[Federal Register Volume 72, Number 104 (Thursday, May 31, 2007)]
[Proposed Rules]
[Pages 30436-30456]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9825]



[[Page 30435]]

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Part II





Environmental Protection Agency





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40 CFR Parts 52 and 81



Approval and Promulgation of Implementation Plans and Designation of 
Areas for Air Quality Planning Purposes; Indiana; Redesignation of Lake 
and Porter Counties to Attainment of the 8-Hour Ozone Standard and 
Approval of Base Year Emission Inventories; Proposed Rule

Federal Register / Vol. 72, No. 104 / Thursday, May 31, 2007 / 
Proposed Rules

[[Page 30436]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R05-OAR-2006-0474; FRL-8317-1]


Approval and Promulgation of Implementation Plans and Designation 
of Areas for Air Quality Planning Purposes; Indiana; Redesignation of 
Lake and Porter Counties to Attainment of the 8-Hour Ozone Standard and 
Approval of Base Year Emission Inventories

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On September 12, 2006, the Indiana Department of Environmental 
Management (IDEM) submitted a request for EPA approval of a 
redesignation of Lake and Porter Counties to attainment of the 8-hour 
ozone National Ambient Air Quality Standard (NAAQS) and of an ozone 
maintenance plan for this area as a revision to the Indiana State 
Implementation Plan (SIP). EPA is proposing to determine that the 
Chicago-Gary-Lake County, Illinois-Indiana (IL-IN) 8-hour ozone 
nonattainment area, which includes Lake and Porter Counties, has 
attained the 8-hour ozone NAAQS. EPA is proposing to approve Indiana's 
ozone maintenance plan for Lake and Porter Counties as a revision to 
the SIP. EPA is proposing to approve Volatile Organic Compounds (VOC) 
and Nitrogen Oxides (NO<INF>X</INF>) Motor Vehicle Emission Budgets 
(MVEBs) for Lake and Porter Counties as supported by the ozone 
maintenance plan. EPA is proposing to approve Indiana's 2002 base year 
VOC and NO<INF>X</INF> emission inventories for Lake and Porter 
Counties. EPA is proposing to approve into the Indiana SIP the VOC and 
NO<INF>X</INF> periodic emission inventories for 1999, 2002, and 2004. 
Finally, EPA is proposing to approve the redesignation of Lake and 
Porter Counties to attainment of the 8-hour ozone NAAQS.

DATES: Comments must be received on or before July 2, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2006-0474, by one of the following methods:
    <bullet> www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    <bullet> E-mail: <a href="/cdn-cgi/l/email-protection#38555757565d411652575056785d4859165f574e"><span class="__cf_email__" data-cfemail="1e737171707b6730747176705e7b6e7f30797168">[email protected]</span></a>.
    <bullet> Fax: (312) 886-5824.
    <bullet> Mail: John M. Mooney, Chief, Criteria Pollutant Section, 
Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 
West Jackson Boulevard, Chicago, Illinois 60604.
    <bullet> Hand Delivery: John M. Mooney, Chief, Criteria Pollutant 
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection 
Agency, 77 West Jackson Boulevard, Chicago, Illinois. Such deliveries 
are only accepted during the Regional Office's normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information. The Regional Office's official hours of operation 
are Monday through Friday, 8:30 a.m. to 4:30 p.m., excluding Federal 
holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2006-0474. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
www.regulations.gov, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI, or otherwise protected, through www.regulations.gov or e-mail. 
The www.regulations.gov Web site is an ``anonymous access'' system, 
which means EPA will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through www.regulations.gov, 
your e-mail address will be automatically captured and included as part 
of the comment that is placed in the public docket and made available 
on the Internet. If you submit an electronic comment, EPA recommends 
that you include your name and other contact information in the body of 
your comment and with any disk or CD-ROM you submit. If EPA cannot read 
your comment due to technical difficulties and cannot contact you for 
clarification, EPA may not be able to consider your comment. Electronic 
files should avoid the use of special characters and any form of 
encryption, and should be free of any defects or viruses.
    Docket: All documents in the docket are listed in the 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hardcopy. 
Publicly available docket materials are available either electronically 
in www.regulations.gov or in hardcopy at the 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. 
It is recommended that you telephone Edward Doty, Environmental 
Scientist, at (312) 886-6057, before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Edward Doty, Environmental Scientist, 
Criteria Pollutant Section, Air Programs Branch (AR-18J), Environmental 
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, 
Illinois 60604, (312) 886-6057, <a href="/cdn-cgi/l/email-protection#3c585348451259584b5d4e587c594c5d125b534a"><span class="__cf_email__" data-cfemail="62060d161b4c070615031006220712034c050d14">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: Throughout this proposed rule whenever 
``we,'' ``us,'' or ``our'' is used, we mean the EPA. This supplementary 
information section is arranged as follows:

I. What Actions Is EPA Proposing To Take?
II. What Is the Background for These Actions?
III. What Is the Impact of a December 22, 2006 United States Court 
of Appeals Decision Regarding EPA's Phase 1 Ozone Implementation 
Rule on This Proposed Rule?
    A. Requirements Under the 8-Hour Ozone Standard
    B. Requirements Under the 1-Hour Ozone Standard
IV. What Are the Criteria for Redesignations to Attainment of the 8-
Hour Ozone NAAQS?
V. What Are EPA's Analyses of the State's Redesignation Request and 
Maintenance Plan and What Are the Bases for EPA's Proposed Actions?
    A. Have Lake and Porter Counties and the Entire Chicago-Gary-
Lake County, IL-IN Nonattainment Area Attained the 8-Hour Ozone 
NAAQS and 1-Hour Ozone NAAQS?
    1. Attainment of the 8-Hour Ozone NAAQS
    2. Attainment of the 1-Hour Ozone NAAQS
    B. Has the State of Indiana Committed To Maintain the Ozone 
Monitoring System in Lake and Porter Counties?
    C. Have Lake and Porter Counties and the State of Indiana Met 
All of the Requirements of Section 110 and Part D of the CAA 
Applicable for Purposes of Redesignation, and Do Lake and Porter 
Counties Have a Fully Approved SIP Under Section 110(k) of the CAA 
for Purposes of Redesignation to Attainment?
    1. Lake and Porter Counties Have Met All Requirements of Section 
110 and Part D of the CAA Applicable for Purposes of Redesignation 
for the 8-Hour NAAQS
    a. Section 110 and General SIP Requirements
    b. Part D SIP Requirements Under the 8-Hour Ozone Standard
    2. Lake and Porter Counties Have a Fully Approved SIP Under 
Section 110(k) of the CAA

[[Page 30437]]

    D. Have Lake and Porter Counties Met the Part D Nonattainment 
Area and Section 110 Requirements Under the 1-Hour Ozone Standard?
    E. Are the Air Quality Improvements in Lake and Porter Counties 
and in the Chicago-Gary-Lake County, IL-IN Nonattainment Area Due to 
Permanent and Enforceable Emission Reductions Resulting From the 
Implementation of the Indiana SIP and Applicable Federal Air 
Pollution Control Regulations and Other Permanent and Enforceable 
Emission Reductions?
    F. Do Lake and Porter Counties Have a Fully Approvable Ozone 
Maintenance Plan Pursuant to Section 175A of the CAA?
    1. What Is Required in an Ozone Maintenance Plan?
    2. What Are the Attainment Emission Inventories for Lake and 
Porter Counties?
    a. Point Sources
    b. Area Sources
    c. On-Road Mobile Sources
    d. Non-Road Mobile Sources
    3. Has the State Demonstrated Maintenance of the Ozone Standard 
in Lake and Porter Counties and in the Chicago-Gary-Lake County, IL-
IN Ozone Nonattainment Area?
    4. What Is the Contingency Plan for Lake and Porter Counties?
    a. Verification of Continued Attainment
    b. Contingency Plan
    5. Has the State Committed To Update the Ozone Maintenance Plan 
in Eight Years After the Redesignation of Lake and Porter Counties 
to Attainment of the 8-Hour Ozone NAAQS?
VI. Has the State Adopted Acceptable MVEBs for the End Year of the 
Ozone Maintenance Period Which Can Be Used To Support Transportation 
Conformity Determinations?
    A. How Are the MVEBs Developed and What Are the MVEBs for Lake 
and Porter Counties?
    B. Are the MVEBs Approvable?
VII. Modeled Attainment of the Ozone Standard
    A. Regional Ozone Modeling Results
    B. Temperature--Ozone Exceedance Frequency Study
VIII. Review of Indiana's 2002 Base Year Emissions Submittal
IX. What Are EPA's Proposed Actions?
X. Statutory and Executive Order Reviews

I. What Actions Is EPA Proposing To Take?

    We are proposing to take several related actions for Lake and 
Porter Counties, Indiana. First, we are proposing to determine that the 
Chicago-Gary-Lake County, IL-IN ozone nonattainment area, including 
Lake and Porter Counties in Indiana, has attained the 8-hour ozone 
NAAQS.
    Second, we are proposing to approve Indiana's request to 
redesignate the Indiana portion of the Chicago-Gary-Lake County, IL-IN 
ozone nonattainment area (Lake and Porter Counties) to attainment of 
the 8-hour ozone NAAQS. We have determined that the State of Indiana 
and Lake and Porter Counties have met the CAA requirements for such a 
redesignation under section 107(d)(3)(E). EPA is proposing in this 
notice to approve Indiana's 2002 base year VOC and NO<INF>X</INF> 
emission inventories for Lake and Porter Counties as meeting the base 
year emissions inventory requirements of the CAA and as a revision to 
the Indiana SIP. EPA is also proposing to approve into the Indiana SIP 
the VOC and NO<INF>X</INF> periodic inventories for 1999, 2002 and 
2004, pursuant to section 182(a)(3)(A) of the CAA under the 1-hour 
standard.
    Third, we are proposing to approve Indiana's ozone maintenance plan 
for Lake and Porter Counties as a revision of the Indiana SIP. The 
maintenance plan, which meets the requirements of section 175A of the 
CAA, is designed to keep Lake and Porter Counties and the Chicago-Gary-
Lake County ozone nonattainment area in attainment of the 8-hour ozone 
NAAQS through 2020. As supported by and consistent with the ozone 
maintenance plan, we are also proposing to approve the 2010 and 2020 
VOC and NO<INF>X</INF> MVEBs for Lake and Porter Counties for 
transportation conformity determination purposes.
    Finally, in response to a December 22, 2006, decision of the United 
States Court of Appeals vacating EPA's Phase 1 ozone implementation 
rule, we are proposing to find that, if the 1-hour ozone standard is 
deemed to be reinstated, Lake and Porter Counties would also qualify 
for a redesignation to attainment of the 1-hour ozone standard.

II. What Is the Background for These Actions?

    EPA has determined that ground-level ozone is detrimental to human 
health. On July 18, 1997, EPA promulgated an 8-hour ozone NAAQS (62 FR 
38856) of 0.08 parts per million parts of air (0.08 ppm) (80 parts per 
billion (ppb)).\1\ This 8-hour ozone standard replaced a prior 1-hour 
ozone NAAQS, which was promulgated on February 8, 1979 (44 FR 8202) and 
which EPA revoked on June 15, 2005 (69 FR 23858).
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    \1\ This standard is violated in an area when any ozone monitor 
in the area records 8-hour ozone concentrations with a three-year 
average of the annual fourth-highest daily maximum 8-hour ozone 
concentrations equaling or exceeding 85 ppb. See 40 CFR 50.10.
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    Ground-level ozone is not emitted directly by emission sources. 
Rather, emitted NO<INF>X</INF> and VOC react in the presence of 
sunlight to form ground-level ozone along with other secondary 
compounds. NO<INF>X</INF> and VOC are referred to as ``ozone 
precursors.'' \2\ Control of ground-level ozone concentrations is 
achieved through controlling VOC and NO<INF>X</INF> emissions.
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    \2\ Carbon Monoxide (CO) is also a minor precursor in the 
formation of ozone.
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    Section 107 of the CAA required EPA to designate as nonattainment 
any area that violated the 8-hour ozone NAAQS. The Federal Register 
notice promulgating the 8-hour ozone designations and classifications 
was published on April 30, 2004 (69 FR 23857).
    The CAA contains two sets of provisions--subpart 1 and subpart 2--
that address planning and emission control requirements for 
nonattainment areas. Both are found in title I, part D of the CAA. 
Subpart 1 contains general, less prescriptive requirements for all 
nonattainment areas of pollutants governed by NAAQS. Subpart 2 contains 
more specific requirements for certain ozone nonattainment areas, and 
applies to ozone nonattainment areas classified under section 181 of 
the CAA.
    In the April 30, 2004 designation rulemaking, EPA divided 8-hour 
ozone nonattainment areas into the categories of subpart 1 
nonattainment (``basic'' nonattainment) and subpart 2 nonattainment 
(``classified'' nonattainment). EPA based this division on the areas' 
8-hour ozone design values (i.e., on the three-year averages of the 
annual fourth-highest daily maximum 8-hour ozone concentrations at the 
worst-case monitoring sites in the designated areas) and on their 1-
hour ozone design values (i.e., on the fourth-highest daily maximum 1-
hour ozone concentrations over the three-year period at the worst-case 
monitoring sites in the designated areas).\3\ EPA classified 8-hour 
ozone nonattainment areas with 1-hour ozone design values equaling or 
exceeding 121 ppb as subpart 2, classified nonattainment areas. EPA 
classified all other 8-hour nonattainment areas as subpart 1, basic 
nonattainment areas. The basis for area classification was defined in a 
separate April 30, 2004 final rule (the Phase 1 implementation rule) 
(69 FR 23951).\4\
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    \3\ The 8-hour ozone design value and the 1-hour ozone design 
value for each area were not necessarily recorded at the same 
monitoring site. The worst-case monitoring site for each ozone 
concentration averaging time was considered for each area.
    \4\ It should be noted that the United States Court of Appeals 
for the District of Columbia Circuit recently vacated EPA's April 
30, 2004 ``Final Rule to Implement the 8-Hour Ozone National Ambient 
Standard'' (the Phase 1 implementation rule). South Coast Air 
Quality Management District v. EPA, 472 F.3d 882(D.C. Cir. 2006). 
EPA explains its views of the potential impact of this decision in 
section III, below.

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[[Page 30438]]

    Emission control requirements for classified nonattainment areas 
are linked to area classifications. Areas with more serious ozone 
pollution problems are subject to more prescribed requirements and 
later attainment deadlines. The prescribed emission control 
requirements are designed to bring areas into attainment by their 
specified attainment dates.
    In the April 30, 2004 ozone designation/classification rulemaking, 
EPA designated Lake and Porter Counties, as part of the Chicago-Gary-
Lake County, IL-IN area, as a subpart 2 moderate nonattainment area for 
the 8-hour ozone NAAQS. This designation was based on ozone data 
collected during the 2001-2003 period.
    On September 12, 2006, the State of Indiana requested redesignation 
of Lake and Porter Counties to attainment of the 8-hour ozone NAAQS. 
This redesignation request was submitted by the State subsequent to 
conducting a public review process for the redesignation request and 
ozone maintenance plan and subsequent to the State's adoption of the 
ozone maintenance plan.

III. What Is the Impact of a December 22, 2006 United States Court of 
Appeals Decision Regarding EPA's Phase 1 Ozone Implementation Rule on 
This Proposed Rule?

