[Federal Register Volume 62, Number 138 (Friday, July 18, 1997)]
[Rules and Regulations]
[Pages 38457-38464]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18972]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[IN53-3; FRL-5860-4]
Approval and Promulgation of State Implementation Plan; Indiana
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: On June 26, 1995, and June 13, 1997, the State of Indiana
submitted a Rate-Of-Progress (ROP) plan to reduce Volatile Organic
Compounds (VOC) emissions in Lake and Porter Counties by 15 percent (%)
from 1990 baseline levels by November 15, 1996, as a requested revision
to the Indiana State Implementation Plan (SIP). On April 3, 1997, EPA
issued a direct final approval of the Lake and Porter Counties 15% ROP
plan, 3% contingency plan, and an Indiana Agreed Order requiring VOC
emission controls on Keil Chemical Division, Ferro Corporation, located
in Lake County (Keil). On the same day (April 3, 1997) EPA proposed
approval and solicited public written comment on these requested SIP
revisions. This proposed rule established a 30-day public comment
period noting that if adverse comments were received regarding the
direct final rule EPA would withdraw the direct final rule and publish
an additional final rule to address the public comments. Adverse
comments were received during the public comment period relating to the
Keil SIP revision. EPA withdrew the direct final rule on May 23, 1997.
In today's action, EPA is finalizing approval of the 15% ROP plan.
Final action on the 3% contingency plan and the Keil agreed order will
be addressed in a subsequent rulemaking action. The 15% ROP plan has
reduced VOC emissions in Lake and Porter Counties by approximately
68,242 pounds (lbs) per day. VOC emissions combine with oxides of
nitrogen in the atmosphere to form ground-level ozone, a pollutant
which can cause inflammation of the lungs, decrease lung capacity, and
aggravate asthma. The rationale for this rulemaking is discussed below.
DATES: This final rule is effective August 18, 1997.
ADDRESSES: Copies of the SIP revision request are available for
inspection at the following address: (It is recommended that you
telephone Mark J. Palermo at (312) 886-6082, before visiting the Region
5 office.)
U.S. Environmental Protection Agency, Region 5, Air and Radiation
Division, 77 West Jackson Boulevard, Chicago, Illinois, 60604.
FOR FURTHER INFORMATION CONTACT: Mark J. Palermo, Environmental
Protection Specialist, Air Programs Branch (AR-18J) (312) 886-6082.
SUPPLEMENTARY INFORMATION:
I. Background on 15% ROP Requirements
On November 15, 1990, Congress enacted amendments to the 1977 Clean
Air Act (Act); Public Law 101-549, 104 Stat. 2399, codified at 42
U.S.C. 7401-7671q. Section 182(b)(1) requires States with ozone
nonattainment areas classified as moderate and above to submit a SIP
revision known as a 15% ROP plan. This plan must reflect an actual
reduction in typical ozone season weekday VOC emissions of at least 15%
in the area during the first 6 years after enactment (i.e., by November
15, 1996). The emission reductions needed to achieve the 15%
requirement must be calculated using a 1990 anthropogenic VOC emissions
inventory as a baseline, minus emissions that have been reduced by: (1)
The Federal Motor Vehicle Control Program (FMVCP) measures for the
control of motor vehicle exhaust or evaporative emissions promulgated
before January 1, 1990; and (2) gasoline Reid Vapor Pressure (RVP)
regulations promulgated by November 15, 1990 (55 FR 23666, June 11,
1990). In addition, the plan must account for net growth in emissions
within the nonattainment area between 1990 and 1996.
In Indiana, two ozone nonattainment areas are subject to the 15%
ROP plan requirement: The Lake and Porter Counties portion of the
Chicago severe ozone nonattainment area, and the Clark and Floyd
Counties portion of the Louisville moderate ozone nonattainment area.
This rulemaking action addresses only the plan for Lake and Porter
Counties; the Clark and Floyd Counties 15% ROP plan was approved on May
7, 1997 (62 FR at 24815).
II. Indiana's 15% ROP Submittal
The Act requires States to observe certain procedural requirements
in developing SIPs and SIP revisions for submission to EPA. Section
110(a)(2)
[[Page 38458]]
and section 110(l) of the Act require that each State's SIP revision
submitted under the Act be adopted by the State after reasonable notice
and public hearing. The State of Indiana submitted a portion of the
Lake and Porter Counties 15% ROP SIP revision on January 13, 1994. The
SIP revision was reviewed by EPA to determine completeness shortly
after submittal, in accordance with the completeness criteria set out
at 40 CFR part 51, appendix V (1991), as amended by 57 FR 42216 (August
26, 1991). However, the submittal was deemed incomplete because the
plan had not yet gone through public hearing and did not include fully
adopted rules for all of the plan's control measures. Indiana held a
public hearing on the plan on March 29, 1994. A summary of comments
from that hearing and the Indiana Department of Environmental
Management's (IDEM) response was submitted on July 5, 1994. IDEM sent a
supplemental submittal on June 26, 1995, which included fully adopted
rules for the Lake and Porter Counties 15% ROP plan. In a July 17,
1995, letter to Indiana, the State was notified that the SIP submittal
was deemed complete.
III. Criteria for 15% ROP Approvals
The requirements for 15% ROP plans are found in section 182(b)(1)
of the Act, and the following EPA guidance documents:
1. Procedures for Preparing Emissions Projections, EPA-450/4-91-
019, Environmental Protection Agency, July 1991.
2. State Implementation Plans; General Preamble for the
Implementation of Title I of the Clean Air Act Amendments of 1990;
Proposed rule (57 FR 13498), Federal Register, April 16, 1992 (General
Preamble).
