[Federal Register Volume 75, Number 194 (Thursday, October 7, 2010)]
[Proposed Rules]
[Pages 62026-62040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25291]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R04-OAR-2010-0666-201031; FRL-9211-3]


Approval and Promulgation of Implementation Plans and Designation 
of Areas for Air Quality Planning Purposes; Tennessee; Redesignation of 
the Knoxville 8-Hour Ozone Nonattainment Area to Attainment for Ozone

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On July 14, 2010, the State of Tennessee, through the 
Tennessee

[[Page 62027]]

Department of Environment and Conservation (TDEC), Air Pollution 
Control Division, submitted a request to redesignate the Knoxville 8-
hour ozone nonattainment area to attainment for the 1997 8-hour 
National Ambient Air Quality Standards (NAAQS); and to approve a State 
Implementation Plan (SIP) revision containing a maintenance plan for 
the Knoxville, Tennessee Area. The Knoxville 1997 8-hour ozone 
nonattainment area is comprised of Anderson, Blount, Jefferson, Knox, 
Loudon, and Sevier Counties in their entireties, and the portion of 
Cocke County that falls within the boundary of the Great Smoky 
Mountains National Park (hereafter referred to as the ``Knoxville 
Area''). In this action, EPA is proposing to approve the July 14, 2010, 
8-hour ozone redesignation request for the Knoxville Area. 
Additionally, EPA is proposing to approve the 1997 8-hour ozone NAAQS 
maintenance plan for the Knoxville Area, including the 2007 baseline 
emission inventory, and the motor vehicle emission budgets (MVEBs) for 
nitrogen oxides (NO<INF>X</INF>) and volatile organic compounds (VOC) 
for 2024 for the Knoxville Area. This proposed approval of Tennessee's 
redesignation request is based on EPA's determination that the 
Knoxville Area has met the criteria for redesignation to attainment 
specified in the Clean Air Act (CAA), including the determination that 
the Knoxville 8-hour ozone nonattainment area has attained the 1997 8-
hour ozone NAAQS. In this action, EPA is also describing the status of 
its transportation conformity adequacy determination for the new 2024 
MVEBs that are contained in the 1997 8-hour ozone NAAQS maintenance 
plan for the Knoxville Area. This action is being taken pursuant to the 
CAA and its implementing regulations.

DATES: Comments must be received on or before November 8, 2010.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2010-0666, by one of the following methods:
    1. http://www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. E-mail: <a href="/cdn-cgi/l/email-protection#066463686c676b6f68286a7f68697467634663766728616970"><span class="__cf_email__" data-cfemail="573532393d363a3e39793b2e39382536321732273679303821">[email protected]</span></a>.
    3. Fax: (404) 562-9019.
    4. Mail: EPA-R04-OAR-2010-0666, Regulatory Development Section, Air 
Planning Branch, Air, Pesticides and Toxics Management Division, U.S. 
Environmental Protection Agency, Region 4, 61 Forsyth Street, SW., 
Atlanta, Georgia 30303-8960.
    5. Hand Delivery or Courier: Ms. Lynorae Benjamin, Chief, 
Regulatory Development Section, Air Planning Branch, Air, Pesticides 
and Toxics Management Division, U.S. Environmental Protection Agency, 
Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. 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 Docket ID No. EPA-R04-OAR-
2010-0666. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit through http://www.regulations.gov or e-mail, information that you consider to be CBI 
or otherwise protected. The http://www.regulations.gov Web site is an 
``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly to EPA without 
going through http://www.regulations.gov, your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional information about EPA's public 
docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the electronic docket are listed in the 
http://www.regulations.gov index. 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 http://www.regulations.gov or in hard copy at the Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth 
Street, SW., Atlanta, Georgia 30303-8960. EPA requests that if at all 
possible, you contact the person listed in the FOR FURTHER INFORMATION 
CONTACT section to schedule your inspection. The Regional Office's 
official hours of business are Monday through Friday, 8:30 a.m. to 4:30 
p.m., excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Jane Spann or Royce Dansby-Sparks of 
the Regulatory Development Section, in the Air Planning Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 
30303-8960. Ms. Spann may be reached by phone at (404) 562-9029, or via 
electronic mail at <a href="/cdn-cgi/l/email-protection#cfbcbfaea1a1e1a5aea1aa8faabfaee1a8a0b9"><span class="__cf_email__" data-cfemail="7e0d0e1f101050141f101b3e1b0e1f50191108">[email protected]</span></a>. Mr. Dansby-Sparks may be reached 
by phone at (404) 562-9187, or via electronic mail at <a href="/cdn-cgi/l/email-protection#ee8a8f809d8c97c39d9e8f9c859dc09c81978d8bae8b9e8fc0898198"><span class="__cf_email__" data-cfemail="482c29263b2a31653b38293a233b663a27312b2d082d3829662f273e">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. What proposed actions is EPA taking?
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 the effect of EPA's proposed actions?
VI. What is EPA's analysis of the request?
VII. What is EPA's analysis of Tennessee's proposed NO<INF>X</INF> 
and VOC MVEBs for the Knoxville area?
VIII. What is the status of EPA's adequacy determination for the 
proposed NO<INF>X</INF> and VOC MVEBs for 2024 for the Knoxville 
area?
IX. What is EPA's analysis of the proposed 2007 base year emissions 
inventory for the Knoxville Area?
X. Proposed Action on the Redesignation Request and Maintenance Plan 
SIP Revision Including Proposed Approval of the 2024 NO<INF>X</INF> 
and VOC MVEBs for the Knoxville Area
XI. Statutory and Executive Order Reviews

