[Federal Register Volume 62, Number 88 (Wednesday, May 7, 1997)]
[Rules and Regulations]
[Pages 24815-24824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11908]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN54-1a; FRL-5819-3]


Approval and Promulgation of State Implementation Plan; IN

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In this action, EPA is approving the following as revisions to 
the Indiana State Implementation (SIP) plan: A Rate-Of-Progress (ROP) 
plan to reduce volatile organic compound (VOC) emissions in Clark and 
Floyd Counties by 15 percent (%) by November 15, 1996; 1996 corrections 
to Clark and Floyd Counties' 1990 base year emission inventory (to 
establish an accurate base line for the 15% ROP plan); construction 
permits requiring VOC emission control at Rhodes, Incorporated (Rhodes) 
in Charlestown, Clark County; and a ridesharing program affecting 
commuters in Clark and Floyd Counties. The plan and control measures 
help protect the public's health and welfare by reducing the emissions 
of VOC that contribute to the formation of ground-level ozone, commonly 
known as urban smog. High concentrations of ground-level ozone can 
aggravate asthma, cause inflammation of lung tissue, decrease lung 
function, and impair the body's defenses against respiratory infection. 
The 15% ROP plan's control measures are expected to reduce VOC 
emissions in Clark and Floyd Counties by 17,215 pounds (lbs) per day. 
In this action, EPA is approving the above requested SIP revisions 
through a ``direct final'' rulemaking; the rationale for this approval 
is set forth below.

DATES: The ``direct final'' rule, is effective July 7, 1997, unless EPA 
receives adverse or critical comments by June 6, 1997. If the effective 
date is delayed, timely notice will be published in the Federal 
Register.

ADDRESSES: Comments may be mailed to: J. Elmer Bortzer, Chief, 
Regulation Development Section, United States Environmental Protection 
Agency, Region 5, Air and Radiation Division, Air Programs Branch (AR-
18J), 77 West Jackson Boulevard, Chicago, Illinois, 60604.
    Copies of the documents relevant to this action are available at 
the above address for public inspection during normal business hours.

FOR FURTHER INFORMATION CONTACT: Mark J. Palermo, Environmental 
Protection Specialist, at (312) 886-6082.

SUPPLEMENTARY INFORMATION:

I. Background on 15% ROP Requirements

    On November 15, 1990, Congress enacted amendments to the 1977 Clean 
Air Act (Act); Public Law 101-549, 104 Stat. 2399, codified at 42 
U.S.C. 7401-7671q. Section 182(b)(1) requires States with ozone 
nonattainment areas classified as moderate and above to submit a SIP 
revision known as a ``15% ROP plan.'' This plan must reflect an actual 
reduction in typical ozone season weekday VOC emissions of at least 15% 
in the area during the first 6 years after enactment (i.e., by November 
15, 1996). The emission reductions needed to achieve the 15% 
requirement must be calculated using a 1990 anthropogenic VOC emissions 
inventory as a baseline, minus emission reductions occurring by 1996 
from the: (1) Federal Motor Vehicle Control Program (FMVCP) measures 
for the control of motor vehicle exhaust or evaporative emissions 
promulgated before January 1, 1990; and (2) gasoline Reid Vapor 
Pressure (RVP) regulations promulgated by November 15, 1990 (see 55 FR 
23666, June 11, 1990). In addition, the plan must account for net 
growth in emissions within the nonattainment area between 1990 and 
1996.
    In Indiana, two ozone nonattainment areas are required to be 
covered by a 15% ROP plan: the Lake and Porter Counties portion of the 
Chicago severe ozone nonattainment area, and the Clark and Floyd 
Counties portion of the Louisville moderate ozone nonattainment area. 
Today's rulemaking action addresses only the plan for Clark and Floyd 
Counties; the Lake and Porter Counties 15% ROP plan has been addressed 
in an April 3, 1997, rulemaking action (see 62 FR 15844).

II. Indiana's 15% ROP Plan Submittal

    The Act requires States to observe certain procedural requirements 
in

[[Page 24816]]

developing SIPs and SIP revisions for submission to EPA. Section 
110(a)(2) and section 110(l) of the Act require that each SIP revision 
meet reasonable notice and public hearing requirements. The State of 
Indiana submitted a portion of the Clark and Floyd Counties 15% ROP 
plan SIP revision on December 20, 1993. The SIP revision was reviewed 
by EPA to determine completeness shortly after submittal, in accordance 
with the completeness criteria set out at 40 CFR Part 51, Appendix V 
(1991), as amended by 57 FR 42216 (August 26, 1991). Because Indiana 
had not included fully adopted rules for all the plan's control 
measures, nor held a public hearing on the plan, the submittal was 
deemed incomplete. Subsequently, Indiana held a public hearing on the 
plan on March 31, 1994, in New Albany, Indiana. A hearing transcript, a 
summary of comments from that hearing, and the Indiana Department of 
Environmental Management's (IDEM) response to comments were submitted 
on July 5, 1994. IDEM sent a supplemental submittal on July 12, 1995, 
which included fully adopted rules for the Clark and Floyd Counties 15% 
ROP plan. In a July 17, 1995, letter to Indiana, the State was informed 
that the SIP submittal was deemed complete.
    Indiana submitted a contingency plan with the 15% ROP plan pursuant 
to section 172(c)(9). EPA will take action on this plan in a separate 
rulemaking action. The contingency plan is a separate requirement of 
the Act, and approval of the contingency plan is not a prerequisite for 
approval of the 15% ROP plan.

