Approval and Promulgation of Implementation Plans; Indiana

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN 12-3-5958a; FRL 5071-7]

Approval and Promulgation of Implementation Plans; Indiana

AGENCY: Environmental Protection Agency.

ACTION: Direct final rule.

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SUMMARY: The United States Environmental Protection Agency (USEPA) is

approving an April 18, 1994 State request for a site-specific revision

to the Indiana sulfur dioxide State Implementation Plan (SO2 SIP).

This revision sets forth a schedule of SO2 emission limitations

applicable to Public Service Indiana's Gibson Generating Station (PSI

Gibson) if the facility installs SO2 emission controls. In the

proposed rules section of this Federal Register, USEPA is proposing

approval of and soliciting public comment on this requested SIP

revision. If adverse comments are received on this direct final rule,

USEPA will withdraw this final rule and address the comments received

in response to this final rule in a final rule on the related proposed

rule which is being published in the proposed rules section of this

Federal Register.

DATES: This final rule will be effective November 18, 1994 unless an

adverse comment is received by October 19, 1994. If the effective date

is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Written comments should be addressed to: J. Elmer Bortzer,

Chief, Regulation Development Section, Regulation Development Branch

(AR-18J), United States Environmental Protection Agency, Region 5, 77

West Jackson Boulevard, Chicago, Illinois 60604.

Copies of the State's submittal and other information are available

for inspection during normal business hours at the following location:

Air and Radiation Division, Regulation Development Section, Regulation

Development Branch, United States Environmental Protection Agency,

Region 5, 77 West Jackson Boulevard, Chicago, Illinois.

A copy of the SIP revision is located at the following address:

Office of Air and Radiation (OAR) Docket and Information Center (Air

Docket 6102), Room M1500, U.S. Environmental Protection Agency, 401 M

Street, SW., Washington, DC 20460, (202) 260-7548.

FOR FURTHER INFORMATION CONTACT: Mary Onischak, Regulation Development

Branch, Regulation Development Section, (AR-18J), United States

Environmental Protection Agency, Region 5, Chicago, Illinois 60604,

(312) 353-5954.

SUPPLEMENTARY INFORMATION:

I. Introduction

At the request of PSI Gibson, Indiana has revised the facility's

SO2 emission limits, which are codified by the State at 326

Indiana Administrative Code (326 IAC) 7-4-12.1 (Gibson County Sulfur

Dioxide Emission Limitations), and submitted this rule to USEPA as a

site-specific SO2 SIP revision. The revision provides the facility

with two options for implementing SO2 emission reduction measures

that will ensure protection of the SO2 National Ambient Air

Quality Standards (NAAQS). The first emission reduction option in 326

IAC 7-4-12.1 was approved as 326 IAC 7-1-19 by USEPA on January 19,

1989 (54 FR 2112). This rulemaking action is based on USEPA's review of

the emission limits in the second option.

II. Background

Indiana's SO2 SIP for Gibson County, which is part of Title

326 of the Indiana Administrative Code (326 IAC), specifically 326 IAC

7-1-19, was approved by USEPA for incorporation into the SIP on January

19, 1989 (54 FR 2112). It set forth a schedule of emission limitations

for PSI Gibson whereby the facility's SO2 emissions would decrease

to protect the primary SO2 NAAQS by December 31, 1991, and then

over several years would decrease further to protect the secondary

SO2 standard. The facility was to comply with these emission

limits by burning low sulfur coal in Units 1-4. The rule allowed PSI

Gibson to consider alternate compliance strategies and request a set of

alternate emission limits, if necessary. PSI Gibson was required to

submit a plan to Indiana by December 31, 1988, detailing the compliance

path it intended to follow.

In 1988, PSI Gibson submitted a compliance plan to Indiana which

requested an alternate emission limitation schedule. In this approach,

PSI Gibson would install and operate a flue gas desulfurization system

on Unit 4 to control SO2 emissions. This alternate schedule would

allow PSI Gibson to emit much less SO2 from Unit 4 but slightly

more SO2 from Units 1-3 than is allowed under the existing SIP

approved rule. On August 7, 1990, Indiana adopted a new SO2 rule

for Gibson County to incorporate PSI Gibson's compliance plan. Since

PSI Gibson needed additional time to consider the cost-effectiveness of

both compliance paths, Indiana's revision to 326 IAC 7-4-12.1 included

both the previously approved emission reduction schedule and the new

plan's schedule, and provided that PSI Gibson must make a final choice

of a compliance path by a specified date. PSI Gibson has chosen to

comply with the emission limits in the second scenario.

