INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 

We make Indiana a cleaner, healthierplace to live. 

'tchell E. Daniels, Jr. 

 over nor 

Thomas W. Easterly 

Commissioner 

100 North Senate Avenue 

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 Implementation Plan Submittal for 

Indiana Regarding Regulatory Flexibility for the 

Environmental Stewardship Program, 

Comprehensive Local Environmental Action 

Network Community Challenge Program, and 

Incorporation by Reference of NEPT Incentives in 

326 LAC 25-2 

Dear Ms. Gade: 

Pursuant to Section 1 10 of the 1990 Clean Air Act Amendments and Title 13 of the 

Indiana Code, the Indiana Department of Environmental Managrnent (IDEM) herewith submits a 

request for an amendment to the Indiana state implementation plan (SIP) for incentives for 

regulatory flexibility for the Environmental Stewardship Program, Comprehensive Local 

Environmental Action Network Community Challenge Program, and incorporation by reference 

of National Environmental Performance Track Program (NEPT) incentives in 326 IAC 25-2. 

This amendment consists of three provisions for the ESP and CLEAN programs described in 326 

IAC 25-1, accomplished through one rulemaking. 

The Air Pollution Control Board adopted as final a new article for two voluntary 

programs similar to the federal NEPT program. Because some of the incentives in 326 IAC 25-2 

affect provisions previously 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 

implementation plan to include the following provisions: 

1. 326 IAC 25-2-1, incorporation by reference of a federal incentive for NEPT 

members. 

2. 326 IAC 25-2-3 as it applies to ESP and CLEAN members regarding monthly 

compliance methods for volatile organic compounds in 326 IAC 8-1-2(a)(7). 

3. 326 IAC 25-2-4 as it applies to FESOPs in 326 IAC 2-8-1 l.l(e) and 326 IAC 2-8- 

1 1.1 (f)(l)(J) regarding pollution prevention projects. 

IDEM is not seeking review and approval of the incentive in 326 IAC 25-2-2 as it applies to 

RqledPaper @ An Equal Opportunity Employer PlmeRecyle 0 
Federally Enforceable State Operating Permits (FESOPs) in 326 IAC 2-1.1-9.5 and 326 IAC 2-8- 

4(2) regarding ten-year permit terms at this time because it will be part of a future SIP submittal 

with a wider applicability. IDEM is not seeking approval into the SIP of any other part of this 

rulemaking action, however the entire rule is provided for your information. 

In order to assist your review of this state implementation plan submission, a list of 

supporting documentation is attached. Please contact Pat Troth, Air Rules Section Chief, Office 

of Air Quality, at (3 17) 233-568 1 if you have questions concemys submission. 

Commissioner 

cc: John Mooney 

SIP file 
LIST OF SUPPORTING DOCUMENTATION 

Attachment A: 

Attachment B: 

Attachment C: 

Attachment D: 

Attachment E: 

Attachment F: 

Attachment G: 

Attachment H : 

Attachment I: 

Final rule as published in the Indiana Register on June 13,2007 (DIN: 

200706 13-IR-326050232FRA). 

Signature page with the signature of the chairman of the air pollution 

control board. 

Second Notice of Comment Period including draft rule and notice of first 

public hearing as published in the Indiana Register on June 1,2006 (29 IR 

3109). 

Publishers' affidavits. 

Transcript of First Public Hearing held on October 19,2006. 

Proposed rule as published in the Indiana Register on December 27,2006 

(DIN: 2006 1227-IR-326050232PRA). 

Notice of Second Public Hearing as published in the Indiana Register on 

December 27,2006 (DIN: 20061227-IR-326050232PHA). 

Transcript of Second Public Hearing held on February 7,2007. 