III. Criteria for 15% ROP Plan Approvals

    The requirements for 15% ROP plans are found in section 182(b)(1) 
of the Act, and the following EPA guidance documents:
    1. Procedures for Preparing Emissions Projections, EPA-450/4-91-
019, Environmental Protection Agency, July 1991.
    2. State Implementation Plans; General Preamble for the 
Implementation of Title I of the Clean Air Act Amendments of 1990; 
Proposed rule (57 FR 13498), Federal Register, April 16, 1992 (General 
Preamble).
    3. ``November 15, 1992, Deliverables for Reasonable Further 
Progress and Modeling Emission Inventories,'' memorandum from J. David 
Mobley, Edwin L. Meyer, and G. T. Helms, Office of Air Quality Planning 
and Standards, Environmental Protection Agency, August 7, 1992.
    4. Guidance on the Adjusted Base Year Emissions Inventory and the 
1996 Target for the 15 Percent Rate of Progress Plans, EPA-452/R-92-
005, Environmental Protection Agency, October 1992.
    5. ``Quantification of Rule Effectiveness Improvements,'' 
memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs 
Branch, Office of Air Quality Planning and Standards, Environmental 
Protection Agency, October 1992.
    6. Guidance for Growth Factors, Projections, and Control Strategies 
for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-002, March 
1993.
    7. ``Correction to `Guidance on the Adjusted Base Year Emissions 
Inventory and the 1996 Target for the 15 Percent Rate of Progress 
Plans','' memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide 
Programs Branch, Office of Air Quality Planning and Standards, 
Environmental Protection Agency, March 2, 1993.
    8. ``15 Percent Rate-of-Progress Plans,'' memorandum from G. T. 
Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of Air 
Quality Planning and Standards, Environmental Protection Agency, March 
16, 1993.
    9. Guidance on the Relationship Between the 15 Percent Rate-of-
Progress Plans and Other Provisions of the Clean Air Act, EPA-452/R-93-
007, Environmental Protection Agency, May 1993.
    10. ``Credit Toward the 15 Percent Rate-of-Progress Reductions from 
Federal Measures,'' memorandum from G. T. Helms, Chief, Ozone/Carbon 
Monoxide Programs Branch, Environmental Protection Agency, May 6, 1993.
    11. Guidance on Preparing Enforceable Regulations and Compliance 
Programs for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-005, 
Environmental Protection Agency, June 1993.
    12. ``Correction Errata to the 15 Percent Rate-of-Progress Plan 
Guidance Series,'' memorandum from G. T. Helms, Chief, Ozone and Carbon 
Monoxide Programs Branch, Environmental Protection Agency, July 28, 
1993.
    13. ``Early Implementation of Contingency Measures for Ozone and 
Carbon Monoxide (CO) Nonattainment Areas,'' memorandum from G. T. 
Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Environmental 
Protection Agency, August 13, 1993.
    14. ``Region III Questions on Emission Projections for the 15 
Percent Rate-of-Progress Plans,'' memorandum from G. T. Helms, Chief, 
Ozone/Carbon Monoxide Programs Branch, Office of Air Quality Planning 
and Standards, Environmental Protection Agency, August 17, 1993.
    15. ``Guidance on Issues Related to 15 Percent Rate-of-Progress 
Plans,'' memorandum from Michael H. Shapiro, Acting Assistant 
Administrator for Air and Radiation, Environmental Protection Agency, 
August 23, 1993.
    16. ``Credit Toward the 15 Percent Requirements from Architectural 
and Industrial Maintenance Coatings,'' memorandum from John S. Seitz, 
Director, Office of Air Quality Planning and Standards, Environmental 
Protection Agency, September 10, 1993.
    17. ``Reclassification of Areas to Nonattainment and 15 Percent 
Rate-of-Progress Plans,'' memorandum from John S. Seitz, Director, 
Office of Air Quality Planning and Standards, Environmental Protection 
Agency, September 20, 1993.
    18. ``Clarification of `Guidance for Growth Factors, Projections 
and Control Strategies for the 15 Percent Rate of Progress Plans','' 
memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs 
Branch, Office of Air Quality Planning and Standards, Environmental 
Protection Agency, October 6, 1993.
    19. ``Review and Rulemaking on 15 Percent Rate-of-Progress Plans,'' 
memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs 
Branch, Office of Air Quality Planning and Standards, Environmental 
Protection Agency, October 6, 1993.
    20. ``Questions and Answers from the 15 Percent Rate-of-Progress 
Plan Workshop,'' memorandum from G. T. Helms, Chief, Ozone/Carbon 
Monoxide Programs Branch, Environmental Protection Agency, October 29, 
1993.
    21. ``Rate-of-Progress Plan Guidance on the 15 Percent 
Calculations,'' memorandum from D. Kent Berry, Acting Director, Air 
Quality Management Division, Environmental Protection Agency, October 
29, 1993.
    22. ``Clarification of Issues Regarding the Contingency Measures 
that are Due November 15, 1993 for Moderate and Above Ozone 
Nonattainment Areas,'' memorandum from D. Kent Berry, Acting Director, 
Air Quality Management Division, Environmental Protection Agency, 
November 8, 1993.
    23. ``Credit for 15 Percent Rate-of-Progress Plan Reductions from 
the Architectural and Industrial Maintenance (AIM) Coating Rule,'' 
memorandum from John S. Seitz, Director, Office of Air Quality Planning 
and Standards, Environmental Protection Agency, December 9, 1993.
    24. ``Guidance on Projection of Nonroad Inventories to Future 
Years,'' memorandum from Philip A. Lorang,

[[Page 24817]]

