### IDEM INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT WeProtectHoosiersandOurEnvironment. MitchellE. DanielsJr. 100 North Senate Avenue Governor Indianapolis, Indiana 46204 (317) 232·8603 Thomas W. Easterly Toll Free (800) 451·6027 Commissioner www.idem.IN.gov
July23,2010

Ms. Susan Hedman Regional Administrator U.S. Environmental Protection Agency Region 5 77 West Jackson Boulevard Chicago, IL 60604-3950
Dear Ms. Hedman:
Re: Requestfor Information Regarding Indiana's Authorityto Implement Prevention of SignificantDeterioration and Title V Permitting ProgramsJorGreenhol]se Gases
As requested, the State of Indiana has prepared this letterto inform the United States Environmental Protection Agency (U.S. EPA) that it intends to apply U.S. EPA's meaning ofthe term "subjectto regulation". Current Indiana rules require regulating greenhouse gases (GHGs) at the existing threshold of 100 or 250 tons. In addition, any increase in GHGs would be significant and subjectto more stringent permitting requirements.
To address this regulatorythreshold issue, Indiana will need to undertake a rulemaking process to revise state regulations to be consistent with the GHG applicabilitythresholds and definitions established in the final federal rule. This rulemaking is necessary because Prevention of Significant Deterioration (PSD) and Title V requirements, as currently written, would applyto all stationary sources in Indiana that emit or have the potential to emit more than 100 or250 tons of GHGs peryear. Indiana is planning to initiate an expedited rulemaking process in orderto make the necessary revisions to allowfortimely adoption and implementation of U.S. EPA's GHG tailoring approach. An estimate oftime needed to undertake a Section 8 Rulemaking, an expedited rulemaking process, is as follows: Section 8 Notice published

- mid-August 2010 30 day comment period end date

- mid-September 2010 Final rule adopted

- November2010 Rule effective date

- March 2011 

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Indiana also plans to use its emergency rulemaking process as an interim measure to make the GHG regulatory threshold changes effective on January 2, 2011.
The State of Indiana has the legal authorityto regulate GHGs as substances determined to be air pollutants that are regulated by U.S. EPA underauthority ofthe Clean AirAct. Specifically, Indiana Code (IC) 13-15-1-1 states that the Air Pollution Control Board (APCB) shall establish requirements forthe issuance of permits to control air pollution. Under IC 13-15-2-2(e), the boards (including the APCB) may adopt rules to allowthe department to issue permits when the rules adopted are consistent with federal lawforfederally authorized or delegated permit programs. IC 13-17-3-6 states that the APCB shall adopt rules that are necessaryforthe implementation ofthe federal Clean AirAct. There are no prohibitions on regulating GHG emissions in Indiana statutes or rules. The regulation of GHGs iS,allowed underthe definitions of "major stationary source" in 326 lAC 2-2-1 (gg), "regulated NSR pollutant" in 326 lAC 2-2-1(uu) and "significant" in 326 lAC 2-2,..1 (xx).

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# ~.**aste~Y** Commissioner Ifyou have any questions or ne.ed additional information regarding Indiana's planned 'approachfoadopting/implementing

### U.S: EPA'sGHG tailoring rule, please contact me directly at (317) 232-8611 or bye-mail atteasterly@idem.in.gov. Thank you for your consideration ofthis matter.

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cc: Bharat Mathur, U.S. EPA Region 5 Cheryl Newton, U.S. EPA Region 5 Sam Portanova, U.S. EPA Region 5 Keith Baugues, IDEM Matt Stuckey, IDEM Don Robin, IDEM

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