TITLE 326 AIR POLLUTION CONTROL DIVISION

The Indiana Department of Environmental Management (IDEM) has developed draft rule language for amendments to 326 IAC 8-12 concerning antifoulant coatings used at shipbuilding and ship repair facilities. The purpose of this notice is to seek public comment on the draft rule, including suggestions for specific language to be included in the rule. IDEM seeks comment on the affected citations listed and any other provisions of Title 326 that may be affected by this rulemaking.

IC 13-14-9-7 recognizes that under certain circumstances it may be appropriate to reduce the number of public comment periods routinely provided. In cases where the commissioner determines that the rulemaking policy alternatives available to IDEM are so limited that the first notice of public comment period would provide no substantial benefit to the environment or persons to be regulated or otherwise affected by the proposed rule, IDEM may forgo this comment period and proceed directly to the notice of second public comment period.

If the commissioner makes the determination of limited rulemaking policy alternatives required by IC 13-14-9-7, the commissioner shall prepare written findings and include them in the second notice of public comment period published in the Indiana Register. This document constitutes the commissioner's written findings pursuant to IC 13-14-9-7.

The statute provides for this shortened rulemaking process if the commissioner determines that "the rulemaking policy alternatives available to the department are so limited that the public notice and comment period under [IC 13-14-9-3] . . . would provide no substantial benefit to:

(1) the environment; or

(2) persons to be regulated or otherwise affected by the proposed rule.".

IDEM regulates volatile organic compound (VOC) emissions from surface coating operations at shipbuilding and ship repair facilities at 326 IAC 8-12. The shipbuilding and ship repair rule was adopted in 1995 to comply with Section 182(b)(1) of the Clean Air Act that required ozone nonattainment areas classified as moderate or above to develop plans to reduce the areas' VOC emissions by at least 15% by November 15, 1996. Reduction plans were prepared for Clark, Floyd, Lake, and Porter counties. These plans relied on a variety of mobile, stationary, and area source controls, including control of VOC from shipbuilding and ship repair surface coating operations. The United States Environmental Protection Agency (U.S. EPA) was working on the Control Technique Guideline (CTG) for this source category but had not issued the CTG by the time IDEM needed to proceed with rulemaking to meet Clean Air Act deadlines. U.S. EPA had also proposed a National Emission Standard for Hazardous Air Pollutants (NESHAP) for shipbuilding and ship repair. IDEM developed 326 IAC 8-12 to be consistent with the proposed NESHAP as much as possible. Jeffboat LLC, located in Jeffersonville (Clark County) is the primary source regulated by 326 IAC 8-12.

Jeffboat LLC recently made a request to IDEM to amend the VOC content limit for antifoulant coatings. Section 4(a)(1)(E) of 326 IAC 8-12 indicates that specialty coatings not specifically listed shall not exceed a VOC content of 2.83 pounds per gallon. Antifoulant coatings are not specifically listed and are subject to the 2.83 pounds per gallon limit. The antifoulant coating that Jeffboat LLC was using with a VOC content limit of 2.83 pounds per gallon was discontinued by the supplier and is no longer available. There are two antifoulant coatings remaining on the market that meet the more stringent Indiana requirements in 326 IAC 8-12-4(a)(1)(E). The first is specifically designed for yachts and does not have the same ablative properties that are required in barge manufacturing. The second costs three times more than the other available antifoulant coatings, putting Jeffboat LLC, and potentially any other source subject to 326 IAC 8-12, at a severe economic disadvantage to facilities in other states that can purchase the cheaper antifoulant coatings that meet the VOC content limit in the NESHAP.

IDEM is proposing an antifoulant VOC content limit of 3.33 pounds per gallon. This is consistent with the limit in the final NESHAP for Shipbuilding and Ship Repair, 40 CFR 63, Subpart II, Table 2 and the CTG (August 27, 1996, Federal Register, 61 FR 44053) that U.S. EPA issued for the control of VOC emissions to assist states in analyzing and determining reasonable available control technology (RACT) for shipbuilding and ship repair operations located in ozone nonattainment areas. IDEM is not aware of any other state RACT rules with more stringent VOC limits than the 3.33 pounds per gallon VOC content limit for antifoulant coatings.

The current limit in 326 IAC 8-12-4 is part of the Indiana state implementation plan (SIP) and IDEM will submit this rulemaking to U.S. EPA for SIP approval once it is effective. IDEM will provide a Section 110(l) Clean Air Act demonstration for antibacksliding for SIP approval and will rely on reductions in the state architectural and industrial maintenance (AIM) rule at 326 IAC 8-14 for the antibacksliding demonstration.

IDEM is using a Section 7 notice for this rulemaking because the options for the amendment are limited and it is the only amendment IDEM is proposing for this rulemaking. The proposed limit is consistent with federal law.

No element of the draft rule imposes either a restriction or a requirement on persons to whom the draft rule applies that is not imposed under federal law.