    On December 22, 2006, the United States Court of Appeals for the 
District of Columbia Circuit (the Court) vacated EPA's Phase 1 
implementation rule (Phase 1 Rule) for the 8-hour ozone standard (69 FR 
23951, April 30, 2004). South Coast Air Quality Management Dist. v. 
EPA, 472 F.3d 882 (D.C. Cir. 2006). The Court held that certain 
provisions of EPA's Phase 1 Rule were inconsistent with the 
requirements of the CAA. The Court rejected EPA's reasons for 
implementing the 8-hour ozone standard in nonattainment areas under 
subpart 1 in lieu of subpart 2 of Title I, part D of the CAA. The Court 
also held that EPA improperly failed to retain four measures required 
for 1-hour ozone nonattainment areas under the anti-backsliding 
provisions of the regulations: (1) Nonattainment area New Source Review 
(NSR) requirements based on an area's 1-hour nonattainment 
classification; (2) section 185 penalty fees for 1-hour severe or 
extreme ozone nonattainment areas; (3) measures to be implemented 
pursuant to section 172(c)(9) or 182(c)(9) of the CAA, on the 
contingency of an area not making reasonable further progress toward 
attainment of the 1-hour ozone NAAQS, or failing to attain that NAAQS; 
and, (4) conformity requirements for certain types of Federal actions. 
The Court upheld EPA's authority to revoke the 1-hour ozone standard 
provided that there were adequate anti-backsliding provisions.
    This section sets forth EPA's views on the potential effect of the 
Court's ruling on this redesignation action. For the reasons set forth 
below, EPA does not believe that the Court's ruling alters any 
requirements relevant to this redesignation action so as to preclude 
redesignation, and does not prevent EPA from finalizing this 
redesignation. EPA believes that the Court's decision, as it currently 
stands or as it may be modified based on any petition for rehearing 
that has been filed, imposes no impediment to moving forward with 
redesignation of this area to attainment, because in either 
circumstance redesignation is appropriate under the relevant 
redesignation provisions of the CAA and longstanding policies regarding 
redesignation requests.

A. Requirements Under the 8-Hour Ozone Standard

    With respect to the 8-hour ozone standard, the Chicago-Gary-Lake 
County, IL-IN ozone nonattainment area, which includes Lake and Porter 
Counties, is classified as moderate nonattainment under subpart 2. We 
do not believe that any part of the Court's opinion would require that 
this subpart 2 classification be changed upon remand to EPA. However, 
even assuming for present purposes that the Chicago-Gary-Lake County, 
IL-IN area would become subject to a different classification scheme 
created in a future rule responding to the Court's decision, that would 
not prevent EPA from finalizing the redesignation for this area. For 
the reasons set forth below, we believe that any additional 
requirements that might apply based on a different classification would 
not be applicable for purposes of evaluating the 8-hour ozone 
redesignation request now before us. This belief is based on: (1) EPA's 
longstanding policy of evaluating redesignation requests in accordance 
only with the requirements due at the time the redesignation request 
was submitted; and (2) consideration of the inequity of applying 
retroactively any requirements that might be applied in the future.
    First, at the time the redesignation request was submitted, the 
area was classified under subpart 2 and was required to meet the 
subpart 2 requirements. Under EPA's longstanding interpretation of 
section 107(d)(3)(E) of the CAA, to qualify for redesignation, a state 
requesting a redesignation to attainment must meet only the relevant 
SIP requirements that came due for the subject area prior to the 
submittal of a complete redesignation request. See the September 4, 
1992 Calcagni memorandum (``Procedures for Processing Requests to 
Redesignate Areas to Attainment,'' Memorandum from John Calcagni, 
Director, Air Quality Management Division). See also the September 17, 
1993 Shapiro memorandum (``State Implementation Plan (SIP) Requirements 
for Areas Submitting Requests for Redesignation to Attainment of the 
Ozone and Carbon Monoxide (CO) National Ambient Air Quality Standards 
(NAAQS) on or after November 15, 1992,'' Memorandum from Michael H. 
Shapiro, Acting Assistant Administrator, Air and Radiation), 60 FR 
12459, 12465-66 (March 7, 1995) (redesignation of Detroit-Ann Arbor); 
Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004), which upheld this 
interpretation; 68 FR 25418, 25424, 25427 (May 12, 2003) (redesignation 
of St. Louis). At the time the Lake and Porter County redesignation 
request was submitted, September 12, 2006, the Chicago-Gary-Lake 
County, IL-IN area was not classified under subpart 1 and no subpart 1 
requirements were applicable for purposes of redesignation.
    Second, it would be inequitable to retroactively apply any new SIP 
requirements that were not applicable at the time the redesignation 
request was submitted, but which might later become applicable. The 
D.C. Circuit has recognized the inequity in such retroactive 
rulemaking. See Sierra Club v. Whitman, 285 F.3d 63 (D.C. Cir. 2002), 
in which the D.C. Circuit upheld a District Court's ruling refusing to 
make retroactive an EPA determination of nonattainment that was past 
the statutory due date. Such a determination would have resulted in the 
imposition of additional requirements on the area. The Court stated: 
``Although EPA failed to make the nonattainment determination within 
the statutory timeframe, Sierra Club's proposed solution only makes the 
situation worse. Retroactive relief would likely impose large costs on 
the States, which would face fines and suits for not implementing air 
pollution prevention plans in 1997, even though they were not on notice 
at the time.'' Id. at 68. Similarly, here it would be unfair to 
penalize the area by applying to it for purposes of redesignation any 
additional requirements under subpart 1 that were not in effect at the 
time it submitted its redesignation request, but that might apply in 
the future.

[[Page 30439]]

B. Requirements Under the 1-Hour Ozone Standard

    In its December 22, 2006 decision in South Coast Air Quality 
Management Dist. v. EPA, the Court also addressed EPA's revocation of 
the 1-hour ozone standard. The current status of the revocation and 
associated anti-backsliding rules is dependent on whether the Court's 
decision stands as originally issued or is modified in response to any 
petition for rehearing or request for clarification that has been 
filed. As described more fully below, EPA believes that the Chicago-
Gary-Lake County, IL-IN area has attained the 1-hour ozone standard and 
that the State of Indiana and Lake and Porter Counties have met all of 
the requirements applicable for redesignation under the 1-hour ozone 
standard that would apply even if the 1-hour ozone standard is deemed 
to be reinstated and those requirements are viewed as applying under 
the statute itself. Thus, the Court's decision, as it currently stands, 
imposes no impediment to moving forward with redesignation of Lake and 
Porter Counties to attainment based on the status of the 1-hour ozone 
standard. Furthermore, if the 1-hour ozone standard is deemed to be 
reinstated, EPA would construe the State's redesignation request under 
the 8-hour ozone standard as also constituting a redesignation request 
under the 1-hour ozone standard. EPA proposes that, if the 1-hour 
standard is deemed to be reinstated, EPA would redesignate Lake and 
Porter Counties to attainment of the 1-hour ozone standard because EPA 
believes that the area has satisfied all of the 1-hour requirements for 
such redesignation, as explained in the analysis below. Further, even 
if the Court's decision were modified based on any petition for 
rehearing that has been filed such that the ultimate decision requires 
something less than compliance with all applicable 1-hour ozone 
requirements, this would not pose an impediment to redesignating the 
area to attainment of the 1-hour ozone standard. Since the area meets 
all current 1-hour ozone requirements as explained below, it would 
certainly meet any lesser requirements and, thus similarly, 
redesignation could proceed.

IV. What Are the Criteria for Redesignation to Attainment of the 8-Hour 
Ozone NAAQS?

    The CAA provides the basic requirements for redesignating a 
nonattainment area to attainment. Specifically, section 107(d)(3)(E) of 
the CAA authorizes redesignation provided that: (1) The Administrator 
determines that the area has attained the applicable NAAQS based on 
current air quality data; (2) the Administrator has fully approved an 
applicable state implementation plan for the area under section 110(k) 
of the CAA; (3) the Administrator determines that the improvement in 
air quality is due to permanent and enforceable emission reductions 
resulting from implementation of the applicable SIP, Federal air 
pollution control regulations, and other permanent and enforceable 
emission reductions; (4) the Administrator has fully approved a 
maintenance plan for the area meeting the requirements of section 175A 
of the CAA; and, (5) the state containing the area has met all 
requirements applicable to the area under section 110 and part D of the 
CAA.
    EPA provided guidance on redesignations in the General Preamble for 
the Implementation of Title I of the CAA Amendments of 1990 on April 
16, 1992 (57 FR 13498), and supplemented this guidance on April 28, 
1992 (57 FR 18070). Two significant policy guidance documents affecting 
the review of ozone redesignation requests are the following: 
``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (the September 4, 1992 Calcagni 
memorandum); and, ``Reasonable Further Progress, Attainment 
Demonstration, and Related Requirements for Ozone Nonattainment Areas 
Meeting the Ozone National Ambient Air Quality Standard,'' Memorandum 
from John S. Seitz, Director, Office of Air Quality Planning and 
Standards, May 10, 1995 (the May 10, 1995 Clean Data Policy 
memorandum). For additional policy guidance used in the review of ozone 
redesignation requests, see our proposed rule for the redesignation of 
the Evansville, Indiana ozone nonattainment area at 70 FR 53606 
(September 9, 2005).

V. What Are EPA's Analyses of the State's Redesignation Request and 
Maintenance Plan and What Are the Bases for EPA's Proposed Action?

    EPA is proposing to: (1) Determine that Lake and Porter Counties 
and the Chicago-Gary-Lake County, IL-IN area have attained the 8-hour 
ozone standard and the 1-hour ozone standard; (2) approve the ozone 
maintenance plan for Lake and Porter Counties and the VOC and 
NO<INF>X</INF> MVEBs supported by the maintenance plan; and, (3) 
approve the redesignation of Lake and Porter Counties to attainment of 
the 8-hour ozone NAAQS and to attainment of the 1-hour ozone NAAQS, if 
it is deemed to be reinstated. The bases for our proposed determination 
and approvals follow.

A. Have Lake and Porter Counties and the Entire Chicago-Gary-Lake 
County, IL-IN Nonattainment Area Attained the 8-Hour Ozone NAAQS and 
the 1-Hour Ozone NAAQS?

1. Attainment of the 8-Hour Ozone NAAQS
    For ozone, an area may be considered to be attaining the 8-hour 
ozone NAAQS if there are no violations of the NAAQS, as determined in 
accordance with 40 CFR 50.10 and appendix I, based on the most recent 
three complete, consecutive calendar years of quality-assured air 
quality monitoring data at all ozone monitoring sites in the area and 
at any monitor used to calculate its design value. To attain this 
standard, the average of the annual fourth-high daily maximum 8-hour 
average ozone concentrations measured and recorded at each monitor (the 
monitoring site's ozone design value) within the area and used to 
calculate its design value, over the most recent three-year period must 
not exceed the ozone standard. Based on an ozone data rounding 
convention described in 40 CFR 50, appendix I, the 8-hour ozone 
standard is attained if the area's ozone design value \5\ is 0.084 ppm 
(84 ppb) or less. The data must be collected and quality-assured in 
accordance with 40 CFR 58, and is recorded in EPA's Air Quality System 
(AQS). The ozone monitors generally should have remained at the same 
locations for the duration of the monitoring period required to 
demonstrate attainment (for three years or more). The data supporting 
attainment of the standard must be complete in accordance with 40 CFR 
50, appendix I.
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    \5\ The worst-case monitoring site-specific ozone design value 
in the area and in its nearby downwind environs.
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    At the time of the September 12, 2006 ozone redesignation request, 
preliminary 8-hour ozone monitoring data for Lake and Porter Counties 
and for the Illinois portion of the Chicago-Gary-Lake County, IL-IN 
nonattainment area showed that the area was attaining the standard for 
2004-2006, and that the 2006 4th high 8-hour daily average 
concentration was 0.081 ppm. Since the submittal of the redesignation 
request, Indiana and other States in the Lake Michigan area have 
submitted quality-assured data for 2006 to the AQS. Table 1 summarizes 
the annual fourth-high 8-hour ozone concentrations during the

[[Page 30440]]

period of 2004-2006, the most recent three years of available quality-
assured ozone data, for all monitors in the Chicago-Gary-Lake County, 
IL-IN area and for the Chiwaukee Prairie monitoring site in Wisconsin, 
the critical ozone design value site for the Chicago-Gary-Lake County, 
IL-IN ozone nonattainment area.

Table 1.--Annual Fourth-High Daily Maximum 8-Hour Ozone Concentrations in Parts per Million (ppm) and Three-Year
                                                    Averages
----------------------------------------------------------------------------------------------------------------
                                                                         Percent        Fourth-high      Three-
       Site ID              County         Address/site      Year     observations     daily maximum      year
                                                                      ozone season     concentration    average
----------------------------------------------------------------------------------------------------------------
                                            INDIANA MONITORING SITES
----------------------------------------------------------------------------------------------------------------
18-089-002...........  Lake............  Gary...........       2004             100             0.064         NA
                                         Gary...........       2005              96             0.089         NA
                                         Gary...........       2006              98             0.073      0.075
18-089-2008..........  Lake............  Hammond........       2004             100             0.067         NA
                                         Hammond........       2005              99             0.087         NA
                                         Hammond........       2006             100             0.075      0.076
18-127-0024..........  Porter..........  Ogden Dunes....       2004             100             0.069         NA
                                         Ogden Dunes....       2005              99             0.090         NA
                                         Ogden Dunes....       2006             100             0.070      0.076
18-127-0026..........  Porter..........  Valparaiso.....       2004             100             0.072         NA
                                         Valparaiso.....       2005             100             0.078         NA
                                         Valparaiso.....       2006              99             0.071      0.073
----------------------------------------------------------------------------------------------------------------
                                            ILLINOIS MONITORING SITES
----------------------------------------------------------------------------------------------------------------
17-031-0001..........  Cook............  Alsip..........       2004             100             0.065         NA
                                         Alsip..........       2005             100             0.084         NA
                                         Alsip..........       2006             100             0.078      0.075
17-031-0032..........  Cook............  Chicago-              2004             100             0.067         NA
                                          Cheltenham.
                                         Chicago-              2005             100             0.076         NA
                                          Cheltenham.
                                         Chicago-              2006             100             0.075      0.072
                                          Cheltenham.
17-031-0042..........  Cook............  Wacker at Adams       2004              64             0.069         NA
                                         Wacker at Adams       2005              51             0.080         NA
                                         Wacker at Adams       2006              85             0.072      0.073
17-031-0064..........  Cook............  Chicago-Ellis         2004             100             0.054         NA
                                          Ave..
                                         Chicago-Ellis         2005             100             0.084         NA
                                          Ave..
                                         Chicago-Ellis         2006              99             0.070      0.069
                                          Ave..
17-031-0072..........  Cook............  Chicago-Ohio          2004              98             0.060         NA
                                          Street.
                                         Chicago-Ohio          2005              99             0.081         NA
                                          Street.
                                         Chicago-Ohio          2006             100             0.065      0.068
                                          Street.
17-031-0076..........  Cook............  Chicago-              2004             100             0.068         NA
                                          Lawndale.
                                         Chicago-              2005             100             0.084         NA
                                          Lawndale.
                                         Chicago-              2006             100             0.075      0.075
                                          Lawndale.
17-031-1003..........  Cook............  Chicago-Hurlbut       2004              99             0.067         NA
                                          St..
                                         Chicago-Hurlbut       2005              99             0.083         NA
                                          St..
                                         Chicago-Hurlbut       2006              95             0.075      0.075
                                          St..
17-031-1601..........  Cook............  Lemont.........       2004              94             0.067         NA
                                         Lemont.........       2005             100             0.086         NA
                                         Lemont.........       2006              96             0.070      0.074
17-031-4002..........  Cook............  Cicero.........       2004             100             0.059         NA
                                         Cicero.........       2005             100             0.075         NA
                                         Cicero.........       2006             100             0.060      0.064
17-031-4007..........  Cook............  Des Plaines....       2004              94             0.064         NA
                                         Des Plaines....       2005              99             0.079         NA
                                         Des Plaines....       2006             100             0.065      0.069
17-031-4201..........  Cook............  Northbrook.....       2004              97             0.067         NA
                                         Northbrook.....       2005             100             0.081         NA
                                         Northbrook.....       2006             100             0.068      0.072
17-031-7002..........  Cook............  Evanston.......       2004             100             0.074         NA
                                         Evanston.......       2005              98             0.082         NA
                                         Evanston.......       2006              97             0.072      0.076
17-043-6001..........  DuPage..........  Lisle..........       2004              99             0.065         NA
                                         Lisle..........       2005              97             0.078         NA
                                         Lisle..........       2006             100             0.062      0.068
17-089-0005..........  Kane............  Elgin..........       2004              99             0.067         NA
                                         Elgin..........       2005             100             0.086         NA
                                         Elgin..........       2006              84             0.062      0.071
17-097-1002..........  Lake............  Waukegan.......       2004             100             0.067         NA
                                         Waukegan.......       2005              99             0.087         NA
                                         Waukegan.......       2006             100             0.071      0.075
17-097-1007..........  Lake............  IL Beach State        2004              99             0.071         NA
                                          Park.
                                         IL Beach State        2005              98             0.090         NA
                                          Park.
                                         IL Beach State        2006             100             0.068      0.076
                                          Park.

