[Federal Register Volume 83, Number 241 (Monday, December 17, 2018)]
[Rules and Regulations]
[Pages 64472-64478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26920]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2017-0700; FRL-9987-75-Region 5]


Air Plan Approval; Indiana; Cross-State Air Pollution Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is approving a state 
submittal concerning the Cross-State Air Pollution Rule (CSAPR) that 
was submitted by Indiana on November 27, 2017 as a revision to the 
Indiana state implementation plan (SIP). Under CSAPR, large electricity 
generating units (EGUs) in Indiana are currently subject to Federal 
implementation plans (FIPs) requiring the units to participate in 
CSAPR's Federal trading program for annual emissions of nitrogen oxides 
(NOX), one of CSAPR's two Federal trading programs for 
annual emissions of sulfur dioxide (SO2), and one of CSAPR's 
two Federal trading programs for ozone season emissions of 
NOX. This action approves the State's regulations requiring 
large Indiana EGUs to participate in new CSAPR state trading programs 
for annual NOX, annual SO2, and ozone season 
NOX emissions integrated with the CSAPR Federal trading 
programs, replacing the corresponding FIP requirements. EPA is 
approving the State's submission because it meets the requirements of 
the Clean Air Act (CAA or Act) and EPA's regulations for approval of a 
CSAPR full SIP revision replacing the requirements of a CSAPR FIP. 
Under the CSAPR regulations, approval of the SIP revision automatically 
eliminates Indiana's units' requirements under the corresponding CSAPR 
FIPs addressing Indiana's interstate transport (or ``good neighbor'') 
obligations with respect to the 1997 fine particulate matter 
(PM2.5) national ambient air quality standard (NAAQS), the 
2006 PM2.5 NAAQS, the 1997 ozone NAAQS, and the 2008 ozone 
NAAQS. Like the CSAPR FIP requirements that are being replaced, 
approval of the SIP revision fully satisfies Indiana's good neighbor 
obligations with respect to attainment and maintenance of the 1997 
PM2.5 NAAQS, the 2006 PM2.5 NAAQS, and the 1997 
ozone NAAQS and partially satisfies Indiana's good neighbor obligation 
with respect to attainment and maintenance of the 2008 ozone NAAQS. EPA 
proposed approval of the State's submission on August 14, 2018.

DATES: This final rule is effective on December 17, 2018.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-R05-OAR-2017-0700. All documents in the docket are listed on 
the www.regulations.gov website. 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 
through www.regulations.gov or 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 Sarah Arra, Environmental Scientist, at (312) 886-
9401 before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Sarah Arra, Environmental Scientist, 
Attainment Planning and Maintenance Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 886-9401, [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. Overview
II. Background on CSAPR and CSAPR-Related SIP Revisions
III. Indiana's SIP Submittal and EPA's Analysis
IV. Final Action
V. Incorporation by Reference
VI. Statutory and Executive Order Reviews

I. Overview

    EPA is approving a November 27, 2017 submittal as a revision to the 
Indiana SIP to include CSAPR state trading programs for annual 
emissions of NOX and SO2 and ozone season 
emissions of NOX. Large EGUs in Indiana are subject to CSAPR 
FIPs that require the units to participate in the Federal CSAPR 
NOX Annual Trading Program, the Federal CSAPR SO2 
Group 1 Trading Program, and the Federal CSAPR NOX Ozone 
Season Group 2 Trading Program. CSAPR provides a process for the 
submission and approval of SIP revisions to replace the requirements of 
CSAPR FIPs with SIP requirements under which a state's units 
participate in CSAPR state trading programs that are integrated with 
and, with certain permissible exceptions, substantively identical to 
the CSAPR Federal trading programs.
    The submission incorporates into Indiana's SIP state trading 
program regulations for annual NOX, annual SO2, 
and ozone season NOX emissions that replace EPA's Federal 
trading program regulations for these emissions from

