Document ID: EPA-R05-OAR-2004-IN-0006-0016
Agency: epa
Document Type: Rule
Title: Final Approval of Indiana NSR Reform Regulations
Posted Date: 2007-06-18T04:00Z

[Federal Register: June 18, 2007 (Volume 72, Number 116)]
[Rules and Regulations]               
[Page 33395-33397]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18jn07-8]                         

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2004-IN-0006; FRL-8327-1]

 
Approval and Promulgation of Air Quality Implementation Plans; 
Indiana; NSR Reform Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: On July 10, 2006, EPA proposed partial approval of revisions 
to Indiana's prevention of significant deterioration (PSD) and 
nonattainment new source review (NSR) construction permit programs. EPA 
received comments on this proposal on August 9, 2006. An adverse 
comment regarding the inclusion of hazardous air pollutants (HAPs) in 
Indiana's PSD rules was received. Subsequently, on January 17, 2007, 
the Indiana Department of Environmental Management (IDEM) requested the 
withdrawal of the portion of this submittal pertaining to HAPs. EPA is 
partially approving the portions of the Indiana rule that were proposed 
for approval on July 10, 2006 and were not withdrawn on January 17, 
2007. As noted in the July 10, 2006, notice, we are not taking action 
on the Clean Unit and Pollution Control Project (PCP) portions of the 
Indiana rule.

DATES: This final rule is effective on July 18, 2007.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-R05-OAR-2004-IN-0006. All documents in the docket are listed on 
the http://www.regulations.gov Web site. Although listed in the index, some 

information is not publicly available, i.e., Confidential Business 
Information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material, such as copyrighted material, is 
not placed on the Internet and will be publicly available only in hard 
copy form. Publicly available docket materials are available either 
electronically through http://www.regulations.gov or in hard copy at the 

Environmental Protection Agency, Region 5, Air and Radiation Division, 
77 West Jackson Boulevard, Chicago, Illinois 60604. This facility is 
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 
Federal holidays. We recommend that you telephone Sam Portanova, 
Environmental Engineer, at (312) 886-3189 before visiting the Region 5 
office.

FOR FURTHER INFORMATION CONTACT: Sam Portanova, Environmental Engineer, 
Air Permits Section, Air Programs Branch (AR-18J), Environmental 
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, 
Illinois 60604, (312) 886-3189, portanova.sam@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. What Is EPA Addressing in This Document?
II. What Comments Did EPA Receive and What Are EPA's Responses?
III. What Action Is EPA Taking?
IV. Statutory and Executive Order Reviews

I. What Is EPA Addressing in This Document?

    We are partially approving revisions to Indiana's PSD and 
nonattainment NSR construction permit programs. In our July 10, 2006, 
proposed partial approval (71 FR 38824), we discussed the history of 
Indiana's PSD and nonattainment NSR programs, the contents of the 
State's submission, and our analysis. Please consult that document for 
further information on this submittal.
    EPA received comments on this proposal on August 9, 2006. The 
Alliance of Automobile Manufacturers (``the Alliance'') and the Air 
Permitting Forum (``the Forum'') urged EPA to partially disapprove the 
subsections of the definition of ``regulated NSR pollutant'' that 
reference HAPs listed under section 112 of the Clean Air Act (the Act).
    On January 17, 2007, IDEM submitted a letter requesting the 
withdrawal of 326 IAC 2-2-1(uu)(5) from the state implementation plan 
(SIP) submittal, thus removing the references to HAPs from the 
definition of ``regulated NSR

[[Page 33396]]

pollutant.'' EPA is, therefore, taking no action on 326 IAC 2-2-
1(uu)(5) and approving the remaining portions of the Indiana submittal 
proposed for approval on July 10, 2006.

II. What Comments Did EPA Receive and What Are EPA's Responses?

    We received comments from the CASE Coalition, the Indiana 
Manufacturers Association, and Eli Lilly and Company supporting our 
July 10, 2006, proposal to partially approve the Indiana rules. Since 
these were not adverse comments, no further EPA response is necessary. 
As mentioned above, we also received a comment from the Alliance and 
the Forum asking EPA to partially disapprove the inclusion of HAPs in 
Indiana's PSD rules. The following is our response to this adverse 
comment.
    Indiana included a new definition--``regulated NSR pollutant''--in 
its ``NSR Reform'' regulations. This definition is consistent with the 
definition in the federal rules, except that IDEM added a paragraph at 
326 IAC 2-2-1(uu)(5) to reference HAPs from the existing state rules. 
On July 10, 2006, we proposed approval of the definition of ``regulated 
NSR pollutant'' as part of our proposed partial approval of Indiana's 
rules. In this proposal, we cited the preamble of the December 31, 
2002, NSR rulemaking (67 FR 80240) as part of our justification:

    According to the preamble to the December 31, 2002, NSR 
rulemaking (67 FR 80240), ``State and local agencies with an 
approved PSD program may continue to regulate the HAP now exempted 
from federal PSD by section 112(b)(6) if their PSD regulations 
provide an independent basis to do so. These State and local rules 
remain in effect unless they are revised to provide similar 
exemptions.'' Indiana has included these HAP pollutants in its State 
PSD rules since prior to the 1990 amendments to the Act, which added 
the 112(b) HAP exemption. Therefore, Indiana may continue regulating 
these pollutants in its PSD rules.