I. What proposed actions is EPA taking?

    EPA is proposing several related actions, which are summarized 
below and described in greater detail throughout this notice of 
rulemaking: (1) To redesignate the Knoxville Area to attainment for the 
1997 8-hour ozone NAAQS; (2) to approve under section 172(c)(3) the 
emissions inventory submitted with the maintenance plan; and (3) to 
approve, under section 175A of the CAA, Knoxville's 1997 8-hour ozone 
NAAQS maintenance plan into the Tennessee SIP, including the associated 
MVEBs. In addition, and

[[Page 62028]]

related to today's actions, EPA is also notifying the public of the 
status of EPA's adequacy determination for the Knoxville Area MVEBs.
    First, EPA is proposing to determine that the Knoxville Area has 
attained the 1997 8-hour ozone NAAQS. EPA further proposes to determine 
that, if EPA's proposed approval of the 2007 baseline emissions 
inventory for the Knoxville Area is finalized, the Area has met the 
requirements for redesignation under section 107(d)(3)(E) of the CAA. 
The Knoxville Area 1997 8-hour ozone area is composed of Anderson, 
Blount, Jefferson, Knox, Loudon, and Sevier Counties in their 
entireties, and the portion of Cocke County that falls within the 
boundary of the Great Smoky Mountains National Park. In this action, 
EPA is now proposing to approve a request to change the legal 
designation of Anderson, Blount, Jefferson, Knox, Loudon, and Sevier 
Counties in their entireties, and the portion of Cocke County that 
falls within the boundary of the Great Smoky Mountains National Park in 
the Knoxville Area from nonattainment to attainment for the 1997 8-hour 
ozone NAAQS.
    Second, EPA is proposing to approve under the CAA, Tennessee's 2007 
inventory for the Knoxville Area (under section 172(c)(3)). Tennessee 
selected 2007 as the attainment emissions inventory year for the 
Knoxville Area. This attainment inventory identifies the level of 
emissions in the Area, which is sufficient to attain the 1997 8-hour 
ozone NAAQS.
    Third, EPA is proposing to approve Tennessee's 1997 8-hour ozone 
NAAQS maintenance plan for the Knoxville Area (such approval being one 
of the CAA criteria for redesignation to attainment status). The 
maintenance plan is designed to help keep the Knoxville Area in 
attainment of the 1997 8-hour ozone NAAQS through 2024. Consistent with 
the CAA, the maintenance plan that EPA is proposing to approve today 
also includes 2024 NO<INF>X</INF> and VOC MVEBs. EPA is proposing to 
approve (into the Tennessee SIP) the 2024 MVEBs that are included as 
part of Tennessee's maintenance plan for the 1997 8-hour ozone NAAQS.
    EPA is also notifying the public of the status of EPA's adequacy 
process for the newly-established 2024 NO<INF>X</INF> and VOC MVEBs for 
the Knoxville Area. The Adequacy comment period for the Knoxville Area 
2024 MVEBs began on June 15, 2010, with EPA's posting of the 
availability of this submittal on EPA's Adequacy Web site. (http://www.epa.gov/otaq/stateresources/transconf/currsips.htm). The Adequacy 
comment period for these MVEBs closed on July 15, 2010. No adverse 
comments were received during the Adequacy public comment period. On 
September 15, 2010, EPA published its adequacy notice for the 2024 
MVEB's for the Knoxville Area (75 FR 55977). Please see section VIII of 
this proposed rulemaking for further explanation of this process, and 
for more details on the MVEBs determination.
    Today's notice of proposed rulemaking is in response to Tennessee's 
July 14, 2010, SIP submittal requesting the redesignation of the 
Knoxville 1997 8-hour ozone area, and includes a SIP revision 
addressing the specific issues summarized above and the necessary 
elements for redesignation described in section 107(d)(3)(E) of the 
CAA.

II. What is the background for EPA's proposed actions?

    The CAA establishes a process for air quality management through 
the NAAQS. Ozone is a criteria pollutant for which NAAQS are 
established. On July 18, 1997, EPA promulgated a revised 8-hour ozone 
NAAQS of 0.08 parts per million (ppm).\1\ These NAAQS are more 
stringent than the previous 1-hour ozone NAAQS. Under EPA regulations 
found at 40 CFR part 50, the 1997 8-hour ozone NAAQS are 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 0.08 ppm (i.e., 0.084 ppm when rounding is considered). (See 69 FR 
23857 (April 30, 2004) for further information.) 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 percent of days with valid ambient 
monitoring data is greater than 90 percent, on average, and no single 
year has less than 75 percent data completeness as determined in 
Appendix I of part 50. Specifically, section 2.3 of 40 CFR part 50, 
Appendix I, ``Comparisons with the Primary and Secondary Ozone 
Standards'' states:
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    \1\ Ground-level ozone is not emitted directly by sources. 
Rather, emissions of NO<INF>X</INF> and VOC react in the presence of 
sunlight to form ground-level ozone. As a result, NO<INF>X</INF> and 
VOC are referred to as precursors of ozone.

