Attachment - H

Fact Sheet
Indiana Department of Environmental Management

Air Pollution Control Board

Rule Fact Sheet - Final Adoption

March 4, 2009

DEVELOPMENT OF AMENDMENTS TO THE INDIANA CLEAN AIR

INTERSTATE RULE AT 326 lAC 24-1, 326 lAC 24-2, AND 326 lAC 24-3

LSA Doculllenll108-5

CAIR Vacatur Update: On December 23, 200S, the United States Court of Appeals for

the D.C. Circuit issued its ruling on the petitions for rehearing ofthe court's July II

decision to vacate the Clean Air Interstate Rule (CAIR) and the associated federal

implementation plan. The Court denied the petitions for rehearing en bane. However, the

panel granted the petition for rehearing to the extent that it remanded the rule without

vacatur.

Thus, CAIR remains effective until replaced by the U.S. EPA with a rule that comports

with the Court's July 11, 200S opinion. The Court did not set any deadline for U.S. EPA

to promulgate a replacement rule.

Charlli£!Lsinee Jlre.limill~ry a~IQP\ion: There is a change to a citation on page 21 ofthe rule.

Overview

This rulemaking amends the Indiana Clean

Air Interstatc Rule (CAIR).

Citations Affected

Amends: 326 lAC 24-1, 326 lAC 24-2, and

326 lAC 24-3.

Affectcd Persons

The public and thirty seven (37) power plants,

plus nine (9) non-electric generating units

(large industrial boilers).

Rcasons for the Rille

To amend the Indiana CAIR consistent with

amendments to the federal CAIR model rules

at 40 CFR 96 and as requested by U.S. EPA to

obtain full SIP approval.

Ecollomic Impact of the Rille

There is no cost to affected sources duc to

these minor changes to the Indiana CAm rule.

Bellefits of the Rule

The Indiana CAm rule will be consistent with

federal requirements.

Fact Sheet 2/18/2009 l\lgC I or J

Descriptioll of the Rlllemaking Project

On May 12,2005, U.S. EPA issued the

Clean Air Interstate Rule (CAIR) that

required 2S states, including Indiana, and the

District of Columbia, to supplement existing

regulations to achieve substantial reductions

ofsulfur dioxide (S02) and nitrogen oxides

(NO,) emissions from fossil fuel-fired power

plants. The Air Pollution Control Board

final adopted the Indiana CAIR rules on

November 1,2006, which became effective

on February 25, 2007. The Indiana CAm

rules (326 lAC 24) and amendments to the

NO, SIP Call rule (326 lAC 10-4) were first

submitted to U.S. EPA for approval on

January 19,2007. On October 22, 2007 (72

FR 594S0), U.S. EPA gave limited approval

of a revision to the Indiana state

implementation plan (SIP). During U.S.

EPA's review of the SIP submittal, US.

EPA identiiied a number of issues that need

to be addressed by an amendment to the

Indiana CAIR rules at 326 lAC 24.
Indiana's current CAIR NOx ozone season

rule expands the CAIR applicability

provisions to include, as CAIR NO, ozone

season units, NOx SIP Call units not

otherwise subject to the CAIR program that

do not generate electricity for sale (i.e., nonelectric generating units (non-EGUs) defined

as "large affected units" under the NO, SIP

Call rule at 326 lAC 10-4-2(27)). "Large

affected units" are generally defined as

boilers with a heat input greater than 2S0

million Btus per hour that do not sell

electricity to the grid. The key issue that

U.S. EPA identified affects the dcfinition of

"large affected unit" carried over li'om the

NO, SIP Call rule into the CAIR NO, ozone

season trading rule (326 lAC 24-3). U.S.

EPA has stated that the definition of "large

affected unit" in CAIR also needs to bring

into the CAIR program NO, SIP Call units

not otherwise subject to CAIR that do

generate electricity for sale (i.e., units

defined as "electric generating units" under

326 lAC 10-4-2(16)). This will address any

NOx SIP Call EGUs that may be exempt

from the CAIR NO, ozone season trading

rule due to the exemption for cogeneration

in CAIR. While these dcficiencies create

the potential for erroneous exclusion of units

from CAIR that may meet the N(\ SIP Call

applicability criteria in the future, IDEM is

not aware of any existing such NO, SIP Call

units at the present time. IDEM is also

either amending or adding the following

definitions in thc CAIR NO, ozonc season

trading rule that arc necessary to apply

Indiana's NO, SIP Call applicability

provisions and to apply other provisions of

Indiana's CAIR rule to NO, SIP CaJlunits:

"Coll1111cnce C0I11111Crcial operation'\

"elcctricity for sale under a firm contract to

the electric grid", "fossil-fucl-fired", and

"unit." IDEM is also proposing a few minor

wording changcs.