Director, Emission Planning and Strategies Division, Office of Air and 
Radiation, Environmental Protection Agency, February 4, 1994.
    25. ``Discussion at the Division Directors Meeting on June 1 
Concerning the 15 Percent and 3 Percent Calculations,'' memorandum from 
G. T. Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of 
Air Quality Planning and Standards, Environmental Protection Agency, 
June 2, 1994.
    26. ``Future Nonroad Emission Reduction Credits for Court-Ordered 
Nonroad Standards,'' memorandum from Philip A. Lorang, Director, 
Emission Planning and Strategies Division, Office of Air and Radiation, 
Environmental Protection Agency, November 28, 1994.
    27. ``Credit for the 15 Percent Rate-of-Progress Plans for 
Reductions from the Architectural and Industrial Maintenance (AIM) 
Coating Rule and the Autobody Refinishing Rule,'' memorandum from John 
S. Seitz, Director, Office of Air Quality Planning and Standards, 
Environmental Protection Agency, November 29, 1994.
    28. ``Transmittal of Rule Effectiveness Protocol for 1996 
Demonstrations,'' memorandum from Susan E. Bromm, Director, Chemical, 
Commercial Services and Municipal Division, Office of Compliance, 
Environmental Protection Agency, December 22, 1994.
    29. ``Future Nonroad Emission Reduction Credits for Locomotives,'' 
memorandum from Philip A. Lorang, Director, Emission Planning and 
Strategies Division, Office of Air and Radiation, Environmental 
Protection Agency, January 3, 1995.
    30. ``Credit for the 15 Percent Rate-of-Progress Plans for 
Reductions from the Architectural and Industrial Maintenance (AIM) 
Coating Rule,'' memorandum from John S. Seitz, Director, Office of Air 
Quality Planning and Standards, Environmental Protection Agency, March 
22, 1995.
    31. ``Fifteen Percent Rate-of-Progress Plans--Additional 
Guidance,'' memorandum from John S. Seitz, Director, Office of Air 
Quality Planning and Standards, Environmental Protection Agency, May 5, 
1995.
    32. ``Update on the Credit for the 15 percent Rate-of-Progress 
Plans for Reductions from the Architectural and Industrial Maintenance 
Coatings Rule,'' memorandum from John S. Seitz, Director, Office of Air 
Quality Planning and Standards, Environmental Protection Agency, March 
7, 1996.
    33. ``Date by which States Need to Achieve all the Reductions 
Needed for the 15% Plan from Inspection and Maintenance (I/M) and 
Guidance for Recalculation,'' memorandum from Margo Oge, Director, 
Office of Mobile Sources, and John S. Seitz, Director, Office of Air 
Quality Planning and Standards, Environmental Protection Agency, August 
13, 1996.
    34. ``Sample City Analysis: Comparison of Enhanced Inspection and 
Maintenance (I/M) Reductions Versus Other 15 Percent Rate of Progress 
Plan Measures,'' E.H. Pechan and Associates, December 12, 1996.
    35. ``Modeling 15 Percent Volatile Organic Compound (VOC) 
Reduction(s) from I/M in 1999: Supplemental Guidance,'' memorandum from 
Gay MacGregor, Director, Regional and State Programs Division, and 
Sally Shaver, Director, Air Quality Strategies and Standards Division, 
Environmental Protection Agency, December 23, 1996.
    36. ``15% Volatile Organic Compound (VOC) State Implementation Plan 
(SIP) Approvals and the `As Soon As Practicable' Test,'' memorandum 
from John S. Seitz, Director, Office of Air Quality Planning and 
Standards, and Richard B. Ossias, Deputy Associate General Counsel, 
Division of Air and Radiation, Office of General Counsel, Environmental 
Protection Agency, February 12, 1997.
    For a 15% ROP plan SIP to be approved, the plan must adequately 
justify how much emission reduction is needed to achieve 15% emission 
reduction by November 15, 1996, and how the plan's control strategy 
will secure that reduction. The procedure for calculating the needed 
emission reduction is as follows:
    (A) Calculate the ``1990 ROP inventory'' by subtracting from the 
area's ``1990 base year inventory'' 1 biogenic emissions, 
emissions outside of the nonattainment area, and pre-enactment banked 
emission credits;
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    \1\ Sections 172(c)(3) and 182(a)(1) of the Act require that 
nonattainment plan provisions include a comprehensive, accurate 
inventory of actual emissions which occurred in 1990 from all 
sources of relevant pollutants in the nonattainment area. This 
inventory provides an estimate of the amount of VOC and oxides of 
nitrogen produced by emission sources such as automobiles, 
powerplants and the use of consumer solvents in the household. 
Because the approval of such inventories is necessary to an area's 
15% ROP plan and attainment demonstration, the emission inventory 
must be approved prior to or with the 15% ROP plan submission.
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    (B) Calculate the ``1990 adjusted base year inventory'' by 
subtracting from the 1990 ROP inventory any emission reductions from 
the pre-1990 FMVCP and 1990 RVP Federal regulations which occur between 
1990 and 1996; 2
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    \2\ The 1990 adjusted base year inventory represents the 
``baseline emissions'' from which the 15 percent reduction is to be 
calculated, as specified under section 182(b)(1)(B) of the Act. 
Section 182(b)(1)(B) defines baseline emissions to mean the total 
amounts of actual VOC emissions from all anthropogenic sources in 
the ozone nonattainment areas during the calendar year of 1990, 
excluding emissions that are eliminated by the pre-1990 FMVCP and 
1990 RVP regulations. In the General Preamble, EPA interprets 
``calendar year'' emissions to consist of typical ozone season 
weekday emissions, based on the fact that the ozone National Ambient 
Air Quality Standard (NAAQS) (0.12 parts per million, one-hour 
averaged) is generally exceeded or violated during ozone season 
weekdays when ozone precursor emissions and meteorological 
conditions are most conducive to ozone formation. Ozone seasons are 
typically the summer months.
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    (C) Calculate ``15% of adjusted base year emissions'' by 
multiplying the 1990 adjusted base year inventory by 15%;
    (D) Calculate the ``total required reductions by 1996'' by adding 
emission reductions from the pre-1990 FMVCP and 1990 RVP federal rules 
to the 15% of adjusted base year emissions calculation; 3
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    \3\ Under section 182(b)(1)(D), emission reductions pre-1990 and 
1990 RVP regulations are not creditable toward meeting 15%. The 
emission reductions which occurred by 1996 from these regulations 
are added to emissions required to meet 15% to determine the total 
amount of emission reduction by 1996 for the area.
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    (E) Calculate the ``1996 emissions target level'' by subtracting 
from the 1990 ROP base year inventory the total required reductions by 
1996;
    (F) Calculate the ``1996 projected emission estimate'' by a number 
of methods, such as adding growth factors to the 1990 adjusted base-
year inventory, or adding growth factors and required emission 
reductions to the 1990 ROP inventory; and
    (G) Calculate the ``reduction required by 1996 to achieve 15% net 
of growth'' by subtracting the 1996 target emissions level from the 
1996 projected emissions level.
    In determining what control measures a State can use in its 15% ROP 
plan strategy, the Act provides under section 182(b)(1)(C) that 
emission reductions from control measures are creditable to the extent 
that they have actually occurred before November 15, 1996. In keeping 
with this requirement, the General Preamble states that all credited 
emission reductions must be real, permanent, and enforceable, and that 
regulations needed to implement the plan's control strategy must be 
adopted and implemented by the State by November 15, 1996.
    The EPA has reviewed the State's submittal for consistency with the 
requirements of the Act and EPA guidance. A summary of EPA's analysis 
is provided below.

[[Page 24818]]

IV. Analysis of Clark and Floyd Counties 15% ROP Plan

    Indiana's 15% ROP Summary for Clark and Floyd Counties is shown in 
the following table:

               15% ROP Summary for Clark & Floyd Counties               
------------------------------------------------------------------------
                                                            Lbs VOC/day 
------------------------------------------------------------------------
         Calculation of Reduction Needs by 1996                         
1990 Clark and Floyd Counties Total VOC Emissions.......         162,855
1990 ROP Emissions (Anthropogenic only).................          86,815
1990-1996 Noncreditable Reductions (Reductions from 1990                
 RVP and Pre-1990 FMVCP Regulations)....................          18,985
1990 Adjusted Base Year Emissions (1990 ROP Emissions                   
 minus Noncreditable Reductions)........................          67,830
15% of Adjusted Base Year Emissions.....................          10,175
Total Expected Emission Reductions by 1996 (15% of                      
 Adjusted Base Year Emissions plus Noncreditable                        
 Reductions)............................................          29,160
1996 Target Level (1990 ROP Emissions minus Total                       
 Required Emission Reductions by 1996)..................          57,655
1996 Projected Emissions (1990 Adjusted Base Year                       
 Emissions plus Growth Factors).........................          74,764
Reduction Needed to Achieve 15 Percent Net of Growth                    
 (1996 Projected Emissions minus 1996 Target Level).....          17,109
       Expected Reduction From Mandatory Controls                       
Point Sources:                                                          
    Volatile Organic Liquid (VOL) Storage Tanks Rule                    
     (326 IAC 8-9)......................................             142
    Shipbuilding and Ship Repair Rule (326 IAC 8-12)....           1,164
    Wood Furniture Coating Rule (326 IAC 8-11)..........           2,445
Area Sources:                                                           
    Automobile Refinishing Rule (326 IAC 8-10)..........           1,172
    Federal Architectural and Industrial Maintenance                    
     (AIM) Coatings Rule................................             750
                                                         ---------------
      Subtotal--Reductions From Mandatory Controls......           5,673
     Expected Reductions From Non Mandatory Controls                    
Mobile Sources:                                                         
    Low Reid Vapor Pressure (RVP) Gasoline Rule--Mobile                 
     Sources (326 IAC 13-3).............................           3,800
    Improved Basic Vehicle Inspection and Maintenance (I/               
     M) Program (326 IAC 13-1.1)........................           2,200
    Commuter Credits from Kentucky Motorists............             700
    Ridesharing Program.................................              55
Area Sources:                                                           
    Stage II Gasoline Vapor Recovery Rule (326 IAC 8-4-                 
     6).................................................           2,290
    Lower RVP Gasoline Rule--Area Sources (326 IAC 13-3)             787
    Residential Open Burning (326 IAC 4-1)..............             704
    Municipal Solid Waste (MSW) Landfill Rule (326 IAC 8-               
     8).................................................             345
Point Sources:                                                          
    Rhodes, Inc. (Rhodes) Construction Permit...........             661
                                                         ---------------
      Subtotal--Reduction From Non Mandatory Controls...          11,542
                                                         ===============
      Total Creditable Reductions From 15% ROP Plan.....          17,215
------------------------------------------------------------------------