    The primary and secondary ozone ambient air quality standards 
are met at an ambient air quality monitoring site when the 3-year 
average of the annual fourth-highest daily maximum 8-hour average 
ozone concentration is less than or equal to 0.08 ppm. The number of 
significant figures in the level of the standard dictates the 
rounding convention for comparing the computed 3-year average annual 
fourth-highest daily maximum 8-hour average ozone concentration with 
the level of the standard. The third decimal place of the computed 
value is rounded, with values equal to or greater than 5 rounding 
up. Thus, a computed 3-year average ozone concentration of 0.085 ppm 
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is the smallest value that is greater than 0.08 ppm.

    The CAA required EPA to designate as nonattainment any area that 
was violating the 1997 8-hour ozone NAAQS based on the three most 
recent years of ambient air quality data. The Knoxville Area was 
initially designated nonattainment for the 1997 8-hour ozone NAAQS 
using 2001-2003 ambient air quality data. The Federal Register document 
making these designations 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 control requirements for ozone nonattainment 
areas. (Both are found in title I, part D.) Subpart 1 (which EPA refers 
to as ``basic'' nonattainment) contains general, less prescriptive, 
requirements for nonattainment areas for any pollutant--including 
ozone--governed by a NAAQS. Subpart 2 (which EPA refers to as 
``classified'' nonattainment) provides more specific requirements for 
certain ozone nonattainment areas. Under EPA's Phase I 1997 8-Hour 
Ozone Implementation Rule (69 FR 23857) (Phase I Rule), published April 
30, 2004, an area was classified under subpart 2 based on its 1997 8-
hour ozone design value (i.e., the 3-year average of the annual fourth-
highest daily maximum 8-hour average ozone concentrations), if it had a 
1-hour design value at or above 0.121 ppm (the lowest 1-hour design 
value in Table 1 of subpart 2). All other areas were covered under 
subpart 1, based upon their 8-hour ambient air quality design values.
    Knox County (which is a part of the Knoxville Area) was originally 
designated as marginal nonattainment for the 1-hour ozone NAAQS on 
November 6, 1991 (56 FR 56694). Knox County was redesignated as 
attainment for the 1-hour ozone NAAQS on September 27, 1993 (58 FR 
50271). At that same time, Anderson, Blount, Cocke, Jefferson, Loudon 
and Sevier Counties in their entireties were designated attainment/
unclassifiable for the 1-hour ozone NAAQS. On April 30, 2004, EPA 
designated the Knoxville Area (of which Knox County is a part) as a 
``basic'' (subpart 1) 8-hour ozone nonattainment area (69 FR 23857, 
April 30, 2004). When Tennessee submitted

[[Page 62029]]

