Approval and Promulgation of State Implementation Plan; IN

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN54-1a; FRL-5819-3]

Approval and Promulgation of State Implementation Plan; IN

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In this action, EPA is approving the following as revisions to

the Indiana State Implementation (SIP) plan: A Rate-Of-Progress (ROP)

plan to reduce volatile organic compound (VOC) emissions in Clark and

Floyd Counties by 15 percent (%) by November 15, 1996; 1996 corrections

to Clark and Floyd Counties' 1990 base year emission inventory (to

establish an accurate base line for the 15% ROP plan); construction

permits requiring VOC emission control at Rhodes, Incorporated (Rhodes)

in Charlestown, Clark County; and a ridesharing program affecting

commuters in Clark and Floyd Counties. The plan and control measures

help protect the public's health and welfare by reducing the emissions

of VOC that contribute to the formation of ground-level ozone, commonly

known as urban smog. High concentrations of ground-level ozone can

aggravate asthma, cause inflammation of lung tissue, decrease lung

function, and impair the body's defenses against respiratory infection.

The 15% ROP plan's control measures are expected to reduce VOC

emissions in Clark and Floyd Counties by 17,215 pounds (lbs) per day.

In this action, EPA is approving the above requested SIP revisions

through a ``direct final'' rulemaking; the rationale for this approval

is set forth below.

DATES: The ``direct final'' rule, is effective July 7, 1997, unless EPA

receives adverse or critical comments by June 6, 1997. If the effective

date is delayed, timely notice will be published in the Federal

Register.

ADDRESSES: Comments may be mailed to: J. Elmer Bortzer, Chief,

Regulation Development Section, United States Environmental Protection

Agency, Region 5, Air and Radiation Division, Air Programs Branch (AR-

18J), 77 West Jackson Boulevard, Chicago, Illinois, 60604.

Copies of the documents relevant to this action are available at

the above address for public inspection during normal business hours.

FOR FURTHER INFORMATION CONTACT: Mark J. Palermo, Environmental

Protection Specialist, at (312) 886-6082.

SUPPLEMENTARY INFORMATION:

I. Background on 15% ROP Requirements

On November 15, 1990, Congress enacted amendments to the 1977 Clean

Air Act (Act); Public Law 101-549, 104 Stat. 2399, codified at 42

U.S.C. 7401-7671q. Section 182(b)(1) requires States with ozone

nonattainment areas classified as moderate and above to submit a SIP

revision known as a ``15% ROP plan.'' This plan must reflect an actual

reduction in typical ozone season weekday VOC emissions of at least 15%

in the area during the first 6 years after enactment (i.e., by November

15, 1996). The emission reductions needed to achieve the 15%

requirement must be calculated using a 1990 anthropogenic VOC emissions

inventory as a baseline, minus emission reductions occurring by 1996

from the: (1) Federal Motor Vehicle Control Program (FMVCP) measures

for the control of motor vehicle exhaust or evaporative emissions

promulgated before January 1, 1990; and (2) gasoline Reid Vapor

Pressure (RVP) regulations promulgated by November 15, 1990 (see 55 FR

23666, June 11, 1990). In addition, the plan must account for net

growth in emissions within the nonattainment area between 1990 and

1996.

In Indiana, two ozone nonattainment areas are required to be

covered by a 15% ROP plan: the Lake and Porter Counties portion of the

Chicago severe ozone nonattainment area, and the Clark and Floyd

Counties portion of the Louisville moderate ozone nonattainment area.

Today's rulemaking action addresses only the plan for Clark and Floyd

Counties; the Lake and Porter Counties 15% ROP plan has been addressed

in an April 3, 1997, rulemaking action (see 62 FR 15844).

II. Indiana's 15% ROP Plan Submittal

The Act requires States to observe certain procedural requirements

in

[[Page 24816]]

developing SIPs and SIP revisions for submission to EPA. Section

110(a)(2) and section 110(l) of the Act require that each SIP revision

meet reasonable notice and public hearing requirements. The State of

Indiana submitted a portion of the Clark and Floyd Counties 15% ROP

plan SIP revision on December 20, 1993. The SIP revision was reviewed

by EPA to determine completeness shortly after submittal, in accordance

with the completeness criteria set out at 40 CFR Part 51, Appendix V

(1991), as amended by 57 FR 42216 (August 26, 1991). Because Indiana

had not included fully adopted rules for all the plan's control

measures, nor held a public hearing on the plan, the submittal was

deemed incomplete. Subsequently, Indiana held a public hearing on the

plan on March 31, 1994, in New Albany, Indiana. A hearing transcript, a

summary of comments from that hearing, and the Indiana Department of

Environmental Management's (IDEM) response to comments were submitted

on July 5, 1994. IDEM sent a supplemental submittal on July 12, 1995,

which included fully adopted rules for the Clark and Floyd Counties 15%

ROP plan. In a July 17, 1995, letter to Indiana, the State was informed

that the SIP submittal was deemed complete.

Indiana submitted a contingency plan with the 15% ROP plan pursuant

to section 172(c)(9). EPA will take action on this plan in a separate

rulemaking action. The contingency plan is a separate requirement of

the Act, and approval of the contingency plan is not a prerequisite for

approval of the 15% ROP plan.

III. Criteria for 15% ROP Plan Approvals

The requirements for 15% ROP plans are found in section 182(b)(1)

of the Act, and the following EPA guidance documents:

1. Procedures for Preparing Emissions Projections, EPA-450/4-91-

019, Environmental Protection Agency, July 1991.

2. State Implementation Plans; General Preamble for the

Implementation of Title I of the Clean Air Act Amendments of 1990;

Proposed rule (57 FR 13498), Federal Register, April 16, 1992 (General

Preamble).

3. ``November 15, 1992, Deliverables for Reasonable Further

Progress and Modeling Emission Inventories,'' memorandum from J. David

Mobley, Edwin L. Meyer, and G. T. Helms, Office of Air Quality Planning

and Standards, Environmental Protection Agency, August 7, 1992.

4. Guidance on the Adjusted Base Year Emissions Inventory and the

1996 Target for the 15 Percent Rate of Progress Plans, EPA-452/R-92-

005, Environmental Protection Agency, October 1992.

5. ``Quantification of Rule Effectiveness Improvements,''

memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs

Branch, Office of Air Quality Planning and Standards, Environmental

Protection Agency, October 1992.

6. Guidance for Growth Factors, Projections, and Control Strategies

for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-002, March

1993.

7. ``Correction to `Guidance on the Adjusted Base Year Emissions

Inventory and the 1996 Target for the 15 Percent Rate of Progress

Plans','' memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide

Programs Branch, Office of Air Quality Planning and Standards,

Environmental Protection Agency, March 2, 1993.

8. ``15 Percent Rate-of-Progress Plans,'' memorandum from G. T.

Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of Air

Quality Planning and Standards, Environmental Protection Agency, March

16, 1993.

9. Guidance on the Relationship Between the 15 Percent Rate-of-

Progress Plans and Other Provisions of the Clean Air Act, EPA-452/R-93-

007, Environmental Protection Agency, May 1993.

10. ``Credit Toward the 15 Percent Rate-of-Progress Reductions from

Federal Measures,'' memorandum from G. T. Helms, Chief, Ozone/Carbon

Monoxide Programs Branch, Environmental Protection Agency, May 6, 1993.

11. Guidance on Preparing Enforceable Regulations and Compliance

Programs for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-005,

Environmental Protection Agency, June 1993.

12. ``Correction Errata to the 15 Percent Rate-of-Progress Plan

Guidance Series,'' memorandum from G. T. Helms, Chief, Ozone and Carbon

Monoxide Programs Branch, Environmental Protection Agency, July 28,

1993.

13. ``Early Implementation of Contingency Measures for Ozone and

Carbon Monoxide (CO) Nonattainment Areas,'' memorandum from G. T.

Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Environmental

Protection Agency, August 13, 1993.

14. ``Region III Questions on Emission Projections for the 15

Percent Rate-of-Progress Plans,'' memorandum from G. T. Helms, Chief,

Ozone/Carbon Monoxide Programs Branch, Office of Air Quality Planning

and Standards, Environmental Protection Agency, August 17, 1993.

15. ``Guidance on Issues Related to 15 Percent Rate-of-Progress

Plans,'' memorandum from Michael H. Shapiro, Acting Assistant

Administrator for Air and Radiation, Environmental Protection Agency,

August 23, 1993.

16. ``Credit Toward the 15 Percent Requirements from Architectural

and Industrial Maintenance Coatings,'' memorandum from John S. Seitz,

Director, Office of Air Quality Planning and Standards, Environmental

Protection Agency, September 10, 1993.

17. ``Reclassification of Areas to Nonattainment and 15 Percent

Rate-of-Progress Plans,'' memorandum from John S. Seitz, Director,

Office of Air Quality Planning and Standards, Environmental Protection

Agency, September 20, 1993.

18. ``Clarification of `Guidance for Growth Factors, Projections

and Control Strategies for the 15 Percent Rate of Progress Plans',''

memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs

Branch, Office of Air Quality Planning and Standards, Environmental

Protection Agency, October 6, 1993.

19. ``Review and Rulemaking on 15 Percent Rate-of-Progress Plans,''

memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs

Branch, Office of Air Quality Planning and Standards, Environmental

Protection Agency, October 6, 1993.

20. ``Questions and Answers from the 15 Percent Rate-of-Progress

Plan Workshop,'' memorandum from G. T. Helms, Chief, Ozone/Carbon

Monoxide Programs Branch, Environmental Protection Agency, October 29,

1993.

21. ``Rate-of-Progress Plan Guidance on the 15 Percent

Calculations,'' memorandum from D. Kent Berry, Acting Director, Air

Quality Management Division, Environmental Protection Agency, October

29, 1993.

22. ``Clarification of Issues Regarding the Contingency Measures

that are Due November 15, 1993 for Moderate and Above Ozone

Nonattainment Areas,'' memorandum from D. Kent Berry, Acting Director,

Air Quality Management Division, Environmental Protection Agency,

November 8, 1993.

23. ``Credit for 15 Percent Rate-of-Progress Plan Reductions from

the Architectural and Industrial Maintenance (AIM) Coating Rule,''

memorandum from John S. Seitz, Director, Office of Air Quality Planning

and Standards, Environmental Protection Agency, December 9, 1993.

24. ``Guidance on Projection of Nonroad Inventories to Future

Years,'' memorandum from Philip A. Lorang,

[[Page 24817]]

Director, Emission Planning and Strategies Division, Office of Air and

Radiation, Environmental Protection Agency, February 4, 1994.

25. ``Discussion at the Division Directors Meeting on June 1

Concerning the 15 Percent and 3 Percent Calculations,'' memorandum from

G. T. Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of

Air Quality Planning and Standards, Environmental Protection Agency,

June 2, 1994.

26. ``Future Nonroad Emission Reduction Credits for Court-Ordered

Nonroad Standards,'' memorandum from Philip A. Lorang, Director,

Emission Planning and Strategies Division, Office of Air and Radiation,

Environmental Protection Agency, November 28, 1994.

27. ``Credit for the 15 Percent Rate-of-Progress Plans for

Reductions from the Architectural and Industrial Maintenance (AIM)

Coating Rule and the Autobody Refinishing Rule,'' memorandum from John

S. Seitz, Director, Office of Air Quality Planning and Standards,

Environmental Protection Agency, November 29, 1994.

28. ``Transmittal of Rule Effectiveness Protocol for 1996

Demonstrations,'' memorandum from Susan E. Bromm, Director, Chemical,

Commercial Services and Municipal Division, Office of Compliance,

Environmental Protection Agency, December 22, 1994.

29. ``Future Nonroad Emission Reduction Credits for Locomotives,''

memorandum from Philip A. Lorang, Director, Emission Planning and

Strategies Division, Office of Air and Radiation, Environmental

Protection Agency, January 3, 1995.

30. ``Credit for the 15 Percent Rate-of-Progress Plans for

Reductions from the Architectural and Industrial Maintenance (AIM)

Coating Rule,'' memorandum from John S. Seitz, Director, Office of Air

Quality Planning and Standards, Environmental Protection Agency, March

22, 1995.

31. ``Fifteen Percent Rate-of-Progress Plans--Additional

Guidance,'' memorandum from John S. Seitz, Director, Office of Air

Quality Planning and Standards, Environmental Protection Agency, May 5,

1995.

32. ``Update on the Credit for the 15 percent Rate-of-Progress

Plans for Reductions from the Architectural and Industrial Maintenance

Coatings Rule,'' memorandum from John S. Seitz, Director, Office of Air

Quality Planning and Standards, Environmental Protection Agency, March

7, 1996.

33. ``Date by which States Need to Achieve all the Reductions

Needed for the 15% Plan from Inspection and Maintenance (I/M) and

Guidance for Recalculation,'' memorandum from Margo Oge, Director,

Office of Mobile Sources, and John S. Seitz, Director, Office of Air

Quality Planning and Standards, Environmental Protection Agency, August

13, 1996.

34. ``Sample City Analysis: Comparison of Enhanced Inspection and

Maintenance (I/M) Reductions Versus Other 15 Percent Rate of Progress

Plan Measures,'' E.H. Pechan and Associates, December 12, 1996.

35. ``Modeling 15 Percent Volatile Organic Compound (VOC)

Reduction(s) from I/M in 1999: Supplemental Guidance,'' memorandum from

Gay MacGregor, Director, Regional and State Programs Division, and

Sally Shaver, Director, Air Quality Strategies and Standards Division,

Environmental Protection Agency, December 23, 1996.