3. ``November 15, 1992, Deliverables for Reasonable Further
Progress and Modeling Emission Inventories,'' memorandum from J. David
Mobley, Edwin L. Meyer, and G. T. Helms, Office of Air Quality Planning
and Standards, Environmental Protection Agency, August 7, 1992.
4. Guidance on the Adjusted Base Year Emissions Inventory and the
1996 Target for the 15 Percent Rate of Progress Plans, EPA-452/R-92-
005, Environmental Protection Agency, October 1992.
5. ``Quantification of Rule Effectiveness Improvements,''
memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs
Branch, Office of Air Quality Planning and Standards, Environmental
Protection Agency, October 1992.
6. Guidance for Growth Factors, Projections, and Control Strategies
for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-002, March
1993.
7. ``Correction to `Guidance on the Adjusted Base Year Emissions
Inventory and the 1996 Target for the 15 Percent Rate of Progress
Plans','' memorandum from G.T. Helms, Chief, Ozone/Carbon Monoxide
Programs Branch, Office of Air Quality Planning and Standards,
Environmental Protection Agency, March 2, 1993.
8. ``15 Percent Rate-of-Progress Plans,'' memorandum from G.T.
Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of Air
Quality Planning and Standards, Environmental Protection Agency, March
16, 1993.
9. Guidance on the Relationship Between the 15 Percent Rate-of-
Progress Plans and Other Provisions of the Clean Air Act, EPA-452/R-93-
007, Environmental Protection Agency, May 1993.
10. ``Credit Toward the 15 Percent Rate-of-Progress Reductions from
Federal Measures,'' memorandum from G. T. Helms, Chief, Ozone/Carbon
Monoxide Programs Branch, Environmental Protection Agency, May 6, 1993.
11. Guidance on Preparing Enforceable Regulations and Compliance
Programs for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-005,
Environmental Protection Agency, June 1993.
12. ``Correction Errata to the 15 Percent Rate-of-Progress Plan
Guidance Series,'' memorandum from G. T. Helms, Chief, Ozone and Carbon
Monoxide Programs Branch, Environmental Protection Agency, July 28,
1993.
13. ``Early Implementation of Contingency Measures for Ozone and
Carbon Monoxide (CO) Nonattainment Areas,'' memorandum from G. T.
Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Environmental
Protection Agency, August 13, 1993.
14. ``Region III Questions on Emission Projections for the 15
Percent Rate-of-Progress Plans,'' memorandum from G. T. Helms, Chief,
Ozone/Carbon Monoxide Programs Branch, Office of Air Quality Planning
and Standards, Environmental Protection Agency, August 17, 1993.
15. ``Guidance on Issues Related to 15 Percent Rate-of-Progress
Plans,'' memorandum from Michael H. Shapiro, Acting Assistant
Administrator for Air and Radiation, Environmental Protection Agency,
August 23, 1993.
16. ``Credit Toward the 15 Percent Requirements from Architectural
and Industrial Maintenance Coatings,'' memorandum from John S. Seitz,
Director, Office of Air Quality Planning and Standards, Environmental
Protection Agency, September 10, 1993.
17. ``Reclassification of Areas to Nonattainment and 15 Percent
Rate-of-Progress Plans,'' memorandum from John S. Seitz, Director,
Office of Air Quality Planning and Standards, Environmental Protection
Agency, September 20, 1993.
18. ``Clarification of `Guidance for Growth Factors, Projections
and Control Strategies for the 15 Percent Rate of Progress Plans',''
memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs
Branch, Office of Air Quality Planning and Standards, Environmental
Protection Agency, October 6, 1993.
19. ``Review and Rulemaking on 15 Percent Rate-of-Progress Plans,''
memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs
Branch, Office of Air Quality Planning and Standards, Environmental
Protection Agency, October 6, 1993.
20. ``Questions and Answers from the 15 Percent Rate-of-Progress
Plan Workshop,'' memorandum from G. T. Helms, Chief, Ozone/Carbon
Monoxide Programs Branch, Environmental Protection Agency, October 29,
1993.
21. ``Rate-of-Progress Plan Guidance on the 15 Percent
Calculations,'' memorandum from D. Kent Berry, Acting Director, Air
Quality Management Division, Environmental Protection Agency, October
29, 1993.
22. ``Clarification of Issues Regarding the Contingency Measures
that are Due November 15, 1993 for Moderate and Above Ozone
Nonattainment Areas,'' memorandum from D. Kent Berry, Acting Director,
Air Quality Management Division, Environmental Protection Agency,
November 8, 1993.
23. ``Credit for 15 Percent Rate-of-Progress Plan Reductions from
the Architectural and Industrial Maintenance (AIM) Coating Rule,''
memorandum from John S. Seitz, Director, Office of Air Quality Planning
and Standards, Environmental Protection Agency, December 9, 1993.
24. ``Guidance on Projection of Nonroad Inventories to Future
Years,'' memorandum from Philip A. Lorang, Director, Emission Planning
and Strategies Division, Office of Air and Radiation, Environmental
Protection Agency, February 4, 1994.
25. ``Discussion at the Division Directors Meeting on June 1
Concerning the 15 Percent and 3 Percent Calculations,'' memorandum from
G. T. Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of
Air Quality
[[Page 38459]]
Planning and Standards, Environmental Protection Agency, June 2, 1994.
26. ``Future Nonroad Emission Reduction Credits for Court-Ordered
Nonroad Standards,'' memorandum from Philip A. Lorang, Director,
Emission Planning and Strategies Division, Office of Air and Radiation,
Environmental Protection Agency, November 28, 1994.
27. ``Credit for the 15 Percent Rate-of-Progress Plans for
Reductions from the Architectural and Industrial Maintenance (AIM)
Coating Rule and the Autobody Refinishing Rule,'' memorandum from John
S. Seitz, Director, Office of Air Quality Planning and Standards,
Environmental Protection Agency, November 29, 1994.
