22948 Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules 

TABLE 1 TO § 165.1191 

* * * * * 

*******

7. San Francisco Independence Day Fireworks 

Sponsor ........................................... The City of San Francisco. 

Event Description ............................ Fireworks Display. 

Date ................................................. July 4th. 

Location 1 ........................................ A barge located approximately 1000 feet off San Francisco Pier 39 at approximately 37°48′49′′ N., 

122°24′46′′ W. 

Location 2 ........................................ A barge located at the end of the San Francisco Municipal Pier at Aquatic Park at approximately 37°48′39′′ 

N., 122°25′37′′ W. 

Regulated Area 1 ............................ 1. 100-foot radius around the fireworks barge during the loading, transit, setup, and until the commencement of the scheduled display. Increases to a 1,000-foot radius upon commencement of the fireworks 

display. 

Regulated Area 2 ............................ 2. 100-foot radius around the fireworks barge during the loading, transit, setup, and until the commencement of the scheduled display. Increases to a 1,000-foot radius upon commencement of the fireworks 

display. 

8. Fourth of July Fireworks, Berkeley Marina 

Sponsor ........................................... Berkeley Marina. 

Event Description ............................ Fireworks Display. 

Date ................................................. July 4th. 

Location ........................................... A barge located near Berkeley Pier at approximately 37°51′40′′ N., 122°19′19′′ W. 

Regulated Area ............................... 100-foot radius around the fireworks barge during the loading, transit, setup, and until the commencement 

of the scheduled display. Increases to a 1,000-foot radius upon commencement of the fireworks display. 

* * * * * * * 

22. Monte Foundation Fireworks 

Sponsor ........................................... Monte Foundation Fireworks. 

Event Description ............................ Fireworks Display. 

Date ................................................. Second Saturday in October. 

Location ........................................... Capitola Pier in Capitola, CA. 

Regulated Area ............................... 1,000-foot safety zone around the navigable waters of the Capitola Pier. 

* * * * * * * 

Dated: March 11, 2016 

Gregory G. Stump, 

Captain, U.S. Coast Guard, Captain of the 

Port San Francisco. 

[FR Doc. 2016–09030 Filed 4–18–16; 8:45 am] 

BILLING CODE 9110–04–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 52 and 81 

[EPA–R04–OAR–2016–0018; FRL–9945–04– 

Region 4] 

Air Plan Approval and Air Quality 

Designation; TN; Redesignation of the 

Shelby County 2008 8-Hour Ozone 

Nonattainment Area to Attainment 

AGENCY: Environmental Protection 

Agency. 

ACTION: Proposed rule. 

SUMMARY: On January 19, 2016, the State 

of Tennessee, through the Tennessee 

Department of Environment and 

Conservation (TDEC), Air Pollution 

Control Division, submitted a request 

for the Environmental Protection 

Agency (EPA) to redesignate the portion 

of Tennessee that is within the 

Memphis, Tennessee-MississippiArkansas (Memphis, TN–MS–AR) 2008 

8-hour ozone nonattainment area 

(hereafter referred to as the ‘‘Tennessee 

portion of the Memphis, TN–MS–AR 

Area’’ or ‘‘Tennessee portion of the 

Area’’) to attainment for the 2008 8-hour 

ozone National Ambient Air Quality 

Standards (NAAQS) and an associated 

State Implementation Plan (SIP) 

revision containing a maintenance plan 

and a base year emissions inventory for 

the Area. EPA is proposing to approve 

the base year emissions inventory for 

the Tennessee portion of the Area into 

the SIP; to determine that the Memphis, 

TN–MS–AR Area has attained the 2008 

8-hour ozone NAAQS; to approve the 

State’s plan for maintaining attainment 

of the 2008 8-hour ozone standard in the 

Area, including the motor vehicle 

emission budgets (MVEBs) for nitrogen 

oxides (NOX) and volatile organic 

compounds (VOC) for the year 2027 for 

the Tennessee portion of the Area, into 

the SIP; and to redesignate the 

Tennessee portion of the Area to 

attainment for the 2008 8-hour ozone 

NAAQS. EPA is also notifying the 

public of the status of EPA’s adequacy 

determination for the MVEBs for the 

Tennessee portion of the Memphis, TN– 

MS–AR Area. 

DATES: Comments must be received on 

or before May 19, 2016. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R04– 

OAR–2016–0018, at http://

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Once submitted, comments cannot be 

edited or removed from Regulations.gov. 

EPA may publish any comment received 

to its public docket. Do not submit 

electronically any information you 

consider to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Multimedia submissions (audio, video, 

etc.) must be accompanied by a written 

comment. The written comment is 


asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules 22949 

1On August 27, 2015, EPA published a proposed 

rulemaking entitled ‘‘Determinations of Attainment 

by the Attainment Date, Extensions of the 

Attainment Date, and Reclassification of Several 

Areas Classified as Marginal for the 2008 Ozone 

National Ambient Air Quality Standards’’ where the 

Agency has proposed to determine that the 

Memphis, TN–MS–AR Area has attained the 2008 

8-hour ozone NAAQS by the applicable attainment 

date of July 20, 2015, based on 2012–2014 

monitoring data. See 80 FR 51992. Any final action 

on the August 27, 2015 proposed rule will occur in 

a separate rulemaking from today’s proposed action. 

considered the official comment and 

should include discussion of all points 

you wish to make. EPA will generally 

not consider comments or comment 

contents located outside of the primary 

submission (i.e. on the web, cloud, or 

other file sharing system). For 

additional submission methods, the full 

EPA public comment policy, 

information about CBI or multimedia 

submissions, and general guidance on 

making effective comments, please visit 

http://www2.epa.gov/dockets/

commenting-epa-dockets. 

FOR FURTHER INFORMATION CONTACT: Jane 

Spann, Air Regulatory Management 

Section, Air Planning and 

Implementation Branch, Air, Pesticides 

and Toxics Management Division, U.S. 

Environmental Protection Agency, 

Region 4, 61 Forsyth Street SW., 

Atlanta, Georgia 30303–8960. Ms. 

Spann can be reached by phone at (404) 

562–9029 or via electronic mail at 

spann.jane@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. What are the actions EPA is proposing to 

take? 

II. What is the background for EPA’s 

proposed actions? 

III. What are the criteria for redesignation? 

IV. Why is EPA proposing these actions? 

V. What is EPA’s analysis of the 

redesignation request and January 19, 

2016, SIP submission? 

VI. What is EPA’s analysis of Tennessee’s 

proposed NOX and VOC MVEBs for the 

Tennessee portion of the area? 

VII. What is the status of EPA’s adequacy 

determination for the proposed NOX and 

VOC MVEBs the Tennessee portion of 

the area? 

VIII. What is the effect of EPA’s proposed 

actions? 

IX. Proposed Actions. 

X. Statutory and Executive Order Reviews 

I. What are the actions EPA is 

proposing to take? 

EPA is proposing to take the following 

four separate but related actions, one of 

which involves multiple elements: (1) 

To approve the base year emissions 

inventory for the 2008 8-hour ozone 

NAAQS for the Tennessee portion of the 

Area into the Tennessee SIP; (2) to 

determine that the Memphis, TN–MS– 

AR Area has attained the 2008 8-hour 

ozone NAAQS; 1 (3) to approve 

Tennessee’s plan for maintaining the 

2008 8-hour ozone NAAQS 

(maintenance plan), including the 

associated MVEBs for the Tennessee 

portion of the Memphis, TN–MS–AR 

Area, into the SIP; and (4) to redesignate 

the Tennessee portion of the Memphis, 

TN–MS–AR Area to attainment for the 

2008 8-hour ozone NAAQS. EPA is also 

notifying the public of the status of 

EPA’s adequacy determination for the 

MVEBs for the Tennessee portion of the 

Memphis, TN–MS–AR Area. The 

Memphis, TN–MS–AR Area consists of 

all of Shelby County in Tennessee, all 

of Crittenden County in Arkansas, and 

a portion of DeSoto County in 

Mississippi. Today’s proposed actions 

are summarized below and described in 

greater detail throughout this notice of 

proposed rulemaking. 

Based on the 2008 8-hour ozone 

nonattainment designation for the 

Memphis, TN–MS–AR Area, Tennessee 

was required to develop a 

nonattainment SIP revision addressing 

certain Clean Air Act (CAA or Act) 

requirements. Specifically, pursuant to 

CAA section 182(a)(3)(B) and section 

182(a)(1), the state was required to 

submit a SIP revision addressing 

emissions statements and emissions 

inventory requirements, respectively, 

for its portion of the Area. EPA 

approved the emissions statements 

requirements for the Tennessee portion 

of the Area into the SIP in a separate 

action. See 80 FR 11974 (March 5, 

2015). Today, EPA is proposing to 

determine that the base year emissions 

inventory, as submitted in the State’s 

January 19, 2016, SIP revision, meets 

the requirements of section 182(a)(1) of 

the CAA and proposing to approve this 

emissions inventory into the SIP. 

EPA is making the preliminary 

determination that the Memphis, TN– 

MS–AR Area has attained the 2008 8- 

hour ozone NAAQS based on recent air 

quality data and proposing to approve 

Tennessee’s maintenance plan for its 

portion of the Memphis, TN–MS–AR 

Area as meeting the requirements of 

section 175A (such approval being one 

of the CAA criteria for redesignation to 

attainment status). The maintenance 

plan is designed to keep the Memphis, 

TN–MS–AR Area in attainment of the 

2008 8-hour ozone NAAQS through 

2027. The maintenance plan includes 

2027 MVEBs for NOX and VOC for the 

Tennessee portion of the Memphis, TN– 

MS–AR Area for transportation 

conformity purposes. EPA is proposing 

to approve these MVEBs and 

incorporate them into the Tennessee 

SIP. 

EPA also proposes to determine that 

the Tennessee portion of the Memphis, 

TN–MS–AR Area has met the 

requirements for redesignation under 

section 107(d)(3)(E) of the CAA. 

Accordingly, in this action, EPA is 

proposing to approve a request to 

change the legal designation of Shelby 

County, as found at 40 CFR part 81, 

from nonattainment to attainment for 

the 2008 8-hour ozone NAAQS. 

EPA is also notifying the public of the 

status of EPA’s adequacy process for the 

2027 NOX and VOC MVEBs for the 

Tennessee portion of the Memphis, TN– 

MS–AR Area. The Adequacy comment 

period began on January 27, 2016, with 

EPA’s posting of the availability of 

Tennessee’s submissions on EPA’s 

Adequacy Web site (http://

www3.epa.gov/otaq/stateresources/

transconf/currsips.htm#shelby-cnty). 

