# Attachment- H Fact Sheet

### Indiana Departmentof 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 December23, 200S, the United States Court ofAppeals 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 achange to a citation on page 21 ofthe rule.

Overview This rulemaking amends the Indiana Clean AirInterstatc Rule (CAIR).

Citations Affected Amends: 326 lAC 24-1, 326 lAC 24-2, and 326 lAC 24-3.

Affectcd Persons Thepublic and thirty seven (37)powerplants, 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 CFR96 and asrequested by U.S. EPA to obtain full SIP approval.

Ecollomic Impact ofthe Rille There is no cost to affected sources duc to these minorchanges to the IndianaCAm rule.

Bellefits ofthe Rule The Indiana CAm rule will be consistent with federal requirements.
Fact Sheet 2/18/2009 l\lgC I orJ Descriptioll ofthe 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 ofColumbia, 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 ofa revision to the Indiana state implementation plan (SIP). During U.S. EPA's review ofthe SIP submittal, US. EPA identiiied a number ofissues that need to be addressed by an amendment to the Indiana CAIR rules at 326 lAC 24.Indiana's current CAIRNOxozone season rule expands the CAIR applicability provisions to include, as CAIRNO, ozone
season units, NOxSIP 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 NOxSIP 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 ofunits from CAIR that may meet the N(\ SIP Call applicability criteria in the future, IDEM is not aware ofany 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 theirparticular combination offuel 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 theirrules so that definitions remain consistent across thc CAIR rcgion. IDEM is not aware ofany 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 ofFactors 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 characterofthe area affected.

2) Past, present, and probablc future uses of the area, includingthe characterofthe uses of surrounding areas.

3) Zoning classifications. 4) Thc nature ofthe 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) Economicreasonablcness ofmeasuringor reducing any particular typc ofpollution.

(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 oflife 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 inthe

### Indiana Register. This includes adiscussionofissues andopens
a first commentperiod. 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, athird comment period is required. The second public meeting/hearingis held andpublic 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 rulemakingactioncanbeobtainedfrom Susan Bcm, Rules DevelopmentSection, (317) 233- 5697 or (800) 45I-6027 (in Indiana)

Fact Sheet 2/18/2009 Page 3 01'3

# Attachment- I Admin Checklist

### ADMINISTRATIVE CHECKLIST (40 CFR51, Appendix V)



### 1. The submittal is accompanicd by afonnal letter ofsubmittal Enclosed fron; the govemor orhis designee.

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

orbody ofregulations; or issued thc pennit, order, consent agreement ("document"); in final form.

a. Date ofadoption or final issuance: March 4, 2009

b. The effective date ofthe plan, ifdifferent June 11,2009 from the adoptionlissuance date.

3. Evidencethatthe State has the necessarylegal authority IC 13-14-8 under state law to adopt and implementtheplan.

4. Acopyofthe actual regulationordocument submitted for AttachmentA approval and incorporationbyreference into thcplan, including the following:

a. Indication ofthe changes made to the existing approvedplan, where applicable.

b. The submittal shall be acopyofthe official State regulation ordocument signed, stamped, dated by the appropriate state official indicating thatit is fully enforceableby the State. Effective date shall be stated in the documentitself.

5. Evidence thatthe State followed all oftheprocedural requirements ofthe State's laws and constitutionin conducting and completingthe adoptionlissuance ofthe plan. AttachmentB

6. Evidence thatpublic noticewas given, including date of AttachmentC, D, G proofofpublication. _X_Notice ofFirstPublic Hearing and Publishers' Affidavits _X_Notice ofSecond Public Hearing and Publishers' Affidavits

7. Certificationthatpublic hearings were held in accordance with infom1ation provided in public hearing notice. X Transcript from First Public Hearing

- - _X_

### Transcript frol11 SecondPublic Hearing

8. Compilation ofpublic cOl11ments and State's response. 

### _.X_ Proposed Ruled AttachmentE, F

Attachment G