[[Page 30441]]

 
17-111-0001..........  McHenry.........  Cary...........       2004             100             0.068         NA
                                         Cary...........       2005              98             0.087         NA
                                         Cary...........       2006             100             0.057      0.070
17-197-1011..........  Will............  Essex Road.....       2004              99             0.067         NA
                                         Essex Road.....       2005             100             0.077         NA
                                         Essex Road.....       2006              94             0.068      0.070
----------------------------------------------------------------------------------------------------------------
                                            WISCONSIN MONITORING SITE
----------------------------------------------------------------------------------------------------------------
55-059-0019..........  Kenosha.........  Chiwaukee             2004             100             0.078         NA
                                          Prairie.
                                         Chiwaukee             2005              98             0.093         NA
                                          Prairie.
                                         Chiwaukee             2006              99             0.079      0.083
                                          Prairie.
----------------------------------------------------------------------------------------------------------------

    Please note that site 17-031-0042 is located on the top of the 
Sears Tower, in excess of 1,000 feet above ground-level. This is a 
special purpose monitor that is not intended to measure ambient air 
concentrations (concentrations collected near nose levels of adults in 
areas where the public generally has access). As such, the lack of data 
during the ozone seasons for this site does not constitute a data 
completeness problem.
    Review of the 2004-2006 ozone concentrations summarized in Table 1 
shows that all of the ozone monitoring sites in the Chicago-Gary-Lake 
County, IL-IN ozone nonattainment area, as well as the Chiwaukee 
Prairie ozone monitoring site, attained the 8-hour ozone standard 
during this period. Therefore, based on the most recent three years of 
quality-assured ozone monitoring data, the 8-hour ozone NAAQS has been 
attained in the Chicago-Gary-Lake County, IL-IN area.
2. Attainment of the 1-Hour Ozone NAAQS
    Prior to the revocation of the 1-hour ozone standard, the Chicago-
Gary-Lake County IL-IN area was designated a severe nonattainment area 
under the 1-hour standard. If the 1-hour NAAQS is deemed reinstated, 
EPA would construe the State's request for redesignation under the 8-
hour standard as also constituting a request under the 1-hour standard. 
To support a possible redesignation to attainment for Lake and Porter 
Counties to attainment of the 1-hour ozone NAAQS, if the 1-hour NAAQS 
is deemed reinstated, it must be shown that the Chicago-Gary-Lake 
County, IL-IN area is attaining the 1-hour ozone NAAQS. An area is 
considered attaining the 1-hour ozone NAAQS if there are no violations, 
as determined in accordance with the regulation codified at 40 CFR 
50.9, based on three consecutive calendar years of complete, quality-
assured monitoring data. A violation occurs when the ozone air quality 
monitoring data show greater than one (1.0) average expected exceedance 
per year at any site in the area. An exceedance occurs when the maximum 
hourly ozone concentration exceeds 0.124 parts per million (ppm). The 
data should be collected and quality-assured in accordance with 40 CFR 
part 58, and recorded in the AQS so that it is available to the public 
for review.
    The Indiana request is based on an analysis of ozone air quality 
data from 2004-2006. Table 2 below summarizes this air quality data.

Table 2.--1-Hour Ozone Exceedances at Monitoring Sites in the Chicago-Gary-Lake County, IL-IN Area Including the
                                  Chiwaukee Prairie Monitoring Site (2004-2006)
----------------------------------------------------------------------------------------------------------------
                                                            No. 2004      No. 2005      No. 2006     3-year avg.
      Site code             County             Site        exceedances   exceedances   exceedances   exceedances
----------------------------------------------------------------------------------------------------------------
                                                    ILLINOIS
----------------------------------------------------------------------------------------------------------------
17-031-0001..........  Cook............  Alsip..........           0.0           1.0           0.0           0.3
17-031-0076..........  Cook............  Chicago-Com Ed.           0.0           0.0           0.0           0.0
17-031-0072..........  Cook............  Chicago-Jardine           0.0           0.0           0.0           0.0
17-031-0032..........  Cook............  Chicago-SWFP...           0.0           1.0           0.0           0.3
17-031-1003..........  Cook............  Chicago-Taft...           0.0           0.0           0.0           0.0
17-031-0064..........  Cook............  Chicago-                  0.0           0.0           0.0           0.0
                                          University.
17-031-4002..........  Cook............  Cicero.........           0.0           0.0           0.0           0.0
17-031-4007..........  Cook............  Des Plaines....           0.0           0.0           0.0           0.0
17-031-7002..........  Cook............  Evanston.......           0.0           0.0           0.0           0.0
17-031-1601..........  Cook............  Lemont.........           0.0           0.0           0.0           0.0
17-031-4201..........  Cook............  Northbrook.....           0.0           0.0           0.0           0.0
17-043-6001..........  DuPage..........  Lisle..........           0.0           0.0           0.0           0.0
17-089-0005..........  Kane............  Elgin..........           0.0           0.0           0.0           0.0
17-097-1002..........  Lake............  Waukegan.......           0.0           0.0           0.0           0.0
17-097-1007..........  Lake............  Zion...........           0.0           0.0           0.0           0.0
17-111-0001..........  McHenry.........  Cary...........           0.0           0.0           0.0           0.0
17-197-1011..........  Will............  Braidwood......           0.0           0.0           0.0           0.0
----------------------------------------------------------------------------------------------------------------
                                                     INDIANA
----------------------------------------------------------------------------------------------------------------
18-089-0022..........  Lake............  Gary...........           0.0           1.0           0.0           0.3

[[Page 30442]]

 
18-089-2008..........  Lake............  Hammond........           0.0           0.0           0.0           0.0
18-089-0030..........  Lake............  Whiting........           0.0           0.0           0.0           0.0
18-127-0024..........  Porter..........  Ogden Dunes....           0.0           1.0           0.0           0.3
18-127-0026..........  Porter..........  Valparaiso.....           0.0           0.0           0.0           0.0
----------------------------------------------------------------------------------------------------------------
                                                    WISCONSIN
----------------------------------------------------------------------------------------------------------------
55-059-0019..........  Kenosha.........  Chiwaukee                 0.0           0.0           0.0           0.0
                                          Prairie.
----------------------------------------------------------------------------------------------------------------

    From Table 2, it can be seen that the Chicago-Gary-Lake County, IL-
IN area is attaining the 1-hour ozone standard for the 2004-2006 period 
because there were no average expected exceedances greater than 1.0.

B. Has the State of Indiana Committed To Maintain the Ozone Monitoring 
System in Lake and Porter Counties?

    IDEM commits to maintain the ozone monitoring system in Lake and 
Porter Counties during the maintenance period. Any necessary changes in 
the ozone monitoring system will be discussed in advance with the EPA. 
Therefore, the State of Indiana meets a redesignation condition that we 
normally require of States seeking redesignation of areas to attainment 
of the ozone standard.

C. Have Lake and Porter Counties and the State of Indiana Met All of 
the Requirements of Section 110 and Part D of the CAA Applicable for 
Purposes of Redesignation, and Do Lake and Porter Counties Have a Fully 
Approved SIP Under Section 110(k) of the CAA for Purposes of 
Redesignation to Attainment?

    We have determined that Lake and Porter Counties and the State of 
Indiana have met all SIP requirements currently applicable for purposes 
of redesignation to attainment of the 8-hour NAAQS for this area under 
section 110 of the CAA (general SIP requirements). We have also 
determined that Indiana has met the SIP requirements applicable for 
purposes of redesignation under subpart 2 part D of title I of the CAA 
(requirements specific to ozone nonattainment areas classified under 
subpart 2. See section 107(d)(3)(E)(v) of the CAA. In addition, we have 
determined that all applicable requirements, with the exception of the 
base year emissions inventory, are approved in the Indiana SIP. As 
discussed in section VIII, below, as part of today's action, EPA is 
proposing to approve Indiana's 2002 base year emissions inventory. See 
section 107(d)(3)(E)(ii) of the CAA. In making these determinations, we 
reviewed the CAA requirements which are applicable to Lake and Porter 
Counties for purposes of redesignation, and concluded that the 
applicable portions of the SIP meeting these requirements are fully 
approved under section 110(k) of the CAA. We note that SIPs must be 
fully approved only with respect to currently applicable requirements 
of the CAA, which in this case are those CAA requirements applicable to 
Lake and Porter Counties at the time the State submitted a complete 
ozone redesignation request for this area, on September 12, 2006.
1. Lake and Porter Counties Have Met All Requirements of Section 110 
and Part D of the CAA Applicable for Purposes of Redesignation for the 
8-Hour NAAQS
    The September 4, 1992 Calcagni memorandum describes EPA's 
interpretation of section 107(d)(3)(E) of the CAA. Under this 
interpretation, to qualify for redesignation of an area to attainment, 
the State and the area must meet the relevant CAA requirements that 
come due prior to the State's submittal of a complete redesignation 
request for the area. See also a September 17, 1993 memorandum from 
Michael Shapiro, Acting Assistant Administrator for Air and Radiation, 
subject ``State Implementation Plan (SIP) Requirements for Areas 
Submitting Requests for Redesignation to Attainment of the Ozone and 
Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) On 
or After November 15, 1992'' and 66 FR 12459, 12465-12466 (March 7, 
1995) redesignation of Detroit-Ann Arbor, Michigan to attainment of the 
1-hour ozone NAAQS. Applicable requirements of the CAA that come due 
subsequent to the State's submittal of a complete redesignation request 
remain applicable until a redesignation to attainment of an area is 
approved, but are not required as a prerequisite to redesignation. See 
section 175A(c) of the CAA. Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 
2004). See also 68 FR 25424, 25427 (May 12, 2003) (redesignation of the 
St. Louis/East St. Louis area to attainment of the 1-hour ozone NAAQS).
a. Section 110 and General SIP Requirements
    Section 110(a) of title I of the CAA contains the general 
requirements for a SIP, which include: Enforceable emission limitations 
and other control measures, means, or techniques; provisions for the 
establishment and operation of appropriate devices necessary to collect 
data on ambient air quality; and programs to enforce the emission 
limitations. General SIP elements and requirements are specified in 
section 110(a)(2) of title I, part A of the CAA. These requirements and 
SIP elements include, but are not limited to, the following: (i) 
Submittal of a SIP that has been adopted by the State after reasonable 
public notice and a public hearing; (ii) provisions for establishment 
and operation of appropriate procedures needed to monitor ambient air 
quality; (iii) provisions for implementation of a source permit 
program; (iv) provisions for implementation of new source part C 
requirements (Prevention of Significant Deterioration (PSD)) and new 
source part D requirements (NSR); (v) criteria for stationary source 
emission control measures, monitoring, and reporting; (vi) provisions 
for air quality modeling; and, (vii) provision for public and local 
agency participation.
    SIP requirements and elements are discussed in the following EPA 
documents: The September 4, 1992 Calcagni memorandum; and, the 
September 17, 1993 Shapiro memorandum. See also other guidance 
documents discussed above.
    Section 110(a)(2)(D) of the CAA requires SIPs to contain certain 
measures to prevent sources in one state from significantly 
contributing to air

[[Page 30443]]

quality problems in another state. However, the section 110(a)(2)(D) 
requirements for a state are not linked with a particular nonattainment 
area's classification. EPA believes that the requirements linked with a 
particular nonattainment area's classification are the relevant 
measures to evaluate when reviewing a redesignation request. The 
transport SIP submittal requirements, where applicable, continue to 
apply to a state regardless of the designation of any one particular 
area in the State.
    We believe that these requirements should not be construed to be 
applicable requirements for purposes of redesignation. 65 FR 37890 
(June 19, 2000), 66 FR 50399 (October 19, 2001), 68 FR 25418, 25426-27 
(May 13, 2003). Further, we believe that the other section 110 elements 
described above that are not connected with nonattainment plan 
submissions and that are not linked with an area's attainment status 
are also not applicable requirements for purposes of redesignation. A 
state remains subject to these requirements after an area is 
redesignated to attainment. We conclude that only the section 110 and 
part D requirements which are linked with an area's designation and 
classification are the relevant measures for evaluating this aspect of 
a redesignation request. This approach is consistent with EPA's policy 
on applicability of conformity and oxygenated fuels requirements for 
redesignation purposes, as well as with section 184 ozone transport 
control requirements. See: Reading, Pennsylvania proposed and final 
rulemakings (61 FR 53174-53176, October 10, 1996 and 62 FR 24826, May 
7, 1997); Cleveland-Akron-Lorain, Ohio final rulemaking (61 FR 20458, 
May 7, 1996); and Tampa, Florida final rulemaking (60 FR 62748, 
December 7, 1995). See also the discussion on this issue in the 
Cincinnati, Ohio ozone redesignation (65 FR 37890, June 19, 2000), and 
the Pittsburgh, Pennsylvania ozone redesignation (66 FR 50399, October 
19, 2001).
    We believe that section 110 elements not linked to the area's 
nonattainment status are not applicable for purposes of redesignation. 
Any section 110 requirements that are linked to the Part D requirements 
for 8-hour ozone nonattainment areas are not yet due, because, as noted 
below, the only Part D requirements applicable for purposes of 
redesignation under the 8-hour standard that have become due are the 
emissions inventory and emissions statement. Therefore EPA concludes 
that Indiana has satisfied the criterion of section 107(d)(3)(E) 
regarding section 110 of the Act.
    Nonetheless, we also note that the EPA has previously approved 
provisions in the Indiana SIP addressing section 110 elements under the 
1-hour ozone standard.
b. Part D SIP Requirements Under the 8-Hour Ozone Standard
    EPA has determined that the Indiana SIP, with the approval of the 
base year emissions inventory, will meet applicable SIP requirements 
under part D of the CAA as they apply to redesignation to attainment of 
the 8-hour ozone NAAQS. Under part D, an area's classification 
indicates the requirements to which it will be subject. Subpart 1 of 
part D, which includes sections 172-176 of the CAA, sets forth the 
basic nonattainment area plan requirements applicable to all 
nonattainment areas. Subpart 2 of part D, which includes section 182 of 
the CAA, establishes additional, specific requirements for ozone 
nonattainment areas dependent on an area's nonattainment 
classification.
    The subpart 1 requirements for all nonattainment areas are 
contained in sections 172(c)(1-9) and section 176. A thorough 
discussion of the requirements of section 172 can be found in the 
General Preamble for Implementation of Title I (57 FR 13498).
    The SIP requirements of subpart 2 which are relevant to the review 
of Indiana's ozone redesignation request are contained in sections 
182(a) (marginal nonattainment area requirements) and 182(b) (moderate 
nonattainment area requirements) of the CAA.\6\ As noted in our 
discussion of 1-hour nonattainment requirements, below, as part of a 
severe 1-hour ozone nonattainment area, the State of Indiana and Lake 
and Porter Counties had previously been subject to the requirements of 
sections 182(a), 182(b), and 182(c) and 182(d) of the CAA.\7\
---------------------------------------------------------------------------