The Adequacy comment period for 

these MVEBs closed on February 26, 

2016. No comments, adverse or 

otherwise, were received during the 

Adequacy comment period. Please see 

section VII of this proposed rulemaking 

for further explanation of this process 

and for more details on the MVEBs. 

In summary, today’s notice of 

proposed rulemaking is in response to 

Tennessee’s January 19, 2016, 

redesignation request and associated SIP 

submission that address the specific 

issues summarized above and the 

necessary elements described in section 

107(d)(3)(E) of the CAA for 

redesignation of the Tennessee portion 

of the Memphis, TN–MS–AR Area to 

attainment for the 2008 8-hour ozone 

NAAQS. 

II. What is the background for EPA’s 

proposed actions? 

On March 12, 2008, EPA promulgated 

a revised 8-hour ozone NAAQS of 0.075 

parts per million (ppm). See 73 FR 

16436 (March 27, 2008). Under EPA’s 

regulations at 40 CFR part 50, the 2008 

8-hour ozone NAAQS is attained when 

the 3-year average of the annual fourth 

highest daily maximum 8-hour average 

ambient air quality ozone 

concentrations is less than or equal to 

0.075 ppm. See 40 CFR 50.15. Ambient 

air quality monitoring data for the 3- 

year period must meet a data 

completeness requirement. The ambient 

air quality monitoring data 

completeness requirement is met when 

the average percent of days with valid 

ambient monitoring data is greater than 

90 percent, and no single year has less 

than 75 percent data completeness as 

determined in Appendix P of part 50. 


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2This rule, entitled Implementation of the 2008 

National Ambient Air Quality Standards for Ozone: 

State Implementation Plan Requirements and 

published at 80 FR 12264 (March 6, 2015), 

addresses a range of nonattainment area SIP 

requirements for the 2008 ozone NAAQS, including 

requirements pertaining to attainment 

demonstrations, reasonable further progress (RFP), 

reasonably available control technology (RACT), 

reasonably available control measures (RACM), 

major new source review (NSR), emission 

inventories, and the timing of SIP submissions and 

of compliance with emission control measures in 

the SIP. This rule also addresses the revocation of 

the 1997 ozone NAAQS and the anti-backsliding 

requirements that apply when the 1997 ozone 

NAAQS are revoked. 

3 40 CFR 51.1110(b) states that ‘‘at the time of 

designation for the 2008 ozone NAAQS the baseline 

emissions inventory shall be the emissions 

The Memphis, TN–MS–AR Area was 

designated nonattainment for the 2008 

8-hour ozone NAAQS on May 21, 2012 

(effective July 20, 2012) using 2008– 

2010 ambient air quality data. See 77 FR 

30088. At the time of designation, the 

Memphis, TN–MS–AR Area was 

classified as a marginal nonattainment 

area for the 2008 8-hour ozone NAAQS. 

In the final implementation rule for the 

2008 8-hour ozone NAAQS (SIP 

Implementation Rule),2 EPA established 

ozone nonattainment area attainment 

dates based on Table 1 of section 181(a) 

of the CAA. This established an 

attainment date three years after the July 

20, 2012, effective date for areas 

classified as marginal areas for the 2008 

8-hour ozone nonattainment 

designations. Therefore, the Memphis, 

TN-MS-AR Area’s attainment date is 

July 20, 2015. 

III. What are the criteria for 

redesignation? 

The CAA provides the requirements 

for redesignating a nonattainment area 

to attainment. Specifically, section 

107(d)(3)(E) of the CAA allows for 

redesignation providing that: (1) The 

Administrator determines that the area 

has attained the applicable NAAQS; (2) 

the Administrator has fully approved 

the applicable implementation plan for 

the area under section 110(k); (3) the 

Administrator determines that the 

improvement in air quality is due to 

permanent and enforceable reductions 

in emissions resulting from 

implementation of the applicable SIP 

and applicable federal air pollutant 

control regulations and other permanent 

and enforceable reductions; (4) the 

Administrator has fully approved a 

maintenance plan for the area as 

meeting the requirements of section 

175A; and (5) the state containing such 

area has met all requirements applicable 

to the area for purposes of redesignation 

under section 110 and part D of the 

CAA. 

On April 16, 1992, EPA provided 

guidance on redesignation in the 

General Preamble for the 

Implementation of title I of the CAA 

Amendments of 1990 (57 FR 13498), 

and supplemented this guidance on 

April 28, 1992 (57 FR 18070). EPA has 

provided further guidance on processing 

redesignation requests in the following 

documents: 

1. ‘‘Ozone and Carbon Monoxide Design 

Value Calculations,’’ Memorandum from Bill 

Laxton, Director, Technical Support Division, 

June 18, 1990; 

2. ‘‘Maintenance Plans for Redesignation of 

Ozone and Carbon Monoxide Nonattainment 

Areas,’’ Memorandum from G. T. Helms, 

Chief, Ozone/Carbon Monoxide Programs 

Branch, April 30, 1992; 

3. ‘‘Contingency Measures for Ozone and 

Carbon Monoxide (CO) Redesignations,’’ 

Memorandum from G. T. Helms, Chief, 

Ozone/Carbon Monoxide Programs Branch, 

June 1, 1992; 

4. ‘‘Procedures for Processing Requests to 

Redesignate Areas to Attainment,’’ 

Memorandum from John Calcagni, Director, 

Air Quality Management Division, September 

4, 1992 (hereafter referred to as the ‘‘Calcagni 

Memorandum’’); 

5. ‘‘State Implementation Plan (SIP) 

Actions Submitted in Response to Clean Air 

Act (CAA) Deadlines,’’ Memorandum from 

John Calcagni, Director, Air Quality 

Management Division, October 28, 1992; 

6. ‘‘Technical Support Documents (TSDs) 

for Redesignation of Ozone and Carbon 

Monoxide (CO) Nonattainment Areas,’’ 

Memorandum from G. T. Helms, Chief, 

Ozone/Carbon Monoxide Programs Branch, 

August 17, 1993; 

7. ‘‘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 for Air and Radiation, 

September 17, 1993; 

8. ‘‘Use of Actual Emissions in 

Maintenance Demonstrations for Ozone and 

CO Nonattainment Areas,’’ Memorandum 

from D. Kent Berry, Acting Director, Air 

Quality Management Division, November 30, 

1993; 

9. ‘‘Part D New Source Review (Part D 

NSR) Requirements for Areas Requesting 

Redesignation to Attainment,’’ Memorandum 

from Mary D. Nichols, Assistant 

Administrator for Air and Radiation, October 

14, 1994; and 

10. ‘‘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. 

IV. Why is EPA proposing these 

actions? 

On January 19, 2016, the State of 

Tennessee, through TDEC, requested 

that EPA redesignate the Tennessee 

portion of the Memphis, TN–MS–AR 

Area to attainment for the 2008 8-hour 

ozone NAAQS and approve the 

associated SIP revision submitted on the 

same date. EPA’s evaluation indicates 

that the entire Memphis, TN–MS–AR 

Area has attained the 2008 8-hour ozone 

NAAQS and that the Tennessee portion 

of the Memphis, TN–MS–AR Area 

meets the requirements for 

redesignation as set forth in CAA 

section 107(d)(3)(E), including the 

maintenance plan requirements under 

CAA section 175A and associated 

MVEBs. Also, based on Tennessee’s 

January 19, 2016, submittal, EPA is 

proposing to determine that the base 

year emissions inventory, included in 

Tennessee’s January 19, 2016, submittal, 

meets the requirements under CAA 

section 182(a)(1). Approval of the base 

year emissions inventory is a 

prerequisite to redesignating an ozone 

nonattainment area to attainment. As a 

result of these proposed findings, EPA 

is proposing to take the four related 

actions summarized in section I of this 

notice. 

V. What is EPA’s analysis of the 

redesignation request and January 19, 

2016, SIP submission? 

As stated above, in accordance with 

the CAA, EPA proposes in today’s 

action to: (1) Approve the 2008 8-hour 

ozone NAAQS base year emissions 

inventory for the Tennessee portion of 

the Area into the Tennessee SIP; (2) 

determine that the Memphis, TN–MS– 

AR Area has attained the 2008 8-hour 

ozone NAAQS; (3) approve the 2008 8- 

hour ozone NAAQS maintenance plan, 

including the associated MVEBs, into 

the Tennessee SIP; and (4) redesignate 

the Tennessee portion of the Memphis, 

TN–MS–AR Area to attainment for the 

2008 8-hour ozone NAAQS. 

A. Emission Inventory 

Section 182(a)(1) of the CAA requires 

states to submit a comprehensive, 

accurate, and current inventory of actual 

emissions from all sources of the 

relevant pollutant or pollutants in each 

ozone nonattainment area. The section 

182(a)(1) base year emissions inventory 

is defined in the SIP Requirements Rule 

as ‘‘a comprehensive, accurate, current 

inventory of actual emissions from 

sources of VOC and NOX emitted within 

the boundaries of the nonattainment 

area as required by CAA section 

182(a)(1).’’ See 40 CFR 51.1100(bb). The 

inventory year must be selected 

consistent with the baseline year for an 

RFP plan as required by 40 CFR 

51.1110(b),3 and the inventory must 


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inventory for the most recent calendar year for 

which a complete triennial inventory is required to 

be submitted to EPA under the provisions of 

subpart A of this part. States may use an alternative 

baseline emissions inventory provided the state 

demonstrates why it is appropriate to use the 

alternative baseline year, and provided that the year 

selected is between the years 2008 to 2012.’’ 4 ‘‘Ozone season day emissions’’ is defined as ‘‘an 

average day’s emissions for a typical ozone season 

work weekday. The state shall select, subject to EPA 

approval, the particular month(s) in the ozone 

season and the day(s) in the work week to be 

represented, considering the conditions assumed in 

the development of RFP plans and/or emissions 

budgets for transportation conformity.’’ See 40 CFR 

51.1100(cc). 

5 Data downloaded from the EPA EIS from the 

2011 NEI was subjected to quality assurance 

procedures described under quality assurance 

details under 2011 NEI Version 1 Documentation 

located at: http://www.epa.gov/ttn/chief/net/2011

inventory.html#inventorydoc. The quality assurance 

and quality control procedures and measures 

associated with this data are outlined in the State’s 

EPA-approved Emission Inventory Quality 

Assurance Project Plan. 

6This guidance includes: Procedures for the 

Preparation of Emission Inventories of Carbon 

Monoxide and Precursors of Ozone, Vol. 1, EPA– 

450/4–91–016 (May 1991) and Emissions Inventory 

Improvement Program (EIIP) Technical Report, Vol. 

3, Area Sources (Revised January 2001, updated 

April 2001). 

7Tennessee used MOVES2014 technical 

guidance: Using MOVES to Prepare Emission 

Inventories in State Implementation Plans and 

Transportation Conformity, EPA–420–b–15–007 

(January 2015). 

