[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: 40CFR21.5]

[Page 250-251]
 
                   TITLE 40--PROTECTION OF ENVIRONMENT
 
               CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY
 
PART 21_SMALL BUSINESS--Table of Contents
 
Sec. 21.5  Issuance of statements.

    (a) Upon application by a small business concern pursuant to Sec. 
21.3 the Regional Administrator will, if he finds that the additions, 
alterations, or methods of operation covered by the application are 
adequate and necessary to comply with an applicable standard, issue a 
written statement to the applicant to that effect, within 45 working 
days following receipt of the application, or within 45 working days 
following receipt of all information required to be submitted pursuant 
to Sec. 21.3(c), whichever is later. Such a written statement shall be 
classified as a full approval. If an application is deficient in any 
respect, with regard to the specifications for submission listed in 
Sec. 21.3(c), the Regional Administrator shall promptly, but in no 
event later than 30 working days following receipt of the application, 
notify the applicant of such deficiency.
    (b)(1) If an application contains proposed alterations, additions, 
or methods of operation that are adequate and necessary to comply with 
an applicable standard but also contains proposed alterations, 
additions, or methods of operation that are not necessary to comply with 
an applicable standard, the Regional Administrator shall conditionally 
approve the application within the time limit specified in paragraph (a) 
of this section, and shall also identify in the approval those 
alterations, additions, or methods of operation that he determines are 
not necessary.
    (2) Conditional approvals as contained in a statement will satisfy 
the requirements for approval by EPA for those alterations, additions, 
or methods of operation determined to be necessary and adequate. Such 
conditional approvals may be submitted to SBA in satisfaction of the 
requirements of section 7(g)(2)(B) of the Small Business Act.
    (3) Conditional approvals will not satisfy the requirements for 
approval by EPA for those alterations, additions, or methods of 
operation included in the application that are determined not to be 
necessary. Unnecessary alterations, additions, or methods of operation 
are those which are extraneous to the achievement of an applicable 
standard.
    (4) Conditional approvals may be appealed to the Deputy 
Administrator by an applicant in accordance with the procedures 
identified in Sec. 21.8.
    (c) If the Regional Administrator determines that the additions, 
alterations, or methods of operation covered by an application are not 
necessary and adequate to comply with an applicable standard, he shall 
disapprove the application and shall so advise the applicant of such 
determination within the time limit specified in paragraph

[[Page 251]]

(a) of this section, and shall state in writing the reasons for his 
determination.
    (d) Any application shall be disapproved if the Regional 
Administrator determines that the proposed addition, alteration, or 
method of operation would result in the violation of any other 
requirement of this Act, or of any other Federal or State law or 
regulation with respect to the protection of the environment.
    (e) An applicant need not demonstrate that its facility or method of 
operation will meet all applicable requirements established under the 
Act. The applicant need only demonstrate that the additions, 
alterations, or methods of operation will assist in ensuring compliance 
with one or more of the applicable standards for which financial 
assistance is being requested.

    Comment: As an example, a small business has two discharge pipes--
one for process water, the other for cooling water. The application for 
loan assistance is to control pollution from the process water 
discharge. However, EPA or a State may review the applicant's situation 
and identify for SBA that the applicant is subject to other requirements 
for which the applicant has not sought assistance.

    (f) An application should not include major alternative designs 
significantly differing in scope, concept, or capability. It is expected 
that the applicant at the time of submission will have selected the most 
appropriate or suitable design for the addition, alteration, or method 
of operation.
    (g) EPA will not provide assistance in the form of engineering, 
design, planning or other technical services to any applicant in the 
preparation of his application.
    (h) An applicant may be issued a certification for additions, 
alterations, or methods of operation constructed or undertaken before 
loan assistance was applied for by the applicant. Any such applications 
would be reviewed by SBA for eligibility under SBA criteria, including 
refinancing and loan exposure.