# INDIANA DEPARTMENT OF

# ENVIRONMENTAL MANAGEMENT
WemakeIndiana a cleaner, healthierplace to live.

'tchellE. Daniels,

### Jr. over nor


### Thomas 

### W.Easterly Commissioner 100North SenateAvenue Indianapolis, Indiana 46204 (3 17) 232-8603 (800) 45 1-6027 www.IN.gov/idem



### July 6, 2007



## Mary Gade Regional Administrator U.S. EPA, Region 5 77 

## West Jackson Boulevard Chicago,Illinois 60604

Re: State ImplementationPlan Submittal for IndianaRegardingRegulatoryFlexibilityforthe Environmental StewardshipProgram, ComprehensiveLocalEnvironmental Action Network CommunityChallengeProgram, and Incorporationby ReferenceofNEPT Incentivesin 326LAC 

## 25-2

Dear Ms. Gade:

Pursuantto Section 110 of the 1990

## CleanAir Act Amendments and Title 13

## ofthe Indiana Code, the IndianaDepartment ofEnvironmental Managrnent (IDEM)herewith submits a 

## request for an amendmentto the Indiana stateimplementationplan (SIP) for incentivesfor regulatory flexibilityfor the Environmental Stewardship Program, ComprehensiveLocal EnvironmentalAction Network CommunityChallengeProgram, and incorporationby reference ofNational EnvironmentalPerformanceTrackProgram (NEPT) incentives in 326 IAC 25-2. This amendment consistsofthree provisions for the ESP and CLEAN programs described in 326 IAC 25-1, accomplished through one rulemaking.

TheAir Pollution Control Board adopted as final a new article for two voluntary programs similarto the federalNEPT program. Because someofthe incentivesin 326IAC 25-2 affect provisionspreviously approved into Indiana's SIP, IDEM is requesting approval of only these amendments into the SIP. Specifically,I

## request that U.S. EPA amend Indiana's state implementationplan to include the followingprovisions: 1. 326 IAC 25-2-1, incorporationby reference ofa federal incentiveforNEPT members. 2. 326 IAC 25-2-3 as it appliesto ESP and CLEANmembersregardingmonthly compliancemethods for volatile organic compoundsin 326 IAC 8-1-2(a)(7). 3. 326 IAC 25-2-4 as it appliesto FESOPs in 326 IAC 2-8-1l.l(e) and 326IAC 2-8- 11.1(f)(l)(J)regarding pollutionprevention projects. IDEM is not seekingreview and approval ofthe incentive in 326 IAC 25-2-2 as it appliesto

RqledPaper 

## @ An Equal OpportunityEmployer PlmeRecyle 

### 0

## FederallyEnforceable State OperatingPermits (FESOPs) in 326 IAC 2-1.1-9.5 and 326 IAC 2-8- 4(2) regarding ten-year permit terms at this timebecause it will be part ofa futureSIP submittal with a wider applicability. 

## IDEM is not seekingapproval into the SIP of any other part ofthis rulemaking action,howeverthe entirerule isprovided for your information.



## In order to assist your review ofthis state implementation plan submission, a list of supportingdocumentation is attached. Please contact Pat Troth, Air Rules Section Chief, Office ofAir Quality, at (317)

## 233-568 1 ifyou have questionsconcemyssubmission.

Commissioner

cc: John Mooney SIP file

## LIST OF SUPPORTINGDOCUMENTATION

AttachmentA:

Attachment

## B:

Attachment C:

Attachment D:

Attachment 

## E:

AttachmentF:

Attachment 

## G:

Attachment H :


## Attachment

## I: Final rule as published in the IndianaRegister on June 13,2007

## (DIN: 200706 13-IR-326050232FRA).
Signaturepage with the signatureofthe chairman of the airpollution controlboard.

SecondNotice ofComment Period includingdraft rule and notice offirst public hearing aspublished in the IndianaRegister on June 1,2006(29 IR 3109).

Publishers' affidavits.
Transcript ofFirst PublicHearing held on October 19,2006. Proposed rule aspublished in the IndianaRegister on December27,2006 (DIN: 20061227-IR-326050232PRA).

Notice of Second PublicHearing aspublished in the IndianaRegister on December 27,2006 (DIN: 20061227-IR-326050232PHA). Transcript 

## of Second PublicHearingheld on February 7,2007.

AdministrativeChecklist (40 CFR 51,Appendix

## V).

## ATTACHMENT 

# - A

### lndiana Register TITLE 326 AIR POLLUTION CONTROL BOARD

/ 

### Final Rule LSA Document#05-232(F)
DIGEST
Adds 326 IAC 25 concerning voluntary performance based leadership programs. Effective 30 days after filing with the Publisher.
HISTORY First Notice of Comment Period: September 1, 2005, lndiana Register (28 IR 3665). Continuation of First Notice: April 1,2006, lndiana Register (29 IR 2373). Second Notice: June 

### I, 2006, lndiana Register (29 IR 3109). Notice of First Hearing: June 1, 2006, lndiana Register (29 IR 3121). Change of Hearing Notice: September 6,2006, lndiana Register (DIN: 20060906-IR-326050232CHA). 

