[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Rules and Regulations]
[Pages 7157-7159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3865]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN68-1-7308a; FRL-5678-5]


Approval and Promulgation of Implementation Plans; Indiana

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: On October 25, 1994, the Indiana Department of Environmental 
Management (IDEM) submitted revisions to its State Implementation Plan 
(SIP). EPA made a finding of completeness in a letter dated November 
25, 1994. The revisions to the SIP add or revise definitions in the 
Indiana SIP's general provisions (326 IAC 1-1, 326 IAC 1-2), the 
applicability criteria of the rule for malfunctions (326 IAC 1-6), and 
the applicability criteria for state construction and operating permit 
requirements (326 IAC 2-1). The revisions to the SIP also revise 
Indiana's construction permit program (326 IAC 2-1) and its ``Permit no 
defense'' regulation (326 IAC 2-1). With this rule, EPA is approving 
these SIP revisions because they are in compliance with the Code of 
Federal Regulations (CFR) and the Clean Air Act (Act). Elsewhere in 
this Federal Register, EPA is proposing approval and soliciting comment 
on this direct final action; if adverse comments are received, EPA will 
withdraw the direct final rule and address the comments received in a 
new final rule. Unless this direct final rule is withdrawn, no further 
rulemaking will occur on this requested SIP revision.

DATES: This action will be effective April 21, 1997 unless adverse or 
critical comments are received by March 20, 1997. If the effective date 
is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Written comments can be mailed to: J. Elmer Bortzer, Chief, 
Regulation Development Section, Regulation Development Branch (AR-18J), 
Air and Radiation Division, U.S. Environmental Protection Agency, 77 
West Jackson Boulevard, Chicago, Illinois, 60604.
    Copies of the SIP revision request are available for inspection at 
the following address: (It is recommended that you telephone Mark J. 
Palermo at (312) 886-6082, before visiting the Region 5 office.) U.S. 
Environmental Protection Agency, Region 5, Air and Radiation Division, 
77 West Jackson Boulevard, Chicago, Illinois, 60604.

FOR FURTHER INFORMATION CONTACT: Alvin Choi, EPA (AR-18J), 77 West 
Jackson Boulevard, Chicago, Illinois 60604, (312) 886-3507.

SUPPLEMENTARY INFORMATION:

I. Background

    IDEM submitted revisions to the Indiana SIP on October 25, 1994. 
The revisions included rule changes to the State's permit review rules 
and adoption of the federally enforceable state operating permits 
program (326 IAC 2-8), source specific operating agreements (326 IAC 2-
9), and enhanced new source review (NSR) rules (326 IAC 2-1-3.2). EPA 
has already promulgated its approval of regulations governing federally 
enforceable state operating permits and enhanced new source review 
rules (60 FR 43099) and the source specific operating agreements (61 FR 
14487). The EPA is now proposing to approve the final portion of the 
October 25, 1994 SIP submittal which alters some prefatory language and 
affects applicability of some rules. The EPA is approving the following 
revisions to Title 326 of the Indiana Administrative Code (326 IAC)--
Article One: General Provisions, Rule One: Sections 2 and 3; Rule Two: 
Sections 2, 4, 12, 33.1, 33.2, 33.5; Rule Six: Section 1. The EPA is 
also approving revisions to 326 IAC--Article Two: Permit Review Rules, 
Rule One: Sections 1, 3, and 10. The purpose of this revision is to 
update and revise the SIP to reflect statutorily-mandated changes to 
the permit programs. The rationale for EPA's approval is summarized in 
this rule. A more detailed analysis is set forth in a technical support 
document which is available for inspection at the Region 5 Office 
listed above.

II. Summary of State Submittal

    The following sections of Article One, Rule One have been revised 
to include recent amendments to the Act and the CFR.

326 IAC 1-1-2  References to Federal Act

    This section was revised specifically to reference the Clean Air 
Act Amendments of 1990 because the SIP incorporated changes required by 
the 1990 Amendments.

326 IAC 1-1-3  References to the Code of Federal Regulations

    This section updates the reference to the CFR from the 1989 edition 
to the 1992 edition and specifically references the July 21, 1992 
Federal Register with regard to 40 CFR Part 70.
    The following sections of Article One have been revised to include 
new definitions and revisions to existing regulations.

326 IAC 1-2-2  ``Allowable emissions'' Definition

    The previous definition calculated an allowable emission rate by 
combining the most stringent of three listed criteria with the maximum 
rated capacity of the facility (unless the facility was subject to a 
limit on the operating rate or hours of operation, or both). This 
definition has been expanded to include potential emissions and daily 
emission rates for noncontinuous batch manufacturing operations.

326 IAC 1-2-4  ``Applicable state and federal regulations'' Definition

    This section has been revised to clarify that this definition 
includes rules adopted under 326 IAC by the air pollution control 
board, all regulations included in the CFR by EPA, and specific 
requirements established by the Act.

[[Page 7158]]

326 IAC 1-2-12  ``Clean Air Act'' Definition

    This section was updated to include a reference to the Clean Air 
Act Amendments of 1990. The previous definition made only a general 
reference to the Act.

