[Federal Register Volume 70, Number 174 (Friday, September 9, 2005)]
[Proposed Rules]
[Pages 53605-53615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-17819]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[R05-OAR-2005-IN-0006; FRL-7965-7]


Determination of Attainment, Approval and Promulgation of 
Implementation Plans and Designation of Areas for Air Quality Planning 
Purposes; Indiana; Redesignation of the Evansville Area to Attainment 
of the 8-Hour Ozone Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On June 2, 2005, the State of Indiana, through the Indiana 
Department of Environmental Management (IDEM), submitted: A request for 
the EPA to redesignate the area of Evansville (Vanderburgh and Warrick 
Counties) from nonattainment to attainment of the 8-hour ozone National 
Ambient Air Quality Standard (NAAQS); and a request for EPA approval of 
an Indiana State Implementation Plan (SIP) revision containing a 10-
year maintenance plan for the Evansville area. EPA is proposing to 
approve the State's request to redesignate the Evansville area to 
attainment of the 8-hour ozone NAAQS. EPA's proposed approval of the 
redesignation request is based on the determination that the Evansville 
area and the State of Indiana have met the criteria for redesignation 
to attainment specified in the Clean Air Act (CAA), including the 
determination that the Evansville area has attained the 8-hour ozone 
standard. In conjunction with the proposed approval of the 
redesignation request for the Evansville area, EPA is proposing to 
approve the State's plan to maintain the attainment of the 8-hour ozone 
NAAQS through 2015 in this area as a revision to the Indiana SIP. EPA 
is also proposing to approve 2015 Volatile Organic Compounds (VOC) and 
Oxides of Nitrogen (NO<INF>X</INF>) Motor Vehicle Emissions Budgets 
(MVEBs), which are supported by and consistent with the 10-year 
maintenance plan for this area, for purposes of transportation 
conformity.

DATES: Comments must be received on or before October 11, 2005.

ADDRESSES: Submit comments, identified by Regional Material in EDocket 
(RME) ID No. R05-OAR-2005-IN-0006, by one of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
on-line instructions for submitting comments.
    Agency Web site: http://docket.epa.gov/rmepub/. RME, EPA's 
electronic public docket and comments system, is EPA's preferred method 
for receiving comments. Once in the system, select quick search, then 
key in the appropriate RME Docket identification number. Follow the on-
line instructions for submitting comments.
    E-mail: <a href="/cdn-cgi/l/email-protection#016c6e6e6f64782f6b6e696f416471602f666e77"><span class="__cf_email__" data-cfemail="48252727262d316622272026082d3829662f273e">[email protected]</span></a>.
    Fax: (312) 886-5824.
    Mail: You may send written comments to: John M. Mooney, Chief, 
Criteria Pollutant Section, (AR-18J), U.S. Environmental Protection 
Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604.
    Hand delivery: Deliver your comments to: John M. Mooney, Chief, 
Criteria Pollutant Section, (AR-18J), U.S. Environmental Protection 
Agency, Region 5, 77 West Jackson Boulevard, 18th floor, Chicago, 
Illinois 60604. Such deliveries are only accepted during the Regional 
Office's normal hours of operation. The Regional Office's official 
hours of business are Monday through Friday, 8:30 a.m. to 4:30 p.m. 
excluding Federal holidays.
    Instructions: Direct your comments to RME ID No. R05-OAR-2005-IN-
0006. EPA's policy is that all comments received will be included in 
the public docket without change, including any personal information 
provided, and may be made available online at http://docket.epa.gov/rmepub/, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute.
    Do not submit information that you consider to be CBI or otherwise 
protected through RME, regulations.gov, or e-mail. The EPA RME Web site 
and the Federal regulations.gov Web site are ``anonymous access'' 
systems, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA without going through RME or 
regulations.gov, your e-mail address will be automatically captured and 
included as part of the comment that is placed in the public docket and 
made available on the Internet. If you submit an electronic comment, 
EPA recommends that you include your name and other contact information 
in the body of your comment and with any disk or CD-ROM you submit. If 
EPA cannot read your comment due to technical difficulties and cannot 
contact you for clarification, EPA may not be able to consider your 
comment. Electronic files should avoid the use of special characters, 
any form of encryption, and be free of any defects or viruses.
    Docket: All documents in the electronic docket are listed in the 
RME index at http://docket.epa.gov/rmepub/. Although listed in the 
index, some information is not publicly available, i.e., CBI or other 
information whose disclosure is restricted by statute. Certain other 
material, such as copyrighted material, is not placed on the Internet 
and will be publicly available only in hard copy form. Publicly 
available docket materials are available either electronically in RME 
or in hard copy at Environmental Protection Agency, Region 5, Air and 
Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois 60604. 
We recommend that you telephone Edward Doty, Environmental Scientist, 
at (312) 886-6057, before visiting the Region 5 office. This Facility 
is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 
legal holidays.

FOR FURTHER INFORMATION CONTACT: Edward Doty, Environmental Scientist, 
Criteria Pollutant Section, Air Programs Branch (AR-18J), U.S. 
Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, 
Chicago, Illinois 60604, (312) 886-6057, <a href="/cdn-cgi/l/email-protection#b5d1dac1cc9bd0d1c2d4c7d1f5d0c5d49bd2dac3"><span class="__cf_email__" data-cfemail="690d061d10470c0d1e081b0d290c1908470e061f">[email protected]</span></a>.

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

I. EPA's Proposed Actions
    A. What Actions Is EPA Proposing to Take?
    B. Do These Actions Apply to Me?
    C. What Is the Background for These Proposed Actions?
II. What Are the Criteria for Redesignation to Attainment?
III. What Is the Effect of EPA's Actions?
IV. What Is EPA's Analysis of the State's Request?
V. Has Indiana Adopted Acceptable Motor Vehicle Emissions Budgets 
for the End of the 10-Year Maintenance Plan (for 2015) Which Can Be 
Used to Support Conformity Determinations?
    A. How Are the MVEBs Developed and What Are the MVEBs for the 
Evansville Area?
    B. What Is a Safety Margin?
    C. Are the MVEBs Approvable?
VI. Statutory and Executive Order Reviews

[[Page 53606]]

I. EPA's Proposed Actions

A. What Actions Is EPA Proposing to Take?

    EPA is proposing to take two related actions. First, EPA is 
proposing to determine that the Evansville, Indiana ozone nonattainment 
area (Vanderburgh and Warrick Counties) has attained the 8-hour ozone 
NAAQS, and that it has met the requirements for redesignation under 
section 107(d)(3)(E) of the CAA. EPA is, therefore, proposing to 
approve a request from the State of Indiana to change the designation 
of the Evansville area from nonattainment to attainment for the 8-hour 
ozone NAAQS.
    Second, EPA is proposing to approve Indiana's ozone maintenance 
plan, as a requested SIP revision, for this area. The maintenance plan 
is designed to keep the Evansville area in attainment of the 8-hour 
ozone NAAQS for the next 10 years, through 2015. As supported by and 
consistent with the ozone maintenance plan, EPA is proposing to approve 
the 2015 VOC and NO<INF>X</INF> MVEBs for the Evansville area for 
conformity purposes.

B. Do These Actions Apply to Me?

    These proposed actions pertain to the designation of the Evansville 
area for the 8-hour ozone NAAQS and to the emission controls in this 
area and in its upwind environs related to attainment and maintenance 
of the 8-hour ozone NAAQS. The emissions of concern are VOC and 
NO<INF>X</INF>. If you own or operate a VOC or NO<INF>X</INF> emissions 
source in the Evansville area or live in this area, this proposed rule 
may impact or apply to you. It may also impact you if you are involved 
in transportation planning or implementation of emission controls in 
the Evansville area.

