### INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT

We Protect Hoosiers and Our Environment.

Mitchell E. Daniels Jr.

Governor

Thomas W Easterly

Commissioner



### Susan Hedman
Regional Administrator

U.S. EPA, Region 5

77 West Jackson Boulevard Chicago, lllinois 60604

Dear Ms. Hedman: July 12, 2012 1 00 North Senate Avenue
Indianapolis, Indiana 46204 (317) 232-8603

Toll Free (800) 451-6027 www.idem.IN.gov



### Re: State Implementation Plan and Title V Program Approval Submittal for Indiana Regarding Revisions to

326 lAC 2, Concerning PM 2

.5 

### NSR

Pursuant to Section 110 ofthe Clean Air Act and Title 13 ofthe Indiana Code, the Indiana
Department ofEnvironmental Management (IDEM) submits an amendment to the Indiana state implementation plan (SIP). This amendment consists of revisions to 326 lAC 2 accomplished through

one rulemaking. IDEM requests that the United States Environmental Protection Agency (U.S. EPA)

approve the change s to the following citations into Indiana 's SIP:

326 lAC 2-1.1-1(2)

326 lAC 2-1.1-1(10)

326 lAC 2-2-l(dd)(l)

326 lAC 2-2-1(ff)(7)

326 lAC 2-2-1(ss)(1)

326 lAC 2-2-l(ww)(1)(F)

326 lAC 2

-2

- l(ww)(l)(G)

326 lAC 2-2-4(b)(2)(vi)

326 lAC 2-2-4(c)(4)

326 lAC 2-3-l(mm)(3)

326 lAC 2-3-l(pp)

In addition, IDEM requests that U.S. EPA approve the rel ated changes to Indiana ' s Title V
Program in 326 lAC 2-7-1(2 1)(E)(vi) and 326 lAC 2-7-1(42)(C)(ii)(FF)

.

These changes to Indiana' s permitting rules addres s precursors to ozone and particulate

matter with an aerodynamic diameter l ess than or equal to a nominal two and five-tenths (2.5)

micrometers (PM2. 5 ), 

### and condensables for PM2

. 5

. 

### It 

### is IDEM's intent that these changes also

address the applicable requirements of Section 110(a)(l) and (2) ofthe Clean Air Act. IDEM i s

not reque sting any action be taken on any other parts ofthe rulemakin g included with thi s letter.

This submittal consists of one (1) 

### hard copy ofthe required documentation. 

### An electronic

version of the submittal in PDF format that i s identical to the hard copy has been sent to Chris Panos at

R ecy cl

e d Paper 

### <i} A n Equal Opportunity Empl oyer P le ase R e cycl e 

## 0

### Ms. Hedman
Page 2

the U.S. EPA Region V office. In order to assist with your review of this state implementation plan
submission, a list of supporting documents is attached.

Throughout the development of this rule, staff of the Office of Air Quality worked closely with

your staffto ensure that any potential problems that might exist with this requested state implementation plan revision would be resolved. I request that U.S. EPA approve these modifications

of Indiana's state implementation plan. If you have any questions regarding this submittal, please

contact Scott Deloney

, Air Programs Branch Chief

, Office of Air Quality at (317) 233-5694.

KB /cep
Attachments: Supporting Documents Sincerely,

# ){~**Ba~ r**  Keith Baugues

Assistant Commissioner

Office of Air Quality

cc: John Mooney, U.S. EPA Region 5 (no enclosures)
Doug Aburano, U.S. EPA Region 5 (no enclosures)

Steve Rosenthal

, U.S

. EPA R egi on 5 (no enclosures)

Scott Deloney

, IDEM (no enclosures)

Christine Peder sen, IDEM (no enclosures)

SIP file

### Supporting Documents

Attachment A: Administrative Checklist (40 CPR 51, Appendix V)

Attachment B: Final Rule. LSA Document #ll-25l(F) as published in the Indiana Register on July
11,2012 (DIN: 20120711-IR-326110251FRA)

Attachment C: Signature Page

Attachment D: Second Notice, Section 7 Notice or Section 8 Notice, including the Notice of Public Hearing, as published in the Indiana Register on December 14, 2011 (DIN: 20111214-IR326110251SNA and DIN: 20111214-IR-326110251PHA)

Attachment E: Publisher's Affidavits

Attachment F: Transcript ofFirst Public Hearing, including Exhibits, held on February 1, 2012.

Attachment G: Proposed Rule, including the Notice of Public Hearing, as published in the Indiana Register on February 29,2012 (DIN: 20120229-IR-326110251PRA and DIN: 20120229-IR326110251PHA)

Attachment 

## H: Transcript of Second Public Hearing, including Exhibits, held on May 2, 2012.

Attachment I: Emergency Rules

# A

I



### I I



### I I



### I I



### I I



### I I



### I I



### I I

I



### I

### ADMINISTRATIVE CHECKLIST (40 CFR 51, Appendix V)



### 1. The submittal is accompanied by a formal letter of submittal Enclosed

from the governor or his designee.

2. Evidence that the State has adopted the plan in the State code Attachment C

or body of regulations; or issued the permit, order, consent
agreement ("document"); in final form.

a. Date of adoption or final issuance: June 11, 2012

b. The effective date of the plan, if different July 11, 2012

from the adoption/issuance 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 B approval and incorporation by reference into the plan, including the following:

a. Indication of the changes made to the existing approved plan, where applicable.

b. The submittal shall be a copy of the 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 of the procedural requirements of the State's laws and constitution in conducting and completing the adoption/issuance of the plan. Attachment C

6. Evidence that public notice was given, including date of Attachments D, E, and G proof ofpublication.

_X_ Notice of First Public Hearing and Publisher's Affidavits

_X_ Notice of Second Public Hearing and Publisher's Affidavits

7. Certification that public hearings were held in accordance

with information provided in public hearing notice.

_X_ Transcript from First Public Hearing

_X_ Transcript from Second Public Hearing

8. Compilation ofpublic comments and State's response.

X Second Notice

-- 

### _X_ Proposed Rule Attachments F and H

Attachments D, F, G and H

# BTITLE 326 AIR POLLUTION CONTROL BOARD

Final Rule LSA Document #11-251(F)

DIGEST

Amends 326 IAC 1-2

, 326 IAC 2- 1.1

, 326 IAC 2-2

, 326 IAC 2- 3

, 326 IAC 2- 5.1

, 326 IAC 2- 5.5

, 326 IAC 2- 6.1

, 326 IAC 2- 7

, 326 IAC 2- 8

, 326 IAC 4- 1 , and 326 IAC 5- 1 concerning new source review (NSR) provisions for particulate matter less than 2.5 microns (PM 2.5), amendments to definitions of terms in 326 IAC 2 to defer carbon dioxide (CO 2) emissions from bioenergy and other biogenic sources from greenhouse gas permitting requirements, and amendments necessary to identify nitrogen oxides (NO

x) as a precursor to ozone and IDEM is proposing to include a reference to PM 2.5 at 326 IAC 4- 1 and 326 IAC 5- 1 . Effective 30 days after filing with the

Publisher.

HISTORY First Notice of Comment Period: May 4, 2011, Indiana Register (DIN: 20110504-IR-326110251FNA). Continuation of First Notice of Comment Period: September 7, 2011, Indiana Register (DIN:

20110907-IR-326110251FCA). Second Notice of Comment Period: December 14, 2011, Indiana Register (DIN:

20111214-IR-326110251SNA). Notice of First Hearing: December 14, 2011, Indiana Register (DIN: 20111214-IR-326110251PHA). Date of First Hearing: February 1, 2012. Proposed Rule: February 29, 2012, Indiana Register (DIN: 20120229-IR-326110251PRA). Notice of Second Hearing: February 29, 2012, Indiana Register (DIN: 20120229-IR-326110251PHA). Change in Notice of Public Hearing: March 7, 2012, Indiana Register (DIN: 20120307-IR-326110251CHA). Date of Second Hearing: May 2, 2012.

326 IAC 1-2-52 ; 326 IAC 2- 1.1- 1 ; 326 IAC 2- 1.1-3 ; 326 IAC 2-2- 1 ; 326 IAC 2-2-4 ; 326 IAC 2-2-6 ; 326 IAC 2-2-

14 ; 326 IAC 2-3- 1 ; 326 IAC 2-3-2 ; 326 IAC 2-3-3 ; 326 IAC 2-5.1-2 ; 326 IAC 2-5.1-3 ; 326 IAC 2-5.5- 1 ; 326 IAC

2-6.1-6 ; 326 IAC 2-7- 1 ; 326 IAC 2-7- 10.5 ; 326 IAC 2-8- 11.1 ; 326 IAC 4- 1-4.1 ; 326 IAC 5- 1-5

SECTION 1. 326 IAC 1-2- 52 IS AMENDED TO READ AS FOLLOWS:

326 IAC 1-2-52 "Particulate matter" or "PM" defined

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 15 ; IC 13- 17

Sec. 52. "Particulate matter" or "PM" means any airborne finely divided solid or liquid material, excluding uncombined water, with an aerodynamic diameter smaller than one hundred (100) micrometers (μm).

(Air Pollution Control Board; 326 IAC 1- 2-52; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2374; filed Apr 13, 1988, 3:35 p.m.: 11 IR 3020; filed Dec 20, 2004, 2:15 p.m.: 28 IR 1471; filed Jun 11, 2012, 3:15 p.m.:

20120711-IR-326110251FRA)

SECTION 2. 326 IAC 2- 1.1- 1 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2- 1.1- 1 Definitions

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 11-2 ; IC 13- 15 ; IC 13- 17

Sec. 1. For purposes of this article, the definition given for a term in this rule shall control in any conflict

between 326 IAC 1-2 and this article. In addition to the definitions provided in IC 13- 11-2 and 326 IAC 1-2 , the following definitions apply throughout this article unless expressly stated otherwise or unless the context clearly implies otherwise: (1) "Authorized individual" means an individual responsible for the overall operation of one (1) or more manufacturing, production, or operating plants or a duly authorized representative of the person. For any Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 1public agency, the term means either a ranking elected official, the chief executive officer, or a designated

representative of the person having responsibility for the overall operations of a principal geographic unit of the

agency. (2) "Direct PM 2.5 " means solid particles emitted directly from an air emissions source or activity, or gaseous emissions or liquid droplets from an air emissions source or activity that condense to form

PM 2.5 at ambient temperatures. Direct PM 2.5 emissions include elemental carbon, directly emitted organic carbon, directly emitted sulfate, directly emitted nitrate, and other inorganic particles, including, but not limited to, crustal material, metals, and sea salt. (2) (3) "General permit" means a permit that is applicable to a class or category of sources or modifications thereto, whether or not under common ownership or control, that are subject to similar applicable requirements. (3) (4) "Minor source" means any source or facility to which 326 IAC 2- 5.1 applies, but to which neither 326
IAC 2-2 nor 326 IAC 2- 3 applies. (4) (5) "New emissions unit" means an emissions unit for which construction commences on or after December 25, 1998. (5) (6) "New portable source" means any portable operation that: (A) has not commenced construction as of December 25, 1998; or (B) does not have a valid operating permit as of December 25, 1998. (6) (7) "New source" means a source for which construction commences on or after December 25, 1998, that

will be constructed: (A) on undeveloped land; or (B) at a location for which a valid permit has not been issued. (7) (8) "Opacity" means the degree to which emissions reduce the transmission of light and obscure the view of an object in the background. (8) (9) "Operation" means: (A) a single piece of equipment or multiple pieces of like equipment; (B) a process or multiple like processes; (C) a plant or multiple like plants; or (D) any combination of clauses (A) through (C); that performs similar functions or when operated together produces similar products. The term includes equipment or technology modifications, process or procedure modifications, reformulation or redesign of products, substitution of raw materials, and improvements in housekeeping, maintenance, training, or inventory control. The term does not include recycling, energy recovery, treatment, disposal, or the use of any add-on air pollution control technology. (10) "PM 10 " has the meaning set forth at 326 IAC 1-2-52.4 and, for purposes of this article, includes gaseous emissions or liquid droplets from an air emissions source or activity that condense to form

PM 10 at ambient temperatures. (9) (11) "Portable source" means any operation, process, or emissions unit, other than mobile sources, that emits or has the potential to emit any regulated air pollutant and is specifically designed to be and capable of being moved from one (1) location or site to another location or site and is moved to other locations or sites at least one (1) time during the term of the permit. Indicia of transportability include, but are not limited to: (A) wheels; (B) skids; (C) trailer; or (D) platform. (10) (12) "Potential to emit" means the maximum capacity of a stationary source or emissions unit to emit any air pollutant under its physical and operational design. Any physical or operational limitation on the capacity of a source to emit an air pollutant, including air pollution control equipment and restrictions on hours of operation or type or amount of material combusted, stored, or processed, shall be treated as part of its design if the limitation is enforceable by the U.S. EPA, the department, or the appropriate local air pollution control agency. The term does not alter or affect the use of potential to emit for any other purpose under the CAA, (or "capacity factor" as used in Title IV of the CAA) or the regulations promulgated thereunder. (11) (13) "Process" means any combination of equipment that is physically connected and operated in sequence that, when the process is operated, could operate independently to: (A) generate energy; (B) refine or produce materials or parts; or (C) produce a finished product.

(Air Pollution Control Board; 326 IAC 2- 1.1- 1 ; filed Nov 25, 1998, 12:13 p.m.: 22 IR 980; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3105; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Feb 6, 2012, 2:54

p.m.: 20120307-IR-326090493FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA) Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 2SECTION 3. 326 IAC 2- 1.1- 3 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2- 1.1-3 Exemptions

Authority: IC 13- 14-8 ; IC 13- 15-2 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 15 ; IC 13- 17

Sec. 3. (a) The operation of a source that consists solely of emission units, operations, or processes identified in this section is exempt from the registration and permitting requirements of this article unless the potential to emit any regulated pollutant from the entire source exceeds an emission threshold establishing the requirement to have a registration or permit under this article.

(b) [Voided by P.L.112-2000, SECTION 7, effective March 16, 2000.]

(c) Construction or modification of any emission unit, operation, or process identified in this section is exempt from the new source requirements in 326 IAC 2- 5.1-2 for registrations, new source requirements in 326 IAC 2- 5.1-

3 for permits, modification approval requirements in 326 IAC 2- 7- 10.5 , and permit revision requirements in 326
IAC 2- 6.1- 6 and 326 IAC 2- 8- 11.1 , unless the construction or modification: (1) is subject to federal prevention of significant deterioration (PSD) requirements as set out in 326 IAC 2-2 and 40 CFR 52.21*; (2) is subject to nonattainment new source review requirements as set out in 326 IAC 2- 3 ; (3) is located at a source that has an operating permit issued under 326 IAC 2- 7 , where the construction or modification would be considered a Title I modification under 40 CFR Part 70*; or (4) would result in the source needing to make a transition to an operating permit issued under 326 IAC 2- 6.1

, 326 IAC 2- 7 , or 326 IAC 2- 8

.

(d) The new source requirements of 326 IAC 2- 5.1-2 for registrations and 326 IAC 2- 5.1- 3 for permits, including the requirement to submit an application, do not apply to new or modifications to existing sources as

follows: (1) New sources or modifications to existing sources that obtain and comply with one (1) of the following enforceable operating agreements under 326 IAC 2- 9: (A) 326 IAC 2- 9-2.5 or 326 IAC 2- 9- 3 for surface coating operations. (B) 326 IAC 2- 9-4 (b) through 326 IAC 2- 9-4 (d) and 326 IAC 2- 9-4 (f) for woodworking operations. (C) 326 IAC 2- 9- 5 for abrasive cleaning operations. (D) 326 IAC 2- 9- 7 (b)(1) for sand and gravel operations. (E) 326 IAC 2- 9- 8 (b)(1) for crushed stone processing plants. (F) 326 IAC 2- 9- 9 for concrete batch operations. (G) 326 IAC 2- 9- 10 for coal mines and coal preparation plants that: (i) have provided public notice under 312 IAC 25-4- 108 ; and (ii) included a reference of the application for an operating agreement in the notice. (H) 326 IAC 2- 9- 11 for automobile refinishing operations. (I) 326 IAC 2- 9- 12 for degreasing operations. (2) New sources or modifications to existing sources that obtain and comply with up to four (4) of the enforceable operating agreements under 326 IAC 2- 9 if the total source potential to emit is less than the following thresholds: (A) Twenty-five (25) tons per year of either particulate matter PM, or particulate matter less than ten (10)

microns PM 10 , or direct PM 2.5 . (B) Twenty-five (25) tons per year of the following pollutants: (i) Sulfur dioxide (SO 2). (ii) Nitrogen oxides (NO

x). (C) Twenty-five (25) tons per year of VOC for sources that are not described by clause (D). (D) Twenty-five (25) tons per year of VOC for sources that require the use of air pollution control equipment to comply with the applicable provisions of 326 IAC 8

. (E) One hundred (100) tons per year of carbon monoxide (CO). (F) Five (5) tons per year of lead (Pb). (G) Twenty-five (25) tons per year of the following regulated air pollutants: (i) Hydrogen sulfide (H 2 S). (ii) Total reduced sulfur (TRS). Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 3(iii) Reduced sulfur compounds.

(iv) Fluorides. (3) New sources that comply with the limitations set forth in 326 IAC 2- 11

. (4) New sources eligible for and obtaining a general permit that includes emissions limits that are less than the applicability thresholds in 326 IAC 2- 5.1-2 and 326 IAC 2- 5.1- 3

. (5) New sources with the potential to emit less than ten (10) tons per year of a single HAP, as defined under Section 112(b) of the CAA, or twenty-five (25) tons per year of any combination of HAPs, and not otherwise required to apply for and obtain a registration or permit. The exclusion from the new source requirements of 326 IAC 2- 5.1-2 for registrations and 326 IAC 2- 5.1- 3 for permits under subdivisions (1) through (4) shall only apply to those rules and rule sections that have been approved by the U.S. EPA as part of the SIP.

(e) Except for modifications subject to 326 IAC 2-2 or 326 IAC 2- 3 , the new source requirements of 326 IAC 2-

5.1-2 for registrations and 326 IAC 2- 5.1- 3 for permits, the modification approval requirements under 326 IAC 2- 7-

10.5 , and the permit revision requirements under 326 IAC 2- 6.1- 6 and 326 IAC 2- 8- 11.1 , including the requirement to submit an application, do not apply to the following: (1) New sources or modifications to existing sources that are proposed to be operated or constructed, that have the potential to emit less than the following amounts: (A) Five (5) tons per year of either particulate matter PM, or particulate matter with an aerodynamic diameter

less than ten (10) micrometers PM 10 , or direct PM 2.5 . (B) Ten (10) tons per year of sulfur dioxide (SO 2). (C) Ten (10) tons per year of nitrogen oxides (NO

x). (D) Ten (10) tons per year of VOC for sources or modifications. (E) Twenty-five (25) tons per year of carbon monoxide (CO). (F) Two-tenths (0.2) ton per year of lead (Pb). (G) One (1) ton per year of a single HAP or two and one-half (2.5) tons per year of any combination of HAPs listed pursuant to Section 112(b) of the CAA. (H) Five (5) tons per year of the following regulated air pollutants: (i) Hydrogen sulfide (H 2 S). (ii) Total reduced sulfur (TRS). (iii) Reduced sulfur compounds. (iv) Fluorides. (2) Modifications of existing sources that consist of only an emissions unit or units or process or processes whose primary purpose is to conduct research and development into new processes and products, provided

the modification: (A) is operated under the close supervision of technically trained personnel; (B) is conducted for the primary purpose of theoretical research or research and development into new or improved processes and products; (C) does not manufacture more than de minimis amounts of commercial products; (D) does not contribute to the manufacture of commercial products by collocated sources in more than a de minimis manner; and (E) is not subject to 326 IAC 2-2 or 326 IAC 2- 3

. (3) New sources or modifications of existing sources that consist of only a laboratory as defined in this subdivision. As used in this subdivision, "laboratory" means a place or activity, such as a medical, analytical, or veterinary laboratory, devoted to experimental study or teaching or to the testing and analysis of drugs, chemicals, chemical compounds or other substances, or similar activities, provided that the activities described in this subdivision are conducted on a laboratory scale. Activities are conducted on a laboratory scale if the containers used for reactions, transfers, and other handling of substances are designed to be easily and safely manipulated by one (1) person. If a laboratory manufactures or produces products for profit in more than a de minimis manner, it shall not be considered to be a laboratory under this subdivision. Support activities necessary to the operation of the laboratory are considered to be part of the laboratory. Support activities do not include the provision of power to the laboratory from emission units that provide power to multiple projects or from emission units that would otherwise require permitting, such as boilers that provide power to a source or solid waste disposal units, such as incinerators. (4) New sources or modifications of existing sources that consist of only educational and teaching activities as defined in this subdivision. As used in this subdivision, "educational and teaching activities" means activities conducted at public and nonpublic schools and postsecondary educational institutions for educational, vocational, agricultural, occupational, employment, or technical training purposes provided the activities do not include the production of an intermediate or final product for sale or exchange for commercial profit or distribution. Support activities necessary to the educational and teaching activities are considered to be part of Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 4the educational and teaching activities. Support activities do not include the provision of power to the

educational and teaching activities from emission units that provide power to multiple projects or from emission units that would otherwise require permitting, such as boilers that provide power to a source or solid waste disposal units, such as incinerators. (5) New sources or modifications of existing sources that consist of only combustion related activities, as

follows: (A) Space heaters, process heaters, heat treat furnaces, or boilers described as follows: (i) Natural gas-fired combustion sources with heat input equal to or less than ten million (10,000,000) British thermal units per hour. (ii) Propane or liquefied petroleum gas or butane-fired combustion sources with heat input equal to or less than six million (6,000,000) British thermal units per hour. (iii) Fuel oil-fired combustion sources: (AA) with heat input equal to or less than two million (2,000,000) British thermal units per hour; and (BB) firing fuel containing equal to or less than five-tenths percent (0.5%) sulfur by weight. (iv) Wood-fired combustion sources: (AA) with heat input equal to or less than one million (1,000,000) British thermal units per hour; and (BB) not burning treated wood or chemically contaminated wood. (B) Equipment powered by diesel fuel fired or natural gas fired internal combustion engines of capacity equal to or less than five hundred thousand (500,000) British thermal units per hour, except where total capacity of equipment operated by one (1) stationary source exceeds two million (2,000,000) British thermal units per hour. (C) Combustion source flame safety purging on start-up. (D) Portable electrical generators that can be moved by hand from one (1) location to another. As used in this clause, "moved by hand" means that it can be moved without the assistance of any motorized or nonmotorized vehicle, conveyance, or device. (E) Combustion emissions from propulsion of mobile sources. (F) Fuel use related to food preparation for on-site consumption. (G) Tobacco smoking rooms and areas. (H) Blacksmith forges. (I) Indoor and outdoor kerosene heaters. (6) New sources or modifications of existing sources that consist of only activities that dispense fuel, as

follows: (A) A gasoline dispensing operation: (i) having a storage tank capacity equal to or less than ten thousand five hundred (10,500) gallons; and (ii) dispensing less than or equal to one thousand three hundred (1,300) gallons per day. Such storage tanks may be in a fixed location or on mobile equipment. (B) A petroleum fuel other than a gasoline dispensing facility: (i) having a storage tank capacity less than or equal to ten thousand five hundred (10,500) gallons; and (ii) dispensing three thousand five hundred (3,500) gallons per day or less. (7) New sources or modifications of existing sources that consist of only the following VOC and HAP storage

containers: (A) Storage tanks with: (i) capacity less than or equal to one thousand (1,000) gallons; and (ii) annual throughputs equal to or less than twelve thousand (12,000) gallons. (B) Vessels storing the following: (i) Lubricating oils. (ii) Hydraulic oils. (iii) Machining oils. (iv) Machining fluids. (8) New sources or modifications of existing sources that consist of only refractory storage not requiring air pollution control equipment. (9) New sources or modifications of existing sources that consist of only equipment used exclusively for the following: (A) Packaging of the following: (i) Lubricants. (ii) Greases. (B) Filling drums, pails, or other packaging containers with the following: (i) Lubricating oils. (ii) Waxes. (iii) Greases. (10) New sources or modifications of existing sources that consist of only the following: Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 5(A) Application of:

(i) oils; (ii) greases; (iii) lubricants; and (iv) nonvolatile material; as temporary protective coatings. (B) Machining where an aqueous cutting coolant continuously floods the machining interface. (C) Degreasing operations that do not exceed one hundred forty-five (145) gallons per twelve (12) months except if subject to 326 IAC 20- 6

. (D) Cleaners and solvents characterized as having a vapor pressure equal to or less than: (i) two (2) kilo Pascals (fifteen (15) millimeters of mercury or three-tenths (0.3) pound per square inch) measured at thirty-eight (38) degrees Centigrade (one hundred (100) degrees Fahrenheit); or (ii) seven-tenths (0.7) kilo Pascal (five (5) millimeters of mercury or one-tenth (0.1) pound per square inch) measured at twenty (20) degrees Centigrade (sixty-eight (68) degrees Fahrenheit); the use of which, for all cleaners and solvents combined, does not exceed one hundred forty-five (145) gallons per twelve (12) months. (E) The following equipment related to manufacturing activities not resulting in the emission of HAPs as defined under Section 112(b) of the CAA: (i) Brazing. (ii) Cutting torches. (iii) Soldering. (iv) Welding. (F) Closed loop heating and cooling systems. (G) Infrared cure equipment. (H) Exposure chambers (towers or columns), for curing of ultraviolet inks and ultraviolet coatings where heat is the intended discharge. (I) Any of the following structural steel and bridge fabrication activities: (i) Cutting two hundred thousand (200,000) linear feet or less of one (1) inch plate or equivalent per year. (ii) Using eighty (80) tons or less of welding consumables per year. (11) New sources or modifications of existing sources that consist of only activities associated with the following recovery systems: (A) Rolling oil recovery systems. (B) Ground water oil recovery wells. (12) New sources or modifications of existing sources that consist of only solvent recycling systems with batch capacity less than or equal to one hundred (100) gallons. (13) New sources or modifications of existing sources that consist of only the following water based activities: (A) Activities associated with the treatment of wastewater streams with an oil and grease content less than or equal to one percent (1%) by volume. (B) Water runoff ponds for petroleum coke-cutting and coke storage piles. (C) Activities associated with the transportation and treatment of sanitary sewage, provided discharge to the treatment plant is under the control of the owner or operator, that is, an on-site sewage treatment facility. This does not include sanitary sludge incineration. (D) Any operation using aqueous solutions containing less than or equal to one percent (1%) by weight of VOCs excluding HAPs as defined under Section 112(b) of the CAA. (E) Water-based adhesives that are less than or equal to five percent (5%) by volume of VOCs excluding HAPs as defined under Section 112(b) of the CAA. (F) Noncontact cooling tower systems with either of the following: (i) Natural draft cooling towers not regulated under a NESHAP. (ii) Forced and induced draft cooling tower systems not regulated under a NESHAP. (G) Quenching operations used with heat treating processes. Oil, grease, or VOC content shall be determined by a test method acceptable to the commissioner and the

U.S. EPA. (14) New sources or modifications of existing sources that consist of only trimmers that: (A) do not produce fugitive emissions; and (B) are equipped with a dust collection or trim material recovery device, such as a bag filter or cyclone. (15) New sources or modifications of existing sources that consist of only stockpiled soils from soil remediation activities that are covered and waiting transport for disposal. (16) New sources or modifications of existing sources that consist of only paved and unpaved roads and parking lots with public access. (17) New sources or modifications of existing sources that consist of only general construction activities not

related to the construction of an emissions unit. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 6(18) New sources or modifications of existing sources that consist of only conveyors as follows:

(A) Covered conveyors for solid raw material, including: (i) coal or coke conveying less than or equal to three hundred sixty (360) tons per day; or (ii) limestone conveying less than or equal to seven thousand two hundred (7,200) tons per day for sources other than mineral processing plants constructed after August 31, 1983. (B) Uncovered coal or coke conveying less than or equal to one hundred twenty (120) tons per day. (C) Underground conveyors. (D) Enclosed systems for conveying plastic raw material and plastic finished goods. (19) New sources or modifications of existing sources that consist of only coal bunker and coal scale exhausts

and associated dust collector vents. (20) New sources or modifications of existing sources that consist of only asbestos abatement projects regulated by 326 IAC 14- 10

. (21) New sources or modifications of existing sources that consist of only routine maintenance and repair of buildings, structures, or vehicles at the source where air emissions from those activities would not be associated with any production process, as follows: (A) Purging of gas lines. (B) Purging of vessels. (22) New sources or modifications of existing sources that consist of only flue gas conditioning systems and associated chemicals, as follows: (A) Sodium sulfate. (B) Ammonia. (C) Sulfur trioxide. (23) New sources or modifications of existing sources that consist of only equipment used to collect any material that might be released during a malfunction, process upset, or spill cleanup, as follows: (A) Catch tanks. (B) Temporary liquid separators. (C) Tanks. (D) Fluid handling equipment. (24) New sources or modifications of existing sources that consist of only furnaces used for melting metals other than beryllium with a brim full capacity equal to or less than four hundred fifty (450) cubic inches by

volume. (25) New sources or modifications of existing sources that consist of only activities associated with emergencies, as follows: (A) On-site fire training approved by the commissioner. (B) Emergency generators as follows: (i) Gasoline generators not exceeding one hundred ten (110) horsepower. (ii) Diesel generators not exceeding one thousand six hundred (1,600) horsepower. (iii) Natural gas turbines or reciprocating engines not exceeding sixteen thousand (16,000) horsepower. (C) Stationary fire pump engines. (26) New sources or modifications of existing sources that consist of only grinding, and machining, operations controlled with fabric filters, scrubbers, mist collectors, wet collectors, and electrostatic precipitators with a design outlet grain loading of less than or equal to three-hundredths (0.03) grain per actual cubic foot and a gas flow rate less than or equal to four thousand (4,000) actual cubic feet per minute, as follows: (A) Deburring. (B) Buffing. (C) Polishing. (D) Abrasive blasting. (E) Pneumatic conveying. (F) Woodworking operations. (27) New sources or modifications of existing sources that consist of only purge double block and bleed

valves. (28) New sources or modifications of existing sources that consist of only filter or coalescer media changeout. (29) New sources or modifications of existing sources that consist of only vents from ash transport systems not operated at positive pressure. (30) New sources or modifications of existing sources that consist of only mold release agents using low volatile products with a vapor pressure less than or equal to two (2.0) kilo Pascals measured at thirty-eight (38) degrees Centigrade. (31) New sources or modifications of existing sources that consist of only farm operations, except concentrated animal feeding operations as defined in 40 CFR 122.23. (32) New sources or modifications of existing sources that consist of only water-related activities, as follows: (A) Production of hot water for on-site personal use not related to any industrial or production process. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 7(B) Water treatment activities used to provide potable and process water for the plant, excluding any

activities associated with wastewater treatment. (C) Steam traps, vents, leaks, and safety relief valves. (D) Cooling ponds. (E) Laundry operations using only water solutions of bleach or detergents. (F) Demineralized water tanks and demineralizer vents. (G) Boiler water treatment operations, not including cooling towers. (H) Oxygen scavenging (deaeration) of water. (I) Steam cleaning operations and steam sterilizers. (J) Pressure washing of equipment. (K) Water jet cutting operations. (33) New sources or modifications of existing sources that consist of only ventilation, venting equipment, and refrigeration, as follows: (A) Ventilation exhaust, central chiller water systems, refrigeration, and air conditioning equipment not related to any industrial or production process, including natural draft hoods or ventilating systems that do not remove air pollutants. (B) Stack and vents from plumbing traps used to prevent the discharge of sewer gases, handling domestic sewage only, excluding those at wastewater treatment plants or those handling any industrial waste. (C) Vents from continuous emissions monitors and other analyzers. (D) Natural gas pressure regulator vents, excluding venting at oil and gas production facilities. (E) Air vents from air compressors. (F) Vents for air cooling of electric motors provided the air does not commingle with regulated air pollutants. (G) Vents from equipment used to air blow water from cooled plastics strands or sheets. (34) New sources or modifications of existing sources that consist of only activities related to routine fabrication, maintenance, and repair of buildings, structures, equipment, or vehicles at the source where air emissions from those activities would not be associated with any commercial production process, as follows: (A) Activities associated with the repair and maintenance of paved and unpaved roads, including paving or sealing, or both, of parking lots and roadways. (B) Painting, including interior and exterior painting of buildings, and solvent use excluding degreasing operations utilizing halogenated organic solvents. (C) Brazing, soldering, or welding operations and associated equipment. (D) Portable blast-cleaning equipment with enclosures. (E) Blast-cleaning equipment using water as the suspension agent and associated equipment. (F) Batteries and battery charging stations, except at battery manufacturing plants. (G) Lubrication, including: (i) hand-held spray can lubrication; (ii) dipping metal parts into lubricating oil; or (iii) manual or automated addition of cutting oil in machining operations. (H) Nonasbestos insulation installation or removal. (I) Tarring, retarring, and repair of building roofs. (J) Bead blasting of heater tubes. (K) Instrument air dryer and filter maintenance. (L) Manual tank gauging. (M) Open tumblers associated with deburring operations in maintenance shops. (35) New sources or modifications of existing sources that consist of only activities performed using hand-held equipment, as follows: (A) Application of hot melt adhesives with no VOC in the adhesive formulation. (B) Buffing. (C) Carving. (D) Cutting, excluding cutting torches. (E) Drilling. (F) Grinding. (G) Machining wood, metal, or plastic. (H) Polishing. (I) Routing. (J) Sanding. (K) Sawing. (L) Surface grinding. (M) Turning wood, metal, or plastic. (36) New sources or modifications of existing sources that consist of only housekeeping and janitorial activities and supplies, as follows: Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 8(A) Vacuum cleaning systems used exclusively for housekeeping or custodial activities, or both.