36. ``15% Volatile Organic Compound (VOC) State Implementation Plan

(SIP) Approvals and the `As Soon As Practicable' Test,'' memorandum

from John S. Seitz, Director, Office of Air Quality Planning and

Standards, and Richard B. Ossias, Deputy Associate General Counsel,

Division of Air and Radiation, Office of General Counsel, Environmental

Protection Agency, February 12, 1997.

For a 15% ROP plan SIP to be approved, the plan must adequately

justify how much emission reduction is needed to achieve 15% emission

reduction by November 15, 1996, and how the plan's control strategy

will secure that reduction. The procedure for calculating the needed

emission reduction is as follows:

(A) Calculate the ``1990 ROP inventory'' by subtracting from the

area's ``1990 base year inventory'' 1 biogenic emissions,

emissions outside of the nonattainment area, and pre-enactment banked

emission credits;

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\1\ Sections 172(c)(3) and 182(a)(1) of the Act require that

nonattainment plan provisions include a comprehensive, accurate

inventory of actual emissions which occurred in 1990 from all

sources of relevant pollutants in the nonattainment area. This

inventory provides an estimate of the amount of VOC and oxides of

nitrogen produced by emission sources such as automobiles,

powerplants and the use of consumer solvents in the household.

Because the approval of such inventories is necessary to an area's

15% ROP plan and attainment demonstration, the emission inventory

must be approved prior to or with the 15% ROP plan submission.

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(B) Calculate the ``1990 adjusted base year inventory'' by

subtracting from the 1990 ROP inventory any emission reductions from

the pre-1990 FMVCP and 1990 RVP Federal regulations which occur between

1990 and 1996; 2

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\2\ The 1990 adjusted base year inventory represents the

``baseline emissions'' from which the 15 percent reduction is to be

calculated, as specified under section 182(b)(1)(B) of the Act.

Section 182(b)(1)(B) defines baseline emissions to mean the total

amounts of actual VOC emissions from all anthropogenic sources in

the ozone nonattainment areas during the calendar year of 1990,

excluding emissions that are eliminated by the pre-1990 FMVCP and

1990 RVP regulations. In the General Preamble, EPA interprets

``calendar year'' emissions to consist of typical ozone season

weekday emissions, based on the fact that the ozone National Ambient

Air Quality Standard (NAAQS) (0.12 parts per million, one-hour

averaged) is generally exceeded or violated during ozone season

weekdays when ozone precursor emissions and meteorological

conditions are most conducive to ozone formation. Ozone seasons are

typically the summer months.

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(C) Calculate ``15% of adjusted base year emissions'' by

multiplying the 1990 adjusted base year inventory by 15%;

(D) Calculate the ``total required reductions by 1996'' by adding

emission reductions from the pre-1990 FMVCP and 1990 RVP federal rules

to the 15% of adjusted base year emissions calculation; 3

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\3\ Under section 182(b)(1)(D), emission reductions pre-1990 and

1990 RVP regulations are not creditable toward meeting 15%. The

emission reductions which occurred by 1996 from these regulations

are added to emissions required to meet 15% to determine the total

amount of emission reduction by 1996 for the area.

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(E) Calculate the ``1996 emissions target level'' by subtracting

from the 1990 ROP base year inventory the total required reductions by

1996;

(F) Calculate the ``1996 projected emission estimate'' by a number

of methods, such as adding growth factors to the 1990 adjusted base-

year inventory, or adding growth factors and required emission

reductions to the 1990 ROP inventory; and

(G) Calculate the ``reduction required by 1996 to achieve 15% net

of growth'' by subtracting the 1996 target emissions level from the

1996 projected emissions level.

In determining what control measures a State can use in its 15% ROP

plan strategy, the Act provides under section 182(b)(1)(C) that

emission reductions from control measures are creditable to the extent

that they have actually occurred before November 15, 1996. In keeping

with this requirement, the General Preamble states that all credited

emission reductions must be real, permanent, and enforceable, and that

regulations needed to implement the plan's control strategy must be

adopted and implemented by the State by November 15, 1996.

The EPA has reviewed the State's submittal for consistency with the

requirements of the Act and EPA guidance. A summary of EPA's analysis

is provided below.

[[Page 24818]]

IV. Analysis of Clark and Floyd Counties 15% ROP Plan

Indiana's 15% ROP Summary for Clark and Floyd Counties is shown in

the following table:

15% ROP Summary for Clark & Floyd Counties

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

Lbs VOC/day

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Calculation of Reduction Needs by 1996

1990 Clark and Floyd Counties Total VOC Emissions....... 162,855

1990 ROP Emissions (Anthropogenic only)................. 86,815

1990-1996 Noncreditable Reductions (Reductions from 1990

RVP and Pre-1990 FMVCP Regulations).................... 18,985

1990 Adjusted Base Year Emissions (1990 ROP Emissions

minus Noncreditable Reductions)........................ 67,830

15% of Adjusted Base Year Emissions..................... 10,175

Total Expected Emission Reductions by 1996 (15% of

Adjusted Base Year Emissions plus Noncreditable

Reductions)............................................ 29,160

1996 Target Level (1990 ROP Emissions minus Total

Required Emission Reductions by 1996).................. 57,655

1996 Projected Emissions (1990 Adjusted Base Year

Emissions plus Growth Factors)......................... 74,764

Reduction Needed to Achieve 15 Percent Net of Growth

(1996 Projected Emissions minus 1996 Target Level)..... 17,109

Expected Reduction From Mandatory Controls

Point Sources:

Volatile Organic Liquid (VOL) Storage Tanks Rule

(326 IAC 8-9)...................................... 142

Shipbuilding and Ship Repair Rule (326 IAC 8-12).... 1,164

Wood Furniture Coating Rule (326 IAC 8-11).......... 2,445

Area Sources:

Automobile Refinishing Rule (326 IAC 8-10).......... 1,172

Federal Architectural and Industrial Maintenance

(AIM) Coatings Rule................................ 750

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Subtotal--Reductions From Mandatory Controls...... 5,673

Expected Reductions From Non Mandatory Controls

Mobile Sources:

Low Reid Vapor Pressure (RVP) Gasoline Rule--Mobile

Sources (326 IAC 13-3)............................. 3,800

Improved Basic Vehicle Inspection and Maintenance (I/

M) Program (326 IAC 13-1.1)........................ 2,200

Commuter Credits from Kentucky Motorists............ 700

Ridesharing Program................................. 55

Area Sources:

Stage II Gasoline Vapor Recovery Rule (326 IAC 8-4-

6)................................................. 2,290

Lower RVP Gasoline Rule--Area Sources (326 IAC 13-3) 787

Residential Open Burning (326 IAC 4-1).............. 704

Municipal Solid Waste (MSW) Landfill Rule (326 IAC 8-

8)................................................. 345

Point Sources:

