October 9, 2002

Mr. Thomas E. Kelly (MC-2131)
Small Business Advocacy Chair
U.S. Environmental Protection Agency
1200 Pennsylvania Ave., N.W.
Washington, D.C. 20460

Subject: Cooling Water Phase III; Small Entity
Representative Recommendations

Dear Mr. Kelly:
     
     I received your letter on September 23, 2002 regarding
Cooling Water Phase III, notifying us of the possibility of
convening a Small Business Advocacy Review Panel under
609(b) of the Regulatory Flexibility Act, as amended by the
Small Business Regulatory Enforcement Fairness Act of 1996.
     
     After discussions with the U.S. Environmental
Protection Agency (EPA) about the list of small business
representatives, we agree with the list that your office has
provided as an attachment to the formal notice letter.  In
addition, as EPA knows, we are still looking for additional
representatives from the chemical, paper, and steel
industries.

     We understand that EPA plans to re-evaluate whether the
proposal would have a significant impact on a substantial
number of small entities.  If the agency finds no such
impact, a Panel would not be required under SBREFA.  If a
Panel is convened, a final Panel report will be prepared.

     If a Panel is warranted, we ask that EPA provide, in
advance of convening the Panel, supporting materials and
possibly a draft regulatory analysis and/or draft rule (see
RFA 609(b)(4)), in order to allow sufficient review time by
Panel members.  It is important that adequate and timely
information and data is provided to the small entity
representatives and the panel representatives.  We hope to
work with EPA to finalize the information for the formal
small entity representatives before convening the Panel
later this month.
Sincerely,


Thomas M. Sullivan
Chief Counsel for Advocacy

cc: Arthur G. Fraas, Chief
Natural Resources, Energy & Agriculture Branch,
Office of Information and Regulatory Affairs, Office of
Management and Budget