Approval and Promulgation of Implementation Plans; Indiana VOC RACT Catch-ups

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN41-1-6343a; FRL-5251-3]

Approval and Promulgation of Implementation Plans; Indiana VOC

RACT Catch-ups

AGENCY: Environmental Protection Agency.

ACTION: Direct final rule.

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SUMMARY: On August 3, 1994, the Indiana Department of Environmental

Management (IDEM)) submitted a SIP revision request which addresses

certain reasonably available control technology (RACT) requirements

under the Clean Air Act (Act) applicable to all major sources of

volatile organic compounds (VOC) located in ozone moderate and above

nonattainment areas for which the United States Environmental

Protection Agency (USEPA) has not issued or will not issue a control

techniques guideline (CTG). The submittal was deemed complete on August

15, 1994. Indiana supplemented its revision request on February 6,

1995. The USEPA is approving this submittal in a final action because

all the pertinent Federal requirements have been met. 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 action, USEPA will withdraw this

final rule and address the comments received in response to this action

in a final rule on the related proposed rule which is being published

in the proposed rules section of this Federal Register. A second public

comment period will not be held unless warranted by significant

revisions to this rulemaking based on any comments received in response

to this action. Parties interested in commenting on this action should

do so at this time.

DATES: This action will be effective September 5, 1995, unless an

adverse comment is received by August 4, 1995.

ADDRESSES: Copies of the revision request and USEPA's analysis

(Technical Support Document) are available for inspection at the

following address: U.S. Environmental Protection Agency, Region 5, Air

and Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois

60604. (It is recommended that you telephone Rosanne M. Lindsay at

(312) 353-1151 before visiting the Region 5 Office.)

A copy of this SIP revision is available for inspection at: Office

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

6102), Room 1500, U.S. Environmental Protection Agency, 401 M St. SW.,

Washington DC 20460.

Written comments should be sent to: J. Elmer Bortzer, Chief,

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

U.S. Environmental Protection Agency, 77 West Jackson Boulevard,

Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: Rosanne M. Lindsay at (312) 353-1151.

[[Page 34857]]

SUPPLEMENTARY INFORMATION:

I. Background

The Act, as amended in 1977, required ozone nonattainment areas to

adopt RACT rules for sources of VOC emissions. Consequently, the USEPA

issued three sets of control technique guideline (CTG) documents,

establishing a ``presumptive norm'' for RACT for various categories of

VOC sources. The three sets of CTGs are: (1) Group I-issued before

January 1978 (15 CTGs); (2) Group II-issued in 1978 (9 CTGs); and (3)

Group III-issued in the early 1980's (5 CTGs). Those sources not

covered by a CTG are commonly referred to as ``non-CTG sources.''

The USEPA determined that the area's SIP-approved attainment date

established which RACT rules the area needed to adopt and implement.

Under section 172(a)(1), ozone nonattainment areas were generally

required to attain the ozone standard by December 31, 1982. Those areas

that submitted an attainment demonstration projecting attainment by

that date were required to adopt RACT for sources covered by the Group

I and II CTGs. Those areas that sought an extension of the attainment

date under section 172(a)(2) to as late as December 31, 1987 were

required to adopt RACT for all CTG sources and for all major (i.e., 100

tons per year or more of VOC emissions) non-CTG sources.

On March 3, 1978, the USEPA designated Lake, Porter, Clark and

Floyd Counties as nonattainment for ozone, specifying that these areas

did not meet the primary standards (43 FR 8964). On July 23, 1982,

USEPA reaffirmed these designations (47 FR 31878). See also 40 CFR

81.315. As a result, the RACT requirement of Group I, II and III CTGs

remained applicable in these nonattainment areas. On May 26, 1988,

USEPA notified the Governor of Indiana that portions of the SIP were

inadequate to attain and maintain the ozone standard and requested that

existing SIP deficiencies be corrected (USEPA's post 1987 SIP call).

On November 15, 1990, Congress amended the 1977 Act. In amended

section 182(a)(2)(A), Congress statutorily adopted the requirement that

pre-enacted ozone nonattainment areas that retained their designation

of nonattainment and were classified as marginal or above correct their

deficient ozone RACT rules by May 15, 1991 (commonly referred to as the

RACT ``fix-up'' requirement). The Indiana counties of Lake, Porter,

Clark and Floyd retained their designations of nonattainment; and were

classified pursuant to Section 181 as severe (Lake and Porter) and

moderate (Clark and Floyd) on November 6, 1991 (56 FR 56694). The State

submitted revisions to meet the RACT fix-up requirement, and USEPA

approved them on March 6, 1992 (57 FR 8082).