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Indiana units. EPA is approving the submission as a SIP revision 
because it meets the requirements of the CAA and EPA's regulations for 
approval of a CSAPR full SIP revision replacing a Federal trading 
program with a state trading program that is integrated with and 
substantively identical to the Federal trading program. Under the CSAPR 
regulations, approval of the submission as a SIP revision automatically 
eliminates the obligations of large EGUs in Indiana to participate in 
CSAPR's Federal trading programs for annual NOX, annual 
SO2, and ozone season NOX emissions under the 
corresponding CSAPR FIPs. EPA finds that approval of the SIP revision 
fully satisfies Indiana's obligations pursuant to the ``good neighbor'' 
provisions of CAA section 110(a)(2)(D)(i)(I) to prohibit emissions 
which will significantly contribute to nonattainment or interfere with 
maintenance of the 1997 PM2.5 NAAQS, the 2006 
PM2.5 NAAQS, and the 1997 ozone NAAQS in any other state and 
partially satisfies Indiana's corresponding obligation with respect to 
the 2008 ozone NAAQS.
    Approval of the submission as a SIP revision also removes from 
Indiana's SIP most of the State's rules implementing the discontinued 
Clean Air Interstate Rule (CAIR) trading programs, including all of the 
State's rules for the annual NOX and annual SO2 
trading programs and portions of the State's rule for the ozone season 
NOX trading program. The discontinued CAIR state trading 
programs established under these rules have been replaced by CSAPR 
trading programs for the affected EGUs.

II. Background on CSAPR and CSAPR-Related SIP Revisions

    EPA issued CSAPR \1\ in 2011 and the CSAPR Update \2\ in 2016 to 
address the requirements of CAA section 110(a)(2)(D)(i)(I) concerning 
interstate transport of air pollution. As amended (including by the 
CSAPR Update), CSAPR requires 27 eastern states to limit their 
statewide emissions of SO2 and/or NOX in order to 
mitigate transported air pollution unlawfully impacting other states' 
ability to attain or maintain four NAAQS: The 1997 annual 
PM2.5 NAAQS, the 2006 24-hour PM2.5 NAAQS, the 
1997 ozone NAAQS, and the 2008 ozone NAAQS. The CSAPR emissions 
limitations are defined in terms of maximum statewide ``budgets'' for 
emissions of annual SO2, annual NOX, and/or ozone 
season NOX by each covered state's large EGUs. The CSAPR 
state budgets are implemented in two phases of generally increasing 
stringency: The Phase 1 budgets apply to emissions in 2015 and 2016; 
and the Phase 2 and CSAPR Update budgets apply to emissions in 2017 and 
later years. As a mechanism for achieving compliance with the emissions 
limitations, CSAPR establishes five Federal emissions trading programs: 
A program for annual NOX emissions; two geographically 
separate programs for annual SO2 emissions; and two 
geographically separate programs for ozone season NOX 
emissions. CSAPR also establishes FIP requirements applicable to the 
large EGUs in each covered state.\3\ Currently, the CSAPR FIP 
provisions require each state's units to participate in up to three of 
the five CSAPR trading programs.
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    \1\ Federal Implementation Plans; Interstate Transport of Fine 
Particulate Matter and Ozone and Correction of SIP Approvals, 76 FR 
48208 (August 8, 2011) (codified as amended at 40 CFR 52.38 and 
52.39 and subparts AAAAA through EEEEE of 40 CFR part 97).
    \2\ Cross-State Air Pollution Rule Update for the 2008 Ozone 
NAAQS, 81 FR 74504 (October 26, 2016).
    \3\ States are required to submit good neighbor SIPs three years 
after a NAAQS is promulgated. CAA section 110(a)(1) and (2). Where 
EPA finds that a state fails to submit a required SIP or disapproves 
a SIP, EPA is obligated to promulgate a FIP addressing the 
deficiency. CAA section 110(c).
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    CSAPR includes provisions under which states may submit and EPA 
will approve SIP revisions to modify or replace the CSAPR FIP 
requirements while allowing states to continue to meet their transport-
related obligations using either CSAPR's Federal emissions trading 
programs or state emissions trading programs integrated with the 
Federal programs, provided that the SIP revisions meet all relevant 
criteria.\4\ Through such a SIP revision, a state may replace EPA's 
default provisions for allocating emission allowances among the state's 
units, employing any state-selected methodology to allocate or auction 
the allowances, subject to timing conditions and limits on overall 
allowance quantities. In the case of CSAPR's Federal trading programs 
for ozone season NOX emissions (or an integrated state 
trading program), a state may also expand trading program applicability 
to include certain smaller EGUs.\5\ If a state wants to replace the 
CSAPR FIP requirements with SIP requirements under which the state's 
units participate in a state trading program that is integrated with 
and identical to the Federal trading program even as to the allocation 
and applicability provisions, the state may submit a SIP revision for 
that purpose as well. However, no emissions budget increases or other 
substantive changes to the trading program provisions are allowed. A 
state whose units are subject to multiple CSAPR Federal trading 
programs may submit SIP revisions to modify or replace the FIP 
requirements with respect to some or all of those trading programs.
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    \4\ See 40 CFR 52.38, 52.39. States also retain the ability to 
submit SIP revisions to meet their transport-related obligations 
using mechanisms other than the CSAPR federal trading programs or 
integrated state trading programs.
    \5\ States covered by both the CSAPR Update and the 
NOX SIP Call have the additional option to expand 
applicability under the CSAPR NOX Ozone Season Group 2 
Trading Program to include non-EGUs that would have participated in 
the NOX Budget Trading Program.
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    States can submit two basic forms of CSAPR-related SIP revisions 
effective for emissions control periods in 2017 or later years.\6\ 
Specific conditions for approval of each form of SIP revision are set 
forth in the CSAPR regulations. Under the first alternative--an 
``abbreviated'' SIP revision--a state may submit a SIP revision that 
upon approval replaces the default allowance allocation and/or 
applicability provisions of a CSAPR Federal trading program for the 
state.\7\ Approval of an abbreviated SIP revision leaves the 
corresponding CSAPR FIP and all other provisions of the relevant 
Federal trading program in place for the state's units.
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    \6\ CSAPR also provides for a third, more streamlined form of 
SIP revision that is effective only for control periods in 2016 (or 
2018 for CSAPR NOX Ozone Season Group 2 units) and is not 
relevant here. See Sec.  52.38(a)(3), (b)(3), (b)(7); Sec.  
52.39(d), (g).
    \7\ 40 CFR 52.38(a)(4), (b)(4), (b)(8); 52.39(e), (h).
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    Under the second alternative--a ``full'' SIP revision--a state may 
submit a SIP revision that upon approval replaces a CSAPR Federal 
trading program for the state with a state trading program integrated 
with the Federal trading program, so long as the state trading program 
is substantively identical to the Federal trading program or does not 
substantively differ from the Federal trading program except as 
discussed above with regard to the allowance allocation and/or 
applicability provisions.\8\ For purposes of a full SIP revision, a 
state may either adopt state rules with complete trading program 
language, incorporate the Federal trading program language into its 
state rules by reference (with appropriate conforming changes), or 
employ a combination of these approaches.
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    \8\ 40 CFR 52.38(a)(5), (b)(5), (b)(9); 52.39(f), (i).
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    The CSAPR regulations identify several important consequences and 
limitations associated with approval of a full SIP revision. First, 
upon EPA's approval of a full SIP revision as correcting the deficiency 
in the state's