Administrative Checklist (40 CFR 5 1, 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: December 27,2006, 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 IS ADDED 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 to work directly with the dep'artment on 

innovative pilot projects for entities that consistently demonstrate environmental stewardship and make 

measurable efforts towards continual environmental improvement. In accordance with IC 13-27-8-3, an 

entity is not required to comply with this rule and 326 IAC 25-2 except as a provision of participation in 

these programs. 

(b) This rule applies to any lndiana entity that: 

(I) voluntarily participates in either program; 

(2) meets the eligibility requirements of section 3 of this 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, 3:13 p.m.: 20070613-IR-326050232FRA) 

326 IAC 25-1-2 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. In addition to the definitions in IC 13-11-2, the following definitions apply throughout this rule 

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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 Environmental Action Network Community Challenge Program" or "CLEAN" 

means the voluntary state program for 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 combination thereof, 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 potential to 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, means the system of 

laws and standards administered by U.S. EPA, the department, or related local government bodies. 

(8) "Environmental management system" or "EMS" means a continuous cycle of planning, 

implementing, reviewing, and improving a set of documented processes and practices used to 

develop and implement the environmental policy 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 consistent with the environmental 

policy of an entity. 

(10) "Environmental policy" means the overall commitment and direction of an entity related to 

environmental performance as formally expressed by senior management. 

(11) "Environmental Stewardship Program" or "ESP" means the voluntary state program for entities in 

Indiana that: 

(A) demonstrate environmental stewardship; 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 implementing the EMS being audited. 

(15) "National Environmental Performance Track Program" or "NEPT" means the U.S. EPA's National 

Environmental Performance Track 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. 

(Air Pollutron Control Board; 326 IAC 25-1-2, frled May 16, 2007, 3 13 p m 20070613-IR-326050232FRA) 

I 

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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 is voluntary and is open to entities located and operating in 

lndiana that meet the following criteria: 

(1) The standard of environmental compliance as described in section 10 of this rule. 

(2) Implement and maintain an EMS as described in section 11 of this rule. 

(3) Conduct continuous environmental improvement initiatives as described in section 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) a form, whether electronically or hard copy, provided by the 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 submitted to U.S. EPA satisfies the requirement for an application to the 

department for ESP. 

(b) The application shall be signed by a member of senior management. The signature shall: 

(I) constitute affirmation that the statements in the 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 if the following criteria are met: 

(1) Each location must meet the eligibility criteria individually and as a group, including the 

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 11 of 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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(4) For ESP applicants, information provided to U.S. EPA if the 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 received from sources determined to be relevant by the 

commissioner. 

(Air Pollution Control Board; 326 IAC 25-1-4; filed May 16, 2007, 3:13 p.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 is three (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 up to 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 1 of 

that year to extend its expiration date to April 1 of that year. 

(c) For CLEAN members, the department may extend the term for up to ninety (90) days to 

accommodate submission of the third annual summary, at which time CLEAN members may seek to 

renew membership in the program. 

(Air Pollution Control Board; 326 IAC 25-1-5; filed May 16, 2007, 3:13 p.m.: 20070613-IR-326050232FRA) 

326 IAC 25-1-6 Renewal of 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 management shall submit a renewal 

application, preferably electronically, by April 1 of the third year of membership as follows: 

(1) For renewal applications for ESP only, to the department on: 

(A) a form, either electronically or hard copy, provided by the department; or 

(B) an equivalent form. 

(2) For renewal applications for both ESP and NEPT, electronically to U.S. EPA on the 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 in the 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 in section I1 of this rule. 

(2) Review of the annual summaries submitted during the previous membership term. 

(3) Successful coordination with a member of senior management to set at least one (1) environmental 

improvement initiative and associated goals for the next year of membership. 

(4) Information provided by U.S. EPA if the 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 received from 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) to the department within sixty (60) days after the third annual anniversary of the date the previous 

membership term began; 

(2) to clearly indicate the intention to renew membership; and 

(3) including five (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 affirmation that the statements in the 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 during the 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 11 of this rule. 

(2) Review of the annual summaries submitted during the previous membership term. 