    \6\ As a part of a moderate nonattainment area for the 8-hour 
ozone NAAQS, Lake and Porter Counties are subject to requirements 
for both moderate nonattainment areas and marginal nonattainment 
areas because the requirements of section 182 are cumulative. Under 
this section, nonattainment areas are subject to all requirements at 
their classification level and all requirements for areas of lower 
classification.
    \7\ As a severe nonattainment area under the 1-hour ozone NAAQS, 
Lake and Porter Counties had to comply with requirements for severe 
ozone nonattainment areas.
---------------------------------------------------------------------------

    As a moderate nonattainment area under the 8-hour ozone NAAQS, the 
Chicago-Gary-Lake County nonattainment area was subject to subpart 2 
requirements for moderate nonattainment areas. Only two ``new'' 
requirements for moderate nonattainment areas under the 8-hour ozone 
NAAQS came due prior to Indiana's September 12, 2006 submittal of the 
complete redesignation request for Lake and Porter Counties. One such 
requirement is that the State submit a 2002 base year comprehensive, 
accurate inventory of actual emissions of VOC and NO<INF>X</INF> in 
Lake and Porter Counties in compliance with section 182(a)(1) of the 
CAA. This requirement came due on June 15, 2006, prior to submission of 
the area's redesignation request. 70 FR 71612, 71664 (November 29, 
2005) 40 CFR section 5.915. On March 26, 2007, IDEM submitted 
documentation of 2002 base year VOC and NO<INF>X</INF> emissions in 
every county in the State. The base year emissions documentation for 
Lake and Porter Counties is reviewed below in section VIII of this 
proposed rule. EPA proposes to conclude that Indiana has complied with 
this requirement.
    A second requirement which came due on June 15, 2006 is a 
requirement under section 182(a)(3)(B) of the CAA for State rules 
requiring major stationary sources to annually report facility 
emissions of VOC and NO<INF>X</INF> (annual emission statements). 
Indiana revised its State rule regarding emission statements under the 
8-hour ozone standard, and we approved this rule on March 29, 2007 (72 
FR 14678).
    We believe that other requirements under subparts 1 and 2 that 
apply to Lake and Porter Counties did not come due prior to the State's 
submittal of a complete ozone redesignation request for this area and 
thus do not apply to an evaluation of the redesignation request. Under 
EPA's longstanding policy these requirements are not applicable for 
purposes of redesignation. See September 4, 1992 Calcagni memorandum, 
Detroit-Ann Arbor redesignation, 60 FR 12459, 12465-66 (March 7, 1995), 
and Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004).
    For example, the requirement for submission of an ozone attainment 
demonstration as contained in section 172(c)(1) was not yet applicable 
for this area, nor was the requirement for contingency measures under 
section 172(c)(9) and 182(c)(9), both of which were not due until June 
15, 2007.
    In addition, no section 172(c)(1) and 182(b)(2) RACT requirement 
submission under the 8-hour standard is applicable for purposes of 
redesignation, since the State submitted a redesignation request on 
September 12, 2006, prior to the due date of the RACT requirements. 
Thus because the RACT requirements did not become due until after 
September 15, 2006, under EPA's longstanding policy

[[Page 30444]]

these requirements are not applicable for purposes of redesignation. 
Preliminary monitoring data through the time of submittal of the 
redesignation request showed that the area was attaining the standard, 
and quality-assured data subsequently showed that the area continued to 
attain the standard through the end of the ozone season. In addition, 
the fourth-high concentration for all monitoring sites had occurred by 
mid-July, 2006. The State of Indiana was tracking peak ozone 
concentrations in 2006, and through the near-realtime AIRNOW public 
information system; so was EPA. EPA and the State were aware of the 
fact that the likely high ozone concentrations in 2006 had occurred 
prior to the State's submittal of the redesignation request. After 
reviewing the peak 8-hour ozone concentrations in 2006, we found that 
the top four 8-hour ozone concentrations for all monitoring sites in 
the Chicago-Gary-Lake County, IL-IN area and the Chiwaukee Prairie site 
during 2006 occurred well prior to September 12. In recent previous 
years as well, no fourth high concentration in excess of the standard 
had occurred after September 12, and values monitored in late September 
were below the standard. In 2004-2006, no values above 85 ppm were 
recorded after September 12. Given the fact that peak ozone 
concentrations in this area usually occur in June, July, and August, it 
was highly unlikely at the time of submittal that any additional 
exceedances would occur after submittal of the redesignation request, 
and quality-assured data showed that none did in fact occur.
    Moreover, with respect to conformity and NSR requirements, EPA 
believes that these are not applicable requirements for purposes of 
evaluating a redesignation request.
    Under Section 176(c), the CAA requires states to establish criteria 
and procedures to ensure that Federally-supported or funded activities, 
including highway projects, conform to the air planning goals in the 
applicable SIPs. The requirement to determine conformity applies to 
transportation plans, programs, and projects developed, funded, or 
approved under Title 23 U.S.C. and the Federal Transit Act 
(transportation conformity) as well as to all other Federally-supported 
or funded projects (general conformity). State conformity SIP revisions 
must be consistent with Federal conformity regulations that EPA issued 
pursuant to the CAA. EPA's longstanding interpretation is that 
conformity requirements are not applicable requirements for purposes of 
evaluating redesignation requests. State conformity rules are still 
required after redesignation of areas to attainment of a NAAQS, and 
Federal conformity rules apply where state rules have not been 
approved. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001). See also 60 FR 
62748 (December 7, 1995) (Tampa, Florida).
    EPA has also determined that areas being redesignated need not 
comply with the requirement that a NSR program be approved prior to 
redesignation (although Indiana does have an approved NSR program), 
provided that the states demonstrate maintenance of the standard 
without part D NSR. PSD requirements will apply after redesignations to 
attainment. A more detailed rationale for this view is described in a 
memorandum from Mary Nichols, Assistant Administrator for Air and 
Radiation, dated October 14, 1994, entitled, ``Part D New Source Review 
Requirements for Areas Requesting Redesignation to Attainment.'' 
Indiana has demonstrated that Lake and Porter Counties and the Chicago-
Gary-Lake County, IL-IN area will be able to maintain the 8-hour ozone 
standard without part D NSR in effect, and therefore, we conclude that 
the State need not have a fully approved part D NSR program prior to 
approval of the redesignation request. The State's PSD program will 
become effective in Lake and Porter Counties upon redesignation to 
attainment. See rulemakings for: Detroit, Michigan (60 FR 12467-12468, 
March 7, 1995); Cleveland-Akron-Lorain, Ohio (61 FR 20458, 20469-20470, 
May 7, 1996); Louisville, Kentucky (66 FR 53665, October 23, 2001); 
and, Grand Rapids, Michigan (61 FR 31834-31837, June 21, 1996).
2. Lake and Porter Counties Have a Fully Approved SIP Under Section 
110(k) of the CAA
    Except as noted above with respect to emissions inventories, EPA 
has fully approved the Indiana SIP for Lake and Porter Counties under 
section 110(k) of the CAA for all requirements applicable for purposes 
of redesignation. EPA may rely on prior SIP approvals in approving a 
redesignation request (See the September 4, 1992 John Calcagni 
memorandum, page 3, Southwestern Pennsylvania Growth Alliance v. 
Browner, 144 F.3d 984, 989-990 (6th Cir. 1998), and Wall v. EPA, 265 
F.3d 426 (6th Cir. 2001)) plus any additional measures it may approve 
in conjunction with a redesignation action. See 68 FR 25426 (May 12, 
2003). Indiana has adopted and submitted, and EPA has fully approved at 
various times, provisions addressing the various 1-hour required SIP 
elements applicable to Lake and Porter Counties for purposes of 
redesignation, as well as the emissions statement provision for the 8-
hour standard. As indicated above, EPA believes that the section 110 
elements not connected with nonattainment plan submissions and not 
linked to the area's nonattainment status are not applicable 
requirements for purposes of reviewing the State's redesignation 
request. EPA also believes that since the part D 8-hour requirements, 
(with the exception of the requirements for submittal of the emissions 
statement, and the requirement for submittal of a base year emissions 
inventory, which we address here, including documentation of the base 
year emissions supplied by the State subsequent to the submittal of the 
ozone redesignation request), did not become due prior to Indiana's 
submission of a final, complete redesignation request for Lake and 
Porter Counties, they also are not applicable requirements for purposes 
of redesignation.

D. Have Lake and Porter Counties Met the Part D Nonattainment Area and 
Section 110 Requirements Under the 1-Hour Ozone Standard?

    In this section of the proposed rule, we discuss the 1-hour ozone 
SIP emission control requirements of the CAA applicable to Lake and 
Porter Counties. As noted above, prior to the revocation of the 1-hour 
ozone standard, the Chicago-Gary-Lake County, IL-IN area was a severe 
nonattainment area under the 1-hour ozone standard. In reviewing the 
State of Indiana's ozone redesignation request for Lake and Porter 
Counties, we assessed the compliance of this area with the CAA 
requirements under the 1-hour ozone standard. If the 1-hour standard is 
deemed to be reinstated, EPA would construe the State's request for 
redesignation under the 8-hour standard as also constituting a request 
under the 1-hour standard. We conclude that Lake and Porter Counties 
and the State have met all CAA requirements applicable to a severe 1-
hour ozone nonattainment area.
    Lake and Porter Counties, as part of the Chicago-Gary-Lake County, 
IL-IN area, were subject to ozone requirements for severe 1-hour ozone 
nonattainment areas pursuant to sections 182(a) through 182(d) of the 
CAA.
    The following paragraphs discuss how the applicable requirements 
have been met, if the 1-hour standard is deemed to be reinstated.

[[Page 30445]]

RACT
    Section 182(a)(2)(A) requires RACT corrections, Section 182(b)(2) 
of the CAA requires RACT for each category of VOC sources covered by a 
Control Technique Guideline (CTG) and for all other major sources of 
VOC within an ozone nonattainment area, and Section 182(d) specifies 
requirements for severe areas, including a major source cutoff of 25 
tons per year. Section 182(f) of the CAA requires major sources of 
NO<INF>X</INF> in an ozone nonattainment area to be covered by the same 
types of emission controls required for sources of VOC, or, in other 
words, it requires NO<INF>X</INF> RACT. Through rulemakings on: March 
6, 1992 (57 FR 8082); May 4, 1995 (60 FR 22240); July 5, 1995 (60 FR 
34856); January 17, 1997 (62 FR 2591 and 62 FR 2593); October 30, 1996 
(61 FR 55889); June 29, 1998 (63 FR 35141); and, June 8, 2000 (65 FR 
36343), EPA fully approved Indiana's VOC RACT regulation SIP revisions 
for Control Technique Guideline (CTG) sources and for non-CTG sources 
which have an applicability threshold of 25 tons per year (tpy) or 
more. On January 26, 1996 (61 FR 2428), EPA approved a NO<INF>X</INF> 
control waiver request under section 182(f) of the CAA, exempting Lake 
and Porter Counties from the NO<INF>X</INF> RACT requirement of section 
182(f) as it applied to the 1-hour ozone NAAQS.
NSR
    Section 182(a)(2)(C) requires States to adopt an NSR permit program 
and to correct the existing NSR permit programs to meet EPA NSR 
guidelines issued prior to 1990. EPA approved Indiana's NSR permit 
program, including the requirements in section 182(c)(6), (c)(7) and 
(c)(8), and the offset requirements in section 182(d)(2) through 
rulemakings on October 7, 1994 (59 FR 51108), August 18, 1995 (60 FR 
43008), and July 21, 1997 (62 FR 38919). Moreover, as noted above, EPA 
believes that these are not applicable requirements for purposes of 
evaluating a redesignation request.
Major Source Emission Statements
    Section 182(a)(3)(B) of the CAA requires States to adopt rules 
requiring major sources of VOC and NO<INF>X</INF> in an ozone 
nonattainment area to submit annual emissions statements regarding 
their emissions for the prior years. Through rulemakings on August 9, 
1994 (59 FR 29956) and October 29, 2004 (69 FR 63069), EPA approved 
Indiana's emissions statements regulations for 1-hour ozone 
nonattainment areas.
Vehicle I/M
    Through rulemakings on March 19, 1996 (61 FR 11142) and September 
27, 2001 (66 FR 49297), EPA fully approved Indiana's vehicle I/M 
program as meeting the enhanced program requirements of section 
182(c)(3) of the CAA. Therefore, Lake and Porter Counties meet the I/M 
requirements for a severe 1-hour ozone nonattainment area.
ROP
    Sections 182(b)(1)(A) and 182(c)(2)(B) of the CAA establish the ROP 
requirements for ozone nonattainment areas. EPA has fully approved 
Indiana's SIP revisions that demonstrate that Indiana has achieved ROP 
in Lake and Porter Counties. On July 18, 1997 (62 FR 38457), EPA 
approved Indiana's plan to achieve a 15 percent reduction in VOC 
emissions in Lake and Porter Counties that was required in section 
182(b) of the CAA. On January 26, 2000 (65 FR 4126), EPA approved 
Indiana's plan to achieve ROP between 1996 and 1999 in Lake and Porter 
Counties, meeting the ROP requirements of section 182(c) of the CAA. 
Finally, on November 13, 2001 (66 FR 56944), EPA approved Indiana's 
plan to achieve ROP emission reductions from 1999 through 2007.
Stage II Gasoline Vapor Recovery
    On November 3, 1999 (64 FR 59642), EPA approved Indiana's Stage II 
gasoline vapor recovery program for Lake and Porter Counties as 
required by section 182(b)(2) of the CAA.
Clean Fuel Fleet Program
    On March 21, 1996 (61 FR 11552), EPA approved Indiana's clean fuel 
fleet program rules as required by section 182(c)(4) of the CAA.
Conformity
    The conformity portion of the Court's ruling in South Coast Air 
Quality Management District v. EPA does not impact the redesignation 
request for Lake and Porter Counties because there are no conformity 
requirements that are relevant to redesignation requests for any 
standard, including the requirement to submit a transportation 
conformity SIP.\8\ Under longstanding EPA policy, EPA believes it is 
reasonable to interpret the conformity SIP requirements as not applying 
for purposes of evaluating a redesignation request under section 107(d) 
because State conformity rules are still required after redesignation 
and Federal conformity rules apply where State rules have not been 
approved. See 40 CFR 51.390. Also see Wall v. EPA, 265 F.3d 426 (6th 
Cir. 2001), upholding this interpretation, and 60 FR 62748 (December 7, 
1995) (Tampa, Florida ozone redesignation).
---------------------------------------------------------------------------

    \8\ CAA section 176(c)(4)(E) requires States to submit revisions 
to their SIPs to reflect certain Federal criteria and procedures for 
determining transportation conformity. Transportation conformity 
SIPs are different from motor vehicle emissions budgets that are 
established in control strategy SIPs and maintenance plans.
---------------------------------------------------------------------------

Section 185 Fee Provisions
    Although the fees provision under section 185(a) of the CAA was not 
specifically identified in the May 10, 1995 Clean Data Policy 
memorandum as one of the requirements subject to EPA's Clean Data 
Policy interpretation, EPA's statutory interpretation extends to this 
provision. Under section 185(a), the fees provision is expressly a 
component of the attainment demonstration and, since the requirement 
for an attainment demonstration is suspended, the requirement for its 
components is also suspended when an area is monitoring attainment of 
the standard. See 40 CFR section 51.918. EPA has taken the same 
position with respect to the Reasonably Available Control Measures 
(RACM) requirement, which is also a component of the attainment 
demonstration. 70 FR 71645-71646 (November 29, 2005). EPA proposes to 
find that Lake and Porter Counties are attaining the 1-hour ozone 
standard, and, thus, the requirement for submitting a fee provision as 
a component of the 1-hour attainment demonstration is suspended for so 
long as the area is attaining the standard and until it is redesignated 
to attainment.
Section 182(g) Milestones
    The Section 182(g) Milestones requirements are included in those 
measures subject to EPA's interpretation in its Clean Data Policy 
memorandum of May 10, 1995, and because EPA has determined that the 
area has attained the 1-hour standard, the requirement of section 
182(g) is not applicable for so long as the area attains the standard 
and until it is redesignated to attainment. See also 40 CFR section 
51.918.
Enhanced Ambient Monitoring
    On March 16, 1994 (59 FR 12168), EPA fully approved Indiana's SIP 
revision establishing an enhanced monitoring program in Lake and Porter 
Counties as required by section 182(c)(1) of the CAA.
Transportation Control Measures
    Within six years of November 15, 1990, and every three years 
thereafter, section 182(c)(5) of the CAA requires states to submit a 
demonstration of whether current aggregate vehicle mileage, aggregate 
vehicle emissions,

