Announcement of a Supplement to the Delegation of the Title V Permitting Program, Consistent With 40 CFR Part 71, to the Navajo Nation Environmental Protection Agency and the Suspension of Part 71 Fee Collection by USEPA for the Four Corners Steam Electric Station and the Navajo Generating Station, 16773-16775 [E6-4845]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 71, Number 64 (Tuesday, April 4, 2006)]
[Notices]
[Pages 16773-16775]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4845]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-8053-7]


Announcement of a Supplement to the Delegation of the Title V 
Permitting Program, Consistent With 40 CFR Part 71, to the Navajo 
Nation Environmental Protection Agency and the Suspension of Part 71 
Fee Collection by USEPA for the Four Corners Steam Electric Station and 
the Navajo Generating Station

AGENCY: Environmental Protection Agency.

ACTION: Informational notice.

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SUMMARY: The purpose of this notice is to announce that on March 21, 
2006, the United States Environmental Protection Agency (USEPA) granted 
the Navajo Nation Environmental Protection Agency's (NNEPA) request to 
supplement its full delegation of authority to administer the Clean Air

[[Page 16774]]

Act's (the Act) Federal Title V operating permits program to include 
the Four Corners Steam Electric Station and the Navajo Generating 
Station (the Power Plants). Under this supplemental delegation, NNEPA 
will issue and implement Title V operating permits pursuant to 40 CFR 
part 71 for the Power Plants, which are located within the formal 
boundaries of the Navajo Nation reservation, and will otherwise 
administer the program for these sources. The terms and conditions of 
the supplemental delegation are specified in a Supplemental Delegation 
of Authority Agreement (Agreement) between the USEPA Region IX and 
NNEPA, signed and dated on March 21, 2006. Region IX is also 
simultaneously suspending its collection of part 71 fees, pursuant to 
40 CFR 71.9(c)(2)(ii), for the Power Plants.

DATES: The effective date for the Agreement between USEPA and NNEPA, 
and USEPA's suspension of its part 71 fee collection for the Power 
Plants is March 21, 2006.

ADDRESSES: Copies of the letter requesting supplemental delegation of 
authority to administer the Federal operating permits program for the 
Power Plants and the Agreement between USEPA and NNEPA are available 
for public inspection at USEPA's Region IX Office, 75 Hawthorne Street, 
San Francisco, CA 94105 and at the Navajo Nation Environmental 
Protection Agency Air Quality Control Program Office, Rt. 12 North/Bldg 
F004-051, Fort Defiance, AZ 86504. Effective March 21, 2006, 
all notifications, requests, applications, reports and other 
correspondence required under 40 CFR part 71 for the Power Plants shall 
be submitted to NNEPA's Air Quality Control Program Office at the 
following address: Navajo Nation Air Quality Control Program Office, 
P.O. Box 529 Fort Defiance, AZ 86504, Attn: Charlene Nelson. Sources 
will also remain obligated to submit copies of such documents to USEPA 
as set forth in the terms and conditions of their part 71 permits and 
consistent with Section VII(2) of the Agreement.

FOR FURTHER INFORMATION CONTACT: Emmanuelle Rapicavoli, Permits Office 
(AIR-3), 75 Hawthorne Street, San Francisco, CA 94110, Telephone: 415-
972-3969, e-mail: rapicavoli.emmanuelle@epa.gov.

SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce 
that on March 21, 2006, USEPA granted NNEPA's request to supplement its 
existing full delegation of authority to administer the part 71 Federal 
operating permits program to include the Power Plants.
    The Act and its implementing regulations under 40 CFR part 71 
authorize USEPA to delegate authority to administer the part 71 program 
to any eligible Tribe that submits a demonstration of adequate 
regulatory procedures and authority for administration of the part 71 
operating permits program.
    In order to be considered an ``eligible tribe,'' the NNEPA 
submitted, in August 2005, an application for a determination, under 
the provisions of the Tribal Authority Rule (TAR), 40 CFR part 49, that 
it is eligible to be treated in the same manner as a state for the 
purpose of receiving delegation of authority to administer the Federal 
part 71 operating permit program for the Power Plants. Region IX 
reviewed NNEPA's application and determined that it met the four 
criteria for eligibility, identified in 40 CFR 49.6, for the Power 
Plants, and was thus eligible for entering into a supplemental 
delegation agreement with USEPA Region IX to administer the part 71 
program for the Power Plants. USEPA Region IX's eligibility 
determination was signed on March 21, 2006.
    On October 15, 2004, USEPA Region IX and the NNEPA entered into a 
delegation of authority agreement (October 2004 Delegation Agreement) 
to allow NNEPA to administer the Federal part 71 operating permits 
program on behalf of USEPA for all part 71 sources except for the Power 
Plants within a Delegated Program Area specified in that agreement. The 
October 2004 Delegation Agreement excluded the Power Plants because the 
Navajo Nation and the participants of the Power Plants disagree as to 
the Nation's jurisdiction to regulate the Power Plants under a 
delegated Part 71 Program based on the existence of certain provisions 
contained in leases and grants of rights-of-way (the ``Covenants'' and 
``Grants'') as between the Navajo Nation and the two facilities.
    In light of this disagreement, on May 18, 2005, NNEPA entered into 
a voluntary compliance agreement (VCA) with the participants of the 
Power Plants, which provides that the parties will not assert or 
challenge any effect of the Covenants and Grants on the authority of 
NNEPA to administer a delegated part 71 program on behalf of USEPA with 
respect to the Plants or on the applicability to the Plants of the 
requirements of the Navajo Nation laws that have been expressly 
incorporated into a part 71 permit administered by the Navajo Nation 
EPA, without prejudice to their rights to assert or challenge the 
Covenants or Grants after expiration or termination of the VCA. 
Therefore, for so long as the VCA remains in effect, the VCA resolves 
the dispute between the Navajo Nation and the Power Plants as to impact 
of the Covenants or Grants on NNEPA's ability to regulate the Power 
Plants pursuant to the delegation of the administration of the part 71 
Program.
    In August 2005, NNEPA submitted a request to the USEPA Region IX, 
pursuant to 40 CFR 71.10, to supplement the October 2004 Delegation 
Agreement by delegating authority to NNEPA to administer the Part 71 
Program with respect to the Power Plants. As part of its request, NNEPA 
submitted a legal opinion from its attorney general stating that the 
Navajo Nation Air Pollution Prevention and Control Act, the Navajo 
Nation Air Quality Control Program Operating Permit Regulations and the 
VCA provide it adequate authority to carry out all aspects of the 
delegated program for the Power Plants. NNEPA also provided all 
necessary documentation to demonstrate that it has adequate authority 
and adequate resources to administer the part 71 Federal permitting 
program for the Power Plants.
    Pursuant to 40 CFR 71.10(b), USEPA hereby notifies the public that 
effective March 21, 2006, it has granted NNEPA's request and is fully 
delegating the authority to administer the federal operating permits 
program for the Power Plants as set forth under 40 CFR part 71 and in 
the Agreement. The terms and conditions for the supplemental delegation 
are specified in the Agreement between USEPA Region IX and NNEPA signed 
and dated on March 21, 2006.
    If, at any time, USEPA determines that NNEPA is not adequately 
administering or cannot adequately administer the requirements of part 
71 or fulfill the terms of the Agreement, this supplemental delegation 
may be revoked, in whole or in part, pursuant to 40 CFR 71.10(c), after 
appropriate consultation with NNEPA. The Agreement also provides that 
the supplemental delegation will automatically terminate with respect 
to either Power Plant for which the VCA has terminated or expired. 
USEPA will notify the public through a Federal Register notice of a 
partial or full termination of this Agreement.
    Under the supplemental delegation, USEPA retains its authority to 
(1) object to the issuance of any part 71 permit for the Power Plants, 
(2) act upon petitions submitted by the public regarding the Power 
Plants, and (3) collect fees from the owners or operators of the Power 
Plants if it is demonstrated that NNEPA

[[Page 16775]]

is not adequately administering the part 71 program with respect to the 
Power Plants, in accordance with the Agreement, 40 CFR part 71, and/or 
the Act. Because USEPA is retaining its authority to act upon petitions 
submitted pursuant to 40 CFR 71.10(h) and 71.11(n), any such petitions 
must be submitted to USEPA Region IX following the procedures set forth 
in those regulations.
    USEPA also notifies the public, pursuant to 40 CFR 71.9(c)(2)(ii), 
that effective March 21, 2006, it has suspended collection of its part 
71 permit fees for the Power Plants. In delegating the administration 
of the part 71 program, USEPA has determined that NNEPA can collect 
fees under tribal law sufficient to fund the delegated part 71 program 
for the Power Plants and carry out the duties specified in the 
Agreement.

    Dated: March 21, 2006.
Wayne Nastri,
Regional Administrator, Region 9.
 [FR Doc. E6-4845 Filed 4-3-06; 8:45 am]
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