Proposed Rule2025-06617
Air Plan Approval; Indiana; Indiana NOX Emissions Monitoring
Primary source
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Published
April 21, 2025
Issuing agencies
Environmental Protection Agency
Abstract
The Environmental Protection Agency (EPA) is proposing to approve under the Clean Air Act (CAA) a request from the Indiana Department of Environmental Management (IDEM) to revise the Indiana State Implementation Plan (SIP) to incorporate revisions to nitrogen oxides (NO<INF>X</INF>) emissions monitoring, reporting and record keeping requirements for new and existing large non-Electric Generating Units (non-EGUs) affected by the NO<INF>X</INF> SIP Call. This SIP revision would approve monitoring, reporting, and record keeping requirements that are permissible as alternatives under Federal rules for these sources for purposes of the NO<INF>X</INF> SIP Call.
Full Text
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<title>Federal Register, Volume 90 Issue 75 (Monday, April 21, 2025)</title>
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[Federal Register Volume 90, Number 75 (Monday, April 21, 2025)]
[Proposed Rules]
[Pages 16658-16663]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-06617]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R05-OAR-2021-0761; FRL-12258-01-R5]
Air Plan Approval; Indiana; Indiana NOX Emissions Monitoring
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve under the Clean Air Act (CAA) a request from the Indiana
Department of Environmental Management (IDEM) to revise the Indiana
State Implementation Plan (SIP) to incorporate revisions to nitrogen
oxides (NO<INF>X</INF>) emissions monitoring, reporting and record
keeping requirements for new and existing large non-Electric Generating
Units (non-EGUs) affected by the NO<INF>X</INF> SIP Call. This SIP
revision would approve monitoring, reporting, and record keeping
requirements that are permissible as alternatives under Federal rules
for these sources for purposes of the NO<INF>X</INF> SIP Call.
DATES: Comments must be received on or before May 21, 2025.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2021-0761 at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, or via email to
<a href="/cdn-cgi/l/email-protection#fe9f8c8c9fd08d9f8c9f96be9b8e9fd0999188"><span class="__cf_email__" data-cfemail="e786959586c9948695868fa7829786c9808891">[email protected]</span></a>. For comments submitted at <a href="http://Regulations.gov">Regulations.gov</a>, follow
the online instructions for submitting comments. Once submitted,
comments cannot be edited or removed from the docket. EPA may publish
any comment received to its public docket. Do not submit to EPA's
docket at <a href="https://www.regulations.gov">https://www.regulations.gov</a> any information you consider to
be Confidential Business Information (CBI), Proprietary Business
Information (PBI), or other information whose disclosure is restricted
by statute. Multimedia submissions (audio, video, etc.) must be
accompanied by a written comment. The written comment is considered the
official comment and should include discussion of all points you wish
to make. EPA will generally not consider comments or comment contents
located outside of the primary submission (i.e., on the web, cloud, or
other file sharing system). For additional submission methods, please
contact the person identified in the FOR FURTHER INFORMATION CONTACT
section. For the full EPA public comment policy, information about CBI,
PBI, or multimedia submissions, and general guidance on making
effective comments, please visit <a href="https://www.epa.gov/dockets/commenting-epa-dockets">https://www.epa.gov/dockets/commenting-epa-dockets</a>.
FOR FURTHER INFORMATION CONTACT: Cecilia Magos, Air and Radiation
Division (AR18J), Environmental Protection Agency, Region 5, 77 West
Jackson Boulevard, Chicago, Illinois 60604, (312) 886-7336,
<a href="/cdn-cgi/l/email-protection#d7bab6b0b8a4f9b4b2b4bebbbeb697b2a7b6f9b0b8a1"><span class="__cf_email__" data-cfemail="bed3dfd9d1cd90dddbddd7d2d7dffedbcedf90d9d1c8">[email protected]</span></a>. The EPA Region 5 office is open from 8:30 a.m.
to 4:30 p.m., Monday through Friday, excluding Federal holidays.
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA.
