme, including use
 of the application data, monitoring
 requirements, enforcement, the
 relationship of the application to section
 311 and other such considerations.
   Although paragraph (a) is withdrawn
 and reserved for reproposal, a comment
 has been inserted in its place to
 reemphasize the Agency's commitment
 to moving towards the national goal of
 the elimination of the discharge of
 pollutants as stated by section 101(a)(l)
 of the Act. It is no longer acceptable for
 a discharger to. disclaim responsibility
 for being aware of the impact of its
 discharges upon human health and upon
 the environment. The Agency, therefore,
 expects each applicant to discharge
 pollutants only in accordance with its
 application and permit.
   Many comments on this paragraph
 discussed the difficulty of its
 implementation. In its ongoing
 development of  a new application form,
 the Agency is addressing many of the
 major concerns  expressed, and
 commenters will have an opportunity to
 raise these issues when the Agency
 proposes its revised approach this
 summer.
   § 122.14(b)—The language of
 § 122.14{bj has been shortened to
 eliminate superfluous language. The
 substance remains unchanged.
   § 122.14(d)—Several commenters
 argued that permits should only be
 modified to incorporate section 307(a).
 standards or prohibitions where the
 pollutant has been found to be injurious
 to health. However, the Agency is not -
 empowered to ignore the criteria of
 section 307(a), which include toxicity,
 persistence, degradability, and the effect
 on organisms in  waters. When a
 standard is promulgated under section
 307(a) to establish these criteria, it
 should be incorporated into the permit
 However, where a standard under
 section 307(a)  controls a pollutant
 identified as injurious to health, it is
 effective and enforceable whether or not
 incorporated into permits and must be
 complied with by the time set forth in
 the promulgated standard.
   Many commenters were qoncemed
 that modification proceedings to  .
 conform the permit to a toxic effluent
 standard or prohibition might also open
 other permit conditions to modification.
 Such a result is contrary to this
paragraph's express language. Other
 terms and conditions may be modified
only in accordance with § 122.31.
  The comment to § 122.14(d) has been
expanded to indicate that when-the new
 NPDES application form becomes
 available, this paragraph will be
 reproposed to require submission of a
 new application or partial application as
 part of the modification proceedings of
 this paragraph.
   § 122. J4fe>—Many commenters
 objected to the requirement that
 permittees notify the Director of process
 changes or other modifications which do
 not result in permit violations. In
 response, this paragraph has been
 revised to require only notification of
 activities which would constitute cause
 for permit modification or revocation
 and reissuance. This requirement as
 revised, is necessary because process or
 other changes may result in significant
 discharges of pollutants which are not
 limited by the permit. Upon receipt of
 notification under this paragraph, the
 Director can require further information
 on a new application which may either
 justify permit modification or indicate
 that no modification is necessary.
   Several other commenters expressed
 concern that this paragraph would
 require daily notifications as a result of
 variability in their discharges. As noted
 in the above discussion, this paragraph
 has been revised and should, therefore,
 minimize any potential problems
 presented by waste stream variability.
   § 122,14{f}—In response to comments.
 § 122.14(f)  has been revised. As revised,
 EPA believes this provision is consistent
 with the Supreme Court's decision in
 Marshal] v. Barlow's Inc., 436 U.S. 307,
 (1978).
   § 122.14(g}—Several commenters
 expressed  doubts whether EPA is legally
 authorized to require proper operation
 and maintenance of facilities and
 systems, including requirements such as
 effective management of treatment
 facilities and adequate staffing and
 training. Such requirements are clearly
 authorized by section 402(a)(2) of the
 Act, which requires the Administrator to
 prescribe conditions in permits which
 will assure compliance with the
 requirements of section 402(a)(l).
   § 122.14(h}—A number of commenters
 questioned the need to report "minor"
 noncompliance under § 122.14(h) within
 24 hours of becoming aware of the
 noncompliance. They felt that the
 Discharge Monitoring Reports (DMR)
 under § 122.22 provide a sufficiently
 prompt method of notification. EPA
 agrees that in instances of "minor"
 noncompliance the DMR does provide a
 sufficiently prompt method of
 notification and has revised
 § 122.14(h)(2)(iiiJ to reflect this. In
 response to comments, we have also
 revised § 122.14(h)(2)(i) to require 24
hour reporting only for violations of

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  32862
Federal Register  /Vol.  44. No. Ill / Thursday, June 7, 1979 / Rules and Regulations
  discharges containing the toxic
  pollutants limited by toxic pollutant
  effluent standards under section 307(a)
  (e.g., Aldrin/dieldrin, Endrin,
  Toxaphene, Benzidene, Polychlorinated
  Biphenyls and DDT/DDD and DDE). In
  addition a new § 122.14[h](2)(ii) has
  been added which gives the Director the
  discretion to require 24-hour and/or
  five-day reporting in a permit for other
  noncomplying discharges which may
  pose health problems (e.g., section 311
  substances). The purpose of such
  prompt reporting is to enable the
  permitting authority to use the
  information to make a case-specific
  determination of the severity of the
  violation, its possible environmental
  effects and mitigation possibilities.
    The majority of the commenters were
  concerned with the difficulty in
  providing the required noncompliance
  information within 24 hours. Several
  commenters stated that the
  determination of corrective measures
  may in some cases take longer  than 24
  hours to develop. As stated earlier, this
  24-hour requirement is now mandatory
  for only certain instances of
  noncompliance. While EPA expects
  these dischargers to formulate a plan of
  action for correcting the situation within
  24 hours of a violation, such plan may
  indicate various options for corrective
  action. It is necessary, however, that the
  best possible information, including
  notice of the noncompliance,  be
  provided to the permitting authority
  within 24 hours of the time that the
  permittee was aware of the
  noncompliance so as to enable any
  action necessary to prevent a crisis,
  such as contamination of a downstream
  drinking supply.
   Many commenters requested  that the
 term "becoming aware" be more
 precisely defined. This language has not
 been changed because it was  intended
 to cover "awareness" based on  any or
 all sources of information such as
 analysis, measurement or observation.
  Some commenters felt that the five-
 day requirement for submission for
 written information might not be long
 enough if a corporate vice president
 must sign a letter, under the
 requirements of § 122.5. This situation
 has been addressed in changes to
 § 122.5, which now allows for  the
 delegation of such responsibilities and
 through changes to §  122.14(h)(iii)
 discussed earlier.
  § I22.14(i)—'nie language of §  122.14(i)
has been shortened to eliminate
superfluous language but the substance
remains unchanged.
  Proposed § 122.14(j}—The substance
of this section has been moved to Part
                          125, Subpart A. The requirement that
                          permits to POTWs include sewage
                          sludge disposal conditions under section
                          405 has been moved to § 122.15(h). Many
                          commenters objected to the prohibition
                          against discharge of solids, sludges,
                          filter backwash or pollutants removed hi
                          the course of treatment or control of
                          wastewaters. However, to allow
                          discharge of substances which have
                          been removed by treatment systems
                          would result in circumvention of the
                          Act's requirements for limiting discharge
                          of those substances which can be
                          removed by the treatment
                            § 122.14(j)—Some commenters argued
                          that halting or reducing production as
                          required in proposed § 122.14[k) (now
                          § 122.140)) may cause greater
                          environmental harm than continuation
                          of production. The Agency believes that
                          the pollution problems which may occur
                          as a result of shutdown and startup will
                          generally be less severe than those
                          characteristic of situations of continual
                          noncompliance. Rather than require the
                          Director to decide immediately in each
                          case whether the environmental harm
                          caused by shutdown or reduction might
                          be greater than that caused by continual
                          noncompliance, the requirements of this
                          subsection have been retained. It should
                          also be noted that paragraph (j) is not as
                          harsh as some commenters have
                          indicated, since it is modified somewhat
                          by the upset and bypass provisions.
                            § 122.14(k)—In response to comments,
                          the bypass provision (proposed
                          § 122.14(1)) has been redrafted for
                          clarity. Many commenters stated that
                          the bypass notification requirements
                          were impractical and internally
                          inconsistent. The provision has been
                          modified to require permittees to submit
                          notice within 24 hours  of becoming
                          aware of the bypass in those
                          circumstances where the necessity for a
                          bypass cannot be anticipated. Where
                          the need for a bypass is known in
                          advance, the permittee must now submit
                          a request for approval at least 10 days
                         before the anticipated event.
                           Several commenters  stated that it was
                         inappropriate for the Agency to limit
                         bypasses to situations where there is a
                         risk of "serious" injury. This provision
                         has been modified to apply where there
                         is a risk of "personal" injury.
                          Commenters objected to the statement
                         that treatment facilities should generally
                         be  constructed with redundant or
                         backup equipment This comment was
                         merely intended to note that proper
                         engineering practices often involve the
                         use of redundant or backup systems for
                         equipment such as pumps or power
                         supplies. Such practice can eliminate
                         any noncompliance during periods of
 equipment malfunction or maintenance.
 This comment has been modified to
 clarify that the pemitting authority will
 take into account whether the bypass
 involved regular preventive
 maintenance for which backup
 equipment should have been available.
   Several commenters stated that
 bypasses should be authorized during
 periods of preventive or corrective
 maintenance. However, in most cases
 waste treatment facilities should be
 designed with redundant equipment and
 with sufficient storage capacity such
 that bypassing is not necessary during
 periods of maintenance. The bypass
 provision is intended to provide relief
 from permit limitations during unusual
 circumstances; it is not intended to
 allow limitations to be routinely
 exceeded.                      .     ".
   Some commenters objected to the    -
 requirement that the public be afforded
 an opportunity to comment on requests  ,
 for bypasses. However, the Agency
 believes that the critical review offered
 by the public is a useful element of the  ;
 system.      .                      ;-
   Many commenters argued that       :
 economic loss caused by delays in
 production should be included in the
 definition of severe property damage.
 After serious consideration, the Agency
 has rejected this position. Except in
 limited cases, the Clean Water Act does
 not authorize noncompliance with
 effluent limitations because of the cost
 to an individual facility. Where effluent
 limitations, which include consideration
 of the cost of operation of waste
 treatment facilities, have been properly
 established, a source must either comply
 or close. Nonetheless, this section
 provides for the  authorization of
 intentional bypass where failure to
 bypass would result in severe property
 damage. In most cases this damage
 would be to the treatment facility itself;
 thus, failure to allow bypass would
 jeopardize future adequate treatment In
 the oil and gas production industry,
 severe property damage includes
 permanent loss of oil which might result
 if a well were to be shut in. For electric
 generating facilities, curtailing
 production might risk substantial
 property loss to users of the electricity.
 In all of these cases consideration
 beyond the economic loss to the
 permittee warrant a bypass.
  Further, although permittees may be
 required to limit production rather than
 exceed limitations, this risk can be
 minimized by the prudent use of back-up
 equipment and the capacity to store
untreated wasies during periods of
maintenance. The Agency will consider

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              Federal Register / Vol. 44, No. Ill /  Thursday,  June 7, 1979 / Rules and Regulations
                                                                       32863
 the reasons for noncompliance in
 exercising its discretion to enforce. •
    § 122.14(1}—In response to comments,
 the upset provision (proposed
 § 122.14(m)) has been redrafted for
 clarity. Many commenters also noted
 that proposed subparagraph (m)(2)
 provided only that an upset "may"
 constitute an affirmative,' defense.
 However, it is the Agency's intention
 that a defense of upset is available if the
 applicable conditions are satisfied The
 provision has been amended to reflect
 this.
   The comment following this section
 relating to judicial review of Agency
 determinations was confusing to several
 commenters. In response to these
 concerns, the comment has been revised
 to indicate that the initial Agency
 determination on a claim of upset
 constitutes an exercise of prosecutorial
 discretion, not final Agency action
 subject to judicial review. Since upset is
 an affirmative defense, the permittee's
 opportunity for review of a claim of
 upset will be hi the context of any
 enforcement action for noncompliance.
   Many commenters stated that an
 upset should not be treated as a permit
 violation in the first place and that it
 was improper to require permittees to
 prove an upset as an affirmative defense
 in a court action. Commenters relied on
 Marathon Oil Co. v. EPA, 564 F^d 1253
 (9th C3r. 1977) in support of this position.
   The Agency believes that this upset
 provision is fully consistent with all
 legal opinions dealing with this issue.
 Most Courts have concluded that no
 upset provisions need be provided. In
 Weyerhouser Co. v. Costle, 590 F.2d
 1011.1056-58 (D.D. Cir. 1978] and Com
 Refiners Ass'n v. Costle, (No. 78-1089,
 8th Cir. April 2,1979) the District of
 Columbia and the Eighth Circuits
 recently held that EPA's exercise of its
 enforcement discretion would
 adequately deal with any possible
 problem. See also United States Steel v.
 Train, 556 F.2d 822, 842, n.3 (7th Cir.
 1977); American Petroleum Institute v.
 EPA, 540 F. 2d 1023,1035-36 (10th Cir.
 1976). Although the Agency will
 continue to exercise its enforcement
 discretion, EPA believes that all parties
 will benefit from allowing permittees an
 opportunity to present their claims in a
 formal judicial proceeding. This
 provision also meets the requirements
 set put in those decisions which
 required some form of upset relief. See
Marathon, Oil Co. v. EPA, supra; FMC
 Corp. v. Train, 539 F.2d 973,986 (4th Cir.
 1976). In Marathon, the Court of Appeals
for the Ninth Circuit clearly indicated
that the burden of proof and the
obligation to provide relevant evidence
 establishing that the noncompliance
 could not have been prevented could be
 placed on the permittee. The
 requirement that an upset be established
 as an affirmative defense is-an efficient
 and effective method of implementing
 this obligation. The only alternative
 approach would be to require an
 administrative determination with
 respect to upsets. However, Congress
 has indicated, in reference to section
 309(a)(5)(B) of the Act, that enforcement
 actions should not be bogged down in
 administrative determinations or
 showing of fault. See A Legislative
 History of the Clean Water Act of 1977,
 Senate Committee on Environment and
 Public Works, 95th Cong., 2d sess. (1978)
 at 464-65 (hereafter CWA Legis. Hist.).
 Although the upset provision does
 authorize permittees a limited
 opportunity to make such showings, it is
 properly placed in the context of judicial
 determinations in an enforcement
 action.
   Commenters have not been able to
, identify significant impacts from this
 approach. The Act contains no provision
 for administrative penalties, and
 sanctions can only be imposed after a
 judicial determination of a violation.
 Further, noncompliance reporting
 requirements exist independently of
 whether the noncompliance was caused
 by an upset. One commenter did note
 that under § 122.31, a permit may be
 withdrawn by administrative action for
 previous violations. It is agreed that an
 opportunity to prove upset must be
 afforded in such cases.
   While the Agency will, of course,
 consider the possibility of upset where
 relevant, it must be stressed that upsets
 are exceptional events which should
 occur infrequently. The upset provision
 should not be construed as providing
 relief where there is a pattern of permit
 violation.
   In response to comments, § 122.14(1](1)
 has been revised to indicate that
 noncompliance due to operational error
 or lack of preventive maintenance does
 not constitute an upset. EPA believes
 these revisions clarify the situations
 listed in the original proposal.
   Commenters objected to the
 requirement that a specific cause be
 identified hi establishing an upset. They
 claimed that even properly run faculties
 may have upsets for which no particular
 cause can be found. However, requiring
permittees to identify the cause of
noncompliance is an essential aspect of
placing the burden of proof on the
permittee to show that an upset was
beyond its control. If upsets could be
proved merely by asserting that a
facility was being properly run at the
 time of noncompliance, the burden of
 proof would be reversed and the
 prosecution would be required to
 establish the cause of the upset to rebut
 this showing. Such an approach would
 make enforcement extraordinarily
 difficult. Congress intended that
 prosecution for permit violation be swift
 and simple, and this provision
 implements that objective while
 allowing permittees to demonstrate that
 noncompliance could not be avoided.
 Further, the requirement that a cause be
 identified will encourage permittees to
 examine the operation of their treatment
 system and will help ensure that
 noncompliance is not repeated. Finally,
 where a cause of noncompliance cannot
 be identified, the Agency may still
 exercise prosecutorial discretion not to
 enforce in situations where it is not
 warranted.
    Some commenters asserted that the
 upset provision would undercut the
 States' authority to impose stricter
 effluent limitations. In response to this
 concern, EPA has revised this section to
 make clear what was originally
 intended—the upset provision applies
 only to violations of technology-based
 effluent limitations established pursuant
 to sections 304 and 306 of the Act This
 change is consistent with the Marathon
 decision, and necessary to achieve the
 goals of the Act Violations of stricter
 State standards or water quality based
 effluent limitations are not subject to a
 defense of upset.

 § 122.15 Applicable limitations,
 standards, prohibitions and conditions.

    § J2ZI5f#—Paragraph (f) listed
 situations where limitations more
 stringent than those required by sections
 301(b)(l)(A), 301(b)(l)(B), 301(b)(2)(B),
 and 308 of the Act would be required.
 Some commenters suggested an
 additional situation, where necessary to
 conform to applicable water quality
 requirements under section 402(a)(2) of
 the Act when the discharge affects a
 State other than the certifying State.
 EPA agrees and has added § 122.15(f)(4)
 to cover this situation.
   Some commenters were concerned
 that paragraph (f)(8), which indicated
 that additional or more stringent permit
 limits could be established based on
 "fundamentally different factors," might
 be misinterpreted to mean that
 fundamentally different factors
 variances could only result in additional
 or more stringent limits. To address their
^concerns, EPA has added a comment
 indicating that less stringent permit
 limits may also be requested based on
 fundamentally different factors. Further
 details as to fundamentally different

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  32864
Federal Register / Vol. 44,  No. Ill  / Thursday, June 7,  1979 / Rules  and Regulations
  factors variances are found in Part 125,
  Subpart D, and related preamble
  discussion.
    Paragraph (f}(9), which provides for -..•'
 .incorporation of additional
  requirements, conditions or limitations
  into a new source permit based on the
  National Environmental Policy Act or ''
  section 511 of the Clean Water Act,
  provides the basis for the incorporation
  into NPDES permits of conditions
  related to an Environmental Impact
  Statement (EIS). Some commenters
  suggested nonwater related EIS
  condition cannot be placed in permits.
  However, EPA believes that ElS-related
  conditions may be imposed in NPDES
  permits in order to minimize any
  adverse impacts on the environment
  identified in the EIS, regardless of their
  relation to water pollution or water
  quality problems. (See September 23,
  1976, Memorandum of the General
  Counsel, entitled EIS Regulations for
 NPDES Permits and former 40 CFR
  § 6.918). To do otherwise would negate
 the purpose and intent behind the
 requirement that an environmental
 impact statement be prepared.
   Commenters also argued that the Act
 does not authorize the case-by-case
 establishment of technology-based
 permit limitations as  contemplated by
 paragraph (f)(10). This argument is
 unpersuasive in light of section 402(a)(l)
 of the Act, which authorizes the
 establishment of "necessary" conditions
 in the absence of effluent limitations
 guidelines. Moreover, this argument has
 been rejected in the courts and by long-
 standing EPA policy (see preamble
 discussion to Part 125, Subpart A). Thus,
 this section has not been changed.
   A new paragraph § 122.15(f)(ll) has
 been added to assure consistency with
 the pretreatment regulations (40 CFR
 Part 403} which may, in some cases,
 require more stringent limitations.
   § 122.15(g}—A number of commenters
 questioned the relationship between
 "best management practices," under
 proposed § 122.3(f) and § 122.15(g); and
 "operating practices"  under proposed
 § 122.15(i). Since best  management
 practices include operating practices,
 the two sections have been combined.
  Thus, paragraph (g), has been revised
 to clarify that "best management
 practices" (BMPs) may be required in
 permits where numeric effluent
 limitations are infeasible, or where
 reasonably necessary  to achieve
 effluent limitations and standards.  "
 These BMPs are similar to those
 authorized pursuant to section 304(e) of
 the Act (which is covered in detail in
Part 125, Subpart K); however, they are
authorized by section 402 and EPA's
                           authority has been so recognized in
                           NRDC v. Costle, (Runoff Point Sources).
                           In addition, a comment has been added
                           which provides examples of BMPs
                           which could be required under
                           paragraph (g). See also preamble
                           discussion under proposed § 122.3.
                             § 122.15(i}—Proposed paragraph (j)
                           (now paragraph (i)) which prohibited
                           "backsliding" in permit levels of control
                           with limited exceptions, has been
                           retained. The concerns of some
                           commenters about the effect of
                           paragraph (j), where permits are based
                           on interim final effluent guidelines
                           which are more stringent than final
                           effluent guidelines, have been addressed
                           to § 122.31. Paragraph (j) is superseded
                           in these cases by § 122.31(e)(4), which
                           allows limitations based on more
                           stringent interim final limitations to be
                           modified based on less stringent final
                           guidelines if a modification request is
                           made in a timely manner. In addition,
                           § 122.15(i)(3) now indicates that there is
                           a third instance where "backsliding"
                           will be allowed, i.e., for conventional
                           pollutants. Congress directed EPA to
                           shift its pollution control technology to
                           toxics. (See CWA Legi's. Hist., Statement
                           of Managers, at 269). The 1977
                           amendments to the Act (sections
                          301(b)(2)(E) and 304(b)(4)) set out a
                          completely new test for conventional
                          pollutants. The new requirement, known
                          as best conventional technology (BCT),
                          is based on a comparison to the cost of
                          secondary treatment and a cost/benefit
                          test. The test sets best practicable
                          technology (BPT) effluent guidelines as a
                          floor and best available technology
                          (BAT) as a ceiling. In a small number of
                          cases, where no promulgated guidelines.
                          were in effect at the time of initial
                          permit issuance, (i.e., where a section
                          402(a)(l) limit is very stringent) the test
                          may result to effluent limits for BCT less
                          stringent than limitations to the original
                          permit for BPT. In these cases, EPA
                          believes that, consistent with
                          Congressional intent, backsliding to BCT
                          should be allowed.

                          § 122.16  Calculation and specifications
                          effluent limitations and standards.

                           § 122.16(a)—A number of commenters
                          suggested that "actual production," as
                          used in proposed § 122.16(a) as the basis
                          for calculating permit limitations,
                          standards or prohibitions, should be
                          defined or clarified.
                           In response to these suggestions, a
                         comment to § 122.16{a) has been added,
                         which explains that permit limitations
                         will be calculated based upon a
                         reasonable measure of production,
                         taking into account historical data to the
                         case of existing facilities, or market data
 for new or significantly modified
 facilities or processes. In the case of
 new or modified facilities or processes,
 permit limitations are subject to
 subsequent modification once a pattern
 of production figures become available.
   Other commenters questioned
 whether proposed § 122.16(a) was
 intended to apply to POTWs, and if so,
 how? fa response to these comments,
 EPA has added a new § 122.16(a)(3)
 which states that POTW permit
 limitations are to based on design flow.
 Basing POTW permit limitations on
 design flow will allow growth, while at
 the same tune maintain the proper level
 of treatment due to the 85% removal
 requirement to 40 CFR Part 133. Since
 the percentage removal requirement is
 not applicable to industries, their limits
 must be based on actual production.
   In  response to a specific invitation for
 comments in the August 21,1978,
 preamble discussion on proposed
 § 122.16 some commenters favored the
 use of an alternative effluent limitation
 approach for calculating permit limits.
 The approach described to that
 preamble was: (1) Determine a total
 technology-based effluent limitation for
 the entire plant  and (2) relocate this
 total discharge among the outfalls, as
 long  as the plant continues to meet the
 overall technology-based requirement.
 EPA  is still evaluating this proposal.
 Should it prove  appropriate within the
 constraints of the Act, EPA may adopt
 this alternative approach to future
 rulemaking. This portion of § 122.16(a) is
 promulgated as  proposed.
   § 122.l6(c}—A number of commenters
 suggested that certain terms to
 § 122.16(c) (Proposed § 122.16(b)) such
 as "maximum daily discharge",
 "average monthly discharge" and
 "average seven consecutive day
 discharge" be defined. These definitions
 have been added to § 122.16(c) and for
 clarity the term "average seven
 consecutive day discharge" has been
 replaced by "average weekly
 discharge".
   Several commenters  questioned the
 distinction between the terms used to
 § 122.16(c) for the calculation of permit
 limitations of POTWs and discharges
 other than POTWs. The distinction
 between these two general types of
 discharges is based upon existing
 requirements in effluent guidelines and
 its secondary treatment information (40
 CFR Part 133). fa order to maintain
 consistency with effluent guideline and
 secondary treatment requirements,
 § 122.16(c) has not been changed, except
as discussed earlier.
  A number of commenters urged that
the permitting authority should have the

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              Federal Register  / Vol. 44,  No. Ill  /  Thursday, June 7, 1979 / Rules and Regulations
                                                                       32865
 discretion to require either mass- or
 concentration-based limitations, -
 depending on the nature of the process
 and the receiving waters. This approach
 has not been adopted, except as
 provided in § 122.16(d), because the
 Agency continues to believe that most
 permit limitations standards and
 prohibitions must be expressed
 quantitatively in terms of mass in order
 to preclude the use ofjdilution as a
 substitute^for treatment. Paragraph (d)
 of § 122.16 allows the use of
 concentration limits under
 circumstances in which administrative
 or technical problems make the use of
 mass limits impracticable or
 inconsistent with other requirements
 such as promulgated effluent guidelines
 or pretreatment standards. (EPA has
 decided to state pretreatment standards
 in terms of concentratiorrand wherever
- possible to provide an equivalent mass
 per unit of production, see preamble
 discussion to 40 CFR Part 403, June 26,
 1978, 43 FR 27743-27744).
   § 122.16 (f) and (g)—Paragraph
 122.16(g) (proposed § 122.16(f)) provides
 for issuance of permits based on net
 terms rather than gross terms.
 Dischargers may receive a credit under
 specific conditions, for pollutants.
 present in their intake  waters. Numerous
 commenters objected to the conditions
 under which a credit would be granted
 and suggested that the various
 conditions be deleted. EPA has not
 deleted any of the conditions necessary
 for achieving a credit allowance and,
 therefore, receiving a permit calculated
 on a net basis. EPA considers these
 conditions as reasonable and consistent
 with court decisions and also believes
 they are necessary for  achieving the
 goals of the Act
   The limitations upon the net/gross
 provision in these final regulations grow
 out of the technical basis on which
 effluent limitations guidelines are
 established. Without exception, EPA has
 developed effluent limitations guidelines
 on a gross, not a net, basis. The
 guidelines assume that a treatment
 technology will achieve a final effluent
 concentration which is independent of
 fluctuations in influent  concentration,
 within a very broad range. (For a
 discussion of the independence of
 effluent concentration from raw waste
 concentration in the petroleum refining
industry, for example, see 40 FR 21939-
21949 (May 20,1975).) The effluent levels
achieved by good treatment may be
close to background levels in some
receiving waters. This fact underlines
the mischief which can  result from an
indiscriminate application of net
limitations. A plant may have a
 treatment system which, properly
 operated, achieves a suspended solids
 limit of 15 mg/1 with a raw waste
 between 150-600 or more mg/1. If the
 intake concentration is 15 mg/1, this will
 have no effect upon the achievable final
 effluent concentration. Yet
 indiscriminate application of the "net"
 requirement would allow the discharger
 to discharge 30 mg/1, or twice the
 concentration which a well-run
 treatment system should achieve. For
 this reason, EPA has restricted the
 application of the "net" allowance to
 those cases where the treatment
 required by the Act will not remove the
 pollutants hi the intake  water (such as,
 for example, where cooling water is
 discharged without settling).
   Many commenters suggested that
 proposed §  122.16(f) (now § 122.16(g)(l))
 be revised to read that permits "shall"
 be written on  a net basis rather than the
 discretionary "may" in the proposed
 regulation. EPA has accepted these
 comments in part EPA does not believe
 every permit should automatically be
 written on a net basis (assuming the
 conditions of § 122.16(g) are met)
 because some dischargers may not want
 to do the sampling, etc., necessary to
 develop a net  permit. Therefore, the
 discharger must actually request
 calculation on a net basis at the time of
 permit application. However, EPA does
 believe, if calculation on a net basis is
 requested, and all the conditions of
 § 122.16(g) are met the permit should be
 written on a net basis. To this extent,
 EPA has accepted the suggestion of
 these commenters.
   Several commenters objected to the
 requirement in § 122.16(g)(l) (proposed
 § 122.16(f)) that limits the availability of
 credit to those dischargers who
 discharge their effluent into the same
 body of water from which they received
 their influent While a discharger should
 not be held responsible  for pollutants
 already existing in its water supply if
 the discharge is into the same body of -
 water from which the discharger took
 water, the same reasoning cannot
 support allowance of a credit where the
 discharge is into another body of water.
 The grant of a  credit in the latter case
 would allow a discharger to transfer
 pollutants from one body of "water to
 another, thus, adding pollutants to
 receiving waters for the  first time. An
 exception to this rule is where the
 discharge is made into a tributary of the
 stream from which the influent was
 taken. In such a case a credit may be
 allowed since the tributary will be
 considered to be the same body of water
 as the downstream lake  or river for the
purpose of 1122.16(g).
   A number of commenters objected to
 proposed § 122.16(f)(2) (now
 § 122.16(g)(2)) as being vague. The intent
 of this section was to deny calculation
 of effluent limitations on a net basis if
 the discharger's influent treatment
 system (to clean water for the
 manufacturing process) or the
 wastewater treatment system entirely
 removes specific pollutants which had
 been present in the intake waters and
 are limited by the dischargers permit.
 This intent has been clarified in
 § 122.16(g)(l)(i)(B).
   The provision that a credit shall only
 be allowed for pollutants present after
 any treatment steps have been
 performed on the intake water is also
 repeated in § 122.16(g)(2) (proposed
- § 122.16(f)(4)). Some commenters
 objected to this requirement suggesting
 that EPA has no jurisdiction to regulate
 intake pollutants but may only regulate
 pollutants added by the discharger. See
 Appalachian Power Co. v. Train, 545
 F.2d 1351,1377 (4th Cir. 1976). In
 Appalachian Power the court said that
 EPA only had jurisdiction over
 pollutants added by the discharger. EPA
 believes that when a source changes the
 character or concentration of an intake
 pollutant and then discharges it, the
 source is, hi effect, adding a pollutant to
 the water. For example, one step in the
 pretreatment of intake water in many
 industries is chlorination to protect
 pipes and process equipment from algae
 formation. This treatment will result in
 chlorination of the intake pollutants
 thereby rendering them more toxic.
 When this occurs, the discharger should
 not be allowed to pass through those
 pollutants in its waste stream without
 some responsibility for treatment. If the
 discharger can demonstrate that the
 character or concentration of the
 pollutants has not changed after
 pretreatment then a credit for those
 pollutants will be allowed. These
 determinations will have to be made on
 a case-by-case basis.
   A credit may be allowed for the
 amount of pollutant remaining in a
 discharger's intake water after any
 treatment of the intake waters and
 wastewater treatment Thus, if a
 discharger treats its intake water and
 removes  90 percent of a pollutant, the
 discharger may be  entitled to a credit for
 the remaining ten percent left in the
 water used in the plant process. If the
 discharger's waste  treatment system
 also removes 90 percent of the pollutant,
 the discharger's credit of ten percent
 shall be reduced by 90 percent because
 the pollutant remaining in the influent is
 being treated a second time, thereby,
 reducing  the pollutant by an additional

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  32866       Federal Register  / Vol. 44.  No. Ill  /  Thursday.  June 7. 1979 / Rules and Regulations
  90 percent Therefore, the discharger's
  total credit following both treatments
  would be one percent of the pollutant in
  the original influent To clarify this
  result, the word "incidentally" was
  deleted from § 122.16(g)(2) (proposed
  § 122.16(^(4}).
    Some commenters objected to the,
  requirement in § 122.16(g)(2) (proposed
  § 122.15(f)(4)) that a credit could not be  -
  granted where the pollutants in the
  intake waters were "chemically or
  biologically" different from the
  discharge water. This requirement was
  considered vague and overly broad. EPA
  disagrees. Generic pollutant parameters
  such as biochemical oxygen demand
  (BOD), chemical oxygen demand (COD),
  total organic carbon (TOG) or total
  suspended solids (TSS) are broad
  measurements of a number of specific
  chemicals  or materials. TSS, as
- measured at an intake point, may
  consist mostly of river silt; but after
  being used in a process the TSS, as
  measured at the outfall, may include
  substantial quantities of metals or other
  materials with toxic characteristics. EPA
  considers it essential to avoid allowance
  of credit when the pollutants in the
  discharge water vary significantly in
  toxicity from the pollutants in the intake
  water. Dischargers should not be
  allowed an unrestricted right to add
  more toxic pollutants to their discharge
  waters.
    Finally, a new sentence has been
  added to § 122.16(g)(2) stating that a
  credit not be allowed for the discharge
  of pollutants which have been made
  more concentrated by a discharger (the
  third sentence has been similarly
  revised to state that the pollutants
  discharged cannot vary physically, e.g.,
  in concentration from the pollutants in
  the intake water). For example, when
 waters are taken from a stream and
 used in a cooling pond, this use may
 result in the loss (through evaporation or
 otherwise) of significant amounts of the
 water thereby concentrating the
•remaining pollutants. This action by the
 discharger—causing the character of the
 water to change by increasing the
 amount of pollutants per volume of
 water—constitutes an addition of
 pollutants to the stream. Therefore, a
 source will not be allowed to discharge
 this water without treatment
  § 122.1S(hJ~A number of comments
were received on the subject of batch
discharges, under § 122.16(h), suggesting
that definitions of terms used in
§ 122.16(h) be provided, and that
restrictions on batch discharges be
relaxed.
  Paragraph 122-16(h) has been
redrafted. The Agency's intent is
  unchanged, however, the terminology
  has been clarified. As proposed, the
  paragraph used the terms "continuous,"
  "batch" and "intermittent" discharges
  but did not define them. In final form,
  paragraph (c) now defines "continuous
  discharge" and paragraph (h) now deals
  with "noncontinuous discharges." In
  addition, paragraph (h) now clearly
  indicates that the requirements of
  § 122.16 (c) and (d) (proposed
  paragraphs (b) and (d)) are applicable to
  the discharges described in this
  paragraph. Subparagraph (h)(2) has
  been revised to clarify that limits refer
  to specific pollutants.
   Several commenters argued that batch
  discharges should be limited only in
  cases where water quality standards
  would be violated. Such a provision
  would be inconsistent with the Act's
  technology-based treatment
  requirements which apply regardless of
  water quality impacts.
   § 122.J6/y—Many commenters urged
  that the Agency should not impose
  limitations and standards upon internal
  waste streams under § 122.16(i) and
  questioned the Agency's authority to do
  so. Other commenters urged that the
  Agency should broaden the
  circumstances under which internal
  waste stream limitations would be
  imposed. EPA continues to believe that
  the Act provides authority to regulate
  internal waste streams in appropriate
  circumstances. The Agency's intent
  regarding the imposition of limitations
  upon internal waste streams has been
  clarified by means of a comment to
  § 122.16{i) which states that limitations
  on internal waste Streams will not be
 imposed routinely, but only under
 exceptional circumstances which make
 monitoring  of the final discharge point
 impractical or infeasible. The comment
 also provides examples of where
 internal waste stream limitations might
 be necessary.

 § 122.17  Schedules of compliance.
   Several commenters thought that
 proposed §  122.17(e) (now § 122.17(d))
 provided for a schedule of compliance
 which allowed compliance after the
 statutory  deadline. This was not EPA's
 intent, so to avoid any possible
 confusion this paragraph has been
 revised to clarify that compliance with
 statutory treatment requirements must
 be as soon as possible, but no later than
 the applicable deadline imposed by the
 Act.
  In response to comments, 1122.17{c)
 has been redrafted to explain in greater
 detail the  use of two alternative
 schedules of compliance in cases of
planned or contemplated plant "shut-
 down" or discharge to a publicly owned
 treatment works. These two schedules,
 when read together will indicate a
 critical date for the decision to cease
 discharge rather than proceed toward
 compliance—and irreversible date on
 which steps toward compliance must be
 taken. No later than this date, if the
 permittee does not intend tp construct
 the required treatment technology, it
 must make a firm public commitment to
 cease discharge. Examples of firm public
 commitment have been provided in the
 Comment to § 122.17(c).
   Some commenters also thought that
 the requirements of § 122.17(c) should
 not apply where a discharge to a POTW
 is planned, but should apply where
 Federal funding problems, beyond the
 control of the permittee, delay the
 planned "tie-in"  to the POTW. In cases
 of this sort, paragraph (c) must be   ,
 considered in conjunction with sections
 301(i)(2) and 309(a) of the Act, which
 authorize limited extensions of statutory
 compliance dates. EPA has no intention
 of negating these provisions of the Act
 through the operation of paragraph (c).
   A new paragraph, § 122.17(e) has been
 added to deal with the situation where a
 POTW received a section 202(a)(2)
 innovative and alternative wastewater
 technology grant. POTWs constructing
 facilities with this grant money may not
 achieve the statutory treatment
 limitations because the innovative
 technology, as applied, may not work as
 planned when the facility is completed.
 Section 202(a)(3) of the Act recognizes
 that the facilities may have to be
 modified or replaced and thus, to
 encourage innovative and alternative
 technologies, authorizes grants of 100
 percent of these costs if the
 Administrator determines that certain
 conditions are met. EPA believes that in
 order for the Permits Program and the
 Construction Grants Program to work in
 concert the permit schedule of
 compliance should be modified if this
 unique type of construction grant is
 awarded. Thus, this new paragraph
 provides that the permit may.be
 modified to extend the schedule to
 account for the amount of time lost in
 building the First treatment plant. This
 new paragraph does not, however,
 authorize EPA to extend the statutory
 date for compliance. If the POTW
 cannot achieve compliance in time, the
 schedule will not be extended. However
EPA, in it exercise of prosecutorial
discretion, may consider the grant under
section 202(a)(3) when assessing the
POTWs efforts to comply with statutory
treatment requirements.

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              Federal Register / Vol. 44. No.  Ill / Thursday. June 7. 1979 / Rules and Regulations      32867
 § 12230  Monitoring.         '•    •

   Several commenters suggested that
 § 122.20(b), which requires the Director
 to specify monitoring requirements in
 permits, should be deleted. No change
 has been made in this paragraph. EPA
 believes that there is an important need
 to tie permit limits to specific monitoring
 equipment or methods, such as
 biomonitoring, in complex situations
 involving toxic pollutants.
   § 122.20 (c) ond/tf>-^Section 122.20
 has been amended to provide guidance
 for establishing sampling and measuring
 requirements in NPDES permits. The
 section also requires that once
 monitoring requirements are established
 for an NPDES permit such requirements
 cannot be changed unless the permit is
 modified hi accordance with § 122.31.
   In establishing monitoring
 requirements there are several
 considerations. Many effluent limitation
 guidelines have been determined by
 statistical analysis of the pollutant
 levels found in a large number of
 composite samples or in grab samples.
 Consequently, a permitting authority
 may require that sampling for
 compliance monitoring be done hi a
 manner consistent with the data base
 used in setting the limitation guideline.
 The development documents for effluent
 Imitation guidelines often indicate the
 general method of sampling used to
 accumulate the data for guidelines
 setting. The revisions to §  122.20(c)
 indicate that less detailed monitoring
 may be appropriate in some cases, but
 once a permittee has accepted a given
 set of monitoring requirements, the
 permittee is bound by that approach
 unless the permit is modified for other ..
 reasons, in which case monitoring
 requirements may  be reexamined.

 § 122.22  Reporting of monitoring
 results and compliance by permittees.

  Several commenters objected to
 § 122.22[a) because it could be read to
 require permittees  to submit monitoring
 results to both EPA and where
 appropriate the NPDES State. In
 response to these comments,  EPA has
 substituted the term "Director" for the
 proposed terms "Enforcement Division
 Director and  . . .  Director" to indicate
 that only one report must be submitted
 to the appropriate permit issuing
 authority (unless otherwise specifically
required).         -
  Several commenters objected to the
requirements for reporting of monitoring
results for pollutants not limited in the
permit. However, section 308 of the Act
clearly authorizes such a requirement.
Even in those situations where
 monitoring is not required, it is clear
 that if the permittee has conducted
 monitoring activities, they should be
 reported to provide as complete and
 accurate a picture of the discharge as
 possible.
   Other commenters suggested that   .
 § 122.22(a) should be limited to
 monitoring done at the monitoring points
 specified in the permit. EPA has not
 accepted this suggestion since it would
 allow circumvention of this requirement
 by sampling at a point other than that
 specified in the permit.
   Several commenters suggested  that
 the imposition of a maximum $10,000
 fine per violation (e.g., false statement)
 (§ 122.22(d)) is inconsistent with section
 309(c)(2) of the Act This is a misreading
 of the Act, which states that any person
 who knowingly makes "any" false
 statement should be liable up  to $10,000.
 If this section is violated several times
•as a result of several false statements,
 each violation is separately subject to
 the statutory fine.

 § 122.23  Quarterly noncompliance
 reporting.
   Many comments were received
 indicating that definitions of "major"
• and "minor" permittees should be
 provided in the regulations. However,
 "major" and "minor" are not permanent
 classifications. Rather, these
 classifications are intended to provide
 EPA and the States with flexibility to
 establish priorities for permitting  and
 compliance activities so as to  best
 utilize existing resources. Thus, it is
 more appropriate that information on
 "major" and "minor" classifications be
 provided in annual guidance, rather than
 fixed in these regulations. However, in
 orde~r to emphasize that the "major" or
 "minor" classification relates to the
nature of the discharge and not the
nature (or size) of the facility,  the
regulations have been revised to read
major [or] minor "discharger"  rather
than "permittee" (see, e.g., § 122.23(a)).
  Several commenters objected that the
quarterly reporting requirements were  \
too frequent, too resource-intensive, and
not useful. However, the regulation were
designed to minimize the amount of
reporting and to focus on the most
significant instances of noncompliance
by major dischargers in the narrative
portion of the report. In fact, the
proposed (and final) regulations change
the existing requirement by adding
narrative information on noncompliance
with effluent limitations by major
dischargers, continuing the existing
narrative reporting requirements on
schedule violations by major
dischargers,  and reducing the required
reporting on noncompliance by minor
dischargers to annual statistical
reporting. EPA believes that these
changes will result hi less resources
devoted to preparing reports while
providing the most useful, up-to-date
information to interested members of
the public.  ^_	
  Many comments were received
concerning § 122.23(b)(3). Specifically,
concern was expressed that serious
effluent limitation violations of short
duration would not be reported. Other
commenters stated that the definition of
a pattern of noncompliance did not
adequately handle noncompliance for
parameters requiring continuous
monitoring. The concern was expressed
by many that our definition would result
in almost continuous reporting of many
minor violations. In response to these
comments, two changes have been
made. First, the definition of a pattern of
noncompliance has been changed by
adding  the sentence: "This pattern of
noncompliance is based on violation of
monthly averages and excludes
parameters where there is continuous
monitoring, such as pH". Second, a
paragraph has been added that provides
for the reporting of a significant
discharge of a pollutant that otherwise
would not be reported.
  Many other comments were received
requesting clarification of requirements
for format, copying and distribution. We
do not believe such specific details are
appropriate for regulation. These
concerns will be addressed La guidance
issued by the Office of Enforcement on
report preparation.

§ 122.31 Modification, revocation  and
reissuance, and termination.

  The majority of the comments on
proposed § 122.31 dealt with two general
areas. First, many commenters thought
that permit modification or revocation
was inconsistent with a fixed term
permit and the concept of finality as
expressed in section 402(k) of the Act.
However, the protection provided by
section  402(k) is expressly limited by
section  402(b)(l)(C) of the Act; which
states that permits may be modified or
terminated (revoked) for cause,
"including but not limited to" three
specified situations which are
representative examples, not an
exhaustive list. Other situations may
also constitute good and valid cause for
permit modification or revocation. EPA
believes that "cause," as defined in
§ 122.31, falls well within the authority
of section 402(b)(l)(C) of the Act,
notwithstanding section 402(k).
  Second, a large number of
commenters, while recognizing EPA's

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  32868       Federal Register / Vol. 44, No. Ill  / Thursday, June  7, 1979 / Rules  and Regulations
  .authority to modify or revoke permits,
  suggested that causes for revocation and
  causes for modification should be listed
  separately since absolute revocation is a
  more "severe" measure. EPA agrees
  with these commenters and has
  separated and reduced the causes for
  absoulte revocation. For clarity in
  distinguishing between the methods
  used for changing or terminating a
  permit, three terms are used in § 122.31
  and throughout these final regulations:
  "modification," "revocation and
  reissuance" and "termination."
  "Modification" is used where existing
  permit conditions  are changed but the
  permit expiration date remains the
  same. "Revocation and reissuance" is
  used to describe the action to revoke an
  existing permit and reissue a new permit
  which provides the permittee the
  protection of a new five-year permit.
  Finally, "termination" means the
  revocation of an existing permit, where
  a new permit is not reissued.
   Proposed § 122.31(d) listed thirteen
  situations which constituted "cause" for
  permit modification or termination. In
  accordance with EPA's decision to
  separate cause for "termination" from
  cause for permit "modification" or
  "revocation and reissuance," a new
  paragraph (e) has been added to  -
  supplement paragraph (d). In the final
  regulations paragraph (d) contains five
  situations where a permit can be either
  "modified," "revoked and reissued" or
  "terminated." These include the three
  situations listed in the Act plus two
  other situations. The first situation is
  where information indicates that the
  discharge poses a threat to human
  health or welfare (see  discussion of
  paragraph (d)(4)). The second situation,
  a change in ownership, was added in
  response to comments [see discussion of
  paragraph {d)(5)).Paragraph (e) lists all
  other situations which are cause only for
 permit "modification" or "revocation
 and reissuance."
   Several commenters suggested
 additional situations that should
 constitute "cause" for permit
 modification. The suggested causes
 included: revisions  to the best
 practicable waste treatment technology
 standards; promulgation of regulations
 governing the disposal of sewage sludge
 under section 40S(d) of the Act; and the
 inability of a permittee to meet permit
 limitations despite installation of
 technology contemplated by the permit.
 EPA does not believe that these
 situations constitute "cause" for  •'
 modification or revocation and
 reissuance. However, in response to
 comments, two additional "causes"
have been added: (1) § 122.31{d)(5), a
  change in ownership or control of a
  source which has a permit, consistent
  with § 122.12(d) (where no changes in
  the permit are necessary, the permit
  may be modified but is not subject to
  public notice or an opportunity for a
  hearing in accordance with
  § 122.31(f)(4)), and (2) § 122.31(e)(7),
  failure of an NPDES State to notify an
  affected State of a discharge that
  originates in the NPDES State as
  required by section 402(b)(3) of the Act.
   One commenter also felt that
  procedural safeguards surrounding the
  revocation and reissuance, and
  termination of a permit were inadequate
  and did not meet the requirements of 5
  U.S.C. section 558(c). In response to this
  concern, it should be noted that
  §§ 122.1(b}(2) and 122.30 specifically
  state that all actions will be taken in
  accordance with the procedural
  requirements of 40 CFR Part 124, thus
  providing adequate procedural
  safeguards.
   § 122.31fd)—Section 122.31(d)(l) states
  that "violation of any term or condition
  of the permit" constitutes cause for
  permit modification, revocation and
  reissuance, or termination: Many
  commenters objected to this and
  specifically to the use of the word "any""
  since it did not distinguish between
  serious, repeated, or willful violations
  and minor, single, or inadvertent
 violations. EPA understands that these
 commenters fear that under the
 proposed regulations, a single, minor
 permit violation could result in permit
 termination and subject the discharger
 to action for discharging without a
 permit. While this is an unlikely case,
 the Act specifically states that violation
 of any  condition of the permit
 constitutes cause for permit     -
 modification or termination.
 Consequently, EPA has not revised this
 paragraph; however, the permitting
 authority will normally consider the
 seriousness of the violation and the use
 of other enforcement actions before
 deciding to terminate a permit under this
 paragraph.
   Paragraph 122.31(d)(2) states that
 "failure of the permittee to  disclose fully
 all relevant facts or misrepresentation of
 any relevant facts by the permittee"
 constituted cause for permit
 modification, revocation and reissuance,
 or termination. Many commenters felt
 that this subsection should  require
 knowing or willful failure to disclose
 facts. As with proposed § 122.31{d)(l),
 EPA has not made the suggested change
 because this paragraph mirrors the
language in the Act. In response to
comments, however, EPA has clarified
the final clause in this paragraph to
 indicate that misrepresentation of any
 "relevant" fact is intended to be subject
 to this paragraph.
   The last sentence to both proposed
 §§ 122.31 (d)(l) and (d)(2) stated that the
 two situations, violation of any term or
 condition of a permit or failure of a
 permittee io disclose all relevant facts,
 constituted cause for termination,
 revocation and reissuance, or
 modification only when such changes
 would make the permit more stringent.
 Many commenters strenuously objected
 to the more stringent requirement in the
 last sentence and gave examples of
 when a permit should be made less
 stringent. Although EPA believes that
 circumstances justifying a less stringent
 permit will be extremely rare, comments
 suggesting such circumstances were
 persuasive. Accordingly, EPA has
 deleted the more stringent modification
 restriction in paragraph (d) (1) and (2) to
 allow less stringent modifications if
 justified.
   In response to comments which
 pointed out that proposed § 122.31(d](3)
 did not properly paraphrase  the
 statutory definition of "cause" found in
 section 402(b](l)(C)(iii) of the Act, EPA
 has revised this paragraph to be
 consistent with the Act.
   Proposed § 122.31(d)(4) stated that
 "information indicating the permitted
 discharge  poses a threat to human
 health or welfare" constituted cause for
 permit modification or revocation. While
 some commenters thought this
 paragraph exceeded EPA's statutory
 authority, other commenters  stated  that
 this provision was consistent with EPA's
 authority under section 402(k) of the
 Act. Because EPA concurs with the
 latter comments and believes that such
 a provision is consistent with the Act,
 paragraph (d)(4) is retained as a final
 regulation. In response to comments
 suggesting that the "human health or
 welfare" provision should be "cause"
 only to modify a permit to make it more
 stringent, and in keeping with EPA's
 decision to allow permit termination
 only in certain limited circumstances,
 EPA has placed this "cause" under the
 section which authorizes termination of
 the permit in addition to modification or
 revocation and reissuance. Many
 commenters also felt that this paragraph
 should be limited to situations where
 there was a "substantial showing" or
 "verification" as to the likelihood of an
 adverse impact on human health. EPA
 has not adopted these suggestions but
 points out that the permittee remains
 free to challenge the existence of a
 threat to human health or welfare in any
proceeding to modify, revoke  and
reissue, or terminate a permit.

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              Federal Register / Vol. 44. No. Ill / Thursday. June 7. 1979 / Rules  and Regulations       32869
   Proposed § 12£31(d)(5) indicated that
 a discharger's failure or refusal to allow
 authorized representatives of the permit
 issuing authority to enter, inspect, or
 copy materials on-the premises as
 provided in proposed § 122,14(f)
 constituted cause for permit
 modification or revocation. Many
 coramenters suggested deletion of this
 provision because failure to allow such
 entry, inspection, or copying was a
 cause for enforcement action under
 sections 308 and 309 of the Act Other
 commenters stated that the provision
 was inconsistent with the Supreme
 Court's decision in Marshall v. Barlow's
 /ho, 438 U.S. 307, (1978). In response,
 EPA has deleted proposed  § 122.31{d)(5).
 Proposed § 122.14(1) was also revised in
 response to comments. See discussion of
 § 122.14(f).
   § 122.31(e}~Proposed § 122.31(d)(6)
 (now § 122.31(e)(l)) indicated that
 material and substantial alterations or
 additions to the discharger's operation
 constituted cause for permit
 modification or revocation. In response
 to comments requesting clarification as
 to what constitutes "material and
 substantial alterations or additions," a
 parenthetical cause has been added to
 indicate that such change includes
 situations covered by § 122.14(e) which
 requires a new permit application.
   Some commenters asked under what
 circumstances would proposed
 § 122-31(d}(7), now 112£31(e}(2), be
 used? Section 122Jl(e)(2) might be
 appropriate if a permit misapplied State
 water quality standards (in effect at the
 time of permit issuance) and only
 secondary treatment was necessary.
 This section could be used to modify the
 permit to reflect the proper  level of
 treatment In addition, 5 12Z31(e)(2) has
 been revised to indicate that it can be
 used for revising more than effluent
 limitations, e.g., monitoring
 requirements.
  Proposed f 122.31(d)(6) (now
 § 122.31(e)(3)) indicated circumstances
 under which revision or withdrawal of
 EPA promulgated effluent limitations
 guidelines constituted cause of permit
 modification or revocation. Many
 conunenters objected that the
 requirement to file a modification
 request within ninety (90) days after the
 Federal Register notice of withdrawal or
 revision was unreasonable,  particularly
 since the scope of the relaxed guideline
 or standard may not be known. EPA
 continues.to believe that Federal
 Register notice is appropriate and
 adequate and that 90  days is sufficient
 time for a discharger  to determine the
scope of the revision or withdrawal.
   Several commenters suggested that
 withdrawal or revision of Water Quality
 Standards of EPA promulgated interim
 final effluent limitation guidelines
 should also constitute cause for permit
 modification. EPA agrees with these
 commenters and has revised
 § 122.31[e)(3) accordingly.
   Other commenters suggested
 modifications should be allowed to
 make a permit less stringent, when the
 permit was issued based upon section
 402(a)(l) of the Act and the pemit
 limitations are more stringent than
 subsequently promulgated effluent
 guidelines. EPA cannot allow
 modification to make a permit less
 stringent under these circumstances
 since a less stringent modification
 would constitute unwarranted
 "backsliding" in pollution control. See
 £7-5. Steel v. Train, 556 F.2d 822, 846 (7th
 Cir. 1977). Paragraphs 122.15(i)(l).  (2)
 and (3) lists the only exceptions to this
 principle.
   A few commenters thought there was
 no need to modify a permit when EPA-
 promulgated effluent guidelines
 limitations were withdrawn, revised,-or
 judicially remanded (see proposed
 § 122.31(d)(8) and (9). now § 122.31(e)(3)
 and (4)) since the guidelines were no
 longer .applicable or enforceable. These
 comments indicate a fundamental
 misconception as to the enforceability of
 individual permit terms and conditions;
 permit terms and  conditions remain
 enforceable unless and until they are
 modifiecl, revoked, or judicially or
 administratively stayed.
   Several commenters objected to
 proposed § 122.31(d)(ll), (now
 § 122.(e)(6J) which indicated by
 reference to proposed § 122.14{d) and
 § 122.15(b) that promulgation of effluent
 standards limitations or prohibitions
 under sections 307(a), 301(b)(2)(C)  and
 (D) and 304(b)(2) of the Act constituted
 cause for permit modification or
 revocation. Since  that paragraph
 incorporated the requirements of former
 40 CFR § 124.46, that requirement has
 not been changed. However, two
 additional cross references to § 122.17
 (causes for modifications to schedules of
 compliance) have  been added for
 completeness.
  Proposed § 122.31(d)(12). stated that
 failure of the permit "to apply any
 applicable standards or limitations"
 constituted cause  for permit
 modification or revocation. Many
 commenters objected to that paragraph
as unfairly penalizing the permittee for
failure  of the permit issuing authority to
write the permit properly. Other
commenters indicated that any attempt
to apply limitations or standards which
were not in effect at the time of permit
issuance constitutes unauthorized
overreaching by the permit issuing
authority. EPA has carefully considered
these comments in light of section 402(k)
of the Act and has concluded that,
except as provided in § 122.31 (e) (7), a
permit should not be modified to
incorporate new standards or
limitations. Accordingly, EPA has
deleted that paragraph.
  Proposed § 122.31(d)(13), defined
cause to include "other circumstances
. . . [which] have materially and
substantially changed since the permit
was issued." Several commenters
suggested that this subsection was
either too vague or too expansive and
should, therefore, be deleted. Although it
was not intended that this paragraph be
used as a carte blanche to allow permit
modifications, EPA understands arid
partially agrees with the fears of  some
commenters that this paragraph could
be so used. Accordingly, that paragraph
has been deleted.
  § 122.31(f)—Proposed § 122.31(e) (now
§ 122Jl(fj) listed six uncontested
actions amending minor provisions of an
effective permit that were not subject to
the usual procedures of notice and
opportunity for hearing unless the
modification would render the permit
less stringent Several commentera
thought that it was inconsistent to allow
only more stringent modification
without public notice and an
opportunity for hearing and not to allow
less stringent modifications in that same
manner. EPA believes that a
requirement for public notice and
opportunity for a hearing for less
stringent modifications is necessary,
since the public has a right to know of
any permit modifications which would
render a permit less stringent and could,
therefore, adversely affect the
environment. The only person who
would be affected by a  more stringent
modification is the permittee and the
permittee receives notice of and retains
the right to contest any more stringent
modifications. If the permittee contests
the modification, § 122.31(f), by its
terms, is not applicable and the
requirements of Part 124 come into
effect.
  Several commenters suggested  that a
permit modification to require less
frequent monitoring or reporting should
be an insignificant modification under
§ 122.31(f). Since less frequent
monitoring or reporting would render a
permit less stringent. EPA. for the
reasons stated above, believes public
notice and an opportunity for a hearing
is required.

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  32870
Federal  Register / Vol. 44, No. Ill /Thursday, June 7, 1979 / Rules and Regulations
    Other commenters suggested various
  changes to proposed § 122.31(e)(3) (now
  § 122.31(f)(3)} to allow more than the
  proposed 120 days slippage not only for
  interim compliance dates but also for
  final compliance dates. An extension of
  the final compliance date clearly
  renders the permit less stringent and
  therefore EPA has not made the
  suggested changes. EPA further believes
  that a slippage of more than 120 days in
  an interim compliance date would, in
  most cases, interfere with the
  attainment of a final compliance date. In
  the development of the Interim National
  Municipal Policy and Strategy EPA
  carefully considered the effect of the
  Construction Grants process on the
  achievement of interim compliance
  dates by municipal permittees. EPA
  concluded that 120 days slippage in
  interim compliance date is sufficient to
  accommodate the Construction Grants
  process and that, with careful grants
  management EPA is hopeful that even
  slippages of 120 days will not occur in
  the future.
  § 122.41  Disposal of pollutants into
  wells, into publicly owned treatment
  works, or by land application.
   Proposed § 122.41(a) requiring State
  permits for the disposal of pollutants
  into wells has been moved from Part 122
 'to Part 123 because it is applicable
  solely to NPDES States.
   1122.41(a)—One commenter
  recommended that disposal of wastes
  by land application, as well as by well
  injection or routing to a POTW should
  be included in § 122.41. EPA agrees, and
  this change has been made.
   A number of commenters objected to
  the provision in proposed § 122.41(b)
  (now § 122.41(aJ) requiring adjustment
  of effluent limitations for discharges into
  surface waters where a portion of raw
 waste is injected into a well. These
 commenters argued that the adjustment
 provision is inconsistent with Exxon
 Corp. v. Train, 554 F.2d 1310 (5th Cir.
 1977), and further that EPA should defer
 tffSubpart C of the Safe-Drinking Water
 Act, which establishes controls over
 well injection.
  EPA believes that these commenters
 have misconstrued the purpose and
 scope of proposed § 122.41(b) (now
 § 122.41(a)J. The provision does not
 regulate well injection, directly or
 indirectly, nor does it place any limit on
 the amounts which may be injected, the
rates of injection, or the design and
operation of injected wells. Instead,
§122.41 focuses on the remaining wastes
which are being discharged into waters
of the United States. The purpose of the
regulation is to ensure that the Act's
                           treatment requirements are met for
                           discharges into surface waters. Unless
                           adjustment is made in calculating
                           effluent limitations, dischargers using
                           wells, POTWs, or land application for
                           part of their wastes would get treatment
                           "credit" for pollutants so disposed and
                           thus escape application of technology-
                           based requirements to the portions of
                           the wastes disposed to waters of the
                           United States.
                             Several comments noted that the
                           formula as published in the proposed
                           rules is incorrect and inconsistent with
                           EPA's examples in the preamble. EPA
                           agrees, and has modified the final rules
                           to incorporate the correct method of
                           calculation. This method may be
                           algebraically expressed as:
                                               N_
                                           P=ExT

                           where P is the permit effluent Limitation,
                           E is the limitation derived by applying
                           effluent guidelines to the total waste
                           stream, N is the wastewater flow to be
                           treated and discharged to waters of the
                           United States,  and T is the total
                           wastewater flow.
                            Several commenters noted that strict
                           application of the formula would allow a
                           discharger to inject concentracted
                           wastes into a well and discharge
                          relatively dilute wastes to surface water
                          with little or no treatment The last
                          sentence  in proposed § 122.41(b) was
                          intended  to cover this situation. That
                          sentence  allows adjustment of the
                          effluent limitations derived from,the
                          formula as necessary to account for
                          changes in "character or  treatability" of
                          the wastes disposed into navigable
                          waters. Permit  issuing authorities should
                          devise appropriate methods of
                          adjustment in each case,  based upon a
                          finding that the wastes being discharged
                          into surface waters are "fundamentally
                          different" from those considered in
                          issuing effluent guidelines. These
                          variances will be controlled by Subpart
                          D of Part 125.
                            A new paragraph (§ 122.41(a)(l)) has
                          also been  added to cover the situation
                          where EPA-promulgated effluent
                          guidelines provide separate standards
                          for a discharge  of wastes  from a _
                          particular process and all wastes from
                          that process go  to wells, land
                          application, or POTWs. Such separate
                          process standards would not be used to
                          calculate permit limits.

                          § 122.42  Concentrated animal feeding
                         operations.

                           Proposed § 122.42 subjected
                         concentrated animal feeding operations
                         to individual permits coverage and all
                         other animal feeding operations to
 general permit coverage. Many
 commenters objected tffEPA's blanket
 coverage of all animal feeding
 operations, arguing that many smaller
 animal feeding operations are not point
 sources. These commenters also added
 that such operations were adequately
 covered by the section 208 planning
 process. EPA has reconsidered its
 position and agrees that not all animal
 feeding operations are point sources and
 thus subject to permit requirements.
   EPA is, therefore, withdrawing the • '
 proposed revision; and the final
 regulations reflect the requirements
 found in former § 124.82 and § 125.51.
 Thus, only concentrated animal feeding
 operations will be subject to individual
 permits and general permits will not
 apply to other animal feeding
 operations.                "

 § 122.43 Concentrated aquatic animal
 production facilities.
   Many commenters objected to this
 proposal which subjected concentrated
 aquatic animal production facilities to
 individual permit coverage and all other
 aquatic animal production facilities to
 general permit coverage. In  addition,
 commenters objected to the provisions
 for case-by-case  designation of certain
 aquatic animal production facilities as
 concentrated aquatic animal production
 facilities, and therefore, subject to
 individual permits.
   As discussed in § 122.42, EPA is
 withdrawing the  proposed revision
 regarding general permits. The final
 regulation concerning permit coverage is
 similar to former 40 CFR § 124.1(u) and
 § 125.1(ii) requiring only individual
 permits of concentrated aquatic animal
 production facilities. However, EPA
 believes that some aquatic animal
 production facilities that may not be
 classified as concentrated under the
 formula, nevertheless, may be
 significant contributors of pollution.
 Because of this, EPA is retaining the
 provision for case-by-case designation
 of concentrated aquatic animal
 production facilities. EPA is  revising this
 to include the following language
 suggested by one  commenten "In no
 case shall a permit application be
 required from a concentrated aquatic
 animal production facility designated
 under (the case-by-case provision) until
 there ha's been an on-site inspection of
 the facility and a determination that the
 facility should and could be regulated
 under a permit program."
  Commenters also objected to
 combining warm and cold water aquatic
 animal production facilities and the
9,090 kilograms (approximately 20,000
pounds) of aquatic animals per year cut-

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              Federal Register  /Vol. 44.  No. Ill  / Thursday,  June 7,  1979 / Rules and Regulations       32871
 off. In response to these comments,
 aquatic animal production facilities are
 now differentiated in the regulations
 based on whether they produce warm or
 cold water species and the
 characteristics of the method of
 confinement. Warm and cold water
 production facilities are separated
 because of basic operational
 characteristics differences. Cold water
 aquatic animal production facilities,
 where concentrated feeding and
 continuous flow occur, discharge
 organic pollutants at a rate related to ,
 the amount of food fed and the total
 weight of the animals produced. Small
 facilities of this type, however, (such as
 "fishout" ponds and farm ponds)
 produce negligible amounts of pollution.
 For this reason a facility which produces
 less than 9,090 harvest weight kilograms
 (approximately 20,000 harvest weight
 pounds) of aquatic animals per year and
 feeds less than 2^72 kilograms
 (approximately 5,000 pounds) of food
 during the month of maximum feeding.
 is not required to have an NPDES permit
 unless so required on a case-by-case
 basis (see § 122.43(c)).
   In most cases warm water aquatic
 animal production facilities differ in
 construction and operation from cold
 water facilities. If the discharge from a
 warm water operation takes place for
 less than 30 days per year or only during
 periods  of excess runoff, no NPDES
 permit is required. Facilities which
 produce less than 45,454 harvest weight
 kilograms (approximately 100,000
 harvest  weight pounds) of warm water
 aquatic  animals per year are also
 exempted. The 45,454 kilogram figure
 will apply to warm water aquatic animal
 production facilities. If sufficient
 information is submitted to EPA to
 substantiate a higher figure, EPA will
 consider amending this section.
   Finally, EPA has deleted the non-
 native fish restriction found in proposed
 §  122.43(b)(l). Although this restriction
 was taken from the former regulations,
 an overwhelming number of commenters
 objected to the restriction  because of its
 indirect  effect on research, sport fishing,
 and fish  management and, generally,
 because  it exceeded EPA's statutory
 authority. Since EPA agrees that a
 native/non-native fish distinction bears
 little relation to the quality of the
 discharge, this distinction was deleted.

 § 122.45  Separate storm sewers.

   On February 4,1977, the EPA
 published a proposed rule to establish
 an NPDES general permit program for
 irrigation return flows and  separate
 storm sewers (see preamble discussion
of § 122.48 General Permit Program}.
 The February 4,1977 proposed definition
 of "separate storm sewer" was the same
 as defined in former 40 CFR § 125.52. In
 the August 21,1978 proposal, EPA
 redefined "separate storm sewer" to
 mean "a conveyance or system of
 conveyances (including but not limited
 to pipes, conduits, ditches and channels)
 primarily used for collecting and
 conveying storm water runoff." This
 definition differed from the February 4,
 1977 definition, in that the February 4,
 1977 proposal required the sewer to be
 located in an "urbanized area" or
 otherwise be found to be a significant
 contributor of pollution. The August 21,
 1978 proposal also introduced the
 concept of case-by-case designations of
 "concentrated" storm sewers and
 indicated that concentrated storm
 sewers require individual permits.
   In response to comments objecting to
 the case-by-case designation of      >
 concentrated separate storm sewers and
 the deletion of the "urbanized area"
 requirement for separate storm sewers,
 EPA has returned to the definition of
 separate storm sewer proposed in
 February 4,1977, i.e., the sewer must be
 located in an urbanized area to be a
 separate storm sewer and there will be
 no case-by-case designations of a
 different category of sewers known as
 "Concentrated" storm sewers. A
 conveyance or system of conveyances
 net located in an urbanized area, can, as
 proposed in the February 4,1977 rule, be
 designated a significant contributor of
 pollution and be considered a "separate
 storm sewer" subject to permit
 requirements. Likewise, under
 § 122.48(e) concerning general permits,
 the permit issuing authority can require
 that sources otherwise subject to a
 general permit obtain an individual
 permit. This case-by-casa designation is
 similar to the February 4,1977 proposal.
   A comment has also been added
 which indicates that the designation of
 separate storm sewer under this section
 has no bearing on whether the source is
 or is not a separate storm sewer for
 purposes of funding under Title II of the
 Act. This comment was added to
 prevent any possible confusion between
 these regulations and the Title II
 regulations.

 § 122.46  Silvicultural activities.

   Proposed § 122.46 restated the former
 definition of "silviculhiral point source"
 (40 CFR § 124.85(a) and § 125.54(a)) and
 introduced the concept of case-by-case
 designations of silvicultural activities as
point 3ources. Many commenters
objected to the case-by-case designation
of point sources arguing, among other
things, that such designations would
negate the section 208 planning process,
that the criteria for designations were
too vague and that the designation of
any additional silvicultural point
sources should be through rulemaking
procedures. EPA has considered these
comments and determined that the four
silvicultural point source activities
defined under § 122.46(a) (rock crushing,
gravel washing, log sorting, and log
storage) are sufficient under NPDES
because most water pollution from
forest management areas is non-point in
nature and hence not subject to NPDES.
EPA accordingly has deleted all
reference to case-by-case designation of
silvicultural point sources.

% 122.47  New sources and new         ;
dischargers.

   § 122.47 (a) and(b)—Two commenters
pointed out that proposed § 122.47 (a)
and (b) did not address the question of  .
whether a mobile drilling rig which      i
relocates  requires an EIS upon
relocation. The final regulations
continue to track the language of section
306(a)(5) of the Act which defines
construction to include "any placement,
assembly or installation of facilities and
equipment... at the premises where
such equipment will be used," without
interpreting this language in the context
of mobile drilling rigs. It should be noted
that at present, no new source
performance standards have been
promulgated for mobile drilling rigs;
thus, no mobile drilling rig may be
considered a new source at present. The
Agency intends to examine the EIS issue
at the time that it promulgates new
source performance standards for these
sources.
   § 122.47(c)—Several commenters
remarked that State-issued permits to
new sources  should require EIS's under
proposed  § 122.47(c)(l)(ii). Other
commenters disagreed. It is clear,
however,  that the issuance of a permit
by a State is not a major Federal Action.
Chesapeake Bay Foundation v. United
States (E.D. Va. June 28,1978).
Therefore, EPA has not changed this
statement.
  Several commenters objected to the
requirement in proposed § 122.47(c) (2)
and (3) that the Regional Administrator
must accept the EIS recommendations
and deny  or condition permits in
accordance with such  recommendations.
They argued that the EIS is only a
recommendation and that it is the
Regional Administrator's duty to
evaluate the recommendation and make
permit-related decision accordingly.
EPA agrees with the thrust of these
comments, and the regulation has been
redrafted to reflect them.

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  32872       Federal Register / Vol. 44, No. Ill / Thursday, June  7, 1979  / Rules  and Regulations
    Many commenters disagreed with the
  provision of proposed § 122.47{c) (4) and
  (5) which would bar construction prior
  to issuance of a permit or negative
  declaration. However, EPA believes that
  it is implicit in the requirement of
  section 511(c) of the Act and of the
  National Environmental Policy Act
  (NEPA) that the expected environmental
  impacts studied in the environmental
  impact assessment should not be
  allowed to proceed until that
  assessment has beerT concluded. This
  has consistently been the  Agency's
  position (see former 40 CFR § 6.908,
  published in 42 FR 2454 (January 11,
  1977)) and has recently been reinforced
  in NEPA regulations published by the
  Council on Environmental Quality (43
  FR 55478, November 29,1978).
  Therefore, the position is retained in
  these final regulations. It should be
  noted that subparagraph (c)(4) allows
  the Regional Administrator to approve
  construction prior to issuance of a
  permit or finding of no significant impact
  (i.e., a negative declaration) if he or she
  determines that such a finding will
  probably be made.
    § 122.47(d}—Several commenters
  pointed out under proposed
  § 122.47(d)(l)(ii) that construction often
  creates construction-related discharge
  and that the 10-year protection period
  for new source performance standards
  should not begin at the time of such
  discharges. Accordingly, the regulations
  have been modified to trigger the period
  at the time of discharge only hi the case
  of process or other non-construction
  related discharges.
   The interpretation of section 306(d]
  has been a vexing legal problem for EPA
 since the enactment of the  1972
 Amendments to the Clean  Water Act.
 That provision grants to a qualifying
 source meeting "all applicable
 standards of performance" a ten-year
 immunity  (or immunity during the period
 of amortization of pollution control
 facilities, if shorter) from "any more
 stringent standard of performance." The
 term "standard of performance" is
 defined in section 306(a)(l) in such a
 way as to make it clear that it refers
 only to new source performance
 standards  issued by the Administrator.
 Thus-the literal effect of section 306(d) is
 to give a new source a ten-year
 protection only from more stringent new
 source performance standards, and not
 from more stringent BAT, BPT, or BCT
 effluent limitations.
  Reading  this provision of the statute
literally would make it meaningless, a
result Congress could not have intended.
New source performance standards are
periodically revised to incorporate new
  designs and in-process changes which
  can only be incorporated into a new
  plant when it is first built. If the statute'
  is applied literally, after the protection
  period expires a new source would have
  to comply with any revised new source
  performance standards, some of which
  might be achievable only by a plant
  which was designed and constructed
  from the ground up  so as to meet them.
    On the other hand, reading  the term
  "standard of performance"  (in its second
  use in section 306(d)) to refer to all
  technology-based standards not only
  does violence to the language of the Act
  (by requiring the same statutory term to
  have two different meanings in the same
  sentence and by falling to track the
  definition in section 306(a)(lJ), but also_
  seriously interferes  with Congress'
  command in the 1977 Amendments that
  technology-based standards for toxic
  pollutants be expeditiously achieved.
   In the proposed regulations EPA
  sought to deal with these problems of
  interpretation by construing the
  protection afforded  by section 306(d) to
  apply only to "more stringent"
  technology-based effluent limitations
  controlling the same pollutants as are
  controlled by the applicable standards
  of performance. In other words, if the
  NSPS only limited pollutants A and B,
  EPA could later impose technology-
  based effluent limitations for pollutants
  D and E, but could not impose more
 stringent technology-based limitations
 on A and B.
   A number of commenters  objected to
 this proposal, arguing that section 306(d)
 should be read to afford, new sources
 protection against any additional
 requirements during the protection
 period. EPA agrees that the protection
 provided by the proposed regulations "
 should be broadened, although not to
 the extent suggested by the commenters.
 Accordingly, the Agency has invoked its
 rule-making authority under section
 501(a) of the Act to fashion an
 interpretation of section 306(d) that
 gives the greatest effect possible to the
 language of the statute hi light  of
 congressional purposes. This
 construction has two principal  features.
 First, it extends the protection afforded
 by section 306(d) not only to new source
 performance standards, but to all
 technology-based requirements under
 section 301 (BPT, BCT, and BAT).
 Second, the protection is not extended
 to toxic pollutants controlled by
 applicable BAT regulations, but not by
 the new source performance standards.
 (The proposed regulations would have
exempted from 10-year protection
conditions controlling any pollutants not
  controlled by the applicable new source
  performance standards.)
    In this way, EPA has sought to
  implement two conflicting congressional
  goals. On the one hand, new sources
  must be given some meaningful
  protection for ten years after  -  .
  construction. Section 306(d) should not
  be ignored. On the other hand, the
.  purpose of the new provisions of the Act
  controlling toxic pollutants must not be
  frustrated by allowing new sources
  which meet old new  source performance
  standards based on traditional
  pollutants such as BOD and suspended
  solids to escape application of BAT
  controls on toxic pollutants.
    A number of commenters suggested
  that the section 306(d) protection period
  apply to State water quality standards
  and other requirements not based on
—technology. EPA has not adopted these
  proposals because the term "standard of
 .performance" clearly refers to a
  technology-based standard. (See section
  306(a)(l) of the Act.)  Moreover, an
  earlier version of section 306(d) adopted
  by the House would have provided
  protection from any effluent limitation,
  whether technology-based or water-
  quality-based. (See FWPCA Legis. Hist.
  at 965-66.) But the version adopted by
  the conferees and ultimately enacted
  provided protection only from
  "standards of performance." The shift
  clearly indicated an intent to narrow the
  type of "standards" from which
  protection is granted.
   In response to comments objecting to
  the limitation of the protection period to
  pollutants actually controlled by the
  standard of performance,
  § 122.57(d)(2)(ii) allows imposition of a
 more stringent technology-based
 effluent limitation during the protection
 period only if it controls a toxic
 pollutant. This revision will allow the
 imposition of additional controls over
 pollutants which are neither hazardous
 nor toxic where such control has been
 specifically identified as necessary to
 indirectly control toxic pollutants. EPA's
 present strategy for controlling toxics
 will involve such indirect regulation in
 many instances. This  best
 accommodates the purposes of the 1977
 Clean Water Act amendments. Congress
 intended for EPA to shift its focus from
 the regulation of conventional pollutants
 to a new program for applying
 technology-based requirements to toxic
 pollutants. Under the Act as amended,
 toxic pollutants are treated separately
from less hazardous materials. Section
307{a), as amended in 1977, requires
EPA to establish for toxic chemicals
either effluent limitations based on the
301(b) criterion of best available

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              Federal Register /  Vol. 44,  No. Ill / Thursday,  June 7.  1979 / Rules and  Regulations       32873
  technology economically achievable, or
  a national standard under section 307(a)
  itself based on the toxicity of the
  substance and designed to provide an
  "ample margin of safety."
   The policy of Congress was clearly to
  control toxic chemical pollution as
  quickly and as effectively as possible.
  See CWA Legis. Hist. 427-29 (remarks of
  Senator Muskie). The addition of the
  new BAT standard for toxic pollutants
  was intended not to make toxic controls
  less effective than they would have been
  under section 307(a),  but to allow EPA to
  use the regulatory mechanisms of
  section 301(b) when they would be more
  efficient than those under section 307(a).
  In light of the expressed intent of
  Congress to expedite the control of toxic
  pollutants, EPA believes that the intent
  of the Act would be ill served by a
  policy of exempting classes of sources
  from compliance with toxic controls for
  ten years, where the Act can be
  interpreted not to provide such an
  exemption.
   Finally, the protection period will not
  extend to permit conditions controlling
  hazardous substances under section 311
  of the Act. This exception is intended to
  carry out the purposes of the 1978
  amendments to section 311 of the Act
  Those amendments excluded from
  control under section 311 discharges
  which are controlled by the permit
  system under section 402. The legislative
  history of that provision, though brief,
  shows that Congress intended for any
  exemption from section 311 to depend
 upon the availability of effective control
 under section 402 of the hazardous
 substance discharges. Thus, for
 example, Congressman Breaux, one of
 the sponsors of the 1978 amendments,
 said:
  At the present time many industrial point
 sources have section 402 permits which do
 not identify or provide for the regulation of
 designated hazardous substances. Section
 311(a)(2) would be amended to provide these
 sources a reasonable opportunity to identify
 the constituent elements of their effluent to
 develop treatment and management
 procedures and to apply for a new permit
 without being liable for section 311 penalties.
 Cong. Rec. (daily ed.) at 13599, October 14,
 1978.

