[Federal Register Volume 72, Number 177 (Thursday, September 13, 2007)]
[Rules and Regulations]
[Pages 52286-52289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17881]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2007-0293; FRL-8464-4]


Approval and Promulgation of Air Quality Implementation Plans; 
Indiana; VOC Emissions From Fuel Grade Ethanol Production Operations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is approving a March 30, 2007, request from the Indiana 
Department of Environmental Management (IDEM) to revise the Indiana 
State Implementation Plan (SIP) by adding a volatile organic compound 
(VOC) rule for fuel grade ethanol production at dry mills. This rule 
revision creates an industry-specific Best Available Control Technology 
(BACT) standard for new fuel grade ethanol production dry mills that 
replaces the otherwise required case-by-case SIP BACT determination for 
new facilities with the potential to emit 25 tons or more of VOC per 
year. The benefit of this rule is that establishing specific standards 
in place of a case-by-case analysis improves the clarity, 
predictability, and timeliness of certain State permit decisions.

DATES: This direct final rule will be effective November 13, 2007, 
unless EPA receives adverse comments by October 15, 2007. If adverse 
comments are received, EPA will publish a timely withdrawal of the 
direct final rule in the Federal Register informing the public that the 
rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2007-0293, by one of the following methods:
    1. http://www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. E-mail: [email protected].
    3. Fax: (312) 886-5824.
    4. Mail: John M. Mooney, Chief, Criteria Pollutant Section, Air 
Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 West 
Jackson Boulevard, Chicago, Illinois 60604.
    5. Hand Delivery: John M. Mooney, Chief, Criteria Pollutant 
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection 
Agency, 77 West Jackson Boulevard, Chicago, Illinois 60604. Such 
deliveries are only accepted during the Regional Office normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information. The Regional Office official hours of business are 
Monday through Friday, 8:30 a.m. to 4:30 p.m. excluding Federal 
holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2007-0293. EPA's policy is that all comments

[[Page 52287]]

received will be included in the public docket without change and may 
be made available online at www.regulations.gov, including any personal 
information provided, unless the comment includes information claimed 
to be Confidential Business Information (CBI) or other information 
whose disclosure is restricted by statute. Do not submit information 
that you consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site 
is an ``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly to EPA without 
going through http://www.regulations.gov your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in 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 a.m., Monday through Friday, excluding legal 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. Background
    A. When did the State submit the requested rule revision to EPA?
    B. Did Indiana hold public hearings for this rule revision?
II. What are the revisions that the State requests be incorporated 
into the SIP?
III. What action is EPA taking?
IV. Statutory and Executive Order Reviews

I. Background

A. When did the State submit the requested rule revision to EPA?

    IDEM submitted the requested rule revision on March 30, 2007.

B. Did Indiana hold public hearings for this rule revision?

    Indiana held public hearings for the requested rule revision on 
August 2, 2006, and December 6, 2006.

II. What are the revisions that the State requests be incorporated into 
the SIP?

    IDEM is requesting revisions to the SIP in two areas: (1) To amend 
326 IAC 8-5-1, Applicability of Rule, to identify a newly-affected 
industry, and (2) to add 326 IAC 8-5-6, Fuel Grade Ethanol Production 
at Dry Mills, to create an industry-specific BACT standard for new fuel 
grade ethanol production dry mills that have no wet milling operations. 
This standard would replace the case-by-case BACT determination 
currently required under 326 IAC 8-1-6 for facilities with the 
potential to emit 25 tons or more of VOC per year.
    326 IAC 8-5-1 defines the applicability of the rule. The rule now 
covers fuel grade ethanol production discussed in Section 6 of 326 IAC 
8-5-6.
    Indiana's 326 IAC 8-1-6 is a state-wide BACT requirement that 
applies to sources that do not trigger Nonattainment New Source Review 
(NNSR) or Prevention of Significant Deterioration (PSD) requirements, 
but that emit 25 tons or more of VOC per year. Establishing the State 
BACT limits is a case-by-case determination based on the maximum 
reduction that is technically feasible, while taking into account 
energy, environmental and economic impact.
    The changes to 326 IAC 8-5-6 apply to all fuel grade ethanol 
production plants constructed or modified after April 1, 2007 that are: 
(1) Dry mills and have no wet milling operations, (2) use fermentation, 
distillation, and dehydration to produce ethanol and dried distillers 
grain and solubles (DDGS), and (3) have combined potential VOC 
emissions of 22.7 megagrams (twenty five tons) or more per year from 
fermentation processes, DDGS dryer or dryers, and ethanol load-out 
operations.
    The rule lists control measures consistent with those that Indiana 
would require under its case-by-case BACT determination. The rule 
requires the installation of a thermal oxidizer, wet scrubber, or 
enclosed flare with an overall control efficiency of not less than 98 
percent, and further requires initial compliance to be achieved within 
60 days of achieving maximum production levels, but no later than 180 
days after startup. The rule also contains certain requirements related 
to the operation, maintenance, testing, and record-keeping of the 
operation of required control measures. 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.

