[Code of Federal Regulations]
[Title 40, Volume 1]
[Revised as of July 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR21.12]

[Page 253-255]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
               CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY
 
PART 21_SMALL BUSINESS--Table of Contents
 
Sec. 21.12  State issued statements.

    (a) Any State after the effective date of these regulations may 
submit to the

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Regional Administrator for his approval an application to conduct a 
program for issuing statements under this section.
    (1) A State submission shall specify the organizational, legal, 
financial, and administrative resources and procedures that it believes 
will enable it to conduct the program.
    (2) The State program shall constitute an equivalent effort to that 
required of EPA under this section.
    (3) The State organization responsible for conducting the program 
should be the State water pollution control agency, as defined in 
section 502 of the Act.
    (4) The State submission shall propose a procedure for adjudicating 
applicant appeals as provided under Sec. 21.9.
    (5) The State submission shall identify any existing or potential 
conflicts of interest on the part of any personnel who will or may 
review or approve applications.
    (i) A conflict of interest shall exist where the reviewing official 
is the spouse of or dependent (as defined in the Tax Code, 26 U.S.C. 
152) of an owner, partner, or principal officer of the small business, 
or where he has or is receiving from the small business concern 
applicant 10 percent of gross personal income for a calendar year, 
except that it shall mean 50 percent gross personal income for a 
calendar year if the recipient is over 60 years of age and is receiving 
such portion pursuant to retirement, pension, or similar arrangements.
    (ii) If the State is unable to provide alternative parties to review 
or approve any application subject to conflict of interest, the Regional 
Administrator shall review and approve the application.
    (b) The Regional Administrator, within 60 days after such 
application, shall approve any State program that conforms to the 
requirements of this section. Any such approval shall be after 
sufficient notice has been provided to the Regional Director of SBA.
    (c) If the Regional Administrator disapproves the application, he 
shall notify the State, in writing, of any deficiency in its 
application. A State may resubmit an amended application at any later 
time.
    (d) Upon approval of a State submission, EPA will suspend all review 
of applications and issuance of statements for small businesses in that 
State, pending transferral. Provided, however, That in the event of a 
State conflict of interest as identified in Sec. 21.12(a)(4) of this 
section, EPA shall review the application and issue the statement.
    (e) Any applications shall, if received by an EPA Regional Office, 
be forwarded promptly to the appropriate State for action pursuant to 
section 7(g)(2) of the Small Business Act and these regulations.
    (f)(1) EPA will generally not review or approve individual 
statements issued by a State. However, SBA, upon receipt and review of a 
State approved statement may request the Regional Administrator of EPA 
to review the statement. The Regional Administrator, upon such request 
can further approve or disapprove the State issued statement, in 
accordance with the requirements of Sec. 21.5.
    (2) The Regional Administrator will periodically review State 
program performance. In the event of State program deficiencies the 
Regional Administrator will notify the State of such deficiencies.
    (3) During that period that any State's program is classified as 
deficient, statements issued by a State shall also be sent to the 
Regional Administrator for review. The Regional Administrator shall 
notify the State, the applicant, and the SBA of any determination 
subsequently made, in accordance with Sec. 21.5, on any such statement.
    (i) If within 60 days after notice of such deficiencies has been 
provided, the State has not taken corrective efforts, and if the 
deficiencies significantly affect the conduct of the program, the 
Regional Administrator, after sufficient notice has been provided to the 
Regional Director of SBA, shall withdraw the approval of the State 
program.
    (ii) Any State whose program is withdrawn and whose deficiencies 
have been corrected may later reapply as provided in Sec. 21.12(a).
    (g) Funds appropriated under section 106 of the Act may be utilized 
by a

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State agency authorized to receive such funds in conducting this 
program.