Rhodes, Inc. (Rhodes) Construction Permit........... 661

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Subtotal--Reduction From Non Mandatory Controls... 11,542

===============

Total Creditable Reductions From 15% ROP Plan..... 17,215

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A. Calculation of the 1990 Adjusted Base Year Emission Inventory

To determine the 1990 adjusted base year inventory, Indiana used

its 1990 base year emission inventory as a starting point. This

inventory was found by EPA to meet the requirements of sections

172(c)(3) and 182(a)(1) of the Act for Clark and Floyd Counties and was

approved on June 20, 1994 (59 FR 31544). After this approval, Indiana

identified certain errors with the point and area source portions of

the inventory and made corrections to the inventory, accordingly. These

corrections were included with the Clark and Floyd 15% ROP plan

submittal and are being approved in today's action as a revision to the

SIP (See section V of this rulemaking action). Under the revised 1990

base year emissions inventory, total VOC emissions are 162,855 lbs VOC/

day. Indiana subtracted from the 1990 base year inventory biogenic

emissions and emissions from outside Clark and Floyd Counties to

determine that the 1990 ROP inventory level is 86,815 lbs VOC/day. No

pre-enactment banked emission credit was included in the inventory.

Indiana used EPA's Mobile Source Emissions Model (MOBILE)5a

emission factor model to determine the emission reductions from pre-

1990 FMVCP and 1990 RVP regulations; the 1990 ROP inventory level minus

these reductions equates to a 1990 adjusted base year inventory level

of 67,830 lbs VOC/day. Indiana's documentation includes the actual 1990

motor vehicle emissions using 1990 vehicle miles traveled (VMT) and

MOBILE5a emission factors, and the adjusted emissions using 1990 VMT

and the MOBILE5a emission factors in calendar year 1996 with the

appropriate RVP for the nonattainment area as mandated by EPA. The plan

submittal includes adequate documentation showing how the MOBILE5a

model was run to determine the expected emission reductions by 1996

from pre-1990 FMVCP and 1990 RVP.

B. 1996 ROP Target Emission Level

To calculate the 1996 target emission level for Clark and Floyd

Counties, Indiana first multiplied the 1990 adjusted base year

inventory by 0.15 to determine that the 15% required emission reduction

by 1996 is 10,175 lbs VOC/day. Then, 18,985 lbs VOC/day of reductions

from noncreditable control measures (pre-1990 FMVCP and 1990 RVP) were

added to the 15% required reduction to determine that the total

expected reductions by 1996 is 29,160 lbs VOC/day. Finally, Indiana

subtracted the 1996 total expected

[[Page 24819]]

emission reductions from the 1990 ROP emission inventory to determine

that the 1996 emission target level for Clark and Floyd Counties is

57,655 lbs VOC/day.

The 15% ROP plan submittal adequately documents the total expected

reductions in the nonattainment area by showing each step, discussing

any assumptions made, and stating the origin of the number used in the

calculations.

C. Projected Emission Inventory

To determine the 1996 projected emission inventory, Indiana

included in the 15% ROP plan the growth factors used together with

documentation for the assumptions made. The point, area, and non-road

mobile source emission inventories were projected using either source

supplied data, population forecasts, historical data, or, where

historical data were unavailable or not suitable to project, the U.S.

Department of Commerce Bureau of Economic Analysis (BEA) regional

growth data were used. The on-road mobile source emission inventory was

projected using MOBILE5a. The State's calculations for growth in the

on-road mobile, off-road mobile, industrial, and area source sectors

are 3,940 lbs VOC/day, 691 lbs VOC/day, 1,150 lbs VOC/day, and 1,153

lbs VOC/day, respectively, for a total of 6,934 lbs VOC/day. These

growth estimates were calculated in a manner consistent with EPA

guidance documents. The projected emissions were added to the 1990

adjusted base year inventory to determine that the 1990 projected

emission inventory level is 74,764 lbs VOC/day.

D. Creditable Reductions From Control Measures

From the calculation of the 1996 target emission level and 1996

projected emission level, Clark and Floyd Counties must reduce

emissions by 17,109 lbs VOC/day to secure the 15% ROP reduction. The

Clark and Floyd Counties 15% ROP plan does meet this requirement. The

total creditable emission reduction achieved by the 15% ROP plan is

17,215 lbs VOC/day. Emission reductions not needed to meet 15% can be

used in Clark and Floyd Counties' contingency plan or attainment plan.

The SIP submittal includes documentation of the sources or source

categories which are expected to be affected by each control measure,

the sources' projected 1996 emissions without controls, and the

assumptions used to estimate how much each control measure will reduce

the sources' 1996 emissions. These assumptions were derived primarily

from Midwest Research Institute's April 30, 1993, document entitled

``Support Document for Indiana's Clark and Floyd Nonattainment Area

1996 Rate-of-Progress Plan'' (MRI document), which was contracted by

EPA to assist Indiana in developing the 15% ROP plan.

A review of the emission reduction credit taken for each control

measure follows:

VOL Storage Rule

SIP rule 326 IAC 8-9 requires special roof design and sealing

requirements for certain VOL storage vessels. Indiana is only taking

credit from controls on fixed roof tanks located in Floyd County. The

rule's control requirements for fixed roof tanks are assumed to have an

overall control efficiency estimate of 96%, with a rule effectiveness

of 80%. An emission reduction of 142 lbs VOC/day has been claimed from

this rule, which is acceptable.

Shipbuilding and Ship Repair Rule

SIP rule 326 IAC 8-12 requires shipbuilding and ship repair

operations to comply with certain low-VOC coating requirements, coating

thinning limitations, and VOC-reducing work practices. One source,

Jeffboat, is affected by this rule. Jeffboat is required to use water

based weld-through (shop) preconstruction primer with a VOC content of

zero. This limit is significantly tighter than EPA's Control Techniques

Guideline limit of 5.42 lbs VOC/gallon for preconstruction primers used

in this source category (see 61 FR 44050, August 27, 1996). In addition

to documentation contained in the submittal, Indiana submitted

supplemental documentation showing that the rule's control measures

have an estimated 73% VOC control efficiency. For the 15% ROP plan,

however, Indiana conservatively took an overall 50% VOC emission

reduction from the source's 1990 emission level. An emission reduction

claim of 1,164 lbs VOC/day for this rule is acceptable.

Wood Furniture Coating Rule

SIP rule 326 IAC 8-11 requires wood furniture coating operations to

comply with certain low-VOC coating requirements and VOC-reducing work

practices. The MRI document estimated that the rule's control

requirements would result in an overall 55% VOC emission reduction.

However, based on discussions with wood furniture coaters in Clark and

Floyd Counties, Indiana has determined that an overall control

efficiency of 32% is a more accurate estimate. The rule effectiveness

is assumed to be 80%. An emission reduction claim of 2,445 lbs VOC/day

from this rule is acceptable.

