[Federal Register Volume 85, Number 35 (Friday, February 21, 2020)]
[Rules and Regulations]
[Pages 10064-10070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02817]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2018-0634; FRL-10005-34-Region 5]


Air Plan Approval; Indiana; Revisions to NOX SIP Call and CAIR 
Rules

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is approving under 
the Clean Air Act (CAA) a request from the Indiana Department of 
Environmental Management (IDEM) to revise the Indiana State 
Implementation Plan (SIP) to incorporate the following: A new rule 
concerning nitrogen oxide (NOX) emissions for the ozone 
season from Electric Generating Units (EGUs) and large non-EGUs; 
revisions concerning NOX emission rate limits for specific 
source categories; the repeal of the NOX Budget Trading 
Program; and the repeal of the Clean Air Interstate Rule (CAIR) 
NOX ozone season trading program. This SIP revision will 
ensure continued compliance by EGUs and large non-EGUs with the 
requirements of the NOX SIP Call.

DATES: This direct final rule is effective April 21, 2020, unless EPA 
receives adverse comments by March 23, 2020. 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-2018-0634 at http://www.regulations.gov or via email to 
[email protected]. For comments submitted at Regulations.gov, follow 
the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e., on the web, cloud, or other file sharing 
system). For additional submission

[[Page 10065]]

methods, please contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section. For the full EPA public comment policy, 
information about CBI or multimedia submissions, and general guidance 
on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Eric Svingen, Environmental Engineer, 
Attainment Planning and Maintenance Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 353-4489, 
[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 is the background of this SIP submission?
II. What is EPA's analysis of this SIP submission?
III. What action is EPA Taking?
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. What is the background of this SIP submission?

