The EPA Did Not Ensure that Two of the Largest Air Oversight Agencies Identified and Inspected Potentially Significant Sources of Air Pollution

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Date Issued

Wednesday, July 24, 2024

Submitting OIG

Environmental Protection Agency OIG

Agencies Reviewed/Investigated

Environmental Protection Agency

Report Number

24-P-0049

Report Description

The Clean Air Act requires delegated agencies to work with the EPA to reduce air pollution from stationary sources. From at least 2006, the EPA did not ensure that two large, delegated agencies, the Texas Commission on Environmental Quality, or the TCEQ, and California's South Coast Air Quality Management District, identified a subset of synthetic-minor sources of air pollution, or SM-80s. The permit limitations on SM-80s need to be clear and enforceable because, if the limitations are not adhered to, the source may operate at major source levels and should be subject to more stringent requirements. The EPA's Office of Enforcement and Compliance Assurance's lack of in-depth evaluations of Regions 6 and 9, lack of SM-80 requirements, and reliance on unenforceable guidance contributed to deficiencies we identified in the regional offices' oversight.

Report Type

Audit

Location

United States

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 9 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
Conduct in-depth evaluations to monitor the performance of EPA regional offices oversight of delegated agencies implementation of the EPAs Clean Air Act Stationary Source Compliance Monitoring Strategy.
2	No	$0	$0
Ensure that Region 9 develops a plan to conduct Clean Air Act state reviews of Californias largest air quality management districts every five years, in accordance with the State Review Framework Compliance and Enforcement Program Oversight, SRF Reviewers Guide.
3	No	$0	$0
Formalize a state review framework recommendation resolution process to ensure that the EPAs senior managers and delegated agencies are accountable for the resolution of state review framework recommendations.
4	No	$0	$0
In collaboration with the Office of General Counsel and the Office of Air and Radiation, determine to what extent the Clean Air Act authorizes the EPA to require periodic identification and inspection of nonmajor stationary sources such as SM-80s by states, local government agencies, federally recognized Indian tribes, and U.S. territories. Document the EPAs determination and exercise such authority, if applicable, as the EPA deems appropriate.
5	No	$0	$0
Clarify Agency policies and guidance to: a. Communicate the EPAs expectations for the EPA regions and states, local government agencies, federally recognized Indian tribes, and U.S. territories to identify, inspect, report, and verify data for SM-80 sources. b. Communicate steps the EPA will take, if any, to periodically identify and inspect SM-80s if these entities do not meet such expectations. c. Clearly define SM-80 sources.
6	No	$0	$0
Establish routine training to reinforce EPA guidance and policies regarding delegated Agency requirements and responsibilities to identify and inspect SM-80 sources. Training is to include coordination among EPA regional managers, including division directors, deputy directors, branch chiefs, section chiefs, managers, and staff in the Office of Air and Radiation and the Office of Enforcement and Compliance Assurance.
7	No	$0	$0
In coordination with the Office of Enforcement and Compliance Assurance and the Texas Commission on Environmental Quality, determine a complete and accurate list of SM-80 sources in Texas and ensure that each Clean Air Act Stationary Source Compliance Monitoring Strategy plan includes a list of SM-80s along with an expected inspection date. This corrective action should be completed by August 2025.
8	No	$0	$0
In coordination with the Office of Enforcement and Compliance Assurance and the South Coast Air Quality Management District, confirm that Californias South Coast Air Quality Management Districts list of SM-80 sources is complete and accurate and ensure that the district reports SM-80 data in the EPAs data systems by August 2025.
9	No	$0	$0
Collect and review Californias South Coast Air Quality Management Districts Clean Air Act Stationary Source Compliance Monitoring Strategy plan by October 2026 and biennially thereafter and ensure that each plan includes a list of SM-80 sources along with an expected inspection date.