Federal AIM Coatings Rule

Pursuant to section 183(e) of the Act, EPA proposed on June 25,

1996 (61 FR 32729) a national rule requiring manufacturers of AIM

coatings to meet certain VOC content limitations. The March 7, 1996,

EPA memorandum ``Update on the Credit for the 15 Percent Rate-of-

Progress Plans for Reductions from the Architectural and Industrial

Maintenance Coatings Rule'' allows States to take credit for a 20%

reduction in AIM coating emissions, even though promulgation of the

rule has been delayed. Based on this policy, Indiana has claimed 750

lbs VOC/day in emission reduction, which is acceptable.

Automobile Refinishing Rule

SIP rule 326 IAC 8-10 requires automobile and mobile equipment

refinishing shops to use lower VOC coatings, less-emitting spray-gun

and spray-gun cleaning equipment, and improved work practices to reduce

VOC. To improve rule effectiveness, this rule also requires refinishing

coating suppliers in the area to sell only coatings which meet the VOC

limits required in the rule. In addition to documentation contained in

the submittal, Indiana submitted supplemental documentation which

indicates that an overall 77.8% emission reduction can be expected from

all the control measures required by this rule, with 100% rule

effectiveness. The emission reduction claimed for this rule, 1,172 lbs

VOC/day, is acceptable.

Low RVP Gasoline (7.8 PSI) Rule

SIP rule 326 IAC 13-3 requires gasoline sold in Clark and Floyd

Counties to comply with a 7.8 RVP standard during the ozone season.

Although this rule regulates RVP, it is not an RVP rule promulgated by

the Administrator before enactment, nor required to be promulgated

under section 211(h). Therefore, this rule is creditable under section

182(b)(1)(D). MOBILE5a was used to estimate that the emission

reductions attributable to this requirement are 3,800 lbs VOC/day from

mobile sources, and 787 lbs VOC/day from area sources, respectively.

This emission reduction claim is acceptable.

Improved I/M Program

Many states have claimed emission reductions from improvements to

pre-existing I/M programs in their 15% ROP plans because such

improvements achieve more VOC emission reductions than most, if not all

other, control

[[Page 24820]]

strategies. For many States, however, actual emission reductions from

these improvements will not occur until after 1996. This is due to the

substantial amount of time needed to re-design I/M programs in response

to the September 18, 1995, revisions to EPA's I/M regulations (60 FR

48029) and/or the enactment of the National Highway Systems Designation

Act of 1995 (NHSDA), to secure State legislative approval when

necessary, and to set up the infrastructure to perform the testing

program.

Given the heavy reliance by many States on upgrading I/M to help

satisfy 15% ROP plan requirements, and the recent NHSDA and regulatory

changes regarding I/M, EPA has recognized that it is not possible for

many States to achieve emission reductions attributable to I/M

improvements by November 15, 1996. Under these circumstances,

disapproval of the 15% ROP plan SIPs would serve no purpose.

Consequently, under certain circumstances, EPA will allow States that

pursue re-design of their I/M program to receive emission reduction

credit for their 15% ROP plans, even though the emission reductions

from I/M will occur after November 15, 1996.

Specifically, the EPA will approve a 15% ROP SIP if the emission

reductions from a revised I/M program, as well as from the other 15%

ROP plan measures, will achieve the 15% level as soon after November

15, 1996, as practicable. To make this ``as soon as practicable''

determination, the EPA must determine that the 15% ROP plan contains

all VOC control strategies that are practicable for the nonattainment

area in question and that meaningfully accelerate the date by which the

15% level is achieved. The EPA does not believe that measures

meaningfully accelerate the 15% date if they provide only an

insignificant amount of reductions.

Revisions to Clark and Floyd Counties' I/M program (326 IAC 13-1.1)

were approved by EPA on March 19, 1996 (61 FR 11142). The State's I/M

contract requires that testing vehicles under the improved program

begin in July 1997. A single contractor, Envirotest, Inc., operates a

test-only centralized network for inspections and re-inspection. The

Indiana I/M program requires coverage of all 1976 and newer gasoline

powered light duty passenger cars and light duty trucks up to 9,000

pounds Gross Vehicle Weight Rating (GVWR). The State's program requires

that all applicable 1981 and newer vehicles meet a transient, mass

emissions tailpipe test that includes the purge and pressure test. All

applicable model year 1976 through 1980 vehicles will be subject to a

BAR90 single-speed idle test that includes the pressure test.

EPA has analyzed Clark and Floyd Counties' improved I/M program to

predict when the emission reductions claimed in the 15% ROP plan for

the improvements will actually be secured. This analysis was based on

the methodology specified in EPA's policy memoranda, ``Date by Which

States Need to Achieve all the Reductions Needed for the 15% Plan from

I/M and Guidance for Recalculation,'' August 13, 1996, and ``Modeling

15% VOC Reduction(s) from I/M in 1999--Supplemental Guidance,''

December 23, 1996. MOBILE5b runs were used to evaluate the credit,

using inputs that reflect actual program startup. Some of the input

parameters of the modeling included: a July 1997, program start date;

start-up cutpoints as recommended by EPA; and expected evaporative test

procedures available at start-up. The State has taken credit in the

Clark and Floyd Counties 15% ROP plan for 2,200 lbs VOC/day reductions

from improvements in I/M. Based on EPA's analysis, the emission

reduction claimed will be secured by November 1999. (See EPA's August

13, 1996, policy memorandum titled ``Date by Which States Need to

Achieve all the Reductions Needed for the 15% Plan from I/M and

Guidance for Recalculation,'' for further discussion on the

acceptability of the November 1999 date).

To determine whether there are other available potential control

measures which can meaningfully accelerate the date by which 15%

emission reduction in Clark and Floyd Counties can be achieved, EPA

compared the Clark and Floyd Counties 15% ROP plan with control

measures included in 15% ROP plans nation-wide, which are listed in

EPA's report, ``Sample City Analysis: Comparison of Enhanced I/M

Reductions Versus other 15 Percent ROP Plan Measures,'' December 12,

1996, referenced in EPA's policy document ``15% VOC SIP Approvals and

the `As Soon As Practicable' Test,'' February 12, 1997. Based upon the

report, EPA believes that there are no other potential control measures

beyond those already included in the Clark and Floyd 15% ROP plan which

can secure a significant amount of emission reduction before November

1999.

Because Indiana's improved I/M program will secure emission

reductions claimed under the Clark and Floyd Counties 15% ROP plan by

November 1999, and there are no other potential control measures which

can meaningfully accelerate the achievement of 15% reduction in the

counties before November 1999, the EPA finds that the Clark and Floyd

Counties 15% ROP plan does secure 15% emission reductions as soon as

practicable. On this basis, the emission reduction claimed under Clark

and Floyd Counties' 15% ROP plan for improved I/M is approvable.

