August 21, 1995

                                FACT SHEET

       SUPPLEMENTAL NOTICE PROPOSING REVISIONS TO THE CLEAN AIR ACT
OPERATING PERMITS REGULATIONS

TODAY'S ACTION...

    In August 1994, the Environmental Protection Agency (EPA)
     proposed revisions to its operating permits programs under
     the permits provision (Title V) of the Clean Air Act.  EPA
     is today issuing a supplement to its August 1994 proposal. 

    EPA's supplemental proposal will significantly simplify and
     streamline the process for revising operating permits as
     well as other provisions of the operating permits program.
     Simplifying the operating permits revisions process was part
     of President Clinton's Regulatory Reinvention initiative
     announced earlier this year.  EPA's proposal will also
     ensure adequate opportunity for public review of proposed
     operational changes at facilities that could have
     significant environmental impacts.  

    EPA developed the supplemental proposal with extensive input
     from stakeholders, including representatives from industry,
     states, and the environmental community.

WHY IS EPA ISSUING A SUPPLEMENTAL PROPOSAL?

    EPA promulgated the operating permits regulation on July 21,
     1992.  Many of the provisions of the final regulation were
     legally challenged by representatives from state and local
     agencies, industry, and environmental groups.  As a result
     of negotiations with these groups, the Agency proposed
     changes to the rule in August 1994 that addressed many of
     the issues raised during litigation.  The result, however,
     was a proposal that stakeholders believed was too
     complicated and administratively burdensome.   EPA agreed
     with many of these criticisms and has worked closely with
     stakeholders over the past year to develop a supplemental
     proposal that will create a more flexible and streamlined
     operating permits program. 

HOW DOES EPA'S SUPPLEMENTAL PROPOSAL PROVIDE FLEXIBILITY TO
INDUSTRY AND STATES?

    EPA's supplemental proposal provides states with much more
     flexibility in meeting their requirements under the Clean
     Air Act by allowing them to build on their existing state
     permits programs.  This will minimize duplicative
     requirements and save time and money.

    Today's proposal significantly simplifies the process for
     revising operating permits, which gives industry greater
     flexibility to make operational changes while still
     providing for public participation and review.  

    EPA has also taken a number of other steps to simplify the
     operating permits program and assist states and industry in
     meeting their requirements under the Clean Air Act.  For
     example, in July 1995, EPA issued a guidance document, known
     as the "white paper," to clarify EPA's view of the minimum
     federal requirements under the current regulation for permit
     applications.  These clarifications should enable states to
     implement several streamlining actions to address concerns
     over the size and cost of permit applications.

WHAT ARE THE MAIN COMPONENTS OF EPA'S SUPPLEMENTAL PROPOSAL?

    EPA's supplemental proposal includes provisions which
     provide for the advance approval of many changes at
     facilities through the use of "flexible" permits.  These
     provisions allow facilities to make operational changes
     without going through the process of revising their
     operating permits.

    In particular, the supplemental proposal promotes a flexible
     approach to permitting that is already being piloted in a
     project with several participating facilities nationwide. 
     "Flexible" permits allow facilities to make process changes
     without modifying their permits.  EPA continues to explore
     different ways flexible permits can be used by facilities
     for meeting requirements under Title V of the Clean Air Act. 
      
    Where a permit revision is necessary, states would have the
     flexibility to match the amount of public review to the
     environmental significance of an operational change at a
     facility.  States would not be required to provide for
     public or EPA review of changes that are de minimis---this
     allows for small changes without delays.

    Most changes approved under the state minor source
     preconstruction review programs can automatically be
     incorporated into the Title V permit without additional
     processing.  This eliminates any delay that could have been 
     imposed by Title V.

