[Federal Register Volume 61, Number 64 (Tuesday, April 2, 1996)]
[Rules and Regulations]
[Pages 14487-14489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7907]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[IN55-1-7076a; FRL-5435-8]


Approval And Promulgation of Implementation Plan For 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 proposed amendment to the State 
implementation plan (SIP) containing Source Specific Operating 
Agreement (SSOA) regulations (326 IAC 2-9). This regulation has been 
developed to establish federally enforceable conditions for industrial 
or commercial surface coating operations, graphic arts operations, or 
grain elevators by limiting potential emissions below the title V major 
source threshold levels. In this action, USEPA approves 326 IAC 2-9-1 
and 326 IAC 2-9-2(a), (b), and (e) of Indiana's SSOA regulation for 
establishing federally enforceable conditions for these source 
categories. 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Unless this final rule is withdrawn, no further rulemaking will occur 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 action will be effective June 3, 1996, unless adverse or 
critical comments are received by May 2, 1996. 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 SW, 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

    The Indiana SSOA program will be a major mechanism in limiting 
potential to emit for sources enabling them to remain below the 
applicability threshold for the operating permits program of title V of 
the Clean Air Act (CAA). The federal title V regulation is codified in 
40 CFR part 70 and the State of Indiana's title V program is codified 
in 326 IAC 2-7. The title V program could encompass a large number of 
sources and could be a resource burden on the State and smaller title V 
sources. State mechanisms to establish federally enforceable limits on 
sources' potential to emit below the title V threshold will enable a 
State to reduce resource burdens.

II. This Action

    IDEM has adopted a SSOA program regulation in 326 IAC 2-9 to 
provide certain source categories the opportunity to be subject to 
generic enforceable limits on potential to emit. 326 IAC 2-9-1 applies 
to all sources subject to the SSOA program, unless otherwise specified 
in 326 IAC 2-9-2. The subsections of 326 IAC 2-9-2 apply to the 
specific source categories. In this action, USEPA takes action on 
subsections 326 IAC 2-9-2(a), (b), and (e). Sources will be able to 
apply for an operating agreement under this program to limit their 
potential to emit to below the title V threshold level(s). This will 
provide a less resource-intensive alternative to the title V or 
Federally Enforceable State Operating Permit (FESOP) programs for both 
sources and the permitting authority for specific source categories 
that typically have actual emissions far below their potential to emit. 
The following is an analysis of the SSOA program for each source 
category it entails. This analysis will compare the SSOA program to the 
October 15, 1993, USEPA policy memorandum titled ``Guidance for State 
Rules for Optional Federally-Enforceable Emissions Limits Based on 
Volatile Organic Compound (VOC) Use'', from D. Kent Berry, Acting 
Director of the Air Quality Management Division, where appropriate.
    In this action, USEPA proposes approval of the SIP revision request 
submitted to USEPA on October 25, 1994, and revised on January 16, 
1996, for the 326 IAC 2-9 regulation because the regulation is adequate 
to limit potential emissions of industrial or commercial surface 
coating operations, graphic arts operations, and grain elevators to 
below the title V threshold level.

1. Industrial or Commercial Surface Coating Operations or Graphic Arts 
Operations

    This portion of the SSOA regulation has been divided into 2 
subcategories. The first subcategory (326 IAC 2-9-2(a)) is for eligible 
surface coating or graphic arts sources which are not modifications to 
major sources in Lake or Porter County subject to 326 IAC 2-3-3 and 
which are not subject to 326 IAC 8-2 or 8-5-5. The second subcategory 
(326 IAC 2-9-2(b)) is for any eligible surface coating or graphic arts 
sources. USEPA proposes approval of 326 IAC 2-9-2(a) and (b).
a. 326 IAC 2-9-2(a)
    This section allows industrial or commercial surface coating 
operations or graphic arts operations who wish to opt into the SSOA 
program to limit their VOC or hazardous air pollutant (HAP) emissions 
to less than the major source threshold. 326 IAC 2-9-2(a)(1) limits the 
total amount of VOC delivered to a source less the amount of VOC 
shipped off the site to 2 tons per month (tpm) or less (this equals 24 
tons per year (tpy)). 326 IAC 2-9-2(a)(1) limits the total amount of 
HAPs delivered to a source less the amount of HAP shipped off the site 
to 0.2 tpm (2.4 tpy) for a single HAP

