[Federal Register Volume 60, Number 128 (Wednesday, July 5, 1995)]
[Rules and Regulations]
[Pages 34856-34859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16359]



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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN41-1-6343a; FRL-5251-3]


Approval and Promulgation of Implementation Plans; Indiana VOC 
RACT Catch-ups

AGENCY: Environmental Protection Agency.

ACTION: Direct final rule.

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SUMMARY: On August 3, 1994, the Indiana Department of Environmental 
Management (IDEM)) submitted a SIP revision request which addresses 
certain reasonably available control technology (RACT) requirements 
under the Clean Air Act (Act) applicable to all major sources of 
volatile organic compounds (VOC) located in ozone moderate and above 
nonattainment areas for which the United States Environmental 
Protection Agency (USEPA) has not issued or will not issue a control 
techniques guideline (CTG). The submittal was deemed complete on August 
15, 1994. Indiana supplemented its revision request on February 6, 
1995. The USEPA is approving this submittal in a final action because 
all the pertinent Federal requirements have been met. In the proposed 
rules section of this Federal Register, USEPA is proposing approval of 
and soliciting public comment on this requested SIP revision. If 
adverse comments are received on this action, USEPA will withdraw this 
final rule and address the comments received in response to this action 
in a final rule on the related proposed rule which is being published 
in the proposed rules section of this Federal Register. A second public 
comment period will not be held unless warranted by significant 
revisions to this rulemaking based on any comments received in response 
to this action. Parties interested in commenting on this action should 
do so at this time.

DATES: This action will be effective September 5, 1995, unless an 
adverse comment is received by August 4, 1995.

ADDRESSES: Copies of the revision request and USEPA's analysis 
(Technical Support Document) are available for inspection at the 
following address: U.S. Environmental Protection Agency, Region 5, Air 
and Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois 
60604. (It is recommended that you telephone Rosanne M. Lindsay at 
(312) 353-1151 before visiting the Region 5 Office.)
    A copy of this SIP revision is available for inspection at: Office 
of Air and Radiation (OAR) Document and Information Center (Air Docket 
6102), Room 1500, U.S. Environmental Protection Agency, 401 M St. SW., 
Washington DC 20460.
    Written comments should be sent to: J. Elmer Bortzer, Chief, 
Regulation Development Section, Regulation Development Branch (AR-18J), 
U.S. Environmental Protection Agency, 77 West Jackson Boulevard, 
Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: Rosanne M. Lindsay at (312) 353-1151. 

[[Page 34857]]


SUPPLEMENTARY INFORMATION:

