Document ID: EPA-R05-OAR-2012-0567-0008
Agency: epa
Document Type: Rule
Title: Final Approval of Indiana PM2.5 NSR and PSD Revisions
Posted Date: 2014-07-02T04:00Z

[Federal Register Volume 79, Number 127 (Wednesday, July 2, 2014)]
[Rules and Regulations]
[Pages 37646-37650]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15271]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2012-0567; FRL-9912-85-Region 5]

Approval and Promulgation of Air Quality Implementation Plans; 
Indiana; Indiana PM2.5 NSR

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action to approve portions of submissions from Indiana addressing EPA's 
requirements for its new source review (NSR) and prevention of 
significant deterioration (PSD) program with respect to particulate 
matter smaller than 2.5 micrometers (PM2.5) and ozone 
precursors. This rulemaking will finalize portions of two proposed

[[Page 37647]]

rulemaking actions, one published in the Federal Register on August 19, 
2013 and another published on November 1, 2013.

DATES: This final rule is effective on August 1, 2014.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-R05-OAR-2012-0567. All documents in the docket are listed on 
the 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 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 Michael Langman, 
Environmental Scientist, at (312) 886-6867 before visiting the Region 5 
office.

FOR FURTHER INFORMATION CONTACT: Michael Langman, Environmental 
Scientist, Air Permits Section, Air Programs Branch (AR-18J), 
Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, 
Chicago, Illinois 60604, (312) 886-6867, langman.michael@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 the background for this final approval?
II. What is EPA approving with this final action?
III. Why is EPA approving changes to Indiana's nonattainment new 
source review program?
IV. Why is EPA taking no action on portions of indiana's request?
V. What action is EPA taking?
VI. Statutory and Executive Order Reviews.

I. What is the background for this final approval?

    On July 12, 2012, the Indiana Department of Environmental 
Management (IDEM) submitted revisions to Indiana's State Implementation 
Plan (SIP) intended to address ozone and PM2.5 NSR and PSD 
requirements. IDEM also submitted a supplemental revision to its SIP on 
December 12, 2012, addressing additional PM2.5 NSR and PSD 
requirements. Indiana's SIP is contained within title 326 of the 
Indiana Administrative Code (IAC).
    On August 19, 2013, EPA proposed to approve some portions of the 
submissions as revisions to Indiana's SIP (see 78 FR 50360). The public 
comment period for this proposed approval ended on September 18, 2013. 
EPA received comments on the August 19, 2013, proposed rulemaking.
    On November 1, 2013, EPA proposed to approve additional portions of 
the submissions as revisions to Indiana's SIP (see 78 FR 65590). The 
public comment period for the proposed approval ended on December 2, 
2013. No comments were received for the November 1, 2013, proposed 
rulemaking.
    In today's rulemaking, EPA finalizes portions of its August 19, 
2013, and November 1, 2013, proposed approval of Indiana's July 12, 
2012, and December 12, 2012, submissions from IDEM. These were intended 
to address requirements related to EPA's 2010 final rule entitled 
``Prevention of Significant Deterioration (PSD) for Particulate Matter 
Less than 2.5 Micrometers (PM2.5)--Increments, Significant 
Impact Levels (SILs), and Significant Monitoring Concentration (SMC)'' 
(the 2010 NSR Rule) \1\ with respect to the major source baseline date, 
trigger date, definition of baseline area, and the class I variance. 
EPA will also finalize its approval of portions of IDEM's submission 
addressing nitrogen oxide (NOX) ozone precursor requirements 
obligated by EPA's 2005 final rule entitled ``Final Rule to Implement 
the 8-hour Ozone National Ambient Air Quality Standard--Phase 2''.\2\
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    \1\ 75 FR 64863 (October 20, 2010).
    \2\ 70 FR 71612 (November 29, 2005).
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    EPA is also finalizing its approval of some portions of Indiana's 
submission as it relates to nonattainment NSR. In particular, EPA is 
approving the revisions to Indiana's SIP intended to address the 
requirements obligated by EPA's 2008 final rule entitled 
``Implementation of New Source Review (NSR) Program for Particulate 
Matter Less than 2.5 Micrometers (PM2.5)'' (the 2008 NSR 
Rule) \3\ with respect to nonattainment NSR program definitions of 
``regulated NSR pollutant'' and ``significant''. These definitions were 
submitted in accordance with title I, part D, subpart 1 of the Clean 
Air Act (CAA) as opposed to title I, part D, subpart 4 of the CAA.
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    \3\ 73 FR 28321 (May 16, 2008).
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    EPA will be taking no action on the revisions requesting changes to 
permitting exemptions and Indiana's title V program. EPA will also be 
taking no action on the revisions incorporating PM2.5 PSD 
increments due to an adverse comment EPA received on the August 19, 
2013, proposed rulemaking.
    The following sections will describe in more detail the action EPA 
is taking on each of Indiana's requests.