8For consistency with the NEI, Tennessee 

included emissions data for aircraft, locomotive, 

and commercial marine vessels (CMV) by county. 

CMV emissions for 2011 were primarily based on 

EPA’s 2011 NEI, U.S. Corps of Engineers’ 2012 

Waterborne Commerce, and 2012 survey of railroad 

companies operating in Shelby County. 

9This guidance includes: Procedures for Emission 

Inventory Preparation, Volume IV: Mobile Sources, 

EPA–450/4–81–026d (December 1992). 

include actual ozone season day 

emissions as defined in 40 CFR 

51.1100(cc) 4 and contain data elements 

consistent with the detail required by 40 

CFR part 51, subpart A. See 40 CFR 

51.1115(a), (c), (e). In addition, the point 

source emissions included in the 

inventory must be reported according to 

the point source emissions thresholds of 

the Air Emissions Reporting 

Requirements (AERR) in 40 CFR part 51, 

subpart A. See 40 CFR 51.1115(d). 

Tennessee selected 2011 as the year 

for the CAA section 182(a)(1) emissions 

inventory which is the year 

corresponding with the first triennial 

inventory under 40 CFR part 51, subpart 

A. The emissions inventory is based on 

data developed and submitted by TDEC 

and Shelby County Health Department 

to EPA’s 2011 National Emissions 

Inventory (NEI), and it contains data 

elements consistent with the detail 

required by 40 CFR part 51, subpart A.5

Tennessee’s emissions inventory for 

its portion of the Area provides 2011 

emissions data for NOX and VOCs for 

the following general source categories: 

Point, area, non-road mobile, and onroad mobile. A detailed discussion of 

the inventory development is located in 

Attachment VII to Tennessee’s January 

19, 2016, SIP submittal which is 

provided in the docket for this action. 

Table 1, below, provides a summary of 

the emissions inventory. 

TABLE 1—2011 POINT, AREA, NON-ROAD MOBILE, AND ON-ROAD MOBILE SOURCES EMISSIONS FOR THE TENNESSEE

PORTION OF THE MEMPHIS AREA

[Tons per typical summer day] 

County 

Point Area * Non-road mobile ** On-road mobile 

NOX VOC NOX VOC NOX VOC NOX VOC 

Shelby County .................................. 18.30 9.49 4.53 46.88 29.24 15.09 37.90 16.11 

* Includes Prescribed Burning. 

** Includes nonroad equipment, airports, Commercial Marine Vessels (CMVs), and locomotives. 

The emissions inventory includes all 

anthropogenic VOC and NOXsources for 

Shelby County, Tennessee. NOx and 

VOC emissions were calculated for a 

typical summer July day, taking into 

account the seasonal adjustment factor 

for summer operations. More detail on 

the inventory emissions for individual 

sources categories is provided below 

and in Attachment VII to Tennessee’s 

January 19, 2016, SIP submittal. 

Point sources are large, stationary, 

identifiable sources of emissions that 

release pollutants into the atmosphere. 

The inventory contains point source 

emissions data for facilities located 

within Shelby County based on the 

Shelby County, Tennessee, Emissions 

Inventory Questionnaire (EIQ) which is 

an annual emissions inventory survey 

conducted by the Shelby County Health 

Department. Each facility was required 

to update the data through the EIQ with 

information for the requested year and 

return the updated data to Shelby 

County Health Department. 

Area sources are small emission 

stationary sources which, due to their 

large number, collectively have 

significant emissions (e.g., dry cleaners, 

service stations). Emissions for these 

sources were estimated by multiplying 

an emission factor by such indicators of 

collective emissions activity as 

production, number of employees, or 

population. These emissions were 

estimated at the county level. Tennessee 

submitted an inventory that it 

developed for the NEI in accordance 

with the AERR. Tennessee developed its 

inventory according to the current EPA 

emissions inventory guidance for area 

sources.6

On-road mobile sources include 

vehicles used on roads for 

transportation of passengers or freight. 

Tennessee developed its on-road 

emissions inventory using EPA’s Motor 

Vehicle Emissions Simulator (MOVES) 

model with input data from the 

Memphis Metropolitan Planning 

Organization (MPO).7 County level onroad modeling was conducted using 

county-specific vehicle population and 

other local data. Tennessee developed 

its inventory according to the current 

EPA emissions inventory guidance for 

on-road mobile sources using MOVES 

version 2014. 

Non-road mobile sources include 

vehicles, engines, and equipment used 

for construction, agriculture, recreation, 

and other purposes that do not use 

roadways (e.g., lawn mowers, 

construction equipment, railroad 

locomotives, and aircraft). Tennessee 

calculated emissions for most of the 

non-road mobile sources using EPA’s 

NONROAD2008a model 8 and 

developed its non-road mobile source 

inventory according to the current EPA 

emissions inventory guidance for nonroad mobile sources.9

For the reasons discussed above, EPA 

has preliminarily determined that 

Tennessee’s emissions inventory meets 

the requirements under CAA section 

182(a)(1) and the SIP Requirements Rule 

for the 2008 8-hour ozone NAAQS. 

Approval of Tennessee’s redesignation 

request is contingent upon EPA’s final 

approval of the base year emissions 

inventory for the 2008 8-hour ozone 

NAAQS. 


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10The highest 3-year design value among the 

monitoring stations is the design value for the Area. 

11This preliminary data is available at EPA’s air 

data Web site: http://aqsdr1.epa.gov/aqsweb/

aqstmp/airdata/download_files.html#Daily. 

B. Redesignation Request and 

Maintenance Demonstration 

The five redesignation criteria 

provided under CAA section 

107(d)(3)(E) are discussed in greater 

detail for the Area in the following 

paragraphs of this section. 

Criteria (1)—The Memphis, TN–MS–AR 

Area Has Attained the 2008 8-Hour 

Ozone NAAQS 

For redesignating a nonattainment 

area to attainment, the CAA requires 

EPA to determine that the area has 

attained the applicable NAAQS. See 

CAA section 107(d)(3)(E)(i). For ozone, 

an area may be considered to be 

attaining the 2008 8-hour ozone NAAQS 

if it meets the 2008 8-hour ozone 

NAAQS, as determined in accordance 

with 40 CFR 50.15 and appendix P of 

part 50, based on three complete, 

consecutive calendar years of qualityassured air quality monitoring data. To 

attain the NAAQS, the 3-year average of 

the fourth-highest daily maximum 8- 

hour average ozone concentrations 

measured at each monitor within an 

area over each year must not exceed 

0.075 ppm. Based on the data handling 

and reporting convention described in 

40 CFR part 50, appendix P, the NAAQS 

are attained if the design value is 0.075 

ppm or below. The data must be 

collected and quality-assured in 

accordance with 40 CFR part 58 and 

recorded in EPA’s Air Quality System 

(AQS). The monitors generally should 

have remained at the same location for 

the duration of the monitoring period 

required for demonstrating attainment. 

In this action, EPA is preliminarily 

determining that the Memphis, TN–MS– 

AR Area has attained the 2008 8-hour 

ozone NAAQS. EPA reviewed ozone 

monitoring data from monitoring 

stations in the Memphis, TN–MS–AR 

Area for the 2008 8-hour ozone NAAQS 

for 2012–2014, and the design values for 

each monitor in the Area are less than 

0.075 ppm. These data have been 

quality-assured, are recorded in AQS, 

and indicate that the Area is attaining 

the 2008 8-hour ozone NAAQS. The 

fourth-highest 8-hour ozone values at 

each monitor for 2012, 2013, 2014, and 

the 3-year averages of these values (i.e., 

design values), are summarized in Table 

2, below. 

TABLE 2—2012–2014 DESIGN VALUE CONCENTRATIONS FOR THE MEMPHIS, TN–MS–AR AREA

[ppm] 

Location Site 

4th Highest 8-hour ozone value 

(ppm) 

3-Year design 

values 

(ppm) 

2012 2013 2014 2012–2014 

Shelby, TN ........................................ Frayser ............................................. 0.083 0.069 0.067 0.073 

Shelby, TN ........................................ Orgill Park ........................................ 0.084 0.063 0.065 0.070 

Shelby, TN ........................................ Shelby Farms ................................... 0.086 0.069 0.066 0.073 

Crittenden, AR .................................. Marion .............................................. 0.079 0.067 0.067 0.071 

DeSoto, MS ....................................... Hernando .......................................... 0.075 0.065 0.067 0.069 

The 3-year design value for 2012– 

2014 for the Memphis, TN–MS–AR Area 

is 0.073 ppm,10 which meets the 

NAAQS. EPA has reviewed 2015 

preliminary monitoring data for the 

Area and the preliminary data does not 

indicate a violation of the NAAQS.11 In 

today’s action, EPA is proposing to 

determine that the Memphis, TN–MS– 

AR Area has attained the 2008 8-hour 

ozone NAAQS. EPA will not take final 

action to approve the redesignation if 

the 3-year design value exceeds the 

NAAQS prior to EPA finalizing the 

redesignation. As discussed in more 

detail below, Tennessee has committed 

to continue monitoring in this Area in 

accordance with 40 CFR part 58. 

Criteria (2)—Tennessee Has a Fully 

Approved SIP Under Section 110(k) for 

the Tennessee Portion of the Memphis, 

TN–MS–AR Area; and Criteria (5)— 

Tennessee Has Met All Applicable 

Requirements Under Section 110 and 

Part D of Title I of the CAA 

For redesignating a nonattainment 

area to attainment, the CAA requires 

EPA to determine that the state has met 

all applicable requirements under 

section 110 and part D of title I of the 

CAA (CAA section 107(d)(3)(E)(v)) and 

that the state has a fully approved SIP 

under section 110(k) for the area (CAA 

section 107(d)(3)(E)(ii)). EPA proposes 

to find that Tennessee has met all 

applicable SIP requirements for the 

Tennessee portion of the Area under 

section 110 of the CAA (general SIP 

requirements) for purposes of 

redesignation. Additionally, EPA 

proposes to find that Tennessee has met 

all applicable SIP requirements for 

purposes of redesignation under part D 

of title I of the CAA in accordance with 

section 107(d)(3)(E)(v) and proposes to 

determine that the SIP is fully approved 

with respect to all requirements 

applicable for purposes of redesignation 

in accordance with section 

107(d)(3)(E)(ii) contingent upon 

approval of the 182(a)(1) base year 

emissions inventory for the 2008 8-hour 

ozone NAAQS for the Tenessee portion 

of the Area. In making these 

determinations, EPA ascertained which 

requirements are applicable to the Area 

and, if applicable, that they are fully 

approved under section 110(k). SIPs 

must be fully approved only with 

respect to requirements that were 

applicable prior to submittal of the 

complete redesignation request. 

a. The Tennessee Portion of the 

Memphis, TN–MS–AR Area Has Met All 

Applicable Requirements Under Section 

110 and Part D of the CAA 

General SIP requirements. General SIP 

elements and requirements are 

delineated in section 110(a)(2) of title I, 

part A of the CAA. These requirements 

include, but are not limited to, the 

following: submittal of a SIP that has 

been adopted by the state after 

reasonable public notice and hearing; 

provisions for establishment and 

operation of appropriate procedures 

needed to monitor ambient air quality; 

implementation of a source permit 

program; provisions for the 

implementation of part C requirements 

(Prevention of Significant Deterioration 


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(PSD)) and provisions for the 

implementation of part D requirements 

(NSR permit programs); provisions for 

air pollution modeling; and provisions 

for public and local agency participation 

in planning and emission control rule 

development. 