A. Calculation of the 1990 Adjusted Base Year Emission Inventory

    To determine the 1990 adjusted base year inventory, Indiana used 
its 1990 base year emission inventory as a starting point. This 
inventory was found by EPA to meet the requirements of sections 
172(c)(3) and 182(a)(1) of the Act for Clark and Floyd Counties and was 
approved on June 20, 1994 (59 FR 31544). After this approval, Indiana 
identified certain errors with the point and area source portions of 
the inventory and made corrections to the inventory, accordingly. These 
corrections were included with the Clark and Floyd 15% ROP plan 
submittal and are being approved in today's action as a revision to the 
SIP (See section V of this rulemaking action). Under the revised 1990 
base year emissions inventory, total VOC emissions are 162,855 lbs VOC/
day. Indiana subtracted from the 1990 base year inventory biogenic 
emissions and emissions from outside Clark and Floyd Counties to 
determine that the 1990 ROP inventory level is 86,815 lbs VOC/day. No 
pre-enactment banked emission credit was included in the inventory.
    Indiana used EPA's Mobile Source Emissions Model (MOBILE)5a 
emission factor model to determine the emission reductions from pre-
1990 FMVCP and 1990 RVP regulations; the 1990 ROP inventory level minus 
these reductions equates to a 1990 adjusted base year inventory level 
of 67,830 lbs VOC/day. Indiana's documentation includes the actual 1990 
motor vehicle emissions using 1990 vehicle miles traveled (VMT) and 
MOBILE5a emission factors, and the adjusted emissions using 1990 VMT 
and the MOBILE5a emission factors in calendar year 1996 with the 
appropriate RVP for the nonattainment area as mandated by EPA. The plan 
submittal includes adequate documentation showing how the MOBILE5a 
model was run to determine the expected emission reductions by 1996 
from pre-1990 FMVCP and 1990 RVP.

B. 1996 ROP Target Emission Level

    To calculate the 1996 target emission level for Clark and Floyd 
Counties, Indiana first multiplied the 1990 adjusted base year 
inventory by 0.15 to determine that the 15% required emission reduction 
by 1996 is 10,175 lbs VOC/day. Then, 18,985 lbs VOC/day of reductions 
from noncreditable control measures (pre-1990 FMVCP and 1990 RVP) were 
added to the 15% required reduction to determine that the total 
expected reductions by 1996 is 29,160 lbs VOC/day. Finally, Indiana 
subtracted the 1996 total expected

[[Page 24819]]

emission reductions from the 1990 ROP emission inventory to determine 
that the 1996 emission target level for Clark and Floyd Counties is 
57,655 lbs VOC/day.
    The 15% ROP plan submittal adequately documents the total expected 
reductions in the nonattainment area by showing each step, discussing 
any assumptions made, and stating the origin of the number used in the 
calculations.

C. Projected Emission Inventory

    To determine the 1996 projected emission inventory, Indiana 
included in the 15% ROP plan the growth factors used together with 
documentation for the assumptions made. The point, area, and non-road 
mobile source emission inventories were projected using either source 
supplied data, population forecasts, historical data, or, where 
historical data were unavailable or not suitable to project, the U.S. 
Department of Commerce Bureau of Economic Analysis (BEA) regional 
growth data were used. The on-road mobile source emission inventory was 
projected using MOBILE5a. The State's calculations for growth in the 
on-road mobile, off-road mobile, industrial, and area source sectors 
are 3,940 lbs VOC/day, 691 lbs VOC/day, 1,150 lbs VOC/day, and 1,153 
lbs VOC/day, respectively, for a total of 6,934 lbs VOC/day. These 
growth estimates were calculated in a manner consistent with EPA 
guidance documents. The projected emissions were added to the 1990 
adjusted base year inventory to determine that the 1990 projected 
emission inventory level is 74,764 lbs VOC/day.