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SIP that was the basis for a particular set of CSAPR FIP requirements, 
the obligation to participate in the corresponding CSAPR Federal 
trading program is automatically eliminated for units subject to the 
state's jurisdiction without the need for a separate EPA withdrawal 
action, so long as EPA's approval of the SIP revision as meeting the 
requirements of the CSAPR regulations is full and unconditional.\9\ 
Second, approval of a full SIP revision does not terminate the 
obligation to participate in the corresponding CSAPR Federal trading 
program for any units located in any Indian country within the borders 
of the state, and if and when a unit is located in Indian country 
within a state's borders, EPA may modify the SIP approval to exclude 
from the SIP, and include in the surviving CSAPR FIP instead, certain 
trading program provisions that apply jointly to units in the state and 
to units in Indian country within the state's borders.\10\ Finally, if 
at the time a full SIP revision is approved EPA has already started 
recording allocations of allowances for a given control period to a 
state's units, the Federal trading program provisions authorizing EPA 
to complete the process of allocating and recording allowances for that 
control period to those units will continue to apply, unless EPA's 
approval of the SIP revision provides otherwise.\11\
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    \9\ 40 CFR 52.38(a)(6), (b)(10)(i); 52.39(j).
    \10\ 40 CFR 52.38(a)(5)(iv)-(v), (a)(6), (b)(5)(v)-(vi), 
(b)(9)(vi)-(vii), (b)(10)(i); 52.39(f)(4)-(5), (i)(4)-(5), (j).
    \11\ 40 CFR 52.38(a)(7), (b)(11); 52.39(k).
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    In the CSAPR rulemaking, EPA determined that air pollution 
transported from Indiana would unlawfully affect other states' ability 
to attain or maintain the 1997 PM2.5 NAAQS, the 2006 24-hour 
PM2.5 NAAQS, and the 1997 ozone NAAQS and therefore included 
the State's EGUs in the CSAPR Federal trading programs for 
SO2 and annual NOX (to address the State's 
obligations regarding transported PM2.5 pollution) and the 
original CSAPR Federal trading program for ozone season NOX 
(to address the State's obligations regarding transported ozone 
pollution).\12\ In the CSAPR Update rulemaking, EPA determined that air 
pollution transported from Indiana would unlawfully affect other 
states' ability to attain or maintain the 2008 ozone NAAQS, established 
a more stringent ozone season NOX budget for the State's 
EGUs, and coordinated requirements by allowing compliance with the new 
budget to address the State's obligations regarding transported 
pollution with respect to both the 1997 ozone NAAQS and the 2008 ozone 
NAAQS.\13\ Indiana's EGUs meeting the CSAPR applicability criteria are 
consequently subject to CSAPR FIP requirements to participate in the 
CSAPR SO2 Group 1 Trading Program, the CSAPR NOX 
Annual Trading Program, and the CSAPR NOX Ozone Season Group 
2 Trading Program.\14\ In the original CSAPR rulemaking, EPA found that 
the EGUs' participation in the SO2 and annual NOX 
Federal trading programs fully addresses Indiana's good neighbor 
obligations with respect to attainment and maintenance of the 1997 
PM2.5 NAAQS and the 2006 PM2.5 NAAQS.\15\ In the 
CSAPR Update rulemaking, EPA found that the EGUs' participation in the 
ozone season NOX Federal trading program fully addresses 
Indiana's good neighbor obligations with respect to attainment and 
maintenance of the 1997 ozone NAAQS and partially, but not necessarily 
fully, addresses the State's good neighbor obligation with respect to 
attainment and maintenance of the 2008 ozone NAAQS.\16\
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    \12\ 76 FR at 48210, 48213.
    \13\ 81 FR at 74506, 74563 n.169.
    \14\ 40 CFR 52.38(a)(2)(i), (b)(2)(ii); 52.39(b); see also 40 
CFR 52.789(a)(1), (b)(2); 40 CFR 52.790(a).
    \15\ 76 FR at 48210.
    \16\ 81 FR at 74506-08.
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III. Indiana's SIP Submittal and EPA's Analysis