Section 110(a)(2)(D) requires that SIPs 

contain certain measures to prevent 

sources in a state from significantly 

contributing to air quality problems in 

another state. To implement this 

provision, EPA has required certain 

states to establish programs to address 

the interstate transport of air pollutants. 

The section 110(a)(2)(D) requirements 

for a state are not linked with a 

particular nonattainment area’s 

designation and classification in that 

state. EPA believes that the 

requirements linked with a particular 

nonattainment area’s designation and 

classifications are the relevant measures 

to evaluate in 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. Thus, EPA does not 

believe that the CAA’s interstate 

transport requirements should be 

construed to be applicable requirements 

for purposes of redesignation. 

In addition, EPA believes other 

section 110 elements that are neither 

connected with nonattainment plan 

submissions nor linked with an area’s 

attainment status are not applicable 

requirements for purposes of 

redesignation. The area will still be 

subject to these requirements after the 

area is redesignated. The section 110 

and part D requirements which are 

linked with a particular area’s 

designation and classification are the 

relevant measures to evaluate in 

reviewing a redesignation request. This 

approach is consistent with EPA’s 

existing policy on applicability (i.e., for 

redesignations) of conformity and 

oxygenated fuels requirements, as well 

as with section 184 ozone transport 

requirements. See Reading, 

Pennsylvania, proposed and final 

rulemakings (61 FR 53174–53176, 

October 10, 1996), (62 FR 24826, May 7, 

2008); Cleveland-Akron-Loraine, Ohio, 

final rulemaking (61 FR 20458, May 7, 

1996); and Tampa, Florida, final 

rulemaking at (60 FR 62748, December 

7, 1995). See also the discussion on this 

issue in the Cincinnati, Ohio, 

redesignation (65 FR 37890, June 19, 

2000), and in the Pittsburgh, 

Pennsylvania, redesignation (66 FR 

50399, October 19, 2001). 

Title I, part D, applicable SIP 

requirements. Section 172(c) of the CAA 

sets forth the basic requirements of 

attainment plans for nonattainment 

areas that are required to submit them 

pursuant to section 172(b). Subpart 2 of 

part D, which includes section 182 of 

the CAA, establishes specific 

requirements for ozone nonattainment 

areas depending on the area’s 

nonattainment classification. As 

provided in subpart 2, a marginal ozone 

nonattainment area, such as the 

Memphis, TN–MS–AR Area, must 

submit an emissions inventory that 

complies with section 172(c)(3), but the 

specific requirements of section 182(a) 

apply in lieu of the demonstration of 

attainment (and contingency measures) 

required by section 172(c). See 42 U.S.C. 

7511a(a). A thorough discussion of the 

requirements contained in sections 

172(c) and 182 can be found in the 

General Preamble for Implementation of 

Title I (57 FR 13498). 

Section 182(a) requirements. Section 

182(a)(1) requires states to submit a 

comprehensive, accurate, and current 

inventory of actual emissions from 

sources of VOC and NOx emitted within 

the boundaries of the ozone 

nonattainment area. Tennessee provided 

an emissions inventory for the 

Tennessee portion of the Area to EPA in 

a January 19, 2016, SIP submission. 

Specifically, Tennessee addressed this 

requirement by submitting a 2011 base 

year emissions inventory for the 

Tennessee portion of the Area. EPA is 

proposing approval of Tennessee’s 2011 

base year emissions inventory in this 

action (see Section V.A. above). 

Tennessee’s section 182(a)(1) inventory 

must be approved before EPA can take 

final action to approve the State’s 

redesignation request for the Tennessee 

portion of the Area. 

Under section 182(a)(2)(A), states 

with ozone nonattainment areas that 

were designated prior to the enactment 

of the 1990 CAA amendments were 

required to submit, within six months of 

classification, all rules and corrections 

to existing VOC RACT rules that were 

required under section 172(b)(3) of the 

CAA (and related guidance) prior to the 

1990 CAA amendments. The Tennessee 

portion of the Memphis, TN–MS–AR 

Area is not subject to the section 

182(a)(2) RACT ‘‘fix up’’ because the 

Area was designated as nonattainment 

after the enactment of the 1990 CAA 

amendments. 

Section 182(a)(2)(B) requires each 

state with a marginal ozone 

nonattainment area that implemented, 

or was required to implement, an 

inspection and maintenance (I/M) 

program prior to the 1990 CAA 

amendments to submit a SIP revision 

providing for an I/M program no less 

stringent than that required prior to the 

1990 amendments or already in the SIP 

at the time of the amendments, 

whichever is more stringent. The 

Tennessee portion of the Memphis, TN– 

MS–AR Area is not subject to the 

section 182(a)(2)(B) because it was 

designated as nonattainment after the 

enactment of the 1990 CAA 

amendments and did not have an I/M 

program in place for ozone prior to 

those amendments. 

Regarding the permitting and offset 

requirements of section 182(a)(2)(C) and 

section 182(a)(4), Tennessee currently 

has a fully approved part D NSR 

program in place. However, EPA has 

determined that areas being 

redesignated need not comply with the 

requirement that a NSR program be 

approved prior to redesignation, 

provided that the area demonstrates 

maintenance of the NAAQS without 

part D NSR, because PSD requirements 

will apply after redesignation. 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.’’ 

Tennessee’s PSD program will become 

applicable in the Memphis, TN–MS–AR 

Area upon redesignation to attainment. 

Section 182(a)(3) requires states to 

submit periodic inventories and 

emissions statements. Section 

182(a)(3)(A) requires states to submit a 

periodic inventory every three years. As 

discussed below in the section of this 

notice titled Verification of Continued 

Attainment, the State will continue to 

update its emissions inventory at least 

once every three years. Under section 

182(a)(3)(B), each state with an ozone 

nonattainment area must submit a SIP 

revision requiring emissions statements 

to be submitted to the state by sources 

within that nonattainment area. 

Tennessee provided a SIP revision to 

EPA on January 5, 2015, addressing the 

section 182(a)(3)(B) emissions 

statements requirement, and on March 

5, 2015, EPA published a direct final 

rule approving this SIP revision. See 80 

FR 11974. 

Section 176 conformity requirements. 

Section 176(c) of the CAA requires 

states to establish criteria and 

procedures to ensure that federally 

supported or funded projects conform to 

the air quality planning goals in the 

applicable SIP. The requirement to 

determine conformity applies to 

transportation plans, programs, and 

projects that are developed, funded, or 

approved under title 23 of the United 

States Code (U.S.C.) and the Federal 

Transit Act (transportation conformity) 


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12CAA 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 the MVEBs that 

are established in control strategy SIPs and 

maintenance plans. 

13Tennessee compared ozone data on days with 

the highest 8-hour ozone maxima in 2005 and 2006 

to ozone data on days of comparative weather 

conditions in 2012–2014. The weather parameters 

used in the comparison were maximum 

temperature, dew point depression, relative 

humidity, cloud cover, wind direction and wind 

speed. The ozone levels in 2005–2006 were 

considerably higher than the ozone levels during 

similar weather conditions in 2012–2014 indicating 

that emission reductions between 2006 and 2014 

are the reason for the reduction in ozone levels. 

Details of the analysis are found in Attachment I to 

Tennessee’s January 19, 2016, SIP submittal. 

14EPA, Regulatory Announcement, EPA420–F– 

99–051 (December 1999), available at: http://

www.epa.gov/tier2/documents/f99051.pdf. 15The Memphis Area MPO estimates for Shelby 

County alone emission reductions of 2.05 tons per 

day (tpd) for NOX (a 4.7 percent reduction) and 0.54 

tpd for VOCs (3 percent reduction) from 2009 to 

2012. TDEC notes that this occurred when the 

vehicle miles traveled (VMT) increased by 9.3 

percent. 

16 66 FR 5002, 5012 (January 18, 2001). 

as well as to all other federally 

supported or funded projects (general 

conformity). State transportation 

conformity SIP revisions must be 

consistent with federal conformity 

regulations relating to consultation, 

enforcement, and enforceability that 

EPA promulgated pursuant to its 

authority under the CAA. 

EPA interprets the conformity SIP 

requirements 12 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 Wall v. 

EPA, 265 F.3d 426 (6th Cir. 2001) 

(upholding this interpretation); see also 

60 FR 62748 (December 7, 1995) 

(redesignation of Tampa, Florida). 

Nonetheless, Tennessee has an 

approved conformity SIP for the 

Tennessee portion of the Memphis, TN– 

MS–AR Area. See 78 FR 29027 (May 17, 

2013). Thus, EPA proposes that the 

Tennessee portion of the Memphis, TN– 

MS–AR Area has satisfied all applicable 

requirements for purposes of 

redesignation under section 110 and 

part D of title I of the CAA contingent 

upon approval of the 182(a)(1) base year 

emissions inventory. 

b. The Tennessee Portion of the 

Memphis, TN–MS–AR Area Has a Fully 

Approved Applicable SIP Under Section 

110(k) of the CAA 

EPA has fully approved the applicable 

Tennessee SIP for the Memphis, TN– 

MS–AR Area under section 110(k) of the 

CAA for all requirements applicable for 

purposes of redesignation except for the 

182(a)(1) base year emissions inventory. 

EPA may rely on prior SIP approvals in 

approving a redesignation request (see 

Calcagni Memorandum at p. 3; 

Southwestern Pennsylvania Growth 

Alliance v. Browner, 144 F.3d 984, 989– 

90 (6th Cir. 1998); Wall, 265 F.3d 426) 

plus any additional measures it may 

approve in conjunction with a 

redesignation action (see 68 FR 25426 

(May 12, 2003) and citations therein). 

Tennessee has adopted and submitted, 

and EPA has fully approved at various 

times, provisions addressing various SIP 

elements applicable for the ozone 

NAAQS. See 78 FR 14450 (March 6, 

2013). 