C. What Is the Background for These Proposed Actions?

    EPA has determined that ground-level ozone is detrimental to human 
health. On July 18, 1997, the EPA promulgated an 8-hour ozone NAAQS (62 
FR 38856) of 0.08 parts per million parts of air (0.08 ppm) (80 parts 
per billion (ppb)).\1\ This 8-hour ozone standard replaces a prior 1-
hour ozone NAAQS, which had been promulgated on February 8, 1979 (44 FR 
8202), and which was revoked on June 15, 2005. Ground-level ozone is 
not emitted directly by sources. Rather, emitted NO<INF>X</INF> and VOC 
react in the presence of sunlight to form ground-level ozone along with 
other secondary compounds. NO<INF>X</INF> and VOC are referred to as 
``ozone precursors.''
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    \1\ This standard is violated in an area when any ozone monitor 
in the area (or in its impacted downwind environs) records 8-hour 
ozone concentrations with an average of the annual fourth-highest 
daily maximum 8-hour ozone concentrations over a three-year period 
equaling or exceeding 85 ppb.
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    The CAA required EPA to designate as nonattainment any area that 
violated the 8-hour ozone NAAQS based on the three most recent years of 
air quality data (2001-2003 ozone data were considered for the initial 
8-hour ozone designations). The Federal Register notice making these 
designations was signed on April 15, 2004, and was published on April 
30, 2004 (69 FR 23857).
    The CAA contains two sets of provisions--subpart 1 and subpart 2--
that address planning and emission control requirements for 
nonattainment areas. (Both are found in title I, part D of the CAA.) 
Subpart 1 contains general, less prescriptive requirements for 
nonattainment areas for any pollutant, including ozone, governed by any 
NAAQS, and applies to all nonattainment areas. Subpart 2 contains more 
specific requirements for certain ozone nonattainment areas, and 
applies to ozone nonattainment areas classified under section 181 of 
the CAA. Subpart 1 nonattainment areas, those areas not classified 
under section 181 of the CAA, are subject only to the provisions of 
subpart 1. Subpart 2 nonattainment areas, however, are subject to the 
provisions of subpart 2, as well as to provisions of subpart 1 (many of 
the requirements in subpart 1 are superseded by the more stringent 
requirements of subpart 2).
    In the April 30, 2004 designation rulemaking, EPA divided 8-hour 
ozone nonattainment areas into the categories of subpart 1 
nonattainment and subpart 2 nonattainment based on their 8-hour ozone 
design values (i.e., the three-year average annual fourth-highest daily 
maximum 8-hour ozone concentrations at the worst-case monitoring sites 
in the designated areas) and their 1-hour ozone design values (i.e., 
the fourth-highest daily maximum 1-hour ozone concentrations over the 
three-year period at the worst-case monitoring sites in the designated 
areas).\2\ 8-hour ozone nonattainment areas with 1-hour ozone design 
values equaling or exceeding 121 ppb were designated as classified 
nonattainment areas (as nonattainment areas required to meet the 
requirements of subpart 2 of the CAA). All other 8-hour nonattainment 
areas were designated as basic nonattainment areas (as ozone 
nonattainment areas required to meet the requirements of subpart 1 
only).
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    \2\ The 8-hour ozone design value and 1-hour ozone design value 
for each area were not necessarily recorded at the same monitoring 
site. The worst-case monitoring site for each concentration 
averaging time was considered for each area.
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    In the April 30, 2004 designation/classification rulemaking, the 
Evansville area was designated as nonattainment for the 8-hour ozone 
standard, and was identified as a subpart 1 nonattainment area.\3\ This 
designation was based on ozone data collected in the Evansville area 
during the 2001-2003 period.
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    \3\ Because this area was not violating the 1-hour ozone NAAQS, 
with a 1-hour ozone design value below the 121 ppb cutoff, at the 
time of the promulgation of the 8-hour ozone designations and 
classifications, EPA determined that this area should be addressed 
through the less prescriptive requirements of subpart 1 of the Clean 
Air Act rather than through the more prescriptive requirements of 
subpart 2 of the Clean Air Act.
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    On June 2, 2005, the State of Indiana requested redesignation of 
the Evansville area to attainment for the 8-hour ozone NAAQS based on 
ozone data collected during the 2002-2004 period. Today's proposed rule 
addresses this redesignation request.

II. What Are the Criteria for Redesignation to Attainment?

    The CAA provides the requirements for redesignating a nonattainment 
area to attainment. Specifically, section 107(d)(3)(E) allows for 
redesignation provided that: (1) The Administrator determines that the 
area has attained the applicable NAAQS; (2) the Administrator has fully 
approved an applicable SIP for the area under section 110(k) of the 
CAA; (3) the Administrator determines that the improvement in air 
quality is due to permanent and enforceable emissions reductions 
resulting from implementation of the applicable SIP, applicable Federal 
air pollution control regulations, and other permanent and enforceable 
emissions reductions; (4) the Administrator has fully approved a 
maintenance plan for the area as meeting the requirements of section 
175A of the CAA; and, (5) the state containing the area has met all 
requirements applicable to the area under section 110 and part D of the 
CAA.
    EPA provided guidance on redesignation in the General Preamble for 
the Implementation of Title I of the CAA Amendments of 1990 on April 
16, 1992 (57 FR 13498), and supplemented this guidance on April 28, 
1992 (57 FR 18070). EPA provided further guidance on processing 
redesignation requests in the following documents:

``Ozone and Carbon Monoxide Design Value Calculations,'' Memorandum 
from Bill Laxton, June 18, 1990;
``Maintenance Plans for Redesignation of Ozone and Carbon Monoxide

[[Page 53607]]

Nonattainment Areas,'' Memorandum from G.T. Helms, Chief, Ozone/Carbon 
Monoxide Programs Branch, April 30, 1992;
``Contingency Measures for Ozone and Carbon Monoxide (CO) 
Redesignations,'' Memorandum from G.T. Helms, Chief, Ozone/Carbon 
Monoxide Programs Branch, June 1, 1992;
``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992;
``State Implementation Plan (SIP) Actions Submitted in Response to 
Clean Air Act (Act) Deadlines,'' Memorandum from John Calcagni, 
Director, Air Quality Management Division, October 28, 1992;
``Technical Support Documents (TSD's) for Redesignation of Ozone and 
Carbon Monoxide Nonattainment Areas,'' Memorandum from G.T. Helms, 
Chief, Ozone/Carbon Monoxide Programs Branch, August 17, 1993;
``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;
``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;
``Part D New Soure 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,
``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.

III. What Is the Effect of EPA's Actions?

    Approval of this redesignation request would change the official 
designation of the Evansville area for the 8-hour ozone NAAQS found at 
40 CFR part 81. It would also incorporate into the Indiana SIP a plan 
for maintaining the 8-hour ozone NAAQS in the area through 2015. The 
maintenance plan includes contingency measures to remedy possible 
future violations of the 8-hour ozone NAAQS, and establishes MVEB's of 
4.20 tons per day (tpd) for VOC, and 5.40 tpd for NO<INF>X</INF>.