[[Page 30446]]

congestion levels, and other relevant traffic-related and vehicle 
emissions-related factors (collectively ``relevant parameters'') are 
consistent with those used for the area's ozone demonstration of 
attainment for serious and above 1-hour ozone nonattainment areas. If 
the levels of relevant parameters that are projected in the attainment 
demonstration are exceeded, a state has 18 months to develop and submit 
a revision of the applicable state implementation plan to include TCMs 
to reduce emissions to a level consistent with emissions levels in the 
attainment demonstration for an area.
    Alternatively, EPA has determined that nonattainment areas are not 
permanently locked into the estimates of future emissions given in the 
initial SIP submittal, nor locked into those in any subsequently 
approved amendment thereto. As we stated in the General Preamble, once 
approved, the amended SIP revision would have the effect of increasing 
the allowable motor vehicle emissions (including those due to changes 
in the relevant parameters). See 57 FR 13498 at 13520 (April 16, 1992). 
Thus, if actual emissions exceed those projected in an area's 
attainment demonstration, a state may at any time before the area 
reaches attainment, amend an area's SIP to demonstrate attainment while 
altering the mix of emissions reductions in the SIP from various kinds 
of sources (motor vehicle versus non-motor vehicle), rather than 
include TCMs in the SIP.
    On April 30, 1998, Indiana submitted an ozone attainment 
demonstration based on a range of possible emission control measures 
reflecting various emission control alternatives and did not specify a 
single set of emission control measures. On December 16, 1999 (64 FR 
70514), the EPA proposed to conditionally approve the 1-hour ozone 
attainment demonstration for Lake and Porter Counties. On December 21, 
2000, Indiana submitted a SIP revision request consisting of a 
demonstration that the Chicago-Gary-Lake County, IL-IN 1-hour ozone 
nonattainment area would attain the 1-hour ozone NAAQS by November 15, 
2007, the statutory attainment deadline for the area. The requested SIP 
revision was fully approved on November 13, 2001 (66 FR 56944). EPA, 
therefore, concludes that Indiana has complied with the substance of 
section 182(c)(5) of the CAA, has no currently due section 182(c)(5) 
obligations, and, by the virtue of EPA's approval of the 1-hour ozone 
attainment demonstration, has never triggered an obligation under 
section 182(c)(5) to include additional TCMs in the 1-hour ozone SIP 
for Lake and Porter Counties. In addition, the section 182(c)(5) 
requirements are also included in those measures subject to EPA's 
interpretation under EPA's May 10, 1995 Clean Data Policy memorandum. 
EPA therefore proposes in the alternative to find that since Lake and 
Porter Counties are attaining the 1-hour ozone standard, any 
requirement for submitting the section 182(c)(5) measures is suspended 
for so long as the area is attaining the standard and until it is 
redesignated to attainment. See also 40 CFR 51.918.
Vehicle Miles Traveled
    Section 182(d)(1)(A) of the CAA requires severe ozone nonattainment 
areas to offset the growth in emissions attributable to growth in 
Vehicle Miles Traveled (VMT); to select and implement TCMs necessary to 
comply with the periodic emission reduction requirements of section 
182(b) and (c); and, to consider TCMs specified in section 108(f), and 
implement such TCMs as necessary to demonstrate attainment with the 
ozone standard. Through rulemakings on July 28, 1995 (60 FR 38718) and 
August 3, 2001 (66 FR 40829), EPA approved Indiana's TCMs as meeting 
these requirements of the CAA.
NO<INF>X</INF> Requirements
    With respect to NO<INF>X</INF> requirements under section 182(f) of 
the CAA, as discussed above, EPA has approved a NO<INF>X</INF> control 
waiver for Lake and Porter Counties. See 61 FR 2428 (January 26, 1996). 
In addition, we have approved Indiana NO<INF>X</INF> emission control 
regulations adopted in response to EPA's NO<INF>X</INF> SIP call. See 
66 FR 56465 (November 8, 2001) and 68 FR 69025 (December 11, 2003).
Emission Inventories
    Section 182(a)(1) requires that States submit comprehensive, 
accurate, current inventories of actual emissions from all sources, 
within 2 years of enactment of the CAA amendments of 1990. This 
inventory requirement was approved on January 4, 1995 (60 FR 375). 
Periodic VOC and NO<INF>X</INF> emission inventories were required to 
be submitted every three years, beginning in November 15, 1995. 
NO<INF>X</INF> and VOC emission inventory updates for 1999, 2002, and 
2004 are contained in Indiana's September 12, 2006 submittal. EPA is 
proposing to approve these emission inventory updates as meeting the 
section 182(a)(3)(A) requirement of the CAA for periodic emission 
inventory submissions under the 1-hour standard.
Ozone Attainment Demonstration
    As noted above, on November 13, 2001 (66 FR 56944), EPA fully 
approved Indiana's 1-hour ozone attainment demonstration SIP revision 
for the Chicago-Gary-Lake County, IL-IN 1-hour ozone nonattainment 
area.
Contingency Measures
    Sections 172(c)(9) and 182(c)(9) of the CAA require ozone control 
plans to contain measures to be implemented in the event that any 
milestone in the ozone control plan is missed. EPA approved Indiana's 
contingency measures for attainment of the 1-hour ozone standard in 
Lake and Porter Counties in our approval of the State's ozone 
attainment plan. See 66 FR 56944 (November 13, 2001).
    For the above reasons EPA believes that Indiana has met all 
applicable part D requirements under the 1-hour ozone standard for 
purposes of redesignation. It is noted that the State has committed to 
maintain the VOC and NO<INF>X</INF> emission controls already in place.
    In addition, EPA has previously approved provisions in the Indiana 
SIP addressing section 110 elements under the 1-hour standard. We have 
analyzed the Indiana SIP as codified in 40 CFR part 52, subpart P, and 
have determined that it is consistent with the requirements of section 
110(a)(2) of the CAA.
    Therefore, with regard to compliance with the requirements for the 
1-hour ozone standard, the State has met all applicable requirements 
for purpose of redesignation under the 1-hour standard, were that 
standard to be deemed reinstated. In addition, as discussed below, the 
State's maintenance plan for the 8-hour standard also provides for 
maintenance of the 1-hour standard (the area has an approvable ozone 
maintenance plan and the State is committed to revise this plan within 
8 years after the redesignation of the area to attainment). We also 
find that, as set forth below, the area has achieved the ozone standard 
due to the implementation of permanent, enforceable emission controls; 
and the EPA has fully approved an ozone SIP meeting all requirements 
applicable for purposes of redesignation. As noted below, the State of 
Indiana and Lake and Porter Counties meet these requirements for the 8-
hour ozone NAAQS. We propose to find that Lake and Porter Counties 
would also qualify for redesignation to attainment of the 1-hour ozone 
NAAQS if this standard is deemed to be reinstated.

[[Page 30447]]

E. Are the Air Quality Improvements in Lake and Porter Counties and in 
the Chicago-Gary-Lake County, IL-IN Nonattainment Area Due to Permanent 
and Enforceable Emission Reductions Resulting From the Implementation 
of the Indiana SIP and Applicable Federal Air Pollution Control 
Regulations and Other Permanent and Enforceable Emission Reductions?

    To make the demonstration that the improvement in air quality is 
due to permanent and enforceable emissions reductions, the State of 
Indiana has documented changes in VOC and NO<INF>X</INF> emissions from 
all anthropogenic (man-made or man-based) sources in Lake and Porter 
Counties between 1999 and 2004, including 2002, an ozone standard 
violation year, and 2004, one of the years in which the Chicago-Gary-
Lake County, IL-IN area attained the 8-hour ozone standard. The State 
has also discussed the permanent and enforceable emission controls that 
have been implemented in Lake and Porter Counties, in the State of 
Indiana, and in other upwind areas that have contributed to the air 
quality improvement in Lake and Porter Counties.
    Table 3 summarizes the VOC and NO<INF>X</INF> emissions totals from 
the anthropogenic sources in Lake and Porter Counties for 1999 through 
2004. From the table, it can be seen that both VOC and NO<INF>X</INF> 
emissions in Lake and Porter Counties decreased between 1999 and 2004 
and, most importantly, between 2002, an ozone standard violation year, 
and 2004, an ozone standard attainment year.

 Table 3.--VOC and NOX Emissions from Anthropogenic Sources in Lake and
                 Porter Counties in Tons per Summer Day
------------------------------------------------------------------------
             Source sector                  1999       2002       2004
------------------------------------------------------------------------
VOC Emissions:
    Point..............................      28.84      24.58      25.62
    Area...............................      49.59      32.27      31.33
    On-Road Mobile.....................      33.29      20.00      18.90
    Non-Road Mobile....................      19.98      35.09      31.63
                                        --------------------------------
        Total..........................     131.70     111.94     107.48
NOX Emissions:
    Point..............................     214.58     186.44     148.20
    Area...............................      10.36       5.72       5.77
    On-Road Mobile.....................      49.92      55.00      65.95
    Non-Road Mobile....................      49.07      38.61      40.64
                                        --------------------------------
        Total..........................     323.93     285.77     260.56
------------------------------------------------------------------------

    Table 4 summarizes the NO<INF>X</INF> emission trends for Electric 
Generating Units (EGUs) in Northwest Indiana (Jasper, Lake, LaPorte, 
and Porter Counties) and statewide for 1999 through 2005.

  Table 4.--NOX Emission Trends for Electric Generating Units in Northwest Indiana and Statewide--Emissions in
                              Thousands of Tons per Ozone Season (April-September)
----------------------------------------------------------------------------------------------------------------
                   Area                       1999     2000     2001     2002     2003     2004     2005
---------------------------------------------------------------------------------------------------------
Northwest Indiana.........................     31.8     25.0     27.4     22.7     18.0     11.8     10.6
Statewide.................................    149.8    133.9    136.1    114.0     99.3     66.6     55.5
----------------------------------------------------------------------------------------------------------------

    As noted in Tables 3 and 4, the total VOC emissions in Lake and 
Porter Counties and the EGU NO<INF>X</INF> emissions in Northwest 
Indiana and statewide have declined between 1999 and 2004. IDEM notes 
that these emission decreases have resulted from the implementation of 
permanent and enforceable emission controls, such as implementation of 
RACT rules, tighter Federal standards for new vehicles, Title IV of the 
CAA, and NO<INF>X</INF> controls required by the Indiana NO<INF>X</INF> 
SIP. Specifically in Lake and Porter Counties, the following emission 
control measures were implemented: RACT rules found in volume 326 of 
the Indiana Administrative Code (IAC) chapter 8 (326 IAC 8), including 
IAC 8-1 (best available control technology for new source facilities), 
IAC 8-2 (surface coating emission limitations), IAC 8-3 (solvent 
degreasing controls), IAC 8-4 (petroleum source controls), IAC 8-5 
(miscellaneous operation controls), and IAC 8-6 (organic solvent 
emission limitations); VOC emission controls implemented to meet Rate-
Of-Progress (ROP) requirements, including the following:

1. Enhanced Vehicle Inspection and Maintenance
2. Stage II Vapor Recovery on Gasoline Marketing Sources
3. Reformulated Gasoline
4. National VOC Emission Standards for Architectural Coatings
5. Residential Open Burning Ban
6. Non-Control Technology Guideline Source RACT
7. National Emission Standards for Benzene from Coke Oven By-Product 
Recovery Plants
8. National Emission Standards for Coke Oven Batteries
9. Federal Phase I Reformulated Gasoline for Small Non-Road Engines
10. Federal Controls on Small Spark-Ignited Engines
11. Commercial/Consumer Solvent Reformulation Rule
12. Volatile Organic Liquid Storage RACT
13. Sinter Plant Rule
14. Municipal Solid Waste Landfill Rule
15. Petroleum Refineries National Emission Standard for Hazardous Air 
Pollutants
16. Banning of the Use of Untreated Water for Quenching, and,

[[Page 30448]]

17. Cold Cleaner Degreaser RACT (an extension of 326 IAC 8-3).
NO<INF>X</INF> emission controls in Lake and Porter County resulted 
from the implementation of the NO<INF>X</INF> emission control 
requirements and emission caps included in the State's NO<INF>X</INF> 
SIP. Beginning in 2004, this set of NO<INF>X</INF> control rules 
accounted for a reduction of approximately 33 percent statewide from 
2003 EGU emissions. IDEM also notes that other states have also 
implemented similar NO<INF>X</INF> emission controls, resulting in 
reduced ozone and ozone precursor transport into Lake and Porter 
Counties and into the Chicago-Gary-Lake County, IL-IN ozone 
nonattainment area.

    IDEM is convinced that all of these VOC and NO<INF>X</INF> emission 
controls, which are permanent and enforceable, are responsible for the 
observed ozone air quality improvement in Lake and Porter Counties and 
have contributed significantly to the attainment of the 8-hour ozone 
NAAQS in the Chicago-Gary-Lake County, IL-IN area. See also the 
discussion of Temperature Ozone Exceedance Frequency Study in section 
VII B. of this proposal.
    Besides the State's VOC RACT, ROP, and NO<INF>X</INF> emission 
control requirements, other Federal emission control requirements have 
recently resulted in VOC and NO<INF>X</INF> emission reductions or will 
shortly further reduce VOC and NO<INF>X</INF> emissions in Northwest 
Indiana and throughout the Chicago-Gary-Lake County, IL-IN area. These 
emission reduction requirements include the following:
    Tier 2 Emission Standards for Vehicles and Gasoline Sulfur 
Standards. These emission control requirements result in lower 
emissions from new cars and light duty trucks, including sport utility 
vehicles. The Federal rules are being phased in between 2004 and 2009. 
The EPA has estimated that, by the end of the phase-in period, the 
following vehicle NO<INF>X</INF> emission reductions will occur 
nationwide: Passenger cars (light duty vehicles) (77 percent); light 
duty trucks, minivans, and sports utility vehicles (86 percent; and 
larger sports utility vehicles, vans, and heavier trucks (69 to 95 
percent). VOC emission reductions are also expected to range from 12 to 
18 percent, depending on vehicle class, over the same period. Although 
some of these emission reductions have already occurred by the 2004-
2006 attainment years, most of these emission reductions will occur 
during the maintenance period for Lake and Porter Counties.
    Heavy-Duty Diesel Engines. In July 2000, EPA issued a final rule to 
control the emissions from highway heavy duty diesel engines, including 
low-sulfur diesel fuel standards. These emission reductions are being 
phased in between 2004 and 2007. This rule is expected to result in a 
40 percent decrease in NO<INF>X</INF> emissions from heavy duty diesel 
vehicles.
    Non-Road Diesel Rule. Issued in May 2004, this rule generally 
applies to new stationary diesel engines used in certain industries, 
including construction, agriculture, and mining. In addition to 
affecting engine design, this rule includes requirements for cleaner 
fuels. It is expected to reduce NO<INF>X</INF> emissions from these 
engines by up to 90 percent, and to significantly reduce particulate 
matter and sulfur emissions from these engines in addition to the 
NO<INF>X</INF> emission reduction. This rule did not affect 2004 
emissions from these sources, but will limit emissions from new engines 
beginning in 2008.
    Indiana commits to maintain all existing emission control measures 
that affect Lake and Porter Counties and the Chicago-Gary-Lake County, 
IL-IN area after Lake and Porter Counties are redesignated to 
attainment of the 8-hour ozone NAAQS. All changes in existing rules 
affecting Lake and Porter Counties and new rules subsequently needed to 
provide for the maintenance of the 8-hour ozone NAAQS in Lake and 
Porter Counties will be submitted to the EPA for approval as SIP 
revisions.
    Thus, EPA proposes to determine that Lake and Porter Counties have 
met the requirement of section 107(d)(3)(E)(iii) of the CAA that the 
improvement in air quality is due to permanent and enforceable 
emissions reductions.