As indicated above, EPA believes that 

the section 110 elements that are neither 

connected with nonattainment plan 

submissions nor linked to an area’s 

nonattainment status are not applicable 

requirements for purposes of 

redesignation. With the exception of the 

emissions inventory requirement, which 

is addressed in this action, EPA has 

approved all part D requirements 

applicable for purposes of this 

redesignation. As noted above, EPA has 

approved Tennessee’s emissions 

statements SIP revisions under CAA 

section 182(a)(3)(B). See 80 FR 11974 

(March 5, 2015). 

Criteria (3)—The Air Quality 

Improvement in the Memphis, TN–MS– 

AR Area Is Due to Permanent and 

Enforceable Reductions in Emissions 

Resulting From Implementation of the 

SIP and Applicable Federal Air 

Pollution Control Regulations and Other 

Permanent and Enforceable Reductions 

For redesignating a nonattainment 

area to attainment, the CAA requires 

EPA to determine that the air quality 

improvement in the area is due to 

permanent and enforceable reductions 

in emissions resulting from 

implementation of the SIP, applicable 

federal air pollution control regulations, 

and other permanent and enforceable 

reductions (CAA section 

107(d)(3)(E)(iii)). EPA has preliminarily 

determined that Tennessee has 

demonstrated that the observed air 

quality improvement in the Memphis, 

TN–MS–AR Area is due to permanent 

and enforceable reductions in emissions 

resulting from federal measures and are 

not the result of weather conditions.13

EPA does not have any information to 

suggest that the decrease in ozone 

concentrations in the Memphis, TN– 

MS–AR Area is due to unusually 

favorable meteorological conditions. 

Federal measures enacted in recent 

years have resulted in permanent 

emission reductions. The federal 

measures that have been implemented 

include the following: 

Tier 2 vehicle and fuel standards. 

Implementation began in 2004 and 

requires all passenger vehicles in any 

manufacturer’s fleet to meet an average 

standard of 0.07 grams of NOX per mile. 

Additionally, in January 2006, the sulfur 

content of gasoline was required to be 

on average 30 ppm which assists in 

lowering the NOX emissions. EPA 

expects that these standards will reduce 

NOX emissions from vehicles by 

approximately 74 percent by 2030, 

translating to nearly 3 million tons 

annually by 2030.14 15

Heavy-duty gasoline and diesel 

highway vehicle standards. EPA issued 

this rule in January 2001 (66 FR 5002). 

This rule includes standards limiting 

the sulfur content of diesel fuel, which 

went into effect in 2004. A second phase 

took effect in 2007, which further 

reduced the highway diesel fuel sulfur 

content to 15 ppm, leading to additional 

reductions in combustion NOX and VOC 

emissions. EPA expects that this rule 

will achieve a 95 percent reduction in 

NOX emissions from diesel trucks and 

buses and will reduce NOX emissions by 

2.6 million tons by 2030 when the 

heavy-duty vehicle fleet is completely 

replaced with newer heavy-duty 

vehicles that comply with these 

emission standards.16

Large non-road diesel engines rule. 

This rule was promulgated in 2004 and 

was phased in between 2008 through 

2014. This rule reduces the sulfur 

content in the nonroad diesel fuel and 

reduces NOX, VOC, particulate matter, 

and carbon monoxide emissions. These 

emission reductions are federally 

enforceable. EPA issued this rule in 

June 2004, which applies to diesel 

engines used in industries such as 

construction, agriculture, and mining. It 

is estimated that compliance with this 

rule will cut NOX emissions from nonroad diesel engines by up to 90 percent 

nationwide. 

Nonroad spark-ignition engines and 

recreational engines standards. The 

nonroad spark-ignition and recreational 

engine standards, effective in July 2003, 

regulate NOX, hydrocarbons, and carbon 

monoxide from groups of previously 

unregulated nonroad engines. These 

engine standards apply to large sparkignition engines (e.g., forklifts and 

airport ground service equipment), 

recreational vehicles (e.g., off-highway 

motorcycles and all-terrain-vehicles), 

and recreational marine diesel engines 

sold in the United States and imported 

after the effective date of these 


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17This guidance includes: Procedures for the 

Preparation of Emission Inventories of Carbon 

Monoxide and Precursors of Ozone, Vol. 1, EPA– 

450/4–91–016 (May 1991) and Emissions Inventory 

Improvement Program (EIIP) Technical Report, Vol. 

3, Area Sources (Revised January 2001, updated 

April 2001). 

18Tennessee used MOVES2014 technical 

guidance: Using MOVES to Prepare Emission 

Inventories in State Implementation Plans and 

Transportation Conformity, EPA–420–b–15–007 

(January 2015). 

standards. When all of the nonroad 

spark-ignition and recreational engine 

standards are fully implemented, an 

overall 72 percent reduction in 

hydrocarbons, 80 percent reduction in 

NOX, and 56 percent reduction in 

carbon monoxide emissions are 

expected by 2020. These controls reduce 

ambient concentrations of ozone, carbon 

monoxide, and fine particulate matter. 

National program for greenhouse gas 

(GHG) emissions and fuel economy 

standards. The federal GHG and fuel 

economy standards apply to light-duty 

cars and trucks in model years 2012– 

2016 (phase 1) and 2017–2025 (phase 2). 

The final standards are projected to 

result in an average industry fleet-wide 

level of 163 grams/mile of carbon 

dioxide which is equivalent to 54.5 

miles per gallon if achieved exclusively 

through fuel economy improvements. 

The fuel economy standards result in 

less fuel being consumed, and therefore 

less NOX emissions released. 

EPA proposes to find that the 

improvements in air quality in the 

Memphis, TN–MS–AR Area are due to 

real, permanent and enforceable 

reductions in NOX and VOC emissions 

resulting from the federal measures 

discussed above. 

Criteria (4)—The Tennessee Portion of 

the Memphis, TN–MS–AR Area Has a 

Fully Approved Maintenance Plan 

Pursuant to Section 175A of the CAA 

For redesignating a nonattainment 

area to attainment, the CAA requires 

EPA to determine that the area has a 

fully approved maintenance plan 

pursuant to section 175A of the CAA 

(CAA section 107(d)(3)(E)(iv)). In 

conjunction with its request to 

redesignate the Tennessee portion of the 

Memphis, TN–MS–AR Area to 

attainment for the 2008 8-hour ozone 

NAAQS, TDEC submitted a SIP revision 

to provide for the maintenance of the 

2008 8-hour ozone NAAQS for at least 

10 years after the effective date of 

redesignation to attainment. EPA has 

made the preliminary determination 

that this maintenance plan meets the 

requirements for approval under section 

175A of the CAA. 

a. What is required in a maintenance 

plan? 

Section 175A of the CAA sets forth 

the elements of a maintenance plan for 

areas seeking redesignation from 

nonattainment to attainment. Under 

section 175A, the plan must 

demonstrate continued attainment of 

the applicable NAAQS for at least 10 

years after the Administrator approves a 

redesignation to attainment. Eight years 

after the redesignation, the state must 

submit a revised maintenance plan 

which demonstrates that attainment will 

continue to be maintained for the 

remainder of the 20-year period 

following the initial 10-year period. To 

address the possibility of future NAAQS 

violations, the maintenance plan must 

contain contingency measures as EPA 

deems necessary to assure prompt 

correction of any future 2008 8-hour 

ozone violations. The Calcagni 

Memorandum provides further guidance 

on the content of a maintenance plan, 

explaining that a maintenance plan 

should address five requirements: The 

attainment emissions inventory, 

maintenance demonstration, 

monitoring, verification of continued 

attainment, and a contingency plan. As 

is discussed more fully below, EPA has 

preliminarily determined that 

Tennessee’s maintenance plan includes 

all the necessary components and is 

thus proposing to approve it as a 

revision to the Tennessee SIP. 

b. Attainment Emissions Inventory 

As discussed above, EPA is proposing 

to determine that the Memphis, TN– 

MS–AR Area has attained the 2008 8- 

hour ozone NAAQS based on qualityassured monitoring data for the 3-year 

period from 2012–2014, and is 

continuing to attain the standard based 

on preliminary 2015 data. Tennessee 

selected 2012 as the base year (i.e., 

attainment emissions inventory year) for 

developing a comprehensive emissions 

inventory for NOX and VOC, for which 

projected emissions could be developed 

for 2017, 2020, and 2027. The 

attainment inventory identifies a level 

of emissions in the Area that is 

sufficient to attain the 2008 8-hour 

ozone NAAQS. Tennessee began 

development of the attainment 

inventory by first generating a baseline 

emissions inventory for the State’s 

portion of the Memphis, TN–MS–AR 

Area. The State projected summer day 

emission inventories using projected 

rates of growth in population, traffic, 

economic activity, and other 

parameters. In addition to comparing 

the final year of the plan (2027) to the 

base year (2012), Tennessee compared 

interim years to the baseline to 

demonstrate that these years are also 

expected to show continued 

maintenance of the 2008 8-hour ozone 

standard. 

The emissions inventory is composed 

of four major types of sources: Point, 

area, on-road mobile, and non-road 

mobile. Complete descriptions of how 

the State developed these inventories 

are located in Attachment I of the 

January 19, 2016, SIP submittal. 

Point source emissions are tabulated 

from data collected by direct on-site 

measurements of emissions or from 

mass balance calculations utilizing 

approved emission factors. The 2012 

base year inventory contains point 

source emissions data for facilities 

located within Shelby County. Each 

facility was required to update the data 

through the EIQ with information for 

the requested year and return the 

updated data to Shelby County Health 

Department. The point source emissions 

inventory for Shelby County is located 

in the docket for today’s action. For 

each projected year’s inventory for 2017, 

2020, and 2027, the State projected 

point source emissions using growth 

factors developed from the United 

States Department of Energy’s 2014 

Annual Energy Outlook (AEO) 

projections and the University of 

Tennessee, Data Center 2014 

Econometric Model Forecast. A 

conservative value of 1 was substituted 

for all negative growth factors. Growth 

factors used for this analysis include 

fuel consumption, employment, and 

population changes. 

Emissions for area sources were 

estimated by multiplying an emission 

factor by such indicators of collective 

emissions activity as production, 

number of employees, or population. 

These emissions were estimated at the 

county level. Tennessee used a similar 

method to that used to develop the 2011 

emissions inventory. For each projected 

year’s inventory, emission factors are 

used to determine area source 

emissions. Tennessee developed its 

inventory according to the current EPA 

emissions inventory guidance for area 

sources.17

Tennessee developed its 2012 on-road 

emissions inventory using EPA’s 

MOVES2014 model with input data 

from the MPO.18 County level on-road 

modeling was conducted using countyspecific vehicle population and other 

local data. Tennessee developed its 

inventory according to the current EPA 

emissions inventory guidance for onroad mobile sources using MOVES2014. 