II. What is EPA approving with this final action?

    For the reasons discussed in the November 1, 2013, proposed 
rulemaking (see 78 FR 65590), EPA is finalizing its approval for the 
following revisions to Indiana's SIP:
    (i) The corrected SIP citation for ozone ambient air quality data 
at 326 IAC 2-2-4(b)(2)(A)(vi);
    (ii) The revised requirements allowing the submission of ozone 
post-approval monitoring data for both volatile organic compounds (VOC) 
and NOX at 326 IAC 2-2-4(c)(4);
    (iii) The addition of the PM2.5 class I variance at 326 
IAC 2-2-14(e); and
    (iv) The revised submission requirements to include 
PM2.5 requirements as part of the petition for alternate 
opacity limits at 326 IAC 5-1-5(b)(1)(E).
    EPA is also finalizing approval of portions of submissions from 
IDEM intended to address requirements related to the 2010 NSR Rule. On 
August 19, 2013, EPA published a rulemaking proposing approval of 326 
IAC 2-2-1(f)(1), 326 IAC 2-2-1(ee)(3), and 326 IAC 2-2-1(gg)(1)(C) (see 
78 FR 50360). This action was independent of the November 1, 2013, 
proposed rulemaking (see 78 FR 65590), where EPA proposed approval of 
the identical provisions. Therefore, for the reasons discussed in both 
the August 19, 2013, and November 1, 2013, proposed rulemakings, EPA is 
finalizing its approval for the following revisions to Indiana's SIP:
    (i) The revision to the definition of ``baseline area'' at 326 IAC 
2-2-1(f)(1);
    (ii) The revision to the definition of ``major source baseline 
date'' at 326 IAC 2-2-1(ee)(3); and
    (iii) The addition of the PM2.5 trigger date to the 
definition of ``minor source baseline date'' at 326 IAC 2-2-
1(gg)(1)(C).
    To clarify, today's final approval of 326 IAC 2-2-1(f)(1), 326 IAC 
2-2-1(ee)(3), and 326 IAC 2-2-1(gg)(1)(C) serves as a final action for 
both the August 19, 2013, and November 1, 2013, proposed rulemakings.

[[Page 37648]]

