Approval and Promulgation of State Implementation Plan; Indiana

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN53-3; FRL-5860-4]

Approval and Promulgation of State Implementation Plan; Indiana

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: On June 26, 1995, and June 13, 1997, the State of Indiana

submitted a Rate-Of-Progress (ROP) plan to reduce Volatile Organic

Compounds (VOC) emissions in Lake and Porter Counties by 15 percent (%)

from 1990 baseline levels by November 15, 1996, as a requested revision

to the Indiana State Implementation Plan (SIP). On April 3, 1997, EPA

issued a direct final approval of the Lake and Porter Counties 15% ROP

plan, 3% contingency plan, and an Indiana Agreed Order requiring VOC

emission controls on Keil Chemical Division, Ferro Corporation, located

in Lake County (Keil). On the same day (April 3, 1997) EPA proposed

approval and solicited public written comment on these requested SIP

revisions. This proposed rule established a 30-day public comment

period noting that if adverse comments were received regarding the

direct final rule EPA would withdraw the direct final rule and publish

an additional final rule to address the public comments. Adverse

comments were received during the public comment period relating to the

Keil SIP revision. EPA withdrew the direct final rule on May 23, 1997.

In today's action, EPA is finalizing approval of the 15% ROP plan.

Final action on the 3% contingency plan and the Keil agreed order will

be addressed in a subsequent rulemaking action. The 15% ROP plan has

reduced VOC emissions in Lake and Porter Counties by approximately

68,242 pounds (lbs) per day. VOC emissions combine with oxides of

nitrogen in the atmosphere to form ground-level ozone, a pollutant

which can cause inflammation of the lungs, decrease lung capacity, and

aggravate asthma. The rationale for this rulemaking is discussed below.

DATES: This final rule is effective August 18, 1997.

ADDRESSES: Copies of the SIP revision request are available for

inspection at the following address: (It is recommended that you

telephone Mark J. Palermo at (312) 886-6082, before visiting the Region

5 office.)

U.S. Environmental Protection Agency, Region 5, Air and Radiation

Division, 77 West Jackson Boulevard, Chicago, Illinois, 60604.

FOR FURTHER INFORMATION CONTACT: Mark J. Palermo, Environmental

Protection Specialist, Air Programs Branch (AR-18J) (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 emissions that have been reduced by: (1)

The 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 (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 subject to the 15%

ROP plan requirement: 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.

This rulemaking action addresses only the plan for Lake and Porter

Counties; the Clark and Floyd Counties 15% ROP plan was approved on May

7, 1997 (62 FR at 24815).

II. Indiana's 15% ROP Submittal

The Act requires States to observe certain procedural requirements

in developing SIPs and SIP revisions for submission to EPA. Section

110(a)(2)

[[Page 38458]]

and section 110(l) of the Act require that each State's SIP revision

submitted under the Act be adopted by the State after reasonable notice

and public hearing. The State of Indiana submitted a portion of the

Lake and Porter Counties 15% ROP SIP revision on January 13, 1994. 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). However, the submittal was deemed incomplete because the

plan had not yet gone through public hearing and did not include fully

adopted rules for all of the plan's control measures. Indiana held a

public hearing on the plan on March 29, 1994. A summary of comments

from that hearing and the Indiana Department of Environmental

Management's (IDEM) response was submitted on July 5, 1994. IDEM sent a

supplemental submittal on June 26, 1995, which included fully adopted

rules for the Lake and Porter Counties 15% ROP plan. In a July 17,

1995, letter to Indiana, the State was notified that the SIP submittal

was deemed complete.

III. Criteria for 15% ROP 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, 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

[[Page 38459]]

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

average) 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 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 either

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.

IV. Prior Rulemaking Action

On April 3, 1997, EPA published a direct final rulemaking action

approving the Lake and Porter Counties 15% ROP plan and a 3%

contingency measure plan for Lake and Porter Counties (62 FR 15844). As

part of the 15% ROP plan, Indiana also submitted an agreed order

requiring VOC emission controls on Keil Chemical Division, Ferro

Corporation, located in Lake County (Keil). On the same day (April 3,

1997), EPA proposed approval and solicited public comment on these

requested SIP revisions (62 FR 15867). The proposed rule established a

30-day public comment period, noting that if adverse comments were

received regarding the

[[Page 38460]]

direct final rule EPA would withdraw the direct final rule and publish

an additional final rule to address the public comments. The only set

of comments received during the public comment period was from the

Ferro Corporation regarding the Keil agreed order. Because these

comments raised questions about the anticipated emissions reductions of

the agreed order, EPA withdrew the direct final rulemaking on May 23,

1997 (62 FR at 28349).

