IDEM INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

We Protect Hoosiers and Our Environment.

Mitchell E. Daniels Jr. 100 North Senate Avenue

Governor Indianapolis, Indiana 46204

(317) 232·8603

Thomas W. Easterly Toll Free (800) 451·6027

Commissioner www.idem.IN.gov

July 23,2010

Ms. Susan Hedman

Regional Administrator

U.S. Environmental Protection Agency

Region 5

77 West Jackson Boulevard

Chicago, IL 60604-3950

Dear Ms. Hedman:

Re: Request for Information Regarding

Indiana's Authority to Implement Prevention of

Significant Deterioration and Title V Permitting

Programs JorGreenhol]se Gases

As requested, the State of Indiana has prepared this letter to inform the United

States Environmental Protection Agency (U.S. EPA) that it intends to apply U.S. EPA's

meaning of the term "subject to 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 subject to more stringent permitting

requirements.

To address this regulatory threshold issue, Indiana will need to undertake a

rulemaking process to revise state regulations to be consistent with the GHG

applicability thresholds 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 apply to all stationary sources in Indiana that

emit or have the potential to emit more than 100 or 250 tons of GHGs per year.

Indiana is planning to initiate an expedited rulemaking process in order to make

the necessary revisions to allow for timely adoption and implementation of U.S. EPA's

GHG tailoring approach. An estimate of time 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 - November 2010

Rule effective date - March 2011

I.

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Ms. Hedman

Page 20f2

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 authority to regulate GHGs as substances

determined to be air pollutants that are regulated by U.S. EPA under authority of the

Clean Air Act. Specifically, Indiana Code (IC) 13-15-1-1 states that the Air Pollution

Control Board (APCB) shall establish requirements for the issuance of permits to control

air pollution. Under IC 13-15-2-2(e), the boards (including the APCB) may adopt rules to

allow the department to issue permits when the rules adopted are consistent with

federal law for federally authorized or delegated permit programs. IC 13-17-3-6 states

that the APCB shall adopt rules that are necessary for the implementation of the federal

Clean Air Act. There are no prohibitions on regulating GHG emissions in Indiana

statutes or rules. The regulation of GHGs iS,allowed under the 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).

;inerel~

homas~. aste~Y Commissioner

If you 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 at teasterly@idem.in.gov. Thank you

for your consideration of this matter.

TWE/kb/sd/ghf

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

.~S8!~.,~~18D.~X~!~,.~,.f\A ChristinezPedersen,/IIDEN1

Betsy Ziatos, IDEM

Ann Long, IDEM

Gale Ferris, IDEM