(B) Steam cleaning activities. (C) Restrooms and associated cleanup operations and supplies. (D) Alkaline or phosphate cleaners and associated equipment. (E) Mobile floor sweepers and floor scrubbers. (F) Pest control fumigation. (37) New sources or modifications of existing sources that consist of only office-related activities, as follows: (A) Office supplies and equipment. (B) Photocopying equipment and associated supplies. (C) Paper shredding. (D) Blueprint machines, photographic equipment, and associated supplies. (38) New sources or modifications of existing sources that consist of only lawn care and landscape maintenance activities and equipment, including the storage, spraying, or application of insecticides, pesticides, and herbicides. (39) New sources or modifications of existing sources that consist of only storage equipment and activities, as

follows: (A) Pressurized storage tanks and associated piping for the following: (i) Acetylene. (ii) Anhydrous ammonia. (iii) Carbon monoxide. (iv) Chlorine. (v) Inorganic compounds. (vi) Liquid petroleum gas (LPG). (vii) Liquid natural gas (LNG). (viii) Natural gas. (ix) Nitrogen dioxide. (x) Sulfur dioxide. (B) Storage tanks, vessels, and containers holding or storing liquid substances that do not contain any VOC or HAP as defined under Section 112(b) of the CAA. (C) Storage tanks, reservoirs, and pumping and handling equipment of any size containing: (i) soap; (ii) vegetable oil; (iii) grease; (iv) wax; (v) animal fat; and (vi) nonvolatile aqueous salt solutions; provided appropriate lids and covers are utilized. (D) Storage of drums containing maintenance raw materials. (E) Storage of: (i) castings; (ii) lance rods; or (iii) any non-HAP containing material in solid form stored in a sealed or covered container. (F) Portable containers used for the collection, storage, or disposal of materials provided the: (i) container capacity is equal to or less than forty-six hundredths (0.46) cubic meter; and (ii) container is closed, except when the material is added or removed. (40) New sources or modifications of existing sources that consist of only emergency and standby equipment,

as follows: (A) Emergency (backup) electrical generators at residential locations, such as dormitories, prisons, and hospitals. (B) Safety and emergency equipment except engine driven fire pumps, including fire suppression systems and emergency road flares. (C) Process safety relief devices installed solely for the purpose of minimizing injury to persons or damage to equipment that could result from abnormal process operating conditions, as follows: (i) Explosion relief vents, diaphragms, or panels. (ii) Rupture discs. (iii) Safety relief valves. (D) Activities and equipment associated with on-site medical care not otherwise specifically regulated. (E) Vacuum producing devices for the purpose of removing potential accidental releases. (41) New sources or modifications of existing sources that consist of only sampling and testing equipment and activities, as follows: (A) Equipment used for quality control/assurance or inspection purposes, including sampling equipment Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 9used to withdraw materials for analysis.

(B) Hydraulic and hydrostatic testing equipment. (C) Ground water monitoring wells and associated sample collection equipment. (D) Environmental chambers not using HAP gases. (E) Shock chambers. (F) Humidity chambers. (G) Solar simulators. (H) Sampling activities, including: (i) sampling of waste; or (ii) glove box sampling, charging, and packaging. (I) Instrument air dryers and distribution. (J) VOC sampling activities associated with soil remediation projects. (42) New sources or modifications of existing sources that consist of only use of consumer products and equipment where the product or equipment is: (A) used at a source in the same manner as normal consumer use; and (B) not associated with any production process. (43) New sources or modifications of existing sources that consist of only equipment and activities related to the handling, treating, and processing of animals, as follows: (A) Equipment used exclusively to slaughter animals, but not including the following: (i) Rendering cookers. (ii) Boilers. (iii) Heating plants. (iv) Incinerators. (v) Electrical power generating equipment. (B) Veterinary operating rooms and laboratories. (44) New sources or modifications of existing sources that consist of only activities generating limited amounts of fugitive dust, as follows: (A) Fugitive emissions related to movement of passenger vehicles, provided: (i) the emissions are not counted for applicability purposes as a major source under 326 IAC 2- 7- 1 (22)(B);

and (ii) any required fugitive dust control plan or its equivalent is submitted. (B) Soil boring. (C) Road salting and sanding. (45) New sources or modifications of existing sources that consist of only activities associated with production,

as follows: (A) Closed, nonvented tumblers used for cleaning or deburring metal products without abrasive blasting. (B) Electrical resistance welding. (C) Carbon dioxide (CO 2) lasers, used only on metals and other materials that do not emit HAPs as defined under Section 112(b) of the CAA in the process. (D) Laser trimmers that: (i) do not produce fugitive emissions; and (ii) are equipped with a dust collection device, such as a bag filter, cyclone, or equivalent device. (E) Application equipment for hot melt adhesives with no VOC in the adhesive formulation. (F) Drop hammers or hydraulic presses for forging or metalworking. (G) Air compressors and pneumatically operated equipment, including hand tools. (H) Compressor or pump lubrication and seal oil systems. (I) Equipment used to mix and package: (i) soaps; (ii) vegetable oil; (iii) grease; (iv) animal fat; and (v) nonvolatile aqueous salt solutions; provided appropriate lids and covers are utilized. (J) Equipment for washing or drying fabricated glass or metal products, if no: (i) VOCs or HAPs as defined under Section 112(b) of the CAA are used in the process; and (ii) gas, oil, or solid fuel is burned. (K) Handling of solid steel, including coils and slabs, excluding scrap burning, scarfing, and charging into steel making furnaces and vessels. (46) The following types of miscellaneous equipment and activities: (A) Equipment used for surface coating, painting, dipping, or spraying operation, except those that will emit VOCs or HAPs as defined under Section 112(b) of the CAA. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 10(B) Condensate drains for natural gas and landfill gas.

(C) Electric or steam heated drying ovens and autoclaves, including only the heating emissions and not any associated process emissions. (D) Salt baths using nonvolatile salts, including caustic solutions that do not result in emissions of any regulated air pollutants. (E) Ozone generators. (F) Portable dust collectors. (G) Scrubber systems circulating water based solutions of inorganic salts or bases that are installed to be available for response to emergency situations. (H) Soil borrow pits. (I) Manual loading and unloading operations. (J) Purging of refrigeration devices using a combination of nitrogen and CFC-22 (R-22) as pressure test

media. (K) Construction and demolition operations. (L) Mechanical equipment gear boxes and vents that are isolated from process materials. (M) Nonvolatile mold release waxes and agents.

This subdivision is not meant to describe emission units or activities associated with the miscellaneous equipment and activities that would otherwise require approval under this article.

(f) 326 IAC 2- 7

, 326 IAC 2- 8 , and 326 IAC 2- 9 shall not apply to a source operating in compliance with the requirements of 326 IAC 2- 10 or 326 IAC 2- 11

.

(g) 326 IAC 2- 6.1 shall not apply to a source operating pursuant to one (1) of the following: (1) A Part 70 permit under 326 IAC 2- 7

. (2) A federally enforceable state operating permit (FESOP) under 326 IAC 2- 8

. (3) An operating agreement under 326 IAC 2- 9

. (4) A permit-by-rule under one (1) of the following rules: (A) 326 IAC 2- 10

. (B) 326 IAC 2- 11

.

(h) The requirements for an operating permit revision under 326 IAC 2- 6.1- 6 or 326 IAC 2- 8- 11.1 , modification approval under 326 IAC 2- 7- 10.5 , or an administrative amendment under 326 IAC 2- 8- 10 shall not apply to the following modifications: (1) A modification that has the potential to emit less than one (1) ton per year of a single HAP as defined under Section 112(b) of the CAA or two and five-tenths (2.5) tons per year of any combination of HAPs. (2) A modification at an existing source that meets the following: (A) The modification consists only of the following: (i) Changes in a method of operation. (ii) Minor physical changes as follows: (AA) The reconfiguration of existing equipment. (BB) The movement of existing equipment within a building. (CC) The replacement, reconfiguration, or addition of secondary equipment that supports an emission

unit. (DD) The replacement, reconfiguration, or addition of supporting devices, such as piping or ductwork. (EE) The replacement or addition of air pollution control devices. (FF) The removal of equipment. (iii) A combination thereof. of the changes in items (i) and (ii). (B) The modification does not result in an increase in the potential to emit that: (i) exceeds the significance levels established in 326 IAC 2-2- 1 ; (ii) exceeds the significance levels established in 326 IAC 2- 3- 1 ; (iii) is subject to 326 IAC 2-4.1 concerning new source toxics control; (iv) is greater than or equal to fifteen (15) pounds per day of VOCs from an existing source in Lake County or Porter County that has the potential to emit, as defined by 326 IAC 2- 3- 1 (gg), or actual emissions of twenty-five (25) tons per year; (v) is greater than or equal to twenty-five (25) pounds per day of NO

x from an existing source in Lake County or Porter County that has the potential to emit, as defined by 326 IAC 2- 3- 1 (gg), or actual emissions of twenty-five (25) tons per year; (vi) is greater than or equal to one (1) ton or more per year of lead or lead compounds measured as

elemental lead and the source is: (AA) a primary lead smelter; Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 11(BB) a secondary lead smelter;

(CC) a primary copper smelter; (DD) a lead gasoline additive plant; or (EE) a lead-acid storage battery manufacturing plant that produces two thousand (2,000) or more batteries per day; (vii) is greater than or equal to five (5) tons or more per year of lead or lead compounds measured as elemental lead and the source is not listed in item (vi); (viii) is greater than or equal to six-tenths (0.6) ton per year, for a source of lead emissions with a potential to emit greater than or equal to five (5) tons per year; (ix) is an emissions increase of VOC or NO

x subject to 326 IAC 2- 3-2 (b)(2) or 326 IAC 2- 3-2 (b)(3) at an existing source in Lake County or Porter County that emits or has the potential to emit twenty-five (25) tons per year of VOC or NO

x ; (x) is greater than or equal to fifteen (15) tons per year particulate matter with an aerodynamic diameter

less than or equal to ten (10) micrometers PM 10 ; or (xi) is greater than or equal to ten (10) tons per year direct PM 2.5 ; or (xi) (xii) is subject to the provisions of 326 IAC 8- 1- 6 that has not previously been subject to review in

accordance with 326 IAC 8- 1- 6

. (3) Temporary operations and experimental trials that involve construction, reconstruction, or modification and that meet the following criteria: (A) The potential emissions from the construction or reconstruction of a facility or source or the potential emissions increase from the modification are less than twenty-five (25) tons for the duration of the operation. (B) The construction, reconstruction, or modification is not a major source or modification as defined by 326
IAC 2-2

, 326 IAC 2- 3 , or 326 IAC 2- 7

. (C) The purpose of the construction, reconstruction, or modification is to: (i) collect data for experimental purposes, including, but not limited to, process improvements, new product development, and pollution prevention; or (ii) temporarily conduct an operation not considered part of the normal operation or production of the facility

or source. (D) The duration of the temporary operation or experimental trial is less than thirty (30) days of total operating time. (E) If the construction, reconstruction, or modification is part of a soil or water remediation project, the: (i) duration of the project is less than twenty-four (24) hours or a greater period, not to exceed seventy-two (72) hours, as determined to be necessary by the department considering the nature of the project or the manner of testing; and (ii) purpose of the project is to identify parameters necessary to design the remediation effort. (F) If the construction, reconstruction, or modification would otherwise require a modification approval or operating permit revision, the owner or operator shall provide the department written notice of the proposed construction, reconstruction, or modification at least seven (7) days before beginning the construction, reconstruction, or modification. The notice shall contain the following information: (i) A description of the purpose of the construction, reconstruction, or modification. (ii) A description of how the construction, reconstruction, or modification is experimental or not part of the normal operation or production of the facility or source. (iii) The dates the owner or operator anticipates the construction, reconstruction, or modification to begin, operations to begin, and operations to cease. (iv) An estimate of the potential emissions and actual emissions increase resulting from the construction or

reconstruction. (v) The equipment involved in the construction, reconstruction, or modification. (G) If the construction, reconstruction, or modification would otherwise require a modification approval or operating permit revision, the owner or operator shall provide the department written notice of the proposed construction, reconstruction, or modification at most seven (7) days after concluding the temporary operation or experimental trial. The notice shall contain the following information: (i) The actual start date of the construction, reconstruction, or modification. (ii) The duration of the temporary operation or experimental trial. (iii) The actual emissions occurring during the temporary operation or experimental trial. (H) The exemption provided by this subdivision shall not apply to facilities or sources whose operations are: (i) experimental in nature; (ii) part of pilot plants; or (iii) characterized by frequent product changes.

*These documents are incorporated by reference. Copies may be obtained from the Government Printing Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 12Office, 732 North Capitol Street NW, Washington, D.C. 20401 or are available for review and copying at the

Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2- 1.1-3; filed Nov 25, 1998, 12:13 p.m.: 22 IR 982; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3105; filed Dec 20, 2001, 4:30 p.m.: 25 IR 1550; filed Oct 1, 2010, 3:48 p.m.:

20101027-IR-326070372FRA; filed Feb 6, 2012, 2:54 p.m.: 20120307-IR-326090493FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 4. 326 IAC 2-2- 1 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-2- 1 Definitions

Authority: IC 13- 14-8 ; IC 13- 17-3

Affected: IC 13- 15 ; IC 13- 17

Sec. 1. (a) The definitions in this section apply throughout this rule.

(b) "Actual emissions" means the actual rate of emissions of a regulated new source review (NSR) pollutant from an emissions unit as determined in accordance with the following: (1) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive twenty-four (24) month period preceding the particular date and representative of normal source operation. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (2) The department may presume that source-specific allowable emissions for the unit are equivalent to the

actual emissions of the unit. (3) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. (4) The term shall not apply for calculating a significant emissions increase under section 2(d) of this rule or for establishing a PAL under 326 IAC 2-2.4 . Instead, subsections (e) and (pp) shall apply for those purposes.

(c) "Adverse impact on visibility" means visibility impairment that interferes with the management, protection, preservation, or enjoyment of the visitor's visual experience of the federal Class I area as defined in section 13 of this rule. This determination must be made on a case-by-case basis taking into account the geographic extent, intensity, duration, frequency, and time of visibility impairment, and how these factors correlate with: (1) times of visitor use of the federal Class I area; and (2) the frequency and timing of natural conditions that reduce visibility.

(d) "Allowable emissions" means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless a source is subject to enforceable permit limits that restrict the operating rate or hours of operation, or both) and the most stringent of the: (1) applicable standards as set forth in 40 CFR Part 60* and 40 CFR Part 61*; (2) SIP emissions limitation, including those with a future compliance date; or (3) emissions rate specified as an enforceable permit condition, including those with a future compliance date.

(e) "Baseline actual emissions" means the rate of emissions, in tons per year, of a regulated NSR pollutant, as determined in accordance with the following: (1) For any existing electric utility steam generating unit, the term means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive twenty-four (24) month period selected by the owner or operator within the five (5) year period immediately preceding when the owner or operator begins actual construction of the project. The commissioner shall allow the use of a different time period upon a determination that it is more representative of normal source operation. The baseline actual emissions shall be determined in accordance with the following: (A) The average rate shall include fugitive emissions to the extent quantifiable and emissions associated with start-ups, shutdowns, and malfunctions to the extent they are affected by the project. (B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 13while the source was operating above any emission limitation that was legally enforceable during the

consecutive twenty-four (24) month period. (C) For a regulated NSR pollutant, when a project involves multiple emissions units, only one (1) consecutive twenty-four (24) month period may be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive twenty-four (24) month period can be used for each regulated NSR pollutant. (D) The average rate shall not be based on any consecutive twenty-four (24) month period for which there is inadequate information available for determining annual emissions, in tons per year, and for adjusting this amount if required by clause (B). (2) For an existing emissions unit other than an electric utility steam generating unit, the term means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive twenty-four (24) month period selected by the owner or operator within the ten (10) year period immediately preceding either the date the owner or operator begins actual construction of the project or the date a complete permit application is received by the department for a permit required by this rule, except that the ten (10) year period shall not include any period earlier than November 15, 1990. The baseline actual emissions shall be determined in accordance with the following: (A) The average rate shall include fugitive emissions to the extent quantifiable and emissions associated with start-ups, shutdowns, and malfunctions to the extent they are affected by the project. (B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive twenty-four (24) month period. (C) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply had the major stationary source been required to comply with the limitations during the consecutive twenty-four (24) month period. However, if an emission limitation is part of a maximum achievable control technology standard that the U.S. EPA proposed or promulgated under 40 CFR Part 63*, the baseline actual emissions need only be adjusted if the department has applied the emissions reductions to an attainment demonstration or maintenance plan consistent with the requirements of 326 IAC 2- 3- 3 (b)(12). (D) For a regulated NSR pollutant, when a project involves multiple emissions units, only one (1) consecutive twenty-four (24) month period may be used to determine the baseline actual emissions for all the emissions units being changed. A different consecutive twenty-four (24) month period can be used for each regulated NSR pollutant. (E) The average rate shall not be based on any consecutive twenty-four (24) month period for which there is inadequate information available for determining annual emissions, in tons per year, and for adjusting this amount if required by clauses (B) and (C). (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of the unit shall equal zero (0) and thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a PAL for a stationary source, the baseline actual emissions shall be calculated as follows: (A) For an existing electric utility steam generating unit, in accordance with subdivision (1). (B) For an existing emissions unit except an existing electric utility steam generating unit, in accordance with subdivision (2). (C) For a new emissions unit, in accordance with subdivision (3).

(f) "Baseline area" means the following: (1) Any intrastate area (and every part thereof) designated as attainment or unclassifiable in accordance with

326 IAC 1-4 in which the major stationary source or major modification establishing the minor source baseline date would construct or would have an air quality impact for the pollutant for which the baseline date is

established: (A) equal to or greater than one (1) microgram per cubic meter (μg/m 3) (annual average) of the pollutant for

which the minor source baseline date is established. for sulfur dioxide (SO 2), nitrogen dioxide (NO 2), or

PM 10 ; or (B) equal to or greater than three-tenths (0.3) microgram per cubic meter (μg/m 3) (annual average)

for PM 2.5 . (2) Area redesignations under 326 IAC 1-4 and Section 107(d)(1)(D) or 107(d)(1)(E) of the CAA cannot intersect or be smaller than the area of impact of any major stationary source or major modification that: (A) establishes a minor source baseline date; or (B) is subject to 40 CFR Part 52.21* and this rule and would be constructed in the same state as the state proposing the redesignation. (3) Any baseline area established originally for the total suspended particulate (TSP) increments shall remain Indiana Register

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baseline area shall not remain in effect if the U.S. EPA rescinds the corresponding minor source baseline date in accordance with 40 CFR Part 52.21(b)(14)(iv)*.

(g) "Baseline concentration" means that ambient concentration level that exists in the baseline area at the time of the applicable minor source baseline date. A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include the following: (1) The actual emissions, as defined in subsection (b), representative of sources in existence on the applicable minor source baseline date except as provided in subdivision (3). (2) The allowable emissions of major stationary sources that commenced construction before the major source baseline date, but were not in operation by the applicable minor source baseline date. (3) The following will not be included in the baseline concentration and will affect the applicable maximum

allowable increase or increases: (A) Actual emissions, as defined in subsection (b), from any major stationary source on which construction commenced after the major source baseline date. (B) Increases and decreases of actual emissions, as defined in subsection (b), at any stationary source occurring after the minor source baseline date.

(h) "Begin actual construction" means, in general, initiation of physical on-site construction activities on an emissions unit that are of a permanent nature. Such activities include, but are not limited to, the following: (1) Installation of building supports and foundations. (2) Laying underground pipework. (3) Construction of permanent storage structures. With respect to a change in method of operations, the term refers to those on-site activities other than preparatory activities that mark the initiation of the change.

(i) "Best available control technology" or "BACT" means an emissions limitation, including a visible emissions standard, based on the maximum degree of reduction for each regulated NSR pollutant that would be emitted from any proposed major stationary source or major modification, that the commissioner, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for the source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of the pollutant. In no event shall application of BACT result in emissions of any pollutant that would exceed the emissions allowed by any applicable standard under 40 CFR Part 60* and 40 CFR Part 61*. If the commissioner determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard not feasible, a design, equipment, work practice, operational standard, or combination thereof may be prescribed instead to satisfy the requirements for the application of BACT. The standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of the design, equipment, work practice, or operation and shall provide for compliance by means that achieve equivalent results.

(j) "Building, structure, facility, or installation" means all of the pollutant-emitting activities that belong to the same industrial grouping, are located on one (1) or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control) except the activities of any vessel. Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same major group, for example, that have the same first two (2) digit code, as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 Supplement (U.S. Government Printing Office)*.

(k) "Clean coal technology" means any technology, including technologies applied at the precombustion, combustion, or postcombustion stage, at a new or existing facility that will achieve significant reductions in air

emissions of sulfur dioxide or oxides of nitrogen oxides associated with the utilization of coal in the generation of electricity or process steam that was not in widespread use as of November 15, 1990.

(l) "Clean coal technology demonstration project" means a project using funds appropriated under the heading "Department of Energy-Clean Coal Technology", up to a total amount of two billion five hundred million dollars ($2,500,000,000) for commercial demonstration of clean coal technology or similar projects funded through appropriations for the U.S. EPA. The federal contribution for a qualifying project shall be at least twenty percent (20%) of the total cost of the demonstration project. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 15(m) "Commence", as applied to construction of a major stationary source or major modification, means that the

owner or operator has all necessary preconstruction approvals or permits and either has: (1) begun, or caused to begin, a continuous program of actual on-site construction of the source to be completed within a reasonable time; or (2) entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.

(n) "Complete" means, in reference to an application for a permit, that the application contains all of the information necessary for processing the application. Designating an application complete for purposes of permit processing does not preclude the department from requesting or accepting any additional information.

(o) "Construction" means any physical change or change in the method of operation, including: (1) fabrication; (2) erection; (3) installation; (4) demolition; or (5) modification; of an emissions unit, that would result in a change in emissions.

(p) "Continuous emissions monitoring system" or "CEMS" means all of the equipment that may be required to meet the data acquisition and availability requirements of this rule to complete the following: (1) Sample emissions on a continuous basis. (2) If applicable, condition emissions. (3) Analyze emissions on a continuous basis. (4) Provide a record of emissions on a continuous basis.

(q) "Continuous emissions rate monitoring system" or "CERMS" means the total equipment required for the determination and recording of the pollutant mass emissions rate in terms of mass per unit of time.

(r) "Continuous parameter monitoring system" or "CPMS" means all of the equipment necessary to meet the data acquisition and availability requirements of this rule to: (1) monitor: (A) process and control device operational parameters; and (B) other information, such as gas flow rate, O 2 or CO 2 concentrations; and (2) record the average operational parameter value on a continuous basis.

(s) "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third (1/3) of its potential electric output capacity and more than twenty-five (25) megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility.

(t) "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated NSR pollutant. For purposes of this rule, there are the following two (2) types of emissions units: (1) A new emissions unit is any emissions unit that is, or will be, newly constructed and that has existed for less than two (2) years from the date the emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in subdivision (1). A replacement unit is an existing emissions unit.

(u) "Federal land manager" means, with respect to any lands in the United States, the secretary of the department with authority over the lands.

(v) "Federally enforceable" means all limitations and conditions that are enforceable by the U.S. EPA, including: Indiana Register

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(2) requirements within the SIP; and (3) any permit requirements established pursuant to 40 CFR Part 52.21* or under regulations approved pursuant to 40 CFR Part 51, Subpart I*, including operating permits issued under an EPA-approved program that is incorporated into the SIP and expressly requires adherence to any permit issued under the program.

(w) "Fugitive emissions" means those emissions that could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening.

(x) "High terrain" means any area having an elevation nine hundred (900) feet or more above the base of the

stack of a source.

(y) "Indian governing body" means the governing body of any tribe, band, or group of Indians subject to the jurisdiction of the United States and recognized by the United States as possessing power of self-government.

(z) "Indian reservation" means any federally recognized reservation established by: (1) treaty; (2) agreement; (3) executive order; or (4) act of Congress.

(aa) "Innovative control technology" means any system of air pollution control that has not been adequately demonstrated in practice, but would have a substantial likelihood of achieving greater continuous emissions reduction than any control system in current practice or of achieving at least comparable reductions at lower cost in terms of energy, economics, or nonair quality environmental impacts.

(bb) "Lowest achievable emission rate" or "LAER" means, for any source, the more stringent rate of emissions based on the most stringent emissions limitation of the following: (1) Contained in the SIP for the class or category of stationary source unless the owner or operator of the proposed stationary source demonstrates that the limitations are not achievable. (2) Achieved in practice by the class or category of stationary source. This limitation, when applied to a modification, means the LAER for the new or modified emissions unit within the stationary source. In no event shall the application of the LAER allow a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under applicable new source standards of performance.

(cc) "Low terrain" means any area other than high terrain.

(dd) "Major modification" means any physical change in, or change in the method of operation of, a major stationary source that would result in a significant emissions increase and a significant net emissions increase of a regulated NSR pollutant from the major stationary source. The following shall apply: (1) Any significant emissions increase from any emissions units or net emissions increase at a major stationary source that is significant for VOC or NO

x shall be considered significant for ozone. (2) A physical change or change in the method of operation shall not include the following: (A) Routine maintenance, repair, and replacement. (B) Use of an alternative fuel or raw material by reason of an order under Sections 2(a) and 2(b) of the Energy Supply and Environmental Coordination Act of 1974 or by reason of a natural gas curtailment plan pursuant to the Federal Power Act. (C) Use of an alternative fuel by reason of an order under Section 125 of the CAA. (D) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste. (E) Use of an alternative fuel or raw material by a source that the source: (i) was capable of accommodating before January 6, 1975, unless the change would be prohibited under any enforceable permit condition that was established after January 6, 1975, pursuant to: (AA) 40 CFR Part 52.21*; (BB) this rule; (CC) 326 IAC 2- 3 ; or (DD) minor new source review regulations approved pursuant to 40 CFR Part 51.160 through 40 CFR Indiana Register

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(ii) is approved to use under any permit issued under 40 CFR Part 52.21* or under this rule. (F) An increase in the hours of operation or in the production rate unless the change would be prohibited under any enforceable permit condition that was established after January 6, 1975, pursuant to 40 CFR Part

52.21* or under this rule or 326 IAC 2- 3

. (G) Any change in ownership at a source. (H) The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project provided that the project complies with: (i) the SIP; and (ii) other requirements necessary to attain and maintain the national ambient air quality standards during the project and after the project is terminated. (I) The installation or operation of a permanent clean coal technology demonstration project that constitutes repowering provided that the project does not result in an increase in the potential to emit of any regulated pollutant emitted by the unit. This exemption shall apply on a pollutant-by-pollutant basis. (J) The reactivation of a very clean coal-fired electric utility steam generating unit. (3) The term shall not apply to a particular regulated NSR pollutant when the major stationary source is complying with the requirements under 326 IAC 2-2.4 for a PAL for that pollutant. Instead, the definition at 326
IAC 2-2.4-2 (g) shall apply.

(ee) "Major source baseline date" means the following: (1) In the case of particulate matter PM 10 and sulfur dioxide, January 6, 1975. (2) In the case of nitrogen dioxide, February 8, 1988. (3) In the case of PM 2.5 , October 20, 2010.