its final redesignation request on July 14, 2010, the Knoxville Area 
was classified under subpart 1 of the CAA, and was obligated to meet 
only the subpart 1 requirements.
    EPA promulgated implementation rules for the 1997 8-hour ozone 
NAAQS. These rules were published in 2 phases. The Phase I 
Implementation Rule (69 FR 23951, April 30, 2004) was published at the 
same time as the ozone designations and addresses such topics as 
classifications, revocation of the 1-hour NAAQS, anti-backsliding 
principles, and timing for emission reductions. The Phase II Rule was 
published November 29, 2005, (72 FR 31727) and addressed remaining 
implementation issues not covered by the Phase 1 Rule. Various aspects 
of EPA's Phase 1 Rule were challenged in court. On December 22, 2006, 
the U.S. Court of Appeals for the District of Columbia Circuit (DC 
Circuit Court) vacated EPA's Phase 1 Rule (69 FR 23951, April 30, 
2004). South Coast Air Quality Management Dist. (SCAQMD) v. EPA, 472 
F.3d 882 (DC Cir. 2006). On June 8, 2007, in response to several 
petitions for rehearing, the DC Circuit Court clarified that the Phase 
I Rule was vacated only with regard to those parts of the Rule that had 
been successfully challenged. Therefore, the Phase I Rule provisions 
related to classifications for areas currently classified under subpart 
2 of title I, part D of the CAA as 1997 8-hour ozone NAAQS 
nonattainment areas, the 1997 8-hour ozone NAAQS attainment dates and 
the timing for emissions reductions needed for attainment of the 1997 
8-hour ozone NAAQS remain effective. The June 8th decision left intact 
the court's rejection of EPA's reasons for implementing the 1997 8-hour 
NAAQS in certain nonattainment areas under subpart 1 in lieu of subpart 
2, i.e., the court's rejection of the subpart 1 classification. By 
limiting the vacatur, the court let stand EPA's revocation of the 1-
hour NAAQS and those anti-backsliding provisions of the Phase I Rule 
that had not been successfully challenged. The June 8th decision 
reaffirmed the December 22, 2006, decision that EPA had improperly 
failed to retain measures required for 1-hour nonattainment areas under 
the anti-backsliding provisions of the regulations: (1) Nonattainment 
area New Source Review (NSR) requirements based on an area's 1-hour 
nonattainment classification; (2) Section 185 penalty fees for 1-hour 
severe or extreme nonattainment areas; and (3) measures to be 
implemented pursuant to section 172(c)(9) or 182(c)(9) of the CAA, on 
the contingency of an area not making reasonable further progress (RFP) 
toward attainment of the 1-hour NAAQS, or for failure to attain that 
NAAQS. The June 8th decision clarified that the court's reference to 
conformity requirements for anti-backsliding purposes was limited to 
requiring the continued use of 1-hour MVEBs until 1997 8-hour ozone 
NAAQS budgets were available for 8-hour ozone conformity 
determinations, which is already required under EPA's conformity 
regulations. The court thus clarified that 1-hour ozone conformity 
determinations are not required for anti-backsliding purposes.
    This section sets forth EPA's views on the potential effect of the 
court's rulings on this proposed redesignation action. For the reasons 
set forth below, EPA does not believe that the court's rulings alter 
any requirements relevant to this redesignation action so as to 
preclude redesignation, nor does EPA believe the court's ruling 
prevents EPA from proposing or ultimately finalizing this 
redesignation. EPA believes that the court's December 22, 2006, and 
June 8, 2007, decisions impose no impediment to moving forward with 
redesignation of the Knoxville Area to attainment.
    With respect to the 1997 8-hour ozone NAAQS, the court's ruling 
rejected EPA's reasons for classifying areas under subpart 1 for the 
1997 8-hour ozone NAAQS, and remanded that matter back to the Agency. 
In its January 16, 2009, proposed rulemaking in response to the SCAQMD 
decision, EPA has proposed to classify the Knoxville Area under subpart 
2 as a moderate area (74 FR 2936). If EPA finalizes the 
reclassification of the Knoxville Area before the July 14, 2010, 
redesignation request is approved, the requirements under subpart 2 
will become applicable when they are due. EPA proposed a deadline for 
submission of these requirements of one year after the effective date 
of the final rulemaking classifying this and other areas (74 FR 2940-
2941). However, EPA believes that this does not preclude this 
redesignation from being approved. This belief is based upon: (1) EPA's 
longstanding policy of evaluating requirements in accordance with the 
requirements due at the time redesignation request is submitted; and 
(2) consideration of the inequity of applying retroactively any 
requirements that might in the future be applied.
    First, at the time the redesignation request was submitted, the 
Knoxville Area was not classified under subpart 2, nor were subpart 2 
requirements yet due for this Area. Under EPA's longstanding 
interpretation of section 107(d)(3)(E) of the CAA, to qualify for 
redesignation, states requesting redesignation to attainment must meet 
only the relevant SIP requirements that came due prior to the submittal 
of a complete redesignation request. September 4, 1992, Calcagni 
Memorandum (``Procedures for Processing Requests to Redesignate Areas 
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division). See also the September 17, 1993, Michael Shapiro 
Memorandum (''State Implementation Plan (SIP) Requirements for Areas 
Submitting Requests for Redesignation to Attainment of the Ozone and 
Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) on 
or after November 15, 1992,'' Memorandum from Michael Shapiro, Acting 
Assistant Administrator for Air and Radiation), and 60 FR 12459, 12465-
66 (March 7, 1995) (Redesignation of Detroit-Ann Arbor, Michigan); 
Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004) (upholding this 
interpretation); 68 FR 25418, 25424, 25427 (May 12, 2003) 
(redesignation of St. Louis, Missouri).
    Moreover, it would be inequitable to retroactively apply any new 
SIP requirements that were not applicable at the time the request was 
submitted. The DC Circuit Court has recognized the inequity in such 
retroactive rulemaking (see Sierra Club v. Whitman 285 F. 3d 63 (DC 
Cir. 2002)), in which the court upheld a district court's ruling 
refusing to make retroactive an EPA determination of nonattainment that 
was past the statutory due date. Such a determination would have 
resulted in the imposition of additional requirements on the area. The 
court stated, ``[a]lthough EPA failed to make the nonattainment 
determination within the statutory frame, Sierra Club's proposed 
solution only makes the situation worse. Retroactive relief would 
likely impose large costs on the states, which would face fines and 
suits for not implementing air pollution prevention plans in 1997, even 
though they were not on notice at the time.'' Id. at 68. Similarly 
here, it would be unfair to penalize the Knoxville Area by applying to 
it, for purposes of redesignation, additional SIP requirements under 
subpart 2 that were not in effect or yet due at the time it submitted 
its redesignation request, or the time that the Knoxville Area attained 
the NAAQS.
    With respect to the requirements under the 1-hour ozone NAAQS, only 
the Knox County portion of the Knoxville Area was originally designated 
as a marginal nonattainment for the 1-hour ozone NAAQS in November 6, 
1991 (56 FR 56694); the remainder of the Knoxville Area was