28. ``Transmittal of Rule Effectiveness Protocol for 1996
Demonstrations,'' memorandum from Susan E. Bromm, Director, Chemical,
Commercial Services and Municipal Division, Office of Compliance,
Environmental Protection Agency, December 22, 1994.
29. ``Future Nonroad Emission Reduction Credits for Locomotives,''
memorandum from Philip A. Lorang, Director, Emission Planning and
Strategies Division, Office of Air and Radiation, Environmental
Protection Agency, January 3, 1995.
30. ``Credit for the 15 Percent Rate-of-Progress Plans for
Reductions from the Architectural and Industrial Maintenance (AIM)
Coating Rule,'' memorandum from John S. Seitz, Director, Office of Air
Quality Planning and Standards, Environmental Protection Agency, March
22, 1995.
31. ``Fifteen Percent Rate-of-Progress Plans--Additional
Guidance,'' memorandum from John S. Seitz, Director, Office of Air
Quality Planning and Standards, Environmental Protection Agency, May 5,
1995.
32. ``Update on the Credit for the 15 Percent Rate-of-Progress
Plans for Reductions from the Architectural and Industrial Maintenance
Coatings Rule,'' memorandum from John S. Seitz, Director, Office of Air
Quality Planning and Standards, Environmental Protection Agency, March
7, 1996.
33. ``Date by which States Need to Achieve all the Reductions
Needed for the 15% Plan from Inspection and Maintenance (I/M) and
Guidance for Recalculation,'' memorandum from Margo Oge, Director,
Office of Mobile Sources, and John S. Seitz, Director, Office of Air
Quality Planning and Standards, Environmental Protection Agency, August
13, 1996.
34. ``Sample City Analysis: Comparison of Enhanced Inspection and
Maintenance (I/M) Reductions Versus Other 15 Percent Rate of Progress
Plan Measures,'' E.H. Pechan and Associates, December 12, 1996.
35. ``Modeling 15 Percent Volatile Organic Compound (VOC)
Reduction(s) from I/M in 1999: Supplemental Guidance,'' memorandum from
Gay MacGregor, Director, Regional and State Programs Division, and
Sally Shaver, Director, Air Quality Strategies and Standards Division,
Environmental Protection Agency, December 23, 1996.
36. ``15% Volatile Organic Compound (VOC) State Implementation Plan
(SIP) Approvals and the `As Soon As Practicable' Test,'' memorandum
from John S. Seitz, Director, Office of Air Quality Planning and
Standards, and Richard B. Ossias, Deputy Associate General Counsel,
Division of Air and Radiation, Office of General Counsel, Environmental
Protection Agency, February 12, 1997.
For a 15% ROP plan SIP to be approved, the plan must adequately
justify how much emission reduction is needed to achieve 15% emission
reduction by November 15, 1996, and how the plan's control strategy
will secure that reduction. The procedure for calculating the needed
emission reduction is as follows:
(A) Calculate the ``1990 ROP inventory'' by subtracting from the
area's ``1990 base year inventory'' 1 biogenic emissions,
emissions outside of the nonattainment area, and pre-enactment banked
emission credits;
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\1\ Sections 172(c)(3) and 182(a)(1) of the Act require that
nonattainment plan provisions include a comprehensive, accurate
inventory of actual emissions which occurred in 1990 from all
sources of relevant pollutants in the nonattainment area. This
inventory provides an estimate of the amount of VOC and oxides of
nitrogen produced by emission sources such as automobiles,
powerplants and the use of consumer solvents in the household.
Because the approval of such inventories is necessary to an area's
15% ROP plan and attainment demonstration, the emission inventory
must be approved prior to or with the 15% ROP plan submission.
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(B) Calculate the ``1990 adjusted base year inventory'' by
subtracting from the 1990 ROP inventory any emission reductions from
the pre-1990 FMVCP and 1990 RVP Federal regulations which occur between
1990 and 1996; 2
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\2\ The 1990 adjusted base year inventory represents the
``baseline emissions'' from which the 15 percent reduction is to be
calculated, as specified under section 182(b)(1)(B) of the Act.
Section 182(b)(1)(B) defines baseline emissions to mean the total
amounts of actual VOC emissions from all anthropogenic sources in
the ozone nonattainment areas during the calendar year of 1990,
excluding emissions that are eliminated by the pre-1990 FMVCP and
1990 RVP regulations. In the General Preamble, EPA interprets
``calendar year'' emissions to consist of typical ozone season
weekday emissions, based on the fact that the ozone National Ambient
Air Quality Standard (NAAQS) (0.12 parts per million, one-hour
average) is generally exceeded or violated during ozone season
weekdays when ozone precursor emissions and meteorological
conditions are most conducive to ozone formation. Ozone seasons are
typically the summer months.
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(C) Calculate ``15% of adjusted base year emissions'' by
multiplying the 1990 adjusted base year inventory by 15%;
(D) Calculate the ``total required reductions by 1996'' by adding
emission reductions from the pre-1990 FMVCP and 1990 RVP federal rules
to 15% of adjusted base year emissions calculation; 3
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\3\ Under section 182(b)(1)(D), emission reductions pre-1990 and
1990 RVP regulations are not creditable toward meeting 15%. The
emission reductions which occurred by 1996 from these regulations
are added to emissions required to meet 15% to determine the total
amount of emission reduction by 1996 for the area.
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(E) Calculate the ``1996 emissions target level'' by subtracting
from the 1990 ROP base year inventory the total required reductions by
1996;
(F) Calculate the ``1996 projected emission estimate'' by either
adding growth factors to the 1990 adjusted base-year inventory, or
adding growth factors and required emission reductions to the 1990 ROP
inventory; and,
(G) Calculate the ``reduction required by 1996 to achieve 15% net
of growth'' by subtracting the 1996 target emissions level from the
1996 projected emissions level.