IV. What Is EPA's Analysis of the State's Request?

    EPA is proposing to: (1) Determine that the Evansville area has 
attained the 8-hour ozone standard and approve the redesignation of the 
Evansville area to attainment of the 8-hour ozone NAAQS; and, (2) 
approve the ozone maintenance plan for this area. The bases for our 
proposed determination and approvals are as follows:

1. The Evansville Area Has Attained the 8-Hour Ozone NAAQS

    EPA is proposing to determine that the Evansville area has attained 
the 8-hour ozone NAAQS. For ozone, an area may be considered to be 
attaining the 8-hour ozone NAAQS if there are no violations of the 
NAAQS, as determined in accordance with 40 CFR 50.10 and Appendix I, 
based on the most recent three complete, consecutive calendar years of 
quality-assured air quality monitoring data at any monitoring site in 
the area. To attain this standard, the average of the annual fourth-
high daily maximum 8-hour average ozone concentrations measured at each 
monitor (the monitoring site's ozone design value) within the area (or 
in its downwind environs) over the 3-year period must not exceed the 
ozone standard. Based on the rounding convention described in 40 CFR 
part 50, appendix I, the 8-hour ozone standard is attained if the 
area's ozone design value is 0.084 ppm or lower. The data must be 
collected and quality-assured in accordance with 40 CFR part 58, and 
recorded in EPA's Aerometric Information Retrieval System (AIRS). The 
ozone monitors generally should have remained at the same locations for 
the duration of the monitoring period required for demonstrating 
attainment (for three years or more).
    As part of the June 2, 2005 ozone redesignation request, IDEM 
submitted summarized ozone monitoring data indicating the top four 
daily maximum 8-hour ozone concentrations for each monitoring site for 
each year during the 2002-2004 period. These summarized worst-case 
ozone concentrations are part of the quality-assured ozone data 
collected in the Evansville area. These data have been entered into 
EPA's AIRS. The fourth high 8-hour daily maximum concentrations, along 
with their three-year averages are summarized in Table 1.

                                      Table 1.--Fourth-High 8-Hour Ozone Concentrations in Parts Per Billion (PPB)
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                                                                                                                                              Average
                     County                                  Monitoring site                   2002            2003            2004         fourth-high
                                                                                                                                           concentration
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Vanderburgh....................................  Evansville.............................              95              81              72              82
Vanderburgh....................................  Inglefield.............................              86              75              57              73
Warrick........................................  Yankeetown.............................              94              82              74              83
Warrick........................................  Boonville..............................              91              76              72              79
Warrick........................................  Lynville...............................              90              78              64              77
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    These data show that the ozone design values (averaged fourth-high 
daily maximum 8-hour concentrations) for the monitoring sites are all 
below the 84 ppb ozone standard violation cut-off. These data support 
the conclusion that the Evansville area did not experience a monitored 
violation of the 8-hour ozone standard during the 2002-2004 period. 
Preliminary data through July of the 2005 ozone season show that the 
area continues to attain the 8-hour ozone standard.
    As discussed below with respect to the ozone maintenance plan, 
Indiana has committed to continue ozone monitoring in this area. IDEM 
commits to consult with the EPA prior to making any changes to the 
existing monitoring network.
    EPA believes that the data submitted by Indiana provide an adequate 
demonstration that the Evansville area has attained the 8-hour ozone 
NAAQS. Therefore, we propose to find that the Evansville area has 
attained the 8-hour ozone standard.

[[Page 53608]]

2. The Evansville Area Has Met All Applicable Requirements Under 
Section 110 and Part D of the CAA and the Area Has a Fully Approved SIP 
Under Section 110(k) of the CAA

    EPA has determined that Indiana has met all currently applicable 
SIP requirements for the Evansville area under section 110 of the CAA 
(general SIP requirements). EPA has also determined that the Indiana 
SIP meets currently applicable SIP requirements under part D of title I 
of the CAA (requirements specific to subpart 1 nonattainment areas). 
See section 107(d)(3)(E)(v) of the CAA. In addition, EPA has determined 
that the SIP is fully approved with respect to all applicable 
requirements. See section 107(d)(3)(E)(ii) of the CAA. In making these 
determinations, EPA ascertained what requirements are applicable to the 
area, and determined that the applicable portions of the SIP meeting 
these requirements are fully approved under section 110(k) of the CAA. 
We note that SIPs must be fully approved only with respect to currently 
applicable requirements of the CAA.
    a. The Evansville area has met all applicable requirements under 
section 110 and part D of the CAA. The September 4, 1992 Calcagni 
memorandum (see ``Procedures for Procedures for Processing Requests to 
Redesignate Areas to Attainment,'' Memorandum from John Calcagni, 
Director, Air Quality Management Division, September 4, 1992) describes 
EPA's interpretation of section 107(d)(3)(E) of the CAA. Under this 
interpretation, to qualify for redesignation of an area to attainment, 
the state and the area must meet the relevant CAA requirements that 
come due prior to the state's submittal of a complete redesignation 
request for the area. See also the September 17, 1993 Shapiro 
memorandum and 66 FR 12459, 12465-12466 (March 7, 1995) (redesignation 
of Detroit-Ann Arbor, Michigan to attainment of the 1-hour ozone 
NAAQS). Applicable requirements of the CAA that come due subsequent to 
the state's submittal of a complete redesignation request remain 
applicable until a redesignation to attainment is approved, but are not 
required as a prerequisite to redesignation. See section 175A(c) of the 
CAA. Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004). See also 68 FR 
25424, 25427 (May 12, 2003) (redesignation of the St. Louis/East St. 
Louis area to attainment of the 1-hour ozone NAAQS).
    General SIP requirements: Section 110(a) of title I of the CAA 
contains the general requirements for a SIP, which include: enforceable 
emission limitations and other control measures, means, or techniques; 
provisions for the establishment and operation of appropriate devices 
necessary to collect data on ambient air quality; and programs to 
enforce the emission limitations. General SIP elements and requirements 
are delineated in section 110(a)(2) of title I, part A of the CAA. 
These requirements and SIP elements include, but are not limited to, 
the following: (a) Submittal of a SIP that has been adopted by the 
state after reasonable public notice and a hearing; (b) provisions for 
establishment and operation of appropriate procedures needed to monitor 
ambient air quality; (c) implementation of a source permit program; (d) 
provisions for the implementation of part C requirements (Prevention of 
Significant Deterioration (PSD)) and part D requirements (New Source 
Review (NSR)) for new sources or major source modifications; (e) 
criteria for stationary source emission control measures, monitoring, 
and reporting; (f) provisions for air quality modeling; and (g) 
provisions for public and local agency participation.
    SIP requirements and SIP elements are discussed in the following 
EPA documents: ``Procedures for Processing Requests to Redesignate 
Areas to Attainment,'' Memorandum from John Calcagni, Director, Air 
Quality Management Division, September 4, 1992; ``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; and ``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, September 17, 
1993. See also other guidance documents listed above.
    Section 110(a)(2)(D) of the CAA 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 
transport of air pollutants (NO<INF>X</INF> SIP call, Clean Air 
Interstate Rule (CAIR)). EPA has also found, generally, that states 
have not submitted SIPs under section 110(a)(1) to meet the interstate 
transport requirements of section 110(a)(2)(D)(i) (70 FR 21147, April 
25, 2005). However, 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 classification 
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.
    We believe that these requirements should not be construed to be 
applicable requirements for purposes of redesignation. Further, we 
believe that the other section 110 elements described above that are 
not connected with nonattainment plan submissions and not linked with 
an area's attainment status are also not applicable requirements for 
purposes of redesignation. A state remains subject to these 
requirements after an area is redesignated to attainment. We conclude 
that only the section 110 and part D requirements which are linked with 
a particular area's designation and classification are the relevant 
measures in evaluating a redesignation request. This approach is 
consistent with EPA's existing policy on applicability of conformity 
and oxygenated fuels requirements for redesignation purposes, 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, 1997); Cleveland-Akron-Loraine, 
Ohio, final rulemaking (61 FR 20458, May 7, 1996); and Tampa, Florida, 
final rulemaking (60 FR 62748, December 7, 1995). See also the 
discussion on this issue in the Cincinnati ozone redesignation (65 FR 
37890, June 19, 2000), and the Pittsburgh ozone redesignation (66 FR 
50399, October 19, 2001). Finally, Indiana's submission under the CAIR 
rule is not due until September 2006.
    We believe that section 110 elements not linked to the area's 
nonattainment status are not applicable for purposes of redesignation. 
Nonetheless, we also note that EPA has previously approved provisions 
in the Indiana SIP addressing section 110 elements under the 1-hour 
standard. See 40 CFR part 52, subpart P. We believe that the section 
110 SIP approved for the 1-hour standard may likely be sufficient to 
meet requirements under the 8-hour ozone standard, as well. EPA is in 
the process of further evaluating this question, and will, in the 
future if necessary, announce whether any additional section 110 SIP

