NOTICES

INDEPENDENT REGULATORY REVIEW COMMISSION

Actions Taken by the Commission

[27 Pa.B. 5561]

   The Independent Regulatory Review Commission met publicly at 11 a.m., Thursday, October 9, 1997, and took the following actions:

Regulations Approved:

   Pennsylvania Infrastructure Investment Authority #101-3: Water Pollution Control Revolving Fund (deletes Chapter 962, amends 25 Pa. Code Chapter 963, and adds 25 Pa.Code Chapter 965)

   Department of Agriculture #2-110: Peach and Nectarine Program (amends 7 Pa. Code Chapter 104)

   Environmental Quality Board #7-285: PostMining Discharges/Licensing and Bonding (amends 25 Pa. Code Chapters 86--90)

   Environmental Quality Board #7-314: Nitrogen Oxides Allowance Program (amends 25 Pa. Code Chapters 121 and 123)

   Environmental Quality Board #7-319: Gasoline Volatility (amends 25 Pa. Code Chapters 121, 126 and 139)

Commissioners Present:  John R. McGinley, Jr., Chairperson; Alvin C. Bush; Arthur Coccodrilli

Public Meeting held
October 9, 1997

Pennsylvania Infrastructure Investment Authority--Water Pollution Control Revolving Fund; Doc. No. 101-3

Order

   On July 13, 1995, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Pennsylvania Infrastructure Investment Authority (PIIA). This rulemaking would delete Chapter 962 which is a Statement of Policy on value engineering analysis, amend 25 Pa. Code Chapter 963 Pennsylvania Infrastructure Investment Authority Assistance and add 25 Pa. Code Chapter 965 Clean Water State Revolving Fund. The authority for this regulation is 35 P. S. §§ 751.5(c)(2) and 6(4). The proposed regulation was published in the July 29, 1995 Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on August 22, 1997. The final-form regulation was tolled on September 10, 1997, and resubmitted with amendments on September 18, 1997.

   Chapter 963 already exists and establishes general procedures and criteria for awarding financial assistance under the Pennsylvania Infrastructure Investment Authority Act. Chapter 963 is being amended to add a second opinion project review in place of Chapter 962's Statement of Policy on value engineering analysis. Chapter 965 is a new chapter that creates standards for eligibility and administration of the Clean Water State Revolving Fund (CWSRF).

   The Pennsylvania Infrastructure Investment Authority (PIIA) administers approximately $364 million in Federal funds as a revolving loan program for building and updating of sewerage systems. The CWSRF is in existence and PIIA is presently loaning money to communities. However, PIIA does not have specific regulations for the CWSRF. The proposed amendments are the result of meetings between the PIIA, the Department of Environmental Protection, and the Environmental Protection Agency (EPA). The proposed amendments are necessary to comply with the Water Quality Act of 1987 and various Capitalization Grant Agreements entered into by EPA and the PIIA for the administration of Federal funds allocated to the Commonwealth of Pennsylvania.

   We have reviewed this regulation and find it to be in the public interest. The Pennsylvania State Association of Township Supervisors (Township Supervisors) raised several objections with the final-form regulation. The Township Supervisors main concern was that the ''second opinion review,'' in the body of the regulation, is overly broad compared to the definition of ''second opinion review. It is also unnecessarily intrusive because it would evaluate the complexity of a project and the impact of the project on the community. PIIA defended the provisions with convincing citations to their statutory authority at 35 P. S. §§ 751.10(a) Criteria for obtaining assistance and (b) Financial assistance. Based upon the language of these provisions, we believe the PIIA has adequately addressed the issues raised by the Township Supervisors. The PIIA has also satisfied the concerns raised in the Commission's Comments. Additionally, these regulations will enable the PIIA to improve administration of approximately $364 million in Federal funds.

Therefore, It Is Ordered That:

   1.  Regulation No. 101-3 from the Pennsylvania Infrastructure Investment Authority, as submitted to the Commission on August 22, 1997, and amended on September 18, 1997, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush; Arthur Coccodrilli

Public Meeting held
October 9, 1997

Department of Agriculture--Peach and Nectarine Research Program; Doc. No. 2-110

Order

   On April 18, 1997, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Department of Agriculture (Department). This rulemaking would amend 7 Pa. Code Chapter 104. The authority for this regulation is sections 3 and 11 of the Pennsylvania Agricultural Commodities Marketing Act (act). The proposed regulation was published in the May 3, 1997 Pennsylvania Bulletin with a 30-day public comment period. The final-form regulation was submitted to the Commission on August 6, 1997, tolled on August 20, 1997, and returned without revisions on September 12, 1997.

   The regulation adds a subchapter for the Peach and Nectarine Research Program (Program) which establishes requirements and procedures for payment of producer charges to the Program. Provisions establishing requirements for: a $5 per acre charge on affected producers; submission of an annual statement; deadlines for submission of forms and payments; and penalties for noncompliance.

   We have reviewed this regulation and find it to be in the public interest. The proposal clarifies the extent of the Department's authority and establishes penalty procedures.