In determining what control measures a State can use in its 15% ROP
plan strategy, the Act provides under section 182(b)(1)(C) that
emission reductions from control measures are creditable to the extent
that they have actually occurred before November 15, 1996. In keeping
with this requirement, the General Preamble states that all credited
emission reductions must be real, permanent, and enforceable, and that
regulations needed to implement the plan's control strategy must be
adopted and implemented by the State by November 15, 1996.
IV. Prior Rulemaking Action
On April 3, 1997, EPA published a direct final rulemaking action
approving the Lake and Porter Counties 15% ROP plan and a 3%
contingency measure plan for Lake and Porter Counties (62 FR 15844). As
part of the 15% ROP plan, Indiana also submitted an agreed order
requiring VOC emission controls on Keil Chemical Division, Ferro
Corporation, located in Lake County (Keil). On the same day (April 3,
1997), EPA proposed approval and solicited public comment on these
requested SIP revisions (62 FR 15867). The proposed rule established a
30-day public comment period, noting that if adverse comments were
received regarding the
[[Page 38460]]
direct final rule EPA would withdraw the direct final rule and publish
an additional final rule to address the public comments. The only set
of comments received during the public comment period was from the
Ferro Corporation regarding the Keil agreed order. Because these
comments raised questions about the anticipated emissions reductions of
the agreed order, EPA withdrew the direct final rulemaking on May 23,
1997 (62 FR at 28349).
Indiana originally claimed emission reductions from the Keil agreed
order in the Lake and Porter 15% plan. The July 29, 1994, agreed order
(Cause No. A-2250) requires the facility to meet certain control
requirements. The agreed order was submitted with the 15% ROP plan for
incorporation into the Indiana SIP so that the State could properly
take credit for Keil's emission reductions.
Ferro Corporation's comment supported the Lake and Porter Counties
15% ROP plan, but requested that EPA recognize that Keil's VOC control
installed pursuant to the agreed order has achieved more emission
reductions than required under federal and State control regulations,
and, consequently, the excess emission reductions ``should be credited
as a banked pollutant for the future.'' Ferro Corporation also
indicated that EPA and Indiana are still reviewing Keil's compliance
determination method for the 25 tons per year VOC emission limit under
the agreed order. Ferro requested that EPA agree that Keil should not
be held in violation of the SIP for the 25 tons per year limit if EPA
and Indiana determine that Keil should use a different compliance
determination method.
EPA is currently evaluating the Ferro Corporation comments. To
expedite final approval of the 15% ROP plan, Indiana submitted a letter
on June 13, 1997, which states that it has changed the allocation of
control measure reductions between the Lake and Porter Counties 15% ROP
plan and the 3% contingency plan. The agreed order emission reductions
(5327 lbs VOC per day) will be shifted from the 15% ROP plan to the 3%
contingency plan, and remaining reductions from Inland Steel Flat
Product's coke oven shutdown (759 lbs VOC per day) and the State's
automobile refinishing rule (4619 lbs VOC per day) have been shifted
from the 3% contingency plan to the 15% ROP plan. The amount of
emission reductions claimed for the coke oven shutdown and automobile
refinishing rule was found by EPA to be acceptable in the April 3,
1997, direct final approval.
In today's action, EPA is promulgating final approval of the 15%
ROP plan as adjusted by Indiana's June 13, 1997, letter. Because
shifting emission reduction credit between the two plans does not
affect the implementation of the plans' control measures, nor the
achievement of 15% reduction required under the Act, reproposing
approval of the 15% ROP plan is unnecessary. The 3% contingency plan is
a separate requirement of the Act, and approval of the 3% contingency
plan is not a prerequisite for approval of the 15% ROP plan. EPA will
promulgate a final rulemaking on the 3% contingency plan once EPA
completes its evaluation of the Ferro Corporation comments.
V. Analysis of Lake and Porter Counties 15% ROP Plan
Indiana's 15% ROP summary for Lake and Porter Counties is provided
in the following table. This table has been adjusted from the table
which appeared in the direct final to reflect the State's June 13,
1997, letter. (See part IV of this rulemaking).
15% ROP Summary for Lake and Porter Counties
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Lbs Voc/
Calculation of Reduction needs by 1996 DayAY
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1990 Lake and Porter Counties Total VOC Emissions.......... 424,721
1990 ROP Emissions (Anthropogenic only).................... 381,841
1990-1996 Noncreditable Reductions (Reductions from 1990
RVP and Pre-1990 FMVCP Regulations)....................... 58,838
1990 Adjusted Base Year Emissions (1990 ROP Emissions minus
Noncreditable Reductions)................................. 323,003
15% of Adjusted Base Year Emissions........................ 48,450
Total Required Emission Reductions by 1996 (15% of Adjusted
Base Year Emissions plus Noncreditable Reductions)........ 107,288
1996 Target Level (1990 ROP Emissions minus Total Required
Emission Reductions by 1996).............................. 274,553
1996 Projected Emissions (1990 Adjusted Base Year Emissions
plus Growth Factors)...................................... 342,683
Reduction needs by 1996 to achieve 15 percent net of growth
(1996 Projected Emission minus 1996 Target Level)......... 68,130
Creditable Reduction from Mandatory Controls
Mobile Sources:
Enhanced Vehicle Inspection and Maintenance (I/M)
Program (326 IAC 13-1.1).............................. 6,817
Federal Reformulated Gasoline Program (40 CFR Part 80,
Subpart D)................................................ 14,905
Area Sources:
Stage II Gasoline Vapor Recovery (326 IAC 8-4-6)....... 9,824
Federal Architectural and Industrial Maintenance (AIM)
Coatings Rule......................................... 2,920
Point Sources:
Non-Control Techniques Guideline (CTG) Reasonably
Available Control Technology (RACT) Rule (326 IAC 8-7) 4,559
Subtotal--Reductions from Mandatory Controls........... 39,025
Creditable Reductions From Non-Mandatory Controls
Point Sources:
Coke Oven Battery Shutdowns at Inland Steel Flat
Products (326 IAC 6-1-10.1(k)(5))..................... 23,609
Area Sources:
Automobile Refinishing (326 IAC 8-10).................. 4,679
Residential Open Burning (326 IAC 4-1)................. 929
Subtotal--Reduction From Non-Mandatory Controls........ 29,217
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Total Creditable Reductions from 15% ROP plan........ 68,242
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[[Page 38461]]
A. Calculation of the 1990 Adjusted Base Year Emission Inventory
To determine the 1990 adjusted base year inventory, Indiana used
the 1990 base year emission inventory approved by EPA on January 4,
1995 (60 FR 375), which was found to meet the requirements of sections
172(c)(3) and 182(a)(1) of the Act for Lake and Porter Counties. Total
VOC emissions estimated from this inventory are 424,721 lbs VOC/day.