(ff) "Major stationary source" means the following: (1) Any of the following stationary sources of air pollutants that are located or proposed to be located in an attainment or unclassifiable area as designated in 326 IAC 1-4 and that emit or have the potential to emit one hundred (100) tons per year or more of any regulated NSR pollutant: (A) Fossil fuel-fired steam electric plants of more than two hundred fifty million (250,000,000) British thermal units per hour heat input. (B) Coal cleaning plants (with thermal driers). (C) Kraft pulp mills. (D) Portland cement plants. (E) Primary zinc smelters. (F) Iron and steel mill plants. (G) Primary aluminum ore reduction plants. (H) Primary copper smelters. (I) Municipal incinerators capable of charging more than fifty (50) tons of refuse per day. (J) Hydrofluoric, sulfuric, and nitric acid plants. (K) Petroleum refineries. (L) Lime plants. (M) Phosphate rock processing plants. (N) Coke oven batteries. (O) Sulfur recovery plants. (P) Carbon black plants (furnace process). (Q) Primary lead smelters. (R) Fuel conversion plants. (S) Sintering plants. (T) Secondary metal production plants. (U) Chemical process plants, excluding ethanol production facilities that produce ethanol by natural fermentation included in North American Industry Classification System (NAICS) codes 325193 for Ethyl Alcohol Manufacturing or 312140 for Distilleries, as revised in 2007**. (V) Fossil fuel boilers (or combinations thereof) totaling more than two hundred fifty million (250,000,000) British thermal units per hour heat input. (W) Taconite ore processing plants. (X) Glass fiber processing plants. (Y) Charcoal production plants. (Z) Petroleum storage and transfer units with a total storage capacity exceeding three hundred thousand (300,000) barrels. (2) Any stationary source with the potential to emit two hundred fifty (250) tons per year or more of a regulated Indiana Register

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(3) Any of the following stationary sources with potential emissions of five (5) tons per year or more of lead or lead compounds measured as elemental lead: (A) Primary lead smelters. (B) Secondary lead smelters. (C) Primary copper smelters. (D) Lead gasoline additive plants. (E) Lead-acid storage battery manufacturing plants that produce two thousand (2,000) or more batteries per day. (4) Any other stationary source with potential emissions of twenty-five (25) or more tons per year of lead or lead compounds measured as elemental lead. (5) Any physical change occurring at a stationary source not qualifying under subdivisions (1) through (4) if the change would by itself qualify as a major stationary source under subdivisions (1) through (4). (6) Notwithstanding subdivisions (1) through (5), a source or modification of a source shall not be considered a major stationary source if it would qualify under subdivisions (1) through (5) only if fugitive emissions, to the extent quantifiable, are considered in calculating potential to emit of the stationary source or modification and the source does not belong to any of the categories listed in subdivision (1) or any other stationary source category that, as of August 7, 1980, is being regulated under Section 111 or 112 of the CAA (42 U.S.C. 7411 or 42 U.S.C. 7412). (7) A major stationary source that is major for VOC or NO

x shall be considered major for ozone.

(gg) "Minor source baseline date" means the earliest date after the trigger date on which a major stationary source or major modification subject to the requirements of this rule or to 40 CFR Part 52.21* submits a complete application under the relevant regulations, including the following: (1) The trigger date is the following: (A) In the case of particulate matter PM 10 and sulfur dioxide, August 7, 1977. (B) In the case of nitrogen dioxide, February 8, 1988. (C) In the case of PM 2.5 , October 20, 2011. (2) The baseline date is established for each pollutant for which increments or other equivalent measures have

been established if: (A) the area in which the proposed source or modification would construct is designated as attainment or

unclassifiable under 326 IAC 1-4 for the pollutant on the date of its complete application under this rule; and (B) in the case of a major stationary source, the pollutant would be emitted in significant amounts, or, in the case of a major modification, there would be a significant net emissions increase of the pollutant. (3) Any minor source baseline date established originally for the TSP increments shall remain in effect and shall apply for purposes of determining the amount of available PM 10 increments, except that the commissioner may rescind a minor source baseline date where it can be shown, to the satisfaction of the commissioner, that the emissions increase from the major stationary source, or net emissions increase from the major modification, responsible for triggering that date did not result in a significant amount of PM 10 emissions.

(hh) "Necessary preconstruction approvals or permits" means those permits or approvals required under federal air quality control laws and regulations and air quality control laws and regulations that are part of the SIP.

(ii) "Net emissions increase", with respect to any regulated NSR pollutant emitted by a major stationary source, means the following: (1) The amount by which the sum of the following exceeds zero (0): (A) The increase in emissions from a particular physical change or change in the method of operation at a stationary source as calculated under section 2(d) of this rule. (B) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this clause shall be determined as provided in subsection (e), except that subsection (e)(1)(C) and (e)(2)(D) shall not apply. (2) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only if it occurs between the following: (A) The date five (5) years before construction of the particular change commences. (B) The date that the increase from the particular change occurs. (3) An increase or decrease in actual emissions is creditable only if the department has not relied on the increase or decrease in actual emissions in issuing a permit to the source under 40 CFR Part 52.21* or this rule and the permit is in effect when the increase in actual emissions from the particular change occurs. Indiana Register

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that occurs before the applicable minor source baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available. (5) An increase in actual emissions is creditable only to the extent that a new level of actual emissions

exceeds the old level. (6) A decrease in actual emissions is creditable only to the extent that: (A) the old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions; (B) it is enforceable as a practical matter at and after the time that actual construction on the particular change begins; and (C) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (7) An increase that results from the physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period not to exceed one hundred eighty (180) days. (8) Subsection (b)(1) shall not apply for determining creditable increases and decreases.

(jj) "Plant-wide applicability limitation" or "PAL" means an emission limitation expressed in tons per year, for a pollutant at a major stationary source, that is enforceable as a practical matter and established source-wide in

accordance with this rule. For the purposes of this rule, a PAL is an actuals PAL.

(kk) "Pollution prevention" means the following: (1) Any activity that eliminates or reduces the release of air pollutants, including fugitive emissions, and other pollutants to the environment prior to recycling, treatment, or disposal, through: (A) process changes; (B) product reformulation or redesign; or (C) substitution of less polluting raw materials. (2) The term does not include: (A) recycling, except certain in-process recycling practices; (B) energy recovery; (C) treatment; or (D) disposal.

(ll) "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design if the limitation or the effect it would have on emissions is enforceable as a practical matter. Secondary emissions do not count in determining the potential to emit of a stationary source.

(mm) "Predictive emissions monitoring system" or "PEMS" means all of the equipment necessary to, on a

continuous basis: (1) monitor: (A) process and control device operational parameters; and (B) other information, such as gas flow rate, O 2 or CO 2 concentrations; and (2) calculate and record the mass emissions rate, such as pounds per hour.

(nn) "Prevention of significant deterioration program" or "PSD program" means a major source preconstruction permit program that has been approved by the U.S. EPA and incorporated into the SIP to implement the requirements of 40 CFR Part 51.166 or the program in 40 CFR Part 52.21. Any permit issued under the program is a major NSR permit.

(oo) "Project" means a physical change in, or change in the method of operation of, an existing major stationary source.

(pp) "Projected actual emissions" means the following: (1) The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a Indiana Register

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the unit resumes regular operation after the project, or in any consecutive twelve (12) month period of the ten (10) years following the date the unit resumes regular operation, if the project involves increasing the emissions unit's design capacity or its potential to emit that regulated NSR pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationary source. (2) In determining the projected actual emissions under this subsection, before beginning actual construction, the owner or operator of the major stationary source: (A) shall: (i) consider all relevant information, including, but not limited to: (AA) historical operational data; (BB) the company's own representations; (CC) the company's expected business activity and the company's highest projections of business activity; (DD) the company's filings with the state or federal regulatory authorities; and (EE) compliance plans under the approved SIP; (ii) include fugitive emissions to the extent quantifiable and emissions associated with start-ups, shutdowns, and malfunctions to the extent they are affected by the project; and (iii) exclude, in calculating any increase in emissions that result from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive twenty-four (24) month period used to establish the baseline actual emissions under subsection (e) and that are also unrelated to the particular project, including any increased utilization due to product demand growth; or (B) in lieu of using the method set out in clause (A), may elect to use the emissions unit's potential to emit, in tons per year, as defined under subsection (ll).

(qq) "Reactivation of a very clean coal-fired electric utility steam generating unit" means any physical change or change in the method of operation associated with the commencement of commercial operations by a coal-fired utility unit after a period of discontinued operation where the unit: (1) has not been in operation for the two (2) year period prior to the enactment of the CAA Amendments of 1990, and the emissions from the unit continue to be carried in the department's emissions inventory at the time of enactment; (2) was equipped prior to shutdown with a continuous system of emissions control that achieves a removal efficiency for sulfur dioxide of not less than eighty-five percent (85%) and a removal efficiency for particulates of not less than ninety-eight percent (98%); (3) is equipped with low-NO

x burners prior to the time of commencement of operations following reactivation;

and (4) is otherwise in compliance with the requirements of the CAA.

(rr) "Reasonably available control technology" or "RACT" means devices, systems, process modifications, or other apparatus or techniques that are reasonably available taking into account: (1) the necessity of imposing the controls in order to attain and maintain a national ambient air quality standard; (2) the social, environmental, and economic impact of the controls; and (3) alternative means of providing for attainment and maintenance of the standard.

(ss) "Regulated NSR pollutant" means any of the following: (1) Any (A) pollutant for which a national ambient air quality standard has been promulgated and (B)

constituents or precursors for the pollutants identified by the U.S. EPA. any pollutant identified as a constituent or precursor to the pollutant. For purposes of NSR, in all attainment and unclassifiable

areas: (A) VOC and nitrogen oxides are precursors to ozone; (B) sulfur dioxide and nitrogen oxides are precursors to PM 2.5 ; and (C) VOC and ammonia are not precursors to PM 2.5 . (2) Any pollutant that is subject to any standard promulgated under Section 111 of the CAA. (3) Any Class I or II substance subject to a standard promulgated under or established by Title VI of the CAA. (4) Any pollutant that otherwise is subject to regulation under the CAA as defined in subsection (zz). (5) Notwithstanding subdivisions (1) through (4), any or all HAPs either listed in Section 112 of the CAA or added to the list pursuant to Section 112(b)(2) of the CAA, which have not been delisted pursuant to Section 112(b)(3) of the CAA, are not regulated NSR pollutants unless the listed HAP is also regulated as a Indiana Register

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(6) Notwithstanding subdivision (5), any pollutant listed in subsection (ww)(1)(A) through (ww)(1)(U). (ww)(1)(V).

(tt) "Replacement unit" means an emissions unit for which all the criteria listed in subdivisions (1) through (4) are met. No creditable emission reductions shall be generated from shutting down the existing emission unit that is replaced. The following applies: (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1)*, or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. (3) The replacement does not alter the basic design parameters, as discussed in 40 CFR 51.165(h)(2), of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit.

(uu) "Repowering" means replacement of an existing coal-fired boiler with one (1) of the following clean coal technologies: (1) Atmospheric or pressurized fluidized bed combustion. (2) Integrated gasification combined cycle. (3) Magnetohydrodynamics. (4) Direct and indirect coal-fired turbines. (5) Integrated gasification fuel cells. (6) As determined by the U.S. EPA, in consultation with the Secretary of Energy, a derivative of one (1) or more of these technologies, and any other technology capable of controlling multiple combustion emissions simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction relative to the performance of technology in widespread commercial use as of November 15, 1990. The term shall also include any oil or gas-fired unit, or both, that has been awarded clean coal technology demonstration funding as of January 1, 1991, by the Department of Energy. The department shall give expedited consideration to permit applications for any source that satisfies the requirements of this subsection and is granted an extension under Section 409 of the CAA.

(vv) "Secondary emissions" means emissions that would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. The term includes emissions from any off-site support facility that would not be constructed or increase its emissions except as a result of the construction or operation of the major stationary source or major modification. For the purpose of this rule, secondary emissions must be specific, well-defined, quantifiable, and impact the same general area as the source or modification that causes the secondary emissions. The term does not include any emissions that come directly from a mobile source, such as emissions from: (1) the tailpipe of a motor vehicle; (2) a train; or (3) a vessel.

(ww) "Significant" means the following: (1) In reference to a net emissions increase or the potential of the source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates: (A) Carbon monoxide: one hundred (100) tons per year. (B) Nitrogen oxides: forty (40) tons per year. (C) Sulfur dioxide: forty (40) tons per year. (D) Particulate matter: PM: twenty-five (25) tons per year. (E) PM 10 : fifteen (15) tons per year. (F) PM 2.5 : ten (10) tons per year direct PM 2.5 ; forty (40) tons per year of sulfur dioxide; forty (40) tons per year of nitrogen oxides. (F) (G) Ozone: forty (40) tons per year of VOC or nitrogen oxides. (G) (H) Lead: six-tenths (0.6) ton per year. (H) (I) Asbestos: seven one-thousandths (0.007) ton per year. (I) (J) Beryllium: four ten-thousandths (0.0004) ton per year. (J) (K) Mercury: one-tenth (0.1) ton per year. (K) (L) Vinyl chloride: one (1) ton per year. Indiana Register

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(M) (N) Sulfuric acid mist: seven (7) tons per year. (N) (O) Hydrogen sulfide (H 2 S): ten (10) tons per year. (O) (P) Total reduced sulfur (including H 2 S): ten (10) tons per year. (P) (Q) Reduced sulfur compounds (including H 2 S): ten (10) tons per year. (Q) (R) Municipal waste combustor organics (measured as total tetra- through octa-chlorinated dibenzo-p-dioxins and dibenzofurans): thirty-five ten-millionths (0.0000035) or 3.5 × 10 -6 ton per year. (R) (S) Municipal waste combustor metals (measured as particulate matter): PM): fifteen (15) tons per year. (S) (T) Municipal waste combustor acid gases (measured as sulfur dioxide and hydrogen chloride): forty (40) tons per year. (T) (U) Municipal solid waste landfills emissions (measured as nonmethane organic compounds): fifty (50)
tons per year. (U) (V) Ozone-depleting substances (ODS): one hundred (100) tons per year. (V) (W) Pollutant greenhouse gases (GHGs): as specified in subsection (zz). (W) (X) Any regulated NSR pollutant other than the pollutants listed in this subsection: any emission rate. (2) Any emissions rate or any net emissions increase associated with a major stationary source or major

modification that: (A) would be constructed within ten (10) kilometers of a Class I area; and (B) has an impact on the area equal to or greater than one (1) microgram per cubic meter (24-hour average).

(xx) "Significant emissions increase" means, for a regulated NSR pollutant, an increase in emissions that is significant, as defined in subsection (ww), for that pollutant.

(yy) "Stationary source" means any building, structure, facility, or installation that emits or may emit a regulated NSR pollutant. A stationary source does not include emissions resulting from an internal combustion engine used for transportation purposes or from a nonroad engine or nonroad vehicle.

(zz) "Subject to regulation" means, for any air pollutant, that the pollutant is subject to either a provision in the CAA, or a nationally applicable regulation codified by the U.S. EPA in 40 CFR, Chapter I, Subchapter C, that requires actual control of the quantity of emissions of that pollutant, and that the control requirement has taken effect and is operative to control, limit, or restrict the quantity of emissions of that pollutant released from that regulated activity, except as follows: (1) Greenhouse gases (GHGs), the air pollutant defined in 40 CFR 86.1818-12(a)*, as added by 75 FR 25686 (May 7, 2010), as the aggregate group of six (6) greenhouse gases shall not be subject to regulation except as provided in subdivisions (4) and (5). Pollutant GHGs includes the following: (A) Carbon dioxide. (B) Nitrous oxide. (C) Methane. (D) Hydrofluorocarbons. (E) Perfluorocarbons. (F) Sulfur hexafluoride. (2) For purposes of subdivisions (3) through (5), "tons per year (tpy) CO 2 equivalent emissions (CO 2 e)" shall represent an amount of GHGs emitted and shall be calculated as follows: (A) Multiply the mass amount of emissions in tpy for each of the six (6) greenhouse gases in the pollutant GHGs by the gas's associated global warming potential published in 40 CFR 98, Subpart A, Table A-1 (Global Warming Potentials)*, as added by 74 FR 56395 (October 30, 2009). (B) Sum the resultant value from clause (A) for each gas to compute a tpy CO 2 e. (C) Prior to July 21, 2014, the mass of the greenhouse gas carbon dioxide shall not include carbon dioxide emissions resulting from the combustion or decomposition of nonfossilized and biodegradable organic material originating from plants, animals, or microorganisms (including products, byproducts, residues, and waste from agriculture, forestry, and related industries as well as the nonfossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material). (3) "Emissions increase", as used in subdivisions (4) and (5), means that both a significant emissions increase as calculated using the procedures in 40 CFR 51.166(a)(7)(iv)* and a significant net emissions increase as defined in subsections (ii) and (ww) occur. For the pollutant GHGs, an emissions increase shall be based on tpy CO 2 e, and shall be calculated assuming the pollutant GHGs is a regulated NSR pollutant, and "significant" is defined as seventy-five thousand (75,000) tpy CO 2 e instead of applying the value in subsection (ww)(1)(W). Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 23(4) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if the stationary source is:

(A) a new major stationary source for a regulated NSR pollutant that is not GHGs and will emit or will have the potential to emit seventy-five thousand (75,000) tpy CO 2 e or more; or (B) an existing major stationary source for a regulated NSR pollutant that is not GHGs and will have an emissions increase of a regulated NSR pollutant, and an emissions increase of seventy-five thousand (75,000) tpy CO 2 e or more. (5) Beginning July 1, 2011, in addition to the provisions in subdivision (4), the pollutant GHGs shall be subject to regulation at: (A) a new stationary source that will emit or will have the potential to emit one hundred thousand (100,000) tpy CO 2 e or more; or (B) an existing stationary source that emits or has the potential to emit one hundred thousand (100,000) tpy

CO 2 e or more, when such stationary source undertakes a physical change or change in the method of operation that will result in an emissions increase of seventy-five thousand (75,000) tpy CO 2 e or more.

(aaa) "Temporary clean coal technology demonstration project" means a clean coal technology demonstration project that: (1) is operated for a period of five (5) years or less; and (2) complies with the SIP and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after the project is terminated.

*These documents are 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

**These documents are incorporated by reference. Copies may be obtained through the U.S. Census Bureau website at: www.census.gov/eos/www/naics or are available for review and copying at the Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2- 2- 1 ; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2391; filed Apr 13, 1988, 3:35 p.m.: 11 IR 3022; filed Jan 6, 1989, 3:30 p.m.: 12 IR 1102; filed Jun 14, 1989, 5:00 p.m.: 12 IR 2020; filed Nov 25, 1998, 12:13 p.m.: 22 IR 997; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3105; filed Oct 23, 2000, 9:47 a.m.: 24 IR 668; filed Mar 23, 2001, 3:03 p.m.: 24 IR 2412; filed Dec 20, 2001, 4:30 p.m.: 25 IR 1557; filed Mar 9, 2004, 3:45 p.m.: 27 IR 2216; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3889; filed Oct 1, 2010, 3:48 p.m.:

20101027-IR-326070372FRA; filed Feb 14, 2011, 11:20 a.m.: 20110316-IR-326100505FRA; errata filed Feb 16, 2011, 2:28 p.m.: 20110316-IR-326110089ACA; filed Jul 21, 2011, 10:45 a.m.: 20110817-IR-326110099FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 5. 326 IAC 2-2-4 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-2-4 Air quality analysis; requirements

Authority: IC 13- 14-8 ; IC 13- 17-3

Affected: IC 13- 15 ; IC 13- 17

Sec. 4. (a) Any application for a permit under the provisions of this rule shall contain an analysis of ambient air quality in the area that the major stationary source or major modification would affect for each of the following pollutants: (1) For a source, each regulated NSR pollutant that the source would have the potential to emit in a significant

amount. (2) For a modification, each regulated NSR pollutant for which the modification would result in a significant net

emissions increase.

(b) Exemptions are as follows: (1) The requirements of this section shall not apply to a major stationary source or major modification with respect to a particular pollutant if the allowable emissions of that pollutant from the source or the net emissions increase of that pollutant from the modification would: Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 24(A) impact no Class I area and no area where an applicable increment is known to be violated; and

(B) be temporary. (2) A source or modification shall be exempt from the requirements of this section with respect to monitoring for a particular pollutant if either of the following apply: (A) The emissions increase of the pollutant from a new source or the net emissions increase of the pollutant from a modification would cause, in any area, air quality impacts less than the following: (i) Carbon monoxide: 575 μg/m 3 , 8-hour average. (ii) Nitrogen dioxide: 14 μg/m 3 , annual average. (iii) PM 10 : 10 μg/m 3 , 24-hour average. (iv) PM 2.5 : 4 μg/m 3 , 24-hour average. (iv) (v) Sulfur dioxide: 13 μg/m 3 , 24-hour average. (v) (vi) Ozone: No de minimis air quality level is provided for ozone; however, any net increase of one hundred (100) tons per year or more of VOC or nitrogen oxides subject to PSD would be required to provide ozone ambient air quality data. (vi) (vii) Lead: 0.1 μg/m 3 , 3-month average. (vii) (viii) Mercury: 0.25 μg/m 3 , 24-hour average. (viii) (ix) Beryllium: 0.001 μg/m 3 , 24-hour average. (ix) (x) Fluorides: 0.25 μg/m 3 , 24-hour average. (x) (xi) Vinyl chloride: 15 μg/m 3 , 24-hour average. (xi) (xii) Total reduced sulfur: 10 mg/m 3 , 1-hour average. (xii) (xiii) Hydrogen sulfide: 0.2 μg/m 3 , 1-hour average. (xiii) (xiv) Reduced sulfur compounds: 10 μg/m 3 , 1-hour average. (B) The concentrations of the pollutant in the area affected by the source or modification are less than the concentrations listed in clause (A) or the pollutant is not listed in clause (A). (3) The requirements of this section shall not apply to a major stationary source or major modification with respect to pollutant GHGs.

(c) All monitoring required by this section shall be done in accordance with the following provisions: (1) With respect to any pollutant for which no ambient air quality standard designated in 326 IAC 1- 3 exists, the analysis shall contain such air quality monitoring data as the commissioner determines is necessary to assess ambient air quality for that pollutant in any area that the emissions of that pollutant would affect. (2) With respect to any pollutant (other than nonmethane hydrocarbons) for which an ambient air quality standard as designated in 326 IAC 1- 3 exists, the analysis shall contain continuous air quality monitoring data gathered for the purpose of determining whether emissions of that pollutant would cause or contribute to a violation of the standard or any maximum allowable increase. (3) In general, the continuous air quality monitoring data that is required shall have been gathered over a period of at least one (1) year preceding receipt of the application, except that, if the commissioner determines that a complete and adequate analysis can be accomplished with monitoring data gathered over a period shorter than one (1) year (but not less than four (4) months), the data that is required shall have been gathered over at least that shorter period. (4) The owner or operator of the proposed major stationary source or major modification of VOC or nitrogen

oxides who satisfies all conditions of 40 CFR Part 51, Appendix S, Section IV* may provide post-approval monitoring data for ozone in lieu of providing preconstruction data as required under this subsection. (5) The owner or operator of a major stationary source or major modification shall, after construction of the source or modification, conduct such ambient monitoring as the commissioner determines is necessary to determine the effect of the emissions that the source or modification may have, or is having, on air quality in

any area. (6) The owner or operator of a major stationary source or major modification shall comply with the requirements of 40 CFR Part 58, Appendix B* during operation of monitoring stations for purposes of complying with this section. (7) All air quality monitoring shall be done in accordance with state and federal monitoring procedures as set forth in the following references: May 1987 U.S. EPA, "Ambient Air Monitoring Guidelines for Prevention of Significant Deterioration" (EPA 45014-87-007)* and the May 1999, "Indiana Department of Environmental Management, Office of Air Management Quality Assurance Manual*".

*These documents are 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2- 2-4; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2396; filed Apr 13, 1988, 3:35 Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 25p.m.: 11 IR 3026; filed Jan 6, 1989, 3:30 p.m.: 12 IR 1099; filed Mar 23, 2001, 3:03 p.m.: 24 IR 2420; filed Dec 20,

2001, 4:30 p.m.: 25 IR 1565; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3901; filed Oct 1, 2010, 3:48 p.m.:

20101027-IR-326070372FRA; filed Feb 14, 2011, 11:20 a.m.: 20110316-IR-326100505FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 6. 326 IAC 2-2- 6 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-2-6 Increment consumption; requirements

Authority: IC 13- 14-8 ; IC 13- 17-3-4

Affected: IC 13- 12

Sec. 6. (a) Any demonstration under section 5 of this rule shall demonstrate that increased emissions caused by the proposed major stationary source or major modification will not exceed eighty percent (80%) of the available maximum allowable increases (MAI) over the baseline concentrations for sulfur dioxide, particulate
matter, PM, and nitrogen dioxide indicated in subsection (b)(1). Available maximum allowable increases are determined by adjusting the MAI to include impacts from actual emissions: (1) from any major stationary source or major modification on which construction commenced after the major source baseline date; and (2) increases and decreases at any source occurring after the minor source baseline date. On a case-by-case basis, a source may petition the commissioner to use in excess of this eighty percent (80%). The commissioner may authorize such use provided the source adequately demonstrates the need for the same.

(b) Increment consumption shall be in accordance with the following: (1) The following allowable increments reflect the PSD increments for a Class II area (as defined in the CAA). Indiana has no Class I or Class III areas; however, should some areas of the state be classified as Class I or III, the PSD increments pursuant to 40 CFR Part 52.21* to which it must be adhered. New permits issued after January 1, 1995, shall use PM 10 as the indicator for particulate matter. PM. The allowable increments are as

follows:

Maximum Allowable Increments

Pollutants Allowable Increments (Micrograms per Cubic Meter, μg/m 3

Limits)

(A) Particulate matter: PM:

(PM 10):

Annual arithmetic mean 17

24-hour maximum 30

(PM 2.5):

Annual arithmetic mean 4

24-hour maximum 9 (B) Sulfur dioxide:

Annual arithmetic mean 20

24-hour maximum 91

3-hour maximum 512 (C) Nitrogen dioxide:

Annual arithmetic mean 25
(2) For any period other than the annual period, the applicable maximum allowable increase may be exceeded during one (1) such period per year at any one (1) location. (3) When an applicant proposes to construct a major stationary source or major modification in an area designated as attainment or unclassified and the increments listed in subdivision (1) have been consumed, the increased emissions from the source or modification may be permitted to be offset by reducing emissions in the affected areas by an equal amount of the pollutant for which the area was designated as attainment or

unclassified. (4) The following pollutant concentrations shall be excluded when determining compliance with a maximum

allowable increase: (A) Concentrations attributable to the increase in emissions from sources that have converted from the use Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 26of petroleum products or natural gas, or both, by reason of an order in effect under Sections 2(a) and 2(b) of

the Energy Supply and Environmental Coordination Act of 1974 over the emissions from such the sources before the effective date of such an the order. (B) Concentrations attributable to the increase in emissions from sources that have converted from using natural gas by reason of a natural gas curtailment plan in effect pursuant to the Federal Power Act over the

emissions from such the sources before the effective date of such the plan. (C) Concentrations of particulate matter PM attributable to the increase in emissions from construction or other temporary emission-related activities of new or modified sources. (D) Concentrations attributable to the temporary increase in emissions of sulfur dioxide, particulate matter, PM, or nitrogen oxides from stationary sources that are affected by state implementation plan revisions approved by U.S. EPA are excluded provided the following criteria is met: (i) Such The exclusion shall not exceed two (2) years in duration unless a longer time is approved by the

commissioner and the U.S. EPA. (ii) Such The exclusion is not renewable. (iii) Such The exclusion shall allow no emissions increase that would impact a Class I area or an area where an applicable increment is known to be violated, or cause or contribute to a violation of an ambient air quality standard as designated in 326 IAC 1- 3

. (iv) An emission limitation shall be in effect at the end of the time period specified in accordance with item (i) that will ensure that the emissions levels will not exceed those levels occurring from such the source before the exclusion was granted. (5) No exclusion of such a concentration under subdivision (4)(A) through and (4)(B) shall apply more than five (5) years after the date the exclusion is granted under this rule. If both such order and plan are applicable, no such exclusion shall apply more than five (5) years after the latter of such the effective dates.

*This document 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2- 2-6 ; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2398; filed Jun 14, 1989, 5:00 p.m.: 12 IR 2025; filed Oct 3, 1995, 3:00 p.m.: 19 IR 185; filed Mar 23, 2001, 3:03 p.m.: 24 IR 2422; filed Dec 20, 2001, 4:30 p.m.: 25 IR 1567; filed Mar 9, 2004, 3:45 p.m.: 27 IR 2222; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3903; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 7. 326 IAC 2-2- 14 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-2- 14 Sources impacting federal Class I areas: additional requirements

Authority: IC 13- 14-8 ; IC 13- 17-3

Affected: IC 13- 15 ; IC 13- 17

Sec. 14. (a) The department shall provide written notice of any permit application for a proposed major stationary source or major modification, the emissions from which may affect a Class I area, to the federal land manager and the federal official charged with direct responsibility for management of any lands within any such

the Class I area. Such The notification shall be given within thirty (30) days of receipt of a permit application and at least sixty (60) days prior to any public hearing on the application for a permit to construct and shall include the following: (1) A copy of all information relevant to the permit application. (2) An analysis of the proposed source's anticipated impacts on visibility in the federal Class I area. The department shall also provide the federal land manager and such the federal officials with a copy of the preliminary determination required under this section, and shall make available to them any materials used in making that determination, promptly after the department makes the determination. The department shall also notify all affected federal land managers within thirty (30) days of receipt of any advance notification of any such permit application that may affect a Class I area.

(b) The federal land manager and the federal official charged with direct responsibility for management of the Class I area have an affirmative responsibility to protect the air quality related values, including visibility, of the Class I area and to consider, in consultation with U.S. EPA, whether a proposed source or modification will have an adverse impact on such the values. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 27(c) The department shall consider any analysis performed by the federal land manager, provided to the

department within thirty (30) days of the notification required by subsection (a), that shows that a proposed new major stationary source or major modification may have an adverse impact on visibility in any federal Class I area. Where the department finds that the analysis does not demonstrate to the satisfaction of the department that an adverse impact on visibility will result in the federal Class I area, the department must, in the notice of public hearing on the permit application, either explain the decision or give notice as to where the explanation may be

obtained.

(d) The federal land manager of any Class I area may demonstrate to the department that the emissions from a proposed major stationary source or major modification would have an adverse impact on the air quality-related values, including visibility, of a Class I area, notwithstanding that the change in air quality resulting from emissions from the major stationary source or major modification would not cause or contribute to concentrations that would exceed the maximum allowable increases for a Class I area. If the department concurs with the demonstration, then the department shall not issue the permit.