    The Alliance and the Forum questioned this position, asserting that 
section 112(b)(6) of the Act contains a prohibition on the application 
of PSD to these pollutants. After consideration of this comment, EPA 
agrees that Indiana's history of inclusion of HAPs in its PSD rules, by 
itself, does not serve as a sufficient ``independent basis'' for the 
approval of these pollutants in this SIP submittal. IDEM's letter of 
January 17, 2007, requesting the withdrawal of 326 IAC 2-2-1(uu)(5) 
from this SIP submittal, removes all references to HAPs from this SIP 
submittal. As such, EPA is taking no action on 326 IAC 2-2-1(uu)(5), 
and is approving the remaining portions of the Indiana submittal that 
were proposed for approval on July 10, 2006.

III. What Action Is EPA Taking?

    EPA is approving into the Indiana SIP the revisions to Indiana's 
PSD and NSR construction permits program submitted by IDEM on September 
2, 2004. The revisions meet the minimum program requirements of the 
December 31, 2002, EPA NSR Reform rulemaking. As requested in IDEM's 
October 25, 2005, letter to EPA, we are not taking action on the Clean 
Unit and PCP provisions of Indiana's rule. As also requested in IDEM's 
January 17, 2007, letter to EPA, we are not taking action on 326 IAC 2-
2-1(uu)(5).

IV. Statutory and Executive Order Reviews

Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget.

Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    Because it is not a ``significant regulatory action'' under 
Executive Order 12866 or a ``significant regulatory action,'' this 
action is also not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355, May 22, 2001).

Regulatory Flexibility Act

    This action merely approves state law as meeting federal 
requirements and imposes no additional requirements beyond those 
imposed by state law. Accordingly, the Administrator certifies that 
this rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.).

Unfunded Mandates Reform Act

    Because this rule approves pre-existing requirements under state 
law and does not impose any additional enforceable duty beyond that 
required by state law, it does not contain any unfunded mandate or 
significantly or uniquely affect small governments, as described in the 
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4).

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    This rule also does not have tribal implications because it will 
not have a substantial direct effect on one or more Indian tribes, on 
the relationship between the Federal Government and Indian tribes, or 
on the distribution of power and responsibilities between the Federal 
Government and Indian tribes, as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000).

Executive Order 13132: Federalism

    This action also does not have Federalism implications because it 
does not have substantial direct effects on the states, on the 
relationship between the national government and the states, or on the 
distribution of power and responsibilities among the various levels of 
government, as specified in Executive Order 13132 (64 FR 43255, August 
10, 1999). This action merely approves a state rule implementing a 
federal standard, and does not alter the relationship or the 
distribution of power and responsibilities established in the Clean Air 
Act.

Executive Order 13045: Protection of Children From Environmental Health 
and Safety Risks

    This rule also is not subject to Executive Order 13045 ``Protection 
of Children from Environmental Health Risks and Safety Risks'' (62 FR 
19885, April 23, 1997), because it approves a state rule implementing a 
Federal Standard.

National Technology Transfer Advancement Act

    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
state to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply.

Paperwork Reduction Act

    This rule does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.).

[[Page 33397]]

Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under Section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by August 17, 2007. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements. (See Section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: May 31, 2007.
Bharat Mathur,
Acting Regional Administrator, Region 5.

0
For the reasons stated in the preamble, part 52, chapter I, of title 40 
of the Code of Federal Regulations is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart P--Indiana

0
2. Section 52.770 is amended by adding paragraph (c)(181) to read as 
follows:

Sec.  52.770  Identification of plan.

* * * * *
    (c) * * *
    (181) On September 2, 2004, Indiana submitted modifications to its 
Prevention of Significant Deterioration and nonattainment New Source 
Review rules as a revision to the state implementation plan. On October 
25, 2005, and January 17, 2007, Indiana submitted revisions to the 
September 2, 2004 submittal.
    (i) Incorporation by reference.
    (A) Title 326 of the Indiana Administrative Code, Rules 2-1.1-7, 2-
2-1(a) through (l), 2-2-1(n) through (kk), 2-2-1(mm) through (tt), 2-2-
1(uu)(1) through (4), 2-2-1(vv) through (aaa), 2-2-2(a) through (d)(4), 
2-2-2(d)(6) through (e), 2-2-2(g) through (i), 2-2-3, 2-2-4, 2-2-5(a), 
2-2-5(c) through (e), 2-2-6, 2-2-8, 2-2.4, 2-3-1(a) through (i), 2-3-
1(k) through (ff), 2-3-1(hh) through (uu), 2-3-2(a) through (c)(4), 2-
3-2(c)(6) through (k), 2-3-2(m), 2-3-3(a) through (b)(11), 2-3-
3(b)(14), 2-3.4, 2-5.1-4. Filed with the Secretary of State on August 
10, 2004, effective September 10, 2004. Published in the Indiana 
Register on September 1, 2004 (27 IR 3887).

[FR Doc. E7-11571 Filed 6-15-07; 8:45 am]

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