[Federal Register Volume 60, Number 160 (Friday, August 18, 1995)]
[Rules and Regulations]
[Pages 43008-43012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20482]



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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN48-1-6761a; FRL-5266-7]


Approval and Promulgation of Implementation Plans; Indiana

AGENCY: United States Environmental Protection Agency (USEPA).

ACTION: Direct final rule.

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SUMMARY: On October 25, 1994, the Indiana Department of Environmental 
Management (IDEM) submitted a Federally Enforceable State Operating 
Permit Program (FESOP) regulation and an Enhanced New Source Review 
(NSR) regulation as requested revisions to the State Implementation 
Plan (SIP). USEPA made a completeness finding in a letter dated 
November 25, 1994. In this rule USEPA approves Indiana's FESOP 
regulation, as a SIP revision, because the regulation provides an 
acceptable mechanism for establishing federally enforceable State 
operating permits for the purpose of creating federally enforceable 
limitations on the potential to emit of certain pollutants regulated 
under the Clean Air Act (Act). This program allows a number of small 
sources to be exempt from further operating permit review otherwise 
required by the Act. In this action, USEPA also approves Indiana's 
Enhanced NSR regulation. Sources subject to the State construction 
permit rule will have the opportunity to satisfy its State operating 
permit requirements by opting into this preconstruction rule. In the 
proposed rules section of this Federal Register, USEPA is proposing 
approval of and soliciting public comment on these requested SIP 
revisions. If adverse comments are received on this direct final rule, 
USEPA will withdraw this final rule and address the comments received 
in a final rule on the related proposed rule which is being published 
in the proposed rules section of this Federal Register. Unless this 
final rule is withdrawn, no further rulemaking will occur on this 
requested SIP revision.

DATES: This final rule is effective October 17, 1995 unless adverse or 
critical comments are received by September 18, 1995. If the effective 
date is delayed, timely notice will be published in the Federal 
Register.

ADDRESSES: Comments can be mailed to J. Elmer Bortzer, Chief, 
Regulation Development Section, Regulation Development Branch, United 
States Environmental Protection Agency, 77 West Jackson Boulevard (AR-
18J), Chicago, Illinois 60604.
    Copies of the State's submittal and USEPA's technical support 
document are available for inspection during normal business hours at 
the following location: United States Environmental Protection Agency, 
Region 5, Air and Radiation Division, 77 West Jackson Boulevard (AR-
18J), Chicago, Illinois 60604.
    A copy of this SIP revision is also available at the following 
location: Office of Air and Radiation, Docket and Information Center 
(Air Docket 6102), room M1500, USEPA, 401 M Street, S.W., Washington, 
DC 20460.

FOR FURTHER INFORMATION CONTACT: Sam Portanova, USEPA (AR-18J), 77 West 
Jackson Boulevard, Chicago, Illinois 60604, (312) 886-3189.

SUPPLEMENTARY INFORMATION:

I. Background

    Once approved by USEPA as a SIP revision, the Indiana FESOP program 
will be a major mechanism in limiting potential to emit for sources to 
remain below the applicability threshold for the operating permits 
program of title V of the Act. Similarly, once approved as a SIP 
revision, the Indiana Enhanced NSR regulation will allow the State to 
integrate the NSR preconstruction permit process with the title V 
permit modification process. The Federal title V State operating permit 
program regulation is codified in 40 CFR part 70 and the State of 
Indiana's title V program is codified in Title 326 of the Indiana 
Administrative Code (326 IAC) 2-7. Without some mechanism in State law 
to issue FESOPs to small sources and thereby exempt them from title V 
review, the title V program would encompass a large number of small 
sources and could be a resource burden on both the State and the 
smaller title V sources. The USEPA approval of these State mechanisms 
to establish federally enforceable limits on sources' potential to emit 
below the title V threshold and to establish an integrated NSR and 
title V permitting process will enable Indiana and Indiana sources to 
reduce resource burdens.