I. Background of SIP Submission
CAA section 110(a)(2)(D)(i)(I), often called the ``good neighbor''
provision, requires each State to include provisions in its SIP to
prohibit emissions from within that State that will significantly
contribute to nonattainment or interfere with maintenance of a National
Ambient Air Quality Standard (NAAQS) in a downwind State. On October
27, 1998 (63 FR 57356), EPA published the NO<INF>X</INF> SIP Call,
which addressed the good neighbor provision for the 1979 ozone NAAQS by
requiring eastern States, including Indiana, to submit SIPs that
prohibit excessive emissions of ozone season NO<INF>X</INF> by
implementing statewide NO<INF>X</INF> emissions budgets. The
NO<INF>X</INF> SIP Call was designed to mitigate the impact of
transported NO<INF>X</INF> emissions, one of the precursors of ozone.
As a component of the NO<INF>X</INF> SIP Call, EPA developed the
NO<INF>X</INF> Budget Trading Program (NBTP), a regional allowance
trading program. States could meet most of their obligations under the
NO<INF>X</INF> SIP Call by requiring certain sources to participate in
the NBTP, namely EGUs with capacity greater than 25 megawatts and large
non-EGUs, such as boilers and combustion turbines, with a rated heat
input greater than 250 million British thermal units (MMBtu) per hour.
The NO<INF>X</INF> SIP Call also identified potential reductions from
Portland cement kilns and stationary internal combustion engines.
To implement the requirements of the NO<INF>X</INF> SIP Call for
Indiana, on November 8, 2001 (66 FR 56465), EPA published an action
approving into the SIP the original version of IDEM's rules at 326
Indiana Administrative Code (IAC) 10-3, which established source-by-
source emission rate limits and monitoring requirements for Portland
cement kilns and blast furnace gas-fired boilers, and 326 IAC 10-4,
which required EGUs and certain other non-EGUs in the State to
participate in the NBTP. EPA subsequently approved revised portions of
these rules into the SIP. On December 11, 2003 (68 FR 69025), EPA
approved Indiana rule revisions that changed the regulatory approach
selected by the State for blast furnace gas-fired boilers at two
sources, making such units subject to the NBTP at 326 IAC 10-4 instead
of the source-by-source emission rate limits at 326 IAC 10-3. On
October 1, 2007 (72 FR 55664), EPA approved into the SIP 326 IAC 10-5,
which addressed emissions from stationary internal combustion engines,
as well as associated revisions to 326 IAC 10-3 and 326 IAC 10-4, in
fulfillment of the ``Phase II'' requirements of the NO<INF>X</INF> SIP
Call.
On May 12, 2005 (70 FR 25162), EPA published the Clean Air
Interstate Rule (CAIR), which required eastern States, including
Indiana, to submit SIPs that prohibited emissions consistent with
annual and ozone season NO<INF>X</INF> budgets and annual sulfur
dioxide (SO<INF>2</INF>) budgets. CAIR addressed the good
[[Page 16659]]
neighbor provision for the 1997 ozone NAAQS and 1997 fine particulate
matter (PM<INF>2.5</INF>) NAAQS and was designed to mitigate the impact
of transported NO<INF>X</INF> emissions, a precursor of both ozone and
PM<INF>2.5</INF>, as well as transported SO<INF>2</INF> emissions,
another precursor of PM<INF>2.5</INF>. Upon implementation of the CAIR
trading program for ozone season NO<INF>X</INF> in 2009, EPA
discontinued administration of the NBTP, but the requirements of the
NO<INF>X</INF> SIP Call continued to apply.
To meet the requirements of CAIR, IDEM promulgated rules at 326 IAC
24-1, 326 IAC 24-2, and 326 IAC 24-3 that required EGUs to participate
in the CAIR annual SO<INF>2</INF> and annual and ozone season
NO<INF>X</INF> trading programs. Participation by EGUs in the CAIR
trading program for ozone season NO<INF>X</INF> emissions addressed the
State's obligation under the NO<INF>X</INF> SIP Call for those units.
IDEM also opted to incorporate large non-EGUs previously regulated
under 326 IAC 10-4 into 326 IAC 24-3, to meet the obligations of the
NO<INF>X</INF> SIP Call with respect to those units through the CAIR
trading program as well. On October 22, 2007 (72 FR 59480) EPA
published an action approving portions of 326 IAC 24-1, 326 IAC 24-2,
and 326 IAC 24-3 into the Indiana SIP. On November 29, 2010 (75 FR
72956), EPA published an action approving additional sections of and
revisions to 326 IAC 24-1, 326 IAC 24-2, and 326 IAC 24-3 into the
Indiana SIP, fully addressing the requirements of CAIR, along with
associated revisions to 326 IAC 10-3 and 326 IAC 10-4. The approved
revision to 326 IAC 10-4 added a ``sunset'' clause to all requirements
for Indiana's large EGUs and large non-EGUs under the NBTP in
coordination with the implementation start date for the CAIR ozone
season NO<INF>X</INF> trading program.