D. Creditable Reductions From Control Measures

    From the calculation of the 1996 target emission level and 1996 
projected emission level, Clark and Floyd Counties must reduce 
emissions by 17,109 lbs VOC/day to secure the 15% ROP reduction. The 
Clark and Floyd Counties 15% ROP plan does meet this requirement. The 
total creditable emission reduction achieved by the 15% ROP plan is 
17,215 lbs VOC/day. Emission reductions not needed to meet 15% can be 
used in Clark and Floyd Counties' contingency plan or attainment plan.
    The SIP submittal includes documentation of the sources or source 
categories which are expected to be affected by each control measure, 
the sources' projected 1996 emissions without controls, and the 
assumptions used to estimate how much each control measure will reduce 
the sources' 1996 emissions. These assumptions were derived primarily 
from Midwest Research Institute's April 30, 1993, document entitled 
``Support Document for Indiana's Clark and Floyd Nonattainment Area 
1996 Rate-of-Progress Plan'' (MRI document), which was contracted by 
EPA to assist Indiana in developing the 15% ROP plan.
    A review of the emission reduction credit taken for each control 
measure follows:
VOL Storage Rule
    SIP rule 326 IAC 8-9 requires special roof design and sealing 
requirements for certain VOL storage vessels. Indiana is only taking 
credit from controls on fixed roof tanks located in Floyd County. The 
rule's control requirements for fixed roof tanks are assumed to have an 
overall control efficiency estimate of 96%, with a rule effectiveness 
of 80%. An emission reduction of 142 lbs VOC/day has been claimed from 
this rule, which is acceptable.
Shipbuilding and Ship Repair Rule
    SIP rule 326 IAC 8-12 requires shipbuilding and ship repair 
operations to comply with certain low-VOC coating requirements, coating 
thinning limitations, and VOC-reducing work practices. One source, 
Jeffboat, is affected by this rule. Jeffboat is required to use water 
based weld-through (shop) preconstruction primer with a VOC content of 
zero. This limit is significantly tighter than EPA's Control Techniques 
Guideline limit of 5.42 lbs VOC/gallon for preconstruction primers used 
in this source category (see 61 FR 44050, August 27, 1996). In addition 
to documentation contained in the submittal, Indiana submitted 
supplemental documentation showing that the rule's control measures 
have an estimated 73% VOC control efficiency. For the 15% ROP plan, 
however, Indiana conservatively took an overall 50% VOC emission 
reduction from the source's 1990 emission level. An emission reduction 
claim of 1,164 lbs VOC/day for this rule is acceptable.
Wood Furniture Coating Rule
    SIP rule 326 IAC 8-11 requires wood furniture coating operations to 
comply with certain low-VOC coating requirements and VOC-reducing work 
practices. The MRI document estimated that the rule's control 
requirements would result in an overall 55% VOC emission reduction. 
However, based on discussions with wood furniture coaters in Clark and 
Floyd Counties, Indiana has determined that an overall control 
efficiency of 32% is a more accurate estimate. The rule effectiveness 
is assumed to be 80%. An emission reduction claim of 2,445 lbs VOC/day 
from this rule is acceptable.
Federal AIM Coatings Rule
    Pursuant to section 183(e) of the Act, EPA proposed on June 25, 
1996 (61 FR 32729) a national rule requiring manufacturers of AIM 
coatings to meet certain VOC content limitations. The March 7, 1996, 
EPA memorandum ``Update on the Credit for the 15 Percent Rate-of-
Progress Plans for Reductions from the Architectural and Industrial 
Maintenance Coatings Rule'' allows States to take credit for a 20% 
reduction in AIM coating emissions, even though promulgation of the 
rule has been delayed. Based on this policy, Indiana has claimed 750 
lbs VOC/day in emission reduction, which is acceptable.
Automobile Refinishing Rule
    SIP rule 326 IAC 8-10 requires automobile and mobile equipment 
refinishing shops to use lower VOC coatings, less-emitting spray-gun 
and spray-gun cleaning equipment, and improved work practices to reduce 
VOC. To improve rule effectiveness, this rule also requires refinishing 
coating suppliers in the area to sell only coatings which meet the VOC 
limits required in the rule. In addition to documentation contained in 
the submittal, Indiana submitted supplemental documentation which 
indicates that an overall 77.8% emission reduction can be expected from 
all the control measures required by this rule, with 100% rule 
effectiveness. The emission reduction claimed for this rule, 1,172 lbs 
VOC/day, is acceptable.
Low RVP Gasoline (7.8 PSI) Rule
    SIP rule 326 IAC 13-3 requires gasoline sold in Clark and Floyd 
Counties to comply with a 7.8 RVP standard during the ozone season. 
Although this rule regulates RVP, it is not an RVP rule promulgated by 
the Administrator before enactment, nor required to be promulgated 
under section 211(h). Therefore, this rule is creditable under section 
182(b)(1)(D). MOBILE5a was used to estimate that the emission 
reductions attributable to this requirement are 3,800 lbs VOC/day from 
mobile sources, and 787 lbs VOC/day from area sources, respectively. 
This emission reduction claim is acceptable.
Improved I/M Program
    Many states have claimed emission reductions from improvements to 
pre-existing I/M programs in their 15% ROP plans because such 
improvements achieve more VOC emission reductions than most, if not all 
other, control

[[Page 24820]]

strategies. For many States, however, actual emission reductions from 
these improvements will not occur until after 1996. This is due to the 
substantial amount of time needed to re-design I/M programs in response 
to the September 18, 1995, revisions to EPA's I/M regulations (60 FR 
48029) and/or the enactment of the National Highway Systems Designation 
Act of 1995 (NHSDA), to secure State legislative approval when 
necessary, and to set up the infrastructure to perform the testing 
program.
    Given the heavy reliance by many States on upgrading I/M to help 
satisfy 15% ROP plan requirements, and the recent NHSDA and regulatory 
changes regarding I/M, EPA has recognized that it is not possible for 
many States to achieve emission reductions attributable to I/M 
improvements by November 15, 1996. Under these circumstances, 
disapproval of the 15% ROP plan SIPs would serve no purpose. 
Consequently, under certain circumstances, EPA will allow States that 
pursue re-design of their I/M program to receive emission reduction 
credit for their 15% ROP plans, even though the emission reductions 
from I/M will occur after November 15, 1996.
    Specifically, the EPA will approve a 15% ROP SIP if the emission 
reductions from a revised I/M program, as well as from the other 15% 
ROP plan measures, will achieve the 15% level as soon after November 
15, 1996, as practicable. To make this ``as soon as practicable'' 
determination, the EPA must determine that the 15% ROP plan contains 
all VOC control strategies that are practicable for the nonattainment 
area in question and that meaningfully accelerate the date by which the 
15% level is achieved. The EPA does not believe that measures 
meaningfully accelerate the 15% date if they provide only an 
insignificant amount of reductions.
    Revisions to Clark and Floyd Counties' I/M program (326 IAC 13-1.1) 
were approved by EPA on March 19, 1996 (61 FR 11142). The State's I/M 
contract requires that testing vehicles under the improved program 
begin in July 1997. A single contractor, Envirotest, Inc., operates a 
test-only centralized network for inspections and re-inspection. The 
Indiana I/M program requires coverage of all 1976 and newer gasoline 
powered light duty passenger cars and light duty trucks up to 9,000 
pounds Gross Vehicle Weight Rating (GVWR). The State's program requires 
that all applicable 1981 and newer vehicles meet a transient, mass 
emissions tailpipe test that includes the purge and pressure test. All 
applicable model year 1976 through 1980 vehicles will be subject to a 
BAR90 single-speed idle test that includes the pressure test.
    EPA has analyzed Clark and Floyd Counties' improved I/M program to 
predict when the emission reductions claimed in the 15% ROP plan for 
the improvements will actually be secured. This analysis was based on 
the methodology specified in EPA's policy memoranda, ``Date by Which 
States Need to Achieve all the Reductions Needed for the 15% Plan from 
I/M and Guidance for Recalculation,'' August 13, 1996, and ``Modeling 
15% VOC Reduction(s) from I/M in 1999--Supplemental Guidance,'' 
December 23, 1996. MOBILE5b runs were used to evaluate the credit, 
using inputs that reflect actual program startup. Some of the input 
parameters of the modeling included: a July 1997, program start date; 
start-up cutpoints as recommended by EPA; and expected evaporative test 
procedures available at start-up. The State has taken credit in the 
Clark and Floyd Counties 15% ROP plan for 2,200 lbs VOC/day reductions 
from improvements in I/M. Based on EPA's analysis, the emission 
reduction claimed will be secured by November 1999. (See EPA's August 
13, 1996, policy memorandum titled ``Date by Which States Need to 
Achieve all the Reductions Needed for the 15% Plan from I/M and 
Guidance for Recalculation,'' for further discussion on the 
acceptability of the November 1999 date).
    To determine whether there are other available potential control 
measures which can meaningfully accelerate the date by which 15% 
emission reduction in Clark and Floyd Counties can be achieved, EPA 
compared the Clark and Floyd Counties 15% ROP plan with control 
measures included in 15% ROP plans nation-wide, which are listed in 
EPA's report, ``Sample City Analysis: Comparison of Enhanced I/M 
Reductions Versus other 15 Percent ROP Plan Measures,'' December 12, 
1996, referenced in EPA's policy document ``15% VOC SIP Approvals and 
the `As Soon As Practicable' Test,'' February 12, 1997. Based upon the 
report, EPA believes that there are no other potential control measures 
beyond those already included in the Clark and Floyd 15% ROP plan which 
can secure a significant amount of emission reduction before November 
1999.
    Because Indiana's improved I/M program will secure emission 
reductions claimed under the Clark and Floyd Counties 15% ROP plan by 
November 1999, and there are no other potential control measures which 
can meaningfully accelerate the achievement of 15% reduction in the 
counties before November 1999, the EPA finds that the Clark and Floyd 
Counties 15% ROP plan does secure 15% emission reductions as soon as 
practicable. On this basis, the emission reduction claimed under Clark 
and Floyd Counties' 15% ROP plan for improved I/M is approvable.
Commuter Credits, Kentucky Motorists
    The 1990 base year inventory includes emissions from VMT driven in 
Clark and Floyd Counties by Louisville, Kentucky, motorists. Two post-
1990 control measures implemented in Louisville have reduced emissions 
from these motorists: reformulated gasoline and I/M pressure checks. 
MOBILE5a was used to estimate the emission reduction in Clark and Floyd 
Counties associated with these control measures, and the input and 
output files are included in the SIP submittal. The emission reduction 
claimed from this program, 700 lbs VOC/day, is acceptable.
Ridesharing Program
    The Clark and Floyd Counties 15% ROP plan takes credit for a 
ridesharing program, called the ``Commuter Pool,'' which affects 
commuters in Clark and Floyd Counties. The Commuter Pool program 
provides companies and employees with technical and financial 
assistance in implementing car-pool and van-pool commuting 
arrangements. The program covers the entire Louisville metropolitan 
area and is administered by the Kentuckiana Regional Planning and 
Development Agency (KIPDA), the Metropolitan Planning Organization 
(MPO) for the area. The program is programmed and funded in the 
Louisville metropolitan area's Horizon 2020 Transportation Improvement 
Plan and fiscal year (FY) 1997-2000 Transportation Improvement Program 
(TIP). The rideshare program is partly funded through the federal 
Congestion Mitigation and Air Quality Improvement Program 
(CMAQ).4
---------------------------------------------------------------------------