The MOVES2014 model includes the 

VMT as an input file and can directly 

output the estimated emissions. For 

each projected year’s inventory, 


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19This guidance includes: Procedures for 

Emission Inventory Preparation, Volume IV: Mobile 

Sources, EPA–450/4–81–026d (December 1992). 

Tennessee calculated the on-road 

mobile sources emissions by running 

the MOVES mobile model for the future 

year with the projected VMT to generate 

emissions that take into consideration 

expected federal tailpipe standards, fleet 

turnover, and new fuels. 

Non-road mobile sources include nonroad equipment, airport, commercial 

marine vessels, and locomotives. The 

majority of the non-road mobile 

emissions in the U.S. are from the nonroad equipment segment (i.e., 

agricultural equipment, construction 

equipment, lawn and garden equipment, 

and recreational vehicles, such as boats 

and jet-skis). Tennessee calculated 

emissions for most of the non-road 

mobile sources using EPA’s 

NONROAD2008a model within EPA’s 

MOVES2014 model and developed its 

non-road mobile source inventory 

according to the current EPA emissions 

inventory guidance for non-road mobile 

sources.19

c. Maintenance Demonstration 

The maintenance plan associated with 

the redesignation request includes a 

maintenance demonstration that: 

(i) Shows compliance with and 

maintenance of the 2008 8-hour ozone 

NAAQS by providing information to 

support the demonstration that current 

and future emissions of NOX and VOC 

remain at or below 2012 emissions 

levels. 

(ii) Uses 2012 as the attainment year 

and includes future emissions inventory 

projections for 2017, 2020, and 2027. 

(iii) Identifies an ‘‘out year’’ at least 10 

years after the time necessary for EPA to 

review and approve the maintenance 

plan. Per 40 CFR part 93, NOX and VOC 

MVEBs were established for the last 

year (2027) of the maintenance plan (see 

section VI below). 

(iv) Provides actual (2012) and 

projected emissions inventories, in tons 

per summer day (tpsd), for the 

Tennessee portion of the Memphis, TN– 

MS–AR Area, as shown in Tables 3 and 

4, below. 

TABLE 3—ACTUAL AND PROJECTED AVERAGE SUMMER DAY NOX EMISSIONS (TPD) FOR THE TENNESSEE PORTION OF

THE MEMPHIS, TN–MS–AR AREA

Sector 2012 2017 2020 2027 

Point ................................................................................................................. 13.87 13.45 8.34 8.43 

Area ................................................................................................................. 4.11 4.18 4.24 4.33 

Non-road .......................................................................................................... 35.93 32.09 30.57 29.77 

On-road ............................................................................................................ 61.56 31.30 22.42 12.51 

Total .......................................................................................................... 115.47 81.01 65.56 55.05 

TABLE 4—ACTUAL AND PROJECTED AVERAGE SUMMER DAY VOC EMISSIONS (TPD) FOR THE TENNESSEE PORTION OF

THE MEMPHIS, TN–MS–AR AREA

Sector 2012 2017 2020 2027 

Point ................................................................................................................. 9.30 6.64 6.22 6.24 

Area ................................................................................................................. 44.04 45.33 45.53 46.30 

Non-road .......................................................................................................... 28.44 21.32 19.76 19.33 

On-road ............................................................................................................ 19.01 11.22 8.75 5.81 

Total .......................................................................................................... 100.79 84.51 80.26 77.69 

Tables 3 and 4 summarize the 2012 

and future projected emissions of NOX

and VOC from the Tennessee portion of 

the Memphis, TN–MS–AR Area. In 

situations where local emissions are the 

primary contributor to nonattainment, 

such as the Memphis, TN–MS–AR Area 

if the future projected emissions in the 

nonattainment area remain at or below 

the baseline emissions in the 

nonattainment area, then the related 

ambient air quality standard should not 

be exceeded in the future. Tennessee 

has projected emissions as described 

previously and determined that 

emissions in the Tennessee portion of 

the Memphis, TN–MS–AR Area will 

remain below those in the attainment 

year inventory for the duration of the 

maintenance plan. 

As discussed in section VI of this 

proposed rulemaking, a safety margin is 

the difference between the attainment 

level of emissions (from all sources) and 

the projected level of emissions (from 

all sources) in the maintenance plan. 

The attainment level of emissions is the 

level of emissions during one of the 

years in which the area met the NAAQS. 

Tennessee selected 2012 as the 

attainment emissions inventory year for 

the Tennessee portion of the Memphis, 

TN–MS–AR Area. Tennessee calculated 

safety margins in its submittal for 2027. 

The State has allocated a portion of the 

2027 safety margin to the 2027 MVEBs 

for the Memphis, TN–MS–AR Area. 

TABLE 5—SAFETY MARGINS FOR THE

TENNESSEE PORTION OF THE MEMPHIS, TN–MS–AR AREA

Year VOC 

(tpd) 

NOX

(tpd) 

2027 ...................... 23.10 60.42 

The State has decided to allocate a 

portion of the available safety margin to 

the 2027 MVEBs to allow for 

unanticipated growth in VMT, changes 

and uncertainty in vehicle mix 

assumptions, etc., that will influence 

the emission estimations. Tennessee has 

allocated 49.04 tpd of the NOX safety 

margin to the 2027 NOX MVEB and 

13.19 tpd of the VOC safety margin to 

the 2027 VOC MVEB. After allocation of 

the available safety margin, the 

remaining safety margin is 11.38 tpd for 


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20 If the State adopts a voluntary emission 

reduction measure as a contingency measure 

necessary to attain or maintain the NAAQS, EPA 

will evaluate approvability in accordance with 

relevant Agency guidance regarding the 

incorporation of voluntary measures into SIPs. See, 

e.g., Memorandum from Richard D. Wilson, Acting 

Administrator for Air and Radiation, to EPA 

Regional Administrators re: Guidance on 

Incorporating Voluntary Mobile Source Emission 

Reduction Programs in State Implementation Plans 

(SIPs) (October 24, 1997); EPA, Office of Air and 

Radiation, Incorporating Emerging and Voluntary 

Measures in a State Implementation Plan (SIP) 

(September 2004). 

NOX and 9.91 tpd for VOC. This 

allocation and the resulting available 

safety margin for the Tennessee portion 

of the Memphis, TN–MS–AR Area are 

discussed further in section VI of this 

proposed rulemaking along with the 

MVEBs to be used for transportation 

conformity proposes. 

d. Monitoring Network 

There currently are five monitors 

measuring ozone in the Memphis, TN– 

MS–AR Area, of which three are in the 

Tennessee portion of the Memphis, TN– 

MS–AR Area. Tennessee has committed 

to continue operation of the monitors in 

the Tennessee portion of the Memphis, 

TN–MS–AR Area in compliance with 40 

CFR part 58 and has thus addressed the 

requirement for monitoring. Arkansas 

and Mississippi have made similar 

commitments in their maintenance 

plans. EPA approved Tennessee’s 

monitoring plan on October 26, 2015. 

EPA approved Arkansas’ monitoring 

plan on November 16, 2015, and 

approved Mississippi’s monitoring plan 

on October 6, 2015. 

e. Verification of Continued Attainment 

TDEC has the legal authority to 

enforce and implement the maintenance 

plan for the Tennessee portion of the 

Area. This includes the authority to 

adopt, implement, and enforce any 

subsequent emissions control 

contingency measures determined to be 

necessary to correct future ozone 

attainment problems. 

Additionally, under the AERR, TDEC 

is required to develop a comprehensive, 

annual, statewide emissions inventory 

every three years that is due twelve to 

eighteen months after the completion of 

the inventory year. Tennessee will 

update the AERR inventory every three 

years beginning no later than the 2015 

emission season and will use the 

updated emissions inventory to track 

progress of the maintenance plan. 

f. Contingency Measures in the 

Maintenance Plan 

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 occurs after redesignation. 

The maintenance plan should identify 

the contingency measures to be adopted, 

a schedule and procedure for adoption 

and implementation, and a time limit 

for action by the state. A state should 

also identify specific indicators to be 

used to determine when the 

contingency measures need to be 

implemented. The maintenance plan 

must include a requirement that a state 

will implement all measures with 

respect to control of the pollutant that 

were contained in the SIP before 

redesignation of the area to attainment 

in accordance with section 175A(d). 

In the January 19, 2016, submittal, 

Tennesee commits to continuing 

existing programs and commits to 

implement programs and measures 

depending upon emission inventory and 

air quality monitoring results. The 

contingency plan included in the 

submittal includes a triggering 

mechanism to determine when 

contingency measures are needed and a 

process of developing and 

implementing appropriate control 

measures. 

The primary trigger is activated when 

emissions or ambient air monitoring 

data indicates possible future ozone 

levels violating the 2008 8-hour ozone 

NAAQS but an actual violation of the 

2008 8-hour ozone NAAQS has not yet 

occurred. This will occur if the certified 

triennial emissions inventory of VOCs 

or NOX (summer season tons per day) 

exceeds the 2012 base year attainment 

inventory by ten percent or more and 

any area monitor has recorded at least 

one exceedance of the ozone NAAQS 

according to certified data during the 

most recent monitoring season. The 

Shelby County Health Department will 

then conduct an investigation lasting no 

longer than three months into the 

possible causes. The results will be 

reported to EPA and TDEC. If the data 

is valid and not due to unusual 

circumstances, the Shelby County 

Health Department will seek to expand 

voluntary programs 20 and develop 

regulations as appropriate following 

consultation with EPA and TDEC. Proof 

of regulation adoption will be sent to 

EPA within nine months and 

implementation of regulations will 

occur within 18 to 24 months after 

monitoring data is certified. Possible 

contingency measures include, but are 

not limited to: 

Æ Programs or incentives to decrease 

motor vehicle use; 

Æ Programs to require additional 

emissions reductions on stationary 

sources; 

Æ Restrictions of certain roads or 

lanes for, or construction of such roads 

or lanes for use by, passenger buses or 

high-occupancy vehicles; 

Æ Employer-based transportation 

incentive plans; and 

Æ Additional programs for new 

construction of paths for use by 

pedestrian or non-motorized vehicles 

when economically feasible and in the 

public interest. 

The secondary trigger is a violation of 

the 2008 8-hour ozone NAAQS (i.e., 

when the three-year average of the 4th 

highest values is equal to or greater than 

0.076 ppm at a monitor in the Area). 