    Under the ``good neighbor provision'' of CAA section 
110(a)(2)(D)(i)(I), states are required to address interstate transport 
of air pollution. Specifically, the good neighbor provision provides 
that each state's SIP must contain provisions prohibiting emissions 
from within that state which will contribute significantly to 
nonattainment of the National Ambient Air Quality Standards (NAAQS), or 
interfere with maintenance of the NAAQS, in any other state.
    On October 27, 1998, EPA published the NOX SIP Call, 
which required eastern states, including Indiana, to submit SIPs that 
prohibit excessive emissions of ozone season NOX by 
implementing statewide emissions budgets (63 FR 57356). The 
NOX SIP Call addressed the good neighbor provision for the 
1979 ozone NAAQS and was designed to mitigate the impact of transported 
NOX emissions, one of the precursors of ozone. EPA developed 
the NOX Budget Trading Program, an allowance trading program 
that states could adopt to meet most of their obligations under the 
NOX SIP Call. This trading program allowed certain sources 
to participate in a regional cap and trade program: EGUs with capacity 
greater than 25 megawatts; and large non-EGUs, such as boilers and 
combustion turbines, with a rated heat input greater than 250 million 
British thermal units (MMBtu) per hour. The NOX SIP Call 
also identified potential reductions from Portland cement kilns and 
stationary internal combustion engines. To meet the requirements of the 
NOX SIP Call, IDEM initially promulgated two rules: 326 IAC 
10-3, which established source-by-source emission rate limits and 
monitoring requirements for Portland cement kilns and blast furnace 
gas-fired boilers, and 326 IAC 10-4, which required EGUs and certain 
other non-EGUs in the state to participate in the NOX Budget 
Trading Program. On November 8, 2001, EPA published an action approving 
into the SIP the original versions of 326 IAC 10-3 and 326 IAC 10-4 in 
fulfillment of the ``Phase I'' requirements of the NOX SIP 
Call (66 FR 56465). EPA has subsequently approved revised portions of 
these rules into the SIP. On December 11, 2003, EPA approved Indiana 
rule revisions that changed the regulatory approach selected by the 
state for blast furnace gas-fired boilers at two sources, making such 
units subject to the NOX Budget Trading Program at 326 IAC 
10-4 instead of the source-by-source emission rate limits at 326 IAC 
10-3 (68 FR 69025).\1\ On October 1, 2007, EPA approved into the SIP 
326 IAC 10-5, which addressed emissions from stationary internal 
combustion engines, as well as associated revisions to 326 IAC 10-3 and 
326 IAC 10-4, in fulfillment of the ``Phase II'' requirements of the 
NOX SIP Call (72 FR 55664).
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    \1\ The units subject to the change were existing and new blast 
furnace gas-fired boilers at the ArcelorMittal Indiana Harbor East 
(plant code 10474) and US Steel Gary Works (plant code 50733) 
facilities. Blast furnace gas-fired boilers at other Indiana sources 
remained subject to 326 IAC 10-3 rather than 326 IAC 10-4.
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    On May 12, 2005, EPA published CAIR, which required eastern states, 
including Indiana, to submit SIPs that prohibited emissions consistent 
with annual and ozone season NOX budgets and annual sulfur 
dioxide (SO2) budgets (70 FR 25152). CAIR addressed the good 
neighbor provision for the 1997 ozone NAAQS and 1997 fine particulate 
matter (PM2.5) NAAQS and was designed to mitigate the impact 
of transported NOX emissions, a precursor of both ozone and 
PM2.5, as well as transported SO2 emissions, 
another precursor of PM2.5. Like the NOX SIP 
Call, CAIR also established several trading programs that states could 
use as mechanisms to comply with the budgets. When the CAIR trading 
program for ozone season NOX was implemented beginning in 
2009, EPA discontinued administration of the NOX Budget 
Trading Program, but the requirements of the NOX SIP Call 
continued to apply. To meet the requirements of CAIR, IDEM promulgated 
326 IAC 24-1, 326 IAC 24-2, and 326 IAC 24-3, which required EGUs to 
participate in the CAIR annual SO2 and annual and ozone 
season NOX trading programs. Participation by EGUs in the 
CAIR trading program for ozone season NOX emissions 
addressed the state's obligation under the NOX SIP Call for 
those units. IDEM also opted to incorporate large non-EGUs previously 
regulated under 326 IAC 10-4 into 326 IAC 24-3, to meet the obligations 
of the NOX SIP Call with respect to those units through the 
CAIR trading program as well. On October 22, 2007, EPA published an 
action approving portions of 326 IAC 24-1, 326 IAC 24-2, and 326 IAC 
24-3 into the Indiana SIP (72 FR 59480). On November 29, 2010, EPA 
published an action approving additional sections of and revisions to 
326 IAC 24-1, 326 IAC 24-2, and 326 IAC 24-3 into the Indiana SIP, 
fully addressing the requirements of CAIR, along with associated 
revisions to 326 IAC 10-3 and 326 IAC 10-4 (75 FR 72956). The approved 
revision to 326 IAC 10-4 ``sunsetted'' all requirements for Indiana 
EGUs and large non-EGUs under the NOX Budget Trading Program 
in coordination with the implementation start date for the CAIR ozone 
season NOX trading program.
    The United States Court of Appeals for the District of Columbia 
Circuit (D.C. Circuit) remanded CAIR to EPA for replacement in 2008. 
North Carolina v. EPA, 531 F.3d 896, modified, 550 F.3d 1176 (2008). 
While EPA worked on developing a replacement rule, implementation of 
the CAIR program continued as planned with the NOX annual 
and ozone season programs beginning in 2009 and the SO2 
annual program beginning in 2010.
    On August 8, 2011, acting on the D.C. Circuit's remand, EPA 
published the Cross-State Air Pollution Rule (CSAPR) to replace CAIR 
and to address the good neighbor provision for the 1997 ozone NAAQS, 
the 1997 PM2.5 NAAQS, and the 2006 PM2.5 NAAQS 
(76 FR 48208). Through Federal Implementation Plans (FIPs), CSAPR 
required EGUs in eastern states, including Indiana, to meet annual and 
ozone season NOX budgets and annual SO2 budgets 
implemented through new trading programs. CSAPR also contained 
provisions that would sunset CAIR-related obligations on a schedule 
coordinated with the implementation of the CSAPR compliance 
requirements. After delays caused by litigation, EPA started 
implementing the CSAPR trading programs in 2015, simultaneously 
discontinuing administration of the CAIR trading programs. 
Participation by