(e) The owner or operator of a proposed major stationary source or major modification may demonstrate to the federal land manager that the emissions from the source or modification would have no adverse impact on the air quality related values of any Class I areas, including visibility, notwithstanding that the change in air quality resulting from emissions from the major stationary source or major modification would cause or contribute to

concentrations that would exceed the maximum allowable increases for a Class I area. If the federal land manager concurs with the demonstration and the federal land manager so certifies, the department may issue the permit provided that the applicable requirements of this section are otherwise met, to issue the permit with emission limitations as may be necessary to assure that emissions of sulfur dioxide, particulate matter, PM, and nitrogen oxides shall not exceed the following maximum allowable increases over minor source baseline concentration for such pollutants:

Maximum Allowable Increase Pollutant Micrograms Per Cubic Meter (μg/m3)

Particulate matter: PM:

PM 10 , annual arithmetic mean 17

PM 10 , 24-hour maximum 30

PM 2.5 , annual arithmetic mean 4

PM 2.5 , 24-hour maximum 9

Sulfur dioxide:

Annual arithmetic mean 20

24-hour maximum 91

3-hour maximum 325 Nitrogen dioxide:

Annual arithmetic mean 25

(f) The owner or operator of a proposed major stationary source or major modification that cannot be approved under subsection (e) may demonstrate to the department that the source cannot be constructed by reason of any maximum allowable increase for sulfur dioxide for a period of twenty-four (24) hours or less applicable to any Class I area and, in the case of federal mandatory Class I areas, that an exemption under this subsection would not adversely affect the air quality related values of the area, including visibility. The department, after consideration of the federal land manager's recommendation, if any, and subject to the federal land manager's concurrence, may, after notice and public hearing, grant an exemption from such the maximum allowable

increase. If such the exemption is granted, the department shall issue a permit to such the major stationary source or major modification pursuant to the requirements under subsection (h) provided that the applicable requirements of this section are otherwise met.

(g) In any case where the department recommends an exemption in which the federal land manager does not concur, the recommendations of the department and the federal land manager shall be transmitted to the President. The President may approve the department's recommendation if the President finds that the exemption is in the national interest. If the exemption is approved, the department shall issue a permit pursuant to the Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 28requirements under subsection (h) provided that the applicable requirements of this section are otherwise met.

(h) In the case of a permit issued pursuant to under subsection (f) or (g), the major stationary source or major modification shall comply with such the emission limitations as may be necessary to assure that emissions of sulfur dioxide from the major stationary source or major modification would not, during any day on which the otherwise applicable maximum allowable increases are exceeded, cause or contribute to concentrations that would exceed the following maximum allowable increases over the baseline concentration and to assure that

such the emissions would not cause or contribute to concentrations that exceed the otherwise applicable maximum allowable increases for periods of exposure of twenty-four (24) hours or less for more than eighteen (18) days, not necessarily consecutive, during any annual period:

Maximum Allowable Increase (Micrograms Per Cubic Meter) of Sulfur Dioxide

Terrain Areas Period of Exposure Low High

24-hour maximum 36 62

3-hour maximum 130 221

(i) The department shall transmit to the U.S. EPA a copy of each permit application relating to a major stationary source or major modification and provide notice to the U.S. EPA of the following actions related to

consideration of such the permit under this section: (1) Receipt of an advanced notification of a permit application affected by this section. (2) Any written notice provided to the federal land manager under this section. (3) Public notice of a preliminary determination. (4) Notices of public hearings. (5) Decisions to grant or deny exemptions in accordance with this section. (6) Any decision in accordance with subsection (c) that an analysis submitted by the federal land manager does not demonstrate to the satisfaction of the department that an adverse impact on visibility will result in the

Class I area. (7) Denial of a permit. (8) Issuance of a permit.

(Air Pollution Control Board; 326 IAC 2- 2- 14; filed Mar 23, 2001, 3:03 p.m.: 24 IR 2427; filed Mar 23, 2001, 3:03 p.m.: 24 IR 2427; filed Dec 20, 2001, 4:30 p.m.: 25 IR 1569; filed Jun 11, 2012, 3:15 p.m.:

20120711-IR-326110251FRA)

SECTION 8. 326 IAC 2- 3- 1 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-3- 1 Definitions

Authority: IC 13- 14-8 ; IC 13- 17-3

Affected: IC 13- 15 ; IC 13- 17

Sec. 1. (a) The definitions in this section apply throughout this rule.

(b) "Actual emissions" means the actual rate of emissions of a regulated NSR pollutant from an emissions unit as determined in accordance with the following: (1) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive twenty-four (24) month period that: (A) precedes the particular date; and (B) is representative of normal source operation. The commissioner shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (2) The commissioner may presume that source-specific allowable emissions for the unit are equivalent to the

actual emissions of the unit. (3) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 29equal the potential to emit of the unit on that date.

(4) The term shall not apply for calculating a significant emissions increase under section 2(c) of this rule or for establishing a PAL under 326 IAC 2- 3.4 . Instead, subsections (d) and (kk) shall apply for those purposes.

(c) "Allowable emissions" means the emissions rate of a source calculated using the maximum rated capacity of the source unless a source is subject to enforceable permit limits that restrict the operating rate or hours of operation, or both, and the most stringent of the following: (1) The applicable standards as set forth in 40 CFR Part 60, New Source Performance Standards (NSPS)*, and 40 CFR Part 61, National Emission Standards for Hazardous Air Pollutants (NESHAPS)*. (2) The emissions limitation imposed by any rule in this title, including those with a future compliance date. (3) The emissions rate specified as an enforceable permit condition, including those with a future compliance

date.

(d) "Baseline actual emissions" means the rate of emissions, in tons per year, of a regulated NSR pollutant, as

determined as follows: (1) For any existing electric utility steam generating unit, the term means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive twenty-four (24) month period selected by the owner or operator within the five (5) year period immediately preceding when the owner or operator begins actual construction of the project. The commissioner may allow the use of a different time period upon a determination that it is more representative of normal source operation. The baseline actual emissions shall be determined in accordance with the following: (A) The average rate shall include fugitive emissions to the extent quantifiable and emissions associated with start-ups, shutdowns, and malfunctions to the extent they are affected by the project. (B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the consecutive twenty-four (24) month period. (C) For a regulated NSR pollutant, when a project involves multiple emissions units, only one (1) consecutive twenty-four (24) month period may be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive twenty-four (24) month period can be used for each regulated NSR pollutant. (D) The average rate shall not be based on any consecutive twenty-four (24) month period for which there is inadequate information available for determining annual emissions, in tons per year, and for adjusting this amount if required by clause (B). (2) For an existing emissions unit, other than an electric utility steam generating unit, the term means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive twenty-four (24) month period selected by the owner or operator within the ten (10) year period immediately preceding either the date the owner or operator begins actual construction of the project or the date a complete permit application is received by the department for a permit required under 326 IAC 2- 3

, except that the ten (10) year period shall not include any period earlier than November 15, 1990. The baseline actual emissions shall be determined in accordance with the following: (A) The average rate shall include fugitive emissions to the extent quantifiable and emissions associated with start-ups, shutdowns, and malfunctions and to the extent they are affected by the project. (B) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive twenty-four (24) month period. (C) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply had the major stationary source been required to comply with the limitations during the consecutive twenty-four (24) month period. However, if an emission limitation is part of a maximum achievable control technology standard that the U.S. EPA proposed or promulgated under 40 CFR Part 63*, the baseline actual emissions need only be adjusted if the state has applied the emissions reduction to an attainment demonstration or maintenance plan consistent with the requirements of section 3(b)(12) of this rule. (D) For a regulated NSR pollutant, when a project involves multiple emissions units, only one (1) consecutive twenty-four (24) month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive twenty-four (24) month period can be used for each regulated NSR pollutant. (E) The average rate shall not be based on any consecutive twenty-four (24) month period for which there is inadequate information available for determining annual emissions, in tons per year, and for adjusting this amount if required by clauses (B) and (C). (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 30increase that will result from the initial construction and operation of the unit shall equal zero (0) and

thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a PAL for a major stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in subdivision (1), for other existing emissions units in accordance with the procedures contained in subdivision (2), and for a new emissions unit in accordance with the procedures contained in subdivision (3).

(e) "Begin actual construction" means, in general, initiation of physical on-site construction activities on an emissions unit that are of a permanent nature. These activities include, but are not limited to, the following: (1) Installation of building supports and foundations. (2) Laying underground pipework. (3) Construction of permanent storage structures. With respect to a change in method of operations, the term refers to those on-site activities, other than preparatory activities, that mark the initiation of the change.

(f) "Best available control technology" or "BACT" means an emissions limitation, including a visible emission standard, based on the maximum degree of reduction for each regulated NSR pollutant that would be emitted from any proposed major stationary source or major modification that the commissioner, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for the source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of the pollutant. In no event shall application of BACT result in emissions of any pollutant that would exceed the emissions allowed by any applicable standard under 40 CFR Part 60* or 40 CFR Part 61*. If the commissioner determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof may be prescribed instead to satisfy the requirement for the application of BACT. The standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of the design, equipment, work practice, or operation and shall provide for compliance by means that achieve equivalent results.

(g) "Building, structure, facility, or installation" means all of the pollutant-emitting activities that belong to the same industrial grouping, are located on one (1) or more contiguous or adjacent properties, and are under the control of the same person or persons under common control. Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same major group, that is, those that have the same first two (2) digit code, as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 supplement, U.S. Government Printing Office*.

(h) "Clean coal technology" means any technology, including technologies applied at the precombustion, combustion, or postcombustion stage, at a new or existing facility that will achieve significant reductions in air

emissions of sulfur dioxide or oxides of nitrogen oxides associated with the utilization of coal in the generation of electricity or process steam that was not in widespread use as of November 15, 1990.

(i) "Clean coal technology demonstration project" means a project using funds appropriated under the heading "Department of Energy-Clean Coal Technology", up to a total amount of two billion five hundred million dollars ($2,500,000,000) for commercial demonstration of clean coal technology, or similar projects funded through appropriations for the U.S. EPA. The federal contribution for a qualifying project shall be at least twenty percent (20%) of the total cost of the demonstration project.

(j) "Commence", as applied to construction of a major stationary source or major modification, means that the owner or operator has all necessary preconstruction approvals or permits and either has: (1) begun, or caused to begin, a continuous program of actual on-site construction of the source to be completed within a reasonable time; or (2) entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time.

(k) "Complete", in reference to an application for a permit, means that the application contains all of the information necessary for processing the application. Designating an application complete for purposes of permit Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 31processing does not preclude the commissioner from requesting or accepting additional information.

(l) "Construction" means any physical change or change in the method of operation, including: (1) fabrication; (2) erection; (3) installation; (4) demolition; or (5) modification; of an emissions unit, that would result in a change in actual emissions.

(m) "Continuous emissions monitoring system" or "CEMS" means all of the equipment that may be required to meet the data acquisition and availability requirements of this rule to complete the following: (1) Sample emissions on a continuous basis. (2) If applicable, condition emissions. (3) Analyze emissions on a continuous basis. (4) Provide a record of emissions on a continuous basis.

(n) "Continuous emissions rate monitoring system" or "CERMS" means the total equipment required for the determination and recording of the pollutant mass emissions rate in terms of mass per unit of time.

(o) "Continuous parameter monitoring system" or "CPMS" means all of the equipment necessary to meet the data acquisition and availability requirements of this rule to: (1) monitor: (A) process and control device operational parameters; and (B) other information, such as gas flow rate, O 2 or CO 2 concentrations; and (2) record average operational parameter values on a continuous basis.

(p) "De minimis", in reference to an emissions increase of VOC or oxides of nitrogen oxides (unless a NOX waiver is in effect) from a modification in a serious or severe ozone nonattainment area, means an increase that does not exceed twenty-five (25) tons per year when the net emissions increases from the proposed modification are aggregated on a pollutant specific basis with all other net emissions increases from the source over a five (5) consecutive calendar year period prior to, and including, the year of the modification.

(q) "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third (1/3) of its potential electric output capacity and more than twenty-five (25) megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility.

(r) "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated NSR pollutant. For purposes of this rule, there are the following two (2) types of emissions units: (1) A new emissions unit is any emissions unit that is, or will be, newly constructed and that has existed for less than two (2) years from the date the emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in subdivision (1). A replacement unit is an existing emissions unit.

(s) "Federal land manager" means, with respect to any lands in the United States, the secretary of the department with authority over the lands.

(t) "Federally enforceable" means all limitations and conditions that are enforceable by the U.S. EPA, including: (1) those requirements developed pursuant to 40 CFR Part 60* and 40 CFR Part 61*; (2) requirements within the SIP; and (3) any permit requirements established pursuant to 40 CFR Part 52.21* or under regulations approved pursuant to 40 CFR Part 51, Subpart I*, including operating permits issued under an EPA-approved program that is incorporated into the SIP and expressly requires adherence to any permit issued under the program. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 32(u) "Fugitive emissions" means those emissions that could not reasonably pass through a stack, chimney,

vent, or other functionally equivalent opening.

(v) "Incidental emissions reductions" means the reductions in emissions of a pollutant achieved as an indirect result of complying with another rule for another pollutant.

(w) "Internal offset" means to use net emissions decreases from within the source to compensate for an

increase in emissions.

(x) "Lowest achievable emission rate" or "LAER" means, for any source, the more stringent rate of emissions based on the most stringent emissions limitation of the following: (1) Contained in the implementation plan of any state for the class or category of stationary source unless the owner or operator of the proposed stationary source demonstrates that the limitations are not achievable. (2) Achieved in practice by the class or category of stationary source. This limitation, when applied to a modification, means the LAER for the new or modified emissions unit within the stationary source. In no event shall the application of the LAER allow a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under applicable new source standards of performance.

(y) "Major modification" means any physical change in, or change in the method of operation of, a major stationary source that would result in a significant emissions increase and a significant net emissions increase of a regulated NSR pollutant from the major stationary source or, in an area that is classified as either a serious or severe ozone nonattainment area, an increase in VOC or oxides of nitrogen oxides (unless a NOX waiver is in effect) emissions that is not de minimis. The following provisions apply: (1) Any significant emissions increase from any emissions units or net emissions increase at a major stationary source that is significant for VOC or oxides of nitrogen oxides (unless a NOX waiver is in effect) shall be considered significant for ozone. (2) A physical change or change in the method of operation shall not include the following: (A) Routine maintenance, repair, and replacement. (B) Use of an alternative fuel or raw material by reason of an order under Sections 2(a) and 2(b) of the Energy Supply and Environmental Coordination Act of 1974 or by reason of a natural gas curtailment plan

under the Federal Power Act. (C) Use of an alternative fuel by reason of an order or rule under Section 125 of the CAA. (D) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste. (E) Use of an alternative fuel or raw material by a source that the source: (i) was capable of accommodating before December 21, 1976, unless the change would be prohibited under any enforceable permit condition that was established after December 21, 1976, under 40 CFR Part 52.21* or regulations approved under 40 CFR Part 51.160 through 40 CFR Part 51.165* or 40 CFR Part 51.166*; or (ii) is approved to use under any permit issued under this rule. (F) An increase in the hours of operation or in the production rate unless the change would be prohibited under any enforceable permit condition that was established after December 21, 1976, under 40 CFR Part 52.21* or regulations approved under 40 CFR Part 51.160 through 40 CFR Part 51.165* or 40 CFR Part

51.166*. (G) Any change in ownership at a stationary source. (H) The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project provided that the project complies with: (i) the SIP; and (ii) other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (3) The term shall not apply to a particular regulated NSR pollutant when the major stationary source is complying with the requirements under 326 IAC 2-2.4 for a PAL for that pollutant. Instead, the definition at 326
IAC 2-2.4-2 (g) shall apply.

(z) "Major stationary source" means the following: (1) Any stationary source of air pollutants, except for those subject to subdivision (2), that emits or has the potential to emit one hundred (100) tons per year or more of any regulated NSR pollutant. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 33(2) For ozone nonattainment areas, the term includes any stationary source or group of sources located within

a contiguous area and under common control that emits or has the potential to emit VOC or oxides of nitrogen

oxides (unless a NOX waiver is in effect) that would equal or exceed any of the following rates:

Ozone Classification Rate Marginal 100 tons per year Moderate 100 tons per year Serious 50 tons per year Severe 25 tons per year
(3) Any of the following stationary sources with potential emissions of five (5) tons per year or more of lead or lead compounds measured as elemental lead: (A) Primary lead smelters. (B) Secondary lead smelters. (C) Primary copper smelters. (D) Lead gasoline additive plants. (E) Lead-acid storage battery manufacturing plants that produce two thousand (2,000) or more batteries per day. (4) Any other stationary source with potential emissions of twenty-five (25) or more tons per year of lead or lead compounds measured as elemental lead. (5) Any physical change occurring at a stationary source not qualifying under subdivision (1) if the change would by itself qualify as a major stationary source under subdivision (1).

(aa) "Necessary preconstruction approvals or permits" means those permits or approvals required under 326
IAC 2-2

, 326 IAC 2- 5.1 , and 326 IAC 2- 7

.

(bb) "Net emissions decrease" means the amount by which the sum of the creditable emissions increases and decreases from any source modification project is less than zero (0).

(cc) "Net emissions increase", with respect to any regulated NSR pollutant emitted by a major stationary source, means the following: (1) The amount by which the sum of the following exceeds zero (0): (A) The increase in emissions from a particular physical change or change in the method of operation at a stationary source as calculated under section 2(c) and 2(d) of this rule. (B) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this clause shall be determined as provided in subsection (d), except that subsection (d)(1)(C) and (d)(2)(D) shall not apply. (2) For the purpose of determining de minimis in an area classified as serious or severe for ozone, the amount by which the sum of the emission increases and decreases from any source modification project exceeds zero (0). (3) The following emissions increases and decreases are to be considered when determining net emissions

increase: (A) Any increase in actual emissions from a particular physical change or change in the method of operation. (B) Any of the following increases and decreases in actual emissions that are contemporaneous with the particular change and are otherwise creditable: (i) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only if it occurs after January 16, 1979, and between the following: (AA) The date five (5) years before construction of the particular change commences. (BB) The date that the increase from the particular change occurs. (ii) An increase or decrease in actual emissions is creditable only if the commissioner has not relied on the increase or decrease in issuing a permit for the source under this rule, which permit is in effect when the increase in actual emissions from the particular change occurs. (iii) An increase in actual emissions is creditable only to the extent that a new level of actual emissions

exceeds the old level. (iv) A decrease in actual emissions is creditable only to the extent that: (AA) the old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions; (BB) it is enforceable as a practical matter at and after the time that actual construction on the particular Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 34change begins;

(CC) the commissioner has not relied on it in issuing any permit under regulations approved under 40 CFR Part 51, Subpart I* or the state has not relied on it in demonstrating attainment or reasonable further progress; and (DD) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (v) An increase that results from the physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period not to exceed one hundred eighty (180) days. (vi) Subsection (b)(1) shall not apply for determining creditable increases and decreases or after a particular change or change in method of operation.

(dd) "New", in reference to a: (1) major stationary source; (2) modified major stationary source; or (3) major modification;

means one that commences construction after the effective date of this rule.

(ee) "Nonattainment major new source review program" means a major source preconstruction permit program that has been approved by the U.S. EPA and incorporated into the SIP to implement the federal requirements of 40 CFR Part 51.165*, or a program that implements 40 CFR Part 51, Appendix S, Sections I through VI*. Any permit issued under the program is a major NSR permit.

(ff) "Pollution prevention" means the following: (1) Any activity that eliminates or reduces the release of air pollutants, including fugitive emissions, and other pollutants to the environment prior to recycling, treatment, or disposal through: (A) process changes; (B) product reformulation or redesign; or (C) substitution of less polluting raw materials. (2) The term does not include: (A) recycling, except certain in-process recycling practices; (B) energy recovery; (C) treatment; or (D) disposal.

(gg) "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is enforceable as a practical matter. Secondary emissions do not count in determining the potential to emit of a stationary source.

(hh) "Predictive emissions monitoring system" or "PEMS" means all of the equipment necessary to: (1) monitor: (A) process and control device operational parameters; and (B) other information, such as gas flow rate, O 2 or CO 2 concentrations; and (2) calculate and record the mass emissions rate on a continuous basis.

(ii) "Prevention of significant deterioration permit" or "PSD permit" means any permit that is issued under 326
IAC 2-2 or under the program in 40 CFR Part 52.21*.

(jj) "Project" means a physical change in, or change in the method of operation of, an existing major stationary

source.

(kk) "Projected actual emissions" means the following: (1) The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 35regulated NSR pollutant in any consecutive twelve (12) month period of the five (5) years following the date

the unit resumes regular operation after the project, or in any consecutive twelve (12) month period of the ten (10) years following the date the unit resumes regular operation, if the project involves increasing the emissions unit's design capacity or its potential to emit of that regulated NSR pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationary source. (2) In determining the projected actual emissions before beginning actual construction, the owner or operator of the major stationary source: (A) shall: (i) consider all relevant information, including, but not limited to: (AA) historical operational data; (BB) the company's own representations; (CC) the company's expected business activity and the company's highest projections of business activity; (DD) the company's filings with the state or federal regulatory authorities; and (EE) compliance plans under the approved plan; (ii) include fugitive emissions to the extent quantifiable and emissions associated with start-ups, shutdowns, and malfunctions to the extent they are affected by the project; and (iii) exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive twenty-four (24) month period used to establish the baseline actual emissions under subsection (d) and that is also unrelated to the particular project, including any increased utilization due to product demand growth; or (B) in lieu of using the method set out in clause (A), may elect to use the emissions unit's potential to emit, in tons per year, as defined under subsection (gg).

(ll) "Reasonable further progress" or "RFP" means the annual incremental reductions in emissions of a pollutant that are sufficient in the judgment of the board to provide reasonable progress towards attainment of the applicable ambient air quality standards established by 326 IAC 1- 3 by the dates set forth in the CAA.

(mm) "Regulated NSR pollutant" means the following: (1) Nitrogen oxides or any VOC. (2) Any pollutant for which a national ambient air quality standard has been promulgated. (3) Any pollutant that is a constituent or precursor of a general pollutant listed under subdivision (1) or (2) provided that a constituent or precursor pollutant may only be regulated under NSR as part of regulation of the general pollutant. For purposes of NSR: (A) VOC and nitrogen oxides are precursors to ozone in all ozone nonattainment areas; (B) sulfur dioxide and nitrogen oxides are precursors to PM 2.5 in all PM 2.5 nonattainment areas; and (C) VOC and ammonia are not precursors to PM 2.5 in any PM 2.5 nonattainment area.

(nn) "Replacement unit" means an emissions unit for which all the criteria listed in subdivisions (1) through (4) are met. No creditable emission reductions shall be generated from shutting down the existing emission unit that is replaced. The following applies: (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1)*, or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. (3) The replacement does not alter the basic design parameters, as discussed in 40 CFR 51.165(h)(2), of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit.

(oo) "Secondary emission" means emissions that would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose of this rule, secondary emissions must be specific, well-defined, quantifiable, and impact the same general area as the stationary source or modification that causes the secondary emissions. Secondary emissions may include, but are not limited to, emissions from: (1) ships or trains coming to or from the new or modified stationary source; and (2) an off-site support facility that would not otherwise be constructed or increase its emissions as a result of Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 36the construction or operation of the major stationary source or major modification.

(pp) "Significant", in reference to a net emissions increase or the potential of a source to emit any of the following pollutants, means a rate of emissions that would equal or exceed any of the following rates:

Carbon monoxide 100 tons per year (tpy) Nitrogen oxides 40 tpy Sulfur dioxide 40 tpy

Particulate matter PM 25 tpy

PM 10 15 tpy

PM 2.5 10 tpy direct PM 2.5 ; 40 tpy of sulfur dioxide; 40 tpy nitrogen oxides

Ozone (marginal and moderate

areas) 40 tpy of VOC or oxides of nitrogen oxides (unless a NOX waiver is in

effect)

Lead 0.6 tpy

(qq) "Significant emissions increase" means, for a regulated NSR pollutant, an increase in emissions that is significant as defined in subsection (pp) for that pollutant.

(rr) "Source modification project" means all those physical changes or changes in the methods of operation at a source that are necessary to achieve a specific operational change.

(ss) "Stationary source" means any building, structure, facility, or installation, including a stationary internal combustion engine, that emits or may emit a regulated NSR pollutant.

(tt) "Temporary clean coal technology demonstration project" means a clean coal technology demonstration project that is operated for a period of five (5) years or less and that complies with the SIP and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is

terminated.

*These documents are 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2-3- 1 ; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2401; filed Jan 6, 1989, 3:30 p.m.: 12 IR 1106; filed Nov 12, 1993, 4:00 p.m.: 17 IR 725; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1002; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3105; filed Aug 17, 2001, 3:45 p.m.: 25 IR 6; errata filed Nov 29, 2001, 12:20 p.m.: 25 IR 1183; errata filed Dec 12, 2002, 3:30 p.m.: 26 IR 1565; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3920; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Jun 11, 2012, 3:15 p.m.:

20120711-IR-326110251FRA)

SECTION 9. 326 IAC 2- 3-2 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-3-2 Applicability

Authority: IC 13- 14-8 ; IC 13- 17-3

Affected: IC 13- 15 ; IC 13- 17

Sec. 2. (a) This rule applies to new major stationary sources or major modifications constructed in an area designated, as of the date of submittal of a complete application, as nonattainment in 326 IAC 1-4 , for a pollutant for which the stationary source or modification is major.

(b) This rule applies to modifications of major stationary sources of VOC or oxides of nitrogen oxides (unless

a NOX waiver is in effect) in serious and severe ozone nonattainment areas as follows: (1) A modification of a major stationary source with a de minimis increase in emissions shall be exempt from Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 37section 3 of this rule.

(2) A modification having an increase in emissions that is not de minimis to an existing major stationary source that does not have the potential to emit one hundred (100) tons or more of VOC or oxides of nitrogen oxides (unless a NOX waiver is in effect) per year will not be subject to section 3(a) of this rule if the owner or operator of the source elects to internal offset the increase by a ratio of one and three-tenths (1.3) to one (1). If the owner or operator does not make the election or is unable to, section 3(a) of this rule applies, except that BACT shall be substituted for LAER required by section 3(a)(2) of this rule. (3) A modification having an increase in emissions that is not de minimis to an existing major stationary source emitting or having the potential to emit one hundred (100) tons of VOC or oxides of nitrogen oxides (unless a

NOX waiver is in effect) or more per year will be subject to the requirements of section 3(a) of this rule, except that the owner or operator may elect to internal offset the increase at a ratio of one and three-tenths (1.3) to one (1) as a substitute for LAER required by section 3(a)(2) of this rule.

(c) The requirements of this rule will be applied in accordance with the following: (1) Except as otherwise provided in subsection (k) and consistent with the definition of major modification in section 1(y) of this rule, a project is a major modification for a regulated NSR pollutant if it causes a significant emissions increase and a significant net emissions increase except for VOC emissions in a severe or serious nonattainment area for ozone. The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. (2) Prior to beginning actual construction, the procedure for calculating whether a significant emissions increase will occur depends upon the type of emissions units being modified, in accordance with this subsection, except for VOC emissions in a severe or serious nonattainment area for ozone. The procedure for calculating, before beginning actual construction, whether a significant net emissions increase will occur at the major stationary source is contained in section 1(cc) of this rule. Regardless of any preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant

net emissions increase. (3) For an actual-to-projected-actual applicability test for projects that only involve existing emissions units, a significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions for each existing emissions unit equals or exceeds the significant amount for that pollutant. (4) For an actual-to-potential applicability test for projects that only involve construction of new emissions units, a significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the potential to emit from each new emissions unit following completion of the project and the baseline actual emissions of these units before the project equals or exceeds the significant amount for that pollutant. (5) For projects that involve a combination of emission units using the tests in subdivisions (3) and (4), a significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in subdivisions (3) and (4), as applicable, with respect to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant.

(d) At the time that a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation that was established after August 7, 1980, on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then this rule applies to the source or modification as though construction had not yet commenced on

the source or modification.

(e) In the case of an area that has been redesignated nonattainment, any source that would not have been required to submit a permit application under 326 IAC 2-2 concerning the prevention of significant deterioration will not be subject to this rule if construction commences within eighteen (18) months of the area's redesignation.

(f) Major stationary sources or major modifications that would locate in any area designated as attainment or unclassifiable in the state and would exceed the following significant impact levels at any locality, for any pollutant that is designated as nonattainment, must meet the requirements specified in section 3(a)(1) through 3(a)(3) of this rule. All values are expressed in micrograms per cubic meter (μg/m 3):

Pollutant Annual 24-hour 8-hour 3-hour 1-hour

Sulfur dioxide 1 5 X 25 X

Total suspended particulates 1 5 X X X Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 38PM 10 1 5 X X X

PM 2.5 0.3 1.2 X X X

Nitrous oxides 1 X X X X
Carbon monoxide X X 500 X 2,000

(g) This rule does not apply to a source or modification, other than a source of VOC or oxides of nitrogen

oxides (unless a NOX waiver is in effect) in a serious or severe ozone nonattainment area or a source of PM 10 in

a serious PM 10 area, that would be a major stationary source or major modification only if fugitive emissions, to the extent quantifiable, are considered in calculating the potential to emit of the stationary source or modification and the source does not belong to any of the following categories: (1) Coal cleaning plants (with thermal driers). (2) Kraft pulp mills. (3) Portland cement plants. (4) Primary zinc smelters. (5) Iron and steel mill plants. (6) Primary aluminum ore reduction plants. (7) Primary copper smelters. (8) Municipal incinerators capable of charging more than two hundred fifty (250) tons of refuse per day. (9) Hydrofluoric, sulfuric, and nitric acid plants. (10) Petroleum refineries. (11) Lime plants. (12) Phosphate rock processing plants. (13) Coke oven batteries. (14) Sulfur recovery plants. (15) Carbon black plants (furnace process). (16) Primary lead smelters. (17) Fuel conversion plants. (18) Sintering plants. (19) Secondary metal production plants. (20) Chemical process plants, excluding ethanol production facilities that produce ethanol by natural fermentation included in North American Industry Classification System (NAICS) codes 325193 for Ethyl Alcohol Manufacturing or 312140 for Distilleries, as revised in 2007*. (21) Fossil-fuel boilers (or combinations thereof) totaling more than two hundred fifty million (250,000,000) British thermal units per hour heat input. (22) Petroleum storage and transfer unit with a storage capacity exceeding three hundred thousand (300,000)

barrels. (23) Taconite ore processing plants. (24) Glass fiber processing plants. (25) Charcoal production plants. (26) Fossil fuel-fired steam electric plants of more than two hundred fifty million (250,000,000) British thermal units per hour heat input. (27) Any other stationary source category that, as of August 7, 1980, is being regulated under Section 111 or

112 of the CAA.

(h) For purposes of this rule, secondary emissions from a source need not be considered in determining whether the source would qualify as a major source. If a source is subject to this rule on the basis of the direct emissions from the source, the applicable conditions must also be met for secondary emissions. The secondary emissions may be exempt from the requirements specified in section 3(a)(2) through 3(a)(3) of this rule.

(i) HAPs listed in and regulated by 326 IAC 14- 1 are not exempt from this rule.

(j) The installation, operation, cessation, or removal of temporary clean coal technology demonstration projects funded under the Department of Energy-Clean Coal Technology Appropriations may be exempt from the requirements of section 3 of this rule. To qualify for this exemption, the project must: (1) be at an existing facility; (2) operate for not more than five (5) years; and (3) comply with all other applicable rules for the area. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 39(k) For any major stationary source operating under a PAL for a regulated NSR pollutant, the major stationary

source shall comply with requirements under 326 IAC 2- 3.4

.

