[Federal Register Volume 72, Number 113 (Wednesday, June 13, 2007)]
[Rules and Regulations]
[Pages 32531-32533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11290]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2006-0716; FRL-8319-8]


Approval and Promulgation of Air Quality Implementation Plans; 
Indiana; Exemption from VOC Requirements for Sources Subject to the 
National Emission Standards for Hazardous Air Pollutants for Boat 
Manufacturing or Reinforced Plastics Composites Manufacturing

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The EPA is approving a revision to the Indiana Department of 
Environmental Management's (IDEM) volatile organic compound (VOC) rules 
for new facilities into the Indiana State Implementation Plan (SIP). 
This revised rule, submitted by IDEM on July 17, 2006, exempts 
facilities subject to the boat manufacturing and reinforced plastics 
composites production national emission standards for hazardous air 
pollutants (NESHAPS) from the requirement to do a case-by-case State 
Best Available Control Technology (BACT) analysis under the Indiana 
SIP, provided that they comply with the applicable NESHAPS. This rule 
revision is approvable because the only hazardous air pollutant covered 
by these NESHAPS rules is styrene, a toxic substance which is also 
classified as a VOC. Therefore, the VOC control requirements in these 
rules are always applicable. In addition, the provisions in these rules 
are enforceable and result in a clearly defined level of VOC reductions 
dependent upon the specific type of operation. These rules were 
proposed for approval on January 25, 2007, and comments were received 
supporting EPA's approval.

DATES: This final rule is effective on July 13, 2007.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-R05-OAR-2006-0716. All documents in the docket are listed on 
the www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, i.e., Confidential Business 
Information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material, such as copyrighted material, is 
not placed on the Internet and will be publicly available only in hard 
copy form. Publicly available docket materials are available either 
electronically through

[[Page 32532]]

www.regulations.gov or in hard copy at the Environmental Protection 
Agency, Region 5, Air and Radiation Division, 77 West Jackson 
Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 
a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays. 
We recommend that you telephone Steven Rosenthal, Environmental 
Engineer, at (312) 886-6052 before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Steven Rosenthal, Environmental 
Engineer, Criteria Pollutant Section, Air Programs Branch (AR-18J), 
Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, 
Chicago, Illinois 60604, (312) 886-6052, [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. What Public Comments Were Received on the Proposed Approval and 
What is EPA's Response?
II. What Action is EPA Taking and What is the Reason for this 
Action?
III. Statutory and Executive Order Reviews

I. What Public Comments Were Received on the Proposed Approval and What 
Is EPA's Response?

    Comment: EPA received one comment on its January 25, 2007 proposal. 
The American Composites Manufacturers Association (ACMA) stated that it 
agreed with EPA that the VOC emissions from these facilities are 
subject under the NESHAPS to enforceable emission reductions, and added 
that an additional requirement to comply with the SIP VOC rules would 
place a redundant and unnecessary administrative burden on both the 
facilities and Indiana. ACMA referenced a study conducted for it in 
2003 that concluded that a facility that meets the NESHAPS requirements 
would also comply with VOC SIP requirements, including lowest 
achievable emission rate (LAER), BACT and reasonably available control 
technology (RACT). ACMA strongly supports EPA's approval of this 
proposed amendment to the Indiana SIP.
    EPA response: Although ACMA stated its strong support for EPA 
approval of this exemption for new sources subject to the boat 
manufacturing and reinforced plastic composites production NESHAPS, it 
claimed that a facility meeting the NESHAPS requirements would also 
meet LAER, BACT and RACT. LAER is the new source control requirement 
for nonattainment areas, as required by 326 IAC 2-3 (Nonattainment New 
Source Review). Best available control technology, in the context of 
ACMA's comment, appears to refer to the new source control requirement 
for attainment areas, as required by 326 IAC 2-2 (Prevention of 
Significant Deterioration). (Please note that this is not the same BACT 
analysis performed by the State under SIP rule 326 IAC 8-1-6). RACT is 
the VOC control SIP requirement for existing sources in ozone 
nonattainment areas.
    In contrast to NESHAPS requirements, LAER and BACT are the result 
of case-by-case analyses which, as new and improved control 
technologies are introduced, tend to become more stringent over time. 
EPA has established a presumptive norm for RACT for a number of source 
categories, not including boat manufacturing and reinforced plastic 
composites production. For these other categories, RACT is a case-by-
case analysis based upon the technical and economic feasibility of 
control, in contrast to the subject NESHAPS, which were based upon a 
set of industry average parameters.