326 IAC 7-4-12.1 was originally submitted to USEPA as a site-

specific SIP revision on July 22, 1991. Upon the State's June 29, 1993

request, USEPA deferred rulemaking on the July 22, 1991 submittal. On

April 18, 1994, Indiana submitted to USEPA supplemental information

pertaining to the modeled attainment demonstration and reactivated the

SIP revision request.

III. Emission Limitations

The emission reduction schedules for PSI Gibson Units 1-5, which

are set forth in 326 IAC 7-4-12.1(b), are summarized below. All

emission limits are in units of pounds SO2 per million British

Thermal Units (lb/MMBTU). The emission reduction schedule in 326 IAC 7-

4-12.1(b)(1), shown in the first column below, contains the same limits

and deadlines as those set forth in 326 IAC 7-1-19 and approved by

USEPA on January 19, 1989 (54 FR 2112). PSI Gibson would use low sulfur

coal in Units 1-4 to comply with the limits in this scenario. The

second column below presents the new emission limits in the April 18,

1994 site-specific SIP submission. These limits are codified in

Indiana's rules as 326 IAC 7-4-12.1(b)(2). PSI Gibson must install a

flue gas desulfurization (FGD) system on Unit 4 and use low sulfur coal

in Units 1-3 to comply under this scenario.

The limits in the first column have already been approved by USEPA.

The emission limitation schedule in the second column does not

automatically replace the existing schedule; rather, the two scenarios

currently reside in Indiana's rules as a choice of compliance

procedures for PSI Gibson. Note that the two emission reduction

schedules are identical except for the emission limits PSI Gibson's

Units 1-4 must meet by December 31, 1995.

Emission Limitations (lb/MMBTU) Under 326 IAC 7-4-12.1 (b)(1) and (b)(2)

------------------------------------------------------------------------

(1)Low

sulfur (2)FGD

coal on unit

only 4

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Units 1, 2, and 3:

Beginning January 1, 1992......................... 3.57 3.57

No later than December 31, 1993................... 3.13 3.13

No later than December 31, 1995................... 2.7 3.19

Unit 4:

Beginning January 1, 1992......................... 3.57 3.57

No later than December 31, 1993................... 3.13 3.13

No later than December 31, 1995................... 2.7 0.60

Unit 5:

Beginning January 1, 1992......................... 1.2 1.2

24-hour average (New Source Performance Standard). 1.10 1.10

No later than December 31, 1995................... 1.10 1.10

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USEPA also notes that the rule is a SIP-strengthening measure,

since the new emission limits in the April 18, 1994 submittal represent

a decrease in total SO2 emissions from what is required under the

current SIP.

IV. Modeling Issues

The State is required to submit a modeled attainment demonstration

to show that the emission limits set forth in 326 IAC 7-4-12.1(b)(2)

will provide for attainment and maintenance of the NAAQS. The

dispersion modeling information within the original July 22, 1991

submittal contained issues of some initial concern to USEPA in that the

modeler for the PSI Gibson SIP revision may not have used the most

current version of the Industrial Source Complex (ISC) model to

demonstrate that the new Gibson County limits would protect the NAAQS.

USEPA evaluated supplementary information submitted on April 18, 1994,

and determined that PSI Gibson's modeling results indicated that an

appropriate refined dispersion model was used. Because PSI Gibson's

modeling was performed according to USEPA guidance which has since been

revised, USEPA is accepting the modeled attainment demonstration for

the April 18, 1994 submittal under its grandfathering policy.\1\

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\1\USEPA's grandfathering guidance is described in a June 27,

1988, memorandum from the Director of the Office of Air Quality

Planning and Standards to the Regional Air Division Directors.

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Grandfathering is neither mandatory nor automatic, and USEPA wishes

to make clear that its acceptance of the modeling analysis in the April

18, 1994 submittal will not apply to any other analysis of Gibson

County to support any future regulatory action. Future SIP revision

requests submitted to USEPA must demonstrate attainment of the NAAQS

through modeling performed in accordance with current USEPA modeling

guidance.

This SIP revision currently complies with USEPA's 1985 stack height

regulations. It should be noted, however, that on January 22, 1988, the

U.S. Court of Appeals for the D.C. Circuit remanded to USEPA the

exemptions for boilers originally designed to vent from common stacks.

If USEPA's response on the remand modifies the applicable provision,

then USEPA will notify the State of the need to reexamine the Gibson

County SO2 emission limits for consistency with the modified

provision.