II. USEPA's Review and Findings

A. Analysis of State Submittal

1. Federally Enforceable State Operating Permit Program
    Prior to the Act Amendments of 1990, States were not required to 
have a distinct operating permit program under the Act. In a June 28, 
1989 final rule, however, USEPA promulgated five criteria for approving 
a State operating permit program for the purpose of issuing FESOPs 
limiting criteria pollutants as part of the SIP. See 54 FR 27274, 
27282. Since operating permits are issued pursuant to a program 
approved by USEPA, these permits will also be enforceable by citizens 
pursuant to section 304 of the Act. On November 3, 1993, the USEPA 
announced in a guidance document entitled, ``Approaches to Creating 
Federally Enforceable Emissions Limits,'' signed by John S. Seitz, 
Director, Office of Air Quality Planning and Standards, that this 
mechanism could be extended to create federally enforceable limits for 
emissions of hazardous air pollutants (HAP) if the program were 
approved pursuant to section 112(l) of the Act. 

[[Page 43009]]

a. Approval Criteria
    The following discussion compares the Indiana regulations and 
procedures governing the State's FESOP program with the five criteria 
of the June 28, 1989, final rule.

i. First Criterion

    ``The state operating permit program (i.e., the regulations or 
other administrative framework describing how such permits are issued) 
is submitted and approved by EPA into the SIP.''
    On October 25, 1994, Indiana submitted the regulations and 
administrative framework for the FESOP regulation, 326 IAC 2-8, as a 
revision to its SIP. The USEPA's approval of this submittal satisfies 
the first criterion.

ii. Second Criterion

    ``The SIP imposes a legal obligation that operating permit holders 
adhere to the terms and limitations of such permits (or subsequent 
revisions of the permit made in accordance with the approved operating 
permit program) and provides that permits which do not conform to the 
operating permit program requirements and the requirements of EPA's 
underlying regulations may be deemed not 'federally enforceable' by 
USEPA.''
    The following provisions satisfy the second criterion for Indiana's 
FESOP program. 326 IAC 2-8-2 states that until the Commissioner of IDEM 
has issued a FESOP for a source, a source is subject to all applicable 
requirements of 326 IAC 2-7 (326 IAC 2-7-3 states ``no Part 70 source 
may operate after the time that it is required to submit a timely and 
complete application except in compliance with a Part 70 permit issued 
under this rule''). For sources that have a FESOP permit, 326 IAC 2-8-
5(b) states ``the commissioner may issue a compliance order to any 
source upon discovery that an issued permit is in nonconformance with 
an applicable requirement. The order may require immediate compliance 
or contain a schedule for expeditious compliance with the applicable 
requirement.'' Also, 326 IAC 2-8-6(b) states that ``all terms and 
conditions in a FESOP, including any provisions designed to limit a 
source's potential to emit, are enforceable by the U.S. EPA and 
citizens under the Act.'' 326 IAC 2-8-6(a) states ``the commissioner 
may not issue a FESOP that waives, or makes less stringent, any 
limitation or requirement contained in or issued under the state 
implementation plan (SIP) or requirements that are otherwise federally 
enforceable under the Act. Permits that do not conform to the 
requirements of this rule and the requirements of U.S. EPA's underlying 
regulations may be deemed by the U.S. EPA not federally enforceable.''
    Such a determination will (1) be done according to appropriate 
procedures, and (2) be based upon the permit, permit approval 
procedures or permit requirements which do not conform with the 
operating permit program requirements and the requirements of USEPA's 
underlying regulations. USEPA will make a determination that a FESOP 
permit is not federally enforceable in the form of a letter to the 
State. Although USEPA is authorized to deem permit conditions not 
federally enforceable at any later date, USEPA will strive to determine 
Federal enforceability during Indiana's public comment period. The 
procedures for such a determination will be specified in a letter from 
IDEM to USEPA to be developed before the effective date of this action.