[[Page 10066]]

a state's EGUs in the CSAPR trading program for ozone season 
NOX generally addressed the state's obligations under the 
NOX SIP Call for EGUs. However, CSAPR did not initially 
contain provisions allowing states to incorporate large non-EGUs into 
that trading program to meet the requirements of the NOX SIP 
Call for non-EGUs.
    On October 26, 2016, EPA published the CSAPR Update, which 
established a new ozone season NOX trading program for EGUs 
in eastern states, including Indiana, to address the good neighbor 
provision for the 2008 ozone NAAQS (81 FR 74504). As under CSAPR, 
participation by a state's EGUs in the new CSAPR trading program for 
ozone season NOX generally addressed the state's obligations 
under the NOX SIP Call for EGUs. The CSAPR Update also 
expanded options available to states for meeting NOX SIP 
Call requirements for large non-EGUs by allowing states to incorporate 
those units into the new trading program.
    After evaluating the various options available following the CSAPR 
Update, IDEM chose to meet the ongoing NOX SIP Call 
requirements for most existing and new large non-EGUs by adopting a new 
rule at 326 IAC 10-2 to make the portion of the state's NOX 
SIP Call budget assigned to those non-EGUs enforceable without an 
allowance trading mechanism. With respect to the blast furnace gas-
fired units formerly regulated under the NOX Budget Trading 
Program (and then the CAIR ozone season NOX program), IDEM 
chose instead to revise 326 IAC 10-3 to make the units subject to 
source-by-source emission rate limits under that rule. Finally, IDEM 
also repealed its CAIR trading program rules at 326 IAC 24-1, 326 IAC 
24-2, and 326 IAC 24-3 and its already-sunsetted NOX Budget 
Trading Program rule at 326 IAC 10-4. In its August 27, 2018 
submission, IDEM requested that EPA approve these changes into the 
Indiana SIP.
    On December 17, 2018, EPA approved a separate November 27, 2017 
submission from IDEM, which modified the Indiana SIP to incorporate 
rules requiring EGUs to participate in the CSAPR trading programs 
pursuant to the SIP instead of the CSAPR FIPs (83 FR 64472). As part of 
this action, EPA approved the removal of 326 IAC 24-1, 326 IAC 24-2, 
and portions of 326 IAC 24-3 from the Indiana SIP. Following the 
December 17, 2018 SIP action, 326 IAC 24-3-1, 326 IAC 24-3-2, 326 IAC 
24-3-4, and 326 IAC 24-3-11 are the only portions of Indiana's original 
CAIR rules at 326 IAC 24-1, 326 IAC 24-2, and 326 IAC 24-3 that remain 
in the Indiana SIP. These provisions were left in place by the December 
17, 2018 SIP action because they collectively establish ozone season 
NOX monitoring requirements for affected non-EGUs, and at 
the time of that action no other SIP-approved rules addressed 
monitoring requirements for these units for NOX SIP Call 
purposes.
    On March 8, 2019, EPA finalized updates to the NOX SIP 
Call regulations to allow states to meet the NOX SIP Call's 
monitoring requirements using approaches other than the monitoring 
requirements under 40 CFR part 75 (84 FR 8422). Indiana's August 27, 
2018 submission predates EPA's updates to the NOX SIP Call's 
monitoring requirements and therefore does not include changes that 
allow non-EGUs subject to the new rule at 326 IAC 10-2 to meet the 
NOX SIP Call's monitoring requirements using approaches 
other than part 75 monitoring. EPA is assisting IDEM with preparing a 
submission that would make other monitoring approaches available to 
these units and will address any such submission in a future 
rulemaking.

II. What is EPA's analysis of this SIP submission?

    Indiana's August 27, 2018 submission requests that EPA update 
Indiana's SIP to reflect the addition of a new rule at 326 IAC 10-2, 
the revision of the existing rule at 326 IAC 10-3, and the repeal of 
the rules at 326 IAC 10-4, 326 IAC 24-1, 326 IAC 24-2, and 326 IAC 24-
3. (As noted in section I, EPA has already approved the removal of 326 
IAC 24-1, 326 IAC 24-2, and portions of 326 IAC 24-3 from the SIP in 
response to a different SIP submission.) Additionally, Indiana's 
submission includes a demonstration under section 110(l) of the CAA 
showing that this SIP revision does not interfere with any applicable 
CAA requirement.