[[Page 53609]]

provisions are needed for the Evansville area under the 8-hour ozone 
standard.
    Part D SIP requirements. EPA has determined that the Indiana SIP 
meets applicable SIP requirements under part D of the CAA since no such 
requirements became due for the 8-hour ozone standard prior to 
submission of the area's redesignation request. Subpart 1 of part D, 
found in sections 172-176 of the CAA, sets forth the basic 
nonattainment area plan requirements applicable to all nonattainment 
areas. Because the Evansville area is a subpart 1 8-hour ozone 
nonattainment area and is not classified under subpart 2 of part D of 
the CAA for the 8-hour ozone standard, subpart 2 of part D of the CAA 
does not apply to this area.
    Section 172(c) requirements. For purposes of evaluating this ozone 
redesignation request, the applicable part D, subpart 1 SIP 
requirements for the Evansville area are contained in section 172 of 
the CAA. A thorough discussion of the requirements of section 172 can 
be found in the General Preamble for Implementation of Title I (57 FR 
13498, April 16, 1992).
    No requirements under part D became due prior to submission of the 
redesignation request, and, therefore, none is applicable to the area 
for purposes of redesignation. For example, the requirement for an 
ozone attainment demonstration to meet the requirement of section 
172(c)(1) is not yet applicable, nor are the requirements for 
Reasonably Available Control Measures (RACM) and Reasonably Available 
Control Technology (RACT) (section 172(c)(1)), Reasonable Further 
Progress (RFP) (section 172(c)(2)), and contingency measures (section 
172(c)(9)).
    Since the State of Indiana has submitted a complete ozone 
redesignation request for the Evansville area prior to the deadline for 
any submissions, we are proposing to determine that the part D 
requirements do not apply to the Evansville area for purposes of 
redesignation.
    Section 176 conformity requirements. Section 176(c) of the CAA 
requires states to establish criteria and procedures to ensure that 
Federally-supported or funded activities, including highway projects, 
conform to the air planning goals in the applicable SIP. The 
requirement to determine conformity applies to transportation plans, 
programs and projects developed, funded or approved under Title 23 
U.S.C. and the Federal Transit Act (transportation conformity) as well 
as to all other Federally-supported or funded projects (general 
conformity). State conformity SIP revisions must be consistent with 
Federal conformity regulations that the CAA required the EPA to 
promulgate.
    In addition to the fact that part D requirements did not become due 
prior to Indiana's submission of the redesignation request and, 
therefore, are not applicable, EPA believes that it is reasonable to 
interpret the conformity requirements as not applying for purposes of 
evaluating the ozone redesignation request under section 107(d) of the 
CAA because state conformity rules are still required after 
redesignation of an area to attainment of a NAAQS and Federal 
conformity rules apply where state rules have not been approved. See 
Wall v. EPA, 265 F.3d 426 (6th Cir. 2001). See also 60 FR 62748 
(December 7, 1995) (Tampa, Florida).
    EPA has also determined that areas being redesignated need not 
comply with the requirement that a NSR program be approved prior to 
redesignation, provided that the area demonstrates maintenance of the 
standard without part D NSR, since 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.'' 
Indiana has demonstrated that the area will be able to maintain the 
standard without part D NSR in effect, and therefore, EPA concludes 
that the State need not have a fully approved part D NSR program prior 
to approval of the redesignation request. The State's PSD program will 
become effective in the Evansville area upon redesignation to 
attainment. See rulemakings for Detroit, Michigan (60 FR 12467-12468, 
March 7, 1995); Cleveland-Akron-Lorain, Ohio (61 FR 20458, 20469-20470, 
May 7, 1996); Louisville, Kentucky (66 FR 53665, October 23, 2001); 
Grand Rapids, Michigan (61 FR 31834-31837, June 21, 1996). Thus, the 
area has satisfied all applicable requirements under section 110 and 
part D of the CAA.
    b. The Evansville area has a fully approved applicable SIP under 
section 110(k) of the CAA. EPA has fully approved the Indiana SIP for 
the Evansville area under section 110(k) of the CAA for all applicable 
requirements. EPA may rely on prior SIP approvals in approving a 
redesignation request (See the September 4, 1992 John Calcagni 
memorandum, page 3, Southwestern Pennsylvania Growth Alliance v. 
Browner, 144 F.3d 984, 989-990 (6th Cir. 1998), Wall v. EPA, 265 F.3d 
426 (6th Cir. 2001)) plus any additional measures it may approve in 
conjunction with a redesignation action. See 68 FR 25426 (May 12, 
2003). Since the passage of the CAA of 1970, Indiana has adopted and 
submitted, and EPA has fully approved, provisions addressing the 
various required SIP elements applicable to the Evansville area for 
purposes of redesignation. No Evansville area SIP provisions are 
currently disapproved, conditionally approved, or partially approved. 
As indicated above, EPA believes that the section 110 elements not 
connected with nonattainment plan submissions and not linked to the 
area's nonattainment status are not applicable requirements for 
purposes of redesignation. EPA has also noted that it may well conclude 
that the section 110 SIP submission approved under the 1-hour standard 
will be adequate for purposes of the 8-hour standard. EPA also believes 
that since the part D requirements did not become due prior to 
submission of the redesignation request, they also are, therefore, not 
applicable requirements for purposes of redesignation.

3. The Air Quality Improvement in the Evansville Area Is Due to 
Permanent and Enforceable Reductions in Emissions From Implementation 
of the SIP and Applicable Federal Air Pollution Control Regulations and 
Other Permanent and Enforceable Emission Reductions

    EPA believes that the State of Indiana has demonstrated that the 
observed air quality improvement in the Evansville area is due to 
permanent and enforceable reductions in emissions resulting from 
implementation of the SIP, Federal measures, and other state-adopted 
measures.
    In making this demonstration, the State has documented the changes 
in VOC and NO<INF>X</INF> emissions for both the Evansville ozone 
nonattainment area and for five additional counties \4\ (Dubois, 
Gibson, Pike, Posey, and Spencer) in the Southwestern Indiana

[[Page 53610]]

area between 1996, when the Evansville area was monitored with a 
violation of the 8-hour ozone NAAQS, and 2002, one of the years during 
the three-year period when the Evansville area monitored attainment of 
the 8-hour ozone NAAQS. The VOC emissions and NO<INF>X</INF> emissions 
for the Southwestern Indiana area (with the Evansville area emissions 
given as a sub-portion of the summarized emissions) are given in Tables 
2 and 3. The VOC and NO<INF>X</INF> emissions for the Evansville ozone 
nonattainment area and for the remainder of the Southwestern Indiana 
area have shown significant downward trends between 1996 and 2002. IDEM 
notes that the emissions in this area are decreasing substantially in 
response to national emission reduction programs affecting all Electric 
Generating Units (EGUs), including the acid rain control program and 
the NO<INF>X</INF> SIP Call. A significant number of EGUs exist in the 
Southwestern Indiana area. Therefore, the national emission control 
requirements for the EGUs have likely had a significant impact on the 
NO<INF>X</INF> emissions in this area and on the ozone concentrations 
monitored in the Evansville area. To some extent, these emission 
controls have also resulted in reductions in VOC emissions from these 
sources.
---------------------------------------------------------------------------

    \4\ IDEM documented the VOC and NO<INF>X</INF> emissions in 
these five counties at the request of the EPA. Although no analyses 
or modeling exist demonstrating that these specific emissions 
significantly contributed to the peak ozone levels in the Evansville 
area, it is recognized, based on available ozone analyses and 
modeling for the Midwest, that regional emissions outside of the 
Evansville area are likely to have significantly contributed to the 
peak ozone concentrations in the Evansville area. The documentation 
of the VOC and NO<INF>X</INF> emissions for these neighboring 
counties characterizes the relative magnitude of regional versus 
local emissions, and, through emission projections (documented in 
subsequent tables in this proposed rule), the directionality of 
regional emissions that may also impact future ozone concentrations.
    \5\ See Footnote 4 above. The most relevant emissions in this 
table and in subsequent emissions tables are the VOC and 
NO<INF>X</INF> emissions in Vanderburgh and Warrick Counties. The 
emissions in the remaining counties serve only to demonstrate the 
relative magnitude of regional versus local emissions and the 
directionality over time of regional emissions in general that, 
along with local emissions, impact the Evansville area's peak ozone 
levels.