  New sources should have this same
 opportunity to apply for a permit that
 reflects consideration  of hazardous
 substance discharges,  and these
 regulations now  accord that opportunity.
  Several commenters pointed out that
 under proposed § 122.47(d)(4) the
maximum of a 60-day "start-up" period
was insufficient for new sources to meet
all permit conditions. One example
given was the case of biological
 oxidation ponds in cold weather. As a
 result, the timejimit has been extended
 to 90 days.
 § 122.48  General permit program.
   On February 4,1977, EPA published a
 proposed rule (42 FR 5846) to establish
 an NPDES general permit program for
 irrigation return flows and separate
 storm sewers. The proposed rule arose
 out of the decision in NRDC v. Costle
 [Runoff Point Source), which denied
 EPA's authority to exclude certain point
 sources from the permit program. The
 general permit program outlined a
 system whereby similar activities in a
 given geographic area would be covered
' by a single general permit. The program
 was intended to provide administrative
 flexibility in dealing with numerous
 minor discharges subject to the same
 limitations.
   Approximately 40 comments were
 received on the proposed regulations
 during the overall comment period,
 ending April 1977. Many of these
 comments addressed problems
 associated with irrigation return flows.
 However,, after the proposal Congress
 excluded irrigation return flows from the
 permit requirements (see section 502(14)
 of the Act). Accordingly, EPA has
 exempted those discharges from both
 individual and general permit coverage,
 see § 122.4(a)(4).
   The August 21,1978 proposal reserved
 § 122.48 for the general permit program.
 Based on comments on the original
 general permit proposal and the August
 21,1978 proposal, EPA has made several
 revisions as noted below.
 .  First, as indicated in § 122.48(b), the
 general permit program is limited to
 certain types of point sources. While the
 original general permit proposal covered
 only separate storm sewers and
 irrigation return flows (now exempted),
 comments addressing the administrative
 flexibility of the approach have
 prompted us  to authorize the use of
 general permits for other categories of
 points sources with minor discharges
 located in the same geographic area. All
 draft general permits for other
 categories of points sources must be
 sent to the EPA Deputy Assistant
Administrator for Water Enforcement
for a 90-day review (see §§ 123.22,
124.32(a) and the Comment to
 § 122.48{a)(2)).
  Some commenters misinterpreted the
proposed regulations and though that
EPA was requiring States to use general
permits. It should be noted that the
general permit program is optional.
States (and EPA) retain the right to
require individual permits for any and
all point sources.
  A few commenters were confused as
 to the proposed timetable for
 establishment of a general permit
 program for separate storm sewers
 which varied depending on whether the
 permitting authority is a State or EPA. In
 response, EPA has decided to drop the
 deadline requirement for submitting a
 separate storm sewer general permit
 program. Since the requirements for
 State general permit programs have
 been placed in § 123.12, a more in-depth
 discussion of State requirement can be
 found in the preamble discussion of that
 section.
  The proposed general permit
 regulations listed geographic areas
 which may be appropriate for the
 issuance of  general permits to storm
 sewers, including political or
 geographical boundaries. Based on
 several comments, the final regulations
 have been revised to include boundaries
 designated by roads in a State highway
 system as a geographical area.
  Several commenters addresed the
 procedural aspects of general permit
 issuance established in the proposed
 regulations,'particularly, public notice.
 These issues are now covered under
 Part 124 and have been subject to
 renewed opportunity to comment in the
 August 21,1978 proposal. Although
 commenters felt the Agency should
 individually send notice to permittees
 covered by  a general permit, EPA
 believes that such system would be
 unwieldy and that Federal Register
 notice,  or other appropriate notice in the
 case of State issued general permits, is
 sufficient (see § 124.41(f)).
  The original February 4,1977
 proposed general permit terms and
 conditions have been deleted because
 they would be duplicative of the
 provisions in § 122.14 and § 122.15
 (permit terms and conditions). Since
 these sections are more detailed than
 the general permit proposal, they
 address the  concerns  of commenters
 that proposed general permit terms and
 conditions were vague and overbroad.
 Any concerns about unreasonable
 permit conditions are  adequately
 addressed by a discharger's right to
 request an individual  permit and then
 request a hearing under Part 124.
  Some commenters were confused
 about the  use of best management
 practices (BMPs) as general permit
 terms and conditions, including
 questions  on how best management
 practices would be developed. The use
 of BMPs for  separate storm sewers is of
particular importance  since "end-of-
pipe" effluent limitations may not be the
most appropriate means of control. As
indicated in  the preamble discussion of

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  32874       Federal Register  /  Vol. 44,  No. Ill  / Thursday, June 7, 1979  /  Rules and Regulations
  BMPs, they may be imposed in general
  permits under a variety of authorities.
  To summarize briefly, BMPs may be
  imposed in general (or individual)
  NPDES permits, where: uniform numeric
  effluent limitations are infeasible, in
  accordance with NRDC v. Costle
  (Runoff Point Sources); BMPs are
  mandated under section 304(e) of the
  Act to control toxic and hazardous
  pollutants from ancillary industrial
  activities; BMPs are "appropriate
  requirements" related to the
  achievement of effluent limitations,
  pursuant  to section 402(a)(2) of the Act;
  BMPs are a condition of State
  certification for an EPA-issued permit
  under section 401(d) of the Act; BMPs
  constitute a more stringent limitation
  established pursuant to State law or
  regulations under section 301(b)(l)(C) of
  the Act; BMPs are required pursuant to
  the National Environmental Policy Act,
  where an Environmental Impact
  Statement (EIS) has been prepared; and
  BMPs are necessary to assure
  consistency with a State water quality
  management plan pursuant to section
  208(e) of the Act. (See § 122.15{g).)
   A number of commenters noted some
  problems  with the provisions related to
  revocation of a general permit  and
  issuance of an individual permit to a
  particular discharger. As a result, the
  provisions have been redrafted, with
  several major changes in the final
  regulations. First, interested persons can
  request that a general permit be revoked
  and an individual permit required for a
 particular permittee. A permittee is
 adequately protected against arbitrary
 action in this regard under the
 procedural safeguards of Part 124.
 Second, rather than requiring general
 permit modification, the revocation of a
 general permit and the issuance of an
 individual permit now  automatically
 modifies the general permit's
 applicability to the individual permittee.
 Public notice and opportunity for
 comment on the modification of the
 general permit for this purpose  (i.e.,
 solely reflecting a change in covered
 permittees) is not necessary because
 public notice will be given of the new
 individual  permit for the permittee.
 Third, individual permittees can request
 to be covered by the general permit, and
 vice versa. In a related vein, a few
 commenters suggested  that a person
 covered by a general permit should be
 excluded from general permit coverage
 where an individual permit is requested,
 and left unpennitted pending a decision
 on the individual permit request. This
 suggestion has not been taken, since it
runs contrary to the pollution control
goals of the Act and EPA's policy on
  permit modification and revocation and
  reissuance.
    Finally, EPA has rejected some
  changes recommended by commenters
  as inconsistent with the Act's
  requirements, e.g., general permits may
  not be issued for terms which exceed
  five years, and section 208 water quality
  management agencies may not be
  designated as permitting authorities for
  general permits.
  ///.  Part 123—State Permit Program
  Requirements
    A. What Does This Part Do? Section
  304(i)* of the Act directs the
  Administrator to promulgate guidelines
  for State programs setting minimum
  requirements for State participation in
  the National Pollutant Discharge
  Elimination System (NPDES) permit
  program under sections 402, 318 and 405.
  Section 101(e) of the Act directs the
  Administrator to promulgate guidelines
  setting minimum requirements for public
  participation in the development,
  revision and enforcement of State
  programs approved pursuant to sections
  402 or 404. This Part contains the
  guidelines required by section 304(i) and
  101(e). In addition, this Part sets
  guidelines for State section 404 permit
  programs regulating discharges of
  dredged or fill material. The decision to
  include  section 404 permit programs in
  this Part is based on the very close
  parallel between the statutory      .  -
 requirements for the NPDES and section
 404 permit programs (e.g., compare
 section 402(b) with section 404(h)).
   This Part also specifies the process for
 EPA approval of State programs and for
 revision of State programs (including
 any revisions to existing State programs
 necessary to conform to the Clean
 Water Act of 1977). Guidelines for EPA
 overview of State programs, including
 the requirement for a Memorandum of .
 Agreement between the State and EPA,
 and the process for objection to
 proposed State NPDES permits are also
 incorporated into this Part
   Many  of the substantive requirements
 for the operation of the NPDES program,
 whether administered by a State or EPA,
 are contained in Parts 122,124 and 125.
 The provisions of those Parts are
 applicable to State programs only to the
 extent they are incorporated by
 reference into Part 123 (e.g., see
 § 123.12). Thus, if a provision of Part 122,
 124 or 125 is not cross-referenced in Part
  'The provisions of section 3O4 were redesignated
as a result of the Clear Water Act of 1977. What is
now designated section 304(i) was formerly section
304{h). Congress failed to make corresponding
changes to section 402. Cross references in section
402 to section 3(M(h) should, therefore, be read to
mean section 304(i).
 123 it is not directly applicable to State
 NPDES programs. For example, most of
 the requirements of Part 124 do not
 apply to States.
   A person reading Part 122,124 or 125
 should be able to determine from the
 context whether the particular provision
 is applicable to State administered
 programs. Nonetheless, if any doubt
 exists Part 123 should be consulted to
 determine whether or not States must
 conform to the particular requirement in
 question. Where an applicable provision
 of Part 122 incorporates requirements
 from elsewhere in this Chapter it
 becomes a State program requirement.
 For example, § 122.20 is made
 applicable to State programs under
 § 123.12 and requires that NPDES
. permits include monitoring
 requirements. Under  § 122.20{c) the
 testing done by permittees is required to
 conform to 40 CFR Part 136. Therefore,
 these Part 136 requirements are
 applicable to State programs.
   Additional operational requirements
 of State section 404 programs will be
 proposed in the near future as part of
 the "consolidated regulations". These
 will closely parallel the requirements of
 Parts 122 and 124 which  are applicable
 to State NPDES programs. Until the
 remaining requirements to State section
 404 programs are proposed. States
 should seek guidance from Parts 122 and
 124, from regulations promulgated by the
 Corps of Engineers and directly from
 EPA.
   The provisions of Part 123 (including
 the  applicable sections of Parts 122,124
 and 125) are minimum requirements and
 the States are free to impose more
 stringent requirements at any time.
Thus, in the final example of the
preceding paragraph,  the State is free to
ignore the EPA-promulgated effluent
guideline if it chooses to impose more
stringent effluent limitations than EPA
requires under 40 CFR Subchapter N.
   B. How Does This Part Relate to
Existing Regulations? Prior to the
promulgation of these regulations  the
operational requirements for State
NPDES programs were contained in
former Part 124 and former Part 105
(Public Participation). The process for
approval and revision of State programs
was developed and contained in EPA
policy memoranda and informational
communications. The approval and
revision process contained in this Part is
merely a codification of existing
requirements and does not represent —
any change in these processes.
  The  public participation guidelines of
Part 105 were recently replaced with a
revised set of guidelines under Part 25.
In doing this EPA decided to remove

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              Federal Register / Vol.  44. No. Ill / Thursday, June 7. 1979 / Rules  and Regulations       32875
 State permit programs from the coverage
 of Part 25 and to incorporate the
 applicable public participation
 requirements for State programs into
 Part 123. This was done so all  the major
 requirements for State programs are
 contained in one Part. In doing this EPA
 has incorporated most of the substantive
 provisions of Part 25: into Part  123 (in
 certain instances this is done by
 incorporation of applicable
 requirements of Part 124).
   Public participation in the permit
 issuance process, pursuant to the
 requirements of section 101(e)  of the
 Act, is fostered by the public notice
 requirement (§ 124.41), the statement of
 basis and fact sheet requirements
 (§ § 124.33 and 124.34), the public
 comment period and opportunity for
 hearing requirements (§ 124.42), and the
 response to comments section (§ 124.63),
 all of which are applicable to State
 NPDES programs.
   A basic element of Congress' concern
 for public participation is to make use of
 a concerned public in identifying
 possible noncompliance with permit
 requirements. To this end Part 123
 requires that all permit applications and
 all effluent data be made available to
 the public without restriction. All other
 information must be made available to
 the public unless shown to be
 confidential. (See § 124.131.) In addition.
 "quarterly noncompliance reports" and
 annual reports prepared under § 122.23
 must be made available to the  public.
 The availability of this data ensures that
 the public can monitor the performance
 of permittees.
   Additionally, the regulations attempt
 to assure that possible violations
 identified by the public will be acted
 upon by the State. Section 123.31
 requires that States establish programs
 to receive and review all evidence
 submitted by the public.
   Finally, citizens have a right  to
 directly initiate enforcement actions in
 Federal court pursuant to section 505  of
 the Act. That section also provides that
 citizens may intervene as a matter of
 right in any action in Federal court and,
 in many cases, recover attorney's fees,
   C. How Does This Part Relate to the
 August 21.1978 Proposal?The following
 is a discussion of the significant ,
 comments received and changes made
 to the August 21,1978 proposal. Editorial
 changes have been made to all  sections
 and are not discussed. There has also
 been  a renumbering of the Part  123
sections. There are now fewer sections
in Part 123 because a large number of
the proposed sections were condensed
into § 123.12.
 § 123.1  Purpose and scope.

   Many comments suggested EPA
 should be allowed to complete the
 permit issuance process, after approving
 a State program, for those permits "in
 the pipeline" at the time of program
 approval. While this approach has merit
 it cannot be adopted because section
 402(c) of the act precludes permit
 issuance by EPA after the date of
 approval of a State program. See
 Central Hudson Gas and Electric Corp.
 v. EPA, 587 F.2d 549 (2nd Cir. 1978).
 However, EPA will endeavor to avoid
 these problems, to the extent possible,
 whenever the transfer of program
 authority is pending.
   In an effort to clarify the status of
 Federally issued permits after program
 approval a new paragraph has been
 added, §123.1(d). It provides that EPA or
 the Corps (in the case of section 404
 programs) retains jurisdiction over
 Federally issued permits for all purposes
 until they expire, unless arrangements
 are made with the State for the State to
 assume responsibility for administering
 permits issued by the Federal
 Government. This retention  of
 jurisdiction may be extended beyond
 the expiration date of the permit, with
 the agreement of the State, for the
 purpose of resolving an ongoing issue,
 such as an adjudicatory hearing or
 permit modification request.
   Many commenters opposed the
 provisions in § 123.1 and § 123.62
 (proposed § 123.102) which link the
 permit programs under sections 318
 (aquaculture) and 405(a) (disposal of
 sewage sludge) to the section 402 permit
 program. These comments suggested
 that such a linkage is not authorized by
 law and would impose an additional
 burden on NPDES States. However, the
 Clean Water Act of 1977 specifically
 amended section 318 and 405 to provide
 that permits issued under these sections
 are NPDES permits. In light of the
 prohibition against partial program
 approval requiring that all elements of
 the NPDES program be administered by
 the State, State programs must now
 include the activities specified in
 sections 405  and 318.
  To avoid any confusion, the language
.in § 123.1 and §  123.62 has been
 clarified. A preliminary review of State
 programs indicates that  most existing
 NPDES States have adequate authority
 to control the discharges specified in
 sections 318 and 405(a). Therefore, the
 requirement that States have authority
 for controlling these discharges should
 not impose an additional burden. EPA
 will assume that existing State programs
 have the necessary authority and are
authorized to implement sections 318
and 405(a). Any State which lacks
authority should contact EPA and take
whatever action is necessary to modify
its program to conform.
   Another new provision has been
added to this section (§ 123.1(f)) which
specifies that the public participation
guidelines of section 101(e) are now
incorporated into Part 123.
§  123.2  Definitions.
   Four new definitions have been
added, i.e., "draft permit," "proposed
permit," "Memorandum of Agreement,"
and "State/EPA Agreement." These
definitions conform to existing practice
and do not represent any new or
changed requirement.
   A draft permit is the document
prepared by the Director after   -
tentatively determining to issue a permit
to an applicant. This draft permit is then
put on public notice and circulated in
accordance with the applicable sections
of Part 124. A fact sheet on the draft
permit may be required. A statement of
basis is required whenever a fact sheet
is not prepared.
   After the close of the comment period.
the Director analyzes all the information
submitted on the draft permit and
arrives at a final determination to issue
a  specific document as a final permit.
Where EPA has not waived the right to
review the permit, this final
determination is subject to EPA review
in accordance with § 123.23 before it can
become finally effective. The State
Director's final determination is sent to
EPA as a "proposed permit" in
accordance with the Memorandum of
Agreement. The  State Director may
issue the proposed permit as soon as
EPA concurs with the proposed permit,
or the time for EPA review expires. No
proposed permit is required under these
regulations whenever EPA has waived
its right to review (See § § 123.23 and
123.7).
   The definitions of Memorandum of
Agreement and State/EPA Agreement
were  added to provide clarity. There
were  several comments questioning the
relationship between these two
documents. See the preamble discussion
of § 123.7 for a discussion of this
relationship.

§123.3  Elements of a program
submission.

  A new section (§ 123.3) has been
added to clarify and identify all
requirements of a program submission in
one section. With respect to State
program forms, EPA is now more
specific as to which State forms it will
review (i.e., the permit form and the

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  '32876      Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979 / Rules and Regulations
   permit application form(s)). States will
.   be required to use a standard Discharge
   Monitoring Report (DMR) form
   developed by EPA. These forms will be
   printed by EPA and supplied to States
   on request. States may, however,
   substitute their State Agency's name,
   address, logo, and other similar material
   for EPA's on the forms. They are
   designed to be read and analyzed by
   computer. EPA will supply the computer
   software associated with the
   standardized DMR to States as
   requested.
     The use of standard national forms is
   specifically provided for in the Act
   (section 304(i)) and enhances EPA's
   ability to assure a degree of national
   uniformity of the program. Many
   comments were received from national
   companies requesting EPA to
   standardize all forms. However, the
   Agency believes that DMRs are the only
   forms which should be standardized
   now.

   § 123.4  Program description.

    Several comments were received on
   proposed § 123.3 objecting to the
   prohibition against allowing more than
   one State agency to issue section 404
   permits. Most of these comments
   suggested that this is inconsistent with
   the efforts of several States to provide
   "one-stop" permitting authorities
   covering certain activities (e.g., power
  plant siting councils). EPA disagrees
  with these comments and believes that
  it is important to have this permitting
  authority in one State Agency.

  § 123.5  Memorandum of Agreement
  with  Secretary for section 404 programs.

    This requirement was proposed as
  § 123.3(b) (the program description
  section) but has been made into a
  separate section for clarity. Some of the
  proposed requirements of this section
  have  been eliminated or modified in
  response to comments. For example,
  joint processing agreements, while
  encouraged, are not required. Likewise,
  the State need not await the completion
  of a environmental impact statement by
  the Corps before permit issuance. The
  most important feature of this -
  Memorandum of Agreement (MOA) is in
  paragraph (a) and remains unchanged.
  This requires a delineation of section
  404 permitting responsibilities  for waters
  of the State consistent with section
 404(g)(l) of the Act.

  § 123.6  Attorney General's Statement.

   Section 402(b) of the Act requires that
 the State Attorney General certify that
 the State have adequate legal authority
 to implement the requirements of the
  NPDES program. Where the State
  program has independent legal counsel,
  such counsel may submit  the statement
  in lieu of the State Attorney General. To
  qualify as "independent legal counsel"
  the attorney representing  the State
  agency must have authority to
  independently represent the State
  agency in court on all matters pertaining
  to the State program.
   Many comments indicated that the
  requirements of proposed § 123.4(c)
  were confusing insofar as that
  paragraph listed a number of sections of
  Part 123 which, in turn, cross-referenced
  sections of Parts 122 and 124 as being
  applicable to State programs. In order to
  eliminate this confusion, the sections of
  Part 123 which merely served to cross-
  reference sections of Part  122 and 124
  have been consolidated in a new
  § 123.12 (see discussion below]. Section
  123.6(c) is now phrased to require a
  certification that the State has authority
  to implement the requirements of Part
  123. EPA will continue its past practice
  of supplying States with a model
  Attorney General's Statement format
   While EPA has a legal duty to
  independently review State authorities,
  the Attorney General's Statement is
  given great weight in interpreting the
  requirements of State law.

  § 123.7  Memorandum of Agreement
  with the Regional Administrator (MOA).
   The provision on scope of EPA waiver
  of review (proposed  § 123.5.(b)) drew
 the most comments on this section and
 has be modified. The language in the
 regulations as proposed was based on
 existing Agency policy on  waiver and,
 therefore, reflected what is presently
 found in MOA's with the NPDES States.
 As written, the provision on waivers
 broadens the scope of waivers
 available. This waiver of review is now
 very broad for non-process wastewater
 discharges; however, in some instances
 such a waiver is possible only with the
 prior approval of the  EPA Deputy
 Assistant Administrator for Water
 Enforcement On the  other  hand, EPA
 will not waive review of any general
 permits proposed by  the State. The
 waiver provisions of  this section only
 specify the maximum waiver available,
 and in some instances EPA may choose
 not to extend this maximum waiver to a
 State. This is particularly true for a State
 with a new program where EPA
 oversight is critical until the program
 becomes established  and experienced.
  The entire paragraph on the contents
 of the MOA (proposed § 123.5(c)) has
been reorganized to reflect  a more
functional arrangement The  '
requirement that the agreement be
 reviewed and revised every three years'
 (proposed § 123.5(b)) has been deleted
 on the basis of many comments
 suggesting tiiat it was unnecessarily
 mechanical. Instead, MOA's should be
 reviewed and revised as necessary to
 reflect programmatic changes.
   Relationship between Memorandum
 of Agreement and State/EPA
 Agreement. The State/EPA Agreement -
 is an overall management tool which
 provides a way for the Regional
 Administrator and the State to
 coordinate and, to the maximum extent
 feasible, integrate programs
 administered by EPA and the State,
 emphasizing problem-solving
 approaches to specific environmental
 problems. The State/EPA Agreement
 reflects important decisions on
 environmental priorities, administrative
 problems, timing, responsibilities and
 allocation of resources. In FY1980, the
 State/EPA agreement is to cover
 programs under the Clean Water Act
 Safe Drinking Water Act, and Resource
 Conservation and Recovery Act. Other
 environmental programs will be added
 to the process in following years.
   The Memorandum of Agreement is a
 document signed by the Administrator
 and the State which formally sets forth  ,
 the relationship between EPA and the
 State in the administration of an
 approved State permit program and
 details specific procedures that must be
 followed by both parties in the
 development, issuance, review, and
 enforcement of permits. The
 Memorandum of Agreement is the legal -
 basis upon which EPA predicates its
 continuing decision that State-issued •
 permits are consistent with the
 requirements of the Clean Water Act
 and implementing regulations. Because
 of this, any proposed change to an MOA
 must be reviewed and approved by the
 Administrator to assure it is consistent
 with the requirements of Part 123.
   The Memorandum of Agreement and
 the State/EPA Agreement should be
 consistent This should not present a
 problem since  they generally address
 different areas of the State/EPA NPDES
 relationship. The State/EPA Agreement
 should include the MOA, However, it
 may not override it in the instance of
 any inconsistency. If the State/EPA
 Agreement indicates that a change is
 needed in the MOA, the proposed
 change must be reviewed and decided
 by the Administrator.

 § 123.8  Sharing of information.

  Many commenters raised concerns
about the treatment of confidential
information submitted to EPA or an
NPDES State, particularly when the two

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               Federal Register / Vol. 44, No. Ill / Thursday, June 7.  1979 / Rules and Regulations      32877
/   agencies share information. For
   example, when a State NPDES program
   is approved EPA gives the State the
   information in its files, A new 1123.8
   has been added to specify how
   confidential information is treated under
   these circumstances. Persons interested
   in this area should consult 40 CFR Part 2
   which is also applicable.
   § 123.11 Requirement to obtain a
   permit.   '           1
     Proposed § 123.11[c), which specified
   which State has permit issuing authority
   for discharges into waters which form
   the boundary line between States, has
   been dropped.
   § 123.12  Operational requirements.
     This is a new section which combines
   the requirements of proposed §§ 123.24.
   123.21,123.41.123.42,123.43,123.44,
   123.51.123.52. and 123.61. Each of the
   proposed sections cross-referenced
   provisions of Parts 122,124 and 125 as
   being applicable to State-programs.
   Comments pointed out that this resulted
   in a great deal of confusion in under-
   standing what is required of a State.
   Section 123.12 now combines, in a single
   section, all the cross-references. In
   addition, a person reading Parts 122,124
   or 125 should be able to determine, from
   the context, whether a particular section
   is applicable to State programs. In case
   of any doubt, however, § 123.12 is
   controlling.
    It should be noted that, while al! the
   provisions of § 123.12 are applicable to
   State programs. States need not have
   detailed State regulations on each
   provision. For example, as long as a
   State has adequate legal authority to
   implement § 123.22 (which indicates
   how information is submitted to EPA)
   and acts in accordance with § 123.22, it
   need not have a regulation which
   duplicates the Federal requirement.
   Again, States are always free to impose
   more stringent requirements than are
   included in these regulations.
    § 123.12(a)(14}—-This section allows
   States  to operate a general permit
   program. This section greatly modifies
   and simplifies the requirements for State
   general permit programs which were
   proposed at 42 FR 6846 {February 4.
   1977); see preamble discussion of
   § 122.48. Of course, operating  a general
   permit program is strictly optional. A
   State may choose to require individual
  permits in all cases. If a State chooses to
  issue general permits it is subject to the
  provisions of 1123,12(a)(14). This
  specifies that such permits shall be
  issued in accordance with § 122.43. and
  that they are subject to a full 90-day
  EPA review, including review  by EPA
Headquarters for all proposed general
permits other than those tor separate
storm sewers.
§ 123.13  Control of disposal of
pollutants into wells.
  The requirement of this section was
proposed in 1122.41(a) but was moved
to § 123.13 since it is applicable only to
State programs. Some commenters
questioned EPA's authority to require
States to control well disposal by
permit Section 402(b)(l)(D) of the Act
specifically requires States to have this
authority, although EPA lacks similar
authority under the Act. See Exxon
Corp. v. Train, 554 F.2d 1310 (5th Cir.
1977). NPDES1 States are urged to use the
authority required by this section in
developing and implementing an under-
ground injection control program
required under the Safe Drinking Water
Act. The requirements of these two Acts
are consistent and complementary. State
UIC program regulations will be
promulgated as part of EPA's
consolidated regulations.
  The requirement of § 122.41, that
permit conditions for surface discharges
be adjusted where a portion of the
permittee's effluent is discharged under-
ground, into a POTW or by land
application, remains applicable to
States.

§ 123.22   Transmission of information
to EPA.

  This section was proposed as § 123.23.
Several commenters felt that EPA
should provide the permit applicant with
a copy of any comment, objection, or
recommendation respecting a proposed
State permit. EPA agrees and has
incorporated such a requirement into
§ 123.22(a).

5 123.23   Objections to proposed
NPDES permits.

  The requirements of this section were
not included in the August proposal
(Part 124, Subpart L was reserved for
these requirements) but were included
as a portion of the regulations
promulgated at 43 FR 22160-22164, (May
23,1978). EPA believes that the portion  -
of those regulations dealing with EPA
objection to State permits belongs in
Part 123 where the other requirements
for State programs are contained.
Therefore, they will not be included in
Subpart L to Part 124. In transferring the
objection regulations into 1123.23, no
substantive changes were made.
  Reviewability of Objections. Although
the Agency has not sought comment on
the incorporation of the objection
regulations into Part 123, and issue
associated with these regulations^ the
availability of administrative and
judicial review of EPA's decision to
object to a permit
  An EPA objection is, in essence, a
determination that certain conditions
which are not included in a proposed
State permit are necessary to cany out
the requirements of the Clean Water
Act Section 402(d)(2) of the Act requires
the Administrator, when he objects to
the issuance of a permit, to state the
reasons and to set forth the effluent
limitations and conditions which the
permit would include if it were issued
by the Administrator. If the State fails to
submit a revised permit (after any EPA
hearing on the objection), the
Administrator may issue the permit. All
determinations underlying the objection
are then subject to Agency review in
accordance with Part 124 of these
regulations. Under those regulations,
contested provisions of the permit are
stayed during Agency review. Thus,
EPA's determinations do not affect the
discharger until the administrative
process is at an end and a final permit is
issued.
  Where EPA objected to a permit prior
to the 1977 amendments to the Act. the
Act made no provision for further action
by EPA. The objection to the permit was
the final Agency action, and the Act
prohibited the State from issuing the
permit objected to. In these
circumstances, the Agency took the
position that the objection was
reviewable in the Court of Appeals as
the Agency's action in "denying any
permit" under section 509(b) of the Act
In general, the courts agreed; See,
Republic Steel Corp. v. Cos tie. 581 F.2d
1228 (6th Cir. 1978); Ford Motor
Company v. EPA, 567 F.2d 661  (6th Cir.
1977); Mianus River Preservation
Committee v. Administrator, EPA, 541
F.2d 899 (2nd Cir. 1976); but see.
Washington v. EPA. 573 F.2d 583 (9th
Cir. 1978).
  This resulted in a situation which the
Senate Report on the 1977 amendments
described as the:
  Impasse which may result when the
Administrator objects to the issuance of a
permit which is contrary to the provisions of
the Act and the State is unwilling to issue a
permit to the point source which is consistent
with the provisions of the Act Under the
present Act neither EPA nor the State may
issue a valid permit in these circumstances.
[CWA Legis. Hist. Vol. 4 at 706.]

  Accordingly, the Congress amended
the Act to allow EPA to issue the permit
after an objection. The Senate
Committee report criticized EPA as
having been "much too hesitant" to take
actions to object too State permits, and
called for a "vigorous overview of State

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  32878       Federal Register /Vol. 44. No. Ill / Thursday, June 7, 1979  /  Rules and Regulations
  programs to assure uniformity and
  consistency of permit requirements and
  of the enforcement of violations of
  permit conditions." Id.
    The theme of the Senate Report—that
  the objection was an expeditious
  mechanism to avoid delays in permit
  issuance and resolve disputes between
  the States and EPA—was echoed in the
  Conference Report on Pub. L. 95-217,
  which said:
    After the date of enactment of this
  provision the Administrator is expected to
  use the authority given by this amendment to
  issue a permit after objection to a State
  issued permit. Thus any litigation over the
  degree of effluent reduction required for a
  source should take place in the context of
  judicial review of the permit rather than in
  the context of an enforcement action. *. *.-*.
    Judicial review arising out of this provision
  would be in the same manner as judicial
  review of any EPA issued 402 permit. [
  Legis. Hist.. Vol. 3 at 281.]

    This passage clearly indicates that
  EPA permit issuance under section 402
  is the only reviewable action associated
  with an EPA objection. The objection is
  an interlocutory decision,  one which has
  no effect on the applicant  and other
  interested persons except  to shift the
  forum for hearings and review. Thus,
  Congress thought judicial review of the
  permit was the appropriate place to
  review EPA's determinations. Several
  other factors militate in favor of this
  view:
    1. The  availability of administrative
  review and-the stay provision hi EPA's
  permit issuance regulations means that
  EPA's objection determination has no.
  effect on the discharger. In such cases,
  review is properly delayed until Agency
  action is  final and effective. See Toilet
  Goods Association v. Gardner, 387 U.S.
  158,165 (1967).            .
   2. Judicial review of an Agency
 objection prior to final permit issuance
 would unnecessarily bifurcate the
 judicial review proceedings and delay
 final Agency action. Review of the
 objection could consume months or even
 years. Permit issuance, appeals, and
 judicial review of the permit could
 consume  additional months or years.
  3. The short time period for Agency
 action precludes the sort of record
 building by EPA which is a- normal
 prerequisite of effective judicial review. v
 See American Iron and Steel Institute v.
EPA,  543 F.2d 521 (3rd Cir. 1976}.

 § 123.31   Compliance evaluation
programs.

  This section, which was proposed
§ 123.71, was refilled and slightly
condensed. A few new requirements
were included based on existing Agency
  policy. In particular, this section now
  requires that the State enforcement
  program have procedures and ability to
  receive citizen complaints about
  possible program violations and to
  ensure that these complaints are
  adequately considered. This
  requirement was included in the public
  participation regulations of former Part
  105 and as proposed in Part 25. In order
  to include all the public participation
  requirements for State programs in Part
  123, this requirement was moved from
  Part 25. EPA believe? that this is an
  important aspect of involving the public
  hi enforcement as mandated by section
  § 723.32 Enforcement.  .

   Proposed as § 123.72, this section
  drew many comments. However, most
  of the provisions of § 123.32 are
  identical to the requirements of the 1973
  regulations (former § 124.73). EPA has
  not changed these provisions, although
  minor wording changes have been made
  for clarification. The new element of
" § 123.32 (proposed § 123.72(i)) is the
  addition of a penalty policy provision
  requiring States to calculate civil
  penalties for deadline violations using
  specified criteria. This requirement
  generated a great deal of confusion.
  Many commenters feared that States
  would be required to implement all
  aspects of EPA's penalty policy
  including use of the penalty panel and
  EPA's computer programs. While States
  are strongly encouraged to use these,  •-
  § 123.32(i) only requires States to
 employ the basic precepts of the penalty
 policy. It allows States to exercise
 substantial discretion in settling civil
 enforcement cases. No* change was
 made to the proposed version.
   Another new provision, § 123.32(h)(2),
 has been added to clarify that State
 enforcement proceedings may not
 include additional elements of proof or
 mental state for establishing violations.
 EPA's approach has consistently been to
 require States to have the same
 enforcement remedies that are available
 to EPA. In exercising this enforcement
 authority, States should not have any
 additional elements of proof or other
 legal requirements which make State
 imposition of penalties more difficult
than EPA action.        <
  A vailability of Resources. — Proposed
 § 123.81.  Part of this proposed section
has been deleted and part has been
moved into § 123.4 (Program
description). Proposed § 123.81 (b)
(identifying criteria for EPA evaluation
of State resources) was deleted entirely
because these criteria are matters
relating to internal EPA review and do
 not need to be promulgated in the form
 of regulations. Nonetheless, EPA does
 require that sufficient resources be
 devoted to State programs. Proposed
 § 123.81 (a) has been incorporated into
 §123.4.

 § 123,42 .Agency board membership.

   Proposed § 123.83 on Agency board
 membership drew a very large number
 of comments, most of which argued that
 it was too stringent. Nonetheless, since
 § 123.42 is identical to former f 124.94
 and is clearly mandated by section
 304(i)(2)(D) of the Act, no changes have
 been made.                 ,

 § 123.51 and § 123.52  Section 402 and
 404 approval process.

   The approval process sections
 (proposed § § 123.91 and 123.92) have
 been clarified and made more specific.
 The changes are consistent with the
 process EPA has routinely employed in
 these matters. Requirements from the
 proposed public participation ]_         >
 regulations (e.g., the need for EPA to
 prepare a responsiveness summary)
 have been added.

 § 123.61  Procedure for revision of State
 permit programs.          '    -

   The procedures for State program .
 revision have been clarified and include
 a new requirement that EPA publish
 notice of any action substantially
 modifying a State program. Proposed
 § 123.103 was inserted into § 123.61.

 § 123.62  NPDESprogranTrevisions
 under the CWA of1977.

   A large number of comments were
 received on the dates specified hi v
 proposed § 123.102(c) for modifications
 to State programs implementing the  1977
 amendments. These dates have been
 adjusted to be more realistic. Proposed
 § 123.102(a) was deleted because it
 contained only optional changes. States
 are still free to make these changes..

 IV. Part 124—Procedures for
 Decisionmaking Regarding National
 Pollutant Discharge Elimination System
 Permits

  A. What Does This Part Do? Part 124
 establishes the procedures which-EPA
 will use for receiving permit
 applications, writing draft permits, and
 soliciting public comment on them. It
 also establishes the procedures which
EPA will follow in issuing final permits
and holding evidentiary and panel
hearings. A number of provisions of this
Part are applicable to approved States
through incorporation by reference in
§ 123.12.

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              Federal Register / Vol. 44. No. Ill  / Thursday.  June 7. 1979 / Rules and Regulations       32879
    E. How Does This Part Relate To
  Existing Regulations? In most cases, this
  Part wifl not change the general
  framework of the former regulations
-  covering permit determinations.
  Applications for permits win still be
  filed with the appropriate permit issuing
  authority; draft permits will be prepared
  and made available for,eomment. After
  comments have been received and
  analyzed, any necessary changes will be
  made by the permit issuing authority,
  and a final permit will be issued. Any
  interested person will then be able to
  request an evidentiary hearing on any
  factual issues involved.
    However, significant changes have
  been made in the procedures for
  variances, modifications, and other
  permit  actions besides the basic
  issuance of a permit: In the degree to
  which permit decisions are documented
  before an evidentiary hearing begins; in
  the relationship of prior administrative
  proceedings to any evidentiary hearing;
  and in the hearing procedures for "initial
  licensing". Each of these points, all of
  which were the subject of comments,
  are explained in the following sections.
    C. Haw Does This Part Relate To The
  August 21,1978Proposed Regulations?
  The following is a discussion of the
  significant comments received and the
  basis for revisions made to Part 124 of
  the proposed regulations, including the
  integration of the section 301(h)
  procedures into Part 124 (section 3W(h)
  procedures were proposed separately on
  April 25,1978, 43 FR 17484J. Minor
  editorial changes have been made in all
  sections.
  §124.1  Purpose and scope.

    A number of comments inquired
  whether denials of a permit would be
  subject  to the same rights of public
  comment and potential evidentiary
  hearing as other permit actions. The
  answer is "yes" and a new section has
  been added to make this clear (§ 124.15).
  A denial of a permit could be based on,
  among other things,  the discharger not
  complying with the requirements of Part
  122, Subpart B.
  § 124.11  Applications.

   This section has been modified by
 moving proposed § 124.11 (b) and (c)
 into § 122.1CX Proposed § 122.17.
 "Requests for additional information"
 has been made part of this section.

 § 124.12 Special provisions for
 applications from new sources.
   [I] This section allows the Regional
 Administrator to delay a hearing on a
 new source determination until the
 hearing on the final permit. Some  ,
 commenters objected to such a delay.
 arguing that it could result in an
 Environmental Impact Statement (EIS)
 being written before the discharger had
 an opportunity to argue on appeal that
 the discharge was not a "new source."
   The Agency believes the proposed
 approach is efficient. Hearings on a new
 source determination and permit terms
 will often involve common issues and
 witnesses. In such cases, the Regional
 Administrator should have the option of
 either bifurcating the hearing or waiting
 until after a final permit is written to
 hear all the issues. The choice will
 depend on which option would consume
 the least resources and time. Since EPA
 is legally responsible for preparing the
 EIS, EPA will share the burden of
 making a wrong decision.
   (2) Some comments claimed the EPA
 "lacked authority to restrict the
 construction of new sources pending
 National Environmental Policy Act
 (NEPA) environmental review, arguing
 that the Agency may regulate only
 discharges and has no power to regulate
 construction of sources.
   While it is true that EPA lacks
 authority to regulate construction which
 will not result in a discharge of
 pollutants, EPA has an obligation under
 NEPA to consider alternatives to the
 proposed action where a permit
 issuance would necessarily involve a
 discharge. Judicial decisions under
 NEPA have made it clear the EPA must
 consider reasonable alternatives, and
 that the alternatives (where a new
 source is involved) must always include
 not permitting the source. Where a
 source's operation necessarily results in
 a discharge, denial of an NPDES permit
 is tantamount to denial of the right to
 construct the facility. Thus, in such
 cases, EPA cannot fully consider such
 environmental matters as land use, air
 quality degradation, solid waste
 disposal problems, and others, without
 consideration of alternatives which
 involve no construction at the selected
 site. Since construction of the  facility
 could limit or eliminate some of the
 options which should be considered,
 EPA has the authority to require that
 NEPA review be completed prior to
 actual construction. For a complete
 discussion of this issue, see EPA
 General Counsel Opinions. "Water
 Pollution" at 31O-311 (NILS 1979).

Proposed § 124.13  Information required
for thermal discharge modifications.

  This section, which was essentially
substantive requirements for thermal
discharges, has been incorporated into
Part 125, Subpart H.
§ 124.13  Modification, revocation and
reissuance requests.

  Several persons urged that it would be
inefficient in processing modification
requests to require (as proposed in
1124.15) submission first of a request to
apply for a modification and then of the
application itself. EPA agrees and has
revised this section to state that the
modification can be based on the initial
request itself unless more information is
needed.
  The proposed regulations also
intended to put modification requests
and variance applications on the same
procedural "track" as other permit
applications. They did this by requiring
those seeking a modification to write to
EPA and request permission to apply for
a new permit. If the request was
granted, an application could then be
filed and would be processed like any
other application. This basic approach
has been retained in the final
regulations.
  Suggestions for an automatic right to a
hearing when permit  modification
requests are denied, have been rejected.
Departures from the five year cycle of
permit issuance and reexamination laid
down by section 402(b)(l)(B) of the Act
should not be encouraged. If
encouraged, they could keep numerous
permits in a state of perpetual
reexamination to the  detriment of the
water pollution control program. By the
same token, the regulation has been
amended to make clear that even
modification requests which are granted
only reopen  the permit to a limited
extent.

§ 124.14  Permits required on a case-by-
case basis.

  This section (proposed § 124.16)
provides that sources which in the
normal course are subject to a general
permit program under § 122.48, may be
required to apply for an individual
permit in certain cases. Comments
urging that an evidentiary hearing be
afforded before requiring individual
permit application have not been
accepted. To allow this would produce
long delays and a potential for two
consecutive evidentiary hearings on
closely related issues. Instead, the
question whether an individual permit
should be required at all will be open to
full reconsideration as part of the
deliberations on the potential terms of
any such permit.

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  32880      Federal Register / Vol.  44, No. Ill / Thursday, June 7, 1979 / Rules and Regulations
   § 124.21-24  State certification.
    (a) State certification under section
   401 of the Act was also the subject of
   numerous comments.'
    (1) Many commenters objected to the
   delays caused by the State certification
-  process in the NPDES program.
   Specifically they thought that the
   provision in the proposal for potentially
   allowing a State one year to certify was
   unconscionable. In response to those
   comments the regulations have been
   modified so that the right to certify will
   be deemed waived unless exercised
   within a specified reasonable time
   which shall not exceed 60 days unless
   the Regional Administrator finds that
   unusual circumstances require a longer
   time.
    Because of some ambiguity in the
   certification provisions concerning the
  role of State certification in the EPA
  permit issuance process, the
  certification provisions were amended
  so as to set out a realistic, workable
  procedure consistent with the statute. A
  State will now be required to identify
  those provisions which it finds
  necessary to comply with applicable
  State or Federal law. However, since
  certification as to  Federal requirements
  would duplicate EPA's work, EPA
  expects  that ordinarily States will limit
  their certifications to requirements of
  State law.
    Some problems have resulted from the
  practice of certifying draft permits,
  which practice has arisen from the
  practical difficulties of certifying
  applications. In particular, certifications
  have not always clearly stated exactly
  what conditions are necessary to
  comply with State law, and whether less
  stringent conditions would also satisfy
  State law. The final regulations remedy
  these problems by requiring States to set
  forth in all cases the minimum terms and
  conditions which will be necessary to
  comply with applicable law. For
  example, if a State certifies a permit
  with an effluent limitation imposing a
  daily maximum BOD of 25 mg/1, it will
  be required to identify also a ceiling
 representing the minimum level of
 control, such as 30  mg/1 or 40 mg/1,
 which the State finds necessary to
 comply with State law. In responding to
 public comments, or in an evidentiary
  1 EPA recognizes that the former regulations in 40
 CFR Part 123 are in need of revision. The "substance
 of these regulations predates the 1972 amendments
 to the Clean Water Act and has never been
 updated. However, because of the impact of State
 certification of non-NPDES permits on a myriad of
 Federal programs, it will be necessary to consult
 with the affected agencies in some detail before
 changes are made. Meanwhile, the current
 certification requirements for Federally issued non-
 NPDES permits or licenses have been moved from
 Part 123 to Part 121.
  hearing,'EPA will be barred from
  considering any effluent limitation less
  stringent than the "ceiling" set by the
  State in its certification.
    If the State fails to provide the
  "ceiling" required by these rules, EPA
  will be free to consider any changes
  which it finds appropriate during the
  subsequent permit review process. Of
  course, the Agency has an independent
  obligation to include hi permits effluent
  limitations which are necessary to
  comply with State law, including water
  quality standards, whether or not the
  State has certified. See Decision of the
  General Counsel No. 58.
    While EPA recognizes the burden that
  this procedure imposes upon States, the
  only logical alternative is unacceptable
  as a practical matter, that is continual
  resubmission to the State for
  recertification each time a draft permit
  is made less stringent as a result of
  public review during the permit issuance
  process.
    (2) Changes have been made to" allow
  EPA to modify a permit under certain
  circumstances if a State changes its
  certification during the EPA permit
  review process. The modified
  certification must be based upon
  changes in State law or upon a State
  court decision. Moreover, if a permit is
  final before the modified certification is
  received, it will be modified only to
  delete provisions resulting from a
  certification found invalid by a State
  court. These limitations are necessary to
  avoid a "moving target" of State law
  during the permit's life. See § 124.86(cj
  and preamble discussion of that
  paragraph for a fuller treatment of this
  issue.
    (3) A new section § 124.24 has  been
  added to the State certification Subpart.
  This addition contains the provisions for
  concurrence/certification from the April
  25,1978 proposal for section 301(h)
"modifications. The major divergence
  from normal permit procedures is that
  NPDES States (or the certifying Agency
  within a non-NPDES State] must
  concur/certify as described in this new
  section. Proposed § 124.61(a}(2) stated
  that no final permit shall be issued by
 EPA which grants a section 301(h)
 modification until the appropriate State
 has been given 30 days to approve or
 disapprove the modification. If the State
 disapproved the modification within 30
 days, the modification would be deleted
 from the permit. Proposed § 233.45 had a
 similar provision except that there was
 no time limitation. One comment to
 proposed § 233.45 suggested that EPA
 should allow 30 days for State
 concurrence or concurrence would be
 considered denied. Although EPA
  recognizes the need to reduce delays in
  section 301(h] processing, we do not
  believe we can deem concurrence
  denied (as opposed to waived) if not
  granted within a certain number of days.
  Therefore we have instead chosen to
  deem concurrence/certification waived
  after 60 days rather than adopt the
  suggestion that concurrence be deemed
  denied.           .   -   '    " ' _

  § 124.31  Draft permit.

   A number-of comments objected to
  the statement in proposed § 124.41(a)
  (now § 124.31(a}) that "any other
  relevant information" in addition to the
 "types specified could be considered in-
  deciding on a draft permit. Although the
  Agency has retained the language, it is
  not intended to allow draft permits to be
  based on material that is not reflected in
  the administrative record.

  § 124.32  Other draft permits.

   "This section provides that when EPA
  moves to revoke or suspend a permit, it
  shall do so by formulating a new draft  .
  permit subject to notice and comment
  and potential evidentiary hearing.
  Although commenters did not object to
.  the purpose behind this section (to make
  sure that such decisions are made
  through the same basic procedures that
  apply to the permit issuance) some
  commenters, suggested  that the permit
  holder should be notified before any
  such draft permit was issued. EPA has
  not accepted this suggestion because the
  draft permit will constitute sufficient
 notice well before any legally effective
 action is taken. This section has also
 been revised to require all draft general
 permits other than separate storm
 sewers, (whether issued by EPA
 Regional Offices or the States) be sent
 to the EPA Deputy Assistant
 Administrator for Water Enforcement
 for 90 days for his/her concurrence or
 denial.

 § § 124.33-35  Statement of basis, fact
 sheet, and administrative record.
   A major purpose of the proposed
 regulations was to increase the level of
 explanation of how and why EPA
 arrived at specific permit conditions,
 and to specifically identify the
 documents or other information
 considered in doing this.
   The proposal would have done this
 by: (1) requiring each permit to be
 accompanied by a fact sheet explaining
 the factors considered and the reasons
 for the decision, and (2) requiring
 permits to  be based on an
 "administrative record."
   The administrative record could
 simply be an adequately organized file

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              Federal Register / Vol. 44, No. Ill  / Thursday. June 7, 1979  /  Rules and Regulations	32881
 drawer containing the relevant
 information. This ensures that the
 information considered in formulating a
 permit is identified and publicly
 available for comment. The
 administrative record requirement does
 not mean that there must be individual
 copies of the monitoring or reporting
 conditions or effluentjlimitations
 guidelines and development documents
 in the file, as long as  they are properly
 cited. EPA's response'to the many
 comments that were received on these
 provisions is provided below.
   [1] A number of commenters argued
 that to prepare a detailed "fact sheet"
 and administrative record for every
 permit would result in a lot of
 paperwork for which there was no real
 demand. EPA agrees  with these
 comments since, in our experience,
 although all permits are made available
 for public comment, over 90% of the
 EPA-issued permits become final
 without any public comment or requests
 for an evidentiary hearing. Accordingly,
 § 124.34 (proposed § 124.44) has  been
 rewitten to require a "fact sheet" only
 for permits to major dischargers  and
 other controversial permits including all
 variances or modifications. Permits for
 small discharges will not require a fact
 sheet and will only require a less
 detailed "statement of basis".
   In many cases the "statement of
 basis" could consist of the internal
 memorandum prepared within the
 Agency which informs the person
 signing the permit of the  guideline or
 other source of the effluent limits and
 any issues which the permit raises. By
 utilizing such an approach, EPA believes
 we are maximizing the utilization of the
 permit issuing authority's limited
 resources without denying the public or
 permittee basic information upon which
 to judge the adequacy of the permit
   The regulations have also been
 revised to provide explicitly that a fact
 sheet can be prepared for any permit
 which is the subject of widespread
 public interest during  the public
 comment period and for which no fact
 sheet was prepared originally.
   {2} Since the fact sheet can be quite
 extensive. States objected to mailing a
 copy to each person on a mailing list
 since most permits have proved to be of
 little interest. Therefore, the public
 notice of every draft permit will be sent
 to those on the mailing list but the fact
 sheet (or statement of basis) will  be sent
 only on request.
  (3) Because the fact  sheet requirement
 has been limited to major or
 controversial discharges, the
requirement of a special level of
discussion for discharges of over  500,000
 gallons per day has been eliminated.
 Distinctions among major or
 controversial permits based on the
 amount of water discharged do not
 correspond to any real differences in the
 degree of discussion that is advisable.
   (4) Comments from both industry and
 EPA Regions on proposed
 § 124.44(a)(6)(iii) suggested deletion of
 the requirement that the record contain •
 all documents cited in an EIS or similar
 analysis. These comments argued that
 since so many documents are generally
 cited, the requirement would be
 impossible practically and would also
 make the record less, rather than more
 useful. EPA agrees with these comments
 and has revised this section accordingly.
 Persons who wish specific documents to
 become part of the record may supply
 those documents as part of their
 comments under § 124.42.
   This section has also been reworded
 to clarify that generally available
 material cited in a fact sheet does not
 need to be physically included in the
 administrative record.

 § 124.36  Applicability of Subpart D to
 draft permits incorporating section
 301(h) modifications.

   A new section, § 124.36, has been
 added to indicate that Subpart D is
 applicable to section 301(h) proceedings
 except, as provided in proposed Subpart
 C of Part 233, the'Administrator, or a
 person designated by the Administrator
 will prepare the draft permit, not the
 Regional Administrator as with other
 draft permits.

 § § 124.41 and 124.42 Public comments
 and public notice.

   The public notice sections were
 amended to cut time and paperwork
 requirements based on overwhelming
 objections to the proposed changes. On
 the advice of the States, the public
 comment period reverts from the
 proposed 45 days to the former
 regulations' 30 days. Many States felt
 that 30 days is sufficient for the vast
 majority of noncontroversial permits
 and additional time can be made
 available for those permits that generate
 public interest. EPA suggests, however,
 that a liberal policy be followed in
 granting extensions of the comment
 period.
  Some commenters suggested that
 other methods of public notice of an
 action should be authorized. EPA and
 the States have found that the mailing
 list has been by far the most effective
means of eliciting public participation
into the NPDES process. Therefore, we
urge States to develop mailing lists as
provided or by any additional means
they have found effective.
  Similarly, States and EPA Regional
Offices both stated that newspaper
notices were ineffective in eliciting
public comment and were a substantial
drain on limited resources. EPA agrees
and has revised this section to make
newspaper notices shorter as well as
optional if other means, such as posting,
are utilized.
  The proposed regulations allowed
certain Federal and State agencies a
separate early chance to comment on
permit applications before the public
comment period began. This provision
has been eliminated in response to
comments both from EPA Regions and
from representatives of dischargers.
These agencies now will be expected to
comment during the public comment
period. In particular cases, however,
they may still be consulted informally
before the draft permit is formulated.
  This revision also deals with those
comments which argued that Ihe
comments of other agencies on a draft
permit must be reflected in the record.
As noted elsewhere in this preamble,
any permit terms in EPA-issued permits
must be supported by the administrative
record whether or not they are based on
the views of other agencies.

§ 124.43   Obligation to raise points and
provide information during the public
comment period.
  This section is discussed below along
with § 124.76.

§ 124.44   Terms requested by the Corps
of Engineers and other Government
agencies.
  Proposed §§ 124.21 and 124.22 stated
the circumstances in which terms may
be included in an NPDES permit at the
request of another Federal agency.
Although many comments were received
on this, no substantive change has been
made because EPA continues to believe
the language in the proposal was
correct. The Act says that EPA "shall"
include hi permits those conditions
requested by certifying States and the
Corps of Engineers.2 Any challenge to
those conditions must therefore be made
through the State or Corps of Engineers
procedures for challenging decisions.
Terms based on the comments of other
agencies without such veto authority
must be within the discretion of EPA
  "The statement of one commenter that the Corps
authority under section 4O2{b)(6) of the Act is
limited to vetoing permits, not imposing conditions
on them, seems simplistic to EPA. A Corps of
Engineers' statement that certain terms must be
included in a permit can properly be viewed as a
statement that the permit will be vetoed unless it
contains those terms.

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  32882      Federal Register / VoL 44, No. Ill  / Thursday,  June 7, 1979 / Rules and Regulations
  under the Clean Water Act and are
  therefore subject to the same procedures
  that apply to permits generally.
    In response to comments, affected
  States are now included in § 124.44(c).
  This revision clarifies the right of such
  States under sections 402(b](5) and
  401(a)(2) of the Act to require more
  stringent requirements so that a
  discharge of another State does not
  violate its water quality standards.

  § 124.45 Reopening of comment period,
    Proposed § 124.44 (now § 124.45)
  allowed for reopening of a comment
  period (or reproposal of a permit) at the
  discretion of the Regional
  Administrator.
    Several comments suggested an
  automatic "reply comment" period in
  which the discharger and others could
  respond to points made during the main
  comment period. EPA agrees that this
  may be a good idea in some specific
  cases, but it could be unnecessarily
  burdensome if required by regulation hi ~~
  all cases. Therefore, the proposal has
  not been changed.
  Subpart F—Special Provisions for
  Variances and Statutory Modifications
    In response to several suggestions, the
  procedures for variances have all been
  placed in a single Subpart. This revision
  is done to present the public with an
  organized view of how variances will be
  handled within the normal permit
  procedures.
   Under the Clean Water Act and the
  former regulations, there are more than
  a dozen different statutory or regulatory
 provisions on which permit
 requirements could be based, and seven
 provisions under which a variance from
 those provisions could be granted. Many
 of these provisions are not covered in
 the existing regulations, and where they
 are, the references are scattered through
 various parts of the Code of Federal
 Regulations.
   Subpart F deals with the problems in
 two ways. First, it consolidates into one
 Federal Register Subpart the former
 procedures for making decisions'on  -
 permit terms contained in 40 CFR Parts
 122 and 402 (relating to thermal
 discharge requirements) and the former
 Part 124.
  Second, it specifies where in the
 sequence, "application—draft permit—
 comment—final permit", permit actions
 other than the simple one of deciding on
 permit applications should fit
  In particular, it provides that
whenever possible, a variance must be
applied for before the close of comment
on a draft permit. This will ensure that
there is an opportunity to consider all
  the relevant issues before deciding the
  terms of a final permit and that issues
  are not raised at a later date for
  purposes of delay. The regulations also
  provide that where a variance is
  properly requested after this stage but
  before a permit has become final under
  § 124.101, the decision on the variance
  will still be made through the same
  permit procedures that apply to other
  permits. This will be done in appropriate
  cases by issuing a new supplementary
  draft permit embodying the Agency's
  response to the variance request, and
  holding action on the original permit
  until the supplementary permit has
  reached the same procedural stage and
  the two permits can proceed together.

  § 124.51  Time deadlines for
  applications for variance from and
  modifications of effluent limitations.

   (1) A number of comments argued that
  the time limits for variance applications
  set forth in proposed § 124.14 were too
  strict These comments haveiieen
  accepted in a number of particulars.
   (a) The statute requires applications
  for variances under section 301(c) and
  under section 301(g) to be submitted 270
  days after promulgation of the relevant
  effluent guidelines or by September 25,
  1978, whichever is later. However, since
 EPA has not yet issued crieteria for such
  applications, it clearly would have been
 unreasonable to have required a
 complete application by last September.
 Accordingly, these regulations
 incorporate the requirements of previous
 interim final regulations stating that
 applicants need only have submitted a
 very brief notice by September 25,1978,
 (or within 270 days of the promulgation
 of an applicable effluent guideline) to
 qualify under that deadline. See 43 FR
 40859 (Sept. 13,1978).
   Similarly, in the case of section 301(h),
 § 124.51(c)(l) revises proposed 40 CFR
 § 233.32 to indicate that a preliminary
 application must have been submitted to
 EPA by the statutory deadline, but the
 final application should not be filed until
 the section 301(h) criteria are
 promulgated in final form in Part 125,
 Subpart G. The criteria, when
 promulgated, will also specify the
 method of, and timing for, making a final
 application. This revision to the tuning
 requirement is necessary because the
 statutory deadline has passed and EPA
 has not yet issued section 301(h) criteria.
  (b) Dischargers who wish to be
 considered for a section 301(c) or
 section 301{g) variance will be required
to comply with the substantive
requirements of § 124.43 and Part 125
(once they are promulgated) by the close
 of the public comment period of their
 draft permits.
   In some cases, draft permits will
 contain effluent limits that are not based
 on effluent guidelines but may still be
 eligible for variances. In those cases, it
 would be impossible to submit
 supporting evidence that a variance
 should be granted during the 30-day
 period of public comment. Therefore, in
 those cases, and in other cases the
 Agency believes appropriate, the
 Regional Administrator may grant an
 extension for up to six months to allow
 the applicant to complete his or her
 submission.
   However, there will be many times
 when waiting until the last minute of the
 comment period would not be in the
 interest of the permitting process, the
 applicant, or the public. Therefore, in
 those cases where it is clear that a
 discharger will be submitting an
 application for a variance, the Director
 may require the applicant to submit that
 application in full before the draft
 permit is formulated. This req'uirement is
 intended to reduce the time for permit
 issuance, especially in those cases
 where it is clear that a variance or
 modification will be applied for, such as
 where the discharger has submitted the
 270 day application for a section 301(c)
 or 301(g) variance (5 124.51(b)(2)(i)) or
 where a fundamentally different factors
 variance is still pending on the first
 permit This will lower the permit
 processing costs for the permitting
 agencies., the applicant and the public
 because there will no longer be a draft
 permit subject to a public notice that is
 irrelevant to the issues in the final -
 permit -

 § 124.52  Decisions on variances and
 modifications which EPA or the State
 can grant.

   Section 124.52 explains how decisions
 will be made on variances. There is a
 distinction between the variances and
 modifications EPA and the States may
 grant and those the Act requires that
 only EPA may grant
   (1) Many commenters  objected to EPA
 and not approved NPDES States maVing
 variance determinations for
 fundamentally different factors
 variances, economic variances,
 environmental variances, and section
 301(h) secondary treatment waivers.
 These commenters thought the States
 with NPDES authority have the
 authority to rule on these particular
 variances.
  The 1972 Amendments to the Federal
 Water Pollution Control Act carefully
 spell out the relationship between the
Federal Government and the  States in

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              Federal Register / Vol. 44,  No. Ill  /  Thursday,  June 7, 1979 / Rules and Regulations       32883
  achieving the Act's goals of eliminating
  the discharge of pollutants from the
 'Nation's waters. A major responsibility
  of the Federal Government under the
  Act is the development and
  promulgation of uniform national
  technology-based standards for
  categories and classes of industrial
  discharges. Variances from these
  standards are allowed if the applicant
  can show the plant is fundamentally
  different from those plants used in
  developing the limits. Since EPA
  promulgates those national standards,
  EPA, not the States, is the authority best
  able to judge if a plant is fundamentally
  different from those that were the basis
  for the standard.
   The variance sections in the Act
  clearly designate who the Congress
  intended to make the determinations.
  For example, section 316{a) provided for
  thermal waivers to be granted by either
  EPA or NPDES States. Specific grants of
  authority appear hi the 1977
  amendments which added sections
  301(g), 301(h) and 301(i). Section 301(g)
  authorizes "the Administrator, with the
  concurrence of the State" to grant
  variances from BAT effluent limitations.
  Similarly, section 301(h) provides that
  permits incorporating modifications of
  the secondary treatment required may
  be issued by "the Administrator with
  the concurrence of the State. . . ."
  Section 301(i)(l), municipal tune
  extensions like section 316(a) variances,
  may be granted by the "Administrator
  (or, if appropriate, the State)." Finally,
  section 301{c), only mentions the
 Administrator and so variances under it
 can only be granted by the Agency.
   (2) A number of commenters objected
 to the condition in the proposal that
 when the Act required State
 concurrence in a variance that is issued
 by EPA, the variance request would not
 be considered by the Agency until the
 State had first approved it. In response,'
 proposed § 124.14(e) has been modified
 in § 124.52[b) to allow the State Director
 to concur after EPA makes  a draft
 determination. In States where EPA is
 the permit issuing authority a State will
 certify the draft permit in the regular
 procedure. All State (whether NPDES or
 not) must concur/certify section 301(h)
 determinations before EPA can issue the
 section 301(h) modified permit (see
 § 124.24).
   Some commenters objected to
 considering States' views at all where
 the act did not explicitly require it.
 However, States have authority, where
 State law requires it, to set more
 stringent limitations for a permittee
 under sections 401 and 510.  Though EPA
grants the variances, the variance
 sections do not allow EPA to overrule
 State authority to require more stringent
 State requirements. Therefore, it is not
 appropriate to disregard State input into
 variance determinations.
 § 124.55  Special provisions for
 modifying the secondary treatment
 requirement under section 301(h).
   Paragraph 124.55(a) sets out the
 requirements for submission of
 additional information necessary to
 make a section 301(h) determination.
 This section is substantially the same as
 proposed § 233.32(c) except that it states
 that if an application, "on its face,"
 demonstrates that the applicant is not
 entitled to a section 301(h) modification,
 then the applicant cannot submit
 additional information and the
 application will be denied. This
 requirement is consistent with
 Congressional intent, [CPV/1 Legis. Hist.
 at 448] and has been added to clarify
 EPA's original intent behind proposed 40
 CFR § 233.32(c). This is similar to the
 "summary denial mechanism" suggested
 by some commenters.
   States argue they should be allowed
 to issue permits with section 301(h)
 modifications. EPA disagrees  and
 believes that the proper procedure is
 dictated by the Act itself. Section 301(h)
 provides, not that EPA may modify an
 existing NPDES permit to allow a less
 than secondary discharge if the
 permittee meets the requirements of
 section 301(h), but that EPA may "issue
 a permit under section 402 which
 modifies the requirements of section
 301(b)(l)(B)" (emphasis added). This
 requires EPA to assume full NPDES
 permitting authority—even where the
 State has an approved NPDES permit
 program—hi issuing any section 301(h)
 permit. This interpretation is buttressed
 by the fact that the statute calls only for
 "State concurrence" in any section
 301(h)  permit issued, and does not
 require the State to crank the permit
 back into the State permitting process
 and add additional terms and conditions
 necessary to assure compliance with
 sections of the act other than section
 301(h).
   EPA believes this result is not only
 required by the act but makes a great
 deal of sense as a practical matter. Any
 other approach would bifurcate the
 permitting process for section  301(h)
 dischargers between EPA and the State,
 resulting in a great deal of confusion
 (especially since there is some overlap
 between section 301(h) requirements
 and other applicable requirements of the
 act) and delaying issuance of final
permits. To clarify this issue, EPA has
revised proposed § 124.61(a)(2) (now
 § 124.55(d)) to indicate that NPDES
 States may (not must) revoke the
 existing NPDES permit when they
 concur in the modification and they may
 also choose to cosign the section 301(h)
 permit. EPA hopes that NPDES States
 will choose to revoke any existing State-
 issued permits and cosign the EPA-
 issued section 301{h) permit because this
 will reduce confusion as to permit
 limitations.

 i 124.61  Stays.

  (a) Proposed § 124.61(a) provided for
 automatic stays of contested permit
 provisions if an evidentiary hearing
 request is granted, or if a petition for
 review of denial of a request for an
 evidentiary hearing is filed with the
 Administrator.
  Numerous comments were received
 on this provision. One recurrent theme
 was that if a permit was stayed by EPA,
 compliance schedules hi it should be
 extended for the same period that the
 stay was in effect. This suggestion has
 been accepted except where the
 technology is not contested but the
 ability of such technology to reach
 certain effluent limits is. In addition,
 compliance schedules cannot be stayed
 where failure to meet a statutory
 deadline or a permit term of more than
 five years would result from such an
 extension. It has been EPA's consistent
 position that it lacks power to grant
 dischargers more time to comply with
 the statutory mandate than Congress
 has decided they should have, or to
 extend the statutorily prescribed permit
 term. However, permits may be
 continued by operation of law under the
 Administrative Procedure Act See
 f 122.12(b).
  (b) A number of comments objected to
 the statement hi proposed
 § 124.61(c)(2)(ii) (now § 124.61(d)) that a
 new source or a new discharger is
 considered to be without a permit
 pending the completion of any
 evidentiary hearing. However, this
 provision is only a logical extension of
 the provision (which most of these same
 commenters endorsed), that new permit
 terms are stayed pending those hearings
 and therefore has been retained.
  For this reason EPA has deleted the
 provision allowing the Regional
 Administrator to approve the start of
 discharge by a new source or a new
 discharger even though a hearing on that
source's permit is still in progress. Such
sources which are concerned about their
ability to open on schedule under these
provisions should apply for the
necessary permit far enough hi advance
of their target opening dates to allow

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  32884       Federal Register  /  Vol. 44,  No. Ill  /  Thursday. June 7, 1979 / Rules and Regulations
  time for completing all necessary
  procedures.
    EPA has recently established several
  procedures to expedite the issuance of
  NPDES and other EPA permits (e.g-
  Prevention of Significant Deterioration
  permits for air new sources) to new
  facilities. EPA has designated in each
  EPA Regional Office a New Source
  Coordinator charged with the
  responsibility of shepherding these
  applicants through the permit process.
  EPA has also adopted a policy of (1)
  informing each new facility within 30
  days of request whether a particular
  permit program will apply to the new
  facility and (2) determining within 30
  days of receipt whether an application is
  complete. Furthermore, EPA Regions are
  establishing permit tracking  systems or
  procedures to ensure that new facility
  applications are addressed
  expeditiously. All of these initiatives
  will help minimize delay.
    One comment also asked about the
  relation of § 124.61(c](2][ii) to proposed
  § 124.11fc) (now § 122.10(c)) which
  required new dischargers to apply 180
  days before the scheduled start of
  operations. The 180 days is a minimum
  period; it does not preclude applications
  before then.
   (c) A number of commenters asked
  that a provision be made for  appealing
  stays, or asked about the status and
  applicability of determinations that
  permit terms were uncontested and
  severable from contested ones.
   In these regulations  we have
  accommodated these concerns by
  requiring the Regional Administrator to
  identify in the notice of a grant of the
  hearing the terms of the permit which
  are not contested and therefore are
  enforceable against the discharger
 during the permit proceedings. In some
 cases it may be necessary for the
 Regional Administrator to write new
 conditions to represent uncontested
 requirements. For example, if a final
 permit would require compliance with
 effluent limitations representing the
 application of both technologies A and
 B, and the discharger agrees that
 compliance with technology A is
 appropriate but challenges application
 of technology B, the Regional
 Administrator must write specific permit
 conditions requiring the installation of
 technology A. The fact  sheet or
 statement of basis should include the
 type of technology contemplated by the
 permit writer to meet any technology-
 based limits in the permit
  Appeals from determinations on
uncontested conditions will be available
only through the provisions of § 124.101.
    (d) A number of comments questioned
  the provisions in the proposed
  regulations that made certain deadlines
  run from the date of receipt of a ~
  specified notice. Such a provision could
  result in different deadlines for different
  people, and make it more difficult to find
  out when deadlines actually did elapse.
  Accordingly, these provisions have been
  changed to specify the time when the
  notice is given as the starting point for
  deadline, and three additional days
  provided to cover mailing delays
  (§124.134). >

  § 124.64 Response to comments.
   A major part of the effort in the
  proposed regulations to increase the
  extent to which EPA explains the basis
  for permits was requiring a response to
  comments received on a draft permit.
  The substance of those proposed
  provisions has been left essentially
  unchanged. However, proposed § 124.63
  ("final fact sheet") has been retitled
  "Response to comments" to clarify that
  a document must be prepared for every
  issued permit which responds to all
  significant comments and objections to
  the draft permit and indicates which
  provisions have been changed and the
  reasons for the change. A comment has
  also been added to make clear that if
  new points are raised during the public
  comment period, EPA has the right to
  add new material to the administrative
  record to document its response to those
 new points.

  § 124.65  Administrative record.
   The "administrative record"
 provisions have not been changed,
 except to delete the proposed
 requirement that all records be indexed
 and subcategorized. Though this may be
 advisable as a matter of policy for large
 records in significant cases, it seems
 inadvisable to require it across the
 board by regulation.
   At the request of NPDES States, the
 administrative record, as detailed in this
 section, is not a requirement for State
 programs.

 Subpart H—Evidentiary Hearings for
 EPA-Issued Permits
 § 124.71 Applicability.
   The provision in this section for not
 holding evidentiary hearings on general
 permits was approved by the one
 commenter to address it directly. The
 Natural Resource Defense Council in its
 comments did not criticize this approach
 but asked what alternative mechanisms
 for tightening requirements on
 individual sources subject to general
permits were available. In response,
EPA wishes  to point out that interested
 persons are always free to suggest in
 their comments on draft general permits,
 or in a petition to EPA, that issuance of
 an individual permit should be required.
 EPA will then be obliged to answer the
 points made and to issue an individual
 permit if it appears that step is required.
 § 124.72   Definitions.
   Comments from the Natural Resource
 Defense Council pointed out that the
 proposal,  by automatically making the
 permittee a party to any evidentiary
 hearing, could result in the permittee not
 having to  make the commitments to
 make witnesses available and to file
 certain papers to focus the issues that
 are required of those who become
 parties through their own affirmative
 actions.
   EPA agrees with this comment and
 has therefore deleted this provision.
 Permittees will still get notice of all
 hearing requests, and will be free to
 intervene  in hearings to protect their
 interests.
 \124.74   Request's for evidentiary
 hearings.
   (a) The  test for "standing" to request
 an evidentiary hearing has been relaxed
 in the final version of the regulations.
 Instead of the stricter test contained in
 the proposal, the standard in the
 existing regulations will be retained.
   (b) Some comments questioned the
 provision in § 124.74{b)(4J that persons
 requesting a hearing agree in advance to
 make potential witnesses under their
 control available to testify. EPA lacks
 explicit subpoena authority for hearings
 held in connection with NPDES
 proceedings and this language is
 necessary to provide some equivalent
 assurance that needed witnesses will be
 available.  In line with this purpose, an3
 as suggested by other comments,
 § 124-74{b)(4} (now  § 124.74(e}{4}) has
 been revised to clarify that the duty to
 produce witnesses only applies when
 the Presiding Officer has ordered their
 production.
 § 124.75 Decision on a request for a
 hearing.

  Section 124.75 and § 124.101 have
 been revised to clarify that a Regional
 Administrator's denial of a hearing may
 be appealed to  the Administrator, and
 the Administrator may review or reverse
 any legal or policy conclusions on which
 that denial was based.
 § 124.76 Obligation to submit evidence
and raise issues before a final permit is
issued.

  Two major purposes of the proposed
changes to  EPA procedures were to

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              Federal Register / VoL 44,  No. Ill  / Thursday, June 7,  1979 / Rules  and Regulations      32885
  encourage resolution of issues at the
  time of comments on a draft permit,
  rather than in the far more burdensome
  context of an evidentiary hearing, and to
  link that hearing explicitly to the
  preceding stages of permit issuance. At
  present even where afl major issues
  have been fully analyzed and resolved
  before the final permit was issued, they
  can be re-examined anew in the
  evidentiary hearing. The Presiding
  Officer may not know what happened
  regarding the permit before the hearing
  began. Also, new issues might be raised
  at the evidentiary hearing even though
  they could have been settled much more
  simply if raised at an earlier stage.
    The proposed regulations attempted
  to remedy this situation in two ways.
  First, the administrative record on which
  the final permit was based would
  automatically go into evidence at any
  evidentiary hearing so that the
  decisionmaker would have the benefit of
  the earlier stages of consideration of the
  issues.
    Second, no issue could be raised at  an
  evidentiary hearing if it was not first
  raised during the comment period on the
  draft permit (proposed § 124.53). An
  exemption from this requirement was
  provided if "good cause" could be
  shown for the failure to raise the issue
  earlier. These provisions have largely
  been retained in the final regulations
  (§ 124.43). The purpose is not to exclude
  any person from EPA's decision-making
  process, but rather to focus the attention
  of the Agency and parties on the
  informal comment and public hearing
.  stage of the permit issuance process.
  EPA believes that policy issues and
  most technical issues relating to  the
  issuance of NPDES permits should be
  decided in the most open, accessible
  forum possible, and at a stage where the
  Agency has the greatest flexibility to
  make appropriate modifications to the
  permit Evidentiary hearings, because
  they entail great delays, because they
  are cumbersome, and because only the
  well-financed can afford to participate,
  are disfavored as a means of solving
  any issues other than contested factual
  issues requiring cross-examination. Not
 only will this in the long-run lead to
 greater and better informed citizen
 participation, it will increase efficiency
 in the permit issuance process and will
 speed application of pollution control
 requirements.
   Many comments were received on
 these different aspects of the proposal.
 The proposed changes were very widely
 endorsed  and supported in principle.
 However, non-governmental
 commenters argued that the regulations
 went too far in tying the evidentiary
 hearing to the preceding notice-and-
 comment stages. These comments have
 been largely accepted. Specifically,
 § 124.53 (now § 124.43) and § 124.76
 have been amended very much along
 the lines suggested in the comments of
 the Utility Water Act Group.
   In addition, though the proposed
 requirement for automatic receipt of the
 administrative record in evidence has
 been retained, a comment has been
 added and the section has been changed
 slightly to make clear that testimonial
 material in the administrative record
 should be subjected to' the same tests of
 its testimonial value as other testimonial
 material introduced at the evidentiary
 hearing.
   Some comments argued that receiving
 the administrative record in evidence
 automatically conflicted with the
 provision in 5 U.S.C. § 556 for the
 exclusion of "irrelevant, immaterial, or
 unduly repetitious evidence". As the
 comment described above explains,
 receiving the administrative record in
 evidence serves to document for the
 Presiding Officer and the parties the
 prior proceedings out of which the
 evidentiary hearing will arise and on
 which it must in part be based. A
 substantial useful purpose is therefore
 served by this procedure. This purpose
 could not be served as well, and many
 opportunities for useless arguments
 would be opened up, if the section were
 amended to provide that the
 administrative record could be edited in
 some fashion before or after its
 introduction.