II. What Action Is EPA Taking and What Is the Reason for This Action?

    EPA is approving Indiana's revision to its SIP consisting of an 
amendment to 326 IAC 8-1-6, new facilities; general reduction 
requirements. This rule exempts boat manufacturers subject to 326 IAC 
20-48, NESHAPS for boat manufacturing, or reinforced plastics 
composites manufacturers subject to 326 IAC 20-56, NESHAPS for 
reinforced plastics composites production facilities, from the 
requirement to do a case-by-case State BACT analysis, for the purposes 
of 326 IAC 8-1-6, provided they comply with the applicable NESHAPS. 
Previously, new boat manufacturing or reinforced plastics composites 
manufacturing facilities with potential emissions of 25 tons or more 
per year of VOC were required to reduce VOC emissions by using BACT 
under 326 IAC 8-1-6. In this case, establishing specific standards in 
place of a case-by-case analysis improves the clarity, predictability, 
and timeliness of permit decisions that are currently subject to 326 
IAC 8-1-6.
    It should be noted, however, that approval of this exemption to 326 
IAC 8-1-6 does not address (or take action on) whether the boat 
manufacturing or reinforced plastics composites production NESHAPS 
represent RACT, BACT (under PSD) or LAER (under Nonattainment New 
Source Review).

III. Statutory and Executive Order Reviews

Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and, therefore, is 
not subject to review by the Office of Management and Budget.

Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    Because it is not a ``significant regulatory action'' under 
Executive Order 12866 or a ``significant regulatory action,'' this 
action is also not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355, May 22, 2001).

Regulatory Flexibility Act

    This action merely approves state law as meeting Federal 
requirements and imposes no additional requirements beyond those 
imposed by state law. Accordingly, the Administrator certifies that 
this rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.).

Unfunded Mandates Reform Act

    Because this rule approves pre-existing requirements under state 
law and does not impose any additional enforceable duty beyond that 
required by state law, it does not contain any unfunded mandate or 
significantly or uniquely affect small governments, as described in the 
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4).

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    This rule also does not have tribal implications because it will 
not have a substantial direct effect on one or more Indian tribes, on 
the relationship between the Federal Government and Indian tribes, or 
on the distribution of power and responsibilities between the Federal 
Government and Indian tribes, as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000).

Executive Order 13132: Federalism

    This action also does not have Federalism implications because it 
does not have substantial direct effects on the states, on the 
relationship between the national government and the states, or

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on the distribution of power and responsibilities among the various 
levels of government, as specified in Executive Order 13132 (64 FR 
43255, August 10, 1999). This action merely approves a state rule 
implementing a Federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the Clean 
Air Act.

Executive Order 13045: Protection of Children From Environmental Health 
and Safety Risks

    This rule also is not subject to Executive Order 13045 ``Protection 
of Children from Environmental Health Risks and Safety Risks'' (62 FR 
19885, April 23, 1997), because it is not economically significant.

National Technology Transfer Advancement Act

    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
state to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply.

Paperwork Reduction Act

    This rule does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.).

Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit 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 United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under Section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by August 13, 2007. 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, Intergovernmental 
relations, Incorporation by reference, Nitrogen dioxide, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Dated: May 18, 2007.
Gary Gulezian,
Acting Regional Administrator, Region 5.

0
For the reasons stated in the preamble, part 52, chapter I, of title 40 
of the Code of Federal Regulations is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart P--Indiana

0
2. Section 52.770 is amended by adding paragraph (c) (179) to read as 
follows:


Sec.  52.770  Identification of plan.

* * * * *
    (c) * * *
    (179) On July 17, 2006, Indiana submitted final adopted revisions, 
which add 326 IAC 8-1-6 (3)(B) and (C), to its VOC rules for new 
facilities in 326 IAC 8-1-6 as a requested revision to the Indiana 
state implementation plan. EPA is approving these revisions, which 
exempt boat manufacturers subject to NESHAPS for boat manufacturing, or 
reinforced plastics composites manufacturers subject to NESHAPS for 
reinforced composites production facilities, from the requirement to do 
a best available control technology analysis provided they comply with 
the applicable NESHAPS.
    (i) Incorporation by reference.
    (A) Indiana Administrative Code Title 326: Air Pollution Control 
Board, Article 8: Volatile Organic Compound Rules, Rule 1: General 
Provisions, Section 6: New facilities; general reduction requirements. 
Final adopted by the Air Pollution Control Board on March 1, 2006. 
Filed with the Secretary of State on May 25, 2006, and became effective 
June 23, 2006. Published in the Indiana Register on July 1, 2006 (29 IR 
3350).

[FR Doc. E7-11290 Filed 6-12-07; 8:45 am]
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