Indiana originally claimed emission reductions from the Keil agreed

order in the Lake and Porter 15% plan. The July 29, 1994, agreed order

(Cause No. A-2250) requires the facility to meet certain control

requirements. The agreed order was submitted with the 15% ROP plan for

incorporation into the Indiana SIP so that the State could properly

take credit for Keil's emission reductions.

Ferro Corporation's comment supported the Lake and Porter Counties

15% ROP plan, but requested that EPA recognize that Keil's VOC control

installed pursuant to the agreed order has achieved more emission

reductions than required under federal and State control regulations,

and, consequently, the excess emission reductions ``should be credited

as a banked pollutant for the future.'' Ferro Corporation also

indicated that EPA and Indiana are still reviewing Keil's compliance

determination method for the 25 tons per year VOC emission limit under

the agreed order. Ferro requested that EPA agree that Keil should not

be held in violation of the SIP for the 25 tons per year limit if EPA

and Indiana determine that Keil should use a different compliance

determination method.

EPA is currently evaluating the Ferro Corporation comments. To

expedite final approval of the 15% ROP plan, Indiana submitted a letter

on June 13, 1997, which states that it has changed the allocation of

control measure reductions between the Lake and Porter Counties 15% ROP

plan and the 3% contingency plan. The agreed order emission reductions

(5327 lbs VOC per day) will be shifted from the 15% ROP plan to the 3%

contingency plan, and remaining reductions from Inland Steel Flat

Product's coke oven shutdown (759 lbs VOC per day) and the State's

automobile refinishing rule (4619 lbs VOC per day) have been shifted

from the 3% contingency plan to the 15% ROP plan. The amount of

emission reductions claimed for the coke oven shutdown and automobile

refinishing rule was found by EPA to be acceptable in the April 3,

1997, direct final approval.

In today's action, EPA is promulgating final approval of the 15%

ROP plan as adjusted by Indiana's June 13, 1997, letter. Because

shifting emission reduction credit between the two plans does not

affect the implementation of the plans' control measures, nor the

achievement of 15% reduction required under the Act, reproposing

approval of the 15% ROP plan is unnecessary. The 3% contingency plan is

a separate requirement of the Act, and approval of the 3% contingency

plan is not a prerequisite for approval of the 15% ROP plan. EPA will

promulgate a final rulemaking on the 3% contingency plan once EPA

completes its evaluation of the Ferro Corporation comments.

V. Analysis of Lake and Porter Counties 15% ROP Plan

Indiana's 15% ROP summary for Lake and Porter Counties is provided

in the following table. This table has been adjusted from the table

which appeared in the direct final to reflect the State's June 13,

1997, letter. (See part IV of this rulemaking).

15% ROP Summary for Lake and Porter Counties

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

Lbs Voc/

Calculation of Reduction needs by 1996 DayAY

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1990 Lake and Porter Counties Total VOC Emissions.......... 424,721

1990 ROP Emissions (Anthropogenic only).................... 381,841

1990-1996 Noncreditable Reductions (Reductions from 1990

RVP and Pre-1990 FMVCP Regulations)....................... 58,838

1990 Adjusted Base Year Emissions (1990 ROP Emissions minus

Noncreditable Reductions)................................. 323,003

15% of Adjusted Base Year Emissions........................ 48,450

Total Required Emission Reductions by 1996 (15% of Adjusted

Base Year Emissions plus Noncreditable Reductions)........ 107,288

1996 Target Level (1990 ROP Emissions minus Total Required

Emission Reductions by 1996).............................. 274,553

1996 Projected Emissions (1990 Adjusted Base Year Emissions

plus Growth Factors)...................................... 342,683

Reduction needs by 1996 to achieve 15 percent net of growth

(1996 Projected Emission minus 1996 Target Level)......... 68,130

Creditable Reduction from Mandatory Controls

Mobile Sources:

Enhanced Vehicle Inspection and Maintenance (I/M)

Program (326 IAC 13-1.1).............................. 6,817

Federal Reformulated Gasoline Program (40 CFR Part 80,

Subpart D)................................................ 14,905

Area Sources:

Stage II Gasoline Vapor Recovery (326 IAC 8-4-6)....... 9,824

Federal Architectural and Industrial Maintenance (AIM)