 § 124.84  Summary determinations.

   A number of comments objected to
 the provision in § 124.84 that allowed
 motions for  summary determination to
 be made "with or without" supporting
 affidavits. They feared that by explicitly
 mentioning the possibility of a motion
 without supporting affidavits, the
 regulations might result in shifting the
 burden of proof to the party against
 whom the motion is made. No such
 result is intended by this provision.
 Motions for  summary determination
 must be affirmatively supported. The
 form of the proposal was only meant to
 recognize the possibility that material.
 already in the record might amount to
 that affirmative support.

 § 124.85  Hearing procedure.

  [1] Burden of proof. Comments came
in on all sides of the question "Who
should bear the burden of proof?" The
comments discussed, not so much the
burden of going forward, which most
cornmenters  agreed could properly be
shifted by regulation, as the ultimate
burden of persuasion. Several changes
have been made in response to
comments, but the basic approach has
not been changed. Because this is a
complex issue, it is discussed in some
detail.
  Most comments agreed that the Act
explicitly assigns a burden of persuasion
for most variance decisions. The Act
explicitly provides that variances under
sections 301(c), 301(h), 301(g), and 316(a)
may only be granted if the applicant
carries an affirmative burden of proof.
Variances under section 301(c) are
conditioned on a "showing by the owner
or operator of such point source
satisfactory to the Administrator";
sections 301(g) and 316(a) uses almost
the same language; section 301(h)
variances may be granted "if the
applicant demonstrates to the
satisfaction of the Administrator [that
the conditions are met"].
  The question then becomes  what the
substantive burden should be  for basic
permit terms not involving a variance.
That question, in EPA's opinion, is of
more limited importance than might first
appear.
  When EPA proposes permit terms, it
has a burden of going forward, or, stated
differently, an obligation to provide
information and material so that other
interested persons can understand what
the proposed terms are based on and the
reasoning behind them. Other persons
have a similar burden with respect to
terms  they propose. This obligation has
been recognized by EPA (See Decision
of the  General Counsel No. 63, pp. 23-
31), and is part of the law of informal
rulemaking as well. Portland Cement
Ass'n. v. Ruckelshaus, 486 F.2d 375 (D.C.
Cir. 1973). The provisions of these
regulations on statement of basis and
fact sheet, administrative record, and
comments are largely aimed at
implementing those requirements.
  The question of the substantive
burden of proof assumes importance
when the information provided by the
various interested persons under these
obligations is fairly evenly balanced in
the conclusions it points to. A
substantive burden of proof rule can be
used to help decide which conclusions
should be accepted. It is in this context
that the question of whether EPA or the
person challenging a permit term bears
the burden of proof assumes importance.
In one  sense, every party could be said
to have the "burden of persuasion" as to
the permit terms that it was  advocating,
but that approach would be of little use
as a guide to decision. Accordingly, the
regulations (as proposed and
promulgated) assign the substantive
burden of proof to the permit applicant

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  32886       Federal Register / Vol. 44, No.  Ill / Thursday, June 7, 1979 / Rules and Regulations
  in all cases. The Administrative
  Procedure Act (APA), 5 U.S.C. section
  556fd) provides that "except as
  otherwise provided by statute, the
  proponent of a rule or order has the
  burden of proof." Since dischargers are
  under a statutory obligation to apply for
  and receive an NPDES permit, the
  United States Court of Appeals for the
  Seventh Circuit has recently held the
  discharger is the proponent "as the
  applicant for a permit, without which it
  would be forbidden by law to discharge
  pollutants," U.S. Steel v. EPA, 536 F.2d
  822, 834 (7th Cir. 1977).
    Such a conclusion follows from a
  literal reading of the statute. It also
  makes sense from the standpoint of the
  public policy. Though we acknowledge
  that EPA may have some disposition to
  favor its own conclusions on the terms
  of a given permit, in general it can be
  expected to be more concerned with
  carrying out the terms of the statute in
  the context of given permits than a
  discharger. Accordingly, it is proper to
  fix the substantive burden of proof on
  the party which can be expected to have
  relatively less interest in achievement of
  the statutory purpose.
    Comments were received suggesting
  that the Agency's position regarding
  burden of proof is inconsistent with
  Decision of the General Counsel Nos. 63
  and 72. The difficulty is caused by the
  use of inconsistent terminology in these
  opinions. In Decision of the General
  Counsel No. 63, the term "ultimate
  burden of persuasion" was used with
  respect to the EPA's obligation under
  section 316(b) to present evidence
 regarding best available technology for
 minimizing the environmental impact of
 intake structures. In context it is
 apparent that EPA has the burden of
 coming forward with evidence regarding
 intake structures. This cannot shift the
 ultimate risk of non-persuasion, which
 lies always with the discharger. To the
 exent that Decision of the General
 Counsel No. 63 can be construed to shift
 this risk of non-persuasion to EPA, it is
 incorrect. Decision of the General
 Counsel-No. 72 correctly distinguishes
 between the burden of coming forward
 with evidence and the risk of non-
 persuasion, and labels the burden of
 coming forward the "burden of proof."
  (2) Cross-examination, (a) Several
 commenters objected to the restrictions
 on cross-examination of EPA employees
 set forth in proposed § 124.83(b)(16).
 They argued that cross-examination
 should be allowed on facts  which
 formed the basis of legal or policy
matters, or on those matters themselves.
  Facts which meet the other tests for
cross-examination and which are
  relevant to legal or policy judgments are
  of course potentially eligible for cross-
  examination. However, the proposed
  language has been retained to underline
  that cross-examination on legal or
  policy matters per se should not be
  allowed. These matters of course
  deserve to be clarified as much as any
  factual issues, but cross-examination is
  not the right way to do it. Written
  presentations and oral argument can
  perform the same task far more
  efficiently and should be relied on
  instead.
    One comment also objected to the
  provision that required all evidence in
  an NPDES proceeding to be submitted in
  written form unless an affirmative
  showing could be made that oral
  presentation was necessary. It argued
  that the Food and Drug Administration
  (FDA) regulations cited in support of
  this position did not really support it.
  However, the FDA regulations at issue
  are similar to § 124.85(c) and EPA
  interprets the content of the two
  provisions as being the same (see  21
  CFR § 2.154(b)). FDA regulations require
  written evidence on "general" matters
  and leaves the form of presentation to
  the choice of the parties where
  "particular" matters are concerned.
 However, "general" matters are said to
 involve (among other things) "scientific,
 medical or technical information not
 relating to a unique event", 41 FR 51706,
 51716 (Nov. 23,1976), and this is a
 description that could apply to many
 issues in an NPDES proceeding.
   (c) Proposed § 124.83(c)(5)(iii) is  a
 limited provision for "discovery" in
 NPDES evidentiary hearings. Comments
 were received arguing both for the
 expansion and for the deletion of this
 section. In the final version, this section
 has been kept and also applies in panel
 hearings (Subpart I). Although
 information may be attainable under the
 Freedom of Information Act or section
 308 of the Act, discovery may be a  more
 useful and direct approach to elicit
 information for a hearing.
   (d) Several comments challenged as
 illegal the provision in § 124.83(c}(6]
 authorizing the Presiding Officer to
 group parties with similar interests. We
 have not changed this section since we
 agree with Judge Friendly and the Food
 and Drug Administration that such  a
 provision is fully authorized by existing
 la"w, see National Nutritional Foods
Assoc, v. Food and Drug Administration,
 504 F.2d 761, 795 (2d Cir. 1974). See  also
41 FR 51706, 51718.

 \124.B6(c) Motions.

  The general rule is set out in § 122.15
that the applicable regulations and     "
  requirements for NPDES permit issuance
  are those in effect at the time a permit is
  issued by a State or by EPA under
  § 124.61.
   This provision is  consistent with the
.  decision of the Administrator//? the -
  Matter of U.S. Pipe  and Foundry Co.,
  NPDES Appeal No. 75-4 reprinted in -
  EPA, Decisions of the Administrator
  and Decisions of the General Counsel
  v.I at 110 (1975). The Administrator's
  views on this issue  were adopted by the
  Fifth Circuit in Alabama ex rel. Baxley
  v. EPA, 557 F.2d 1101 (5th Cir. 1977).
   Proposed § 124.86(c) authorized
  Presiding Officers to apply in permit
  hearings regulations issued after the
  permit is issued under § 124.61. For an
  explanation of the proposed regulation,
  see 43 FR 37080 (Aug. 21.1978).
   Several commenters contended that
  § 124.86(c) violates  due process and is
  inconsistent with the Alabama v. EPA .
  decision. EPA does  not believe that any
  due process issue can be involved here.
  All parties will have a full opportunity
  to challenge in the adjudicatory hearing
  the application of any regulations  which
  are applied to a discharger under
  § 124.86(c). Moreover, the provision may
  not be used when any party would be
  "unduly prejudiced  thereby."
   It is the general rule that laws which
  become effective during the pendency  of
  judicial review proceedings control
  those proceedings, Bradley v. Richmond
  School Board, 416 U.S. 696 (1974);
  Republic Steel Corp. v. Costle, 581 F.2d
  1228 (6th Cir. 1978).  This rule also holds
  true for the application of Federal
  regulations in administrative
  proceedings. Thorpe v. Housing
 Authority of Durham, 393 U.S. 268
  (1969). The Supreme Court has only
 recognized exceptions to this general
 rule to prevent "manifest injustice."
  Thorpe v. Housing Authority, 'supra at
 282; Greene v. United States, 376 U.S.
 149 (1964). The Administrator departed
 from this rule in his  decision in U.S.
 Pipe, supra. There he set forth a fixed
 rule that permits would always be
 governed by rules in effect at the time of
 initial permit issuance, and would be
 unaffected by changes in applicable
 regulations during permit appeals. The
 Administrator concluded that:
   To allow permit limitations and conditions
 to change according to a "floating" standard
 or guideline during the  pendency of a permit
 review proceeding would be highly disruptive
 and counter-productive. [Id. at 117]

   The Fifth Circuit approved the
 Administrator's position  in Alabama ex
 rel. Baxley v. EPA, supra. However,
 neither the Administrator nor the Fifth
 Circuit discussed Bradley or Thorpe,

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              Federal Register  /  Vol. 44. No. Ill / Thursday, June 7. 1979 / Rules and  Regulations       32887
 and EPA can only speculate as to what
 result would have been reached had
 those decisions been brought to EPA's
 and the court's attention.
   EPA recognizes the potential for
 disruption which a continuously shifting
 field of applicable regulations could
 bring to permit proceedings. However,
 the Agency now believes that the per se
 rule established by the Administrator in
 the U.S. Pipe decision  was too inflexible
 and in certain respects unlawful. EPA is
 clearly obligated under Bradley and
 Thorpe to apply new statutory law to
 administrative proceedings which are
 not final, unless a contrary legislative
 intent can be discerned. However,
 courts will give deference to EPA's own
 regulations controlling the application of
 EPA rules to pending proceedings. See
 Greene v. United States, supra at 160-
 162. Moreover, the courts will not apply
 the Thorpe rule blindly where to do so
 would result in unnecessary delay.
 Citizens to Preserve Overton Park v.
 Volpe, 401 U.S. 402, 418-19 (1971).
 Accordingly, EPA has  preserved the
 general rule enunciated in the U.S. Pipe
 decision, but has modified it to require
 the Presiding Officer to apply
 intervening statutory requirements, and
 to allow him to apply new regulations "
 where to do so would not unduly
 prejudice any party. The Agency
 expects that motions to apply new
 regulations will be liberally granted
 where to do so will shorten the hearing
 or resolve issues (such as determination
 of BCT or BAT on a case-by-case basis]
 that otherwise would consume
 considerable staff and hearing time. See
 Public Service Co. of Indiana v. FERC,
 575 F.2d 1204 1220-21 (7th Cir. 1978).

 § 124.90  Interlocutory appeal.

   The present practice of deciding legal
 issues separately through referral to the
 Office of General Counsel has been
 eliminated. Instead, these issues will be
 subject to normal interlocutory appeal
 procedures. The regulations also provide
 that the General Counsel's Office will
 play a major role in deciding any legal
 issues raised in such appeals. This
 approach was suggested in the
 comments of the Utility Water Act
 Group. Similar changes have been made
 to § 124.101.
   This approach presupposes that
 members of the General Counsel's
 Office who take part in deciding
 interlocutory appeals under this
 provision will not have performed
 "investigative or prosecutorial
 functions" in the hearing at issue, and
 will not be organizationally subordinate
 to those who have. 5 U.S.C. Section
554(d). In the normal course lawyers in
 the General Counsel's office do not
 perform such functions. In NPDES cases
 where they do, the lawyer in question
 and all that lawyer's subordinates will
 be barred from advising the
 Administrator.

 § 124.101   Appeals to the Administrator.
   (1) The proposed regulations would
 have provided two administrative
 appeals from ALJ decisions—once to the
 Regional Administrator and then after
 that to the Administrator in Washington.
 In the final regulations the opportunity
 to appeal to the Regional Administrator
 has been eliminated and only the appeal
 to the Administrator has been retained.
 This will make the process far less
 cumbersome. Regional Administrators
 will still be able to express their views
 by advising on the terms of draft and
 final permits and either by participating
 in the evidentiary hearing or by
 declaring themselves part of the
 decisional body (and thus subject to the
 exparte rules of § 124.78) and advising
 the Administrator.
   (2) Comments were received objecting
 to the provisions in this section for the
 Administrator to consider new issues on
 appeal or to base a decision on material
 erroneously excluded. These provisions
 were inserted to provide a measure of
 flexibility in the administrative
 decisionmaking process. Of course they
 should not be invoked where the
 matters to be considered are of a type
 that properly should have been subject
 to an evidentiary hearing.
  '(3) A number of commenters objected
 to the showing of substantial issues in
 justification of an appeal to the
 Administrator has a very broad power
 § 124.101. We agree with those
 commenters who stated that the
 Administrator has a very board power
 of review of decisions in NPDES permit
 cases. However, EPA's intent in setting
 up this program is that: (1) this power of
 review should be only sparingly
 exercised; (2) most permits be finally
 adjudicated at the Regional level; and
 (3) review by the Administrator be
 confined to cases which have
 precedential importance for the program
 as a whole. The threshold showing as
 proposed was intended to further that
 purpose; and thus has been retained.
   (4) Another commenter asked about
 the availability of interlocutory judicial
 review of decisions such as new source
 determinations and section 316(a)
 determinations.
  EPA's position is that judicial review
 is only available for final permits  for
which appeal to the Administrator has
been sought under §124.101. Except in
the special cases explicitly described in
 §124.56 all other decisions in connection
 with a permit are subject to challenge
 and revision in future administrative
 proceedings. They represent cases in
 which the administrative process is
 therefore not complete, and are not ripe
 for review because they fall under the
 requiremenHo exhaust administrative
 remedies.
 § § 124. Ill through 124.127  Non-
 adversary procedures for initial
 licensing.

   The APA allows decisions on the
 initial grant of a license'or variance to
 be made by procedures that are much
 less adversarial than strict court room
 procedures, even when a formal hearing
 is required. The regulations use this
 provision of the APA to move away
 from traditional format hearings in
 which EPA and other parties present
 separate cases before a single hearing
 officer. Instead, under Subpart 1, a panel
. of EPA employees with expert
 knowledge of, or responsibility for, the
 subjects involved will be present at the
 hearing and will question the parties,
 subject to over-all control of the
 proceeding by the Presiding Officer, an
 Administrative Law Judge. We expect
 that in some cases no Agency trial staff
 will be designated, although the
 regulations allow one to be named if
 necessary. Instead, the Agency will
 prepare a draft response to the permit
 application, and the information
 contained in the application and the
 draft response will be the focus of
 attention at the hearing. The hearing
 itself will be divided into a "legislative"
 phase—at which the parties can present
 views and arguments to the panel and
 engage in a colloquy, and an
 "adjudicative" phase—at which formal
 cross-examination can be ordered if
 certain threshold conditions are met.
 After the  hearing, the panel will prepare
 a recommended decision which may be
 appealed to the Administrator. Though
 the Administrator will make an
 independent review of the decision upon
 deciding to review it, the Administrator
 would be free to consult with panel
 members. EPA believes that this
 procedure complies with the literal
 language of the "initial licensing"
 provisions of the APA and fits the
 purpose of those provisions more closely
 than existing procedures.
  Under the APA, in cases of formal
rulemaking, ratemaking or initial
licensing, agencies have more latitude
than in other formal cases to require the
submission of evidence in written form.
5 U.S.C. Section 556(d). An initial
decision by the "independent" presiding
Administrative Law Judge (ALJ) is not

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  32888       Federal Register / Vol. 44, No. Ill /  Thursday, June 7, 1979 / Rules  and Regulations
  required; instead any "responsible
  employee" of the Agency may
  recommend a decision. 5 U.S.C. Section
  557(b)(l).
    As the preamble to the proposal"
  explained, these exemptions were
  provided for initial licensing because the
  decisions involved were complex and
  policy-dominated and thus were thought
  to be "like rulemaking." Since these
  decisions did not involve accusing
  anyone of wrongdoing, there was no
  reasons for "separation of functions"
  within the Agency or for an initial
  decision by a statutprily independent
  individual. Rather, the complexity of the
  problems required that the Agency be
  able to draw on its staff experts freely
  without being hampered by such
  artificial barriers. APA: Legislative
  History; S. Doc. 248, 79th Cong., 2d.
  Sess. 204, 229, 262, 361 (1946) (henceforth
  APA Leg. Hist.).
    The use of a panel and the omission or
  deemphasis of an EPA trial staff in
  proceedings under these regulations
  would make their structure conform
  more closely to the non-accusatory
  nature of the decision in question. The
  form of proceeding would correspond to
  its function—a group of EPA employees
  exploring {he issues to determine what
  decision to make or recommend—rather
  than to a courtroom trial.
   The comments raised a number of
  closely intertwined objections to the
  legal justification for this approach and
  to the implementation of it. The most
  important general objections are
  discussed first, followed by a discussion
  of comments relating to individual
  sections.
   (1) General comments.
   (a) First objection—issuing NPDES
 permits to existing sources is not "initial
 licensing".
   The commenters who raised this issue
 made little effort to support it, and it
 suffers from the initial weaknesses of
 being contrary to the plain language of
 the statute,  consistent EPA practice and
 the relevant judicial opinions.
   The APA defines "license" to include:
  The whole or a part of an agency permit,
 certificate, registration, charter, or other form
 of permission, 5 U.S.C. section 551(8),
 and "licensing" as including:
  Agency process respecting the grant,
 renewal, denial, revocation, suspension,
 annulment, withdrawal, limitation,
 amendment, modification, or conditioning of
 a license, 5 U.S.C. section 551(9).
  Though "initial" is not defined, its
natural meaning (according to Webster's
Third World Dictionary, unabridged
1947)  is "of or relating to the beginning,"
or, in  other words to the first grant of
  the license in question. Neither this
  definition nor the statutory language
  offers any basis for distinguishing
  between first grants of licenses to
  existing sources and those which are
  physically new.
    In the more than six years since the
  NPDES system was authorized by the
  Federal Water Pollution Control Act
  Amendments of 1972, EPA has
  consistently treated the first grant of an
  NPDES permit to an existing source as
  "initial licensing" and this reading has
  been upheld by both courts which have
  considered the point. United States Steel
  Corp. v.  Train, 556 F.2d 822, 834-35 (6th
  Cir. 1977); Marathon Oil Corp. v.
  Environmental Protection Agency, 564
  F.2d 1253,1265 (9th Cir. 1977).
    Analogous provisions of the APA
  confirm that the exemptions made
  available for "initial licensing" may
  properly be used even when an existing
  source is being permitted. Whatever the
  examples of "licensing" Congress had in
  mind, Congress made the same
  exemptions available for all cases of
  ratemaking, and ratemaking of course in
  the majority of cases would involve
  existing companies.3
    (b) "Separation of functions" should
  be followed in initial licensing.
  "Separation of functions" iri the strict
  sense will be observed in proceedings
  under this Subpart. Whenever  an agency
  trial staff is named to perform an
  advocacy role in the hearing, separation
  of functions requirements will apply to it
  (§ 124.78).
   The comments on this point argued by
  analogy that persons involved in
 preparing the draft permit should not sit
 on the panel, and that members of the
 panel should not advise the
 Administrator'on  appeal. The APA
 contains no prohibition on either of
 these practices. Nevertheless, we have
 discussed them as though the literal bar
 on separation of functions in the narrow
 case was concerned.
   The legislative history of the  APA
 contains a number of statements
 cautioning agencies against overbroad
 application of the  exemptions which the
 text of the statute  provides from
 "separation of functions" requirements
 and from the requirement to prepare a
 proposed decision before making a final
 one. Several commenters argued that
 these statements demonstrated  that
 NPDES permitting is not the kind of
  'Under 5 U.S.C. sections 551 (4) and (5).
"rulemaking" includes "ratemaking". 5 U.S.C.
section 554. which contains the APA's separation of
functions requirements, states in subsection (a) that
it only applies to "adjudication", while sections
556(d) and 557(b) contain parallel exemptions from
other APA requirements for rulemaking and initial
licensing.
  "initial licensing" Congress had in mind,
  and that accordingly, these exemptions
  should not be applied to it.
    We disagree. As the preamble to the
  proposal stated, these exemptions were
  provided for cases which involved a
  complex array of factual and policy
  issues requiring a division of labor
  among the staff, and which were npt
  "accusatory". NPDES permitting easily
  meets both tests.
    Particularly where a permit to a major
  source is concerned, questions can arise
  concerning the nature of given industrial
  processes, their similarity to or
  difference from other industrial
  processes, and how this should affect
  control requirements or classification
  under effluent limitations guidelines. For
  section 301(c) determinations, EPA must
  consider the economic impact of the
  proposed discharge requirement, and
  alternative discharge requirements, on
  the plant itself and the company.
  Section 316(a) thermal variances can
  require consideration of the dispersal
  and persistence  of the discharge in the
  receiving waters, and its effect there on
  numbers of different species and the
  ecosystem generally. In many cases,
  certainty on these points will not be
  attainable; yet the final judgment will
  depend on highly discretionary
 judgments on a variety of legal and
 factual issues.
   In such cases, the final decision will
 depend largely on "policy" choices
 about how to choose among
 uncertainties and weigh various facts
 against each other, just as  it does, for
 example, when economic information of
 various sorts must be analyzed for rate-
 setting purposes, or information on
 traffic growth, company and community
 economic health, and other factors must
 be assessed for purposes of CAB or ICC
 route awards. These latter decisions are
 clearly among those which Congress
 meant to exempt from "separation of
 functions" requirements, and NPDES
 permitting in our view should be
 similarly classified.
 •  Similarly, the initial grant of an
 NPDES permit is  "non-accusatory" like
 these other decisions because it is the
 first time the Agency will have
 confronted the task of applying the
 standards of the statute to the particular
 discharge at issue. The Agency will
 have not made a prior decision to which
 it might feel compelled to adhere, as
 could be the case in renewal licensing,
 and whatever decision is made will not
 amount to a finding of legal wrong-
 doing.
  The legislative history of the APA, we
believe, recognizes these points. Both
the House and Senate Reports say at

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              Federal  Register / Vol. 44, No. Ill / Thursday, June  7, 1979 / Rules  and  Regulations
                                                                       32889
 one point that "instances" of the
 exempted categories may arise which
 "tend to be accusatory in form and
 involve sharply controverted factual
 issues'^ and where the exemption
 contained in 5 U.S.C. section 554(d) from
 separation of functions should not be
 invoked (emphasis added). As this
 preamble explains] the whole purpose of
 EPA's new provisions is to avoid being
 "accusatory in form" while for the
 reasons just given, EPA does not believe
 they are accusatory in substance. The
 logic of these passages accordingly does
 not apply.
   Both the House and the Senate reports
 also say that
   The alternative intermediate procedure [in
 5 U.S.C section 557[b) {1} and (2)] which an
 agency may adopt in rulemaking or
 determining applications for initial licenses is
 broadly drawn. But even in those cases, if
 issues of fact are sharply controverted or the
 case or class of cases tends to become
 accusatory in nature, sound practice would
 require the agency to adopt the intermediate
 recommended decision procedure, APA leg.
 Hist. p. 273, accord, p. 210 (emphasis added).

   This language only states that
 agencies should not omit an
 intermediate decision entirely under
 section 557(b)(2) in the described cases.
 There is no indication that an
 intermediate decision by an ALJ would
 be required; indeed, the implication is to
 the contrary. The text of 5 U.S.C section
 557 provides that as a general matter
 ALJs in adjudicatory proceedings must
 render "initial" decisions, but that in
 rulemaking and initial licensing any
 "responsible employee" may instead
 "recommend" a decision. Yet the quoted
 passages refer to a "recommended"
 decision (by a "responsible employee"),
 not an "initial" decision (by an ALJ).
   Under this reading, the quoted
 passage does not pertain to the
 procedures at issue here, which provide
 for a recommended decision by the
 panel in every case.
   In addition to these reasons based on
 the letter of the APA's language and
 legislative history, we believe EPA has
 made a legitimate effort to respond to
 the spirit of the statute. First, the
 procedures are not mandatory for all
 cases of initial licensing, and so the
 Agency will retain discretion to follow
 more conventional procedures in those
 cases where they are most appropriate.
 In general, EPA believes that Regions
 should consider using these procedures
 in'complicated cases where the record
will be long and technical. These are the
cases that will best justify the work of
assembling and using a panel, and that
will profit most from the increased
reliance on procedures other than cross-
 examination. Cases with few issues or
 issues that are easily focused should be
 handled through the more customary
 procedures. However, EPA also believes
 that Regions must have discretion to
 make this choice in individual cases,
 and that the only proper question for
 judicial review should be whether the
 procedure actually selected resulted in a
 legally satisfactory hearing, not whether
 some other procedure might have been
 better.
   Second, the procedures themselves
 have been structured to avoid as much
 as possible creation of an "adversary"
 or "accusatory" mentality through
 overreliance on courtroom devices.
 Finally, in response to comments, the
 regulations have been rewritten to
 ensure that there will be independent
 review of a permit during Agency
 decisionmaking, but in a way that
 avoids the costs of formal separation of
 functions.
   The regulations do this by stating that
 any hearing panel on a permit must
 include at least  two persons who had no
 connection with preparing the draft
 permit, and that when the Administrator
 reviews a permit, any persons assisting
 him or her directly in preparing the
 opinion must be "without substantial
 prior connection with the matter." This
 will ensure that at successive levels of
 review new people will take a fresh look
 at the permit, and that the same'small
 group will not be in charge of
 decisionmaking from start to finish.
   However, no restriction has been
 placed on who these new people may
 talk to. To do that would be in effect to
 re-adopt separation of functions with all
 its inefficiencies. Instead, the effort has
 been to build a system of "checks and
 balances" within the internal structure
 of the Agency that can serve the same
 purpose in a less costly manner. See n
 K. Davis,  Administrative Law Treatise
 11.10 at 87 (1958).
   For these reasons, we believe the
 elimination of formal "separation of
 functions" from  the new initial licensing
 procedures is well within the discretion
 recently recognized by the Supreme
 Court. "Absent constitutional
 constraints or extremely compelling
 circumstances, the administrative
 agencies should be free to fashion their
 own rules of inquiry and to pursue
 methods of inquiry capable of permitting
 them to discharge their multitudinous
 duties", Vermont Yankee Nuclear Power -
 Corp. v. NRDC, 98 S.Ct. 1197.1211 (1978)
 citing and endorsing language from two
prior opinions.
  (c) Third objection—variances are not
initial licenses. Many comments argued
that the proposed procedures-went too
far in applying the APA "initial
licensing" provisions to "the first
decision on any variance applied for by
a discharger." We believe our position is
supported both by the language of the
statute and by its purposes.
  Under the APA, " 'license' includes
the whole or part of any agency permit
. .  . [or] statutory exemption," and
" 'licensing* includes agency process
respecting the . . . amendment,
modification, or conditioning of a
license." (emphasis added) The
language of the statute, then, furnishes
no reason why a variance cannot be
regarded as a "license" in itself, either
as "part" of the existing permit or as a
"statutory exemption" from the
requirements. Granting a variance
similarly fits under the definition of
"licensing" both because the variance
can be viewed as a license in itself and
because in any event the proceeding
results in the actual or potential
amendment or modification of a permit.
  This line of construction could be
pressed so far that it gave results
contrary to the main purpose of the
statute. However, where the initial grant
of a variance is concerned, the results of
this approach are in harmony with those
purposes.
   The first decision on a statutory or
administrative variance granted to a
source will be the  first occasion on
which EPA will be applying  the policy of
that particular provision of the statute or
authorizing regulations to the given
discharge. Very often the factual and
policy considerations relevant to a
decision on that variance will be just as
wide-ranging, and just as incapable of
precise resolution, as the considerations
bearing on the initial grant of the basic
permit. For example, variances under
sections 301(g), 301(h) and 316(a) of  the
Act depend on predicting the impact of
the uncontrolled discharge on the entire
relevant ecosystem, while variances
under section  301(c) depend  on an
assessment and evaluation of the cost of
technology for a given plant and on-
drawing the conclusions that installing
this technology would be "beyond the
economic capability" of the source and
that alternate  requirements will result in
"reasonable further progress" toward
full control.
  Such decisions therefore, will often fit
the tests put forth above for determining
when a decision is "initial licensing."
Indeed, in Seacoast Anti-Pollution
League v. Costle, 572 F.2d. 872, 875 n.3,
879 (1st Cir. 1978), (henceforth
Seabrook} the  court held in effect that it
made little difference whether the
Seabrook proceedings were
characterized as the initial grant of a

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  32890       Federal Register  / Vol. 44, No. Ill / Thursday,  June  7, 1979 / Rules and Regulations
  permit under section 402 of the Act or
  the initial grant of a variance under
  section 316(a)—the procedures would be
  the same and would be governed by the
  "initial licensing" provisions of the APA.
    The one 21 year old case cited against
  this conclusion, Chotin Towing Corp. v.
  Federal Power Commission, 250 F.2d.
  394 (D.C. Cir. 1957} is not on point That
  case held that a proceeding to abandon
  a pipeline was not "initial licensing."
  The abandonment decision would
  presumably be made under the same
  statutory provisions the license was
  granted under, and would therefore not
  represent the first time the agency  took
  a position on those provisions in the
  context of the particular pipeline. By
  contrast, variances under the Clean
  Water Act result from the application  of
  statutory provisions on which the
  Agency will not previously have taken a
  position, and which therefore fit the
  purpose of the "initial licensing"
  provisions the way the abandonment
  proceeding at issue in Chotin Towing
  did not
    Experience, however, has shown that
  hearings for variance are seldom
  necessary. For instance, in all the
  fundamentally different factor variances
  decided to date, there has not been a
  question of fact at issue but if a
  particular situation applied to a
  quideline. In such cases, where facts are
  not at issue, the decision on the
  variances may be handled without a
  hearing but on the papers filed by
  interested parties.
   (d) Fourth objection—cross
  examination would be unduly limited.
  Many  comments asserted that the test
  for being granted cross-examination set
  forth in these procedures was too strict.
  The statute, however, states only that
  cross-examination must be allowed to
  the extent required for a "full and true
 disclosure of the [material] facts." A
 long line of commenters have criticized
 the tendency of formal administrative
 hearings to allow long and unproductive
 cross-examination. The procedures set
 forth in these regulations do no more
 than set forth in a manner essentially
 endorsed by one Court of Appeals, a
 method by which the standards of the
 statute may be particularized. Seabrook
 at 880. How rigorously they are applied
 will depend on the factual
 circumstances of each particular case.
  Commenters also asserted generally
 that the restrictions on cross-
 examination in these procedures
 showed that EPA was prepared to
 ignore important factual questions in
 initial licensing.
  On the  contrary, EPA believes that
resolving factual questions may often be
  important in initial licensing, though
  there may also be many cases where
  their resolution is not governing or
  where they cannot be resolved.
  However, there are many devices other
  than cross-examination for such
  questions. Written comments and panel
  hearings are two of them. These
  regulations have been structured to
  encourage the use of such alternative
  ways of resolving such important factual
  questions before the more cumbersome
  tools of cross-examination are called on.
    On a more specific point several
  commenters asserted that in requiring
  testimony to be submitted in written
  form in initial licensing, the regulations
  violated the holding in Seabrook.
  However, on March 24,1978,
  Administrator Costle issued a Response
  to the Remand Order in this opinion. In
  the document that Administrator said:
    The Court of Appeals disapproved the
  manner in which I requested written
  information *  *  * after the initial hearing had
  been held and when the case was on appeal
  to me.
    Under the Administrative Procedure Act
  the submission of evidence in written form
  may be required hi cases, such as this one,
  concerning the initial grant of a license or
  permit The court acknowledged that but held
  that this result had to be qualified by the
  special language of the Federal Water
  Pollution Control Act, which requires an
  "opportunity for public hearing" in permit
  cases.
   As 1 read the court's opinion, their holding
  on this point was motivated by a concern that
  all evidence received at an adjudicatory
 hearing be subject to a full opportunity for
 public comment and potential cross-
 examination. * * * I do not believe the court
 meant totally to exclude the use of written
 testimony in initial licensing cases such as
 this.
   The examples of abuse of the "written
 evidence" provision the court gave in its
 opinion all relate to evidence received after
 the hearing. Here I can appreciate the
 conclusion that evidence so received may, as
 a practical matter, be less exposed to public
 comment than it should be. even if a formal
 opportunity for cross-examination is
 provided.
  No such danger would arise if the evidence
 is provided before the hearing and can be the
 subject of comment argument, and potential
 cross-examination at it. In addition,  the
 hearing would provide a chance to correct
 any unanticipated deficiencies that might
 arise. Cf. Attorney General's Manual on the
 Administrative Procedure Act P. 78. (1947).
  By contrast, there is at least a possibility
 that an absolute right to present direct
 testimony orally could be abused for
 purposes  of delay in complicated or
 controversial cases.
  The trend of the law has been to allow
more latitude, not less, to agencies to require
the submission of complicated technical
material in written form to increase efficiency
  and avoid delay, as long as an adequate
  opportunity for public challenge and dispute
  was preserved. See 40 Fed. Reg. 40682,40703
  [Sept. 3,1975); 41 Fed. Reg. 5171&-17 (Nov. 23,
  1976).
   Beyond these considerations. I believe a
  careful reading of the conceptual framework
  of the court's opinion also supports the
  position! have adopted.
   The  question of the extent to which written
  evidence is proper under the APA only arises ~
  when an initial licensing decision must be
  made by formal adjudicatory procedures.
  Those  procedures are only applicable where
  the statute (or in some cases, due process)
  requires them. The court held mat where
  adjudicatory decisions are concerned, an
  intent to hold formal hearings should
  generally be inferred whenever the statute
  requires a "hearing" in connection with that
  decision.
   However, to hold that written evidence
  may not be required in initial licensing cases
  if the governing statute requires a "hearing"
  would  be inconsistent with that basic
  analysis. The "written evidence" provision
i  only applies when the statute requires a
  formal  hearing. It was deliberately inserted to
  govern such hearings. ^» say that it does not
  apply whenever the statute at issue requires
  a "hearing" would be in effect to say that it
  never or almost  never applied, since a
  statutory "hearing" requirement is necessary
  to make the APA applicable in the first place.
  It would be in effect to say that the same
  statutory reference that makes formal hearing
  procedures applicable generally also makes
  the "written evidence" provision for initial
  licensing cases inapplicable, even though
  Congress expressly inserted that provision as
  a general rule for formal hearing procedures.
   Though the Federal Water Pollution
  Control Act does not simply require an
  opportunity for a hearing, but an opportunity
  for a "public" hearing, I do  not believe that
  the presence or absence of this one word
  should  change the outcome of the analysis.
 There is no indication Congress intended
 such a sweeping result to follow, and the
 term has never been understood to carry this
 meaning. Indeed, virtually all hearings are
 "public" by definition and to the extent
 "public" has any explicit connotation, I take
 it to be  one of less, rather than more,
 formality—a hearing to receive public views
 and complaints, rather than to generate a
 record for decision.
  Instead, I take  the court's opinion to mean
 that where the statute requires a "public
hearing" any written evidence received must
come in before that hearing begins, or at it so
that it can be the subject of potential cross-
examination, or other types of challenge, in a
public forum.

  This  interpretation was not
challenged in the remand proceedings
and has now been decided  in EPA's
favor by the First Circuit, It is adopted
here.
  A related change has been made in
consequence. Comments  came in asking
about the relationship between "reply
comments" under  proposed § 124.119
and post-hearing briefs under § 124.123.

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               Federal Register /Vol. 44,  No. Ill  / Thursday, June 7,  1979 /  Rules and Regulations
                                                                         32891
  Since under the interpretation here
  adopted, reply comments could not
  contain testimonial material in any
  event, the "reply comment" provision
  and the section on post-hearing briefs
  perform the same function and the
  "reply comment" provision has been
  deleted.    '    .  j  ,    -
    Some commenters also argued that
  the use  of a panel violates the "on the
  record" decision requirement of the
  APA. However, as the court in the
  Seabrook case explicitly recognized,
  consultation among experts is legal and
  desirable in decisionmaking in technical
  areas. Seabrook at 872, 880-81. The
  statutory background discussed above
  explicitly contemplates that the decision
  in initial licensing cases may be the
  work of a group. See especially APA
  Leg. Hist, at 229.
    (e) Fifth objection—there is no need
  for two procedures. Several persons  •
  urged that having two types of
  procedures for making decisions on
  "initial licensing" would be cumbersome
  and create confusion beyond any
  purpose it might serve.
    We disagree. Procedures analogous to
  those set forth in Subparrt have been
  used in other contexts at EPA and have
  worked well. They have proved easy to
  follow and did not require undue
  explanation. The costs of delay and  lack
  of coordination in formal adjudication
  can be so great that a new approach
  would be justified if it saved time  and
- effort in only a few cases. We think the
  savings  from this approach will be much
  more considerable than that.
    The Natural Resources Defense
  Council  suggested that these procedures
  might be adapted to all NPDES permit
  decisions, which would make the
  creation of separate initial licensing^
  procedures unnecessary. Though this
  would be desirable as a matter of  policy,
  in EPA's judgment the legal differences
  between initial and non-initial licensing
  under the APA are too great to make
  such an  approach feasible. However,
  § 124.111{a)(3) has been amended  to   "
  allow applicants who do not come
  within the definition of "initial
  licensing" to voluntarily be subject to
  these procedures instead of Subpart H.
  A request under § 124.111(a)(3) made
  during the public comment period, if
  granted,  can have the effect of this
  Subpart superseding Subparts E and  G.
   (2) The Extent of Disagreement.
 Despite-the number of comments
 received on these proposals, EPA
 believes  the disagreement is more  about
 means than about ends. This emerges
 dearly from the following comments  of
 the Utility Water Act Group, which
 submitted the longest and most detailed
 analysis of these procedures. As an
 alternative to the proposed procedures,
 they suggested these steps:
   Hearing panels, with independent decision
 makers [sic] as suggested below, could be
 used either during the informal public  -
 hearings on draft permits or, in proper cases
 of initial licensing, during the adjudicatory
 hearing itself. They might under the
 supervision of the presiding officer, be used
 to write some or all of the technical portions
 of the decisions involved. Separate technical
 advice (perhaps drawn from the same  pool of
 technical persons involved in the hearing
 panels, but not including those persons
 involved in the particular case in question)
 could be provided to the Administrator on
 appeal. Thus, the advantages of technical
 input to the decisionmakers could be
 combined with independence of
 decisionmakers, both initially and  on review.
 This would fill the Agency's needs while also
 providing fair and impartial decision [sic]
 making.       	
   In the evidentiary hearing process,
 presiding officers can be authorized to
 impose very abbreviated cross-examination
 rights where proper initial licensing cases are
•involved, subject to the same sorts of tests
 articulated now in the separate [initial
 licensing] procedures. The Agency staff
 would function as party to these proceedings.
 But the rules could specifically require that
 they eschew an adversary position and act
 affirmatively to ensure that the record is
 adequate and that a reasoned and objective
 Agency decision results from the process.
 Participating staff members must be prepared
 to confess error, after hearing the evidence,
 on some positions which the staff originally
 took in the draft permit. [Utility Water Act
 Group Comments pp. 252-53.J
   These are the same basic ends EPA
 seeks through the special "initial
 licensing" procedures promulgated
 today. The only differences are that  the
 Agency believes that a strict, courtroom
 type separation of functions is  too costly
 in time, resources, and the quality  of the
 resulting decision to be compatible with
 that goal, and that a "non-adversary"
 agency staff can only be achieved  by
 removing it from participation in the
 inherently adversary setting of a trial-
 type hearing.4

 Comments on Specific Sections
 \124.111  Applicability.
   The major questions under this •
section, regarding the treatment of
existing sources, variances and the need
for an alternative procedure, have  been
discussed above. A new provision  has
been added to allow parties to elect to
follow this procedure hi cases that do
not involve initial licensing.
   One commenter raised the question
whether a permit to a source that has
  'For further (fiscustioa of these and other points
relating to these "initial licessing" procedures see
Pedersen The Decling of Separation of Functions in
Regulatory Agencies". 64 Va. L. Rev. 991 (1978).
 changed owners, would be considered an
 "initial license" potentially subject to
 these procedures. The answer is "No"—
 it is the first permit to the physical
 facility, not to the owning entity—that is
 significant under the purposes of the
 "initial licensing" provisions discussed
 above.

 § 124.112  Relation to other Subparts.
  A number of commenters point out
 that the procedures in this Subpart were
 not articulated in as much detail as the
 other evidentiary hearing provisions,
 and asked that more provisions be
 added.
  This lesser degree of formality was to
 some extent deliberate on EPA's part,
 since these proceedings are meant to be
 relatively less "judicialized" in form
 than those under Subpart H. For that
 reason, not all the suggestions on this
 point have been accepted. However, a
 substantial number have been, and
 therefore §124.112 has been added to
 specify the provisions from SubpaM E, F,
 G and H that are incorporated in this
 Subpart I by reference. ~
 \124.116  Notice of hearing.

  Under the proposal, the Regional
 Administrator would have issued the
 decision in all cases after the hearing.    ,
 This proposal left open the question of
 the role of the Presiding Officer in
 preparing that decision. To correct this
 ambiguity the regulations have been
 rewritten to provide that the Regional
 Administrator must choose, at the time
 the notice of hearing is issued, whether
 the decision will be issued in his or her
 name or in the name of the Presiding
 Officer. If the Presiding Officer is
 chosen, then the analysis and
 conclusions of the initial decision will
 be  wholly the responsibility of the
 Presiding Officer, though consultation
 with the panel and consideration of their
 views will be expected. If a Regional
 Administrator decision is chosen, the
 Presiding Officer will have no obligation
 to take part in preparing it, although he
 or she may take part.

 § 124.120  Panel hearing. •

  (1) Commenters attacked the
 provision in this section and §124.121
 requiring the Presiding Officer to consult
 with the panel before making rulings on
 cross-examination. They argued this
 might prejudice  the independence of the
 Presiding Officer.
  The APA allows decisions in "initial
 licensing" cases to be "institutional"
 decisions that draw on the training and
 experience of a number of different staff
members, rather than the work of the
Presiding Officer alone. These staff

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   32892      Federal Register / Vol. 44, No. Ill / Thursday, June  7, 1979 / Rules  and Regulations
   members must work from the record in
   preparing their decision. Under these
   regulations those staff members will
   also be members of the hearing panel or
   its support staff. Because the panel
   members will therefore have a stake in
   the contents of the record from which
   they will all have to work, it is
   appropriate for the Presiding Officer to
   consult them on key decisions that may
*-  help to shape that record. The Presiding
   Officer, of course, will retain the final
   power to rule on these matters.
     (2) Several commenters argued that
   the entire panel be present at any cross-
   examination  under this section. This
   comment has been accepted, so that all
   panel members, to the extent feasible,
   be present

   Subpart]—Miscellaneous
   § 124.131  Public access to information.
     A number of commenters suggested
   that trade secret information either
   should not be disclosed to other persons
   in NPDES proceedings, or should only
   be disclosed subject to specific
   safeguards. The handling of trade secret
   information has not generally been a
   problem  in NPDES proceedings, in part
   because  the statute restricts the types of
   information that qualify.
    However, to remove any ambiguity
   EPA has added a reference to EPA's
   general regulations on this point to this
   section to make clear that they continue
   to govern except to the extent that the
   Clean Water Act mandates disclosure.

   i 124.132 Delegation of authority; time
 -limitations.
    Quite a few commenters urged that
  EPA should set additional deadlines for
  its actions under this Part, or that failure
  to meet the deadlines already
  established should have more drastic
  consequences. These comments have
  not been  accepted. The Agency's
  workload, commitments, and future
  resources are too unpredictable to make
  it advisable for any more binding
  deadlines to be set. One of the major
 purposes  of these revisions is to speed
 the processing of permits and that result
 should be evident whether or not more
 deadlines are established.

 § 124.133   EPA Headquarters approval
 of stipulations or consent agreement.
   Some coinmenfers also question the
 provision  that all stipulations be
 approved  by the EPA Deputy Assistant
 Administrator for Water Enforcement.
 This provision has been retained
 because cases  which are settled upon
 stipulation after having been set down
 for hearing are apt to be the major
 controversial cases for which a specific
  provision for central review is
  appropriate. However, it has been
  rewritten and renumbered to make clear
  that only stipulations which settle the
  case or a major portion of it are subject
  to this provision.
  § 124.135  Effective date.

   While Parts 121,122,123,125, and 403
  will Be effective 60 days after issuance,
  this is a new section which states that
  Part 124, with some exceptions, shall not
  be effective until 120 days after
  issuance. This extra tune is necessary to
  allow EPA Regional Offices and NPDES
  States to change internal operating
  procedures as necessary.
  V. Part 125—Criteria and Standards for
  the National Pollutant Discharge
  Elimination System

   A. What Does This Part Do? Part 125
  contains requirements or standards
  which must be applied by EPA or
  approved States in making specialized
  types of permit determinations. One or
  more of these determinations must often
  be made in the course of permit issuance
  or modification.
   B. How Does This Part Relate To
  Existing Regulations? Three of the
  Subparts contained in this Part are
  taken from existing, i.e., former, EPA
  regulations. Subpart B (proposed
  Subpart C) establishes the  criteria for
  issuance of permits to aquaculture
-  projects. These criteria are substantially
  the same as the criteria in former 40 CFR
  115.10. The other requirements of former
 40 CFR Part 115 are now contained in
 various sections of Part 122 and 124.
 These regulatory revisions  were.made in
 response to the 1977 amendments to
 section 318 which stated that such
 permits must now be issued pursuant to
 section 402 of the Act. Since the
 requirements of former Part 115 are now
 contained in these regulations. Part 115
 is deleted. Subpart H (proposed Subpart
 I) establishes the criteria for determining
 alternative effluent limitations under
 section 316(a) of the Act. The criteria are
 substantially the same as in former 40
 CFR Part 122. Since the requirements of
 former Part 122 are now contained in
 these regulations, former Part 122 is
 deleted. Subpart J {proposed Subpart JQ
 establishes the criteria for extending
 compliance dates under section 301 (i) of
 the Act. This Subpart ] incorporates the
interim final section 301 (i) regulations
published on May 16,197a
  Two of the Subparts contained hi Part
125 were proposed for the first time on
August 21,1978. Subpart A establishes
criteria and standards for imposing
technology-based treatment
requirements under section 301(b) of the
 Act. Subpart D (proposed Subpart E)
 establishes criteria and standards for
 determining fundamentally different
 factors under sections 301(b)(l)(A),
 301(b](2)(A), 301(b}(2)(E) and 307(b) of
 the Act.
   One Subpart contained in this Part
 was proposed for the first time on
 September 1,1978. Subpart K (proposed
 reserved Subpart L) establishes criteria
 and standards for imposing best
 management practices for ancillary
 industrial  activities under section 304(e)
 of the Act.
   C. How Does This Part Relate to the
 August 21,1978 Proposed Regulations?
 The following is a discussion of the
 significant comments received and the
 basis for revisions made to Part 125 of
 the proposed regulations. Minor
 editorial changes have been made in all
 sections.

 Proposed Reserved Subparts

   Proposed reserved Subpart B—EPA
 Objection  to State-Issued Permits Under
 Section 402(d}(2] of the Act. This
 Subpart was reserved for the provisions
 of former 40 CFR § 124.42. .EPA has
 decided to move these requirements to
 § 123.23 so that all requirements relating
 to State permit programs will appear in
 that Part

 Proposed Reserved Subpart L—Criteria
 and Standards for Best Management
 Practices Under Section 304(e) of the
 Act,

   This Subpart was reserved in the
 August 21,1978 proposal. On September
 1,1978, EPA proposed regulations
 establishing criteria and standards for
 best management practices under
 section 304(e) of the Act. These
 regulations are now incorporated in part
 in the final regulations as Subpart K, A
 more detailed discussion of this Subpart
 is found in the preamble discussion of
 Subpart K.

 Other Proposed Reserved Subparts.

  Other proposed reserved Subparts
 remain reserved pending development
 of criteria and standards. These
 Subparts are relettered as follows:

Subpart C (proposed Subpart D)—Criteria
fcr Extending Compliance Dates for
Facilities Instating Innovative Technology

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              Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979  / Rules and Regulations       32893
  Under Section 301(k) of the Act
  Subpart E (proposed Subpart F)—Criteria
  for Granting Economic Variances from BAT
  Under Section 301(c) of the Act
  Subpart F (proposed Subpart G>—Criteria
  for Granting Water Quality Related
  Variances Under Section 301(g) of the Act
  Subpart G (proposed Subpart H)—Criteria
  for Modifying the Secondary Treatment
  Requirements Under Section 301(h) of the
  Act (criteria proposed as 40 CFR 233,
  Subpart B on April 25,1978).
  Subpart I (proposed Subpart J)—Criteria
  Applicable to Cooling Water Intake
  Structures Under Section 316(b) of the Act
  Subpart L (proposed Subpart M)—Criteria
  and Standards for Imposing Conditions for
  the Disposal of Sewage Sludge Under
  Section 405 of the Act

  Subpart A—Technology-Based
  Treatment Requirements

    This Subpart establishes the criteria
  and standards for imposing technology-
  based treatment requirements of the
  Clean Water Act into permits under
  section 301(b). It clarifies and sets forth
  in regulatory form the long-standing
  EPA policy that these technology-based
  treatment requirements represent the
  minimum levels of controls under
  section 402, and that  they cannot be
  satisfied through the  use of "non-
  treatment" techniques such as flow
  augmentation and in-stream mechanical
  aerators (although such techniques may
  be used to achieve water quality
  standards in certain limited
  circumstances).
   Technology-based  requirements may
  be imposed in permits through the
  application of an EPA promulgated
  effluent guideline or on a case-by-case
  basis under section 402(a)(l) of the Act.
  Case-by-case determinations must
  consider: the factors listed in section
 304(b) of the Act for development of
 EPA effluent guidelines; EPA draft or
 proposed development documents or
 other guidance; and other appropriate
 factors.
   Commenters had little difficulty with
 the requirement that EPA promulgated
 effluent guidelines limitations must be
 applied in permits but several argued
 that EPA cannot require technology-
 based effluent limitations to be included
 in State-issued permits until EPA has
 promulgated effluent guidelines, citing
 Ford Motor Co. \. EPA, 567 R2d 661 (6th
 Cir. 1977) and Washington v. EPA, 573
 F.2d 583 (9th Cir. 1978). EPA disagrees
 and believes that these commenters
 misread those cases. EPA believes that
 issuance of these regulations satisfies
 the criteria expressed  by the court in
Ford Motor Co. v.EPA. (which indicated
  that EPA may "veto" State-issued
  permits only on the basis of validly
  promulgated EPA regulations or clear
  statutory requirements). For example,
  § 125.3 contains a clear and explicit
  requirement that even if effluent
  limitations guidelines have not been
 , promulgated for a class or category of
  point sources, State and Federal permit
  issuers are obligated to establish
  technology-based permit requirements.
  See United States Steel Corp. v. Train,
  556, F.2d 822 (7th Cir. 1977). As to the
  decision of the Ninth Circuit in
  Washington v. EPA, the court there held
  that the requirements of sections 301
  and 304 of the Act are not self-
  executing, and that there were no
  regulations which would support a veto
  by EPA. The Agency believes that these
  regulations provide the support the court
  found lacking in Washington v. EPA,
  and that States can properly be required
  to set case-by-case  technology-based
  effluent limitations  even where EPA has
  not been able to promulgate effluent
  limitations guidelines. This requirement
  is also supported by the decision of the
  Sixth Circuit in Republic Steel Corp, v.
  Costle, 581 F.2d 1228 (1978).

  Subpart B—Aquaculture

    Subpart B (proposed Subpart C) sets
  out the criteria and  standards for
  approving aquaculture research projects.
  The final version is  essentially
  unchanged from the proposal except for
  § 125.11(a)(4). Two commenters pointed
  out that the proposal requiring the crop
  be fit for human consumption was too
  strict, in that it precluded crops which
  may be consumed by animals or plants.
  Therefore, this requirement was
  changed to require only that the crop not
  have a significant potential for human
  health hazards resulting from its
  consumption. As stated earlier, this
  Subpart incorporates the criteria found
  in former 40 CFR Part 115,  and since the
  other requirements of 40 CFR Part 115
 have been incorporated into the NPDES
 regulations revision, 40 CFR Part 115 is
 deleted.

 Subpart D—Fundamentally Different
 Factors Variances

   Subpart D (proposed Subpart E)
 establishes the criteria for  determining
 whether a particular industrial
 discharger should be subject to more or
 less stringent effluent limits than those
 required by national effluent limitations
. guidelines or pretreatment  standards
 promulgated under sections 301(b)(l)(A),
 301(b)(2}(A) and (E), and 307(b) of the
 Act ("national limits"), because of site-
 specific "fundamentally different
 factors". When EPA establishes national
 limits under these sections of the Act,
 EPA considers a great deal of
 information regarding the appropriate
 statutory factors from various
 dischargers in an industrial category. In
 some cases, however, data on a
 particular discharger may not be
 available or may not be considered. It
 may therefore be necessary, on a case-
 by-case basis, to vary the nationally
 prescribed limits for a particular
 discharger if the relevant statutory
 factors relating to that discharger are
 shown to be fundamentally different
 from those previously considered by
 EPA.
   No discharger, however, may be
 excused from the Act's requirement to
 meet BPT, BCT, BAT or a pretreatment
 standard through this variance clause. A
 discharger may instead receive an
 individualized definition of such a
 limitation or standard where the
 nationally prescribed limit is shown to
 be more or less stringent than
 appropriate for the discharger under the
 Act.
   Subpart D is substantially similar to
 proposed Subpart E. However, the
 provisions have been reorganized and
 edited for greater clarity and have been
 revised in certain respects in response
 to public comments.
   In response to some comments, EPA
 has deleted proposed §  125.26(a)(9). This
 paragraph would have prohibited a
 variance for a discharger if, as a result
 of the variance, other dischargers (or
 nonpoint sources) would be subject to
 additional controls through water
 quality wasteload allocations. EPA
 agrees that potential changes to
 wasteload allocations are irrelevant
 when considering the appropriate
 technology-based limitation for a
 particular discharger under the Act.
   EPA has also modified proposed
 § 125.26(b)(3) (now § 125.31(d)(3)) by
 deleting  the requirement that a
 treatment technology must cause a
 violation of State or Federal law to be
 considered an adverse non-water
 quality impact. EPA recognizes that a
 discharger's non-water quality impact,
 while not in violation of the law, could
 be fundamentally worse than the impact
 of the dischargers EPA studied when
 promulgating a national limit.
  EPA has been prompted by other
 comments to add a new provision
 (§ 125.31(e)(4)) which makes clear that
 specific receiving water quality is not a
 relevant factor in the fundamentally
 different  factors variance context To
 allow relaxation from technology-based
 limits because of case-by-case
variations in receiving water quality
would be grossly violative of the Act

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  32894       Federal Register /  Vol.  44,  No. Ill /  Thursday,  June 7, 1979 / Rules and Regulations
  and contrary to its fundamental
  principles. Weyerhaeuser Company v.
  Costle. 11 ERG 2149, 2170-73 (D.C. Cir.
  1978); Appalachian Power Company v.
  Train, 545 F.2d 1351,1360,1378 (4th Cir.
  1976); In Re Louisiana-Pacific Corp., 10
  ERG 1841 (Administrator's Decision
  1977). Similarly, new § 125.31(f) makes
  clear that nothing in the variance
  provisions impairs rights of States and
  localities under section 510 of the Act.
  Thus, a State or local government need
  not grant a variance even if a discharger
  satisfies all of the requirements of
  Subpart D.
    It should be stressed that only
  "fundamental" differences may qualify a
  discharger for a variance. The above-
  cited authorities and the Act's
  legislative history show that Congress
  intended for plants in a given industrial
  category to meet technology-based
  limitations which are as uniform  as
  possible. EPA's national limits are
  therefore "presumptively applicable,"
  Appalachian, supra at 1358, and the
  variance clause must assure that  the
  "pin-hole safety valve envisioned in the
  Act and duPont does not become a
  yawning loophole." Weyerhaeuser,
  supra at 2169. Accordingly, a discharger
  should not expect to  obtain a variance
  by merely showing certain differences
  between itself and the plants EPA
  studied since no two plants in the
  country are exactly alike. The
  discharger must instead show such a
  substantial difference with respect to
  one or more of theTelevant statutory
 factors that either (i)  the costs of
 complying would be wholly out of
 proportion to the costs EPA considered
 on a national basis or (ii) the non-water
 quality environmental impact (including
 energy requirements) would be
 fundamentally more adverse than the
 impacts EPA considered on a national
 basis.
   Paragraph 125.31(e){2) provides  that a
 variance may not be granted on the
 basis that a technology which EPA
 relied upon in establishing a national
 limit will not achieve the limit at a
 particular discharger's plant. Rather, a
 variance must be based on a showing
 that the discharger's plant is
 fundamentally different from the plants
 EPA studied. If a discharger does not
 believe that EPA's national limit is
 supported by a technology which EPA
 identified in its rulemaking record, the
 discharger's legal recourse is to seek
 judicial review of the national limit
 under section 509(b)(l)(E) of the Act
 within 90 days after promulgation.
Alternatively, if the discharger's
arguments are based solely on grounds
which arose after this 90-day period, the
  discharger's remedy is to petition EPA
  for an amendment to its national rules.
  (See Administrator's final decision in
  the matter of Martin Marietta
  Aluminum, Inc.'s request for variance
  approval, October 1977, at pp. 15-16.)
   Finally, as in the proposal, this
  Subpart does not apply to national limits
  promulgated in 40 CFR Part 423 (steam
  electric genera ting point source
  category). Pursuant to an order of the
  U.S. Court of Appeals for the Fourth
  Circuit, EPA has already published a
  new BPT variance clause for that
  industry; 43 PR 44846, September 29,
  1978. EPA plans to propose an
  appropriate BAT variance clause for this
  category at the same time it proposes
  new BAT limitations for steam electric
  plants in compliance with the 1977
  Clean Water Act Amendments.
  Subpart H—Criteria for Determination
  of Alternative Thermal Effluent
  Limitations Section 316(a).
   Subpart H (proposed Subpart I) is
  unchanged except for the addition of
  language regarding demonstrations of
  prior applicable harm discussed below.
  This language is now found in new
  § 125.72, Early screening of applications
 for section 316(a) variances, {proposed
  § 124.13); this section was moved into
 Part 125 because EPA believes it is more
 in the nature of a substantive, rather
 than a procedural requirement.
   Commenters questioned why EPA did
 not discuss the use of "absence of prior
 appreciable harm"  demonstrations for
 obtaining thermal variances  under
 section 316. EPA considers the "absence
 of prior appreciable harm"
 demonstrations to be very important
 part of the section 316(a) process, and
 when warranted, encourages their use.
 EPA excluded reference to this type of
 demonstration because detailed
 guidance on how and when to conduct
 them will not be included in these
 regulations. However, for clarification, a
 reference to "absence of prior
 appreciable harm" has been added to
 this section.
   The regulations have also been
 revised to provide that the specific
 forms of studies prescribed apply only
 to the initial grant of a section 316{a)
 variance. In many cases, neither the
 nature of the thermal discharge nor the
 aquatic population will have changed
 since a variance was initially granted. It
 would therefore be an unnecessary and
 costly burden on the Agency and
 dischargers alike to require a full section
316(a) demonstration for each renewal
Section 125.72 accordingly gives the
Director the flexibility to require
substantially less information in the
 case of renewal requests. This does not
 mean, however, that the Director may
 not require a full demonstration for a
 renewal in cases where he has reason to
 believe that circumstances have
 changed, that the initial variance may
 have been improperly granted, or that
 some adjustment in the terms of the
 initial variance may be warranted.
 Persons holding such a variance should,
 of course, be prepared to justify its
 continuation with studies based on
 actual operating experience, and a
 comment has been added to that effect.
   One commenter suggested that the
 definitions of "representative important
 species" and "balanced indigenous
 community" should include only native
 species unless otherwise designated by
 the Director. Another commenter
 suggested the inclusion of all species.
 EPA has not changed this language.
   Several commenters argued that
 applicants should not be required to
 analyze cumulative effects of thermal
 discharges together with other sources
 of impact upon the affected species as
 required by proposed § 125.47(a) (now
 § 125.72(a)J. This issue was addressed in
 the Administrator's first Seabrook
 decision which concluded that analysis
 of cumulative effects is required.
   Several commenters pointed out that
 the criteria in proposed § 125.47 (now
 § 125.72) are vague. The criteria have
 intentionally been written in a general
 manner because, as one commenter
 noted, factors in section 316(a)
 demonstrations are site-specific. Indeed,
 Agency experience in reviewing section
 316(a) requests under the more detailed
 criteria of the former part 122 ("Thermal
 Discharges") has shown the
 inappropriateness of such criteria and
 has led to the more general criteria of
 present Part 125, Subpart H.

 Subpart J—Criteria for Extending
 Compliance Dates Under Section 301(i)
 of the Act

   Proposed Subpart K (now Subpart J)
 was reserved for the criteria for
 extending compliance dates under
 section 301(i) of the Act. On May 16,
 1978, EPA published interim final
 regulations implementing section 301(i)
 of the Act (43 FR 21266). Sectidn 301(i)
 authorizes the Administrator, or where
 appropriate, the State Director, to grant
 timely requests for permits extending
 the July 1,1977 statutory treatment
 requirements to no later than July 1,
 1983. These extensions are potentially
 available only to POTWs that require
 construction to meet 1977 treatment
 levels and to certain dischargers which
planned, in good faith, to discharge into
a presently unavailable POTW ("tie-

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               Federal Register J  Vol. 44,  No. Ill  /  Thursday,  June 7, 1979 / Rules and Regulations      32895'
  ins")- The purpose of the interim final
  regulation was to establish the criteria
  for granting section 301(i) extensions
  and the method for incorporating these
  extensions into permits issued under
  section 402 of the Act. A 60-day
  comment period was provided, and the
  Agency received li written comments.
    The EPA response to significant
  comments, including the development of
  an Interim National Municipal Policy
  and Strategy [Notice of Availability
  published 43 FR 47774, October 17,1978)
  is described below.

  The Enforcement Compliance Schedule
  Letter (ECSL) Policy

    In the preamble to the interim final
  regulation, EPA announced that no more
  municipal ECSLs or comparable State
  procedural mechanisms would be issued
  "[sjince section 301[i) and the ECSL are
  different solutions to the same
  noncompliance "problem" (43 FR 21267).
  The preamble further stated that ECSL
  holders should elect a remedy, they
  could either request  a section 301(i)
  extension and thus ultimately give up
  the ECSL or not request a section 301(i)
  and thus retain the ECSL. EPA strongly
  encouraged all potentially eligible
•  POTWs, whether or  not they held an
  ECSL, to request section 301(i)(l)
  extensions. In response to this effort,
  over 9,500 POTWs have requested
  section 301(i)[l) extensions while
  slightly more than 600 POTWs elected to
  retain their ECSLs. Thus, almost every
  POTW in the Nation which needs
  construction to meet the 1977  treatment
  deadline has either taken advantage of
  section 3Ql(i}(l) or chosen to retain its
  ECSL. One commenter expressed the
  belief that all ECSLs  should remain in
  effect and that the prior granting  of an
  ECSL indicated a finding of good faith
  and therefore should be dispositive of a
  section 301(i) request. EPA does not
  intend to change its policy on  the effect
  of an extension request on an  ECSL
  because to do so after the deadline  for
  301(i}{l) requests (June 26,1978) would
  unfairly penalize the  600 ECSL holding
  POTWs which may have relied on this
  EPA policy in deciding not to request an
  extension. EPA also continues to  believe
  that the prior granting of an ECSL is not •
 dispositive of a 301(i) request and that
 Congress intended for each request  to
 be considered independently in light of
 the statutory criteria and actions by the
 ECSL-holder subsequent to the issuance
 of the ECSL.
   EPA is aware of possible situations
 under section 301(i)(2) where an
 extension request must be denied for
 reasons completely outside the control
 of the discharger (e.g. the POTW did not
 request or receive a section 301(i)(l)
 extension as required by the Act). In
 such a situation, the use of a section
 309{a)(6) order to "tie-in" (or
 comparable State procedural
 mechanism) may be appropriate.

 Eligibility for a Section 301(i)(l)
 Extension

   Under interim final § 124.103, a POTW
 would be eligible for a section 301(i)(l)
 extension if, among other requirements,
 it required construction to achieve
f statutory treatment limitations. The term
 "construction" was defined in interim
 final § 124.102(a).  One commenter
 suggested that the definition of
 "construction" should be the same as -
 the definition in section 212 of the Act.
 EPA agrees with this comment,
 particularly since  the granting of a
 section 301(i)(l) request and the
 awarding of Federal financial assistance
 are closely related. The definition of
 "construction" has been changed
 accordingly.
   Under interim final § 124.103(a), a
 POTW that needed construction to
 achieve the. statutory treatment
 limitations and that had begun "actual
 construction, . . before July 1,1977, but
 construction could not physically be
 completed by July 1,1977, despite all
 expeditious effort of the POTW" was
 eligible for a section 301(i)(l) extension.
 "Actual construction" was intended to
 mean that the POTW must have begun a
 continuous program of physical
 construction of the facility before July 1,
 1977, as opposed to actions which have
 been abandoned or are so insignificant
 that they did not lead to completion of
 the facility. However, *vhen the EPA
 Regional offices and NPDES States
 began to process section 301(i)(l)
 requests it became apparent that there
 was some confusion as to what "actual"
 construction meant since only the term
 "construction" was defined. Therefore,
 EPA has clarified this concept by
 replacing the term "actual construction"
 with the definition of the term "initiation
 of construction" to allow a precise
 definition which is consistent with the
 construction grants definition found at
 40 CFR § 35.905. Thus, under §  125.93 a
POTW would be eligible for a section
301(i)(l) extension if it: (1) needs
construction to achieve the  statutory
treatment limitations; (2) before July 1,
1977, issued a notice to proceed under a
construction contract for any segment of
Step 3 project work (or executed a
construction contract if notice to
proceed was not necessary) and (3)
made all expeditious efforts to complete
construction.
   Under interim final f 124.103(b) (now
 § 125.93(b)), a POTW that needed
 construction to achieve the statutory
 treatment limitations and did not
 complete construction because
 "{Fjederal financial assistance was not
 available, or was not available in time
 for construction required to achieve
 these limitations, and the POTW did not
 in any significant way contribute to this
 unavailability or delay", was eligible for
 a section 301(i)(l) extension. This
 criterion has not been changed. EPA
 recognizes that many POTWs,
 especially minor POTWs, meet this
 requirement but will not receive Federal
 funding in time (or at all) to complete
 construction by July 1,1983. Since, by
 the terms of the Act, these POTWs
 cannot be granted a section 301(i)(l)
 extension, EPA has developed an
 Interim National Municipal Policy and
 Strategy which indicates that such
 POTWs should receive 309(a)(5)(A)
 Administrative Orders (or comparable
 State procedural mechanisms) which are
 also based on the Construction Grant
 process. These orders, like  301(i)(l)
 extensions, should not be written to
 extend the July 1,1983 deadline.

 Section 30l(i)(l) Compliance Schedules

   Many commenters expressed
 confusion as to when fixed date
 compliance schedules, as opposed to
 floating or ratchet compliance
 schedules, should be used. This
 confusion was as a result of the use  of
 the phrases "when the availability of
 Federal funding is certain"  and "when
 the availability of Federal funding is
 uncertain" to indicate what type of
 schedule should be used. EPA
 discourages the use of ratchet schedules
 or floating schedules because they
 decrease the ability of the public to
 participate in the permit process.
 Furthermore, by definition,  if the
 availability of Federal funding is so
 uncertain that compliance with the July
 1,1983 deadline cannot reasonably be
 assured, then the POTW is  not eligible
 for a section 301{i) extension. Thus the
 regulations now require fixed date
 compliance schedules in all instances. In
 the Interim National Municipal Policy
 and Strategy, EPA established the
 priority in which section 301(i)(l)
 extension requests should be
 considered. Generally, projects in the
 earliest stage of the Construction Grant
 process (i.e., Step 1) are to be processed
 last. One of the reasons for  giving Step 1
projects lowest priority was that EPA
recognized that uncertainties in the Step
1 planning process, such as  the need to
prepare an Environmental Impact
Statement or to make changes after a

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   32896       Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979 / Rules and Regulations
   public hearing, make it difficult to
   project the amount of time it will take to
   complete the Step 1 planning process.
   However, if after acting on requests
.   from POTWs in Steps 2 and 3,
   extensions are granted for POTWs in
   Step 1, fixed dates for the submission of
   a facility plan should be used,
   recognizing that up to a four month
   slippage without permit modification is
   allowable. Permits issued during or .prior
   to Step 1 planning generally should be
   written to expire on the date set for
   submission of a facility plan. The
   reissued permit will then contain a fixed
   date compliance  schedule derived from
   the facility plan. However, if the
   permitting authority is  able to accurately
   establish dates certain beyond the Step
   1 process, such dates may be included in
   the permit.
    When developing fixed date
   compliance schedules based on the
   construction grant process, the permit
   issuing authority should assume that
   appropriation will be provided in
   accordance with  the EPA Annual
   Operating Guidance. Use of this
   approach in developing permit
  compliance dates will be considered
  sufficient to meet the requirement that
  the permit assure that the July 1,1983
  deadline will be met. It should also be
  noted that while the regulations
  contemplate certification that funding
  will be available in time to complete
  construction by July 1,1983 to be by
  whatever method the EPA Regional
  Office and the State agree on, the mere
  granting of a section 301(i)(l) extension
  by  an NPDES State does not constitute
  certification.