CAIR was remanded to EPA by the D.C. Circuit in North Carolina v.
EPA, 531 F.3d 896 (D.C. Cir. 2008), modified on reh'g, 550 F.3d 1176.
On August 8, 2011 (76 FR 48208), acting on the D.C. Circuit's remand,
EPA published the Cross-State Air Pollution Rule (CSAPR), replacing
CAIR and addressing the good neighbor provision for the 1997 ozone
NAAQS, 1997 PM<INF>2.5</INF> NAAQS, and 2006 PM<INF>2.5</INF> NAAQS.
Through Federal Implementation Plans (FIPs), CSAPR required EGUs in
eastern States, including Indiana, to meet annual and ozone season
NO<INF>X</INF> budgets and annual SO<INF>2</INF> budgets implemented
through new trading programs. CSAPR also contained provisions that
would sunset CAIR-related obligations on a schedule coordinated with
the implementation of the CSAPR compliance requirements. After delays
caused by litigation, EPA started implementing the CSAPR trading
programs in 2015, simultaneously discontinuing administration of the
CAIR trading programs. Participation by a State's EGUs in the CSAPR
trading program for ozone season NO<INF>X</INF> generally addressed the
State's NO<INF>X</INF> SIP Call obligations for EGUs. However, CSAPR
did not initially contain provisions allowing States to incorporate
large non-EGUs into that trading program to meet the ongoing
requirements of the NO<INF>X</INF> SIP Call for non-EGUs.
On October 26, 2016 (81 FR 74504), EPA published the CSAPR Update
to address the good neighbor provision for the 2008 ozone NAAQS by
establishing new statewide budgets in eastern States for ozone season
NO<INF>X</INF> emissions. As under the original CSAPR, participation by
a State's EGUs in the new CSAPR trading program for ozone season
NO<INF>X</INF> generally addressed the State's obligations under the
NO<INF>X</INF> SIP Call for EGUs. The CSAPR Update also expanded
options available to States for meeting NO<INF>X</INF> SIP Call
requirements for large non-EGUs by allowing States to incorporate those
units into the new trading program.
On December 17, 2018 (83 FR 64472), EPA approved a November 27,
2017, submission from IDEM requiring EGUs to participate in CSAPR State
trading programs integrated with the Federal CSAPR trading programs and
largely administered by EPA. The State's trading program rules were
codified at 326 IAC 24-5, 326 IAC 24-6, and 326 IAC 24-7. The SIP
revision also removed from the Indiana SIP the regulations at 326 IAC
24-1, 326 IAC 24-2, and portions of 326 IAC 24-3 that had established
the State CAIR trading programs which the CSAPR trading programs
replaced. However, the December 17, 2018, SIP action left in place the
portions of 326 IAC 24-3 establishing ozone season NO<INF>X</INF>
monitoring requirements for large non-EGUs affected under the
NO<INF>X</INF> SIP Call, because at the time of that action no other
SIP-approved rules addressed monitoring requirements for these units
for NO<INF>X</INF> SIP Call purposes.
After evaluating the various options available following
promulgation of the CSAPR Update, IDEM chose to meet NO<INF>X</INF> SIP
Call requirements for existing and new large non-EGUs by adopting a new
rule at 326 IAC 10-2 and revising its rule at 326 IAC 10-3. The new
rule at 326 IAC 10-2 made the portion of the State's NO<INF>X</INF> SIP
Call budget assigned to non-EGUs enforceable without an allowance
trading mechanism and included requirements for monitoring, record
keeping, and reporting in accordance with 40 CFR part 75 to ensure
compliance with the budget. The revised rule at 326 IAC 10-3 provided
source-by-source emission rate limits for certain blast furnace gas-
fired units formerly regulated under the NBTP. In an August 27, 2018,
submission, IDEM requested that EPA approve into the Indiana SIP the
new rule at 326 IAC 10-2 and revised rule at 326 IAC 10-3. IDEM also
requested removal from the SIP of its remaining CAIR rules at 326 IAC
24-3 and its NBTP rule at 326 IAC 10-4.