Coatings Rule......................................... 2,920

Point Sources:

Non-Control Techniques Guideline (CTG) Reasonably

Available Control Technology (RACT) Rule (326 IAC 8-7) 4,559

Subtotal--Reductions from Mandatory Controls........... 39,025

Creditable Reductions From Non-Mandatory Controls

Point Sources:

Coke Oven Battery Shutdowns at Inland Steel Flat

Products (326 IAC 6-1-10.1(k)(5))..................... 23,609

Area Sources:

Automobile Refinishing (326 IAC 8-10).................. 4,679

Residential Open Burning (326 IAC 4-1)................. 929

Subtotal--Reduction From Non-Mandatory Controls........ 29,217

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Total Creditable Reductions from 15% ROP plan........ 68,242

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[[Page 38461]]

A. Calculation of the 1990 Adjusted Base Year Emission Inventory

To determine the 1990 adjusted base year inventory, Indiana used

the 1990 base year emission inventory approved by EPA on January 4,

1995 (60 FR 375), which was found to meet the requirements of sections

172(c)(3) and 182(a)(1) of the Act for Lake and Porter Counties. Total

VOC emissions estimated from this inventory are 424,721 lbs VOC/day.

Indiana subtracted biogenic emissions and emissions from outside Lake

and Porter Counties from the 1990 base year inventory to determine that

the 1990 ROP inventory level is 381,841 lbs VOC/day. No pre-enactment

banked emission credit was included in this inventory.

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

calculate the emission reductions from the pre-1990 FMVCP and 1990 RVP

regulations; these reductions were subtracted from the 1990 ROP

inventory level to find the 1990 adjusted base year inventory level of

323,003 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

includes adequate documentation showing how the MOBILE5a model was run

to calculate the expected emission reductions from FMVCP and RVP.

B. 1996 ROP Target Emission Level

To calculate the 1996 target emission level for Lake and Porter

Counties, Indiana first multiplied the 1990 adjusted base year

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

by 1996 is 48,450 lbs VOC/day. Then, 58,838 lbs VOC/day of reductions

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

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

reductions by 1996 is 107,288 lbs VOC/day. Finally, Indiana subtracted

the 1996 total required emission reductions from the 1990 ROP emission

inventory to determine that the 1996 emission target level for Lake and

Porter Counties is 274,553 lbs VOC/day.

The 15% ROP plan submittal adequately documents the calculations

used to determine the Lake and Porter Counties target level by showing

each step, discussing any assumptions made, and stating the origin of

the numbers used in the calculations.

C. Projected Emission Inventory

To determine the 1996 projected emission inventory, Indiana has

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 is

10,180 lbs VOC/day, 1,298 lbs VOC/day, 4,692 lbs VOC/day, and 3,510 lbs

VOC/day, respectively, for a total of 19,680 lbs VOC/day. These growth

estimates were calculated in a manner consistent with EPA's guidance

documents. The projected emissions were added to the 1990 adjusted base

year inventory to determine that the 1990 projected emission inventory

level is 342,683 lbs VOC/day.

D. Creditable Reductions from Control Measures

From the calculation of the 1996 target emission level and 1996

projected emission level, Indiana must reduce emissions in Lake and

Porter Counties by 68,130 lbs VOC/day, to secure the 15% ROP reduction.

The Lake and Porter Counties 15% ROP plan does meet this requirement.

The total creditable emission reductions achieved by the 15% ROP plan

are 68,242 lbs VOC/day. Emission reductions not needed to meet the 15%

ROP requirement will be applied toward achieving post-1996 ROP

reductions, leading to attainment of the ozone air quality standard.

The SIP submittal includes documentation indicating 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 the sources' 1996 emissions

would be reduced by each control measure. These assumptions were

derived primarily from Midwest Research Institute's April 30, 1993,

document entitled ``Support Document for Indiana's Lake and Porter

Nonattainment Area 1996 Rate of Progress Plan,'' which was contracted

by EPA to assist Indiana in developing the 15% ROP and contingency

plans. A review of the emission reduction credit taken for each control

measure follows:

Enhanced I/M Program

Of the 15% ROP plans originally submitted to EPA, most contain

enhanced I/M programs because they achieve more VOC emission reductions

than most, if not all other, control strategies. However, because most

States experienced substantial difficulties implementing enhanced I/M

programs, only a few States are currently actually testing cars using

the original enhanced I/M protocol.