  Subpart K—Criteria and Standards for
  Imposing Best Management Practice
  Under Section 304(e) of the Act

   Proposed Subpart L (now Subpart K)
  was reserved for the criteria and
  standards for imposing best
  management practices under section
  304(e) of the Act On September 1,1978,
  EPA published proposed regulations
  establishing these criteria and standards
  (43 FR 39282). Section 304(e) of the Act
 authorizes the Administrator to publish
 regulations to control plant site runoff,
 spillage or leaks, sludge or waste
 disposal, and drainage from raw
 material storage which may contribute
 significant amounts of toxic and
 hazardous pollutants to navigable
 waters. The purpose of Subpart K is to .
 prevent discharges of toxic and
 hazardous substances from facilities
 which are subject to the  NPDES. In
 NRDC v. Costle (Runoff Point Sources)
 the court recognized EPA's authority
 under section 402(a)(l) of the Act to
  include BMPs in permits where numeric
  effluent limitations are infeasible or
  where reasonably necessary to achieve
  effluent limitations and standards (see
  §122.15{g) (2) and (3) and preamble
  discussion to § 122.15(g)). Subpart K,
  however, addresses EPA's authority- to
  require BMPs under section 304(e) of the
  Act.
    On September 1,1978, EPA also
  proposed Spill Prevention Control and
  Countermeasure (SPCC) regulations
  under the authority of section
  311(j)(l)(C) of the Act. Section
  311(j)(l)(C) authorizes the issuance of
  regulations establishing procedures,
  methods and equipment to prevent
  discharges of oil and hazardous
  substances from vessels and from on-
  shore and off-shore facilities and to
  contain such discharges. The purpose of
  proposed 40 CFR Part 151 was to
  prevent discharges of hazardous
  substances from facilities subject to
  section 402 permitting requirements.
   The approach used in both proposed
  regulations was similar to the one
  developed and used in EPA's oil
  pollution prevention regulation, 40 CFR
  Part 112. This was the concept of a plan
  developed by the owner or operator of a
  facility or by his/her engineer, hi
  accordance with guidelines contained in
  the respective regulations. The proposal
  required that the plans be certified by a
  registered professional engineer and
  subsequently implemented by the owner
  or operator.
   The requirements of the two proposed
 regulations (40 CFR Parts 125 and 151)
 were coordinated and the proposals
 stated that compliance by a facility with
 the provisions of the SPCC plan
 requirements set out in 40 CFR Part 151
 would be established as a minimum
 level of control for the BMP plan
 required by 40 CFR Part 125. The
 purpose of publishing the two
 regulations concurrently was to allow
 the owner or operator of a permitted
 facility to develop BMP and SPCC plans
 concurrently and thereby avoid
 duplication of environmental controls.
 The proposal stated that SPCC plans
 could be incorporated'into BMP Plans
 by reference.
  A thirty-day comment period was
 provided which was extended twenty
 days (43 FR 47213, October 31,1978).
 The Agency received 75 comments and
 EPA's response to the significant
 comments is described below.
  Several comments were received
 suggesting that BMP Plans and SPCC
Plans are duplicative and should be
developed together. Other comments
requested a clarification of the
relationship between the two. Finally,
  some comments argued that since BMPs
  and SPCC Plans are authorized by
  different sections of the Act, they are
  therefore designed for different purposes
  and should not be linked. In response to
  the first comment, EPA wishes to point
  out that BMP Programs and SPCC Plans
  are being developed together. This first
  step in this development is Subpart K,
  i.e., BMPs which involve minor new
  construction or modifications to existing
  facilities. The second step will be SPCC
  Plans (and perhaps another BMP
  regulation) which will emphasize
  secondary containment to control spills
  and may require major construction for
  drainage control, sewering and diking.
   EPA believes that a requirement for
  BMP programs is a necessary step at
  this  time, for a number of reasons. Many
  industrial permits were issued during
  1974 and 1975 and will be due for
  renewal before the SPCC requirements
  under section 311 become effective.
  Since the timing for preparation of SPCC
  plans by NPDES-pennitted facilities will
  be tied to permit reissuance, many
  facilities would be  subject to no spill
•  prevention controls at all until 1984 or
  1985. The development of a BMP
  program by such facilities will focus
  attention on the potential for spills and
  other unplanned discharges and help to
  prevent such occurrences until the time
  SPCC requirements become effective.
  BMP programs will be compatible with
  later requirements for SPCC plans, and
  steps taken in implementing a BMP
  program will satisfy some of the SPCC
  requirements. Additionally, EPA
  believes that prevention of unplanned
  releases of toxic materials requires
  actions by facilities not yet subject to
  SPCC requirements, and that the BMP
 program is an effective and relatively
 inexpensive way to achieve such
 prevention.
   EPA also agrees with some
 commenters that, while both BMPs and
 SPCC Plans have many common
 features, their emphasis is different.
 Facilities subject to the NPDES Program
 normally have continuous discharges of
 wastewater and the capability to treat
 that wastewater. SPCC Plans, on the
other hand, focus on classic spill events
and may require containment. Thus,
there is some overlap between BMPs
and SPCC Plans (BMPs are normally a  "
subpart of SPCC Plans) and therefore a
need exists for a regulatory link. It
should be noted that BMPs are broader
than SPCC Plans in  one sense because
BMPs control both section 307 and 311
pollutants whereas SPCC Plans control
only section 311 pollutants.
-  Many commenters argued that the
economic impact of the proposed      f

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              Federal Register / Vol. 44, No. Ill / Thursday,  June 7, 1979  /  Rules and Regulations
                                                                        32897
 regulations would be excessive and that
 the benefits to the environment would
 not justify the^expense of employing the
 BMPs contemplated by the regulation.
 Although EPA explicitly requested
 information in the preamble to the
 proposed regulation (43 FR 39282)
 concerning the costs of BMPs and
 preparation of BMP plans for particular
 industries, few commenters directly
 addressed costs. It appears that the
 major categories of expense in the
 proposal were for SPCC related
 requirements. Because of this economic
 impact, EPA has revised today's
 regulations to make inclusion of SPCC
 plans in BMP programs discretionary
 rather than mandatory as was proposed.
 (See § 125.104(b)(4](i}.) Thus, Subpart K
 emphasizes BMPs of a procedural nature
 (especially preventive maintenance and
 housekeeping] and BMPs requiring only
 minor construction.
   Based on a recent EPA survey of
 representative plants in the chemical
 industry, it appears that many of these
 type of BMPs are currently in use by
 facilities. Good housekeeping or
 preventive maintenance procedures,
 material recovery programs, safety
 procedures, training programs, etc. are
 common and thus the costs of complying
 with Subpart K will not be great
 Facilities are encouraged, nevertheless,
 to begin planning for BMP-related major
 construction (drainage control, waste
 stream segregation, and secondary
 containment) to coincide with
 construction related to the installation
 of best available technology (BAT) and
 of the implementation of (SPCC) plans.
 BMP regulations requiring major
 construction may be published in the
 future.
   Under authority of section 402(a)(l) of
 the Act, permitting authorities may
 impose BMPs -on a case-by-case basis
 using best engineering judgment. These
 case-specific BMPs may be more Costly
 than those contemplated by Subpart K
 which requires only procedural BMPs or
 minor construction. Guidance to
 permitting authorities will emphasize
 procedural BMPs and will encourage
 equivalency for potentially costly BMPs,
 such as secondary containment. Where
 permitting authorities have knowledge
 of a specific facility or receive
 information through the permit
 application indicating the opportunity
 for discharges of toxic or hazardous
 pollutants which could be prevented by
 a BMP, the permitting authority may -
 impose a BMP based on best
 engineering judgment. Such BMPs,
 which may involve construction, are
expected to be limited to facilities with
spill histories or other indications of an
 inadequate program to control
 discharges from ancillary industrial
 activities.
   Several coramenters argsed that
 dictating manufacturing process changes
 or operational procedures and activities
 went beyond the intent of Congress.
 EPA does not intend to use BMPs to
 dictate how plants are operated or to
 otherwise infringe on plant
 management's prerogatives. However,
 section 304(e) does give EPA the
 authority to prescribe certain "in-plant"
 procedures or practices which would be
 useful to prevent the discharge of toxic
 or hazardous pollutants where
 traditional effluent Limitations
 guidelines are impractical or ineffective.
   To further explain EPA's intent,
 changes have been made  to proposed
 § 125.62 and i 125.64(b)(4)(iii), now
 1125.102 and § 125.104{iii), to clearly
 distinguish between ancillary
 manufacturing operations (sources of
 pollutants) and BMPs (methods to
 prevent or minimize pollution). For
 example, preventive maintenance and
 housekeeping are BMPs, not ancillary
 operations. Material storage and
 loading/unloading operations are
 ancillary manufacturing operations, not
 BMPs.
   To allow due process and public
 notice of BMP programs, permittees are
 now required to submit a  description of
 their program with their NPDES permit
 application, (§ 125.104(c)). Some
 commenters thought one year for the
 implementation of BMP plans, proposed
 § 125.64(c), was too short. EPA feels that
 the one year after permit issuance is *
 realistic and reasonable, particularly for
 the BMPs of a procedural  nature or
 minor construction required by this
 Subpart. However, a discharger could be
 given more than one year  under special
 circumstances such as coordinating a
 BMP plan with an SPCC plan required
 under 40 CFR Part 151.   '
   Many commenters suggested that the
 term "significant amount" should be
 defined or that a minimum amount of a
 particular chemical should be specified
 to require the preparation  of a BMP
 plan. EPA has not defined this term but
 wishes  to clarify its meaning. In the case
 of section 311 pollutants EPA has
 proposed reportable quantities of
 hazardous substances (44 FR 10271. Feb
 16,1979) and considers these quantities
 potentially significant for the purpose of
 this Subpart. For section 307 pollutants,
 the fact that a chemical is  on the section
 307 toxic pollutant list indicates
potentially toxic effects of its discharge.
As guidance to facilities developing
BMP programs, two examples are given
to demonstrate the definition-of
 "significant amount",in terms of the
 BMPs applicable to a particular
 chemical:
   1. A facility uses laboratory quantities of
 toxic chemical X in an analytical chemistry
 laboratory adjacent to its manufacturing
 facility. Chemical X is used for no other
 purpose at the facility. No more than five
 pounds of the chemical are on hand at any
 given time. An appropriate BMP could be to
 label all containers of chemical X with
 instructions such as "Do not dispose of this
•material in laboratory sinks. Refer to
 Laboratory Procedures Manual for Disposal
 Instructions." The Laboratory Procedures
 Manual might further provide that chemical X
 and other compatible chemicals be disposed
 of in an appropriately labelled 55 gallon drum
 to be periodically picked up and treated by a
 responsible hazardous waste contractor in
 accordance with RCRA regulations.
   2. A facility uses thousands of gallons daily
 of a hazardous chemical Y (a section 311
 Category "A" pollutant) as a raw material in
 a batch chemical manufacturing process and
 is located next to a small stream. Chemical Y
 is stored outside in a single 10,000 gallon tank
 and is periodically pumped to the reactor
 vessel. An appropriate BMP would be to
 provide secondary containment-around the
 storage tank in the form of a dike to contain
 the maximum volume of chemical Y stored in
 the tank plus a reasonable allowance for
 rainfall. In the alternate, a facility might
 choose to use a combination of measures
 instead of secondary containment to attempt
 to achieve equivalency to. secondary
 containment. For example, a liquid level
 alarm, frequent non-destructive testing and
 daily visual inspections might be employed
 rather than constructing a dike around the
 storage tank. However, this latter approach
 may not satisfy proposed SPCC requirements
 which require the former approach, i.e.,
 secondary containment wherever reasonable
 probability of a discharge to navigable
 waters exists. Thus, provision of secondary
 containment would satisfy both BMP and
 proposed SPCC requirements simultaneously.

   Numerous commenters stated that the
 proposed regulations went beyond the
 intent of Congress because the
 development of BMPs is discretionary
 and can  ony be on the basis of point
 source categories supplemental to
 effluent guidelines. EPA disagrees and '
 believes that BMP programs and case-
 by-case determination of BMPs are
 appropriate based on the legislative
 history to section 304(e) (see CWA
 Legis. Hist, at 453 which specifically
 discusses case-by-case determinations
 of BMPs). BMPs  supplemental to effluent
 limitations guidelines have not yet been
 promulgated by EPA. However, the
potential for confusion and duplication
 of effort by the permittee between BMPs
and SPCC plans has led us to delete the
requirement for a BMP plan in favor of a
BMP program. The BMP program
approach provides a  self-regulatory.

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  32898      Federal Register / Vol. 44, No. Ill  /  Thursday,  June 7. 1979 / Rules and Regulations
  flexible mechanism to control toxic and
  hazardous pollutant discharges from
  ancillary sources and will allow
  permittees to develop BMPs tailored to
  their particular circumstances with
  attendant cost savings.
    Many comments were received
  concerning the relationship of BMPs to
  the requirements of the Resource
  Conservation and Recovery Act
  (RCRA), arguing that RCRA
  requirements should not be imposed by
  the Clean Water Act EPA disagrees and'
  wishes to point out that section 304{e)
  specifically includes the phrase "sludge
  or waste disposal" as one of four
  general activities subject to BMPs. Thus
  § 125.104(b)[4)(ii) has not been changed
  and continues to require management
  practices developed by companies to
  comply with RCRA to simultaneously
  satisfy the BMP requirements of the
  Clean Water Act by expressly
  incorporating the practices into the BMP
  program.
    Many commenters felt that the
  requirement for a professional engineer
  (PE) to certify the BMP plan was
  unnecessary and should be eliminated
 . or made  optional. Since Subpart K no
  longer requires BMP plans, PE
  certification is no longer required.
  However, EPA continues to believe that
  PE certification wouldiassure a
  minimum level of quality in both BMPs
  and SPCC plans. Since today's
  requlations are the first step in a two
  step process, and the second step [SPCC
  regulations 40 CFR Part 151) may require
  PE certification of SPCC plans, EPA
  encourages facilities to develop their
 programs in accordance with sound
 engineering practices. These facilities
 would  then have BMP-related
 procedures and construction which
 could satisfy, in part, future SPCC
 requirements.
 Economic Impact of Subpart K

   Since Subpart K now requires only
 BMPs of a procedural nature or those
 requiring minor construction, the costs
 of compliance with these regulations
 should  be minimal. Permittees are
 encouraged to use innovative,
 inexpensive techniques to achieve the
 basic goal of preventing the discharge of
 toxic or hazardous pollutants from
 ancillary industrial activities to surface
 waters. Because BMP requirements will
 vary among facilities, guidance will be
 provided to the permit writers on what
 requirements are sufficient. This
 guidance will reflect the conclusion of a
 BMP cost analysis which is being
 undertaken by the Agency. The
guidance will consider reasonableness
of cost. Most facilities have many of
 these generic BMPs in place and Subpart
 K only requires documentation of the
 existing practices or, in some cases,
 upgrading and documentation of the
 BMP program. Although BMPs requiring
 major construction (e.g., grading, paving,
 sewering, waste stream segregation,
 covering, and secondary containment)
 may be included in the BMP program
 description, the implementation of these
 BMPs is not mandated by these
 regulations. Therefore, EPA has
 determined that Subpart K does not
 constitute a major regulation requiring
 the preparation of an economic impact
 statement under Excecutive Order
 12044.
   Because there is much flexibility in
 how the individual facility complies
 with BMP procedural requirements,
 there is also flexibility in compliance
 costs. The cost of developing and
 implementing BMP procedures is
 estimated to be within the range of
 $10,000 to $30,000 per facility for the
 costs of a materials inventory, some
 engineering modifications, training,
 maintenance, housekeeping, and some
 minor construction for items such as the
 installation of liquid level alarms. To
 develop these costs the assumption was
 made that 50% of the BMP procedural
 requirements would already be in place
 in order to meet normal  safety, fire, and
 other occupational or operational
 standards. Clearly, a facility with minor
 problems will require a less elaborate
 program.
   Because the requirements may be less
 flexible under the SPCC program for
 which these BMP requirements are the
 first stage and we have so little cost
 data now on the BMP procedures
 because of their flexibility, further cost
 estimates for BMPs will be acquired
 when we prepare a detailed analysis of
 the SPCC cost requirements. These
 estimates will be necessary for the
 Agency to adequately assess the cost
 and usefulness of specific aspects of the
 SPCC program.
   Based on existing predictions of
 NPDES permit issuance,  industrial
 facilities will be required to develop and
 implement BMP programs on the
 following schedule:
 Number of Permits
 FY1979	„_	„		2.600
 FY1980.			3,000
 FY1981	„	1,700
 FY 1982		„..		1,000

  Using an average cost of $20,000 per
 facility, the total costs of BMPs, thru FY
 1982 are expected to be no greater than
 the following:
                 FY 1981..
                 FY1982..
                        .	$34,000,000
                        	$23.000,000
FY1979_
FY 1980	
   ™ $52,000,000
	$60,000,000
   This does not include the cost of
 BMPs established tinder authority of
 section 402(a)(l) using best engineering
 judgment
   The Agency may propose a new form
 of BMP guidelines in the future which
 will describe BMPs which are broadly
 applicable to industrial facilities and
 relatively independent of the chemical
 under consideration. In addition, these
 BMP guidelines would address more
 specific or advanced BMPs for certain
 chemicals or ancillary industrial
 activities and would include an
 economic impact analysis. Major
 construction would probably be
 required to comply with these futore
 BMPs and likely will be required to
 comply with the SPCC regulations.
 VI. The Relationship of the NPDES
 Program to the Regulation of Hazardous
 Substances Under Section 311 of the Act
   On November 2,1978, Congress
 amended section 311 of the Act (Pub. L.
 95-576). Because this Congressional
 action was  taken after the August 21,
 1978 proposal, EPA feels a brief
 discussion of the relationship of the
 NPDES program to section 311 is
 warranted.
   Section 311 of the Act regulates
 discharges of oil and hazardous
 substances  and contains reporting
 requirements, penalties and other
 requirements. Until the 1978
 amendments, the relationship between
 the requirements of section 311 and
 those of section 402 has been unclear. In
 particular, it was unclear whether, and
 to what extent, discharges from facilities
 with NPDES permits were  subject to the
 provisions of section 311.
  On November 2,1978, Congress
 amended section 311 and set forth three
 types of discharges^ hazardous
 substances which will be subject to
 sections 402 and 309 of the Clean Water
 Act and excluded from section 311
 liability. The three cases excluded are
 (1) discharges in compliance with a
 permit under section 402 of the Act, (2)
 discharges resulting from circumstances
 identified and reviewed and made a part
 of the public record with respect to a
 permit issued or modified under section
 402 of the Act, and subject  to a
 condition in such permit, and (3)
 continous or anticipated intermittent
 discharges from a point source,
 identified in a permit or a permit
 application under section 402 of the Act,
which are caused by events occurring
within the scope of relevant operating or
treatment systems. These excluded
discharges are exempted from the

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               Federal Register  /  Vol. 44, No. Ill / Thursday,  June 7, 1979  /  Rules  and Regulations      32899
  reporting requirements, civil penalties
  and clean-up cost liabilities under
.  section 311 and are instead subject to
^_ sections 402 and 309 of the Act
    On February 16,1979, EPA proposed
  regulations addressing the 1978  --.
  amendments to section 311 (44 FR10271,
  40 CFR § 117.12). The proposed
  regulations include detailed criteria for
  exclusions from section 311. The
  preamble to that proposal contained  an
  extensive discussion of the criteria for
  section 311 exemptions. Interested
  persons are advisedto review that
  proposal. When the section 311
  regulations are published in final form,
  they will be incorporated into NPDES
  regulations as appropriate.        ^
    The Agency is presently developing
  revised application requirements which
  will be announced in the near future  in
  the form of proposed regulations and a
  draft revised NPDES permit application
  form (reserved § 122.14(a)). The new
  requirements will afford applicants the
  opportunity to identify discharges and
  spills of hazardous  substances. Where
  adequate treatment equipment or  •
  management practices are available to
  control such events, permits will contain
  appropriate requirements reflecting such
  control. Coverage of these discharges or
 "spills by permits will result in exemption
  from the requirements of section 311.

  VII. Conforming Amendments to the
  General Pretreatment Regulations 40
  CFRPart403.

    This rulemaking contains a series of
  technical amendments to the General
  Pretreatment Regulations for New and
  Existing Sources of Pollution (40 CFR
  Part 403, 43 FR 27736-27762, June 26,
  1978). These amendments will conform
  the pretreatment regulations to both the
  final NPDES regulations and the Public
  Participation Regulations (40 CFR Part
  25, 44 FR 10286-10297 February 16,1979).
  Since the, provisions in  the pretreatment
  regulations were based on the proposed
  or draft versions of both the regulations,
  changes are necessary. The majority of
  these changes are in the nature of cross-
 reference corrections in 40 CFR Part 403.
    The most significant revision is that
 the process for EPA  review and
 approval of State pretreatment programs
 is now governed by 40 CFR § 123.61
 rather than 40 CFR § 403.11. This was
 done to assure that EPA has a uniform
 process for approving revisions to State
 NPDES programs. The time deadlines
 for applying for State pretreatment
 program approval and the contents of
 the application will continue to be
, governed by § 403.10. It is anticipated
 that further amendments to the
  pretreatment regulations will be made in
  the near future.
   Note.—The Enivromnental Protection
  Agency has determined that this document
  does not constitute a major regulation
  requiring preparation of an economic impact
  statement under Executive Order 12044. In
  accordance with Executive Order 12044, EPA
  is committed to evaluating significant new
  regulations within five years of
  implementation. The evaluation plan for this
  regulation was not included in the August 21,
  1978 proposal since the Agency policy was
  established several months subsequent to
  publication of the proposed regulation. Since
  an evaluation plan was not included in the
— proposed regulations, an evaluation plan is
  not included in this final rule. However, these
  NPDES regulations will be incorporated into
  the EPA consolidated permit regulations
  schedule to be proposed sometime in June
  1979. A proposed evaluation plan for these
  NPDES regulations will be incorporated into
  the overall evaluation plan for the
  consolidated permit regulations. EPA
  anticipates the evaluation plan will include
  assessments of: reporting requirements;
  elimination of duplicative requirements for
  permit applicants and NPDES States; new
  permit procedures designed to reduce
  unnecessary delay and the effectiveness of
  the reorganization of the regulations for
  greater clarity.
   Authority.—These regulations are issued
  under authority of the Clean Water Act, as
  amended by the Clean Water Act of 1977, 33
  U.S.C.  11251 et seq.
   Date: May 22,1979
  Douglas M. Costle,
 Administrator.
 /
  PART 6—PREPARATION OF
  ENVIRONMENTAL IMPACT
 STATEMENTS

   1.40 CFR Part 6, Subpart I,  is
 amended by deleting § § 6.906, 6.909
 6.916 (b) and (c) and 6.918.

 PART 115—REQUIREMENTS FOR
 APPROVAL OF AQUACULTURE
 PROJECTS [DELETED]

   2.40 CFR Part 115 is deleted.

 PART 121—STATE CERTIFICATION OF
 ACTIVITIES REQUIRING A FEDERAL
 LICENSE OR PERMIT

   3. 40 CFR Part 121 is redesignated
 from 40 CFR Part 123.
   4. Part 122 is revised  to read as
 follows:

 PART  122—NATIONAL POLLUTANT
 DISCHARGE ELIMINATION SYSTEM

 Subpart A—General

 Sec.
 122.1  Purpose and scope.
 122.2 Law authorizing NPDES permits.
 122.3 Definitions.
 122.4 Exclusions.
 122.5 Signatories.

 Subpart B—NPDES Permit Application and
 Issuance
 122.10 Application for a permit.
 122.11 Permit issuance; effect of permit.
 122.12 Duration of permits and continuation
    of expiring permits; Transferability of
    permits.
 122.13 Prohibitions.
 122.14 Conditions applicable to all permits.
 122.15 Applicable limitations, standards,
    prohibitions, and conditions.
 122.16 Calculation and specification of
    effluent limitations and standards.
 122.17 Schedules of compliance.

 Subpart C—Permit Compliance
 122.20 Monitoring.
 122.21 Recording of monitoring results.
 122.22 Reporting of monitoring results and
    compliance by permittees.
 122.23 Noncompliance reporting.

 Subpart D—Permit Modification,
 Revocation and Reissuance, and
 Termination
 122.30 General.
 122.31 Modification, revocation and
    reissuance, and termination.

 Subpart E—Special NPDES Programs
 122.40 General.
 122.41 Disposal of pollutants into wells, into
    publicly owned treatment works or by
    land application.
 122,42 Concentrated animal feeding
    operations.
 122.43 Concentrated aquatic animal
    production facilities.
 122.44 Aquaculture projects.
 122.45 Separate storm sewers.
 122.46 Silvicultural activities.
 122.47 New sources and new dischargers.
 122.48 General permit program.
 122.49 Special considerations under Federal
    law.

 Subpart F—Miscellaneous
 122.60 Delegation of authority.
  Appendix A.—Point Source Categories and
 Permit Expiration Dates.
  Authority.—Clean Water Act, as amended
 by the Clean Water Act of 1977, 33 U.S.C.
 1251 et seq; Administrative Procedure Act, 5
 U.S.C. 551 et seq.

 Subpart A—General

 §122.1  Purpose and scope.

  (a) The regulations in this Part define
 the National Pollutant Discharge
 Elimination System (NPDES) program
 including permit programs under
 sections 402, 318 and 405 of the Act.
 They apply to the program as
 administered by EPA and, to the extent
 incorporated by reference in Part 123, by
 approved NPDES States.
  (b) The regulations in Parts 123,124,
 and 125 also apply to the NPDES
program as follows:
  (1) Part 123 describes the
requirements for State participation in

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  32900       Federal Register  / Vol. 44, No. Ill  / Thursday, June 7, 1979  /  Rules and Regulations
  the NPDES permit program and in the
  permit program established under
  section 404 of the Act ("section 404
  program").
    (2) Part 124 describes certain
  permitting procedures for the NPDES
  program; these procedures apply in their
  entirety to the program as it is
  administered by EPA and, to the extent
  incorporated by reference in Part 123, by
  approved NPDES States.
    (3) Part 125 describes some of the
  criteria and standards for making
  certain determinations in the NPDES
  program; these criteria and standards
  apply to the program as administered by
  EPA and, to the extent incorporated by
  reference in Part 123, by approved ..
  NPDES States.
    (c) Section 402 of the Clean Water Act
  (formerly referred to as the Federal
  Water Pollution Control Act), (Pub. L.
  92-500, as amended by Pub. L. 95-217
  and Pub. L 95-576) establishes the
  NPDES program. The NPDES program
  also includes permit program
  requirements under sections 318 and 405
  of the Act. This program regulates the
  discharge of pollutants from point
  sources and related activities into the
  waters of the United States. All such
  discharges or activities are unlawful
  absent an NPDES permit. After a permit
  is obtained, a discharge not in
  compliance with all permit terms and
  conditions is unlawful.
    (d) NPDES permits are issued by the
  State Director, or by the EPA Regional
  Administrator where there is no
  approved State program or where the
  permit is for discharges resulting from
  activities on Indian lands over which the
  States  has no jurisdiction.
 [Comment: Throughout this Part, the Regional
 Administrator is designated as the EPA
 permit issuing authority where no State
 NPDES program is approved. However,
 reference to the "Regional Administrator" for
 purposes of permit issuance should be read to
 include the Enforcement Division Director.
 Similarly, the  term "State Director" includes
 the delegated representative of the State
 Director.]

 § 122.2  Law authorizing NPDES permits,
   (a) Section 301(a) of the Act provides
 that "Except as in compliance with this
 section and sections 302, 306, 307, 318,
 402, and 404  of this Act, the discharge of
 any pollutant by any person shall be
 unlawful."
  (b) Section 402(a)(l) of the Act
 provides in part that "the Administrator
 may, after opportunity for public
 hearing, issue a permit for the discharge
 of any pollutant, or combination of
pollutants, .  . . upon condition that such
discharge will meet either all applicable
  requirements under sections 301, 302,
,  306, 307. 308, and 403 of [the] Act or
  prior to the taking of necessary
  implementing actions relating to all such
  requirements, such conditions as the
  Administrator determines are necessary
  to carry out the provisions of [the] Act."
    (c) Section 318(a) of the Act provides
  that "The Administrator is authorized,
  after public hearings, to permit the
  discharge of a specific pollutant or
  pollutants under controlled conditions
  associated with an approved
  aquaculrure project under Federal or
  State supervision pursuant to section
  402 of this Act"
   (d) Section 405 of the Act provides, in
  part that "where the disposal of sewage
  sludge resulting from the operation of a
  treatment works as defined in section
  212 of this Act (including the removal of
  in-place sewage sludge from one
  location and its deposit at another
  location) would result in any pollutant
  from such sewage sludge entering the
  navigable waters, such disposal is
  prohibited except in accordance with a
  permit issued by the Administrator
  under section 402 of the Act"
   (e) Sections 402(b), 318 (b) and (c), and
  405(c) of the Act authorize EPA approval
  of State permit programs for discharges
  form point sources, discharges to
  aquaculture projects, and disposal of
  sewage sludge.
   (f) Section 404 of the Act authorizes
 EPA approval of State permit programs
 for the discharge of dredge or fill
 material.
   (g) Section 304(i) of the Act provides
 that the Administrator shall promulgate
 guidelines establishing uniform
 application forms and offier minimum
 requirements for the acquisition of
 information from discharges in approved
 States and establishing minimum
 procedural and other elements- of
 approved State NPDES programs.
   (h) Section 501(a) of the Act provides
 that "The Administrator is authorized to
prescribe such regulations as are
necessary to carry out his functions
under this Act"
   (i) Sedtion 101{e) of the Act provides
that "Public participation in the
development, revision, and enforcement
of any regulations, standard, effluent
limitations, plan, or program established
by the Administrator or any State under
this Act shall be provided for,
encouraged, and assisted by the
Administrator and the States. The
Administrator, in cooperation with the
States, shall develop and publish
regulations specifying minimum
guidelines for public participation in
such processes." Public participation
requirements set forth in these
 regulations carry out the purposes of 40
 CFR 25 and supersede the requirments
 of that Part as they apply to actions
 controlled by Parts 121-125 of these
 regulations.

 §122.9  Definitions.,
   The following definitions apply to this
 Part and to Parts 123,124 and 125:
 [Comment Terms used in this Part and in
 Parts 123,124 and 125 which are defined in
• the Act and are not defined here shall have
 the meaning provided in the Act]
   (a) "Act" means the Clean Water Act
 (formerly referred to as the Federal
 Water Pollution Control Act) Pub. L. 92-
 500, as amended by Pub. L. 95-217 and
 Pub. L. 95-576, 33 U.S.C. 1251 et seq.
   (b) "Administrator" means the
 Administrator of the United States
 Environmental Protection Agency.
   (c) "Application" means:
   (1) The EPA standard national forms
 for applying for an NPDES permit
 including any subsequent additions,
 revisions or modifications, or
   (2) Substantially similar forms
 approved by EPA for use in approved
 States at the time of a program approval
 under Part 123, including any approved
 subsequent additions, revisions or
 modifications.
 [Comment: EPA is presently developing a
 new application form. The essential elements
 of this new application form will be required
 to be used by the States.]
   (d) "Applicable standards and
 limitations" means all State, interstate
 and Federal standards and limitations to
 which a discharge or related activity is
 subject under the Act including, but not
 limited to, effluent limitations, water
 quality standards, standards of
 performance, toxic effluent standards
 and prohibitions, best management
 practices, and pretreatrnent standards
 under sections 301, 302, 303, 304, 308,
 307, 218, 403 and 405 of the Act
   (e) "Approved State program" means
a  State or interstate permit program
which meets the requirements of section
402(b) of the act, and which has been
submitted to and approved by EPA
under §123.51 and section 402(c) of the
Act. Approved State programs must
include authority to regulate discharges
specified in sections 318 and 405 of-the
Act through the NPDES program.
   (f) "Best management practices"
"BMPs" includes treatment
requirements, operating and
maintenance procedures, schedules of
activities, prohibitions of activities, and
other management practices to control
plant site runoff, spillage, leaks, sludge
or waste disposal, or drainage from raw
material storage. BMPs may be imposed

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              Federal Register / VoL 44. No. Ill /  Thursday.  June 7. 1979  /  Rules and Regulations       32901
 in addition to or in the absence of other
 applicable standards and limitations.
    (g) "Contiguous zone" means the
 entire zone established by the United
 States under Article 24 of the
 Convention on the Territorial Sea and
 the Contiguous Zone.
    (h) "Direct discharge" means the
 discharge of a pollutant or the discharge
 of pollutants.      j
    (i) "Director" means the "Regional
 Administrator" or the "State Director,"
 as appropriate.            _
 fComment Where there is no approved State
 program, the term "Director" refers to the
 Regional Administrator. Where there is an
 approved State program, the term "Director"
 normally refers to the State Director. In some
 circumstances, however, EPA retains
 authority to take certain actions even where
 there is an approved State program. Kg.,
 where EPA issued a permit prior to the
 approval of a State program, EPA may retain
 Jurisdiction over that permit after program
 approval, see §123.1(d). In such cases, the
 term"Director" means the Regional
 Administrator and not the State Director.]
    0) "Discharge" when used without
 qualification includes a discharge of a
 pollutant and a discharge of pollutants.
   (k) "Discharge of a pollutant" and
 "discharge of pollutants" each means:
    (1) Any addition of any pollutant or
 combination of pollutants to navigable
 waters from any point source, or
   (2) Any addition of any pollutant or
 combination of pollutants to the waters
 of the contiguous zone or the ocean from
 any point source other than a vessel or
 other floating craft when being used as a
 means of transportation.
   This definition includes discharge into
 waters of the United States from:
 surface runoff which is collected or
 channelled by man; discharges through
 pipes, sewers, or other conveyances
 owned by a State, municipality or other
 party which do not lead to treatment
 systems; and discharges through pipes,
 sewers, or other conveyances, leading
 into treatment systems owned in whole
 or in part by a third party other than a
 State or a municipality.
   (1) "Discharge Monitoring Report
 ("DMR") means the-EPA uniform
 national form, including any subsequent
 additions, revisions or modifications for
 the reporting of self-monitoring results
 by permittees. DMRs must be used by
 approved States as well as by EPA.
[Comment: EPA win supply DMRs to any
approved State upon request The EPA
uniform national forms may be modified to
substitute the State Agency name, address,
logo, and other similar information, as
appropriate, in place of EPA'sJ
  (ta) "Effluent  limitation" means  any
restriction imposed by the Director on
 quantities, rates, and concentrations of
 pollutants which are discharged from
 point sources into navigable waters, the
 waters of the contiguous zone, or the
 ocean.
   (n) "Enforcement Division Director" •
 means the Director of the Enforcement
 Division within the appropriate Regional
 Office of the Environmental Protection
 Agency.
   (o) "Environmental Protection
 Agency"  ("EPA"] means the United
 States Environmental protection
 Agency.
   (p) "Indirect discharger" means a non-
 municipal, non-domestic discharger
 introducing pollutants to a publicly
 owned treatment works, which
 introduction does not constitute a
 "discharge of pollutants."
   (q) "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 as
 determined and approved by the
 Administrator.
   (r) "Municipality" means a city, town,
 borough,  county, parish, district
 association or other public body created
 by or pursuant to State law and having
 jurisdiction over disposal of sewage,
 industrial wastes, or other wastes, or an
 Indian tribe or an authorized Indian
 tribal organization, or a designated and
 approved management agency under
'section 208 of the Act.
   (s) "NPDES" ("National Pollutant
 Discharge Elimination System") means
 the national program for issuing,
 modifying.jevoking and reissuing,
 terminating, monitoring,  and enforcing
 permits pursuant to sections 402, 318,
 and 405 of the Act. The term includes
 any State or interstate program which . -
 has been  approved by the
 Administrator.
   (t) "Navigable waters" means "waters
 of the United States, including the
 territorial seas." This term includes:
   (1) All waters which are currently
 used, were used in the past, or may be
 susceptible to use in interstate or foreign
 commerce, including all waters  which
 are subject to the ebb and flow of the
 tide;
   (2) Interstate waters, including
interstate wetlands;
   (3) All other waters such as intrastate
lakes, rivers, streams {including
intermittent streams], mudflats,
sandflats  and wetlands, the use,
degradation or destruction of which
would affect 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;
   (ii) From which fish or shellfish are or
 could be taken and sold in interstate or
 foreign commerce;
   (iii) Which are used or could be used
 for industrial purposes by industries in
 interstate commerce;
   (4) All inpoundmants of waters
 otherwise defined as navigable waters
 under this paragraph;
   (5] Tributaries of waters identified in
 paragraphs (1M4) ot this section,
 including adjacent wetlands; and
   (6) Wetlands adjacent to waters
 identified in paragaphs (l)-{5) of this
 section ("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
 included playa lakes, swamps, marshes,
 bogs, and similar areas such as sloughs,
 prairie potholes, wet meadows, prairie
 river overflows, mudflats, and natural
 ponds}; provided that waste treatment :,
 systems  (other than cooling ponds
 meeting the criteria of this paragraph)
 are not waters of the United States.
 [Comment:]'For purposes of clarity the term ,
 "waters of the United States" is primarily
 used throughout the regulations rather than
 "navigable waters"]

   (u) "New discharger"  means any
 building, struture, facility or installation:
 (1) which on October 18,1972, has never
 discharged pollutants; (2) which has   • s
 never received a finally effective NPDES
 permit (3)  from which there is or may be
 a new or additional discharge of
 pollutants; and (4) which does not fall
 within the definition of "new source."
   (v) "New source" means any building,
 structure, facility or installation from
 which there is or may be a discharge of
 pollutants the contraction of which
 commences:
   (1) After promulgation of standards  of
 performance under section 306 cf the
 Act which are applicable to such source;
 or
   (2) After proposal of standards of
 performance under section 306 which
 are applicable to such source, but only if
 the standards are promulgated within
 120 days of their proposal.
 [Comment: See S 122.47 for the criteria and
 standards to be used in determining whether
 a source has commenced construction within
 the meaning of this definition, for the types of
-construction activities which result in new
 sources or new dischargers, and for the effect
 of a new source determination.]

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  32902      Federal Register / Vol.  44,  No. Ill  / Thursday, June 7, 1979 / Rules and Regulations.
    (w) "Permit" means any permit issued
  by EPA under the authority of section
  402 of the Act or by an approved State
  under the authority of State law,
  controlling the discharge of pollutants
  into the waters of the United States.
  {Comment. Approved States are not required
  to use the EPA standard permit form.
  However, State permit forms are reviewed
  and approved at the time of NPDES program
  approval. See 5 123.3(a)(5).J

    (x) "Person" means an individual,
  corporation, partnership, association,
  Federal agency. State, municipality,
  commission, or political subdivision of a
  State or any interstate body.
    (y) "Point source" means any
  discernible, confined and discrete
  conveyance, including but not limited to
  any pipe, ditch, channel, tunnel, conduit,
  well, discrete fissure, container, rolling
  stock, concentrated animal feeding
  operation, vessel or other floating craft,
  from which pollutants are or may be
  discharged. This term does not include
  return flows from irrigated agriculture.
   . (z) "Pollutant" means dredged spoil,
  solid waste, incinerator residue, filter
  backwash, sewage, garbage, sewage
  sludge, munitions, chemical wastes,
  biological materials, radioactive
  materials, heat, wrecked or discarded
  equipment, rock, sand, cellar dirt, and
  industrial, municipal, and agricultural
  waste discharged into water. It does not
  mean:
   (1) Sewage from vessels or
   (2) Water, gas, or other material which
  is injected into a well to facilitate
  production of oil or gas, or water
  derived in association with oil or gas
  production and disposed of in a well, if
  the well used either to facilitate
 production or for disposal purposes is
 approved by authority of the State in
 which the well is located, and if such
 State determines that such injection or
 disposal will not result in the
 degradation or ground or surface water
 resources.
 [Comment. The legislative history of the Act
 reflects that "radioactive materials" as
 included within the definition of "pollutant"
 in section 502 of the Act means only
 radioactive materials which are not
 encompassed in the definition of source, by-
 product, or special nuclear materials as
 defined by the Atomic Energy Act of 1954, as
 amended, and regulated under the Atomic
 Energy Act Examples of radioactive
 materials not covered by the Atomic Energy
 Act and, therefore, included within the term
 "pollutant" are radium and accelerator
 produced isotopes. See Train v. Colorado
Public Interest Research Group, Inc., 426 U.S.
1 (1976).]

  (aa} "Process waste water" means
any water which, during manufacturing.
  or processing, comes into direct contact
  with or results from the production or
  use of any raw material, intermediate
  product, finished product, byproduct, or
  waste product
    fbb) "Publicly owned treatment
  works" ("POTW") means a treatment
  works as defined in section 212 of the
  Act, which is owned by a State or
  municipality, excluding any sewers or
  other conveyances not leading to a
  facility providing treatment.
    (cc) "Regional Administrator" means
  the Regional Administrator of the
  appropriate Regional Office of the
  Enviromental Protection Agency or the
  delegated representative of the Regional
  Administrator.
    (dd) "Schedule of compliance" means
  a schedule of remedial measures
  including an enforceable sequence of
  interim requirements (e.g., actions,
  operations, or milestone events) leading
  to compliance with applicable standards
  or limitations or other permit
  requirements. Unless otherwise
  provided in these regulations, each
  schedule shall culminate in a specific
.  requirement to achieve expeditious final
  compliance with all applicable
  standards and limitations.
   (ee) "Secretary" means the Secretary
  of the Army,  acting through the Chief of
  Engineers.
   (ff) "Sewage from vessels" means
  human body wastes and the wastes
  from toilets and other receptacles —
  intended to receive or retain body
 wastes that are discharged from vessels •
 and regulated under section 312 of the
 Act, except that with respect to
 commercial vessels on the Great Lakes
This term includes graywater. For the
 purposes of this definition, "graywater"
 means galley, bath, and shower water.
   (gg) "Sewage sludge" means the
 solids, residues, and precipitate
 separated from or created in sewage by
 the unit processes of a publicly owned
 treatment works. "Sewage" as used in
 this definition means any wastes,
 including wastes from humans,
 households, commercial establishments,
 industries, and storm water runoff, that
 are discharged to or otherwise enter a
 publicly owned treatment works.
   (hh) "State" means a State, the
District of Columbia, the
Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa,
or the Trust Territory of the Pacific
Islands.     •       '         —  '
  (ii) "State Director" means the chief
administrative officer of a State water
pollution control agency or interstate
agency approved by EPA to administer
the NPDES program, or the delegated
representative of the State Director. If
 responsibility for water pollution control
 and enforcement is divided within a
 State agency or among two or more
 State or interstate agencies, "State
 Director" means the administrative
 officer authorized to perform the
 particular procedure or function to
 which reference is made.         "-».-
   (jj) "Variance" means any mechanism
 or provision under sections 301 or 316 of
 the Act and Part 125, or in the applicable
 effluent limitation guidelines which
 allow modification to or waivers of the
 effluent limitation requirements of the
 Act. This includes provisions'which
 allow the establishment of alternative
 limitations based on fundamentally
 different factors and sections 301(c),
 301(g), 301(h), and 316(a) of the Act,
 where appropriate.
 '  (kk) "Waters of the United States"
 means "navigable waters."

 § 122.4  Exclusions.
   (a) The following discharges do not
 require  an NPDES permit:
   (1) Any discharge of sewage from
 vessels, effluent from  properly    .
 functioning marine engines, laundry,
 shower, and galley sink wastes, or any
 other discharge incidental to the normal
 operation of a vessel.  This exclusion
 does not apply to rubbish, trash,
 garbage, or other such materials
 discharged overboard; nor to other
 discharges  when the vessel is operating
 in a capacity other than as a means of...
 transportation such as when a vessel is
 being used  as an energy or mining
 facility, a storage facility, or a seafood
 processing  facility, or  is secured to the
 bed of the ocean,  contiguous zone, or
 waters of the United States for the
 purpose of mineral or oil exploration or
 development;
   (2) Discharges of dredged or fill
 material into waters of the United States
 and regulated under section 404 of the
 Act
   (3) The introduction of sewage,
 industrial wastes or^other pollutants into
 publicly owned treatment works by
 indirect  dischargers.
 [Comment: This exclusion applies only to the
 actual introduction of pollutants into publicly
 owned treatment works. Plans or agreement
 to switch to this method of disposal in the
 future do  not relieve dischargers of the
 obligation to apply for and receive permits
 until all discharges of pollutants to waters of
 the United States are actually eliminated. All
 applicable pretreataient standards
promulgated under section 307(b) of the Act
must also be complied with, and may be
included in the permit to the publicly owned   .
treatment works. This exclusion does not
apply to the introduction of pollutants to
privately owned treatment works or to other
discharges through pipes,  sewers, or other

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               Federal Register / Vol. 44, No. Ill / Thursday, June 7. 1979 / Rules  and Regulations       32903
  conveyances owned by a Stale, municipality,
  or other party not leading to treatment works.
  See Sl213(k)l.
    (4) Any introduction of pollutants
  from agricultural and •sirvicaltural
  activities, including runoff from
  orchards, cultivated crops, pastures,
  range lands, and forest lands, except
  that this exclusion shall not apply to:
    [i] Discharges from concentrated
  animal feeding operations as defined in
  §122.42;
    (ii) Discharges from concentrated
  aquatic animal production facilities as
  defined in § 122.43;
    (Hi) Discharges to aquacultare projects
  as defined in § 122.44; and
    (iv) Discharges from silvicultural point
  sources as defined in § 122.46.
    (b) The exemption of a discharge from
  NPDES  requirements in paragraph (a) of
  this section does not preclude State
  regulation of the exempted discharge
  under State authority, in accordance
  with section 510 of the Act.

  § 122.5  Signatories.
   . (a) All permit applications shall be
  signed as follows:
    (1) For a corporation, by a principal
  executive officer of at least the level of
  vice president
    (2) For a partnership or sole
  proprietorship, by a general partner or
  the proprietor, respectively; or
    (3) For a muncipality. State, Federal,
  or other public facility, by either a
  principal executive officer or ranking
  elected official
    (b) All other reports or requests for
  information required by the permit
  issuing authority shall be signed by a
  person designated in paragraph (a) or  a
  duly authorized representative of such
  person, if:
    (1) The representative so authorized is
  responsible for the overall operation of
  the facility from which the discharge
  originates, e.g, a plant manager,
  superintendent or person cf equivalent
  responsibity;
    {2] The authorization is made in
  writing by the person designated under
  paragraph (a); and
   (3) The written authorization is
  submitted to the Director.
   (c) Any changes In the written
'  authorization submitted to the
  permitting authority under paragraph (b)
  which occur after the issuance of a
 permit shall be reported to the
 permitting authority by submitting a
 copy cf a new written authorization
 which meets the requirements of
 paragraph (b) (1) and (2).
   (d) Any person signing any document
 under paragraph (a) or (b) shall make
 the following certification: "I certify
 under penalty of law that I have
 personally examined and am familiar
 with the information submitted in the
 attached document;  and based on my
 inquiry of those individuals immediately
 responsible for obtaining the
 information, I believe the submitted
 information is true, accurate and
 complete. I am aware that there are
 significant penalties for submitting false
 information, including the possibility of
 fine and imprisonment"
 [Comment- The permit application will be
 revised to incorporate  this statement Where
 a permit program document does not contain
 the statement, the certification must
 accompany the appropriate document]
 -  (e) This section is applicable to
 approved States (see § 123.12). States
 may adopt language which is equivalent
 to, but not identical to, the certification
 statement in paragraph (d), if such
 equivalent language is approved by the
 Regional Administrator.

 Subpart B—NPDES Permit Application
 and Issuance

 § 122.10  Application for a permit.
   (a) Any person who discharges or
 proposes to discharge pollutants, except
 persons covered by general permits
 under § 122.48 or excluded under
 § 122.4, shall complete, sign, and submit
 an application (which includes a BMP
 program if necessary under § 125.102) to
 the Director in accordance with Part 124,
 Subpart R
   (b) Persons currently discharging who
 have:
   (1) Existing permits shall submit a
 new application under paragraph (cj of
 this section where facility expansions,
 production increases, or process
 modifications will:
   (i) Result in new or substantially
 increased discharges of pollutants or a
 change in the nature of the discharge of
 pollutants, or
   pi) Violate the terms and conditions of
 the existing permit
  (2) Expiring permits shall submit new
 applications at least 180 days before the
 expiration date of the existing permit,
 unless permission for a later date has
 been granted by the Director.
  (c) A person proposing a new
 discharge shall submit an application at
 least 180 days before the  date on which
 the discharge is to commence, unless
 permission for a  later date has been
 granted by the Regional Administrator.
 [Comment: Persons proposing a new
 discharge are encouraged to  submit their
 applications well in advance of the 180 day
 requirement to avoid delay. In addition,
information required by 1124.12[b){l) must
be submitted before on-site construction.
which normally will commence long before
the permit application & required.]

§ 122.11  Permit Issuance; effect of permit
   (a) The receipt of a complete
application by the Director initiates the
permit issuance process described in
Part 124.
   (b) Following the permit issuance
process me Director may issue or deny a
finally effective permit Where EPA is
the permitting authority. EPA action
shall not be final for die purpose of
judicial review under section 509(b) of
the Act until this issuance or denial has
taken place. (See S 124.61).
   (c) Compliance with a permit during
its term constitutes compliance, for
purposes of sections 309 and 505, with
applicable standards and limitations of
the Act except for any standard
imposed under section 307 for a toxic
pollutant injurious to human health.
However, a permit may be modified.
revoked and reissued, or terminated
during its term for cause as described in
§122.31.
   (d) The issuance of a permit does not:
   (1) Convey any property rights of any
sort, or any exclusive privileges;
   (2) Authorize any injury to private
property or invasion of other private
rights, or any infringement of Federal,
State, or local laws or regulations; or
   (3) Preempt any duty to obtain State
or local assent required by  law for the
discharge.

§ 122.12  Duration of permits and
continuation of expiring permits;
transf erabflity of permits.
   (a) Duration of Permits. All permits
shall be issued for fixed terms not to
exceed five years. Permits of less than
five years duration may be  issued in
appropriate circumstances (see
paragraph (c)). Permits may be modified,
revoked and reissued, or terminated as
specified in Subpart D. Except for the
continuation provisions of paragraph (b]
for expiring permits,-the term of a permit
shall not be extended beyond five years
from its original date of effectiveness by
modification, extension or other means.
  (b) Continuation of expiring permits.
(1) Where EPA is the permit issuing
authority, the terms and conditions of an
expired permit are automatically
continued under 5 U.S.C. § 558(c)
pending issuance of a new permit if:
  (i) The permittee has submitted a
timely and sufficient application for a
new permit under § 122.10{a); and
  (ii) The Regional Administrator is
unable, through no fault of the permittee,
to issue a new permit before the
expiration date of the previous permit

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  32904      Federal Register /  Vol. 44, No. Ill / Thursday,  June 7, 1979  / Rules  and  Regulations
  (e.g., where it is impracticable due to
  time and/or resource constraints).
    (2) Permits continued under paragraph
  (b)(l) remain fully effective and
  enforceable against the discharger.
    (3) Where the permittee is not in
  compliance with the terms and
  conditions of the expiring permit:
    (i) The permit may be continued under
,  this section pending a final
  determination by the Regional
  Administrator on the application for a
  new permit and enforcement action may
  be taken based upon the. continued
  permit; or
    (ii) The Regional Administrator may
  make a determination to deny the
  application for a new permit in
  accordance with the procedures,
  specified in Part 124. The discharger
  would then be subject to enforcement
  action for discharging without a permit.
    (4) States authorized to administer the
  NPDES may continue permits in a
  similar manner if so authorized by State
  law. However, a permit is not continued
  under Federal law where  EPA originally
  issued the permit, but the State is the
  permitting'authority at the time the
  permit expired. In such case, the
  discharger is discharging without a
  permit, from the time the EPA-issued
  permit expires to the time that the State-
  issued permit is effective.
    (c) No permit issued to a discharger
  within an industrial category listed in
  Appendix A of this Part, prior to the
  applicable permit expiration date listed
  in Appendix A, may be issued to expire
  after that date, unless:
    (1) The permit incorporates effluent
  limitations and standards  applicable to
  the discharger which are promulgated or
  approved under sections 301(b)(2)(C)
 and (D), 304(b}(2), and 307(a}{2) of the
 Act; or                          -
 [Comment: EPA is presently reviewing  and
 revising effluent limitations guidelines for
 industries listed in Appendix  A, In some
 cases, EPA may approve existing guidelines
 or choose not to develop new guidelines. If
 EPA decides noHo develop new effluent
 guidelines, it will publish notice in the
 Federal Register as to that decision. Such  a
 Federal Register notice would mean, in
 effect, that the guidelines are "approved"  for
 the purpose of this regulation.]

  (2) The permit incorporates:
  (i) The "reopener clause" required by
 § 122.15(b)(l); and
  (ii) Effluent limitations to meet the
requirements of sections 301(b){2) (A),
(C), (D), (E) and (F) of the Act.
[Comments: (1) NPDES States  are urged to
issue short term permits expiring on or before
the  dates listed in Appendix A. This will
ensure that all appropriate provisions of the
Act, including compliance with the effluent
  limitations by the statutory deadlines, are
  met in permits issued after the promulgation
  of effluent guidelines under sections 301(b}[2)
  (q and (D), 304(b)(2), and 307(a)(2). Even if
  States issue long term permits with later
  expiration dates (in accordance with
  paragraph (c)(2)), dischargers are legally
  required to meet all applicable statutory
  deadlines and requirements, including
  compliance with any promulgated EPA
  effluent guidelines defining "best
  conventional pollutant control technology"
  (BCT) and "best available control technology
  economically achieveable" (BAT).
   (2) A determination that a particular
  discharger falls within a given industrial
  category for purposes of setting a permit
  expiration date under paragraph (c) is not
  conclusive as to the discharger's inclusion in
  that industrial category for any other
  prupose, and does not prejudice any rights to
  challenge or change that inclusion at the time
  a new permit based on that determination is
  formulated.]

   (d) Transferability of permits. A
  permit may be transferred to another
  person by a permittee if.
   (1) The permittee notifies the Director
  of the proposed transfer;
   (2) A written agreement containing a
  specific date for transfer of permit
  responsibility and coverage between the
  current and new permittees (including
  acknowledgement that the existing
 permittee is liable for violations up to
 that date, and that the new permittee is
 liable for violations from that date on) is
 submitted to the Director; and
   (3) The Director within 30 days does
 not notify the current permittee and the -
 new permittee of his or her intent to
 modify, revoke and reissue, or terminate
 the permit and to require that a new
 application be filed rather than  agreeing
 to the transfer of the permit.
 [Comment A new application could be
 required under this paragraph where the
 change of ownership is accompanied by a
 change or proposed change in process or "
 wastewater characteristics or a change or
 potential change in any circumstances that
 the permitting authority believes will affect
 the conditions or restrictions in the permit.]

 §122.13  Prohibitions.
  No permit shall be issued hi the
 following circumstances:
  (a) Where the terms or conditions of
 the permit do not comply with the "
 applicable guidelines or requirements of
 the Act, or regulations.
  (b) Where the applicant is required to
 obtain a State or other appropriate
 certification under section 401 of the  Act
 and Part 124, Subpart C, and that
 certification has not been obtained or
 been waived.
  (c) By the State Director where the
Regional Administrator has objected to
issuance of the permit under § 123.23.
    (d) Where the imposition of conditions
  cannot ensure compliance with the
  applicable water quality requirements of
  all affected States as required by section
  401(a){2)oftheAct
    (e) Where, in the judgment of the
  Secretary, anchorage and navigation in
  or on any of the waters of the United
  States would be substantially impaired ,
  by the discharge.
    (f) For the discharge of any
  radiological, chemical, or biological
  warfare agent or high-level radioactive.
  waste.
    (g) For any discharge from a  point
  source inconsistent with a plan or plan
  amendment approved under section
  208(b)oftheAct
    (h) For any discharge to the territorial
  sea, the waters  of the contiguous zone,
  or the oceans in the following
  circumstances:
    (1) Prior to the promulgation  of the
  guidelines under section 403(c) of the
  Act, unless the Director determines'
  permit issuance to be in the public
  interest; or
    (2) After promulgation of guidelines  .
 Bunder section 403(c) of the Act, where
  insufficient information exists to make a
, reasonable judgment as to whether the
  discharge complies with any such
  guidelines.
    (i) To a facility which is a new source
  or a new discharger, if the discharge
  from the construction or operation of the
  facility will:
    (1) Cause or contribute to the violation
  of water quality standards if the point  of
  discharge is located in a segment that
  was an effluent  limitation segment (as  -•
  defined in 40 CFR § 130.2(o)(2)) prior to
  the introduction of the discharge from
  the new source or new discharger; or
    (2) Exceed the total pollutant load
  allocation if the  discharge is into a
  water quality segment as defined in 40
  CFR § 130.2(o)(l).
 The owner or operator of a facility
 which is  a new source or new discharger
 into a water quality segment mustalso
 demonstrate, at the time of applying for
 a permit  that there are sufficient
 remaining pollutant load allocations to
 allow the discharge and that the facility
 is entitled to these allocations.

 § 122.14   Conditions applicable to all
 permits.
   The following conditions apply to all
 permits, whether issued by the Regional
 Administrator or the State Director.
 They shall be either expressly
 incorporated into the permit or
 incorporated by reference.
 [Comment If not incorporated by reference,
 the inclusion of the requirements of this
 section into permits may require some

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Federal Register / Vol.  44, No. Ill  /  Thursday, June 7, 1979 / Rules  and  Regulations
                                32905
  wording changes. Where this is the case, the
  permit conditions should be worded
  substantially similar to the requirements of
  this section, and should be of equivalent
  force.]

    (a) [Reserved]
  [Comment: This paragraph is reserved
  pending publicationlof a revised NPDES
  application form. When a proposed revised
  application form is available this paragraph
  will be reproposed in a manner consistent
  with the proposed revised form. At that time
  EPA will outline a comprehensive scheme for
  the relationship between the data required in
  the application form, monitoring
  requirements, permit conditions, and the
  pollutants authorized to be discharged by the
  permit and not authorized to be discharged
  by the permit. The existing NPDES
  application forms should be utilized until the
  revised application form is available, except
  as otherwise provided in these regulations.
  See § 122.5.]

    (b) All discharges shall be consistent
  with the terms and conditions  of the
  permit.
    (c) The permit may be modified,
  terminated, or revoked during  its term
  for cause as described in § 122.31.
    (d) If any applicable toxic effluent
  standard or prohibition (including any
  schedule of compliance specified in such
  effluent standard or prohibition) is
  established under section 307(a) of the
  Act for a toxic pollutant and that
  standard or prohibition is more stringent
  than any limitation upon such pollutant
  in the permit, the Director shall institute
  proceedings under these regulations to
 modify or revoke and reissue the permit
 to conform to the toxic effluent standard
 or prohibition.
 [Comment: Effluent standards or prohibitions
 established under section 307(a] for toxic   v
 pollutants injurious to human health are
 effective within the time provided in the
 implementing regulations, even absent permit
 modification.]

   (e) Any permittee who knows or has
 reason to believe that any activity has
 occurred or will occur which would
 constitute cause for modification or
 revocation and reissuance under
 § 122.31 must report its plans, or such
 information, to the Director so that the
 Director can decide whether action to
 modify or revoke and reissue a permit
 under § 122.31 will be required. The
 Director may then require submission of •
 a new application. Submission  of such
 application does not relieve the
 discharger of the duty to comply with
 the existing permit until it is modified or
reissued.
  (f) The permittee shall allow the
Director, or an authorized
representative, upon the presentation of
                           credentials and such other documents as
                           may be required by law:
                             (1) To enter upon the permittee's
                           premises where a point source is located
                           or where any records must be kept
                           under the terms and conditions of the
                           permit;
                             (2) To have access to and copy at
                           reasonable times any records that must
                           be kept under the terms and conditions
                           of the permit;
                             (3) To inspect at reasonable times any
                           monitoring equipment or method
                           required in the permit;
                             (4) To inspect at reasonable times any
                           collection, treatment, pollution
                           management, or discharge facilities „
                           required under the permit; and
                             (5) To sample at reasonable times any
                           discharge of pollutants.
                             (g) The permittee shall at all times
                           maintain in good working order and
                           operate as efficiently as possible all
                           facilities and systems (and related
                           appurtenances) for collection and
                           treatment which are installed or used by
                           the permittee for water pollution control
                           and abatement to achieve compliance
                           with the terms and conditions of the
                           permit. Proper operation and
                           maintenance includes but is not limited
                           to effective performance based on
                           designed facility removals, adequate
                           funding, effective management,
                           adequate operator staffing and training,
                           and adequate laboratory and process
                           controls including appropriate quality
                           assurance procedures.
                             (h)(l) If, for any reason, the permittee
                           does not comply with or will be unable
                           to comply with any maximum daily or
                           average weekly discharge limitations or
                           standards specified in the permit, the
                           permittee shall, at a minimum, provide
                           the Director with the following
                           information as specified in paragraph
                             (i) A description of the discharge and
                           cause of noncompliance;
                             (ii) The period of noncompliance,
                           including exact dates and times and/or
                           the anticipated time when the discharge
                           will return to compliance; and
                             (iii) Steps being taken to reduce,
                           eliminate, and prevent recurrence of the
                           noncomplying discharge.
                             (2)(i) In the case of any discharge
                           subject to any applicable toxic pollutant
                           effluent standard under section 307(a),
                           the information required by paragraph
                           (1) regarding a violation of such
                           standard shall be provided within 24
                           hours from the time the permittee
                           becomes aware of the circumstances. If
                           this information is provided orally, a
                           written submission covering these
                           points shall be provided within five
                           days of the time the permitfee becomes
 aware of the circumstances covered by
 this paragraph.
   (ii) In the case of other discharges
 which could constitute a threat to
 human health, welfare, or the
 environment, the Director may require
 that the information required by
 paragraph (1) be provided within 24
 hours or five days from the time the
 permittee becomes aware of the
 circumstances. Where the Director
 requires 24-hour notice, if the
 information is provided orally, a written
 submission covering these points must
 be provided within five days of the  time
 the permittee becomes aware  of the
 circumstances covered by this
 paragraph.
 [Comment: Discharges that may be required
 to be reported within 24 hours under
 paragraph (h)(2)(ii) could include discharges
 containing section 311 pollutants or
 pollutants which could cause a threat to
 public drinking water supplies.]

   (iii) Where a permittee orally reports
 a violation within 24 hours in
 accordance with paragraphs (h)(2) (i) or
 (ii), the Director may waive, on a case-
 by-case basis, the requirement that a
 written submission be provided within
 five days of the time the permittee
 becomes aware of the violation.
   (iv) In all other cases this information
 shall be provided in the DMR  in
 accordance with the requirements of
 § 122.22.
   (i) The permittee shall take all
 reasonable steps to minimize any
 adverse impact to waters of the United
 States resulting from noncompliance
 with  the permit.
   (j) The permittee, in order to maintain
 compliance with its permit, shall control
 production and all discharges upon
 reduction, loss, or failure of the
 treatment facility unitl the facility is
 restored or an alternative method of
 treatment is provided. This requirement
 applies in the situation where, among
 other things, the primary Source of
 power of the treatment facility is
 reduced, lost, or fails.
  (k)  Bypass.
  (1) Definitions.
  (i) "Bypass" means the intentional
 diversion of wastes from any portion of
 a treatment facility.
  (ii)  "Severe property damage" means
 substantial physical damage to property,
 damage to the treatment facilities which
 would cause them to become inoperable,
 or substantial and permanent loss of
natural resources which can reasonably
be expected to occur in the absence of a
bypass. Severe property damage does
not mean economic loss caused by
delays in production.

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  32906       Federal Register /  Vol. 44. No.  Ill / Thursday, June 7, 1979 / Rules and Regulations
    (2) Conditions necessary for bypass.
  Bypass is prohibited unless the
  following four conditions are meU
    (i) Bypass is unavoidable to prevent
  loss of life, personal injury or severe
  property damage;
    (ii) There are no feasible alternatives
  to bypass, such as the use of auxiliary
  treatment facilities, retention of
  untreated wastes, or maintenance
  during normal periods of equipment
  down-time;
    (iii) The permittee submits notice of
  an unanticipated bypass to the Director
  within 24 hours of becoming aware of
  the bypass (if this information is
  provided orally, a written submission
  must be provided within five days).
  Where the permittee knows or should
  have known in advance of the need for a
  bypass, this prior notification shall be
  submitted for approval to the director, if
  possible, at least ten days before the
  date of the  bypass;
  [Comment: Fully efficient operation of
  treatment systems is required at all times.
  Although this generally requires the use of all
  portions of an existing treatment system, in
  some cases, maintenance necessary to ensure
 .. efficient operation may require bypassing
  portions of a system. Where-such a bypass
  will not cause applicable effluent limitations
  or standards to be exceeded, it may be done
  without notification to the permitting
  authority. Where, however, a bypass is
  undertaken for reasons other than essential
  maintenance or where a bypass would cause
  effluent limitations or standards to be
  exceeded, it may be undertaken only in
  accordance with the provisions of this
  section.]

   (iv) The bypass is allowed under
 conditions determined to be necessary
• by the Director to minimize any adverse
 effects. The public shall be notified and
 given an opportunity to pomment on
 bypass incidents of significant duration,
 to the extent feasible.
   (3) Prohibition of bypass. The Director
 may prohibit bypass in consideration of
 the adverse  effect of the proposed
 bypass or where the proposed bypass
 does not meet the conditions set forth in
 paragraphs (k)(2) (i) and (ii).
 [Comment: When a bypass occurs, the
 burden is on the discharger to demonstrate
 compliance with this paragraph. If the reason
 for the bypass was the need for regular
 preventive maintenance, for which backup
 equipment should have been provided by the
 discharger, in  accordance with paragraph
 (2)(ii), the bypass will not be allowed. If there
 is any doubt as to the necessity of the bypass
 or the availability of methods to reduce or
 eliminate the discharge, appropriate
 enforcement action may be taken.]

  (1) Upset—(1) Definition.  "Upset"
 means an exceptional incident in which
 there is unintentional and temporary
  noncompliance with technology-based
  permit effluent limitations because of
  factors beyond the reasonable control of
  the permittee. An upset does not include
  noncompliance to the extent caused by
  operational error, improperly designed
  treatment facilities, inadequate
  treatment facilities, lack of preventive
  maintenance, or careless or improper
  operation.
    (2) Effect of an upset. An upset shall
  constitute an affirmative defense to an
  action brought for noncompliance with
  such, technology-based permit effluent
  limitations if the requirements of
  paragraph (1](3} are met.
    (3) Conditions necessary for a
  demonstration of upset. A permittee
  who wishes to establish the affirmative
  defense of upset shall demonstrate,
  through properly signed,
  contemporaneous operating logs, or
  other relevant evidence that:
    (i) An upset occurred and that the
  permittee can identify the specific
  cause(s) of the upset;
    (ii) The permitted facility was at the
  time being operated in a prudent and .
  workman-like manner and in
  compliance with proper operation and
  maintenance procedures;
    (iii) The permittee submitted
  information required in § 122.14(h)(l)
  within 24 hours of becoming aware of
  the npset (if tbisjnformation is provided
  orally, a written submission must be '
 provided within five days), and
   (iv) The permittee complied with any
 remedial measures required under
  § 122J4(i).
   (4) Burden of proof. In any
 enforcement proceeding the permittee
 seeking to establish the occurrence of an
 upset shall have the burden of proof.
 [Comments: [1] Upset is only available for
 permit limits which are based on technology.
 It is not available for non-technology-based
 requirements such as water quality
 standards, State laws, or health or
 environmentally based toxic pollutant
 effluent standards. (2) Although in the usual
 exercise of prosecutorial discretion. Agency
 enforcement personnel should review any
 claims that noncompliance was caused by an
 upset, no determination made in the course of
 thg review constitutes final Agency action'
 subject to judicial review. Permittees wiE
 have the opportunity for a judicial
 determination on any claim of upset only in
 an enforcement action brought for
 noncompliance with technology-based permit
 effluent limitations.]

 § 122.15  Applicable (Imitations, standards,
 prohibitions, and conditions.
   Each  NPDES permit shall provide for
 and ensure compliance with all
 applicable  requirements of the Act and
regulations promulgated under the Act.
 For the purposes of this section, an
 applicable requirement is a statutory or
 regulatory requirement whieh takes
 effect prior to final administrative
 disposition of a permit issued by a State
 with an approved NPDES program, or, in
 the case of a permit issued by EPA,
 which takes effect prior to the issuance
 of the permit except as provided in
 § 124.86(c), Permits shall ensure
 compliance  with the following as
 applicable:
   (a) Effluent limitations and standards
 under sections 301,  302, 303, 304, 307,
 318, and 405 of the Act, including any
 interim final limitations and standards.
   (b) For a discharger within  any
 industrial category listed in Appendix A,
 requirements under section 307(a)(2) of
 the Act, as follows:
   (1) Prior to the applicable permit
 expiration date listed in Appendix A,
   (i) If applicable standards or
 limitations have not yet been issued:
   (A) The permit shall include
 conditions stating that, if an applicable
 standard or limitation is issued or
 approved under sections 301(b)(2) (C)
 and (DJ, 304(b)(2) and 307(a)(2) and such
 effluent standard or limitation is more
 stringent than any effluent Bmjtation in
 the permit or controls a pollutant not
 limited in the permit, the permit shall be
 promptly modified or, alternatively.
 revoked and reissued in accordance
 with such effluent standard or limitation
 and any other requirements of the Act
 then applicable.
 [Comment: The following language is an
 acceptable permit condition for the purposes
 of this section:
 .  "This permit shall be modified, or
 alternatively,  revoked and reissued, to
 comply with any applicable standard or
 limitation promulgated or approved under
 sections 301(b}(2) (C) and  (D), 304(b){2), and
 307(a){2] of the Clean Water Act,  if the
 effluent standard or limitation so  issued or
 approved:
   (i) Contains different conditions or is
 otherwise more stringent than any effluent
 limitation in the permit; or
   (ii) Controls any pollutant not limited in the
 permit
  The permit as modified or reissued under
 this paragraph shall also contain any other
 requirements of the Act then applicable/*]
   (B) The Director shall promptly
 modify, or alternatively revoke and
 reissue, the permit to incorporate an
 applicable standard  or limitation under
 sections 301(b)(2) (C) and (D),  304(b)(2),
 and 3O7(a)(2) is issued or approved if
 such effluent standard or limitation is
more stringent than any effluent
limitation in the permit, or controls a
pollutant not limited in the permit.
[Comment The requirements of this section
are intended to assure compliance with the

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              Federal Register / Vol. 44, No. Ill / Thursday, June  7, 1979 / Rules and Regulations	32907
 1984 statutory deadline for the achievement
 of best available technology economically
 achievable for pollutants now listed under
 section 307(a)(l) of the Act. When a permit is
 modified or revoked and reissued pursuant to
 subparagraph (B), additional limitations may
 be included hi the permit to assure
 achievement of applicable statutory
 requirements [e.g., best conventional
 pollutant control technology for
 "conventional"  pollutants and best available
 technology economically achievable for "non-
 conventional" pollutants) by appropriate
 statutory deadlines.]

   (ii) If applicable standards or
 limitations have been issued, the permit
 shall include those standards or
 limitations.
   (2) Any permit issued after the
 applicable permit expiration date listed
 in Appendix A, shall include effluent
 limitations and a compliance schedule
 to meet the requirements of sections
 301(b)(2) (A), (C), (D), (E). and (F) of the
 Act, whether or not applicable effluent
 limitations guidelines'have been
 promulgated or approved. Such permits
 need not incorporate the clause required
 by paragraph  (b)(l)(i)(A) of this section.
   (c) Standards of performance for new
 sources under section 306 of the Act,
 including any  promulgated interim final
 effluent limitations and standards.
   (d) If the permit is for a discharge
 from a publicly owned treatment works,
 a condition requiring the permittee to:
   (1) Provide adequate notice to the
 Director of the following:
   (i) Any new introduction of pollutants
 into that POTW from an indirect
 discharger which would be subject to
 sections 301 or 306 of the Act if it were
 directly discharging those pollutants;
 and
   (ii) Any substantial  change in the
 volume or character of pollutants being
 introduced into that POTW by a source
 introducing pollutants into the POTW at
 the time of issuance of the permit.
 [Comment: For purposes  of this paragraph,
 adequate notice  shall include information on
 (1J the quality and quantity of effluent to be
 introduced into such POTW and (2) any
 anticipated impact of such change in the
 quantity or quality of effluent to be
 discharged from such POTW.]

   (2) Identify, in terms of character and
 volume of pollutants, any significant
 indirect dischargers into the POTW
 subject to pretreatment standards under
 section 307{b) of the Act and 40 CFR
 Part 403.
  (3) Establish  a local program when
required by and in accordance with 40
CFR Part 403 to assure compliance with
pretreatment standards to the extent
applicable under section 307(b), The
local program shall be  incorporated into
 the permit as described in 40 CFR Part
 403.
   (4) Require any indirect discharger to
 such POTW to comply with the
 reporting requirements of sections
 204(b), 307, and 308 of the Act, including
 any requirements established under 40
 CFR Part 403.
   (e) Any conditions imposed in grants
 made by the Administrator to POTWs
 under sections 201  and 204 of the Act
 which are reasonably necessary for the
 achievement of effluent limitations
 under section 301 of the Act
 [Comment: Among other things, this
 paragraph contemplates permit conditions
 embodying measures to protect the POTW
 against overloading and schedules of
 compliance which are consistent with, and
 determined from, construction grant award
 dates.]
   (f) Any requirements in addition to or
 more stringent than promulgated
 effluent limitations guidelines or
 standards under sections 301, 304,306,
 307, 318 and 405 where necessary to:
   (1) Achieve water quality standards
 established under section 303 of the Act;
   (2) Attain or maintain a specified
 water quality through water quality
 related effluent limits established under
 section 302 of the Act;
   (3) Conform to the conditions of a
 State certification under section 401 of
 the Act where EPA is the permit issuing
 authority;
   (4) Conform to applicable water
 quality requirements under section
 401(a}(2) of the Act when the discharge
 affects a State other than the certifying
 State;
   (5) Incorporate any more stringent
 limitations, treatment standards or
 schedules of compliance requirements
 established under Federal or State law
 or regulations in accordance with
 section 301(b){l}(C) of the Act;
   (6) Ensure consistency with the
 requirements of a Water Quality
 Management plan approved by EPA
 under section 208(b) of the Act;
   (7) Incorporate section 403(c] criteria
 under Part 125 Subpart M for ocean
 discharges;
   (8) Incorporate alternative effluent
 limitations or standards where
 warranted by "fundamentally different
 factors," under Part 125 Subpart D;
   (9) Incorporate other requirements, or
 conditions, or limitations into a new
 source permit under the National
 Environmental Policy Act 42 U.S.C.
 § §4321 et seq. and section 511 of the
 Act, where EPA is the permit issuing
 authority;
  (10) Establish oa a case-by-case basis
technology-based limitations-controlling
a pollutant not included in promulgated
effluent limitation guidelines or ,
standards in accordance with §125.3.
   (g) Best management practices to  "
control or abate the discharge of
pollutants where:
   (1) Authorized under section 304(e) of
the Act for the control of toxic and
hazardous pollutants from ancillary
industrial activities;
   (2) Numeric effluent limitations are
infeasible; or
   (3) The practices are reasonably
necessary to achieve effluent limitations
and standards or to carry out the
purposes of the Act
[Comment: Examples of best management
practices which may be imposed under (g)(2)
include: a) proper operator qualifications of
treatment facility personnel (see Decision of
the General Counsel No. 19), and b) sludge-
handling requirements (see Decision of
General Counsel No. 33). Examples of best
management practices which may be
imposed under (g)(3) include: a) coal mining
operation's diversion of water from an active
coal mining area to prevent contact between
water and iron pyrites which could react to
form sulfuric acid and wastewaters with low
pH values; (b) the construction of sheds over
material storage piles to prevent rainfall from
leaching materials from these piles and
creating a source of pollution; (c) ditching and
diversion of rainfall runoff for treatment prior
to discharge; and (d) the use of solid,
absorbent materials for cleaning up leaks and
drips as opposed to washing these materials
down a floor drain creating additional
sources of pollution. Although these best
management practices under (g](2) and (3)
would be required under the authority of
NRDC v.  Costle, (Runoff Point Sources) 568
F.2d 1369 (D.C. Cir. 1977) they are similar to
those in (g)(l) and Subpart K of Part 125
imposed for toxic and hazardous materials
under section 304(e).]

   (h) Requirements under section 405 of
the Act governing the disposal of
sewage sludge from publicly owned
treatment works, in accordance with
any applicable regulations.
   (i) Where a permit is renewed or
reissued, interim limitations, standards,
or conditions which are at least as
stringent as the Final limitations,
standards or conditions in the previous
permit (unless the circumstances on
which the previous permit was based
have materially and substantially
changed since the time the permit was
issued and would constitute cause for
permit modification or revocation and
reissuance under § 122.31). Where
effluent limitations were imposed under
section 402(a)(l) of the Act in a
previously issued permit and these
limitations are  more stringent than the
subsequently promulgated effluent
guidelines, this paragraph shall apply
unless:

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  32908       Federal Register f Vol. 44, No. Ill f THnrsday, June 7, 1979 / Roles and Regulations
    (1) The discharger has installed the
  treatment facilities contemplated by the
  discharger in connection with the
  issuance of the previous permit and has
  properly operated and maintained the
  facilities but has nevertheless been
  unable to achieve the previous effluent
  limitations. In this case the limitations in
  the reissued permit may reflect the level
  of pollutant control actually achieved
  (but shall not be less stringent that
  required by the subsequently
  promulgated effluent guidelines};
    (2) In the case of an approved State,
  State law prohibits permit conditions
  more stringent than an applicable
  effluent guideline; or
    (3) The subsequently promulgated
  effluent guidelines are based on best
  conventional pollutant control
  technology (section 301[b)(2)(E) of the
  Act).
    (j) In the case of a permit issued to a
  facility that may operate at certain times
  as a means of transportation over water,
  a general condition that the discharge
  shall comply with any applicable
  regulations promulgated by the
  Secretary of the Department in which
  the Coast Guard is operating,
  establishing specifications for  safe
  transportation, handling, carriage, and
  storage of pollutants.
    (k) Any conditions that the Secretary
  of the Army considers necessary to
  ensure that navigation and anchorage
  will not be substantially impaired.

  § 122.16  Calculation and specification of
  effluent limitations and standards.
   (a)(l) All permits shall impose final,
  and where necessary, interim final
  effluent limitations, standards and
 prohibitions under § § 122.14 and 122.15
 for each outfall or discharge point of the
 permitted facility, except as otherwise
 provided under § 122.15(g)(2) and
 § 122.16(1).
   (2) Except in the case of POTWs,
 permit limitations, standards or
 prohibitions shall be calculated based
 on the actual production and not the
 designed production capacity of the
 facility where the promulgated  effluent
 guideline limitations and standards are
 based on production.
 [Comment- Where design capacity is not
 representative of actual production, permit
 limitations will be calculated to reflect a
 reasonable measure of actual production.
 such as the high month during the previoes
 year, or the monthly average for the highest
 year of the previous five years, for facilities
 where such data is available. For new
 sources, or new discharges, actual production
 generally will be projected production based
 on market data, and permit limitations may
require modification once actual prodaction
figures are available.]
    (3} fa the case of POTWs, permit
  limitations, standards, or prohibitions
  shall be calculated based on design
  flow.
    (b) AH interim and final permit
  effluent limitations, standards, or
  prohibitions established under |§ 122.14
  and 122.15 for a metal shall be
  expressed in terms of the total metal
  (i.e., the sum of the dissolved and
  suspended fractions of the metal) unless:
    (1) The promulgated effluent
  limitation and standard under the Act
  specifies the limitation for the metal in
  the dissolved or valent form; or
    (2) In establishing permit. limitations
  on a case-by-case basis, it is necessary
  to express the Limitation on the metal in
  the dissolved or valent form in order to
  carry out the provisions of the Act
    (c) For continuous discharges all
  interim and final permit effluent
  limitations, standards, and prohibitions
  established under §§122.14 and 122.15,
  including those necessary to achieve
  water quality standards, shall be stated
  as maximum daily and average monthly
  discharge limitations for all dischargers
  other than publicly owned treatment
  works, and average weekly and average
  monthly discharge limitations for
  POTWs.
  For the purposes of this part:
   (1) A "continuous discharge" means a
  discharge which occurs without
  interruption, except for infrequent
  shutdowns for maintenance, process
  changes, or other similar activities
  throughout the operating hours of the
 facility.
   (2) The "maximum daily discharge" is
 the total mass of a pollutant discharged
 during the calendar day or, in  the case-
 of a pollutant limited in terms  other than
 mass pursuant to paragraph (d), the
 average concentration or other
 measurement of the pollutant specified
 during the calendar day or any 24-hour
 period that reasonably represents the
 calendar day for the purposes  of
 sampling. The maximum daily discharge
 limitation may not be violated during
 any calendar day.
   (3) The "average monthly discharge
 limitation" is the total mass, and
 concentration  in the case of POTWs, of
 all daily discharges sampled and/or
 measured during a calendar month on
 which daily discharges are sampled and
 measured, divided by the number of
 daily discharges sampled and/or
 measured during such month. The
 average monthly discharge limitation
 may not be violated during any calendar
 month.
  (4) The "average weekly discharge
limitation" is the total mass and
 concentration of all daily POTW
 discharges during any calendar week on
 which dairy discharges are sampled
 and/or measured, divided by the
 number of daily discharges sampled
 and/or measured during such calendar
 week. The average weekly discharge
 limitation may not be violated during
 any calendar week
 [Comment: Calculations for all such
 limitations which require averaging of
 measurements or of daily discharges, shall
 utilize an arithmetic mean average, unless
 otherwise specified or approved by the
 Director.]
   (d) Paragraph (c) is not applicable:
   (1) For pH, temperature, radiation or
 other pollutants which cannot be
 appropriately expressed by mass; or
   (2) Where applicable promulgated
 effluent guideline limitations, standards,
 or prohibitions are expressed in other
 terms than mass, e.g.. as concentration
 levels.          ;
   te) Except as  provided in paragraph
 tf), effluent limitations imposed in
 permits shall not be adjusted for
 pollutants in the intake water.
   ffjfl} Upon request of the discharger,
 effluent limitations or standards
 imposed in a permit will be calculated
 on a "net" basis, i.e., adjusted to reflect
 credit for pollutants in the discharger's
 intake water, if  the discharger
 demonstrates that its intake water is
 drawn from the  same body of water into
 which the discharge is made and if:
   (i)(A) The applicable effluent
 limitations and standards contained in
 Subchapter N of this Chapter
 specifically provide that they shall be
 applied on a net basis; or
   (B) The discharger demonstrates that
 pollutants present in the intake water
 will not be substantially removed by the
 treatment systems operated by the
 discharger; and
   (ii) The permit contains conditions
 requiring the permittee to conduct
 additional monitoring (i.e., for flow and
 concentration of pollutants) as
 necessary to determine continued
 eligibility for and compliance with any •-
 such adjustments.
 The  discharger shall notify the Director
 if this monitoring indicates that
 eligibility for an  adjustment under this
 section has been altered or no longer
 exists. In such case, the permit shall be
 modified or revoked and reissued under
 §122.31.
  (2) Permit effluent limitations or
 standards adjusted under this paragraph
 shall be calculated on the basis of the
 amount of pollutants present after any
 treatment steps have been performed on
the intake water by or for the

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              Federal Register / Vol 44, No. Ill / Thursday. June 7. 1979 / Rules and Regulations	32909
 discharger. Adjustments under this
 paragraph shall be given only to the
 extent that pollutants in the intake
 water which are limited in the permit
 are not removed by the treatment
 technology employed by the discharger.
 In addition, effluent limitations or
 standards shail not.be adjusted when
 the pollutants in the intake water vary
 physically, chemically or biologically
 form the pollutants;limited by the
 permit Nor shall effluent limitations or
 standards be adjusted when the
 discharger significantly increases
 concentrations of pollutants in the
 intake water, even though the total
 amount of pollutants might remain the
 same.
   (g) Discharges which are not
 continuous, as defined in paragraph (c),
 shall be particularly described and
 limited, considering the following
 factors, as appropriate:
   (1) Frequency (e.g., a batch discharge
 shall not occur more than once every 3
 weeks):
   (2) Total mass (e.g., not to exceed 100
 kilograms of zinc and 200 kilograms of
 chromium per batch discharge);
   (3) Maximum rate of discharge of
 pollutants during the  discharge (e.g., not
 to exceed 2 kilograms of zinc per
 minute); and
   (4) Prohibition or limitation of
 specified pollutants by mass,
 concentration, or other appropriate
 measure (e.g., shall not contain at any
 time more than 0.1 mg/1 zinc or more
 than 250 grams (Vi kilogram) of zinc in
 any discharge).
   (h) Where permit effluent limitations
 or standards imposed at the point of
 discharge are impractical or infeasible,
 effluent limitations or standards for
 discharges of pollutants may be imposed
 on internal waste streams prior to
 mixing with other waste streams or
 cooling water streams. In such
 instances, the monitoring required by
 Subpart C shall also be applied to the
 internal waste streams.
 [Comment: Limits on internal waste streams
 will only be imposed in exceptional
 circumstances, such as where the final
 discharge point is inaccessible (e.g., under 10
 meters of water), where  the wastes at the
 point of discharge are so diluted as to make
 monitoring impracticable, or where the
 interferences among pollutants at the point of
 discharge would make detection and/or
 analysis impracticable.]