Indiana subtracted biogenic emissions and emissions from outside Lake
and Porter Counties from the 1990 base year inventory to determine that
the 1990 ROP inventory level is 381,841 lbs VOC/day. No pre-enactment
banked emission credit was included in this inventory.
Indiana used EPA's Mobile Source Emissions Model (MOBILE)5a to
calculate the emission reductions from the pre-1990 FMVCP and 1990 RVP
regulations; these reductions were subtracted from the 1990 ROP
inventory level to find the 1990 adjusted base year inventory level of
323,003 lbs VOC/day. Indiana's documentation includes the actual 1990
motor vehicle emissions using 1990 vehicle miles traveled (VMT) and
MOBILE5a emission factors, and the adjusted emissions using 1990 VMT
and the MOBILE5a emission factors in calendar year 1996 with the
appropriate RVP for the nonattainment area as mandated by EPA. The plan
includes adequate documentation showing how the MOBILE5a model was run
to calculate the expected emission reductions from FMVCP and RVP.
B. 1996 ROP Target Emission Level
To calculate the 1996 target emission level for Lake and Porter
Counties, Indiana first multiplied the 1990 adjusted base year
inventory by 0.15 to determine that the 15% required emission reduction
by 1996 is 48,450 lbs VOC/day. Then, 58,838 lbs VOC/day of reductions
from non-creditable control measures (pre-1990 FMVCP and 1990 RVP) were
added to the 15% required reduction to find that the total required
reductions by 1996 is 107,288 lbs VOC/day. Finally, Indiana subtracted
the 1996 total required emission reductions from the 1990 ROP emission
inventory to determine that the 1996 emission target level for Lake and
Porter Counties is 274,553 lbs VOC/day.
The 15% ROP plan submittal adequately documents the calculations
used to determine the Lake and Porter Counties target level by showing
each step, discussing any assumptions made, and stating the origin of
the numbers used in the calculations.
C. Projected Emission Inventory
To determine the 1996 projected emission inventory, Indiana has
included in the 15% ROP plan the growth factors used together with
documentation for the assumptions made. The point, area, and non-road
mobile source emission inventories were projected using either source
supplied data, population forecasts, historical data, or, where
historical data were unavailable or not suitable to project, the U.S.
Department of Commerce Bureau of Economic Analysis (BEA) regional
growth data were used. The on-road mobile source emission inventory was
projected using MOBILE5a. The State's calculations for growth in the
on-road mobile, off-road mobile, industrial, and area source sectors is
10,180 lbs VOC/day, 1,298 lbs VOC/day, 4,692 lbs VOC/day, and 3,510 lbs
VOC/day, respectively, for a total of 19,680 lbs VOC/day. These growth
estimates were calculated in a manner consistent with EPA's guidance
documents. The projected emissions were added to the 1990 adjusted base
year inventory to determine that the 1990 projected emission inventory
level is 342,683 lbs VOC/day.
D. Creditable Reductions from Control Measures
From the calculation of the 1996 target emission level and 1996
projected emission level, Indiana must reduce emissions in Lake and
Porter Counties by 68,130 lbs VOC/day, to secure the 15% ROP reduction.
The Lake and Porter Counties 15% ROP plan does meet this requirement.
The total creditable emission reductions achieved by the 15% ROP plan
are 68,242 lbs VOC/day. Emission reductions not needed to meet the 15%
ROP requirement will be applied toward achieving post-1996 ROP
reductions, leading to attainment of the ozone air quality standard.
The SIP submittal includes documentation indicating the sources or
source categories which are expected to be affected by each control
measure, the sources' projected 1996 emissions without controls, and
the assumptions used to estimate how much the sources' 1996 emissions
would be reduced by each control measure. These assumptions were
derived primarily from Midwest Research Institute's April 30, 1993,
document entitled ``Support Document for Indiana's Lake and Porter
Nonattainment Area 1996 Rate of Progress Plan,'' which was contracted
by EPA to assist Indiana in developing the 15% ROP and contingency
plans. A review of the emission reduction credit taken for each control
measure follows:
Enhanced I/M Program
Of the 15% ROP plans originally submitted to EPA, most contain
enhanced I/M programs because they achieve more VOC emission reductions
than most, if not all other, control strategies. However, because most
States experienced substantial difficulties implementing enhanced I/M
programs, only a few States are currently actually testing cars using
the original enhanced I/M protocol.