Commuter Credits, Kentucky Motorists

The 1990 base year inventory includes emissions from VMT driven in

Clark and Floyd Counties by Louisville, Kentucky, motorists. Two post-

1990 control measures implemented in Louisville have reduced emissions

from these motorists: reformulated gasoline and I/M pressure checks.

MOBILE5a was used to estimate the emission reduction in Clark and Floyd

Counties associated with these control measures, and the input and

output files are included in the SIP submittal. The emission reduction

claimed from this program, 700 lbs VOC/day, is acceptable.

Ridesharing Program

The Clark and Floyd Counties 15% ROP plan takes credit for a

ridesharing program, called the ``Commuter Pool,'' which affects

commuters in Clark and Floyd Counties. The Commuter Pool program

provides companies and employees with technical and financial

assistance in implementing car-pool and van-pool commuting

arrangements. The program covers the entire Louisville metropolitan

area and is administered by the Kentuckiana Regional Planning and

Development Agency (KIPDA), the Metropolitan Planning Organization

(MPO) for the area. The program is programmed and funded in the

Louisville metropolitan area's Horizon 2020 Transportation Improvement

Plan and fiscal year (FY) 1997-2000 Transportation Improvement Program

(TIP). The rideshare program is partly funded through the federal

Congestion Mitigation and Air Quality Improvement Program

(CMAQ).4

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

\4\ MPOs can utilize United States Department of Transportation

(DOT) funds from CMAQ. CMAQ is a federal program which provides

funding for transportation related projects and programs designed to

contribute to attainment of air quality standards.

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

To demonstrate emission reductions achieved by this program in

Clark and Floyd Counties, Indiana submitted an air quality analysis

from KIPDA which was developed using a similar methodology used to

evaluate the FY 1994-1997 TIP for the Louisville metropolitan area. As

part of this analysis, KIPDA isolated the impacts of the ridesharing

program on roadways in Clark and Floyd Counties regardless of

[[Page 24821]]

whether employment locations are based in Indiana or Kentucky. This

impact is estimated to be an emission reduction of 55 lbs VOC/day.

This program was submitted with the Clark and Floyd 15% ROP plan as

a transportation control measure (TCM) to be included in the SIP. EPA

is, in today's action, approving the TCM as a SIP revision (see section

V of the rulemaking). The TCM has been implemented since 1994 and was

initially programmed and funded in the Louisville metropolitan area

1994-1997 TIP. This program's continued operation will be ensured

through federal transportation conformity requirements. The emission

reduction claimed from the program is acceptable.

Stage II Gasoline Vapor Recovery Rule

SIP rule 326 IAC 8-4-6 requires facilities that sell more than

10,000 gallons of gasoline per month to operate Stage II gasoline vapor

recovery systems certified to have a control effectiveness of at least

95%. Indiana has estimated that the rule has an 84% program in-use

efficiency, accounting for annual inspection program effects and the

exemption of facilities with a monthly gasoline throughput of less than

10,000 gallons. The State's emission reduction claim of 2,290 lbs VOC/

day from this rule is acceptable.

Residential Open Burning Rule

Under SIP rule 326 IAC 4-1, residential open burning is banned in

Clark and Floyd Counties. Indiana estimated that this rule would reduce

open burning emissions by 80%, or 704 lbs VOC/day, which is acceptable.

MSW Landfill Rule

SIP rule 326 IAC 8-8 applies to new and existing MSW landfills

emitting greater than 55 tons of non-methane organic compounds per year

and with a minimum design capacity of 100,000 megagrams of solid waste.

The rule requires the operation of a landfill gas collection system and

combustion device. Based on a destruction efficiency of 98% and

collection efficiencies ranging from 50% to 60%, Indiana estimated that

an overall VOC emission control efficiency range of 49% to 59% may be

achieved, with a rule effectiveness of 80%. The State has claimed 345

lbs VOC/day in emission reduction from this rule, which is acceptable.

Rhodes Construction Permits

Rhodes, located in Charlestown, Clark County, operates a heatset

web offset printing operation. In 1990, the source was emitting

approximately 125 tons of VOC per year after controls. Beginning in

October 15, 1991, Rhodes began a series of replacements and new

installation of presses. Rhodes has been issued three construction

permits, CP 019-2110, CP 019-2696, and CP 019-4362, in accordance with

326 IAC 2-1-3, to replace and install presses. These permits require

Rhodes to improve its VOC emission control by installing and operating

two thermal incinerators with a 98% VOC destruction efficiency to

control ink emissions from all presses in the plant.

Indiana estimated emission reductions from the VOC control

improvements using a July 1, 1994, report submitted by Rhodes to IDEM

pursuant to the State's emission statement program.\5\ This report was

based upon stack test data with one of the new thermal incinerators in

operation. IDEM inspectors quality assured the report and found it

acceptable. Using software designed to calculate annual emissions from

data submitted under the emission statement program, IDEM determined

that in 1994 Rhodes was emitting 13.5 tons of VOC per year after

controls, representing a 111.5 ton VOC/year reduction from 1990 levels.

IDEM used an EPA conversion equation (to account for emissions per

summertime day) to determine that the new controls at Rhodes have

reduced emissions by 771 lbs VOC/day.

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

\5\ Indiana's emission statement program (326 IAC 2-6) was

adopted pursuant to section 182(a)(3)(B) of the Act. Under this

program, owners and operators of stationary sources of VOC or oxides

of nitrogen (NOx) are required to provide annual

statements, in a format required under 326 IAC 2-6, showing actual

emissions of NOx and/or VOC from the sources. EPA

approved Indiana's emission statement program on June 10, 1994 (59

FR 29953).

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

Indiana submitted the Rhodes construction permits with the Clark

and Floyd Counties 15% ROP plan and claimed a 661 lbs VOC/day emission

reduction from the permits. In today's action, EPA is approving the

Rhodes construction permits as revisions to the Indiana ozone SIP (see

section V of this rulemaking action). It should be noted that Indiana's

15% ROP plan submittal states the total reduction from Rhodes as 865

lbs VOC/day. However, IDEM has subsequently indicated to EPA that the

emission reduction from Rhodes which should have been claimed in the

submittal is 771 lbs VOC/day. In today's action, EPA is approving an

771 lbs VOC/day emission reduction which can be credited toward ROP.

Since Indiana claimed 661 lbs VOC/day in emission reduction from Rhodes

in the 15% ROP plan submittal, the remaining 110 lbs/day can be used

toward meeting Clark and Floyd Counties' attainment demonstration or

contingency plan requirements.