In addition to making RACT rule corrections, the amended Act in

Section 182(b)(2) requires States to adopt RACT rules for all areas

designated nonattainment for ozone and classified as moderate or above.

There are three parts to the section 182(b)(2) RACT requirement: (1)

RACT for sources covered by an existing CTG (i.e., a CTG issued prior

to the enactment of the amended Act of 1990; (2) RACT for sources

covered by a post-enactment CTG; and (3) RACT for all major sources not

covered by a CTG (``major non-CTG sources''). This RACT requirement

essentially mandates that nonattainment areas that previously were

exempt from certain VOC RACT requirements ``catch up'' to those

nonattainment areas that became subject to those requirements during an

earlier period. In addition, it requires newly designated ozone

nonattainment areas to adopt RACT rules consistent with those for

previously designated nonattainment areas. Finally, under Section

182(d), ozone sources located in areas classified as ``severe'' are

considered ``major'' sources if they have the potential to emit 25 tons

per year or more of VOC.

Therefore, under these RACT catch-up provisions, Indiana was

required to submit RACT rules for sources in the affected counties

which were covered by both pre- and post-enactment CTGs,1 as well

as all non-CTG major sources. Also, pursuant to Section 182(d), sources

located in the severe nonattainment counties of Lake and Porter are

considered major if their potential to emit is at least 25 tons per

year of VOC.

\1\Indiana has addressed these RACT catch-up requirements in

other submissions, which USEPA will address in separate actions.

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On May 4, 1994, the Indiana Air Pollution Control Board adopted 326

IAC 8-7, ``Specific VOC Reduction Requirements for Lake, Porter, Clark

and Floyd Counties.'' In addition, as part of its rulemaking, Indiana

amended its definition of ``federally enforceable'' and ``Reasonably

available control technology'' in 326 IAC 1-2. An emergency rule was

adopted on August 3, 1994, in accordance with IC 4-22-2-37.1, it was

effective for 90 days and was extended an additional 90 days. The State

adopted the revised rule on August 5, 1994. The State supplemented its

original submittal to USEPA on February 6, 1995.

II. Analysis of State Submittal

The USEPA's analysis of the State submittal is summarized below. A

more detailed analysis of the State's submittal is contained in a May

15, 1995 rational document which is available at the Regional Office

listed above. In determining the approvability of this VOC rule, USEPA

evaluated the rule for consistency with Federal requirements, including

section 110 and part D of the Act, applicable regulations and USEPA's

Model VOC rules.

The Indiana non-CTG RACT rule applies to stationary sources in the

severe ozone nonattainment area of Lake and Porter Counties, as well as

the moderate ozone nonattainment area of Clark and Floyd Counties, and

reflects the lowering of the major source definition from 100 tons per

year to 25 tons for Lake and Porter Counties only. The rule also

applies to sources in the above affected counties which have coating

facilities with the potential to emit 10-25 tons per year (TPY) of VOC,

(Lake and Porter) or 40-100 TPY of VOC (Clark and Floyd).

In the determination of applicability cut-offs, the owner/operator

of a source shall include total potential VOC emissions from the

following facilities: (a) 326 IAC 8-2 (surface coating operations); (b)

326 IAC 8-3 (organic solvent degreasing); (c) 326 IAC 8-4 (petroleum

operations); (d) 326 IAC 8-5 (miscellaneous operations); and facilities

of the following types: (e) fuel combustion facilities; (f) wastewater

treatment plants; (g) coke ovens, including by-product ovens; (h) barge

loading facilities; (i) jet engine test cells; (j) iron and steel

production facilities; and (k) vegetable oil processing facilities.

Sources covered by this rule are allowed to demonstrate compliance

by choosing among any one of the following three available options: (1)

Achieve an overall VOC reduction in baseline actual emissions of

ninety-eight percent (98%) by the addition of add-on controls or

documented reduction in VOC-containing materials used; (2) achieve a

level of reduction equal to eighty-one percent (81%) of baseline actual

emissions by the same means as stated above, where it is demonstrated

that a 98% reduction in source emissions is not achievable; or (3)

achieve an alternative overall emission reduction by the application of

RACT as determined by the State and USEPA.

Compliance with these options requires sources to submit a

compliance plan to the State before December 31, 1994 for approval.

Specific compliance plan requirements are dependent on the

[[Page 34858]]

chosen compliance option. Compliance with option (1) or (2) by reducing

VOC-containing materials requires the owner/operator to submit an

approved compliance plan with the source's operating permit application

under 40 CFR part 70 (Title 5) permit. The part 70 federally

enforceable permit will incorporate the compliance plan, which will

include limits reflecting the following: averaging periods no longer

than daily; VOC content of process materials; capture and control

efficiencies; appropriate test methods; and recordkeeping and reporting

requirements. Prior to the compliance deadline of May 31, 1995, major

sources in Lake, Porter, Clark and Floyd Counties can be exempt from

RACT if they limit their emissions through federally enforceable state

operating permits (FESOPs). (The State submitted a FESOP program on

October 25, 1994, which is under review.) Prior to a USEPA-approved

Indiana FESOP program, operating permits which limit emissions below

the cut-off shall be submitted to USEPA as SIP revisions.