On September 18, 1995 (60 FR 48029), EPA finalized revisions to its
enhanced I/M rule allowing States significant flexibility in designing
I/M programs appropriate for their needs. Further, Congress enacted the
National Highway Systems Designation Act of 1995 (NHSDA), which
provides States with more flexibility in determining the design of
enhanced I/M programs. The substantial amount of time needed by States
to re-design enhanced I/M programs in accordance with the final
enhanced I/M rules and/or the guidance contained within the NHSDA, to
secure State legislative approval when necessary, and set up the
infrastructure to perform the testing program has precluded States from
obtaining emission reductions from enhanced I/M by November 15, 1996.
Given the heavy reliance by many States on enhanced I/M programs to
help satisfy 15% ROP plan requirements, and the recent NHSDA and
regulatory changes regarding enhanced I/M programs, EPA has recognized
that it was not possible for many States to achieve the portion of the
15% ROP reductions that are attributed to enhanced I/M by November 15,
1996. Under these circumstances, disapproval of the 15% ROP plan SIPs
would serve no purpose. Consequently, under certain circumstances, EPA
will allow States that pursue re-design of enhanced I/M programs to
receive emission reduction credit from these programs in their 15% ROP
plans, even though the emission reductions from the I/M program will
occur after November 15, 1996.
Specifically, the EPA will approve 15% ROP SIPs if the emission
reductions from the revised, enhanced I/M programs, as well as from the
other 15% ROP plan measures, will achieve the 15% level as soon after
November 15, 1996, as practicable. To make this ``as soon as
practicable'' determination, the EPA must determine that the 15% ROP
plan contains all VOC control strategies that are practicable for the
nonattainment area in question and that
[[Page 38462]]
meaningfully accelerate the date by which the 15% level is achieved.
The EPA does not believe that measures meaningfully accelerate the 15%
date if they provide only an insignificant amount of reductions.
Indiana's enhanced I/M program for Lake and Porter Counties was
approved by EPA on March 19, 1996 (61 FR 11142), and the State began
testing vehicles under the new program on January 1, 1997. A single
contractor, Envirotest, Inc., operates a test-only centralized network
for inspections and re-inspection. The Indiana I/M program requires
coverage of all 1976 and newer gasoline powered light duty passenger
cars and light duty trucks up to 9,000 pounds Gross Vehicle Weight
Rating (GVWR). All applicable 1981 and newer vehicles will be subject
to a transient, mass emissions tailpipe test that includes the purge
and pressure test. All applicable 1976 through 1980 vehicles will be
subject to a BAR90 single-speed idle test that includes the pressure
test. The I/M contractor has acquired all the emission test sites
required under the State I/M contract, and all the test stations
required have been constructed.
EPA has analyzed Indiana's enhanced I/M program to predict when the
emission reductions claimed in the Lake and Porter Counties 15% ROP
plan for the program will actually be secured. This analysis was based
on the methodology specified in EPA's policy memoranda, ``Date by Which
States Need to Achieve all the Reductions Needed for the 15% Plan from
I/M and Guidance for Recalculation,'' August 13, 1996, and ``Modeling
15% VOC Reduction(s) from I/M in 1999--Supplemental Guidance,''
December 23, 1996. MOBILE5b runs were used to evaluate the credit using
inputs that reflect actual program startup. Some of the input
parameters of the modeling included: a January 1, 1997, program start
date; start-up cutpoints as recommended by EPA; and expected
evaporative test procedures available at start-up. The State has taken
credit in the Lake and Porter Counties 15% ROP plan for 6,817 lbs VOC/
day, or 3.41 tons per day reductions from enhanced I/M. Based on EPA's
analysis, the emission reduction claimed will be secured by November
1999. See EPA's August 13, 1996, policy memorandum titled ``Date by
Which States Need to Achieve all the Reductions Needed for the 15% Plan
from I/M and Guidance for Recalculation,'' for further discussion on
the November 1999 date.
To determine whether there are other available potential control
measures which can meaningfully accelerate the date by which a 15%
reduction in VOC emissions in Lake and Porter Counties can be achieved,
EPA compared the Lake and Porter Counties 15% ROP and 3% contingency
plans with control measures included in 15% ROP plans nation-wide,
which are listed in EPA's report, ``Sample City Analysis: Comparison of
Enhanced I/M Reductions Versus other 15 Percent ROP Plan Measures,''
December 12, 1996, referenced in EPA's policy document ``15% VOC SIP
Approvals and the `As Soon As Practicable' Test,'' February 12, 1997.
Based upon the report, EPA believes there are no other potential
control measures beyond those already included in the Lake and Porter
Counties 15% ROP and 3% contingency plans which can secure a
significant amount of emission reduction before November 1999.
Because Indiana's enhanced I/M program will secure emission
reductions claimed under the Lake and Porter Counties 15% ROP plan by
November 1999, and because there are no other potential control
measures which can meaningfully accelerate the achievement of a 15%
reduction in the counties before November 1999, the EPA finds that the
Lake and Porter Counties 15% ROP plan does secure a 15% emission
reduction as soon as practicable. On this basis, the emission reduction
claimed for the Lake and Porter Counties enhanced I/M program under the
15% ROP plan is approvable.
Federal Reformulated Gasoline Program
The federal reformulated gasoline program (40 CFR part 80, subpart
D) requires gasoline providers in Lake and Porter Counties to sell only
gasoline which meets certain blending requirements to reduce pollution.
The VOC reduction from reformulated gasoline was determined using the
MOBILE5a model to estimate the difference between 1996 highway mobile
source emissions at RVP 9.0, the level of control upon gasoline in Lake
and Porter Counties before the reformulated gasoline requirement, and
1996 highway mobile source emissions with reformulated gasoline.
Indiana has credited a 14,905 lbs VOC/day emission reduction from this
program, which is acceptable.