[[Page 62030]]

designated as attainment. Knox County was redesignated as attainment 
for the 1-hour ozone NAAQS on September 27, 1993 (58 FR 50271). 
Therefore, Knox County was redesignated to attainment of the 1-hour 
ozone NAAQS prior to its nonattainment designation for the 1997 8-hour 
ozone NAAQS. As a result, Knox County (as part of the Knoxville Area) 
is considered to be a 1-hour attainment area subject to a CAA section 
175A maintenance plan for the 1-hour ozone NAAQS. The DC Circuit 
Court's decisions do not impact redesignation requests for these types 
of areas, except to the extent that the court, in its June 8th 
decision, clarified that for those areas with 1-hour MVEBs in their 
maintenance plans, anti-backsliding requires that those 1-hour budgets 
must be used for 8-hour conformity determinations until they are 
replaced by 1997 8-hour budgets. To meet this requirement, conformity 
determinations in such areas must comply with the applicable 
requirements of EPA's conformity regulations at 40 CFR part 93.
    First, there are no conformity requirements relevant for evaluating 
the Knoxville Area redesignation request, such as a transportation 
conformity SIP.\2\ It is EPA's longstanding policy that it is 
reasonable to interpret the conformity SIP requirements as not applying 
for purposes of evaluating a redesignation request under section 107(d) 
because state conformity rules are still required after redesignation 
and Federal conformity rules apply where state rules have not been 
approved. See 40 CFR 51.390; see also Wall v. EPA, 265 F.3d 426 (6th 
Cir. 2001) (upholding EPA's interpretation); 60 FR 62748 (Dec. 7, 1995) 
(redesignation of Tampa, Florida). Tennessee currently has a fully 
approved 1-hour ozone transportation conformity SIP, which was approved 
on May 16, 2003 (68 FR 26492).
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    \2\ CAA Section 176(c)(4)(E) requires states to submit revisions 
to their SIPs to reflect certain federal criteria and procedures for 
determining transportation conformity. Transportation conformity 
SIPs are different from the motor vehicle emission budgets that are 
established in control strategy SIPs and maintenance plans.
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    Second, with regard to the three other anti-backsliding provisions 
for the 1-hour standard that the DC Circuit Court found were not 
properly retained, Knox County, Tennessee is an attainment area subject 
to a maintenance plan for the 1-hour standard, and the NSR requirement 
no longer applies to this area because it was redesignated to 
attainment of the 1-hour standard. Because Knox County was redesignated 
as a 1-hour attainment area, the contingency measure (pursuant to 
section 172(c)(9) or 182(c)(9)) and fee provision requirements no 
longer apply to the Knoxville Area. As a result, the decisions in 
SCAQMD should not alter any requirements that would preclude EPA from 
finalizing the redesignation of the Knoxville Area to attainment for 
the 1997 8-hour ozone NAAQS.
    As was noted earlier, in 2009, the ambient ozone data for the 
Knoxville Area indicated no further violations of the 1997 8-hour ozone 
NAAQS, using data from the 3-year period of 2007-2009 to demonstrate 
attainment. As a result, on July 14, 2010, Tennessee requested 
redesignation of the Knoxville Area to attainment for the 1997 8-hour 
ozone NAAQS. The redesignation request included three years of 
complete, quality-assured ambient air quality data for the ozone 
seasons (March 1st through October 31st) of 2007-2009, indicating that 
the 1997 8-hour ozone NAAQS has been achieved for the entire Knoxville 
Area. Under the CAA, nonattainment areas may be redesignated to 
attainment if sufficient, complete, quality-assured data is available 
for the Administrator to determine that the area has attained the 
standard and the area meets the other CAA redesignation requirements in 
section 107(d)(3)(E). The 1997 8-hour ozone design values for the 
Knoxville Area indicate that between 1999 and 2009, ozone 
concentrations declined noticeably at both high and low evaluations. 
While ozone concentrations are dependent on a variety of conditions, 
the likely reason for the overall downtrend in ozone concentrations in 
the Knoxville Area is most likely due to the reduction of NOx emissions 
that have occurred since 2004.

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

[[Page 62031]]

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 July 14, 2010, Tennessee, through TDEC, requested redesignation 
of the Knoxville Area to attainment for the 1997 8-hour ozone NAAQS. 
EPA's evaluation indicates that the Knoxville Area has attained the 
1997 8-hour ozone NAAQS and has met the requirements for redesignation 
set forth in section 107(d)(3)(E), including the maintenance plan 
requirements under section 175A of the CAA. EPA is also proposing to 
approve the 2007 baseline emission inventory under section 172(c)(3) 
because Tennessee has used methodology consistent with EPA guidance and 
implementing regulations to develop this inventory. EPA is also 
announcing the status of its adequacy determination of the 2024 
NO<INF>X</INF> and VOC MVEBs which are relevant to the requested 
redesignation.

