[Federal Register Volume 71, Number 188 (Thursday, September 28, 2006)]
[Notices]
[Pages 56971-56973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15937]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[IN 168-1; FRL-8224-1]


Approval of the Clean Air Act Section 112(l) Delegation of 
National Emission Standards for Hazardous Air Pollutants for Boat 
Manufacturing; Indiana

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This document announces that, upon signature of this notice, 
EPA approved a request from the Indiana Department of Environmental 
Management (IDEM) for delegation of authority to implement and enforce 
National Emission Standards for Hazardous Air Pollutants (NESHAP) for 
Boat Manufacturing through a state rule which adjusts the maximum 
achievable control technology (MACT) standard for boat manufacturing. 
Pursuant to the Clean Air Act (CAA) and the NESHAP provisions, states 
may seek approval of state rules which make pre-approved adjustments to 
a MACT standard if the state rule is unambiguously no less stringent 
than the Federal rule. On June 20, 2005, IDEM requested approval to 
adjust the NESHAP for boat manufacturing. EPA reviewed this request and 
found that it satisfied the requirements for approval under the Federal 
provision which allows for delegation of an adjusted NESHAP, ``Approval 
of State requirements that adjust a section 112 rule.'' Therefore, upon 
the signature of this notice, EPA delegated to IDEM the authority to 
implement and enforce the NESHAP for boat manufacturing, through IDEM's 
rule for boat manufacturing.

ADDRESSES: The documents relevant to this action are available for 
public inspection during normal business hours at the following 
address: Environmental Protection Agency, Region 5, Air and Radiation 
Division, 77 West Jackson Boulevard, Chicago, Illinois 60604. This 
facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, 
excluding Federal holidays. We recommend that you telephone Sam 
Portanova, Environmental Engineer, at (312) 886-3189 before visiting 
the Region 5 office.

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

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 Action Is EPA Taking?
II. Under What Authority Is EPA Approving This Delegation?
III. How Does 326 IAC 20-48 Meet the Requirements for Delegation?
IV. What Is the Effect of This Delegation?

I. What Action Is EPA Taking?

    Pursuant to section 112(l) of the CAA and 40 CFR 63.92, EPA 
approved IDEM's request that EPA delegate the authority to implement 
and enforce 40 CFR part 63, subpart VVVV, NESHAP for boat 
manufacturing, through Indiana rule 326 IAC 20-48, which adjusts the 
Federal boat manufacturing MACT. This approval makes the Indiana rule, 
which is unambiguously no less stringent than the Federal MACT, 
federally enforceable in Indiana. EPA also approved the delegation of 
the applicable Category I authorities for this MACT standard as set 
forth at 40 CFR 63.91(g).

II. Under What Authority Is EPA Approving This Delegation?

    Pursuant to CAA section 112(l), a state may develop and submit to 
EPA for approval a program for the partial or complete delegation of 
section 112 rules. EPA may approve state rules or programs which 
either: (1) Implement and enforce section 112 rules as promulgated by 
EPA (``straight delegation''); (2) implement and enforce state rules 
which adjust section 112 rules; (3) implement and enforce state rules 
which substitute for section 112 rules. The Federal regulations 
governing EPA's approval of state rules or programs under section 
112(l) are located at 40 CFR part 63, subpart E.
    Currently, IDEM has an EPA-approved program for the straight 
delegation of MACT standards. EPA approved IDEM's program of delegation 
for part 70 sources on November 14, 1995 (60 FR 57118). EPA approved 
IDEM's expansion of its program of delegation to non-part 70 sources on 
July 8, 1997 (62 FR 36460). Pursuant to the approved straight 
delegation program, EPA has approved the straight delegation of 
numerous MACT standards to IDEM (see 62 FR 36460 (7/8/1997), 65 FR 
17264 (3/31/2000), 69 FR 22508 (4/26/2004), and 71 FR 2225 (1/13/
2006)).
    By letter dated June 20, 2005, IDEM requested approval of 
delegation of authority to implement and enforce 40 CFR part 63, 
subpart VVVV, the boat manufacturing MACT, through a State rule which 
adjusts the MACT standard. The criteria for EPA's approval of state 
rules which adjust section 112 rules are set forth at 40 CFR 63.92. In 
general, adjustments to section 112 MACT standards must be 
unambiguously no less stringent than the Federal rule and be limited to 
certain pre-approved matters. More specifically, Section 63.92(b) 
requires that the state demonstrate the following: (1) The State 
program meets the criteria of section 63.91, which provides for the 
straight delegation of section 112 rules; (2) the public has had 
adequate notice and opportunity to submit written comment on the state 
requirements which adjust the section 112 rule; (3) the adjustment to 
the section 112 rule results in requirements that are unequivocally no 
less stringent than the Federal rule with respect to: (a) 
Applicability; (b) level of control for each affected source and 
emission point; (c) compliance and enforcement measures; (d) dates of 
compliance. Further, Section 63.92(b)(3) only allows certain pre-
approved adjustments, including the following: (1) Lowering a required 
emission rate; (2) adding a design, work practice, operational 
standard; (3) increasing a required control efficiency; (4) increasing 
the frequency of required