 § 122.17  Schedules of compliance.
  (a) Permits shall contain schedules of
 compliance requiring the permittee to
 take specific steps where necessary to
achieve expeditious compliance with
applicable standards and limitations
 and other requirements. Schedules of
 compliance shall require compliance as
 soon as possible, but in no case later
 than an applicable statutory deadline.
   (b) If any permit allows a time for
 achieving final compliance which
 exceeds 9 months from the date of
 permit issuance, the schedule of
 compliance in the permit shall set forth
 interim requirements and the dates for
 their achievement. Examples of interim
 requirements include the following
 events: submit complete Step 1
 construction grant (for POTWs); let
 contract (for nonPOTWs); commence
 construction and complete construction.
   (1) In no event shall more than 9
 months elapse between dates specified
 for interim requirements.
   (2) If the time necessary for
 completion of any interim requirements
 (such as the construction of a treatment
 facility) is more than nine months and is
 not readily divisible into stages for
 completion, the permit shall specify
 interim dates not more than nine months
 apart for the submission of reports of
 progress toward completion of the
 interim requirements.
   (c) A permittee may terminate its
 direct discharge by cessation of
 operation or discharge to a POTW
 rather than achieve applicable
 standards and limitations by the final
 date for compliance established in its
 permit or in the Act under the following
 circumstances:
   (1) If the decision to terminate a direct
 discharge is made after issuance of a
 permit:
   (i) The permit shall be modified or
 revoked and reissued to contain a
 schedule of compliance leading to
 termination of the direct discharge by a
 date which is no later than the statutory
 deadline; or
   (ii) The permittee shall terminate
 direct discharge before ncncompliance
 with any interim requirement specified
 in the schedule of compliance in the
 permit.
   (2) If the decision to terminate a direct
 discharge is made before issuance of the
 permit, the permit shall contain a
 schedule leading to termination of the
 direct discharge by a date which is no
 later than the statutory deadline.
   (3) If the permittee contemplates but
 has not made a final decision to
 terminate the direct discharge before the
 issuance of the permit, the permit shall
 contain alternative schedules leading to
 compliance as follows:
  (i) The schedule shall contain an
 interim requirement requiring such a
 final decision no later than a date which
allows sufficient time to comply with
applicable limitations and'standards in
accordance with paragraph (c)(3)(ui) of
this section, (i.e., a milestone event for
commencement of construction of
control equipment); and
  (ii) A subsequent schedule leading to
termination of the direct discharge by a
date which is no later than the statutory
deadline; and
  (Hi} A subsequent alternative schedule
leading to compliance with applicable
standards and limitations, no later than
the statutory date; and
  (iv) A requirement that after the
permittee has made a decision pursuant
to paragraph (c)(3)(i) of this section, it
shall:
  (A) Follow the Schedule required by
paragraph (c)(3)(ii) of this section if the
decision is to terminate its discharge, or
  (B) Follow the schedule required by
paragraph (c)(3)(iii) of this section if the
decision is not to terminate its
discharger; and
  (4) If the permittee has made a
decision to terminate its direct discharge
in accordance with this section, it shall
post a bond within 30 days of permit
issuance, or the date of the decision, in
the amount of the cost of compliance
with applicable limitations and
standards, payable to the permit issuing
authority hi the event that termination
or compliance with applicable
limitations and standards is not
achieved by the statutory deadline or
the date set forth in the permit, if earlier.
  (5) In all cases, the permittee's
decision to terminate its direct discharge
of pollutants shall be evidenced by a
Board of Directors resolution which has
been made public or by such other
means as EPA determines evidences a
firm public commitment
[Comment A permittee may evidence a firm
public commitment: (1) by a resolution of the
Board of Directors signed by the Chairman of
the  Board and the Chief Executive Officer; (2)
in the case of a public facility, by appropriate
action by either the principal executive
officer or elected official or (3) as otherwise
appropriate for partnerships, sole
proprietorship, etc.]
  (d) The Director may, upon request of
the applicant, modify a schedule of
compliance in an issued permit if he or
she determines good and valid cause
(such as an act of God, strike, flood,
materials shortage, or other events over
which the permittee has little or no
control or remedy) exists for such
modification under  §122.31. In no case
shall the compliance schedule be
modified to extend beyond an
applicable statutory treatment deadline,
  (e) In the case of a POTW which has
received a grant under section 202(a)(3)
of the Act to fund 100% of the costs to
modify or replace facilities construction

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  32910
Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979 / Rules and  Regulations
  with a grant'for innovative and
  alternative wastewater technology
  under section 202(a)(2), the schedule of
  compliance may be modified to reflect
  the amount of time lost during
  construction of the innovative and .
  alternative facility. In no case shall the
  compliance schedule be modified to
  extend beyond an applicable statutory
  deadline for compliance.
    (f) New sources, new dischargers,
  sources which recommence discharging
  after terminating operations and those
  sources which had been indirect
  dischargers which commence
  discharging into navigable waters do not
  qualify for compliance schedules under
  this section and are subject to
  § 122.47(d)(4).

  Subpart C—Permit Compliance

  § 122.20  Monitoring.
    (a) To assure compliance with permit
  terms and conditions, all permittees
  shall monitor as specified in the permit:
    (1) The amount, concentration, or
  other measurement specified in § 122.16
  for each pollutant specified in the
  permit;
    (2) The volume of effluent discharged
  from each point source; and
    (3) As otherwise specifically required
  in the permit, e.g., as required under
  § 122.16(g)(2).
    (b) For purposes of paragraph (a), the
  Director shall specify the following
  monitoring requirements in the permit:
    (1) Requirements concerning proper
  installation, use, and maintenance of
  monitoring equipment or methods
  (including biological monitoring
  methods where appropriate);
    (2] Monitoring frequency, type, and
  intervals sufficient to yield continuing
  data representative of the volume of
 effluent flow and the quantity of
 pollutants discharged. Variable effluent
 flows and pollutant quantities shall be
 monitored at more frequent intervals
 than relatively constant effluent flows
 and pollutant quantities; and
   (3) Test procedures for the analysis of ~~
 pollutants meeting the requirements of
 paragraph (c) of this section.
   (c)(lj Test procedures identified in 40
 CFR Part 136 shall be utilized for
 pollutants or parameters listed in that
 Part, unless an alternative test
 procedure has been approved under that
 Part.
   (2) Where no test procedure under 40
 CFR Part 136 has been approved, the
 Director shall specify a test method in
 the permit.
  (3) Notwithstanding paragraph (c)(l}
of this section, the Director  may specify
in a permit the test procedure used in
                           developing the data on which an
                           effluent limitations guideline was based,
                           or specified by the standards and
                           guidelines.
                             (4) Where a method approved under
                           40 CFR Part 136 for any pollutant or
                           parameter was used in developing the
                           applicable standards and limitations or
                           is specified by the standards and
                           limitations, the same method shall be
                           specified in the permit
                             (d) The sampling frequency and other
                           monitoring requirements specified by
                           the Director under paragraph (b)of this
                           section shall, to the extent applicable,
                           be consistent with monitoring
                           requirements specified in a standard or
                           effluent limitations guideline on which
                           the effluent limitations in the permit are
                           based.
                             (e) If the permittee believes that the
                           monitoring requirements specified by
                           the Director under paragraph (b) of this
                           section in any draft permit under
                           § 124.31 are not sufficient to yield data
                           representative of the volume of effluent
                           flow and the quantity of pollutants
                           discharged, it should request that
                           additional monitoring requirements
                           sufficient to yield such data be included
                           in the final permit. Compliance with
                           effluent limitations contained in the
                           permit will be determined in accordance
                           with the monitoring requirements
                           specified in the permit which, when
                           finally effective, are deemed to yield
                           data representative of the volume of
                           effluent flow and the quantity of
                           pollutants discharged.
                            (f) The Act provides that any person
                           who falsifies, tampers with, or
                           knowingly renders inaccurate any
                          monitoring device or method required to
                          be maintained under this section shall,
                          upon conviction, be punished by a fine
                          of not more than $10,000 per violation, or
                          by imprisonment for not more than 6
                          months per violation, or by both.

                          § 122.21  Recording of monitoring results.
                            (a) Any permittee required to monitor
                          under § 122.20 shall maintain records of
                          all monitoring information and
                          monitoring activities, including:
                           (1) The date, exact place and time of
                          sampling or measurements;
                           (2) The person(s) who performed the
                          sampling or measurements;
                           (3) The date(s) analyses were
                          performed;
                           (4) The person(s) who performed the
                          analyses;
                           (5) The analytical techniques or
                         methods used; and
                           (6) The results of such analyses.
                           (b) All records of monitoring activities'
                         and results (including all original strip
                         chart recordings for continuous   -
 monitoring instrumentation and
 calibration and maintenance records)
 shall be retained by the permittee for
 three years. The three-year period shall
 be extended:                 ,
   ~[1) Automatically during the course of
 any unresolved litigation regarding the
 discharge of pollutants by the permittee
 or regarding promulgated effluent
 guidelines applicable to the permittee, or
    (2) As requested by the Director.
    (c) The Act provides that any person
 who knowingly makes any false
 statement representation, or
 certification in any record or other
 document required to be maintained
 under this section shall, upon
 conviction, be punished by a fine of not
 more than $10,000 per violation, or by
 imprisonment for not more than six   ..
 months per violation, or by  both.

 § 122.22  Reporting of monitoring results
 and compliance by permittees.
   (a) Permittees shall report to the
 Director, using Discharge Monitoring
 Reports, the results of any monitoring
 specified by the permit This includes
 reporting of the results of monitoring
 required by § 122.20 to the Director, as
 often as required by the permit, but in
 no case less than once per year. Other
 monitoring data not specifically required
 hi the permit (such as internal process or
 internal waste stream data) or data
 collected by third parties need not be
 submitted unless it indicates a violation,
 but it shall be identified and referenced
 as a supplement to the DMR.
 [Comment: Reporting frequency depends
 upon the nature and effect of the discharge.
 For discharges such as small volume, non-
 contact cooling water, annual report
 submission may be sufficient Discharges
 vvhich require more frequent reporting
 include: variable discharges; discharges
 which contribute significant amounts of
 pollutants to the waters of the United States;
 discharges which contain toxic  or hazardous
 pollutants or other pollutants of concern; and
 discharges which apply new treatment or
 control methods.]

   (b) If the permittee monitors any
 pollutant more frequently than required
 by the permit using approved analytical
 methods, the results of this monitoring
 shall be reported in the DMR. For
 purposes of this paragraph, "approved
 analytical methods" are those test
 procedures for the analysis of pollutants
 which conform to 40 CFR 136 or are
 specified in the permit
  (c) Within 14 days after each interim
 or final permit compliance schedule
 date, the permittee shall provide the
Director with written notice of the
permittee's compliance or

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              Federal Register / Vol. 44, No. Ill / Thursday. June 7. 1979 / Rules and Regulations      32911
  noncompliance with the interim or final
  requirements.
    (d) The Act provides that any person
  who knowingly makes any false
  statement, representation, or
  certification in the monitoring report or
  notice of compliance shall, upon
  conviction, be punished by a fine of not
  more than $10,000 per violation, or by
  imprisonment for not more than six  .
  months per violation, or by both.

  § 12&23  Noncompfiance reporting.
    (a) On the last working day of
  February, May, August, and  November.
  the State Director shall submit to the
  Enforcement Division Director
  information concerning noncompliance
  with NPDES permit requirements by
  major discharges in the State in
  accordance with the reporting schedule
  contained in paragraph (g). The
  Enforcement Division Director shall
  submit such information, and shall also
  prepare and submit information for
  EPA-issued permits, to the EPA Office of
  Water Enforcement in accordance with
  paragraph (g).
    (b) The reports required by paragraph
  (a) shall include the following
  information:
    (1) Failure to complete construction
  elements. Noncompliance shall be
  reported:
    (i) When the permittee has failed to
  complete by the date specified in the
  permit, an element of the compliance
  schedule (e.g., award of contract,
  preliminary plans, begin construction or
  attain operational level}; and
   (ii) The permittee has not returned to
  compliance by accomplishing the
 requirements of the permit within 30
  days from the date a report is due under
  § 122:22(c).
   (2) Failure to complete or provide
 compliance schedule reports.
 Noncompliance shall be reported in the
 following circumstances:
   (i) When the permittee fails to
 complete or provide a report  required in
 the permit compliance schedule or under.
 § 122.22 (e.g, progress reports or
 notification of compliance or
 noncompliance); and
   (ii) The permittee has not returned to
 compliance by submitting the report
'within 30 days from the date  it is due
 under § 122.22(c).
  (3) Noncompliance with applicable
 standards and limitations.
 Noncompfiance shall be reported:
  (i) When the permittee has  violated an
 applicable standard or limitation and
 has not returned to compliance with the
 NPDES permit requirements within 45
 days from the date that the DMR or
 notification of noncompliance under
 § 122.14{h) was due; or
   (ii) When a pattern of noncompliance
 with applicable standards or limitations
 as determined by the Director exists for
 any major discharger over a period of 12
 months prior to the end of the current
 reporting period. This pattern of
 noncompliance is based on violation of
 monthly averages and excludes
 parameters where there is continuous
 monitoring. A pattern of noncompliance
 shall be reported whenever there is:
   (A) Any violation of the same permit
 or limitation or standard in two
 consecutive quarters; and
   (B) Any violation of one or more
 permit limitations or standards in each
 of four consecutive quarters; or
   (iii) When, as determined by the
 Director, a significant discharge of a
 pollutant occurs, such as a discharge of
 a toxic or hazardous substance.
   (4) Failure to Report Effluent Data.
 NoncompL'ance shall be reported where
 the permittee has failed to provide a
 DMR within 30 days of the date it is due
 or where the permittee has exceeded
 effluent limitations and has failed to
 report this noncompliance.
   (5) Deficient Reports. Noncompliance
 shall be reported where the required
 reports provided by the permittee are so
 deficient as to cause misunderstanding
 by the permit issuing authority and thus
 impede the review of the status of
 compliance.
   (6) Modifications to schedules of
 compliance under § 122.17(d).
 Noncompliance resulting from or
 constituting the basis for a modification
 under § 122.17(d) shall be reported.
 [Comment: Noncompliance reported under
 paragraph (b) shall be reported in successive
 reports until the noncompliance is resolved.
 The resolution of noncompliance shall be
 reported, and when the noncompliance is
 reported as resolved, it will not appear in
 subsequent reports.]

   (c) The narrative information required
 under paragraph (b) shall:
   (1) Include the following data in the
 following order.
   (i) Name, location, and permit number
 of each noncomplying permittee;
   (ii) A brief description and date of
 each instance of noncompliance;
  {iii) The date(s) and a brief
 description of the action(s) taken by the
 Director to insure compliance;
  (iv) Status of the instance of
 noncompliance with the date of the
action or resolution;
  (v) Any details which tend to explain
or mitigate an instance of
noncompliance; and
  (2) Provide separate lists for non-
POTWs, POTWs, and Federal
permittees:
  (3) Combine information concerning
schedule and effluent noncompliance in
a single entry for each permittee; and
  (4) Alphabetize all narrative listings
by permittee name. Where two or more
permittees have the same name, the
lowest permit number shall govern the
order of entry, i.e., the lowest number
shall be entered first.
  (d) Statistical information shall be
reported quarterly on all other instances
of noncompliance with permit
requirements by major dischargers not
'set forth in paragraph (b) of this section.
  (e) For minor dischargers whose
compliance has been reviewed by the
permitting authority, statistical
information on the types of
noncompliance listed under paragraph
(b) of this section shall be reported
annually. In addition, a separate list of
minor dischargers which are one or
more  years behind hi construction
phases of the compliance schedule shall
be submitted annually in alphabetical
order by name and permit number.
  (f) Reporting schedules: [I] The
schedule for reporting noncompliance by
major dischargers under paragraphs (b),
(c), and (d) of this section shall be as
follows:
         Quarters'
                            Dates lor
                           completion of
January, February, and March	    May 31.'
April. May. and June	   August 31 .*
July. August, and September	  November 30.'
October, November, and December	   February 28.*
  1 Covered by reports on noncompliance by major
dischargers.
  'Report made available to the pub*c on the date.

  (2) The annual reporting period for
noncompliance by minor dischargers
under paragraph (e) of this section shall
end at the end of the Federal fiscal year
(currently September 30), with reports
completed and available to the public no
more than 60 days later.
  (g) All reports prepared under this
section shall be made available to the
public for inspection and copying.
[Comment: The distinction between "major"
and "minor" dischargers is established in
EPA's annual operating guidance for the EPA
Regional Offices and the States.]

Subpart D—Permit Modification,
Revocation and Reissuance, and
Termination

§122.30  General
  Permits shall be (a) modified, (b)
revoked and reissued, or (c) terminated

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  32912       Federal  Register / Vol. 44, No. Ill /Thursday, June  7, 1979 / Rules  and Regulations
  only as authorized in this Subpart, and
  then only in conformance with
  applicable provisions of Part 124.

  § 122.31  Modification, revocation and
  reissuance, and termination.
    (a) An issued permit may be modified
  in whole or in part, revoked and
  reissued, or terminated during its term
  for cause as specified in this section.
    (b) Permit modifications shall not be
  used to extend the term of a permit
  beyond 5 years from the original date of
  issuance.
    (c) Modification, revocation and
  reissuance, or termination of an issued
  permit may be initiated by the Director
  under applicable provisions of Part 124.
  Any interested person may request the
  Director to modify, revoke and reissue,
  or terminate an issued permit.
    (d) Causes for modification,
  revocation and reissuance, or
  termination include the following:
    (1) Violation of any term or condition
  of the permit
    (2) Failure of the permittee to disclose
  fully all relevant facts or
  misrepresentation of any relevant facts
  by the permittee in the application or
  during the permit issuance process;
    (3) A change in any condition that
  requires either a temporary or a
  permanent reduction or elimination of
  any discharge controlled by the permit
  (e.g., plant closure, termination of
  discharge by connection to a POTW, the
  promulgation of any applicable effluent
  standard or prohibition under section
  307 of the Act, any change hi State law
  that requires the reduction or
  elimination of the discharge, etc.);
   (4) Information indicating that the
 permitted discharge poses a threat to
 human health or welfare; or
   (5) A change in ownership or control
 of a source which has a permit, where
 required by the Director in accordance
 with § 122.12(d).
   (e) In addition to the provisions of
 paragraph (d) of this section, causes for
 modification, or revocation and
 reissuance, but not termination, of a
 permit include  the following:
   (1) Material and substantial
 alterations or additions to the
 discharger's operation which were not
 covered in the effective permit (e.g.,
 production changes, relocation or
 combination of discharge points,
 changes in the nature  or mix of products
 produced), provided that such
 alterations do not constitute total
 replacement of the process or
production equipment causing the
discharge which converts it into a new
source;
  [Comment: Certain reconstruction activities
  may cause the new source provisions of
  section.306 to become applicable to the
  discharger. (See 1122.47.) In such cases the
  new source permit issuance procedures of
  5 124.12 should be followed rather than the
  modification procedures of § 124.13.]
    (2) The existence of a factor or factors
  which, if properly and timely brought to
  the attention of the Director, would have
  justified the application of Limitations or
  other requirements different from those
  required by applicable standards or
  limitations but only if the requester
  shows that such factor or factors arose
  after the final permit was issued;
    (3) Revision, withdrawal, or
  modification of water quality standards
  or EPA promulgated effluent limitations
  guidelines (including interim final
  effluent limitations guidelines}, but only
  v/hen:
   (i) The permit term or condition
  requested to be modified or revoked
  was based on a promulgated effluent
  limitations guideline or an EPA
  approved or promulgated water quality
  standards
   (ii)(A) EPA has revised, withdrawn, or
  modified that portion of the effluent
  limitations guidelines on which the
  permit term or condition was based; or
   (B) EPA has approved a State actioff
  with regard to a water quality standard
  on which the permit term or condition
  was based; and
   (iii) A request for modification, or
 revocation and reissuance, is filed in
 accordance with § 124.13 (or applicable
 State procedures meeting the
 requirements of § 124.13) within ninety
 (90) days after Federal Register notice
 of:
   (A} Revision, withdrawal, or
 modification of that portion of the
 effluent limitations guidelines; or
   (B) EPA approval of State action
 regarding a water quality standard;
   (4)  Judicial remand of EPA
 promulgated effluent limitations
 guidelines, if the Demand concerns that
 portion of the guidelines on which the
 permit term or condition was based and
 the request is filed within ninety (90)
 days of the judicial remand;
   (5) Any modification, or revocation
 and reissuance of permits specifically
 authorized by the Act, e.g., sections
 301(c), 301(g), 301(h), 301(i) or 301(k);
  (6) As necessary under § § 122.14(d),
 122.15{b) and 122.17 (c) and (e); or
  (7) Failure of an approved State to
 notify anoiher State whose waters may
 be affected by the discharge'from the
 approved State, as required by section
402(b)(3) of the Act.
  (f) The following permit modifications
shall not require public notice and
 opportunity for hearing under Part 124
 unlesslhey would render the applicable
 standards and limitations hi the permit
 less stringent, or unless contested by the
 permittee:     -.-•-•
   (1) Correction of typographical errors;
   (2) A change requiring more frequent  -
 monitoring or reporting by the permittee;
   (3) A change hi an interim compliance
 date, but not beyond 120 days and not
 where the change would interfere with
 the attainment of a final compliance
 date;
   (4) A change in ownership or control
 of a source which has a permit where no
 other change hi the permit is necessary
 and where transfer is accomplished in
 accordance with § 122.12(d);
   (5) A change in the construction
 schedule for a discharger which is a new
 source. No such change shall affect a
 discharger's obligation to have all
 pollution control equipment installed
 and hi operation prior to discharge
 under § 122.47(d}(4); and
   (6) Deletion of a point source outfall,
 where  the discharge from that outfall is
 terminated and does not result in
 discharge of pollutants from other
 outfalls except in accordance with
 permit limits.

 Subpart E—Special NPDES Programs
 §122.40  General
   The following sections described
 NPDES program coverage for certain
 categories of point source dischargers.

 § 122.41  Disposal of pollutants into wells,
 into publicly owned treatment works, or by
 land application.
   (a) Where part of a discharger's
 process waste water is not being
 discharged into waters of the United
 States or  contiguous zone because it is
 dis'posed  into a well, into a POTW, or by
 land application thereby reducing the
 flow or level of pollutants being
 discharged into waters of the United
 States, applicable effluent limitations
 and standards for the discharge hi the
 permit shall be adjusted to reflect the
 reduced raw waste resulting from such
 disposal. Effluent limitations and
 standards in the permit shall be
 calculated by one of the following  "
 methods:
  (1) If none of the waste from a
 particular process is discharged into
 waters of the United States, and effluent
 limitations guidelines provide separate
 allocation for wastes from that process,
 all allocations for the process shall be
 eliminated from calculation of permit
effluent limitations or standards;
  (2) In all cases other than those
described  in paragraph (1), effluent

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              Federal Register / Vol. 44, No. Ill / Thursday,  June 7, 1979 /  Rules and Regulations       32913
 limitations shall be adjusted by
 multiplying the effhient limitation
 derived by applying effluent guidelines
 to the total waste stream by the amount
 of wastewater flow to be treated and
 discharged into waters of the United
 States, and dividing the result by the
 total wastewater floiw. Effluent
 limitations and standards so calculated
 may be further adjusted under Part 125,
 Subpart D to make them more stringent
 if dischargers to wells, publicly owned
 treatment works, or by land application
 change the character or treatability of
 the pollutants being discharged to
 receiving waters.
 [Comments This method may be algebraically
 expressed as:
 P = E X N / T; where P is the permit effluent
 limitation, E is the limitation derived by
 applying effluent guidelines to the total waste
 stream, N is the wastewater flow to be
 treated and discharged to waters of the
 United States, and T is the total wastewater
 flow.]

   (b) Paragraph (a) shall not apply
 where promulgated effluent limitations
 guidelines:
   (1) Control concentrations of
 pollutants discharged, but not mass; or
   (2) Specify a different specific
 technique for adjusting effluent
 limitations to account for well injection.
   (c) Paragraph (a) does not alter a
 discharger's obligation to meet any more
 stringent requirements established
 under §§ 122.14 and 122.15.

 §. 122.42  Concentrated animal feeding
 operations.
   (a) Concentrated animal feeding
 operations are point sources subject to
 the NPDES permit program.
   (b) Definitions.
   (1) "Animal feeding operation" means
 a lot or facility (other than an aquatic
 animal production facility) where the
 following conditions are met:
   (i) Animals (other than aquatic
 animals) have been, are, or will be,
 stabled or confined and fed or
 maintained for a total of 45 days or more
 in any 12-month period, and
   (ii) Crops, vegetation, forage growth or
 post-harvest residues are not sustained
 in the normal growing season over any
 portion of the lot or facility.
 Two or more animal feeding operations
 under common ownership are
 considered, for the purposes of these
 regulations, to be a single animal
 feeding operation if they adjoin each
 other or if they use a common area or
 system for the disposal of wastes.
   (2) "Concentrated animal feeding
operation" means an animal feeding
operation which meets the criteria set
 forth in paragraphs (b)(2) (i), (ii), or (iii)
 of this section:
   (i) More than the numbers of animals
 specified in any of the following
 categories are confined:
   (A) 1,000 slaughter and feeder cattle,
   (B) 700 mature dairy cattle (whether
 milked or dry cows),
   (C) 2,500 swine each weighing over 25
 kilograms (approximately 55 pounds),
   (D) 500 horses,
   (E) 10,000 sheep or lambs,
   (F) 55,000 turkeys.
   (G) 100,000 laying hens or broilers (if
 the facility has a"continuous overflow
 watering),
   (H) 30,000 laying hens or broilers (if
 the facility has a liquid manure system),
   (I) 5,000 ducks, or
   (J) 1,000 animal units; or
   (ii) More than the following numbers
 and types of animals are confined:
   (A) 300 slaughter or feeder cattle,
   (B) 200 mature dairy cattle (whether
 milked or dry cows),
   (C) 750 swine each weighing over 25
 kilograms (approximately 55 pounds),
   (D) 150 horses.
   (E) 3,000 sheep or lamb,
   (F) 16,500 turkeys,
   (G) 30,000 laying hens or broilers (if
 the facility has continuous overflow
 watering),
   (H) 9,000 laying hens or broilers (if the
 facility has a liquid manurejiandling
 system),
   (I) 1,500 ducks, or
   (J) 300 animal units;
 and either one of the following
 conditions are met: pollutants are
 discharged into waters of the United  ~
 States through a man-made ditch,
 flushing system, or other similar man-
 made device; or pollutants are
 discharged directly into navigable
 waters which originate outside of and
 pass over, across, or through the facility
 or otherwise come into direct contact
 with the animals confined in the
 operation. Provided, however, that no
 animal feeding operation is a
 concentrated animal feeding operation
 as defined above if such animal feeding
 operation discharges only in the event of
 a 25 year, 24 hour storm event.
   {iii) The Director determines that the
 operation is a significant contributor of
 pollution to waters of the United States,
 in accordance with paragraph (c).
   (3) The term "animal unit" means a
 unit of measurement for any animal
 feeding operation calculated by adding
 the following numbers: the number of
 slaughter and feeder cattle multiplied by
1.0, plus the number of mature dairy
cattle multiplied by 1.4, plus the number
of swine weighing over 25 kilograms
(approximately 55 pounds), multiplied
by 0.4, plus the number of sheep
multiplied by 0.1, plus the number of
horses multiplied by 2.0.
   (4) The term "man-made" means
constructed by man and used for the
purpose of transporting wastes.
   (c) Case-by-case designation of
concentrated animal feeding operations.
   (1) Notwithstanding any other
provision of this section,  any animal
feeding operation may be designated as
a concentrated animal feeding operation
where it is determined to be a
significant contributor of pollution to the
waters of the United States. In making
this designation the Director shall
consider the following factors:
   (i) The size of the animal feeding
operation and the amount of wastes
reaching waters of the United States;
   (ii) The location of the  animal feeding
operation relative to waters of the
United States;
   {iii) The means of conveyance of
animal wastes and process waste
waters into  waters of the United States;
   (iv) The slope, vegetation, rainfall, and
other factors affecting the likelihood or
frequency of discharge of animal wastes
and process wastewaters into waters of
the United States; and
   (v) Other  such factors relative to the
significance of the pollution problem
sought to be regulated.
   (2) No animal feeding operation with
less than the numbers of animals set
forth in paragraphs (b)(2) (i) and (ii) of
this section designated as a
concentrated animal feeding operation
unless:
   (i) Pollutants are discharged into
waters of the United States through a
man-made ditch, flushing system, or
other similar man-made device; or
   (ii) Pollutants  are discharged directly
into waters  of the United States which
originate outside of the facility and pass
over, across, through the facility or
otherwise come  into direct contact with
the animals  confined hi the operation.
   (3) In no case shall a permit
application be required from a
concentrated annual feeding operation
designated under this paragraph until
there has been an onsite inspection  of
the operation and a determination that
the operation should and could be
regulated unde'r the permit program.

§ 122.43  Concentrated aquatic animal
production facilities.
  (a) Concentrated aquatic animal
production facilities,  as defined in this
section, are point sources subject to the
NPDES permit program.
  (b) Definitions. (1)  "Concentrated
aquatic animal production facility"

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  32914       Federal Register / Vol.  44, No. Ill  / Thursday, June 7. 1979 / Rules and Regulations
  means a hatchery, fish farm, or other
  facility which contains, grows, or holds:
    (i) Cold water fish species or other
  cold water aquatic animals in ponds,
  raceways, or other similar structures
  which discharge at least 30 days per
  year but does not include:
    (A) Facilities which produce less than
  9,090 harvest weight kilograms
  (approximately 20,000 pounds) of
  aquatic animals per year, and
    (B) Facilities which feed less than
  2,272 kilograms (approximately 5,000
  pounds) of food during the calendar
  month of maximum feeding.
    (ii) Warm water fish species or other
  warm water aquatic animals in ponds,
  raceways or other similar structures
  which discharge at least 30 days per
  year, but does not include:
    (A) Closed ponds which discharge
  only during periods of excess runoff; or
    (B) Facilities which produce less than
  45,454 harvest weight kilograms
  (approximately 100,000 pounds) of
  aquatic animals per year.
    (2) "Cold water aquatic animals'*
  include, but are not limited to, the
  Salmonidae family of fish, e.g., trout and
  salmon.
    (3) "Warm water aquatic animals"
  include, but are not limited to, the
  Ameiuride, Centrarchidae and
  Cyprinidae families of fish, e.g,
  respectively catfish, sunfish, and
  minnows.
    (c) Case-by-case designation of
  concentrated aquatic animal production
 facilities. Any warm or cold water
  aquatic animal production facility not
  otherwise falling within the definitions
 provided in paragraph (b) may be
 designated as a concentrated aquatic
 animal production facility where the
 facility is determined to be a significant
 contributor of pollution to waters of the
 United States. In making this
 designation the Director shall consider
 the following factors:
   (1) The location and quality of the
 receiving waters of the Unites States;
   (2) The holding, feeding, and
 production capacities of the facility;
   (3) The quantity and nature of the
 pollutants reaching waters of the United
 States; and
   (4) Other such  factors relating to the
 significance of the pollution problem
 sought to be regulated.
 In no case shall a permit application be
 required from a concentrated aquatic
 animal production facility designated
 under this paragraph until there has
 been an on-site inspection of the facility
 and a determination that the facility
 should and could be regulated under the
permit program.
 " § 122.44  Aquaculture projects
    (a) Discharges into aquaculrure
  projects, as defined in this section, are
  subject to the NPDES permit program
  through section 318 of the Act, and in
  accordance with Part 125, Subpart B.
    (b) Definitions. (1) "Aquaculture
  project" means a defined managed
  water area which uses discharges of
  pollutants into that designated area for
  the maintenance or production of
  harvestable freshwater, estuarine, or
  marine plants or animals.
    (2) "Designated project area" means
  the portions of the waters of the United
  States within which the applicant for a
  permit plans to confine the cultivated
  species, using a method or plan or
  operation (including, but not limited to
  physical confinement) which, on the
  basis of reliable scientific evidence, is
  expected to ensure that specific
  individual organisms comprising an
  aquaculrure crop will enjoy increased
  growth attributable to the discharge of
  pollutants permitted under this section
  and be harvested within a defined
  geographic area.

  § 122.45 Separate storm sewers.
   (a) Separate storm sewers, as defined
  in this section, are point sources subject
  to the NPDES permit program. Separate
  storm sewers may be covered either
 under individual NPDES permits or
 under the general permit program (see
  § 122.48).
   (b) Definition. "Separate storm sewer"
 means a conveyance or system of
 conveyances (including but not limited
 to pipes, conduits, ditches, and
 channels) primarily used for collecting
 and conveying storm water runoff and
 either:
   (1) Located in an urbanized area as
 designed by the Bureau of Census
 according to the criteria in 39 FR15202
 (May 1,1974); or
  (2) Not located in an urbanized area
 but designated as a significant
 contributor of pollution under paragraph
 (c).
 "Separate storm sewer" does not
 include any conveyance which
 discharges process wastewater or storm
 water runoff contaminated by contact
 with wastes, raw materials, or pollutant-
 contaminated soil, from lands or
 facilities used for industrial or
 commercial activities, into waters of the
 United States or into separate storm
 sewers. Such discharges are subject to
 the general provision of this Part.
 [Comment: Whether or not a system of
conveyances is or is not a separate storm
sewer for purposes of this Part shall have no
bearing on whether or not the system is
  eligible for funding under Title n of the Act,
  see 40 CFR § 35.925-21.]

    (c) Case-by-case designation of
  separate Btonn sewers. The Director
  may designate a storm sewer not
  located in an urbanized area as a
  separate storm sewer. This designation
  may be made to the extent allowed or
  required by EPA promulgated effluent
  guidelines for point sources in the
  separate storm sewer category or when:
    (1) A Water Quality Management plan
  under section 208 of the Act, which
  contains requirements applicable to
  such point sources is approved; or
    (2) A storm sewer is determined to be
  a significant contributor of pollution to
  the waters of the United States. In
  making this determination the following
  factors shall be considered:
    (i) The location of the storm sewer
  with respect to waters of the United
  States:
    (ii) The size of the storm sewer;
    (iii) The quantity and nature of the
  pollutants reaching waters of the United
  States; and
    (iv) Other such factors relating to the
  significance of the pollution problems
  sought to be regulated.
  [Comment An NPDES permit for discharges
  into waters of the United States from a
  separate storm sewer covers all conveyances
  which are a part of that separate storm sewer
  system, even though there may be several
  owners-operators of such conveyances.
  However, discharges into separate storm
  sewers from point sources which are not part
  of the separate storm sewer systems may
  also require a permit]

  §122.46  snvteufturai activities.
    (a) Silvicultural point sources, as
  defined in this section, are point sources
  subject to the NPDES permit program.
    (b) Definitions. (1) "Silvicultural point
  source" means any discernible,
  confined, and discrete conveyance
  related to rock crushing, gravel washing,
 log sorting, or log storage facilities
 which are operated in connection with
  Silvicultural activities and from which
 pollutants are discharged into waters of
 the United States.
   [Comment: The term does not include non-
 point source Silvicultural activities such as
 nursery operations, site preparation,
 reforestation, and subsequent cultural
 treatment thinning, prescribed burning, pest
 and fire control, harvesting operations,
 surface drainage, and road construction and
 maintenance from which there is runoff
. during precipitation events. However, some
 of these activities (such as stream crossing
 for roads) may involve point source
 discharges of dredged or fill material which
 may require a section 404 permit (see 33 CFR
 S 209.120).]

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              Federal Register / Vol. 44.  No. Ill  / Thursday, June 7, 1979  /  Rules and Regulations
                                                                       32915
   (2) "Rock crushing and gravel washing
 facilities" means facilities which
 process crushed and broken stone,
 gravel and riprap (see 40 CFR Part 436,
 Subpart B, and the effluent limitations
 guidelines pursuant thereto).
   (3) "Log sorting and log storage
 facilities" means facilities whose
 discharges result from the holding of
 unprocessed woodl i.e. logs or
 Toundwood with bark or after removal
 of bark in self-contained bodies of water
 (rail! ponds or log ponds) or stored on
 land where water is applied
 intentionally on the logs (wet decking).
 (See 40 CFR Part 429. Subpart J, and the
 effluent limitations guidelines pursuant
 thereto.)

 § 122.47  New sources and new
 dischargers.
   (a) Definitions. (1) "New source" and
 "new discharger" are defined in § 122.3
 (u) and (v).
   (2) "Source" means any building,
 structure, facility, or installation from
 which there is or may be a discharge of
 pollutants;
   (3) "Existing source" means any
 source which is not a new source or a
 new discharger;
   (4) "Site" means the land or water
 area upon which a source and its water
 pollution control facilities are physically
 located, including but not limited to
 adjacent land used for utility systems,
 repair, storage, shipping or processing
 areas, or other areas incident to the
 industrial, manufacturing, or water
 pollution treatment processes.
   (5) "Facilities or equipment" means
 buildings, structures, process or
 production equipment or machinery
 which form a permanent part of the new
 source and which will be used in its
 operation, provided that such facilities
 or equipment are of such value as to
 represent a substantial commitment to
 construct. It does not include facilities or
 equipment used hi connection with
 feasibility, engineering, and design
 studies regarding the source or water
 pollution treatment for the source.
   (b) Criteria and standards for new
 source determination. (1) The following
 construction activities result in a new
 source as defined in  § 122.3.
   (i) Construction of a source on a site
 where another source is not located, or
   (ii) Construction of a source on a site
 where another source is located,
 provided that the process or production
 equipment which causes the discharge
 of pollutants from the other source is
 totally replaced by this construction or
the construction results in a new or
additional discharge.
 [Comment: The fact that a source is
 constructed on a site so that it shares or uses
 common land or water areas of another
 source for utility systems, repair, storage, or
 shipping does not prevent that source from
 being considered a new source.]
   (2) The modification of an existing
 source by changing existing process or
 production equipment, replacing existing
 process or production equipment (except
 as provided in paragraph (b)(l)), or by
 the addition of such equipment on the
 site of the existing source which results
 in a change in the nature or quantity of
 pollutants  discharged is not a new
 source under this section,. Modifications
 of this nature are subject to the
 provisions of § 122.31(e)(2).
   (3) Construction of a new source as
 defined under § 122.3(v) has commenced
 if the owner or operator has:
   (i) Begun, or caused to begin as part of
 a continuous on-site construction
 program:
   (A) Any placement, assembly, or
 installation of facilities or equipment;
   (B) Significant site preparation work
 including clearing, excavation, or
 removal of existing buildings, structures,
 or facilities which is necessary for  the
 placement, assembly, or installation of
 new source facilities or equipment; or
   (ii) Entered a binding contractual
 obligation for the purchase of facilities
 or equipment which is intended to be
 used hi its  operation within a
 reasonable time. Options to purchase or
 contracts which can be terminated or
 modified without substantial loss, and
 contracts for feasibility, engineering,
 and design studies do not constitute a
 contractual obligation under this
 paragraph.
   (c) Requirement of an Environmental
 Impact Statement. (1) The issuance of a
 permit to a new source:
   (i) By EPA may be a major Federal
 action significantly affecting the quality
 of the human environment within the
 meaning of the National Environmental
 Policy Act of 1969 (NEPA), 33 U.S.C.
 4321 et seq. and is subject to the
 environmental review provisions of
 NEPA as set out in 40 CFR 6, Subpart I.
 EPA will determine whether an
 Environmental Impact Statement (EIS) is
 required under § 124.12 and 40 CFR 6,
 Subpart I;
   (ii) By an NPDES-approved State is
 not a Federal action and therefore does
 not require EPA to conduct an
 environmental review.
  (2) The EIS shall include a
recommendation on whether the permit
is to be issued or denied.
  (i) If the recommendation is to deny
the permit,  the final EIS shall contain
the reasons for the recommendation and
list those measures, if any, which the
applicant could take to cause the
recommendation to be changed;
  (ii) If the recommendation is to issue
the permit, the final EIS shall
recommend the actions which the
permittee should take to prevent or
minimize any adverse environmental
impacts;
  (3) The Regional Administrator shall
issue or deny the new source NPDES
permit following a complete evaluation
of any significant beneficial and adverse
environmental impacts and a review of
the recommendations contained in the
EIS.
  (4)(i) No  on-site construction of a new
source for which an EIS is required shall
commence before issuance  of a  final
permit incorporating appropriate EIS-
related requirements, or before
execution by the applicant of a legally
binding written agreement which
requires compliance with all such
requirements, unless such construction
is determined by the Regional
Administrator not to cause  significant
adverse environmental impact.
  (ii) No on-site construction of a new
source for which no EIS is required shall
commence before 15 days following
issuance of a finding of no significant
impact, unless the new source requests
permission to construct and the Regional
Administrator determines that a finding
of no significant impact will probably be
made.
  (5) The permit applicant must notify
the Regional Administrator of any on-
site construction which begins before
the times specified in paragraph (c)(4) of
this section. If on-site construction
begins in violation of this paragraph, the
Regional Administrator shall advise the
owner or operator that it is proceeding
with construction at its own risk, and
that such construction activities
constitute grounds for denial of a permit.
The Regional Administrator may seek a
court order to enjoin construction in
violation of this paragraph.
  (d) Effect of compliance with new
source performance standards. (1)
Except as provided in paragraph (d)(2),
any new discharger on  which
construction commenced after October
18,1972, or any new source, which
meets the applicable promulgated new
source  performance standards before
the commencement of discharge, shall
not be subject to any more stringent new
source  performance standards, or to any
more stringent technology-based
standards under section 301(b)[2) of the
Act for the  shortest of the following
periods:
  (i) Ten years from the date that
construction is completed;         ^-

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  32916       Federal Register / VoL 44. No. Ill / Thursday, June 7, 1979 / Rules and Regulations
    (ii) Ten years from the date the source
  begins to discharge process or other
  non-construction related wastewater, or
    (iii] The period of depreciation or
  amortization of the facility for the
  purposes of section 167 or 169 (or both]
  of the Internal Revenue Code of 1954.
  [Comment: The provisions of this paragraph
  do not apply to existing sources which
  modify their pollution control facilities or
  construct new pollution control facilities and
  achieve performance standards, but which
 , are neither new sources nor new dischargers
  or otherwise do not meet the requirements of
  this paragraph.]
    (2) The protection from more stringent
  standards of performance afforded by
  paragraph (d)(l) of this section does not
  apply to:
    (^'Additional or more stringent permit
  conditions which are  not technology
  based, e.g., conditions based on water ,
  quality standards, or effluent standards
  or prohibitions under section 307(a); and
    (ii] Additional permit conditions
  controlling pollutants listed as toxic
  under section 307(a) of the Act or as
  hazardous substances under section 311
  of the act and which are not controlled
  by new source performance standards.
 This includes permit conditions
 controlling pollutants  other than those
 identified as toxic or hazardous where
 control of those other  pollutants has
 been specifically identified as the
 method to control the  toxic or hazardous
 pollutant.
    (3) Where an NPDES permit issued to
 a source enjoying a "protection period"
 under paragraph (d)(l), will expire on or
 before the expiration of the protection
 period, such permit shall require the
 owner or operator of the source to be in
 compliance with the requirements of
 section 301 and any other than
 applicable requirements of the act
 immediately upon the  expiration of the
 protection period. No additional period
 for achieving compliance with these
 requirements shall be allowed.
   (4) The owner or operator of a new
 source, a new discharger, a source
 recommencing discharge after
 terminating operations, or a source
 which had been an indirect discharger
 which commences discharging into
 navigable waters shall install and have
 in operating condition, and shall "start-
 up" all pollution control equipment
 required to meet the terms and
 conditions of its permits before
 beginning to discharge. Within the
 shortest feasible time (not to exceed 90
 days), the owner or operator must meet
 all permit terms and conditions.
  (5) After the effective date of new
source performance standards, in
accordance with section 306(e), it shall
  be unlawful for any owner or operator
  of any new source to operate such
  source in violation of those standards
  applicable to such source.

  § 122.48  General permit program.
    (a) Definitions. (1) The term "separate
  storm sewer" is defined in § 122.45.
    (2) The term "general permit program
  area" ("GPPA") means any area so
  designated under paragraph (c) of this
  section in which all owners or operators
  of separate storm sewers or other
  categories  of point sources are subject
  to the same general permit, other than
  owners or operators of such sources to
  whom individual NPDES permits have
  been issued.
  [Comment: All draft general permits for point
  sources other than separate storm sewers
  must be sent to the EPA Deputy Assistant
  Administrator for Water Enforcement during
  the public comment period for a 90-day
  review. If the draft general permit does not
  meet the criteria of §122.48(bX2), the EPA
  Deputy Assistant Administrator may object
  to the issuance of the general permit within
  those 90 days. See § 123.12(a)(14) and
   (3) The term "general permit" means
 an authorization to discharge which,
   (i) Where issued by EPA, is published
 in the Federal Register or.
   (ii) Where issued by a State,
 published in accordance with applicable
 State procedures, and
   (iii) Is applicable to all owners and
 operators of separate storm sewers or
 other categories of point sources in a
 designated GPPA, other than owners
 and operators of such sources to whom
 individual NPDES permits have been
 issued.
   (b) The Director may regulate the
 following discharges under general
 permits:
   (1) Separate Storm sewers;  and
   (2) Such other categories of point
 sources if there are a number of minor
 point sources  operating in a
 geographical area that:
   (i) Involve the same or substantially
 similar types of operations;
   (ii) Discharge the same types of
 wastes;-
   (iii) Would require the same effluent
 limitations or operating conditions;
   (iv) Would require the same similar
 monitoring requirements; and
   (v) In the  opinion of the director, would
 be more appropriately controlled under
 a general permit than under an
individual NPDES permit.
  (c) Each general permit shall be
applicable to a class or category of
dischargers meeting the criteria of
paragraph (b) within a GPPA designated
by the Director.
   (1) The GPPA shall correspond with
 existing geographic or political
 boundaries such as:
   (i) Designated planning areas under
 sections 208 and 303 of the Act;
   (ii) Sewer districts  or sewer
 authorities;
   (iii) City, county or State political
 boundaries;
   (iv) State highway  systems;
   (v) Standard metropolitan statistical
 areas as defined by the Office of
 Management and Budget;
   (vi) Urbanized areas as defined by the
 Bureau of Census (see § 122.45(b)(l)); or
   (vii) Any other appropriate divisions
 or combinations of the above
 boundaries which will encompass the
 sources subject to the same general
 permit
   (2) Any designation of any GPPA is
 subject to review by the Director at the
 expiration of the general permit for the
 GPPA. or if individual permits have
 been issued to all the owners and
 operators in the categories of point
 sources within the GPPA, or as
 necessary to address water quality
 problems effectively.
   (3) General permits shall be issued in
 accordance with the applicable
 requirements of Part 124.
 [Comment: The permit issuing authority is
 encouraged to provide as much actual notice
 of the draft general permit to the permitees as
 possible. This notice would be in addition to
 the public notice requirements in § 124.41(1)
 and could include notice in trade association
 journals and newsletters.]
   (d) Scope of General Permits. (1) Each
 general permit shall cover all owners
 and operators of separate storm sewers
 or other designated categories of point
 sources in the GPPA for which the
 general permit is issued, except:
   (i) As provided in paragraph (e); and
   (ii) Owners and operators of separate
 storm sewers or other categories of
 point sources, who are already subject
 to individual NPDES permits prior to the
 effective date of the general permit;
   (2)(i) All sources not excluded from
 general permit coverage for these
 reasons are permittees subject to the
 terms and conditions of the general
 permit.
  (ii] Source excluded from general
 permit coverage solely because  they
 already have an individual NPDES
 permit may request that the individual
 permit be revoked, and that they be
 covered by the general permit. Upon
revocation of the individual NPDES
permit, the general permit shall apply to
such point source.
  (e) Case-by-case designation.  (1)
Under § 124.14, the Director may revoke
a general permit as it applies to any

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              Federal Register  /  Vol. 44.  No. Ill  / Thursday, June  7. 1979 / Rules  and  Regulations       32917
 person and require such person to apply
 for and obtain an individual NPDES
 permit. Interested persons may petition
 the Director to take action under this
 paragraph if one of the six cases listed
 below occurs. Cases where individual
 NPDES permits  may be required include
 the following:   j
   (i) The covered discharge(s) is a
 significant contributor of pollution;
   (ii) The discharger is not hi
 compliance with the terms and
 conditions of the general permit;
   (iii) A change has occurred hi the
 availability of demonstrated technology
 or practices for  the control or abatement
 of pollutants from the covered point
 source;
   (iv) Effluent limitations guidelines are
 subsequently promulgated for point  '
 sources covered by the general permit;
   (v) A Water Quality Management plan
 containing requirements applicable to
 such point source is approved; or
   (vi) The requirements of paragraph
 (b)(2)(i) through (iv) are not met.
   (2) Where EPA is the permit issuing
 authority, the Regional Administrator
 may revoke a general permit as it
 applies to any person and require such
 person to apply for an individual NPDES
 permit if:
   (i) There has been an on-site
 inspection of the facility and a
 determination that the point source
 should and could be regulated under an
 individual permit; and
   (ii) The owner or operator has been
 notified in writing of the revocation of
 the general permit and that a permit
 application is required. This notice shall
 include an application form, a statement
 that the owner or operator has sixty
 days from receipt of notice to file the
 application, and a statement that the
 general permit no longer authorizes the
 owner or operator to discharge
 pollutants.
   (3) Any owner or operator subject to a
 general permit may request to be
 excluded from the coverage of the
 general permit by applying for an
 individual permit The owner or
 operator shall submit such application,
 with reasons supporting the request, to
 the Director no later than ninety days
 after the publication by EPA of the
 general permit in the Federal Register or
 the publication by the State in
 accordance with applicable State law.
 All such requests shall be granted by
 issuance of any individual permit if the
 reasons cited by the owner or operator
 are adequate to support the request.
  (4) Where an individual NPDES
permit is issued to an owner or operator
otherwise subject to a general permit,
the general permit as it applies to the
 individual NPDES permittee is
 automatically revoked on the effective
 date of the individual permit.
   (5) Any owner or operator applying
 for an individual NPDES permit under
 this paragraph is subject to the
 procedures set forth hi Part 124.

 § 122.49  Special considerations under
 Federal law.
   Under section 301(b)(l){C) of the Act,
 permits shall be consistent with and
 reflect requirements under applicable
 Federal laws other than the Act, and to
 the extent authorized by law,
 requirements under Executive Orders.
 For permits issued by the Regional
 Administrators, such Federal
 requirements include but are not limited
 to the following:
   (a) Executive order 11990 (Protection
 of Wetlands).
   (b) Executive Order 11988
 (Preservation of Floodplains).
   (c) Sections 3, 4, and 5 of the Wild and
 Scenic Rivers Act, 16 U.S.C. 1273 et seq.
   (d) The National Historic Preservation
 Act of 1966, 42 U.S.C. 4321 et seq. (and
 the related Executive Order 11593).
   (e) The Land and Water Conservation
 Act, 16 U.S.C. 460, et seq.
   (f) Section 7 of the endangered
 Species Act, 16 U.S.C 1531 et seq.
   (g) Section 307 of the Coastal Zone
 Management Act, 16 U.S.C. 1451 et seq.
 [Comment: NPDES permits must be     *~
 consistent with approved coastal zone
 management plans by virtue of sections
 307(c)(3}(A) (Federally issued permits) and
 307(c)(l) (approval and oversight of State
 permit programs).]

   (h) The Solid Waste Disposal Act, as
 amended by the Resource Conservation
 and Recovery Act of 1976, 42 U.S.C. 6901
 et seq.
   (i) The Safe Drinking Water Act, 42
 U.S.C. 300f et seq.
•   0) The Marine Protection, Research,
 and Sanctuaries Act (the Ocean
 Dumping Act), 33 U.S.C. 1401 et seq.
   (k) The Surface  Mining Control and
 Reclamation Act of 1977, 30 U.S.C. 1201
 et seq.
   (1) The Fish and Wildlife Coordination
 Act, 16 U.S.C. 661  et seq.

 Subpart F—Miscellaneous

 § 122.60  Delegation of authority.
   Subject to the appeal provisions of
 Part 124, the following authorities are
 hereby delegated to each of the Regional
 Administrators for the Region hi which
 they are located:
  (a) The authority to issue, condition.
revoke, modify, deny, monitor, and
enforce permits for discharges regulated
by the NPDES program under sections
318, 402 and 405 of the Act.
  (b) The authority to receive permit
applications and related documents
from States and to object in writing to
the issuance of permits under section
402(d)(2) of the Act or (if such permits
are outside the guidelines and
requirements of the Act) under sections
402(d) (1), (2) and (4) of the Act.
  (c) The authority under section 403(c)
of the Act to issue permits under section
402 of the Act for a discharge into the
territorial sea, the contiguous zone, or
the oceans before the promulgation of
guidelines under section 403(c) of the
Act, including the determination that
issuance is in the public interest.
  (d) The authority granted to the
Administrator by sections 308(a) and
308(b) of the Act.
  (e) The authority to grant variances
granted to the Administrator under
sections 301(c). 301(g), and 316(a) of the
Act.
  (f) The authority to grant  time
extensions of statutory compliance
dates under sections 301(i) and 301(k) of
the Act.
  (g) The authority to establish water-
quality-related effluent limitations under
section 302 of the Act
  (h) These authorities may be
redelegated to the Enforcement Division
Director of each Region. Permit issuance
authority may not be redelegated below
the Enforcement Division Director.
Appendix A—Point Source Categories and Permit
             Expiration Dates
     Point source category
                       Permit expiration dates

Aluminum Forming 	 _„ 	
Auto & Other Laundries „.,... 	 	
Battery Manufacturing 	 	 :_
Coa! Mining 	
Co9 Coating 	 	 „_ 	 	
Electric & Electronic Components..-
Electroplating 	 _—.«.„„..—.
Explosives Manufacturing 	
Foundries „„„. 	 ......... ... ,, ,,.„
Gum & Wood Chemicals 	 . 	
Inorganic Chemicals 	
Iron & Steel.- 	 	 	 	 	
Leader Tanning and Finishing 	
Mechanical Products ..— .....,w.___™
Nonferrous Metals „ 	 . 	 „,„....._..
Ore Mining ,,,...
Organic Chemicals 	 . 	
Paint & Ink 	
Pesticides ...... 	 '. 	 „„„„
Petroleum Fief-rang
Prtarmi*CeUt«C3!S..,, ., „, ..,,,
Photographic &jppfies 	 „
Plastic A Synthetic; material*
Porcelain Fnamftl 	
Printing & Publishing

Rubbar 	
Soaps i Detergents 	
Steam £toctnc
TKrttoUata 	 , 	 „
Timfcar

June 30 1981
June 30, 1981.
June 30. 1981.
June 30, 1981.
December 31. 1980.
June 30, 1981.
June 30 1981
June 30, 1981.
June 30, 1981.
June 30. 1981.
June 30, 1581.
June 30, 1981.
March 31, 1981.
September 30, 1980.
September 30, 1980.
June 30, 1981.
December 31, 1980.
December 31 1980
March 31. 1981.
December 31. 1980.
June 30, 1981.

June 30, 1961.

June 30 1981
December 31 1980


June 30, 1981.
March 31 1981
September 30 1980


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  32918       Federal Register / Vol. 44, No. Ill  / Thursday, June 7, 1979  /  Rules  and  Regulations
    5. A new Part 123 is added as follows:

  PART 123—STATE PERMIT PROGRAM
  REQUIREMENTS

  SubpartA—General

  Sec.
  123.1  Purpose and scope.
  123.2  Definitions.
  123.3  Elements of a program submission.
  123.4  Program description.
  123.5  Memorandum of Agreement with the
      Secretary for section 404 programs.
  123.6  Attorney General's Statement.
  123.7  Memorandum of Agreement with the
      Regional  Administrator.
  123.8  Sharing of information.

  Subpart B—Requirements of State
  Programs
  123.11  Requirement to obtain a permit.
  123.12  Operational requirements.
  123.13  Control of disposal of pollutants into
      wells.
  123.14- Inspections, monitoring, entry, and
      reporting.

  Subpart C—Transfer of Information,
  Objections to Permits
  123.21  Receipt and use of Federal
      information.
  123.22  Transmission of information to EPA.
  123.23  Objections to proposed NPDES
    ^permits.
  123724  Prohibitions.

  Subpart D—Enforcement Provisions
  123.31  Compliance evaluation programs. •
  123.32  Enforcement

  Subpart E—Planning and Conflict of
  Interest Requirements
  123.41  Continuing planning process.
  123.42  Agency board membership.

  Subpart f—Procedures for Approval of
 State Permit Programs
 123.51  Section 402 approval process.
 123.52  Section 404 approval process.

 Subpart G—Revisions to Approved
 Programs
 123.61  Procedure for revision of State permit
     programs.
 123.62  NPDES program revisions under the
     Clean Water Act of 1977.
   Authority: Clean Water Act, as amended
 by the Clean Water Act of 1977, 33 U.S.C.
 1251 et seq.

 Subpart A—General

 § 123.1  Purpose and scope.

   (a)(l) This Part specifies the
 requirements  of State  section 404
 (discharges of dredged or fill material)
 and NPDES (sections 318, 402, and 405)
 permit programs which must be met in
 order to obtain approval of the
Administrator under the Clean Water
Act.
  (2) This Part also specifies the process
for approving  and modifying State
  programs and for EPA objection to
  proposed State permits.
    (h) A State permit program which
  conforms to this Part shall be approved
  by the Administrator. A State permit
  program will not be approved by the
  Administrator under  section 402 of the
  Act unless it has authority to control the
  discharges specified in sections 318 and
  405(a) of the Act. Except as provided
  below, State section 402 permit
  programs approved by EPA prior to the
  date of promulgation of these
  regulations may implement sections 318
  and 405 of the Act. If a State lacks
  authority to implement these sections, it
  shall notify EPA and  revise its program
  in accordance with § 123.62. Permit
  programs under sections 318 and 405
  will not be approved  independent of a
  section 402 p'ermit program.
    (c) Upon approval (and upon
  subsequent notification from the State
  that it is administering the permit
  program for purposes of section 404), the
  Administrator or the Secretary (in the
  case of section 404 programs), shall
  suspend the issuance of permits for
  those activities subject to the approved
  program.
   (d) After program approval EPA or the
  Secretary (in the case of section 404
 programs) shall retain jurisdiction over
  any permits (including general permits)
 which have been issued by the Federal
 government unless arrangements have
 been made with the State in the
 Memorandum of Agreement for the
 State to assume responsibility for these
 permits. Retention of jurisdiction shall
 include the processing of any permit
 appeals, modification requests or
 variance requests; the conduct of
 inspections, and the receipt and review
 of self-monitoring reports. If any permit
 appeal, modification request or variance
 request is not finally resolved when the
 Federally issued permit expires, EPA or
 the Secretary (in the case of section 404
 programs) when agreed to by the State, •
 may continue to retain jurisdiction until
 the matter is resolved. Under section
 404(h)(5) of the Act States are entitled,
 after program approval, to administer
 and enforce general permits issued by
 the Secretary. However, if the State
 chooses not to administer and enforce
 these permits the Secretary retains
 jurisdiction until they expire.
   (e) Any State permit program
 approved by the Administrator shall at
 all times be conducted in accordance
 with the requirements  of this Part
 (including, where incorporated by
reference, provisions of Parts 122,124,
and 125).
  (f) These regulations are promulgated
under the authority of sections 304(i),-
 101(e) and 501(a) of the Act, and
 implement the requirements of those
 sections.
 [Comment: No partial program approvals
 may be granted. States must have authority
 to issue permits for all discharges into all
 waters of the United States within the State's
 jurisdiction. (In appropriate circumstances
 more than one State Agency can be approved
 to issue NPDES permits; see 1123.4[b}.) In
 addition. States (including States which have
 previously been approved) must implement
 the Clean Water Act of 1977, (Pub. L. 95-217),
 amendments to sections 313 (Federal
 facilities); 304(e) (best management
 practices); and 402(b)(8) (pretreatment) of the
 Act. Similarly, all the requirements of section
 404 must be satisfied prior to approval of a
 State section 404 program. The section 404
 and NPDES programs are independent; a
 State may obtain approval for one without
 the other.                 '
   Although these regulations require States
 to administer complete programs, EPA
 recognizes that, as a matter of Federal law, a
 State may lack authority to exercise
 jurisdiction over discharges from facilities on
 Indian" lands. The lack of such authority does
 not constitute grounds for refusal to authorize
 State administration of a program. However,
 to the extent that States have authority to
 exercise jurisdiction, they are required to do
 so.]

    (g) Nothing in this Part precludes  a
 State from:
    (1) Adopting or enforcing any
 standard, limitation, or other
 requirement which is more stringent
 than required under the Act; or '
   (2) Operating a permit program with a
 greater scope of coverage than required
 under the Act.
   (h) A State permit program approved
 under this Part is established and
 operated under State law.
 [Comment: EPA has a continuing statutory
 responsibility to assure that the operation of
 State programs in in accordance with Federal
 law. States must cooperate with EPA and
 assure that it has access to information which
 it requests in order to carry out this
 responsibility. See §§ 123.8 and 123.61(d).]

 §123.2 Definitions.
   (a) The definitions in Part 122 apply to
 this Part.
   (b) "Draft permit" means the permit
 prepared pursuant to §§ 124.31 or 124.32  '
 indicating the State Director's tentative
 determination to issue or modify a
 permit with specified conditions.
  (c) "Proposed permit"  means a state
 permit or permit modification prepared
 after the public comment period (and,
 where applicable, any public hearing)
 which is sent to EPA for review before
 final issuance by the State. In the case
 of section 404 programs,  proposed
permits are not required  unless
requested by EPA.

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              Federal Register / Vol. 44. No. Ill / Thursday, June 7. 1979 / Rules and Regulations       32919
 [Comment: Where EPA has waived permit
 review no proposed permit is required under
 these regulations. The State may issue a final
 permit after meeting the requirements of
 §§ 124.31,124.41,124.42 and 124.44.]
   (d) "Memorandum of Agreement"
 means the agreement entered into
 pursuant to § 123.7 between the
 Regional Administrator and the State '
 Director, governing the relationship,
 duties, and rights of the parties in
 operating a State NPDES program.
   (e) "State/EPA Agreement" means an
 agreement between the Regional
 Administrator and the State which
 integrates and coordinates EPA and
 State activities, responsibilities and
 programs under the Clean Water Act,
 the Resource Conservation and
 Recovery Act, and the Safe Drinking
 Water Act. The scope of the State/EPA
 Agreement may be expanded in the
 future to cover other environmental
 programs. Guidance for these
 agreements will be published from time
 to time in the Federal Register (see, e.g.,
 44 FR17294 March 21.1979).

 § 123.3  Elements of a program
 submission.
   (a) EPA will not initiate formal review
 of a proposed State program until it
 receives three copies of a complete
 program submission. If a submission
 made by a State is not complete, the
 statutory review period (i.e., the period
 of time allotted for EPA review under
 the  Act] shall not commence until the
 deficiency is corrected. The submission
 shall contain the following elements:
   (1) A letter from the Governor of the
 State requesting program approval;
   (2) An Attorney General's Statement
 as required by § 123.6;
  - (3) A Memorandum of Agreement as
 required by § 123.7;
   (4) A complete program description as
 required by § 123.4;
   (5) Copies of the permit application
 and permit forms which the State
 intends to employ in its program. Except
 for Discharge Monitoring Reports, forms
 used by States need not be identical to
 the forms used by EPA or the Secretary
 but should require the same basic
 information. The State need not provide
 copies of uniform national forms it
 intends to use but should note that it
 intends to use these:
 [Comment: The States are encouraged to use
 uniform national forms established by the
 Administrator in the case of NPDES, or the
 Secretary in the case of section 404 programs.
 States are required to use uniform national
 Discharge Monitoring Reports, see
 § 122.31(1). Regulations will be proposed in
the near future specifying information
required on State NPDES and section 404
application forms. Uniform national forms
 may be modified to substitute the State
 Agency's name, address, logo, and other
 similar information, as appropriate, in place
 ofEPA's.]
   (6) Copies of all applicable statutes
 and regulations, including those
 governing applicable State
 administrative procedures; and
   (7) In the case of section 404
 programs, a Memorandum of Agreement
 between the State and the Secretary as
 required by § 123.5.
   (b) If the  State's submission is
 materially changed during the statutory
 review period, the review period shall
 recommence.

 § 123.4 Program description.
   Any State desiring to administer a
 permit program shall submit to the
 Administrator a complete description of
 the program it proposes to establish and
 administer under State law or under an
 interstate compact The program
 description shall include:
   (a) A description of how the State
 intends to carry out its responsibilities
 under the Act.
   (b)(l) A description (including
 organization charts) of the organization
 and structure of the State  agency or
 agencies which will have responsibility
 for administering the permit program.
 NPDES authority may be shared by two
 or more State agencies but each agency
 must have Statewide jurisdiction over a.
 class of activities. Where more than one
 agency is responsible for issuing
 permits, each agency  must make a
 submission meeting the requirements of
 § 123.3 before formal EPA review will
 commence. In the case of section 404
 programs, the State must designate one
 agency to be responsible for issuing
 section 404 permits.
   (2) In the  case of section 404
 programs, the program description shall
 describe how the State section 404
 agency will interact with other State and
 local agencies.
 [Comment There is no restriction limiting the
 number and type of state agencies
 implementing the NPDES program. However,
 EPA favors the use of a single agency.]

  (c) A description of State procedures
 for the issuance of permits (including
 general permits if the State chooses to
 implement § 122.48), and any State
 appellate review procedures.
  (d) A description of the State's
priorities for issuance  of permits.
  (e) A description of  the State's
priorities for enforcement of permits,
including a complete description of the
State's compliance tracking and
enforcement programs. In addition, in
the case of section 404 programs the
State must explain how it will
coordinate its enforcement strategy with
that of the Corps of Engineers and EPA.
   (f) A description of the funding
arrangements and personnel
qualifications for the State's program,
including the following information:
   (1) A description of the agency staff
who will be engaged in carrying out the
State program, including the number and
occupations of the employees;
   (2) A list of the proposed or actual
costs of establishing and administering
the program, including the cost of the
personnel listed in paragraph (f)(l) of
this section, the cost of administrative
support, and the cost of technical
support;
   (3) A description of the funding,
including Federal grant money,
available to the State Director to meet
the costs listed in paragraph (f)(2) of this
section, including any restriction or
limitation upon this funding. Where the
State proposes to administer a program
of greater scope than is required by -
Federal law, the information provided
under this paragraph shall indicate the
resources dedicated to administering the
federally required portion of the
program; and
   (4) For section 404 programs, a
description of the categories and sizes of
dicharges of dredged or fill material to
which the State Director proposes to
issue permits. For each category, the
following information shall be given:
   (i) Estimated number within the
category which must file for a permit;
and
   (ii) Number and percent within each
category for which the State has already
issued a State permit or equivalent
document regulating the discharge.
   (g) In the case of section 404
programs, a description of the specific
best management practices
requirements proposed to be used to
satisfy the exemption provisions of
section 404(f)(l)(E) for construction or
maintenance of farm roads, forest roads,
or temporary roads for moving mining
equipment in accordance with
applicable regulations.
[Comment: Regulations governing these BMPs
will be proposed in the near future.]

§ 123.5  Memorandum of Agreement with
the Secretary for section 404 programs.
  In the case of section 404 programs
the State shall enter into a
Memorandum of Agreement with the
Secretary, which shall include:
  (a) An identification of those waters
in which the Secretary will suspend the
issuance of section 404 permits
(pursuant to section 404 (h)(2) and (g)(l))

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  32920
Federal Register  /  Vol. 44, No.  Ill / Thursday, June  7, 1979 / Rules and Regulations
  upon approval of the State program by
  the Administrator;
    (b) Where an agreement is reached,
  procedures for joint processing of
  permits for activities which require both
  a section 404 permit from the State and
  a section 9 or 10 permit from the .
  Secretary under the River and Harbor
  Act of 1899.
    (c) An identification of those
  individual and general permits, if any,
  issued by the Secretary, the  terms and
  conditions of which the State intends to
  administer and enforce (including
  inspection, monitoring, and surveillance
  responsibilities) upon receiving approval
  of its program, and a plan for
  transferring these permits to the State.
  [Comment: See Comment to § 123.7(b)(l).J

    (d) Procedures whereby the Secretary
  will transfer to'the State pending section
  404 permit applications and other
  relevant information, as specified in
  § 123.21.
    (e) Assurance that the State will not
  issue any section 404 permit  for a
  discharge which, in the judgment of the
  Secretary after consultation with the
 Secretary of the Department in which
  the Coast Guard is operating, would
  substantially impair anchorage or
  navigation.
   (f) Those "classes or categories" if.
  any, of proposed State permits  for which
  the Secretary waives the right to review.
   (g)  Other matters not inconsistent
 with this Part that the Secretary and the
 State deem appropriate.
 [Comment: States that regulate the discharge
 of dredged or fill material into those
 traditionally navigable waters which, by
 virtue of section 404(g)(l), will also require a
 section 404 permit from the Secretary after
 State program approval, are strongly
 encouraged to establish in this Memorandum
 of Agreement procedures for joint processing
 of permits, including joint public  notices and
 public hearings,]

 § 123.6 Attorney General's Statement >
   (a) Any State desiring to administer a
 permit program shall submit a statement
 from the State Attorney General (or the
 attorney for those State agencies which
 have independent legal counsel), that
 the laws of the State, or the interstate
 compact, as the case may be,  provide
 adequate authority to carry out the
 program described under § 123.4 and to
 meet the requirements of this Part. The
 Attorney  General's Statement shall
 include citations to specific statutes,
 administrative regulations, and,  where
 appropriate, judicial decisions to
demonstrate adequate legal authority.
[Comment: To qualify as "independent legal
counsel" the attorney signing the statement
                            required by this section must have full
                            authority to independently represent the
                            State in court on all matters pertaining to the
                            State program.]
                              (b) Where juridiction may be
                            exercised over activities on Indian
                            lands, the statement shall certify that
                            the State has such authority.
                              (c) In the case of section 404
                            programs, in addition to certifying the
                            authorities described in paragraph (a),
                            the Attorney General's Statement shall
                            also contain:
                              (l)An analysis of the State's-law
                            prohibiting the taking-of private
                            property without just compensation,
                            including any applicable judicial
                            interpretations, and assurance that this
                            will not adversely affect the successful
                            implementation of the State's regulation
                            of the discharge of dredged or fill
                            material;  and                      '
                              (2) A certification that the State has
                            authority to prohibit, deny, restrict, or
                            withdraw the specification of disposal
                            sites for the discharge of dredged or fill
                            material in any defined area of those
                            waters  for which the State receives
                            section 404 authority, including:
                              (i) Authority to apply the criteria
                            contained in 40 CFR Part 230;
                              (ii) Authority (similar to EPA's
                            authority under section 404(c)) to
                            prohibit the discharge of dredged or fill
                            material into areas where such
                            discharges would have an unacceptable
                            adverse effect on municipal water
                            supplies, shellfish beds and fishery
                            areas (including spawning and breeding
                           areas), wildlife or recreational areas.
                           [Comment The above authority to prohibit,
                           deny, restrict or withdraw the specification
                           of disposal sites should not be limited to
                           situations where an application for a 404
                           permit has been made, but should also
                           include the authority to designate areas
                           which will not be available for disposal site
                           specification, as described in 40 CFR
                           § 230.7(d). Nothing in subparagraph {c)(2)(ii)
                           is intended to limit the Administrator's
                           authority to take similar actions under
                           section 404(c) of the Act.]
                             (d) The authorities cited by the State
                           Attorney General or other legal officer
                           as authority to meet the requirements of
                           this Parfshall be in the form of lawfully
                           adopted State statutes or regulations
                           which shall be in full force and effect at
                           the time the statement is signed.
                           [Comment: This Part sets forth a number  of
                           procedural requirements. For example,
                           § 123.22 requires approved States to transmit
                           information to EPA and other agencies. Not
                           all such procedural requirements need be
                           embodied in State regulations. However,  the
                          State must show it has adequate authority to
                          carry out all the requirements of this Part,
                          and that no State statute or regulation is
                          inconsistent with those requirements.]
 § 123.7  Memorandum of Agreement with
 the regional administrator.
   (a) Before the Administrator approves
 any State NPDES or section 404
 program, the State Director and the
 Regional Administrator shall execute a
 Memorandum of Agreement (MOA),
 which shall be approved by the
 Administrator not later than the time of
 program approval. In addition to
 including  the requirements of paragraph
 (b), the Memorandum of Agreement may
 include other terms, conditions, or
 agreements relevant to the
 administration and enforcement of the
 State's regulatory program which are not
 inconsistent with this Part. No
 Memorandum of Agreement shall be
 approved which restricts EPA's
 statutory oversight responsibility. The
 Memorandum of Agreement shall be
 available  for inspection and comment
 before the public hearing required by
 §§123.51  or 123.52:
   (b) The  Memorandum of Agreement
 shall include the following:
   (1) Provisions implementing § 123.21
 for the prompt transfer of any pending
 permit applications or any other
 relevant information not already in the
 possession of the State Director. Where
 existing permits are transferred to the
 State for administration, the
 Memorandum of Agreement shall
 contain provisions specifying a
 procedure for transferring responsibility
 for these permits. Where existing
 permits are not transferred, § 123.1(d)
 applies.
 [Comment: In many instances States will lack
 the authority to directly administer permits
 issued by EPA. However, a procedure may be
 established to transfer responsibility for
 these permits. For example, a State could
 issue permits identical to the outstanding
 EPA permits which could be simultaneously
 revoked.]