    On November 27, 2017, Indiana submitted to EPA provisions that, if 
approved, would incorporate into Indiana's SIP state trading program 
regulations for Indiana's EGUs that would replace the CSAPR Federal 
trading program regulations with regard to the units' SO2, 
annual NOX, and ozone season NOX emissions. The 
SIP submittal consists of Indiana Rules 326 IAC 24-5, 326 IAC 24-6, and 
326 IAC 24-7. In general, each of Indiana's CSAPR state trading program 
rules are designed to replace the corresponding Federal trading program 
regulations. For example, Indiana Rule 326 IAC 24-5 (Nitrogen Oxides 
(NOX) Annual Trading Program) is designed to replace subpart 
AAAAA of 40 CFR part 97 (i.e., 40 CFR 97.401 through 97.435). In a 
letter to EPA dated June 11, 2018, Indiana clarified its interpretation 
of certain provisions in its three rules, including identification of 
some minor textual errors that it may correct in subsequent amendments.
    Indiana also requests in its submission the removal from the SIP of 
the State's rules for the CAIR state trading programs for annual 
NOX and SO2 at 326 IAC 24-1 and 24-2, 
respectively, and sections 3, 5 through 10, and 12 of the State's rule 
at 326 IAC 24-3 for the CAIR state trading program for ozone season 
NOX.\17\
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    \17\ In the SIP submittal, Indiana also requested approval of a 
revision to 326 IAC 26-1-5 replacing reliance on CAIR in the State's 
Regional Haze program with reliance on CSAPR. EPA will act on this 
request in a separate rulemaking.
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    In a notice of proposed rulemaking published on August 14, 2018 (83 
FR 40184), EPA proposed to approve Indiana's November 27, 2017 SIP 
submittal (as clarified in the State's June 11, 2018 letter) designed 
to replace the CSAPR Federal trading programs. EPA noted that approval 
of the SIP revision would automatically eliminate Indiana's EGUs' 
requirements under the CSAPR FIPs and would fully satisfy Indiana's 
good neighbor obligations with respect to attainment and maintenance of 
the 1997 PM2.5 NAAQS, the 2006 PM2.5 NAAQS, and 
the 1997 ozone NAAQS and would partially satisfy Indiana's good 
neighbor obligations with respect to attainment and maintenance of the 
2008 ozone NAAQS. EPA also proposed to approve the requested removal of 
the identified portions of the State's CAIR rules, noting that the CAIR 
trading programs have been replaced by CSAPR trading programs for 
affected EGUs. The proposed rulemaking provides additional detail 
regarding the background and rationale for EPA's action.
    Comments on the proposal were due on or before September 13, 2018. 
EPA received four sets of comments, only one of which substantively 
addressed the contents of the proposal; EPA's response is below.
    The State of Maryland submitted a comment on a matter that is 
separate from this action. It is related to EPA's June 29, 2018 
proposed determination that compliance with the ozone season 
NOX budgets established in the CSAPR Update represents a 
full rather than partial remedy for the good neighbor obligations of 20 
states, including Indiana, with respect to attainment and maintenance 
of the 2008 ozone NAAQS.\18\ In the proposal for this action, EPA 
stated that if the June 29, 2018 proposed determination is finalized as 
proposed, then approval of Indiana's CSAPR SIP revision would fully 
address the State's good neighbor obligation with respect to attainment 
and maintenance of the 2008 ozone NAAQS.\19\ The State of Maryland

