TITLE III--STANDARDS AND ENFORCEMENT
SEC. 311. LOCAL PRETREATMENT AUTHORITY.
Section 307 (33 U.S.C. 1317) is amended by adding at the end the following new subsection:
"(f) Local Pretreatment Authority.--
(1) Demonstration.--If, to carry out the purposes identified in paragraph (2), a publicly owned treatment works with an approved pretreatment program demonstrates to the satisfaction of the Administrator, or a State with an approved program under section 402, that--
(A) such publicly owned treatment works is in compliance, and is likely to remain in compliance, with its permit under section 402, including applicable effluent limitations and narrative standards;
(B) such publicly owned treatment works is in compliance, and is likely to remain in compliance, with applicable air emission limitations;
(C) biosolids produced by such publicly owned treatment works meet beneficial use requirements under section 405;
(D) such publicly owned treatment works is likely to continue to meet all applicable State requirements; and
(E) local limits established by such treatment works in its approved pretreatment program are preventing and will continue to prevent the introduction of pollutants into such treatment works that interfere with, pass through, or are otherwise incompatible with such treatment works; the approved pretreatment program shall be modified to allow the publicly owned treatment works to apply approved local limits in lieu of categorical pretreatment standards promulgated under this section.
(2) Purposes.--The publicly owned treatment works may make the demonstration to the Administrator or the State, as the case may be, to apply approved local limits in lieu of categorical pretreatment standards, as the treatment works deems necessary, for the purposes of--
(A) reducing the administrative burden associated with the designation of an 'industrial user' as a 'categorical industrial user'; or
(B) eliminating additional redundant or unnecessary treatment by industrial users which has little or no environmental benefit.
(A) Significant noncompliance.--The publicly owned treatment works may not apply local limits in lieu of categorical pretreatment standards to any industrial user which is in significant noncompliance (as defined by the Administrator) with its approved pretreatment program.
(B) Procedures.--A demonstration to the Administrator or the State under paragraph (1) must be made under the procedures for pretreatment program modification provided under this section and section 402.
(4) Annual review.--
(A) Demonstration relating to ability to meet criteria.--As part of the annual pretreatment report of the publicly owned treatment works to the Administrator or State, the treatment works shall demonstrate that application of local limits in lieu of categorical pretreatment standards has not resulted in the inability of the treatment works to meet the criteria of paragraph (1).
(B) Termination of authority.--If the Administrator or State determines that application of local limits in lieu of categorical pretreatment standards has resulted in the inability of the treatment works to meet the criteria of paragraph (1), the authority of a publicly owned treatment works under this section shall be terminated and any affected industrial user shall have a reasonable period of time to be determined by the Administrator or State, but not to exceed 2 years, to come into compliance with any otherwise applicable requirements of this Act.''.
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