E. Enforceability Issues

All measures and other elements in the SIP must be enforceable by

the State and EPA (see sections 172(c)(6), 110(a)(2)(A) of the Act, and

57 FR 13556). The EPA criteria addressing the enforceability of SIPs

and SIP revisions were stated in a September 23, 1987, memorandum (with

attachments) from the Assistant Administrator for Air and Radiation

(see 57 FR 13541). Nonattainment area plan provisions must also contain

a program that provides for enforcement of the control measures and

other elements in the SIP [see section 110(a)(2)(C) of the Act].

The control measures included in the Clark and Floyd Counties 15%

ROP plan have been fully adopted by Indiana and have been submitted to

EPA as a revision to the State's ozone SIP. The EPA has independently

reviewed each control measure to determine conformance with SIP

requirements under section 110 and part D of the Act, and the measure's

overall enforceability. Rulemaking action on each control measure is as

follows:

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

Control measure Date of EPA approval

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

VOL Storage Vessel Rule (326 January 17, 1997 (62 FR 2593)

IAC 8-9).

Shipbuilding and Ship Repair January 22, 1997 (62 FR 3216)

Rule (326 IAC 8-12).

Wood Furniture Coating Rule October 30, 1996 (61 FR 55889)

(326 IAC 8-11).

Federal Architectural and Proposed federal regulation for which

Industrial Maintenance Indiana can take credit (See March 7,

Coatings Rule. 1996, memorandum from John Seitz,

Director, Office of Air Quality Planning

and Standards to Regional Division

Directors).

Automobile Refinishing Rule June 13, 1996 (61 FR 29965)

(326 IAC 8-10).

[[Page 24822]]

Low RVP Gasoline Rule (326 February 9, 1996 (61 FR 4895)

IAC 13-3).

Improved Basic I/M (326 IAC March 19, 1996 (61 FR 11142)

13-1.1).

Commuter Credits, Kentucky February 16, 1994 (59 FR 7716) (Federal

Motorists. reformulated gasoline)

July 28, 1995 (60 FR 38700) (Louisville

Hybrid I/M)

KIPDA Ridesharing Program.... Date of EPA approval action is date of

today's Federal Register. See discussion

below.

Stage II Vapor Recovery (326 April 28, 1994 (59 FR 21942)

IAC 8-4-6).

Residential Open Burning Ban February 1, 1996 (61 FR 3581)

(326 IAC 4-1).

Municipal Solid Waste January 17, 1997 (62 FR 2591)

Landfills (326 IAC 8-8).

Rhodes Construction Permits.. Date of EPA approval action is date of

today's Federal Register. See discussion

below.

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

F. Transportation Conformity 1996 Mobile Source Emissions Budget

Section 176(c) requires States to submit SIP revisions establishing

the State's criteria and procedures for assessing the conformity of

federal actions (transportation and general) to the SIP's purpose of

eliminating or reducing the severity and number of violations of the

National Ambient Air Quality Standards and achieving expeditious

attainment of such standards. These conformity SIP revisions must

assure that federal actions will not: (1) cause or contribute to any

new violation of any standard in any area, (2) increase the frequency

or severity of any existing violation of any standard in any area, or

(3) delay timely attainment of any standard or any required interim

emission reductions or other milestones in any area. To assure

conformity with the SIP, conformity analyses for transportation

projects must take into account the amount of on-road mobile source

emissions that can be emitted in accordance with SIP emission reduction

milestones. For purposes of EPA transportation conformity

determinations, the 1996 emission level for on-road mobile sources that

is achieved from the 15% ROP plan constitutes the 1996 VOC mobile

source emission budget for Clark and Floyd Counties. This level, which

is derived from MOBILE5a using 1996 estimated emissions with improved

I/M, 7.8 low RVP, and Kentucky commuter credits, is 17,340 lbs VOC/day.

Therefore, final approval of the 15% ROP plan also approves the 1996

mobile source VOC emission budget.

For years after 1996, conformity determinations addressing VOCs

must demonstrate consistency with this plan revision's motor vehicle

emissions budget, and satisfaction of the build/no-build test, as

defined under 40 CFR part 93.

G. Conclusion

The EPA has reviewed the Clark and Floyd Counties 15% ROP plan SIP

revision submitted to EPA as described above, and finds that the plan

satisfies the applicable requirements of the Act, as well as EPA

guidance for such plans. Therefore, the EPA, in this action, is

approving these plans as a revision to the Indiana ozone SIP.

V. Other Rulemaking Actions

A. Corrections to 1990 Base Year Emissions Inventory

Corrections for Clark and Floyd Counties 1990 base year emissions

inventory were submitted as Appendix B in the 15% ROP plan submittal.

In today's action, EPA is approving the revised 1990 base year

emissions inventory as a revision to the SIP. The following table

explains the revisions:

Revisions to Clark and Floyd Counties' 1990 Base-Year Emission Inventory

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

Sources affected Explanation of changes

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

Service station tank breathing Controlled emissions from service

area sources. station tank breathing were

erroneously included in the 1990

base year emissions inventory and

have now been removed.

Ashland........................... Ashland has submitted corrected 1990

base year emissions for its point

sources.

Rhodes............................ Rhodes was not included in the 1990

base year emissions inventory.

Emissions from the source have now

been added.

Louisville Hardwoods, Inc......... Because Louisville Hardwoods' 1990

emissions were less than the 10

tons VOC/year point source

inventory cut off, the source's

emissions have been shifted from

the point source inventory to the

area source inventory.

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

B. Ridesharing Program

Included as a requested SIP revision in the Clark and Floyd 15% ROP

plan submittal is a ridesharing program, called the Commuter Pool,

affecting commuters in Clark and Floyd Counties. The Commuter Pool

program provides companies and employees in the Louisville metropolitan

area (including Clark and Floyd Counties) with technical and financial

assistance in implementing car-pool and van-pool commuting

arrangements.

To take credit for the ridesharing program, the program must be

approved by EPA as a Transportation Control Measure (TCM) and

incorporated in the SIP. EPA's requirements for TCMs are summarized in

the June 1993, EPA guidance document, Guidance on Preparing Enforceable

Regulations and Compliance Programs for the 15 Percent Rate-of-Progress

Plans. The required elements are (1) A complete description of the

measure, and, if possible, its estimated emissions reduction benefits;

(2) evidence that the measure was properly adopted by a jurisdiction(s)

with legal authority to execute the measure; (3) evidence that funding

will be available to implement the measure; (4) evidence that all

necessary approvals have been obtained from all appropriate government

offices; (5) evidence that a complete schedule to plan, implement, and

enforce the measure has been adopted by the implementing agencies; and

(6) a description of any monitoring program to evaluate the measure's

effectiveness and to allow for necessary in-place corrections or

alterations.