(l) The following specific provisions apply with respect to any regulated NSR pollutant emitted from projects at existing emissions units at a major stationary source, other than projects at a source with a PAL, in circumstances where there is a reasonable possibility, within the meaning of this subsection, that a project that is not a part of a major modification may result in a significant emissions increase of a regulated NSR pollutant, and the owner or operator elects to use the method specified in section 1(kk)(2)(A) of this rule for calculating projected actual

emissions: (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information: (A) A description of the project. (B) Identification of the emissions units whose emissions of a regulated NSR pollutant could be affected by the project. (C) A description of the applicability test used to determine that the project is not a major modification for any regulated NSR pollutant, including the following: (i) The baseline actual emissions. (ii) The projected actual emissions. (iii) The amount of emissions excluded under section 1(kk)(2)(A)(iii) of this rule and an explanation for why

the amount was excluded. (iv) Any netting calculations, if applicable. (2) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in subdivision (1) to the department. Nothing in this subdivision shall be construed to require the owner or operator of the unit to obtain any determination from the department before beginning actual construction. (3) The owner or operator shall: (A) monitor the emissions of any regulated NSR pollutant that could increase as a result of the project and that is emitted by any emissions units identified in subdivision (1)(B); and (B) calculate and maintain a record of the annual emissions, in tons per year on a calendar year basis, for a period of five (5) years following resumption of regular operations after the change, or for a period of ten (10) years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated NSR pollutant at the emissions unit. (4) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the department within sixty (60) days after the end of each year during which records must be generated under subdivision (3) setting out the unit's annual emissions during the year that preceded submission of the
report. (5) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the department if the annual emissions, in tons per year, from the project identified in subdivision (1), exceed the baseline actual emissions, as documented and maintained under subdivision (1)(C), by a significant amount for that regulated NSR pollutant, and if the emissions differ from the preconstruction projection as documented and maintained under subdivision (1)(C). The report shall be submitted to the department within sixty (60) days after the end of the year. The report shall contain the following: (A) The name, address, and telephone number of the major stationary source. (B) The annual emissions as calculated under subdivision (3). (C) The emissions calculated under the actual to projected actual test stated in subsection (c)(3). (D) Any other information that the owner or operator wishes to include in the report. (6) A reasonable possibility under this subsection occurs when the owner or operator calculates the project to

result in either: (A) a projected actual emissions increase of at least fifty percent (50%) of the amount that is a significant emissions increase, as defined in section 1(qq) of this rule, without reference to the amount that is a significant net emissions increase, for the regulated NSR pollutant; or (B) a projected actual emissions increase that, added to the amount of emissions excluded under section 1(kk)(2)(A)(iii), sums to at least fifty percent (50%) of the amount that is a significant emissions increase, as defined in section 1(qq) of this rule, without reference to the amount that is a significant net emissions increase, for the regulated NSR pollutant. For a project for which a reasonable possibility occurs only within the meaning of this clause, and not also within the meaning of clause (A), then subdivisions (2) through (5) do not apply to the project. (7) The owner or operator of the source shall make the information required to be documented and maintained under subdivisions (1) through (5) available for review upon a request for inspection by the department. The Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 40general public may request this information from the department under 326 IAC 17.1

.

*These documents are incorporated by reference. Copies may be obtained through the U.S. Census Bureau website at: www.census.gov/eos/www/naics or are available for review and copying at the Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2-3- 2; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2404; filed Nov 12, 1993, 4:00 p.m.: 17 IR 728; filed Aug 17, 2001, 3:45 p.m.: 25 IR 11; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3929; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Jul 21, 2011, 10:45 a.m.: 20110817-IR-326110099FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 10. 326 IAC 2- 3- 3 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-3-3 Applicable requirements

Authority: IC 13- 14-8 ; IC 13- 17-3

Affected: IC 13- 15 ; IC 13- 17

Sec. 3. (a) Prior to the issuance of a construction permit to a source subject to this rule, the applicant shall comply with the following requirements: (1) The proposed major new source or major modification shall demonstrate that the source will meet all applicable requirements of this title, any applicable new source performance standard in 40 CFR Part 60*, or any national emission standard for HAPs in 40 CFR Part 61*. If the commissioner determines that the proposed major new source cannot meet the applicable emission requirements, the permit to construct will be

denied. (2) The applicant will apply emission limitation devices or techniques to the proposed construction or modification such that the LAER for the applicable pollutant will be achieved. (3) The applicant shall either demonstrate that: (A) all existing major sources owned or operated by the applicant in the state are in compliance with all applicable emission limitations and standards contained in the CAA and in this title; or (B) they are in compliance with a federally enforceable compliance schedule requiring compliance as expeditiously as practicable. (4) The applicant shall submit an analysis of alternative sites, sizes, production processes, and environmental control techniques for the proposed source that demonstrates that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or

modification. (5) Emissions resulting from the proposed construction or modification shall be offset by a reduction in actual emissions of the same pollutant from an existing source or combination of existing sources. The emission offset shall be such that there will be reasonable further progress toward attainment of the applicable ambient air quality standards as follows: (A) Greater than one-for-one unless otherwise specified. (B) For ozone nonattainment areas, the following table shall determine the minimum offset ratio requirements for major stationary sources of VOC or oxides of nitrogen oxides (unless a NOX waiver is in effect):

Ozone Classification Minimum Offset Requirements

Marginal 1.1 to 1

Moderate 1.15 to 1

Serious 1.2 to 1

Severe 1.3 to 1
(6) The total tonnage of increased emissions, in tons per year, resulting from a major modification that must be offset in accordance with Section 173 of the CAA shall be determined by summing the difference between the

allowable emissions after the modification and the actual emissions before the modification for each emissions

unit. (7) The applicant shall obtain the necessary preconstruction approvals and shall meet all the permit requirements specified in 326 IAC 2- 5.1 or 326 IAC 2- 7 , as applicable. (8) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with an applicable provision of the SIP and any other requirements under local, state, or federal law. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 41(b) The following provisions shall apply to all emission offset evaluations:

(1) Emission offsets shall be determined on a tons per year and, whenever possible, a pounds per hour basis when all facilities requiring offset involved in the emission offset calculations are operating at their maximum potential or allowed production rate. When offsets are calculated on a tons per year basis, the baseline emissions for existing sources providing the offsets shall be calculated using the allowed or actual annual operating hours, whichever is less. (2) The baseline for determining credit for emission offsets will be the emission limitations or actual emissions, whichever is lower, in effect at the time the application to construct or modify a source is filed. Credit for emission offset purposes may be allowable for existing control that goes beyond that required by source-specific emission limitations contained in this title. (3) In cases where the applicable rule under this title does not contain an emission limitation for a source or source category, the emission offset baseline involving the sources shall be the actual emissions determined at their maximum expected or allowable production rate. (4) In cases where emission limitations for existing sources allow greater emissions than the potential to emit of the source, emission offset credit shall only be allowed for emissions controlled below the potential to emit. (5) A source may receive offset credit from emission reductions achieved by shutting down an existing source or permanently curtailing production or operating hours below baseline levels if the reductions are permanent, quantifiable, and federally enforceable, as follows: (A) If the area has an attainment plan approved by the U.S. EPA, the shutdown or curtailment is creditable only if it occurred on or after the date of the most recent emissions inventory or attainment demonstration. However, in no event may credit be given for shutdowns that occurred prior to August 7, 1977. For purposes of this clause, the department may choose to consider a prior shutdown or curtailment to have occurred after the date of its most recent emissions inventory if the inventory explicitly includes, as current existing emissions, the emissions from the previously shutdown or curtailed sources. (B) The reductions may be credited in the absence of an approved attainment demonstration only if the: (i) shutdown or curtailment occurred on or after the date the new source permit application is filed; or (ii) applicant can establish that the proposed new source is a replacement for the shutdown or curtailed source and the cutoff date provisions in clause (A) are observed. (6) Emission offset credit involving an existing fuel combustion source will be based on the allowable emissions under other rules of this title for the type of fuel being burned at the time the new source application is filed. If the existing source commits to switch to a cleaner fuel at some future date, emission offset credit based on the allowable emissions for the fuels involved is acceptable, provided the permit is conditioned to require the use of a specific alternative control measure that would achieve the same degree of emission reduction should the source switch back to a dirtier fuel at some later date. The commissioner will grant emission offset credit for fuel switching only after ensuring that adequate supplies of the new fuel are available at least for the next ten (10) years. (7) In the case of VOC emissions, no emission offset credit may be allowed for replacing one (1) hydrocarbon compound with another of lesser reactivity, except for those compounds defined as nonphotochemically reactive hydrocarbons in 326 IAC 1-2-48

. (8) No emission reduction may be approved to offset emissions that cannot be federally enforced. Offsetting emissions shall be considered federally enforceable if the reduction is included as a condition in the applicable permit as specified in 326 IAC 2- 5.1 or 326 IAC 2- 7 if issued under a federally-approved air permit program. (9) Emission reductions required under any other rule adopted by the board shall not be creditable as

emission reductions and therefore cannot be used for emission offsets. (10) Incidental emission reductions that are not otherwise required by any other rule adopted by the board

shall be creditable as emission reductions for emission offsets if the emission reductions meet all of the other requirements for offsets. (11) A source may offset by alternative or innovative means emission increases from rocket engine or motor firing and cleaning related to the firing at an existing or modified major source that tests rocket engines or motors under the following conditions: (A) Any modification proposed is solely for the purpose of expanding the testing of rocket engines or motors at an existing source that is permitted to test the engines on November 15, 1990. (B) The source demonstrates to the satisfaction of the department that: (i) it has used all reasonable means to obtain and utilize offsets, as determined on an annual basis, for the emissions increases beyond allowable levels; (ii) all available offsets are being used; and (iii) sufficient offsets are not available to the source. (C) The source has obtained a written finding from: (i) the Department of Defense; Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 42(ii) the Department of Transportation;

(iii) the National Aeronautics and Space Administration; or (iv) another appropriate federal agency; that the testing of rocket motors or engines at the facility is required for a program essential to the national security. (D) The source will comply with an alternative measure, imposed by the department, designed to offset any emission increases beyond permitted levels not directly offset by the source. (12) Credit for an emissions reduction can be claimed to the extent that the department has not relied on the

emission reduction credit in: (A) issuing any permit under regulations approved pursuant to 40 CFR Part 51 Subpart I*; or (B) a demonstration for attainment or reasonable further progress.

*This document 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2-3-3; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2406; filed Nov 12, 1993, 4:00 p.m.: 17 IR 730; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1005; filed Aug 17, 2001, 3:45 p.m.: 25 IR 12; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3931; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Jun 11, 2012, 3:15

p.m.: 20120711-IR-326110251FRA)

SECTION 11. 326 IAC 2- 5.1-2 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-5.1-2 Registrations

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 4-21.5-3-4 ; IC 13- 15-4-9 ; IC 13- 17

Sec. 2. (a) On and after December 25, 1998, this section applies to the following new sources: (1) Sources with a potential to emit within the following ranges: (A) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of either particulate matter PM, or particulate matter less than ten (10) microns PM 10 , or direct PM 2.5 . (B) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of the following pollutants: (i) Sulfur dioxide (SO 2). (ii) Nitrogen oxides (NO

x). (C) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of VOC for sources not described in clause (D). (D) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of VOC for sources that require the use of air pollution control equipment to comply with the applicable provisions of

326 IAC 8

. (E) Less than one hundred (100) tons per year and equal to or greater than twenty-five (25) tons per year of carbon monoxide (CO). (F) Less than five (5) tons per year and equal to or greater than two-tenths (0.2) ton per year of lead (Pb). (G) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of the following regulated air pollutants: (i) Hydrogen sulfide (H 2 S). (ii) Total reduced sulfur (TRS). (iii) Reduced sulfur compounds. (iv) Fluorides. (2) Any source that: (A) is subject to 326 IAC 20- 8 ; and (B) consists of only decorative chromium electroplating tanks that use a trivalent chromium process that incorporates a wetting agent.

(b) No person subject to subsection (a) shall construct or operate any new source subject to this section without registering the new source with the commissioner. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 43(c) The registrant shall submit an application in accordance with this rule to the commissioner. The application

shall include the following information: (1) The company name and address. (2) Descriptive information as follows: (A) A description of the nature and location of the proposed construction. (B) The design capacity and typical operating schedule of the proposed construction. (C) A description of the source and the emissions unit or units comprising the source. (D) A description of any emission control equipment, including design specifications. (3) A schedule for construction of the source. (4) Information on the nature and amount of pollutants to be emitted and any other information determined by the commissioner as necessary to demonstrate compliance with the ambient air quality standards. (5) Each application shall be signed by an authorized individual, unless otherwise noted, whose signature constitutes an acknowledgement that the applicant assumes the responsibility of assuring that the source, emissions unit or units, or emission control equipment will be constructed and will operate in compliance with all applicable state air pollution control rules and the requirements of the CAA. The signature shall: (A) constitute affirmation that the statements in the application are true and complete, as known at the time of completion of the application; and (B) subject the applicant to liability under state laws forbidding false or misleading statements.

(d) Upon receipt of the information requested, the commissioner shall make a final determination within the time period described under 326 IAC 2- 1.1- 8

.

(e) If the commissioner finds an application submitted in accordance with this rule to be incomplete, the commissioner shall mail a notice of deficiency to the applicant that specifies the portions of the application that: (1) do not contain adequate information for the commissioner to process the application; or (2) are not consistent with applicable law or rules. The applicant shall forward the required additional information to the commissioner, or request additional time for providing the information, within sixty (60) days of receipt of the notice of deficiency. If the additional information is not submitted within sixty (60) days, or the additional time provided by the commissioner, the application may be

denied in accordance with IC 13- 15-4- 9

.

(f) A registration issued by the commissioner shall include terms and conditions that include all of the following: (1) Identification of any and all applicable requirements. (2) A physical description of the emissions unit or units and operating information consistent with the application information. (3) A requirement that an authorized individual provide an annual notice to the department that the source is in operation and in compliance with the registration. (4) An approval to operate in accordance with 326 IAC 2- 5.5

.

(g) A registration issued by the commissioner may include terms and conditions that require monitoring, record keeping, and reporting as necessary to assure compliance with all applicable requirements.

(h) The issuance of a registration shall not be subject to the public notice requirements under 326 IAC 2- 1.1- 6

, but the commissioner shall provide for public notice under IC 4-21.5- 3-4

.

(i) The commissioner shall not issue a registration that limits a source's potential to emit.

(Air Pollution Control Board; 326 IAC 2-5.1- 2; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1008; readopted filed Oct 22, 2004, 10:35 a.m.: 28 IR 791; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Jun 11, 2012, 3:15

p.m.: 20120711-IR-326110251FRA)

SECTION 12. 326 IAC 2- 5.1- 3 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-5.1-3 Permits

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 15-4-9 ; IC 13- 17 Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 44Sec. 3. (a) On and after December 25, 1998, a new source must obtain a construction permit prior to

beginning construction of an emissions unit under either of the following conditions: (1) The potential to emit is equal to or greater than the following: (A) One (1) ton or more per year of lead or lead compounds measured as elemental lead and the source is one (1) of the following: (i) A primary lead smelter. (ii) A secondary lead smelter. (iii) A primary copper smelter. (iv) A lead gasoline additive plant. (v) A lead-acid storage battery manufacturing plant that produces two thousand (2,000) or more batteries per day. (B) Five (5) tons or more per year of lead or lead compounds measured as elemental lead and the source is not listed in clause (A). (C) One hundred (100) tons per year of carbon monoxide (CO). (D) Ten (10) tons per year of any single HAP or twenty-five (25) tons per year of any combination of HAPs listed pursuant to Section 112(b) of the CAA. (E) Twenty-five (25) tons per year of the following regulated air pollutants: (i) Particulate matter PM, or particulate matter less than ten (10) microns PM 10 , or direct PM 2.5 . (ii) Sulfur dioxide (SO 2). (iii) Nitrogen oxides (NO

x). (iv) VOC. (v) Hydrogen sulfide (H 2 S). (vi) Total reduced sulfur (TRS). (vii) Reduced sulfur compounds. (viii) Fluorides. (2) The source belongs to any of the following source categories: (A) A source consisting of a chromium electroplating tank, chromium anodizing tank, or an operation subject

to 326 IAC 20- 8 . Sources consisting only of decorative chromium electroplating tanks that use a trivalent chromium process that incorporates a wetting agent that are subject to section 2 of this rule are not

included. (B) A source that includes medical waste incinerators subject to 40 CFR 60, Subpart Ec*. (C) Area or minor sources that include an emission unit or units that require a Part 70 operating permit

under 326 IAC 2- 7

.

(b) Any person proposing the construction of a new source and required to obtain a construction permit under subsection (a), including any source or emissions unit that is subject to 326 IAC 2-2

, 326 IAC 2- 3 , or 326 IAC 2-

4.1 , shall prepare and submit a permit application to the commissioner in accordance with subsection (c).

(c) At a minimum, an application shall include the following information: (1) The company name and address. (2) The following descriptive information: (A) A description of the nature and location of the proposed construction. (B) The design capacity and typical operating schedule of the proposed construction. (C) A description of the source and the emissions unit or units comprising the source. (D) A description of any emission control equipment, including design specifications. (3) A schedule for construction of the source. (4) The following information as needed to assure all reasonable information is provided to evaluate compliance consistent with the permit terms and conditions, the underlying requirements of this title and the CAA, the ambient air quality standards set forth in 326 IAC 1- 3 , or the prevention of significant deterioration

maximum allowable increase under 326 IAC 2-2: (A) Information on the nature and amount of the pollutants to be emitted, including an estimate of the potential to emit any regulated air pollutants. (B) Estimates of offset credits as required under 326 IAC 2- 3 , for sources to be constructed in

nonattainment areas. (C) Monitoring, testing, reporting, and record keeping requirements. (D) Any other information (including, but not limited to, the air quality impact) determined by the commissioner to be necessary to demonstrate compliance with the requirements of this title and the requirements of the CAA, whichever are applicable. (5) Each application shall be signed by an authorized individual, unless otherwise noted, whose signature Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 45constitutes an acknowledgment that the applicant assumes the responsibility of assuring that the source,

emissions unit or units, or emission control equipment will be constructed and will operate in compliance with all applicable Indiana air pollution control rules and the requirements of the CAA. The signature shall: (A) constitute affirmation that the statements in the application are true and complete, as known at the time of completion of the application; and (B) subject the applicant to liability under state laws forbidding false or misleading statements.

(d) If the commissioner finds an application submitted in accordance with this rule to be incomplete, the commissioner shall mail a notice of deficiency to the applicant that specifies the portions of the application that: (1) do not contain adequate information for the commissioner to process the application; or (2) are not consistent with applicable law or rules. The applicant shall forward the required additional information to the commissioner, or request additional time for providing the information, within thirty (30) calendar days of receipt of the notice of deficiency. If the additional information is not submitted within thirty (30) calendar days, or the additional time provided by the commissioner, the application may be denied in accordance with IC 13- 15-4- 9

.

(e) Permits issued under this article shall contain the following: (1) Emission limitations for any source or emissions unit that assure: (A) the ambient air quality standards set forth in 326 IAC 1- 3 will be attained or maintained, or both; (B) the applicable prevention of significant deterioration maximum allowable increases set forth in 326 IAC

2-2 will be maintained; (C) the public health will be protected; and (D) compliance with the requirements of this title and the requirements of the CAA will be maintained. (2) Monitoring, testing, reporting, and record keeping requirements that assure reasonable information is provided to evaluate compliance consistent with the permit terms and conditions, the underlying requirements of this title and the CAA. The requirements shall be in accordance with 326 IAC 3 and other applicable regulations. (3) A requirement that any revision of an emission limitation, monitoring, testing, reporting, and record keeping requirements shall be made consistent with the permit revision requirements under 326 IAC 2- 6.1- 6

, 326 IAC

2- 7- 12 , or 326 IAC 2- 8- 11.1

. (4) The following requirements with respect to compliance: (A) The commissioner may require stack testing, monitoring, or reporting at any time to assure compliance with all applicable requirements. Any monitoring or testing shall be performed in accordance with 326 IAC 3 or other methods approved by the commissioner. (B) Upon presentation of credentials and other documents as may be required by law, the owner or operator shall allow the commissioner, an authorized representative of the commissioner, or the U.S. EPA to perform the following: (i) Enter upon the premises where: (AA) a permitted source is located or emissions related activity is conducted; or (BB) records required by a permit term or condition are kept. (ii) Have access to and copy any records that must be kept under this title or the conditions of a permit or permit revision. (iii) Inspect any: (AA) operations; (BB) processes; (CC) emissions units (including monitoring and air pollution control equipment); or (DD) practices; regulated or required under a permit or permit revision. (iv) Sample or monitor substances or parameters for the purpose of assuring compliance with a permit, permit revision, or applicable requirement, as authorized by the CAA and this title. (v) Document alleged violations using cameras or video equipment. The documentation may be subject to a claim of confidentiality under 326 IAC 17.1

. (5) For sources that will operate pursuant to an operating permit under 326 IAC 2- 6.1 , a requirement that an authorized individual provide an annual notice to the department that the source is in operation and in compliance with the permit. The commissioner may request that the source provide an identification of all

emissions units that have been installed that are described under 326 IAC 2- 1.1- 3 (d)(1) through 326 IAC 2-

1.1- 3 (d)(31) with the annual notification.

(f) Any permit issued under this section shall conform to the permit content requirements under subsection (e), except for the following: Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 46(1) Any permit that includes limitations on the potential to emit of a source must conform with the federally

enforceable state operating permit (FESOP) permit content and compliance requirements under 326 IAC 2- 8-4

and 326 IAC 2- 8- 5

. (2) An applicant may request that the permit content and compliance requirements conform with the Part 70 requirements under 326 IAC 2- 7- 5 and 326 IAC 2- 7- 6 if the applicant is also requesting that the Part 70 permit issuance requirements under 326 IAC 2- 7 apply.

(g) The commissioner shall provide for public notice and comment in accordance with 326 IAC 2- 1.1- 6 prior to issuing a construction permit.

(h) After receiving an approval to construct and prior to receiving approval to operate, a source shall prepare

an affidavit of construction as follows: (1) The affidavit shall include the following: (A) The name and title of the authorized individual. (B) The company name. (C) An affirmation that the source was constructed in conformance with the requirements and intent of the construction permit application. (D) Identification of any changes to the source not included in the construction permit application or any

amendment thereof. (E) The signature of the authorized individual. (2) The affidavit shall be notarized. (3) A source shall submit the affidavit to the commissioner after construction has been completed.

(i) A source may not operate any air pollutant emitting source or emissions unit prior to receiving a validation letter issued by the commissioner, except as provided in the following: (1) A source may operate upon submission of an affidavit of construction that affirms that the source is described by, and will comply with, the construction permit as issued or previously amended. (2) The commissioner shall issue a validation letter within five (5) working days of receipt of the affidavit of

construction. (3) The validation letter may authorize the operation of all or part of the source. (4) The validation letter may include amendments to the permit if the amendments are requested by the source and if the amendment does not constitute a revision and require public notice and comment under 326
IAC 2- 1.1- 6

. (5) A validation letter may not approve the operation of any emissions unit if an amendment requested by the source would constitute a revision and require public notice and comment under 326 IAC 2- 1.1- 6

.

*This document 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2-5.1-3; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1009; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3106; filed May 21, 2002, 10:20 a.m.: 25 IR 3059; filed Oct 1, 2010, 3:48 p.m.:

20101027-IR-326070372FRA; filed Feb 6, 2012, 2:54 p.m.: 20120307-IR-326090493FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 13. 326 IAC 2- 5.5- 1 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-5.5- 1 Applicability

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 15 ; IC 13- 17

Sec. 1. (a) The following shall be exempt from the requirements of this rule: (1) Existing sources that: (A) meet the criteria for an exemption under 326 IAC 2- 1.1- 3 ; or (B) are not specifically required to obtain a registration under this rule. (2) Existing sources operating pursuant to one (1) of the following: Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 47(A) A Part 70 permit under 326 IAC 2- 7

.

(B) A federally enforceable state operating permit (FESOP) under 326 IAC 2- 8

. (C) A source specific operating agreement under 326 IAC 2- 9

. (D) A permit by rule under 326 IAC 2- 10

. (E) A permit by rule under 326 IAC 2- 11

. (F) A minor source operating permit under 326 IAC 2- 6.1

.

(b) On and after the effective date of this rule, this rule applies to the following existing sources: (1) Sources with a potential to emit within the following ranges: (A) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of either particulate matter PM, or particulate matter less than ten (10) microns PM 10 , or direct PM 2.5 . (B) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of the following pollutants: (i) Sulfur dioxide (SO 2). (ii) Nitrogen oxides (NO

x). (C) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of volatile organic compounds VOC for sources that are not described in clause (D). (D) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of volatile organic compounds VOC for sources that require the use of air pollution control equipment to comply with the applicable provisions of 326 IAC 8

. (E) Less than one hundred (100) tons per year and equal to or greater than twenty-five (25) tons per year of carbon monoxide (CO). (F) Less than five (5) tons per year and equal to or greater than two-tenths (0.2) ton per year of lead (Pb). (G) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of the following regulated air pollutants: (i) Hydrogen sulfide (H 2 S). (ii) Total reduced sulfur (TRS). (iii) Reduced sulfur compounds. (iv) Fluorides. (2) Any existing source that: (A) is subject to 326 IAC 20- 8 ; and (B) consists of only decorative chromium electroplating tanks that use a trivalent chromium process that incorporates a wetting agent.

(c) No person subject to subsection (b) shall operate an existing source subject to this rule without registering

the source with the commissioner.

(Air Pollution Control Board; 326 IAC 2-5.5- 1 ; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1012; readopted filed Oct 22, 2004, 10:35 a.m.: 28 IR 792; readopted filed Aug 25, 2010, 2:42 p.m.: 20100922-IR-326100394BFA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 14. 326 IAC 2- 6.1- 6 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-6.1-6 Permit revisions

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 15-5 ; IC 13- 17

Sec. 6. (a) Any person proposing to construct new emission units, modify existing emission units, or otherwise modify the source as described in this section shall submit an application or notification for a permit revision in

accordance with this rule.

(b) Notwithstanding any other provision of this rule, the owner or operator of a source may repair or replace an emissions unit or air pollution control equipment or components thereof, without prior approval, if the repair or replacement: (1) results in a potential to emit for each regulated pollutant that is less than or equal to the potential to emit of the equipment or the affected emissions unit that was repaired or replaced; (2) is not a major modification under 326 IAC 2-2- 1

, 326 IAC 2- 3- 1 , or 326 IAC 2-4.1 ; and Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 48(3) returns the emissions unit, process, or control equipment to normal operation after an upset, malfunction,

or mechanical failure or prevents impending and imminent failure of the emissions unit, process, or control equipment. If the repair or replacement qualifies as a reconstruction or is a complete replacement of an emissions unit or air pollution control equipment and would require a permit or operating permit revision under a provision of this rule, the owner or operator of the source must submit an application for a permit or permit revision to the commissioner not later than thirty (30) calendar days after initiating the repair or replacement.

(c) An application or notification required under this section shall contain the following information: (1) The company name and address. (2) A description of the change and the emissions resulting from the change. (3) An identification of the applicable requirements to which the source is newly subject as a result of the change, including the applicable: (A) emission limits and standards; (B) monitoring and test methods; and (C) record keeping and reporting requirements. (4) A schedule of compliance, if applicable. (5) Each application or notification shall be signed by an authorized individual whose signature constitutes an acknowledgment that the applicant assumes the responsibility of assuring that the source, emissions unit or units, or emission control equipment will be modified and will operate in compliance with all applicable Indiana air pollution control rules and the requirements of the CAA. The signature shall: (A) constitute affirmation that the statements in the application are true and complete, as known at the time of completion of the application; and (B) subject the applicant to liability under state laws forbidding false or misleading statements.

(d) The following changes shall be designated as administrative amendments and shall not be required to comply with the provisions in 326 IAC 2- 1.1- 6 concerning public notice or prior approval by the commissioner: (1) Changes correcting typographical errors. (2) Minor administrative changes such as a change in: (A) the name, address, or telephone number of any person identified in a permit; or (B) descriptive information concerning the source or emissions unit or units. (3) Changes in ownership or operational control of a source. (4) Modifications that would require more frequent monitoring or reporting. (5) If there is no new equipment and no change to operations or processes, and the change is a result of one (1) or more of the following: (A) Incorporation or deletion of applicable requirements as a result of a change in applicability. (B) Incorporation of alternative testing or compliance monitoring requirements that have received U.S. EPA approval under 40 CFR 60*, 40 CFR 61*, or 40 CFR 63*. (C) Incorporation of newly applicable monitoring or testing requirements specified in 40 CFR 60*, 40 CFR 61*, or 40 CFR 63* that apply as the result of a change in applicability of those requirements to the source, including removal from the permit of monitoring or testing requirements that no longer apply as a result of the change in applicability. (D) Incorporation of test methods or monitoring requirements specified in an applicable requirement that the source may use under the applicable requirement as an alternative to the testing or monitoring requirements contained in the permit. (6) Modifications that have the potential to emit greater than or equal to one (1) ton per year but less than ten (10) tons per year of a single HAP as defined under Section 112(b) of the CAA or greater than or equal to two and one-half (2.5) tons per year but less than twenty-five (25) tons per year of any combination of HAPs. (7) A modification that meets the applicability criteria and can meet and will comply with the operational limitations for a source specific operating agreement under 326 IAC 2- 9 or a general permit under 326 IAC 2-

12

. (8) A modification that adds an emissions unit of the same type that is already permitted or replaces an existing unit and that will comply with the same applicable requirements and permit terms and conditions as the existing emission unit, except if the modification would result in a potential to emit greater than the

thresholds in 326 IAC 2-2 or 326 IAC 2- 3 or would result in a potential to emit equal to or greater than the

thresholds in 326 IAC 2- 7

. (9) A modification that is subject to the following reasonably available control technology (RACT), a new source performance standard (NSPS), or a national emission standard for hazardous air pollutants (NESHAP) and the RACT, NSPS, or NESHAP is the most stringent applicable requirement, except for those modifications that would be subject to the provisions of 40 CFR 63, Subpart B Hazardous Air Pollutants: Regulations Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 49Governing Constructed or Reconstructed Major Sources*:

(A) 40 CFR 60.40c*, except for modifications to a source located in Lake County. (B) 40 CFR 60.110b*. (C) 40 CFR 60.250*, except for modifications that include thermal dryers. (D) 40 CFR 60.330* for modifications that only include emergency generators. (E) 40 CFR 60.670*. (F) 40 CFR 61.110*. As part of the application required under subsection (c), the applicant shall acknowledge the requirement to comply with the RACT, NSPS, or NESHAP. For modifications under clauses (A) through (D), the source must use the monitoring specified in the relevant RACT, NSPS, or NESHAP. (10) A modification that is subject to the following new source performance standards (NSPSs), except for modifications that would be subject to 326 IAC 8- 1- 6: (A) 40 CFR 60.310*. (B) 40 CFR 60.390*. (C) 40 CFR 60.430*. (D) 40 CFR 60.440*. (E) 40 CFR 60.450*. (F) 40 CFR 60.460*. (G) 40 CFR 60.490*. (H) 40 CFR 60.540*. (I) 40 CFR 60.560*. (J) 40 CFR 60.580*. (K) 40 CFR 60.600*. (L) 40 CFR 60.660*. (M) 40 CFR 60.720*. As part of the application required under subsection (c), the applicant shall acknowledge the requirement to comply with the NSPS. For modifications under clauses (A) through (H), the source must use the monitoring specified in the NSPS. (11) Addition of an emissions unit, subject to 326 IAC 2- 1.1- 3 , at the request of the applicant.