   Table 2.--VOC Emissions in the Evansville and Southwestern Indiana
               Areas--1996-2002 in Tons Per Summer Day \5\
------------------------------------------------------------------------
               County                    1996        1999        2002
------------------------------------------------------------------------
Vanderburgh/Warrick.................       55.54       58.28       41.13
Dubois..............................       24.84       23.23       18.83
Gibson..............................       11.49       11.57       13.29
Pike................................        4.36        4.22        4.66
Posey...............................       14.87       13.80       10.57
Spencer.............................        7.38        8.68        7.39
    Southwest Indiana Total.........      118.48      119.77       95.87
------------------------------------------------------------------------


   Table 3.--NOX Emissions in the Evansville and Southwestern Indiana
                 Areas--1996-2002 in Tons Per Summer Day
------------------------------------------------------------------------
               County                    1996        1999        2002
------------------------------------------------------------------------
Vanderburgh/Warrick.................      119.72      130.40       95.42
Dubois..............................       19.21       17.02        8.32
Gibson..............................      143.52      163.00      140.12
Pike................................       81.73       66.08       64.65
Posey...............................       36.84       48.77       38.43
Spencer.............................      102.75      116.44       99.27
                                     -------------
    Southwest Indiana Total.........      503.78      541.71      446.21
------------------------------------------------------------------------

    Other emission controls have also been implemented in Southwestern 
Indiana. IDEM notes that statewide VOC RACT rules were adopted for a 
limited set of existing sources in the mid-1990s, and have been 
implemented by new sources located in Indiana since that time. The 
following Indiana VOC RACT rules have been adopted and implemented on a 
statewide basis: 326 Indiana Administrative Code (IAC) 8-2 (Surface 
Coating Emission Limitations); 326 IAC 8-3 (Organic Solvent Degreasing 
Operations); 326 IAC 8-4 (Petroleum Sources); 326 IAC 8-5 
(Miscellaneous Operations); 326 IAC 8-6 (Organic Solvent Emission 
Limitations); and, 326 IAC 8-10 (Auto Body Refinishing). Compliance 
with these rules have reduced VOC emissions in the Southwestern Indiana 
area.
    Since the Evansville area was previously classified as a marginal 
nonattainment area for the 1-hour ozone standard, and was not required 
to demonstrate attainment of the 1-hour ozone standard, no ozone 
precursor emission controls were specifically required for the 
Evansville area. Therefore, the statewide and national emission control 
requirements have provided the majority of the emission reductions in 
this area.
    Besides the statewide VOC RACT rules and national NO<INF>X</INF> 
emission control requirements, other Federal emission reduction 
requirements have resulted in decreased ozone precursor emissions in 
the Southwestern Indiana area and/or will produce future emission 
reductions leading to maintenance of the ozone standard in the 
Evansville area. These emission reduction requirements include the 
following:
    Tier 2 Emission Standards for Vehicles and Gasoline Sulfur 
Standards. These emission control requirements result in lower 
emissions from new cars and light duty trucks, including sport utility 
vehicles. The Federal rules are being phased in between 2004 and 2009. 
Mobile source NO<INF>X</INF> emissions are expected to be decreased by 
65 to 90 percent, depending on vehicle type. Mobile source VOC 
emissions are expected to be decreased by 12 to 18 percent depending on 
vehicle type.
    Heavy-Duty Diesel Engines. The Heavy-Duty Diesel Engine rule 
applies to new heavy-duty gasoline and diesel trucks and buses, and is 
expected to reduce NO<INF>X</INF> emissions from new vehicles by up to 
40 percent. The rule is being phased in from 2004 through 2007.
    Non-Road Diesel Rule. This rule generally applies to new stationary 
diesel engines used in certain industries, including construction, 
agriculture, and mining. In addition to affecting engine design, this 
rule includes requirements for cleaner fuels.

[[Page 53611]]

It is expected to reduce NO<INF>X</INF> emissions from these engines by 
up to 90 percent, and to significantly reduce particulate matter and 
sulfur emissions from these engines. This rule will limit emissions 
from new engines beginning in 2008. The rule has not impacted current 
emissions from these engines, but is expected to have a significant 
impact during the maintenance period for the Evansville area.
    IDEM notes that some emission reductions have resulted from 
permanent source closures in the Evansville area, and that these 
emission reductions have contributed to the downward trend in emissions 
in the Evansville area and toward attainment of the 8-hour ozone 
standard. In its June 2, 2005 submittal, IDEM has listed the source 
closures that have occurred between 1996 and 2002. IDEM confirms that 
the emissions reductions resulting from the source closures are 
permanent and will be maintained in the future. To prevent these 
emission reductions from being totally consumed by unconstrained source 
growth, IDEM states that any reopening of the closed facilities will 
require review under Indiana's new source review program after the 
redesignation of the Evansville area to attainment of the 8-hour ozone 
NAAQS and the implementation of appropriate emission controls for new 
sources.
    Indiana commits to maintain all existing emission control measures 
that affect the Evansville area after this area is redesignated to 
attainment. All changes in existing rules affecting the Evansville area 
and new rules subsequently needed for continued maintenance of the 8-
hour ozone NAAQS in the Evansville area will be submitted to the EPA 
for approval as SIP revisions.