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disagreed with these statements.\20\ The comments are outside the scope 
of this action because EPA has not finalized the June 29, 2018 proposed 
determination.\21\
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    \18\ Determination Regarding Good Neighbor Obligations for the 
2008 Ozone National Ambient Air Quality Standard, 83 FR 31915 (July 
10, 2018).
    \19\ 83 FR at 40185 n.2, 40191 n.33.
    \20\ Comments of Maryland Dept. of the Environment (September 
13, 2018), EPA-R05-OAR-2017-0700-0008.
    \21\ Maryland's comments also cite a State submittal from 
Indiana dated March 29, 2018 that seeks to fully address the State's 
good neighbor obligations with respect to attainment and maintenance 
of the 2008 ozone NAAQS, relying in part on the CSAPR state trading 
program rules that are being approved into the SIP in this final 
action. Although the State's March 2018 submittal has been made 
available in the docket for this action (EPA-R05-OAR-2017-0700-
0003), EPA is not acting on the March 2018 submittal at this time 
and is not relying on information in that submittal to support this 
final action.
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IV. Final Action

    EPA is approving Indiana's November 27, 2017, SIP submittal (as 
clarified in Indiana's June 11, 2018 letter) concerning the 
establishment for Indiana units of CSAPR state trading programs for 
SO2, annual NOX, and ozone season NOX 
emissions. The revision adopts into the SIP the State trading program 
rules codified at 326 IAC 24-5 (Nitrogen Oxides (NOX) Annual 
Trading Program), 326 IAC 24-6 (Nitrogen Oxides (NOX) Ozone 
Season Group 2 Trading Program), and 326 IAC 24-7 (Sulfur Dioxide 
(SO2) Group 1 Trading Program).
    These Indiana CSAPR state trading programs will be integrated with 
the Federal CSAPR NOX Annual Trading Program, CSAPR 
NOX Ozone Season Group 2 Trading Program, and CSAPR 
SO2 Group 1 Trading Program, respectively, and are 
substantively identical to the Federal trading programs except with 
regard to the allowance allocation provisions. Following approval of 
these portions of the SIP revision, Indiana units therefore will 
generally be required to meet requirements under Indiana's CSAPR state 
trading programs equivalent to the requirements the units otherwise 
would have been required to meet under the corresponding CSAPR Federal 
trading programs, but allocations to Indiana units of CSAPR 
NOX Annual, CSAPR NOX Ozone Season Group 2, and 
CSAPR SO2 Group 1 allowances for control periods in 2021 and 
later years will be determined according to the SIP's allocation 
provisions in Indiana's rules instead of the default allocation 
provisions under the Federal trading program regulations. EPA is 
approving the SIP revision because they meet the requirements of the 
CAA and EPA's regulations for approval of a CSAPR full SIP revision 
replacing a Federal trading program with a state trading program that 
is integrated with and substantively identical to the Federal trading 
program except for permissible differences with respect to emission 
allowance allocation provisions.
    Under the CSAPR regulations, upon EPA's full and unconditional 
approval of a SIP revision as correcting the SIP's deficiency that is 
the basis for particular CSAPR FIP requirements, the obligation to 
participate in the corresponding CSAPR Federal trading program is 
automatically eliminated for units subject to the state's jurisdiction 
(but not for any units located in any Indian country within the state's 
borders).\22\ EPA promulgated the FIP provisions requiring Indiana 
units to participate in the Federal CSAPR SO2 Group 1, CSAPR 
NOX Annual, and CSAPR NOX Ozone Season Group 2 
trading programs in order to address a lack of provisions in Indiana's 
SIP addressing the State's obligations under CAA section 
110(a)(2)(D)(i)(I) with respect to the 1997 PM2.5 NAAQS, the 
2006 PM2.5 NAAQS, the 1997 ozone NAAQS, and the 2008 ozone 
NAAQS. As noted in section II of this action, EPA has previously found 
that the CSAPR FIP requirements represent a full remedy for Indiana's 
obligations with respect to the first three of these NAAQS and a 
partial, but not necessarily full, remedy for the State's obligations 
with respect to the 2008 ozone NAAQS. Approval of the portions of 
Indiana's SIP submittal adopting CSAPR state trading program rules 
substantively identical to the corresponding CSAPR Federal trading 
program regulations (or differing only with respect to the allowance 
allocation methodology) similarly satisfies Indiana's obligations 
pursuant to CAA section 110(a)(2)(D)(i)(I) to prohibit emissions which 
will significantly contribute to nonattainment or interfere with 
maintenance of the 1997 PM2.5 NAAQS, the 2006 
PM2.5 NAAQS, and the 1997 ozone NAAQS in any other state, 
and partially satisfies Indiana's obligation pursuant to CAA section 
110(a)(2)(D)(i)(I) to prohibit emissions which will significantly 
contribute to nonattainment or interfere with maintenance of the 2008 
ozone NAAQS in any other state. Thus, the approval corrects the same 
deficiencies in the SIP that otherwise would be corrected by the CSAPR 