On July 24, 2020 (85 FR 44738), EPA published a final rule
approving Indiana's request to modify its SIP. Given EPA's approval of
these revisions, the Indiana SIP currently contains a rule at 326 IAC
10-2 that establishes a cap on the collective ozone season
NO<INF>X</INF> mass emissions of most of the affected non-EGUs formerly
covered by the NBTP and CAIR ozone season NO<INF>X</INF> trading
programs and that requires monitoring and reporting for the units in
accordance with 40 CFR part 75.
In September 2019, the D.C. Circuit remanded the CSAPR Update to
EPA in Wisconsin v. EPA, 938 F.3d 303 (D.C. Cir. 2019) (Wisconsin), on
the grounds that the rule did not fully address upwind States' good
neighbor obligations by ``the next applicable attainment date'' of
downwind States. In response to the Wisconsin remand, on April 30, 2021
(86 FR 23054), EPA published the Revised CSAPR Update, in which EPA
promulgated new or amended FIPs for 12 States, including Indiana,
revising the States' emissions budgets for EGUs to address the States'
remaining good neighbor obligations with respect to the 2008 ozone
NAAQS. The new FIP promulgated for Indiana required the State's EGUs to
participate in the Federal CSAPR NO<INF>X</INF> Ozone Season Group 3
Trading Program beginning with the 2021 ozone season and simultaneously
ended EPA's administration of the previously approved State CSAPR
trading program for ozone season NO<INF>X</INF> emissions under 326 IAC
24-6.
On June 5, 2023 (88 FR 36654), EPA published the Good Neighbor Plan
to address the good neighbor obligations of 23 States, including
Indiana, with respect to the 2015 ozone NAAQS. As published, the Good
Neighbor Plan requires EGUs in 22 States, including Indiana, to
participate in a revised version of the CSAPR NO<INF>X</INF> Ozone
Season Group 3 Trading Program with
[[Page 16660]]
updated budgets.\1\ For States such as Indiana with pre-existing good
neighbor obligations to reduce ozone season NO<INF>X</INF> emissions
from EGUs with respect to the 1997 ozone NAAQS under the NO<INF>X</INF>
SIP Call (or with respect to the 2008 ozone NAAQS under the CSAPR
Update or the Revised CSAPR Update), EPA deems participation of the
States' EGUs in the Good Neighbor Plan's trading program sufficient to
meet those additional obligations. See 88 FR 36654 at 36844.
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\1\ On June 27, 2024, the United States Supreme Court granted
emergency applications seeking a stay of the Good Neighbor Plan and
ordered that the rule may not be enforced against the stay
applicants, including Indiana, pending judicial review. Ohio v. EPA,
144 S. Ct. 2040, 2058 (2024). On August 5, 2024, EPA released a
memorandum describing how the Agency plans to comply with the
Supreme Court's order while ensuring that the obligations of Indiana
and other States to address interstate ozone pollution under
previous rules continue to be met. See <a href="http://www.epa.gov/system/files/documents/2024-08/gnp-stay-policy-memo-08-05-2024-signed.pdf">www.epa.gov/system/files/documents/2024-08/gnp-stay-policy-memo-08-05-2024-signed.pdf</a>.
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As a result of the series of Federal and State actions described in
the preceding paragraphs of this section, Indiana is meeting its
obligations under the NO<INF>X</INF> SIP Call to reduce NO<INF>X</INF>
emissions by subjecting its EGUs to the CSAPR trading program for ozone
season NO<INF>X</INF> and as to most of the State's large non-EGUs by
the emissions cap and monitoring requirements under the SIP-approved
State rule at 326 IAC 10-2. The current regulations at 326 IAC 10-2 for
Indiana's large non-EGUs require the affected large non-EGUs to
monitor, report and keep records of their mass emissions of ozone
season NO<INF>X</INF> in accordance with 40 CFR part 75.
On March 8, 2019 (84 FR 8422), EPA published final amendments to
the NO<INF>X</INF> SIP Call regulations giving States flexibility to
authorize other monitoring, record keeping and reporting requirements
as alternatives to the requirements of 40 CFR part 75 for large non-
EGUs for purposes of the NO<INF>X</INF> SIP Call. Ultimately, such
alternate monitoring requirements could be made available to sources
through approval by EPA of States' revisions to their SIPs. The Indiana
submissions dated November 27, 2017, and August 27, 2018, predated the
March 8, 2019, publication of EPA's amendments to the NO<INF>X</INF>
SIP Call's monitoring requirements and therefore did not include
provisions that would allow non-EGUs subject to the new rule at 326 IAC
10-2 to meet the NO<INF>X</INF> SIP Call's monitoring requirements
using approaches other than part 75 monitoring.
