[Federal Register Volume 80, Number 2 (Monday, January 5, 2015)]
[Proposed Rules]
[Pages 201-204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30832]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2013-0780; FRL-9921-27-Region-5]


Approval and Promulgation of Air Quality Implementation Plans; 
Indiana; Minor NSR for Title V and FESOP Sources

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing 
approval of revisions to Indiana's minor new source review construction 
permit rule. The rule applies to construction of new units or 
modifications of existing units at sources subject to title V and 
Federal enforceable state operating permit requirements. If approved, 
this rule will replace the previous state implementation plan (SIP) 
minor source construction permit rule for Indiana.

DATES: Comments must be received on or before February 4, 2015.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2013-0780, by one of the following methods:
    1. www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. Email: [email protected].
    3. Fax: (312) 385-5501.
    4. Mail: Genevieve Damico, Chief, Air Permits Section, Air Programs 
Branch (AR-18J), U.S. Environmental Protection Agency, 77 West Jackson 
Boulevard, Chicago, Illinois 60604.
    5. Hand Delivery: Genevieve Damico, Chief, Air Permits Section, Air 
Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 West 
Jackson Boulevard, Chicago, Illinois 60604.

[[Page 202]]

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-
2013-0780. EPA's policy is that all comments 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 www.regulations.gov or email. The 
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 email comment 
directly to EPA without going through www.regulations.gov your email 
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. For additional 
instructions on submitting comments, go to Section I of the 
SUPPLEMENTARY INFORMATION section of this document.
    Docket: All documents in the docket are listed in the 
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 p.m., Monday through Friday, excluding Federal holidays. 
We recommend that you telephone Sam Portanova, Environmental Engineer, 
at (312) 886-3189 before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Sam Portanova, Environmental Engineer, 
Air Permits Section, Air Programs Branch (AR-18J), Environmental 
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, 
Illinois 60604, (312) 886-3189, [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 should I consider as I prepare my comments for EPA?
II. What is being addressed in this document?
III. What are the changes that EPA is approving?
IV. What action is EPA taking?
V. Statutory and Executive Order Reviews.

I. What should I consider as I prepare my comments for EPA?

    When submitting comments, remember to:
    1. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date and page number).
    2. Follow directions--EPA may ask you to respond to specific 
questions or organize comments by referencing a Code of Federal 
Regulations (CFR) part or section number.
    3. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    4. Describe any assumptions and provide any technical information 
and/or data that you used.
    5. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    6. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    7. Explain your views as clearly as possible, avoiding the use of 
profanity or personal threats.
    8. Make sure to submit your comments by the comment period deadline 
identified.

II. What is being addressed in this document?

    On November 7, 2013, the Indiana Department of Environmental 
Management (IDEM) submitted a SIP revision request to EPA for minor new 
source review (NSR) construction permit rules. EPA last approved 
Indiana's minor construction permit rules (326 IAC 2-1) on October 7, 
1994 (59 FR 51108). In this action, EPA is approving amendments to 326 
IAC 2-7-10.5(a), (c) through (j), (l), and (m), and to 326 IAC 2-8-11.1 
as revisions to Indiana's SIP. These provisions do not apply to 
permitting actions that trigger major prevention of significant 
deterioration (PSD) or nonattainment NSR requirements. 326 IAC 2-7-10.5 
and 326 IAC 2-8-11.1 replace 326 IAC 2-1, which has been repealed in 
the state rules, as the minor NSR construction permit rules in the 
Indiana SIP.

III. What are the changes that EPA is approving?

    326 IAC 2-7-10.5 is Indiana's minor source construction permit rule 
for sources that are subject to the title V operating permit program. 
326 IAC 2-8-11.1 is Indiana's minor source construction permit rule for 
sources that are subject to the Federally enforceable state operating 
permit (FESOP) program. The requirements and emission thresholds under 
these two rules are essentially the same and we are providing one 
summary below that covers both rules. These rules apply to permitting 
actions that are not subject to PSD or nonattainment NSR. Any permit 
modification that exceeds the PSD or nonattainment NSR thresholds in 
326 IAC 2-2 and 326 IAC 2-3 continues to be subject to the requirements 
of those rules.
    Pursuant to 326 IAC 2-7-10.5(e) or 326 IAC 2-8-11.1(d), a 
permitting action is subject to the minor modification requirements of 
this rule if it has a potential to emit (PTE) greater than or equal to 
the following: 5 tons per year (tpy) of particulate matter (PM), PM 
less than 10 microns in size (PM10), PM less than 2.5 
microns in size (PM2.5), hydrogen sulfide (H2S), 
total reduced sulfur (TRS), reduced sulfur compounds, or fluorides; 10 
tpy of sulfur dioxide (SO2), nitrogen oxide 
(NOX), or volatile organic compounds (VOC); 25 tpy of carbon 
monoxide (CO); or 0.2 tpy of lead. For VOC emissions, the minor 
modification requirements apply if the PTE is greater than or equal to 
5 tpy for modifications that require the use of air pollution control 
equipment to comply with the provisions of 326 IAC 8.
    For permitting actions that meet the criteria for minor 
modification under this rule, the source is required to submit a permit 
application to IDEM pursuant to 326 IAC 2-7-10.5(d) or 326 IAC 2-8-11.1 
(c). Pursuant to 326 IAC 2-7-10.5(f) or 326 IAC 2-8-11.1(e), within 45 
days of receipt of the application, IDEM shall approve the request, 
deny the request, determine that the request would cause or