iii. Third Criterion

    ``The State operating permit program requires that all emissions, 
limitations, controls and other requirements imposed by such permits, 
will be at least as stringent as any other applicable limitation or 
requirement contained in the SIP or enforceable under the SIP, and that 
the program may not issue permits that waive, or make less stringent, 
any limitation or requirement contained in or issued pursuant to the 
SIP, or that are otherwise `federally enforceable' (e.g., standards 
established under Sections 111 and 112 of the Act).''
    326 IAC 2-8-4(1) requires FESOP permits to contain emission 
limitations and standards that assure compliance with all applicable 
requirements at the time of FESOP issuance. This language, in addition 
to the above-mentioned language of 326 IAC 2-8-6(a), satisfies the 
third criterion for the Indiana FESOP program.

iv. Fourth Criterion

    ``The limitations, controls, and requirements in the operating 
permits are permanent, quantifiable and otherwise enforceable as a 
practical matter.''
    The USEPA has reviewed the Indiana FESOP program and is satisfied 
that it requires the State to issue permits which meet the requirements 
of this provision. While the permits do expire, the conditions they 
impose must be complied with during the entire term of the permit. In 
addition, 326 IAC 2-8-9 states that a FESOP expiration terminates the 
source's right to operate unless a timely and complete renewal 
application has been submitted consistent with requirements of the 
FESOP regulation.
v. Fifth Criterion

    ``The permits are issued subject to public participation.'' This 
means that the State agrees, as a part of its program, to provide USEPA 
and the public with timely notice of the proposed issuance of such 
permits, and to provide USEPA, on a timely basis, with a copy of each 
proposed (or draft) and final permit intended to be federally 
enforceable.
    The Indiana FESOP program requires public notice in 326 IAC 2-8-13. 
Prior to the issuance of any FESOP, 326 IAC 2-8-13(c) requires the 
State to notify the public of the draft permit by publishing, in at 
least 1 newspaper of general circulation, a notification of the receipt 
of the permit application, the State's draft approval of the permit 
application, a notification of a public comment period at least 30 days 
in duration, a notification to the public of the opportunity for a 
public hearing, and a notification that a copy of the application and 
the State's analysis are available for inspection in a public building 
in the area where the source is located. 326 IAC 2-8-7(a) requires that 
USEPA receives a copy of the draft FESOP and any notice required. These 
notice requirements satisfy the fifth criterion for the Indiana FESOP 
program.
b. Hazardous Air Pollutants
    The June 28, 1989, final rule addresses only SIP programs to 
control criteria pollutants. Federally enforceable limits on criteria 
pollutants (i.e., volatile organic compounds or particulate matter) may 
have the incidental effect of limiting certain HAPs listed pursuant to 
section 112(b) of the Act. This situation would occur when a pollutant 
classified as a HAP is also classified as a criteria pollutant. As a 
legal matter, no additional program approval by USEPA is required in 
order for these criteria pollutant limits to be recognized for this 
purpose.
    Since USEPA's June 28, 1989, final rule does not establish approval 
criteria for FESOP programs to limit HAP emissions, another mechanism 
must be used to approve FESOP programs for the purpose of creating 
federally enforceable limits on HAP emissions. The November 3, 1993, 
guidance document entitled ``Approaches to Creating Federally 
Enforceable Emissions Limits'' indicates that a FESOP program could be 
extended to create federally enforceable limits for emissions of HAPs 
if the program were 