### Date of First Hearing: October 19, 2006. Proposed Rule: December27,2006, lndiana Register (DIN: 20061227-IR-326050232PRA). Notice of Second Hearing: December 27,2006, lndiana Register (DIN: 

### 20061227-IR-326050232PHA). Third Comment Period: December 27, 2006, lndiana Register (DIN: 20061227-IR-326050232PRA). Date of Second Hearing: February 7,2007.

326 IAC 25
SECTION 1.326 IAC 25 ISADDED 

### TO READ AS FOLLOWS:
ARTICLE 25. VOLUNTARY PERFORMANCE BASED LEADERSHIP PROGRAMS

Rule 

### 1. Environmental Stewardship Program and Comprehensive Local Environmental Action Network Community Challenge Program

326 IAC 25-1-1 Applicability Authority: IC 13-14-8; IC 13-17-3-4; IC 13-1 7-3-12; IC 13-27-8-3 Affected: IC 13-15; IC 13-17

Sec. 

### 1. (a) The lndiana Environmental Stewardship Program and Comprehensive Local Environmental Action Network Community Challenge Program are voluntary performance based leadership programs that offer recognition, regulatory flexibility, and an opportunity towork directly with the dep'artment on innovative pilot projectsfor entities that consistently demonstrate environmental stewardship and make measurable efforts towards continual environmental improvement. Inaccordance with IC 13-27-8-3, an entity is not requiredto comply withthis ruleand 326 IAC 25-2 except as a provision of participation in these programs.
(b) This rule appliestoany lndiana entity that: (I)voluntarily participates in either program; (2) meets the eligibility requirements ofsection 3 ofthis rule; and (3) maintains membership by complying with this rule and 326 IAC 25-2. (Air Pollution Control Board; 326 IAC 25-1-1; filed May 16, 2007, 3:13p.m.: 20070613-IR-326050232FRA)



### 326 IAC25-1-2 Definitions Authority: IC 13-14-8; IC 13-17-3-4; IC 13-1 7-3-12 Affected: IC 13-11-2-35; IC 13-11-2-51; IC 13-11-2-158; IC 13-15: IC 13-17

, ; 

### Sec. 2. Inadditiontothe definitions in IC 13-11-2,the following definitions apply throughout this rule

Date: Jun 14,2007 7:45:54AM EDT DIN: 20070613-IR-326050232FRA Page 1

### lndiana Register
and 326 IAC 25-2: i 

### (I) "Commissioner", as defined in IC 13-11-2-35(a), means the commissioner of the department of environmental management. (2) "Comprehensive Local EnvironmentalAction Network Community Challenge Program" or "CLEAN" meansthe voluntary state programfor units of local government in lndiana that:

(A) demonstrate environmental stewardship; and (B) strive for continual environmental improvement. (3) "Department", as defined in IC 13-11-2-51, means the lndiana department of environmental management. (4) "Entity" means a company, corporation, firm, enterprise, authority, institution, partnership, sole proprietorship, limited liability company, any person as defined in IC 13-11-2-158(a),or unit of local government, or part or combinationthereof, whether incorporated or not, public or private, that has its own functions and administration. Except as described in section 4(c) of this rule, an entity has one (1) geographic location under:

(A) at least one (1) EMS; and (B) the direction of senior management. (5) "Environmental aspect" means an element of the activities, products, or services of an entity that has the potentialto interact with the environment. (6) 

### "Environmental impact" means any change to the environment, whether adverse or beneficial, wholly or partially resulting from the environmental aspects of an entity. (7) "Environmental laws, rules, and regulations", for the purpose of this article, meansthe system of laws and standards administered by U.S. EPA, the department, or related local government bodies. 