A. New, Revised, and Repealed State Rules

    Given EPA's replacement of CAIR with CSAPR and EPA's previous 
discontinuation of administration of the NOX Budget Trading 
Program, Indiana has developed rule changes to address the 
NOX SIP Call's ongoing requirements with respect to existing 
and new large non-EGUs in a manner that does not rely on the 
administration of a trading program. Specifically, to address all of 
the affected non-EGUs formerly covered by the trading programs except 
the blast furnace gas-fired units, the state adopted a new rule at 326 
IAC 10-2 that establishes monitoring requirements and a cap on the 
units' collective ozone season NOX mass emissions. To 
address the blast furnace gas-fired units, the state revised the 
existing rule at 326 IAC 10-3 to make the units subject to source-by-
source emission rate limits and monitoring requirements under that 
rule. Indiana also repealed its remaining CAIR rules at 326 IAC 24-3-1, 
326 IAC 24-3-2, 326 IAC 24-3-4, and 326 IAC 24-3-11 and its already-
sunsetted NOX Budget Trading Program rule at 326 IAC 10-4. 
These rule changes have a state-effective date of August 26, 2018. 
Indiana's August 27, 2018, submission includes a request that EPA 
approve these rule changes into its SIP.
    The new rule at 326 IAC 10-2 that Indiana has adopted to address 
the NOX SIP Call's ongoing requirements with respect to most 
of the state's affected large non-EGUs is structured into nine 
sections: 326 IAC 10-2-1 concerning applicability, 326 IAC 10-2-2 
concerning definitions, 326 IAC 10-2-3 concerning monitoring 
requirements, 326 IAC 10-2-4 concerning compliance dates for 
monitoring, 326 IAC 10-2-5 concerning certification and recertification 
of monitoring systems, 326 IAC 10-2-6 concerning data substitution for 
periods of missing data, 326 IAC 10-2-7 concerning petitions for 
approval of monitoring alternatives, 326 IAC 10-2-8 concerning 
recordkeeping and reporting, and 326 IAC 10-2-9 concerning the ozone 
season NOX budget. Under the applicability provisions, the 
rule applies to all non-EGUs that would have been subject to the 
state's NOX Budget Trading Program rule at 326 IAC 10-4 
except the blast furnace gas-fired units that will become subject to 
326 IAC 10-3 as revised. The remaining provisions of the rule prohibit 
the affected non-EGUs' collective emissions from exceeding 8,008 tons, 
which is the portion of Indiana's statewide budget under the 
NOX SIP Call that was assigned to these types of units under 
the NOX Budget Trading Program, and require monitoring of 
ozone season NOX mass emissions in accordance with 40 CFR 
part 75. The rule also incorporates the provisions of 40 CFR part 72, 
subpart B, concerning designated representatives. In its SIP submittal, 
Indiana has committed to annually review the non-EGUs' compliance with 
the collective cap and, in the event of any cap exceedance, to revise 
its SIP within one year to compensate for the exceedance and prevent 
additional exceedances.
    The revisions to the existing rule at 326 IAC 10-3 concerning 
NOX emission rate limits for specific source categories 
revise the rule's applicability provisions to cover the blast furnace 
gas-fired units that formerly would have been covered

[[Page 10067]]