III. Why is EPA approving changes to Indiana's nonattainment new source 
review program?

    On January 4, 2013, the U.S. Court of Appeals for the District of 
Columbia Circuit, in Natural Resources Defense Council v. EPA \4\ 
issued a decision that remanded the EPA's 2007 and 2008 rules 
implementing the 1997 PM2.5 National Ambient Air Quality 
Standards (NAAQS). Relevant here, the 2008 NSR Rule promulgated NSR 
requirements for implementation of PM2.5 in both 
nonattainment areas and attainment/unclassifiable areas. The Court 
found that EPA erred in implementing the PM2.5 NAAQS in 
these rules solely pursuant to the general implementation provisions of 
subpart 1 of part D of title I of the CAA, rather than pursuant to the 
additional implementation provisions specific to particulate matter 
nonattainment areas in subpart 4. The Court ordered the EPA to 
``repromulgate these rules pursuant to Subpart 4 consistent with this 
opinion.'' Id. at 437.
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    \4\ 706 F.3d 428 (D.C. Cir. 2013).
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    On April 25, 2014, the Administrator signed a final rulemaking that 
begins to address the remand (see http://www.epa.gov/airquality/particlepollution/actions.html). Upon its effective date, the final 
rule classifies all existing PM2.5 nonattainment areas as 
``Moderate'' nonattainment areas and sets a deadline of December 31, 
2014, for states to submit any SIP submissions, including nonattainment 
NSR SIPs, that may be necessary to satisfy the requirements of subpart 
4, part D, title I of the CAA with respect to PM2.5 
nonattainment areas.
    In a separate rulemaking process that will follow the April 2014 
rule, EPA is evaluating the requirements of subpart 4 as they pertain 
to nonattainment NSR for PM2.5 emissions. In particular, 
subpart 4 includes section 189(e) of the CAA, which requires the 
control of major stationary sources of PM10 precursors 
``except where the Administrator determines that such sources do not 
contribute significantly to PM10 levels which exceed the 
standard in the area.'' Under the court's decision in NRDC, section 
189(e) of the CAA also applies to PM2.5.
    As discussed in the proposed rulemaking for this action, IDEM's SIP 
submission included revisions to two definitions in Indiana's 
nonattainment NSR program. The revised definition of ``regulated NSR 
pollutant'' at 326 IAC 2-3-1(mm)(3) identifies precursors to both ozone 
and PM2.5 in nonattainment areas. With respect to 
PM2.5, the revised definition of ``regulated NSR pollutant'' 
at 326 IAC 2-3-1(mm)(3) identifies sulfur dioxide (SO2) and 
NOX as regulated PM2.5 precursors while VOCs and 
ammonia are not regulated PM2.5 precursors in 
PM2.5 nonattainment areas in the state. The revised 
definition of ``significant'' at 326 IAC 2-3-1(pp) adds significant 
emission rates for direct PM2.5 and for SO2 and 
NOX as PM2.5 precursors. These revisions, 
although consistent with the 2008 NSR Rule as developed consistent with 
subpart 1 of the CAA, may not contain the elements necessary to satisfy 
the CAA requirements when evaluated under the subpart 4 statutory 
requirements. In particular, Indiana's submission does not include 
regulation of VOCs and ammonia as PM2.5 precursors, nor does 
it include a demonstration consistent with section 189(e) showing that 
major sources of those precursor pollutants would not contribute 
significantly to PM2.5 levels exceeding the standard in the 
area. For these reasons, EPA cannot conclude at this time that this 
part of Indiana's nonattainment NSR submission satisfies all of the 
requirements of subpart 4 as they pertain to PM2.5 
nonattainment NSR permitting.
    Although the revisions to Indiana's nonattainment NSR rule may not 
contain all of the necessary elements to satisfy the CAA requirements 
when evaluated under the subpart 4 provisions, the revisions themselves 
represent a strengthening of the currently-approved Indiana SIP which 
does not address PM2.5 at all. As a result of the April 25, 
2014, final rule, IDEM will have until December 31, 2014, to make any 
additional submission necessary to address the requirements of subpart 
4, including addressing the PM2.5 precursors of VOC and 
ammonia. For these reasons, EPA is approving the nonattainment NSR 
revisions at 326 IAC 2-3-1(mm)(3) and 326 IAC 2-3-1(pp) without listing 
as a deficiency at this time the absence of either the regulation or 
evaluation of VOCs and ammonia as PM2.5 precursors.