### (8) "Environmental managementsystem" or "EMS" means a continuous cycle of planning, implementing, reviewing, and improving a set of documented processes and practices used to develop and implementthe environmentalpolicy and manage the environmental aspects of an entity to: (A) maintain compliance; (B) reduce adverse environmental impacts; and (C) 

### increase operational efficiency. 

### (9) "Environmental objective" means an environmental goal that is consistentwith the environmental policy of an entity. (10) "Environmental policy" means the overall commitment and direction of an entity relatedto environmental performance as formally expressed by senior management. (11) "Environmental Stewardship Program" or "ESP" meansthe voluntary state programfor entities in Indiana that:

(A) demonstrate environmentalstewardship; and 

### (B) strive for continual environmental improvement. (12) "Environmental target" means a detailed performance requirement that:

(A) is quantified where practical; and (B) arises from the environmental objectives. (13) "Geographic location", for the purposes of this article, means an aggregation of one (1) or more operations that are:



### (A) located on:

(i) one (1) 

### piece of property; or (ii) contiguous or adjacent properties; and (B) owned, operated, or controlled by the same entity. (14) "Independent audit" means an audit conducted by a party that:

(A) is not directly employed by the entity being audited; and (B) 

### has not played a substantive role in implementingthe EMS 

### being audited. (15) "National Environmental Performance Track Program" or "NEPT" means the U.S. EPA's National Environmental PerformanceTrack Program. (16) "Senior management" means the following:

(A) For entities, the individual or individuals with executive responsibility for the entity. 

### (B) For a partnership or sole proprietorship, a general partner or the proprietor, respectively. (C) For a unit of local government or other governmental unit, either a principal executive officer or ranking elected official. (17) "U.S. EPA" means the administrator of the United States Environmental Protection Agency or the administrator's designee. 

### (AirPollutron Control Board; 326 IAC 25-1-2,frled 

### May 16, 2007, 3 13p m 20070613-IR-326050232FRA)
I

Date. Jun 14,2007 7 45 54AM EDT DIN 20070613-IR-326050232FRA Page 2lndiana Register

326 IAC 25-1-3 Eligibility criteria

- Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 3. Participation in ESP or CLEAN isvoluntary and is open to entities located and operating in lndiana that meet the following criteria: (1) The standard of environmental compliance as described insection 10 of this rule. (2) Implement and maintain an EMS as described insection 11of this rule. (3) Conduct continuous environmental improvement initiatives as described insection 12 of this rule. 

### (Air Pollution Control Board; 326 IAC 25-1-3; filed May 16, 2007, 3: 13

### p.m.: 20070613-IR-326050232FRq)

326 IAC 25-1-4 Membership application Authority: IC 13-14-8; 

### IC 13-17-3-4; 1C 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 4. (a) A member of senior management shall submit an application, preferably electronically, by one (1) of the following methods: (I) For applications for either ESP or CLEAN only, to the department on:



### (A) aform, whether electronically or hardcopy, provided bythe department; or 

### (6)an equivalent form. (2) For applications for both ESP and NEPT, to U.S. EPA, electronically on the form provided by U.S. EPA. An application submittedto U.S. EPA satisfies the requirement for an application tothe department for ESP.
(b) The application shall be signed by a member of senior management. The signature shall: (I) constitute affirmation that the statements inthe application are true and complete, as known at the time of completion of the application; and (2) subject the member of senior management to liability under state laws forbidding false or misleading statements.
(c) A membership for an entity shall be limited to cover one (1) geographic location, except that an entity may apply for membership as a group of locations ifthe following criteria are met: (1) Each location must meet the eligibility criteria individually and as a group, includingthe requirement to identify environmental improvement initiatives. (2) The environmental improvement initiatives may be similar or the same for all of the locations, but each location must: (A) play an active role in each initiative; and (B) demonstrate continuous environmental improvement. (3) The EMS must address staff and activities at each location. (4) Senior ,management must be common to all locations. (5) The standards of environmental compliance in section 10 of this rule shall apply to all lndiana locations under the control of the entity.
(d)The commissioner shall make a determination on acceptance into ESP or CLEAN based on the following: (1)The 

### EMS must meet the standards in section 11of this rule. (2)A site visit by a representative of the department to provide an understanding of the environmental aspects of the entity and the EMS. 

### (3) Identification of environmental improvement initiatives and associated objectives and targets as follows: (A) For ESP applicants, at least one (I)environmental improvement initiative and associated objectives and targets for the first year of membership.

. .. (B) For CLEAN applicants, at least five (5) environmental improvement initiatives and associated objectives and targets for the three (3) year term of membership.