(e) Any person proposing to make a change or modification described in subsection (d) shall submit a notification concerning the change or modification within thirty (30) calendar days of making the change or modification and shall include the information required under subsection (c). The notification shall be sent by one (1) of the following means: (1) Certified mail. (2) Delivery by hand or express service. (3) Transmission by other equally reliable means of notification by the source to the commissioner.

(f) The commissioner shall revise the permit within thirty (30) days of receipt of the notification. The commissioner shall provide the permittee with a copy of the revised permit. Notwithstanding IC 13- 15- 5 , the permit revision shall be effective immediately.

(g) The following modifications shall require minor permit revisions and shall require approval prior to construction and operation: (1) Modifications that would reduce the frequency of any monitoring or reporting required by a permit condition or applicable requirement. (2) The addition of a portable source or relocation of a portable source to an existing source, if the addition or relocation would require a change to any permit terms or conditions. (3) Modifications that would have a potential to emit within the following ranges: (A) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of either particulate matter PM, or particulate matter less than ten (10) microns PM 10 , or direct PM 2.5 . (B) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of the following pollutants: (i) Sulfur dioxide (SO 2). (ii) Nitrogen oxides (NO

x). (iii) VOC for modifications that are not described in clause (C). (C) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of VOC for modifications that require the use of air pollution control equipment to comply with the applicable provisions

of 326 IAC 8

. (D) Less than one hundred (100) tons per year and equal to or greater than twenty-five (25) tons per year of Indiana Register

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(E) Less than five (5) tons per year and equal to or greater than two-tenths (0.2) ton per year of lead (Pb). (F) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of the following regulated air pollutants: (i) Hydrogen sulfide (H 2 S). (ii) Total reduced sulfur (TRS). (iii) Reduced sulfur compounds. (iv) Fluorides. (4) Modifications for which the potential to emit is limited to less than twenty-five (25) tons per year of any regulated pollutant other than HAPs, ten (10) tons per year of any single HAP as defined under Section 112(b) of the CAA, or twenty-five (25) tons per year of any combination of HAPs by complying with one (1) of the following constraints: (A) Limiting total annual solvent usage or maximum VOC content, or both. (B) Limiting annual hours of operation of the process or business. (C) Using a particulate air pollution control device as follows: (i) Achieving and maintaining ninety-nine percent (99%) efficiency. (ii) Complying with a no visible emission standard. (iii) The potential to emit before air pollution controls does not exceed major source thresholds for federal permitting programs. (iv) Certifying to the commissioner that the air pollution control device supplier guarantees that a specific outlet concentration, in conjunction with design air flow, will result in actual emissions less than twenty-five (25) tons of particulate matter PM, or fifteen (15) tons per year of particulate matter with an aerodynamic

diameter less than or equal to ten (10) micrometers PM 10 , or direct PM 2.5 . (D) Limiting individual fuel usage and fuel type for a combustion source. (E) Limiting raw material throughput or sulfur content of raw materials, or both. (5) A modification that is not described under subsection (d)(12) or (d)(13) and is subject to a RACT, a NSPS, or a NESHAP, and the RACT, NSPS, or NESHAP is the most stringent applicable requirement, except for those modifications that would be subject to the provisions of 40 CFR 63, Subpart B Hazardous Air Pollutants: Regulations Governing Constructed or Reconstructed Major Sources*. As part of the application required under subsection (c), the applicant shall acknowledge the requirement to comply with the RACT, NSPS, or

NESHAP. (6) A change for which a source requests an emission limit to avoid 326 IAC 8- 1- 6

.

(h) Minor permit revision procedures are as follows: (1) Any person proposing to make a modification described in subsection (g) shall: (A) submit an application concerning the modification; and (B) include the information under subsection (c). (2) Except as provided in 326 IAC 2- 13 , the source may not begin construction on any emissions unit that is necessary to implement the modification until the commissioner has revised the permit. (3) Within forty-five (45) calendar days from receipt of an application for a minor permit revision, the commissioner shall do one (1) of the following: (A) Approve the minor permit revision request. (B) Deny the minor permit revision request. (C) Determine that the minor permit revision request would: (i) cause or contribute to a violation of the National Ambient Air Quality Standard (NAAQS) or prevention of significant deterioration (PSD) standards; (ii) allow for an increase in emissions greater than the thresholds in subsection (i); or (iii) not provide for compliance monitoring consistent with this rule; and should be processed as a significant permit revision. (4) The permit shall be revised by incorporating the minor permit revision into the permit. The commissioner shall do the following: (A) Make all changes necessary to assure compliance with this title and the CAA prior to attaching the amendment to the permit. (B) Notify the source upon attachment of the minor permit revision to the permit. Notwithstanding IC 13- 15- 5 , the permit revision shall be effective immediately.

(i) Significant permit revision procedures are as follows: (1) Significant permit revisions are those changes that are not subject to subsection (d) or (g) and include the following: (A) Any modification that would be subject to 326 IAC 2-2

, 326 IAC 2- 3 , or 326 IAC 2-4.1

. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 51(B) Any modification that results in the source needing to obtain a FESOP under 326 IAC 2- 8 or a Part 70

permit under 326 IAC 2- 7

. (C) A modification that is subject to 326 IAC 8- 1- 6

. (D) Any modification with a potential to emit lead at greater than or equal to one (1) ton per year. (E) Any modification with a potential to emit greater than or equal to twenty-five (25) tons per year of the following pollutants: (i) Particulate matter PM, or particulate matter with an aerodynamic diameter less than or equal to ten (10)

micrometers PM 10 , or direct PM 2.5 . (ii) Sulfur dioxide (SO 2). (iii) Nitrogen oxides (NO

x). (iv) VOC. (v) Hydrogen sulfide (H 2 S). (vi) Total reduced sulfur (TRS). (vii) Reduced sulfur compounds. (viii) Fluorides. (F) For a source of lead with a potential to emit greater than or equal to five (5) tons per year, a modification that would increase the potential to emit greater than or equal to six-tenths (0.6) ton per year. (G) Any modification with a potential to emit greater than or equal to ten (10) tons per year of a single HAP as defined under Section 112(b) of the CAA or twenty-five (25) tons per year of any combination of HAPs. (H) Any modification with a potential to emit greater than or equal to one hundred (100) tons per year of carbon monoxide (CO). (I) Any modification that removes or reduces compliance monitoring, testing, record keeping, reporting, or its frequency, unless the modification is a result of a change in applicability under subsection (d)(5). (2) The following shall apply to significant permit revisions: (A) Any person proposing to make a modification described in subdivision (1) shall: (i) submit an application concerning the modification; and (ii) include the information under subsection (c). (B) Except as provided in 326 IAC 2- 13 , the source may not begin construction on any emissions unit that is necessary to implement the modification until the commissioner has revised the permit. (C) The commissioner shall do the following: (i) Provide for public notice and comment in accordance with 326 IAC 2- 1.1- 6

. (ii) Approve or deny the significant permit revision as follows: (AA) Within one hundred twenty (120) calendar days from receipt of an application for a significant permit revision, except for a significant permit revision under subdivision (1)(A). (BB) Within two hundred seventy (270) calendar days from receipt of an application for a significant permit revision under subdivision (1)(A). (D) The permit shall be revised by incorporating the significant permit revision into the permit. The commissioner shall make any changes necessary to assure compliance with this title and the CAA prior to attaching the significant permit revision to the permit.

*These documents are 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2-6.1-6 ; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1017; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3106; filed May 21, 2002, 10:20 a.m.: 25 IR 3062; readopted filed Oct 22, 2004, 10:35 a.m.: 28 IR 797; errata filed Jul 23, 2007, 4:19 p.m.: 20070815-IR-326070466ACA; readopted filed Aug 25, 2010, 2:42 p.m.: 20100922-IR-326100394BFA; filed Feb 6, 2012, 2:54 p.m.: 20120307-IR-326090493FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 15. 326 IAC 2- 7- 1 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-7- 1 Definitions

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 11-2

Sec. 1. For purposes of this rule, the definition given for a term in this rule shall control in any conflict between Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 52326 IAC 1-2 and this rule. In addition to the definitions provided in IC 13- 11-2

, 326 IAC 1-2 , and 326 IAC 2- 1.1

,

the following definitions apply throughout this rule unless expressly stated otherwise or unless the context clearly implies otherwise: (1) "Acid rain program" means the national sulfur dioxide and nitrogen oxides air pollution control and emissions reduction program established in accordance with Title IV of the CAA, 40 CFR 72*, and 40 CFR 75* through 40 CFR 78*, 58 FR 3590*, and regulations implementing Sections 407 and 410 of the CAA. (2) "Actual emissions" means the actual rate of emissions in tons per year of any regulated pollutant emitted from a Part 70 source over the preceding calendar year or any other period determined by the commissioner to be representative of normal source operation. (3) "Affected source" shall have the meaning given to it in the regulations promulgated under Title IV of the

CAA. (4) "Affected states" means all states: (A) whose air quality may be affected and are contiguous to the state of Indiana; or (B) that are within fifty (50) miles of the permitted source. (5) "Affected unit" shall have the meaning given to it in the regulations promulgated under Title IV of the CAA. (6) "Applicable requirement" means all of the following as they apply to emissions units in a Part 70 source (including requirements that have been promulgated or approved by the U.S. EPA through rulemaking at the time of permit issuance but have future effective compliance dates): (A) Any standard or other requirement provided for in the applicable implementation plan approved or promulgated by the U.S. EPA through rulemaking under Title I of the CAA that implements the relevant requirements of the CAA, including any revisions to that plan promulgated in 40 CFR 52*. (B) Any term or condition of any preconstruction permits issued under regulations approved or promulgated through rulemaking under Title I, including Part C or D of the CAA. (C) Any standard or other requirement under Section 111 of the CAA, including Section 111(d) of the CAA. (D) Any standard or other requirement under Section 112 of the CAA, including any requirement concerning accident prevention under Section 112(r)(7) of the CAA. (E) Any standard or other requirement of the acid rain program under Title IV of the CAA or the regulations promulgated thereunder. (F) Any requirements established under Section 504(b) or 114(a)(3) of the CAA. (G) Any standard or other requirement under Section 126(a)(1) and 126(c) of the CAA. (H) Any standard or other requirement governing solid waste incineration under Section 129 of the CAA. (I) Any standard or other requirement for consumer and commercial products under Section 183(e) of the

CAA. (J) Any standard or other requirement for tank vessels under Section 183(f) of the CAA. (K) Any standard or other requirement of the Code of Federal Regulations promulgated to protect stratospheric ozone under Title VI of the CAA, unless the U.S. EPA has determined that the requirements need not be contained in a Part 70 permit. (L) Any national ambient air quality standard or increment or visibility requirement under Part C of Title I of the CAA, but only as it would apply to temporary sources permitted under Section 504(e) of the CAA. (7) "Area source" means any stationary source of HAPs that is not a major source. The term does not include motor vehicles or nonroad vehicles subject to regulation under Title II of the CAA. (8) "Clean Air Act" or "CAA" means the Clean Air Act, as amended (including the Clean Air Act Amendments of 1990 (P.L.101-549)), 42 U.S.C. 7401, et seq. (9) "Code of Federal Regulations" or "CFR", unless otherwise provided, has the same meaning as set forth in

326 IAC 1- 1- 3

. (10) "Designated representative" shall have the meaning given to it in Section 402(26) of the CAA and the regulations promulgated thereunder. (11) "Draft Part 70 permit" means the version of a Part 70 permit for which the commissioner offers public participation and notice to affected states under section 17 of this rule. (12) "Emergency" means any situation, including acts of God, arising from sudden and reasonably unforeseeable events beyond the reasonable control of the source that: (A) requires immediate corrective action to restore normal operation; and (B) causes the source to exceed an emission limit under a Part 70 permit due to unavoidable increases in emissions attributable to the emergency. The term shall not include noncompliance to the extent caused by improperly designed equipment, failure to implement an adequate preventive maintenance plan, careless or improper operation, or operator error. (13) "Emission limitation or standard" means any of the following as defined under the CAA: (A) A federally enforceable emission limitation or standard. (B) A standard of performance. (C) A means of emission limitation. An emission limitation or standard may be expressed in terms of the pollutant, expressed either as a specific Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 53quantity, rate, or concentration of emissions (for example, pounds of sulfur dioxide (SO 2) per hour, pounds of

sulfur dioxide (SO 2) per mmBtu, or kilograms of VOC per liter of applied coating solids) or as the relationship of uncontrolled to controlled emissions (for example, percent capture and destruction efficiency of VOC or percent reduction of SO 2). An emission limitation or standard may also be expressed either as a work practice process or other form of design, equipment operation, or operation and maintenance requirement. (14) "Emissions allowable under the Part 70 permit" means a federally enforceable Part 70 permit term or condition determined at issuance to be required by an applicable requirement that establishes an emissions limit (including a work practice standard) or a federally enforceable emissions cap that the source has assumed to avoid an applicable requirement to which the source would otherwise be subject. (15) "Emissions unit" means any part or activity of a stationary source that emits or has the potential to emit any regulated air pollutant or any pollutant listed under Section 112(b) of the CAA. The term is not meant to alter or affect the definition of unit for purposes of Title IV of the CAA. (16) "Federally enforceable state operating permit" or "FESOP" means a permit issued under 326 IAC 2- 8

. (17) "Final Part 70 permit" means the version of a Part 70 permit issued by the commissioner that has completed all review procedures required by sections 17 and 18 of this rule. (18) "Fugitive emissions" means emissions that could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. (19) "General Part 70 permit" means a Part 70 permit that is applicable to a class or category of sources or modifications thereto, whether or not under common ownership or control, that are subject to similar applicable requirements. (20) "Health-based emission limit" means any enforceable condition the sole purpose of which is to protect public health or welfare without regard to technical achievability, including, but not limited to, any requirement in a permit based on: (A) an emission standard for HAPs promulgated under 40 CFR 61*, including 326 IAC 14 ; (B) conditions to prevent significant deterioration of air quality established under 40 CFR 52.21*, including

326 IAC 2-2- 5 and 326 IAC 2-2- 6 but excluding conditions based on BACT; (C) limits relied upon in a formal attainment demonstration supporting a SIP approved by the U.S. EPA under Section 110(a)(2)(K) of the CAA, with the exception of limits based on RACT for sources of VOCs in areas designated attainment for ozone in accordance with the CAA; or (D) conditions established as residual risk standards under 42 U.S.C. 7412(f). (21) "Insignificant activity" has any of the meanings, subject to clauses (A) through (D), specified in clauses (E) through (J) as follows: (A) Detailed information concerning emissions from activities or equipment listed in clauses (E) through (J) is not required in a permit application submitted under this rule or 326 IAC 2- 8 ; however, additional emissions information must be provided upon request by the department. (B) Notwithstanding any other requirements in this rule, the applicant shall include all emissions sources and quantify emissions if needed to determine: (i) major source status; (ii) compliance with any applicable requirement; or (iii) the applicability of any applicable requirement. Identification of an activity or equipment as insignificant under this section does not preclude the inclusion of the activity or equipment in a compliance plan or protocol as appropriate. (C) Notwithstanding any other provision of this rule or 326 IAC 2- 6 , emissions from activities defined as insignificant in this subdivision or trivial in subdivision (42) need not be included in a source's annual emission statement required by 326 IAC 2- 6

. (D) A change in a source's insignificant or trivial activities or the addition of an insignificant activity or trivial activity shall not constitute a modification for purposes of sections 10.5 and 12 of this rule, if the new activity or modified activity: (i) meets the definition of insignificant activity of this subdivision or trivial activity of subdivision (42); (ii) has all applicable requirements and associated monitoring in the current permit; and (iii) is not a modification under any provision of Title I of the CAA. The department may request that the source update its list of insignificant activities as part of its annual compliance certification. (E) An emission unit or activity whose potential uncontrolled emissions meet the exemption levels specified

in 326 IAC 2- 1.1- 3 (e)(1) or the exemption levels specified in the following, whichever is lower: (i) For lead or lead compounds measured as elemental lead, the exemption level is six-tenths (0.6) ton per year or three and twenty-nine hundredths (3.29) pounds per day. (ii) For carbon monoxide (CO), the exemption limit is twenty-five (25) pounds per day. (iii) For sulfur dioxide, the exemption level is five (5) pounds per hour or twenty-five (25) pounds per day. (iv) For VOC, the exemption limit is three (3) pounds per hour or fifteen (15) pounds per day. (v) For nitrogen oxides (NO

x), the exemption limit is five (5) pounds per hour or twenty-five (25) pounds per Indiana Register

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(vi) For PM 10 or direct PM 2.5 , the exemption level is either five (5) pounds per hour or twenty-five (25) pounds per day. (F) For units with potential uncontrolled emissions of HAPs, that are not listed as insignificant in clauses (H) (G) through (L) (J) or defined as trivial in subdivision (42), an insignificant activity is any of the following: (i) Any unit, not regulated by a NESHAP, emitting greater than one (1) pound per day but less than five (5) pounds per day or one (1) ton per year of a single HAP. (ii) Any unit, not regulated by a NESHAP, emitting greater than one (1) pound per day but less than twelve and five-tenths (12.5) pounds per day or two and five-tenths (2.5) tons per year of any combination of

HAPs. The source shall provide a description of the insignificant activity, including identification of the HAPs emitted and any applicable requirements. A source may rely on MSDS sheets, product labels, other manufacturer's information, or other technical and scientific judgement for identification of HAPs. Insignificant activities that are part of a multistep process line shall be reported as such on the operating permit application, and the source shall include a description of the function and components of the process line on the operating permit application. Insignificant activities that perform equivalent functions shall be grouped, and the function and number of those units shall be included on the operating permit application. (G) Emissions from a laboratory as defined in this clause. As used in this clause, "laboratory" means a place or activity devoted to experimental study or teaching, or to the testing and analysis of drugs, chemicals, chemical compounds or other substances, or similar activities, provided that the activities described in this clause are conducted on a laboratory scale. Activities are conducted on a laboratory scale if the containers used for reactions, transfers, and other handling of substances are designed to be easily and safely manipulated by one (1) person. If a facility manufactures or produces products for profit in any quantity, it shall not be considered to be a laboratory under this clause. Support activities necessary to the operation of the laboratory are considered to be part of the laboratory. Support activities do not include the provision of power to the laboratory from sources that provide power to multiple projects or from sources that would otherwise require permitting, such as boilers that provide power to an entire facility. (H) Emissions from research and development activities as defined in this clause. As used in this clause, "research and development activities" means activities conducted under close supervision of technically trained personnel that are not engaged in the manufacture of products for sale, exchange for commercial profit, or distribution, except in a de minimis manner and the primary purpose of which is to: (i) test more efficient production processes; (ii) test methods for preventing or reducing adverse environmental impacts; or (iii) conduct research and development into new processes and products. Support activities necessary to the research and development activities are considered to be part of the research and development activities. Support activities do not include the provision of power to the research and development activities from sources that provide power to multiple projects or from sources that would otherwise require permitting, such as boilers that provide power to a source or solid waste disposal units,

such as incinerators. (I) Emissions from educational and teaching activities as defined in this clause. As used in this clause, "educational and teaching activities" means activities conducted at public and nonpublic schools and postsecondary educational institutions for educational, vocational, agricultural, occupational, employment, or technical training purposes provided the activities do not include the production of an intermediate or final product for sale or exchange for commercial profit or distribution. Support activities necessary to the educational and teaching activities are considered to be part of the educational and teaching activities. Support activities do not include the provision of power to the educational and teaching activities from sources that provide power to multiple projects or from sources that would otherwise require permitting, such as boilers that provide power to a source or solid waste disposal units, such as incinerators. (J) Any of the following listed activities: (i) Combustion related activities, as follows: (AA) Space heaters, process heaters, heat treat furnaces, or boilers using the following fuels: (aa) Natural gas-fired combustion sources with heat input equal to or less than ten million (10,000,000) British thermal units per hour. (bb) Propane or liquefied petroleum gas or butane-fired combustion sources with heat input equal to or less than six million (6,000,000) British thermal units per hour. (cc) Fuel oil-fired combustion sources with heat input equal to or less than two million (2,000,000) British thermal units per hour and firing fuel containing equal to or less than five-tenths percent (0.5%) sulfur by weight. (dd) Wood-fired combustion sources with heat input equal to or less than one million (1,000,000) British thermal units per hour and not burning treated wood or chemically contaminated wood. (BB) Equipment powered by diesel fuel fired or natural gas fired internal combustion engines of capacity Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 55equal to or less than five hundred thousand (500,000) British thermal units per hour except where total

capacity of equipment operated by one (1) stationary source as defined by subdivision (38) exceeds two million (2,000,000) British thermal units per hour. (CC) Combustion source flame safety purging on start-up. (ii) Fuel dispensing activities, as follows: (AA) A gasoline fuel transfer dispensing operation handling less than or equal to one thousand three hundred (1,300) gallons per day and filling storage tanks having a capacity equal to or less than ten thousand five hundred (10,500) gallons. Such storage tanks may be in a fixed location or on mobile equipment. (BB) A petroleum fuel other than gasoline dispensing facility, having a storage tank capacity less than or equal to ten thousand five hundred (10,500) gallons, and dispensing three thousand five hundred (3,500) gallons per day or less. (iii) The following VOC and HAP storage containers: (AA) Storage tanks with capacity less than or equal to one thousand (1,000) gallons and annual throughputs equal to or less than twelve thousand (12,000) gallons. (BB) Vessels storing the following: (aa) Lubricating oils. (bb) Hydraulic oils. (cc) Machining oils. (dd) Machining fluids. (iv) Refractory storage not requiring air pollution control equipment. (v) Equipment used exclusively for the following: (AA) Packaging the following: (aa) Lubricants. (bb) Greases. (BB) Filling drums, pails, or other packaging containers with the following: (aa) Lubricating oils. (bb) Waxes. (cc) Greases. (vi) Production related activities, including the following: (AA) Application of: (aa) oils; (bb) greases; (cc) lubricants; and (dd) nonvolatile material; as temporary protective coatings. (BB) Machining where an aqueous cutting coolant continuously floods the machining interface. (CC) Degreasing operations that do not exceed one hundred forty-five (145) gallons per twelve (12) months, except if subject to 326 IAC 20- 6

. (DD) Cleaners and solvents characterized as having a vapor pressure equal to or less than: (aa) two (2.0) kilo Pascals (fifteen (15) millimeters of mercury or three-tenths (0.3) pound per square inch) measured at thirty-eight (38) degrees Centigrade (one hundred (100) degrees Fahrenheit); or (bb) seven-tenths (0.7) kilo Pascal (five (5) millimeters of mercury or one-tenth (0.1) pound per square inch) measured at twenty (20) degrees Centigrade (sixty-eight (68) degrees Fahrenheit); the use of which, for all cleaners and solvents combined, does not exceed one hundred forty-five (145) gallons per twelve (12) months. (EE) The following equipment related to manufacturing activities not resulting in the emission of HAPs: (aa) Brazing. (bb) Cutting torches. (cc) Soldering. (dd) Welding. (FF) Closed loop heating and cooling systems. (GG) Infrared cure equipment. (HH) Exposure chambers (towers or columns), for curing of ultraviolet inks and ultraviolet coatings where heat is the intended discharge. (II) Any of the following structural steel and bridge fabrication activities: (aa) Cutting two hundred thousand (200,000) linear feet or less of one (1) inch plate or equivalent per

year. (bb) Using eighty (80) tons or less of welding consumables per year. (vii) Activities associated with the following recovery systems: (AA) Rolling oil recovery systems. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 56(BB) Ground water oil recovery wells.

(viii) Solvent recycling systems with batch capacity less than or equal to one hundred (100) gallons. (ix) Water based activities, including the following: (AA) Activities associated with the treatment of wastewater streams with an oil and grease content less than or equal to one percent (1%) by volume. (BB) Water run-off ponds for petroleum coke-cutting and coke storage piles. (CC) Activities associated with the transportation and treatment of sanitary sewage, provided discharge to the treatment plant is under the control of the owner or operator, that is, an on-site sewage treatment facility. This does not include sanitary sludge incineration. (DD) Any operation using aqueous solutions containing less than or equal to one percent (1%) by weight of VOCs excluding HAPs. (EE) Water based adhesives that are less than or equal to five percent (5%) by volume of VOCs excluding HAPs. (FF) Noncontact cooling tower systems with either of the following: (aa) Natural draft cooling towers not regulated under a NESHAP. (bb) Forced and induced draft cooling tower systems not regulated under a NESHAP. (GG) Quenching operations used with heat treating processes. Oil, grease, or VOC content shall be determined by a test method acceptable to the department and the

U.S. EPA. (x) Repair activities, including the following: (AA) Replacement or repair of electrostatic precipitators, bags in baghouses, and filters in other air filtration equipment. (BB) Heat exchanger cleaning and repair. (CC) Process vessel degassing and cleaning to prepare for internal repairs. (xi) Trimmers that: (AA) do not produce fugitive emissions; and (BB) are equipped with a dust collection or trim material recovery device, such as a bag filter or cyclone. (xii) Stockpiled soils from soil remediation activities that are covered and waiting transport for disposal. (xiii) Paved and unpaved roads and parking lots with public access. (xiv) Conveyors as follows: (AA) Covered conveyors for solid raw material, including the following: (aa) Coal or coke conveying of less than or equal to three hundred sixty (360) tons per day. (bb) Limestone conveying of less than or equal to seven thousand two hundred (7,200) tons per day for sources other than mineral processing plants constructed after August 31, 1983. (BB) Uncovered coal or coke conveying of less than or equal to one hundred twenty (120) tons per day. (CC) Underground conveyors. (DD) Enclosed systems for conveying plastic raw material and plastic finished goods. (xv) Coal bunker and coal scale exhausts and associated dust collector vents. (xvi) Asbestos abatement projects regulated by 326 IAC 14- 10

. (xvii) Routine maintenance and repair of buildings, structures, or vehicles at the source where air emissions from those activities would not be associated with any production process, including the following: (AA) Purging of gas lines. (BB) Purging of vessels. (xviii) Flue gas conditioning systems and associated chemicals, such as the following: (AA) Sodium sulfate. (BB) Ammonia. (CC) Sulfur trioxide. (xix) Equipment used to collect any material that might be released during a malfunction, process upset, or spill cleanup, including the following: (AA) Catch tanks. (BB) Temporary liquid separators. (CC) Tanks. (DD) Fluid handling equipment. (xx) Blowdown for the following: (AA) Sight glass. (BB) Boiler. (CC) Cooling tower. (DD) Compressors. (EE) Pumps. (xxi) Furnaces used for melting metals other than beryllium with a brim full capacity equal to or less than Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 57four hundred fifty (450) cubic inches by volume.

