1. (a) Purpose. In order to ensure the continued protection of the public health, safety, and welfare and the environment of this state, upon the determination that any applicant for the issuance or transfer of any permit, license, certification, or operational authority, based on the disclosure statement and other investigation which he or she deems appropriate, has exhibited a history of noncompliance or a pattern of disregard for state or federal environmental laws or regulations or for other just cause, the Director of the Division of Environmental Quality may deny the applicant’s request for the issuance or transfer of any:

   1. (1) Permit;
   2. (2) License;
   3. (3) Certification; or
   4. (4) Operational authority.

2. (b) Disclosure statement.

   1. (1) All applicants for the issuance or transfer of any permit, license, certification, or operational authority under the environmental laws of this state shall submit a disclosure statement to the division unless exempted herein or by applicable law.

   2. (2) The disclosure statement shall include but not be limited to the following information:

      1. (A) The full name, business address, and Social Security number or tax identification number of the applicant and all affiliated persons;
      2. (B) The full name and business address of any legal entity in which the applicant holds a debt or equity interest of at least five percent (5%) or which is a parent company or subsidiary of the applicant and a description of the ongoing organizational relationships as they may impact operations within the state;
      3. (C) A description of the experience and credentials of the applicant, including any past or present permits, licenses, certifications, or operational authorizations relating to environmental rule;
      4. (D) A listing and explanation of any civil or criminal legal actions by government agencies involving environmental protection laws or rules against the applicant and affiliated persons in the ten (10) years immediately preceding the filing of the application, including:

3. (i) Administrative enforcement actions resulting in the imposition of sanctions, permit or license revocations, or denials issued by any state or federal authority;

   1. (ii) Actions that have resulted in a finding or a settlement of a violation; and

      1. (iii) Actions that are pending;
      2. (E) A listing of any federal environmental agency and any other environmental agency outside this state that has or has had regulatory responsibility over the applicant; and

      3. (F) Any other information the director may require that relates to the competency, reliability, or responsibility of the applicant and affiliated persons.

         1. (c) Exemptions.

   2. (1) The following persons or entities are not required to file a disclosure statement:

      1. (A)

         1. (i) Governmental entities, consisting only of subdivisions or agencies of the federal government, agencies of the state government, counties, municipalities, or duly authorized regional solid waste authorities as defined by law.
         2. (ii) This exemption shall not extend to improvement districts or any other subdivision of government which is not specifically instituted by an act of the General Assembly; and
      2. (B) Applicants for a general permit to be issued by the division pursuant to its authority to implement the National Pollutant Discharge Elimination System for storm water discharge or any other person or entity the Arkansas Pollution Control and Ecology Commission may by rule exempt from the submission of a disclosure statement.
   3. (2) Nothing in this section, including the exemptions listed herein, shall be construed as a limitation upon the authority of the director to deny a permit based upon a history of noncompliance to any applicant or for other just cause.

   4. (3)

      1. (A) Any applicant that is a publicly held company required to file periodic reports under the Securities and Exchange Act of 1934, or a wholly owned subsidiary of a publicly held company, shall not be required to submit a disclosure statement, but shall submit the most recent annual and quarterly reports required by the Securities and Exchange Commission which provide information regarding legal proceedings in which the applicant has been involved.
      2. (B) The applicant shall submit such other information as the director may require that relates to the competency, reliability, or responsibility of the applicant and affiliated persons.

   5. (4) For a person or entity seeking a renewal of an expiring permit, license, certification, or operational authorization, the disclosure requirements of this section shall be met if the entity:

      1. (A) Either:

         1. (i) Discloses any change in previously submitted information; or
         2. (ii) Verifies that the previously submitted information remains accurate; and
      2. (B) Submits the information on forms developed by the division.

   6. (5) The Arkansas Pollution Control and Ecology Commission may adopt rules exempting certain permits, licenses, certifications, or operational authorizations from the disclosure requirements and establish reasonable and appropriate disclosure information, if any, required for specific types of permits, licenses, certifications, or operational authorizations based on:

      1. (A) The scope of a:

         1. (i) Permit;
         2. (ii) License;
         3. (iii) Certification; or
         4. (iv) Operational authorization; and

      2. (B) The person or entity that would receive a:

         1. (i) Permit;
         2. (ii) License;
         3. (iii) Certification; or
         4. (iv) Operational authorization.