4. The Evansville Area Has a Fully Approvable Ozone Maintenance Plan 
Pursuant to Section 175A of the CAA

    In conjunction with its request to redesignate the Evansville area 
to attainment of the ozone NAAQS, Indiana submitted a SIP revision to 
provide for maintenance of the 8-hour ozone NAAQS in the Evansville 
area for at least 10 years after the redesignation of this area to 
attainment of the NAAQS.
a. What Is Required in an Ozone Maintenance Plan?
    Section 175A of the CAA sets forth the required elements of 
maintenance plans for areas seeking redesignation from nonattainment to 
attainment. Under section 175A, a maintenance plan must demonstrate 
continued attainment of the applicable NAAQS for at least ten years 
after the Administrator approves the 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 ten years following the initial ten-year maintenance 
period. To address the possibility of future NAAQS violations, the 8-
hour ozone maintenance plan must contain such contingency measures, 
with a schedule for implementation, as EPA deems necessary, to assure 
prompt correction of any future 8-hour ozone standard violations. The 
September 4, 1992 John Calcagni memorandum provides additional guidance 
on the content of maintenance plans. An ozone maintenance plan should, 
at minimum, address the following items: The attainment VOC and 
NO<INF>X</INF> emissions inventories; a maintenance demonstration 
showing maintenance for the first ten years of the maintenance period; 
a commitment to maintain the existing monitoring network; factors and 
procedures to be used for verification of continued attainment; and, a 
contingency plan to prevent and/or correct any future violation of the 
NAAQS.
b. Attainment Emissions Inventories
    IDEM prepared comprehensive VOC and NO<INF>X</INF> emissions 
inventories for Vanderburgh and Warrick Counties, including point 
(significant stationary sources), area (smaller stationary sources and 
widely-distributed sources), mobile on-road, and mobile non-road 
sources for a base year/attainment year of 2002. IDEM has documented 
the VOC and NO<INF>X</INF> emissions by major source categories for 
Vanderburgh and Warrick Counties, along with the VOC and NO<INF>X</INF> 
emissions for other counties in the Southwestern Indiana area for 1996, 
1999, and 2002, which were years EPA required states to prepare and 
submit periodic emission inventory updates.
    To develop the base year emissions inventories, IDEM used the 
following approaches and sources of data:
    Area Sources--Area source VOC and NO<INF>X</INF> emissions were 
taken from the Indiana 2002 periodic emissions inventory, which was 
previously submitted to the EPA. The area source emission estimates 
were derived using United States Department of Commerce Bureau of 
Economic Analysis (BEA) growth factors to project emissions derived for 
1996 and 1999. The area source estimates also involved the use of 
current local source surrogate data, including area populations and 
employment data by source type.
    Mobile On-Road Sources--Mobile source emissions were calculated 
using MOBILE6 emission factors. Traffic data (vehicle miles traveled, 
vehicle speeds, and vehicle type and age distributions) for 2002 were 
calculated using the travel demand model and post-processor provided by 
the Evansville Urban Transportation Study (EUTS). IDEM has provided 
detailed data summaries to document the calculation of mobile on-road 
VOC and NO<INF>X</INF> emissions for 2002, as well as for the 
projection years of 2010 and 2015 (further discussed below).
    Point Source Emissions--2002 point source emissions were compiled 
from IDEM's 2002 annual emissions statement database and the 2002 EPA 
Air Markets acid rain emissions inventory database.
    Mobile Non-Road Emissions--Non-road mobile source emissions were 
generated by the EPA and documented in the 2002 National Emissions 
Inventory (NEI). In addition to the data taken from the NEI, IDEM also 
considered emissions for commercial marine vessels and railroads, 
obtained from the Lake Michigan Air Directors Consortium (LADCO). The 
NEI emissions data for recreational motorboats and construction 
equipment were significantly revised based on local data. The NEI 
emissions from recreational motorboats were revised to account for 
local motorboat population data and local spatial surrogates. The NEI 
construction equipment emissions were reviewed and updated based on 
surveys completed in the Midwest. IDEM also updated the temporal 
allocation of agricultural emissions.
    The 2002 attainment year VOC and NO<INF>X</INF> emissions for 
Vanderburgh and Warrick Counties are summarized along with the 2010 and 
2015 projected emissions for these Counties in Tables 4 below, which 
covers the demonstration of maintenance for this area. It is our 
conclusion that the State has adequately derived and documented the 
attainment year VOC and NO<INF>X</INF> emissions for this area.
c. Demonstration of Maintenance
    As part of its June 2, 2005 ozone redesignation request submittal, 
IDEM included a requested revision of the SIP to include a 10-year 
ozone maintenance plan as required by section 175A of the CAA. This 
demonstration shows maintenance of the 8-hour ozone NAAQS by assuring 
that current and future emissions of VOC and NO<INF>X</INF> remain at 
or below the attainment year

[[Page 53612]]

emission levels.\6\ Note that a maintenance demonstration need not be 
based on modeling. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001), 
Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004). See also 66 FR 53094, 
53099-53100 (October 19, 2001) and 68 FR 25430-25432 (May 12, 2003).
---------------------------------------------------------------------------

    \6\ The attainment year can be any of the three consecutive 
years where the area has clean air quality data (2002, 2003, or 2004 
for the Evansville area). 2002 is the recommended base year for 
ozone attainment and rate-of-progress demonstrations, as discussed 
in a November 18, 2002 memorandum, ``2002 Base Year Emission 
Inventory SIP Planning: 8-hr Ozone, PM<INF>2.5</INF> and Regional 
Haze Programs,'' from Lydia N. Wegman, Director, Air Quality 
Strategies and Standards Division. As noted here, Indiana chose to 
use 2002 as the attainment year because the State was already 
preparing emissions for this year to prepare the base year emissions 
inventory.
---------------------------------------------------------------------------

    Table 4 specifies the VOC and NO<INF>X</INF> emissions for 
Venderburgh and Warrick Counties combined for 2002, 2010, and 2015. 
IDEM chose 2010 as an interim year in the 10-year maintenance 
demonstration period to demonstrate that the VOC and NO<INF>X</INF> 
emissions are not projected to increase above the attainment levels in 
the middle of the 10-year period.

 Table 4.--Attainment Year (2002) and Projected VOC and NOX Emissions in Vanderburgh and Warrick Counties (TPSD)
----------------------------------------------------------------------------------------------------------------
                                                          VOC                                 NOX
              Source sector              -----------------------------------------------------------------------
                                             2002        2010        2015        2002        2010        2015
----------------------------------------------------------------------------------------------------------------
Point...................................        5.16        6.77        8.09       70.19       30.18       31.43
Area....................................       18.60       21.36       23.46        2.95        3.20        3.27
On-Road.................................       11.21        6.02        4.12       16.40        9.30        5.01
Non-Road................................        6.16        4.42        3.80        5.88        4.52        3.23
                                         -------------
    Total...............................       41.13       38.56       39.47       95.42       47.19       42.94
----------------------------------------------------------------------------------------------------------------

    IDEM also considered regional emissions from other counties in the 
Southwestern Indiana area. IDEM concluded, based on analyses by 
LADCO,\7\ that regional NO<INF>X</INF> emissions changes may 
significantly impact the ozone levels in the Evansville area, whereas 
regional VOC emissions outside of the nonattainment area were less of a 
concern. IDEM determined the attainment year and projected year 
NO<INF>X</INF> emissions for Dubois, Gibson, Pike, Posey, and Spencer 
Counties, which are the other counties in the Southwestern Indiana area 
as noted above. Table 5 summarizes the NO<INF>X</INF> emissions totals 
for these counties by major source sector. It can be seen that the 
NO<INF>X</INF> emissions totals in these counties are projected to 
decrease after 2002, which indicates that the transport of 
NO<INF>X</INF> into the Evansville area will also decrease during the 
10-year maintenance period.
---------------------------------------------------------------------------

    \7\ Analyses conducted by LADCO to support the development of 1-
hour ozone attainment demonstrations showed that peak ozone 
concentrations in the Chicago and Milwaukee areas were sensitive to 
changes in local VOC emissions and to changes in regional 
NO<INF>X</INF> emissions outside of the urban areas. Changes in 
regional VOC emissions upwind of these urban areas produced minimal 
changes in the peak ozone concentrations in these urban areas. 
Modeling for the 8-hour ozone standard being conducted by LADCO and 
its member states suggests that the same principle also applies in 
other major urban areas in the region.

Table 5.--Attainment Year and Projected NOX Emissions in Counties in the
                 Vicinity of the Evansville Area (TPSD)
------------------------------------------------------------------------
                                                      NOX
            Source sector            -----------------------------------
                                         2002        2010        2015
------------------------------------------------------------------------
Point...............................      318.03      134.22      134.71
Area................................        2.37        2.53        2.61
On-Road Mobile......................       18.63       10.68        6.70
Non-Road Mobile.....................       11.76        9.72        7.73
                                     -------------
    Total...........................      350.79      157.15      151.76
------------------------------------------------------------------------

    The emission projections show that the ozone precursor emissions in 
the Evansville area in addition to the NO<INF>X</INF> emissions in 
other counties in its vicinity are not expected to exceed the levels of 
the 2002 attainment year during the 10-year maintenance period. The 
decreases in local and regional NO<INF>X</INF> emissions indicate that 
peak ozone levels in the Evansville area may actually be expected to 
further decline during the 10-year maintenance period.
    IDEM has documented the procedures used to project emissions. On-
road mobile source emissions were projected using the MOBILE6 emission 
factor model and projected traffic data obtained from the Evansville 
Urban Transportation Study's Travel Demand Model, the same procedure 
used to determine the attainment year on-road mobile source emissions. 
Emissions for the other major source sectors were determined using 
source activity/growth data provided by LADCO. LADCO has developed 
source growth and emission control data for sources in the upper 
Midwest for use in 8-hour ozone and fine particulate (PM<INF>2.5</INF>) 
modeling analyses. Therefore, IDEM's emission projections for the 
Evansville area and its vicinity are consistent with the planning 
analyses being conducted to attain the 8-hour ozone and 
PM<INF>2.5</INF> standards in the upper Midwest urban areas and region. 
It should also be noted that the NO<INF>X</INF> emission estimates are 
also consistent with the Indiana state-wide NO<INF>X</INF> emission 
budget established in Indiana's EGU NO<INF>X</INF> rule.
    Based on the comparison of the projected emissions and the 
attainment year emissions, we conclude that IDEM has successfully 
demonstrated that the 8-hour ozone standard should be maintained in the 
Evansville area. We believe that this is especially likely given the 
projected decrease in the