This rulemaking to amendlndiana's CAIR

rule also addresses U.S. EPA's revisions to

the definition ofeogencration unit published

on October 19,2007 (72 FR S91(0). CAIR

includes an exemption for cogcneration units

that meet ccrtain criteria. In light of

information concerning biomass-fired

cogeneration units that may not qualify for

the exemption due to their particular

combination of fuel and technical design

characteristics, U.S. EPA changed the

cogeneration unit definition in CAIR.

Specifically, U.S. EPA revised the

calculation methodology for the efficiency

standard in the cogeneration unit definition

to exclude energy input from biomass,

making it more likely that units co-firing

biomass will be able to meet thc cfficiency

standard and qualify for thc exemption.

U.S. EPA is rcquiring all CAIR states to

change their rules so that definitions remain

consistent across thc CAIR rcgion. IDEM is

not aware of any biomass units affected by

this revision in Indiana.

Scheduled Hearings

First Public Hearing: May 7, 2008, Room A,

Indiana Government Center South, 402 West

Washington Street, Indianapolis, Indiana.

Second Public Hearing: March 4, 2009.

Consideration of Factors Outlined in Indiana

Code 13-14-8-4

Indiana Code 13-14-8-4 rcquires that in

adopting rules and establishing standards, thc

board shall takc into account the following:

I) All existing physical conditions and the

character of the area affected.

2) Past, present, and probablc future uses of

the area, including the character ofthe uses of

surrounding areas.

3) Zoning classifications.

4) Thc nature of the existing air quality or

existing water quality, as appropriate.

S) Technical feasibility, including the

quality conditions that could reasonably be

achieved through coordinated control of all

[[lCtors affccting the quality.

6) Economic reasonablcness ofmeasuring or

reducing any particular typc of pollution.

(7) 'fhe right of all persons to an

cnvironmcnt sufficiently uncontaminated as

not to be injurious to:

(A) human, plant, animal, or aquatic life;

or

Facl Sheel 2/18/2009 Page :2 or 1
(B) the reasonable enjoyment of life and

property.

Consistency with Federal Requirements

The new rules are consistent with federal

rules.

Rulemaldng Process

The first step in the rulemaking process is a

first noticc published in the Indiana Register.

This includes a discussion ofissues and opens

a first comment period. The second notice is

then published which contains the comments

and the department's responses from the first

comment pcriod, a noticc of first

mceting/hearing, and the draft rulc. The Air

Pollution Control Board holds the first

meeting/hearing and public comments are

heard. The proposed rule is published in the

Indiana Register after preliminary adoption

along with a notice of second meeting/

hearing. Ifthe proposed rule is substantively

different from the draft rule, a third comment

period is required. The second public

meeting/hearing is held and public comments

are beard. Once final adoption occurs, the

rule is reviewed for form and legality by the

Attorney General, signed by the Governor,

and becomes effective 30 days after flling

with the Legislative Services Agency.

IDEM Contact

Additional information regarding this

rulemaking action can be obtained from Susan

Bcm, Rules Development Section, (317) 233-

5697 or (800) 45 I-6027 (in Indiana)

Fact Sheet 2/ 18/2009 Page 3 01'3
Attachment - I

Admin Checklist
ADMINISTRATIVE CHECKLIST (40 CFR 51, Appendix V)

1. The submittal is accompanicd by a fonnal letter ofsubmittal Enclosed

fron; the govemor or his designee.

2. Evidence that thc Statc has adopted the plan in the State code Attachment B

or body ofregulations; or issued thc pennit, order, consent

agreement ("document"); in final form.

a. Date of adoption or final issuance: March 4, 2009

b. The effective date ofthe plan, if different June 11,2009

from the adoptionlissuance date.

3. Evidence that the State has the necessary legal authority IC 13-14-8

under state law to adopt and implement the plan.

4. A copy ofthe actual regulation or document submitted for Attachment A

approval and incorporation by reference into thc plan,

including the following:

a. Indication ofthe changes made to the existing

approved plan, where applicable.

b. The submittal shall be a copy ofthe official State

regulation or document signed, stamped, dated by

the appropriate state official indicating that it is fully

enforceable by the State. Effective date shall be stated

in the document itself.

5. Evidence that the State followed all ofthe procedural

requirements of the State's laws and constitution in

conducting and completing the adoptionlissuance ofthe plan.

Attachment B

6. Evidence that public notice was given, including date of Attachment C, D, G

proof of publication.

_X_ Notice of First Public Hearing and Publishers' Affidavits

_X_ Notice of Second Public Hearing and Publishers' Affidavits

7. Certification that public hearings were held in accordance

with infom1ation provided in public hearing notice.

X Transcript from First Public Hearing - -

_X_ Transcript frol11 Second Public Hearing

8. Compilation of public cOl11ments and State's response.

_.X_ Proposed Ruled

Attachment E, F

Attachment G