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### Indiana Reaister



### . 

# - (4) For ESP applicants, information provided to 

### U.S. EPA ifthe entity has also applied for membership in NEPT. (5) Compliance audits conducted by:

(A) the department; (B) the U.S. EPA; (C) other state offices; and 

### (D) otherfederal agencies; as appropriate. 

### (6) Other information, including the following:

(A) Compliance information obtained from department staff. (B) Verifiable, applicable information received from sources determined to be relevant by the commissioner. (Air Pollution ControlBoard; 326 IAC 25-1-4; filed May 16, 2007, 3:13p.m.: 20070613-IR-326050232FRA)



### 326 IAC 25-1-5 Term of membership Authority: IC 13-14-8; IC 13-17-3-4; IC 13-1 7-3-12 Affected: IC 13-15; IC 13-17

Sec. 5. (a) The term of membership isthree (3) years from the date the entity is accepted into the program as long as the entity continues to meet the program criteria and submits the annual summary.
(b) For ESP members, the department may extend the term for upto one (1) year to coincide with the: (I)membership date in NEPT, if applicable; or (2) annual summary submission by allowing a member whose expiration date occurs before April 1of that year to extend its expiration date to April 1 of that year.
(c) For CLEAN members, the department may extend the term for upto ninety 

### (90) days to accommodate submission of the third annual summary, at which time CLEAN members may seek to renew membership inthe program. (Air Pollution Control Board; 326 IAC 25-1-5; filed May 16, 2007, 3:13p.m.: 20070613-IR-326050232FRA)



### 326 IAC 25-1-6 Renewalof ESP membership Authority: IC 13-14-8; IC 13-17-3-4; IC 13-1 7-3-1 2 Affected: IC 13-15; IC 13-17

Sec. 6. 

### (a) To renew ESP membership, a member of senior managementshall submit a renewal application, preferably electronically, by April 1 of the thirdyear of membership as follows: (1) For renewal applications for ESP only, to the department on:

(A) a form, either electronically or hard copy, provided bythe department; or (B) an equivalent form. (2) 

### For renewal applications for both ESP and NEPT, electronically to U.S. EPA onthe form provided by U.S. EPA.
(b) The application shall be signed by a member of senior management. The signature shall: (1) constitute affirmation that the statements inthe application are true and complete, as known at the time of completion of the application; and (2) 

### subject the member of senior management to liability under state laws forbidding false or misleading statements.
(c) The department shall review the renewal application and the annual summaries submitted during the most recent term of membership. The review of a renewal shall follow the same procedures as the review for the initial application regarding compliance checks and EMS evaluations, except a general site visit by a representative of the department shall not be required.

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(d) The commissioner shall make a determination on the ESP renewal application based on the following: (1) The EMS must continue to meet the standards insection I1 of this rule. (2) Review of the annual summaries submitted during the previous membershipterm. (3) Successful coordinationwith a member of senior managementto set at least one (1) environmental improvement initiative and associated goals for the next year of membership. (4) Information provided by U.S. EPA ifthe entity has also applied for membership in NEPT. (5) Compliance audits conducted by:

(A) the department; (B) the U.S. EPA; (C) other state offices; and (D) other federal agencies; as appropriate. (6) Other information, including the following:

(A) Compliance information obtained from department staff. (B) Verifiable, applicable information receivedfrom sources determined to be relevant by the commissioner. (Air Pollution Control Board; 326 IAC 25-1-6; filed May 16, 2007, 3:13

### p.m.: 20070613-IR-326050232FRA)

326 IAC 25-1-7 Renewal of CLEAN membership Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 7. (a) To renew CLEAN membership, a member of senior management shall submit the third annual summary of the previous membership term: (1) tothe department within sixty (60) days after the third annual anniversary of the date the previous membershipterm began; (2) to clearly indicate the intention to renew membership; and (3) includingfive (5) objectives, targets, and action plans for the next three (3)year term.
(b) The application shall be signed by a member of senior management.The signature shall: (1) constitute affirmationthat the statements inthe application are true and complete, as known at the time of completion of the application; and (2) subject the member of senior management to liability under state laws forbidding false or misleading statements.
(c) The department shall review the annual summaries and five (5) objectives, targets, and action plans submitted duringthe most recent term of membership. The review of this information shall follow the same procedures as the review for the initial application regarding compliance checks and EMS evaluations, except a general site visit by a representative of the department shall not be required.
(d)The commissioner shall make a decision on the CLEAN renewal application based on the following: (1) The EMS must continue to meet the standards in section 11of this rule. (2) Review of the annual summaries submitted duringthe previous membership term. (3) Successful coordination with a member of senior managementto identify at least five (5) environmental improvement initiatives and associated goals for the next three (3) year term of membership. (4) Compliance audits conducted by:

(A) the department; (B) the U.S. EPA; (C) other state offices; and (D) other federal agencies; as appropriate. (5) Other information, including the following:

Date: Jun 14.2007 7:45:54AM EDT DIN: 20070613-IR-326050232FRA Page 5Indiana Renister 

### - (A) Com~liance informationobtained from department staff. 

## i~j verifiable, applicable information receivedfrom sources determined to be relevant by the commissioner.
(e) Ifthe entity does not request a renewal with the third annual summary, then membership in CLEAN expires upon receipt bythe department of the third annual summary. 