[[Page 53613]]

region's NO<INF>X</INF> emissions.\8\ As noted by IDEM, this conclusion 
is further supported by the fact that other states in the eastern 
portion of the United States are expected to further reduce regional 
NO<INF>X</INF> emissions through the implementation of their 
NO<INF>X</INF> rules for EGUs and other major NO<INF>X</INF> emission 
sources. In addition, further regional emission reductions are expected 
to occur as the result of the implementation of EPA rules for Tier 2 
motor vehicle standards, gasoline sulfur content restrictions, highway 
heavy-duty diesel engines, and non-road diesel engines, all of which 
will be implemented during the next few years. The implementation of 
CAIR should also provide additional reductions in regional 
NO<INF>X</INF> emissions.
---------------------------------------------------------------------------

    \8\ As noted above, the emissions from the ``neighboring 
counties'' (those counties outside of the Evansville area) are 
indicative of the emission changes expected in the region as a 
whole. Therefore, since emissions are projected to decline in the 
neighboring counties, we can assume that emissions upwind of the 
Evansville area will also decline over the subject period.
---------------------------------------------------------------------------

d. Monitoring Network
    As noted elsewhere in this proposed rule, IDEM commits to continue 
operating and maintaining an approved ozone monitoring network in the 
Evansville area in accordance with 40 CFR part 58 through the 10-year 
maintenance period. This will allow the confirmation of the maintenance 
of the 8-hour ozone standard in this area.
e. Verification of Continued Attainment
    Continued attainment of the 8-hour ozone NAAQS in the Evansville 
area depends, in part, on the State's efforts toward tracking 
applicable indicators during the maintenance period. The State's plan 
for verifying continued attainment of the 8-hour standard in the 
Evansville area consists of plans to continue ambient ozone monitoring 
in accordance with the requirements of 40 CFR part 58. In addition, 
IDEM will periodically revise and review the VOC and NO<INF>X</INF> 
emissions inventories for the Evansville area to assure that emissions 
growth is not threatening the continued attainment of the 8-hour ozone 
standard in the Evansville area. Emissions inventories will be revised 
for 2005, 2008, and 2011, as necessary to comply with the emissions 
inventory reporting requirements of the CAA. The updated emissions 
inventories will be compared to the 2002 emissions inventories to 
assess emission trends and assure continued attainment of the 8-hour 
ozone standard.
f. Contingency Plan
    The contingency plan provisions are designed to promptly correct or 
prevent a violation of the NAAQS that might occur after redesignation 
of an area to attainment of the NAAQS. Section 175A of the CAA requires 
that a maintenance plan include such contingency measures as EPA deems 
necessary to assure that the State will promptly correct a violation of 
the NAAQS that might occur after redesignation. The maintenance plan 
should identify the contingency measures to be adopted, a schedule and 
procedure for adoption and implementation of the contingency measures, 
and a time limit for action by the state. The state should also 
identify specific indicators to be used to determine when the 
contingency measures need to be adopted and implemented. The 
maintenance plan must include a requirement that the state will 
implement all measures with respect to control of the pollutant(s) that 
were contained in the SIP before redesignation of an area to 
attainment. See section 175A(d) of the CAA.
    As required by section 175A of the CAA, Indiana has adopted a 
contingency plan to address a possible future ozone air quality 
problem. The contingency plan adopted by Indiana has two levels of 
responses, depending on whether a violation of the 8-hour ozone 
standard is only threatened (Warning Level) or is imminent (Action 
Level).
    A Warning Level response will occur when an annual (1-year) fourth-
high monitored daily peak 8-hour ozone concentration of 88 ppb or 
higher is monitored in a single ozone season at any monitor within the 
ozone maintenance area. A Warning Level response will consist of 
Indiana performing a study to determine whether the high ozone 
concentration indicates a trend toward high ozone levels or whether 
emissions are increasing. If a trend toward higher ozone concentrations 
exists and is likely to continue, the emissions control measures 
necessary to reverse the trend will be determined taking into 
consideration ease and timing of implementation, as well as economic 
and social considerations. The study, including applicable recommended 
next steps, will be completed within 12 months from the close of the 
ozone season with the recorded high ozone concentration. If emission 
controls are needed to reverse the adverse ozone trend, the procedures 
for emission control selection under the Action Level response will be 
followed.
    An Action Level response will occur when a two-year average annual 
fourth-high monitored daily peak 8-hour ozone concentration of 85 ppb 
occurs at any monitor in the ozone maintenance area. In this situation, 
IDEM will determine the additional emission control measures needed to 
assure future attainment of the 8-hour ozone NAAQS. IDEM will focus on 
emission control measures that can be implemented in a short time, and 
selected emission control measures will be adopted and implemented 
within 18 months from the close of the ozone season with ozone 
monitoring data that prompted the Action Level Response. Adoption of 
any additional emission control measures will be subject to the 
necessary administrative and legal procedures, including publication of 
notices and the opportunity for public comment and response. If a new 
emission control measure is adopted by the State (independent of the 
ozone contingency needs) or is adopted at a Federal level and is 
scheduled for implementation in a time frame that will mitigate an 
ozone air quality problem, IDEM will determine whether this emission 
control measure is sufficient to address the ozone air quality problem. 
If IDEM determines that existing or soon-to-be-implemented emissions 
control measures should be adequate to correct the ozone standard 
violation problem, IDEM may determine that additional emission control 
measures at the State level may be unnecessary. Regardless, IDEM will 
submit to the EPA an analysis to demonstrate that proposed emission 
control measures are adequate to provide for future attainment of the 
8-hour ozone NAAQS in a timely manner.
    Contingency measures contained in the maintenance plan are those 
emission controls or other measures that Indiana may choose to adopt 
and implement to correct possible air quality problems. These include, 
but are not limited to, the following:
    i. Lower Reid vapor pressure gasoline requirements;
    ii. Broader geographic applicability of existing emission control 
measures;
    iii. Tightened RACT requirements on existing sources covered by EPA 
Control Technique Guidelines (CTGs) issued in response to the 1990 CAA 
amendments;
    iv. Application of RACT to smaller existing sources;
    v. Vehicle Inspection and Maintenance (I/M);
    vi. One or more Transportation Control Measure (TCM) sufficient to 
achieve at least a 0.5 percent reduction in actual area wide VOC 
emissions, to be selected from the following:

[[Page 53614]]

    A. Trip reduction programs, including, but not limited to, 
employer-based transportation management plans, area wide rideshare 
programs, work schedule changes, and telecommuting;
    B. Transit improvements;
    C. Traffic flow improvements; and
    D. Other new or innovative transportation measures not yet in 
widespread use that affect State and local governments as deemed 
appropriate;
    vii. Alternative fuel and diesel retrofit programs for fleet 
vehicle operations;
    viii. Controls on consumer products consistent with those adopted 
elsewhere in the United States;
    ix. VOC or NO<INF>X</INF> emission offsets for new or modified 
major sources;
    x. VOC or NO<INF>X</INF> emission offsets for new or modified minor 
sources;
    xi. Increased ratio of emission offset required for new sources; 
and,
    xii. VOC or NO<INF>X</INF> emission controls on new minor sources 
(with VOC or NO<INF>X</INF> emissions less than 100 tons per year).
g. Provisions for Future Updates of the Ozone Maintenance Plan
    As required by section 175A(b) of the CAA, Indiana commits to 
submit to the EPA an update of the ozone maintenance plan eight years 
after redesignation of the Evansville area to cover an additional 10-
year period beyond the initial 10-year maintenance period.