   (2) Provisions implementing §§ 123.22
 and 123.23 specifying the basis and
 procedures for EPA  to receive permits
 and permit applications from the State
 for review, comment, and objection. In
 the case of a State section 404 program
 the State shall assure that it will
 transmit copies of all proposed permits
 to the Corps of Engineers, the U.S. Fish
 and Wildlife Service, and the National
 Marine Fisheries Service at the same
 time such permits are transmitted to
 EPA, subject to the right of any of these
 agencies to waive, in whole or in part,
 the right to receive such permits.
  (3){i) In the case of section 402
programs, provisions specifying the-
extent to which EPA review of State-
issued permits will be waived under
sections 402(d)(3), (e) or (f) of the Act.
While the Regional Administrator and

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              Federal Register  / Vol. 44, No.  Ill / Thursday,  June 7, 1979 / Rules  and Regulations       32921
  the State may agree to waive EPA
  review of certain "classes or categories"
  of permits, no waiver of review may be
  granted for the following discharges:
   (A) Discharges into the territorial sea
  or contiguous zone;
   (B) Discharges which may affect the
  waters of a State other than the one in
  which the discharge originates;
   (C) Proposed JNPDES general permits
  {see §  122.48);  i
   (D) Discharges from publicly owned
  treatment works with a daily average
  discharge exceeding 1 million gallons
  per day;
   (E) Discharges of uncontaminated
  cooling water with a daily average
  discharge exceeding 500 million gallons
  per day;
   (F) Discharges from any major
  discharger or from any discharger within
  any of the industrial categories listed in
  Appendix A  to Part 122;
   (G) Discharges from other sources
  with a daily average discharge
  exceeding 0.5 million gallons per day,
  except that EPA review of permits for
  discharges of non-process wastewater
  may be waived, regardless of flow, with
  the prior concurrence of the JSPA Deputy
  Assistant Administrator for Water
  Enforcement;
   (ii) In the case of section 404
  programs, provisions specifying the
  extent  to which EPA review of permit
  applications and State-issued permits
  will be waived under sections 404(k) or
  (1) of the Act While the Regional
 Administrator and the State, in
  consultation with the Corps of
 Engineers, the U.S. Fish and  Wildlife
 Service, and the National Marine
 Fisheries Service, may agree to waive
 Federal review of certain "classes or
 categories" of permits no waiver may be
 granted for the following activities:
   (A) Discharges which may affect the -
 waters of a State other than one from
 which the discharge originates;
   (B) Discharges incidental to activities
 described in section 404(f){2) of the Act
 (i.e., activities having as their purpose
 bringing an area of the waters of the
 United States into a new use, where the
 flow and circulation of waters may be
 impaired or their reach reduced);
   (C) Proposed section 404 general
 permits; or
   [D) Discharges known or suspected to
 contain toxic or hazardous pollutants hi
 significant amounts.
   (iii) Whenever a waiver is granted
 under paragraph (b)[3) (i) or (ii) of this
 section, a statement that the Regional
 Administrator retains the right to
 terminate the waiver, in whole or in
 part, at any time by sending the State
Director written notice of termination.
 The waiver shall not affect the duty of
 the State to supply EPA with copies of
 all permit applications, public notices
 and final permits.
   (4) Provisions, consistent with this
 Part, specifying the frequency and
 content of reports, documents and other
 information which the State must submit
 to EPA.
   (5) Provisions on the State's
 enforcement program including:
   (i) Provisions for compliance
 monitoring by the State and by EPA and
 for the coordination of these efforts.
 These provisions may specify the basis
 on which the Regional Administrator
 will select facilities or activities within
 the State for EPA inspection;
   (ii) Fiscal arrangements for effective
 litigation support for the State attorney
 general or other appropriate legal
 officers;
   (iii) The establishment of an
 enforcement management system
 implementing the  requirements of
 § 123.31.
   (6) Where appropriate, provisions for
 joint processing of permits by the State
 and EPA.
 [Comment: To promote efficiency and to
 avoid duplication and inconsistency, States
 are encouraged to enter into joint processing
 agreements with EPA for permit issuance.
 Likewise, States are encouraged to
 consolidate their own permit programs and
 activities.}

   (7) Provisions for modification of the
 Memorandum of Agreement with the
 approval of the Administrator.
   (c) The Memorandum of Agreement
 and the State/EPA Agreement should be
 consistent. If the State/EPA Agreement
 indicates that a change is needed in the
 Memorandum of Agreement, the
 Memorandum of Agreement may be
 amended in accordance with procedures
 set forth in this Part. The State/EPA
 Agreement may not override the
 Memorandum of Agreement.
 [Comment: Detailed program priorities and
 specific arrangements for EPA support of the
 State program will change and are therefore
 more appropriately negotiated in the context
 of annual agreements rather than in the
 MOA. Where this is the case, it may still be
 appropriate to specify in the MOA the basis
 for such  detailed agreements, for example, a
 provision in the MOA specifying that EPA
 will select facilities in the State for inspection
 annually as part of the State/EPA
 Agreement]

 § 123.8  Sharing of information.
  (a) Any informationobtained or used
pursuant to a State program shall be
available to EPA upon request without
restriction. If the information has been
submitted to the State under a claim of
 confidentiality, the State must pass that
 claim on to EPA. Any information
 obtained from a State and subject to a
 claim of confidentiality will be treated
 in accordance with the regulations in 40
 CFR Part 2. If EPA obtains information
 from a State  that is not claimed to be
 confidential, EPA may make that
 information available to the public
 without further notice.
   (b) EPA may furnish information to
 States in order to implement these
 regulations. In the case of information
 claimed as confidential by submitters.
 State access will be subject to the rules
 in 40 CFR Part 2, Subpart B.   '   „

 Subpart B—Requirements of State
 Programs

 § 123.11  Requirement to obtain a permit
   (a) State NPDES permit programs
 must have a  statute or regulation,
 enforceable in State courts, which
 prohibits the discharge of pollutants by
 any person except as authorized by a
 permit in effect under the State program
 or under section 402 of the Act, except
 that States need not regulate discharges
 exempt from the Federal permit
 requirement  under 1122.4.
   (b) State section 404 permit programs
 must have a  statute or regulation,
 enforceable in State courts, which
 prohibits the discharge of dredged or fill
 material into waters subject to the
 State's jurisdiction by any person except
 as authorized by a permit in effect under
 the State program or under section 404
 of the Act, except that States need .not
 regulate discharges exempt from the
 Federal permit requirement under
 section 404(r) or under the regulations
 implementing section 404(f)(l) of the
 Act.
 [Comment: § 123.1(g) provides that States are
 not preempted from adopting more stringent
 standards or regulating more activities than
 the Act requires. For example. States may
 choose to regulate certain minor categories of
 discharges of dredged or fill material which
 have been exempted from the Federal
 program by section 404(f)(l] of :-he Act.
 Likewise, States are not precluded from
 regulating activities which, by virtue of
 section 404(g)(l) of the Act, also require a 404
 permit from the Secretary. Although State
 permits in waters described in section
 404[g)(l) are not section 404 permits, section
 404(1) of the Act provides'that a State is not
 preempted from requiring permits for
 discharges into these waters. It should be
 noted that the regulations of the Corps of
 Engineers encourage joint Corps-State
 processing of permits, including joint public
notices and hearings (33 CFR § 320.4(j)). The
 Secretary attaches considerable weight to
State determinations (33 CFR § 320.4(j)(l)-
(7).]

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  32922
Federal Register / Vol.  44, No. Ill  /  Thursday, June 7, 1979 / Rules  and Regulations
  § 123.12  Operational requirements.
    (a) State section 402 programs must
  have legal authority to implement each
  of the following provisions and must be
  administered in confonnance with each
  of the following provisions:
    (1) § 122.5—(Signatories);
    (2) § 122.11(d)—(Permit issuance;
  effect of permit);
    (3) §122.12(a), (c) and (d)—(Duration
  and transferability of permits);
    (4) §122.13—(Prohibitions);
    [5] §122.14—(Conditions  applicable to
  all permits);
    (6) §122.15—(Applicable  limitations,
  standards, prohibitions and conditions);
    (7) §122.16—(Calculation and
  specification of effluent limitations and
  standards);
    (8) §122.17(a), (b), (d), (e) and (f)—
  (Schedules of compliance);
    (9) §122.20—(Monitoring);
    (10) §122.21—(Recording  of monitoring
  results);
    (11) §122.22—(Reporting of monitoring
  results);
    (12) § 122.23—(Noncompliance
  reporting);
    (13) § 122.31—(Modification,
  revocation and reissuance,  and
  termination);"
   (14) Part 122. Subpart E except
  §§ 122.40,122.47(aHc) and  122.49—
 (Special NPDES Programs)—provided,
 States are not required to implement the
 general permit program under §  122.48.
 If a State chooses to issue general
 permits such action  is subject to the
 following conditions:
   (i)  Any general permit shall be issued
 in  accordance with § 122.48;
   (ii) Prior to, or at the time  of proposal
 of any general permit, the State
 Attorney General (or other legal officer
 as  appropriate, see § 123.6) shall certify
 that the State has adequate  legal
 authority to issue and enforce general
 permits;
  (iii) EPA shall have 90 days to review
 any proposed general permit; and
  (iv) All general permits, except those
 for separate storm sewers, may be
 objected to on EPA's behalf  by the EPA
 Deputy Assistant Administrator  for
 Water Enforcement The State shall
 transmit a copy of any such proposed
general permit to the EPA Deputy
Assistant Administrator for Water
Enforcement at the same time the
proposed permit is transmitted to the
EPA Regional Office.
  (15) § 124.13—(Modification requests);
  (16) § 124.31(b)—(Draft permits);
  (17) § 124.32(a}—(Other draft permits);
  (18) § 124.33—(Statement of basis);
  (19) § 124.34—(Fact sheet);
  (20) § 124.41—(Public notices);
                             (21) § 124.42—(Public comments and
                           hearing);
                             (22) § 124.44—(Comments from
                           government agencies);
                             (23) § 124.51—(Time requirements for
                           variances), provided, State programs are
                           not required to provide for any or all of
                           the variances listed in § 124.51;
                             (24) § 124.52—(Decision on variances);
                             (25) § 124.63(a}—(Response to
                           comments);
                             (26) § 124.131(a)—(Public access);
                             (27) Subparts A, B, C, D, H, I, J, K and
                           L of Part 125—{NPDES Determinations);
                           and
                             (28) 40 CFR Parts 129,133 and
                           Subchapter N.
                             (b) States seeking approval  of section
                           404 programs should consult with EPA
                           on the operational aspects of their
                           programs.
                           [Continent- Regulations governing the
                           operational aspects of State section 404
                           programs will be proposed in the near future.]

                           § 123.13  Control of disposal of pollutants
                           Into wells.
                             State section 402 permit programs
                           must have authority to issue permits to
                           control the disposal of pollutants into
                           wells. Such authority shall enable the
                           State Director to protect the public
                           health and welfare and to prevent the
                           pollution of ground and surface waters
                           by prohibiting well discharges or by
                           permitting them with appropriate permit
                           terms and conditions.
                           [Comment: States which are authorized to
                           administer the NPDES permit program under
                           section 402 of the Act are encouraged to rely
                           on existing statutory authority, to the extent
                           possible, in developing a State underground
                           injection control (UIC) program under section
                           1422 of the Safe Drinking Water Act Section
                           402(b)(l)(D) of the Clean Water Act requires
                           that NPDES States have the authority "to
                           issue permits which . . . control the disposal
                           of pollutants into wells." In many instances,
                           therefore, NPDES States will have statutory
                           authority to regulate well disposal which
                           satisfies the requirements of the UIC
                          program. However, the Clean Water Act
                          excludes certain types of well injections from
                           the definition of "pollutant" If the  State's
                          statutory authority contains a similar
                          exclusion it may need to be modified to
                          qualify for UIC program approval]

                          § 123.14  Inspections, monitoring, entry,
                          and reporting.
                            Any State permit program shall
                          provide adequate authority to inspect,
                          monitor, enter, and require reports to at
                          least the same extent as required in
                          section 308 of the Act
 Subpart C—Transfer of Information,
 Objections To Permits

 §123.21  Receipt and use of Federal
 information.
   Upon receiving EPA approval, the
 State agency administering a permit
 program shall be sent any relevant -
 information which was collected by EPA
 or, where appropriate, the Secretary.
 The Memoranda of Agreement under
 §§ 123.5 and 123.7 shall provide for the
 following, in such manner as the State
 Director and the Regional Administrator
 or, where appropriate, the Secretary,
 shall agree:
   (a) Prompt transmission to the State
 Director from the Regional
 Administrator or the Secretary of copies
 of any pending permit applications or
 any other relevant information collected
 before the approval of the State permit
 program and not already in the
 possession of the State Director. Where
 existing permits are transferred to the
 State Director (e.g., for purposes of
 compliance monitoring, enforcement, or
 reissuance), relevant information
 includes support files for permit
 issuance, compliance reports, and
 records of enforcement actions.
   (b) Procedures to ensure that the State
 Director will not issue a permit on the
 basis of any application received from
 the Regional Administrator or the
 Secretary which the Regional
 Administrator or the Secretary identifies
 as incomplete or otherwise deficient
 until the State Director receives
 information sufficient to correct the
 deficiency.    •              •-.     '

 § 123.22 Transmission of information to
 EPA.
   (a) Each State agency administering a
 permit program shall transmit to the
 Regional Administrator (and in the case
 of section 404 programs, to the Corps of
 Engineers, the U.S. Fish and Wildlife
 Service, and the National Marine
 Fisheries Service), copies of permit
 program forms and any  other relevant
 information to the extent and in the
 manner agreed to by the Director and
 the Regional Administrator in the
 Memorandum of Agreement and not
 inconsistent with this Part. EPA review
 of proposed NPDES general permits is
 governed by § 123.12(a)(14). The
 Memorandum of Agreement shall
 provide for the following:
  (1) Prompt transmission to the
 Regional Administrator of a copy of any
 complete permit applications received
 by the State Director.
  (2) Prompt transmission to the
Regional Administrator and any
affected State of notice of every action

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              Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979  / Rules  and  Regulations       32923
 taken by the State agency related to the
 consideration of any permit application,
 including a copy of each proposed or
 draft permit and any terms, conditions,
 requirements, or documents which are
 related to the proposed or draft permit
 or which affect the authorization of the
 proposed permit. In the case of section
 404 programs, the above shall be
 transmitted to the Corps of Engineers,
 the U.S. Fish arid Wildlife Service, and
 the National Marine Fisheries Service at
 the same time they are transmitted to
 EPA. The State program shall provide:
   (i) A period of time (up to 90 days}.in
 which the Regional Administrator, or
 where appropriate, the EPA Deputy
 Assistant Administrator for Water
 Enforcement (see § 123.12(a](14J), may
 comment upon, object to, or make
 recommendations with respect to the
 proposed permit and, in the case of
 section 404 programs, on the permit
 application. A copy of any comment,
 objection, or recommendation shall be
 sent to the permit applicant by EPA. In
 the case of NPDES general permits, EPA
 shall have 90 days to comment upon,
 object to, or make recommendations
 with respect to  the proposed permit.
   (ii) In the case of a draft or proposed
 permit which includes a tentative
 determination to approve a variance
 request which may only be authorized
 by EPA (see § 124.52(b)}. formal EPA
 review of the permit shall not begin
 under this section and § 123.23 until EPA
 rules on the variance request.
 [Comment: Normally EPA review time is
 substantially less than 90 days. However,
 EPA reserves the  right to take a full 90 days
 to supply specific grounds for objection
 where a general objection is filed withjn the
 review period of the Memorandum of
 Agreement In making comments, objections
 or recommendations on proposed State
 section 404 permits, the Regional
 Administrator will consider any timely
 written comments submitted to him by the
 Secretary, the U.S. Fish and Wildlife Service
 or the National Marine Fisheries Service.]

  (3) Transmission to the Regional
 Administrator of a copy of every issued
 permit following issuance, along with
 any and all terms, conditions,
 requirements, or documents which are
 related to or affect the authorization of
 the permit.
  (b) In the case of NPDES programs,
 transmission by the State Director to
 EPA of:
  (1) Notices from publicly owned
 treatment works under § 122.15(d) and
 40 CFR Part 403, upon request of the
 Regional Administrator,
  (2) A copy of any significant
comments presented in writing pursuant
to the public notice and the response to
 comments prepared pursuant to
 § 124.63(a) if:
   (i) The Regional Administrator
 requests this information; or
   (ii) The proposed permit contains
 requirements significantly different from
 those contained in the tentative
 determination and draft permit; or
   (iii) Significant comments adverse to
 the tentative determination  and draft
 permit have been presented at the
 hearing or in writing pursuant to the
 public notice; and
   (3) A quarterly noncompHance report
 in accordance with § 122.23.
   (c) Within the time period agreed
 upon in the Memorandum of Agreement
 (or 90 days in the case of proposed
 NPDES general permits), the Regional
 Administrator (or, where appropriate,
 the EPA Deputy Assistant Administrator
 for Water Enforcement), pursuant to the
 right to object provided in the Act and
 § 123.23, may comment upon, object to,
 or make recommendations with respect
 to any proposed permit. In the case of
 section 404 programs, the Regional
 Administrator shall notify the State
 Director of his or her intent  to comment
 upon or object to a proposed permit
 within 30 days of receipt.
   (d) The Regional Administrator may,
 by agreement with the State Director in
 the Memorandum of Agreement (see
 § 123.7(b)(3J), waive the right to review,
 object to, or comment upon  permit
 applications and proposed permits for
 classes, types, or sizes of discharges
 within any category of point sources,
 including the right to  receive information
 under paragraphs (a)(2) and (b)(2) of this
 section.
  (e) Any State section 404 permit
 program shall provide for transmission
 by the State Director to the Regional
 Administrator of the quarterly and
 annual reports on the permit program, in
 accordance with applicable  regulations.
 [Comment: Regulations governing reporting
 requirements for State section 404 programs
 will be proposed in the near future.)

  (f) Any State permit program  shall
 keep such records and submit to the
 Administrator such information as the
 Administrator may reasonably require
 to ascertain whether the State program
 complies with the requirements of the
 Act or of this Part.

 § 123.23  Objections to proposed NPDES
 permits.
  (a)(l) Within the period of time
provided under the Memorandum of
Agreement, the Regional Administrator
shall notify the State Director of any
objection to issuance of a proposed
permit {except as provided in paragraph
 (a)(2) of this section for proposed
 general permits). This notification shall
 set forth in writing the general nature of
 the objection.
   (2) Within 90 days following receipt of
 the proposed permit which has been
 objected to under subparagraph  (a)(l) of
 this section, or in the case of general
 permits, within 90 days after the receipt
 of the proposed  general permit, the
 Regional Administrator, or, in the case
 of general permits other than for'
 separate storm sewers, the EPA  Deputy
 Assistant Administrator for Water
 Enforcement shall set forth in writing
 and transmit to  the State Director:
   (i) A statement of the reasons  for the
 objection (including the section of the
 Act or regulations that support the
 objection), and
   (ii) The actions that must be taken by
 the State Director in order to eliminate
 the objection (including the effluent
 limitations and conditions which the
 permit would include if it were issued
 by EPA).
 [Comment: This paragraph, in effect, modifies
 any existing agreement between EPA and the
 State which provides'less than 90 days for
 EPA to supply the specific grounds for an
 objection. However, where an agreement
 provides for an EPA review period of less
 than 90 days EPA must file a general
 objection, in accordance with paragraph
 (a)(l) within the time specified in the
 agreement. This general objection will be
 followed by a specific objection within the
 90-day statutory period. This modification to
 the MOA's is necessary for EPA review of
 general permits and since the Clean Water
 Act of 1977 now requires EPA to provide   *
 detailed information concerning acceptable
 permit terms and conditions. To avoid
 possible confusion, MOA's should be
 changed to reflect this.)
   (b) The Regional Administrator may
 object to the issuance of a proposed
 permit as being  outside the guidelines
 and requirements of the Act. This
 objection must be based upon one or
 more of the following grounds:
   (1) The permit fails to apply, or to
 ensure compliance with, any applicable
 requirement of this Part;
 [Conwne/jt-Under the provisions of this
 section, a permit not requiring the
 achievement of required effluent limitations
 by applicable statutory deadlines shall be
 subject to objection by the Regional
 Administrator.}
   (2) In the case of any proposed permit
 for which notification is required under
 section 402(b)(5) of the Act, the written
recommendations of an affected State
have not been accepted by the
permitting State  and the Regional
Administrator finds the reasons for
rejecting the recommendations are
inadequate;

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  32924       Federal Register / Vol. 44, No.  Ill / Thursday, June 7, 1979 / Rules and Regulations
    (3) The procedures followed in
  connection with formulation of the
  proposed permit failed in a material
  respect to comply with procedures
  required by the Act, or by regulations
  thereunder or by the Memorandum  of
  Agreement;
    (4) Any finding made by the State
  Director in connection with the
  proposed permit misinterprets the Act or
  any guidelines or regulations under the
  Act, or misapplies them to the facts;
    (5) Any provisions of the proposed
  permit relating to the maintenance of
  records, reporting, monitoring, sampling,
  or the provision of any other information
  by the permittee are inadequate, in  the
  judgment of the Regional Administrator,
  to assure compliance with permit
  conditions, including effluent standards
  and limitations required by the Act, by
  the guidelines and regulations issued
  under the Act, or by the proposed
  permit;
    (6) In the case of any proposed permit
  with respect to which applicable
  standards and limitations under sections
  301, 304, 306, 307, 318, 403 and 405 of the
  Act have not yet been promulgated by
  the Agency, the proposed permit, in  the
  judgment of the Regional Administrator,
  fails to carry out the provisions of the
  Act or of any regulations issued under
  the Act;
  [Comment The provisions of this paragraph
  apply to determinations made pursuant to
  § 125.3(c)(2) in the absence of applicable
  guidelines and to best management practices
  under section 304(e) of the Act, which must
 •be incorporated into permits as requirements
  under sections 301, 306, 307, 318, 403, or 405
  as the case may be.]
   (7) Issuance of the proposed permit
  would in any other respect be outside
  the requirements of the Act, or^
 regulations issued under the Act.
   (c) Prior to notifying the State Director
 of an objection based upon any of the
 grounds set forth in paragraph (b) of this
 section, the Regional Administrator:
   (1) Shall consider all data transmitted
 pursuant to § 123.22;
   (2) May, if the information provided is
 inadequate to determine whether the
 proposed permit meets the guidelines
 and requirements of the Act, request  the
 State Director to transmit to the   «
 Regional Administrator the complete
 record of the permit proceedings before
 the State, or any portions of the record
 that the Regional Administrator
 determines are necessary for review. If
 this request is made within 30 days of
receipt of the State submittal under
 § 123.22, it shall constitute an interim
objection to the issuance of the permit,
and the full period of time specified in
the Memorandum of Agreement for the
  Regional Administrator's review shall
  recommence when the Regional
  Administrator has received such record
  or portions; and
    (3) May, in his or her discretion and to
  the extent feasible within the period of
  time available under the Memorandum
  of Agreement, afford to every interested
  person an opportunity to comment on
  the basis for an objection.
    (d) Within 90 days of receipt by the
  State Director of an objection by the
  Regional Administrator, the State or any
  interested person may request that a
  public hearing be held by the Regional
  Administrator on the objection.
 -Following a request, the Regional
  Administrator may provide public notice
  and hold a public hearing in accordance
  with the procedures of §§ 124.41 and
  124.42 if warranted by significant public
  interest. A hearing shall be held
  whenever requested by the State which
 • proposed the permit.
    (e) A public hearing held under
  paragraph (d)  shall be conducted by an
  EPA panel in an orderly and expeditious
  manner.  Members of this panel shall
  include the Regional Administrator, the
  Assistant Administrator for
  Enforcement, the General Counsel, or
  their respective representatives.
    (f) At the conclusion of the public
  hearing the Regional Administrator shall
 reaffirm the original objection, modify
  the terms of the objection, or withdraw
 the objection, and shall notify the State
 of this decision.
   (g) Where the Regional Administrator
 has objected to a proposed permit under
 this section, he or she may issue the
 permit in accordance with Parts 121,122
 and 124 and any other guidelines and
 requirements of the Act in the following
 circumstances:
   (1) If no public hearing is held under
 paragraph (d) and the State does not
 resubmit  a permit revised to meet the
 Regional  Administrator's objection
 within 90 days of receipt of the
 objection; or
   (2) If a public hearing is held under
 paragraph (d) and the State does not
 resubmit a permit revised to meet the
 Regional Administrator's objection or
 modified objection within 30 days of the
 date of the Regional Administrator's '
 notification under paragraph (f) of this
 section.
 [Comment- Where the time set out in this
 paragraph expires without acceptable State
 action, exclusive authority to issue the permit
 passes to EPA.]

  (h) In the case of proposed general
 permits for discharges other than from
 separate storm  sewers substitute "EPA
Deputy Assistant Administrator for
 Water Enforcement" for "Regional
 Administrator" whenever it appears in
 paragraphs [b), (c), (d), (f) and (g).

 § 123.24  Prohibitions.
   Any State permit program shall
 provide that no permit shall be issued  -
 when EPA has objected in writing under
 section 402(d) or section 404(j) of the
 Act, whichever is applicable, and in the
 case of section 404 programs, in any
 defined area as to which the
 administrator has made a determination
 to prohibit or withdraw specification for
 disposal under section 404{c) of the act.
 In addition, no permit shall be issued if
 objected to by the Secretary pursuant to
 sections 402(b)(6) or 404(h)(l)(F) of the
 Act.

 Subpart D—Enforcement Provisions

 § 123.31  Compliance evaluation programs.
   (a) Any State program shall have
 procedures for receipt, evaluation, and
 investigation for possible enforcement
 action of all notices and reports required
 of permittees (or failure to submit such
 notices and reports).      ^
   (b) Any State section 402 permit
 program shall have procedures and
 ability for:
   (1) The maintenance of a
 comprehensive inventory of all sources
 covered by NPDES permits and a
 forecast of all reporting requirements to
 the agency. Any compilation, index or
 inventory of such sources shall be made
 available to the Regional Administrator
 upon request;
   (2) Initial screening (i.e., pre-
 enforcement evaluation] of all permit or
 grant-related compliance information to
 identify violations and to establish the
 priority for further substantive technical
 evaluation;
   (3) Following the initial screening, a
 substantive technical evaluation, where
 warranted, of all permit or grant-related
 compliance information to determine the
 appropriate agency response;
   (4) The maintenance of a management
 information system which supports and
 guides the activities of this paragraph
 and paragraph (c).
   (c) Any State program shall have
 inspection and surveillance procedures
 to determine, independent of
 information supplied by dischargers,
 compliance or noncompliance with  .
 applicable program requirements,
 standards and limitations, filing
 requirements and permit terms or
 conditions, including the following:
  (1) A program which is capable of
 surveying State waters to identify
dischargers subject to regulation who
have failed to apply for permits;

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              Federal Register / Vol. 44, No. Ill / Thursday,  June 7, 1979  / Rules and Regulations       32925
   (2) A program for periodic inspections
 of the activities subject to regulation.
 The facilities of major dischargers (for a
 discussion of "major discharger", see
 Comment to § 122.23) shall be inspected
 at least annually. These inspections
 shall:         j
   (i) Determine compliance or
 noncompliance with  issued permit terms
 and conditions and other program
 requirements, and, in particular,
 compliance or noncompliance with
 specific standards and limitations,
 operation and maintenance
 requirements, and schedules of
 compliance;
   (ii) Verify the accuracy of information
 submitted by permittees in reporting
 forms and other forms supplying
 monitoring data;                  •>
   (iii) Verify the adequacy of sampling,
 monitoring and other methods used by
 permittees to develop that information;
 and
   (3) A program for investigating
 evidence of violations of applicable
 program requirements, standards and
 limitations, filing requirements, or
 permit terms and conditions indicated
 by reports and notifications evaluated
 under paragraph (b) or by the survey,
 inspection, and surveillance activities in
 paragraphs (c) [I] and (2] of this section.
 This program shall include procedures
 for receiving and ensuring proper
 consideration of evidence submitted by
 the public about violations. Public effort
 in reporting violations shall be
 encouraged, and the State Director shall
 make available information on reporting
 procedures.
   (d) Inspections shall be conducted,
 samples shall be taken and other
 information shall be gathered in a
 manner that will produce evidence
 admissible in an enforcement
 proceeding or in court.

 §123.32 Enforcement
   Any State agency administering a
 permit program shall  have the following
 powers and procedures and recourse to
 criminal and civil remedies:
   (a) In the case of Section 402
 programs, procedures which enable the
 State Director immediately and
 effectively to halt or eliminate any
 imminent or substantial endangennent
 to the public health or welfare resulting
 from the discharge of pollutants:
  (1) By an order or suit in the
 appropriate State court to immediately
 restrain any person causing or
 contributing to the discharge of -
 pollutants; or
  (2) By a procedure for immediate
 telephone notice to the Regional
Administrator of any actual or
 threatened endangerment to the public
 health or welfare resulting from the
 discharge of pollutants.
   (b) In the case of section 404
 programs, procedures which enable the
 State Director immediately and
 effectively to halt or eliminate any
 unauthorized discharges of dredged or
 fill material, including the authority to
 do each of the following:
   (i) Issue a cease and desist or an
 interim protective order to any person
 responsible for or involved in an
 unauthorized discharge;
   (2) Sue in the appropriate State court
 to immediately restrain any person
 responsible for. or involved in an
 unauthorized discharge; and
   (3) Immediately notify the Regional
 Administrator by telephone of any
 actual or threatened endangerment to
 the public health or welfare resulting
 from any discharge of dredged or Fill
 material.
   (c) Procedures which enable the State
 Director to sue in courts of competent
 jurisdiction to enjoin any threatened or
 continuing violation of any permit term
 or condition without the necessity of a
 prior revocation of the permit.
   (d] Procedures which enable the State
 Director to enter any premises in which
 a source of a discharge,  including a
 treatment facility, is located or in which
 records must be kept under terms or
 conditions of a permit, and otherwise to
 investigate, inspect or monitor any
 suspected violations of applicable
 standards and limitations or of permit
 terms or conditions.
   (e) Procedures which enable the State
 Director to require compliance with and
 to assess or to sue to recover in court
 civil penalties, for the violation by any
 person of the following:
   (1) Any applicable standards and
 limitations;
   (2) Any permit term or condition;
.   (3) Any filing requirements;
   (4) Any duty to allow or carry out
 inspection, entry, or monitoring
 activities;
   (5) any order issued by the State
 Director under paragraph (a) or (b) of
 this section; or
   (6) Any rules, regulations, or orders
 issued  by the State Director.
   (f) Procedures which enable the State
 Director to seek criminal fines for the
 willful  or negligent violation by any
 person of any of the following:
   (1) Any applicable standard or
 limitations;
   (2) Any permit term  or condition; or
   (3) Any filing requirements.
   (g) Procedures which enable the State
Director to seek criminal fines against
any person who knowingly makes any
false statement, representation, or
certification in any permit program form
or any notice or report required by the
terms and conditions of any issued
permit or who knowingly renders
inaccurate any monitoring device or
method required to be maintained by the
State Director.
[Comment: It is understood that in many
States the State Director is represented in
State courts by the State Attorney General or
other appropriate legal officer. While the
State Director need not appear in court
actions under this section,  he or she should
have the power to request  that such actions
be brought.]

  (h)(l) The maximum civil penalties
and criminal fines that can be sought by
the State Director under paragraphs (e),
(f) and (g) of this section shall be
comparable to similar maximum
amounts that can be sought by the
Administrator under section 309 of the
Act. The maximum amounts of these
civil penalties or criminal fines shall be
applicable.to each violation specified in
paragraphs (e), (f) and (g) of this section,
or, if the violation is continuous, to each
day the discharge occurs.
  (2) The burden of proof and degree of
knowledge or intent required under
State law for establishing violations
under paragraphs (e), (f) and (g) shall be
no greater than the burden of proof or
degree of knowledge or intent EPA must
show when it brings an action under
section 309 of the Act.
[Comment: For example, this requirement is
not met if the State law includes any mental
state as an element of proof for civil
violations.]

  (i) Any civil penalty assessed, sought,
or agreed upon by the State Director
under paragraph (e] of this section shall
be appropriate to the violation. A civil
penalty agreed upon by the State
Director in settlement of administrative
or judicial  litigation may be adjusted by
a percentage which represents the
likelihood of success of establishing the
underlying violation or violations in
such litigation. In the event that such a
civil penalty would be so severely
disproportionate to the resources of the
owner or operator of the violating
facility that its imposition, together with
the costs of expeditious compliance,
would jeopardize its continuance in
business, the payment of the penalty
may be deferred or the penalty may be
forgiven  in whole or in part as
circumstances may warrant. For
violations resulting from a source's
failure to bring itself into initial
compliance with a statutory or final
permit deadline, "appropriate to the

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  32926      Federal Register / Vol.  44, No. Ill / Thursday, June 7, 1979 /Rules  and Regulations
  violation" as nsed in this paragraph,   ~
  means a penalty which is equal to:
    (1) An amount appropriate to redress
  the harm or risk of harm to public health
  or the environment; plus
    (2) An amount appropriate to remove
  the economic benefit gained or to be
  gained from delayed compliance; plus
    (3) An amount appropriate as a
  penalty for the violator's degree of
  recalcitrance, defiance, or indifference
  to requirements of the law, plus
    (4) An amount appropriate to recover
  unusual or extraordinary enforcement
  costs thrust upon the public; minus
    (5) An amount, if any, appropriate to
  reflect any part of the noncompliance
  attributable to the Government itself;
  minus
    (6) An amount appropriate to reflect
  any part of the noncompliance caused
  by factors completely beyond the
  violator's control (e.g., floods, fires, etc.)
  [Comment: The following enforcement
  options, while not mandatory, are highly
  recommended:
    (i) Procedures for assessment by the
  State Director or by a State court of the
  costs of an investigation, inspection, or
  monitoring survey which led to the
  establishment of the violation;
    (ii) Procedures which enable the State
  Director to assess or to sue any person
  responsible for an unauthorized
  discharge for any expenses incurred by
  the State in removing, correcting, or
  terminating any adverse effects upon
  water quality resulting from the
  unauthorized discharge, whether or not
  accidental; and
   (iii) Procedures which enable the State
 Director to sue for compensation for any
 loss or destruction of wildlife, fish, or
 aquatic life, and for any other actual
 damages caused by an unauthorized
 discharge  either on behalf of the State,
 on behalf of any residents of the State
 who are directly aggrieved by the
 unauthorized discharge, or both.]

 Subpart E—Planning and Conflict of
 Interest Requirements.

 § 123.41  Continuing planning process.
  Any State permit program shall have
 an  approved continuing planning
 process under 40 CFR Part 35, Subpart G
 and shall assure that its approved
 planning process is at all times
 consistent  with the Act.

 § 123.42 Agency board membership.
  (a) Each  State permit program shall
 ensure that any board or body which
 approves all or portions of permits shall
not include as a member any person
who receives, or has during-the previous
two years received, a significant portion
 of income directly or indirectly from
 permit holders or applicants for a
 permit.
   (b) For the purposes of this section:
   (1) "Board or body" includes any
 individuaVincluding the Director, who
 has or shares authority to approve all or
 portions of permits in the first instance,
 as modified or reissued, or on appeal.
   (2) "Significant portion of income"
 shall mean 10 percent of gross personal
 income for a calendar year, except that
 it shall mean 50 percent of gross
 personal income for a calendar year if
 the recipient is over 60 years of age and
 is receiving that portion under
 retirement, pension, or similar
 arrangement.
   (3) "Permit holders or applicants for a
 permit" shall not include any
 department or agency of a State
 government, such as a Department of
 Parks or a Department of Fish and
 Wildlife.
   (4) "Income" includes retirement
 benefits, consultant fees, and stock
 dividends.
   (c) for the purposes of this section,
 income is not received "directly or
 indirectly from permit holders or
 applicants for a permit" where it is
 derived from mutual fund payments, or
 from other diversified investments over
 which the recipient does not know the
 identity of the primary sources of
 income.

 Subpart F—Procedures for Approval
 of State Permit Programs

 §  12331  Section 402 approval process.
   (a) After determining  that a State
 program submission is complete, EPA
 shall publish notice of the State's
 application in the Federal Register, in
 enough of the largest newspapers hi the
 State to attract statewide attention, and
 mail notice to persons known to be
 interested in such matters, including all
 people on EPA mailing lists under
 §  124.41[b) and appropriate State
 mailing lists and all permit holders and
 applicants within the State. This notice
 shall:
   (1) Provide 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 no less than 30 days
 after notice is published  in the Federal
 Register;
  (3] Indicate the cost of obtaining a
 copy of the State's submission;
  (4) Indicate where and when the
State's submission may be reviewed by
the public;
    (5) Indicate whom an interested
  member of the public should contact
  with any questions; and
    (6) Briefly outline the fundamental
,  aspects of the State's proposed program.
  and the process for EPA review and  -
  decision.
    (b} Within 90 days of the receipt of a
  complete program submission under"
  I 123.3 the Administrator shall approve
  or disapprove the program based on the
  requirements of this Part and of the Act
  and taking into consideration all
  comments received. A responsiveness
  summary shall be prepared by the
  Regional Office which identifies the
  public participation activities
  conducted, describes the matters
  presented to the public, summarizes
  significant comments received and
  explains the Agency's response to these
  comments.
    (c) If the Administrator approves the
  State's section 402 program he or she
  shall notify the State and publish notice
  hi the Federal Register. The Regional
  Administrator shall suspend the
  issuance of permits by EPA as of the
  date of program approval.
    (d) If the Administrator disapproves
  the  State program he or she shall notify
  the  State of the reasons for the
  disapproval and of any revisions or .
  modifications to the State program
  which are necessary to obtain approval.

  § 123.52  Section 404 approval process.
    (a) Within 10 day of receipt of a State
  section 404 program submission under
  § 123.3 of this Part, the Administrator
  shall provide copies of the State's
  submission to the Corps of Engineers,
  the U.S. Fish and Wildlife Service, and
  the National Marine Fisheries Service.
    (b) After determining that a State
  program submission is complete, EPA
  shall publish notice of a State's
. application in the Federal Register, in
  enough of the largest newspapers hi the
  State to attract Statewide attention, and
  mail notice to persons known to be
  interested in such matters, including all
  people on appropriate State, EPA, and
  Corps of Engineers mailing lists and all
  permit holders and applicants within the
  State. This notice shall:
   (1) Provide 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 no less than 30 days
 after notice is published in the Federal
 Register;
   (3) Indicate the cost of obtaining a
 copy of the State's submission;

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              Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979  /  Rules and Regulations
                                                                        32927
    (4) Indicate where and when the
 State's submission may be reviewed by
 the public;
    (5) Indicate whom an interested
 member of the public should contact
 with any questions; and
    (6) Briefly outline: the fundamental
 aspects of the State's proposed program,
 and the process for EPA review and
 decision.                      ,
    (c) Within 120 days of the receipt of a
 complete program submission under
 § 123.3 the Administrator shall approve
 or disapprove the program based on the
 requirements of this Part and of the Act
, and taking into consideration all
 comments received. A responsiveness
 summary shall be prepared by the
 Regional Office which identifies the
 public participation activities
 conducted, describes the matters
 presented to the public, summarizes
 significant comments received and
 explains the Agency's response to these
 comments.
   (d) If the Administrator approves the
 State's section 404 program he or she
 shall notify the  State and the Secretary
 and publish notice in the Federal
 Register. The Secretary shall suspend
 the issuance of section 404 permits by
 the Corps of engineers within the State,
 except for those waters specified in
 section 404(g)(l) of the Act as identified
 in the Memorandum of Agreement
 between the State and the Secretary
 (see § 123.5(a)).
   (e) If the Administrator disapproves
 the State program he or she shall notify
 the State of the reasons for the
 disapproval and of any revisions or
 modifications to the State program
 which are necessary to obtain approval.

 Subpart G—Revisions to Approved
 Programs

 § 123.61  Procedure for revision of State
 permit programs.
   (a) Program revision may be initiated
 at the request of either EPA or the State.
 Program revision may be necessary
 when the controlling Federal or State
 statutory or regulatory authority is
 modified or supplemented. The State
 Director shall keep EPA fully informed
 of any proposed modifications to its
 basic statutory or regulatory authority or
 its forms, procedures or priorities.
  (b) Revision of a State program shall
be accomplished as follows:
  (1) The State shall submit a modified
program description. Attorney General's
Statement, Memorandum of Agreement,
or other documents as are necessary
under the circumstances.
  (2) If EPA determines that the
proposed program modification(s) is
 substantial, the Agency shall issue
 public notice and provide at least 30
 days for the public to comment The
 public notice shall be mailed to
 interested persons and shall be
 published in enough of the largest
 newspapers  in the State to attract
 statewide attention. The public notice
 shall summarize  the proposed
 modifications and provide for the
 opportunity to request a public hearing.
 A hearing will be held if there is
 significant public interest.
 •  (3) The program modification shall
 become effective upon the approval of
 the Administrator. Notice of approval of
 substantial program modifications shall
 be published in the Federal Register.
 Non-substantial program modifications
 may be approved by a letter from the
 Agency.
   (c) The State Director shall notify EPA
 whenever the State proposes to transfer
 all or part of any program from the
 approved State agency to any other
 agency, and  shall identify any new
 division of responsibilities among the
 agencies involved. The new agency is
 not authorized to administer  the
 program until approved by the
 Administrator. Organizational charts
 required under §  123.4(b) shall be
 revised and resubmitted.
   (d) If the Administrator has reason to
 believe that circumstances may have
 changed with respect to a State
 program, he or she may request, and the
 State shall provide a supplemental
 Attorney General's Statement, program
 description, other document or
 information as necessary.

 § 123.62 NPDES program revisions under
 the Clean Water Act of 1977.
   (a) Approved State NPDES permit
 programs shall be revised, if necessary:
   (1) To include authority to require
 permits for the discharges specified in
 sections 318 and 405(a) of the Act (see
 § 123.1[b)J.
   (2) To ensure that permits comply
 with the requirements of section 304(e)
 of the Act and Part 125, Subpart K (best
 management practices].
  (3) To comply with the amendment to
 section 4Q2[b)(8) of the Act, and with 40
 CFR Part 403 (pretreatment programs).
  (4) To authorize State issuance,
 monitoring (including reporting, entry,
 and inspection), and enforcement of
 permits to Federal facilities to the same
 extent as any person.
 [Comment: Facilities on Indian lands are not
necessarily Federal  facilities.]

  (b) All new programs must comply
with these regulations upon approval.
Any approved State section 402 permit
program which requires modification to
conform to this Part shall be so modified
within one year of the date of
promulgation of these regulations,
unless a State must amend or enact a
statute in order to make the required
modification in which case such
modification shall take place within two
years, except that revision of State
programs to implement the requirements
of 40 CFR Part 403 (pretreatment) shall
be accomplished as provided in 40 CFR
§ 403.10. In addition, approved States
shall submit, within six months, copies
of their permit forms for EPA review and
approval.
[Comment: EPA anticipates that many
approved States may need to revise their
permit forms to comply with these
regulations, particularly 1122.14.]

   (c) Failure of an approved State to
modify its permit program under this
section constitutes grounds for
withdrawal of program approval.
   6. Part 124 is revised to read as
follows:

PART 124—PROCEDURES FOR
DECISIONMAKING REGARDING
NATIONAL POLLUTANT DISCHARGE
ELIMINATION SYSTEM PERMITS

Subpart A—Applicability

Sec.
124.1  Purpose and scope.
124.2  Definitions.

Subpart B—The Application Process
124.11  Application for a permit.
124.12  Special provisions for applications
    from new sources.
124.13  Requests for modification, revocation
    and reissuance, or termination.
124.14  Permits required on a use-by-case
    basis.
124.15  Decisions on permit denials and
    terminations.

Subpart C—State Certification
124.21  Circulation of applications and draft
    permits to certifying States.
124.22  State certification.
124.23  Effect of State certification.
124.24  Special provisions for State
    certification and concurrence in
    applications for section 301(h)
    modifications.

Subpart D—Preparation of a Draft Permit
124.31  Draft permit after application.
124.32  Other draft permits.
124.33  Statement of basis.
124.34  Fact sheet.
124.35  Administrative record for EPA draft
   permits.
124.36  Applicability of Subpart D to draft
   permits incorporating section 301(h)
   modifications.

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  32928      -Federal Register / Vol.  44.  No. Ill / Thursday, June  7, 1979 / Rules and Regulations
  Subpart E—Public Comment and Hearings
  124.41  Public notice regarding permits and
      permit hearings.
  124.42  Public comments^ and hearings.
  124.43  Obligation to raise points and
      provide information during the comment
      period.
  124.44  Terms requested by the Corps of
      Engineers and other governmental
      agencies.
  124.45  Reopening of comment period.

  Subpart F—Special Provisions for
  Variances and Statutory Modifications
  124.51  Time deadlines for applications for
      variances from and modifications of
      effluent limitations.
  124.52  Decisions on variances and
      modifications.
  124.53  Procedures for variances and
      modifications where EPA is the permit
      issuing authority.
  124.54  Appeals of modifications and
      variances.
  124.55  Special provisions for modifying the
      secondary treatment requirements under
      section 301(h).
  124.56  Special procedures for decisions on
      thermal variances (section 316(a)).

  Subpart G—Issuance and Effective Date of
  Permit
  124.61  Issuance and effective date of permit;
      stays.
  124.62  Final Environmental Impact
      Statement.
  124.63  Response to comments.
  124.64  Administrative record for final
     permit issued by EPA,

  Subpart H—Evidentiary Hearings for EPA-
  Issued Permits
  124.71  Applicability.
  124.72  Definitions.
  124.73  Filing and submission of documents.
  124.74  Requests for evidentiary hearing.
  124.75  Decision on request for a hearing.
 124.76  Obligation to raise issues and submit
     evidence before a final permit is issued.
 124.77 Notice of the  grant of a hearing.
 124.78  Ex parte communications.
 124.79  Additional parties and issues.
 124.80  Filing and service.
 124.81  Assignment of Administrative Law
     Judge.
 124.82  Consolidation and severance.
 124.83  Prehearing conferences.
 124.84  Summary determination;
 124.85  Hearing procedure.
 124.86  Motions.
 124.87  Record of hearings.
 124.88  Proposed findings of fact and
     conclusions; brief.
 124.89 Decisions.
 124.9O Interlocutory appeal.
 124.101  Appeal to  the Administrator.

 Subpart I—Non-Adversary Procedures for
 Initial Licensing
124.111  Applicability.
124.112  Relation of other Subparts.
124.113 Public notice  regarding draft permits
    and permit conditions.
124.114  Hearings.
  124.115  Effect of denial or absence of
     request for hearing.
  124.116  Notice of hearing.
  124.117  Request to participate in hearing.
  124.118  Submission of written comments on
     draft permit.
  124.119  Presiding Officer.
  124.120 - Panel hearing.
  124.121  Opportunity for cross-examination.
  124.122  Record for final permit.
  124.123  Filing of brief, proposed findings of
     fact and conclusions of law and
     proposed modified permit
  124.124  Recommended decision.
  124.125  Appeal from or review of
     recommended decision.
  124.126  Final decision.
  124.127  Final decision if there is no review.
  Subpart J—Miscellaneous
  124.131  Public access to information.
  124.132  Delegation of authority, time
     limitations.
  124.133  EPA Headquarters' approval of
     stipulation or consent agreement.
  124.134  Additional time after service by
     mail.
  124.135  Effective date of Part 124.
   Authority.—Clean Water Act. as amended
  by the Clean Water Act of 1977, 33 UJS.C.
  1251 et seq; Administrative Procedure Act, 5
  U.S.C. 551 et seq.

  Subpart A—Applicability

  § 124.1  Purpose and scope.
   This Part specifies the procedures
 governing EPA's issuance of NPDES
 permits and permit appeals. The
 portions of this Part listed in § 123.12
 apply to State permit programs
 approved under Part 123. This Part
 organizes permit decisions into a
 sequence of seven procedural stages."
 First, an application must be made in
 proper form (Subpart B). This
 application will then be circulated to
 affected States for certification or the
 State will certify the draft permit under
 section 401 (Subpart C]. EPA will then
 prepare a draft permit or permit denial
 (Subpart DJ, which will be made
 available for public comment (Subpart E
 or I). This is the stage for interested
 governmental agencies, other than
 certifying States, to express their views
 of the permit. After these comments
 have been considered, EPA will issue a
 final permit (Subpart G or I), and any
 interested person may then request an
 evidentiary hearing on any factual
 questions involved. The initial decision
 made after that hearing may then be
 appealed to the Administrator. Under
 Part 124, decisions  on variance requests
 will ordinarily be made during the
 permit issuance process (Subpart F).
 Requests for permit modifications and
 other changes in permit terms will be
made where possible, through the same
procedures that apply in making
 decisions on initial permits. Each such
 decision must move through the same
 procedures of notice-and-comment and
 potential hearings as the basic permit.

 § 124.2  Definitions.
   (a) The definitions of Parts 122,123
 and 125 apply to this Part
   (b) "BAT' or "Best Available
 Technology" means the level of
 treatment of best available technology
 economically achievable as determined
 by the Administrator.

 Subpart B—The Application Process

 §124.11  Application for a permit
   (a) Any person who discharges or
 proposes to discharge pollutants, except
 persons covered by general permits
 under § 122.48, or excluded under
 § 122.4, shall complete, sign, and submit
 an application to the Regional
 Administrator, in accordance with Part
 122, Subpart B.
   (b) Expect as provided by § 124.32(a)
 no NPDES permit other than a general
 permit shall be issued until the applicant
 has filed a complete application that
 complies with the filing requirements in
 this Subpart and Part 122. If an applicant
 fails or refuses to correct deficiencies in
 its NPDES application form, the permit
 may be denied or appropriate
 enforcement action may be taken under
 sections 308, 309, or 402(h) of the Act.
   (c) Permit applications shall comply
 with the signature and certification
 requirements of § 122.5.
   (d) If the Director determines that
 further information or a site visit is
 necessary in order to evaluate the
 discharge completely and accurately,
 the  applicant shall be notified and a
 date shall be scheduled for receipt of the
 requested information and for any
 necessary site visit.
   (e) Special procedures for applications
 for variances and statutory
 modifications are provided in Subpart F.

 § 124.12  Special provisions for
 applications from new sources.
   (a) The owner or operator of any
'facility which may be a new source as
 defined in 1122.3(v) and which is
 located in a State without an approved
 NPDES program must comply with the
 provisions of this section in addition to
 the requirements of § 124.11.
  (b](l) Before beginning any on-site
 construction as defined in § 122.47, the
 owner or operator of any facility which
 may be a new source must submit
 information to the Regional
 Administrator so that he or she can
 determine if the facility is a new source.
The Regional Administrator may request
any additional information needed to

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              Federal Register / VoL 44, No. Ill / Thursday, June 7, 1979 / Roles and Regulations
                                                                       32929
 determine whether the facility is a new
 source.
    (2) The Regional Administrator shall
 make an initial determination whether
 the facility is a new source within 30
 days of receiving all necessary
 information under paragraph (b)(l).
    (c) The Regional Administrator shall
 issue a public notice in accordance with
 § 124.41 of the new source determination
 under paragraph (b). The notice shall
 state that the applicant, if determined to
 be a new source, must comply with the
 environmental review requirements of
 40 CFR | 6.900 et seq.,
    (d) Any interested person may
 challenge the Regional Administrator's
 initial new source determination by
 requesting an evidentiary hearing under
 § 124.74 within 30 days of issuance of
 the public notice of the initial
 determination. The Regional
 Administrator may defer the evidentiary
 hearing on the determination until after
 a final permit decision is made under
 § 124.61, and consolidate the hearing on
 the determination with any hearing on
 the permit

 §124.13  Requests for modification,
- revocation, and reissuance, or termination.
   (a) If a discharger with a permit or an
 interested person believes that a
 modification, revocation or reissuance,
 or termination is justified under the
 standards of § 12Z31, it may request a
 modification, revocation and reissuance,
 or termination from the Director in
 writing. The request shall set forth all
 facts or reasons known to the requester  -
 which may be relevant to a decision on
 the modification request
   (b)(l) If the Director agrees  that the
 modification or revocation and
 reissuance request appears to meet the
 requirements of § 122.31, the Director
 shall formulate a draft permit under
 5 124.32 incorporating the changes. If
 additional information is needed to ',
 prepare a draft permit, the Director may
 request it under § 124.11(d) or in
 appropriate cases may require the
 submission of a complete new permit
 application under § 124.11(a). When a
 request for a modification under this
 section is granted and a new draft
permit is formulated, only those terms
dependent on the request will be
reopened. All other aspects of the permit
will remain in force until the expiration
of the permit. If the permit is revoked
and reissued, the draft permit is subject
to the same procedures as if the permit
had expired and was being reissued.
   (2) If the Director agrees that the
termination request appears to meet the
requirements of § 122.31, the Director
  shall prepare a notice of intent to
  terminate under § 124.32.
    (3) If the Director decides that the
  modification request does not appear to"
  meet the requirements of § 122.31 the —,
  Director shall reply in-writing to the
  discharger (and the person requesting
  the modification, if different) briefly
  setting forth in writing the reasons for
  that decision.

  § 124.14  Permits required on a case-by-
  case basis.
    (a) Various sections of Part 122 allow
  the Director to determine, on a case-by-
  case basis, that certain concentrated
  animal feeding operations (§ 122.43),
  aquatic animal production facilities
  (§ 122.44), separate storm sewers
  (1122.46), and certain other facilities
  covered by general permits (§ 122.48)
  that do not generally require individual
  permits may be required to obtain one
  because of their contribution to water
  pollution.
    (b) Whenever the Regional
  Administrator decides that an individual
  permit should be required under this
  section, the Regional Administrator
  shall inform the discharger hi writing of
  that decision, the reasons underlying it
  and shall include an application form hi
  such notice. The discharger must apply
  under  § 124.11 for a permit within 60
  days of such notice. The question
  whether the initial designation was
  proper will remain open for
  consideration during the public
  comment period under Subpart D and
--any subsequent hearing.

  §124.15  Dedsiora on permit denials and
  terminations.
   (a) The decision to deny a permit
  which  has been applied for shall be
  made through the same procedures as
  any other decision on a permit A draft
  notice  of intent to deny will be issued
  and made available for public comment
  accompanied by a fact sheet or
  statement of basis. A response to
  comments and final decision will then
 be prepared, and an evidentiary hearing
 with a  right of appeal to the
 Administrator may be requested on the
 issues raised.
   (b) The decision to terminate a permit
 shall be made through the same
 procedures that apply to any other
 permit  action initiated by EPA under
 § 124.32.
   (c) References to a "permit" or to
 decisiorunaking on a permit in this Part
 shall be read to include  decisions on
 permit denial or termination where
 necessary to carry out the intent of this
 section.
 Subpart C—State Certification

 § 124.21  Circulation of applications or
 draft permits to certifying States.
   (a) Under section 401(a)(l) of the Act
 EPA may not issue a permit until a —
 certification is granted or waived in
 accordance with that section by the
 State in which the discharge originates
 or will originate.
   (b) When an application is received
 which does not include a State
 certification, the Regional Administrator
 shall forward  the application to the
 certifying State agency with a request
 that certification be granted or denied.
   (c) If State certification has not been
 received by the time the draft permit is
 prepared, the Regional Administrator
 shall send the certifying State agency:
   (1) A copy of the draft permit;
   (2) A statement that the EPA cannot
 issue or deny the permit until the
 certifying State agency has granted or
 denied certification under § 124-22, or
 waived its right  to certify; and
   (3) A statement that the right to certify
 will be deemed waived unless exercised
 within a specified reasonable time
 which shall not exceed 60 days from the
 date the draft  permit is sent to the State
 unless the Regional Administrator finds
 that unusual circumstances require a
 longer time.

 §124.22  State certification.
   (a) Any State certification shall be
 issued or denied within the reasonable
 time specified under § 124.21(c)f3). The
 State shall provide notice of its action,
 including a copy of any certification, to
 the applicant and the Regional
 Administrator.
   (b] A State certification shall be made
 hi writing and shall include:
   (1) The terms and conditions which
 will result in compliance with the
 applicable provisions of sections 208(e),
 301, 302, 303,306, and 307 of the Act and
 with appropriate requirements of State
 law,
  (2) Where the State certifies a draft .
 permit instead of an application, any
 conditions, more stringent than those in
 the draft permit which the State finds
 necessary to comply with the
 requirements listed in paragraph (b)(l)
 of this section. For each such condition,
 the provision of the Act or State law
 which forms the basis for the condition
 shall be identified. Failure to provide
 such a statement shall be deemed a
waiver of the right to certify with
respect to such condition; and
  (3) A statement with respect to each
term and condition of the draft permit of
the extent to which such term or
condition can be made less stringent

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  32930       Federal  Register / Vol.  44,  No. Ill  / Thursday, June 7,  1979 / Rules and Regulations
  without violating the requirements of
  State law including water quality
  standards. Failure to provide such a
  statement shall be deemed a waiver of
  the right to certify with respect to any
  such less stringent term or condition
  which may be established during the
  EPA permit issuance process.
  [Comment: The requirement of paragraph
  (b](3) of this section is necessary to'enable
  the certification to serve its statutory function
  without requiring continual resubmission to
  the State. For example, a State might certify
  that a draft permit containing a technology-
  based limitation of 300 kg/day of BOD will
  meet State water quality standards and other
  State law requirements. However, if during
  the permit issuance process EPA decides that
  400 kg/day is the appropriate technology
  requirement, it is not clear at present whether
  the previous State certification continues to
  be valid. It would be impracticable and
  would add to delay in permit issuance if EPA
  resubmitted such permits to the State each
  time EPA considered setting a less stringent
  limitation than contained in the draft permit
  The requirement that States clearly identify
  what conditions are necessary to meet State
  law will simplify the permit issuance process
  and make certification more useful. However,
  States may not require EPA to adopt less
  stringent requirements. See § 124.23(c).]

  § 124.23  Effect of State certification.
    (a) Where certification is required
  under section 401(a)(l) of the Act, no
  final permit shall be issued:
    (1) If certification is denied, or
    (2) Unless the final permit
  incorporates any requirements specified
  in the certification under § 124.22(b)(l)
  and (2).
    (b) If the State law upon which a
  certification is based changes, or  if a
  State court stays, vacates, or remands a
 certification, a State which has issued a
 certification under § 124.22 may issue a
 modified certification or notice of
 waiver and forward it-to EPA. If the
 modified certification is received prior
 to  final Agency action on the permit, the
 permit shall be issued consistent with
 any more stringent conditions which are
 bgsed upon State law identified in such
 certification. If the certification or notice
 of waiver is received after final Agency
 action on the permit, the Regional
 Administrator may modify the permit
 only to the extent necessary to delete ,
 any conditions based on a condition in a
 certification found invalid by a State
 court
  (c) A State may not condition a
 certification or deny a certification on
 the grounds that State law requires a
less stringent condition. The Regional
Administrator shall disregard any  such
certification conditions, and will
consider such denials of certification to
constitute waivers of certification.
  [Comment State certification rights proceed
  from the authority of States under section 510
  of the Act to set more stringent limitations
  than those required by the Act States may
  not require EPA to disregard or downgrade
  Federal requirements.]

    (d) A permit may be modified during
  Agency review in any manner consistent
  with a certification meeting the
  requirements of § 124.22(b). No such
  modifications shall require EPA to
  submit the permit to the State for
  recertification.
    (e) Review and appeals of conditions
  specified by the State shall be made
  through the applicable procedures of the
  State and may not be made through the
  procedures in this Part

  § 124.24  Special provisions for State
  certification and concurrence in
  applications for section 301 (h)
  modifications.
    (a) Where an application for a permit
  incorporating a request under 301(h) of
  the Act is submitted to the State, the
  appropriate State official may either
   (1) Deny the request for the modified
  permit under section 301(h) (and so
  notify the applicant and EPA) and if the
  State is an  approved NPDES State and
  the permit is due for'reissuance, proceed
  to process the permit application under
 normal procedures; or                 ;
   (2) Forward a certification meeting the
 requirements of this Subpart to the
 Administrator or a person designated by
 the Administrator.
   (b) Where EPA issues a tentative
 determination on the request for a
 modified permit under section 301(h),
 and no certification has been received
 under paragraph (a), the Administrator
 or a person designated by the
 Administrator shall forward the
 tentative determination to the State in
 accordance with § 124.21(c) specifying a
 reasonable  time for State certification
 and concurrence. If the State fails to
 deny or grant certification and
 concurrence under paragraph (a) within
 such reasonable time, certification will
 be deemed to be waived and the State
 will be deemed to have concurred in the
 issuance of a modified permit under
 section 301(h).
  (c) Any certification provided by a
 State under paragraph (a)(2) shall
 constitute the State's concurrence (as
 required by section 301(h)) in the
 issuance of the section 301(h) modified
permit subject to any conditions
specified therein by the State.
[Comment: Section 301(h) certification/
concurrence under this section will not be
forwarded to the State by EPA for
recertification after the permit issuance
process. Accordingly, States must specify any
  conditions required by State law, including
  water quality standards, in the certification.]

  Subpart D—Preparation of Draft
  Permit

  §124.31  Draft permit after application.
    (a] If a permit has been properly
  requested under § 124.11, the Director,
  after analyzing the data and other .
  information concerning a permit
  furnished under Subparts B and C, and
  any other relevant information, shall
  tentatively decide whether to issue or
  deny the permit. Any Environmental
  Impact Statement prepared under 40
  CFR § 6.912, and any other applicable
  factors listed in 40 CFR § 6.920, shall be
  considered by the Regional
  Administrator in deciding whether to
  issue a permit for a  new source under
  this section.
    (b) If the Director tentatively decides
  to issue a permit, a draft permit shall be
  prepared containing:
    (1) All conditions, limitations, or
  requirements specified in § 122.14;
    (2) All effluent limitations, standards,
  prohibitions, and conditions required by
  § 122.15, including, where applicable,
  any conditions certified by a State
  agency under Subpart C, and all
  variances or other modifications that are
  to be included under Subpart F. All
  effluent limitations and standards shall
  be calculated and specified as required
  by §122.16;
  .  (3) All compliance schedules required
  by § 122.17; and
    (4) All monitoring requirements
  required by § 122.20.
    (c) Any draft permit formulated by
  EPA shall be based on the
  administrative record required by
  §124.35.
    (d) If the Regional Administrator
  determines under 40 CFR § 6.910 that an
  EIS shall be prepared for a new source
  the public notice of the draft permit
  under this section shall occur at the
  same time or after a draft EIS is issued.

  §124.32   Other draft permits.
    (a) In the following cases the Director
  may formulate a draft permit without
  having received an application from a
  discharger.
    (1) If the Director decides that a
^permit should be modified, or revoked
  and reissued under § 122.31, the Director
  shall formulate a draft permit reflecting
 the modifications or a draft reissued
 permit including a notice of intent to
 revoke the existing permit. If the
 Director decides that a permit should be
 terminated, the Director shall issue a
 notice of intent to terminate.

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             Federal Register / Vol. 44. No. Ill / Thursday. June 7.  1979 / Rules and Regulations       32931
   (2) General permits to be issued either
 by EPA or by States under f 122.43 shall
 be proposed in draft form, shall contain
 the designation of the General Permit
 Program Area (as defined in
 § 122.48(a)(2)) and, except for general
 permits for separate storm sewers, shall
 be sent to the EPA Deputy Assistant
 Administrator f(jr Water Enforcement
 for concurrence or objection during the
 public comment'period. No final permit
 shall be issued if the EPA Deputy
 Assistant Administrator for Water
 Enforcement objects to the general
 permit Such objection must be made
 within 90 days from the date of
 publication of the public notice for the
 draft general permit under § 124.41{f).
   (b) Any draft permit or notice of intent
 to revoke or terminate, issued under
 paragraph (a), shall be based on the
 administrative record defined in
 5124.35.   _...

 § 124.33  Statement of basis.
   A statement of basis shall be prepared
 for every draft permit formulated under
 § § 124.31 or 124.32 where a fact sheet is
 not required under § 124.34. The
 statement of basis shall briefly describe
 the derivation of the terms and
 conditions of the permit and the reasons
 for them. For instance, if effluent
 limitations in a permit are based upon
 the application of treatment
 technologies, the statement of basis
 shall identify the technologies and the
 degree of effluent reduction or control
 which the treatment technologies are
 assumed  to achieve. The statement of
 basis  shall be part of the administrative
 record and shall be made available to
 the discharger and other members of the
 public on request

 § 12444  Fact sheet.
   (a) A fact sheet shall be prepared for
' every draft permit for a major discharger
 (as established in EPA's annual
 operating guidance for EPA Regional
 Offices and the States), any draft permit
 which incorporates a variance or
 modification, general permits tinder
 § 124.48, and every draft  permit which"
 the Regional Administrator or State
 Director finds is the subject of
 widespread public interest or raises
 major issues. The fact sheet shall briefly
 set forth the major facts and the
 significant factual, legal,
 methodological, and policy questions
 considered in getting the  terms of the
 draft permit The Director shall send this
 fact sheet to the applicant, to the District
 Engineer of the Corps of Engineers, to
 the Regional Director of the U.S. Fish
 and Wildlife Service and the National
Marine Fisheries Service, to other
interested State and Federal agencies,
(including EPA where the draft permit is
prepared by the State) and to any other
person on request Any of these persons
may waive their right to receive a fact
sheet for any classes and categories of
permits.
  (b) The fact sheet shall include: (1) A
brief explanation of the express
statutory or regulatory provisions on
which permit requirements are based,
and for permits issued by EPA,
appropriate supporting references to the
administrative record required by
§124.35;
  (2) Any calculations or other
necessary explanation of the derivation
of specific effluent limitations and
conditions, including a citation to the
applicable guideline or development
documents or standard provisions as
required under § 122.15 and reasons
why they are applicable or an
explanation of how the alternate
effluent limitations were developed:
' (3) Where appropriate, a sketch or
detailed description of the location of
the discharge described in the
application;
  (4) A quantitative description of the
discharge described in the application;
  (5) Reasons requested variances or
modifications do or do not appear
justified;
  (8) For EPA-issued permits the results
of any State certification under Subpart
C;
  (7) Name and telephone number of a
person who can provide additional
information; and
  (8) Any information, not otherwise
specified herein, required by 5124.33.

§124^5  Administrative record for EPA
draft permits.
  (a) Decisions by the Regional
Adminstrator to formulate a draft permit
under § 124.31 or § 124.32 shall be made
on the basis of the administrative record
defined in this section.
  (b) The record for a draft permit under
§ 124.31 shall consist of:
  (1) The initial application and any
supporting data furnished by the
applicant;
  (2) The draft permit;
  (3) The statement of basis required by
§ 124.33 or fact sheet prepared under
§ 124.34-
  (4) All documents cited in the fact
sheet or the statement of basis;
  (5) Other documents contained in the
supporting file for the permit, including
correspondence, telephone and meeting
memoranda, compliance reports, etc;
  (6) All comments submitted on a new
source determination under  § 124.12,
and any other documents EPA considers
relevant to the determination; and
  (7) Any environmental assessment
Environmental Impact Statement,
negative declaration, or environmental
impact appraisal that may have been
prepared.
  (c) The record for formulating a draft
permit under § 124.32 shall consist of the
draft permit the statement of basis
required by § 124.33 or fact sheet
prepared under § 124.34 and all
documents cited in the fact sheet or the
statement of basis.
  (d) Material readily available at the
Issuing Regional Office or published
material which is generally available,
and which is  included in the
administrative record under the
standards of paragraphs (b) and (c),
does not need to be physically included
in the same file as the rest of the record
as long as it is specifically referenced in
the statement of basis or the fact sheet
  (e) No later than the time a draft
permit is issued, a Record Clerk shall be
designated with responsibility for
maintaining the records established
under this section. Copying of any
documents in the record shall be
allowed under appropriate
arrangements to prevent their loss. The
charge for such copies shall be made in
accordance with the written schedule
contained in 40 CFR Part 2.
[Comment: The administrative record for
draft permits under this section will comprise
the bulk of the material for the final
administrative record. See § 124.64.]

§124.36  Applicability of Subpart O to draft
permits incorporating section 301(h)
modifications.
  Subpart D is applicable to draft
permits incorporating section 301 (h)
modifications except that the terms
"Administrator or a person designated
by the Administrator" shall be
substituted for the terms "Regional
Administrator" as appropriate.

Subpart E—Public Comment and
Hearings

§ 124.41  Public notice regarding permits
and permit hearings.
  (a) Notices shall be circulated in a
manner designed to inform interested
persons of a hearing or determination
dealing with permit denial or issuance.
Notice of a draft permit shall allow at
least 30 days for public comments and
notice of a hearing shall be given 30
days before the hearing.
[Comment: At the discretion of the Director,
this could include press releases or the use of
additional means to elicit public
participation!]

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  .32932       Federal Register / Vol. 44, No. Ill  / Thursday, June 7, 1979  /  Rules and Regulations
    fb) Notice of the formulation of any
  draft permit and.notice of all hearings
  shall be given by the Director;
    (1) By mailing a copy to the applicant;
  to the U.S. Army Corps of Engineers, to
  Federal and State agencies with
  jurisdiction over fish, shellfish and
  wildlife resources and to other
  appropriate governmental authorities
  including any affected State; to any
  person on request and to all persons on
  a mailing list developed from those who
  request to be on the list and by using the
  following methods:
    (i) Soliciting persons for "area lists"
  from participants in past permit
  proceedings  in that area; and
    pi) Notifying the public as to the
  availability of mailings of public notices
  through periodic press publication and
  notices in such publications as Regional
  and State funded newsletters,
  environmental bulletins or State Law
  Journals. The mailing list may be
  updated from time to time by requesting
  an indication of continued interest in
  being on the  mailing list; and
    (2) By any  of the following methods:
    (i) By publication of a notice meeting
  the requirements of paragraph (c) in a
  daily or weekly newspaper within the
  area affected by the discharge; or
    (ii) By posting a copy of the
  information required under paragraph
  (c) and (d) at the principal office of the
  municipality  or political subdivision
  affected by the facility or discharge,  and
  by posting a copy at the United States
  Post Office serving those premises;-or
    (iii) Where the State is the permit
  issuing authority in any other manner
  constituting legal notice under State law.
    (3) Any person otherwise entitled to
 receive notice under paragraph (1) of
 this section may waive the right to
 receive notice for any classes and
 categories of permits.
   (c) All public notices issued under this
 section shall contain the following
 information:
   (1) Name and address of the office
 processing the application or conducting
 the hearing;
   (2) Except in the case of general
 permits, name and address of the
 applicant and the discharger (if different
 from the applicant) and a general
 description of the location of each
 existing or proposed discharge point,
 including the receiving water;
  (3) Name of a person, and an address
 and telephone number where interested
 persons may obtain further information,
 including copies of the draft permit, the
 statement of basis or fact sheet;
  (4) For EPA-issued permits, the
location of the administrative record
required by § 124.35 and the times at
  which it will be open for public
  inspection;
    (5) If the applicant has properly
  applied under section 316(a) for a
  thermal variance, a statement to that
  effect The notice shall state that all
  data submitted by the applicant are
 "available as part of the administrative
.  record for public inspection during office
  hours. The notice shall also state that
  any person may comment in writing
  under § 124.42 upon the applicant's
  desired alternative effluent limitations
  and may also request a hearing.
    (d) Mailed public notice to those
  identified in paragraph (b)(l) shall
  contain the information required under
  paragraph (c) and the following:
    (1) A brief description of  the
  applicant's activities or operations that
  result in the discharge described in the
  application, and a statement whether
  the application pertains to a new or
  existing discharge;
    (2) A brief description of the comment
  procedures required by § 124.42,
  including the time and place of any
  public hearing that will be held.
    (3) If the discharge is from a new
  source,  a statement of the Regional
 Administrator's decision as to whether
 an Environmental Impact Statement will
 be or has been prepared.
    (4) A statement of the right and
 procedures to request a public hearing.
    (e) In addition to the information
 required by paragraphs (c) and (d)
 above, mailed public notice of a draft
 permit for a discharge where a section
 316(a) application has been  filed under
 § 124.51(b)(6) shall include:
   (1) A statement that the thermal
 component of the discharge  is subject to
 effluent limitations under'sections 301 or
 306 of the Act and a brief description
 including a quantitative statement of the
 thermal  effluent limitations proposed
 under sections 301 or 306; and
   (2) A statement that a section 316(a)
 application has been filed and that
 alternative less stringent effluent
 limitations may be imposed on the
 thermal component of the discharge1
 under section 316(a) and a brief
 description including a quantitative
 statement of the alternative effluent
 limitations, if any, included in the
 application.
   (3) If the applicant has filed an early
 screening application for Bisection
 316(a) variance under § 125.72, a
 statement that the applicant has
 submitted such a plan.
  (f) Notice of the formulation of a draft
general permit and the issuance of a
final general permit under § 122.48 shall
meet:
   (1) The requirements of paragraphs (c)
 and (d) and shall be published in a daily
 or weekly newspaper within the area
 affected by the discharge and in the '
 Federal Register for EPA-issued permits
 or in a manner constituting legal notice
 under State law for State-issued permits.
   (2) The public notice for general
 permits shall also include:
   (i) A brief description of the types of
 activities or operations to be covered by
 the general permit;
   (ii) A map or description of the
 General Permit Program Area; and
   (iii) The basis for choosing the
 General Permit Program Area.
   (3) The Director shall use all other
 reasonable means to notify affected
 dischargers of the draft and final general
 permit
   (g) In addition to the information
 required under paragraph (c), public
 •notice of a public hearing held under
 § 124.42(b) shall contain the following
 information:
   (1) Reference to the date of the public
 notice of the draft permit;
   (2) Date, time and place of the
 hearing; and
   (3) hi the case of a mailed public
 notice, a brief description of the nature
 and purpose of the hearing, including the
 applicable rules and procedures.
   (h) A public notice of the grant of an
 evidentiary hearing under Subpart H
 shall contain the information required
 under paragraph (c), (g)(l), (g)(3) and a
 mailed public notice of such a hearing
 shall also include:
   (1) Reference to any public hearing
 under 1124.42 on the disputed permit;
   (2) Name and address of the person(s)
 requesting the evidentiary hearing;
   (3) Brief description of the permit
 terms and conditions which have been
 contested and for which the evidentiary
 hearing has been granted;
   (4) Brief description of the nature and
 purpose of the hearing including the
 following declarations:
   (i) Any person seeking to be a party
 must file a request to be admitted as a
 party to the hearing within 15 days of
 the date of publication of this notice;
   (ii) Any person seeking to be a party
 may, subject to the requirements of
 § 124.76., propose material issues of fact
 or law not already raised by the original
 requester or another party;
  (iii) The terms and conditions of the
 permit(s) at issue may be amended after
 the evidentiary hearing and any person
 interested in those permit(s) must
request to be a party in order to
preserve any right to appeal or
otherwise  contest the final
administrative determination.

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              Federal Register / Vol. 44, No. Ill / Thursday, June 7. 1979 / Rules and Regulations      32933
  ;'(5) Names or organizational
 description of the EPA employees who
 shall constitute "Agency trial staff" and
 the "decisional body" under 1124.78
 _who are subject to the ex parte
 communication rules.
   (6) The name, address and office
 telephone number of the Regional
 Hearing Clerkj
   (i) A public notice for a draft permit
 that will be processed under Subpart I
 shall include the information in
 paragraphs (c) and a statement that any
 hearing will be held under the non-
 adversary initial licensing procedures. In
 addition, a mailed public notice shall
 include:
   (!) The information in paragraph (d)
 except that a public hearing under
 paragraph (d)(2) is discretionary with
 the Regional Administrator;
   (2) A statement that the permit will be
 processed under the nonadversary
 procedures for initial licensing of
 Subpart I, together with a brief
 description of those procedures. This
 description shall state explicitly the
 manner and timing for any person to
 request a hearing on the permit If EPA  -
 has decided on its own motion to hold a
 hearing, the notice shall so state, and
 shall also contain the information
 required by § 124.41ft');
   (3) A statement that written comments
 on the draft permit and, in the case of a
 section 301 (h) application, the tentative
 determination to grant or deny the
 application submitted to EPA with thirty
 (30) days of the date of the notice will be
 considered by EPA in making a final
 decision on the application. This 30-day
 period may be extended up to 60 days
 sua sponte or on request of an interested
 party;
   (4) to the case of the public notice of
 the draft permit or denial of an
 application for a modified permit under
 section 301(h) shall include:
   (i) A summary of the information
 contained in the application; and
   fii) A summary of the tentative
 determination prepared under
 1124.114(1),
   (j) A notice of a grant of a panel
 hearing requested under Subpart I shall
 include the applicable information from
 paragraph (i). In addition, the mailed
 public notices shall include:
  (1) Name and address of the person
 requesting the hearing, or a statement
 that the hearing is being held by order of
 the Regional Administrator, and the
name and address of each known party
to the hearing;
  (2) Names or organization description
of the EPA employees who shall
constitute the "decisional body" and the
"Agency trial staff," under 5124.78 who
 are subject to the ex parte
 communication rules;
   (3) A statement whether the
 recommended decision will be issued by
 the Presiding Officer or by the Regional
 Administrator;
   (4) The due date for filing a written
 request to participate in the hearing
 under § 124.117;
   (5) The due date for filing comments
 under f124.118; and
   (6) The name, address, and office
 telephone number of the Regional
 Hearing Clerk.