[[Page 43010]]
approved pursuant to section 112(l) of the Act. Therefore, USEPA is 
approving Indiana's FESOP program under section 112(l) of the Act for 
the purposes of creating federally enforceable limitations on the 
potential to emit HAPs.
    The USEPA's June 28, 1989, final rule does not address HAPs because 
it was written prior to the 1990 amendments to section 112 and not 
because it establishes requirements unique to criteria pollutants. As a 
result, USEPA has determined that the five approval criteria for 
approving FESOP programs into the SIP, as specified in the June 28, 
1989, final rule are also appropriate for evaluating and approving the 
programs under section 112(l). Hence, the five criteria are applicable 
to State operating permit program approvals under section 112(l). The 
USEPA is approving this program under section 112(l) as meeting the 
criteria (articulated in the previous paragraphs) of the June 28, 1989, 
final rule for State operating permit programs to establish federally 
enforceable limits on potential to emit.
    In addition to meeting the criteria in the June 28, 1989, final 
rule a State operating permit program must meet the statutory criteria 
for approval under section 112(l)(5). Section 112(l) allows USEPA to 
approve a program only if it (1) contains adequate authority to assure 
compliance with any section 112 standards or requirements, (2) provides 
for adequate resources, (3) provides for an expeditious schedule for 
assuring compliance with section 112 requirements, and, (4) is 
otherwise likely to satisfy the objectives of the Act.
    The USEPA plans to codify the approval criteria for programs 
limiting potential to emit of HAPs (under section 112(l)) in 40 CFR 
part 63, Subpart E. The USEPA currently anticipates that these 
criteria, as they apply to FESOPs, will mirror those set forth in the 
June 28, 1989, final rule with the addition that the State's authority 
must extend to HAPs instead of or in addition to criteria pollutants. 
The USEPA currently anticipates that FESOPs that are approved pursuant 
to section 112(l) prior to the Subpart E revisions will have had to 
meet these criteria, and hence, will not be subject to any further 
approval action.
    The USEPA believes it has authority under section 112(l) to approve 
programs to limit potential to emit of HAPs directly under section 
112(l) prior to this revision to Subpart E. Accordingly, USEPA is 
approving Indiana's FESOP program now so as to enable Indiana to begin 
issuing federally enforceable permits as soon as possible. The 
following discussion compares the Indiana regulations and procedures 
governing the State's FESOP program with criteria listed in section 
112(l)(5).
    i. Indiana's FESOP program contains adequate authority to assure 
compliance with any section 112 standards or requirements. 326 IAC 2-8-
4(1) requires FESOP permits to contain emission limitations and 
standards that assure compliance with all applicable requirements at 
the time of FESOP issuance. Also, 326 IAC 2-8-6(b) states that ``all 
terms and conditions in a FESOP, including any provisions designed to 
limit a source's potential to emit, are enforceable by the U.S. EPA and 
citizens under the Act.'' 326 IAC 2-8-6(a) states ``the commissioner 
may not issue a FESOP that waives, or makes less stringent, any 
limitation or requirement contained in or issued under the state 
implementation plan (SIP) or requirements that are otherwise federally 
enforceable under the Act. Permits that do not conform to the 
requirements of this rule and the requirements of U.S. EPA's underlying 
regulations may be deemed by the U.S. EPA not federally enforceable.''
    ii. 326 IAC 2-8-16 requires fees to be collected from FESOP 
sources. The State believes that sufficient resources will be available 
to administer FESOP permits for those who request and qualify. The 
USEPA believes this fee mechanism will be sufficient to provide for 
adequate resources to implement this program, and will monitor the 
State's implementation of the program to assure that adequate resources 
continue to be available. Please refer to the technical support 
document, included with the docket of this notice, for more information 
regarding Indiana's FESOP resources.
    iii. Indiana's FESOP program also meets the requirement for an 
expeditious schedule for assuring compliance. Nothing in this program 
would allow a source to avoid or delay compliance with the Federal 
requirement if it fails to obtain the appropriate federally enforceable 
limit by the relevant deadline.
    iv. Finally, Indiana's FESOP program is consistent with the 
objectives of the section 112 program since its purpose is to enable 
sources to obtain federally enforceable limits on potential to emit. 
The USEPA believes this purpose is consistent with the overall intent 
of section 112.
    In this rule, USEPA has stated that the Indiana FESOP program meets 
the five criteria required for Federal approvability under the June 28, 
1989, final rule. By approving the Indiana FESOP program, USEPA 
recognizes the program as a federally enforceable method of limiting 
potential to emit criteria pollutants. The USEPA is approving Indiana's 
FESOP program for the purpose of limiting potential to emit of HAPs, in 
addition to criteria pollutants.
c. Conclusion
    After consideration of the material submitted by the State of 
Indiana, USEPA has determined that the Indiana FESOP Program satisfies 
the criteria needed to establish Federal enforceability of State 
operating permits, published in the final rule on June 28, 1989 (54 FR 
27274) and Section 112(l) of the Act. The USEPA approves the 
incorporation of this program into the SIP for the purpose of issuing 
federally enforceable operating permits. Therefore, emissions 
limitations and other provisions contained in operating permits issued 
by the State in accordance with the applicable Indiana SIP provisions, 
approved herewith, shall be federally enforceable by USEPA, and by any 
person in the same manner as other requirements of the SIP.
2. Enhanced New Source Review
    40 CFR part 70 gives State permitting authorities the option of 
integrating requirements determined during preconstruction permit 
review (NSR) with those required under title V. See 40 CFR 
70.7(d)(1)(v) and 57 FR 32259 (July 21, 1992). If an NSR process is 
integrated with the procedural and compliance-related requirements of 
40 CFR 70.6, 70.7, and 70.8, an existing title V permit can be revised 
through the administrative amendment process described in 40 CFR 
70.7(d). Indiana has included the ``Enhanced NSR'' regulation (326 IAC 
2-1-3.2) in its SIP submittal for the purpose of providing title V and 
NSR sources an integrated permit review process. This regulation is 
also available to integrate NSR and FESOP requirements.
    The following is a comparison of the Indiana Enhanced NSR 
regulation to the procedural and compliance-related requirements of 40 
CFR 70.6, 70.7, and 70.8.