FIP requirements. Due to this, EPA is fully approving Indiana's 
infrastructure SIP obligation under CAA section 110(a)(2)(D)(i)(I) for 
the 1997 PM2.5 NAAQS, 2006 PM2.5 NAAQS, and 1997 
ozone NAAQS (prongs 1 and 2) and is issuing a limited approval on this 
infrastructure element for the 2008 ozone NAAQS in today's action.
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    \22\ 40 CFR 52.38(a)(6), (b)(10); 40 CFR 52.39(j); see also 40 
CFR 52.789(a)(1), (b)(2); 40 CFR 52.790(a).
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    The approval of the portions of Indiana's SIP submittal 
establishing CSAPR state trading program rules therefore also results 
in the automatic termination of the obligations of Indiana units to 
participate in the Federal CSAPR SO2 Group 1, CSAPR 
NOX Annual, and CSAPR NOX Ozone Season Group 2 
trading programs.
    EPA is also approving the removal from Indiana's SIP of the State's 
CAIR rules codified at 326 IAC 24-1 (Clean Air Interstate Rule Nitrogen 
Oxides Annual Trading Program) and 326 IAC 24-2 (Clean Air Interstate 
Rule Sulfur Dioxide Trading Program) and sections 3, 5 through 10, and 
12 of the State's CAIR rule codified at 326 IAC 24-3 (Clean Air 
Interstate Rule NOX Ozone Season Trading Program). The 
discontinued CAIR state trading programs established under the rule 
provisions being removed have been replaced by CSAPR trading programs 
for the affected EGUs.
    This final rule is effective immediately upon publication in the 
Federal Register. Section 553(d) of the Administrative Procedure Act (5 
U.S.C. 553(d)), which generally provides that final rules may not take 
effect earlier than 30 days after publication in the Federal Register 
but allows exceptions where an agency finds good cause and publishes 
its finding with the rule, applies to this action. Ordinarily, a 30-day 
transition period before a new rule takes effect would give affected 
parties an opportunity to adjust their behavior and prepare for 
compliance. However, in this instance no transition period is necessary 
because this rule does not impose new requirements. Under CSAPR's 
existing requirements, on March 1 of each year affected sources must 
hold quantities of emissions allowances not less than their emissions 
during the prior year's control period. The CSAPR regulations provide 
for default allocations to affected sources of allowances eligible for 
use in meeting this requirement. In this rule, in accordance with 
options CSAPR makes available to states, EPA is approving into 
Indiana's SIP the State's rules which include allocation provisions to 
replace the default federally-established allocations for control 
periods in 2021 and later years. The sooner this rule is effective, the 
sooner allowances eligible for use for the 2021 control period can be 
issued to affected sources in Indiana in the amounts determined under 
Indiana's rules, which will assist the sources in planning to meet 
their March 1, 2022, compliance requirement. EPA therefore finds good 
cause to make this

[[Page 64476]]

final rule effective immediately upon publication in the Federal 
Register.

V. Incorporation by Reference

    In this rule, EPA is finalizing regulatory text that includes 
incorporation by reference. In accordance with requirements of 1 CFR 
51.5, EPA is finalizing the incorporation by reference of the Indiana 
Administrative Code provisions 326 IAC 24-5, 326 IAC 24-6, and 326 IAC 
24-7, effective on November 24, 2017. EPA has made, and will continue 
to make, these materials generally available through 
www.regulations.gov and at the EPA Region 5 Office (please contact the 
person identified in the FOR FURTHER INFORMATION CONTACT section of 
this preamble for more information). Therefore, these materials have 
been approved by EPA for inclusion in the SIP, have been incorporated 
by reference by EPA into that plan, are fully federally enforceable 
under sections 110 and 113 of the CAA as of the effective date of the 
final rulemaking of EPA's approval, and will be incorporated by 
reference in the next update to the SIP compilation.\23\
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    \23\ 62 FR 27968 (May 22, 1997).
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VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. See 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. 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 Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     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).
    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 as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it impose substantial direct 
costs on tribal governments or preempt tribal law.
    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 action 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 CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by February 15, 2019. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this action 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, Administrative practice and procedure, 
Air pollution control, Incorporation by reference, Intergovernmental 
relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur dioxide.

