[Code of Federal Regulations]
[Title 40, Volume 5]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR55.7]

[Page 112-115]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
         CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
 
PART 55_OUTER CONTINENTAL SHELF AIR REGULATIONS--Table of Contents
 
Sec. 55.7  Exemptions.

    (a) Authority and criteria. The Administrator or the delegated 
agency may exempt a source from a control technology requirement of this 
part if the Administrator or the delegated agency finds that compliance 
with the control technology requirement is technically infeasible or 
will cause an unreasonable threat to health and safety.
    (b) Request for an exemption--(1) Permit application required. An 
applicant shall submit a request for an exemption from a control 
technology requirement at the same time as the applicant submits a 
preconstruction or operating permit application to the Administrator or 
delegated agency.
    (2) No permit application required. If no permit or permit 
modification is required, a request for an exemption must be received by 
the Administrator or delegated agency within 60 days from the date the 
control technology requirement is promulgated by EPA.
    (3) Compliance plan. An existing source that submits a compliance 
plan in accordance with Sec. 55.6(b) of this part shall submit all 
requests for exemptions at the same time as the compliance plan. For the 
purpose of applying Sec. 55.7 of this part, a request submitted with a 
compliance plan shall be treated in the same manner as a request that 
does not require a permit application.
    (4) Content of request. (i) The request shall include information 
that demonstrates that compliance with a control technology requirement 
of this part would be technically infeasible or would cause an 
unreasonable threat to health and safety.
    (ii) The request shall include a proposed substitute requirement(s) 
as

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close in stringency to the original requirement as possible.
    (iii) The request shall include an estimate of emission reductions 
that would be achieved by compliance with the original requirement, an 
estimate of emission reductions that would be achieved by compliance 
with the proposed substitute requirement(s) and an estimate of residual 
emissions.
    (iv) The request shall identify emission reductions of a sufficient 
quantity to offset the estimated residual emissions. Sources located 
beyond 25 miles from States' seaward boundaries shall consult with the 
Administrator to identify suitable emission reductions.
    (c) Consultation requirement. If the authority to grant or deny 
exemptions has been delegated, the delegated agency shall consult with 
the Minerals Management Service of the U.S. Department of Interior and 
the U.S. Coast Guard to determine whether the exemption will be granted 
or denied.
    (1) The delegated agency shall transmit to the Administrator 
(through the Regional Office), the Minerals Management Service, and the 
U.S. Coast Guard, a copy of the permit application, or the request if no 
permit is required, within 5 days of its receipt.
    (2) Consensus. If the delegated agency, the Minerals Management 
Service, and the U.S. Coast Guard reach a consensus decision on the 
request within 90 days from the date the delegated agency received the 
request, the delegated agency may issue a preliminary determination in 
accordance with the applicable requirements of paragraph (f) of this 
section.
    (3) No consensus. If the delegated agency, the Minerals Management 
Service, and the U.S. Coast Guard do not reach a consensus decision 
within 90 days from the date the delegated agency received the request, 
the request shall automatically be referred to the Administrator who 
will process the referral in accordance with paragraph (f)(3) of this 
section. The delegated agency shall transmit to the Administrator, 
within 91 days of its receipt, the request and all materials submitted 
with the request, such as the permit application or the compliance plan, 
and any other information considered or developed during the 
consultation process.
    (4) If a request is referred to the Administrator and the delegated 
agency issues a preliminary determination on a permit application before 
the Administrator issues a final decision on the exemption, the 
delegated agency shall include a notice of the opportunity to comment on 
the Administrator's preliminary determination in accordance with the 
procedures of paragraph (f)(4) of this section.
    (5) The Administrator's final decision on a request that has been 
referred pursuant to paragraph (c) of this section shall be incorporated 
into the final permit issued by the delegated agency. If no permit is 
required, the Administrator's final decision on the request shall be 
implemented and enforced by the delegated agency.
    (d) Preliminary determination. The Administrator or delegated agency 
shall issue a preliminary determination in accordance with paragraph (f) 
of this section. A preliminary determination shall propose to grant or 
deny the request for exemption. A preliminary determination to grant the 
request shall include proposed substitute control requirements and 
offsets necessary to comply with the requirements of paragraph (e) of 
this section.
    (e) Grant of exemption. (1) The source shall comply with a 
substitute requirement(s), equal to or as close in stringency to the 
original requirement as possible, as determined by the Administrator or 
delegated agency.
    (2) An OCS source located within 25 miles of States' seaward 
boundaries shall offset residual emissions resulting from the grant of 
an exemption request in accordance with the requirements of the Act and 
the regulations thereunder. The source shall obtain offsets in 
accordance with the applicable requirements as follows:
    (i) If offsets are required in the COA, a new source shall offset 
residual emissions in the same manner as all other new source emissions 
in accordance with the requirements of Sec. 55.5(d) of this part.
    (ii) If offsets are not required in the COA, a new source shall 
comply with an offset ratio of 1:1.