This rulemaking will save the affected source money since the source will not have to switch to a higher cost coating and will not lose customers to competitors that can respond to a customer's request to use a specific manufacturer coating system to coat the barge. If Jeffboat LLC cannot offer the same options as other manufacturers in other states, they may have to decline business or send the barge to an outside independent shipyard in another state, which could substantially increase cost to Jeffboat LLC or negatively impact their ability to give timely service to customers. Coating suppliers are normally awarded the whole vessel for their paint system, and therefore, do not go to the expense to test antifoulants with other supplier's epoxy, and do not warranty their coating system with other supplier's antifoulants.

No work group is planned for the rulemaking. If you feel that a work group or other informal discussion on the rule is appropriate, please contact Susan Bem, Rules Development Branch, Office of Legal Counsel at (317) 233-5697 or (800) 451-6027 (in Indiana).

IDEM established a compliance and technical assistance program (CTAP) under IC 13-28-3. The program provides assistance to small businesses and information regarding compliance with environmental regulations. In accordance with IC 13-28-3 and IC 13-28-5, there is a small business assistance program ombudsman to provide a point of contact for small businesses affected by environmental regulations. Information on the CTAP program, the monthly CTAP newsletter, and other resources available can be found at:

For purposes of IC 4-22-2-28.1, small businesses affected by this rulemaking may contact the Small Business Regulatory Coordinator:

Jessica Faust-Hamblin

IDEM Small Business Regulatory Coordinator

IGCN 1225

100 North Senate Avenue

Indianapolis, IN 46204-2251

(317) 232-8172 or (800) 988-7901

ctap@idem.in.gov

For purposes of IC 4-22-2-28.1, the Small Business Ombudsman designated by IC 4-4-35-8 is:

Erik Scheub

Office of Small Business and Entrepreneurship

One North Capitol, Suite 600

Indianapolis, IN 46204

(317) 232-5679

ombudsman@osbe.in.gov

Resources available to regulated entities through the small business ombudsman include the ombudsman's duties stated in IC 4-4-35-8, specifically IC 4-4-35-8(9), investigating and attempting to resolve any matter regarding compliance by a small business with a law, rule, or policy administered by a state agency, either as a party to a proceeding or as a mediator.

The Small Business Assistance Program Ombudsman is:

Steven N. Howell

IDEM Small Business Assistance Program Ombudsman

IGCN 1301

100 North Senate Avenue

Indianapolis, IN 46204-2251

(317) 232-8587 or (800) 451-6027

snhowell@idem.in.gov

The commissioner of IDEM has prepared written findings regarding rulemaking on a revised VOC content limit for antifoulant coatings at 326 IAC 8-12-4. These findings are prepared under IC 13-14-9-7 and are as follows:

(1) The options for a revised VOC limit for antifoulant coatings are very limited. If the revised limit is not consistent with RACT, U.S. EPA will not approve the new limit.

(2) I have determined that under the specific circumstances pertaining to this rule, the rulemaking policy alternatives are so limited that the public notice and comment period provided in the notice of first public comment period would provide no substantial benefit to the environment or to persons to be regulated or otherwise affected by the rule.

(3) The draft rule is hereby incorporated into these findings.

This notice requests the submission of comments on the draft rule language, including suggestions for specific revisions to language to be contained in the draft rule. Comments may be submitted in one of the following ways:

(1) By mail or common carrier to the following address:

LSA Document #14-441 Shipbuilding Antifoulant Coatings

Susan Bem

Rules Development Branch

Office of Legal Counsel

Indiana Department of Environmental Management

Indiana Government Center North

100 North Senate Avenue

Indianapolis, IN 46204-2251

(2) By facsimile to (317) 233-5970. Please confirm the timely receipt of your faxed comments by calling the Rules Development Branch at (317) 232-8922.

(3) By electronic mail to sbem@idem.in.gov. To confirm timely delivery of submitted comments, please request a document receipt when sending the electronic mail. PLEASE NOTE: Electronic mail comments will NOT be considered part of the official written comment period unless they are sent to the address indicated in this notice.

(4) Hand delivered to the receptionist on duty at the thirteenth floor reception desk, Office of Legal Counsel, Indiana Government Center North, 100 North Senate Avenue, Indianapolis, Indiana.

Regardless of the delivery method used, to properly identify each comment with the rulemaking action it is intended to address, each comment document must clearly specify the LSA document number of the rulemaking.

All comments must be postmarked, faxed, or time stamped not later than December 1, 2014. Hand-delivered comments must be delivered to the appropriate office by 4:45 p.m. on the above-listed deadline date.

Additional information regarding this action may be obtained from Susan Bem, Rules Development Branch, Office of Legal Counsel) (317) 233-5697 or (800) 451-6027 (in Indiana).

SECTION 1. 326 IAC 8-12-4 IS AMENDED TO READ AS FOLLOWS:

Affected: IC 13-12

Sec. 4. (a) On and after May 1, 1996, the owner or operator of a shipbuilding or ship repair facility subject to this rule shall comply with the following VOC emissions limiting requirements:

(b) On and after May 1, 1996, a source subject to this rule shall comply with the following work practice standards:

(c) The owner or operator of sources subject to this rule shall comply with the following training requirements:

Notice of Public Hearing

DIN: 20141029-IR-326140441FDA

Composed: May 13,2024 8:16:57AM EDT

A PDF version of this document.