On September 18, 1995 (60 FR 48029), EPA finalized revisions to its

enhanced I/M rule allowing States significant flexibility in designing

I/M programs appropriate for their needs. Further, Congress enacted the

National Highway Systems Designation Act of 1995 (NHSDA), which

provides States with more flexibility in determining the design of

enhanced I/M programs. The substantial amount of time needed by States

to re-design enhanced I/M programs in accordance with the final

enhanced I/M rules and/or the guidance contained within the NHSDA, to

secure State legislative approval when necessary, and set up the

infrastructure to perform the testing program has precluded States from

obtaining emission reductions from enhanced I/M by November 15, 1996.

Given the heavy reliance by many States on enhanced I/M programs to

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

regulatory changes regarding enhanced I/M programs, EPA has recognized

that it was not possible for many States to achieve the portion of the

15% ROP reductions that are attributed to enhanced I/M 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 enhanced I/M programs to

receive emission reduction credit from these programs in their 15% ROP

plans, even though the emission reductions from the I/M program will

occur after November 15, 1996.

Specifically, the EPA will approve 15% ROP SIPs if the emission

reductions from the revised, enhanced I/M programs, 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

[[Page 38462]]

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.

Indiana's enhanced I/M program for Lake and Porter Counties was

approved by EPA on March 19, 1996 (61 FR 11142), and the State began

testing vehicles under the new program on January 1, 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). All applicable 1981 and newer vehicles will be subject

to a transient, mass emissions tailpipe test that includes the purge

and pressure test. All applicable 1976 through 1980 vehicles will be

subject to a BAR90 single-speed idle test that includes the pressure

test. The I/M contractor has acquired all the emission test sites

required under the State I/M contract, and all the test stations

required have been constructed.

EPA has analyzed Indiana's enhanced I/M program to predict when the

emission reductions claimed in the Lake and Porter Counties 15% ROP

plan for the program 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 January 1, 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 Lake and Porter Counties 15% ROP plan for 6,817 lbs VOC/

day, or 3.41 tons per day reductions from enhanced 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 November 1999 date.

To determine whether there are other available potential control

measures which can meaningfully accelerate the date by which a 15%

reduction in VOC emissions in Lake and Porter Counties can be achieved,

EPA compared the Lake and Porter Counties 15% ROP and 3% contingency

plans 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 there are no other potential

control measures beyond those already included in the Lake and Porter

Counties 15% ROP and 3% contingency plans which can secure a

significant amount of emission reduction before November 1999.

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

reductions claimed under the Lake and Porter Counties 15% ROP plan by

November 1999, and because there are no other potential control

measures which can meaningfully accelerate the achievement of a 15%

reduction in the counties before November 1999, the EPA finds that the

Lake and Porter Counties 15% ROP plan does secure a 15% emission

reduction as soon as practicable. On this basis, the emission reduction

claimed for the Lake and Porter Counties enhanced I/M program under the

15% ROP plan is approvable.

Federal Reformulated Gasoline Program

The federal reformulated gasoline program (40 CFR part 80, subpart

D) requires gasoline providers in Lake and Porter Counties to sell only

gasoline which meets certain blending requirements to reduce pollution.

The VOC reduction from reformulated gasoline was determined using the

MOBILE5a model to estimate the difference between 1996 highway mobile

source emissions at RVP 9.0, the level of control upon gasoline in Lake

and Porter Counties before the reformulated gasoline requirement, and

1996 highway mobile source emissions with reformulated gasoline.

Indiana has credited a 14,905 lbs VOC/day emission reduction from this

program, which is acceptable.

Stage II Gasoline Vapor Recovery Rule

Indiana's Stage II rule (326 IAC 8-4-6) requires facilities that

sell more than 10,000 gallons of gasoline per month to operate Stage II

vapor recovery systems certified to have a control effectiveness of at

least 95%. Indiana has estimated that the rule has a 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. Indiana has credited a 9,824 lbs VOC/day emission

reduction from this rule, which 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 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 taken an emission reduction

credit of 2,920 lbs VOC/day, which is acceptable.

Non CTG RACT Rule

Indiana's Non-CTG RACT rule (326 IAC 8-7) requires VOC controls on

sources which have the potential to emit 25 tons of VOC emissions per

year, and are not already covered under an existing CTG or part of a

post-1990 CTG category.4 Sources subject to 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 98% by the addition of add-on controls

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

level of reduction equal to 81% of baseline actual emission 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 EPA. Indiana estimates that the rule's overall control

efficiency is 81%, and has a rule effectiveness of 80%. Indiana has

credited 4,559 lbs VOC/day in emission reductions from this rule, which

is acceptable.