(3) Successful coordination with a member of senior management to 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: 

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(A) Com~liance information obtained from department staff. 

i~j verifiable, applicable information received from sources determined to be relevant by the 

commissioner. 

(e) If the entity does not request a renewal with the third annual summary, then membership in CLEAN 

expires upon receipt by the department of the third annual summary. 

(Air Pollution Control Board; 326 IAC 25-1-7; filed May 16, 2007, 3:13 p.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 if the entity has not 

substantially complied with any of the following: 

(1) The standards of environmental compliance described in section 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 requirement to maintain an approved EMS as required for membership. 

(4) The prohibition against knowingly submitting false information: 

(A) on the application; 

(B) in the annual summary; 

(C) during a site visit or evaluation by the department; or 

(D) during an independent audit. 

(b) The commissioner may revoke the membership in ESP or CLEAN if the entity has not substantially 

complied with any of the following: 

(1) The ESP or CLEAN program requirements in this article, as applicable. 

(2) Federal, state, or local environmental laws, rules, and regulations. 

(c) A determination by the commissioner to revoke a membership under subsection (b) may be based 

upon the following: 

(1) Compliance information obtained from department staff. 

(2) Verifiable, applicable information received from sources determined to be relevant by the 

commissioner. 

(d) If the 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 in writing: 

(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 

response time period provided to 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 provided to the member, the commissioner 

shall consider the response and determine if the 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 

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regulatory benefits afforded to the member of ESP or CLEAN under this article shall be revoked. 

(h) An entity whose membership has been revoked subsequent to renewal of the 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 of the date of revocation. 

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

326 IAC 25-1-9 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 be transferred to another entity at the same geographic 

location provided: 

(I) the department is notified within ninety (90) days of the: 

(A) change in ownership 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 of the program for 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: 13 p.m.: 2007061 3-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 to the department certifying that, based on information and 

belief after reasonable inquiry, the entity is currently in compliance 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 if the entity satisfies the required standard of substantial 

environmental compliance; 

(2) consider all applicable environmental compliance and enforcement criteria, including the 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 location for all new and renewal applications on the 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 past five (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 of the entity, 

for a violation of environmental law. 

(2) Three (3) or more significant violations at the entity in the past three (3) years. 

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(3) Unresolved or unaddressed significant noncompliance or significant violations. 

(4) Planned, but not yet 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 in compliance 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, 3:13 p.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 by the entity before acceptance of an entity into 

ESP or CLEAN. 

(b) An EMS that 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 reference to 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) Prioritization of the environmental aspects and a determination of those aspects deemed 

significant by the 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 in environmental 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 responding to community concerns. 

(B) Informing the community of important matters that affect the community. 

(C) Reporting on the EMS, including, at a minimum, reporting to 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 in the 

application or annual summary. 

(8) Incorporation of environmental and pollution prevention planning in the 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 in section 2(8) of this rule. 

(12) An annual evaluation of the EMS with written results provided to senior management and affected 

employees. 

(c) For CLEAN members, the environmental policy must be adopted through an executive order, 

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resolution, or ordinance. 

(d) The department shall determine if the 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 25-1-1 I; 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) In coordination 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 submitted to the department. 

(2) For CLEAN, a member of senior management shall identify five (5) continuous environmental 

improvement initiatives for 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 in accordance 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 implementing environmental 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) projected time frames. 

(3) Reporting on the activities undertaken toward implementation of the initiatives identified with the 

department. 

(Air Pollution Control Board; 326 IAC 25-1- 12; filed May 16, 2007, 3: 13 p.m.: 20070613-IR-326050232FRA) 

326 IAC 25-1-13 Annual 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 a form provided by the 

department or an equivalent form documenting the following: 

(1) Progress toward the objectives and targets identified for the environmental improvement initiative 

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Indiana Register 

for that year. 

(2) Results obtained from achieving the environmental improvement initiative objectives and targets, if 

applicable. 