V. 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 the Anderson, Blount, Jefferson, Knox, Loudon, and Sevier Counties 
in their entireties, and the portion of Cocke County that falls within 
the boundary of the Great Smoky Mountains National Park for the 1997 8-
hour ozone NAAQS found at 40 CFR part 81 from nonattainment to 
attainment. Approval of Tennessee's request would also incorporate into 
the Tennessee SIP, a plan for maintaining the 1997 8-hour ozone NAAQS 
in the Knoxville Area through 2024. This maintenance plan includes 
contingency measures to remedy future violations of the 1997 8-hour 
ozone NAAQS. The maintenance plan also establishes NO<INF>X</INF> and 
VOC MVEBs for the Knoxville Area. The NO<INF>X</INF> and VOC MVEBs for 
2024 for the Knoxville Area are 36.32 tons per day (tpd) and 25.19 tpd, 
respectively. Final action would also approve the Area's emissions 
inventory under section 172(c)(3). Approval of Tennessee's maintenance 
plan would also result in approval of the NO<INF>X</INF> and VOC MVEBs. 
Additionally, EPA is notifying the public of the status of its adequacy 
determination for the 2024 NO<INF>X</INF> and VOC MVEBs pursuant to 40 
CFR 93.118(f)(1).

VI. What is EPA's analysis of the request?

    EPA is proposing to make the determination that the Knoxville 1997 
8-hour ozone nonattainment area has attained the 1997 8-hour ozone 
NAAQS, and that all other redesignation criteria have been met for the 
Knoxville Area. The basis for EPA's determination for the Area is 
discussed in greater detail below.

Criteria (1)--The Knoxville Area Has Attained the 1997 8-Hour Ozone 
NAAQS

    EPA is proposing to determine that the Knoxville Area has attained 
the 1997 8-hour ozone NAAQS. For ozone, an area may be considered to be 
attaining the 1997 8-hour ozone NAAQS if it meets the 1997 8-hour ozone 
standard, as determined in accordance with 40 CFR 50.10 and Appendix I 
of part 50, based on three complete, consecutive calendar years of 
quality-assured air quality monitoring data. To attain these 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 0.08 ppm. Based on the data handling and reporting 
convention described in 40 CFR part 50, appendix I, the NAAQS are 
attained if the design value is 0.084 ppm or below. The data must be 
collected and quality-assured in accordance with 40 CFR part 58, and 
recorded in the EPA 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.
    EPA reviewed ozone monitoring data from ambient ozone monitoring 
stations in the Knoxville Area for the ozone season from 2007-2009. 
These data have been quality-assured and are recorded in AQS. The 
fourth-highest 8-hour ozone average for 2007, 2008 and 2009, and the 3-
year average of these values (i.e., design values), are summarized in 
the following Table 1 of this proposed rulemaking.

                 Table 1--Design Value Concentrations for the Knoxville 8-Hour Ozone Area (ppm)
----------------------------------------------------------------------------------------------------------------
                                                                          Eight-hour design values (ppm)
          County                  Site name         Monitor ID   -----------------------------------------------
                                                                     2005-2007       2006-2008       2007-2009
----------------------------------------------------------------------------------------------------------------
Anderson..................  Freels Bend Study        470010101-1           0.080           0.077           0.072
                             Area.
Blount....................  Look Rock, GSMNP....     470090101-1           0.086           0.085           0.079
                            Cades Cove, GSMNP...     470090102-1           0.070           0.072           0.069
Jefferson.................  1188 Lost Creek Road     470890002-1           0.084           0.081           0.076
Knox......................  9315 Rutledge Pike..     470930021-1           0.081           0.081           0.077
                            4625 Mildred Drive..     470931020-1           0.088           0.088           0.082
Loudon....................  1703 Roberts Road...      47105109-1           0.085           0.082           0.077
Sevier....................  Cove Mountain, GSMNP      47155101-1           0.082           0.082           0.079
----------------------------------------------------------------------------------------------------------------

    As discussed above, the design value for an area is the highest 3-
year average of the annual fourth-highest 8-hour ozone value recorded 
at any monitor in the area. Therefore, the most recent 3-year design 
value (2007-2009) for the Knoxville Area is 0.082 ppm, which meets the 
NAAQS as described above. Current air quality data show that the Area 
continues to attain the NAAQS. If the Area does not continue to attain 
until EPA finalizes the redesignation, EPA will not go forward with the 
redesignation. As discussed in more detail below, the State of 
Tennessee has committed to continue monitoring in this Area in 
accordance with 40 CFR part 58. EPA proposes to find that the Knoxville 
Area has attained the 1997 8-hour ozone NAAQS.