 § 124.42  Public comments and hearings.
   (a) A comment period of at least 30
 days following the date of public notice
 of the formulation of a draft permit shall
 be provided. During this period any
 interested persons may submit written
 comments on the draft permit and
 administrative record and may request a
 public hearing. A request for a public
 hearing shall be in writing and shall
 state the nature of the issues to be
 raised. All comments shall be
 considered in preparing the final permit
 and shall be responded to as provided in
 § 124.63.
   (b)(l) In appropriate cases, including
 cases where there is significant public
 interest the Director may hold a public
 hearing on a draft permit or permits.
 Public notice of that hearing shall be
 given as specified hi § 124.41.
   (2} Any person appearing at such a
 hearing may submit oral or written
 statements and data concerning the
 draft permit Reasonable limits may be
 set upon the time allowed for oral
 statements, and the submission of
 statements in writing may be required.

 § 124.43  Obligation to raise points and
 provide information during the comment
 period.
  All persons, including applicants, who
 believe any of the terms of a draft
 permit are not appropriate either
 because one of the variances or
 modifications listed in Subpart F should
 be granted or for some other reason,
 must raise all reasonably ascertarnable
 issues and submit all arguments and
 factual grounds supporting their
 position, including all supporting
 material by the close of the public
 comment period (including any public
 hearing period) required by § 124.42.

 § 124.44 Terms requested by the Corps of
 Engineers and other governmental
agencies.
  (a) If the District engineer of the Corps
of Engineers advises the Director in
writing during the public comment
period that anchorage and navigation of
any of the  waters of 1he United States
 would be substantially impaired by the
 granting of a permit, the permit shall be
 denied and the applicant so notified. If
 the District Engineer advises the
 Director that imposing specified
 conditions upon the permit is necessary
 to avoid any substantial impairment of
 anchorage or navigation, then the
 Director shall include the specified
 conditions in the permit. Review or
 appeal of a denial of a permit or of
 conditions specified by the District
 Engineer shall be made through the
 applicable procedures of the Corps of
 Engineers, and may not be made  through
 the procedures provided in this Part.
   fb) If during the comment period the
 U.S. Fish and Wildlife Service, the
 National Marine Fisheries Service, or
 any State or other Federal Agency with
 jurisdiction over fish,  wildlife, or public
 health advises the Director in writing
 that the imposition of specified
 conditions upon the permit is necessary
 to avoid substantial impairment of fish,
 shellfish, or wildlife resources, the
 Director may include the specified
 conditions in the permit to the extent
 they are determined necessary to carry
 out the provisions of the Act
   (c) In appropriate cases the Director
 may consult with one or more of the
 agencies referred to in this section
 before issuing a draft  permit and  may
 reflect their views in the statement of
 basis, the fact sheet or the draft permit

 § 124.45  Reopening of comment period.
   If any information or arguments
 submitted during the public comment
 period, including information or
 arguments whose submission is required
 under § 124.43, appears to raise
 substantial new questions concerning a
 permit the Director may conclude that-
 one of the following actions is necessary
 for an informed decision:
  (a) Formulation of a new draft permit
 appropriately modified, under § 124.42;
  (b) Preparation of a fact sheet or
 revised fact sheet under § 124.34 and
 reopening the comment period under
 5 124.42; or
  (c) Reopening of the comment period
 under § 124,42 to give  interested persons
 an opportunity to comment on the
 information or arguments submitted.
 In each case the notice required by
 § 124.41 shall be given.

 Subpart F—Special Provisions for
 Variances and Statutory Modifications

 § 124.51 Time deadlines for applications
for variances from and modifications of
effluent limitations.
  (a) Except as provided in paragraph
(d), applications for variances from and

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  32934
Federal Register / Vol. 44, No. HI / Thursday,  June 7, 1979 / Rules and Regulations
  modification of effluent limitations
  under the statutory and regulatory
  provisions of the Act shall be made as
  provided in paragraph (b) and (c).
    (b} Dischargers other than publicly
  oivned treatment works. (1) A request
  for a variance based on the presence of
  "fundamentally different factors" from
  those on which the effluent limitations
  guideline was based, shall be made by
  the close of the public comment period
  under § 124.42. The request shall explain
  why the requirements of §  124.43 and
  Part 125, Subpart D have been met.
    (2) A request for a variance from the
  BAT requirements for section
  301(b](2)(F) pollutants (commonly called
  "non-conventional" pollutants] pursuant
  to section 301(c) because of the
  economic capability of the  owner or
  operator; or pursuant to section 301(g)
  because of certain environmental
  considerations, where those
  requirements were based on effluent
  limitation guidelines, must  be made by:
    (i) Submitting an initial application to
  the Regional Administrator and the
  State Director stating the name  of the
  applicant, the permit number, the outfall
  number(s), the applicable effluent
  guideline, and whether the  applicant is
  applying for a section 301(c) or section
  301(g) modification or both. This
  application shall be filed not later than:
    (A) September 25,1978, for a pollutant
  which is controlled by a BAT effluent
  limitation guideline promulgated before
  December 27,1977; or
    (B) 270 days after promulgation of an
  applicable effluent limitation guideline
  for guidelines promulgated after
  December 27,1977;
    (ii) Submitting a completed request
  demonstrating that the requirements of
  § 124.43 and the applicable requirements
 of Part 125 have been met no later than
 the close of the public comment period
 under § 124.42.    .
   (iii) Requests for variance of effluent
 limitations based on other than effluent
 limitation guidelines, shall comply only
 with paragraph (ii) and need not submit
 an initial application under paragraph
 W-
   (3) An extension under section
 301(i)(2) of the statutory deadlines in
 sections 301(b)(l)(A) or (b](l)(C) based
 on delay in completion of a publicly
 owned treatment work into which the
 source is to discharge must have been
 requested on or before June 26,1978, or
 180 days after the relevant publicly
 owned treatment works requests an
 extension under paragraph (c)(2) of this
section, whichever is later. The request
shall explain why the requirements of
Part 125, Subpart J have been met.
                             (4) An extension under section 301(k)
                           from the statutory deadline of section
                           301(b)(2)(A) for best available control
                           technology based on the use of
                           innovative technology may be requested
                           no later than the close of the public
                           comment period under § 124.42 for the
                           discharger's initial permit requiring
                           compliance with best available control
                           technology. The request shall explain
                           why the requirements of § 124.43 and
                           Part 125, Subpart C have been met.
                             (5) A modification under section
                           302(b)(2) of requirements under section
                           302(a] for achieving water quality
                           related effluent limitations  may be
                           requested no later than the close of the
                           public comment period under § 124.42
                           on the permit from which the variance is
                           sought. The request shall explain why
                           the requirements of that section have
                           been met.
                             (6) A variance under section 316{a) for
                           the thermal component of any discharge
                           must be filed with a timely  application
                           for a permit under § 124.11. If thermal
                           effluent limitations are established
                           under section 402(a)(l) or are based on
                           water quality standards the application
                           shall by filed by the close of the public
                           comment period under 1124.42. A copy
                           of the application as required under Part
                           125, Subpart H shall be sent
                           simultaneously to the appropriate State
                           or interstate certifying agencyrfSee
                           § 124.56 for special procedures for
                           section 316(a] thermal variances.)
                             (c) Publicly owned treatment works.
                           (I) A preliminary application for a
                           modification under section 301(h) from
                           requirements of section 301(b)(l)(B) for
                           discharges into marine waters must
                           have been submitted to the  Agency no
                           later than September 25,1978. A final
                           application must be submitted in
                           accordance with the filing requirements
                           of Part 125, Subpart G, after that Subpart
                           is promulgated, and shall demonstrate
                          on its face that all the requirements of
                          Part 125, Subpart G have been met (See
                           § 124.55 for special rules for section
                          301 (h) modifications.)
                            (2) An extension under section
                          301(i}(lJ from the statutory deadlines in
                          sections 301(b}(l)(B) or (b](l)C) based
                          on delay in the construction of publicly
                          owned treatment works must have been
                          requested on or before June  26,197S.
                           (3) A modification under section
                          302(b)(2) of the requirements under
                          section 302(a) for achieving water
                          quality based effluent limitations may
                          be requested no later than the close of
                          the public comment period under
                          § 124.42 on the permit from which the
                          modification is sought
                           (d)(l) Notwithstanding any later time
                          specified in paragraphs {b) and [c), the
  Director may notify the applicant before
  a draft permit is published pursuant to
  § 124.41 that the draft permit will likely
  contain limitations which are eligible for
  variances or modifications. In such
  notice the Director may require the
  applicant as a condition of
  consideration of any potential variance
  request to submit a full application
  within a specified reasonable time
  before the draft permit is formulated.
  This notice can be sent before the
  application under  § 124.11 has been
  submitted.
  [Comment- This paragraph is intended to
  reduce the time for permit issuance,
  especially in those cases where it is clear that
  a variance or modification will be applied for,
  such as where the discharger has submitted a
  variance application under § 124.51(b)(2)(i)
  even before the permit application "is filed
  under § 124.11.]
   (2) A discharger who cannot file a
  complete request required under
  paragraphs (b](2)(ii), (b)(2)(iii), (b)(3)(ii)
  or (b)(3)(iii) may request an extension to
  apply. Extensions shall be limited to the
  time the Director determines is
~ necessary to satisfy the requirements of
  the appropriate regulations, but shall be
  no more than six months in duration.
  The request may be granted or denied in
  the discretion of the Director.

  § 124.52  Decisions on variances and
  modifications.
   (a) The Director may grant or deny the
  following modifications or variances
  (subject to EPA objection under § 123.23
  for State permits):
   (1) Extensions under section 301(i)
  based on delay in completion of a
  publicly owned treatment works;
   (2) After consultation with the
  Regional Administrator, extensions
 under section 301(k) based on the use of
 innovative technology; or    "
   (3) Variances under section 316(a) for
 thermal pollution.
   (bj The State Director may deny, or
 forward to the Regional Administrator
 with a written concurrence or submit to
 EPA without recommendation a
 completed application for:
   (1) A variance based on the presence
 of "fundamentally different factors"
 from those on which an effluent
 limitations guideline was based;
   (2) A variance based on the economic
 capability of the applicant under section
 301 (c) of the Act;
   (3) A variance based upon certain
 water quality factors under section
 301(g);of
   (4) A  modification of section 302(b)(2)
 requirements under section 302(a)
 (water quality related effluent
 limitations).

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              Federal Register /  Vol. 44,  No. Ill / Thursday,  June 7,  1979 / Rules and Regulations       32935
   (c) The Regional Administrator may
 deny, or may forward to the EPA Deputy
 Assistant Administrator for Water
 Enforcement with recommendation for
 approval, an application for a variance
 listed in paragraph fb) which is
 forwarded by ,the State Director, or
 submitted to the Regional Administrator
 by the applicant where EPA is the
 permitting authority.
   (d) The EPA Deputy Assistant
 Administrator for Water Enforcement
 may approve or deny any variance
 application submitted under paragraph
 (c). If the EPA Deputy Assistant
 Administrator approves the variance,
 the Director may formulate a draft
 permit incorporating the variance. Any
 public notice of a draft permit for which"
 a variance or modification has been
 approved or denied shall identify the
 applicable procedures for appealing that
 determination under § 124.54.

 § 124.53   Procedures for variances and
 modfficatforw where EPA is tne permit
 issuing authority. -
   (a) In  states where EPA is the permit
 issuing authority and an application for
 a variance or modification is filed as
 required by § 124.51, the application
 shall be processed as follows:
   (1) If at the time an application for a
 variance or modification is submitted
 the Regional Administrator has received
 an application under § 124.11 for
 issuance or renewal of that permit but
 has not yet formulated a draft permit
 under §  124.31 covering the discharge in
 question, the Regional Administrator
 after obtaining any necessary
 concurrence of the EPA Deputy
 Assistant Administrator for Water
 Enforcement under § 124.52, shall set
 forth a tentative determination on the
 request at the time the draft permit is
 formulated as specified in § 124.31,
 unless this would significantly delay the
 processing of the permit In that case the
 processing of the variance or
 modification request may be separated
 from the permit in accordance with
 paragraph (3), and the processing of the
 permit shall proceed without delay,
  [2] If at the time an" application for a
 variance or modification is filed the
 Regional Administrator has formulated
 a draft permit under  § 124.31 covering
 the discharge in question, but that
 permit has not yet become final under
 § 124.101, administrative proceedings
 concerning that permit may be stayed
 and the Regional Administrator shall
 formulate a new draft permit including a
tentative determination on the request,
and the fact sheet required by §  124.34.
However, if this will significantly delay
the processing of the  existing permit or
 the Regional Administrator for other
 reasons considers combining the
 variance request and the existing permit
 inadvisable, the request may be
 separated from the permit in accordance
 with paragraph (3), and the
 administrative disposition of the
 existing permit shall proceed without  *
 delay.
   {3) If the permit has become final
 under § 124.101 and no application
 under § 124.11 concerning it is pending
 or if the variance or modification
 request has been separated from a
 permit as described in paragraphs (1)
 and (2), the Regional Administrator shall
 formulate a new draft permit under
 3 124.31. This permit shall be
 accompanied by the fact sheet required
 by § 124.34, except that the only matters
 considered shall relate to the requested
 variance.

 § 124.54 Appeals of modifications and
 variances.
   (a) Normally, the appeals of permit
 determinations are handled in one
 proceeding, either State or Federal.
 When a State issues a permit in which
 EPA has made a variance
 determination, a separate appeal on that
 determination is possible. In such"cases,
 requests for appeal of the EPA permit
 conditions must be filed under Subpart I
 after the public notice of the grant or
 denial of the variance. If the owner or
 operator is challenging issues hi a State
 proceedings on the same permit, the
 Regional Administrator will decide, in
 consultation with State officials, which
 case will be heard first
   (b) Appeals of modifications or
 variance determinations shall be
 governed by Subpart I unless the
 Regional Administrator determines that
'consolidation with an evidentiary
 hearing under Subpart H will expedite
 consideration of the issues presented.
 [Comment: The panel proceedings of Subpart
 I will generally be utilized when there is a
 State-issued permit and only the variance
 issues are in the Federal forum.]

   (c) Stays for section 301(g) variances.
 Under the authority of section 301{j}(2),
 if a request for an evidentiary hearing is
 granted regarding a variance under
 section 301 (g), or if a petition for timely
review of the denial of a request for an
evidentiary hearing is timely filed with
the Administrator under 1124.101 with
respect to such a variance, any -
otherwise applicable standards and
limitations under section 301 of the Act
shall riot be stayed unless:
  (1) In the judgment of the Regional
Administrator, the stay or the variance
sought will not result in the discharge of
pollutants in quantities which may
 reasonably be anticipated to pose an
 unacceptable risk to human health or
 the environment because of
 bioaccumulation, persistency in the
 environment, acute toxicity, chronic
 toxicity, or synergistic propensities; and
   (2] In the judgment of the Regional
. Administrator, there is a substantial
 likelihood that the discharger will
 succeed on the merits of its appeal; and .
   (3) The discharger files any bond or
 other appropriate security which is
 required by the Regional Administrator
 to assure timely compliance with the
 requirements from which a variance is
 sought in the event that the appeal is
 unsuccessful.
   (d) Stays for variances or
 modifications other than section 301(g)
 will be granted or denied pursuant to
 §124.61.

 § 124.55 Special provisions for modifying
 the secondary treatment requirement
 under section 301(h).
   (a) Where it is clear on the face of a
 section 301(h) application that the
 discharger is not entitled to a
 modification, the application shall be
 denied.
   (b) In the case of all other section
 301(h) applications the Administrator, or
 a person designated by the
 Administrator may either:
  " (1) Give written authorization to an
 applicant to submit information required
 by Part 125. Subpart G or the final
 application by a date certain, not to
 exceed 9 months, if:
   (i) The applicant proposes to submit
 new or additional information and the
 applicant demonstrates that:
   (A) The applicant made consistent
 and diligent efforts to obtain such
 information prior to submitting the final
 application;
   (B) The failure to obtain such
 information was due to circumstances
 beyond the control of the applicant; and
   (CJ Such information can be submitted
 promptly; or
   (ii) The applicant proposes to submit
 minor corrective information and such
 information can be submitted promptly;
 or
   (2) Make a written request of an
 applicant to submit additional
 information by a date certain, not to
 exceed 9 months, if such  information is
 necessary to issue a tentiative
 determination under § 124.114(g).
 All additional information authorized or
 requested under this paragraph which is
 timely, received, shall be considered part
 of the original application.
   (c) Applications for modifications
 under section 301(h) shall be processed
 independently of any pending

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  3293S       Federal  Register / Vol. 44, No.  Ill / Thursday, June 7.  1979 / Rules and Regulations
  application for the issuance or
  reissuance of a permit requiring the
  applicant to meet effluent limitations
  based on secondary treatment under
  section 301(b){l)[B).
    (d) No modified permit shall be issued
  granting a section 301(h) modification
  unless the appropriate State officials
  have concurred or waived concurrence
  pursuant to § 124.24. In the case of a
  penr.it issued to an applicant in an
  approved State, the State Director may:
    (1) Revoke any  existing permit as of
  the effective date  of the EPA-issued
  modified permit; and
    (2) Co-sign the modified permit, if the
  Director has indicated an intent to do so
  in the written concurrent.
    (e) Appeals of determinations under
  section 301(h) shall be governed by Part
  124, Subpart I.

  § 124.56  Special procedures for decisions
  on thermal variances (section 316{a)).
    (a) Except as provided in § 124.53 the
  only issues connected with issuance of a
  particular permit on which EPA will
  make a final Agency decision before the
  final permit is issued under § 124.61 are
  whether alternative effluent limitations
  would be justified under section 316(a)
  and whether cooling water intake
  structures will use the best available
  technology under section 316(b),
 "Applicants who wish an early decision
  on these issues should request it and
  furnish supporting reasons at the time
  their applications are filed under
  § 124.51(b)(6). The Regional
 Administrator will then decide whether
 or not to grant it. If it is granted, both the
 early decision on section 316 (a) or (b)
 issues and the grant of the balance of
 the permit shall be considered permit
 issuance under these regulations, and
 shall be subject to  the same
 requirements of public notice and
 comment and the same opportunity for
 an evidentiary hearing.
   (b) If the Regional Administrator, on
 review of the administrative record,
 determines that the information
 necessary to decide whether or not an
 alternative effluent limitation under
 section 316(a) should be granted to a
 source is not likely to be available by
 the time a decision on "permit issuance
 must be made, the Regional
 Administrator may issue a permit under
 § 124.61 for a term of up to Eve years.
 This permit shall require that the point
 source achieve the effluent limitations
 initially proposed for the control of the
 thermal component of the discharge no
later than the date otherwise required
by applicable legal requirements.
However, the permit shall also afford
the permittee an opportunity to file a
  demonstration under section 316(a) after
  conducting such studies as are required
  under Part 125, Subpart H.
  [Comment: A new discharger may not
  commence operation in violation of the
  thermal effluent limitations which are
  initially proposed unless and until the section
  316(a) variance request is finally approved.]
    (c) Any hearing scheduled under
  paragraph (a) shall be publicized as
  required by § 124.41  and shall be
  scheduled enough in advance of the
  final compliance date specified hi the
  permit to allow the permittee to take
  necessary measures  to comply by that
  date in the event its request for
  modification of thermal limits is
  eventually denied after the hearing is
  concluded.
    (d) Whenever the Regional
  Administrator defers the determination
  under section 316(a), any determination
  under section 316(b)  may be  deferred.

  Subpart G—Issuance and Effective
  Date of Permit

  § 124.61   Issuance and effective date of
  permit; stays.
   (a)(l) After the close of the public
  comment period (including any public
  hearing period] required by § 124.42 on a
  draft permit, the Regional Administrator
  shall prepare and issue a final permit
  and shall serve notice as provided in
  § 124.80(c) of that action of the
  applicant, and on each person who has
  submitted written comments or    -   -
 requested notice of the issuance of the
 final permit This notice shall include
 reference to the procedures available to
 contest the permit terms under § 124.74
 et seq.
 [Comment: A statement signed by a person in
 the Regional Office that an attached list of  -
 persons were mailed the notice of issuance of
 the final permit is sufficient to meet the
 requirements of § 124.80{c). The mailed notice
 need not be sent certified mail.]
   (b) Any final permit issued under
 paragraph (a) constitutes final action of
 EPA, when it becomes effective under
 paragraph (c) unless a request for an
 evidentiary hearing under § 124.75 or a
 panel hearing under § 124.114 is granted.
   (c)  Except as provided in paragraphs
 (d), (e) and (f), a permit or modification_
 shall  become effective 30 days after the
 service of notice of the final permit
 under paragraph (a), unless a  later
 effective  date is specified in the permit.
  (d)  If a request for an evidentiary
 hearing is granted under § 124.75 or
 § 124.111(a)(3) regarding the initial
permit issued for a new source or a new
discharger, or if a petition for review of
the denial of a request for an
evidentiary hearing with respect to such
  a permit is timely filed with the
  Administrator under 1124.101, the
  applicant shall be without a permit for
  the proposed new source or new
  discharge, pending final Agency action
  under § 124.101.
   (e){l) If a request for a hearing is
  granted hi whole or hi part under
  § 124.75 or § 124.111(a)(3) regarding a
  permit for an existing source, or if a
  petition for review of the denial of a
  request for an evidentiary hearing with
  respect to such a permit is timely filed
  with the Administrator under § 124.101,
  the force and effect of the contested
  provisions of the final permit shall be
  stayed and shall not be subject to
  judicial review under section 509(b) of
  the Act, pending final Agency action
  under § 124.101. The Regional
  Administrator shall serve notice, in
  accordance with § 124.75, on the
  discharger and all parties identifying the
  terms of the final permit which are not
  contested and therefore  are enforceable
  obligations of the discharger.
   (2] 'Where effluent limitations are
  contested, but the underlying control
  technology is not, the notice shall
  identify the installation of the
  technology in accordance with the
  permit compliance schedules (if
  uncontested) as an uncontested,
  enforceable obligation of the permit
   (3) Where a combination of
  technologies is contested, but a portion
  of the combination is not contested,
  such portion shall be identified as
 uncontested if compatible with the
 combination of technologies proposed
 by the requester.
   (4) A term or condition, otherwise
 uncontested, shall not be identified as
 uncontested if it is inseverable  from a
 contested term or condition.
   (5) Uncontested terms  and conditions
 shall become enforceable 30 days after
 the date of such notice, provided,
 however, that if a request for an
 evidentiary hearing on a  term or
 condition was denied and the denial is
 appealed under § 124.101, then such
 term or condition shall become
 enforceable upon the date of the notice
 of the Administrator's decision  on the
 appeal if the denial is affirmed,  or shall
 be stayed, in accordance with this
 section, if the Administrator reverses
 the denial and grants the evidentiary
 hearing on such permit term.
  (6) Uncontested terms and conditions
 shall include:
  (i) Permit requirements for which an
evidentiary hearing has been requested
but the hearing has been denied:
  (ii) Preliminary design and
engineering studies or other
requirements necessary to achieve the

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               Federal Register / Vol. 44, No.  Ill / Thursday, June 7, 1979  / Rules and Regulations
                                                                           32937
  final permit term or conditions which do
  not entail substantial expenditures;
    (iii) Permit conditions which will have
  to be met regardless of which party
  prevails at the evidentiary hearing;
    (iv) Where the discharger proposed a
  less stringent level of treatment than
  that contained in the final permit, any
  permit conditions appropriate to meet  -
  the levels proposed by the discharger, if
  the measures required to attain such
  less stringent level of treatment are
._ consistent with the measure required to
  attain the limits proposed by the
  Agency; and
    (v) Construction activities such as
  segregation of waste streams or
  installation of equipment which would
  partially meet the final permit terms or
  conditions and coukfalso be used to
  achieve the discharger's proposed
  alternative terms and conditions.
    (7) If at any time after a hearing is
  granted and after the Regional
  Administrator's notice under paragraph
  (1), it becomes clear that a permit
  requirement is no longer contested, any
  party may request the Presiding Officer
  to issue an order identifying the
  requirements as uncontested. The
  requirement identified in such order
  shall become enforceable 30 days after
  the issuance of the  order.
    (f) Where an evidentiary hearing is
  granted under § 124.75 on an application
  for a renewal of an existing permit, all
  provisions of the existing permit,  as well
  as uncontested provisions of the new
  permit, shall continue in full force and
  effect until final Agency action under
  § 124.101.  [See § 122.12(b]J. Upon written
  request from the applicant, the Regional
  Administrator may  modify the existing
  permit to delete requirements which
  unnecessarily duplicate uncontested
  provisions of the new permit
  [Comment: The following examples
  demonstrate the application of § 124.61(6)
  and(f):
   Example  I: The discharger requests and is
  granted an evidentiary hearing on its
  contention that the EPA's proposed efflnent
  limitation for total suspended solids (TSS) at
  level X is too stringent and should be relaxed
  to level Y. Treatment technology A attains
  level Y whereas technology A phis B is .
  necessary for level X. In this case, the
  discharger's obligation to install technology
 A is effective 30 days after service of the
-notice trader S 124.75(bJ and this obligation is
 not stayed by virtue of the contest as to the
 need for additional technology B. The
 discharger would be required to comply with
 all portions of the compliance schedule
 relating to design, construction and
 attainment of technology A, but would obtain
 a stay of such provisions with respect to"
 technology B. This is true even if the schedule
 does not separate the two technologies. The
 discharger meat of course also perform all
 basic work such as segregation of waste
 streams, site preparation, monitoring,
 reporting, and initial construction because
 this will be necessary regardless of the
 outcome of the contest The additional
 obligations of technology B are stayed.
   Example 2: The same facts as in Example 1
 except that a public interest group has also
 requested and been granted participation in
 the evidentiary hearing. The group contends
 that TSS level X is too lenient and should be  -
 tightened to level Z. Treatment technology C,
 which is inconsistent with both A and B
 technologies, is required for level Z. In this
 case the discharger's obligation to install
 technologies A, A and B, or C are all stayed.
 The discharger's obligations to perform basic
 work such as segregation of waste streams,
 site preparation, monitoring, reporting, and
 perhaps initial construction are not stayed
 because they are unaffected by the contest
   Example 3: The discharger requests an
 evidentiary hearing on two issues: that the
 permits total suspended solids fTSS] limit
 and pH limit are each too strict The Regional
 Administrator grants the evidentiary hearing
 on the TSS issue but denies it on the pH
 claim. The TSS and pH technologies are
 independent and severable and the
 discharger does not appeal the denial of
 hearing on the pH claim. In this case the
 discharger's obligation to install the pH
 control technology is not stayed and becomes
 effective 30 days after service of the Regional
 Administrator's notice under § 124.75(b). If
 the underlying technology for the TSS limit is
 at issue, the TSS limitation is stayed.
 However, as described in Examples 1 and 2,
 the discharger's obligations to perform aH
 work unaffected by the stay (e.g^, segregation
 of waste streams, site preparation, initial
 construction, etc.) are not stayed.
   Example 4: The same facts as in Example 3
 except that the equipment required for
 attaining the pH limit is achieved by the
 installation of the TSS equipment In this
 case the Regional Administrator may
 determine mat the pH permit term is
 inseverable from the TSS contest and thus
 the limits for both parameters would be
 stayed by virtue of the hearing on TSS,
 although as noted in the preceding examples.
 the discharger's obligations to perform all
 work unaffected by the stay are not stayed
 Note however, that if the pH limit is
 achievable in an inexpensive and temporary
 alternative such as additional chemical
 treatment in the discharger's existing
 equipment then the Regional Administrator
 may determine that the pH permit term is
 severale and refuse to stay the pH term.
  Example & The same facts as in Example 3
 except that the discharger appeals (to the
Administrator) the Regional Administrator's
denial of the evidentiary hearing on Issue No.
2 (the pH limit). In this case the pH limitation
is also stayed (with the exceptions noted in
the preceding examples) at least until the
Administrator's decision on such appeal If
the Administrator affirms the denial of the
evidentiary hearing on the pH limit then 19011
service of notice under § 124J5(b) the stay
terminates. If the Administrator reverses and
thus grants the evidentiary hearing on the pH
 term then the stay continues until final
 Agency action.

   (g) When issuing a finally effective
 permit under Subpart I, the Regional
 Administrator shall extend the permit
 compliance schedule to the extent
 required by a stay under this section;
 provided that no such extension shall be
 granted which would:   •
   (1) Result in the violation of an
 applicable statutory deadline; or
   (2) Cause the permit to expire more
 than five years after issuance under
 §124.61(a).
 [Comment: Extensions of compliance
 schedules will not automatically be granted
 for a period equal to the period the stay is in
 effect lor an effluent limitation. For example.
 if both the Agency and the discharger agree
 that a certain treatment technology is
 required by tbe Act where guidelines do not
 apply, but a hearing is granted to consider the
 effluent limitations which the technology will
 achieve, requirements regarding installation
 of the underlying technology will not be
 stayed during the hearing. Thus, unless the
 hearing extends beyond the final compliance
 date in the permit it will not ordinarily be
 necessary to extend the compliance schedule.
 However, where application of an underlying
 technology is challenged, the stay for
 installation requirements relating to that
 technology would extend for the duration of
 the hearing.]

   (h) For purposes of judicial review
 under section 509(b) of the Act. final
 administrative action on a permit does
 not occur unless and until a party has
 requested and exhausted its
 Administrative remedies under Subpart
 H and I and §124.101. Any party which
 neglects or fails to seek review under
 § 124.101 thereby waives its opportunity
 to exhaust available Agency remedies.

 § 124.62  Final ifr»!ii/nnwntaf Impact
 statement
   No final permit for a new source shall
 be issued until at least 30 days after the
 date of issuance of a final
 Environmental Impact Statement if one
 is required  under 40 CFR § 6.916.

 § 124£3   Response to comments.
   (a) At the time any final permit is
 issued, the Director shaD also prepare a
 response to comments for that permit -
 This response to comments shall
 contain:
  (1) A specific indication of which
 provisions of the draft permit have been
 changed in  the final permit, and the
 reasons  for the change; and
  (2) A brief description of and response
 to all significant comments on the draft
permit raised during the public comment
period, or during any hearing.
  [bj For EPA-issued permits any
documents cited hi the response to

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  32933       Federal  Register / Vol. 44, No. Ill / Thursday, June 7, 1979  / Rules and Regulations
  comments shall be included in the
  administrative record for the final
  permit as defined in § 124.64.
  [Comment: If new points are raised or new
  material supplied during the public comment
  period, EPA may document its response to
  those matters by adding new material to the?
  administrative record.]

  § 124.54  Administrative record for final
  permit issued by EPA.
    (a) Decisions to issue a final permit
  under § 124.61 shall be made on  the
  basis of the administrative record
  defined in this section.
    (b) The administrative record for any
  final permit shall consist of the
  administrative record for the draft
  permit and
    (1) All comments received during the
  public comment period required  by
  § 124.42;
    (2] The tape or transcript of any
  hearing(s) held under § 124.42;
    (3) The response to comments
  required by § 124.63;
    (4} Any final Environmental Impact
  Statement;
    (5) Other documents contained in the
  supporting file for the permit, including
  correspondence, telephone and meeting
  memoranda, compliance reports, etc.;
  and
    (6) The final permit.
  These documents shall be added to the
  record as soon as feasible after their
  receipt or publication by the Agency.
    (c)(l) This section applies to all final
  permits where the draft permit was
  subject to the administrative record
  requirements of § 124.35.
   (2) Whether or not a draft permit was
  formulated or final permit was issued
  subject to this Subpart, the Regional
 Administrator, at any  time prior to the
 rendering of an initial  decision in an
 evidentiary hearing on that permit, may
 withdraw the permit in whole or in part
 and formulate a new draft permit under
 § 124.31 addressing the portions so
 withdrawn. The new draft permit shall
 proceed through the same process of
 public comment and opportunity for a
 public hearing, etc. as would apply to
 any other draft permit  subject to this
 Part.  Any portions of the permit which
 are not withdrawn and which are  not
 stayed under § 124.61 shall remain in
 effect.
  (d)  Material readily available at the
 issuing Regional Office or published
 material which is generally available,
 and which is included in the
 administrative record under the
 standards of this section or of § 124.63
 ("Response to Comments"), does not
need to be physically included in the
  same file as the rest of the record as
  long as it is specifically referenced in
  the fact sheet or statement of basis or in
  the response to comments.

  Subpart H—Evidentiary Hearings for
  EPA-lssued Permits

  §124.71  Applicability.
    The regulations in this Subpart govern
  all evidentiary hearings conducted by
  EPA under section 402 of the Act, except
  as otherwise provided in Subpart I. An
  evidentiary hearing is available to
  challenge any permit issued under
  § 124.61 except for a general permit.
  Persons affected by a general permit
  may not challenge the terms and
  conditions of a general permit but may
  instead apply for an individual permit
  under § 124.1J as authorized in § 122.48
  and then request an evidentiary hearing
  on the issuance or denial of an
  individual permit.

  §124.72  Definitions.
    For the purpose of this Subpart H and
  I, the following definitions are
  applicable:
    (a) "Judicial Officer" means a
  permanent or temporary employee of the
  Agency appointed as a Judicial Officer
  by the Administrator under these
  regulations and subject to the following
  conditions:
    (1) A Judicial Officer shall be a
  licensed attorney. A Judicial Officer
  shall not be employed in the Office of
.Enforcement or the Office of Water and
  Waste Management, and shall not
 participate in the consideration or
 decision of any case in which he pr she
 performed investigative or prosecutorial
 functions.
   (2) The Administrator may delegate
 any authority to act in an appeal of a
 given case under this Subpart to a
 Judicial Officer who, in addition, may
 perform other duties for EPA, provided
 that that delegation shall not preclude a
 Judicial Officer from referring any
 motion or case to the Administrator
 when the Judicial Officer decides
 referral would be appropriate. The
 Administrator, in deciding a case, may
 consult with and assign the drafting of
 preliminary findings of fact and
 conclusions and/or a preliminary
 decision to any Judicial Officer.
   (b) "Party" means the EPA trial  staff
under § 124.78 and any person whose
request for a hearing under § 124.74 or
whose request to be admitted as a party
or to intervene under § § 124.79 or
124.117 has been granted.
  (c) "Presiding Officer" means an
Administrative Law Judge appointed
  under 5 U.S.C. § 3105 and designated to
  preside at the hearing.
    (d) "Regional Hearing Clerk" means
  an employee of the Agency designated
  by a Regional Administrator to establish
  a repository for all books, records,
  documents and other materials relating
  to hearings under this Subpart. A
  Regional Hearing Clerk may be the same
  person as the Record Clerk required by
  § 124.35.

  § 124.73  Filing and submission of
  documents.
    (a) All submissions authorized or
  required to be filed with EPA under this
  Subpart shall be filed with the Regional
  Hearing Clerk, unless the regulations
  provide otherwise. Submissions shall be
  considered filed on the date on which
  they are mailed or delivered in person to
  the Regional Hearing Clerk.
   {b) All such submissions shall be
  signed by the person making the
  submission, or by an attorney or other
  authorized agent or representative.
   (c)(l) All data and information
  referred to or in any way relied upon in
  any such submissions shall be included
  hi full and may not be incorporated by
  reference, unless previously submitted
  as part of the administrative record in
  the same proceeding, except for State or
  Federal statutes  and regulations, judicial
  decisions published in a national
  reporter system,  officially issued EPA
  documents of general applicability, and
  any other material which is generally
  available or of peripheral relevance, jn
 which case the party relying on it shall
 file a written undertaking to make
 copies available"as directed by the
 Regional Administrator or the Presiding
 Officer.
   (2) If any part of the material
 submitted is in a foreign language, it
 shall be accompanied by an English
 translation verified under oath to be
 complete and accurate, together with the
 name, address, and a brief statement of
 the qualifications of the person making
 the translation. Translations of literature
 or other material in a foreign language
 shall be accompanied by copies of the
 original publication.
   (3) Where relevant data or
 information is contained in a document
 also containing irrelevant matter, either
 the irrelevant matter shall be deleted
 and only the relevant data or
 information shall  be submitted or the .
 relevant portions  shall be briefly
 indicated.
   (4) The failure to comply with the
 requirements of this section or any other
requirement in this Subpart may result
in the exclusion from consideration of
any portion of the submission which

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              Federal Register  / VoL 44,  No. Ill  /Thursday, June 7, 1979 / Rules and Regulations      32939
 fails to comply. If the Regional
 Administrator or the Presiding Officer,
 on motion by any party or sua sponte,
 determines that a submission fails to
 meet any requirement of this Subpart
 the Regional Administrator or Presiding
 Officer shall direct the Hearing Clerk to
 return the submission with a copy of the
 applicable regulations indicating those
 provisions not complied with in the
 submission. The party proposing to
 submit any materials previously rejected
 shall have 14 days to correct the errors
 and resubmit unless the Regional
 Administrator or the Presiding Officer
 determines that there is good cause to
 allow a longer time.
   (d) The filing of a submission shall not
 mean or imply that it in fact meets all
 applicable requirements or that it
 contains reasonable grounds for the
 action requested or that the action
 requested is in accordance with law.
   (e) The original of all statements and
 documents containing factual material,
 data, or other information shall be
 signed in ink and shall state the name,
 address and the representative capacity
 of the person  making the submission.
 The person signing shall comply with
 the signature  and certification
 procedures of § 122.5.

 § 124.74  Requests for evidentiary hearing.
   (a) Within 30 days following the
 service of notice of the Regional
 Administrator's issuance of a final
 permit under § 124.61, any interested
 person may submit a request to the
 Regional Administrator under paragraph
 (b) for an evidentiary hearing to
 reconsider or  contest the terms of that
 permit. If such a request is submitted by
 a person other than the permittee, the
 person shall simultaneously serve a
 copy .of the request on the permittee.
  (b) In accordance with § 124.76, such
 requests shall state each legal or factual
 question alleged to be at issue, and their
 relevance to the permit decision,
 together with a designation of the
 specific factual areas to be adjudicated
 and the hearing time estimated to be
 necessary for  that adjudication.
 Information supporting the request or
 other written document relied upon to
 support the request shall be submitted
 as required by § 124.73 unless it is
 already in the  administrative record
 required by § 124.64.
 [Comment This paragraph allows the
 submission of requests for evidentiary
 hearings even though both legal and factual
 issues may be raised, or only legal issues
may be raised. la the latter case, because no
 factual issues were raised, the Regional
Administrator would be required to deny the
request. However, on review of the denial.
 the Administrator is authorized by
 §I24.IOI(a)fI} to review policy or legaf
 conclusions of the Regional Administrator.
 EPA is requiring an appeal to the
 Administrator even of purely legal issues
 involved in a permit decision to ensure that
 the Administrator will have an opportunity to
 review any permit before it will be final and
 subject to judicial review.]

   (c) Such requests shall also contain:
   (1) The name, mailing address and
 telephone number of the person making
 such request;
   (2) A clear and concise factual
 statement of the nature and scope of the
 interest of the requester;
   (3) The names and addresses of all
 persons whom the requester represents;
 and
   (4} A statement by the requester that,
 upon motion of any party, or sua sponte
 by the Presiding Officer and without
 cost or expense to any other party, the
 requester shall make available to appear
 and testify, the following:
   (i) Hie requester;
   (ii) All persons represented by the
 requester; and
   fjui) All officers, directors, employees,
 consultants and agents of the requester
 and the persons represented by the
 requester.
   (5) Specific references to the
 contested permit terms and conditions,
 as well as suggested revised or
 alternative permit terms and conditions
 (not excluding permit denial) which, in .
 the judgment of the requester, would be
 required to implement the purposes and
 policies of the Act.
   (6) In the case of challenges to the
 application of control or treatment
 technologies identified in the statement
 of basis or fact sheet, identification of
 the basis for the objection, and the
 alternative technologies or combination
 of technologies which the requester
 believes are necessary to meet the
 requirements of the Act
   (7) Specific identification of each of
 the discharger's obligations which
 should be stayed if the request is
 granted. If the request contests more
 than one permit term or condition then
 each obligation which is proposed to be
 stayed must be referenced to the
 particular contested term warranting the
 stay.
  (d) The Regional Administrator [upon
notice to all persons who have already
submitted hearing requests) may extend
the time allowed for submitting hearing
requests under this section for good
cause.              -  -
 S 124.75  Decision on request for a
 hearing.                               ,
  (a) Following the expiration of the
 time allowed by § 124.74 for submitting
 a request for an evidentiary hearing, the
 Regional Administrator shaD determine
 whether the request shall be granted,
 denied or granted in part and denied in
 part The Regional Administrator shall
 grant a request either in whole or in part
 only if the request conforms to the
 requirements of § 124.74 and sets forth
 material issues of fact relevant to the
 issuance of the permit
  (b) If the Regional Administrator
 grants a request for an evidentiary
 hearing, in whole or in part, the Regional
 Administrator shall state and identify
 the permit terms and conditions which
 have been contested by the requester
 and for which the evidentiary hearing
 has been granted. Permit terms and
 conditions which are not contested or
 for which the Regional Administrator
 has denied the  hearing request shall not
 be affected by or considered at the
 evidentiary hearing. The Regional
 Administrator shall specify these terms
 end conditions in writing and serve
 notice in accordance with 5 124.61(e).
  (c) If the Regional Administrator
 grants a request for an evidentiary
 hearing in whole or in part in regard to
 a particular proposed permit then any
 other request for an evidentiary hearing
 in regard to that permit shall be treated
 as a request to  be a party and the
 Regional Administrator shall grant any
 'such request which meets the
 requirements of paragraph (a) of this
 section.
  (d) If a request for a hearing is denied
 in whole or in part the Regional
 Administrator shall briefly state the
 reasons. That denial is then subject to
 review by the Administrator under
 {124.101.

 § 124.76  Obligation to raise Issues and
 submit evidence before a final permit Is
 Issued.
  No evidence  shall be submitted by
 any party to a hearing under this
 Subpart that was not submitted to the
 administrative record required by
 § 124.64 unless  good cause is shown for
 the failure to submit it No issues shall
 be raised by any such party that were
 not submitted to the administrative
 record required by § 124.64 unless good
 cause is shown for the failure  to submit
 them. Good cause includes the case
where  the party seeking to raise the new
issues, or introduce new information,
shows  that it could not reasonably have
ascertained the issues or made the
information available within the time
required by § 124.43.

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  32940'      Federal Register /  Vol. 44, No. Ill / Thursday, June 7, 1979 / Rules  and Regulations
  § 124.77  Notice of the grant of a hearing.
    Public notice of the grant of an
  evidentiary hearing regarding a permit
  shall be given as provided in § 124.41(h)
  and in addition by mailing a copy to all
  persons who commented on the draft
  permit or submitted a request for a
  hearing. Before the issuance of such
  notice the Regional Administrator shall
  designate the Agency trial staff and the
  members of the decisional body (as
  defined in § 124.78).

  §124.78  Ex parte communications.
    (a](l) No interested person outside the
  Agency or member of the Agency trial
  staff shall make or knowingly cause to
  be made to any members of the
  decisional body an ex parte
  communication relevant to the merits of
  the proceedings.
    (2) No member of the decisional body
  shall make or knowingly cause to be
  made  to any interested person outside
  the Agency or member of the Agency
  trial staff an ex parte communication
  relevant to the merits of the
  proceedings.
    (3) A member of the decisional body
  who receives or who makes or
  knowingly causes to be made a
  communication prohibited by this
  subsection shall file with the Regional
  Hearing Clerk, for the public record of
  the hearing, all such written
  communications or memoranda stating
  the substance of all such oral
  communications together with all       ,
  written responses and memoranda
  stating the substance of all oral
  responses.
   (b) Upon receipt by any members of
  the decision making body of an ex parte
  communication knowingly made or
 knowingly caused to be made by a party
 in violation of this section, the person
 presiding at the stage of the hearing then
 in progress may, to the extent consistent
 with justice and the policy of the Act
 require the party to show cause why its
 claim or interest in the proceedings
 should not be dismissed, denied,
 disregarded or otherwise adversely
 affected on account of such violation.
   (c) The prohibitions of this section
 begins to apply upon issuance of the
 notice of the grant of a hearing under
 § 124.77 or § 124.116. This prohibition
 terminates at the date of final Agency
 action.
  (d) For purposes of this section, the
 following definitions shall apply:
  (1) "Agency trial staff means those
 Agency employees, whether temporary
 or permanent, who have been
 designated by the Agency under § 124.77 .
or § 124.116 as available to investigate,
litigate and present the evidence.
  arguments and position of the Agency in
  the evidentiary hearing or non-
  adversary initial licensing hearing.
  Appearance as a witness does not
  necssarily require a person to be
  designated as a member of the Agency
  trial staff;
    (2) "Decisional body" means any
  Agency employee who is or may
  reasonably be expected to be involved
  in the decisional process of the
  proceeding including the Administrator,
  Judicial Officer, Presiding.Officer, the
  Regional Administrator (if he does not
  designate himself as a member of the
  Agency trial staff) and any of their
  direct support staff participating in the
  decisional process. In the case of a
  nonadversary initial licensing
  proceeding, the decisional body shall
  also include the panel members whether
  or not permanently employed by the
  Agency;
   (3) "Exparte communication" means
  any communication written or oral
  relating to the merits of the proceeding
  between the decisional body and an
  interested person outside the Agency or
  the Agency trial staff where such
  communication was not originally filed
  or stated uVthe administrative record or
  in the hearing. Ex parte communications
  do not include:
   (i) Communications between^Agency
  employees other than between the
 Agency trial staff and the members of
 the decisional body;
   (ii) Discussions between the
 decisional body and either         '
   (A) Interested persons outside the
 Agency; or
   (B) The Agency trial staff;
 If all parties have received prior written
 notice of such proposed communications
 and have been given the opportunity to
 be present and participate therein.
   (iii) Communications between Agency
 employees including trial staff but not
 the decisional body and any persons
 outside the Agency including interested
 persons outside the Agency.
   (4)  "Interested person outside the
 Agency" includes the permit applicant,
 any person who filed written comments
•in the proceeding, any person who
 requested the hearing, any person who
 requested to participate or intervene in
 the hearing, any participant or party in
 the hearing and the attorney of record
 for such persons.

 § 124.79 Additional parties and issues.
  (a) Any person may submit a request
to be admitted as a party within 15 days
after the date of mailing, publication or
posting of notice of the grant of an
evidentiary hearing, whichever occurs
last. The Presiding Officer shall grant
 such requests as meet the requirements
 of § 124.74 and § 124.76. Such request
 must specifically identify those issues
 already raised which the requester
 seeks to address at the hearing.
   (b) After the expiration of the time
 prescribed in paragraph (a) any person
 may file a motion for leave to intervene
 as a party. This motion must meet the
 requirements of § § 124.74 and 124.76
 and set forth the grounds for the
 proposed intervention provided,
 however, that no factual or legal issues
 in addition to those raised by timely
 hearing requests may be proposed
 except for good cause. Any motion to
 intervene must also contain a verified
 statement showing good cause for the
 failure to file a timely request to be
 admitted as  a party. The Regional
 Administrator, or the Presiding Officer if
 one has been assigned, shall grant such
 motion only  upon an express finding on
 the record that:
   (1) Extraordinary circumstances
 justify granting the motion;
   (2) The intervener has consented to be
 bound by:
   (i) Prior written agreements and
 stipulations by and between the existing *
 parties; and
   (ii) All orders previously entered in
 the proceedings; and
   (3) Intervention will not cause undue
 delay or prejudice the rights of the
 existing parties.

 § 124.80 Filing and service.
   (a) An original and  one (1) copy of all
 written submissions relating to an
 evidentiary hearing filed after the notice
 of hearing is  published shall be filed
 with the Regional Hearing Clerk.
   (b) The party filing any submission  -
 shall serve a  copy of such submission
 upon the Presiding Officer and each
 party of record. Service shall be by mail
 or personal delivery.
   (c) Every submission shall be
 accompanied by an acknowledgement
 of service by  the person served or proof
 of service in the form of a statement of
 the date, place, time, and manner of
 service and the names of the persons
 served, certified by the person who
 made service.
 [Comment: A signed statement that an
 attached list of persons were mailed the
 submission is sufficient to meet the
 requirements of this paragraph. Certified mail
 is not required.]

  (d) The Regional 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.             f

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              Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979 / Rules and Regulations       32941
  §124.81  Assignment of administrative law
  judge.
    No later than the date of mailing,
  publication or posting of the notice of a
  grant of an evidentiary hearing,
  whichever occurs last, the Regional
  Administrator shall refer the proceeding
  to the Chief Administrative Law Judge
  who shall make an assignment of an
  Administrative Law Judge to serve as
  Presiding Officer for the hearing.

  § 124.82  Consolidation and severance.
    (a) The Administrator, Regional
  Administrator or Presiding Officer, has
  the discretion to consolidate, in whole
  or in part, two or more proceedings to be
  held under this  Subpart, whenever it
  appears that a joint hearing on any or all
  of the matters in issue would expedite or
  simplify consideration of the issues and
  that no parry would be prejudiced
  thereby. Consolidation shall not affect
  the right of any party to raise issues that
  might have been raised had there been
  no consolidation.
    (b) If the Presiding Officer determines
  consolidation is not conducive to an
  expeditious, full and fair hearing, any
  party or issues may be severed and
  heard separately.

  §124.83  Prehearfng conferences.
    (a) The Presiding Officer, suasponte,
  or at the request of any party, may
  direct the parties or their attorneys or
  duly authorized representatives to
  appear at a specified time and place for
  one or more conferences before or
.  during a hearing, or to submit written
  proposals or correspond for the purpose
  of considering any of the matters set
  forth In paragraph (c) of this section.
   (bj The Presiding Officer shall allow a
  reasonable period before the hearing
  begins for the orderly completion of all
  prehearing procedures and for  the
  submission and disposition of all
 prehearing motions. Where the
 circumstances warrant, the Presiding
 Officer shall caD a prehearing
 conference to  inquire into the use of
 available procedures contemplated by
 the parties and the time required for
 their completion, to establish a schedule
 for their completion, and to set a
 tentative date for beginning the hearing.
   (c) In conferences held, or in
 suggestions submitted, under paragraph
 (a), the following matters 'may be
 considered:
   (1) The necessity or desirability of
 simplification,, clarification,
 amplification or limitation of the issues.
   (2) The admission of facts and of the
genuineness of documents, and the
possibility of stipulations with respect to
facts.
   (3) The consideration of and ruling
 upon objections to the introduction into
 evidence at the hearing of any written
 testimony, documents, papers, exhibits,
 or other submissions proposed by a
 party, except that the administrative
 record required by § 124.64 shall be
 received in evidence subject to the
 provisions of § 124.85(d)(2).
 Notwithstanding the foregoing, at any
 time before the end of the hearing any
 party may make, and the Presiding
 Officer shall consider and rule upon,
 motions to strike testimony or other
 evidence other than the administrative
 record on the grounds of relevance,
 competency or materiality.
   (4) The identification of matters of
 which official notice may be taken.
   (5) The establishment of a schedule
 which includes definite or tentative
 times for as many of the following as are
 deemed necessary and proper by the
 Presiding Officer;
   (i) The submission of narrative
 statements of position on each factual
 issue in controversy;
   (ii) The submission of written
 testimony and documentary evidence
 (e.g., affidavits, data, studies, reports
 and any other type of written material)
 in support of such statements; or
   (iii) Written requests to any party for
 the production of additional
 documentation, data, or other
 information relevant and material to the'
 facts in issue.
   (6) The grouping of participants with
 substantially like interests for purposes
 of eliminating duplicative or repetitive
 development of the evidence and
 making and arguing motions and
 objections.
   {7} Such other matters as may
 expedite the hearing or aid in the
 disposition of the matter.
   (d) At a prehearing conference or
 within some reasonable time sat by the
 Presiding Officer, each party shall make
 available to all other parties the names
 of experts and other witnesses it
 expects to call. At it» discretion or at the
 request of the Presiding Officer, a party
 may include a brief narrative summary
 of any witness's anticipated testimony.
 Copies  of any written testimony,
 documents, papers, exhibits, or
 materials which a party expects to
 introduce into evidence, and the
 administrative record required by
 § 124.64, shall be marked for
 identification as ordered by the
 Presiding Officer. Witnesses, proposed
 written testimony and other evidence
 may be added or amended only upon a
 finding by the Presiding Officer that
 good cause existed for failure to
•introduce the additional or amended
 material within the time specified by the
 Presiding Officer. Agency employees
 and consultants shall be made available
 as witnesses by the Agency to the same
 extent that production of such witnesses
 is required of other parties under
 § 124.74(c)(4). (See also } 124.85{b)(16}).
   (e) The Presiding Officer shall prepare
 a written prehearing order reciting the
 actions taken at the prehearing
 conference and setting forth the
 schedule for the hearing, unless a
-transcript has been taken and
 accurately reflects these matters. The
 order shall include a written statement
 of the areas of factual agreement and
 disagreement and of the methods and
 procedures to be used in developing the
 evidence and the respective duties of
 the parties in connection therewith. This
• order shall control the subsequent
 course of the hearing unless modified by -
 the Presiding Officer for good cause
 shown.

 § 124.84  Summary determination.
   (a) Any party to an evidentiary
 hearing may move with or without
 supporting affidavits and briefs for a
 summary determination in his or her
 favor upon all or any part of the issues
 being adjudicated on the basis that there
 is no genuine issue of material fact for
 determination. Any such motion shall be
 filed at least 45 days before the date set
 for the hearing, except that upon good
 cause shown such motion may be filed
 at any time before the close of the
 hearing.
   (b) Any other parry may, within 30
 days after service of the motion, file and
 serve a response to it or a counter-
 motion for summary determination.
 When a motion for summary
 determination is made and supported, a
 party opposing the motion may not rest
 upon mere allegations or denials but
 must show, by affidavit or by other
 materials subject to consideration by the
 Presiding Officer, that there is a genuine
 issue of material fact for determination
 at the hearing.
  (c} Affidavits shall be made on
 personal knowledge, shall set forth facts
 that would be admissible hi evidence
 and shall show affirmatively that the
 affiant is competent to testify to the
matters stated therein.
  (d) The Presiding Officer has the
discretion to set the matter for oral
argument and call for the submission of
proposed findings, conclusions, briefs or
memoranda of law. The Presiding
Officer shall rule on the motion not more
than 30 days after the date responses to
the motion are filed under paragraph (b)
of this section.

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  32B42       Federal Register  / Vol. 44,  No. Ill  / Thursday, June 7, 1979  / Rules and Regulations
    (e) If all issues of material fact are
  decided on a motion for summary
  determination, no hearing will be held
  and the Presiding Officer shall
  thereupon prepare an initial decison
  under § 124.89. If the motion for
  summary determination is denied or if
  only a partial summary determination is
  granted, the Presiding Officer shall issue
  a memorandum opinion, and order,
  interlocutory in character, and the
  hearing will proceed on the remaining
  issues. Appeals from interlocutory
  rulings are governed by § 124.90.

  § 124.85 Hearing procedure.
    (a){l) The permit applicant always
  bears the burden of persuading the
  Agency that a permit authorizing
  pollutants to be discharged should be
  issued and not denied. This burden does
  not shift
    (2) The Agency has the burden of
  going forward to present an affirmative
  case in support of any challenged term
  or condition of a final permit
  [Comment: In many cases the documents
  contained in the administrative record, in
  particular the fact sheet or statement of basis
  and the response to comments should
  adequately discharge this burden.]
    (3) Any hearing participant who, by
  raising material issues of fact, contends:
    (i) That particular terms, conditions or
  requirements in the  permit are improper
  or invalid, and who desires either:
   (A) The inclusion of new or different
  terms, conditions or requirements; or
   (B) The deletion of such terms,
  conditions or requirements; or
   (ii) That the  denial or issuance of a
 permit is improper or invalid, shall have
 the burden of going forward to present
 an affirmative  case upon the issues.
   (b) The Presiding Officer shall have
 the authority and duty to conduct a fair
 and impartial hearing, to take action to
 avoid unnecessary delay in the
 disposition of the proceedings, to
"maintain order and all powers
 necessary to these ends, including the
 power to:
   (1) Establish the date, time and place
 of hearings and conferences;  '
   (2) Establish  the methods and
 procedures to be used in the
 development of the evidence;
   (3) Prepare, after considering the
 views of the participants, written
 statements of areas of factual
 disagreement among the participants;
   (4) Hold conferences to settle,
 simplify, determine or strike any of the
issues in a hearing, or to consider other
matters that may facilitate the
expeditious disposition of the hearing;
  (5) Administer oaths and affirmations;
    (6) Regulate the course of the hearing
  and govern the conduct of participants;
    (7) Examine witnesses;
    (8) Identify and refer issues for
  interlocutory decision under 1124.90;
    {9} Rule on, admit, exclude, or limit
  evidence;
    (10) Establish the time for filing
  motions, testimony and other written
  evidence, briefs, findings, and other
  submissions;
 ;,_  (11) Rule on motions and other
  procedural matters pending before him,
  including but not limited to motions for
  summary determination in accordance
  with § 124.84;
    (12) Order that the hearing be
  conducted in stages in cases where the
  number of parties is large or the issues
  are numerous and complex;
    (13) Take any action not inconsistent
  with the provisions of this subpart for
  the maintenance of order at the hearing
  and for the expeditious, fair and
  impartial conduct of the proceeding;
    (14) Provide for the testimony of
  opposing witnesses to be heard
  simultaneously or for such witnesses to
  meet outside the hearing to resolve or
  isolate issues or conflicts;
    (15) Order that  trade secrets be
  treated as confidential business
  information in accordance with
  § 124.131; and
   (16) Allow such cross-examination as
 may be required for a full and true
  disclosure of the facts. No cross-
  examination shall be permitted on
  questions of law or policy, or regarding
 matters (such as the validity of effluent
 limitations guidelines) that are not
 subject to challenge in an NPDES
 proceeding. No Agency witnesses shall
 be required to testify or be made
 available for cross-examination on such
 matters. In determining whether cross-
 examination shall be permitted the
 Presiding Officer shall consider whether
 it is likely to result in clarifying or
 resolving a disputed issue of fact
 material to the decision, and whether
 the issue can be more economically
 clarified in other ways. The party
 seeking cross-examination has the
 burden of demonstrating that this
 standard has been met
  (c) All direct and rebuttal evidence at
 an  evidentiary hearing shall be
 submitted hi written form, unless, upon
 motion and good cause shown, the
 Presiding Officer determines that oral
 presentation of the evidence on any
 particular fact will materially assist in
 the efficient identification and
 clarification of the  hearing issues.
Written testimony  shall be prepared in
narrative form. To  the extent that
testimony is to be submitted in writing.
 the Presiding Officer may set dates for
 the filing of such evidence with the
 Regional Hearing Clerk as follows:
   (1) The participant with the burden of
 going forward to present an affirmative
 case upon an issue (as defined in
 § 124.85(a) of these regulations) shall file
 direct testimony first.
   (2) All participants other than the
 participants specified in the preceding
 subsection shall file their direct
 testimony on said issue not later than 20
 days after the date of the filing of the
 testimony under the preceding
 subsection.
   (3) All rebuttal testimony shall be
 filed no later than 30 days after the date
 of the filing of testimony under
 paragraph (c)(l) of this section.
   (d)(l) The Presiding Officer shall
 admit all relevant, competent and
 material evidence, except evidence that
 is unduly repetitious. Evidence may be
 received at any hearing even though
 inadmissible under the rules of evidence
 applicable to judicial proceedings. The ""
 weight to be given evidence shall be
 determined by its reliability and
 probative value.
   (2) The administrative record defined
 by § 124.64 shall be admitted and
 received hi evidence. Any party may
 move that a sponsoring witness be
 provided for a portion or portions of the
 administrative record. The Presiding
 Officer, upon finding that the standards
 for cross-examination of § 124.85(b)(3)
 have been met and that the
 administrative record taken as a whole
 indicates legitimate doubt about such
 portion of the record, shall grant such .
 motion and direct the appropriate party
 to produce such witness. If a sponsoring
 witness cannot be provided, the
 Presiding Officer may reduce the weight
 afforded the appropriate portion of the
 record as a factual statement
 accordingly.
 [Comment: Receiving the administrative
 record into evidence automatically serves
 several purposes: (1) It documents the prior
 course of the proceeding; [2] it provides 3
 record of the views of affected persons for
 consideration by the agency decisionmaker;
 and [3) it provides factual material for use by
 the decisionmaker. Subject to § 124.76,
 parties are free to contest the factual portions
 of the administrative record in the hearing,
 and to argue that portions of it should not be
 given weight unless sponsored by a witness
 who will be available for cross-examination.]

„ (3) Whenever any evidence or
 testimony is excluded by the Presiding
 Officer as inadmissible* all such
 evidence or testimony existing in
 written form shall remain a part of the
record as an offer of proof. The party
seeking the admission of oral testimony

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               Federal Register / Vol.  44, No. Ill / Thursday, June 7,  1979 / Rules and  Regulations
                                                                       32943
  may make an offer of proof, which shall
  consist of a brief statement on the
  record describing the testimony
  excluded.              .
   - (4) Where two or more parties have
  substantially similar interest and
  positions, the presiding Officer may
' limit the number of attorneys or other
  party representatives who will be  -
  permitted to cross-examine and to make'
  and argue motions  and objections on
  behalf of such parties. Attorneys may,
  however, engage in cross-examination
  relevant to matters not adequately
  covered by previous cross-examination.
    (5) Rulings of the Presiding Officer on
  the admissibiliry of evidence or
  testimony, the propriety of cross-
  examination, and other procedural
  matters shall appear in the record and
  shall control further proceedings, unless
  reversed as a result of an interlocutory
  appeal taken under § 124.90,
 -  (6) All objections shall be made
  promptly or be deemed waived. Parties
  shall be presumed to have taken
  exception to an adverse ruling. No
  objection shall be deemed waived by
  further participation in the hearing.
    (e) Parties may at any time stipulate
  to relevant facts or to settlement
  However, ail settlements to which the
  Agency is a party must be approved by
  the EPA Deputy Assistant Administrator
  for Water Enforcement in accordance
  with § 124.133.

  §124.86  Motions.
    (a) Any party may make a motion,
  (including a motion to dismiss a
  particular claim or a contested issue), to
  the Presiding Officer about any matter
  relating to the proceeding. All motions
  shall be filed and served as provided in
  § 124.80 except those made on the
  record during an oral hearing before the
  Presiding Officer.
    (b) Within 10 days after service of any
  written motion, any party to the
 proceeding may file a response to the
 motion. The time for response may be
 shortened to three days or extended for
 an additional ten days by the Presiding
 Officer for good cause shown.
   (c) Notwithstanding § 122.15, any
 party may file with the Presiding Officer
 a motion seeking to  apply to the permit
 any regulatory or statutory requirement
 issued or made available after the
 issuance of the permit under § 124.61.
 The Presiding Officer shall grant any
 motion to apply a new statutory
 requirement unless he or she finds it
 contrary to legislative intent The
 Presiding Officer may grant a motion to
 apply a new regulatory requirement
 where appropriate to carry out the
 purposes of the Act and where no party
 would be unduly prejudiced thereby.

 § 124.87  Record of hearings.
   (a) All orders issued by the Presiding
 Officer,  transcripts of oral hearings or
 arguments, written statements bf
 position, written direct and rebuttal
 testimony, and any other data, studies,
 reports,  documentation, information and
 other written material of any kind
 submitted in the proceeding shall be a
 part of the record of the hearing, and
 shall be available except as provided in
 § 124.131 to the public in the office of the
 Regional Hearing Clerk promptly upon
 receipt in that office. -
   (b) Evidentiary hearings shall be
 either stenographically reported
 verbatim or tape recorded, and
 thereupon transcribed. After the
 hearing, the reporter shall file with the
 Regional Hearing Clerk (i) the original of
 the transcript, and (ii) the exhibits
 received or offered into evidence at the
 hearing.
   (c) The Regional Hearing Clerk shall
 promptly notify each of the parties of
 the filing of the certified transcript of
 proceedings. Any party who desires a
 copy of the transcript of the hearing may
 obtain a copy of the hearing transcript
 from the Regional Hearing Clerk upon
 payment of costs.
   (d) The Presiding Officer shall allow
 witnesses, parties, and their counsel an
 opportunity to submit such written
 proposed corrections of the transcript of
 any oral testimony taken at the hearing,
 pointing out errors that may have been
 made in transcribing the testimony, as
 are required to make the transcript
 conform to the testimony. Except in
 unusual  cases, no more than thirty days
. shall be  allowed for submitting such
 corrections from the day a complete
 transcript of the hearing becomes
 available.

 § 124.88  Proposed findings of fact and
 conclusions; brief.
  Within 45 days after the certified
 transcript is filed, any party may file
with the  Regional Hearing Clerk
proposed findings of fact and
conclusions and a brief in support
thereof, each containing appropriate
reference to the record. A copy of any
such findings, conclusions and brief
shall be contemporaneously served
upon every other party and the Presiding
Officer. The Presiding Officer, for good
cause shown, may extend the time for
filing the proposed  findings and
conclusions and/or th« brief. The
Presiding Officer may allow reply briefs.
 §124.89  Decisions.
   (a] The Presiding Officer shall review
 and evaluate the record, including the
 proposed findings and conclusions, any
 briefs filed by the parties and any
 interlocutory decisions pursuant to
 § 124.90 and shall issue and file his
 initial decision with the Regional
 Hearing Clerk. The Regional Hearing
 Clerk shall immediately serve copies of
 the initial decision upon all parties (or
 their counsel of record) and the
 Administrator.                  -  ..
   (b) The initial decision of the
 Presiding Officer shall automatically
 become effective thirty (30) days after
 its service unless within such time:
   (1) A party files a petition for review
 by the Administrator pursuant to
 § 124.101; or
   (2) The Administrator sua sponle files
 a notice that he or she will review the.
 decision pursuant to § 124.101.

 § 124.90  Interlocutory appeal
   (a) Except as provided in this section,
 appeals to the Administrator may be
 taken only under § 124.101. Appeals
 from orders or rulings may be taken
 under this section only if the Presiding
 Officer, upon motion of a party, certifies
 those orders or rulings to the
 Administrator for appeal on the record.
 Requests to the Presiding Officer for
 certification must be filed hi writing
 within ten days of service of notice of
 the order, ruling, or decision and shall
 state briefly the grounds relied on.
   {b) The Presiding Officer may certify
 an order or ruling for appeal to the  -
 Administrator if;
   (1) The order or ruling involves an
 important question on which there is
 substantial ground for difference of
 opinion; and
   (2) Either.
   (i) An immediate appeal of the order
 or ruling will materially advance the
 ultimate completion of the proceeding,
 or,
   (ii) A review after the final order is
 issued will be inadequate or  ineffective;
 and,
   (3) Such an appeal is necessary to
 prevent exceptional delay, expense or
 prejudice to any party.
   (c) To the extent an appeal under this
 section involves issues of law, the
 Administrator shall refer those issues to
 the General Counsel for determination
 subject to his or her approval.
   (d) If the Administrator decides that
 certification was improperly granted, he
 or she shall decline to hear the appeal.
 The Administrator shall accept or
 decline all interlocutory appeals within
30 days of then- submission; if the
Administrator takes no action within

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  32944       Federal Register  / Vol. 44, No. Ill  / Thursday, June  7. 1979 / Rules  and Regulations
  that time, the appeal shall be considered
  dismissed. When the Presiding Officer
  declines to certify an order or ruling to
  the Administrator for an interlocutory
  appeal, it may be reviewed by the
  Administrator only upon appeal from
  the initial decision of the Presiding
  Officer, except when the Administrator
  determines upon motion of a party and
  in exceptional circumstances, that to
  delay review would not be in the public
  interest Such motion shall be made
  within  five days after receipt of
  notification that the Presiding Officer
  has refused to certify an order or ruling
  forr interlocutory appeal to the
  Administrator. Ordinarily, the
  interlocutory appeal will be decided on
  the basis of the submissions made to the
  Presiding Officer. The Administrator
  may, however, allow briefs and oral
  argument
    (e) The Presiding Officer may stay the
  proceeding pending a decision by the
  Administrator upon an order or ruling '
  certified by the Presiding Officer for an
  interlocutory appeal, or upon the denial
  of such certification by the Presiding
  Officer. Only in exceptional
  circumstances shall proceedings be
  stayed.
    (f) The failure to request an
  interlocutory appeal shall not foreclose
  a party from  taking exception to an
  order or ruling in an appeal under
  § 124.101.

  § 124.101  Appeal to the Administrator.
   (a}(l) Within 30 days after service of
  an initial decision, or the denial in
  whole or in part  of a request for an
  evidentiary hearing, any party or
 requester, as  the case may be, may
 appeal any matter set forth in such
 initial decision or denial or in any
 adverse order or riding to"which the
 party objected during the hearing, by
 filing with the Administrator notice of
 appeal and a petition for review. Proof
 of service upon all parties shall
 accompany such filing. The petition
 shall include a statement of the
 supporting reasons for such exceptions
 and, where appropriate, a showing that
 the initial decision contains:
   (i) A finding of fact or conclusion of
 law which is clearly erroneous, or
  (ii) An exercise of discretion or policy
 which is important and which the'
 Administrator should, hi his discretion,
 review.
  (2) Within 15 days after service of a
 petition for review under paragraph
 (a)(l), any other party to the hearing hi
 question may file a responsive petition.
  (3] Policy or legal conclusions made in
the course of denying a request for an
evidentiary hearing may be reviewed
  and changed by the Administrator in an
  appeal under this section.
    (b) Within 30 day of an initial decision
  or denial of an evidentiary hearing the
  Administrator may, sua sponte, review
  such decision. Within seven (7) days
  after the Administrator has decided
  under this section to review an initial
  decision or the denial of an evidentiary
  hearing, notice of that decision shall be
  served by mail upon all  affected parties
  and the Regional Administrator.
    (c) Within a reasonable tune following
  the filing of the petition for review, the
  Administrator shall issue an order either
  granting or denying the petition for
  review. When the Administrator grants
  a petition for review or determines
  under paragraph (b) to review a
  decision, the Administrator may notify
  the parties that only certain issues shall
  be briefed.
    (d) Notwithstanding the grant of a
  petition for review or a-determination
  under paragraph (b] to review a
  decision, the Administrator may
  summarily affirm without opinion  an
  intitial decision or the denial of an
  evidentiary hearing.
   (e) To the extent an appeal under this
  section involves  issues of the law, the
  Administrator shall refer those issues to
  the General Counsel for determination
  subject to his or her approval.
   (f) A petition to the Administrator
  under paragraph (a) for review of any
  initial decision or the denial of an
  evidentiary hearing is, under 5 U.S.C.
  § 704, a prerequisite to the seeking of
 judicial review of the final decision of
  the Agency.
   (g)(l) If a party timely files a petition
 for review or if the Administrator sua
 sponte orders review, then, for purpose
 of judicial review under section 509(fa) of
 the Act, final Agency action on an  issue
 occurs after EPA review procedures are
 exhausted and the Administrator's
 decision is issued and is implemented as
 follows:
   (i) If the Administrator denies review
 or summarily affirms without opinion as
 provided in § 124.101{d) then the initial
 decision or denial becomes effective
 upon the service of notice of such
 decision.
   (ii) If the Administrator issues a
 decision without remanding the
 proceeding then the final  permit,
 redrafted as required by the
 Administrator's decision, shall be
 reissued and served upon all parties to
 such appeal hi accordance with
paragraph (g)(2) of this section.
  (Hi) If the Administrator issues a
decision remanding the proceeding  then
final Agency action occurs upon
completion of the  remanded proceeding.
  including any Administrator appeals to
  the Administrator therefrom.
    (2J For purposes of judicial review
  under section 509(b) of the Act, final
  Agency action occurs ten days after a
  final permit is issued. After Agency
  review procedures are exhausted a final
  permit shall be prepared and issued by
  the Regional Administrator:
    (i) When the  Administrator issues
  notice to the parties that review has
  been denied if review is denied;
    (ii) When the Administrator issues a
  decision if review is not denied and the
  Administrator does not remand the
  proceedings; or
    (iii) Upon the completion of remand
  proceedings if the proceedings are
  remanded unless the Administrator's
  remand order specifically provides that
  appeal of the remand decision will be
  required in order to exhaust
  administrative remedies.
    (h) The petitioner may file a brief in
  support of the petition within 21 days
  after the Administrator has granted a
  petition for review. Any other party may
  file a responsive brief within 21 days of
  service of a brief hi support of the
  petition. The petitioner may file a reply
  brief within 14 days of service of the
  responsive brief and any person may file
  an amicus brief for the consideration of
  the Administrator. If the Administrator
  determines, sua sponte, to review an
  initial Regional Administrator's decision
  or the denial of an evidentiary hearing,
  the Administrator shall notify the
  parties of the briefing schedule.
   (i) Review by the Administrator of an
  initial decision or the denial of an
  evidentiary hearing shall be limited to
  issues, specified under paragraph (a) of
  this section, except after notice to all
 parties, the Administrator may raise and
,  decide other matters which he or she
 considers material on the basis of the
 record.

 Subpart I—Non-Adversary Procedures
 for Initial Licensing

 §124.111  Applicability.
   (a) Except as set forth in this Subpart,
 this Subpart applies hi lieu of, and to the
 complete exclusion of, Subparts E
 through H in the following cases:
   (1) In all proceedings for the issuance
 of a modified permit under section
 301(h) of the Act except that hi such
 proceedings the  terms "Administrator or
 a person designated by the
 Administrator" shall be substituted hi
 this Subpart for the term "Regional
Administrator";  and
  (2) In any proceedings for the issuance
of any other permit which constitutes
"initial licensing" under the           _^

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              Federal Register / Vol. 44.  No. Ill / Thursday. June 7. 1979 / Roles and Regulations       32935
 Administrative Procedure Act where
 the Regional Administrator elects to
 apply this Subpart and explicitly so
 states in the public notice of the draft
 permit
   (b) The parties to an evidentiary
 hearing that yirould otherwise be held
 under Subpart H may agree to conduct
 that hearing in accordance with this
 Subpart Any applicant for an NPDES
 permit which is not an initial license
 may request when requesting an
 evidentiary hearing under § 124.74, that
 its application be processed under the
 procedures of this Subpart If the
 Regional Administrator agrees with this
 request and if a hearing is granted,  the
 notice of the hearing shall be issued
 under § 124.118 shall  include a
 statement that the permit will be
 processed under the procedures set  forth
 in this Subpart unless a written
 objection is received within 30 days. If
 no such objection is received, the
 application shall be processed hi
 accordance with §§ 124.117-124.121 of
 this Subpart except that any reference
 to a draft permit shall be taken as
 referring to the final permit If an
 objection is received, Subparts F
 through H shall be applied instead.
   (cj "Initial licensing" includes both the
 first grant of an NPDES permit to a •
 discharger that has not previously held
 an NPDES permit and the first decision
 on any variance applied for by a
 discharger.

 §124.112 Relation to other subparts.
   The following provisions of Subparts
 E through H apply to proceedings under
 this Subpart
   (a) § 124.54 'Terms requested by the
 Corps of Engineers and other
 Government Agencies."
   (b) § 124.62 "Final environmental
 impact statement"
   (c) § 124.65 "Early decision on certain
 permit conditions."
   (d) § 124.66 "Deferral of decision on
 certain permit conditions."
   (e) § 124.72 "Definitions."
   (f) § 124.73 "Filing,"
   (g) § 124.78 "Exparte
 communications."
   (h) § 124.80 "Filing and service."
   (ij § 124.82 "Consolidation and
 severance."
   0) 1124.85(a) {burden of proof);
   (k) 1124.86 "Motions."
  (IJ § 124.87 "Record of hearings."
  (m) § 124.90 "Interlocutory appeal"

§ 124.113  Public notice regarding draft
permits and permit conditions.
  Public notice of the formulation of  a
draft permit under this Subpart shall  be
given as provided in §  124.41{i). At the
 discretion of the Regional
 Administrator, the comment period
 specified hi this notice may include an
 opportunity for a public hearing under
 § 124.42.

 §124.114  Hearings.
   (a) By the close of the comment period
 set forth in § 124.113 (§ 124.41(i)). any
 person may request the Regional
 Administrator to  hold a panel hearing
 on the draft permit by submitting a
 written request containing the following:
   (1) A brief statement of the interest of
 the person requesting the hearing;
   (2) A statement of any objections to
 the draft permit;
   (3) A statement of the issues which
 such person proposes to raise for
 consideration at such hearing; and
   (4) Statements meeting the
 requirements of § 124.74(c)(l)-{5).  ^-
   (b] Whenever (1) a written request
 satisfying the requirements of paragraph
 (a) of this section has been received and
 presents genuine issues of material fact,
 or (2) the  Regional Administrator
 determines sua sponte that a hearing
 under this Subpart is necessary or
 appropriate, the Regional Administrator
 shall serve written notice of the
 determination on each person requesting
 such hearing and the applicant and
 shall provide public notice of the
 determination in accordance with
 1124.41Q). If the Regional Administrator
 determines that a request filed under
 paragraph (a) of this section does not
 comply with the requirements of
 paragraph (a) or does not present
 genuine issues of fact the Regional
 Administrator may deny the request for
 the hearing and shall serve written
 notice of such determination on all
 persona requesting the hearing.
   (c) The  Regional Administrator may
 decide before a draft permit is
 formulated that a hearing should be held
 under this Part In such a case the notice
 issued under § 124.113 shall so state and
 shall contain the information required
 by 1124.41Q).