### (Air Pollution Control Board; 326 IAC 25-1-7; filed May 16, 

### 2007, 3:13p.m.: 20070613-IR-326050232FRA)

326 IAC 25-1 

### -8 Revocation Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 8. (a) The commissioner shall revoke membership in ESP or CLEAN ifthe entity has not substantially complied with any of the following: (1) The standards of environmental compliance described insection 10 of this rule. (2) The requirement to make sufficient progress towards attaining the environmental initiatives identified and agreed upon at the time of application and submittal of the annual summaries. 

### (3) The requirementto maintain an approved EMS as required for membership. (4) The prohibition against knowingly submitting false information:

(A) onthe application; (B) inthe annual summary; (C) during a site visit or evaluation bythe department; or 

### (D) during an independent audit.
(b) The commissioner may revoke the membership in ESP or CLEAN ifthe entity has not substantially complied with any of the following: (1) The ESP or CLEAN program requirements inthis article, as applicable. (2) Federal, state, or local environmental laws, rules, and regulations.
(c) A determination bythe commissioner to revoke a membership under subsection (b) may be based uponthe following: (1) Compliance information obtained from department staff. (2) Verifiable, applicable information receivedfrom sources determined to be relevant by the commissioner.
(d) Ifthe commissioner determines that a situation shall or may warrant revocation of membership based on subsection (a) or (b), the following applies: (1) The commissioner shall notify the entity inwriting:

(A) of any potential deficiencies found; and (B) that the commissioner is considering removing the entity from the program. (2) The notice shall:

(A) state that the commissioner may consider removing the entity from the program after the responsetime period providedto the member; (B) identify the potential deficiencies; and (C) provide the entity with thirty (30) days to respond. (3) Within thirty (30) days after the end of the time period providedto the member, the commissioner shall consider the response and determine ifthe situation warrants revocation of membership.
(e) An entity whose membership has been revoked may reapply under section 4 of this rule at any time twelve (12) months after the revocation.
(f) Revocation of memberships shall be posted on the department Web site for the duration of the current application period.
(g) Except as described in subsection (h), immediately upon revocation, all member incentives and

Date: Jun 14,2007 7:45:54AM EDT DIN: 20070613-IR-326050232FRA Page 6Indiana Register regulatory benefits affordedtothe member of ESP or CLEAN underthis article shall be revoked.
(h) An entity whose membership has been revokedsubsequent to renewal ofthe entities FESOP or MSOP permit under 326 IAC 25-2-2 shall apply for a renewal permit with a term of not more than five (5) years within six (6) months ofthe date of revocation. 

### (Air Pollution Control Board; 326 IAC 25-1-8; fled May 16, 2007, 3:13p.m.: 20070613-IR-326050232FRA)

326 IAC25-1-9 Transfers Authority: IC 13-14-8; IC 13-1 7-3-4; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 9. Membership in ESP or CLEAN may betransferred toanother entity at the same geographic location provided: (I)the department is notified within ninety (90) days of the:

(A) change inownership or management; and (B) intent to maintain membership; and (2) senior management commits to:

(A) fulfilling the previous member's commitments; and (B) the requirements ofthe programfor the remainder of the membership term by signing an updated membership application. 

### (Air Pollution Control Board; 326 IAC 25-1-9; filed May 16, 2007, 3: 13p.m.: 20070613-IR-326050232FRA)

326 IAC 25-1-10 Standards of environmental compliance Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 10. (a)To be accepted into ESP or CLEAN, a member of senior management of the entity shall submit a certification with the application tothe department certifying that, based on information and belief after reasonable inquiry, the entity is currently incompliance with all applicable local, state, and federal environmental laws, rules, and regulations.
(b) The department shall: (1) review the administrative, civil, and criminal environmental compliance and enforcement history of the entity in order to determine ifthe entity satisfies the required standard of substantial environmental compliance; (2) consider all applicable environmental compliance and enforcement criteria, includingthe criteria in subsections (c) and (d) in determining whether or not an entity has achieved substantial environmental compliance; and (3) post the organizational name and locationfor all new and renewal applications onthe department Web site within fourteen (14) days of the close of each application submission round.
(c) The following criteria shall prevent acceptance of an entity into the ESP or CLEAN: (1) Corporate criminal conviction or guilty plea for environmentally-related violations of criminal laws involving the entity or an officer of the entity within the past five (5) years. (2) Criminal conviction or plea of employee at the entity for environmentally-related violations of criminal laws within the pastfive (5)years.
(d) The existence of one (1) or more of the following criteria may prevent acceptance of an entity into ESP or CLEAN: (1) Ongoing criminal investigation or prosecution of the entity, or an officer or employee ofthe entity, for a violation of environmental law. (2) Three (3) or more significant violations at the entity inthe past three (3) years.