Therefore, It Is Ordered That:

   1.  Regulation No. 2-110 from the Department of Agriculture, as submitted to the Commission on September 12, 1997, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present:   John R. McGinley, Jr., Chairperson; Alvin C. Bush; Arthur Coccodrilli

Public Meeting held
October 9, 1997

Environmental Quality Board--Postmining Discharges/Licensing and Bonding; Doc. No. 7-285

Order

   On December 5, 1995, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Environmental Quality Board (Board). This rulemaking would amend 25 Pa. Code Chapters 86--90. The authority for this regulation is sections 4(d), 4.2(a), 4.5(f) and 18.4 of the Surface Mining Conservation and Reclamation Act (52 P. S. §§ 1396.4(d), 1396.4b(a), 1396.4e(f) and 1396.18d); sections 5(b), 315(b) and 605(b) of The Clean Streams Law (35 P. S. §§ 691.5(b), 691.315(b) and 691.605(b)); section 3.2(a) of the Coal Refuse Disposal Control Act (52 P. S. § 30.53b(a)); section 7(b) of The Bituminous Mine Subsidence and Land Conservation Act (52 P. S. § 1406.7(b)); and under Article 1920A of The Administrative Code of 1929 (71 P. S. § 510-20). The proposed regulation was published in the December 16, 1995 Pennsylvania Bulletin with a 60-day public comment period. The final-form regulation was submitted to the Commission on September 9, 1997.

   The proposal addresses statutory changes enacted through Act 173 of 1993 and Act 43 of 1996. The proposal amends existing mining regulations concerning coal mine operator licensing, bonding, postmining pollutional discharges and liability insurance.

   We have reviewed this regulation and find it to be in the public interest. The Commission raised concerns with the reasonableness of the Board's proposed method of calculating the amount of financial assurance required from a mine operator for post-mining discharges. The Mining and Reclamation Advisory Board (MRAB) subsequently requested a broad evaluation of the overall environmental and economic costs associated with postmining pollutional discharges. Further, Department of Environmental Resources (Department) anticipates that there may be changes in Federal oversight on this issue. In light of these developments, the Board has eliminated the financial assurance provisions from this final-form rulemaking and will propose amendments once the MRAB evaluation and Federal issues are sufficiently resolved. Even though this language is removed from the rulemaking. Department and a mine operator can still rely on statutory authority to enter into individual financial assurances for post-mining discharges. Therefore, issues raised in our Comments are resolved concerning this rulemaking.

Therefore, It Is Ordered That:

   1.  Regulation No. 7-285 from the Environmental Quality Board, as submitted to the Commission on September 9, 1997, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush; Arthur Coccodrilli

Public Meeting held
October 9, 1997

Environmental Quality Board--Nitrogen Oxides Allowance Requirements; Doc. No. 7-314

Order

   On April 1, 1997, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Environmental Quality Board (Board). This rulemaking would amend 25 Pa. Code Chapters 121 and 123. The authority for this regulation is the Air Pollution Control Act (35 P. S. § 4005). The proposed regulation was published in the April 12, 1997 Pennsylvania Bulletin with a 60-day public comment period. The final-form regulation was submitted to the Commission on September 17, 1997.

   The Board is amending 25 Pa. Code Chapters 121 and 123 to establish a program to limit the emission of nitrogen oxides (NOx) from fossil fired combustion units of 250 MMBtu/hour or more and electric generating units of 15 megawatts or greater. Ninety-five percent of the affected emissions come from electric generating units which include electric utilities and Independent Power Producers. The remainder are large industrial processes.

   The 1990 Clean Air Act Amendments (CAAA) recognized that ozone is a regional problem. The Northeast Ozone Transport Commission (OTC) was established under the CAAA to assist in developing recommendations for the control of interstate ozone. The OTC member states, including Pennsylvania, proposed a regional approach to address NOx emissions and through a memorandum of understanding agreed to propose regulations for the control of NOx emissions. These regulations are based on, but not identical to, the model regulations.

   The driving force behind this rulemaking is the Federal mandate to reduce ozone in the CAAA. There are 84 electric generating units and large industrial processes in Pennsylvania that will be affected by this regulation. In addition, any new fossil fired source with NOx emissions would be affected.

   We have reviewed this regulation and find it to be in the public interest. The Board has adequately addressed the concerns raised in the Commission's Comments. Furthermore, we anticipate that the Board will adjust the regulations, as necessary, to accommodate the evolution of the new electric generation marketplace.

Therefore, It Is Ordered That:

   1.  Regulation No. 7-314 from the Environmental Quality Board, as submitted to the Commission on September 17, 1997, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present: John R. McGinley, Jr., Chairperson; Alvin C. Bush; Arthur Coccodrilli

Public Meeting held
October 9, 1997

Environmental Quality Board--Gasoline Volatility; Doc. No. 7-319

Order

   On April 21, 1997, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Environmental Quality Board (Board). This rulemaking would amend 25 Pa. Code Chapters 121, 126 and 139. The authority for this regulation is contained in section 5 of the Pennsylvania Air Pollution Control Act (35 P. S. § 4005). The proposed regulation was published in the May 3, 1997 edition of the Pennsylvania Bulletin with a 60-day public comment period. The final-form regulation was submitted to the Commission on September 17, 1997.

   The regulation will require the sale of either low Reid Vapor Pressure (RVP) or Reformulated Gasoline (RFG) during the specified ozone season in the Pittsburgh-Beaver Valley region. For refiners, distributors, resellers, carriers and wholesalers, the time period is May 1 through September 15. For wholesale purchaser consumers and retailers of gasoline, the time period is June 1 through September 15.

   We have reviewed this regulation and find it to be in the public interest. The regulation is necessary to decrease the amount of ground level ozone occurring in the Pittsburgh-Beaver Valley Region. It is a part of the Commonwealth's overall strategy to meet the requirements in the Federal Clean Air Act.

Therefore, It Is Ordered That:

   1.  Regulation No. 7-319 from the Environmental Quality Board, as submitted to the Commission on September 17, 1997, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

JOHN R. MCGINLEY, Jr.   
Chairperson

[Pa.B. Doc. No. 97-1715. Filed for public inspection October 24, 1997, 9:00 a.m.]

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