I. Background

    The Act, as amended in 1977, required ozone nonattainment areas to 
adopt RACT rules for sources of VOC emissions. Consequently, the USEPA 
issued three sets of control technique guideline (CTG) documents, 
establishing a ``presumptive norm'' for RACT for various categories of 
VOC sources. The three sets of CTGs are: (1) Group I-issued before 
January 1978 (15 CTGs); (2) Group II-issued in 1978 (9 CTGs); and (3) 
Group III-issued in the early 1980's (5 CTGs). Those sources not 
covered by a CTG are commonly referred to as ``non-CTG sources.''
    The USEPA determined that the area's SIP-approved attainment date 
established which RACT rules the area needed to adopt and implement. 
Under section 172(a)(1), ozone nonattainment areas were generally 
required to attain the ozone standard by December 31, 1982. Those areas 
that submitted an attainment demonstration projecting attainment by 
that date were required to adopt RACT for sources covered by the Group 
I and II CTGs. Those areas that sought an extension of the attainment 
date under section 172(a)(2) to as late as December 31, 1987 were 
required to adopt RACT for all CTG sources and for all major (i.e., 100 
tons per year or more of VOC emissions) non-CTG sources.
    On March 3, 1978, the USEPA designated Lake, Porter, Clark and 
Floyd Counties as nonattainment for ozone, specifying that these areas 
did not meet the primary standards (43 FR 8964). On July 23, 1982, 
USEPA reaffirmed these designations (47 FR 31878). See also 40 CFR 
81.315. As a result, the RACT requirement of Group I, II and III CTGs 
remained applicable in these nonattainment areas. On May 26, 1988, 
USEPA notified the Governor of Indiana that portions of the SIP were 
inadequate to attain and maintain the ozone standard and requested that 
existing SIP deficiencies be corrected (USEPA's post 1987 SIP call).
    On November 15, 1990, Congress amended the 1977 Act. In amended 
section 182(a)(2)(A), Congress statutorily adopted the requirement that 
pre-enacted ozone nonattainment areas that retained their designation 
of nonattainment and were classified as marginal or above correct their 
deficient ozone RACT rules by May 15, 1991 (commonly referred to as the 
RACT ``fix-up'' requirement). The Indiana counties of Lake, Porter, 
Clark and Floyd retained their designations of nonattainment; and were 
classified pursuant to Section 181 as severe (Lake and Porter) and 
moderate (Clark and Floyd) on November 6, 1991 (56 FR 56694). The State 
submitted revisions to meet the RACT fix-up requirement, and USEPA 
approved them on March 6, 1992 (57 FR 8082).
    In addition to making RACT rule corrections, the amended Act in 
Section 182(b)(2) requires States to adopt RACT rules for all areas 
designated nonattainment for ozone and classified as moderate or above. 
There are three parts to the section 182(b)(2) RACT requirement: (1) 
RACT for sources covered by an existing CTG (i.e., a CTG issued prior 
to the enactment of the amended Act of 1990; (2) RACT for sources 
covered by a post-enactment CTG; and (3) RACT for all major sources not 
covered by a CTG (``major non-CTG sources''). This RACT requirement 
essentially mandates that nonattainment areas that previously were 
exempt from certain VOC RACT requirements ``catch up'' to those 
nonattainment areas that became subject to those requirements during an 
earlier period. In addition, it requires newly designated ozone 
nonattainment areas to adopt RACT rules consistent with those for 
previously designated nonattainment areas. Finally, under Section 
182(d), ozone sources located in areas classified as ``severe'' are 
considered ``major'' sources if they have the potential to emit 25 tons 
per year or more of VOC.
    Therefore, under these RACT catch-up provisions, Indiana was 
required to submit RACT rules for sources in the affected counties 
which were covered by both pre- and post-enactment CTGs,1 as well 
as all non-CTG major sources. Also, pursuant to Section 182(d), sources 
located in the severe nonattainment counties of Lake and Porter are 
considered major if their potential to emit is at least 25 tons per 
year of VOC.

    \1\Indiana has addressed these RACT catch-up requirements in 
other submissions, which USEPA will address in separate actions.
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    On May 4, 1994, the Indiana Air Pollution Control Board adopted 326 
IAC 8-7, ``Specific VOC Reduction Requirements for Lake, Porter, Clark 
and Floyd Counties.'' In addition, as part of its rulemaking, Indiana 
amended its definition of ``federally enforceable'' and ``Reasonably 
available control technology'' in 326 IAC 1-2. An emergency rule was 
adopted on August 3, 1994, in accordance with IC 4-22-2-37.1, it was 
effective for 90 days and was extended an additional 90 days. The State 
adopted the revised rule on August 5, 1994. The State supplemented its 
original submittal to USEPA on February 6, 1995.