Stage II Gasoline Vapor Recovery Rule
Indiana's Stage II rule (326 IAC 8-4-6) requires facilities that
sell more than 10,000 gallons of gasoline per month to operate Stage II
vapor recovery systems certified to have a control effectiveness of at
least 95%. Indiana has estimated that the rule has a 84% program in-use
efficiency, accounting for annual inspection program effects and the
exemption of facilities with a monthly gasoline throughput of less than
10,000 gallons. Indiana has credited a 9,824 lbs VOC/day emission
reduction from this rule, which is acceptable.
Federal AIM Coatings Rule
Pursuant to section 183(e) of the Act, EPA proposed on June 25,
1996 (61 FR 32729), a national rule requiring manufacturers of AIM
coatings to meet VOC content limitations. The March 7, 1996, EPA
memorandum ``Update on the Credit for the 15 Percent Rate-of-Progress
Plans for Reductions from the Architectural and Industrial Maintenance
Coatings Rule'' allows States to take credit for a 20% reduction in AIM
coating emissions, even though promulgation of the rule has been
delayed. Based on this policy, Indiana has taken an emission reduction
credit of 2,920 lbs VOC/day, which is acceptable.
Non CTG RACT Rule
Indiana's Non-CTG RACT rule (326 IAC 8-7) requires VOC controls on
sources which have the potential to emit 25 tons of VOC emissions per
year, and are not already covered under an existing CTG or part of a
post-1990 CTG category.4 Sources subject to this rule are
allowed to demonstrate compliance by choosing among any one of the
following three available options: (1) Achieve an overall VOC reduction
in baseline actual emissions of 98% by the addition of add-on controls
or documented reduction in VOC-containing materials used; (2) achieve a
level of reduction equal to 81% of baseline actual emission by the same
means as stated above, where it is demonstrated that a 98% reduction in
source emissions is not achievable; or (3) achieve an alternative
overall emission reduction by the application of RACT as determined by
the State and EPA. Indiana estimates that the rule's overall control
efficiency is 81%, and has a rule effectiveness of 80%. Indiana has
credited 4,559 lbs VOC/day in emission reductions from this rule, which
is acceptable.
---------------------------------------------------------------------------
\4\ RACT is the lowest emission limitation that a particular
source is capable of meeting by the application of control
technology that is reasonably available, considering technological
and economic feasibility. CTGs are EPA documents which provide
recommendations on what EPA considers the presumptive norm for RACT
for particular industries. Indiana was required to adopt the Non-CTG
RACT rule by section 182(b)(2) of the Act.
---------------------------------------------------------------------------
Coke Oven Battery Shutdowns at Inland Steel Flat Products
Inland Steel is required under Indiana's Particulate Matter rule
326 IAC 6-1-10.1(k)(5) to shut down
[[Page 38463]]
numbers 6 through 11 coke batteries before 1996. The 1990 base year
inventory emissions from these coke batteries, 23,609 lbs VOC/day, are
being credited as emission reductions. These reductions are acceptable.
Residential Open Burning Rule
Under Indiana's rule 326 IAC 4-1, residential open burning is
banned in Lake and Porter Counties. Indiana estimates 80% emission
reduction and 80% rule effectiveness from this rule. An emissions
reduction credit of 929 lbs VOC/day from the rule is acceptable.
Automobile Refinishing Rule
The State rule 326 IAC 8-10 requires automobile and mobile
equipment refinishing shops to use lower VOC coatings, less-emitting
spray-gun and spray-gun cleaning equipment, and improved work practices
to reduce VOC. To improve rule effectiveness, this rule also requires
refinishing coating suppliers in the area to sell only coatings which
meet the VOC limits required in the rule. In addition to documentation
contained in the submittal, Indiana submitted supplemental
documentation which indicates that an overall 77.8% emission reduction
can be expected from all the control measures required by this rule,
with 100% rule effectiveness. This documentation has been included in
the docket for this rulemaking. Indiana has taken an emission reduction
credit of 4,679 lbs VOC/day from this rule, which is acceptable.
E. Enforceability Issues
All measures and other elements in the SIP must be enforceable by
the State and EPA (See sections 172(c)(6), 110(a)(2)(A) of the Act, and
57 FR 13556). The EPA criteria addressing the enforceability of SIPs
and SIP revisions were stated in a September 23, 1987 memorandum (with
attachments) from the Assistant Administrator for Air and Radiation
(see 57 FR 13541). Nonattainment area plan provisions must also contain
a program that provides for enforcement of the control measures and
other elements in the SIP (see section 110(a)(2)(C) of the Act).
The control measures included in the Lake and Porter 15% ROP plan
have been fully adopted by Indiana and have been submitted to EPA as
revisions to the State's ozone SIP. The EPA has independently reviewed
each control measure to determine conformance with SIP requirements
under section 110 and part D of the Act, and the overall enforceability
of the measure's requirements. Rulemaking action on each control
measure is as follows:
------------------------------------------------------------------------
Control measure Date of EPA approval
------------------------------------------------------------------------
Enhanced I/M Program (326 IAC 13-1.1).. March 19, 1996 (61 FR 11142).
Reformulated Gasoline (40 CFR Part 80, Federal regulation promulgated
Subpart D). February 16, 1994 (59 FR
7716).
Stage II Gasoline Vapor Recovery (326 April 28, 1994 (59 FR 21942).
IAC 8-4-6).
Federal AIM Coatings Rule.............. Proposed federal regulation for
which Indiana can take credit.
(See memorandum dated March 7,
1996, from John Seitz,
Director, Office of Air
Quality Planning and Standards
to Regional Air Division
Directors).
Non-CTG RACT (326 IAC 8-7)............. July 5, 1995 (60 FR 34857).
Residential Open Burning Ban (326 IAC 4- February 1, 1996 (61 FR 3581).
1).
Auto Refinishing (326 IAC 8-10)........ June 13, 1996 (61 FR 29965).