IV. Why is EPA taking no action on portions of Indiana's request?

    EPA is taking no action with respect to the PSD increment revision 
at 326 IAC 2-2-6(b). In EPA's August 19, 2013 rulemaking, we proposed 
to approve revisions to Indiana's PSD increment at 326 IAC 2-2-6(b). 
During the comment period for the August 19, 2013, proposed rulemaking, 
EPA received an adverse comment regarding the PSD increment revision at 
326 IAC 2-2-6(b). In the November 1, 2013, proposed rulemaking, EPA 
proposed to approve the same revisions to Indiana's PSD increment at 
326 IAC 2-2-6(b). EPA did not receive any adverse comments during the 
comment period for that proposed rulemaking. However, given the earlier 
adverse comment, EPA is not taking final action with respect to 326 IAC 
2-2-6(b) in this action. Instead, EPA will address Indiana's 
satisfaction of the PSD increment requirements and address the adverse 
comment in a separate action.
    EPA is also taking no action on the following revisions to 
Indiana's SIP:
    (i) 326 IAC 2-1.1-3(d)(2)(A);
    (ii) 326 IAC 2-1.1-3(e)(1)(A); and
    (iii) 326 IAC 2-1.1-3(h)(2)(B)(xi).
    As discussed in the November 1, 2013, proposal, these revisions to 
permitting exemptions were requested for state regulations that EPA has 
not previously approved into Indiana's SIP. If Indiana requests in the 
future that EPA take action on adding these revisions to Indiana's SIP 
as part of a separate SIP submission, then EPA will do so at that time.
    EPA is taking no action on the following revisions to Indiana's 
title V program:
    (i) 326 IAC 2-7-1(21)(E)(vi); and
    (ii) 326 IAC 2-7-1(42)(C)(ii)(FF).
    As discussed in the November 1, 2013, proposal, EPA will take 
action on the revisions to Indiana's title V program as part of a title 
V program submission.

V. What action is EPA taking?

    For the reasons discussed previously in the proposed rulemaking and 
in today's final rulemaking, EPA is approving into the Indiana SIP the 
following revised rules addressing PM2.5 and ozone 
requirements: 326 IAC 2-2-1(f)(1), (ee)(3), and (gg)(1)(C); 326 IAC 2-
2-4(b)(2)(A)(vi) and (c)(4); 326 IAC 2-2-14(e); and 326 IAC 5-1-
5(b)(1)(E).
    EPA is also approving into the Indiana SIP the following revised 
rules to Indiana's nonattainment NSR program: 326 IAC 2-3-1(mm)(3) and 
(pp).
    For the reasons identified in the November 1, 2013, proposed 
rulemaking and further explained in today's final rulemaking, EPA is 
taking no action with respect to the following revised rules to 
PM2.5 PSD increment, permitting exemptions, and Indiana's 
title V program: 326 IAC 2-1.1-3(d)(2)(A), (e)(1)(A), and 
(h)(2)(B)(xi); 326 IAC 2-2-6(b); and 326 IAC 2-7-1(21)(E)(vi) and 
(42)(C)(ii)(FF).

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the

[[Page 37649]]

CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 
52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve 
state choices, provided that they meet the criteria of the CAA. 
Accordingly, this action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     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);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the state, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.
    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 action 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 CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by September 2, 2014. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this action 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, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
oxides, Volatile organic compounds.

    Dated: June 17, 2014.
Susan Hedman,
Regional Administrator, Region 5.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

0
2. In Sec.  52.770 the table in paragraph (c) is amended by:
0
a. Revising the entries in ``Article 2. Permit Review Rules'' for 
``Rule 2. Prevention of Significant Deterioration Requirements'';
0
b. Revising the entry in ``Article 2. Permit Review Rules'', ``Rule 3. 
Emission Offset'' for 2-3-1 ``Definitions''; and
0
c. Revising the entries for ``Article 5. Opacity Regulations''.
    The revised text reads as follows:

Sec.  52.770  Identification of plan.