a. Permit Applications

    326 IAC 2-1-3.2(a) allows anyone required to obtain a construction 
permit to elect to be subject to the Enhanced NSR regulations for the 
purpose of integrating their NSR requirements with their title V or 
FESOP requirements. 326 IAC 2-1-3.2(b) states that sources must meet 
the permit application requirements of 326 IAC 2-7-4 (title V) or 326 
2-8-3 (FESOP), as appropriate. Sources may use the standard 

[[Page 43011]]
application forms available to title V or FESOP sources.

b. Permit Content

    326 IAC 2-1-3.2(c) requires permits issued to title V sources under 
the Enhanced NSR regulation to include the permit requirements of 326 
IAC 2-7-5 and 2-7-6. These subsections meet the requirements of 40 CFR 
70.6 for permit content and compliance requirements. 326 IAC 2-1-3.2(c) 
requires permits issued under the Enhanced NSR regulation to FESOP 
sources to include the permit requirements of 326 IAC 2-8-4. This 
subsection addresses FESOP permit content.

c. Permit Issuance

    326 IAC 2-1-3.2(e) states that an Enhanced NSR permit may be issued 
only if IDEM has received a complete application for a permit, IDEM has 
complied with the public and affected States notices of 326 IAC 2-1-
3.2(f) and (g), the permit conditions provide for compliance with all 
applicable requirements, USEPA has received a copy of the proposed 
permit and any notices required, and USEPA has not objected to the 
issuance of a permit subject to title V. These requirements are 
consistent with 40 CFR 70.7(a).

d. Public Comment

    326 IAC 2-1-3.2(f) requires all permit proceedings under the 
Enhanced NSR regulation to follow the public comment procedures of 326 
IAC 2-7-17 for title V sources and 326 IAC 2-8-14 for FESOP sources. 
326 IAC 2-1-3.2(g) requires review by USEPA and affected States for 
each permit application, draft permit, proposed permit, and final 
permit in accordance with 326 IAC 2-7-18 for title V sources and 326 
IAC 2-8-14 for FESOP sources. 326 IAC 2-7-17 and 2-7-18 are the 
subsections of the Indiana title V regulation which address the 
requirements of 40 CFR 70.7(h) and 70.8.

e. Permit Integration

    326 IAC 2-1-3.2(h) states that for any source subject to 326 IAC 2-
7-2 or 2-8-2, a permit issued under the Enhanced NSR regulation shall 
become the source's title V permit or FESOP permit, respectively. For 
any modification to an existing title V source subject to 326 IAC 2-7-
12, a permit issued under the Enhanced NSR regulation shall be 
incorporated into the source's title V permit through an administrative 
amendment in accordance with 326 IAC 2-7-11. This is consistent with 40 
CFR 70.7(d)(1)(v). For any modification to an existing FESOP source 
subject to 326 IAC 2-8-11, a permit issued under the Enhanced NSR 
regulation shall be incorporated into the source's FESOP permit through 
an administrative amendment in accordance with 326 IAC 2-8-10.