II. Analysis of This SIP Submission by EPA
Indiana's October 21, 2021, submission requests that EPA approve
into Indiana's SIP revisions to the rule at 326 IAC 10-2 that already
addresses ongoing NO<INF>X</INF> SIP Call requirements with respect to
most of the State's affected large non-EGUs. The purpose of the
revisions is to allow alternative NO<INF>X</INF> monitoring, record
keeping and reporting requirements for Indiana's large non-EGUs as
permitted under the NO<INF>X</INF> SIP Call amendments that EPA
finalized in March 2019. The revisions would be implemented primarily
through the addition of a new rule section at 326 IAC 10-2-8.5
concerning alternative NO<INF>X</INF> monitoring and reporting
requirements and secondarily through conforming changes to the rule's
existing monitoring and reporting provisions at 326 IAC 10-2-3, 326 IAC
10-2-4, and 326 IAC 10-2-8. Additionally, Indiana's submission includes
a demonstration under section 110(l) of the CAA intended to show that
this SIP revision does not interfere with any applicable CAA
requirement.
A. Indiana's New and Revised Rule Sections
The rule 326 IAC 10-2 pertains to the State's ongoing
NO<INF>X</INF> SIP Call obligations with respect to most of the State's
affected large non-EGUs under the NO<INF>X</INF> SIP Call. Concerning
the ongoing NO<INF>X</INF> SIP Call requirement for emissions
monitoring, the revisions to Indiana's rule at 326 IAC 10-2 that the
State is requesting be approved into the SIP would make it possible for
non-EGUs subject to that rule to monitor and report their ozone season
NO<INF>X</INF> emissions using approaches other than those contained in
40 CFR part 75. The requested revisions would have no effect on
monitoring and reporting requirements for the State's affected EGUs
under the NO<INF>X</INF> SIP Call, because the EGUs would remain
subject to part 75 monitoring and reporting requirements under the
applicable CSAPR trading program for ozone season NO<INF>X</INF>
emissions.
The alternative monitoring and reporting requirements for non-EGUs
are set forth in new rule section 326 IAC 10-2-8.5, which is structured
into paragraphs (a) through (h). Paragraph (a) generally provides that
a source may use an alternative monitoring method consistent with the
remaining requirements of the section if IDEM approves the method into
the source's operating permit as sufficient to demonstrate compliance
with the emissions budget for non-EGUs under 326 IAC 10-2-9.
Paragraph (b) requires a large non-EGU seeking authorization to use
alternative monitoring to submit an application for a new or amended
operating permit in accordance with 326 IAC 2.
Paragraph (c) specifies the permissible alternative monitoring
methods and identifies the required contents of an application. Under
section 326 IAC 10-2-8.5(c)(1), the specified permissible methods
include: (A) monitoring of NO<INF>X</INF> emission rates in accordance
with 40 CFR part 60 (in combination with the use of other identified
information on heat input to compute NO<INF>X</INF> mass emissions in
tons, in compliance with the requirements of paragraphs (c)(5) and
(e)(4)); (B) monitoring of NO<INF>X</INF> mass emissions in accordance
with 40 CFR part 75, but with reporting to IDEM instead of to EPA; (C)
monitoring of NO<INF>X</INF> emission rates in accordance with 40 CFR
part 60, combined with heat input and fuel use data monitored using a
fuel flowmeter to compute NO<INF>X</INF> mass emissions; and (D)
monitoring of heat input and fuel use combined with an approved
emission factors for NO<INF>X</INF> emissions rates to compute
NO<INF>X</INF> mass emissions, where liquid or gaseous fuel usage must
be measured using meters calibrated to levels of accuracy specified in
the manufacturer's procedures or in listed provisions of 40 CFR part 75
or 40 CFR part 98. Under section 326 IAC 10-2-8.5(c)(2), for all
methods, the application must include descriptions of the procedures
for obtaining, recording and quality-assuring data, accounting for
periods of missing data, and avoiding any gaps in collection and
reporting of ozone period NO<INF>X</INF> mass emissions. Under section
326 IAC 10-2-8.5(c)(3), for reporting of emission monitoring data, the
owner or operator must comply with the requirements of paragraph (e)
described below. Under section 326 IAC 10-2-8.5(c)(4), for the method
involving use of approved emission factors, the application must
include an analysis supporting the potential emission factors based on
EPA AP-42 emission factors, stack test data obtained within the two-
year period before the application date (if available), representative
data obtained from continuous emissions monitoring systems (CEMS), or
other relevant data. Under section 326 IAC 10-2-8.5(c)(5), for the
methods that involve monitoring of NO<INF>X</INF> emission rates in
accordance with 40 CFR part 60, the application must explain how the
emission rate data will be combined with other data to determine
NO<INF>X</INF> mass emissions in tons per ozone control period. Under
section 326 IAC 10-2-8.5(c)(6), if the use of alternative monitoring
and reporting is requested to begin within an ozone control period, the
application must include a description of the transition
[[Page 16661]]
process to ensure there are no gaps in data collection and reporting of
ozone control period NO<INF>X</INF> emissions.