   7. (6)

      1. (A) Pursuant to the authority of 8 CAR § 11-204(c)(5), the following permits, licenses, certifications, and operational authorizations are exempt from the requirement to submit a disclosure statement:

         1. (i) Hazardous Waste Treatment, Storage, and Disposal Permit Modifications (Class 1, 2, and 3), as defined in 8 CAR pt. 81;
         2. (ii) Phase 1 Consultants, as defined in 8 CAR pt. 84;
         3. (iii) Certifications for Operators of Commercial Hazardous Waste Facilities, as defined in Section 264.16(f) of Regulation 23;
         4. (iv) RST License Renewals, as defined in 8 CAR pt. 80;
         5. (v) Laboratory Certifications, as defined in the Environmental Laboratory Accreditation Program Act, Arkansas Code § 8-2-201 et seq.;
         6. (vi) Individual homeowners seeking coverage under General Permit ARG5500000;
         7. (vii) Wastewater operator licenses, as defined in 8 CAR pt. 22;
         8. (viii) Water permit modifications for permits issued under the authority of the Arkansas Water and Air Pollution Control Act, Arkansas Code § 8-4-101 et seq.;
         9. (ix) Solid waste permit modifications for permits issued under 8 CAR pt. 60;
         10. (x) Solid waste landfill operator license renewals, as defined in 8 CAR pt. 62;
         11. (xi) Air permit modifications for permits issued under 8 CAR pt. 40, 8 CAR pt. 41, and 8 CAR pt. 42; and
         12. (xii) Asbestos certification renewals, as defined in 20 CAR pt. 860.

      2. (B) The exemption from the requirement to submit a disclosure statement shall not be construed as a limitation upon the authority of the director to request any information he or she deems appropriate that may relate to the competency, reliability, or responsibility of the applicant and affiliated persons.

         1. (d) Denial. The director may deny the issuance or transfer of any permit, license, certification, or operational authority if the director finds:
   8. (1) The applicant has misrepresented or concealed any material fact in the application or disclosure statement, or in any other report or certification required herein;
   9. (2) The applicant has obtained or attempted to obtain the issuance or transfer of any permit, license, certification, or operational authority by deliberate falsification or omission of relevant information from disclosure statements;
   10. (3) The applicant has a documented and continuing history of criminal convictions, based upon violations of any state or federal environmental laws or regulations; or

   11. (4)

       1. (A) The applicant or a person affiliated with the applicant to the point of significantly being able to influence the practices or operations of the applicant which could have an impact upon the environment has a documented history of violations of state or federal environmental laws or regulations that evidence a history of noncompliance or a pattern of disregard for state or federal laws or regulations and has either made no attempt or has failed to remediate the disclosed violations.

       2. (B) In making a determination of whether a documented history of violations of state or federal laws or regulations constitutes a history of noncompliance or a pattern of disregard sufficient to deny a permit, the director shall consider:

          1. (i) The nature and details of the violations attributed to the applicant;
          2. (ii) The degree of culpability of the applicant;
          3. (iii)
4. (a) (a) The applicant’s history of violations of state or federal environmental laws or regulations.

5. (b) (b) In determining the applicant’s history of noncompliance, the director shall not consider the applicant’s prior violations of environmental laws or regulations if those violations are addressed in a consent administrative order and the applicant is in compliance with that order;

   1. (iv) Whether the applicant has substantially complied with this state’s statutes, rules, permits, and orders applicable to the applicant in this state relative to the activity for which the permit is sought;

      1. (v) Whether the applicant has substantially complied with other states’ or jurisdictions’ statutes, rules, regulations, permits, and orders applicable to the applicant relative to the activity for which the subject permit is sought;

         1. (vi) Mitigation of the severity of an environmental violation based upon any demonstration of good citizenship by the applicant including, without limitation:
6. (a) (a) Prompt payment of administrative civil penalties;

7. (b) (b) Civil damages;

   1. (c) (c) Cooperation with investigations;

      1. (d) (d) Termination of employment or other relationship with responsible parties or other persons responsible for the activity described in 8 CAR § 11-204(b)(2)(D); or

8. (e) (e) Other demonstration of good citizenship by the applicant that the division finds acceptable;

   1. (vii) Whether the best interests of the public will be served by denial of the permit; and

      1. (viii) Any other information that the director may require from the applicant.

Codification Notes: “RST” means regulated storage tanks.