II. Analysis of State Submittal

    The USEPA's analysis of the State submittal is summarized below. A 
more detailed analysis of the State's submittal is contained in a May 
15, 1995 rational document which is available at the Regional Office 
listed above. In determining the approvability of this VOC rule, USEPA 
evaluated the rule for consistency with Federal requirements, including 
section 110 and part D of the Act, applicable regulations and USEPA's 
Model VOC rules.
    The Indiana non-CTG RACT rule applies to stationary sources in the 
severe ozone nonattainment area of Lake and Porter Counties, as well as 
the moderate ozone nonattainment area of Clark and Floyd Counties, and 
reflects the lowering of the major source definition from 100 tons per 
year to 25 tons for Lake and Porter Counties only. The rule also 
applies to sources in the above affected counties which have coating 
facilities with the potential to emit 10-25 tons per year (TPY) of VOC, 
(Lake and Porter) or 40-100 TPY of VOC (Clark and Floyd).
    In the determination of applicability cut-offs, the owner/operator 
of a source shall include total potential VOC emissions from the 
following facilities: (a) 326 IAC 8-2 (surface coating operations); (b) 
326 IAC 8-3 (organic solvent degreasing); (c) 326 IAC 8-4 (petroleum 
operations); (d) 326 IAC 8-5 (miscellaneous operations); and facilities 
of the following types: (e) fuel combustion facilities; (f) wastewater 
treatment plants; (g) coke ovens, including by-product ovens; (h) barge 
loading facilities; (i) jet engine test cells; (j) iron and steel 
production facilities; and (k) vegetable oil processing facilities.
    Sources covered by this rule are allowed to demonstrate compliance 
by choosing among any one of the following three available options: (1) 
Achieve an overall VOC reduction in baseline actual emissions of 
ninety-eight percent (98%) by the addition of add-on controls or 
documented reduction in VOC-containing materials used; (2) achieve a 
level of reduction equal to eighty-one percent (81%) of baseline actual 
emissions by the same means as stated above, where it is demonstrated 
that a 98% reduction in source emissions is not achievable; or (3) 
achieve an alternative overall emission reduction by the application of 
RACT as determined by the State and USEPA.
    Compliance with these options requires sources to submit a 
compliance plan to the State before December 31, 1994 for approval. 
Specific compliance plan requirements are dependent on the 

[[Page 34858]]
chosen compliance option. Compliance with option (1) or (2) by reducing 
VOC-containing materials requires the owner/operator to submit an 
approved compliance plan with the source's operating permit application 
under 40 CFR part 70 (Title 5) permit. The part 70 federally 
enforceable permit will incorporate the compliance plan, which will 
include limits reflecting the following: averaging periods no longer 
than daily; VOC content of process materials; capture and control 
efficiencies; appropriate test methods; and recordkeeping and reporting 
requirements. Prior to the compliance deadline of May 31, 1995, major 
sources in Lake, Porter, Clark and Floyd Counties can be exempt from 
RACT if they limit their emissions through federally enforceable state 
operating permits (FESOPs). (The State submitted a FESOP program on 
October 25, 1994, which is under review.) Prior to a USEPA-approved 
Indiana FESOP program, operating permits which limit emissions below 
the cut-off shall be submitted to USEPA as SIP revisions.
    It should be noted that if a source chooses to comply with an 
alternative RACT overall emission reduction (option (3)), it must 
submit a petition to the State consistent with the procedures in 326 
IAC 8-1-5. Under 8-1-5(c), all site-specific RACT plans must be 
submitted to and approved by USEPA as SIP revisions.
    The rule also contains provisions consistent with the June 1992 
Model VOC Rule for the operation, maintenance and testing of control 
devices at those affected facilities choosing to use add-on controls as 
the method of compliance.