    \4\ MPOs can utilize United States Department of Transportation 
(DOT) funds from CMAQ. CMAQ is a federal program which provides 
funding for transportation related projects and programs designed to 
contribute to attainment of air quality standards.
---------------------------------------------------------------------------

    To demonstrate emission reductions achieved by this program in 
Clark and Floyd Counties, Indiana submitted an air quality analysis 
from KIPDA which was developed using a similar methodology used to 
evaluate the FY 1994-1997 TIP for the Louisville metropolitan area. As 
part of this analysis, KIPDA isolated the impacts of the ridesharing 
program on roadways in Clark and Floyd Counties regardless of

[[Page 24821]]

whether employment locations are based in Indiana or Kentucky. This 
impact is estimated to be an emission reduction of 55 lbs VOC/day.
    This program was submitted with the Clark and Floyd 15% ROP plan as 
a transportation control measure (TCM) to be included in the SIP. EPA 
is, in today's action, approving the TCM as a SIP revision (see section 
V of the rulemaking). The TCM has been implemented since 1994 and was 
initially programmed and funded in the Louisville metropolitan area 
1994-1997 TIP. This program's continued operation will be ensured 
through federal transportation conformity requirements. The emission 
reduction claimed from the program is acceptable.
Stage II Gasoline Vapor Recovery Rule
    SIP rule 326 IAC 8-4-6 requires facilities that sell more than 
10,000 gallons of gasoline per month to operate Stage II gasoline vapor 
recovery systems certified to have a control effectiveness of at least 
95%. Indiana has estimated that the rule has an 84% program in-use 
efficiency, accounting for annual inspection program effects and the 
exemption of facilities with a monthly gasoline throughput of less than 
10,000 gallons. The State's emission reduction claim of 2,290 lbs VOC/
day from this rule is acceptable.
Residential Open Burning Rule
    Under SIP rule 326 IAC 4-1, residential open burning is banned in 
Clark and Floyd Counties. Indiana estimated that this rule would reduce 
open burning emissions by 80%, or 704 lbs VOC/day, which is acceptable.
MSW Landfill Rule
    SIP rule 326 IAC 8-8 applies to new and existing MSW landfills 
emitting greater than 55 tons of non-methane organic compounds per year 
and with a minimum design capacity of 100,000 megagrams of solid waste. 
The rule requires the operation of a landfill gas collection system and 
combustion device. Based on a destruction efficiency of 98% and 
collection efficiencies ranging from 50% to 60%, Indiana estimated that 
an overall VOC emission control efficiency range of 49% to 59% may be 
achieved, with a rule effectiveness of 80%. The State has claimed 345 
lbs VOC/day in emission reduction from this rule, which is acceptable.
Rhodes Construction Permits
    Rhodes, located in Charlestown, Clark County, operates a heatset 
web offset printing operation. In 1990, the source was emitting 
approximately 125 tons of VOC per year after controls. Beginning in 
October 15, 1991, Rhodes began a series of replacements and new 
installation of presses. Rhodes has been issued three construction 
permits, CP 019-2110, CP 019-2696, and CP 019-4362, in accordance with 
326 IAC 2-1-3, to replace and install presses. These permits require 
Rhodes to improve its VOC emission control by installing and operating 
two thermal incinerators with a 98% VOC destruction efficiency to 
control ink emissions from all presses in the plant.
    Indiana estimated emission reductions from the VOC control 
improvements using a July 1, 1994, report submitted by Rhodes to IDEM 
pursuant to the State's emission statement program.\5\ This report was 
based upon stack test data with one of the new thermal incinerators in 
operation. IDEM inspectors quality assured the report and found it 
acceptable. Using software designed to calculate annual emissions from 
data submitted under the emission statement program, IDEM determined 
that in 1994 Rhodes was emitting 13.5 tons of VOC per year after 
controls, representing a 111.5 ton VOC/year reduction from 1990 levels. 
IDEM used an EPA conversion equation (to account for emissions per 
summertime day) to determine that the new controls at Rhodes have 
reduced emissions by 771 lbs VOC/day.
---------------------------------------------------------------------------

    \5\ Indiana's emission statement program (326 IAC 2-6) was 
adopted pursuant to section 182(a)(3)(B) of the Act. Under this 
program, owners and operators of stationary sources of VOC or oxides 
of nitrogen (NOx) are required to provide annual 
statements, in a format required under 326 IAC 2-6, showing actual 
emissions of NOx and/or VOC from the sources. EPA 
approved Indiana's emission statement program on June 10, 1994 (59 
FR 29953).
---------------------------------------------------------------------------

    Indiana submitted the Rhodes construction permits with the Clark 
and Floyd Counties 15% ROP plan and claimed a 661 lbs VOC/day emission 
reduction from the permits. In today's action, EPA is approving the 
Rhodes construction permits as revisions to the Indiana ozone SIP (see 
section V of this rulemaking action). It should be noted that Indiana's 
15% ROP plan submittal states the total reduction from Rhodes as 865 
lbs VOC/day. However, IDEM has subsequently indicated to EPA that the 
emission reduction from Rhodes which should have been claimed in the 
submittal is 771 lbs VOC/day. In today's action, EPA is approving an 
771 lbs VOC/day emission reduction which can be credited toward ROP. 
Since Indiana claimed 661 lbs VOC/day in emission reduction from Rhodes 
in the 15% ROP plan submittal, the remaining 110 lbs/day can be used 
toward meeting Clark and Floyd Counties' attainment demonstration or 
contingency plan requirements.