(xxii) Activities associated with emergencies, including the following: (AA) On-site fire training approved by the department. (BB) Emergency generators as follows: (aa) Gasoline generators not exceeding one hundred ten (110) horsepower. (bb) Diesel generators not exceeding one thousand six hundred (1,600) horsepower. (cc) Natural gas turbines or reciprocating engines not exceeding sixteen thousand (16,000) horsepower. (CC) Stationary fire pump engines. (xxiii) Grinding and machining operations controlled with fabric filters, scrubbers, mist collectors, wet collectors, and electrostatic precipitators with a design grain loading of less than or equal to three one-hundredths (0.03) grains per actual cubic foot and a gas flow rate less than or equal to four thousand (4,000) actual cubic feet per minute, including the following: (AA) Deburring. (BB) Buffing. (CC) Polishing. (DD) Abrasive blasting. (EE) Pneumatic conveying. (FF) Woodworking operations. (xxiv) Purge double block and bleed valves. (xxv) Filter or coalescer media changeout. (xxvi) Vents from ash transport systems not operated at positive pressure. (xxvii) Mold release agents using low volatile products (vapor pressure less than or equal to two (2) kilo Pascals measured at thirty-eight (38) degrees Centigrade). (xxviii) Farm operations, except concentrated animal feeding operations as defined in 40 CFR 122.23. (xxix) Woodworking equipment controlled by a baghouse provided that the following criteria are met: (AA) The baghouse does not exhaust to the atmosphere greater than one hundred twenty-five thousand (125,000) cubic feet per minute. (BB) The baghouse does not emit particulate matter with a diameter less than ten (10) microns PM 10 in excess of three-thousandths (0.003) grain per dry standard cubic feet of outlet air. (CC) Opacity from the baghouse does not exceed ten percent (10%). (DD) The baghouse is in operation at all times that the woodworking equipment is in use. (EE) Visible emissions from the baghouse are observed daily using procedures in accordance with 40 CFR 60, Appendix A, Method 22* and normal or abnormal emissions are recorded. In the event abnormal emissions are observed for greater than six (6) minutes in duration, the following shall occur: (aa) The baghouse shall be inspected. (bb) Corrective actions, such as replacing or reseating bags, are initiated, when necessary. (FF) The baghouse is inspected quarterly when vented to the atmosphere. (GG) The owner or operator keeps the following records: (aa) Records documenting the date when the baghouse redirected indoors or to the atmosphere. (bb) Quarterly inspection reports, when vented to the atmosphere. (cc) Visible observation reports. (dd) Records of corrective actions. (xxx) Woodworking equipment controlled by a baghouse provided that the following criteria are met: (AA) The baghouse does not exhaust to the atmosphere greater than forty thousand (40,000) cubic feet per minute. (BB) The baghouse does not emit particulate matter with a diameter less than ten (10) microns PM 10 in excess of one-hundredth (0.01) grain per dry standard cubic feet of outlet air. (CC) Opacity from the baghouse does not exceed ten percent (10%). (DD) The baghouse is in operation at all times that the woodworking equipment is in use. (EE) Visible emissions from the baghouse are observed daily using procedures in accordance with 40 CFR 60, Appendix A, Method 22* and normal or abnormal emissions are recorded. In the event abnormal emissions are observed for greater than six (6) minutes in duration, the following shall occur: (aa) The baghouse shall be inspected. (bb) Corrective actions, such as replacing or reseating bags, are initiated, when necessary. (FF) The baghouse is inspected quarterly when vented to the atmosphere. (GG) The owner or operator keeps the following records: (aa) Records documenting the date when the baghouse redirected indoors or to the atmosphere. (bb) Quarterly inspection reports, when vented to the atmosphere. (cc) Visible observation reports. (dd) Records of corrective actions. (22) "Major source" means any stationary source or any group of stationary sources as described in this Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 58subdivision. For purposes of clauses (B) and (C), the term shall include any group of stationary sources that

are located on one (1) or more contiguous or adjacent properties and are under common control of the same person (or persons under common control) belonging to a single major industrial grouping. In addition, for the purposes of defining major source in clause (B) or (C), a stationary source or group of stationary sources shall be considered part of a single industrial grouping if all of the pollutant emitting activities at the source or group of stationary sources on contiguous or adjacent properties belong to the same major group (that is, all have the same two (2) digit code) as described in the Standard Industrial Classification Manual, 1987*. For purposes of clauses (B) and (C), any stationary source (or group of stationary sources) that supports another source, where both are under common control of the same person (or persons under common control) and are located on contiguous or adjacent properties, shall be considered a support facility and part of the same source regardless of the two (2) digit SIC code for that support facility. A stationary source (or group of stationary sources) is considered a support facility to a source if at least fifty percent (50%) of the output of the support facility is dedicated to the source. The term includes the following: (A) A major source under Section 112 of the CAA, which is defined as follows: (i) For pollutants other than radionuclides, any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit, in the aggregate: (AA) ten (10) tons per year (tpy) or more of any HAP that has been listed in Section 112(b) of the CAA; (BB) twenty-five (25) tpy or more of any combination of such HAPs; or (CC) such lesser quantity as the U.S. EPA may establish by rule. (ii) Notwithstanding item (i): (AA) emissions from any oil or gas exploration or production well (with its associated equipment) and emissions from any pipeline compressor or pump station shall not be aggregated with emissions from other similar units, whether or not the units are in a contiguous area or under common control, to determine whether the units or stations are major sources; and (BB) research and development activities may be considered separately for purposes of determining whether a major source is present and need not be aggregated with collocated stationary sources unless the research and development activities contribute to the product produced or service rendered by the

collocated sources in a more than de minimis manner. (iii) For radionuclides, major source shall have the meaning specified by the U.S. EPA by rule. (B) A major stationary source of air pollutants, as defined in Section 302 of the CAA, that directly emits or has the potential to emit, one hundred (100) tpy or more of any air pollutant subject to regulation (including any major source of fugitive emissions of any such pollutant, as determined by the U.S. EPA by rule). The fugitive emissions of a stationary source shall not be considered in determining whether it is a major stationary source for the purposes of Section 302(j) of the CAA unless the source belongs to one (1) of the following categories of stationary sources: (i) Coal cleaning plants (with thermal dryers). (ii) Kraft pulp mills. (iii) Portland cement plants. (iv) Primary zinc smelters. (v) Iron and steel mills. (vi) Primary aluminum ore reduction plants. (vii) Primary copper smelters. (viii) Municipal incinerators, or combinations of municipal incinerators, capable of charging more than fifty (50) tons of refuse per day. (ix) Hydrofluoric, sulfuric, or nitric acid plants. (x) Petroleum refineries. (xi) Lime plants. (xii) Phosphate rock processing plants. (xiii) Coke oven batteries. (xiv) Sulfur recovery plants. (xv) Carbon black plants (furnace process). (xvi) Primary lead smelters. (xvii) Fuel conversion plants. (xviii) Sintering plants. (xix) Secondary metal production plants. (xx) Chemical process plants, excluding ethanol production facilities that produce ethanol by natural fermentation included in North American Industry Classification System (NAICS) codes 325193 for Ethyl Alcohol Manufacturing or 312140 for Distilleries, as revised in 2007.** (xxi) Fossil fuel boilers (or combination thereof) totaling more than two hundred fifty million (250,000,000) British thermal units per hour heat input. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 59(xxii) Petroleum storage and transfer units with a total storage capacity exceeding three hundred thousand

(300,000) barrels. (xxiii) Taconite ore processing plants. (xxiv) Glass fiber processing plants. (xxv) Charcoal production plants. (xxvi) Fossil fuel fired steam electric plants of more than two hundred fifty million (250,000,000) British thermal units per hour heat input. (xxvii) Any other stationary source category regulated under Section 111 or 112 of the CAA and for which the U.S. EPA has made an affirmative determination under Section 302(j) of the CAA. (C) A major stationary source as defined in Part D of Title I of the CAA, including the following: (i) For ozone nonattainment areas, sources with the potential to emit: (AA) one hundred (100) tpy or more of VOC or oxides of nitrogen oxides in areas classified as marginal or moderate; (BB) fifty (50) tpy or more of VOC or oxides of nitrogen in areas classified as serious; (CC) twenty-five (25) tpy or more of VOC or oxides of nitrogen oxides in areas classified as severe; or (DD) ten (10) tpy or more of VOC or oxides of nitrogen oxides in areas classified as extreme; except that the references in this item to one hundred (100), fifty (50), twenty-five (25), and ten (10) tpy of nitrogen oxides shall not apply with respect to any source for which the U.S. EPA has made a finding, under Section 182(f)(1) or 182(f)(2) of the CAA, that requirements under Section 182(f) of the CAA do not apply. (ii) For ozone transport regions established under Section 184 of the CAA, sources with the potential to emit fifty (50) or more tpy of VOC. (iii) For carbon monoxide nonattainment areas: (AA) that are classified as serious; and (BB) in which stationary sources contribute significantly to carbon monoxide levels as determined under rules issued by the U.S. EPA; sources with the potential to emit fifty (50) tpy or more of carbon monoxide. (iv) For particulate matter PM 10 nonattainment areas classified as serious, sources with the potential to emit seventy (70) tpy or more of PM 10 . (23) "Part 70 permit" or "permit" means any Part 70 permit or group of Part 70 permits authorizing the operation of a Part 70 source that is issued, renewed, amended, or revised under this rule. (24) "Part 70 permit modification" means a revision to a Part 70 permit that meets the requirements of section

12 of this rule. (25) "Part 70 permit program costs" means all reasonable (direct and indirect) costs required to develop and administer a Part 70 permit program, as set forth in section 19 of this rule (whether the costs are incurred by the commissioner or other state or local agencies that do not issue Part 70 permits directly, but that support Part 70 permit issuance or administration). (26) "Part 70 permit revision" means any Part 70 permit modification or administrative Part 70 permit

amendment. (27) "Part 70 program" means the operating permit program established by this rule and approved by the U.S.

EPA under 40 CFR 70*. (28) "Part 70 source" means any source subject to the permitting requirements as provided in section 2 of this

rule. (29) "Part 70 source modification" means a modification to a Part 70 source that meets the requirements of

section 10.5 of this rule. (30) "Potential to emit" means the maximum capacity of a stationary source to emit any air pollutant under its physical and operational design. Any physical or operational limitation on the capacity of a source to emit an air pollutant, including air pollution control equipment and restrictions on hours of operation or type or amount of material combusted, stored, or processed shall be treated as part of its design if the limitation is enforceable by the U.S. EPA. This term does not alter or affect the use of this term for any other purpose under the CAA, (or the term "capacity factor" as used in Title IV of the CAA) (or the regulations promulgated thereunder). (31) "Proposed Part 70 permit" means the version of a Part 70 permit that the commissioner proposes to issue and forwards to the U.S. EPA for review in compliance with section 18 of this rule. (32) "Regulated air pollutant" means any of the following: (A) Nitrogen oxides or any VOC. (B) Any pollutant for which a national ambient air quality standard has been promulgated. (C) Any pollutant that is subject to any standard promulgated under Section 111 of the CAA. (D) Any Class I or Class II substance subject to a standard promulgated under or established by Title VI of

the CAA. (E) Any pollutant subject to a standard promulgated under Section 112 of the CAA or other requirements established under Section 112 of the CAA, including Section 112(g), 112(j), and 112(r) of the CAA, including Indiana Register

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(i) Any pollutant subject to requirements under Section 112(j) of the CAA. If the U.S. EPA fails to promulgate a standard by the date established under Section 112(e) of the CAA, any pollutant for which a subject source would be major shall be considered to be regulated on the date eighteen (18) months after the applicable date established under Section 112(e) of the CAA. (ii) Any pollutant for which the requirements of Section 112(g)(2) of the CAA have been met, but only with respect to the individual source subject to Section 112(g)(2) of the CAA. The term does not include particulate matter greater than ten (10) micrometers (μm). (33) "Regulated pollutant that is used only for purposes of section 19 of this rule" means any regulated air pollutant, except the following: (A) Carbon monoxide. (B) Any pollutant that is a regulated air pollutant solely because it is a Class I or Class II substance subject to a standard promulgated under or established by Title VI of the CAA. (C) Any pollutant that is a regulated air pollutant solely because it is subject to a standard or regulation under Section 112(r) of the CAA. (D) Any pollutant emitted by an insignificant or trivial activity as defined in this rule. (34) "Renewal" means the process by which a Part 70 permit is reissued at the end of its term. (35) "Responsible official" means the following: (A) For a corporation: (i) a president; (ii) a secretary; (iii) a treasurer; (iv) a vice president of the corporation in charge of a principal business function; (v) any other person who performs similar policy or decision making functions for the corporation; or (vi) a duly authorized representative of any person listed in this clause if the representative is responsible for the overall operation of one (1) or more manufacturing, production, or operating facilities applying for or subject to a Part 70 permit and either the: (AA) facilities employ more than two hundred fifty (250) persons or have gross annual sales or expenditures exceeding twenty-five million dollars ($25,000,000) (in second quarter 1980 dollars); or (BB) delegation of authority to the representative is approved in advance by the commissioner. (B) For a partnership or sole proprietorship, a general partner or the proprietor, respectively. (C) For a municipality, state, federal, or other public agency, either a principal executive officer or ranking elected official. As used in this clause, "principal executive officer of a federal agency" includes the chief executive officer having responsibility for the overall operations of a principal geographic unit of the agency, for example, a regional administrator of the U.S. EPA. (D) For affected sources: (i) the designated representative for actions, standards, requirements, or prohibitions under Title IV of the CAA or the regulations promulgated thereunder; and (ii) the designated representative for any other purposes under a Part 70 permit. (36) "Risk management plan" means a plan specified by Section 112(r) of the CAA. (37) "Section 502(b)(10) changes" means changes that contravene an express Part 70 permit term. Such changes do not include changes that would violate applicable requirements or contravene federally enforceable Part 70 permit terms and conditions that are monitoring (including test methods), record keeping, reporting, or compliance certification requirements. (38) "State" means any nonfederal permitting authority, including any local agency, interstate association, or statewide program. The term shall have its conventional meaning where the meaning is clear from the context. For purposes of the acid rain program, the term shall be limited to authorities within the forty-eight (48) contiguous states and the District of Columbia as provided in Section 402(14) of the CAA. (39) "Stationary source" means any building, structure, facility, or installation that emits or may emit any regulated air pollutant or any pollutant listed under Section 112(b) of the CAA. (40) "Subject to regulation" means, for any air pollutant, that the pollutant is subject to either a provision in the CAA, or a nationally applicable regulation codified by the U.S. EPA in 40 CFR, Chapter I, Subchapter C, that requires actual control of the quantity of emissions of that pollutant, and that the control requirement has taken effect and is operative to control, limit, or restrict the quantity of emissions of that pollutant released from that regulated activity, except as follows: (A) Greenhouse gases (GHGs), the air pollutant defined in 40 CFR 86.1818-12(a)*, as added by 75 FR 25686 (May 7, 2010), as the aggregate group of six (6) greenhouse gases shall not be subject to regulation unless, as of July 1, 2011, the GHG emissions are at a stationary source emitting or having the potential to emit one hundred thousand (100,000) tpy CO 2 equivalent emissions (CO 2 e) or more. Pollutant GHGs includes the following: (i) Carbon dioxide. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 61(ii) Nitrous oxide.

(iii) Methane. (iv) Hydrofluorocarbons. (v) Perfluorocarbons. (vi) Sulfur hexafluoride. (B) "Tons per year (tpy) CO 2 equivalent emissions (CO 2 e)" shall represent an amount of GHGs emitted and

shall be calculated as follows: (i) Multiply the mass amount of emissions in tpy for each of the six (6) greenhouse gases in the pollutant GHGs by the gas's associated global warming potential published in 40 CFR 98, Subpart A, Table A-1 (Global Warming Potentials)*, as added by 74 FR 56395 (October 30, 2009). (ii) Sum the resultant value from item (i) for each gas to compute a tpy CO 2 e. (iii) Prior to July 21, 2014, the mass of the greenhouse gas carbon dioxide shall not include carbon dioxide emissions resulting from the combustion or decomposition of nonfossilized and biodegradable organic material originating from plants, animals, or microorganisms (including products, byproducts, residues, and waste from agriculture, forestry, and related industries as well as the nonfossilized and biodegradable organic fractions of industrial and municipal wastes, including gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material). (41) "Technology-based emission limit" means any enforceable condition that is derived solely or in part from the capabilities of man-made equipment or processes, including, but not limited to, any requirement in a permit

based on: (A) RACT; (B) BACT; (C) maximum achievable control technology (MACT); (D) lowest achievable emissions reduction (LAER); (E) generally available control technology (GACT); (F) best available retrofit technology (BART); (G) any manufacturers' specifications; or (H) the sources' physical potential to emit; unless the applicable requirement was relied upon in a formal attainment demonstration supporting a SIP approved by the U.S. EPA under Section 110(a)(2)(K) of the CAA. (42) "Trivial activity" has any of the following meanings, subject to clauses (A) and (B), specified in clauses (C) through (S), as follows: (A) A change in a source's trivial activities or the addition of a trivial activity shall not constitute a modification for purposes of section 12 of this rule, if the new activity or modified activity: (i) meets the definition of trivial activity of this subdivision; (ii) has all applicable requirements and associated monitoring in the current permit; and (iii) is not a modification under any provision of Title I of the CAA. (B) Trivial activities do not need to be included in a permit application required under this rule or 326 IAC 2-

8 , provided that the applicant documents applicable requirements and compliance status as required by section 4 of this rule. Upon request, the applicant shall submit any information necessary to fulfill the requirements of this rule or 326 IAC 2- 8

. (C) Any activity or emission unit: (i) not regulated by a NESHAP, with potential uncontrolled emissions that are equal to or less than one (1) pound per day on an emission unit basis for any single HAP or combination of HAPs; and (ii) for which the potential uncontrolled emissions meet the exemption levels specified in the following: (AA) For lead or lead compounds measured as elemental lead, potential uncontrolled emissions that are equal to or less than one (1) pound per day. (BB) For carbon monoxide (CO), potential uncontrolled emissions that are equal to or less than one (1) pound per day. (CC) For sulfur dioxide, potential uncontrolled emissions that are equal to or less than one (1) pound per day. (DD) For VOC, potential uncontrolled emissions that are equal to or less than one (1) pound per day. (EE) For nitrogen oxides (NO

x), potential uncontrolled emissions that are equal to or less than one (1) pound per day. (FF) For particulate matter with an aerodynamic diameter less than or equal to ten (10) micrometers PM 10 or direct PM 2.5 , potential uncontrolled emissions that are equal to or less than one (1) pound per day. (D) Water related activities, including the following: (i) Production of hot water for on-site personal use not related to any industrial or production process. (ii) Water treatment activities used to provide potable and process water for the plant, excluding any

activities associated with wastewater treatment. Indiana Register

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(iv) Cooling ponds. (v) Laundry operations using only water solutions of bleach or detergents. (vi) Demineralized water tanks and demineralizer vents. (vii) Boiler water treatment operations, not including cooling towers. (viii) Oxygen scavenging (deaeration) of water. (ix) Steam cleaning operations and steam sterilizers. (x) Pressure washing of equipment. (xi) Water jet cutting operations. (E) Combustion activities, including the following: (i) Portable electrical generators that can be moved by hand from one (1) location to another. As used in this item, "moved by hand" means that it can be moved without the assistance of any motorized or nonmotorized vehicle, conveyance, or device. (ii) Combustion emissions from propulsion of mobile sources. (iii) Fuel use related to food preparation for on-site consumption. (iv) Tobacco smoking rooms and areas. (v) Blacksmith forges. (vi) Indoor and outdoor kerosene heaters. (F) Activities related to ventilation, venting equipment, and refrigeration, including the following: (i) Ventilation exhaust, central chiller water systems, refrigeration, and air conditioning equipment, not related to any industrial or production process, including natural draft hoods or ventilating systems that do not remove air pollutants. (ii) Stack and vents from plumbing traps used to prevent the discharge of sewer gases, handling domestic sewage only, excluding those at wastewater treatment plants or those handling any industrial waste. (iii) Vents from continuous emissions monitors and other analyzers. (iv) Natural gas pressure regulator vents, excluding venting at oil and gas production facilities. (v) Air vents from air compressors. (vi) Vents for air cooling of electric motors provided the air does not commingle with regulated air pollutants. (vii) Vents from equipment used to air blow water from cooled plastics strands or sheets. (G) Activities related to routine fabrication, maintenance, and repair of buildings, structures, equipment, or vehicles at the source where air emissions from those activities would not be associated with any commercial production process, including the following: (i) Activities associated with the repair and maintenance of paved and unpaved roads, including paving or sealing, or both, of parking lots and roadways. (ii) Painting, including interior and exterior painting of buildings, and solvent use excluding degreasing operations utilizing halogenated organic solvents. (iii) Brazing, soldering, or welding operations and associated equipment. (iv) Portable blast-cleaning equipment with enclosures. (v) Blast-cleaning equipment using water as the suspension agent and associated equipment. (vi) Batteries and battery charging stations except at battery manufacturing plants. (vii) Lubrication, including the following: (AA) Hand-held spray can lubrication. (BB) Dipping metal parts into lubricating oil. (CC) Manual or automated addition of cutting oil in machining operations. (viii) Nonasbestos insulation installation or removal. (ix) Tarring, retarring, and repair of building roofs. (x) Bead blasting of heater tubes. (xi) Instrument air dryer and filter maintenance. (xii) Manual tank gauging. (xiii) Open tumblers associated with deburring operations in maintenance shops. (H) Activities performed using hand-held equipment, including the following: (i) Application of hot melt adhesives with no VOC in the adhesive formulation. (ii) Buffing. (iii) Carving. (iv) Cutting, excluding cutting torches. (v) Drilling. (vi) Grinding. (vii) Machining wood, metal, or plastic. (viii) Polishing. (ix) Routing. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 63(x) Sanding.

(xi) Sawing. (xii) Surface grinding. (xiii) Turning wood, metal, or plastic. (I) Housekeeping and janitorial activities and supplies, including the following: (i) Vacuum cleaning systems used exclusively for housekeeping or custodial activities, or both. (ii) Steam cleaning activities. (iii) Restrooms and associated cleanup operations and supplies. (iv) Alkaline or phosphate cleaners and associated equipment. (v) Mobile floor sweepers and floor scrubbers. (vi) Pest control fumigation. (J) Office related activities, including the following: (i) Office supplies and equipment. (ii) Photocopying equipment and associated supplies. (iii) Paper shredding. (iv) Blueprint machines, photographic equipment, and associated supplies. (K) Lawn care and landscape maintenance activities and equipment, including the storage, spraying, or application of insecticides, pesticides, and herbicides. (L) Storage equipment and activities, including the following: (i) Pressurized storage tanks and associated piping for the following: (AA) Acetylene. (BB) Anhydrous ammonia. (CC) Carbon monoxide. (DD) Chlorine. (EE) Inorganic compounds. (FF) Liquid petroleum gas (LPG). (GG) Liquid natural gas (LNG). (HH) Natural gas. (II) Nitrogen dioxide. (JJ) Sulfur dioxide. (ii) Storage tanks, vessels, and containers holding or storing liquid substances that do not contain any VOC

or HAP. (iii) Storage tanks, reservoirs, and pumping and handling equipment of any size containing: (AA) soap; (BB) vegetable oil; (CC) grease; (DD) wax; (EE) animal fat; and (FF) nonvolatile aqueous salt solutions; provided appropriate lids and covers are utilized. (iv) Storage of drums containing maintenance raw materials. (v) Storage of the following: (AA) Castings. (BB) Lance rods. (CC) Any non-HAP containing material in solid form stored in a sealed or covered container. (vi) Portable containers used for the collection, storage, or disposal of materials provided the container capacity is equal to or less than forty-six hundredths (0.46) cubic meters and the container is closed, except when the material is added or removed. (M) Emergency and standby equipment, including the following: (i) Emergency (backup) electrical generators at residential locations, such as dormitories, prisons, and hospitals. (ii) Safety and emergency equipment except engine driven fire pumps, including fire suppression systems and emergency road flares. (iii) Process safety relief devices installed solely for the purpose of minimizing injury to persons or damage to equipment that could result from abnormal process operating conditions, including the following: (AA) Explosion relief vents, diaphragms, or panels. (BB) Rupture discs. (CC) Safety relief valves. (iv) Activities and equipment associated with on-site medical care not otherwise specifically regulated. (v) Vacuum-producing devices for the purpose of removing potential accidental releases. (N) Sampling and testing equipment and activities, including the following: Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 64(i) Equipment used for quality control/assurance or inspection purposes, including sampling equipment

used to withdraw materials for analysis. (ii) Hydraulic and hydrostatic testing equipment. (iii) Ground water monitoring wells and associated sample collection equipment. (iv) Environmental chambers not using HAP gases. (v) Shock chambers. (vi) Humidity chambers. (vii) Solar simulators. (viii) Sampling activities, including the following: (AA) Sampling of waste. (BB) Glove box sampling, charging, and packaging. (ix) Instrument air dryers and distribution. (O) Use of consumer products and equipment where the product or equipment is: (i) used at a source in the same manner as normal consumer use; and (ii) not associated with any production process. (P) Equipment and activities related to the handling, treating, and processing of animals, including the following: (i) Equipment used exclusively to slaughter animals, but not including the following: (AA) Rendering cookers. (BB) Boilers. (CC) Heating plants. (DD) Incinerators. (EE) Electrical power generating equipment. (ii) Veterinary operating rooms. (Q) Activities generating limited amounts of fugitive dust, including the following: (i) Fugitive emissions related to movement of passenger vehicles, provided the emissions are not counted for applicability purposes under subdivision (22)(B), and any required fugitive dust control plan or its equivalent is submitted. (ii) Soil boring. (iii) Road salting and sanding. (R) Activities associated with production, including the following: (i) Closed, nonvented tumblers used for cleaning or deburring metal products without abrasive blasting. (ii) Electrical resistance welding. (iii) CO 2 lasers, used only on metals and other materials that do not emit HAPs in the process. (iv) Laser trimmers that: (AA) do not produce fugitive emissions; and (BB) are equipped with a dust collection device, such as a bag filter, cyclone, or equivalent device. (v) Application equipment for hot melt adhesives with no VOC in the adhesive formulation. (vi) Drop hammers or hydraulic presses for forging or metalworking. (vii) Air compressors and pneumatically operated equipment, including hand tools. (viii) Compressor or pump lubrication and seal oil systems. (ix) Equipment used to mix and package: (AA) soaps; (BB) vegetable oil; (CC) grease; (DD) animal fat; and (EE) nonvolatile aqueous salt solutions; provided appropriate lids and covers are utilized. (x) Equipment for washing or drying fabricated glass or metal products, if no: (AA) VOCs or HAPs are used in the process; and (BB) gas, oil, or solid fuel is burned. (xi) Handling of solid steel, including coils and slabs, excluding scrap burning, scarfing, and charging into steelmaking furnaces and vessels. (S) Miscellaneous equipment, but not emissions associated with the process for which the equipment is used, and activities, including the following: (i) Equipment used for surface coating, painting, dipping, or spraying operation, except those that will emit

VOCs or HAPs. (ii) Condensate drains for natural gas and landfill gas. (iii) Electric or steam heated drying ovens and autoclaves, including only the heating emissions and not any associated process emissions. (iv) Salt baths using nonvolatile salts, including caustic solutions that do not result in emissions of any Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 65regulated air pollutants.

(v) Ozone generators. (vi) Portable dust collectors. (vii) Scrubber systems circulating water based solutions of inorganic salts or bases that are installed to be available for response to emergency situations. (viii) Soil borrow pits. (ix) Manual loading and unloading operations. (x) Purging of refrigeration devices using a combination of nitrogen and CFC-22 (R-22) as pressure test

media. (xi) Construction and demolition operations. (xii) Mechanical equipment gear boxes and vents that are isolated from process materials. (xiii) Nonvolatile mold release waxes and agents. (43) "U.S. EPA" means the administrator of the United States Environmental Protection Agency or the administrator's designee.

*These documents are 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

**These documents are incorporated by reference. Copies may be obtained through the U.S. Census Bureau website at: www.census.gov/eos/www/naics or are available for review and copying at the Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2- 7- 1 ; filed May 25, 1994, 11:00 a.m.: 17 IR 2249; filed Dec 19, 1995, 3:05 p.m.: 19 IR 1051; errata filed Apr 9, 1996, 2:30 p.m.: 19 IR 2045; filed May 31, 1996, 4:00 p.m.: 19 IR 2856; filed Apr 22, 1997, 2:00 p.m.: 20 IR 2326; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1020; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3106; filed Dec 20, 2001, 4:30 p.m.: 25 IR 1573; filed Oct 1, 2010, 3:48 p.m.:

20101027-IR-326070372FRA; filed Feb 14, 2011, 11:20 a.m.: 20110316-IR-326100505FRA; filed May 25, 2011, 1:07 p.m.: 20110622-IR-326110085FRA; filed Jul 21, 2011, 10:45 a.m.: 20110817-IR-326110099FRA; filed Feb 6, 2012, 2:54 p.m.: 20120307-IR-326090493FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 16. 326 IAC 2- 7- 10.5 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-7- 10.5 Part 70 permits; source modifications

Authority: IC 13- 14-8 ; IC 13- 15-2 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 15-5 ; IC 13- 17

Sec. 10.5. (a) An owner or operator of a Part 70 source proposing to: (1) construct new emission units; (2) modify existing emission units; or (3) otherwise modify the source as described in this section; shall submit a request for a modification approval in accordance with this section.

(b) In addition to the request for modification approval in subsection (a), the commissioner may issue a source modification for the purpose of incorporating the control requirements and emission limitations that are set forth in

a: (1) final federal district court order that adjudicates violations of: (A) the prevention of significant deterioration provisions under Sections 160 through 169B of the CAA (42 U.S.C. 7470 through 42 U.S.C. 7492); (B) the nonattainment new source review requirements under Sections 171 through 193 of the CAA (42 U.S.C. 7501 through 42 U.S.C. 7515); (C) Section 112(g) and 112(j) of the CAA (42 U.S.C. 7412(g) and 42 U.S.C. 7412(j)); (D) 326 IAC 2-2 ; (E) 326 IAC 2- 3 ; or (F) 326 IAC 20 ; or Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 66(2) federal consent decree that is entered into for the purpose of resolving alleged violations of:

(A) the prevention of significant deterioration provisions under Sections 160 through 169B of the CAA (42 U.S.C. 7470 through 42 U.S.C. 7492); (B) the nonattainment new source review requirements under Sections 171 through 193 of the CAA (42 U.S.C. 7501 through 42 U.S.C. 7515); (C) Section 112(g) and 112(j) of the CAA (42 U.S.C. 7412(g) and 42 U.S.C. 7412(j)); (D) 326 IAC 2-2 ; (E) 326 IAC 2- 3 ; or (F) 326 IAC 20

.

(c) Notwithstanding any other provision of this rule, the owner or operator of a source may repair or replace an emissions unit or air pollution control equipment or components thereof without prior approval if the repair or replacement: (1) results in a potential to emit for each regulated pollutant that is less than or equal to the potential to emit of the equipment or the affected emissions unit that was repaired or replaced; (2) is not a major modification under 326 IAC 2-2

, 326 IAC 2- 3 , or 326 IAC 2-4.1 ; and (3) returns the emissions unit, process, or control equipment to normal operation after an upset, malfunction, or mechanical failure or prevents impending and imminent failure of the emissions unit, process, or control equipment. If the repair or replacement qualifies as a reconstruction or is a complete replacement of an emissions unit or air pollution control equipment and would require a modification approval or operating permit revision under a provision of this rule, the owner or operator of the source must submit an application for a permit or permit revision to the commissioner not later than thirty (30) calendar days after initiating the repair or replacement.

(d) Any person proposing to make a modification described in subsection (e) or (g) shall submit an application to the commissioner concerning the modification as follows: (1) If only preconstruction approval is requested, the application shall contain the following information: (A) The company name and address. (B) The following descriptive information: (i) A description of the nature and location of the proposed construction or modification. (ii) The design capacity and typical operating schedule of the proposed construction or modification. (iii) A description of the following: (AA) The source and the emissions unit or units comprising the source. (BB) Any proposed emission control equipment, including design specifications. (C) A schedule for proposed construction or modification of the source. (D) The following information as needed to assure all reasonable information is provided to evaluate compliance consistent with the permit terms and conditions, the underlying requirements of this title and the CAA, the ambient air quality standards set forth in 326 IAC 1- 3 , or the prevention of significant deterioration

maximum allowable increase under 326 IAC 2-2: (i) Information on the nature and amount of the pollutant to be emitted, including an estimate of the potential to emit any regulated air pollutants. (ii) Estimates of offset credits, as required under 326 IAC 2- 3 , for sources to be constructed in

nonattainment areas. (iii) Any other information, including, but not limited to, the air quality impact, determined by the commissioner to be necessary to reasonably demonstrate compliance with the requirements of this title and the requirements of the CAA, whichever are applicable. (E) Each application shall be signed by an authorized individual, unless otherwise noted, whose signature constitutes the following: (i) An acknowledgment that the applicant assumes the responsibility of assuring that the source, emissions unit or units, or emission control equipment will be constructed and will operate in compliance with all applicable Indiana air pollution control rules and the requirements of the CAA. (ii) Affirmation that the statements in the application are true and complete, as known at the time of completion of the application, and shall subject the applicant to liability under state laws forbidding false or misleading statements. (2) If the source requests that the preconstruction approval and operating permit revision be combined, the application shall contain the information in subdivision (1) and the following information consistent with section 4(c) of this rule: (A) An identification of the applicable requirements to which the source will be subject as a result of the modification, including the applicable emission limits and standards, applicable monitoring and test methods, and applicable record keeping and reporting requirements. Indiana Register

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consistent with sections 5 and 6 of this rule. (C) A schedule of compliance, if applicable. (D) A statement describing what the compliance status of the modification will be after construction has been completed consistent with section 4(c)(10) of this rule. (E) A certification consistent with section 4(f) of this rule.