F. Do Lake and Porter Counties Have a Fully Approvable Ozone 
Maintenance Plan Pursuant to Section 175A of the CAA?

    In conjunction with its request to redesignate Lake and Porter 
Counties to attainment of the ozone NAAQS, Indiana submitted a SIP 
revision request to provide for maintenance of the 8-hour ozone NAAQS 
in this area for at least 10 years after the redesignation of this area 
to attainment of the 8-hour ozone NAAQS. EPA proposes to approve this 
maintenance plan pursuant to section 175A and section 107(d)(3)(E)(iv) 
of the CAA.
1. What Is Required in an Ozone Maintenance Plan?
    Section 175A of the CAA sets forth the required elements of air 
quality maintenance plans for areas seeking redesignation from 
nonattainment to attainment of a NAAQS. Under section 175A, a 
maintenance plan must demonstrate continued attainment of the 
applicable NAAQS for at least 10 years after the Administrator approves 
the redesignation to attainment. Within eight years after the 
redesignation, the State must submit a revised maintenance plan which 
demonstrates maintenance of the standard for 10 years following the 
initial 10-year maintenance period. To address the possibility of 
future NAAQS violations, the maintenance plan must contain such 
contingency measures, with a schedule for implementation, as EPA deems 
necessary, to assure prompt correction of any future NAAQS violations. 
The September 4, 1992 John Calcagni memorandum provides additional 
guidance on the content of maintenance plans. An ozone maintenance plan 
should, at minimum, address the following items: (1) The attainment VOC 
and NO<INF>X</INF> emissions inventories; (2) a maintenance 
demonstration showing maintenance for the 10 years of the maintenance 
period; (3) a commitment to maintain the existing monitoring network; 
(4) factors and procedures to be used for verification of continued 
attainment; and, (5) a contingency plan to prevent and/or correct a 
future violation of the NAAQS.
2. What Are the Attainment Emission Inventories for Lake and Porter 
Counties?
    IDEM prepared comprehensive VOC and NO<INF>X</INF> emission 
inventories for Lake and Porter Counties, including point (significant 
stationary sources individually inventoried), area (smaller and widely-
distributed stationary sources collectively inventoried by source type 
and geographical area), mobile on-road, and mobile non-road sources for 
2004 (the redesignation request's base year/attainment year). To 
develop the attainment year emission inventories, IDEM used the 
following approaches and sources of data.
a. Point Sources
    2004 point source emissions were compiled using IDEM's annual 
emissions statement database and the 2005 EPA Air Markets acid rain 
emissions inventory database.
b. Area Sources
    Area source VOC and NO<INF>X</INF> emissions were projected from 
Indiana's 2002 base year emissions inventory, which was previously 
submitted to EPA's National Emissions Inventory system. The 
documentation of this base year emissions inventory has been submitted 
by the State, and is reviewed elsewhere in this proposed rule.

[[Page 30449]]

c. On-Road Mobile Sources
    Mobile source emissions were calculated using the MOBILE6 emission 
factor model and traffic data (vehicle miles traveled, vehicle speeds, 
and vehicle type and age distributions by roadway link and area) 
developed using the region's travel-demand model. IDEM has provided 
detailed data summaries to document the calculation of on-road mobile 
source VOC and NO<INF>X</INF> emissions for 2004, as well as for the 
projection years of 2010 and 2020 (further discussed below).
d. Non-Road Mobile Sources
    2004 non-road mobile source emissions were projected for the 2002 
National Emissions Inventory (NEI) non-road mobile source emissions 
developed by the EPA. IDEM used the NEI emissions along with growth 
factors to grow the non-road mobile source emissions to 2004. To 
address concerns about the accuracy of some of the emissions for 
various source categories in EPA's non-road emissions, the Lake 
Michigan Air Directors Consortium (LADCO) contracted with several 
consulting companies to review the base data used by the EPA and to 
make recommendations for corrections to the model used to calculate the 
2002 emissions. Emissions were estimated for commercial marine vessels 
and railroads. Recreational motorboat populations and surrogates (used 
to assign emissions to each county) were updated by contracted 
consultants. The populations for the construction equipment category 
were reviewed and updated based on surveys completed in the Midwest, 
and the temporal allocation of agricultural sources was also updated. 
Based on these and other updates, the EPA revised the non-road 
estimation model for 2002, which was used for the basis for the 
projected 2004 non-road mobile source emissions.
    The 2004 attainment year VOC and NO<INF>X</INF> emissions for Lake 
and Porter Counties are summarized along with the 2010 and 2020 
projected emissions in Tables 5 below. We agree that the State has 
acceptably derived and documented the attainment year VOC and 
NO<INF>X</INF> emissions for Lake and Porter Counties.
3. Has the State Demonstrated Maintenance of the Ozone Standard in Lake 
and Porter Counties and in the Chicago-Gary-Lake County, IL-IN Ozone 
Nonattainment Area?
    As part of the September 12, 2006 redesignation request submittal, 
IDEM included a requested revision to the SIP to incorporate an ozone 
maintenance plan as required under section 175A of the CAA. The 
maintenance plan includes an ozone maintenance demonstration based on 
the comparison of projected emissions to the attainment year emissions 
levels. This demonstration shows that future (2010 and 2020) VOC and 
NO<INF>X</INF> emissions remain at or below the 2004 attainment year 
levels. Note that a maintenance demonstration need not be based on 
modeling. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001), Sierra Club v. 
EPA, 375 F.3d 537 (7th Cir. 2004). See also 66 FR 53094, 53099-53100 
(October 19, 2001) and 68 FR 25430-25432 (May 12, 2003).
    Table 5 specifies the VOC and NO<INF>X</INF> emissions in Lake and 
Porter Counties for 2004, 2010, and 2020. IDEM chose 2020 as the 
maintenance projection year to meet the 10-year maintenance projection 
requirement, allowing time for the EPA to approve the redesignation 
request and maintenance plan. IDEM also chose 2010 as an interim year 
to demonstrate that VOC and NO<INF>X</INF> emissions will remain below 
the attainment year levels throughout the maintenance period.

  Table 5.--Attainment Year and Projected VOC and NOX Emissions in Lake
               and Porter Counties in Tons per Summer Day
------------------------------------------------------------------------
                                             Years
         Source sector         --------------------------------
                                   2004       2010       2020
---------------------------------------------------------------
VOC Emissions:
    Point.....................      25.62      25.36      30.84
    Area......................      31.33      31.72      34.31
    On-Road Mobile............      18.90       9.93       5.71
    Non-Road Mobile...........      31.63      24.44      20.26
                               -----------------------------------------
        Total.................     107.48      91.45      91.12
NOX Emissions
    Point.....................     148.20      97.06     102.15
    Area......................       5.77       6.07       6.40
    On-Road Mobile............      65.95      38.65      11.97
    Non-Road Mobile...........      40.64      33.95      28.51
                               -----------------------------------------
        Total.................     260.56     175.73     149.03
------------------------------------------------------------------------

    Using emissions data provided by LADCO for the remainder of the 
Chicago-Gary-Lake County, IL-IN ozone nonattainment area (for the 
Illinois portion of this area), IDEM has also determined the VOC and 
NO<INF>X</INF> emissions for the entire nonattainment area. These VOC 
and NO<INF>X</INF> emissions are summarized in Table 6.

  Table 6.--Attainment Year and Projected VOC and NOX Emissions in the
  Chicago-Gary-Lake County, IL-IN Ozone Nonattainment Area in Tons per
                               Summer Day
------------------------------------------------------------------------
                                             Years
         Source sector         --------------------------------
                                   2004       2010       2020
---------------------------------------------------------------
VOC Emissions:
    Point.....................      97.65      94.35     128.84
    Area......................     225.34     221.72     234.32

[[Page 30450]]

 
    On-Road Mobile............     198.90     165.27     100.60
    Non-Road Mobile...........     159.63     109.44     122.25
                               -----------------------------------------
        Total.................     681.52     590.78     586.01
NOX Emissions:
    Point.....................     442.21     301.06     334.15
    Area......................      45.77      53.07      57.40
    On-Road Mobile............     464.95     314.59     145.08
    Non-Road Mobile...........     321.64     242.95     101.51
                               -----------------------------------------
        Total.................    1274.57     911.67     638.14
------------------------------------------------------------------------

    Tables 5 and 6 show that VOC and NO<INF>X</INF> emissions are 
projected to decline in both Lake and Porter Counties and in the 
Chicago-Gary-Lake County, IL-IN ozone nonattainment area after 2004. 
This demonstrates maintenance of the ozone standard in these areas 
through 2020 and throughout the ozone maintenance period.
    IDEM also notes that the State's EGU NO<INF>X</INF> emission 
control rules stemming from EPA's NO<INF>X</INF> SIP call, implemented 
beginning in 2004, with additional NO<INF>X</INF> emission reductions 
expected to result from the implementation of new Phase 2 
NO<INF>X</INF> rules, and the Clean Air Interstate Rule (CAIR) will 
further lower NO<INF>X</INF> emissions throughout Northwest Indiana, in 
the Chicago-Gary-Lake County, IL-IN area, statewide in Indiana, and in 
other upwind states, resulting in decreased ozone and ozone precursor 
transport into Lake and Porter Counties and the Chicago-Gary-Lake 
County area. This will also support maintenance of the ozone standard 
in the Chicago-Gary-Lake County area.
    IDEM has documented some of the procedures used to project 
emissions. On-road mobile sources were projected using the MOBILE6 
emission factor model and projected traffic data obtained from the 
Northwest Indiana Regional Planning Commission (NIRPC), which maintains 
a travel demand forecast model that is capable of projecting changes in 
total daily VMT. Emissions for the other major source sectors were 
determined using projected source activity/growth data provided by 
LADCO, as well as major source emissions data obtained periodically for 
all major sources statewide.
    Based on the comparison of the projected emissions and the 
attainment year emissions, we conclude that IDEM has successfully 
demonstrated that the 8-hour ozone standard should be maintained in 
Lake and Porter Counties and in the Chicago-Gary-Lake County, IL-IN 
area. We believe that this is especially likely given the expected 
impacts of the NO<INF>X</INF> SIP call and CAIR. As noted by IDEM, this 
conclusion is further supported by the fact that other states in the 
eastern portion of the United States are expected to further reduce 
regional NO<INF>X</INF> emissions through implementation of their own 
NO<INF>X</INF> emission control rules for EGUs and other NO<INF>X</INF> 
sources and through implementation of CAIR, reducing ozone and 
NO<INF>X</INF> transport into Lake and Porter Counties.
    The demonstration of maintenance for the 8-hour standard also 
demonstrates maintenance for the 1-hour standard because the same 
attainment year and maintenance year emissions inventories that show 
maintenance for the 8-hour standard similarly show maintenance for the 
1-hour standard. As demonstrated above, future VOC and NO<INF>X</INF> 
emissions are projected to remain at or below the 2004 attainment year 
levels.
4. What Is the Contingency Plan for Lake and Porter Counties?
a. Verification of Continued Attainment
    Continued attainment of the 8-hour ozone NAAQS in Lake and Porter 
Counties and in the Chicago-Gary-Lake County, IL-IN area depends on the 
State's efforts toward tracking applicable indicators during the 
maintenance period and taking appropriate actions if trends in the 
indicators indicate that additional emission reductions are needed to 
correct an existing or developing air quality problem. The State's plan 
for verifying continued attainment of the 8-hour ozone standard in 
these areas consists, in part, of a plan to continue ambient monitoring 
in Lake and Porter Counties and to track ozone air quality in the 
maintenance area, including the Illinois portion of the Chicago-Gary-
Lake County area and the Chiwaukee Prairie, WI monitor. In addition, 
IDEM will periodically revise and review the VOC and NO<INF>X</INF> 
emissions for Lake and Porter Counties to assure that emissions growth 
is not threatening the continued attainment of the 8-hour standard in 
this area. Revised emission inventories for this area will be prepared 
for 2005, 2008, and 2011 as necessary to comply with the emission 
inventory reporting requirements established in the CAA. The revised 
emissions will be compared with the 2004 attainment emissions and the 
2020 projected maintenance year emissions to assure continued 
maintenance of the ozone standard.
b. Contingency Plan
    The contingency plan provisions of the CAA are designed to result 
in prompt correction or prevention of violations of the NAAQS that 
might occur after redesignation of an area to attainment of the NAAQS. 
Section 175A of the CAA requires that a maintenance plan include such 
contingency measures as EPA deems necessary to assure that the State 
will promptly correct a violation of the NAAQS that might occur after 
redesignation. The maintenance plan must identify the contingency 
measures to be considered for possible adoption, a schedule and 
procedure for adoption and implementation of the selected contingency 
measures, and a time limit for action by the State. The State should 
also identify specific indicators to be used to determine when the 
contingency measures need to be adopted and implemented. The 
maintenance plan must include a requirement that the State will 
implement all measures with respect to control of the pollutant(s) that 
were controlled in the SIP before the redesignation of the area to 
attainment. See section 175A(d) of the CAA.

[[Page 30451]]