    EPA's ability to object to permit revisions would be
     restricted to only the most environmentally significant
     changes, such as major emission increases.  The proposal
     will include a waiver of EPA's veto opportunity for "less
     environmentally significant" changes, which constitute the
     vast majority of changes at facilities requiring a permit
     revision, for a five-year period, during which EPA will
     audit how well state programs are working.  EPA would
     exercise its veto authority during the five-year period if a
     meritorious petition were received from a citizen that a
     proposed revision would have a significant adverse
     environmental effect.  

    Finally, the supplemental proposal contains additional
     provisions to resolve outstanding litigation on source
     certifications and emergency defense provisions and to
     facilitate improved implementation of the program.  For
     example, it clarifies that most research and development
     activities that are co-located with manufacturing operations
     will be exempt from the Title V operating permits process.

HOW MUCH WILL THE SUPPLEMENTAL PROPOSAL COST?

    EPA's supplemental proposal will save industry about $600
     million annually compared to the costs of the permit
     revision process under the current regulation. 

FOR FURTHER INFORMATION...

    Anyone with a computer and a modem can download the
     supplemental proposal from the Clean Air Act Amendments
     bulletin board (look under "Recently Signed Rules") on EPA's
     Technology Transfer Network by calling (919) 541-5742.  For
     further information about how to access the board, call
     (919) 541-5384.  For further information about the
     supplemental proposal, call Mike Trutna at (919) 541-5345,
     Roger Powell at (919) 541-5331, or Ray Vogel at (919) 541-
     3153.



























              BACKGROUND: EPA'S OPERATING PERMITS PROGRAM    
     
     The Clean Air Act Amendments of 1990 included sweeping new
revisions requiring all states to develop operating permits
programs that meet certain federal criteria.  The states, in
turn, are to require sources (facilities affected by the proposed
rule) to obtain permits that contain all of their Clean Air Act
requirements.
     
     On July 21, 1992, EPA issued a regulation outlining the
specific minimum requirements that states must meet in their
operating permits program.  State and local agencies were
required to submit programs to EPA by November 15, 1993, and EPA
is required to approve or disapprove these programs within one
year of their submittal.  (see attached status report on the
operating permits program)  

     EPA's operating permits regulation requires states to
develop comprehensive operating permit programs that cover
"major" sources of air pollution.   Major sources include (1)
those that emit 100 tons/year or more of volatile organic
compounds, carbon monoxide, lead, sulfur dioxide, nitrogen
dioxide, or particulate matter (PM-10) {note: cut-off levels are
lower for more seriously polluted areas}; and (2) those that emit
10 tons/year or more of any single toxic air pollutant
(specifically listed under the Clean Air Act), or those that emit
25 tons/year or more of a combination of toxic air pollutants. 
The primary purpose of the operating permits program is to
improve enforcement by issuing each source a permit that
consolidates all of the Clean Air Act requirements into a
federally enforceable document.

     State programs that "substantially" meet the regulatory
requirements may be granted interim approval for up to two years
by EPA.  To obtain interim approval, programs must satisfy a
number of minimum requirements.  Permitting authorities receiving
interim approval must correct deficiencies in their programs and
submit the corrections to EPA at least six months prior to
expiration of the interim approval.   

     Facilities must submit permit applications to the state or
local permitting authority within one year after EPA's approval
of the program.  Initially, the agencies have three years after
program approval in which to issue all permits.  After a permit
is issued, sources must apply to their permitting authorities to
revise their permits as needed to make changes in the operation
of their facilities.  

     About 20 litigants, including environmental groups,
industry, and states challenged the July 1992 rule primarily on
the provisions for revising permits.  While no final settlement
was reached, in August 1994, EPA issued a proposed rule
describing a new revision procedure that attempted to accommodate
the litigants' varying concerns.  The result, however, was a
proposal that was criticized as being more complicated and
administratively burdensome.  Therefore, EPA worked with
stakeholders to develop the approach in the supplemental
proposal, which is specifically designed to streamline and
simplify the current permit revision process.

     EPA will issue the revisions to the operating permits
program in final form in the Spring of 1996.