The Commuter Pool program, as submitted by Indiana in the Clark and

Floyd 15% ROP plan submittal, fully satisfies TCM requirements based on

the following: (1) A complete description of the program and estimated

emission reduction are provided in the documentation submitted with the

ROP plan; (2) the measure has been adopted

[[Page 24823]]

by KIPDA, the authorized MPO for Louisville; (3) the program is

currently operating and has received federal CMAQ program money for

operation; (4) all necessary approvals have been obtained from DOT on

the FY 1997-2000 TIP and Horizon 2020 Transportation Plan (which

includes the TCM); (5) the Transportation Plan and TIP constitute the

schedule, implementation mechanism, and also the enforcement mechanism

for the TCM (the conformity provisions in 40 CFR part 93 provide that

TCMs in an approved SIP must be implemented on schedule before a

conformity determination can be made by DOT); and (6) the CMAQ program

requires monitoring of programs funded under CMAQ and annual reports to

DOT on achieved emission reductions. The Commuter Pool TCM, therefore,

is approvable.

C. Rhodes Permits

Rhodes' heatset web offset printing operations are subject to three

construction permits issued under 326 IAC 2-1 of the Indiana rules. The

construction permits are CP 019-2110, CP 019-2696, and CP 019-4362,

issued October 15, 1991, December 18, 1992, and April 21, 1995,

respectively. These permits were submitted with the Clark and Floyd 15%

ROP plan as a revision to the SIP.

Under the construction permits, Rhodes must not operate its presses

unless the incinerators are functioning properly. Each incinerator must

meet a 98% VOC destruction efficiency, and must maintain a combustion

temperature at or above 1400 degrees Fahrenheit (760 degrees Celsius)

to ensure continuous compliance with the destruction efficiency. The

plant must meet a VOC capture efficiency of 86%, assuring an overall

efficiency of 84% minimum. Rhodes was required to conduct an initial

compliance stack test for each incinerator. Daily record keeping of the

incinerators' minimum operating inlet temperature and minimum duct

velocity must be kept for at least two years. Exceedances must be

reported to IDEM.

These permits are being approved in today's action as revisions to

the Indiana ozone SIP.

VI. Final Rulemaking Action

The EPA approves Indiana's 15% ROP plan for Clark and Floyd

Counties as a revision to the SIP. For transportation conformity

purposes, final approval of this 15% ROP plan also approves the 1996

mobile source emission budget of 16,785 lbs VOC/day. EPA also approves

corrections to Clark and Floyd Counties 1990 base year emissions

inventory, the Rhodes permits, and the ridesharing program TCM included

in the 15% ROP submittal.

The EPA is publishing this action without prior proposal because

EPA views this as a noncontroversial revision and anticipates no

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

Register publication, the EPA is proposing to approve the SIP revision

should adverse or critical comments be filed. This action will be

effective on July 7, 1997 unless, by June 6, 1997, adverse or critical

comments on the approval are received.

If the EPA receives adverse comments, the approval will be

withdrawn before the effective date by publishing a subsequent

rulemaking that will withdraw the final action. All public comments

received will be addressed in a subsequent final rule based on this

action serving as a proposed rule. The EPA 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 on

July 7, 1997.

Nothing in this action should be construed as permitting, 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.

VII. Administrative Requirements

A. Executive Order 12866

This action has been classified as a Table 3 action for signature

by the Regional Administrator under the procedures published in the

Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a

July 10, 1995, memorandum from Mary D. Nichols, Assistant Administrator

for Air and Radiation. The Office of Management and Budget (OMB) has

exempted this regulatory action from Executive Order 12866 review.

B. Regulatory Flexibility

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

EPA must prepare a regulatory flexibility analysis assessing the impact

of any proposed or final rule on small entities. 5 U.S.C. sections 603

and 604. Alternatively, EPA 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.

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

certifies 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 flexibility analysis would

constitute Federal inquiry into the economic reasonableness of the

State action. The Clean Air Act forbids EPA to base its actions

concerning SIPs on such grounds. Union Electric Co. v. EPA., 427 U.S.

246, 256-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

Under Section 202 of the Unfunded Mandates Reform Act of 1995,

signed into law on March 22, 1995, EPA must undertake various actions

in association with 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. This Federal action approves pre-existing requirements under

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

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

sector, result from this action.

D. Submission to Congress and the General Accounting Office

Under Section 801(a)(1)(A) as added by the Small Business

Regulatory Enforcement Fairness Act of 1996, EPA submitted a report

containing this rule and other required information to the U.S. Senate,

the U.S. House of Representatives and the Comptroller General of the

General Accounting Office prior to publication of the rule in today's

Federal Register. This rule is not a major rule as defined by Section

804(2).

F. Petitions for Judicial Review

Under section 307(b)(1) of the Act, petitions for judicial review

of this action must be filed in the United States Court of Appeals for

the appropriate circuit by July 7, 1997. 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

[[Page 24824]]

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, Hydrocarbons,

Intergovernmental relations, Incorporation by reference, Ozone,

Reporting and recordkeeping requirements.

Dated: April 16, 1997.

William E. Muno,

Acting Regional Administrator.

For the reasons stated in the preamble, 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.

2. Section 52.770 is amended by adding paragraph (c)(118) to read

as follows:

Sec. 52.770 Identification of Plan.

* * * * *

(c) * * *

(118) On July 12, 1995, Indiana submitted as a revision to the

State Implementation Plan construction permits CP 019-2110, CP 019-

2696, and CP 019-4362, issued under Indiana rule 326 IAC 2-1. The

permits establish volatile organic compound control requirements for

Rhodes Incorporated's heatset web offset printing presses.

(i) Incorporation by reference. Construction Permit CP 019-2110,

issued and effective October 15, 1991; Construction Permit CP 019-2696,

issued and effective December 18, 1992; Construction permit CP 019-

4362, issued and effective April 21, 1995.

3. Section 52.777 is amended by adding paragraph (m) to read as

follows:

Sec. 52.777 Control Strategy: Photochemical Oxidants (hydrocarbon).

* * * * *

(m) On July 12, 1995, Indiana submitted a 15 percent rate-of-

progress plan for the Clark and Floyd Counties portion of the

Louisville ozone nonattainment area. This plan satisfies Clark and

Floyd Counties' requirements under section 182(b) of the Clean Air Act,

as amended in 1990.

4. Section 52.777 is amended by adding paragraph (n) to read as

follows:

Sec. 52.777 Control Strategy: Photochemical Oxidants (hydrocarbon).

* * * * *

(n) On July 12, 1995, Indiana submitted corrections to the 1990

base year emissions inventory for Clark and Floyd Counties. The July

12, 1995, corrections are recognized revisions to Indiana's emissions

inventory.

5. Section 52.777 is amended by adding paragraph (o) to read as

follows:

Sec. 52.777 Control Strategy: Photochemical Oxidants (hydrocarbon).

* * * * *

(o) On July 12, 1995, Indiana submitted as a revision to the

Indiana State Implementation Plan a ridesharing transportation control

measure which affects commuters in Clark and Floyd Counties.

[FR Doc. 97-11908 Filed 5-6-97; 8:45 am]

BILLING CODE 6560-50-P