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    (iii) An existing OCS source shall comply with an offset at a ratio 
of 1:1.
    (3) An OCS source located beyond 25 miles from States' seaward 
boundaries shall obtain emission reductions at a ratio determined by the 
Administrator to be adequate to protect State and Federal ambient air 
quality standards and to comply with part C of title I of the Act.
    (f) Administrative procedures and public participation--(1) Request 
submitted with a permit application. If a request is submitted with a 
permit application, the request shall be considered part of the permit 
application and shall be processed accordingly for the purpose of 
administrative procedures and public notice and comment requirements. 
The Administrator shall comply with the requirements of 40 CFR part 124 
and the requirements set forth at Sec. 55.6 of this part. If the 
Administrator has delegated authority to a State, the delegated agency 
shall use its own procedures as deemed adequate by the Administrator in 
accordance with Sec. 55.11 of this part. These procedures must provide 
for public notice and comment on the preliminary determination.
    (2) Request submitted without a permit or with a compliance plan. If 
a permit is not required, the Administrator or the delegated agency 
shall issue a preliminary determination within 90 days from the date the 
request was received, and shall use the procedures set forth at 
paragraph (f)(4) of this section for processing a request.
    (3) Referral. If a request is referred to the Administrator pursuant 
to paragraph (c) of this section, the Administrator shall make a 
preliminary determination no later than 30 days after receipt of the 
request and any accompanying materials transmitted by the delegated 
agency. The Administrator shall use the procedures set forth at 
paragraph (f)(4) of this section for processing a request.
    (4) The Administrator or the delegated agency shall comply with the 
following requirements for processing requests submitted without a 
permit, with a compliance plan, and requests referred to the 
Administrator:
    (i) Issue a preliminary determination to grant or deny the request. 
A preliminary determination by the Administrator to deny a request shall 
be considered a final decision and will be accompanied by the reasons 
for the decision. As such, it is not subject to any further public 
notice, comment, or hearings. Written notice of the denial shall be 
given to the requester.
    (ii) Make available, in at least one location in the COA and NOA, a 
copy of all materials submitted by the requester, a copy of the 
preliminary determination, and a copy or summary of other materials, if 
any, considered in making the preliminary determination.
    (iii) Notify the public, by prominent advertisement in a newspaper 
of general circulation in the COA and NOA, of a 30-day opportunity for 
written public comment on the information submitted by the owner or 
operator and on the preliminary determination.
    (iv) Send a copy of the notice required pursuant to paragraph 
(f)(4)(iii) of this section to the requester, the affected source, each 
person from whom a written request of such notice has been received, and 
the following officials and agencies having jurisdiction over the COA 
and NOA: State and local air pollution control agencies, the chief 
executive of the city and county, the Federal Land Manager of 
potentially affected Class I areas, and any Indian governing body whose 
lands may be affected by emissions from the OCS source.
    (v) Consider written public comments received within 30 days after 
the date the public notice is made available when making the final 
decision on the request. All comments will be made available for public 
inspection. At the time that any final decision is issued, the 
Administrator or delegated agency will issue a response to comments.
    (vi) Make a final decision on the request within 30 days after the 
close of the public comment period. The Administrator or the delegated 
agency will notify, in writing, the applicant and each person who has 
submitted written comments, or from whom a written request of such 
notice has been received, of the final decision and will set forth the 
reasons. Such notification will be made available for public inspection.

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    (5) Within 30 days after the final decision has been made on a 
request, the requester, or any person who filed comments on the 
preliminary determination, may petition the Administrator to review any 
aspect of the decision. Any person who failed to file comments on the 
preliminary decision may petition for administrative review only on the 
changes from the preliminary to the final determination.