STATUS: Effective

POLICY NUMBER: Air-035-NPD

SUBJECT: Permitting Ethanol Production Facilities

AUTHORIZED: Thomas W. Easterly, Commissioner

SUPERSEDES: New

ISSUING OFFICE(S): Office of Air Quality

ORIGINALLY EFFECTIVE: June 3, 2011

RENEWED/REVISED: Date

Disclaimer: This nonrule policy document (NPD) is being established by the Indiana Department of Environmental Management (IDEM) consistent with its authority under IC 13-14-1-11.5. It is intended solely as guidance and shall be used in conjunction with applicable rules or laws. It does not replace applicable rules and laws, and, if it conflicts with these rules or laws, the rules or laws shall control. Under IC 13-14-1-11.5, this policy will be available for public inspection for at least 45 days prior to presentation to the appropriate state environmental board and may be put into effect by IDEM 30 days afterward. If the nonrule policy is presented to more than one board, it will be effective 30 days after presentation to the last. IDEM also will submit the policy to the Indiana Register for publication.

1.0 PURPOSE

In 2007, the United States Environmental Protection Agency (U.S. EPA) published a final rule: Prevention of Significant Deterioration (PSD), Nonattainment New Source Review (NSR) and Title V: Treatment of Certain Ethanol Production Facilities Under the "Major Emitting Facility" Definition. The rule amended the term "chemical process plants" in the PSD, NSR, and Title V permit regulations to exclude all facilities that produce ethanol through a natural fermentation process regardless of whether the ethanol is produced for human consumption, fuel, or an industrial purpose. IDEM has permitted ethanol production facilities in accordance with the federal rule since it became effective in 2007 and is in the process of amending the state air permitting rules to be consistent with the federal rule. It is the intention of this NPD to affirm that IDEM interprets the term "chemical process plants" in the Indiana PSD, NSR, and Title V permit rules consistent with the 2007 federal rule.

2.0 SCOPE

This policy affects Indiana's definition of "major stationary source" at 326 IAC 2-2-1, the applicability provisions of 326 IAC 2-3-2, and the definition of "major source" at 326 IAC 2-7-1 by interpreting the source category "chemical process plants" contained in those definitions and the applicability provisions as excluding ethanol production facilities that produce ethanol by natural fermentation included in North American Industry Classification System (NAICS) codes 325193 for Ethyl Alcohol Manufacturing or 312140 for Distilleries, as revised in 2007.

3.0 SUMMARY

IDEM interprets the source category "chemical process plants" contained in IDEM's air program permit rules to exclude ethanol production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 for Ethyl Alcohol Manufacturing or 312140 for Distilleries, as revised in 2007.

4.0 DEFINITIONS

4.1. "North American Industry Classification System (NAICS)" – The standard used by federal agencies in classifying business establishments. NAICS was developed by the federal Office of Management and Budget in 1997.

5.0 ROLES

5.1. Designated representatives of ethanol production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 for Ethyl Alcohol Manufacturing or 312140 for Distilleries, as revised in 2007, are responsible for submitting permit applications in accordance with this policy.

5.2. Office of Air Quality permit reviewers and their supervisors are responsible for reviewing permit applications and issuing air permits in accordance with this policy.

6.0 POLICY

IDEM interprets the source category "chemical process plants" as excluding ethanol production facilities that produce ethanol by natural fermentation that are included in NAICS codes 325193 for ethyl alcohol manufacturing, or 312140 for distilleries, as revised in 2007. The term "chemical process plants" is a source category in the definition of "Major Stationary Source" at 326 IAC 2-2-1, the applicability provisions of 326 IAC 2-3-2, and the definition of "Major Source" at 326 IAC 2-7-1.

7.0 REFERENCES

7.1. Indiana Administrative Codes:

7.2. 72 FR 24060, published May 1, 2007, available at www.gpoaccess.gov www.census.gov/eos/www/naics

7.3. LSA Document #11-99, Amendments to Rules Concerning Permitting of Ethanol Production Facilities