E. Enforceability Issues

    All measures and other elements in the SIP must be enforceable by 
the State and EPA (see sections 172(c)(6), 110(a)(2)(A) of the Act, and 
57 FR 13556). The EPA criteria addressing the enforceability of SIPs 
and SIP revisions were stated in a September 23, 1987, memorandum (with 
attachments) from the Assistant Administrator for Air and Radiation 
(see 57 FR 13541). Nonattainment area plan provisions must also contain 
a program that provides for enforcement of the control measures and 
other elements in the SIP [see section 110(a)(2)(C) of the Act].
    The control measures included in the Clark and Floyd Counties 15% 
ROP plan have been fully adopted by Indiana and have been submitted to 
EPA as a revision to the State's ozone SIP. The EPA has independently 
reviewed each control measure to determine conformance with SIP 
requirements under section 110 and part D of the Act, and the measure's 
overall enforceability. Rulemaking action on each control measure is as 
follows:

------------------------------------------------------------------------
       Control measure                    Date of EPA approval          
------------------------------------------------------------------------
VOL Storage Vessel Rule (326   January 17, 1997 (62 FR 2593)            
 IAC 8-9).                                                              
Shipbuilding and Ship Repair   January 22, 1997 (62 FR 3216)            
 Rule (326 IAC 8-12).                                                   
Wood Furniture Coating Rule    October 30, 1996 (61 FR 55889)           
 (326 IAC 8-11).                                                        
 Federal Architectural and     Proposed federal regulation for which    
 Industrial Maintenance         Indiana can take credit (See March 7,   
 Coatings Rule.                 1996, memorandum from John Seitz,       
                                Director, Office of Air Quality Planning
                                and Standards to Regional Division      
                                Directors).                             
Automobile Refinishing Rule    June 13, 1996 (61 FR 29965)              
 (326 IAC 8-10).                                                        

[[Page 24822]]

                                                                        
Low RVP Gasoline Rule (326     February 9, 1996 (61 FR 4895)            
 IAC 13-3).                                                             
Improved Basic I/M (326 IAC    March 19, 1996 (61 FR 11142)             
 13-1.1).                                                               
Commuter Credits, Kentucky     February 16, 1994 (59 FR 7716) (Federal  
 Motorists.                     reformulated gasoline)                  
                               July 28, 1995 (60 FR 38700) (Louisville  
                                Hybrid I/M)                             
KIPDA Ridesharing Program....  Date of EPA approval action is date of   
                                today's Federal Register. See discussion
                                below.                                  
Stage II Vapor Recovery (326   April 28, 1994 (59 FR 21942)             
 IAC 8-4-6).                                                            
Residential Open Burning Ban   February 1, 1996 (61 FR 3581)            
 (326 IAC 4-1).                                                         
Municipal Solid Waste          January 17, 1997 (62 FR 2591)            
 Landfills (326 IAC 8-8).                                               
Rhodes Construction Permits..  Date of EPA approval action is date of   
                                today's Federal Register. See discussion
                                below.                                  
------------------------------------------------------------------------

F. Transportation Conformity 1996 Mobile Source Emissions Budget

    Section 176(c) requires States to submit SIP revisions establishing 
the State's criteria and procedures for assessing the conformity of 
federal actions (transportation and general) to the SIP's purpose of 
eliminating or reducing the severity and number of violations of the 
National Ambient Air Quality Standards and achieving expeditious 
attainment of such standards. These conformity SIP revisions must 
assure that federal actions will not: (1) cause or contribute to any 
new violation of any standard in any area, (2) increase the frequency 
or severity of any existing violation of any standard in any area, or 
(3) delay timely attainment of any standard or any required interim 
emission reductions or other milestones in any area. To assure 
conformity with the SIP, conformity analyses for transportation 
projects must take into account the amount of on-road mobile source 
emissions that can be emitted in accordance with SIP emission reduction 
milestones. For purposes of EPA transportation conformity 
determinations, the 1996 emission level for on-road mobile sources that 
is achieved from the 15% ROP plan constitutes the 1996 VOC mobile 
source emission budget for Clark and Floyd Counties. This level, which 
is derived from MOBILE5a using 1996 estimated emissions with improved 
I/M, 7.8 low RVP, and Kentucky commuter credits, is 17,340 lbs VOC/day. 
Therefore, final approval of the 15% ROP plan also approves the 1996 
mobile source VOC emission budget.
    For years after 1996, conformity determinations addressing VOCs 
must demonstrate consistency with this plan revision's motor vehicle 
emissions budget, and satisfaction of the build/no-build test, as 
defined under 40 CFR part 93.

G. Conclusion

    The EPA has reviewed the Clark and Floyd Counties 15% ROP plan SIP 
revision submitted to EPA as described above, and finds that the plan 
satisfies the applicable requirements of the Act, as well as EPA 
guidance for such plans. Therefore, the EPA, in this action, is 
approving these plans as a revision to the Indiana ozone SIP.