V. Has Indiana Adopted Acceptable Motor Vehicle Emissions Budgets for 
the End of the 10-Year Maintenance Plan (for 2015) Which Can Be Used To 
Support Conformity Determinations?

A. How Are the MVEBs Developed and What Are the MVEBs for the 
Evansville Area?

    Under the CAA, states are required to submit, at various times, 
control strategy SIP revisions and ozone maintenance plans for 
applicable areas (for ozone nonattainment areas and for areas seeking 
redesignations to attainment of the ozone standard). These emission 
control strategy SIP revisions (e.g., reasonable further progress and 
attainment demonstration SIP revisions) and ozone maintenance plans 
must create MVEBs based on on-road mobile source emissions for criteria 
pollutants and/or their precursors to address pollution from cars and 
trucks. The MVEBs are the portions of the total allowable emissions 
that are allocated to highway and transit vehicle use that, together 
with emissions from other sources in the area, will provide for 
attainment or maintenance.
    Under 40 CFR part 93, a MVEB for an area seeking a redesignation to 
attainment is established for the last year of the maintenance plan. 
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 if needed.
    Under section 176(c) of the CAA, new transportation projects, such 
as the construction of new highways, must ``conform'' to (i.e., be 
consistent with) the part of the SIP that addresses emissions from cars 
and trucks. Conformity to the SIP means that transportation activities 
will not cause new air quality violations, worsen existing air quality 
violations, or delay timely attainment of the NAAQS. If a 
transportation plan does not conform, most new transportation projects 
that would expand the capacity of roadways cannot go forward. 
Regulations at 40 CFR part 93 set forth EPA's policy, criteria, and 
procedures for demonstrating and assuring conformity of transportation 
activities to a SIP.
    When reviewing SIP revisions containing MVEBs, including attainment 
strategies, rate-of-progress plans, and maintenance plans, EPA must 
affirmatively find that the MVEBs are ``adequate'' for use in 
determining transportation conformity. Once EPA affirmatively finds the 
submitted MVEBs to be adequate for transportation conformity purposes, 
the MVEBs are used by state and federal agencies in determining whether 
proposed transportation projects conform to the SIPs as required by 
section 176(c) of the CAA. EPA's substantive criteria for determining 
the adequacy of MVEBs are set out in 40 CFR 93.118(e)(4).
    EPA's process for determining adequacy of a MVEB consists of three 
basic steps: (1) Providing public notification of a SIP submissions; 
(2) providing the public the opportunity to comment on the MVEB during 
a public comment period; and (3) EPA's finding of adequacy. The process 
of determining the adequacy of submitted SIP MVEBs was initially 
outlined in EPA's May 14, 1999 guidance, ``Conformity Guidance on 
Implementation of March 2, 199, Conformity Court Decision.'' This 
guidance was finalized 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'' published on July 1, 2004 (69 FR 40004). 
EPA follows this guidance and rulemaking in making its adequacy 
determinations.
    The Evansville area's 10-year maintenance plan contains VOC and 
NO<INF>X</INF> MVEBs for 2015. The availability of the SIP submission 
with these 2015 MVEBs was announced for public comment on EPA's 
adequacy Web page on April 12, 2005, at: http://www.epa.gov/otaq/transp/conform/currsips.htm. The EPA public comment period on the 
adequacy of the 2015 MVEBs for the Evansville area closed on May 12, 
2005. EPA did not receive any adverse comments. On June 30, 2005 (70 FR 
37856), EPA published a notice of adequacy to notify the public that we 
had found the 2015 MVEBs to be adequate for use in transportation 
conformity analyses.
    EPA, through this rulemaking, is proposing to approve the MVEBs for 
use to determine transportation conformity in the Evansville area 
because EPA has determined that the budgets are consistent with the 
control measures in the SIP and that the Evansville area can maintain 
attainment of the 8-hour ozone NAAQS for the relevant 10-year period 
with mobile source emissions at the levels of the MVEBs. IDEM has 
determined the 2015 MVEBs for the Evansville area (for Vanderburgh and 
Warrick Counties combined) to be 4.20 tpd for VOC and 5.40 tpd day for 
NO<INF>X</INF>. It should be noted that these MVEBs exceed the on-road 
mobile source VOC and NO<INF>X</INF> emissions projected by IDEM for 
2015, as summarized in Table 4, above (``On-Road'' source sector). 
Through discussions with all organizations involved in transportation 
planning for the Evansville area, IDEM decided to include safety 
margins of 0.08 tpd of VOC and 0.39 tpd of NO<INF>X</INF> in the MVEBs 
to provide for mobile source growth. Indiana has demonstrated that the 
Evansville area can maintain the 8-hour ozone NAAQS with mobile source 
emissions of 4.20 tpd of VOC and 5.40 tpd of NO<INF>X</INF> in 2015, 
since emissions will still remain under the attainment year levels.

B. What Is a Safety Margin?

    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. As noted in Table 4, the 
Evansville area VOC and NO<INF>X</INF> emissions are projected to have 
safety margins of 1.66 tons per day for VOC and 52.48 tons per day for 
NO<INF>X</INF> in 2015 (the difference between the attainment year, 
2002, emissions and the 2015 emissions for all sources in

[[Page 53615]]

Vanderburgh and Warrick Counties combined).
    The MVEBs requested by IDEM contain safety margins (selected by the 
State) significantly smaller than the safety margins reflected in the 
total emissions for the Evansville area. The State is not requesting 
allocation of the entire available safety margins reflected in the 
demonstration of maintenance. Therefore, even though the State is 
requesting MVEBs that exceed the on-road mobile source emissions for 
2015 contained in the demonstration of maintenance, the increase in on-
road mobile source emissions that can be considered for transportation 
conformity purposes is well within the safety margins of the ozone 
maintenance demonstration.

C. Are the MVEBs Approvable?

    The VOC and NO<INF>X</INF> MVEBs for the Evansville area are 
approvable because they maintain the total emissions for Vanderburgh 
and Warrick Counties at or below the attainment year inventory levels, 
as required by the transportation conformity regulations.

VI. Statutory and Executive Order Reviews

Executive Order 12866; Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget.

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

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

Regulatory Flexibility Act

    This proposed action merely proposes to approve state law as 
meeting Federal requirements and imposes no additional requirements 
beyond those imposed by state law. Accordingly, the Administrator 
certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).

Unfunded Mandates Reform Act

    Because this rule proposes to approve pre-existing requirements 
under state law and does not impose any additional enforceable duty 
beyond that required by state law, it does not contain any unfunded 
mandate or significantly or uniquely affect small governments, as 
described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4).

Executive Order 13175 Consultation and Coordination With Indian Tribal 
Governments

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

Executive Order 13132 Federalism

    This action also does not have federalism implications because it 
does not have substantial direct effects on the States, on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, as specified in Executive Order 13132 (64 FR 43255, August 
10, 1999). This action merely proposes to approve a state rule 
implementing a federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the Clean 
Air Act.

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

    This proposed rule also is not subject to Executive Order 13045 
``Protection of Children from Environmental Health Risks and Safety 
Risks'' (62 FR 19885, April 23, 1997), because it is not economically 
significant.

National Technology Transfer Advancement Act

    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
state to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply.

Paperwork Reduction Act

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

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Transportation conformity, Volatile organic 
compounds.

40 CFR Part 81

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

    Dated: August 29, 2005.
Bharat Mathur,
Acting Regional Administrator, Region 5.
[FR Doc. 05-17819 Filed 9-8-05; 8:45 am]
BILLING CODE 6560-50-P


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