III. What action is EPA taking?

    We are approving revisions to the Indiana SIP in two areas: (1) To 
amend 326 IAC 8-5-1, Applicability of Rule; and (2) to add 326 IAC 8-5-
6, Fuel Grade Ethanol Facilities. It should be noted that approval of 
this rule does not in any way affect the applicability of NNSR and/or 
PSD to subject sources.
    We are publishing this action without prior proposal because we 
view this as a noncontroversial amendment and anticipate no adverse 
comments. However, in the proposed rules section of this Federal 
Register publication, we are publishing a separate document that will 
serve as the proposal to approve the state plan if relevant adverse 
written comments are filed. This rule will be effective November 13, 
2007 without further notice unless we receive relevant adverse written 
comments by October 15, 2007. If we receive such comments, we will 
withdraw this action before the effective date by publishing a 
subsequent document that will withdraw the final action. All public 
comments received will then be addressed in a subsequent final rule 
based on the proposed action. The EPA will not institute a second 
comment period. Any parties interested in commenting on this action 
should do so at this time. If we do not receive any comments, this 
action will be effective November 13, 2007.

[[Page 52288]]

IV. 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 That Significantly Affect Energy Supply, 
Distribution, or Use

    Because it is not a ``significant regulatory action'' under 
Executive Order 12866 or a ``significant energy 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 (59 
FR 22951, 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 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 approves a state rule implementing a 
Federal Standard.

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 November 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, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: August 24, 2007.
Richard C. Karl,
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)(182) to read as 
follows:


Sec.  52.770  Identification of plan.

* * * * *
    (c) * * *
    (182) On March 30, 2007, Indiana submitted final adopted revisions, 
which amend 326 IAC 8-5-1, concerning rule applicability, and add 326 
IAC 8-5-6, fuel grade ethanol production at dry mills, to its VOC rules 
as a requested revision to the Indiana state implementation plan. EPA 
is approving these revisions, authorizing Indiana to establish an 
industry-specific State BACT standard for fuel grade ethanol production 
at dry mill facilities that emit 25 tons or more of VOC per year.
    (i) Incorporation by reference.
    (A) Indiana Administrative Code Title 326: Air Pollution Control 
Board, Article 8: Volatile Organic Compound Rules, Rule 5: 
Miscellaneous

[[Page 52289]]

Operations, Section 1: Applicability of Rule. Indiana Administrative 
Code Title 326: Air Pollution Control Board, Article 8: Volatile 
Organic Compound Rules, Rule 5: Miscellaneous Operations, Section 6: 
Fuel Grade Ethanol Production at Dry Mills. Approved by the Attorney 
General February 16, 2007. Approved by the Governor February 16, 2007. 
Filed with the Publisher February 20, 2007. Published on the Indiana 
Register Web site March 21, 2007, Document Identification Number (DIN): 
20070321-IR-326050197FRA. Effective March 22, 2007.

[FR Doc. E7-17881 Filed 9-12-07; 8:45 am]
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