by the NOX Budget Trading Program.\2\ In addition, the 
provisions concerning the establishment of appropriate emissions 
factors for use by such units in determining reported emissions under 
this rule are modified to allow historical emissions data reported 
under 40 CFR part 75 to be used for this purpose, and a provision is 
added requiring the newly covered units to submit their plans for 
complying with the rule within 60 days of becoming affected under the 
rule. The revisions will make these units subject to essentially the 
same emission rate limits and monitoring requirements that the units 
would have been subject to under the state rules originally adopted by 
Indiana to address the NOX SIP Call and approved into the 
SIP by EPA in 2001. Other revisions to the rule include removing 
references to the repealed NOX Budget Trading Program and 
CAIR rules, inserting references to the new rule at 326 IAC 10-2, 
updating the names of two sources referenced specifically by the rule, 
clarifying and strengthening applicability during certain operating 
periods, and making minor improvements to formatting and grammar.
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    \2\ The existing blast furnace gas-fired boilers that will be 
affected by this change are ArcelorMittal Indiana Harbor East (plant 
code 10474) units 501, 502, 503, and 504 and US Steel Gary Works 
(plant code 50733) units 701B1, 701B2, 701B3, 701B5, 701B6, 720B1, 
720B2, and 720B3. According to IDEM, the other formerly affected 
blast furnace gas-fired boilers at the Indiana Harbor East facility 
have been retired.
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    The rules that Indiana requested be removed from the SIP in the 
August 27, 2018 SIP submission are the state's NOX Budget 
Trading Program rule at 326 IAC 10-4 and the state's CAIR trading 
program rules at 326 IAC 24-1, 326 IAC 24-2, and 326 IAC 24-3, 
concerning annual NOX, SO2, and ozone season 
NOX emissions, respectively. Because EPA's December 17, 2018 
SIP action already approved the removal from the SIP of 326 IAC 24-1, 
326 IAC 24-2, and portions of 326 IAC 24-3, this action will remove 
only 326 IAC 10-4 and the remaining SIP-approved portions of 326 IAC 
24-3, which were left in place by the December 17, 2018 SIP action to 
address ozone season NOX monitoring requirements for 
affected non-EGUs for NOX SIP Call purposes in the absence 
of other SIP-approved rules establishing such monitoring requirements.

B. EPA's Evaluation of the SIP Submission

    Under the ongoing requirements of the NOX SIP Call, the 
Indiana SIP must, among other things: (1) Include enforceable control 
measures for ozone season NOX mass emissions from existing 
and new large EGUs and large non-EGUs that the state relied on to 
achieve emission reductions to meet its statewide NOX budget 
and (2) require those sources to monitor and report their ozone season 
NOX emissions, which may be in accordance with part 75. See 
40 CFR 51.121(f)(2) and (i). For the reasons discussed below, EPA is 
finding that Indiana's new rule at 326 IAC 10-2, in combination with 
the continued participation of the state's EGUs in the CSAPR ozone 
season NOX trading program, is sufficient to address the 
state's ongoing NOX SIP Call obligations with respect to 
these EGUs and large non-EGUs, while the revisions to 326 IAC 10-3 
establish reasonable requirements for the blast furnace gas-fired units 
formerly subject to the NOX Budget Trading Program. 
Accordingly, EPA is approving these changes into the SIP.
    With respect to the NOX SIP Call requirement that the 
state have enforceable control measures to limit ozone season 
NOX mass emissions, Indiana's EGUs are currently subject to 
a state CSAPR Update trading program for ozone season NOX 
emissions that addresses these requirements for existing and new EGUs, 
but because Indiana's non-EGUs are not subject to that CSAPR trading 
program, the state must meet this requirement for existing and new non-
EGUs through other SIP provisions. Indiana's new rule at 326 IAC 10-2 
will prohibit ozone season NOX mass emissions from existing 
and new large non-EGUs other than blast furnace gas-fired units from 
exceeding 8,008 tons, the portion of the state's NOX SIP 
Call budget assigned to such large non-EGUs. Under 326 IAC 10-2, 
Indiana will conduct an annual review to ensure that the most recent 
ozone season emissions from large non-EGUs remain below the statewide 
budget, and in the SIP submission IDEM has committed to take action 
within one year as needed to address any exceedances. The new cap will 
replace the former enforcement mechanism of the NOX Budget 
Trading Program and the CAIR ozone season NOX trading 
program under which these sources were required to hold allowances 
equal to their emissions. The allowance holding requirements under the 
trading programs have been unenforceable since EPA stopped 
administering the trading programs in 2009 and 2015, respectively. The 
addition of 326 IAC 10-2 thus will remedy an existing gap in the SIP by 
reestablishing enforceable limits on ozone season NOX mass 
emissions from these units.
    Indiana has chosen a different regulatory approach for blast 
furnace gas-fired units that formerly would have been covered by the 
NOX Budget Trading Program. Unlike the state's other large 
non-EGUs, the blast furnace gas-fired units have never been relied upon 
by Indiana to achieve emissions reductions to meet the statewide 
NOX budget under the NOX SIP Call. In the state's 
original rules approved into the SIP in 2001, under which all blast 
furnace gas-fired units were subject to source-by-source emission rate 
limits under 326 IAC 10-3, as well as in the rule revisions approved 
into the SIP in 2003, under which the blast furnace gas-fired units at 
two sources were instead made subject to the NOX Budget 
Trading Program under 326 IAC 10-4, Indiana consistently projected no 
emission reductions from its blast furnace gas-fired units for purposes 
of meeting the state's overall NOX budget. See 66 FR at 
56469 (Table 4) and 56473; June 26, 2003 SIP submission (Attachment K), 
available in the docket for this rulemaking. Consequently, there is no 
ongoing NOX SIP Call requirement under 40 CFR 51.121(f)(2) 
for the Indiana SIP to include enforceable limits on ozone season 
NOX mass emissions from these units, and to meet its other 
NOX SIP Call requirements, Indiana has now chosen to return 
to the regulatory approach in its original SIP submission (as approved 
into the SIP in 2001) by making all the state's blast furnace gas-fired 
units subject to source-by-source emission rate limits under 326 IAC 
10-3. Importantly, this change of requirements will be implemented in a 
manner designed to maintain the overall stringency of the SIP for 
NOX SIP Call purposes. First, with respect to the blast 
furnace gas-fired units, the source-by-source emission rate limit of 
0.17 lb/MMBtu that will apply to the units under 326 IAC 10-3 is the 
same limit that was used to project the units' uncontrolled emissions 
for purposes of both of the state's previous SIP submissions concerning 
the NOX SIP Call-related requirements for these units. 
Second, with respect to the remaining non-EGUs that will be subject to 
the new collective mass emissions cap under 326 IAC 10-2, Indiana has 
set the cap at 8,008 tons, which is the portion of the statewide 
NOX budget assigned to Indiana's non-EGUs under the 
NOX Budget Trading Program before the blast furnace gas-
fired units at the two sources were added to the trading program. The 
SIP with the combined revisions included in this action therefore will 
remain in compliance with Indiana's statewide NOX budget 
under the NOX SIP Call.