    Dated: November 27, 2018.
James O. Payne,
Acting Regional Administrator, Region 5.

    Part 52 of title 40 of the Code of Federal Regulations is amended 
as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart A--General Provisions


Sec.  52.38  [Amended]

0
2. Section 52.38 is amended:
0
a. In paragraph (a)(8)(iii), by adding after the text ``Georgia,'' the 
text ``Indiana,''; and
0
b. In paragraph (b)(13)(iv), by removing the text ``Alabama.'' and 
adding in its place the text ``Alabama and Indiana.''.


Sec.  52.39  [Amended]

0
3. Section 52.39(l)(3) is amended by removing the text ``[none].'' and 
adding in its place the text ``Indiana.''.

Subpart P--Indiana

0
4. Section 52.770 is amended:
0
a. In the table in paragraph (c) by revising the section ``Article 24. 
Trading Programs: Nitrogen Oxides (NOX) and Sulfur Dioxide 
(SO2)''; and
0
b. In the table in paragraph (e) by revising the entries for ``Section 
110(a)(2) infrastructure requirements for the 1997 8-Hour Ozone 
NAAQS'', ``Section 110(a)(2) infrastructure requirements for the 1997 
PM2.5 NAAQS'', ''Section 110(a)(2) Infrastructure 
Requirements for the 2006 24-Hour PM2.5 NAAQS'', and 
``Section 110(a)(2) Infrastructure Requirements for the 2008 ozone 
NAAQS''.
    The revisions read as follows:


Sec.  52.770  Identification of plan.

* * * * *

[[Page 64477]]