    As required by section 175A of the CAA, Indiana has adopted a 
contingency plan to address a possible future ozone air quality 
problem. The contingency plan has two levels of actions/responses 
depending on whether a violation of the 8-hour ozone standard is only 
threatened (Warning Level Response) or has actually occurred (Action 
Level Response).
    A Warning Level Response will be prompted whenever an annual (1-
year) fourth-high monitored daily maximum 8-hour ozone concentration of 
0.089 ppm occurs in a single ozone season or a 2-year averaged fourth-
high monitored daily maximum 8-hour ozone concentration of 0.085 ppm or 
greater occurs within the maintenance area. A Warning Level Response 
will consist of a study to determine whether the ozone concentration 
indicates a trend toward higher ozone concentrations or whether 
emissions appear to be increasing. The study will evaluate whether the 
trend, if any, is likely to continue and, if so, the control measures 
necessary to reverse the trend taking into consideration ease and 
timing for implementation, as well as economic considerations. 
Implementation of necessary controls in response to the Warning Level 
Response trigger will take place as expeditiously as possible, but in 
no event later than 12 months from the conclusion of the most recent 
ozone season (September 30). If new emission controls are needed to 
reverse the adverse ozone/emissions trend, the procedure for emission 
control selection under the Action Level Response will be followed.
    An Action Level Response will be triggered when a violation of the 
8-hour ozone standard is monitored at any of the monitors in the area. 
On February 20, 2007, IDEM submitted a letter to the EPA clarifying 
that an Action Level Response will be triggered if a future violation 
of the 8-hour ozone NAAQS is monitored within any part of the Chicago-
Gary-Lake County, IL-IN area or at the Chiwaukee Prairie monitoring 
site in Kenosha County, Wisconsin. In the event that the Action Level 
is triggered and is not found to be due to an exceptional event, 
malfunction, or noncompliance with a source permit condition or rule 
requirement, IDEM will determine additional control measures needed to 
assure future attainment of the ozone NAAQS. In this case emission 
control measures that can be implemented in a short time will be 
selected in order to be implemented within 18 months from the close of 
the ozone season that prompted the Action Level Response.
    Adoption of any additional emission control measures prompted by 
either of the two response levels will be subject to the necessary 
administrative and legal processes dictated by State law. This process 
will include publication of public notices, providing the opportunity 
for a public hearing, and other measures required by Indiana law for 
rulemaking by State environmental boards. If a new emission control 
measure is already promulgated and scheduled for implementation at the 
Federal or State level, and that emission control measure is determined 
to be sufficient to address the air quality problem or adverse trend, 
additional local emission control measures may be determined to be 
unnecessary. IDEM will submit to the EPA an analysis to demonstrate 
that the proposed emission control measures or existing emission 
control measures are adequate to return the area to attainment. As 
discussed below, EPA understands that Indiana will commit to submit any 
such proposed or existing emission control measure to EPA as a SIP 
revision.
    Contingency measures contained in the maintenance plan are those 
emission controls or other measures that the State may choose to adopt 
and implement in response to either an Action Level or a Warning Level 
trigger. These include, but are not limited to, the following:
    i. Vehicle emissions testing program enhancements, including liquid 
leak inspection; increased vehicle weight limit cutoffs; addition of 
diesel vehicles; etc.;
    ii. Asphalt paving VOC content restrictions (lower VOC formulation 
requirements);
    iii. Diesel exhaust retrofits;
    iv. Traffic flow improvements;
    v. Vehicle idle reduction programs;
    vi. Portable fuel container regulation (statewide);
    vii. Park and ride facilities;
    viii. Rideshare/carpool programs;
    ix. VOC cap-and-trade program for major stationary sources; and,
    x. Commercial/consumer solvent VOC content limits (statewide).
    No contingency measure will be implemented without providing the 
opportunity for full public participation in the selection and adoption 
of controls. During this process, the relative costs and benefits of 
individual control measures would be evaluated.
    EPA notes that two aspects of the contingency plan merit further 
discussion. First, the plan does not require the adoption and 
implementation of new emission controls in the event of a future ozone 
standard violation if it can be shown that the ozone standard violation 
is due to an exceptional event, source malfunction, or source 
noncompliance. If a monitored exceedance is determined to be due to an 
exceptional event, it will no longer be considered in determining 
whether a violation has occurred. With regard to source malfunctions or 
source noncompliance, we note that the Indiana SIP contains provisions 
for ensuring that sources take actions to correct malfunctions, as well 
as provisions for the State to take enforcement actions against 
noncompliant sources. EPA believes that this provides a mechanism for 
the State to take prompt corrective action, including expeditious and 
effective enforcement action to achieve compliance. See an analogous 
discussion in the General Preamble, 57 FR 13547 (April 16, 1992). In 
the context of section 172(c)(9) contingency measures for sulfur 
dioxide (SO<INF>2</INF>), EPA has interpreted ``contingency measures'' 
``to mean that the State agency has a comprehensive program to identify 
sources of violations of the NAAQS and to undertake an aggressive 
follow-up for compliance and enforcement, including expedited 
procedures for establishing enforceable consent agreements pending the 
adoption of revised SIPs.'' This type of source-specific noncompliance 
and correction by enforcement action in the ozone context is similar to 
source-specific SO<INF>2</INF> noncompliance and enforcement, and 
therefore it is appropriate to apply the SO<INF>2</INF> guidance in 
this circumstance.
    Second, the maintenance plan does not call for the State to adopt 
and implement new contingency measures if it can be shown that an 
already adopted emission control measure (State or Federal) will 
eliminate an ozone air quality problem. We believe that such an 
emission control measure should become part of the SIP. Prior to final 
rulemaking, Indiana must commit that it will submit such a measure as a 
SIP revision, and final approval of the maintenance plan is conditioned 
upon the State committing to submit such measures as requested SIP 
revisions. Indiana has indicated that they will make such a commitment. 
This issue aside, we otherwise propose to approve the ozone maintenance 
plan as providing for maintenance of both the 8-hour and 1-hour 
standards, if that standard is deemed to be reinstated. With respect to 
maintenance of the 1-hour standard, EPA has determined that the 8-hour 
NAAQS provides increased public health protection as compared to the 1-
hour ozone standard. See 62 FR at 38859 (July 18, 1997). Because the 8-
hour standard is more stringent than the 1-hour standard, a maintenance 
plan

[[Page 30452]]

with triggers tied to the 8-hour standard will be more protective of 
public health than a maintenance plan with contingency measure triggers 
tied to the 1-hour standard.
5. Has the State Committed To Update the Ozone Maintenance Plan in 
Eight Years After the Redesignation of Lake and Porter Counties to 
Attainment of the 8-Hour Ozone NAAQS?
    As required by section 175A(b) of the CAA, the State commits to 
submit to the EPA an update of the ozone maintenance plan eight years 
after redesignation of Lake and Porter Counties to attainment of the 8-
hour ozone NAAQS. The updated maintenance plan will provide maintenance 
of the 8-hour ozone standard for an additional 10 years beyond the 
first 10 years of maintenance of the standard.

VI. Has the State Adopted Acceptable MVEBs for the End Year of the 
Ozone Maintenance Period Which Can Be Used To Support Transportation 
Conformity Determinations?

A. How Are the MVEBs Developed and What Are the MVEBs for Lake and 
Porter Counties?

    Under the CAA, states are required to submit, at various times, SIP 
revisions and ozone maintenance plans for applicable areas (for ozone 
nonattainment areas and for areas seeking redesignations to attainment 
of the ozone standard or revising existing ozone maintenance plans). 
These emission control SIP revisions (e.g., reasonable further progress 
and attainment demonstration SIP revisions), including ozone 
maintenance plans, must create MVEBs based on on-road mobile source 
emissions allocated to highway and transit vehicle use that, together 
with emissions from other sources in the area, will provide for 
attainment or maintenance of the ozone NAAQS.
    Under 40 CFR part 93, MVEBs for an area seeking a redesignation to 
attainment of the NAAQS must be established for the last year of the 
maintenance plan. The MVEBs serve as ceilings on emissions from an 
area's planned transportation system. The MVEB concept is further 
explained in the preamble to the November 24, 1993 transportation 
conformity rule (58 FR 62188). The preamble also describes how to 
establish the MVEBs in the SIP and how to revise the MVEBs if needed.
    Under section 176(c) of the CAA, new transportation projects, such 
as the construction of new highways, must ``conform'' to (i.e., be 
consistent with) the SIP. Conformity to the SIP means that 
transportation activities will not cause or contribute to new air 
quality standard violations, increase the frequency or severity of 
existing violations, or delay timely attainment of the NAAQS. CAA 
section 176(c)(1). If a transportation plan does not conform, most new 
transportation projects that would expand the capacity of roadways 
cannot go forward. Regulations at 40 CFR part 93 set forth EPA's 
policy, criteria, and procedures for demonstrating and assuring 
conformity of transportation activities to a SIP.
    When reviewing SIP revisions containing MVEBs, including attainment 
strategies, rate-of-progress plans, and maintenance plans, EPA must 
find that the MVEBs are ``adequate'' for use in determining 
transportation conformity. Once EPA finds the submitted MVEBs to be 
adequate for transportation conformity purposes, the MVEBs are used by 
state and Federal agencies in determining whether proposed 
transportation projects conform to the SIPs as required by section 
176(c) of the CAA. EPA's criteria for determining the adequacy of MVEBs 
are specified in 40 CFR 93.118(e)(4).
    EPA's process for determining adequacy of MVEBs consists of three 
basic steps: (1) Providing public notification of a SIP submission; (2) 
providing the public the opportunity to comment on the MVEBs during a 
public comment period; and, (3) making a finding of adequacy. The 
Transportation Conformity Rule, in 40 CFR 93.118(f), provides for MVEB 
adequacy findings through two mechanisms. First, 40 CFR 93.118(f)(1) 
provides for posting a notice to the EPA conformity Web site at: http://www.epa.gov/otaq/stateresources/transconf/adequacy.htm and providing a 
30-day public comment period. Second, a mechanism is described in 40 
CFR 93.118(f)(2) which provides that EPA can review the adequacy of an 
implementation plan MVEB simultaneously with its review of the 
implementation plan itself. In this notice, EPA is using the second 
mechanism in 40 CFR 93.118(f)(2) and is taking comment on both the 
adequacy and approvability of the submitted MVEBs.
    The Lake and Porter Counties' ozone maintenance plan contains VOC 
and NO<INF>X</INF> MVEBs for 2020 and also for 2010. The State has the 
option of setting budgets for earlier years in the maintenance plan in 
addition to the last year of the maintenance plan. Indiana has 
submitted budgets for both the 2010 year and also the 2020 year. EPA is 
taking comment on both the adequacy and approvability of the submitted 
VOC and NO<INF>X</INF> MVEBs for Lake and Porter Counties. Any and all 
comments on the adequacy and approvability of the MVEBs should be 
submitted during the comment period stated in the DATES section of this 
notice.
    EPA intends to make its determination of the adequacy of the 2010 
and 2020 MVEBs for Lake and Porter Counties for transportation 
conformity purposes in the final rulemaking on the 8-hour ozone 
redesignation. If EPA finds the 2010 and 2020 MVEBs adequate and 
approves the MVEBs in the final rulemaking action, the new MVEBs must 
be used for future transportation conformity determinations. The new 
MVEBs, if found adequate and approved in the final rulemaking, will be 
effective the date of publication of EPA's final rulemaking in the 
Federal Register. For required regional emissions analysis years that 
involve the year 2009 or before, the applicable budget for the purposes 
of conducting transportation conformity will be the MVEBs for Lake and 
Porter Counties in the approved 1-hour ozone maintenance plan. For 
required regional emissions analysis years that involve 2010 or beyond, 
the applicable budgets are defined in the table below.

                    Lake and Porter County Area MVEBs
                             [Tons per day]
------------------------------------------------------------------------
                         Year                             VOC      NOX
------------------------------------------------------------------------
2010..................................................     11.5     40.6
2020..................................................      6.0     12.6
------------------------------------------------------------------------

    These MVEBs will be separate state area budgets for Lake and Porter 
Counties, Indiana. Illinois will establish MVEBs for the remainder of 
the Chicago 8-hour ozone area through the 8-hour ozone SIP submitted by 
Illinois.
    EPA, through this rulemaking, is proposing to approve the MVEBs for 
both 2020 and 2010, as part of the 8-hour maintenance plan, to be used 
to determine transportation conformity in Lake and Porter Counties. EPA 
has determined that the budgets are consistent with the control 
measures in the SIP and that Lake and Porter Counties can maintain 
attainment of the 8-hour ozone NAAQS (projected VOC and NO<INF>X</INF> 
emissions for 2010 and 2020 remain below the attainment year, 2004, 
levels) for the relevant required 10-year period with mobile source 
emissions at the levels of the MVEBs. It should be noted that the 
current approved 1-hour ozone budgets, which were approved as part of 
the 1-hour ozone attainment

[[Page 30453]]

demonstration, will continue to be used for transportation conformity 
purposes through 2009. The current 1-hour ozone budgets that are being 
used for transportation conformity purposes are for the 2007 year and 
cap emissions at 12.37 tons per day for VOCs and 63.33 tons per day for 
NO<INF>X</INF>. When the 8-hour ozone maintenance plan MVEBs are 
approved or found adequate, the new 2010 and 2020 budgets will provide 
a lower cap on emissions in Lake and Porter Counties because the new 
budgets are lower than the current 2007 budgets. IDEM has determined 
the 2010 MVEBs for Lake and Porter Counties to be 11.5 tons per day of 
VOC and 40.6 tons per day of NO<INF>X</INF>. IDEM has also determined 
the 2020 MVEBs for Lake and Porter Counties to be 6.0 tons per day for 
VOC and 12.6 tons per day for NO<INF>X</INF>. It should be noted that 
these MVEBs exceed the on-road mobile source VOC and NO<INF>X</INF> 
emissions projected by IDEM for 2010 and 2020, as summarized in Table 5 
above (``On-Road Mobile'' source sector). Through discussions with all 
organizations involved in transportation planning for Lake and Porter 
Counties, IDEM decided to include safety margins of 5 percent (0.29 
tons per day for VOC and 0.63 tons per day for NO<INF>X</INF> for 2020) 
in the MVEBs to provide for mobile source growth not anticipated in the 
projected 2010 and 2020 emissions and for a margin of error in the 
calculation of future mobile source emissions. Indiana has demonstrated 
that Lake and Porter Counties can maintain the 8-hour ozone NAAQS with 
these mobile source emissions since total source emissions including 
the increased mobile source emissions will remain under the attainment 
year emission levels.

B. Are the MVEBs Approvable?

    The submitted MVEBs meet the criteria for adequacy. The submitted 
SIP was endorsed by the Governor and was subject to a State public 
hearing. The MVEBs were discussed during consultation among Federal, 
state and local agencies. The MVEBs are clearly identified and 
precisely quantified in the submitted SIP. The MVEBs, when considered 
together with all other emissions sources, are consistent with 
applicable requirements for maintenance. The MVEBs are consistent with 
and clearly related to the emissions inventory and the control measures 
in the submitted maintenance plan; and the established safety margins 
are within the allowable limits. No negative comments were received at 
the State public hearing which addressed the MVEBs in the maintenance 
plan.
    The 2010 and 2020 VOC and NO<INF>X</INF> MVEBs for Lake and Porter 
Counties are approvable because the MVEBs meet all of the above 
criteria and maintain the total VOC and NO<INF>X</INF> emissions for 
Lake and Porter Counties at or below the attainment year emission 
inventory levels, as required by the transportation conformity 
regulations. These MVEBs are adequate and approvable for transportation 
conformity purposes.

VII. Modeled Attainment of the Ozone Standard

    Although EPA does not require use of air quality models to support 
ozone redesignation requests, IDEM has chosen to review existing 
modeling results to support the view that the 8-hour ozone NAAQS has 
been attained in Lake and Porter Counties and in the Chicago-Gary-Lake 
County, IL-IN area due to the implementation of permanent and 
enforceable emission controls, and that attainment of the ozone 
standard will be maintained in these areas as the result of 
implementation of additional emission controls already adopted. In 
addition, analyses of modeling results and other related meteorological 
data also allowed IDEM to assess the impacts of changes in meteorology 
on area peak ozone concentrations to support the case that changes in 
emissions are responsible for attainment of the ozone standard in these 
areas and not changes in meteorology.

A. Regional Ozone Modeling Results

    Regional ozone modeling has been conducted to support several 
national emission control efforts and to support the preparation of 8-
hour ozone attainment demonstrations in the Lake Michigan region. The 
results of these modeling studies have been reviewed for their modeled 
ozone concentrations in Lake and Porter Counties and the rest of the 
Chicago-Gary-Lake County area. The conclusions based on these modeling 
studies are summarized here.
EPA Modeling Analysis for Heavy-Duty Engine and Diesel Fuel Rules
    EPA conducted ozone modeling to support the Tier II vehicle and 
low-sulfur fuel rules. The results of the modeling were documented in 
the report ``Technical Support Document for the Heavy Duty Engine and 
Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements: 
Air Quality Modeling Analyses'' (EPA 420-R-00-028). IDEM reviewed these 
documented modeling results, and notes that this modeling study shows 
that the ozone impacts of the subject emission controls, as well as the 
impacts of the NO<INF>X</INF> SIP call, are significant in Lake and 
Porter Counties. IDEM used these modeling results to determine the 
relative impacts on peak ozone concentrations in this area during 2007 
and 2020. The modeling results indicate that the monitoring site ozone 
design values in Lake County would be lowered to a range of 0.069 ppm 
to 0.071 ppm (depending on the monitor) in 2007. Similar ozone design 
values are indicated for 2020, although slightly reduced due to the 
impacts of more years of implementation of the emission controls.
EPA Ozone Modeling for the Clean Air Interstate Rule
    EPA conducted ozone modeling to assess the ozone impacts resulting 
from the NO<INF>X</INF> emission reduction expected to be produced by 
the CAIR. Modeling was conducted for 2010 and 2015. Results of the CAIR 
modeling show that Lake and Porter Counties will have attained the 
ozone NAAQS in 2010, with a peak modeled 8-hour concentration below 
0.085 ppm. With additional NO<INF>X</INF> emission reduction projected 
through 2015, the modeling shows that monitoring site ozone design 
values will further decrease through 2015. This supports maintenance of 
the ozone standard in Lake and Porter through 2015.
LADCO Updated Round 4 Ozone Modeling
    LADCO recently completed updated ozone modeling using the CAMx 
model for ozone and the most current emissions inventories and model 
updates and inputs. This modeling was performed to support ozone 
attainment demonstrations for the LADCO States. The Round 4 modeling 
included scenarios considering the ``on-the-books'' emission controls 
for future years, 2009 and 2012. Note that the State of Indiana is 
developing a rule to implement CAIR requirements. Using the relative 
change in the peak ozone concentrations indicated by the Round 4 
modeling along with the 2003-2005 ozone design value, IDEM derived 
future ozone design values for 2009 and 2012 for the Lake and Porter 
Counties' monitoring sites. All estimated ozone design values for 2009 
and 2012 are well below the ozone standard. This implies that the ``on-
the-book'' emissions controls will help to maintain the ozone standard 
in Lake and Porter Counties.