[[Page 56972]]

reporting, testing, sampling or monitoring.
    If the above criteria are met, EPA will approve the delegation of a 
MACT standard through a state rule which adjusts the standard. Because 
EPA has previously noticed and provided opportunity for comment on the 
adjustment procedure, including the list of allowable adjustments, no 
further notice or opportunity for comment is required. See 58 FR 62262 
(November 26, 1993). The delegation is effective upon the signature of 
the Federal Register notice. CAA section 63.92(a)(3). See 65 FR 55837 
(September 14, 2000)

III. How Does 326 IAC 20-48 Meet the Requirements for Delegation?

    IDEM's boat manufacturing rule incorporates by reference the 
majority of the provisions of the Federal boat manufacturing NESHAP. 
However, IDEM's rule adjusts certain provisions of the Federal boat 
manufacturing NESHAP. As shown below, IDEM has demonstrated that its 
adjustments are unequivocally no less stringent than the Federal MACT 
provisions. The adjustments meet the criteria set forth in 40 CFR 
63.92(b) for state rules which adjust a MACT standard.

A. The Boat Manufacturing NESHAP

    The boat manufacturing MACT, which IDEM seeks to adjust, was 
proposed in the Federal Register on July 14, 2000 (65 FR 43841) and 
promulgated on August 22, 2001 (66 FR 44232). EPA published a 
correction to this notice on October 3, 2001 (66 FR 50504).
    In general, the NESHAP for boat manufacturing facilities 
establishes emission standards for new and existing boat manufacturing 
facilities with resin and gel coat operations, carpet and fabric 
adhesive operations, or aluminum recreational boat surface coating 
operations.

B. How Does the State Program Meet the Requirements of 40 CFR 63.91?

    40 CFR 63.92(b) provides that a state which seeks delegation of the 
authority to implement and enforce a Section 112 rule through a state 
rule which adjusts the Federal rule must first meet the criteria of 40 
CFR 63.91(d). 40 CFR 63.91(d) sets forth the ``up-front'' approval 
requirements for the ``straight'' delegation of Federal MACT standards 
as promulgated. Once approved, a state need only reference the earlier 
approval of the criteria. Based on prior program submittals and 
approvals for IDEM's Title V air permit and Section 112 delegation 
program, IDEM has met the requirements specified in 40 CFR 63.91(d).

C. How Does the State Demonstrate That the Public Has Had Adequate 
Notice and Opportunity To Submit Written Comments on the State 
Requirements?

    40 CFR 63.92(b)(1) requires that a state seeking delegation under 
this section demonstrate that the public has had adequate notice and 
opportunity to comment on the state requirements. Title 13 of the 
Indiana Code (IC) contains statutory requirements for the environmental 
rulemaking process. IC 13-14-9 specifies requirements for providing 
opportunities for public comment during this process. Opportunities for 
comment were made available through two published notices for comment 
and two public hearings. Therefore, IDEM has met the requirements of 40 
CFR 63.92(b)(1).

D. How Does the State Demonstrate That the Adjustments Pertain to 
Certain Pre-Approved Matters and Are Unequivocally No Less Stringent 
Than the Federal Rule?

    40 CFR 63.92(b)(2) requires that each state adjustment to a Federal 
Section 112 rule be unequivocally no less stringent than the Federal 
rule with respect to: Applicability; level of control for each affected 
source and emission point; compliance and enforcement measures; and 
compliance dates. Further, 40 CFR 63.92(b)(3) identifies those limited 
areas in which Federal Section 112 rules can be adjusted. Those limited 
adjustments include: Lowering a required emission rate; adding a 
design, work practice, operational standard, emission rate or other 
such requirement; increasing the frequency of required reporting, 
testing, sampling or monitoring.
    IDEM incorporated by reference the provisions of 40 CFR part 63, 
subpart VVVV, as promulgated, except for certain limited provisions 
which are allowable adjustments under 40 CFR 63.92(b)(3). As described 
below, IDEM has demonstrated that those provisions that were adjusted 
meet the criteria of 63.92(b)(2) and (3).
1. How are the State emission limit adjustments unequivocally no less 
stringent than the MACT standard?
    Table 2 of subpart VVVV includes the following limits:

------------------------------------------------------------------------
                                                   You must not exceed
                                   And this       this weighted-average
     For this operation--         application      organic HAP content
                                   method--          (weight percent)
                                                      requirement--
------------------------------------------------------------------------
Pigmented gel coat operations  Any method......                       33
Clear gel coat operations....  Any method......                       48
Tooling gel coat operations..  Any method......                       40
------------------------------------------------------------------------