(3) An annual review of the EMS by the entity. 

(b) If the entity has not attained the objectives and targets associated with an environmental 

improvement initiative, a member of senior management shall provide the following: 

(1) Verification of continued progress toward the objectives and targets. 

(2) A description of the reason the objectives and targets have not been attained. 

(c) Each annual summary must include identification of the environmental improvement initiative for 

the next year, unless the entity is terminating membership in ESP. 

(d) The annual summary shall: 

(I) cover the twelve (12) month calendar year; 

(2) be submitted to the department for each year by April I of the following year; and 

(3) be submitted for each calendar year in which the entity has been a member for at least three (3) full 

months. 

(e) An annual summary submitted to U.S. EPA as a requirement of being a member of NEPT shall 

satisfy the requirement for an annual summary for ESP members. 

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

326 IAC 25-1-14 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) Entities accepted into CLEAN shall submit an annual summary on a form provided by the 

department or an equivalent form documenting the following: 

(1) Progress toward the objectives and targets identified for the five (5) environmental improvement 

initiatives. 

(2) Results obtained from achieving the environmental improvement initiative objectives and targets, if 

applicable. 

(3) An annual review of the EMS by the entity. 

(b) If the entity has not attained the objectives and targets associated with an environmental 

improvement initiative at the time the third annual summary is submitted, a member of senior 

management shall provide a description of the reason the objectives and targets have not been attained. 

(c) The annual summary shall be submitted to the department sixty (60) days after the annual 

anniversary of the date the previous membership term began. 

(Air Pollution Control Board; 326 IAC 25-1- 14; filed May 16, 2007, 3:13 p.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 of federal 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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lndiana Register 

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

I 40 CFR 63.2*, 40 CFR 63.10*, and 40 CFR 63.16*. The incentives in these federal rules are only available to 

members of the 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 of Air Quality, lndiana 

Government Center-North, Tenth Floor, 100 North Senate Avenue, Indianapolis, lndiana 46204. 

(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 in accordance 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 period of up ten (10) years, if approved by the commissioner. 

(b) Notwithstanding 326 IAC 2-1.1-9.5 and 326 IAC 2-6.1-7(a) and in accordance with IC 13-15-3-2, a 

minor state operating permit (MSOP) for a member in ESP or CLEAN may be renewed for a period of up 

ten (10) years, if approved by the commissioner. 

(Air Pollution 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 in 326 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 in 326 IAC 8-2 or 326 IAC 8-5-5. 

(b) Sufficient records must be maintained to demonstrate compliance with the applicable emission 

limitation on a monthly average basis. The records must be made available to the 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 of the applicable section. 

(Air Pollution Control Board; 326 IAC 25-2-3; filed May 16, 2007, 3:13 p.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 in 326 IAC 2-1.1-1(14), that would otherwise be subject to significant permit revision 

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Indiana Register 

procedures, and that 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, 3:13 p.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 Hazardous Air Pollutants for 

Source Categories, Recordkeeping and 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, 100 North Senate Avenue, 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, 100 North Senate Avenue, IGCN 1301, Indianapolis, IN 46204-2251, 

(31 7) 234-3386, elevenha@idem.in.gov 

Posted: 06/13/2007 by Legislative Services Agency 

An html version of this document. 

Date: Jun 14,2007 7:45:54AM EDT DIN: 20070613-IR-326050232FRA Page 12 
ATTACHMENT - B 
Rule Signature Page 

Rule #: 

Agency: 

Subject: 

LSA #05-232(F) 

Air Pollution Control Board 

Environmental Stewardship Program and Comprehensive Local Environmental 

Action Network 

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 of Indiana 

APPROVED: 

By: Date: 

Mitchell E. Daniels, Jr. 

Governor, State of Indiana 

ACCEPTED FOR FILING.: 

By: Date: 

Indiana Register 

Legislative Services Agency