Date: Jun 14.2007 7:45:54AM EDT DIN: 20070613-IR-326050232FRA Page 7Indiana Register (3) Unresolved or unaddressed significant noncompliance or significant violations. (4) Planned, but notyet filed, judicial or administrative action, by U.S. EPA or the department, against the entity. 

### (5) Ongoing U.S. EPA or department-initiated litigation against the entity. (6) A situation where an entity is not incompliance with the schedule and terms of an order or decree issued by:

(A) U.S. EPA; or (B) the department. (7) A history of significant environmental problems or a pattern of noncompliance at the entity or at other affiliated entities under the same ownership or control. 

### (Air Pollution Control Board; 326 IAC 25-1-70; filed May 16, 

### 2007, 3:13p.m.: 

### 20070613-IR-326050232FRA)

326 IAC 25-1-1 

### I Environmental management system Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 11. (a) An approved EMS must be implemented bythe entity before acceptance of an entity into ESP or CLEAN.
(b) An EMSthat meets the criteria for ESP and CLEAN must, at a minimum, include the following: (1) Evidence of senior management support, commitment, and approval provided through management review of records, employee interviews, or signatory referenceto the applicant's environmental policy. (2) A written environmental policy directed toward the following:

(A) Compliance. (B) Pollution prevention. (C) Continuous improvement. (3) For CLEAN members, the environmental policy must also address sharing environmental decisions and performance information with the community. (4) Identification of the environmental aspects at the entity. (5) Prioritizationof the environmental aspects and a determination of those aspects deemed significant bythe entity considering, at the minimum, environmental impacts and applicable laws, rules, and regulations. (6) Established priorities and environmental objectives and targets for the following:

(A) Continuous improvement inenvironmental performance. (B) Ensuring compliance with applicable environmental laws, rules, regulations, and permit conditions. (7) An established community outreach mechanism that includes the following:

(A) Identifying and respondingto community concerns. (B) Informingthe community of important matters that affect the community. (C) Reporting on the EMS, including, at a minimum, reportingto the public on the environmental policy and significant aspects. (D) Through the annual summary, reporting on the environmental improvement initiatives, including progress towards the most recent environmental improvement initiatives identified inthe application or annual summary. (8) Incorporation of environmental and pollution prevention planning inthe development of new products, processes, and services and modifications of existing processes. (9) Evidence of clear responsibility by the entity for the following:

(A) Implementation, training, monitoring, EMS maintenance, and taking corrective action. (B) Ensuring compliance with applicable environmental laws, regulations, and permit conditions. (10) Documentation of the implementation procedures and the results of implementation. (11) Appropriately written EMS procedures to include documented plans, records, and procedures as needed for successful implementation of an EMS as defined insection 2(8) of this rule. (12) An annual evaluation of the 

### EMS with written results providedto senior managementand affected employees.
(c) For CLEAN members, the environmental policy must be adopted through an executive order,

Date: Jun 14,2007 7:45:54AM EDT DIN: 20070613-IR-326050232FRA Page 8Indiana Reaister resolution, or ordinance.
(d) The department shall determine ifthe EMS meets the criteria in subsection (b).
(e) A representative of the department shall perform an on-site review, evaluation, and verification of the EMS if, within twelve (12) months of the application submittal, the EMS has not been: (I)audited by an independent party; or (2) registered pursuant to a recognized certification standard. (Air Pollution Control Board; 

### 326 IAC 

### 25-1-1I; filed 

### May 

### 16, 2007, 3.13 p.m.: 

### 20070613-IR-326050232FRA)

326 IAC 25-1-12 Continuous environmental improvement Authority: IC 13-14-8; IC 13-47-34; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 12. (a) Incoordination with the department, a member of senior management shall identify continuous environmental improvement initiatives for the appropriate program, as follows: (1) For ESP, a member of senior management shall identify three (3) continuous environmental improvement initiatives for each membership term. One (1) initiative shall be identified at the time of the initial or renewal application and the remaining initiatives shall be identified each year at the time the annual summary is submittedtothe department. (2) For CLEAN, a member of senior management shall identify five (5) continuous environmental improvement initiativesfor the three (3) year membership term.
(b) Entities accepted into ESP or CLEAN shall: (1) maintain records that describe and track the actions taken toward achievement of the environmental improvement initiatives; and 

### (2) submit an annual summary inaccordance with section 13 or 14 of this rule, as applicable, documenting progress toward the environmental improvement initiatives for that year.
(c) Entities accepted into ESP or CLEAN shall demonstrate continuous environmental improvement by the following: (1) Conducting periodic pollution prevention or environmental improvement assessments that identify opportunities for reducing pollution and eliminating waste at the entity. (2) Identifying, obtaining approval for, and implementingenvironmental improvement initiatives in coordination with the department that:

