06/30/82

Guidance on EPA's Compliance Monitoring Overview Program

                                JUNE 30, 1982


SUBJECT:  Guidance on EPA's Compliance Monitoring Overview Program


FROM:     Kathleen M. Bennet
          Assistant Administrator for Air, Noise and Radiation


TO:       Regional Administrators, Regions I-X


     To following guidance presents current EPA policy relative to EPA's
traditional compliance monitoring overview program.  This memorandum
confirms earlier informal guidance to restructure that program in a more
cost-effective, less confrontational manner.  It might be useful
initially to put this guidance in context.
     As you are aware, the Clean Air Act establishes a rather complex
framework for the State and Federal government to follow in protecting
and enhancing the quality of the Nation's air resources.  Section 101
of the Act states that the prevention and control of air pollution at
its source is the primary responsibility of State and local governments
and that Federal financial assistance and leadership is essential for
the development of cooperative Federal, State, Regional, and local
programs to prevent and control air pollution.
     Although the Act places the primary responsibility for the control
of air pollution with State and local governments, it also establishes
substantial responsibilities for the Federal governments.  For example,
if a State fails to implement and enforce a State implementation plan
then the Federal government has an independent obligation in accordance
with Section 113 of the Act to assure that sources comply with the
requirements of the State plan.  Additionally, Section 301 of the Act
requires that the Federal government establish procedures to assure an
adequate quality audit of each State's performance and adherence to
the requirements of the Act in implementing and enforcing the Act,
particularly in the review of new sources and in enforcement.
     As can be seen by this brief review, the Clean Air Act requires
that the State and Federal government share the responsibilities of
implementation and enforcement of the Act.  Since the States have the
primary role, the Federal government must rely largely on State
activities and data to assess whether the job is getting done.  To

                            -2-


enable the EPA to fulfill its responsibilities, EPA established and has
maintained an overview program with the goal of assuring the quality of
State-reported information.
     EPA's compliance monitoring overview program has traditionally
taken the form of an inspection program where state-reported compliance
information was independently verified by EPA ( or its contractor ).  In
the past, the Agency would inspect from five to ten percent of the
sources reported by the States as being in compliance to verify their
compliance status.  While this program generally accomplished
its objectives, it was very resource-intensive, occasionally caused
disagreements with the States over use of contractor personnel in this
program, and often provided insufficient feedback to the States on their
performance.
     A better way of accomplishing the same result and more in the
spirit of establishing a better partnership with the States is to per
form a qualitative audit.  Such an audit should look at all elements of
a State's air compliance monitoring program, including such factors as
(1) the level of skill and training of the inspectors, (2) how sources
are selected to be inspected or tested, (3) how inspections are carried
out, and (4) the procedures used to address violating sources.  This
might selected independent inspections, as you and the State see fit.
     The Section 105 audits presently provide an excellent avenue for
assessing State programs.  Should this not be the most advantageous
means, a separate overview best suited to both the Region and the State
should be designed.  The information gathered during the audit should
be discussed with the agency concerned and, where necessary, should
result in EPA arranging workshops and training to improve upon existing
skills with the ultimate objective of improving the quality and
effectiveness of State programs.
     This guidance supersedes earlier program guidance on the overview
program.  As informally communicated to the Regional Offices earlier
this fiscal year, the Regions should be proceeding to establish a
program along these lines.
     For further information on the compliance monitoring overview
program, please contact Edward Reich at 382-2807 or John Rasnic at
382-2826.