f. Conclusion

    The USEPA is approving the 326 IAC 2-1-3.2 Enhanced NSR regulation 
for the purpose of providing an integrated NSR and title V process. The 
326 IAC 2-1-3.2 regulation meets the requirements of the 40 CFR part 70 
preamble (see 57 FR 32259 (July 21, 1992)), and 40 CFR 70.7(d)(1)(v).

B. Conclusion

    The USEPA is approving the 326 IAC 2-8 regulation for the Indiana 
FESOP program to enable sources to establish federally enforceable 
limits on potential to emit of criteria pollutants and HAPs. This 
regulation meets the 5 following criteria established in the June 28, 
1989, final rule (54 FR 27274): (1) the State operating permit program 
is submitted to and approved by USEPA into the SIP; (2) the SIP imposes 
a legal obligation that operating permit holders adhere to the terms 
and limitations of such permits and provides that permits which do not 
conform to the State program requirements and the requirements of 
USEPA's underlying regulations may be deemed not federally enforceable 
by USEPA; (3) the State program requires that all emissions 
limitations, controls, and other requirements imposed by such permits 
will be at least as stringent as any other applicable limitations and 
requirements contained in the SIP or enforceable under the SIP, and 
that the program may not issue permits that waive, or make less 
stringent, any limitations or requirements contained in or issued 
pursuant to the SIP, or that are otherwise federally enforceable; (4) 
the limitations, controls, and requirements in the operating permits 
are permanent, quantifiable, and otherwise enforceable as a practical 
matter; and (5) the permits are issued subject to public participation. 
The State agrees, as part of its program, to provide USEPA and the 
public with timely notice of the proposal and issuance of such permits, 
and to provide USEPA, on a timely basis, with a copy of each proposed 
and final permit intended to be federally enforceable. The program must 
also provide for an opportunity for public comment on the permit 
applications prior to issuance of the final permit.
    The USEPA is also approving 326 IAC 2-8 for the Indiana FESOP 
program, pursuant to section 112(l) of the Act, to enable sources to 
establish federally enforceable limits on potential to emit for HAPs. 
The Indiana FESOP program meets the following section 112(l) criteria: 
(1) the program contains adequate authority to assure compliance with 
any section 112 standards or requirements; (2) the program provides for 
adequate resources; (3) the program provides for an expeditious 
schedule for assuring compliance with section 112 requirements; and (4) 
the program is otherwise likely to satisfy the objectives of the Act.
    USEPA is also approving the 326 IAC 2-1-3.2 Enhanced NSR regulation 
for integrating requirements determined under preconstruction permits 
with those required under title V. The Enhanced NSR regulation requires 
sources to meet the requirements in 40 CFR 70.5, 70.6, 70.7, and 70.8. 
This regulation is consistent with the preamble to the 40 CFR part 70 
regulations (see 57 FR 32259 (July 21, 1992)) and 40 CFR 70.7(d)(1)(v).

III. Rulemaking Action

    The USEPA approves the plan revisions submitted on October 25, 
1994, to implement the FESOP program and the Enhanced NSR program. Each 
of the program elements mentioned above were properly addressed. The 
USEPA is publishing this action without prior proposal because USEPA 
views this action as a noncontroversial revision and anticipates no 
adverse comments. However, USEPA is publishing a separate document in 
this Federal Register publication, which constitutes a ``proposed 
approval'' of the requested SIP revision and clarifies that the 
rulemaking will not be deemed final if timely adverse or critical 
comments are filed. The ``direct final'' approval shall be effective on 
October 17, 1995, unless USEPA receives adverse or critical comments by 
September 18, 1995.
    If USEPA receives comments adverse to or critical of the approval 
discussed above, USEPA will withdraw this approval before its effective 
date, and publish a subsequent final rule which withdraws this final 
action. All public comments received will then be addressed in a 
subsequent rulemaking notice.
    Any parties interested in commenting on this action should do so at 
this time. If no such comments are received, USEPA hereby advises the 
public that this action will be effective on October 17, 1995. The 
Office of Management and Budget has exempted this action from review 
under Executive Order 12866.
    Nothing in this action should be construed as permitting, allowing 
or establishing a precedent for any future request for revision to any 
SIP. The USEPA shall consider each request for 

[[Page 43012]]
revision to the SIP in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.