V. Rulemaking Action and Solicitation of Public Comment

For the reasons discussed above, USEPA is approving 326 IAC 7-4-

12.1 (Gibson County Sulfur Dioxide Emission Limitations). This rule

affects only the PSI Gibson facility. It sets forth two emission

reduction schedules to limit the facility's SO2 emissions. PSI

Gibson has chosen to comply with the second emission schedule, which

requires the use of an additional flue gas desulfurization system and

will result in lower total SO2 emissions than would the first

reduction schedule. The emission limits in 326 IAC 7-4-12.1 have been

shown to protect the SO2 NAAQS.

The USEPA is publishing this action without prior proposal because

USEPA views this as a noncontroversial amendment and anticipates no

adverse comments. However, in a separate document in this Federal

Register publication, the USEPA is proposing to approve the requested

SIP revision should adverse or critical comments be filed. This action

will be effective on November 18, 1994 unless adverse or critical

comments are received by October 19, 1994.

If the USEPA receives such comments, this action will be withdrawn

before the effective date by the publication of a subsequent rule that

withdraws this final action. All public comments received will then be

addressed in a subsequent final rule based on this action serving as a

proposed rule. The USEPA will not institute a second comment period on

this action. Any parties interested in commenting on this action should

do so at this time. If no such comments are received, the public is

advised that this action will be effective November 18, 1994.

This action has been classified as a Table 2 action by the Regional

Administrator under the procedures published in the Federal Register on

January 19, 1989 (54 FR 2214-2225), as revised by an October 4, 1993

memorandum from Michael H. Shapiro, Acting Assistant Administrator for

Air and Radiation. The OMB has exempted this regulatory action from

Executive Order 12866 review.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

revision to any SIP. Each request for revision to the SIP shall be

considered separately in light of specific technical, economic, and

environmental factors and in relation to relevant statutory and

regulatory requirements.

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., USEPA

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. 5 U.S.C. 603 and 604.

Alternatively, USEPA may certify that the rule will not have a

significant impact on a substantial number of small entities. Small

entities include small businesses, small not-for-profit enterprises,

and government entities with jurisdiction over populations of less than

50,000.

The SIP approvals under section 110 and subchapter I, part D of the

Clean Air Act do not create any new requirements, but simply approve

requirements that the State is already imposing. Therefore, because the

federal SIP approval does not impose any new requirements, I certify

that it does not have a significant impact on any small entities

affected. Moreover, due to the nature of the federal-State relationship

under the Clean Air Act, preparation of a regulatory flexibility

analysis would constitute federal inquiry into the economic

reasonableness of State action. The Clean Air Act forbids USEPA to base

its actions concerning SIPs on such grounds. Union Electric Co. v.

USEPA, 427 U.S. 246, 256-66 (1976).

Under Section 307(b)(1) of the Clean Air Act, petitions for

judicial review of this action must be filed in the United States Court

of Appeals for the appropriate circuit by November 18, 1994. Filing a

petition for reconsideration by the Administrator of this final rule

does not affect the finality of this rule for the purposes of judicial

review nor does it extend the time within which a petition for judicial

review may be filed, and shall not postpone the effectiveness of such

rule or action. This action may not be challenged later in proceedings

to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

Air pollution control, Incorporation by reference, Sulfur oxides.

Note: Incorporation by reference of the State Implementation

Plan for the State of Indiana was approved by the Director of the

Federal Register on July 1, 1982.

Authority: 42 U.S.C. 7401-7671q.

Dated: September 2, 1994.

David A. Ullrich,

Acting Regional Administrator.

Part 52, chapter I, subpart P, title 40 of the Code of Federal

Regulations is amended as follows:

PART 52--[AMENDED]

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

Authority: 42 U.S.C. 7401-7671q.

Subpart P--Indiana

2. Section 52.770 is amended by adding paragraph (c)(89) to read as

follows:

Sec. 52.770 Identification of plan.

* * * * *

(c) * * *

(89) On July 22, 1991, as supplemented on April 18, 1994, the State

submitted regulations adopted by the Indiana Air Pollution Control

Board as part of Title 326 of the Indiana Administrative Code for

incorporation into the Indiana sulfur dioxide State Implementation

Plan.

(i) Incorporation by reference.

(A) 326 Indiana Administrative Code 7-4-12.1: Gibson County sulfur

dioxide emission limitations; effective December 5, 1990. Published in

the Indiana Register, Volume 14, Number 3, December 1, 1990.

[FR Doc. 94-23107 Filed 9-16-94; 8:45 am]

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