Paragraph (d) provides that the alternative monitoring method may
be used only after issuance of an operating permit in accordance with
326 IAC 2 specifying the applicable requirements for one of the
permissible methods under paragraph (c).
Paragraph (e) sets forth ongoing requirements for use of an
alternative monitoring method, including compliance with all terms and
conditions specified in the operating permit, installation of all
required data collection and recording systems required for alternative
monitoring, recording and reporting of data from the monitoring systems
as required by the operating permit, reporting of NO<INF>X</INF> mass
emissions in tons determined in accordance with the approved procedures
for each ozone season to IDEM by April 15 of the following year, and
record keeping requirements that include the maintenance of records for
at least five years in accordance to the terms and conditions of the
operating permit, made available to the department upon request. For
the method involving approved emission factors, the paragraph also
requires stack tests at least every five years, including an initial
stack test within 90 days of permit issuance if the permit application
did not include data from a stack test conducted within the two years
preceding the application date. All stack test results must be reported
to IDEM within 45 days of the test, and if the results of any stack
test indicate that an emissions factor may require upward adjustment,
the owner or operator must submit an application for a modification to
the operating permit within 60 days of receiving the test results.
Paragraph (f) prohibits operation of a large affected unit without
accounting for all ozone season NO<INF>X</INF> emissions in accordance
with section 326 IAC 10-2-8.5 and generally prohibits discontinuation
of any component of the monitoring system used under the section,
except outside the ozone season when a unit is transitioning to
compliance with the default monitoring and reporting requirements under
sections 326 IAC 10-2-3 through 8.
Paragraph (g) states that section 326 IAC 10-2-8.5 does not
authorize exceptions or alternatives to any requirements of 40 CFR part
75 that may apply to a source under a different legal authority.
Paragraph (h) provides for IDEM to annually report to EPA all
NO<INF>X</INF> emissions reported to IDEM under section 326 IAC 10-2-
8.5 in accordance with 40 CFR 51.122(c)(1)(i).
In addition to the new section 326 IAC 10-2-8.5 setting forth
permissible alternative monitoring and reporting requirements,
Indiana's SIP submission includes conforming revisions and other minor
revisions to existing rule provisions at 326 IAC 10-2-3, 326 IAC 10-2-
4, and 326 IAC 10-2-8. The conforming revisions generally provide that
the otherwise applicable requirements under sections 326 IAC 10-3
through 10-8 to monitor and report ozone season NO<INF>X</INF>
emissions in accordance with 40 CFR part 75 do not apply to a large
non-EGU that is instead using an approved alternative monitoring and
reporting method under 326 IAC 10-2-8.5. The other minor revisions
include insertion of an explanatory phrase for an existing cross-
reference in 326 IAC 10-2-3(a), correction of the word ``ozone'' to the
word ``oxygen'' in 326 IAC 10-2-3(b)(1)(E), and insertion of the word
``ozone'' before ``control period'' and substitution of the rule's
actual August 26, 2018, effective date for the phrase ``the effective
date of this rule'' in several locations in 326 IAC 10-2-4 and 8.