Coke Oven Battery Shutdown (326 IAC 6-1- June 15, 1995 (60 FR 31412).
10.1(k)(5)).
------------------------------------------------------------------------
F. Transportation Conformity 1996 Mobile Source Emissions Budget
Section 176(c) requires States to submit SIP revisions establishing
the State's criteria and procedures for assessing the conformity of
federal actions (transportation and general) to the SIP's purpose of
eliminating or reducing the severity and number of violations of the
NAAQS and achieving expeditious attainment of such standards, and that
such activities will not: (1) Cause or contribute to any new violation
of any standard in any area, (2) increase the frequency or severity of
any existing violation of any standard in any area, or (3) delay timely
attainment of any standard or any required interim emission reductions
or other milestones in any area. To assure conformity with the SIP,
conformity analyses for transportation projects must take into account
the amount of on-road mobile source emissions that can be emitted in
accordance with SIP emission reduction milestones. For the purposes of
EPA transportation conformity determinations, the 1996 emission level
for on-road mobile sources that is achieved from the 15% ROP plan,
constitutes the 1996 VOC mobile source emission budget for Lake and
Porter Counties. This level, which is derived from MOBILE5a using 1996
projected on-road mobile source emissions with reformulated gasoline
and enhanced I/M, is 50,015 lbs VOC/day. Therefore, final approval of
the 15% ROP plan also approves the 1996 mobile source VOC emission
budget of 50,015 lbs VOC/day.
For years after 1996, conformity determinations addressing VOCs
must demonstrate consistency with this plan revision's motor vehicle
emissions budget, and satisfaction of the build/no-build test, as
defined under 40 CFR part 93.
G. Concluding Statement on 15% ROP Plan
The EPA has reviewed the Lake and Porter Counties 15% ROP plan SIP
revision submitted to EPA as described above, and finds that the plans
satisfy the requirements of section 182(b)(1) of the Act, as well as
EPA guidance for such plans. Therefore, the EPA, in this action, is
approving this plan as a revision to the Indiana ozone SIP.
VI. Final Rulemaking Action
The EPA approves Indiana's 15% ROP plan for Lake and Porter
Counties, as a revision to the SIP. For transportation conformity
purposes, final approval of the 15% ROP plan also approves the 1996
mobile source emission budget of 50,015 lbs VOC/day. This action will
be effective on August 18, 1997.
Nothing in this action should be construed as permitting, allowing
or establishing a precedent for any future request for revision to any
SIP. Each request for revision to the SIP shall be considered
separately in light of specific technical, economic, and environmental
factors and in relation to relevant statutory and regulatory
requirements.
VII. Administrative Requirements
A. Executive Order 12866
The Office of Management and Budget has exempted this regulatory
action from Executive Order 12866 review.
B. Regulatory Flexibility
Under the Regulatory Flexibility Act, 5 U.S.C. section 600 et seq.,
EPA must prepare a regulatory flexibility analysis
[[Page 38464]]
assessing the impact of any proposed or final rule on small entities. 5
U.S.C. sections 603 and 604. Alternatively, EPA may certify that the
rule will not have a significant impact on a substantial number of
small entities. Small entities include small businesses, small not-for-
profit enterprises, and government entities with jurisdiction over
populations of less than 50,000.
SIP approvals under section 110 and subchapter I, part D of the Act
do not create any new requirements, but simply approve requirements
that the State is already imposing. Therefore, because the Federal SIP
approval does not impose any new requirements, the Administrator
certifies that it does not have a significant impact on any small
entities affected. Moreover, due to the nature of the Federal-State
relationship under the Act, preparation of a flexibility analysis would
constitute Federal inquiry into the economic reasonableness of the
State action. The Clean Air Act forbids EPA to base its actions
concerning SIPs on such grounds. Union Electric Co. v. EPA., 427 U.S.
246, 256-66 (1976); 42 U.S.C. 7410(a)(2).
C. Unfunded Mandates
Under section 202 of the Unfunded Mandates Reform Act of 1995,
signed into law on March 22, 1995, EPA must undertake various actions
in association with any proposed or final rule that includes a Federal
mandate that may result in estimated costs to state, local, or tribal
governments in the aggregate; or to the private sector, of $100 million
or more. This Federal action approves pre-existing requirements under
state or local law, and imposes no new requirements. Accordingly, no
additional costs to state, local, or tribal governments, or the private
sector, result from this action.
D. Submission to Congress and the General Accounting Office
Under section 801(a)(1)(A) as added by the Small Business
Regulatory Enforcement Fairness Act of 1996, EPA submitted 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
General Accounting Office prior to publication of the rule in today's
Federal Register. This rule is not a major rule as defined by section
804(2).
E. Petitions for Judicial Review
Under section 307(b)(1) of the Act, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by September 16, 1997. 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, Hydrocarbons,
Intergovernmental relations, Ozone.
Dated: July 8, 1997.
Michelle D. Jordan,
Acting Regional Administrator.
For the reasons stated in the preamble, part 52, chapter I, title
40 of the Code of Federal Regulations is amended as follows:
PART 52--[AMENDED]
1. The authority citation for Part 52 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
2. Section 52.777 is amended by adding paragraph (k) to read as
follows:
Sec. 52.777 Control Strategy: Photochemical Oxidants (hydrocarbon).
* * * * *
(k) On June 26, 1995, and June 13, 1997, Indiana submitted a 15
percent rate-of-progress plan for the Lake and Porter Counties portion
of the Chicago-Gary-Lake County ozone nonattainment area. This plan
satisfies the counties' requirements under section 182(b)(1) of the
Clean Air Act, as amended in 1990.
[FR Doc. 97-18972 Filed 7-17-97; 8:45 am]
BILLING CODE 6560-50-P