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\4\ RACT is the lowest emission limitation that a particular

source is capable of meeting by the application of control

technology that is reasonably available, considering technological

and economic feasibility. CTGs are EPA documents which provide

recommendations on what EPA considers the presumptive norm for RACT

for particular industries. Indiana was required to adopt the Non-CTG

RACT rule by section 182(b)(2) of the Act.

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

Coke Oven Battery Shutdowns at Inland Steel Flat Products

Inland Steel is required under Indiana's Particulate Matter rule

326 IAC 6-1-10.1(k)(5) to shut down

[[Page 38463]]

numbers 6 through 11 coke batteries before 1996. The 1990 base year

inventory emissions from these coke batteries, 23,609 lbs VOC/day, are

being credited as emission reductions. These reductions are acceptable.

Residential Open Burning Rule

Under Indiana's rule 326 IAC 4-1, residential open burning is

banned in Lake and Porter Counties. Indiana estimates 80% emission

reduction and 80% rule effectiveness from this rule. An emissions

reduction credit of 929 lbs VOC/day from the rule is acceptable.

Automobile Refinishing Rule

The State 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. This documentation has been included in

the docket for this rulemaking. Indiana has taken an emission reduction

credit of 4,679 lbs VOC/day from this rule, which is acceptable.

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 Lake and Porter 15% ROP plan

have been fully adopted by Indiana and have been submitted to EPA as

revisions 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 overall enforceability

of the measure's requirements. Rulemaking action on each control

measure is as follows:

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

Control measure Date of EPA approval

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

Enhanced I/M Program (326 IAC 13-1.1).. March 19, 1996 (61 FR 11142).

Reformulated Gasoline (40 CFR Part 80, Federal regulation promulgated

Subpart D). February 16, 1994 (59 FR

7716).

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

IAC 8-4-6).

Federal AIM Coatings Rule.............. Proposed federal regulation for

which Indiana can take credit.

(See memorandum dated March 7,

1996, from John Seitz,

Director, Office of Air

Quality Planning and Standards

to Regional Air Division

Directors).

Non-CTG RACT (326 IAC 8-7)............. July 5, 1995 (60 FR 34857).

Residential Open Burning Ban (326 IAC 4- February 1, 1996 (61 FR 3581).

1).

Auto Refinishing (326 IAC 8-10)........ June 13, 1996 (61 FR 29965).

Coke Oven Battery Shutdown (326 IAC 6-1- June 15, 1995 (60 FR 31412).

10.1(k)(5)).

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

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

NAAQS and achieving expeditious attainment of such standards, and that

such activities 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 the 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 Lake and

Porter Counties. This level, which is derived from MOBILE5a using 1996

projected on-road mobile source emissions with reformulated gasoline

and enhanced I/M, is 50,015 lbs VOC/day. Therefore, final approval of

the 15% ROP plan also approves the 1996 mobile source VOC emission

budget of 50,015 lbs VOC/day.

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. Concluding Statement on 15% ROP Plan

The EPA has reviewed the Lake and Porter Counties 15% ROP plan SIP

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

satisfy the requirements of section 182(b)(1) of the Act, as well as

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

approving this plan as a revision to the Indiana ozone SIP.

VI. Final Rulemaking Action

The EPA approves Indiana's 15% ROP plan for Lake and Porter

Counties, as a revision to the SIP. For transportation conformity

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

mobile source emission budget of 50,015 lbs VOC/day. This action will

be effective on August 18, 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

The Office of Management and Budget 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

[[Page 38464]]

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).

E. 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 September 16, 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 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, Ozone.

Dated: July 8, 1997.

Michelle D. Jordan,

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 52.777 is amended by adding paragraph (k) to read as

follows:

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

* * * * *

(k) On June 26, 1995, and June 13, 1997, Indiana submitted a 15

percent rate-of-progress plan for the Lake and Porter Counties portion

of the Chicago-Gary-Lake County ozone nonattainment area. This plan

satisfies the counties' requirements under section 182(b)(1) of the

Clean Air Act, as amended in 1990.

[FR Doc. 97-18972 Filed 7-17-97; 8:45 am]

BILLING CODE 6560-50-P