B. Evaluation by EPA
Under the ongoing requirements of the NO<INF>X</INF> SIP Call, the
Indiana SIP must: (1) include enforceable control measures for ozone
season NO<INF>X</INF> mass emissions from existing and new large EGUs
and large non-EGUs that the State relied on to achieve emission
reductions to meet its statewide NO<INF>X</INF> budget and (2) require
those sources to monitor and report ozone season NO<INF>X</INF> mass
emissions, which may be in accordance with 40 CFR part 75. The State's
ongoing NO<INF>X</INF> SIP Call obligations as to the State's EGUs,
both with respect to enforceable control measures and with respect to
emissions monitoring and reporting, are being met by the continued
participation of the State's EGUs in a CSAPR ozone season
NO<INF>X</INF> trading program. Under the existing approved provisions
of Indiana's SIP, the State's ongoing NO<INF>X</INF> SIP Call
obligations as to the State's non-EGUs formerly covered by the
NO<INF>X</INF> Budget Trading Program (with the exception of certain
units addressed separately) \2\ are addressed by the provisions of 326
IAC 10-2. Existing rule section 326 IAC 10-2-9 addresses the
requirement for enforceable control measures for non-EGUs by
establishing an emissions budget and would not be changed under
Indiana's requested revisions. Existing rule sections 326 IAC 10-2-3
through 326 IAC 10-2-8 address the monitoring and reporting
requirements for non-EGUs by requiring the affected units to meet the
monitoring and reporting requirements of 40 CFR part 75. Indiana's
requested revisions would allow the monitoring and reporting
requirements for non-EGUs to be met through alternative approaches, as
is now permitted under EPA's 2019 amendments to the NO<INF>X</INF> SIP
Call regulations.
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\2\ Indiana's blast furnace gas-fired units that formerly would
have been covered by the NO<INF>X</INF> Budget Trading Program are
now subject to source-by-source emission rate limits under 326 IAC
10-3. See 85 FR 10064 at 10067-68.
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In EPA's rulemaking amending the NO<INF>X</INF> SIP Call's
monitoring requirements at 40 CFR 51.121(i)(4), EPA observed that,
under 40 CFR 51.121(i), the principal criterion for approval of
monitoring and reporting requirements for purposes of the
NO<INF>X</INF> SIP Call following the amendments would be that the
requirements must be sufficient to determine whether sources are in
compliance with the control measures adopted to achieve the required
emissions reductions.\3\ EPA noted that for purposes of demonstrating
the sufficiency of the monitoring and reporting requirements, a State
generally would be able to cite the same types of data (e.g., data
indicating substantial compliance margins) that EPA cited to support
finalizing the amendments to the NO<INF>X</INF> SIP Call
regulations.\4\ In addition, EPA pointed out the need to consider
whether the State's regulation contains provisions to avoid gaps in
required monitoring and whether any monitoring approach that uses
emission factors is designed to avoid any bias toward understatement of
emissions.\5\
---------------------------------------------------------------------------
\3\ See 84 FR 8422 at 8428-29.
\4\ Id. n. 30.
\5\ Id.
---------------------------------------------------------------------------
In Indiana's case, the relevant control measure is the collective
cap of 8,008 tons of ozone seasons NO<INF>X</INF> emissions established
for the set of existing and new non-EGUs in 326 IAC 10-2-9(a). Since
2019, the highest collective amount of ozone season NO<INF>X</INF>
emissions for Indiana's non-EGUs subject to this cap was 2,910 tons,
indicating a compliance margin of more than two times emissions levels.
For the 2023 ozone season, the collective ozone season NO<INF>X</INF>
emissions for this set of units was 2,251 tons, indicating a compliance
margin of more than three times the most recent emissions levels. See
emissions data at <a href="https://campd.epa.gov/data">https://campd.epa.gov/data</a>.
While the alternative monitoring requirements available under
Indiana's rule would not provide the same degree of detailed reporting
or quality
[[Page 16662]]
assurance as 40 CFR part 75 monitoring data and may therefore be more
likely to overstate or understate actual emissions to some degree,
there is nothing in Indiana's rule suggesting that the data obtained
using the alternative monitoring methodologies would be biased toward
understatement of emissions. As discussed above, several of the
permissible alternative monitoring methods would require the use of
CEMS to determine the NO<INF>X</INF> emission rate component of the
reported NO<INF>X</INF> mass emissions. In the case of the alternative
monitoring method that would allow the use of emission factors instead
of CEMS, the rule requires stack testing at least every five years to
verify the continued representativeness of the approved emission
factors and it includes provisions to address cases where the test
results indicate that an emission factor may no longer be
representative. Further, the rule requires procedures to account for
emissions during periods of missing data and procedures to avoid data
gaps during the transition from 40 CFR part 75 monitoring to
alternative monitoring. Given the substantial compliance margin in this
instance, EPA believes that the data monitored and reported under
Indiana's alternative monitoring requirements would be sufficient to
determine whether the State's non-EGUs are in compliance with their
collective emissions cap.