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contribute to a violation of a national ambient air quality standard 
(NAAQS) or a PSD increment standard, or determine that the request is 
subject to the significant modification provisions of this rule.
    Pursuant to 326 IAC 2-7-10.5(g) or 326 IAC 2-8-11.1(f)(1), a 
permitting actions is subject to the significant modification 
requirements if it has a PTE greater than or equal to 100 tpy of CO or 
25 tpy of PM, PM10, PM2.5, SO2, 
NOX, VOC, H2S, TRS, reduced sulfur compounds, or 
fluorides. For lead, the significant modification requirements apply 
for any modification with a PTE greater than or equal to 1 tpy. If the 
entire source has a lead PTE of greater than or equal to 5 tpy, the 
significant modification requirements apply for a modification with a 
lead PTE greater than 0.6 tpy.
    In addition to the requirements for a minor modification, 326 IAC 
2-7-10.5(h) and 326 IAC 2-8-11.1(f)(2) require a permitting action that 
meets the criteria for a significant modification under this rule to go 
through public notice prior to permit issuance pursuant to 326 IAC 2-
1.1-6 (which EPA approved into Indiana's SIP on March 3, 2003 (68 FR 
9892)). Public notice requirements for significant permit revisions 
under 326 IAC 2-8-11.1 are conducted pursuant to 326 IAC 2-8-13 (which 
EPA approved into Indiana's SIP on August 18, 1995 (60 FR 43008)). This 
satisfies the public notice requirements for minor construction permits 
in 40 CFR 51.161.
    The significant modification emission thresholds for pollutants 
other than CO are the same as those contained in Indiana's existing 
SIP-approved minor NSR rules. The 100 tpy CO emission threshold for 
significant modifications, however, is less stringent than the 25 tpy 
applicability threshold in the existing SIP-approved Indiana minor NSR 
rules. IDEM included an analysis in the November 7, 2013, SIP submittal 
to EPA demonstrating that the 100 tpy threshold is protective of the CO 
NAAQS. In the analysis, IDEM reviewed CO point source emissions and 
ambient air monitoring data from 2000 through 2012. IDEM selected 
recent PSD sources for modeling at 100 tpy with the modeled results 
compared to the 1-hour and 8-hour CO significant impact levels (SILs). 
The modeling results showed no exceedances of either the 1-hour or 8-
hour CO SILs. Existing CO monitors in Indiana show ambient values well 
below the NAAQS. As a result, IDEM has shown that ambient air quality 
will remain well below the NAAQS, even with the addition of sources 
that emit CO at 100 tpy. Indiana's analysis of the CO threshold 
satisfies 40 CFR 51.160(e), which requires states to identify sources 
that will be subject to minor construction permit provisions and 
discuss the basis for determining which sources will be subject to 
review. EPA proposes approval of the minor and significant modification 
thresholds in 326 IAC 2-7-10.5 and 326 IAC 2-8-11.1.
    326 IAC 2-7-10.5(c) and 326 IAC 2-8-11.1(b) allow sources to repair 
or replace an emission unit or air pollution control equipment without 
prior approval. To qualify for this provision, a modification must meet 
the following criteria: (1) The PTE of each regulated pollutant after 
the modification is less than or equal to the PTE of the unit that was 
repaired or replaced; (2) the modification is not major under 326 IAC 
2-2, 326 IAC 2-3, or 326 IAC 2-4.1; \1\ and (3) the modification 
returns the unit to normal operation after an upset, malfunction, or 
mechanical failure or prevents impeding and imminent failure of the 
unit. Item 2 above means any action that would trigger major PSD, 
nonattainment NSR, or hazardous pollutant requirements under Section 
112(g) of the Clean Air Act (CAA) is not eligible for this provision. 
Since sources must meet all three of the criteria listed above in order 
to qualify for the repair or replacement provision, EPA believes that 
these criteria sufficiently narrow the universe of modifications that 
are eligible. EPA proposes approval of 326 IAC 2-7-10.5(c) and 326 IAC 
2-8-11.1(b).
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    \1\ 326 IAC 2-4.1 is IDEM's regulation implementing the 
requirements of Section 112(g) of the Clean Air Act for sources with 
hazardous air pollutant (HAP) emissions above 10 tpy for a single 
HAP or 25 tpy for a combination of HAPs.
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    326 IAC 2-7-10.5(b) and (k) address provisions for incorporating 
terms from Federal consent decrees and Federal district court orders 
into construction permits. EPA previously approved these portions of 
326 IAC 2-7-10.5 into Indiana's SIP on January 17, 2014 (79 FR 3120).

IV. What action is EPA taking?

    EPA is proposing to approve Indiana's minor source construction 
permit rule in 326 IAC 2-7-10.5(a), (c) through (j), (l), and (m), and 
326 IAC 2-8-11.1. EPA has determined that the emission thresholds and 
permitting requirements discussed above satisfy the requirements of 40 
CFR 51.160 and 51.161. EPA is not proposing action on 326 IAC 2-7-
10.5(b) and (k) because these portions of the state's rule have already 
been approved into Indiana's SIP.

V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     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);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as

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specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

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: December 22, 2014.
Susan Hedman,
Regional Administrator, Region 5.
[FR Doc. 2014-30832 Filed 1-2-15; 8:45 am]
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