[[Page 10068]]

    With respect to the ongoing NOX SIP Call requirement for 
emissions monitoring, Indiana's new rule at 326 IAC 10-2 will continue 
to require that non-EGUs subject to that rule monitor and report their 
ozone season NOX emissions under part 75, and the state's 
EGUs are subject to equivalent monitoring requirements under the 
state's CSAPR trading program for ozone season NOX 
emissions. The blast furnace gas-fired units being made subject to 
source-by-source emission rate limits under 326 IAC 10-3 will become 
subject to the non-part 75 monitoring requirements under that rule, 
which will be slightly modified to allow the use of historical part 75 
emissions data as a basis for setting the emissions factors used to 
determine reported emissions. If, as anticipated, IDEM submits to EPA a 
SIP revision that would make non-part 75 monitoring approaches 
available to large non-EGUs subject to 326 IAC 10-2, the monitoring 
requirements for these units under the NOX SIP Call will be 
the subject of a future rulemaking.
    EPA is finding that the new rule at 326 IAC 10-2 meets Indiana's 
ongoing obligations under the NOX SIP Call with respect to 
existing and new large non-EGUs that the state relied on to achieve 
emission reductions to meet its statewide NOX budget. 
Specifically, the revised rules meet the requirement under 40 CFR 
51.121(f)(2) for enforceable limits on the units' collective emissions 
of ozone season NOX mass emissions and the requirement under 
40 CFR 51.121(i)(1) for monitoring sufficient to ensure compliance with 
those limits. The state's EGUs are currently complying with their 
analogous NOX SIP Call requirements through participation in 
the state's CSAPR Update trading program for ozone season 
NOX. EPA is also finding that the change in regulatory 
approach chosen by Indiana for the blast furnace gas-fired units is 
permissible under the NOX SIP Call regulations and is 
reasonable because it provides for continued emissions monitoring by 
the units and ensures that the overall stringency of the SIP is 
maintained for NOX SIP Call purposes.
    Finally, EPA is also approving the removal from the SIP of 
Indiana's NOX Budget Trading Program rule and the remaining 
portions of the state's CAIR trading program rule for ozone season 
NOX emissions. With respect to the NOX Budget 
Trading Program rule, because EPA already approved sunsetting of this 
rule in a previous action, the rule has no force and its removal from 
the SIP in this action will have no substantive effect. With respect to 
the remaining CAIR rule, which establishes emission monitoring 
requirements for the types of large non-EGUs formerly subject to the 
NOX Budget Trading Program, the rule will generally be made 
redundant by the other rule changes approved in this action. 
Specifically, the large non-EGUs other than blast furnace gas-fired 
units will remain subject to equivalent part 75 monitoring requirements 
under 326 IAC 10-2, and the blast furnace gas-fired units will become 
subject to the non-part 75 monitoring requirements that EPA originally 
approved into the SIP for the units in 2001 as part of the state's 
original SIP submission addressing NOX SIP Call 
requirements.
    In summary, EPA is finding that IDEM's addition of the new rule at 
326 IAC 10-2, revision of the existing rule at 326 IAC 10-3, and repeal 
of the rules at 326 IAC 10-4 and 326 IAC 24-3 are consistent with 
applicable requirements under the CAA and the NOX SIP Call, 
and EPA is therefore approving these changes into the Indiana SIP.