III. Final Rulemaking Action

    Based upon the review of the materials submitted by the State of 
Indiana, the USEPA has determined that the rules governing the VOC 
emissions from sources subject to non-CTG RACT requirements are 
consistent with the Act. Because USEPA considers this action 
noncontroversial and routine, we are approving it without prior 
proposal.
    The amendments consist of a new rule, ``Specific VOC Reduction 
Requirements for Lake, Porter, Clark and Floyd Counties'' (326 IAC 8-
7), and new definitions (326 IAC 1-2).
    The USEPA is approving this action without prior proposal because 
USEPA views this as a noncontroversial amendment and anticipates no 
adverse comments. However, in a separate document in today's issue of 
the Federal Register, the USEPA is proposing to approve the requested 
SIP revision should adverse or critical comments be filed. This action 
will be effective on September 5, 1995 unless adverse or critical 
comments are received by August 4, 1995.
    If the USEPA receives such comments, this action will be withdrawn 
before the effective date by publishing a subsequent Federal Register 
document that withdraws this final action. All public comments received 
will then be addressed in a subsequent final rule based on this action 
serving as a proposed rule. The USEPA will not institute a second 
comment period on this action, unless warranted by significant revision 
to this rule based on any comments received in response to this action. 
Any parties interested in commenting on this action should do so at 
this time. If no such comments are received, the public is advised that 
this action will be effective September 5, 1995.
    This action has been classified as a Table 2 action by the Regional 
Administrator under the procedures published in the Federal Register on 
January 19, 1989 (54 FR 2214-2225), as revised by an October 4, 1993, 
memorandum from Michael H. Shapiro, Acting Assistant Administrator for 
Air and Radiation. The Office of Management and Budget has exempted 
this regulatory action from Executive Order 12866 review.
    Nothing in this action should be construed as permitting, allowing 
or establishing a precedent for any future request for revision to any 
SIP. USEPA shall consider each request for revision to the SIP in light 
of specific technical, economic, and environmental factors and in 
relation to relevant statutory and regulatory requirements.
    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., USEPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. (5 U.S.C. 603 and 604.) 
Alternatively, USEPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, the 
USEPA must prepare a budgetary impact statement to accompany any 
proposed or final rule that includes a Federal mandate that may result 
in estimated costs to State, local, or tribal governments in the 
aggregate; or to the private sector, of $100 million or more. Under 
Section 205, the USEPA must select the most cost-effective and least 
burdensome alternative that achieves the objectives of the rule and is 
consistent with statutory requirements. Section 203 requires the USEPA 
to establish a plan for informing and advising any small governments 
that may be significantly or uniquely impacted by the rule.
    The USEPA has determined that the approval action promulgated today 
does not include a Federal mandate that may result in estimated costs 
of $100 million or more to either State, local, or tribal governments 
in the aggregate, or to the private sector.
    This Federal action approves pre-existing requirements under State 
or local law, and imposes no new Federal requirements. Accordingly, no 
additional costs to State, local, or tribal governments, or the private 
sector, result from this action.
    SIP approvals under section 110 and subchapter I, part D of the 
Clean Air Act do not create any new requirements, but simply approve 
requirements that the State is already imposing. Therefore, because the 
Federal SIP-approval does not impose any new requirements, I certify 
that it does not have a significant impact on any small entities 
affected. Moreover, due to the nature of the Federal-State relationship 
under the Act, preparation of a regulatory flexibility analysis would 
constitute Federal inquiry into the economic reasonableness of the 
State action. The Clean Air Act forbids USEPA to base its actions 
concerning SIPs on such grounds. Union Electric Co. v. USEPA, 427 U.S. 
246, 256-66 (S.Ct. 1976); 42 U.S.C. 7410(a)(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by September 5, 1995. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements. (See Section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference.

 
[[Page 34859]]

    Dated: June 22, 1995.
David A. Ullrich,
Acting Regional Administrator.
    Part 52, chapter I, title 40 of the Code of Federal Regulations is 
amended as follows:

PART 52--[AMENDED]

    1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.

Subpart P--Indiana

    2. Section 52.770 is amended by adding paragraph (c)(96) to read as 
follows:


Sec. 52.770  Identification of plan.

* * * * *
    (c) * * *
    (96) On August 3, 1994 and February 6, 1995, the Indiana Department 
of Environmental Management submitted a requested SIP revision to the 
ozone plan for ozone nonattainment areas.
    (i) Incorporation by reference.
    (A) Indiana Administrative Code, Title 326: Air Pollution Control 
Board, Article 1: General Provisions, Rule 2: Definitions, Section 22.5 
``Department'' definition, Section 28.5 ``Federally enforceable'' 
definition, and Section 64.1 ``Reasonably available control 
technology'' or ``RACT'' definition. Added at 18 Indiana Register 1223-
4, effective January 21, 1995.
    (B) Indiana Administrative Code, Title 326: Air Pollution Control 
Board, Article 8: Volatile Organic Compound Rules, Rule 7: Specific VOC 
Reduction Requirements for Lake, Porter, Clark, and Floyd Counties. 
Added at 18 Indiana Register 1224-9, effective January 21, 1995.

[FR Doc. 95-16359 Filed 7-3-95; 8:45 am]
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