(e) The following minor modifications shall be processed in accordance with subsection (f): (1) Modifications that would reduce the frequency of any monitoring or reporting required by a permit condition or applicable requirement. (2) The addition of a portable source or relocation of a portable source to an existing source if the addition or relocation would require a change to any permit terms or conditions. (3) Modifications that would have a potential to emit within any of the following ranges: (A) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of either particulate matter PM, or particulate matter less than ten (10) microns PM 10 , or direct PM 2.5 . (B) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of the following pollutants: (i) Sulfur dioxide (SO 2). (ii) Nitrogen oxides (NO

x). (iii) VOC for modifications that are not described in clause (C). (C) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of VOC for modifications that require the use of air pollution control equipment to comply with the applicable provisions

of 326 IAC 8

. (D) Less than one hundred (100) tons per year and equal to or greater than twenty-five (25) tons per year of carbon monoxide (CO). (E) Less than five (5) tons per year and equal to or greater than two-tenths (0.2) ton per year of lead (Pb). (F) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of the following regulated air pollutants: (i) Hydrogen sulfide (H 2 S). (ii) Total reduced sulfur (TRS). (iii) Reduced sulfur compounds. (iv) Fluorides. (4) Modifications for which the potential to emit is limited to less than twenty-five (25) tons per year of any regulated pollutant other than HAPs, ten (10) tons per year of any single HAP as defined under Section 112(b) of the CAA, or twenty-five (25) tons per year of any combination of HAPs by complying with one (1) of the following constraints: (A) Limiting total annual solvent usage or maximum VOC content, or both. (B) Limiting annual hours of operation of the process or business. (C) Using a particulate air pollution control device as follows: (i) Achieving and maintaining ninety-nine percent (99%) efficiency. (ii) Complying with a no visible emission standard. (iii) The potential to emit before controls does not exceed major source thresholds for federal permitting

programs. (iv) Certifying to the commissioner that the control device supplier guarantees that a specific outlet concentration, in conjunction with design air flow, will result in actual emissions less than twenty-five (25)

tons of particulate matter PM, or fifteen (15) tons per year of particulate matter with an aerodynamic

diameter less than or equal to ten (10) micrometers PM 10 or direct PM 2.5 . (D) Limiting individual fuel usage and fuel type for a combustion source. (E) Limiting raw material throughput or sulfur content of raw materials, or both. (5) A modification that is subject to a RACT, a new source performance standard (NSPS), or a national emission standard for hazardous air pollutants (NESHAP) and the RACT, NSPS, or NESHAP is the most stringent applicable requirement, except for those modifications that would be subject to the provisions of 40 CFR Part 63, Subpart B, Hazardous Air Pollutants: Regulations Governing Constructed or Reconstructed Major Sources*. As part of the application required under subsection (d), the applicant shall acknowledge the requirement to comply with the RACT, NSPS, or NESHAP. (6) A change for which a source requests an emission limit to avoid 326 IAC 8- 1- 6

. (7) A modification of an existing source that has a potential to emit greater than the thresholds under subdivision (3) if the modification will replace or repair a part or piece of equipment in an existing process

unless the modification: (A) results in the replacement or repair of an entire process; Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 68(B) qualifies as a reconstruction of an entire process;

(C) may result in an increase of actual emissions; or (D) would result in a net emissions increase greater than the significant levels in 326 IAC 2-2 or 326 IAC 2-

3

. (8) A modification that has a potential to emit greater than the thresholds under subdivision (3) that adds an emissions unit or units of the same type that are already permitted and that will comply with the same applicable requirements and permit terms and conditions as the existing emission unit or units, except if the modification would result in a potential to emit greater than the thresholds in 326 IAC 2-2 or 326 IAC 2- 3

. (9) For a source in Lake County or Porter County with the potential to emit twenty-five (25) tons per year of

either VOC or NO

x , any modification that would result in an increase of either emissions greater than or equal to the following: (A) Fifteen (15) pounds per day of VOCs. (B) Twenty-five (25) pounds per day of NO

x .

(f) Minor modification approval procedures for modifications described under subsection (e) (d) are as follows: (1) Except as provided in 326 IAC 2- 13 , the source may not begin construction on any emissions unit that is necessary to implement the modification until the commissioner has approved the modification request. (2) Within forty-five (45) calendar days from receipt of an application for a modification described under subsection (e), the commissioner shall do one (1) of the following: (A) Approve the modification request. (B) Deny the modification request. (C) Determine that the minor permit revision request would cause or contribute to a violation of the National Ambient Air Quality Standard (NAAQS) or prevention of significant deterioration (PSD) standards would allow for an increase in emissions greater than the thresholds in subsection (g) or would not provide for compliance monitoring consistent with this rule and should be processed under subsection (h). (3) The source may begin construction as follows: (A) If the source has a final Part 70 permit and only requests preconstruction approval or if the source does not have a final Part 70 permit, the source may begin construction upon approval by the commissioner. Notwithstanding IC 13- 15- 5 , the commissioner's approval shall become effective immediately. Operation of

the modification shall be as follows: (i) For a source that has a final Part 70 permit, operation of the modification may commence in accordance

with section 12 of this rule. (ii) For a source without a final Part 70 permit, operation may begin after construction is completed. (B) If the source requests that the preconstruction approval and operating permit revision be combined, the source may begin construction upon approval and operation may begin in accordance with section 12 of this

rule.

(g) The following significant modifications shall be processed in accordance with subsection (h): (1) Any modification that is subject to 326 IAC 2-2

, 326 IAC 2- 3 , or 326 IAC 2-4.1

. (2) A modification that is subject to 326 IAC 8- 1- 6

. (3) Any modification with a potential to emit lead at greater than or equal to one (1) ton per year. (4) Any modification with a potential to emit greater than or equal to twenty-five (25) tons per year of any of the following pollutants: (A) Particulate matter PM, or particulate matter with an aerodynamic diameter less than or equal to ten (10)

micrometers PM 10 , or direct PM 2.5 . (B) Sulfur dioxide (SO 2). (C) Nitrogen oxides (NO

x). (D) VOC. (E) Hydrogen sulfide (H 2 S). (F) Total reduced sulfur (TRS). (G) Reduced sulfur compounds. (H) Fluorides. (5) For a source of lead with a potential to emit greater than or equal to five (5) tons per year, a modification that would increase the potential to emit greater than or equal to six-tenths (0.6) ton per year. (6) Any modification with a potential to emit greater than or equal to ten (10) tons per year of a single HAP as defined under Section 112(b) of the CAA or twenty-five (25) tons per year of any combination of HAPs. (7) Any modification with a potential to emit greater than or equal to one hundred (100) tons per year of carbon monoxide (CO).

(h) The following shall apply to the significant modifications described in subsection (g): Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 69(1) Any person proposing to make a modification described in subsection (g) shall:

(A) submit an application concerning the modification; and (B) include the information under subsection (d). (2) Except as provided in 326 IAC 2- 13 , the source may not begin construction on any emissions unit that is necessary to implement the modification until the commissioner has issued a modification approval. (3) The commissioner shall approve or deny the modification as follows: (A) Within one hundred twenty (120) calendar days from receipt of an application for a modification in subsection (g) except subsection (g)(1). (B) Within two hundred seventy (270) calendar days from receipt of an application for a modification under subsection (g)(1). (4) A modification approval under this subsection may be issued only if all of the following conditions have

been met: (A) The commissioner has received a complete application for a modification. (B) The commissioner has complied with the requirements for public notice as follows: (i) For modifications for which a source is only requesting preconstruction approval, the commissioner has complied with the requirements under 326 IAC 2- 1.1- 6

. (ii) For modifications for which a source is requesting a combined preconstruction approval and operating permit revision, the commissioner has complied with the requirements under section 17 of this rule. (C) The conditions of the modification approval provide for compliance with all applicable requirements and

this rule. (D) For modifications for which a source is requesting a combined preconstruction approval and operating permit revision, the U.S. EPA has received a copy of the proposed modification approval and any notices required and has not objected to the issuance of the modification approval within the time period specified in

section 18 of this rule. (5) The commissioner shall do the following: (A) Provide a technical support document that sets forth the legal and factual basis for draft modification approval conditions, including references to the applicable statutory and regulatory provisions. (B) Send this technical support document to: (i) the U.S. EPA; (ii) the applicant; and (iii) any other person who requests it.

(i) The following shall apply to a modification approval described in subsection (g) for a source that has not received a final Part 70 permit: (1) After receiving an approval to construct and prior to receiving approval to operate, a source shall prepare

an affidavit of construction as follows: (A) The affidavit shall include the following: (i) The name and title of the authorized individual. (ii) The company name. (iii) Subject to item (iv), an affirmation that the emissions units described in the modification approval: (AA) were constructed in conformance with the request for modification approval; and (BB) will comply with the modification approval. (iv) Identification of any changes to emissions units not included in the request for modification approval, but which should have been included under subsection (a). (v) The signature of the authorized individual. (B) The affidavit shall be notarized. (C) A source shall submit the affidavit to the commissioner either after construction of all the emission units described in the modification approval or after each phase of construction of the emission units described in the modification approval, as applicable, has been completed. (2) A source may not operate any emissions units described in the modification approval prior to receiving a validation letter issued by the commissioner, except as provided in the following: (A) A source may operate the emissions units covered by the affirmation in the affidavit of construction upon

submission of the affidavit of construction. (B) The commissioner shall issue a validation letter within five (5) working days of receipt of the affidavit of

construction. (C) The validation letter shall authorize the operation of all or part of each emissions unit covered by the

affirmation in the affidavit of construction. (D) Subject to clause (E), the validation letter shall include any amendments to the modification approval if the amendment is requested by the source and if the amendment does not constitute a modification and require public notice and comment under 326 IAC 2- 1.1- 6

. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 70(E) A validation letter shall not approve the operation of any emissions unit if an amendment to the

modification approval requested by the source would constitute a modification and require public notice and

comment under 326 IAC 2- 1.1- 6

.

(j) Each modification approval issued under this rule shall provide that construction must commence within eighteen (18) months of the issuance of the modification approval.

(k) All modification approval proceedings under this section shall provide adequate procedures for public notice, including offering an opportunity for public comment and a hearing on the draft modification approval as

established in 326 IAC 2- 1.1- 6 or section 17 of this rule.

(l) The commissioner shall provide for review by the U.S. EPA and affected states of each: (1) modification application; (2) draft modification approval; (3) proposed modification approval; and (4) final modification approval; in accordance with the procedures established in section 18 of this rule for modifications that a source is requesting a combined preconstruction approval and operating permit revision.

(m) A modification approval issued in accordance with this section shall be incorporated into the source's Part 70 permit or permit application as follows: (1) For a source that has a final Part 70 permit and requested that the preconstruction approval and permit revision be combined, the modification approval shall be incorporated into the Part 70 permit as an

administrative amendment in accordance with section 11 of this rule. (2) For a source that has a final Part 70 permit and requested only a preconstruction approval, the source may begin operation in accordance with section 12 of this rule. (3) For a source that has a complete Part 70 permit application on file, but does not have a final Part 70 permit and requested only preconstruction approval, the modification approval: (A) shall be deemed incorporated in the Part 70 permit application; and (B) will be included in the Part 70 permit when issued.

*This document 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2- 7- 10.5 ; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1039; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3107; filed Oct 23, 2000, 9:47 a.m.: 24 IR 672; filed May 21, 2002, 10:20 a.m.: 25 IR 3065; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3947; errata filed Jul 23, 2007, 4:19 p.m.:

20070815-IR-326070466ACA; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Feb 6, 2012, 2:54

p.m.: 20120307-IR-326090493FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 17. 326 IAC 2- 8- 11.1 IS AMENDED TO READ AS FOLLOWS:

326 IAC 2-8- 11.1 Permit revisions

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11

Affected: IC 13- 15-5 ; IC 13- 17

Sec. 11.1. (a) Any person proposing to add additional emission units, modify existing emission units, or otherwise modify a FESOP source as described in this section shall submit a permit revision request in

accordance with this section.

(b) Notwithstanding any other provision of this rule, the owner or operator of a source may repair or replace an emissions unit or air pollution control equipment, or components thereof, without prior approval, if the repair or replacement: (1) results in a potential to emit for each regulated pollutant that is less than or equal to the potential to emit for Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 71the equipment or the affected emissions unit that was repaired or replaced;

(2) is not a major modification under 326 IAC 2-2- 1

, 326 IAC 2- 3- 1 , or 326 IAC 2-4.1 ; and (3) returns the emissions unit, process, or control equipment to normal operation after an upset, malfunction, or mechanical failure or prevents impending and imminent failure of the emissions unit, process, or control equipment. If the repair or replacement qualifies as a reconstruction or is a complete replacement of an emissions unit or air pollution control equipment and would require a permit or operating permit revision under a provision of this rule, the owner or operator of the source must submit an application for a permit or permit revision to the commissioner not later than thirty (30) calendar days after initiating the repair or replacement.

(c) An application required under this section shall meet the requirements of section 3(c) of this rule and include the following information: (1) The company name and address. (2) A description of the change and the emissions resulting from the change. (3) An identification of the applicable requirements to which the source is newly subject as a result of the change, including the applicable emission limits and standards, applicable monitoring and test methods, and applicable record keeping and reporting requirements. (4) Proposed permit terms and conditions required to implement the change, including limitations and methods to be used to comply with the limitations for modifications described in subsection (d)(4). (5) A schedule of compliance, if applicable. (6) A certification consistent with section 3(d) of this rule.

(d) The following modifications shall require minor permit revisions and shall require approval prior to construction and operation: (1) Modifications that reduce the frequency of any monitoring or reporting required by a permit condition or applicable requirement. (2) The addition of a portable source or relocation of a portable source to an existing source, if the addition or relocation would require a change to any permit terms or conditions. (3) Modifications that would have a potential to emit within the following ranges: (A) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of either particulate matter PM, or particulate matter less than ten (10) microns PM 10 , or direct PM 2.5 . (B) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of sulfur dioxide (SO 2). (C) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of nitrogen oxides (NO

x). (D) Less than twenty-five (25) tons per year and equal to or greater than ten (10) tons per year of VOC for modifications that are not described in clause (E). (E) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of VOC for modifications that require the use of air pollution control equipment to comply with the applicable provisions

of 326 IAC 8

. (F) Less than one hundred (100) tons per year and equal to or greater than twenty-five (25) tons per year of carbon monoxide (CO). (G) Less than five (5) tons per year and equal to or greater than two-tenths (0.2) ton per year of lead (Pb). (H) Less than twenty-five (25) tons per year and equal to or greater than five (5) tons per year of the following regulated air pollutants: (i) Hydrogen sulfide (H 2 S). (ii) Total reduced sulfur (TRS). (iii) Reduced sulfur compounds. (iv) Fluorides. (4) Modifications for which the potential to emit is limited to less than twenty-five (25) tons per year of any regulated pollutant other than HAPs, ten (10) tons per year of any single HAP as defined under Section 112(b) of the CAA, or twenty-five (25) tons per year of any combination of HAPs by complying with one (1) of the following constraints: (A) Limiting total annual solvent usage or maximum VOC content, or both. (B) Limiting annual hours of operation of the process or business. (C) Using a particulate air pollution control device as follows: (i) Achieving and maintaining ninety-nine percent (99%) efficiency. (ii) Complying with a no visible emission standard. (iii) The potential to emit before air pollution controls does not exceed major source thresholds for federal permitting programs. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 72(iv) Certifying to the commissioner that the air pollution control device supplier guarantees that a specific

outlet concentration, in conjunction with design air flow, will result in actual emissions less than twenty-five (25) tons of particulate matter PM, or fifteen (15) tons per year of particulate matter with an aerodynamic

diameter less than or equal to ten (10) micrometers PM 10 or direct PM 2.5 . (D) Limiting individual fuel usage and fuel type for a combustion source. (E) Limiting raw material throughput or sulfur content of raw materials, or both. (5) A change that is not described under section 10(a)(15) or 10(a)(16) of this rule and is subject to a RACT, a new source performance standard (NSPS), or a national emission standard for hazardous air pollutants (NESHAP) and the RACT, NSPS, or NESHAP is the most stringent applicable requirement, except for those modifications that would be subject to the provisions of 40 CFR 63, Subpart B Hazardous Air Pollutants: Regulations Governing Constructed or Reconstructed Major Sources*. As part of the application required under subsection (c), the applicant shall acknowledge the requirement to comply with the RACT, NSPS, or

NESHAP. (6) A modification for which a source requests an emission limit to avoid 326 IAC 8- 1- 6

.

(e) Minor permit revision procedures shall be as follows: (1) Any person proposing to make a change described in subsection (d) shall: (A) submit an application concerning the change; and (B) include the information under subsection (c). (2) Except as provided in 326 IAC 2- 13 , the source may not begin construction on any emissions unit that is necessary to implement the change until the commissioner has revised the permit. (3) Within forty-five (45) calendar days from receipt of an application for a minor permit revision, the

commissioner shall either: (A) approve the minor permit revision request; (B) deny the minor permit revision; or (C) determine that the minor permit revision request would cause or contribute to a violation of the National Ambient Air Quality Standard (NAAQS) or prevention of significant deterioration (PSD) standards, would allow for an increase in emissions greater than the thresholds in subsection (f), or would not provide for compliance monitoring consistent with this rule and should be processed as a significant permit revision. (4) If approved, the permit shall be revised by incorporating the minor permit revision into the permit. The commissioner shall make any changes necessary to assure compliance with this title and the CAA prior to attaching the minor permit revision to the permit. The commissioner shall do the following: (A) Notify the permittee upon incorporation of the minor permit revision to the permit. (B) Provide a copy of the minor permit revision to the permittee. Notwithstanding IC 13- 15- 5 , the commissioner's decision shall become effective immediately.

(f) Significant permit revision procedures are as follows: (1) A significant permit revision is a modification that is not an administrative amendment under section 10 of this rule or subject to subsection (d) and includes the following: (A) Any modification that would be subject to 326 IAC 2-2

, 326 IAC 2- 3 , or 326 IAC 2-4.1

. (B) Any modification that results in the source needing to obtain a Part 70 permit under 326 IAC 2- 7

. (C) A modification that is subject to 326 IAC 8- 1- 6

. (D) Any modification with a potential to emit lead at greater than or equal to one (1) ton per year. (E) Any modification with a potential to emit greater than or equal to twenty-five (25) tons per year of the following pollutants: (i) Particulate matter PM, or particulate matter with an aerodynamic diameter less than or equal to ten (10)

micrometers PM 10 , or direct PM 2.5 . (ii) Sulfur dioxide (SO 2). (iii) Nitrogen oxides (NO

x). (iv) VOC. (v) Hydrogen sulfide (H 2 S). (vi) Total reduced sulfur (TRS). (vii) Reduced sulfur compounds. (viii) Fluorides. (F) For a source of lead with a potential to emit greater than or equal to five (5) tons per year, a modification that would increase the potential to emit greater than or equal to six-tenths (0.6) ton per year. (G) Any modification with a potential to emit greater than or equal to ten (10) tons per year of a single HAP as defined under Section 112(b) of the CAA or twenty-five (25) tons per year of any combination of HAPs. (H) Any modification with a potential to emit greater than or equal to one hundred (100) tons per year of carbon monoxide (CO). Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 73(I) Any modification that removes or reduces compliance monitoring, testing, record keeping, reporting, or its

frequency. (2) The following conditions shall apply to significant permit revisions: (A) Any person proposing to make a modification described in this subsection shall: (i) submit an application concerning the modification; and (ii) include the information under subsection (c). (B) The commissioner shall provide a copy of the significant permit revision application and draft and final operating permit revision to the U.S. EPA. (C) Except as provided in 326 IAC 2- 13 , the source may not begin construction on any emissions unit that is necessary to implement the change until the commissioner has revised the permit. (D) The commissioner shall provide for public notice and comment in accordance with section 13 of this

rule. (E) The commissioner shall approve or deny the significant permit revision as follows: (i) Within one hundred twenty (120) calendar days from receipt of an application for a significant permit revision, except for a significant permit revision under subdivision (1)(A). (ii) Within two hundred seventy (270) calendar days from receipt of an application for a significant permit revision under subdivision (1)(A). (F) If approved, the permit shall be revised by incorporating the significant permit revision into the permit. The commissioner shall make any changes necessary to assure compliance with this title and the CAA prior to attaching the significant permit revision to the permit.

(g) Notwithstanding a permit requirement for emissions to remain below major source thresholds under Part

70 in 326 IAC 2- 7 , PSD in 326 IAC 2-2 , or emission offset in 326 IAC 2- 3 , any modifications that require an adjustment to the FESOP emission limitations shall be required to be reviewed in accordance with the procedures in subsection (f).

*This document 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 2-8- 11.1 ; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1055; errata filed May 12, 1999, 11:23 a.m.: 22 IR 3107; filed May 21, 2002, 10:20 a.m.: 25 IR 3072; errata filed Jul 23, 2007, 4:19 p.m.:

20070815-IR-326070466ACA; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Feb 6, 2012, 2:54

p.m.: 20120307-IR-326090493FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

SECTION 18. 326 IAC 4- 1-4.1 IS AMENDED TO READ AS FOLLOWS:

326 IAC 4- 1-4.1 Open burning approval; criteria and conditions

Authority: IC 13- 15-2- 1 ; IC 13- 17-3-4

Affected: IC 4-21.5 ; IC 13- 12 ; IC 13- 17-9

Sec. 4.1. (a) Burning not exempted by section 3 or 4 of this rule may be authorized by the issuance of an approval by the commissioner or the commissioner's designated agent after consideration of an approval application. Such burning may be authorized for, but not limited to, the following: (1) Burning for the purpose of fire training. (2) Burning of natural growth derived from a clearing operation, such as removal of natural growth for change

in use of the land. (3) Burning of highly explosive or other dangerous materials for which no alternative disposal method exists or where transportation of such materials is hazardous. (4) Burning of clean wood products. (5) Burning of natural growth for the purpose of land management.

(b) The following criteria may be considered for approval under this section: (1) The applicant has demonstrated that alternative methods for disposal are impractical or prohibitively expensive. (2) There are not more than five (5) residences or structures within five hundred (500) feet of the proposed Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 74burning site.

(3) There have been no open burning violations at the site of the proposed burning or by the applicant. (4) If the application involves a structure for fire training, the structure has not been demolished prior to training

activities. (5) The burning site is located in a county not designated as a nonattainment area for PM 10 , PM 2.5 , or ozone and is not located in Clark County or Floyd County. The commissioner or the commissioner's agent may allow open burning in these areas, subject to conditions necessary to protect air quality.

(c) No approval shall be granted at any time for residential burning in Clark County, Floyd County, Lake County, or Porter County.

(d) Any approval shall be subject to the following conditions unless otherwise stipulated in the open burning approval letter: (1) Only clean wood products shall be burned. (2) No asbestos-containing material shall be burned. (3) No burning shall be conducted during unfavorable meteorological conditions, such as: (A) high winds, temperature inversions, or air stagnation; or (B) when a pollution alert or ozone action day has been declared. (4) Burning shall be conducted during daylight hours only, and all fires shall be extinguished prior to sunset. (5) If at any time the fire creates: (A) an air pollution problem; (B) a threat to public health; (C) a nuisance; or (D) a fire hazard; the burning shall be extinguished. (6) The local fire department and health department must be notified at least twenty-four (24) hours in advance of the date, time, and location of the burning. (7) The approval letter shall be made available at the burning site to state and local officials upon request except during emergency burning. (8) Adequate fire fighting equipment shall be on-site for extinguishing purposes during burning times. (9) No burning shall take place within: (A) one hundred (100) feet of any structure or powerline; or (B) three hundred (300) feet of a frequently traveled road, fuel storage area, or pipeline. (10) Fires must be attended at all times until completely extinguished. (11) All burning must comply with other federal, state, or local laws, regulations, or ordinances, including 40 CFR 61, Subpart M* (National Emissions Standards for Asbestos). (12) No waste that is regularly generated as a result of a routine business operation shall be burned. (13) The material to be burned shall not exceed one thousand (1,000) cubic feet.

(e) An approval letter shall be valid for no not longer than one (1) year from the date of issuance. However, an approval letter may be valid for as long as five (5) years if the approval application is accompanied by an open burning plan. The plan shall: (1) contain a description of the open burning proposed for the period of time for which an approval letter is sought; and (2) be incorporated as a condition of the approval letter under subsection (d) or (f). Any change in the plan must receive an additional approval letter, unless the change is to reduce open burning or the change is to conduct burning exempted under section 3 of this rule. The plan shall be available for review upon the request by the department.

(f) The commissioner or the commissioner's designated agent may add conditions to an approval letter, as necessary, to prevent a public nuisance or protect the public health or the environment. Such conditions may be based on local air quality conditions, including whether the area is a nonattainment county as defined in 326 IAC

1-4- 1 or has been redesignated from nonattainment to attainment status.

(g) A decision on the open burning approval letter is subject to IC 4-21.5 (Administrative Orders and Procedures Act).

*This document is incorporated by reference. Copies may be obtained from the Government Printing Office, Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 75732 North Capitol Street NW, Washington, D.C. 20401 or are available for review and copying at the Indiana

Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 4- 1-4.1 ; filed Jul 30, 1996, 2:00 p.m.: 19 IR 3343; readopted filed Jan 10, 2001, 3:20 p.m.: 24 IR 1477; filed Nov 15, 2002, 11:17 a.m.: 26 IR 1077; filed Jun 11, 2012, 3:15 p.m.:

20120711-IR-326110251FRA)

SECTION 19. 326 IAC 5- 1- 5 IS AMENDED TO READ AS FOLLOWS:

326 IAC 5- 1-5 Violations

Authority: IC 13- 14-8 ; IC 13- 17-3-4 ; IC 13- 17-3- 11 ; IC 13- 17-3- 12

Affected: IC 13- 11 ; IC 13- 17

Sec. 5. (a) Except as provided in section 4(b) of this rule, a violation of this rule shall constitute prima facie evidence of a violation of the applicable mass emission limitation. A violation of the mass emission rule may be refuted by a performance test conducted in accordance with 326 IAC 3- 6 . The test shall refute the mass emission violation only if the source is shown to be in compliance with the allowable mass emission limit. An exceedance of the allowable opacity emission limit during a performance test shall not be treated as a violation of the applicable mass emission limitation if, during the test described in 326 IAC 3- 6 , the source demonstrates compliance with the allowable mass emission limit while simultaneously having opacity more than or equal to the reading at which the exceedance was originally observed.

(b) If a source or facility believes it can operate in compliance with the applicable mass emission limitation, but exceeds the limits specified in section 2 of this rule, the owner or operator may submit a written petition to the commissioner requesting that an alternate opacity limitation (AOL) be established, as follows: (1) The petition must be submitted to the commissioner, and a copy submitted to the local air pollution control agency, if applicable, no not later than sixty (60) days prior to the scheduled performance test date. The petition must contain, contain, at a minimum, the following information: (A) Source name and address. (B) Address of affected source if different from clause (A). (C) List of potentially affected parties. (D) Identification of control device or devices and typical operating parameters. (E) Applicable particulate matter (PM, or PM 10 , or PM 2.5) and opacity limits. (F) Other applicable rule requirements or permit conditions. (G) Proposed alternative opacity limit. (H) The reason or reasons for requesting the alternative opacity limit. (I) Complete test protocol in accordance with 326 IAC 3- 6

. (2) The alternative opacity limit shall be based upon a series of three (3) complete mass emission tests (nine (9) sample runs) conducted according to the procedures specified in 326 IAC 3 and three (3) opacity tests conducted simultaneously, according to section 4 of this rule. Where the commissioner determines there is no acceptable test method available, a request for an alternative opacity limit shall be denied. (3) The performance tests must be witnessed by the commissioner, U.S. EPA, the local air pollution control agency, or their authorized representatives unless other arrangements are made in advance of the start of the testing that will allow the testing to proceed without agency staff present to observe the tests. (4) The owner or operator must demonstrate that the following conditions were met during the performance

test: (A) The source or emissions unit was operated according to its permitted conditions and under normal or representative operating conditions. (B) The associated air pollution control system was installed and was being operated as specified in any applicable permit condition or conditions. (C) The air pollution control equipment was: (i) properly maintained and in good operating condition; and was (ii) operated according to the manufacturer's recommended operating conditions to minimize emissions and opacity. (D) The affected emissions unit and associated air pollution control equipment were incapable of being adjusted or operated to meet the applicable opacity limit, except during: (i) periods when the control equipment is not operating properly; or Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 76(ii) other exempt periods under section 3 of this rule.

(E) Each test was conducted under reasonably similar operating conditions. (F) Any other conditions as required by the commissioner or the U.S. EPA. (5) The commissioner may require one (1) or more of the following: (A) The installation of a continuous opacity monitoring system that meets the requirements of 326 IAC 3

. (B) Monitoring sufficient to demonstrate compliance with the alternative opacity limit. (C) Regular reporting to verify compliance with the alternative opacity limit. (6) The alternative opacity limit shall only apply to the emissions unit for which the alternative opacity limit was originally established and shall not be extended to any other unit or units. (7) For multiple units or processes with a common stack, all units must be in operation during the entire test series unless operational limitations are specified in the operation permit or simultaneous operation does not conform with the source's operating procedures. (8) The alternative opacity limit shall be determined based on the results of the performance tests. (9) The particulate matter test results for each sample run must demonstrate compliance with all applicable particulate matter limits or standards. If noncompliance is demonstrated during any sample run, the test series is not valid for an alternative opacity limit determination. (10) The alternative opacity limit established for a source shall be incorporated by amendment into the source's operating permit and submitted to the U.S. EPA in accordance with section 7 of this rule. (11) If the alternative opacity limit exceeds an applicable new source performance standard (NSPS) opacity limit, the provisions in 40 CFR 60.11* must be satisfied in addition to the procedures in this rule. The procedures shall be approved by the U.S. EPA, the commissioner, and the local air pollution control agency as appropriate.

(c) Nothing in this rule shall be construed as allowing an exception or exemption from a requirement in a state or federal new source performance standard without approval by the U.S. EPA.

*This document 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 Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.

(Air Pollution Control Board; 326 IAC 5- 1-5 ; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2423; filed May 12, 1993, 11:30 a.m.: 16 IR 2366; filed Oct 9, 1998, 3:56 p.m.: 22 IR 431; errata filed Dec 12, 2002, 3:35 p.m.: 26 IR 1567; filed Aug 26, 2004, 11:30 a.m.: 28 IR 41; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA)

LSA Document #11-251(F) Proposed Rule: 20120229-IR-326110251PRA Hearing Held: May 2, 2012 Approved by Attorney General: June 7, 2012 Approved by Governor: June 11, 2012 Filed with Publisher: June 11, 2012, 3:15 p.m. Documents Incorporated by Reference: None Received by Publisher Small Business Regulatory Coordinator: Jessica Faust-Hamblin, IDEM Small Business Regulatory Coordinator, MC 60-04 IGCS W041, 100 North Senate Avenue, Indianapolis, IN 46204-2251, (317) 232-8172 or (800) 988-7901, ctap@idem.in.gov Small Business Assistance Program Ombudsman: Brad Baughn, IDEM Small Business Assistance Program Ombudsman, MC 50-01 IGCN 1301, 100 North Senate Avenue, Indianapolis, IN 46204-2251, (317) 234-3386 or (800) 451-6027, bbaughn@idem.in.gov

Posted: 07/11/2012 by Legislative Services Agency

An html version of this document. Indiana Register

Date: Jul 11,2012 3:27:26PM EDT DIN: 20120711-IR-326110251FRA Page 77

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