B. Temperature--Ozone Exceedance Frequency Study

    IDEM analyzed the 1995-2005 trend in the annual number of days with 
peak daytime temperatures equaling or

[[Page 30454]]

exceeding 90 degrees Fahrenheit versus the annual number of 8-hour 
ozone standard exceedances at various monitoring sites. Although ozone 
standard exceedance numbers showed some correlation to the annual 
number of high temperature days, IDEM noted that this correlation is 
changing. While the trend in the annual number of high temperature days 
shows no distinct trend, the annual number of ozone standard 
exceedances is showing a downward trend. IDEM attributes the difference 
in trends to the impacts of VOC and NO<INF>X</INF> emission controls. 
Based on this observation, IDEM attributes the improvement in ozone air 
quality to the implementation of emission controls.

VIII. Review of Indiana's 2002 Base Year Emissions Submittal

    The CAA gives the States the responsibility to inventory emissions 
contributing to the violation a NAAQS, to track these emissions over 
time, and to ensure that emission control strategies have been 
implemented and have achieved planned emission targets. States 
containing ozone nonattainment areas are required, under section 
182(a)(1) of the CAA, to submit comprehensive, accurate, and current 
base year inventories of actual ozone precursor emissions (emissions of 
VOC, NO<INF>X</INF>, and CO) for each ozone nonattainment area. These 
emission inventories must include emissions from point, area, on-road 
mobile, and non-road mobile man-made (anthropogenic) and biogenic 
(natural or plant-generated) sources in the ozone nonattainment areas. 
The States must also inventory facility-specific emissions for major 
source facilities. The emission inventories must specify emissions for 
typical summer weekdays.
    Two EPA guidance documents have been developed to cover the 
emissions reviewed here. First, a November 18, 2002 memorandum (``2002 
Base Year Emission Inventory SIP Planning: 8-hr Ozone, PM<INF>2.5</INF> 
and Regional Haze Programs,'' memorandum from Lydia N. Wegman, 
Director, Air Quality Strategies and Standards Division, and Peter 
Tsirigotis, Director, Emissions, Monitoring, and Analysis Division, to 
Regional Air Division Directors) established 2002 as the base year to 
be used in the current round of ozone, fine particulates 
(PM<INF>2.5</INF>), and haze control planning. Second, SIP emissions 
inventory guidance, including guidance specific to the base year 
emissions, is given in an August 2005 EPA guidance document, 
(``Emissions Inventory Guidance for Implementation of Ozone and 
Particulate Matter National Ambient Air Quality Standards (NAAQS) and 
Regional Haze Regulations,'' EPA-454/R-05-001).
    On March 26, 2007, IDEM submitted documentation of 2002 statewide 
emissions of VOC, NO<INF>X</INF>, and CO in response to an EPA request 
for the documentation of the base year emissions for Lake and Porter 
Counties. The 2002 statewide emissions, documented by county, were 
prepared to comply with EPA's Consolidated Emissions Reporting Rule 
(CERR), published on June 10, 2002 (67 FR 39602) (40 CFR part 51 
subparts A and Q). Also included with the March 26, 2007 submittal was 
a compact disk containing detailed emissions data, including input data 
used to calculate the emissions.
    Emissions contained in the March 26, 2007 submittal cover the 
general source categories of point sources, area sources, on-road 
mobile sources, non-road mobile sources, and biogenic sources. All 
emission summaries were accompanied by source-specific descriptions of 
emission calculation procedures and sources of input data along with 
sample calculations for various counties in the State.
    To determine point source emissions, the State relied on data 
collected from source facilities complying with the State's annual 
emissions reporting requirements, 326 IAC 2-6. Major sources of any 
criteria pollutant located anywhere in the State of Indiana are 
required to annually submit to the State data specifying their annual 
emissions of criteria pollutants along with seasonal information to 
allow the calculation of seasonal emissions. Emissions for any 
particular year are to be reported by April 15th of the following year. 
In Elkhart, Floyd, Lake, Marion, Porter, St. Joseph, and Vanderburgh 
Counties, sources with the potential to emit more than 10 tons per year 
of VOC or NO<INF>X</INF> must report annually. In other portions of the 
State, the reporting source size emissions cutoff is 100 tons per year.
    Point source emissions reporting submittals are checked by IDEM to 
assure completeness. If the data are determined to be complete, the 
emissions data are loaded into the State's emissions database. IDEM 
also reviews the data for quality assurance, and, if needed, sources 
are requested to correct the data. After completing data quality 
assurance, the point source data are submitted to the EPA for 
incorporation into the National Emissions Inventory (NEI), as required 
by the CERR. The March 26, 2007 submittal includes VOC, NO<INF>X</INF>, 
and CO emissions for each reporting facility statewide. The supplied 
data files document a number of source-specific data used to determine 
the source-specific emissions.
    Area source emissions were calculated using a variety of 
information sources and guidance from the EPA. A primary source of 
calculation procedures and applied guidance was EPA's Emission 
Inventory Improvement Program. Where appropriate, point source 
emissions were subtracted from the calculated area source emissions to 
account for source coverage overlap with the reported point source 
emissions and to avoid double counting of emissions in the emissions 
totals. The documentation supplied in the March 26, 2007 submittal 
shows how the county-specific emissions were calculated for each area 
source category. County-specific source surrogates and associated 
emission factors were generally used to calculate county-specific 
emissions. Samples of area source emission calculations were provided 
for selected Counties. Area source emissions for all 92 Indiana 
Counties were documented in the March 26, 2007 submittal and in the 
data files included in the accompanying data disk.
    The September 12, 2006 ozone redesignation request included a 
detailed description of the procedures and input data used to determine 
the mobile source emissions for Lake and Porter Counties for 2002, as 
well as for emission projections used to document attainment year and 
maintenance period mobile source VOC and NO<INF>X</INF> emissions (see 
the discussion of mobile source emissions and emission budgets for Lake 
and Porter Counties, above). The March 26, 2007 base year emissions 
submittal documents the mobile source VOC, CO, and NO<INF>X</INF> 
emissions for each of the counties in the State. The March 26, 2007 
submittal notes that the mobile source emissions for Lake and Porter 
Counties were derived by the Northwest Indiana Regional Planning 
Commission, whereas the mobile source emissions for all other counties 
were obtained from EPA's NEI.
    Non-road mobile source VOC, NO<INF>X</INF>, and CO emissions for 
2002 were generated by the National Mobile Inventory Model. To update 
and quality assure the emissions for locomotives, commercial and 
recreational marine sources, and off-road mobile equipment sources, 
LADCO contracted with several consultants to update source population 
and distribution levels. Summaries of the consultants' results and 
recommended emissions changes were included in the March 26, 2007 
submittal. This submittal documented non-road mobile VOC, 
NO<INF>X</INF>, and CO

[[Page 30455]]

emissions by county for all 92 Counties in Indiana.
    Biogenic VOC, NO<INF>X</INF>, and CO emissions for 2002 were taken 
directly from the NEI for each county in Indiana.
    The March 26, 2007 submittal documents 2002 VOC, CO, and 
NO<INF>X</INF> emissions for each Indiana county in units of tons per 
year and tons per summer day. The 2002 summer day emissions of VOC, 
NO<INF>X</INF>, and CO for Lake and Porter Counties are summarized in 
Table 7.

  Table 7.--2002 Ozone Precursor Emissions in Lake and Porter Counties,
                Indiana--Emissions in Tons per Summer Day
------------------------------------------------------------------------
            Source category                 VOC        NOX         CO
------------------------------------------------------------------------
Lake County
    Point..............................      19.88     106.33     466.11
    Area...............................      24.78       4.37       3.93
    On-Road Mobile.....................      15.35      40.15     186.39
    Non-Road Mobile....................      20.18      28.82     176.98
    Biogenic...........................      18.59       0.79       1.91
                                        --------------------------------
        Total..........................      98.78     180.46     835.32
Porter County
    Point..............................       4.70      80.11     405.01
    Area...............................       7.49       1.35       1.35
    On-Road Mobile.....................       4.85      14.95      63.66
    Non-Road Mobile....................      12.80      11.37      73.19
    Biogenic...........................      15.15       0.63       1.63
                                        --------------------------------
        Total..........................      44.99     108.41     544.84
------------------------------------------------------------------------

    Although the state did not hold a separate public hearing on the 
2002 base year inventory, the 2002 emissions for Lake and Porter County 
were the primary source of emissions data used to project the 
attainment year (2004) and maintenance period (2010 and 2020) VOC and 
NO<INF>X</INF> emissions discussed in the State's September 12, 2006 
ozone redesignation request, which was subject to public hearing. Since 
this ozone redesignation request and ozone maintenance plan, including 
the 2002 VOC and NO<INF>X</INF> emission totals for Lake and Porter 
Counties, were discussed during a public hearing we believe that the 
2002 base year VOC and NO<INF>X</INF> emissions for Lake and Porter 
Counties have been addressed by a public hearing.
    We find the documentation of the 2002 base year VOC, 
NO<INF>X</INF>, and CO emissions to be acceptable, and we are proposing 
here to approve the 2002 base year emissions inventories for Lake and 
Porter Counties as a revision of the Indiana SIP.

IX. What Are EPA's Proposed Actions?

    EPA is proposing to determine that the Chicago-Gary-Lake County, 
IL-IN 8-hour ozone nonattainment area has attained the 8-hour ozone 
NAAQS and is also proposing to approve Indiana's request to redesignate 
the Lake and Porter County, IN portion of the area to attainment for 
the 8-hour ozone standard. EPA has evaluated the State of Indiana's 
redesignation request and determined that it meets the redesignation 
criteria set forth in section 107(d)(3)(E) of the CAA. Final approval 
of the redesignation request would change the official designation of 
Lake and Porter Counties for the 8-hour ozone NAAQS, found at 40 CFR 
part 81, from nonattainment to attainment. EPA is also proposing to 
approve Indiana's ozone maintenance plan for Lake and Porter Counties 
as a revision to the Indiana SIP because it meets the requirements of 
section 175A of the CAA. Final approval would thus also incorporate 
into the Indiana SIP a plan for maintaining the ozone NAAQS through 
2020. The maintenance plan includes contingency measures to remedy 
possible future violations of the 8-hour ozone NAAQS, and establishes 
MVEBs of 6.00 tons per day for VOC and 12.60 tons per day for 
NO<INF>X</INF> for 2020 and also MVEBs of 11.5 tons per day for VOC and 
40.6 tons per day of NO<INF>X</INF> for 2010. EPA is proposing to 
approve these MVEBs.
    EPA is also proposing to approve into the Indiana SIP the VOC and 
NO<INF>X</INF> periodic inventories for 1999, 2002 and 2004, pursuant 
to section 182(a)(3)(A) under the 1-hour standard as well as the 2002 
base year VOC and NO<INF>X</INF> emission inventories for Lake and 
Porter Counties, pursuant to section 182(a)(1) under the 8-hour 
standard.
    EPA is also proposing to find that, if the 1-hour ozone standard is 
deemed to be reinstated, the Chicago-Gary-Lake County area has attained 
the 1-hour standard, and Lake and Porter Counties have met the 
requirements for and would also qualify for redesignation to attainment 
of the 1-hour ozone standard. Thus, EPA proposes to find that if the 1-
hour standard is reinstated, EPA would redesignate the area to 
attainment for the 1-hour standard. EPA further proposes to approve and 
to find that Indiana's maintenance plan for the 8-hour standard also 
provides for maintenance of the 1-hour standard.

X. Statutory and Executive Order Reviews

Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, September 30, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget.

Paperwork Reduction Act

    This proposed rule does not impose an information collection burden 
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).

Regulatory Flexibility Act

    This proposed action merely proposes to approve state law as 
meeting Federal requirements and imposes no additional requirements 
beyond those imposed by state law. Redesignation of an area to 
attainment under section 107(d)(3)(E) of the CAA does not impose any 
new requirements on small entities. Redesignation of an area to 
attainment is an action that affects the status of a geographical area 
and does not impose any new regulatory requirements on sources. 
Accordingly, the Administrator

[[Page 30456]]

certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).

Unfunded Mandates Reform Act

    Because this rule proposes to approve pre-existing requirements 
under state law and does not impose any additional enforceable duty 
beyond that required by state law, it 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).

Executive Order 13132: Federalism

    This proposed action also does not have Federalism implications 
because it does not have substantial direct effects on the states, on 
the relationship between the national government and the states, or on 
the distribution of power and responsibilities among the various levels 
of government, as specified in Executive Order 13132 (64 FR 43255, 
August 10, 1999). This action merely proposes to affect the status of a 
geographical area does not impose any new requirements on sources, and 
to approve state rules, and does not alter the relationship or the 
distribution of power and responsibilities established in the CAA.

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    This proposed rule also does not have tribal implications because 
it will not have a substantial direct effect on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian tribes, as specified by Executive 
Order 13175 (65 FR 67249, November 9, 2000).

Executive Order 13045: Protection of Children From Environmental Health 
and Safety Risks

    This proposed rule also is not subject to Executive Order 13045 
``Protection of Children from Environmental Health Risks and Safety 
Risks'' (62 FR 19885, April 23, 1997), because it proposes approval of 
a state rule implementing a federal standard.

Executive Order 13211: Actions That Significantly Affect Energy Supply, 
Distribution, or Use

    Because it is not a ``significant regulatory action'' under 
Executive Order 12866 or a ``significant regulatory action,'' this 
action is also not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355, May 22, 2001).

National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), 15 U.S.C. 272, requires Federal agencies to use 
technical standards that are developed or adopted by voluntary 
consensus to carry out policy objectives, so long as such standards are 
not inconsistent with applicable law or otherwise impractical. In 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Absent a prior 
existing requirement for the state to use voluntary consensus 
standards, EPA has no authority to disapprove a SIP submission for 
failure to use such standards, and it would thus be inconsistent with 
applicable law for EPA to use voluntary consensus standards in place of 
a program submission that otherwise satisfies the provisions of the 
CAA. Redesignation is an action that affects the status of a 
geographical area but does not impose any new requirements on sources. 
Therefore, the requirements of section 12(d) of the NTTA do not apply.

Executive Order 12898: Environmental Justice

    Executive Order 12898 establishes a Federal policy for 
incorporating environmental justice into Federal agency actions by 
directing agencies to identify and address, as appropriate, 
disproportionately high and adverse human health of environmental 
effects of their programs, policies, and activities on minority and 
low-income populations. Today's proposed actions would not result in 
the relaxation of control measures on existing sources and therefore 
would not cause emissions increases from those sources. Overall, 
emissions in the area are projected to decline following redesignation. 
Thus, these proposed actions would not have disproportionately high and 
adverse effects on any communities in the area, including minority and 
low-income communities.

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
regulations, Nitrogen dioxide, Ozone, Volatile organic compounds.

40 CFR Part 81

    Environmental protection, Air pollution control, National parks, 
Wilderness areas.

    Dated: May 11, 2007.
Bharat Mathur,
Acting Regional Administrator, Region 5.
[FR Doc. E7-9825 Filed 5-30-07; 8:45 am]
BILLING CODE 6560-50-P


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