    (c) * * *

                                        EPA-Approved Indiana Regulations
----------------------------------------------------------------------------------------------------------------
                                                                Indiana
        Indiana citation                   Subject          effective date    EPA approval date        Notes
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
                   Article 24. Trading Programs: Nitrogen Oxides (NO) and Sulfur Dioxide (SO)
                    Rule 3. Clean Air Interstate Rule (CAIR) NO Ozone Season Trading Program
----------------------------------------------------------------------------------------------------------------
24-3-1..........................  Applicability...........       2/25/2007  11/29/2010, 75 FR     ..............
                                                                             72956
24-3-2..........................  Definitions.............       6/11/2009  11/29/2010, 75 FR     ..............
                                                                             72956
24-3-4..........................  Standard requirements...       2/25/2007  11/29/2010, 75 FR     ..............
                                                                             72956
24-3-11.........................  Monitoring and reporting       2/25/2007  11/29/2010, 75 FR     ..............
                                   requirements.                             72956
----------------------------------------------------------------------------------------------------------------
                               Rule 5. Nitrogen Oxides (NO) Annual Trading Program
----------------------------------------------------------------------------------------------------------------
24-5-1..........................  Applicability and             11/24/2017  12/17/2018 [insert    ..............
                                   incorporation by                          Federal Register
                                   reference.                                citation]
24-5-2..........................  CSAPR NOX annual trading      11/24/2017  12/17/2018 [insert    ..............
                                   budget.                                   Federal Register
                                                                             citation]
24-5-3..........................  CSAPR NOX annual              11/24/2017  12/17/2018 [insert    ..............
                                   allocation timing.                        Federal Register
                                                                             citation]
24-5-4..........................  Baseline heat input and       11/24/2017  12/17/2018 [insert    ..............
                                   historic emissions.                       Federal Register
                                                                             citation]
24-5-5..........................  Existing unit                 11/24/2017  12/17/2018 [insert    ..............
                                   allocations and                           Federal Register
                                   adjustments.                              citation]
24-5-6..........................  New unit allocations....      11/24/2017  12/17/2018 [insert    ..............
                                                                             Federal Register
                                                                             citation]
24-5-7..........................  Unallocated new unit set-     11/24/2017  12/17/2018 [insert    ..............
                                   aside allowances.                         Federal Register
                                                                             citation]
----------------------------------------------------------------------------------------------------------------
                        Rule 6. Nitrogen Oxides (NO) Ozone Season Group 2 Trading Program
----------------------------------------------------------------------------------------------------------------
24-6-1..........................  Applicability and             11/24/2017  12/17/2018 [insert    ..............
                                   incorporation by                          Federal Register
                                   reference.                                citation]
24-6-2..........................  CSAPR NOX ozone season        11/24/2017  12/17/2018 [insert    ..............
                                   group 2 trading budget.                   Federal Register
                                                                             citation]
24-6-3..........................  CSAPR NOX ozone season        11/24/2017  12/17/2018 [insert    ..............
                                   group 2 allocation                        Federal Register
                                   timing.                                   citation]
24-6-4..........................  Baseline heat input and       11/24/2017  12/17/2018 [insert    ..............
                                   historic emissions.                       Federal Register
                                                                             citation]
24-6-5..........................  Existing unit                 11/24/2017  12/17/2018 [insert    ..............
                                   allocations and                           Federal Register
                                   adjustments.                              citation]
24-6-6..........................  New unit allocations....      11/24/2017  12/17/2018 [insert    ..............
                                                                             Federal Register
                                                                             citation]
24-6-7..........................  Unallocated new unit set-     11/24/2017  12/17/2018 [insert    ..............
                                   aside allowances.                         Federal Register
                                                                             citation]
----------------------------------------------------------------------------------------------------------------
                               Rule 7. Sulfur Dioxide (SO) Group 1 Trading Program
----------------------------------------------------------------------------------------------------------------
24-7-1..........................  Applicability and             11/24/2017  12/17/2018 [insert    ..............
                                   incorporation by                          Federal Register
                                   reference.                                citation]
24-7-2..........................  CSAPRSO2 group 1 trading      11/24/2017  12/17/2018 [insert    ..............
                                   budget.                                   Federal Register
                                                                             citation]
24-7-3..........................  CSAPR SO2 group 1             11/24/2017  12/17/2018 [insert    ..............
                                   allocation timing.                        Federal Register
                                                                             citation]
24-7-4..........................  Baseline heat input and       11/24/2017  12/17/2018 [insert    ..............
                                   historic emissions.                       Federal Register
                                                                             citation]
24-7-5..........................  Existing unit                 11/24/2017  12/17/2018 [insert    ..............
                                   allocations and                           Federal Register
                                   adjustments.                              citation]
24-7-6..........................  New unit allocations....      11/24/2017  12/17/2018 [insert    ..............
                                                                             Federal Register
                                                                             citation]
24-7-7..........................  Unallocated new unit set-     11/24/2017  12/17/2018 [insert    ..............
                                   aside allowances.                         Federal Register
                                                                             citation]
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
    (e) * * *

[[Page 64478]]



                       EPA-Approved Indiana Nonregulatory and Quasi-Regulatory Provisions
----------------------------------------------------------------------------------------------------------------
               Title                       Indiana date              EPA approval             Explanation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
Section 110(a)(2) infrastructure    12/7/2007, 9/19/2008, 3/23/ 12/17/2018 [insert     All CAA infrastructure
 requirements for the 1997 8-Hour    2011, 4/7/2011, and 11/24/  Federal Register       elements have been
 Ozone NAAQS.                        2017.                       citation].             approved except the
                                                                                        visibility portion of
                                                                                        110(a)(2)(D)(i)(II).
Section 110(a)(2) infrastructure    12/7/2007, 9/19/2008, 3/23/ 12/17/2018 [insert     All CAA infrastructure
 requirements for the 1997 PM2.5     2011, 4/7/2011, and 11/24/  Federal Register       elements have been
 NAAQS.                              2017.                       citation].             approved except the
                                                                                        visibility portion of
                                                                                        110(a)(2)(D)(i)(II).
Section 110(a)(2) Infrastructure    10/20/2009, 6/25/2012, 7/   12/17/2018 [insert     All CAA infrastructure
 Requirements for the 2006 24-Hour   12/2012, 5/22/2013, and     Federal Register       elements have been
 PM2.5 NAAQS.                        11/24/2017.                 citation].             approved except the
                                                                                        visibility portion of
                                                                                        110(a)(2)(D)(i)(II).
Section 110(a)(2) Infrastructure    12/12/2011 and 11/24/2017.  12/17/2018 [insert     All CAA infrastructure
 Requirements for the 2008 8-Hour                                Federal Register       elements have been
 Ozone NAAQS.                                                    citation].             approved except the
                                                                                        visibility portion of
                                                                                        110(a)(2)(D)(i)(II) and
                                                                                        a limited approval for
                                                                                        110(a)(2)(D)(i)(I).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2018-26920 Filed 12-14-18; 8:45 am]
 BILLING CODE 6560-50-P