[[Page 14488]]
and 0.5 tpm (6 tpy) for any combination of HAPs. The following are 
recordkeeping and reporting requirements for sources subject to 326 IAC 
2-9-2(a):
    i. 326 IAC 2-9-1(f) requires sources to prepare and maintain (1) 
monthly consumption records of all materials used that contain VOCs or 
HAPs, including the VOC or individual HAP content of each such 
material; (2) records summarizing all VOC and individual HAP emissions 
on a monthly basis; and (3) all purchase orders and invoices for any 
VOC or HAP containing material.
    ii. 326 IAC 2-9-2(a)(4) requires sources to provide a summation of 
VOC and individual HAP emissions to IDEM on a monthly basis. This 
paragraph also requires an annual notice which includes an inventory 
listing monthly VOC and HAP totals and total VOC and HAP emissions for 
the previous 12 months.
    iii. 326 IAC 2-9-2(a)(3) requires sources to maintain purchase 
orders and invoices for any VOC or HAP containing material used.
    iv. 326 IAC 2-9-1(g) states that any records required to be kept by 
a source shall be maintained at the site for at least 5 years and shall 
be made available for inspection by IDEM upon request.
    v. 326 IAC 2-9-1(h) requires any source subject to a SSOA to report 
to IDEM any exceedance of a requirement contain in the SSOA or the SSOA 
regulation within one week of its occurrence.
    vi. 326 IAC 2-9-1(c) requires SSOA requests to be signed by a 
responsible official who shall certify that the information contained 
in the request is accurate, true, and complete.
    These requirements are consistent with the guidelines outlined in 
the October 15, 1993, D. Kent Berry memorandum.
b. 326 IAC 2-9-2(b)
    This section allows industrial or commercial surface coating 
operations or graphic arts operations who wish to opt into the SSOA 
program to limit their VOC or HAP emissions to less than 25 percent of 
the major source threshold.
    326 IAC 2-9-2(b)(1) limits the total amount of VOC delivered to a 
source less the amount of VOC shipped off the site to 15 pounds per day 
(lb/day) or less (2.74 tpy) for sources located outside Lake or Porter 
County and to 7 lb/day (1.28 tpy) for sources located in Lake or Porter 
County. 326 IAC 2-9-2(a)(1) limits the total amount of HAPs delivered 
to a source less the amount of HAP shipped off the site to 3 lb/day 
(0.55 tpy) for a single HAP and 7 lb/day (1.28 tpy) for any combination 
of HAPs. 326 IAC 2-9-2(b) has the same requirements as 326 IAC 2-9-2(a) 
except that a monthly summation of VOC and individual HAP emissions is 
not required. An annual summation of VOC and HAP emissions is required 
in this subsection. This is consistent with the guidelines outlined in 
the October 15, 1993, D. Kent Berry memorandum.

2. Grain Elevators

    This portion of the SSOA regulation has been divided into 2 
subcategories. The first subcategory (326 IAC 2-9-2(e)(1)) is for grain 
elevators with a storage capacity of less than 1,000,000 U.S. bushels 
and an annual throughput of less than 3,000,000 U.S. bushels. The 
second subcategory (326 IAC 2-9-2(e)(2)) is for grain elevators with a 
storage capacity of between than 1,000,000 and 2,500,000 U.S. bushels 
and an annual throughput of less than 10,000,000 U.S. bushels. USEPA 
proposes approval of 326 IAC 2-9-2(e).
    Title V applicability major source threshold level for particulate 
matter is 100 tpy and will be based on PM10 emissions. The Indiana 
Title V regulation allows source subject to 326 IAC 2-9 to be exempt 
from Title V. The throughput limit of 326 IAC 2-9-2(e)(1), when 
calculated with accepted emission factors for this type of source, is 
sufficient to limit the potential to emit of PM10 from a grain 
elevator to below the Title V threshold level. The throughput limit and 
the control requirements of 326 IAC 2-9-2(e)(2), when calculated with 
accepted emission factors for this type of source, are sufficient to 
limit the potential to emit of PM10 from a grain elevator to below 
the Title V threshold level.
    Based on the issues outlined above, USEPA proposes approval of 326 
IAC 2-9-2(e) in this action.

3. Conclusion

    326 IAC 2-9 limits source emissions below the major source 
threshold level and requires monthly or annual reporting requirements. 
USEPA proposes approval of 326 IAC 2-9-1, 2-9-2(a), and 2-9-2(b) of the 
Indiana SSOA program, which provide industrial or commercial surface 
coating operations and graphic arts operations the opportunity to be 
subject to generic enforceable limits on potential to emit. These 
portions of the regulation are consistent with the October 15, 1993, 
USEPA memorandum titled ``Guidance for State Rules for Optional 
Federally-Enforceable Emissions Limits Based on Volatile Organic 
Compound (VOC) Use''. EPA also proposes approval of 326 IAC 2-9-2(e), 
which provides grain elevators the opportunity to be subject to generic 
enforceable limits on potential to emit.

III. Rulemaking Action

    The USEPA approves the plan revisions submitted on October 25, 
1994, to implement 326 IAC 2-9-1 and 326 IAC 2-9-2(a), (b), and (e) of 
the SSOA regulations. 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 June 3, 1996, unless USEPA receives adverse or 
critical comments by May 2, 1996.
    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 document.
    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 June 3, 1996. 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 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. Sec. 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. 
Secs. 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.

[[Page 14489]]

    SIP approvals under Section 110 and Subchapter I, Part D, of the 
CAA 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 CAA, 
preparation of a regulatory flexibility analysis would constitute 
Federal inquiry into the economic reasonableness of State action. The 
CAA 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: February 12, 1996.
David A. Ullrich,
Acting 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 paragraph (c)(105) to read 
as follows:


Sec. 52.770  Identification of plan.

* * * * *
    (c) * * *
    (105) On October 25, 1994, the Indiana Department of Environmental 
Management submitted a requested revision to the Indiana State 
Implementation Plan in the form of Source Specific Operating Agreement 
(SSOA) regulations. The SSOA regulations are intended to limit the 
potential to emit for a source to below the threshold level of Title V 
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) 2-9-1, 2-9-2(a), 2-9-2(b), and 2-9-2(e) Source Specific 
Operating Agreement Program.

    (i) Incorporation by reference. 326 Indiana Administrative Code 
2-9. Sections 1, 2(a), 2(b), and 2(e). Adopted by the Indiana Air 
Pollution Control Board March 10, 1994. Signed by the Secretary of 
State May 25, 1994. Effective June 24, 1994. Published at Indiana 
Register, Volume 17, Number 10, July 1, 1994.

[FR Doc. 96-7907 Filed 4-1-96; 8:45 am]
BILLING CODE 6560-50-P