326 IAC 1-2-33.1  ``Grain elevator'' Definition

    This new section was added to define the term used in 326 IAC 2-9-2 
(Source specific restrictions and conditions). A ``Grain elevator'' is 
defined as ``an installation at which grains are weighed, cleaned, 
dried, loaded, unloaded, and placed in storage.''
    326 IAC 1-2-33.2  ``Grain terminal elevator'' Definition
    This new section was added to define the term used in 326 IAC 2-1-
7.1 (Fees for registration, construction permits, and operating 
permits). A ``Grain terminal elevator'' is defined as any grain 
elevator which has a capacity greater than 2,500,000 U.S. bushels 
certified storage or 10,000,000 U.S. bushels annual grain throughput, 
which is the total amount of grain received or shipped by the grain 
elevator over the course of a calendar year.

326 IAC 1-6-1  ``Applicability of rule''

    The owner or operator of any facility with the potential to emit at 
a specified emission rate, and the owner or operator of a facility with 
malfunctioning emission control equipment, either of whose facilities 
could cause emissions in excess of stated emission rates, were formerly 
subject to the malfunction rule. The revised section revokes the 
previous applicability criteria and subjects the owner or operator of 
any facility which is required to obtain a permit under 326 IAC 2-1-2 
(Registration) or 326 IAC 2-1-4 (State Operating permits) to the 
malfunction rule.
    The following Sections of Article 2 revise the existing 
regulations.

326 IAC 2-1-1  ``Applicability of rule''

    This section determines the applicability of permit and fee 
requirements for, among other things, persons proposing to construct or 
modify sources, including sources in Lake and Porter Counties. One of 
the principle revisions to 326 IAC 2-1-1 is the universal replacement 
of the term ``potential emissions'' by ``allowable emissions''. This 
modification will presumably ease the State's burden in administering 
its air permit program by removing certain smaller sources from 
required review.
    EPA approves this revision to encourage the state's effective 
administration of its permit program. EPA notes that Indiana's 
regulations regarding Prevention of Significant Deterioration (PSD) and 
NSR employ the term ``potential emissions'' in determining the 
applicability of those programs, and thus these revisions do not affect 
the applicability of those programs to any sources. Correspondence with 
the state confirms these conclusions.
    A revision to this rule provides that the state operating permit 
program (326 IAC 2-1-4) does not apply if the source has an enforceable 
operating permit under 326 IAC 2-9. Also, an additional revision 
subjects to this rule any person planning to construct or operate grain 
terminal elevators.
    The revised rules have added three criteria for determining 
applicability of SIP provisions. The first added criteria regulates any 
modification which will increase emissions of particulate matter with 
an aerodynamic diameter less than or equal to 10 micrometers by 15 tons 
per year. The second criteria includes, under the regulations, any 
source or facility with aggregate emissions greater than or equal to 10 
tons per year of any single hazardous air pollutant (HAP) or 25 tons 
per year for any combination of HAPs. The third requirement includes 
modifications to major sources of HAPs which will increase emissions by 
four tons per year of any single HAP or 10 tons per year of any 
combination of HAPs. The third requirement also exempts any source 
which can demonstrate by written submission that the sum of the 
emission increases and decreases of any single HAP resulting from the 
modification does not exceed four tons per year. The third 
applicability criteria becomes effective only after Indiana's Part 70 
program becomes effective.
    Exemptions to the applicability regulations have been adopted. The 
first category of excluded sources includes existing sources or sources 
proposed to be operated, constructed, or modified, which have emissions 
of less than the emission limits specified in the provisions regarding 
either: (1) applicability of registration requirements found at 326 IAC 
2-1-1(b)(2); or (2) applicability of requirements governing the 
construction permits, enhanced NSR, operating permits, and fees. The 
second category exempts existing sources who seek only changes in a 
method of operation, a reconfiguration of existing equipment or other 
minor physical changes, or a combination of the above which does not 
increase emissions in excess of: (1) Significance levels in PSD 
limitations and emissions offsets; (2) HAP levels for maximum 
achievable control technology; (3) specific threshold levels adopted 
for Lake and Porter Counties; (4) levels specified in provisions 
governing the applicability of regulations for construction permits, 
enhanced NSR, operating permits, and fees (not including the general 25 
tons per year criteria); and (5) levels specified for the volatile 
organic compound rules. The third category exempts temporary operations 
and experimental trials which involve construction, reconstruction, or 
modification which meet specific criteria.

326 IAC 2-1-3  Construction permits

    This revision eliminates the need for the submission of plans and 
specifications to be prepared by a professional engineer registered to 
practice in Indiana, with an application for a construction permit. The 
applicant, however, is now required to place a copy of the permit 
application for public review at a library in the county where 
construction is proposed. Finally, the revision requires any applicant 
who proposes to construct upon land which is underdeveloped or for 
which a valid existing permit has not been issued, to make a reasonable 
effort to provide notice to all owners or occupants of land adjoining 
the proposed construction site.