The trigger date will be when a 

monitored violation of the 2008 ozone 

NAAQS occurs in the nonattainment 

area according to certified data during 

the most recent monitoring season. The 

Shelby County Health Department will 

then conduct an investigation lasting no 

longer than three months into the 

possible causes. The results will be 

reported to TDEC and EPA. If the data 

is valid, further action is required, and 

the Shelby County Health Department 

will seek to expand voluntary programs 

and develop regulations for submission 

to the Shelby County Commission or 

Tennessee State Air Board. Proof of 

adoption of such regulations will be 

submitted to EPA within nine months 

after the end of the investigation. 

Control measures will be implemented 

within 18 to 24 months after verification 

of a monitored violation by certified 

data. In addition to the measures stated 

for the primary trigger, the following 

measures may also be implemented if 

there is a secondary trigger of a violation 

of the standard: 

Æ A RACT regulation for legacy major 

sources of NOX emissions in Shelby 

County; and 

Æ Adoption of all industrial and 

commercial VOC controls as provided 

in final EPA-approved Control 

Technology Guidelines through the date 

of the recorded violation. 

EPA preliminarily concludes that the 

maintenance plan adequately addresses 

the five basic components of a 

maintenance plan: The attainment 

emissions inventory, maintenance 

demonstration, monitoring, verification 

of continued attainment, and a 

contingency plan. Therefore, EPA 

proposes to find that the maintenance 

plan SIP revision submitted by 

Tennessee for the State’s portion of the 

Area meets the requirements of section 

175A of the CAA and is approvable. 


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VI. What is EPA’s analysis of 

Tennessee’s proposed NOX and VOC 

MVEBs for the Tennessee portion of the 

area? 

Under section 176(c) of the CAA, new 

transportation plans, programs, and 

projects, such as the construction of 

new highways, must ‘‘conform’’ to (i.e., 

be consistent with) the part of the state’s 

air quality plan that addresses pollution 

from cars and trucks. Conformity to the 

SIP means that transportation activities 

will not cause new air quality 

violations, worsen existing violations, or 

delay timely attainment of the NAAQS 

or any interim milestones. If a 

transportation plan does not conform, 

most new projects that would expand 

the capacity of roadways cannot go 

forward. Regulations at 40 CFR part 93 

set forth EPA policy, criteria, and 

procedures for demonstrating and 

assuring conformity of such 

transportation activities to a SIP. The 

regional emissions analysis is one, but 

not the only, requirement for 

implementing transportation 

conformity. Transportation conformity 

is a requirement for nonattainment and 

maintenance areas. Maintenance areas 

are areas that were previously 

nonattainment for a particular NAAQS 

but have since been redesignated to 

attainment with an approved 

maintenance plan for that NAAQS. 

Under the CAA, states are required to 

submit, at various times, control strategy 

SIPs and maintenance plans for 

nonattainment areas. These control 

strategy SIPs (including RFP and 

attainment demonstration requirements) 

and maintenance plans create MVEBs 

for criteria pollutants and/or their 

precursors to address pollution from 

cars and trucks. Per 40 CFR part 93, a 

MVEB must be established for the last 

year of the maintenance plan. A state 

may adopt MVEBs for other years as 

well. The MVEB is the portion of the 

total allowable emissions in the 

maintenance demonstration that is 

allocated to highway and transit vehicle 

use and emissions. See 40 CFR 93.101. 

The MVEB serves as a ceiling 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 MVEB in the SIP 

and how to revise the MVEB. 

After interagency consultation with 

the transportation partners for the 

Memphis TN–MS–AR Area, Tennessee 

has developed MVEBs for NOX and VOC 

for the Tennessee portion of the Area. 

Tennessee developed these MVEBs, as 

required, for the last year of its 

maintenance plan, 2027. The 2027 

MVEBs reflect the total projected onroad emissions for 2027, plus an 

allocation from the available NOX and 

VOC safety margins. Under 40 CFR 

93.101, the term ‘‘safety margin’’ is the 

difference between the attainment level 

(from all sources) and the projected 

level of emissions (from all sources) in 

the maintenance plan. The safety 

margin can be allocated to the 

transportation sector; however, the total 

emissions must remain below the 

attainment level. The NOX and VOC 

MVEBs and allocation from the safety 

margin were developed in consultation 

with the transportation partners and 

were added to account for uncertainties 

in population growth, changes in model 

vehicle miles traveled, and new 

emission factor models. The NOX and 

VOC MVEBs for the Tennessee portion 

of the Area are identified in Table 6, 

below. 

TABLE 6—TENNESSEE PORTION OF

THE AREA NOX AND VOC MVEBS

(TPD)* 

2027 

NOX Base Emissions ................... 12.51 

NOX Safety Margin Allocated to 

MVEB ........................................ 49.04 

NOX MVEB ................................... 61.56 

VOC Base Emissions ................... 5.81 

VOC Safety Margin Allocated to 

MVEB ........................................ 13.19 

VOC MVEB ................................... 19.01 

* The MVEBs do not total the sum of the 

base emissions and safety margins due to 

rounding convention. 

As mentioned above, Tennessee has 

chosen to allocate a portion of the 

available safety margin to the NOX and 

VOC MVEBs for the Tennessee portion 

of the Area. This allocation is 49.04 tpd 

and 13.19 tpd for NOX and VOC, 

respectively. Thus, the remaining safety 

margins for 2027 are 11.38 tpd and 9.91 

tpd NOX and VOC, respectively. 

Through this rulemaking, EPA is 

proposing to approve the MVEBs for 

NOX and VOC for 2027 for the 

Tennessee Portion of the Area because 

EPA has preliminarily determined that 

the Area maintains the 2008 8-hour 

ozone NAAQS with the emissions at the 

levels of the budgets. Once the MVEBs 

for the Tennessee Portion of the Area 

are approved or found adequate 

(whichever is completed first), they 

must be used for future conformity 

determinations. 

VII. What is the status of EPA’s 

adequacy determination for the 

proposed NOX and VOC MVEBs for the 

Tennessee portion of the area? 

When reviewing submitted ‘‘control 

strategy’’ SIPs or maintenance plans 

containing MVEBs, EPA may 

affirmatively find the MVEB contained 

therein adequate for use in determining 

transportation conformity. Once EPA 

affirmatively finds the submitted MVEB 

is adequate for transportation 

conformity purposes, that MVEB must 

be used by state and federal agencies in 

determining whether proposed 

transportation projects conform to the 

SIP as required by section 176(c) of the 

CAA. 

EPA’s substantive criteria for 

determining adequacy of a MVEB are set 

out in 40 CFR 93.118(e)(4). The process 

for determining adequacy consists of 

three basic steps: Public notification of 

a SIP submission, a public comment 

period, and EPA’s adequacy 

determination. This process for 

determining the adequacy of submitted 

MVEBs for transportation conformity 

purposes was initially outlined in EPA’s 

May 14, 1999, guidance, ‘‘Conformity 

Guidance on Implementation of March 

2, 1999, Conformity Court Decision.’’ 

EPA adopted regulations to codify the 

adequacy process in the Transportation 

Conformity Rule Amendments for the 

‘‘New 8-Hour Ozone and PM2.5 National 

Ambient Air Quality Standards and 

Miscellaneous Revisions for Existing 

Areas; Transportation Conformity Rule 

Amendments—Response to Court 

Decision and Additional Rule Change,’’ 

on July 1, 2004 (69 FR 40004). 

Additional information on the adequacy 

process for transportation conformity 

purposes is available in the proposed 

rule entitled, ‘‘Transportation 

Conformity Rule Amendments: 

Response to Court Decision and 

Additional Rule Changes,’’ 68 FR 38974, 

38984 (June 30, 2003). 

As discussed earlier, Tennessee’s 

maintenance plan includes NOX and 

VOC MVEBs for the Tennessee portion 

of the Memphis TN–MS–AR Area for 

2027, the last year of the maintenance 

plan. EPA reviewed the NOX and VOC 

MVEBs through the adequacy process. 

The NOX and VOC MVEBs for the 

Tennessee portion of the area were open 

for public comment on EPA’s adequacy 

Web site on January 27, 2016, found at: 

http://www3.epa.gov/otaq/

stateresources/transconf/

currsips.htm#shelby-cnty. The EPA 

public comment period on adequacy for 

the 2027 MVEBs for the Tennessee 

portion of the Area closed on February 


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26, 2016, and no comments, adverse or 

otherwise, were received. 

EPA intends to make its 

determination on the adequacy of the 

2027 MVEBs for the Tennessee portion 

of the Area for transportation 

conformity purposes in the near future 

by completing the adequacy process that 

was started on January 27, 2016. After 

EPA finds the 2027 MVEBs adequate or 

approves them, the new MVEBs for NOX

and VOC must be used for future 

transportation conformity 

determinations. For required regional 

emissions analysis years for 2027 and 

beyond, the applicable budgets will be 

the new 2027 MVEBs established in the 

maintenance plan. 

VIII. What is the effect of EPA’s 

proposed actions? 

EPA’s proposed actions establish the 

basis upon which EPA may take final 

action on the issues being proposed for 

approval today. Approval of 

Tennessee’s redesignation request 

would change the legal designation of 

Shelby County, Tennessee, in the 

Memphis TN–MS–AR Area, found at 40 

CFR part 81, from nonattainment to 

attainment for the 2008 8-hour ozone 

NAAQS. Approval of Tennessee’s 

associated SIP revision would also 

incorporate a plan for maintaining the 

2008 8-hour ozone NAAQS in the 

Tennessee portion of the Area through 

2027 and a section 182(a)(1) base year 

emissions inventory into the Tennessee 

SIP for the Area. The maintenance plan 

establishes NOX and VOC MVEBs for 

2027 for the Tennessee portion of the 

Area and includes contingency 

measures to remedy any future 

violations of the 2008 8-hour ozone 

NAAQS and procedures for evaluation 

of potential violations. Additionally, 

EPA is notifying the public of the status 

of EPA’s adequacy determination for the 

newly-established NOX and VOC 

MVEBs for 2027 for the Tennessee 

portion of the Area. 

IX. Proposed Actions 

EPA is proposing to take four separate 

but related actions regarding the 

redesignation request and associated SIP 

revision for the Tennessee portion of the 

Memphis TN–MS–AR Area for the 2008 

8-hour ozone NAAQS. First, EPA is 

proposing to approve Tennessee’s 

section 182(a)(1) base year emissions 

inventory for the 2008 8-hour ozone 

standard for the Tennessee portion of 

the Area into the SIP. 

Second, EPA is proposing to 

determine that the Memphis, TN–MS– 

AR Area has attained the 2008 8-hour 

ozone NAAQS based on complete, 

quality-assured and certified monitoring 

data for the 2012–2014 monitoring 

period. Preliminary 2015 data in AQS 

indicates that the Area is continuing to 

attain the 2008 8-hour ozone NAAQS. 