C. Section 110(l) Demonstration

    IDEM's submission includes a demonstration showing that CAA section 
110(l) does not prohibit approval of this SIP revision; such a 
demonstration is sometimes called an anti-backsliding demonstration. 
Section 110(l) provides that EPA cannot approve a SIP revision if the 
revision would interfere with attainment and maintenance of the NAAQS, 
reasonable further progress, or any other applicable requirement of the 
CAA.
    The majority of the rule changes approved in this action either add 
new requirements, remove provisions that have no impact on emissions or 
air quality, or replace existing requirements under one rule with 
identical requirements under another rule. As such, they will not 
interfere with any applicable CAA requirement. First, the emission 
limits established by revised 326 IAC 10-3 for blast furnace gas-fired 
units and by 326 IAC 10-2 for other non-EGUs are new requirements that 
will remedy a gap in the SIP that was created when EPA discontinued the 
administration of the CAIR trading program for ozone season 
NOX emissions. Second, removal from the SIP of the state's 
NOX Budget Trading Program rule will have no impact on 
emissions or air quality because EPA's earlier November 29, 2010 action 
approved sunsetting of the rule, and EPA ceased administering the 
program when the CAIR trading program was implemented. The state's 
NOX Budget Trading Program rule can, therefore, no longer be 
implemented. Finally, with respect to the removal of the remaining CAIR 
rule for ozone season NOX emissions, which established 
monitoring requirements for non-EGUs (other than blast furnace gas-
fired units) for NOX SIP Call purposes, the new rule at 326 
IAC 10-2 will reestablish substantively identical part 75 monitoring 
requirements for these units.
    The only SIP revision that we are approving in this action that 
will remove currently effective rule provisions without replacing them 
with substantively identical provisions relates to the emissions 
monitoring requirements for blast furnace gas-fired units at the two 
sources formerly subject to the NOX Budget Trading Program. 
These units are currently subject to part 75 monitoring requirements 
under 326 IAC 24-3, which the State has requested be removed from the 
SIP, and will become subject to non-part 75 monitoring requirements 
under the revised rule at 326 IAC 10-3. EPA concludes this change in 
monitoring requirements will not lead to an increase in emissions for 
two reasons. First, the change will relate only to monitoring 
requirements, not to emission limits; in fact, other rule changes 
approved in this action will make the units subject to additional 
enforceable emission limits. Second, even during the period after 2014 
in which the sources were not subject to enforceable emission limits 
under the NOX Budget Trading Program or the CAIR trading 
program, the units' reported collective emissions in every year from 
2015 through 2019 were well below the units' share of the previous 
collective emissions budget for the state's non-EGUs under 326 IAC 24-
3. Specifically, the units' collective ozone season NOX mass 
emissions have not exceeded 1,193 tons, compared to their budget share 
of 1,526 tons. See emissions data at https://ampd.epa.gov; June 26, 
2003 SIP submission (Attachment K), available in the docket for this 
rulemaking. These data indicate that the units' emissions limits and 
monitoring requirements for NOX SIP Call purposes have not 
been driving their historical emissions levels, with the logical 
consequence that the change in their monitoring requirements approved 
in this action will not cause a change in their emissions levels.
    For these reasons, we conclude that the revisions will not 
interfere with attainment of the NAAQS, reasonable further progress, or 
any other applicable requirement of the CAA. EPA is therefore finding 
that CAA section 110(l) does not prohibit approval of this SIP 
revision.