    326 IAC 20-48-2 adjusts these limits as follows:

------------------------------------------------------------------------
                                                   You must not exceed
                                   And this       this weighted-average
     For this operation--         application      organic HAP content
                                   method--          (weight percent)
                                                      requirement--
------------------------------------------------------------------------
Pigmented gel coat operations  Atomized (spray)                       33
Clear gel coat operations....  Atomized (spray)                       48
Tooling gel coat operations..  Atomized (spray)                       40
Pigmented gel coat operations  Nonatomized                            40
                                (nonspray).
Clear gel coat operations....  Nonatomized                            55
                                (nonspray).
Tooling gel coat operations..  Nonatomized                            54
                                (nonspray).
------------------------------------------------------------------------


[[Page 56973]]

    When EPA developed the boat manufacturing NESHAP, it was not 
possible to apply gel coat using a nonatomized application method. 
Since the rule was promulgated, such technology has been developed. 
Nonatomized application has shown significant emissions reductions from 
atomized application methods.
    The Indiana rule provides an incentive for the usage of nonatomized 
application technology by providing a higher allowable HAP content in 
gel coats. Despite the higher allowable HAP content, the requirement to 
use nonatomized application technology will result in a lower level of 
HAP emissions. This is demonstrated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                     Emission       Nonatomized      Emission
                                                  Atomized limit   factor  (lbs/       limit       factor  (lb/
                                                     (percent)       ton) \1\        (percent)       ton) \1\
----------------------------------------------------------------------------------------------------------------
Pigmented.......................................              33             294              40             259
Clear...........................................              48             605              55             395
Tooling.........................................              40             439              54            386
----------------------------------------------------------------------------------------------------------------
\1\ Calculated using the Unified Emission Factors for Open Molding Composites.

    Therefore, Indiana's emission limit adjustments are unequivocally 
no less stringent than the Federal rule.
    In addition to the emission limit adjustments, the Indiana rule 
(326 IAC 20-48-1(d)) lists the following references or methods to 
estimate emissions:
    (1) ``Unified Emission Factors for Open Molding Composites,'' July 
2001 (except use of controlled spray emission factors must be approved 
by the IDEM commissioner and U.S. EPA);
    (2) ``Compilation of Air Pollution Emission Factors AP-42,'' as 
defined in 326 IAC 1-2-20.5 (except emissions from hand layup and spray 
layup operations must be calculated using emission factors referenced 
in (1) above or site-specific values using information in (3) below);
    (3) Site-specific values or other means of quantification provided 
the site-specific values and the emission factors are acceptable to the 
IDEM commission and U.S. EPA.
    This rule adjustment does not create a credible evidence issue 
because it includes language to allow ``other means of quantification'' 
if necessary. Therefore, this adjustment is unequivocally no less 
stringent than the Federal rule.
2. How are the State adjustments which add work practice standards and 
operator training requirements unequivocally no less stringent than the 
MACT standard?
    The Indiana rule (326 IAC 20-48-3) adds work practice standards 
that are not included in the Federal NESHAP. The work practice 
standards in the Indiana rule address nonatomized spray equipment, 
solvents sprayed during clean up and resin changes, routine flushing of 
application equipment, and use of closed containers. All provisions 
listed in 326 IAC 20-48-3 are unequivocally no less stringent than the 
Federal NESHAP.
    The Indiana rule (326 IAC 20-48-4) adds operator training 
requirements that are not included in the Federal NESHAP. The training 
requirements apply to personnel involved in resin and gel coat spraying 
and applications that could result in excess emissions if performed 
improperly. This section also requires the maintenance of training 
records on site. All provisions in 326 IAC 20-48-4 are unequivocally no 
less stringent than the Federal NESHAP.

IV. What Is the Effect of This Delegation?

    On September 19, 2006, EPA approved IDEM's request to delegate the 
authority to implement and enforce 40 CFR part 63, subpart VVVV, 
through 326 IAC 20-48, which adjusts the boat manufacturing MACT. EPA 
also approved the delegation of the applicable Category I authorities 
as set forth at 40 CFR section 63.91(g).
    All notifications, reports and other correspondence required under 
40 CFR, part 63, subpart VVVV, as adjusted by 326 IAC 20-48, should be 
sent to the State of Indiana, rather than to the EPA, Region 5, in 
Chicago. Affected sources should send this information to: Indiana 
Department of Environmental Management, Office of Air Management, 100 
North Senate Avenue, P.O. Box 6015, Indianapolis, Indiana 46206-6015.
    Pursuant to Section 112(l)(7) of the CAA, nothing in this 
delegation prohibits EPA from enforcing any applicable emission 
standard or requirement. The boat manufacturing MACT, 40 CFR part 63, 
subpart VVVV, as adjusted by 326 IAC 20-48 is federally enforceable.

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

    Dated: September 19, 2006.
Gary Gulezian,
Acting Regional Administrator, Region 5.
[FR Doc. E6-15937 Filed 9-27-06; 8:45 am]
BILLING CODE 6560-50-P