Third, EPA is proposing to approve 

the maintenance plan for the Tennessee 

portion of the Area, including the NOX

and VOC MVEBs for 2027, into the 

Tennessee SIP (under CAA section 

175A). The maintenance plan 

demonstrates that the Area will 

continue to maintain the 2008 8-hour 

ozone NAAQS. 

Finally, EPA is proposing to approve 

Tennessee’s redesignation request for 

the 2008 8-hour ozone NAAQS for the 

Tennessee portion of the Area 

contingent upon approval of the 

182(a)(1) base year emissions inventory 

for the Tennessee portion of the Area. 

As part of today’s action, EPA is also 

describing the status of its adequacy 

determination for the NOX and VOC 

MVEBs for 2027 in accordance with 40 

CFR 93.118(f)(1). Within 24 months 

from the effective date of EPA’s 

adequacy determination for the MVEBs 

or the effective date for the final rule for 

this action, whichever is earlier, the 

transportation partners will need to 

demonstrate conformity to the new NOX

and VOC MVEBs pursuant to 40 CFR 

93.104(e)(3). 

If finalized, approval of the 

redesignation request would change the 

official designation of Shelby County, 

Tennessee in the Tennessee portion of 

the Memphis TN–MS–AR Area for the 

2008 8-hour ozone NAAQS from 

nonattainment to attainment, as found 

at 40 CFR part 81. 

X. Statutory and Executive Order 

Reviews 

Under the CAA, redesignation of an 

area to attainment and the 

accompanying approval of a 

maintenance plan under section 

107(d)(3)(E) are actions that affect the 

status of a geographical area and do not 

impose any additional regulatory 

requirements on sources beyond those 

imposed by state law. A redesignation to 

attainment does not in and of itself 

create any new requirements, but rather 

results in the applicability of 

requirements contained in the CAA for 

areas that have been redesignated to 

attainment. Moreover, the Administrator 

is required to approve a SIP submission 

that complies with the provisions of the 

Act and applicable Federal regulations. 

See 42 U.S.C. 7410(k); 40 CFR 52.02(a). 

Thus, in reviewing SIP submissions, 

EPA’s role is to approve state choices, 

provided that they meet the criteria of 

the CAA. Accordingly, these proposed 

actions merely propose to approve state 

law as meeting Federal requirements 

and do not impose additional 

requirements beyond those imposed by 

state law. For this reason, these 

proposed actions: 

• Are not a significant regulatory 

action subject to review by the Office of 

Management and Budget under 

Executive Orders 12866 (58 FR 51735, 

October 4, 1993) and 13563 (76 FR 3821, 

January 21, 2011); 

• Do not impose an information 

collection burden under the provisions 

of the Paperwork Reduction Act (44 

U.S.C. 3501 et seq.); 

• Are certified as not having a 

significant economic impact on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.); 

• Do 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); 

• Do not have Federalism 

implications as specified in Executive 

Order 13132 (64 FR 43255, August 10, 

1999); 

• Are not economically significant 

regulatory actions based on health or 

safety risks subject to Executive Order 

13045 (62 FR 19885, April 23, 1997); 

• Are not significant regulatory 

actions subject to Executive Order 

13211 (66 FR 28355, May 22, 2001); 

• Are not subject to requirements of 

section 12(d) of the National 

Technology Transfer and Advancement 

Act of 1995 (15 U.S.C. 272 note) because 

application of those requirements would 

be inconsistent with the CAA; and 

• Will not have disproportionate 

human health or environmental effects 

under Executive Order 12898 (59 FR 

7629, February 16, 1994). 

The SIP is not approved to apply on 

any Indian reservation land or in any 

other area where EPA or an Indian tribe 

has demonstrated that a tribe has 

jurisdiction. In those areas of Indian 

country, the rule does not have tribal 

implications as specified by Executive 

Order 13175 (65 FR 67249, November 9, 

2000), nor will it impose substantial 

direct costs on tribal governments or 

preempt tribal law. 

List of Subjects 

40 CFR Part 52 

Environmental protection, Air 

pollution control, Carbon monoxide, 

Incorporation by reference, 

Intergovernmental relations, Lead, 

Nitrogen dioxide, Ozone, Particulate 

matter, Reporting and recordkeeping 

requirements, Sulfur oxides, Volatile 

organic compounds. 


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22960 Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules 

40 CFR Part 81 

Environmental protection, Air 

pollution control, National parks, 

Wilderness areas. 

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

Dated: April 8, 2016. 

Heather McTeer Toney, 

Regional Administrator, Region 4. 

[FR Doc. 2016–08796 Filed 4–18–16; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

42 CFR Part 10 

RIN 0906–AA89 

340B Drug Pricing Program Ceiling 

Price and Manufacturer Civil Monetary 

Penalties Regulation; Reopening of 

Comment Period 

AGENCY: Health Resources and Services 

Administration (HRSA), HHS. 

ACTION: Notice; reopening of comment 

period. 

SUMMARY: This document reopens the 

comment period for the June 17, 2015, 

proposed rule entitled ‘‘340B Drug 

Pricing Program Ceiling Price and 

Manufacturer Civil Monetary Penalties 

Regulation.’’ The comment period for 

the proposed rule, which ended on 

August 17, 2015, is reopened for 30 

days. 

DATES: The comment period for the 

proposed rule published on June 17, 

2015 (80 FR 34583), is reopened and 

ends on May 19, 2016. 

ADDRESSES: In commenting, please refer 

to the Regulatory Information Number 

(RIN) 0906–AA89, by any of the 

following methods. Please submit your 

comments in only one of these ways to 

minimize the receipt of duplicate 

submissions. The first is the preferred 

method. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow 

instructions for submitting comments. 

This is the preferred method for the 

submission of comments. 

• Email: 340BCMPNPRM@hrsa.gov. 

Include 0906–AA89 in the subject line 

of the message. 

• Mail: Office of Pharmacy Affairs 

(OPA), Healthcare Systems Bureau 

(HSB), Health Resources and Services 

Administration (HRSA), 5600 Fishers 

Lane, Mail Stop 08W05A, Rockville, MD 

20857. 

All submitted comments will be 

available to the public in their entirety. 

FOR FURTHER INFORMATION CONTACT: 

CAPT Krista Pedley, Director, OPA, 

HSB, HRSA, 5600 Fishers Lane, Mail 

Stop 08W05A, Rockville, MD 20857, or 

by telephone at 301–594–4353. 

SUPPLEMENTARY INFORMATION: On June 

17, 2015, the Department of Health and 

Human Services (HHS) published a 

proposed rule in the Federal Register 

(80 FR 34583) entitled, ‘‘340B Drug 

Pricing Program Ceiling Price and 

Manufacturer Civil Monetary Penalties 

Regulation’’ that would set forth the 

calculation of the ceiling price and 

application of civil monetary penalties 

for section 340B of the Public Health 

Service Act (PHSA), which is referred to 

as the ‘‘340B Drug Pricing Program’’ or 

the ‘‘340B Program.’’ In light of the 

comments received, HHS is reopening 

the comment period for 30 days for the 

purpose of inviting public comments on 

several specific areas, summarized 

below. Comments may be submitted on 

any aspect of the proposed rule, not just 

those areas specifically addressed 

below. Commenters do not need to 

resubmit comments previously 

submitted, as all previous comments are 

currently under review and will be 

considered prior to the finalization of 

the proposed rule. 

Ceiling Price for a Covered Outpatient 

Drug Exception 

In the June 17, 2015, notice of 

proposed rulemaking (80 FR 34583), 

HHS proposed that when the 

calculation of the 340B ceiling price 

resulted in an amount less than $0.01, 

the ceiling price would be $0.01 per 

unit of measure (hereinafter, penny 

pricing). In the notice of proposed 

rulemaking (NPRM), we recognized that 

it was not reasonable for a manufacturer 

to set the ceiling price at $0.00 per unit 

of measure. HHS received a number of 

comments supporting and opposing the 

penny pricing proposal. 

Commenters suggested a number of 

alternatives to penny pricing, including: 

The federal ceiling price, the most 

recent positive ceiling price from 

previous quarters, and nominal sales 

price. Some commenters stated that the 

federal ceiling price, which is the basis 

for prices paid by certain federal 

government programs, would be a viable 

alternative. Other commenters suggested 

that charging a ceiling price from 

previous quarters in which the ceiling 

price was greater than $0.00 would be 

reasonable. Finally, several commenters 

suggested that nominal pricing, which is 

a term used in the Medicaid Drug 

Rebate Program, would be more 

appropriate. Other commenters 

suggested that manufacturers should be 

able to utilize any other reasonable 

alternative. 

Given these comments, HHS is 

considering whether any of these 

alternatives or other alternatives not 

raised by the commenters, alone or in 

combination, would be more 

appropriate than the penny pricing 

proposal and whether to revise the 

proposed regulatory text in 42 CFR 

10.10(b). As the NPRM did not indicate 

that alternatives to the penny pricing 

proposal would be considered, and 

given the number of comments on this 

issue, HHS is reopening the comment 

period specifically to invite comments 

on whether we should adopt an 

alternative policy to penny pricing. By 

reopening the comment period as to this 

specific issue, all parties will have an 

opportunity to express their views on 

penny pricing and other alternatives 

prior to finalization of the proposed 

rule. 

New Drug Price Estimation 

In the NPRM, HHS proposed that 

manufacturers estimate the ceiling price 

for a new covered outpatient drug as of 

the date the drug is first available for 

sale, and provide HRSA an estimated 

ceiling price for each of the first three 

quarters the drug is available for sale. 

HHS also proposed that, beginning with 

the fourth quarter the drug is available 

for sale, the manufacturer must 

calculate the ceiling price as described 

in proposed 42 CFR 10.10(a). Under the 

proposed rule, the actual ceiling price 

for the first three quarters must also be 

calculated and manufacturers would be 

required to provide a refund or credit to 

any covered entity which purchased the 

covered outpatient drug at a price 

greater than the calculated ceiling price. 

HHS proposed that any refunds or 

credits owed to a covered entity must be 

provided by the end of the fourth 

quarter. HHS received numerous 

comments supporting and opposing the 

various components of its proposal on 

new drug price estimation. 

Several commenters supported a 

specific methodology for calculating 

new drug prices, which included setting 

the price of the new covered outpatient 

drug as wholesale acquisition cost 

(WAC) minus the applicable rebate 

percentage (i.e., 23.1 percent for most 

single-source and innovator drugs, 17.1 

percent for clotting factors and drugs 

approved exclusively for pediatric 

indications, and 13 percent for generics 

and OTCs). Commenters argued that this 

price would eliminate the need to 

estimate the price for the first three 

quarters and would result in a 

reasonable ceiling price. We are seeking 

comment on this specific methodology 

for the estimation of a new covered 

outpatient drug pricing and at which 


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