[[Page 10069]]

III. What action is EPA taking?

    EPA is approving IDEM's request to modify its SIP to include the 
new rule at 326 IAC 10-2 and the revised rule at 326 IAC 10-3 and to 
remove 326 IAC 10-4 and 326 IAC 24-3.
    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 April 21, 2020 
without further notice unless we receive relevant adverse written 
comments by March 23, 2020. 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. EPA will not institute a second comment 
period. Any parties interested in commenting on this action should do 
so at this time. Please note that if EPA receives adverse comment on an 
amendment, paragraph, or section of this rule and if that provision may 
be severed from the remainder of the rule, EPA may adopt as final those 
provisions of the rule that are not the subject of an adverse comment. 
If we do not receive any comments, this action will be effective April 
21, 2020.

IV. 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 
Regulations described in the amendments to 40 CFR part 52 set forth 
below. EPA has made, and will continue to make, these documents 
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 State implementation plan, 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.\3\
---------------------------------------------------------------------------

    \3\ 62 FR 27968 (May 22, 1997).
---------------------------------------------------------------------------

    Also in this document, as described in the amendments to 40 CFR 
part 52 set forth below, EPA is removing provisions of the EPA-Approved 
Indiana Regulations from the Indiana SIP, which is incorporated by 
reference in accordance with the requirements of 1 CFR part 51.

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 Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Is not an Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866.
     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 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
    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 April 21, 2020. 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. Parties with objections to this direct final rule are 
encouraged to file a comment in response to the parallel notice of 
proposed rulemaking for this action published in the proposed rules 
section of today's Federal Register, rather than file an immediate 
petition for judicial review of this direct final rule, so that EPA can 
withdraw this direct final rule and address the comment in the proposed 
rulemaking. This action may not be challenged later in proceedings to 
enforce its requirements. (See section 307(b)(2).)

[[Page 10070]]

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
oxides.

    Dated: January 30, 2020.
Kurt A. Thiede,
Regional Administrator, Region 5.

    40 CFR part 52 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.


0
2. In Sec.  52.770, the table in paragraph (c) is amended by:
0
a. Revising the section entitled ``Article 10. Nitrogen Oxides Rules''; 
and
0
b. Removing the heading ``Rule 3. Clean Air Interstate Rule (CAIR) NO X 
Ozone Season Trading Program'' and the entries for 24-3-1, 24-3-2, 24-
3-4, and 24-3-11.
    The revision reads as follows:


Sec.  52.770  Identification of plan.

* * * * *
    (c) * * *

                                        EPA-Approved Indiana Regulations
----------------------------------------------------------------------------------------------------------------
                                                       Indiana
      Indiana citation               Subject          effective      EPA approval date           Comments
                                                         date
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                        Article 10. Nitrogen Oxides Rules
----------------------------------------------------------------------------------------------------------------
10-1.......................  Nitrogen Oxides           6/12/1996  6/3/1997, 62 FR 30253.
                              Control in Clark and
                              Floyd Counties.
10-2.......................  NOX Emissions from        8/26/2018  2/21/2020, [Insert
                              Large Affected Units.                Federal Register
                                                                   citation].
10-3.......................  Nitrogen Oxide            8/26/2018  2/21/2020, [Insert
                              Reduction Program for                Federal Register
                              Specific Source                      citation].
                              Categories.
10-5.......................  Nitrogen Oxide            2/26/2006  10/1/2007, 72 FR 55664
                              Reduction Program for
                              Internal Combustion
                              Engines (ICE).
10-6.......................  Nitrogen Oxides           8/30/2008  11/10/2009, 74 FR
                              Emission Limitations                 57904.
                              for Southern Indiana
                              Gas and Electric
                              Company.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2020-02817 Filed 2-20-20; 8:45 am]
BILLING CODE 6560-50-P