[[Page 62032]]

Criteria (2)--Tennessee Has a Fully Approved SIP Under Section 110(k) 
for the Knoxville Area and Criteria (5)--Tennessee Has Met All 
Applicable Requirements Under Section 110 and Part D of the CAA

    Below is a summary of how these two criteria were met.
    EPA proposes to find that Tennessee has met all applicable SIP 
requirements for the Knoxville Area under section 110 of the CAA 
(general SIP requirements) for purposes of redesignation. EPA also 
proposes to find that the Tennessee SIP satisfies the criterion that it 
meet applicable SIP requirements for purposes of redesignation under 
part D of title I of the CAA (requirements specific to subpart 1 basic 
1997 8-hour ozone nonattainment areas) in accordance with section 
107(d)(3)(E)(v). In addition, EPA 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). In making 
these determinations, EPA ascertained which requirements are applicable 
to the Area and that if applicable, they are fully approved under 
section 110(k). SIPs must be fully approved only with respect to 
applicable requirements.
a. Knoxville Area Has Met All Applicable Requirements Under Section 110 
and Part D of the CAA
    The September 4, 1992, Calcagni Memorandum describes EPA's 
interpretation of section 107(d)(3)(E). Under this interpretation, to 
qualify for redesignation, states requesting redesignation to 
attainment must meet only the relevant CAA requirements that come due 
prior to the submittal of a complete redesignation request. See also 
Michael Shapiro Memorandum, (``SIP Requirements for Areas Submitting 
Requests for Redesignation to Attainment of the Ozone and Carbon 
Monoxide NAAQS On or After November 15, 1992,'' September 17, 1993); 60 
FR 12459, 12465-66 (March 7, 1995) (redesignation of Detroit-Ann Arbor, 
Michigan). Applicable requirements of the CAA that come due subsequent 
to the area's submittal of a complete redesignation request remain 
applicable until a redesignation is approved, but are not required as a 
prerequisite to redesignation. See section 175A(c) of the CAA; Sierra 
Club, 375 F.3d 537; see also 68 FR 25424, 25427 (May 12, 2003) 
(redesignation of St. Louis, Missouri).
    General SIP requirements. Section 110(a)(2) of title I of the CAA 
delineates the general requirements for a SIP, which include 
enforceable emissions 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 limitations. 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 (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 transport 
of air pollutants (NO<INF>X</INF> SIP Call \3\ and Clean Air Interstate 
Rule (CAIR \4\)). 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, we do not believe that the CAA's 
interstate transport requirements should be construed to be applicable 
requirements for purposes of redesignation.
---------------------------------------------------------------------------

    \3\ On October 27, 1998 (63 FR 57356), EPA issued a 
NO<INF>X</INF> SIP Call requiring the District of Columbia and 22 
states to reduce emissions of NO<INF>X</INF> in order to reduce the 
transport of ozone and ozone precursors. In compliance with EPA's 
NO<INF>X</INF> SIP Call, Tennessee developed rules governing the 
control of NO<INF>X</INF> emissions from Electric Generating Units 
(EGUs), major non-EGU industrial boilers, major cement kilns, and 
internal combustion engines. On January 22, 2004, EPA approved 
Tennessee's rules as fulfilling Phase I (69 FR 3015) and Phase II on 
December 27, 2005 (70 FR 76408).
    \4\ On May 12, 2005 (70 FR 25162), EPA promulgated CAIR which 
required 28 upwind States and the District of Columbia to revise 
their SIPs to include control measures that would reduce emissions 
of sulfur dioxide and NO<INF>X</INF>. Various aspects of CAIR rule 
were petitioned in court and on December 23, 2008, the U.S. Court of 
Appeals for the District of Columbia Circuit remanded CAIR to EPA 
(see North Carolina v. EPA, 550 F.3d 1176 (DC Cir., 2008)) which 
left CAIR in place to ``temporarily preserve the environmental 
values covered by CAIR'' until EPA replaces it with a rule 
consistent with the court's decision. The court directed EPA to 
remedy various areas of the rule that were petitioned consistent 
with its July 11, 2008, opinion (see, North Carolina v. EPA, 531 
F.3d 836 (DC Cir., 2008)), but declined to impose a schedule on EPA 
for completing that action. Id. Therefore, CAIR is currently in 
effect in Tennessee.
---------------------------------------------------------------------------

    In addition, EPA believes that the other section 110 elements not 
connected with nonattainment plan submissions and not 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, 
1997); 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).
    EPA believes that section 110 elements not linked to the area's 
nonattainment status are not applicable for purposes of redesignation. 
Therefore, as was discussed above, for purposes of redesignation, they 
are not considered applicable requirements. Nonetheless, EPA notes it 
has previously approved provisions in the Tennessee SIP addressing 
section 110 elements under the 1-hour ozone NAAQS (45 FR 53809, August 
13, 1980). The State believes that the section 110 SIP approved for the 
1-hour ozone NAAQS are sufficient to meet the requirements under the 
1997 8-hour ozone NAAQS. Tennessee submitted a letter dated December 
14, 2007, setting forth its belief that the section 110 SIP approved 
for the 1-hour ozone NAAQS is also sufficient to meet the requirements 
under the 1997 8-hour ozone NAAQS. EPA has not yet approved this 
submission, but such