(A) include objectives and targets beyond current legal requirements; and 

### (B) as applicable, specify the:

(i) environmental media; (ii) types of pollution to be prevented or reduced; (iii) implementation activities; and (iv) projectedtime frames. (3) Reporting onthe activities undertaken toward implementation of the initiatives identifiedwith the department. (Air Pollution Control Board; 

### 326 IAC 

### 25-1-12; filed 

### May 

### 16, 2007, 3: 13p.m.: 20070613-IR-326050232FRA)

326 IAC 25-1-13Annual summary for ESP members Authority: IC 13-14-8; 

### IC 13-17-3-4; IC 13-17-3-12 Affected: IC 13-15; IC 13-17

Sec. 13. (a) Entities accepted into ESP shall submit an annual summary on aform provided by the department or an equivalent form documenting the following: (1) Progress toward the objectives and targets identified for the environmental improvement initiative

Date: Jun 14,2007 7:45:54AM EDT DIN: 20070613-IR-326050232FRA Page 9

### Indiana Register forthat year. (2) Resultsobtainedfrom achieving the environmental improvement initiative objectives andtargets, if applicable. (3) An annual review ofthe EMS by the entity.
(b) Ifthe entity has not attained the objectives andtargets associatedwith an environmental improvement initiative, a 

### member of senior management shall providethe following: (1) Verification ofcontinued progress toward the objectives andtargets. (2) A description ofthe reason the objectives andtargets have not been attained.
(c) Each annual summary must include identificationofthe environmental improvement initiative for the next year, unlessthe entity isterminating membership in ESP.
(d) The annual summary shall: (I)cover the twelve (12) month calendar year; (2) be submitted tothe department for each year byApril 

### I of the following year; and (3) be submitted for each calendar year inwhich the entity has been a member for at least three (3) full months.
(e) An annual summary submittedto U.S. EPA as a requirement of being a member of NEPT shall satisfy the requirementfor an annual summary for ESP members. (Air Pollution ControlBoard; 326 IAC25-1-13; filed

### May 16, 2007, 3:13p.m.: 

### 20070613-IR-326050232FRA)

326 IAC25-1-14 Annual summary for CLEAN members Authority: IC 13-14-8; IC 13-1 7-3-4; IC 13-17-3-1 2 Affected: IC 13-15; IC 13-17

Sec. 14. (a) Entitiesaccepted into CLEAN shall submit an annual summary on a form provided bythe department or an equivalent form documenting the following: (1) Progress toward the objectives andtargets identified for the five (5) 

### environmental improvement initiatives. (2) Results obtained from achievingthe environmental improvement initiative objectives andtargets, if applicable. (3) Anannual review ofthe EMS bythe entity.
(b) Ifthe entity has not attained the objectives and targets associatedwith an environmental improvement initiative at the time the third annual summary is submitted, a member of senior management shall provide a 

### description of the reasonthe objectives and targets have not been attained.
(c) The annual summary shall be submitted to the department sixty (60) 

### days after the annual anniversary ofthe date the previous membership term began. (Air Pollution ControlBoard; 326 IAC 25-1- 14; filed May 16, 2007, 3:13p.m.: 20070613-IR-326050232FRA)



### Rule 2. 

### Regulatory Flexibility for the Environmental Stewardship Program, Comprehensive Local Environmental Action Network Community Challenge Program, and lncorporation by Reference of NEPT Incentives

326 IAC 25-2-1 lncorporation by reference offederal incentive for NEPT members Authority: IC 13-14-8; IC 13-1 7-3-4; IC 13-17-3-12 Affected: IC 13-1 

### 5; IC 13-1 7

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Sec. 

### I. The air pollution control board incorporates by reference the Performance Track provisions at

I 40 CFR 63.2*, 40 CFR 63.10*, and40 CFR 63.16*. The incentives inthese federal rules are only available to members ofthe NEPT program.

*This body of documents is incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 or are available for review and copying at the lndiana Department of Environmental Management, Office ofAir Quality, lndiana Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, lndiana46204. (Air Pollution Control Board; 326 IAC 25-2-1; filed May 16, 2007, 3.13 

### p.m.: 20070613-IR-326050232FRA)

326 IAC 25-2-2 Ten year permit renewals Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-12 Affected: IC 13-15-3-2; IC 13-17

Sec, 2. 