IV. Regulatory Flexibility

    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. 
Alternately, 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.
    SIP approvals under Section 110 and Subchapter I, Part D, of the 
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 State action. The 
Act forbids USEPA to base its actions concerning SIPs on such grounds. 
Union Electric Co. v. USEPA, 427 U.S. 246, 256-66 (1976).

V. Unfunded Mandates

    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 programs that are not Federal 
mandates. Accordingly, no additional costs to State, local, or tribal 
governments, or the private sector, result from this action.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Lead, Particulate matter, Sulfur dioxide, 
Volatile organic compounds.

    Dated: August 20, 1995.
Valdas V. Adamkus,
Regional Administrator.
    For the reasons stated in the preamble, part 52, chapter I, title 
40 of the Code of Federal Regulations is amended to read 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 paragraphs (c)(97) and 
(c)(98) to read as follows:


Sec. 52.770  Identification of plan.

    (c) * * *
    (97) On October 25, 1994, the Indiana Department of Environmental 
Management requested a revision to the Indiana State Implementation 
Plan in the form of revisions to State Operating Permit Rules intended 
to satisfy Federal requirements for issuing federally enforceable State 
operating permits (FESOP) and thereby exempt certain small emission 
sources from review under the State's title V operating permit program. 
This FESOP rule is also approved for the purpose of providing federally 
enforceable emissions limits on hazardous air pollutants listed under 
section 112(b) of the Clean Air Act. This revision took the form of an 
amendment to Title 326: Air Pollution Control Board of the Indiana 
Administrative Code (326 IAC) 2-8 Federally Enforceable State Operating 
Permit Program.
    (i) Incorporation by reference. 326 IAC 2-8 Federally Enforceable 
State Operating Permit Program. Sections 1 through 17. Filed with the 
Secretary of State May 25, 1994. Effective June 24, 1994. Published at 
Indiana Register, Volume 17, Number 10, July 1, 1994.
    (98) On October 25, 1994, the Indiana Department of Environmental 
Management requested a revision to the Indiana State Implementation 
Plan in the form of revisions to State Operating Permit Rules intended 
to allow State permitting authorities the option of integrating 
requirements determined during preconstruction permit review with those 
required under title V. The State's Enhanced New Source Review 
provisions are codified at Title 326: Air Pollution Control Board (326 
IAC) 2-1-3.2 Enhanced New Source Review.
    (i) Incorporation by reference. 326 IAC 2-1-3.2 Enhanced new source 
review. Filed with the Secretary of State May 25, 1994. Effective June 
24, 1994. Published at Indiana Register, Volume 17, Number 10, July 1, 
1994.
* * * * *
    3. Section 52.788 is added to read as follows:


Sec. 52.788  Operating permits.

    Emission limitations and other provisions contained in operating 
permits issued by the State in accordance with the provisions of the 
federally approved permit program shall be the applicable requirements 
of the federally approved State Implementation Plan (SIP) for Indiana 
for the purpose of sections 112(b) and 113 of the Clean Air Act and 
shall be enforceable by the United States Environmental Protection 
Agency (USEPA) and any person in the same manner as other requirements 
of the SIP. USEPA reserves the right to deem an operating permit not 
federally enforceable. Such a determination will be made according to 
appropriate procedures, and be based upon the permit, permit approval 
procedures or permit requirements which do not conform with the 
operating permit program requirements or the requirements of USEPA's 
underlying regulations.

[FR Doc. 95-20482 Filed 8-17-95; 8:45 am]
BILLING CODE 6560-50-P