V. Other Rulemaking Actions

A. Corrections to 1990 Base Year Emissions Inventory

    Corrections for Clark and Floyd Counties 1990 base year emissions 
inventory were submitted as Appendix B in the 15% ROP plan submittal. 
In today's action, EPA is approving the revised 1990 base year 
emissions inventory as a revision to the SIP. The following table 
explains the revisions:

Revisions to Clark and Floyd Counties' 1990 Base-Year Emission Inventory
------------------------------------------------------------------------
         Sources affected                  Explanation of changes       
------------------------------------------------------------------------
Service station tank breathing      Controlled emissions from service   
 area sources.                       station tank breathing were        
                                     erroneously included in the 1990   
                                     base year emissions inventory and  
                                     have now been removed.             
Ashland...........................  Ashland has submitted corrected 1990
                                     base year emissions for its point  
                                     sources.                           
Rhodes............................  Rhodes was not included in the 1990 
                                     base year emissions inventory.     
                                     Emissions from the source have now 
                                     been added.                        
Louisville Hardwoods, Inc.........  Because Louisville Hardwoods' 1990  
                                     emissions were less than the 10    
                                     tons VOC/year point source         
                                     inventory cut off, the source's    
                                     emissions have been shifted from   
                                     the point source inventory to the  
                                     area source inventory.             
------------------------------------------------------------------------

B. Ridesharing Program

    Included as a requested SIP revision in the Clark and Floyd 15% ROP 
plan submittal is a ridesharing program, called the Commuter Pool, 
affecting commuters in Clark and Floyd Counties. The Commuter Pool 
program provides companies and employees in the Louisville metropolitan 
area (including Clark and Floyd Counties) with technical and financial 
assistance in implementing car-pool and van-pool commuting 
arrangements.
    To take credit for the ridesharing program, the program must be 
approved by EPA as a Transportation Control Measure (TCM) and 
incorporated in the SIP. EPA's requirements for TCMs are summarized in 
the June 1993, EPA guidance document, Guidance on Preparing Enforceable 
Regulations and Compliance Programs for the 15 Percent Rate-of-Progress 
Plans. The required elements are (1) A complete description of the 
measure, and, if possible, its estimated emissions reduction benefits; 
(2) evidence that the measure was properly adopted by a jurisdiction(s) 
with legal authority to execute the measure; (3) evidence that funding 
will be available to implement the measure; (4) evidence that all 
necessary approvals have been obtained from all appropriate government 
offices; (5) evidence that a complete schedule to plan, implement, and 
enforce the measure has been adopted by the implementing agencies; and 
(6) a description of any monitoring program to evaluate the measure's 
effectiveness and to allow for necessary in-place corrections or 
alterations.
    The Commuter Pool program, as submitted by Indiana in the Clark and 
Floyd 15% ROP plan submittal, fully satisfies TCM requirements based on 
the following: (1) A complete description of the program and estimated 
emission reduction are provided in the documentation submitted with the 
ROP plan; (2) the measure has been adopted

[[Page 24823]]

by KIPDA, the authorized MPO for Louisville; (3) the program is 
currently operating and has received federal CMAQ program money for 
operation; (4) all necessary approvals have been obtained from DOT on 
the FY 1997-2000 TIP and Horizon 2020 Transportation Plan (which 
includes the TCM); (5) the Transportation Plan and TIP constitute the 
schedule, implementation mechanism, and also the enforcement mechanism 
for the TCM (the conformity provisions in 40 CFR part 93 provide that 
TCMs in an approved SIP must be implemented on schedule before a 
conformity determination can be made by DOT); and (6) the CMAQ program 
requires monitoring of programs funded under CMAQ and annual reports to 
DOT on achieved emission reductions. The Commuter Pool TCM, therefore, 
is approvable.

C. Rhodes Permits

    Rhodes' heatset web offset printing operations are subject to three 
construction permits issued under 326 IAC 2-1 of the Indiana rules. The 
construction permits are CP 019-2110, CP 019-2696, and CP 019-4362, 
issued October 15, 1991, December 18, 1992, and April 21, 1995, 
respectively. These permits were submitted with the Clark and Floyd 15% 
ROP plan as a revision to the SIP.
    Under the construction permits, Rhodes must not operate its presses 
unless the incinerators are functioning properly. Each incinerator must 
meet a 98% VOC destruction efficiency, and must maintain a combustion 
temperature at or above 1400 degrees Fahrenheit (760 degrees Celsius) 
to ensure continuous compliance with the destruction efficiency. The 
plant must meet a VOC capture efficiency of 86%, assuring an overall 
efficiency of 84% minimum. Rhodes was required to conduct an initial 
compliance stack test for each incinerator. Daily record keeping of the 
incinerators' minimum operating inlet temperature and minimum duct 
velocity must be kept for at least two years. Exceedances must be 
reported to IDEM.
    These permits are being approved in today's action as revisions to 
the Indiana ozone SIP.

VI. Final Rulemaking Action

    The EPA approves Indiana's 15% ROP plan for Clark and Floyd 
Counties as a revision to the SIP. For transportation conformity 
purposes, final approval of this 15% ROP plan also approves the 1996 
mobile source emission budget of 16,785 lbs VOC/day. EPA also approves 
corrections to Clark and Floyd Counties 1990 base year emissions 
inventory, the Rhodes permits, and the ridesharing program TCM included 
in the 15% ROP submittal.
    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 July 7, 1997 unless, by June 6, 1997, adverse or critical 
comments on the approval are received.
    If the EPA receives adverse comments, the approval 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 
July 7, 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.

VII. 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 Section 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 Section 
804(2).

F. 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 July 7, 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

[[Page 24824]]

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, 
Intergovernmental relations, Incorporation by reference, Ozone, 
Reporting and recordkeeping requirements.

    Dated: April 16, 1997.
William E. Muno,
Acting Regional Administrator.

    For the reasons stated in the preamble, 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.

    2. Section 52.770 is amended by adding paragraph (c)(118) to read 
as follows:


Sec. 52.770  Identification of Plan.

* * * * *
    (c) * * *
    (118) On July 12, 1995, Indiana submitted as a revision to the 
State Implementation Plan construction permits CP 019-2110, CP 019-
2696, and CP 019-4362, issued under Indiana rule 326 IAC 2-1. The 
permits establish volatile organic compound control requirements for 
Rhodes Incorporated's heatset web offset printing presses.
    (i) Incorporation by reference. Construction Permit CP 019-2110, 
issued and effective October 15, 1991; Construction Permit CP 019-2696, 
issued and effective December 18, 1992; Construction permit CP 019-
4362, issued and effective April 21, 1995.
    3. Section 52.777 is amended by adding paragraph (m) to read as 
follows:


Sec. 52.777  Control Strategy: Photochemical Oxidants (hydrocarbon).

* * * * *
    (m) On July 12, 1995, Indiana submitted a 15 percent rate-of-
progress plan for the Clark and Floyd Counties portion of the 
Louisville ozone nonattainment area. This plan satisfies Clark and 
Floyd Counties' requirements under section 182(b) of the Clean Air Act, 
as amended in 1990.
    4. Section 52.777 is amended by adding paragraph (n) to read as 
follows:


Sec. 52.777  Control Strategy: Photochemical Oxidants (hydrocarbon).

* * * * *
    (n) On July 12, 1995, Indiana submitted corrections to the 1990 
base year emissions inventory for Clark and Floyd Counties. The July 
12, 1995, corrections are recognized revisions to Indiana's emissions 
inventory.
    5. Section 52.777 is amended by adding paragraph (o) to read as 
follows:


Sec. 52.777  Control Strategy: Photochemical Oxidants (hydrocarbon).

* * * * *
    (o) On July 12, 1995, Indiana submitted as a revision to the 
Indiana State Implementation Plan a ridesharing transportation control 
measure which affects commuters in Clark and Floyd Counties.

[FR Doc. 97-11908 Filed 5-6-97; 8:45 am]
BILLING CODE 6560-50-P