 § 124.115  Effect of denial or absence of
 request for hearing.
   If no request for a hearing is made
 under § 124.114, or if all such requests
 are denied under that section,  the draft
 permit shall be treated procedurally as if
 it were a recommended decision issued
under § 124.124 of this Subpart except
that for purposes of § 124.125 and
 § 124.126 the term "hearing participant"
or "person who participated hi the
hearing" shall be construed to mean the
applicant and any "person who
submitted comments under § 124.41(i)
 §124.116  Notice of hearing.
  Upon granting a request for a hearing
 under § 124.114 the Regional
 Administrator shall promptly publish a
 notice of the hearing as required under
 5 124.410). The mailed notice shall
 include a statement which indicates
 whether the Presiding Officer or the
 Regional Administrator will issue the
 recommended decision.

 § 124.117  Request to participate In
 hearing.
  (a) Each person desiring to participate
 in any hearing noticed under this
 section, shall file a motion to participate
 with the Regional Hearing Clerk by the
 deadline set forth in the notice of the
 grant of the hearing. The request shall
 include:
  (1) A brief statement of the interest of
 the person in the proceeding;
  (2) A brief outline of the points to be
 addressed;
  (3) An estimate of the time required;
 and
  (4) Statements meeting the
 requirements of § 124.74(c)[l)-{5).
  (5) If the request is submitted by an
 organization, a non-binding list of the
 persons to take part in the presentation.
  (b) As soon as practicable, but hi no
 event later than two weeks before the
 scheduled date of the hearing, the
 Presiding Officer shall make a hearing
 schedule available to the public and
 shall mail it to each person who
 requested to participate in the hearing.

 § 124.118  Submission of written
 comments on draft permit
  (a) No later than 30 days before the
 scheduled start of the hearing (or such
 other date as may be set forth in the
 notice of hearing), each party shall file
 all of its comments on the draft permit,
 based on information in the
 administrative record and any other
 information which is or reasonably
 could have been available to that
 person. All comments shall include any
 affidavits, studies, data, tests, or other
 materials relied upon for making any
 factual statements hi the comments.
  (b)(l) Written comments filed under
 paragraph (a) of this section shall
 constitute the bulk of the evidence
 submitted at the hearing. Oral
 statements at the hearing should be
 brief and hi the nature of argument
They should be restricted either to
points that could not have been made hi
written comments, or to emphasizing
points which are made hi the comments,
but which the participant believes can
be more effectively argued in the
hearing context

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   32946      Federal Register / Vol. 44,  No. Ill /Thursday, June 7, 1979 / Rules and Regulations
     (2) Notwithstanding the foregoing,
   within two weeks prior to the deadline
   specified in paragraph (a) of this section
   for the filing of comments, any party
   who has filed a request to participate in
   the hearing may move to submit all or
   part of its comments orally at the
   hearing in lieu of submitting written
   comments and the Presiding Officer
   shall, within one week, grant such
   motion if the Presiding Officer finds that
   such person will be prejudiced if
   required to submit such comments in
   written form,
     (c) Parties to any hearing may submit
   written material in response to the
   comments filed by other participants
   under paragraph (a) of this section at the
   time they appear at the panel stage of
   the hearing under § 124.120.

   |124.119  Presiding Officer.
     (a)(l) Upon the granting of a request
   for a hearing the Regional Administrator
   shall, as soon as practicable, request
   that the Chief Administrative Law Judge
   assign an Administrative Law Judge as
   Presiding Officer. The Chief
   Administrative Law Judge shall ~  "~ '
   thereupon make such assignment
     (2) If all parties to the hearing waive
   in writing their statutory right to have an
.  Administrative Law Judge preside at the
  hearing, the Regional Administrator
  shall name a lawyer permanently  or
  temporarily employed by the Agency
  and without prior connection with the
  proceeding to serve as Presiding Officer.
    (b) It shall be the duty of the Presiding
  Officer to conduct a fair and impartial
  hearing. The Presiding Officer shall have
  the authority:
    (1) Conferred by § 124.85(b)(lHl5).
  § 124.83(b) and (c); and
    (2) To receive relevant  evidence.
  provided that all comments under
-  § 124.118, the record of the panel hearing
  under § 124.120, and the administrative
  record, as defined in § 124.35 (or in the
  case  of voluntary use of these
  procedures under § 124.111{a}{3), the
  administrative record for  the final
  permit under § 124.64) shall be received
  in evidence.

  §124.120  Panel hearing.
    (a)  A Presiding Officer shall preside at
  each hearing held under this Subpart
  An EPA panel shall also take part in the
  hearing. The panel shall consist of  three
  or more temporary or permanent EPA
  employees having special  expertise in
  areas related to the hearing issue, at
 least two of whom shall not have taken
 part in preparing the draft permit. If
 appropriate for the evaluation of new or
 different issues presented  at the hearing,
 the panel membership may change  or
  may include persons not employed by
  EPA.
    (b) At the time of the hearing notice
  pursuant to § 124.116, the Regional
  .Administrator shall designate the
  persons who shall serve as panel
  members for the hearing and the
  Regional Administrator shall file with
  the Regional Hearing Clerk the name,
  address and area of expertise of each
  person so designated. The Regional
  Administrator may also designate EPA
  e.mployees who will provide staff
  support to the panel but who may or
  may not serve as'panel members. Such"
  designated person shall be subject to the
  exparte rules in 1124.78. The Regional
  Administrator may also designate
  Agency trial staff as defined in § 124.79
  for the hearing.
    [c] At any time before the close of the
  panel hearing, the Presiding Officer,
  after consultation with the panel, may
  request that any person having
  knowledge concerning the issues raised
  in the hearing and not then scheduled to
  participate therein appear and testify at
  the hearing.
    (d) The panel members may question
  any person participating in the panel
  hearing. Cross-examination by persons
  other than panel members shall not be
  permitted at this stage of the proceeding
  except where the Presiding Officer
  determines, after consultation with the
  panel, that such cross-examination
  would expedite consideration of the
  issues. However, the parties may submit
  written questions to the Presiding
  Officer for the Presiding Officer to ask
  the participants, and the Presiding
  Officer may, after consultation with the
 .panel, and at his or her sole discretion,
  ask these questions or permit a panel
  member to ask them.
   (e) Within ten days after the close of
  the hearing, any of the participants shall
  submit such additional written
  tsstimony, affidavits, information or
' material as such participant deems
 relevant or which the  panel may request
 of such participant These additional
 submissions shall be filed with the
 Regional Hearing Clerk and shall be a
 part of the hearing record.

 f 124.121  Opportunity for cross-
 examination.
   (a) Any participant in a panel hearing
 may submit a written request to cross-
 examine on any issue  of material fact
 The motion shall be submitted to the
 Presiding Officer within 15 days after a
 full transcript of the panel hearing is
 filed with the Regional Hearing Clerk
 and shall specify:
  (1) The disputed issue(s) of material
fact regarding which cross-examination
 is requested. This shall include an
 explanation of why the questions at
 issue are factual, rather than of an
 analytical or policy nature, the extent to
 which they are in dispute in light of the
 record made up to that stage, and the
 extent to which they are material to the
 decision on the application; and '
   [2] The personfs) a participant desires
 to cross-examine, and an estimate of the
 time necessary. This shall include a
 statement as to why the cross-
 examination will result in resolving the
 issue of material fact involved.  ..
   (b) After receipt of all motions for
 cross-examination under paragraph (a),
 the Presiding Officer, after consultation
 with the hearing panel, shall promptly
 issue an order either granting or denying
 each such request If any request for
 cross-examination is granted, the order
 shall specify:
   (1) The issues on which cross-
 examination is granted;
   (2) The persons tq be cross-examined
 on each issue;
   (3) The persons allowed to conduct
 cross-examination;
   (4) Time limits for the examination of
 witnesses by each cross-examiner;  and
   (5) The date, time and place of the
 supplementary hearing at which cross-
 examination shall take place.
 In issuing this ruling, the Presiding
 Officer may determine that one or more
 participants have the same or similar
 interests and that to prevent unduly
 repetitious cross-examination, they
 should be required to choose a single
 representative for-purposes of cross-
 examination. In such a case, the order
 shall simply assign time for cross-
 examination by that single
 representative without identifying the
 representative further. If said
 participants with the same or similar
 interests shall fail to designate such
 single representative, then the Presiding
 Officer shall divide the assigned time
 among the representatives of such
 participants or issue such other order as
 justice may require.
   (c) The Presiding Officer and to the
 extent possible, the members of the
 hearing panel shall be present at the
 supplementary hearing. During the
 course of the hearing, the Presiding
 Officer shall have authority to modify
 any order issued under paragraph (b) of
 this section. A record will be made
 under § 124.87.
  (d)(l) No later than the time set for
requesting cross-examination, a hearing
participant may request that alternative
methods of clarifying the record (such as
the submission of additional written
information] be used in lieu of or in

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              Federal Register  / Vol. 44,  No. Ill  /  Thursday, June 7, 1979 / Rules and Regulations      32947
 addition to cross-examination. The
 Presiding Officer shall issue an order
 granting or denying such request at the
 time he issues (or would have issued) an
 order under paragraph (b) of this
 section. If the request is granted, the
 order shall specify the alternative
 provided and, any other relevant
 information (e.g., the due date for
 submitting wptten information).
   (2) In passing on any request for
 cross-examination submitted under
 paragraph (a) of this section, the
 Presiding Officer may, as a precondition
 to ruling- on the merits of such request,
 require alternative means of clarifying
 the record to be used whether or not a
 request to do so has been made under
 the immediately preceding paragraph.
 The person requesting cross-
 examination shall have one week to
 comment on the results of utilizing such
 alternative means, following which the
 Presiding Officer, as soon as practicable,
 shall issue  an order granting or denying
 such person's request for cross-
 examination.   '•
   (e) The provisions of § 124.85{d)(2)   .
 apply to proceedings under this Subpart

 § 124.122 Record for final permit
   (a) The record on which the final
 permit shall be based in any proceeding ~
 under this Subpart (other than a
 proceeding by consent of the parties
 under § 124.111(a)(3)) consists of:
   (1) The administrative record
 compiled under § 124.35;
   (2) Any material submitted under
 § 124.78 relating to ex parte contacts;
   (3) All notices issued under 1124.113;
   (4) All requests for hearings, and
 rulings on those requests received or
 issued under § 124.114;
   (5) Any notice of hearing issued under
 § 124.116;
  (6) Any request to participate in the
 hearing received under § 124.117;
  (7) All comments submitted under
 1124.118, any motions made under that
 section and the rulings on them, and any
 comments filed under § 124.113(b)(9);
  (8) The full transcript and other
 material received into the record of the
 panel hearing under § 124.120;
  (9) Any motions for, or rulings, on
 cross-examination filed or issued under
 § 124.121;
  (10) Any motions for, orders for and
 the results of, any alternatives to cross-
 examination under § 124.121; and
  (11) The full transcript of any cross-
 examination held.
  (b) In any proceedings under this
Subpart involving a permit which is not
an initial license and which are
conducted under § 124.111(a)(3), the
record for decision shall consist of:
   (1) The administrative record under
.  §124.64;
   (2) All requests for hearing-submitted
  under 1124.74, and all rulings on those
  requests; and
   (3) The items specified in
  subparagraph in subparagraphs  (a)(4)
  though (a)(ll) of this section.

  § 124.123  Filing of brief, proposed
  findings of fact and conclusions of law and
  proposed modified permit
   Unless otherwise ordered by the
  Presiding Officer, each party may,
  within 20 days after all requests for
  cross-examination are denied or after a
  transcript of the full hearing including
  any cross-examination becomes
  available, submit proposed findings of
  fact; conclusions regarding material
  issues of law, fact, or discretion; a
  proposed modified NPDES permit  (if
  such person is urging that the draft
  permit should be modified); and a  brief
  in support thereof, together with
  references to relevant pages of
  transcript and to relevant exhibits.
  Within 10 days thereafter each party
  may file a reply brief concerning matters
  contained hi opposing briefs and
  containing alternative findings of fact;
  conclusions regarding material issues of
  law, fact, or discretion; and a proposed
  modified permit. Oral argument  may be
  held at the discretion of the Presiding
  Officer on motion of any party or sua
  sponte.

  §124.124  Recommended decision.
   The person named to prepare  the
  decision shall, as soon as practicable
  after the conclusion of the hearing,
  evaluate the record of the hearing  and
  prepare and file a recommended
  decision with the Regional Hearing
  Clerk. That person may consult with,
  and receive assistance from, any
 taember of the hearing panel in drafting
  the recommended decision, and may
  delegate the preparation of the
  recommended decision to the panel or to
  any member or members of it. This
  decision shall contain findings of fact,
 conclusions regarding all material  issues
 of law, and a recommendation as to
 whether and in what  respects the draft
 permit shall be modified. After the
 recommended  decision has been filed,
 the Regional Hearing Clerk shall serve a
 copy of such decision on each party and
 upon the Administrator.

 § 124.125 Appeal from or review of
 recommended decision.
   Within 30 days after service of the
 recommended decision, any party may
 take exception to any matter set forth in
 such decision or to any_adverse order or
 ruling of the Presiding Officer to which
such party .objected, and may appeal
such exceptions to the Administrator as
provided in § 124.101, except that
references in § 124.101 to "initial
decision" will mean recommended
decision under § 124.124.

§ 124.126  Final decision.
  As soon as practicable after all appeal
proceedings have been completed, the
Administrator shall issue a final       t
decision. Such final decision shall
include findings of fact; conclusions
regarding material issue of law, fact, or
discretion, as well as reasons therefor;
and a modified NPDES permit to the
extent appropriate. It may accept or
reject all or part of the recommended
decision. The Administrator may
delegate some or all of the work of
preparing this decision to a person or
persons without substantial prior
connection with the matter. The
Administrator or a person designated by
the Administrator may consult with the
Presiding Officer, members of the
hearing panel or any other EPA
employee in preparing the final decison.
The Hearing and Record Clerk shall file
a copy of the decision on all hearing
participants.

§ 124.127  Final decision if there Is no
review.
  If no party appeals a recommended
decision to the Administrator, and if the
Administrator does not elect to review
it, the recommended decision is deemed
the final decision of the Agency upon
the expiration of the time for filing any
appeals.

Subpart J—Miscellaneous

§124.131  Public access to information.
  (a) All permit applications, effluent
data, certifications issued under section
401 of  the Act and Subpart C of this
Part, comments of all governmental
agencies on a  permit application, and
draft permits and fact sheets prepared
shall be available to the public without
restriction.
  (b) Access to other information shall
be governed by the provisions of 40 CFR
Part 2.

§ 124.132  Delegation of authority; time
limitations.
  (a) The Administrator may delegate to
a Judicial Officer any or all of his or her
authority to act under this Subpart.
  (b) The failure of the Administrator,
Regional Administrator or Presiding
Officer to do any act within the time
periods specified herein shall not be
construed as a waiver or in derogation
of any rights, powers or authority of the

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  32948       Federal Register / Vol.  44, No. Ill  / Thursday, June 7, 1979 / Rules and Regulations
  United States Environmental Protection
  Agency.
    (c) Upon a showing by any party that
  it has been prejudiced by a failure of the
  Administrator, Regional Administrator,
  or Presiding Officer to do any act-vvithin
  the time periods specified herein, the
  Administrator, Regional Administrator,
  or Presiding Officer, as the case may be,
  may grant such party such relief of a
  procedural nature (including extension
  of any time for compliance or other
  action) as may be appropriate.

  § 124.133   EPA headquarters' approval of
  stipulation or consent agreement
    No evidentiary hearing under Subpart
  H or non-adversary initial licensing
  hearing under Subpart I may be
  resolved, settled or decided, in either
  whole or  substantial part, by the
  stipulation or consent of the parties
  thereto, unless and until the stipulation
  or consent agreement is approved and
  signed by the Deputy Assistant
  Administrator for Water Enforcement.
  No stipulation or consent without such
  approval  and signature shall bind EPA
  or have any force or effect or be filed in
  any proceeding.

  §124.134  Additional time after service by
  mail.
   Whenever a party or interested
  person has the right or is required to do
  some act or take some proceeding
  within a prescribed period after the
  service of notice or other paper upon
  him or her by mail, three days shall be
  added to the prescribed time.

 § 124.135  Effective date of Pert 124.
   (a) All provisions of this Part shall
 apply to any permit were the draft
 permit was included in a public notice
 after October 12,1979.
   (b) All the provisions of Subpart H
 other then § 124.78 and the provisions of
 §§ 124.83(c) and  124.85(d)(l) for
 automatic receipt of the administrative
 record into evidence shall apply to all
 hearings for which the notice of hearing
 is issued after [60 days after date of
 issuance] provided that the Presiding
 Officer at any such proceeding may vary
 or suspend any of the terms of these
 regulations hi any hearing that begins
 before January 1,1980, to avoid
 inconvenience or injustice.
   (c) Section 124.64{c)(2) provides a
 mechanism by which EPA may in effect
 make permits issued before the effective
 date of this Part subject to its
provisions.                        - -
  7. Part 125 is revised to read as
follows:
  PART 125—CRITERIA AND
  STANDARDS FOR THE NATIONAL
  POLLUTANT DISCHARGE
  ELIMINATION SYSTEM

  Subpart A—Criteria and Standards for
  Imposing Technology-Based Treatment
  Requirements Under Section 301(b) of the
  Act

  Sec.
  125.1 Purpose and scope;
  125.2 Definitions.
  125.3 Technology-based treatment ,
     requirements in permits.

  Subpart B—Criteria for issuance of Permits
  to Aquaculture Projects
  125.10  Purpose and scope.
  125.11  Criteria.

  Subpart C—Criteria for Extending
  Compliance Dates for Facilities Installing
  Innovative Technology Under Section
  301(K) of the Act [Reserved]

  Subpart D—Criteria and Standards for
  Determining Fundamentally Different
  Factors Under Sections 301(b)(1XA),
  301(b)(2) (A) and (E), and 307(b) of the Act
  125.30  Purpose and scope.
  125.31  Criteria.
  125.32  Method of application.

  Subpart E—Criteria for Granting Economic
  Variances From Best Available Technology
  Economically Achievable Under Section
  301(c) of the Act [Reserved]

  Subpart F—Criteria for Granting Water
  Quality Related Variances Under Section
  301(g) of the Act [Reserved]

  Subpart G—Criteria for Modifying the
  Secondary Treatment Requirement Under
  Section 301(h) of the Act [Reserved]

  Subpart H—Criteria for Determining
  Alternative Effluent Limitations Under
  Section 316(a) of the Act
 125.70  Purpose and scope.
 125.71  Definitions.
 125.72  Early screening of applications for
     section 316(a) variances.        -  - (
 125.73  Criteria and standards for the
     determination of alternative effluent
     limitations under section 3T6(a).

 Subpart I—Criteria Applicable To Cooling
 Water Intake Structures Under Section
 316(b) of the Act [Reserved]

 Subpart J—Criteria for Extending
 Compliance Dates Under Section 301(i) of
 the Act
 125.90 Purpose and scope.
 125.91 Definition.
 125.92 Requests  for permit modification and
    issuance under section 301(i)(l) of the
    Act.
 125.93 Criteria for permit modification and
    issuance under section 301(i)(l) of the
    Act
 125.94 Permit terms and conditions under
    section 301(i}(l) of the Act.
'125.95  Requests for permit modification or
    issuance under section 301(i}{2) of the
    Act
 125.96  Criteria for permit modification or .
     issuance under section 301(i}(2) of the
     Act                              '
 125.97  Permit terms and conditions under
  -  section 301{i)(2) of the Act

 Subpart K—Criteria and Standards for Best
 Management Practices Under Section
 304(e) of the Act               "
 125.100  Purpose and scope-.
 125.101  Definition.
 125.102 '• Applicability of best management
     practices.             -
 125.103  Permit terms and conditions.
 125.104  Best management practices
     programs.               ..  '

 Subpart L—Criteria and Standards for
 Imposing Conditions for the Disposal of
 Sewage Sludge Under Section 4C5 of the
 Act [Reserved]

 Subpart M—Ocean Dumping Criteria Under
 Section 403 of the Act [Reserved]
   Authority: Clean Water Act as-amended
 by the Clean Water Act of 1977, 33 U.S.C
 1251 et seq.     -  -'

 Subpart A—Criteria and Standards for
 Technology-Based Treatment
 Requirements Under Sections 301(b)
 and 402 of the Act
             -'  ,
 § 125.1  Purpose and scope.
   This Subpart establishes criteria and
 standards for the imposition of  ..
 technology-based treatment
 requirements in permits undet-section
 301 (b)  of the Act, including the
 application  of EPA promulgated effluent-
 limitations and case-by-case
• determinations of effluent limitations
 under section 402(a){l) of the Act.

 §125.2  Definitions.
   Unless otherwise noted, the
 definitions in Parts 122,123, and 124
 apply to this Part.

 § 125.3  Technology-based treatment
 requirements In permits.           .   '  ~
   (a) General. Technology-based
 treatment requirements under section
 301 (b) of the Act represent the minimum
 level of control that must be imposed in
 a permit issued under section 402 of the
 Act. (See §§ 122.14 and 122.15 for a
 discussion of additional or more
 stringent effluent limitations and
 conditions.) Permits shall contain the
 following technology-based treatment
 requirements in accordance with the
 following statutory deadlines;
  (1) For POTW's, effluent limitations
 based upon:
  (i) Secondary treatment—from date of
permit issuance; and
  (ii) The best practicable waste
treatment technology—not later than
July 1,1983; and

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              Federal Register / Vol. 44, No. Ill  / Thursday,  June 7,  1979 / Rules and Regulations       32949
    (2) For dischargers other than POTWs
  except as provided in § 122.47(d),
  effluent limitations requiring:
    (i) The best practicable control
  technology currently available (BPT)—
  from date of permit issuance;
    (ii) For conventional pollutants, the
  best conventional pollutant control
  technology (BCT)—not later than July 1,
  1984;
    (iii) For all toxic pollutants referred to
  in Committee Print No. 95-30, House
.  Committee on Public Works and
  Transportation, the best available
  technology economically achievable
  (BAT) — not later than July 1,1984;
    (iv) For all toxic pollutants other than
  those listed in Committee Print No. 95-
  30, effluent limitations based on the
  BAT not later than three years after the
  date such effluent limitations are
  incorporated into an NPDES permit and
    (v) For all pollutants which are neither
  toxic nor conventional pollutants,
  effluent limitations based on BAT not
  later than three years after the date such
  effluent limitations are incorporated into
  an NPDES permit, or July 1.1984,
  whichever is later, but in no case later
  than July 1,1987.
    (b) Statutory variances and
  extensions. (1) The following variances
  from technology-based treatment
  requirements are authorized by the Act
  and may be applied for under § 124.51;
    (i) For POTWs, a section 301[hJ
  marine discharge  variance from
  secondary treatment (Subpart G);
    (ii) For dischargers other than
  POTWs;
    (A) A section 301(c) economic
  variance from BAT {Subpart E);
    (B) A section 301 (g) water quality
  related variance from BAT (Subpart F);
  and
    (C) A section 316(a) thermal variance
  from BPT. BCT and BAT (Subpart H).
    (2) The following extensions of
  deadlines for compliance with
  technology-based treatment
  requirements are authorized by the Act
  and may be applied for under § 124.51:
   (i) For POTWs a section 301(i)
 extension of the secondary treatment
 deadline (Subpart J);
   (ii) For dischargers other than
 POTWs:
   (A) A section 301(i) extension of the
 BPT deadline (Subpart J); and
   (B) A section 301(k) extension of the
 BAT deadline (Subpart C).
   (c) Methods of imposing technology-
 based treatment requirements in
permits. Technology-based treatment
 requirements may  be imposed through
 one of the following three methods:
   (1) Application of EPA-promulgated
effluent limitations developed under
 section 304 of the Act to dischargers by
 category or subcategory. These effluent
 limitations are not applicable to the
 extent that they have been remanded or
 withdrawn. However, in the case of a
 court remand, determinations
 underlying effluent limitations shall be
 binding in permit issuance proceedings
 where those determinations are not
 required to be reexamined by a court
 remanding the regulations. In addition,
 dischargers may seek fundamentally
 different factors variances from these
 effluent limitations under § 124.51 and
 Subpart D of this  Part
   (2) On a case-by-case basis under
 section 402(a)(l) of the Act to the extent
 that EPA-promulgated effluent
 limitations are inapplicable. The permit
 writer shall apply the appropriate
 factors listed in section 304 of the Act,
 and shall consider.
   (i) The appropriate technology for the
 category or class  of point sources of  -
 which the applicant is a member, based
 upon all available information
 (including EPA draft or proposed
 development documents or guidance);
 and
   (ii) Any unique factors relating to the
 applicant.
 [Comment: These factors must be considered
 in all cases, regardless of whether the permit
 is being issued by EPA or an approved State.)
   (3) Through a combination of the
 methods in paragraphs (c) (1) and (2) of
 this section. Where promulgated effluent
 limitations guidelines only apply to
 certain aspects of the discharger's
 operation, or to certain pollutants, other
 aspects or activities are subject to
 regulation on a case-by-case basis in
 order to carry out the provisions of the
 Act.
   (d) Technology-based treatment
 requirements are  applied prior to or at
 the point of discharge.
   (e) Technology-based  treatment
 requirements cannot be satisfied
 through the use of "non-treatment"
 techniques such as flow  augmentation
 and in-stream mechanical aerators.
 However, these techniques may be
 considered as a method of achieving
 water quality standards on a case-by-
 case basis when:
  (1) The technology-based treatment
 requirements applicable  to the discharge
 are not sufficient to achieve the
 standards;
  (2) The discharger agrees  to waive
 any opportunity to request a variance
 under sections 301 (c), (g) or (h) of the
Act; and
  (3) The discharger demonstrates that
such a technique is the-preferred
environmental and economic method to
 achieve the standards after
 consideration of alternatives such as
 advanced waste treatment, recycle and
 reuse, land disposal, changes in
 operating methods, and other available
 methods.
   (f) Technology-based effluent
 limitations shall be established under
 this Subpart for solids, sludges, filter
 backwash, and other pollutants removed
 in the course of treatment or control of
 wastewaters in the same manner as for
 other pollutants.

 Subpart B—Criteria for Issuance of
 Permits to Aquaculture Projects

 § 125.10  Purpose and scope.
   (a) These regulations establish
 guidelines under sections 318 and 402 of
 the Act for approval of any discharge of
 pollutants associated with an
 aquaculture project.
   (b) The regulations authorize, on a
 selective basis, controlled discharges
 which would otherwise be unlawful
 under the Act in order to determine the
 feasibility of using pollutants to grow
 aquatic organisms which can be
 harvested and used beneficially. EPA
 policy is to encourage such projects,
 while at the same time protecting other
 beneficial uses of the waters.
   (c) Permits issued for discharges into
 aquaculture projects under this Subpart
 are NPDES permits and are subject to
 the applicable requirements of Parts 122,
 123 and 124. Any permit shall include
 such conditions (including monitoring
 ^nd reporting requirements) as are
 necessary to comply with those Parts.
 Technology-based effluent limitations
 need not be  applied to discharges into
 the approved project except with
 respect to toxic pollutants.

 §125.11  Criteria.
   (a) No NPDES permit shall be issued
 to an aquaculture project unless:
   (1) The Director determines that the
 aquaculture  project
   (i)  Is intended by the project operator
 to produce a crop  which has significant
 direct or indirect commercial value (or is
 intended to be operated for research
 into possible production of such a crop);
 and
.   (ii) Does not occupy a designated
 project area  which is larger than can be
 economically operated for the crop
 under cultivation or than is necessary
 for research purposes.
   (2) The applicant has demonstrated, to
 the satisfaction of the Director, that the
 use of the pollutant to be discharged to
 the aquaculture project will result in an
 increased harvest  of organisms under

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   32950      Federal  Register / VoL 44, No. Ill  / Thursday, June 7, 1979 /  Rules and Regulations
  culture over what would naturally occur
  in the area;
     (3) The applicant has demonstrated, to
  the satisfaction of the Director, that if
  the species to be cultivated in the
  aquaculture project is not indigenous to
  the immediate geographical area, there
  will be minimal adverse effects on the
  flora and fauna indigenous to the area,
  and the total commercial value of the
  introduced species is at least equal to
  that of the displaced or affected
  indigenous flora and fauna;
     (4) The Director determines that the
  crop will not have a significant potential
-' for human health hazards resulting from
  its consumption;
     (5) The Director determines that
  migration of pollutants from the
  designated project area to water outside
  of the aquaculture project will not cause
  or contribute to a violation of water
  quality standards or a violation of the
  applicable standards and limitations
  applicable to the supplier of the
  pollutant that would govern if the
  aquaculture project were itself a point
  source. The approval of an aquaculture
  project shall not result in the
  enlargement of a pre-existing mixing
  zone area beyond what had been
  designated by the  State for the original
  discharge.                .
    (b) No permit shall be issued for any
  aquaculture project in conflict with a
  plan or an amendment to a plan
  approved under section 208(b) of the
  Act
    (c) No permit shall be issued for any
  aquaculture project located in the
  territorial sea, the waters of die
  contiguous zone, or the oceans, except
  in conformity with guidelines issued
  under section 403(c) of the Act
    (d) Designated project areas shall not
  include a portion of a body of water
  large enough to expose a substantial
  portion of the indigenous biota to the
  conditions within the designated project
  area. For example, the designated
 project area shall not include the entire
 width of a watercourse, since all
 organisms indigenous tojhat
 watercourse might be subjected to
 discharges of pollutants that would,
 except for the provisions of section 318
 of the Act, violate section 301 of the Act
   (e) Any modifications caused by the
 construction or creation of a reef, barrier
 or containment Structure shall not
 unduly alter the tidal regimen of an
 estuary or interfere with migrations of
 unconfined aquatic species.
 [Comment: Any modifications described In
 this paragraph which result in the discharge
 of dredged or fill material into navigable
 waters may be subject to the permit
 requirements of section 404 of the Act.]
    (f) Any pollutants not required by or
  beneficial to the aquaculture crop shall
  not exceed applicable standards and
  limitations when entering the designated
  project area.

  Subpart C—Criteria for Extending
  Compliance Dates for Facilities
  Installing Innovative Technology
  Under Section 301(k) of the Act—
  [Reserved]

  Subpart D—Criteria and Standards for
  Determining Fundamentally Different
  Factors Under Sections 301(b)(1)(A),
  301(bX2) (A) and (E), and 307(b) of the
  Act

  § 125.30  Purpose and scope.
    (a) This Subpart establishes the
  criteria and standards to be used in
  determining whether effluent limitations
  or standards alternative to those
  required by promulgated EPA effluent
  limitations guidelines or standards
  under sections 301,304, and 307(b) of  the
  Act {hereinafter referred to as "national
  limits") should be imposed on a
  discharger because factors relating  to
  thfe discharger's facilities, equipment.
  processes or other factors related to the
  discharger are fundamentally different
  from the factors considered by EPA in
  development of the national limits. This
  Subpart applies to all national limits
  promulgated under sections 301,304 and
 307(b) of the Act except for those
 contained in 40  CFR Part 423 (steam
 electric generating point source
 category).
   (b) In establishing national limits, EPA
 takes into account all the information  it
 can collect develop and solicit
 regarding the factors listed in sections
 304(b), 304(g) and 307(b) of the Act. In
 some cases, however, data which could
 affect these national limits as they apply
 to a particular discharge may not be
 available or may not be considered
 during their development As a result  it
 may be necessary on a case-by-case
 basis to adjust the national limits, and
 make them either more or less stringent
 as they apply to certain dischargers
 within an industrial category or
 subcategory. This will only be done if
 data specific to that discharger indicates
 it presents factors fundamentally
 different from those considered by EPA
 in developing the limit at issue. Any
 interested person believing that factors
 relating to a discharger's facilities,
 equipment processes or other facilities
 related to the discharger are
 fundamentally different from the factors
 considered during development of the
national limits may request a
fundamentally different factors variance
 under 5 124.51(b)(l). In addition, such a
 variance may be proposed by the
 Director in the draft permit (see
 § 123.22(a)(2)fii)).

 §125.31  Criteria.
   (a) A request for the establishment of
 effluent limitations under this Snbpart
 (fundamentally different factors l
 variance) shall be approved only if:
   (1) There is an applicable national
 limit which is applied in the permit and
 specifically controls the pollutant for
 which alternative effluent limitations'or
 standards have been requested; and
   (2) Factors relating to the discharge
 controlled by the permit are   -
 fundamentally different from those
 considered by EPA hi establishing the
 national limits; and
 •  (3) The request for alternative effluent
 limitations or standards is made in
 accordance with the procedural
 requirements of Part 124.
   (b) A request for the establishment of
 effluent limitations less stringent than
 those required by national limits
 guidelines shall be approved only if:
   (1) The alternative effluent limitation
 or standard requested is no less
 stringent than justified by the
 fundamental difference; and
   (2) The alternative effluent limitation
 or standard will ensure compliance with
 sections 208(e) and 301(b)(l)(C) of the
 Actrand                       ,
   (3) Compliance with the national
 limits (either by using the technologies
 upon which the national limits are based
 or by other control alternatives) would
 result in:
   (i) A removal cost wholly out of
 proportion to the removal cost
 considered during development of the
 national limits; or
   fli) A non-water quality
 environmental impact (including energy
 requirements) fundamentally more
 adverse than the impact considered
 during development of the national
 limits.
   [c) A request for alternative limits
 more stringent than required by national
 limits shall be approved only if:
  (1) The alternative effluent limitation
 or standard requested is no more
 stringent than justified by the
 fundamental difference; and
  (2) Compliance with the alternative
 effluent limitation or standard would not
 result in:
  (i) A removal cost wholly out of
 proportion to the removal cost
 considered during development of the
national limits; or
  (ii) A non-water quality
environmental impact (including energy
requirements) fundamentally more

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             -Federal Register  /Vol. 44, No.  Ill / Thursday,  June 7, 1979 / Rules and Regulations      32951
 adverse than the impact considered
 during development of the national
 limits.
   (d) Factors which may be considered
 fundamentally different are:
   (1) The nature or quality of pollutants
 contained in the raw waste load of the
 applicant's process wastewaten
 [Comment: (l)jln determining whether factors
 concerning the discharger are fundamentally
 different EPA!will consider, where relevant,
 the applicable development document for the
 national limits, associated technical and
 economic data collected for use in developing
 each respective national limit records of
 legal proceedings, and written and printed
 documentation including records of
 communication, etc., relevant to the
 development of respective national limits
 which are kept on public file by EPA. (2)
 Waste stream(s) associated with a
 discharger's process wastewater which were
 not considered in the development of the
 national limits will not ordinarily be treated
 as fundamentally different under paragraph
 (a). Instead, national limits should be applied
 to the other streams, and the unique stream(s)
 should be subject to limitations based on
 section 402(a)(l)'of the Act See § 125.2(c){2).]

   (2) The volume of the discharger's
 process wastewater and effluent
 discharged;
   (3) Non-water quality environmental
 impact of control and treatment of the
 discharger's raw waste load;
   (4) Energy requirements of the
 application of control and treatment
 technology,
   (5) Age, size, land availability, and
 configuration as they relate to the
 discharger's equipment or facilities:
 processes employed; process changes;
 and engineering aspects of the
 application of control technology;
   (6) Cost of compliance with required
 control technololgy.
   (e) A variance request or portion of
 such a request under this section shall
 not be granted on any of the following
 grounds:
   (I) The ^feasibility of installing the
 required waste treatment equipment
 within the time the Act allows.
 [Comment- Under this section a variance
 request may be approved if it is based on
 factors which relate to the discharger's
 ability ultimately to achieve national limits
 but not if it is based on factors  which merely
 affect the discharger's ability to meet the
 statutory deadlines of sections 301 and 307 of
 the Act such as labor difficulties,
 construction schedules, or unavailability of
 equipment]

  (2) The assertion  that the national
 limits cannot be achieved with the
 appropriate waste treatment facilities
installed, if such assertion is not based
on factors) listed in paragraph (d) of
this section;
 [Comment- Review of the Administrator's
 action in promulgating national limits is
 available only through the judicial review
 procedures set forth in section 509(b) of the
 Act]

   (3) The discharger's ability to pay for
 the required waste treatment; or
   (4) The impact of a discharge on local
 receiving .water quality.
   (f) Nothing in this section shall be
 construed to impair the right of any
 State  or locality under section 510 of the
 Act to impose more stringent limitations
 than those required by Federal law.

 § 125.32  Method of application.
   (a) A written request for a variance
 under this Subpart shall be submitted in
 duplicate to the Director in accordance
 with Part 124 Subpart F.
   (b) The burden is on the person
 requesting the variance to explain that:
   (1) Factor(s) listed in § 125.31(b)
 regarding the discharger's facility are
 fundamentally different from the factors
 EPA considered in establishing the
 national limits. The requester should
 refer to all relevant material and
 information, such as the published
 guideline regulations development
 document, all associated technical and
 economic data collected for use in
 developing  each national limit, all
 records of legal proceedings, and all
 written and printed documentation
 including records of communication,
 etc., relevant to the regulations which
 are kept on public file by the EPA;
   (2) The alternative limitations
 requested are justified by the
 fundamental difference alleged in
 paragraph (b)(l) of this section; and
   [3) The appropriate requirements of
 § 125.31 have been met.          ,   • "

 Subpart E—Criteria for Granting
 Economic Variances from Best
 Available Technology Economically
 Achievable Under Section 301(c) of the
 Act—[Reserved]

 Subpart F—Criteria for Granting Water
 Quality Related Variances Under
 Section 301(g) of the Act—[Reserved]

 Subpart G—Criteria for Modifying the
 Secondary Treatment Requirement
 Under Section 301(h)  of the Act—
 [Reserved]

 Subpart H—Criteria for Determining   •
 Alternative  Effluent Limitations Under
 Section 316(a) of the Act

 § 125.70  Purpose and scope.
  Section 316(a) of the-Act provides
that
  "With respect to any point source
otherwise subject to the provisions of section
301 or section 306 of this Act whenever the
owner or operator of any such source, after
opportunity for public hearing, can
demonstrate to the satisfaction of the .
Administrator (or, if appropriate, the State)
that any effluent limitation proposed for the~
control of the thermal component of any
discharge from such source will require
effluent limitations more stringent than
necessary to assure the projection [sic] and
propagation of a balanced, indigenous
population of shellfish, fish and wildlife in
and on the body of water into which the
discharge is to be made, the Administrator
(or, if appropriate, the State) may impose an
effluent limitation under such sections on
such plant with respect to the thermal
component of such discharge (taking into
account the interaction of such thermal
component with other pollutants), that will
assure the protection and propagation of a
balanced indigenous population of shellfish.
fish and wildlife in and on that body of
water."

This Subpart describes the factors,
criteria and standards for the
establishment of alternative thermal
effluent limitations under section 316{a)
of the Act in permits issued under
section 402(a] of the Act.

§ 125.71  Definitions.
  For the purpose of this Subpart:
  (a) "Alternative effluent limitations"
means all effluent limitations or
standards of performance for the control
of the thermal component of any
discharge which are established under
section 316(a) and this Subpart.
  (b) "Representative important
species" means species which are
representative, in terms of their
biological needs, of a balanced,
indigenous community of shellfish, fish
and wildlife in the body of water into
which a discharge of heat is made.
  (c) The term "balanced, indigenous
community" is synonymous with the
term "balanced, indigenous population"
in the Act and means a biotic
community typically characterized by
diversity, the capacity to sustain itself
through cyclic seasonal changes,
presence of necessary food chain
species and by a lack of domination by
pollution tolerant species. Such a
community may include historically
non-native species introduced in
connection with a program of wildlife
management and species whose
presence or abundance results from
substantial, irreversible environmental
modifications. Normally, however, such
a community will not include species
whose presence or abundance is
attributable to the introduction of
pollutants that will be eliminated by
compliance by all sources with section

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  32952       Federal Register / Vol. 44. No. I'll / Thursday. June 7. 1979 / Rules and Regulations
  301 [b)(2) of the Act; and may not include
  species whose presence or abundance is
  attributable to alternative effluent
  limitations imposed pursuant to section
  316(a).      -

  § 125.72 Early screening of applications
  for section 316(a) variances.
    (a) Any initial application for a
  section 316(a) variance shall include the
  following early screening information:
    (1) A description of the alternative
  effluent limitation requested;
    [2] A general description of the
  method by which the discharger
  proposes to demonstrate that the
  otherwise applicable thermal discharge
  effluent limitations are more stringent
  than necessary;
    (3) A general description of the type of
  data, studies, experiments and other
  information which the discharger
  intends to submit for the demonstration:
  and
    (4) Such data and information as may
  be available to assist the Director in
 .selecting the appropriate representative
  important species.
    (b) After submitting the early
  screening information under paragraph
  (a), the discharger shall consult with the
  Director at the earliest practicable time
  [but not later than 30 days after the
  application is filed) to discuss the
  discharger's early screening information.
  Within  60 days after the application is
  filed, the discharger shall submit for the
  Director's approval  a detailed plan of
  study which the discharger will
  undertake to support its section 316(a)
  demonstration. The  discharger shall
  specify  the nature and extent of the
  following type of information to be
 included in the plan of study: biological,
 hydrographies! and  meteorological data;
 physical monitoring data; engineering or
 diffusion models; laboratory studies;
 representative important species; and
 other relevant information. In selecting
 representative important species,  i
 special consideration shall be given to
 species mentioned in applicable water
 quality standards. After the discharger
 submits  its detailed plan of study, the
 Director shall either  approve the plan or
 specify any necessary revisions to the.
 plan. The discharger shall provide any
 additional information or studies which
 the Director subsequently determines
.necessary to support the demonstration,
 including such studies or inspections as
 may be necessary to  select
 representative important species. The
 discharger may provide any additional
 information or studies which the
 discharger feels are appropriate to
support the demonstration.
    (c) Any application for the renewal of
  a section 316(a] variance shall include
  only such information described in
  paragraphs (a) and (b) of this section
  and 1124.73(c)(l) as the Director
  requests within 60 days after receipt of
  the permit application.
    (d) The Director shall promptly notify
  the Secretary of Commerce and the
  Secretary of the Interior, and any
  affected State of the filing of the. request
-  and shall consider any timely
  recommendations they submit
  • (e) In making the demonstration the
  discharger shall consider any
  information or guidance published by
  EPA to assist hi making such
  demonstrations.
    (f) If an applicant desires a ruling on a
  section 316{a) application before the
  ruling on any other necessary permit
  terms and conditions, (as provided by
  § 124.57), it shall so request upon filing
 its application under paragraph (a) of
  this section. This request shall be
  granted or denied in the discretion of the
  Director.
  [Comment At the expiration of the permit,
  any discharger holding a section 316{a)
  variance should be prepared to support the  ,
  continuation of the variance with studies
  based on the discharger's actual operation
  experience.]           •

  §125.73  Criteria and standards for the
  determination of alternative effluent
  limitations under section 316(3).
    (a) Thermal discharge effluent
 limitations or standards established in
 permits may be less stringent than those
 required by applicable standards and
 limitations if the discharger
 demonstrates to the satisfaction of the
 olrector that such effluent limitations
 are more stringent than necessary to
 assure the protection and propagation of
 a balanced, indigenous community of
 shellfish, fish and wildlife in and on the
 body of water into which the discharge
 is made. This demonstration must show
 that the alternative effluent limitation
 desired by the discharger, considering
 the cumulative impact of its thermal
 discharge together with all other
 significant impacts on the species
 affected, will assure the protection and
 propagation of a balanced indigenous
 community of shellfish, fish and wildlife
 in and on the body of water into which
 the discharge is to be made.
   (b) In determining whether or not the
 protection and propagation of the
 affected species will be assured, the
Director may consider any information
contained or referenced in any
applicable thermal water quality criteria
and thermal water quality information
published by the Administrator under
-  section 304(a) of the Act or any other
  information he deems relevant
    (c)(l) Existing dischargers may base
  their demonstration upon the absence of
  prior appreciable harm in lieu of
  predictive studies. Any such
  demonstrations shall show:
    (i) That no appreciable harm has
. resulted from the normal component of
  the discharge (taking into account the
  interaction of such thermal component
  with other pollutants and the additive
  effect of other thermal sources to a
  balanced, indigenous community of
  shellfish, fish and wildlife in and on the
  body of water into which the discharge
  has been made; or                   ;
    (ii) That despite the occurrence of
  such previous harm, the desired   .
  alternative effluent limitations (or
"  appropriate modifications thereof] will
  nevertheless assure the protection and
  propagation of a balanced, indigenous
  community of shellfish, fish and wildlife
  in and on the body of water into which
  the discharge is made.
    (2) In determining whether or not prior
  appreciable harm has occurred, the
  Director shall consider the length of time
  in which the applicant has been
  discharging and the nature of the  •
  discharge.

  Subpart I—Criteria Applicable to
  Cooling Water Intake Structures Under
  Section 316
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              Federal Register / Vol. 44. No. Ill / .Thursday,  June 7. 1979  / Rules and Regulations       32953
 provided that completion of the facility
 and attainment of operational level by
 no later than July, 1,1983, is a
 reasonable expectation.

 § 125.92  Requests for permit modification
 and issuance under section 3C1(iX1) of the
 Act.         i   :
    Any owner or operator of a publicly •
 owned treatment works (POTW) that
 requires  construction to achieve
 limitations under sections 301(b)(l)(B) or
 301(b](l)(C) of the Act may request   -
 modification or issuance of a permit
 extending the date for compliance with
 these limitations in accordance with the
 provisions of § 124.51 (c).

 § 125.93  Criteria for permit modification
 and Issuance under section 301(0(1) of the
 Act
    No request for a permit modification
 or issuance under section 301(i)(l) shall
 be granted unless the Director finds that
 the POTW requires construction to
 achieve limitations under sections
 301(b){l}(B) or 301(b)(lHC) of the Act
 and did not complete construction for
 either of the following reasons:
    (a) The issuance of a notice to
 proceed under a construction contract
 for any segment of Step 3 project work
 (or if notice to proceed is not required,
 the execution of the construction
 ^contract) occurred before July 1,1977,
 but construction could not physically be
 completed by July 1,1977, despite all
 expeditious efforts of the POTW (see
 initiation of construction as defined in
 40 CFR § 35.905 for Step 3); or
   (b) Federal financial assistance was
 not available, or was not available in
 time for construction required to achieve
 these limitations, and the POTW did not
 in  any significant way contribute to this
 unavailability or delay.

 § 125.94 Permit terms and, conditions
 under section 301(0(1) of the Act
   (a) All permits modified or issued by
 the Director under section 301(i)(l) of
 the Act shall contain at a minimum the
 following permit terms and conditions:
   (1) the shortest reasonable schedule of
 compliance for achievement of
 limitations under sections 301(b)(l) fB)
 and (C) but in no event later than July 1,
 1983. This schedule shall be based upon
 the earliest date that Federal financial
 assistance will be available  and
 construction can be completed and on
 any additional information submitted by
 the POTW or otherwise available.
  (i) When a facility plan has been
 approved in accordance with 40 CFR 35,
 Subpart E. this schedule shall contain
 dates certain for the completion of
 actions leading toward the attainment of
statutory treatment limitations.
   (ii) When the POTW has not
 completed Step 1 of the construction
 grants process in accordance with 40
 CFR 35, Subpart E, this schedule shall
 contain a date certain for the
 submission of a facility plan (completion
 of Step 1} upon which date the permit
 should be set to expire. In this case, in
 order to assure compliance by the
 POTW by July 1,1983, the following
 requirements must be met:
   (A) Certification by the State, based
 on its one or five year project priority
 list developed pursuant to 40 CFR
 35.915(c], that funding will be available
 in time to ensure compliance by July 1,
 1983; and
   (B) Reporting once  a year (if
 necessary) by the POTW as to its
 progress in obtaining Federal funding.
 [Comment: EPA recognizes that the date for
 submission of the facility plan may not take
 into account all the uncertainties of the Step 1
 planning process. Because of the
 uncertainties inherent in the Step 1 planning
 process. EPA recommends that section
 301(i)(l) requests (and permit issuance) for
 projects that are presently in Step 2 or 3
 should be acted on before requests from
 projects in Step 1. When Federal funding in
 the form of a Step 2 construction grant award
 is made available, and the Step 1 permit has
 expired, the permit is to be reissued
 containing a date certain schedule derived
 from the facility plan and coordinated with
 the State Project Priority List]

   (2) A statement ensuring compliance
 with requirements under sections 201 (b)
 through (g) of the Act consistent with
 the terms of the POTWs construction
 grant
   (3) Abatement practices and interim
 effluent limitations reflecting optimum
 operation and maintenance of the
 existing facilities. These shall include:
   (i) Adequate operator staffing and
 training;
   (ii) Adequate laboratory and process
 controls; and
   (iii) Effluent limitations derived from
 reports of operation and maintenance
 inspections conducted by EPA or the
 State, or other guidance.
 [Comment: Only in exceptional
 circumstances should in-depth plant
 evaluations he conducted, e.g., when existing
 information does not represent the true
 capabilities of the plant.)

  (4) Interim effluent limitations
 reflecting other non-capital intensive
 measures for increased pollution
 control. This shall include any possible
 minor facility modifications such as
 piping changes, additional metering and
instrumentation or the use of skimming
and vacuuming equipment. When an
existing POTW is currently violating
limitations imposed under section
 301(b)(l)(C) of the Act, interim effluent
 limitations shall be established to
 minimize adverse water quality impact;
 these limitations shall not be made less
 stringent or allow more pollutants to be
 discharged than are currently being
- discharged during the term of an
 extension granted under section 301(i)(l)
 of the Act.
   (b) If a POTW has industrial users,
 any permit issued or modified by the
 Director under section 301(i)(l) shall
 contain any terms and conditions
 necessary to ensure compliance with 40
 CFR 403.

 § 125.95  Requests for permit modification
 or issuance under section 301(0(2) of the
 Act
   Any owner or operator of a point   '
 source other than a POTW that will not
 achieve the requirements of sections
 301(b)(l)(A) and 301(b)(l)(C) of the Act
 because it was scheduled to discharge
 into  a POTW that is presently unable to
 accept the discharge without
 construction, may request modification
 or issuance of a permit extending the
 date of compliance with these
 limitations in accordance with the
 provisions of § 124.51(b).

 § 125.96  Criteria for permit modification
 or issuance under section 301(i)(2) of the
 Act
   No request for a permit modification
 or issuance under section 301(i)(2) of the
 Act shall be granted unless the Director
 finds that the discharger has failed to
 achieve the requirements of sections
 301(b)(l)(A) and 301(b)(l)(C) of the Act
 because it was scheduled to discharge
 into  a POTW that is presently unable to
 accept the discharge without
 construction, and:
   (a) The discharger has indicated an
 intent to discharge into the POTW
 before July 1,1977, in one of the
 following ways:
   (1) The discharger was issued a permit
 before July 1,1977, based upon a
 discharge into a POTW;
   (2) The discharger had a binding
 contractual obligation before July 1,
 1977, (enforceable against the
 discharger) to discharge into a POTW.
 Contracts which can be terminated or
 modified without substantial loss and
 contracts for feasibility, engineering and
 design studies do not constitute a
 contractual obligation under this
 paragraph.
   (3) A construction grant application
 made by the POTW before July 1,1977,
 clearly demonstrated that the  discharger
 was to discharge into the POTW; or
   (4) Engineering plans, architectural
plans or working drawings prepared for

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  32954       Federal Register /  VoL 44.  No. Ill  /  Thursday, June 7, 1979  /  Rules and Regulations
  the POTW before July 1,1977, clearly
  demonstrated the discharger was to
  discharge into the POTW. Plans and
  drawings, such as those accompanying a
  bona fide application for a Federal
  construction grant are sufficient only to
  the extent that they were truly
  representative of the intent of the
  discharger and the POTW;
    (b) The Director finds that the
  discharger has acted in good faith in its
  efforts to effectuate discharge into the
  POTW and to minimize or abate
  pollution prior to discharge into the
  POTW. This shall include the following
  findings:
    (i) Failure of the discharger to meet
  the July 1,1977, deadline was for
  reasons beyond its control;
    (ii) A history of a high degree of
  commitment to meet the requirements of
  the Act as manifested by cooperation
  with the State or EPA in attempting to '
  resolve disputed issues;
    (in) No history of unjustified delay;
    (iv) No past serious or intentional
  violations of the Act; and
    (v) All reasonable measures are being
  taken to expedite compliance.
  [Comment: The Director may also consider
  whether the discharger has operated its
  facilities competently and responsibly and
  the exent to which the discharger has
  completed the necessary prerequisites to
  having its waste treated by the POTW.]
    fc) The POTW will be in operation
  and available to the discharger July 1,
  1983;
    (d) The POTW will be able to meet
  secondary treatment and water quality
  standard effluent limitations by July 1,
 1983, after receiving the waste from the
 discharger;
   (e) The discharger and the POTW
 have entered  into an enforceable
 contract providing that:
   (i) The discharger agrees to discharge
 its waste to the POTW;
   (ii) The POTW agrees to accept and
 treat that waste by a date certain; and •
   (iii) The discharger agrees to pay all
 user charges and industrial cost
 recovery charges required under section
 204 of the Act; and
   (f) In the case of a discharge into an
 existing POTW, such POTW has been
 granted an extension under section
 301(i)(l)oftheAct              —

 § 125.97  Permit terms and conditions
 under section 301(i)(2) of the Act
  All permits modified or issued by the
 Director under section 301(i)(2) of the
 Act shall contain at a minimum the
 following permit terms and conditions:
  (a) The shortest reasonable schedule
of compliance  leading to discharge into
the POTW, not to extend beyond the
  earliest date practicable for compliance,
  or beyond the final compliance date of
  any extension granted to the appropriate
  POTW under section 301(i)(l) of the Act
  but in no event later than July 1,1983.
  This schedule shall be based upon the
  earliest date fay which the appropriate
  POTW can receive the waste from the
  discharger and the discharger can
  complete the necessary prerequisites to
  having its waste treated by that POTW.
   (b) Achievement of effluent
  limitations and standards under sections
  301(b)(l)(A) and 301(b)(l)(C) of the Act
  by the same final date in the schedule
  established in paragraph (a) of this
  section in the event that the permittee
 . does not discharge its wastes to the
  POTW by the date established under
  paragraph (a) of this section.
   (c) Abatement practices and interim
  effluent limitations reflecting optimum
  operation and maintenance of the
  discharger's existing facilities. These
  shall include:
   (1) Effective performance of facility
  design removals;
   (2) Adequate operator staffing and
  training; and
   (3) Adequate laboratory and process
  control.
   (d) Interim effluent limitations
  reflecting other non-capital intensive
 measures for increased pollution
 control.
   (e) Requirements to meet applicable
 toxic effluent standards and
 prohibitions  after they are promulgated
 under section 307(a) of the Act  .
   (f) Requirements to ensure compliance
 with:
   (1) Pretreatment requirements
 imposed by the POTW pursuant  to any
 extension granted to the POTW under
 section 301(i)(l);
   (2) Any State or local pretreatment
 requirements; and
   (3) Pretreatment standards as
 promulgated under section 307(b) of the
 Act
 [Comment- The legislative history cites the
 following example: "[Fjf an industry is
 planning on participating in a municipal
 system which will not be available until
 January 1983, that industry would still have
 to install and operate pretreatment facilities
 within the time specified for compliance at
 the time the  applicable pretreatment standard
 was promulgated and in no event later than
 three years from the date of said
 promulgation. Thus, if the pretreatment
 regulations are promulgated March 1,1979,
 and require compliance within two years,
 that industry would be required to comply by
 March 1,1981." KR. Rep. No. 95-830, 95th
 Cong.. 1st Sess., 12712 (daily ed. Dec. 6,
 1977J.J

  (g) Any water conservation
requirements  necessary to carry out the
 provisions of the Act or imposed by the
 POTW pursuant to the contract
 executed between the discharger and
 the POTW.
 [Comment: The existence of such a contract
 is a prerequisite to granting an extension  -
 under section 301(i)(2){B) of the Act and
 §125.96(e).)  _,  ,

 Subpart K—Criteria and Standards for
 Best Management Practices
 Authorized Under Section 304(e) of the
 Act

 § 125.100 Purpose and scope.
   This Subpart describes how best
 management practices (BMPs) for
 ancillary industrial activities under
 section 304(e] of the Act shall be    	
 reflected in permits, including best
 management practices promulgated in
 effluent limitations under section 304
 and established on a  case-by-case basis
 in permits under section 402(a)(l) of the
 Act. Best management practices
 authorized by section 304(e) are
 included in permits as requirements for
 the purposes of sections 301,302,306,
 307, or 403 of the Act as the case may
 be.

 § 125.101 Definition.
   "Manufacture" means to produce as
 an intermediate or final product or by-
 product     :

 §125.102 Applicability of best
 management practices.
  Dischargers who use, manufacture,
 store, handle or discharge any pollutant
 listed as toxic under section 307(a)(l) of
 the Act or any pollutant listed as
 hazardous under section 311 of the Act
 are subject to the requirements of this
 Subpart for all activities which may
 result in significant amounts of those
 pollutants reaching waters of the United
 States. These activities are ancillary
 manufacturing operations including:
 materials storage areas; in-plant
 transfer, process and material handling
 areas; loading and unloading operations;
 plant site runoff; and sludge and waste
 disposal areas.

 § 125.103  Permit terms and conditions.
  (a] Best management practices shall
 be expressly incorporated into a permit
 where required by an  applicable EPA
 promulgated effluent limitations
 guideline under section 304(e);
  (b) Best management practices may be
 expressly incorporated into a permit on
 a case-by-case basis where determined
 necessary to carry out the provisions of
 the Act under section 402(a)(l). In
issuing a permit containing BMP

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              Federal Register / Vol.  44, No. Ill  /  Thursday, June 7, 1979 / Rules and Regulations      32955
 requirements, the Director shall consider
 the following factors:
   (1) Toxicity of the pollutant(s);
   (2) Quantity of the pollutant(s) used,
 produced, or discharged;
   (3) History of NPDES permit
 violations;   j
   (4) History of significant leaks or
 spills of toxic or hazardous pollutants;
   (5) Potential for adverse impact on
 public health (e.g., proximity to a public
 water supply) or the environment (e-.g.,
 proximity to a sport or commerical
 fishery); and
   (6) Any other factors determined to be
 relevant to the control of toxic or
 hazardous pollutants.
   (c) Best management practices may be
 established in permits under paragraph
 (b) of this section alone or in
 combination with those required under
 paragraph (a) of this section.
   (d) In addition to the requirements of
 paragraphs  (a) and (b) of this section,
 dischargers covered under § 125.102
 shall develop and implement a best
 management practices program in
 accordance with § 125.104 which
 prevents, or minimizes the potential for,
 the release of toxic or hazardous
 pollutants from ancillary activities to
 waters of the United States.

 § 125.104  Best management practices
 programs.
   (a) BMP programs shall be developed
 in accordance with good engineering
 practices and with the provisions of this
 Subpart.
   (b) The BMP program shall:
   (1) Be documented in narrative form,
 and shall include any necessary plot
 plans, drawings or maps;
   (2) Establish specific objectives for the
 control of toxic and hazardous
 pollutants.
   (i) Each facility component or system
 shall be examined for its potential for
 causing a release of significant amounts
 of toxic or hazardous pollutants to
 waters of the United States due to
 equipment failure, improper operation,
 natural phenomena such as rain or
 snowfall, etc.
   (ii) Where experience indicates a
 reasonable potential for equipment
 failure (e.g., a tank overflow or leakage),
 natural condition (e.g., precipitation), or
 other circumstances to result in
 significant amounts of toxic or
 hazardous pollutants reaching surface
 waters, the program should include a
 prediction of the direction, rate of flow
 and total quantity of toxic or hazardous
pollutants which could be discharged
from the facility as a result  of each
condition or circumstance;
   (3) Establish specific best
 management practices to meet the
 objectives identified under paragraph
 (b)(2) of this section, addressing each
 component or system capable of causing
 a release of significant amounts of toxic
 or hazardous pollutants to the waters of
 the United States;
   (4) The BMP program:
   (i) May reflect requirements for Spill
 Prevention Control and Countermeasure
 (SPCC) plans under section 311 of the
 Act and 40 CFR Part 151, and may
 incorporate any part of such plans into
 the BMP program by reference;
 [Comment: EPA has proposed section
 311(j)(l)(c) regulations (43 FR 39276) which
 require facilities subject to NPDES to develop
 and implement SPCC plans  to prevent
 discharges of reportable quantities  of
 designated hazardous substances. While
 Subpart K requires only procedural activities
 and minor construction, the proposed 40 CFR
 151 (SPCC regulations) are more stringent
 and comprehensive with respect to their
 requirements for spill prevention. In
 developing BMP programs in accordance with
 Subpart K, owners or operators should also
 consider the requirements of proposed 40
 CFR 151 which may address many of the
 same areas of the facility covered by this
 Subpart.]
   (ii) Shall assure the proper
 management of solid and hazardous
 waste in accordance with regulations
 promulgated under the Solid Waste
 Disposal Act, as amended by the
 Resource Conservation and Recovery
 Act of 1976 (RCRA) (40 U.S.C. 6901 et
 sag). Management practices required
 under RCRA regulations  shall be
 expressly incorporated into the BMP
 program; and
   (iii) Shall address the following points
 for the ancillary activities in § 125.102:
   (A) Statement of Policy;
   (B) Spill Control Committee;
   (C) Material Inventory,       *
   (D) Material Compatibility;
   (E) Employee Training:
   (F) Reporting and Notification
 Procedures;
   (G) Visual Inspections;
   (H) Preventive Maintenance;
   (I) Housekeeping; and
   (J) Security.
 [Comment: Additional technical information
 on BMPs and the elements of a BMP program
 is contained in a publication entitled "NPDES
 Best Management Practices  Guidance
 Document." Copies may be obtained by
 written request to Edward A. Kramer (EN-
 336), Office of Water Enforcement,
Environmental Protection Agency,
Washington, D.C. 20460.)
  (c)(l) The BMP program must  be
clearly described and submitted as part
of the permit application: An application
which does not contain a  BMP program
shall be considered incomplete. Upon
receipt of the application, the Director
shall approve or modify the program in
accordance with the requirements of
this Subpart. The BMP program as
approved or modified shall be included
in the draft permit (§ 124.31). The BMP
program shall be subject to the
applicable permit issuance requirements
of Part 124, resulting in the incorporation
of the program (including any
modifications of the program resulting
from the permit issuance procedures)
into the final permit.
  (2) Proposed modifications to the BMP
program which affect the discharger's
permit obligations shall be submitted to
the Director for approval. If the Director
approves the proposed BMP program
modification, the permit shall be
modified in accordance with § 122.31,   ;
provided that the Director may waive
the requirements for public notice and
opportunity for hearing on such
modification if he or she determines that
the modification is not significant. The
BMP program,  or modification thereof,
shall be fully implemented as soon as
possible but not later than one year after
permit issuance, modification, or
revocation and reissuance unless the
Director specifies a later date in the
permit.
[Comment: A later date may be specified in
the permit, for example, to enable
coordinated preparation of the BMP program
required under these regulations and the
SPCC plan required under 40 CFR 151 or to
allow for the completion  of construction
projects related to the facility's BMP or SPCC
program.]

  (d) The discharger shall maintain a
description of the BMP program at the
facility and shall make the description
available to the Director upon request. .
  (e) The owner or operator of a facility
subject to this  Subpart shall amend the
BMP program in accordance with the
provisions of this Subpart whenever
there is a change in facility design,
construction, operation, or maintenance
which materially affects the facility's
potential for discharge of significant
amounts of hazardous  or toxic
pollutants into  the waters of the United
States.
  (f) If the BMP program proves to be
ineffective in achieving the general
objective of preventing the release of
significant amounts of toxic or
hazardous pollutants to those waters
and the specific objectives and
requirements under paragraph (b) of this
section, the permit and/or the BMP
program shall be subject to modification
to incorporate revised BMP
requirements.

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 32956
Federal Register / Vol. 44, No. Ill / Thursday, June 7, 1979  /  Rules and Regulations
  Subpart L—Criteria and Standards for
  Imposing Conditions for the Disposal
 .of Sewage Sludge Under Section 405
  of the Act [Reserved]

  Subpart M—Ocean Dumping Criteria
  Under Section 403 of the Act
  [Reserved]

  PART 402—COOLING WATER INTAKE
  STRUCTURES [DELETED]

   a 40 CFR Part 402 is deleted.

  PART 403—GENERAL
  PRETREATMENT REGULATIONS FOR
  EXISTING AND NEW SOURCES OF
  POLLUTION.

   9.40 CFR Part 403 is amended as
  follows:
   A. The Table of Contents is amended
  by revising the heading for | 403.11 to
  read as follows:
 §403.11  Approval procedures for POTW
 pretreatment programs and revision of
 categorical pretreatment standards.
 *****

   B. Section 403.7 is amended by
 revising paragraph (e)(3) to read as
 follows:

 §403.7  [Amended]
 *    *    *    *    *

   (e) * * *  (3) The Regional
 Administrator may agree, in the
 Memorandum of Agreement under 40
 CFR 123.7, to waive the right to review
 and object to Submissions for authority
 to revise discharge limits under this
 section. Such an agreement shall not
 restrict the Regional Administrator's
 right to comment upon or object to
 permits issued to POTWs except to the
 extent permitted under 40 CFR
   C. Section 403.8 is amended by
 revising the Erst sentence of paragraph
 (f)(2)(vii) to read as follows:

 §403.8  [Amended]
 *****

   (f) * * * (2) * * * (vii) Comply with the
 public participation requirements of 40
 CFR Part 25 in the enforcement of
 National Pretreatment Standards.
§403.9  [Amended]
  D. Section 403.9(d) is deleted and
§ § 403.9(e) and (f) are redesignated as
§§ 403.9(d) and (e), respectively.

§403.10 [Amended]
  E Section 403.10(d)(l) is amended by,
deleting the words "set forth in
                         § 403.10(b)" from the first and second
                         sentences.
                           F. Section 403.10 is amended by
                         revising paragraph (f)[l) to read as
                         follows:
                         *    *   -*     *    *  -—
                           (f) * * * (1) Legal Authority. The
                         Attorney General's Statement submitted
                         in accordance with paragraph (g)(l)(i)
                         shall certify that the Director has
                         authority under State law to operate and
                         enforce the State pretreatment program
                         to the extent required by this Part and
                         by "40 CFR 123.32. At a minimum, the
                         Director shall have the authority to:
                         *    *    *     *    *
                           G. Section 403.10 is amended by
                         revising paragraph (g)(l) to read as
                         follows:                  -
                         *    *    *     *  -  *
                           (g)(l)(i) A statement from the State
                         Attorney General (or the Attorney for
                         those State agencies  which have
                         independent legal counsel) that the laws
                         of the State provide adequate authority
                       -  to implement the requirements of this
                         Part. The authorities  cited  by the
                         Attorney General in this statement shall
                         be in the form of lawfully adopted State
                         statutes and regulations which shall be
                         in full force and effect before the time of
                         approval of the State pretreatment
                         program.
                           (ii) Copies  of all State statutes and
                         regulations cited in the above statement.
                         *    *     *     *    *
                           H. Section  403.10 is amended by
                         revising paragraph (g){3) to read as
                         follows:
                         *****

                           (g)***
                           (3} Any modifications or additions to
                         the Memorandum of Agreement
                         (required by 40 CFR 123.7}  which may be
                         necessary for EPA and the State to
                         implement  the requirements of  this Part.
                         *****
                           k Section 403.10 is amended by   	
                         revising paragraph (h)(2) to read as
                         follows:
                       •  **'**-*
                           (h)***
                           (2) Commence the program revision
                         process set out in 40 CFR 123.61. For
                         purposes of that section all requests for
                         approval of State pretreatment programs
                         shall be deemed substantial program
                         modifications. A comment period of at
                         least 30 days and the opportunity for a
                        hearing shall be afforded the public on
                        all such proposed program revisions.
                         ***-•**
                          J. Section 403.10(i) is amended by
                        substituting the words "this Part" for the
                        words "paragraph (g)  of this section" in
                        both places they appear.
  K. The heading of § 403.11 is revised
to read as follows:

§ 403. 1 1  Approval Procedures for POTW
Pretreatment Programs and Revision of
Categorical Pretreatment Standards. .'.  - _
  L. Section 403.11 is amended by
revising the first sentence to read as
follows:
  "The following procedures shall be
followed in approving or denying
requests forPOTW Pretreatment
Program approval:" .
*    *    *     *    *
  M. Section 403.11 is amended by
deleting all references to | 403.10(f) and
(g).
  N. Section 403.11{a) is amended by
changing the reference hi two places
from "§ 403.9(e) and (f)" to "§ 403.9(d)
and (e)."
  O. Section 403.11(b)[l)(i) is amended
by deleting from the first sentence the
words "shall be published in the Federal
Register in the case of a State
Submission and"
  P. Section 403.11(b){l)(i)(A) is deleted
and subparagraphs (B) and (C) are
redesignated to (A) and (B) respectively.
  Q. Section 403.11 is amended by
revising subparagraph (b)(l)(i)(B),
(formerly (b)(l)(i)(C)), to read as follows:
  (D * * *  •
  (i) *  *  *
  (B) Publication of a notice of request
for approval of the Submission in the
largest daily newspaper within the
jurisdiction(s) served by the POTW.
*****
  R. Section 403.11 is amended by
substituting the words "30 days"
wherever the words "45 days" appear.
  S. Section 403.11(b)(2}{ii) is amended
by deleting the words "a State or."
  T. Section 403.11(e) is amended by
deleting the words "or Director."
[FR DOC..79-17271 Filed 6-0-79; »:45 «aij
BJUJNQ CODE 6S60-01-«

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United States                    Official Business
Environmental Protection           Penalty for Private Use
Agency                        ^$300                               EN-336


Washington DC 20460

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   APPENDIX
DECISION-LOGICS

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                               APPENDIX
                            DECISION LOGIC
                               OVERVIEW


     A decision logic has been developed for this manual to graphically
illustrate the entire NPDES permit process.   It is presented in three
parts:
     •  Figure A-l     NPDES Permit Process
     •  Figure A-2     Subpart H - Evidentiary Hearing Procedures
     •  Figure A-3     Subpart I - Nonadversary Procedures in
                       Initial Licensing

     These diagrams afford a convenient guide to the many elements and
steps of the permit issuance and review process.  Through reference to
instruction symbols, the user is directed to the appropriate hearing format
for the permit in question.

     It is anticipated that this decision logic presentation will be use-
ful to EPA staff involved in the NPDES program, as a checklist to gauge
their own performance and as a ready reference to illustrate the NPDES
process to persons who are not as familiar with it.
                                  A-l

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DIGITALLY

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DIGITALLY

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         PUBLIC NOT ICE
         PER 124.4l||i OF
         ISSUANCE Of
         DRAFT PERMIT.
        COMMENT PERIOD.
         AND/OR PUBLIC
        HEARING AND/OR
           PANEL
           HEARING
           124113  '
                                                                        FILEOW1TH-
                                                                        REGIONAL
                                                                      HEARING CLERK
                                                                         124 120
                     NOTICE 1O RE
                     QUEST ERS AND
                     APPLICANT AND
                   PUBLIC NOTICE Ptl
                       124 4 111)
                       124. HS
                    MOTIONS FOR
                     LEAVE TO
                    PARTICIPATE
                     124.117tal
                                                              M'BMISStON OF
                                                              '\D0tTIONAt
                                                              MAT tBIAt BV
                                                               PARTIES
                                                               174.1201*1
ISSUANCE OF
TRANSCRIPT
RECORD Of
 HEARING
  124 87
 REQUEST TO
CROSS-EXAMINE
 WITNESSES
   124 III
SUPPLEMENTARY
I24.I21IEI


RECORD OF
HEARING PER
124.87
*^___^S*^
                                               PREPARATION OF
                                               ADMINIKlHATtVt
                                                RECORD FOR
                                                FINAL PtRMII
                                                IN CONSENT
                                                 HEARINGS
                                                 122 122H.I
 PARITESMAY
 FILE BRIEFS.
  PROPOSED
  FINDINGS.
 CONCLUSIONS
 AND PERMIT
MODIFICATIONS
   »24.123
PREPARATION OF I
RECOMMENDED f
  DECISION
   124 124
  FILING OF
RECOMMENDED
DECISION WITH
  REGIONAL
  HEARING
  CLEHK
  124.174
COPIES
SERVED ON
AND THE
ADMINISTRATOR
124.124
. ^— '
DAYS

NOTtCE OF
APPEAL ABO
REVIEW!
124.101, 124. lift

                                                                                                                                     o
                                                                                                                                     D
                                                                                                                                     P
                                                                                                                                     O
                                                                         -INSTRUCTION
                FIGURE 8-1. SUBPART 1-NONADVERSARY  PROCEDURES FOR INITIAL LICENSING
                                                       Full size version in Appendix (page A-4)

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INDEX

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                                   INDEX


Administrative record
  for draft permits, 11-10, III-l, III-2, III-ll, II1-12, VI-2, VI-8, A-2
  for final permits, III-2, VI-1 through VI-6, VI-8, A-2
Appeals to the Administrator, II-6, A-2
Application process, II-l through II-3, II-8 through 11-15, A-l, A-2
Applications, II-l through II-15
  case-by-case determination, 11-10, 11-11
  from new sources, II-8, II-9

Delegation of authority, IX-1, IX-4
Denial of permits, II-l, II-2, 11-11
Draft permits, II-l through II-3, II-5, II-9, 11-10, 11-12 through 11-14,
  III-l through 111-12

Evidentiary hearing, II-4, II-5, II-6, 11-11, VII-1 through VII-29, IX-1,
  IX-6, IX-11, A-l, A-3
Ex parte communications, IX-1, IX-2, IX-8, IX-9, IX-10

Final permits, II-l, II-3 through II-6, VI-1 through VI-8, A-2
Forms, see List of Forms, vii

General permits, IX-1, IX-6, IX-7
Grouping parties, IX-1, IX-2, IX-8

Information
  for attorneys, 1-2 through 1-13, II-2, V-5 through V-10, VI-3, VI-4,
    VII-1 through VII-29, VIII-1 through VIII-15, IX-5, IX-8
  for permit writers, 1-2 through 1-13, II-2, II-3, III-l through 111-12,
    IV-3, IV-4, V-2, V-5 through V-10, VI-3, VI-4, VII-1 through VII-29,
    VIII-1 through VIII-15, IX-5, IX-6 through IX-13
  public access to, IX-1, IX-3, IX-4
  for regional hearing clerks and record clerks, 1-8 through 1-11, II-3,
    IV-2, VI-3, VI-4, VII-1 through VII-29, VIII-1 through VIII-15, IX-5, IX-8
Interlocutory appeal, VII-1 through VII-4

Modification requests, II-9, 11-10, 11-14, V-l through V-10
  appeals, V-4
  applications, V-2, V-5 through V-10
  effect on permit, V-3
  procedures for various requests, V-5 through V-10

New sources, IX-1 through IX-13
  applications from, II-8, II-9
Nonadversary hearings, II-4, II-5, VIII-1 through VIII-15, A-l, A-4

Prehearing conference, VII-1, VII-2, VII-7
Production or exchange of documents and data, IX-1, IX-8

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Public comment, II-l, II-3, IV-1, IV-3, IV-4, IV-9, IV-12
  procedures, IV-1, IV-3, IV-4, IV-9, IV-12
  reopening of comment period, IV-4
Public hearings, II-l, II-3, IV-1, IV-3 through IV-7
Public notice, II-l, II-3, IV-1 through IV-12
  forms, see List of Forms, vii
  methods for circulating notice, IV-2, IV-5 through IV-12
  procedures, IV-1 through IV-12

Revocation and reissuance, II-9, 11-10

Service, IX-1, IX-2, IX-5
  extension of time, IX-5
Settlements, IX-1, IX-5
State certification, II-l, II-2, 11-12, 11-13, 11-14
  change in state law, 11-13
Statement of basis, III-l, III-2, III-3, III-4, VII-6
Stipulations, VII-2, VII-27, VII-28, IX-2

Termination of permits
  requests, II-9, 11-10
  procedures, II-9, 11-10, 11-11
Time limitations
  EPA's failure to comply, IX-4

Variance, V-l through V-10
  appeals,  V-l, V-4
  applications, V-l, V-2, V-5 through V-10
  effect on permit, V—3
  procedures for various requests, V-5 through V-10

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