326 IAC 2-1-10  Permit no defense

    This section states that a permit which is obtained by a source 
shall not be used as a defense against a violation of any regulation. 
An exception has been added for alleged violations of applicable 
requirements for which a permit shield has been granted according to 
326 IAC 2-1-3.2 (Enhanced NSR) and 326 IAC 2-7-15 (Part 70 permit 
program; Permit shield).
    The EPA is approving the revisions to the sections in 326 IAC 
Articles 1 and 2. These revisions add definitions which reflect new 
regulations added to the title and revise existing regulations which 
have been found to be in accordance with the CFR and the Act.

III. Rulemaking Action

    Many of the revisions to the General Provisions updated definitions 
with respect to the 1990 Clean Air Act Amendments. Revisions were also 
in response to the recent addition of the Source Specific Operating 
Agreement program.
    The changes to the Permit Review Rules are presumably intended to 
alleviate the permitting burden on IDEM. By using the ``allowable'' 
definition and adding exemption

[[Page 7159]]

regulations in 326 IAC 2-1-1, IDEM will be able to concentrate its 
resources on relatively more significant sources. For the reasons 
stated above, the EPA approves the plan revisions submitted on October 
25, 1994, to incorporate changes to existing regulations and to 
accommodate recent revisions to the SIP by adding and updating 
regulations.
    The EPA is publishing this action without prior proposal because 
EPA views this as a noncontroversial revision and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, the EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. This action will be 
effective on April 21, 1997 unless, by March 20, 1997, adverse or 
critical comments are received.
    If the EPA receives such comments, this action will be withdrawn 
before the effective date by publishing a subsequent rulemaking that 
will withdraw the final action. All public comments received will be 
addressed in a subsequent final rule based on this action serving as a 
proposed rule. The EPA will not institute a second comment period on 
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 on April 21, 1997.
    Nothing in this action should be construed as permitting, allowing 
or establishing a precedent for any future request for revision to any 
SIP. Each request for revision to the SIP shall be considered 
separately in light of specific technical, economic, and environmental 
factors and in relation to relevant statutory and regulatory 
requirements.

IV. Administrative Requirements

A. Executive Order 12866

    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under the procedures published in the 
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
July 10, 1995, memorandum from Mary D. Nichols, Assistant Administrator 
for Air and Radiation. The Office of Management and Budget (OMB) has 
exempted this regulatory action from Executive Order 12866 review.

B. Regulatory Flexibility

    Under the Regulatory Flexibility Act, 5 U.S.C. section 600 et seq., 
EPA must prepare a regulatory flexibility analysis assessing the impact 
of any proposed or final rule on small entities. 5 U.S.C. sections 603 
and 604. Alternatively, EPA 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, the Administrator 
certifies 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 flexibility analysis would 
constitute Federal inquiry into the economic reasonableness of the 
State action. The Clean Air Act forbids EPA to base its actions 
concerning SIPs on such grounds. Union Electric Co. v. EPA, 427 U.S. 
246, 256-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995, 
signed into law on March 22, 1995, EPA must undertake various actions 
in association with 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. This Federal action approves pre-existing requirements under 
state or local law, and imposes no new requirements. Accordingly, no 
additional costs to state, local, or tribal governments, or the private 
sector, result from this action.

D. Submission to Congress and the General Accounting Office

    Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives and the Comptroller General of the 
General Accounting Office prior to publication of the rule in today's 
Federal Register. This rule is not a major rule as defined by 5 U.S.C. 
804(2).

E. Petitions for Judicial Review

    Under section 307(b)(1) of the Act, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by April 21, 1997. 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, Hydrocarbons, 
Incorporation by reference, Lead, Particulate matter, Sulfur dioxide, 
Volatile organic compounds.

    Dated: December 12, 1996.
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 paragraph (c)(109) to read 
as follows:


Sec. 52.770  Identification of plan.

* * * * *
    (c) * * *
    (109) 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 the General Provisions and Permit 
Review Rules intended to update and add regulations which have been 
affected by recent SIP revisions, and to change regulations for 
streamlining purposes. This revision took the form of an amendment to 
Title 326: Air Pollution Control Board of the Indiana Administrative 
Code (326 IAC) 1-1 Provisions Applicable Throughout Title 326, 1-2 
Definitions, 1-6 Malfunctions, 2-1 Construction and Operating Permit 
Requirements.
    (i) Incorporation by reference. 326 IAC 1-1-2 and 1-1-3. 326 IAC 1-
2-2, 1-2-4, 1-2-12, 1-2-33.1, and 1-2-33.2. 326 IAC 1-6-1. 326 IAC 2-1-
1, 2-1-3, and 2-1-10. Adopted by the Indiana Air Pollution Control 
Board March 10, 1994. Filed with the Secretary of State May 25, 1994. 
Effective June 24, 1994. Published at Indiana Register, Volume 17, 
Number 10, July 1, 1994.
* * * * *
[FR Doc. 97-3865 Filed 2-14-97; 8:45 am]
BILLING CODE 6560-50-P