It should be noted that if a source chooses to comply with an

alternative RACT overall emission reduction (option (3)), it must

submit a petition to the State consistent with the procedures in 326

IAC 8-1-5. Under 8-1-5(c), all site-specific RACT plans must be

submitted to and approved by USEPA as SIP revisions.

The rule also contains provisions consistent with the June 1992

Model VOC Rule for the operation, maintenance and testing of control

devices at those affected facilities choosing to use add-on controls as

the method of compliance.

III. Final Rulemaking Action

Based upon the review of the materials submitted by the State of

Indiana, the USEPA has determined that the rules governing the VOC

emissions from sources subject to non-CTG RACT requirements are

consistent with the Act. Because USEPA considers this action

noncontroversial and routine, we are approving it without prior

proposal.

The amendments consist of a new rule, ``Specific VOC Reduction

Requirements for Lake, Porter, Clark and Floyd Counties'' (326 IAC 8-

7), and new definitions (326 IAC 1-2).

The USEPA is approving this action without prior proposal because

USEPA views this as a noncontroversial amendment and anticipates no

adverse comments. However, in a separate document in today's issue of

the Federal Register, the USEPA is proposing to approve the requested

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

will be effective on September 5, 1995 unless adverse or critical

comments are received by August 4, 1995.

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

before the effective date by publishing a subsequent Federal Register

document 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, unless warranted by significant revision

to this rule based on any comments received in response to 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 September 5, 1995.

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 Office of Management and Budget has exempted

this regulatory action from Executive Order 12866 review.

Nothing in this action should be construed as permitting, allowing

or establishing a precedent for any future request for revision to any

SIP. USEPA shall consider each request for revision to the SIP 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.

Under Section 202 of the Unfunded Mandates Reform Act of 1995

(``Unfunded Mandates Act''), signed into law on March 22, 1995, the

USEPA must prepare a budgetary impact statement to accompany any

proposed or final rule that includes a Federal mandate that may result

in estimated costs to State, local, or tribal governments in the

aggregate; or to the private sector, of $100 million or more. Under

Section 205, the USEPA must select the most cost-effective and least

burdensome alternative that achieves the objectives of the rule and is

consistent with statutory requirements. Section 203 requires the USEPA

to establish a plan for informing and advising any small governments

that may be significantly or uniquely impacted by the rule.

The USEPA has determined that the approval action promulgated today

does not include a Federal mandate that may result in estimated costs

of $100 million or more to either State, local, or tribal governments

in the aggregate, or to the private sector.

This Federal action approves pre-existing requirements under State

or local law, and imposes no new Federal requirements. Accordingly, no

additional costs to State, local, or tribal governments, or the private

sector, result from this action.

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 Act, preparation of a regulatory flexibility analysis would

constitute Federal inquiry into the economic reasonableness of the

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 (S.Ct. 1976); 42 U.S.C. 7410(a)(2).

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

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

of Appeals for the appropriate circuit by September 5, 1995. Filing a

petition for reconsideration by the Administrator of this final rule

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

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

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

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

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

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Incorporation by

reference.

[[Page 34859]]

Dated: June 22, 1995.

David A. Ullrich,

Acting Regional Administrator.

Part 52, chapter I, 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)(96) to read as

follows:

Sec. 52.770 Identification of plan.

* * * * *

(c) * * *

(96) On August 3, 1994 and February 6, 1995, the Indiana Department

of Environmental Management submitted a requested SIP revision to the

ozone plan for ozone nonattainment areas.

(i) Incorporation by reference.

(A) Indiana Administrative Code, Title 326: Air Pollution Control

Board, Article 1: General Provisions, Rule 2: Definitions, Section 22.5

``Department'' definition, Section 28.5 ``Federally enforceable''

definition, and Section 64.1 ``Reasonably available control

technology'' or ``RACT'' definition. Added at 18 Indiana Register 1223-

4, effective January 21, 1995.

(B) Indiana Administrative Code, Title 326: Air Pollution Control

Board, Article 8: Volatile Organic Compound Rules, Rule 7: Specific VOC

Reduction Requirements for Lake, Porter, Clark, and Floyd Counties.

Added at 18 Indiana Register 1224-9, effective January 21, 1995.

[FR Doc. 95-16359 Filed 7-3-95; 8:45 am]

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