### (a) Notwithstanding 326 IAC 2-1 

### .I -9.5 and 326 IAC 2-8-4(2) and inaccordance with IC 13-1 5-3-2, a federally enforceable state operating permit (FESOP)for a member in ESP or CLEAN may be renewed for a periodof upten (10) years, ifapproved bythe commissioner.
(b) Notwithstanding326 IAC 2-1.1-9.5 and 326 IAC 2-6.1-7(a) and inaccordance with IC 13-15-3-2, a minorstate operating permit (MSOP)for a member in ESP or CLEAN may be renewedfor a period of up ten (10) years, ifapproved bythe commissioner. 

### (AirPollution Control Board; 326 IAC 25-2-2; filed May 16, 2007, 3:13

### p.m.: 20070613-IR-326050232FRA)

326 IAC 25-2-3 Monthly compliance methods for volatile organic compound Authority: IC 13-14-8; IC 13-17-3-4; IC 13-17-3-1 2 Affected: IC 13-15-3-2; IC 13-17

Sec. 3. (a) Notwithstanding 326 IAC 8-1-2(a)(7),the emission limitations specified in326 IAC 8 can be achieved through monthly volume-weighted averaging of all coatings applied in a coating line or printing line subject to the requirements in326 IAC 8-2 or 326 IAC 8-5-5.
(b) Sufficient records must be maintainedtodemonstrate compliancewiththe applicable emission limitation ona monthly average basis. The records must be made available tothe department upon request.
(c) Records of monthly VOC emissions shall be maintained in: (1) pounds per month; or (2) tons per month.
(d) If monthly records sufficient to determine an accurate monthly weighted average are not available, each coating, ink, and solvent shall meet the requirements ofthe applicable section. (Air Pollution Control Board; 326 IAC 25-2-3; filed May 16, 2007, 3:13p.m.: 20070613-IR-326050232FRA)

326 IAC 25-2-4 Pollution prevention projects Authority: IC 13-14-8; IC 13-1 7-3-4; IC 13-17-3-12 Affected: IC 13-15-3-2; IC 13-17

Sec. 4. Notwithstanding 326 IAC 2-6.1-6(i)(l)(J) and 326 IAC 2-8-ll.l(f)(l)(J), any pollution prevention project, as defined in326 IAC 2-1.1-1(14), that would otherwise be subjecttosignificant permit revision

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### Indiana Register 

### procedures, andthat does not result in a net increase in potential emissions of more than the significance levels in 326 

### IAC 2-2-I(xx),

### may be processed as a minor permit revision as follows: (1)

### For minor state operating permits, under 326 

### IAC 2-6.1-6(h). (2)

### For federally enforceable operating permits, under 326 

### IAC 2-8-11.1

### (e). (Air Pollution Control Board; 326 IAC 25-2-4; filed May 16, 2007, 3.13 p.m.: 20070613-IR-326050232FRA)

LSA Document #05-232(F) Proposed Rule: 20061227-IR-326050232PRA Hearing Held: February 7, 2007 Approved by Attorney General:April 27, 2007 Approved by Governor: May 16,2007 Filed with Publisher: May 16, 2007, 3:13p.m. Documents Incorporated by Reference: 40 CFR 63.2, National Emission Standards for Hazardous Air Pollutants for Source Categories, Definitions; 40 CFR 63.10, National Emission Standards for HazardousAir Pollutants for Source Categories, Recordkeepingand reporting requirements; 40. CFR 63.16, National Emission Standards for Hazardous Air Pollutants for Source Categories, Performance Track Provisions Small Business Regulatory Coordinator: Sandra El-Yusuf, IDEM Compliance and Technical Assistance Program, OPPTA-MC6O-04, 100North SenateAvenue, W-041, Indianapolis, IN 46204-2251, (317) 232-8578, selyusuf@idem.in.gov Small Business Assistance Program Ombudsman: Eric Levenhagen, IDEM Small Business Assistance, Program Ombudsman, External Affairs

# - MC50-01, 100North Senate Avenue, IGCN 1301, Indianapolis, IN 46204-2251, (317)234-3386, elevenha@idem.in.gov Posted: 06/13/2007 by Legislative ServicesAgency An 

## html version of this document.

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## ATTACHMENT

# - B

# Rule SignaturePage

Rule #: 

## Agency: Subject: LSA #05-232(F) 

## Air Pollution Control Board Environmental StewardshipProgram and 

## Comprehensive Local Environmental ActionNetwork



## ADOPTED: 

# , By: Date: 1/6

## 7 (0

# 7

Air Pollution Control Board



## APPROVED AS TO FORM AND LEGALITY: By: Date: Stephen Carter Attorney General, State ofIndiana



## APPROVED: By: Date: Mitchell 

## E. Daniels,Jr. Governor, StateofIndiana



## ACCEPTEDFOR FILING.: By: Date: Indiana Register Legislative Services Agency