ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, September 21, 1995                   TAG: 9509210050
SECTION: VIRGINIA                    PAGE: C-1   EDITION: METRO 
SOURCE: CATHRYN McCUE STAFF WRITER
DATELINE:                                 LENGTH: Medium


EPA FLUNKS STATE PLAN TO CLEAR AIR

VIRGINIA'S PROGRAM will be taken over by the federal government unless it's changed, the EPA says.

Unless Virginia allows people more freedom to challenge air-pollution permits in court, the Environmental Protection Agency will take over the state's air program, and possibly withhold millions in highway construction funds.

The EPA this week issued its proposal to reject the state's plan for implementing the Clean Air Act of 1990, which requires certain industries to get an operating permit. The EPA published a notice Tuesday in the Federal Register, giving the public until Oct. 18 to comment.

The move means that Virginia businesses may have to seek approval for the permits from EPA's regional office in Philadelphia beginning in July, said agency spokeswoman Ruth Podems.

It could also mean the loss of up to $1 billion in federal funding for Virginia transportation projects.

``We are hoping Virginia sees the light. This was all supposed to be taken care of `back when,''' Podems said.

The agency noted three reasons to reject Virginia's plan, the chief one being the state's restrictions on who has "standing" - the right to legally challenge air pollution permits issued by the state.

Virginia law requires citizens who want to challenge a permit to show substantial, immediate and financial harm. Federal law says that's too narrow, according to the EPA.

The administration of Gov. George Allen stood firm Wednesday in its position that Virginia's "standing" laws are sufficient, and that the EPA is overstepping its authority by threatening sanctions.

"I think it's pretty clear what the administration's position is," said Peter Schmidt, director of the Virginia Department of Environmental Quality.

The General Assembly would have to vote to change the standing law. Nonetheless, Allen and Attorney General Jim Gilmore sued the EPA in January, raising a constitutional challenge to the federal government's right to punish states into complying with the federal air law. The case is scheduled to be heard Sept.28.

A court decision favorable to Virginia could thwart the EPA's attempt to take over the air program, Schmidt said.

And, he added, Congress might cut the EPA's budget and curtail the agency's power to enforce the Clean Air Act, as is currently being considered on Capitol Hill.

Aside from the standing issue, EPA noted two other reasons to reject Virginia's plan: the exact definition of which businesses must apply for an operating permit, and the fees charged by the state to run the program.

"They're not major objections; they're more semantic, but they need to be cleared up" to avoid potential loopholes, Podems said.

Federal law requires industries to pay a minimum permit fee of $25 per ton of emissions.

Virginia wants to charge a maximum of $25 per ton. That would be enough to cover the costs of administering the program, Schmidt said, and the law allows the state to increase the fee if necessary.

Also, the EPA is taking issue with about 12 individual sources that would not be required to get an operating permit under Virginia's plan, Schmidt said. "We've gone back and forth with them on this," he said.



 by CNB