EPA proposes to find that the monitoring and reporting provisions
of Indiana's 326 IAC 10-2 as revised by the addition of new rule
section 326 IAC 10-2-8.5, with conforming revisions to rule sections
326 IAC 10-2-3, 326 IAC 10-2-4, and 326 IAC 10-2-8, would meet
Indiana's ongoing requirements under 40 CFR 52.121(i)(1) for monitoring
and reporting provisions for existing and new large non-EGUs sufficient
to demonstrate compliance with the control measure already approved for
these units for NO<INF>X</INF> SIP Call purposes. EPA is therefore
proposing to approve these rule revisions into the Indiana SIP.
C. Section 110(l) Demonstration
CAA section 110(l) provides that EPA cannot approve a SIP revision
if the revision would interfere with attainment or maintenance of the
NAAQS, reasonable further progress, or any other applicable requirement
of the CAA. Indiana's submission includes a demonstration intended to
show that CAA section 110(l) does not prohibit approval of this SIP
revision.
As noted in section II.B of this document, this proposed action
would not alter the NO<INF>X</INF> SIP Call emission budgets that apply
to emissions in the State. Further, the alternative monitoring
requirements at 326 IAC 10-2-8.5 would be permanent, enforceable and
sufficient to determine whether Indiana's large non-EGUs are in
compliance with the control measures adopted to meet the NO<INF>X</INF>
SIP Call's emissions requirements. Given continued implementation of
SIP requirements governing the unchanged amounts of allowable
emissions, accompanied by replacement monitoring requirements
sufficient to ensure compliance with the unchanged emissions
requirements, this SIP revision is not expected to result in increases
in emissions that could interfere with other statutory or regulatory
requirements. Importantly, the substitute measure ensures compliance
with the existing NO<INF>X</INF> SIP Call budgets and thus will
preserve the status quo in air quality.
For these reasons, EPA proposes to find that the revisions will not
interfere with attainment and maintenance of the NAAQS, reasonable
further progress, or any other applicable requirement of the CAA. EPA
is therefore proposing to find that CAA section 110(l) does not
prohibit approval of this SIP revision.
III. What action is EPA taking?
EPA is proposing to approve revisions concerning NO<INF>X</INF>
requirements from large non-EGUs by the State. The SIP submission
includes new rule section 326 IAC 10-2-8.5 with alternative monitoring,
record keeping and reporting methods, as well as revisions to rule
sections 326 IAC 10-2-3, 326 IAC 10-2-4, and 326 IAC 10-2-8 reflecting
language corrections and conditions for the adoption of approved
alternative monitoring and reporting requirements as written in new
rule section 326 IAC 10-2-8.5.
IV. Incorporation by Reference
In this rule, EPA is proposing to include in a final EPA rule
regulatory text that includes incorporation by reference. In accordance
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by
reference Indiana rule(s) 326 IAC 10-2-3, 326 IAC 10-2-4, 326 IAC 10-2-
8, and 326 IAC 10-2-8.5, effective October 14, 2021, discussed in
section III of this preamble. EPA has made, and will continue to make,
these documents generally available through <a href="http://www.regulations.gov">www.regulations.gov</a> and at
the EPA Region 5 Office (please contact the person identified in the
FOR FURTHER INFORMATION CONTACT section of this preamble for more
information).
V. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the 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:
<bullet> 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);
<bullet> Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
<bullet> 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.);
<bullet> 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);
<bullet> Does not have federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
<bullet> Is not subject to Executive Order 13045 (62 FR 19885,
April 23, 1997) because it approves a State program;
<bullet> Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001); and
<bullet> 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.
In addition, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian Tribe has
demonstrated that a Tribe has jurisdiction. In those areas of Indian
country, the rule does not have Tribal implications and will not impose
substantial direct costs on Tribal governments or preempt Tribal law as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Ozone,
Particulate
[[Page 16663]]
matter, Reporting and recordkeeping requirements, Sulfur oxides.
Dated: April 7, 2025.
Cheryl Newton,
Acting Regional Administrator, Region 5.
[FR Doc. 2025-06617 Filed 4-18-25; 8:45 am]
BILLING CODE 6560-50-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.