* * * * *
    (c) * * *

                                        EPA-Approved Indiana Regulations
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                                                       Indiana
     Indiana citation              Subject         effective date     EPA approval date            Notes
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                         Article 2. Permit Review Rules
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                       Rule 2. Prevention of Significant Deterioration (PSD) Requirements
----------------------------------------------------------------------------------------------------------------
2-2-1....................  Definitions...........       7/11/2012  10/29/2012, 77 FR       (dd)(1), (ff)(7),
                                                                    65478.                  (ss)(1), (ww)(1)(F),
                                                                                            and (ww)(1)(G) only.
                                                        7/11/2012  7/2/2014, [INSERT       (f)(1), (ee)(3), and
                                                                    Federal Register        (gg)(1)(C) only.
                                                                    CITATION].
2-2-2....................  Applicability.........      10/31/2010  7/8/2011, 76 FR 40242.
2-2-3....................  Control technology           9/10/2004  6/18/2007, 72 FR 33395
                            review; requirements.
2-2-4....................  Air quality analysis;        7/11/2012  10/29/2012, 77 FR       (b)(2)(vi) only.
                            requirements.                           65478.

[[Page 37650]]

 
                                                        7/11/2012  7/2/2014, [INSERT       (c)(4) only.
                                                                    Federal Register
                                                                    CITATION].
2-2-5....................  Air quality impact;         10/31/2010  7/8/2011, 76 FR 40242.
                            requirements.
2-2-6....................  Increment consumption;       9/10/2004  6/18/2007, 72 FR 33395
                            requirements.
2-2-8....................  Source obligation.....      10/31/2010  7/8/2011, 76 FR 40242.
2-2-10...................  Source information....      10/31/2010  7/8/2011, 76 FR 40242.
2-2-11...................  Stack height                 4/22/2001  6/27/2003, 68 FR 38197
                            provisions.
2-2-12...................  Permit rescission.....        4/8/2004  5/20/2004, 69 FR 29071
2-2-13...................  Area designation and         4/22/2001  6/27/2003, 68 FR 38197
                            redesignation.
2-2-14...................  Sources impacting            7/11/2012  7/2/2014, [INSERT
                            federal Class I                         Federal Register
                            areas: additional                       CITATION].
                            requirements.
2-2-15...................  Public participation..       4/22/2001  6/27/2003, 68 FR 38197
2-2-16...................  Ambient air ceilings..       4/22/2001  6/27/2003, 68 FR 38197
----------------------------------------------------------------------------------------------------------------
                                             Rule 3. Emission Offset
----------------------------------------------------------------------------------------------------------------
2-3-1....................  Definitions...........      10/31/2010  7/8/2011, 76 FR 40242.
 
----------------------------------------------------------------------------------------------------------------
                                                        7/11/2012  7/2/2014, [INSERT
                                                                    Federal Register
                                                                    CITATION].
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                         Article 5. Opacity Regulations
----------------------------------------------------------------------------------------------------------------
                                           Rule 1. Opacity Limitations
----------------------------------------------------------------------------------------------------------------
5-1-1....................  Applicability.........       11/8/1998  7/16/2002, 67 FR 46589
5-1-2....................  Opacity limitations...       11/8/1998  7/16/2002, 67 FR 46589
5-1-3....................  Temporary alternative        11/8/1998  7/16/2002, 67 FR 46589
                            opacity limitations.
5-1-4....................  Compliance                   6/11/1993  6/15/1995, 60 FR 31412  Sec. 4(a).
                            determination.
                                                        11/8/1998  7/16/2002, 67 FR 46589  Sec. 4(b).
5-1-5....................  Violations............       6/11/1993  6/15/1995, 60 FR 31412  Sec. 5(a), 5(c).
                                                        11/8/1998  7/16/2002, 67 FR 46589  Sec. 5(b).
                                                        7/11/2012  7/2/2014, [INSERT       Sec. 5(b)(1)(E) only.
                                                                    Federal Register
                                                                    CITATION].
----------------------------------------------------------------------------------------------------------------
5-1-7....................  State implementation         6/11/1993  6/15/1995, 60 FR 31412
                            plan revisions.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2014-15271 Filed 7-1-14; 8:45 am]
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