[[Page 62033]]

approval is not necessary for purposes of redesignation.
    Part D requirements. EPA proposes that if EPA approves Tennessee's 
base year emissions inventory, which is part of the maintenance plan 
submittal, the Tennessee SIP will meet applicable SIP requirements 
under part D of the CAA. We believe the emissions inventory is 
approvable because the 2007 VOC and NO<INF>x</INF> emissions for 
Tennessee were developed consistent with EPA guidance for emission 
inventories, and the choice of the 2007 base year is appropriate 
because it represents the 2007-2009 period when the 1997 8-hour ozone 
NAAQS were not violated.
    Part D, subpart 1 applicable SIP requirements. EPA has determined 
that, if EPA finalizes the approval of the base year emissions 
inventories discussed in section IX of this rulemaking, the Tennessee 
SIP will meet the applicable SIP requirements for the Knoxville Area 
applicable for purposes of redesignation under part D of the CAA. 
Subpart 1 of part D, found in sections 172-176 of the CAA, sets for the 
basic nonattainment requirements applicable to all nonattainment areas. 
Subpart 2 of part D, which includes section 182 of the CAA, establishes 
additional specific requirements depending on the area's nonattainment 
classification. Since the Knoxville Area was not classified under 
subpart 2 at the time the redesignation request was submitted, the 
subpart 2 requirements do not apply for purposes of evaluating the 
Tennessee's redesignation request. The applicable subpart 1 
requirements are contained in sections 172(c)(1)-(9) and in section 
176. A thorough discussion of the requirements contained in section 172 
can be found in the General Preamble for Implementation of title I (57 
FR 13498).
    Subpart 1 Section 172 Requirements.\5\ For purposes of evaluating 
this redesignation request, the applicable section 172 SIP requirements 
for the Knoxville Area are contained in sections 172(c)(1)-(9). A 
thorough discussion of the requirements contained in section 172 can be 
found in the General Preamble for Implementation of Title I (57 FR 
13498, April 16, 1992).
---------------------------------------------------------------------------

    \5\ On August 3, 2010, EPA proposed to approve a clean data 
determination for the Knoxville Area for the 1997 8-hour ozone NAAQS 
(75 FR 45568). If EPA takes final action on this determination, 
under the provisions of EPA's ozone implementation rule (see 40 CFR 
Section 51.918), the requirements for the State of Tennessee to 
submit an attainment demonstration and associated reasonably 
available control measures plan, RFP plan, contingency measures, and 
any other planning SIPs related to attainment of the 1997 8-hour 
ozone NAAQS for the Knoxville Area, shall be suspended for as long 
as the Area continues to meet the 1997 8-hour ozone NAAQS.
---------------------------------------------------------------------------

    Section 172(c)(1) requires the plans for all nonattainment areas to 
provide for the implementation of all reasonably available control 
measures (RACM) as expeditiously as practicable and to provide for 
attainment of the national primary ambient air quality standards. EPA 
interprets this requirement to impose a duty on all nonattainment areas 
to consider all available control measures and to adopt and implement 
such measures as are reasonably available for implementation in each 
area as components of the area's attainment demonstration.
    The RFP plan requirement under section 172(c)(2) is defined as 
progress that must be made toward attainment. This requirement is not 
relevant for purposes of redesignation because the Knoxville Area has 
monitored attainment of the ozone NAAQS. (General Preamble, 57 FR 
13564). See also 40 CFR 51.918. In addition, because the Knoxville Area 
has attained the ozone NAAQS and is no longer subject to an RFP 
requirement, the requirement to submit the section 172(c)(9) 
contingency measures is not applicable for purposes of redesignation. 
Id.
    Section 172(c)(3) requires submission and approval of a 
comprehensive, accurate, and current inventory of actual emissions. As 
part of Tennessee's redesignation request for the Knoxville Area, 
Tennessee submitted a 2007 base year emissions inventory. As discussed 
below in section IX, EPA is proposing to approve the 2007 base year 
inventory that Tennessee submitted with the redesignation request as 
meeting the section 172(c)(3) emissions inventory requirement.
    Section 172(c)(4) requires the identification and quantification of 
allowable emissions for major new and modified stationary sources to be 
allowed in an area, and section 172(c)(5) requires source permits for 
the construction and operation of new and modified major stationary 
sources anywhere in the nonattainment area. EPA has determined that, 
since PSD requirements will apply after redesignation, 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. 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 has demonstrated that the 
Knoxville Area will be able to maintain the NAAQS without part D NSR in 
effect; therefore, EPA concludes that Tennessee need not have fully 
approved part D NSR programs prior to approval of the redesignation 
request. Tennessee's PSD programs will become effective in the 
Knoxville 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); and Grand Rapids, Michigan 
(61 FR 31834-31837, June 21, 1996).
    Section 172(c)(6) requires the SIP to contain control measures 
necessary to provide for attainment of the NAAQS. Because attainment 
has been reached, no additional measures are needed to provide for 
attainment.
    Section 172(c)(7) requires the SIP to meet the applicable 
provisions of section 110(a)(2). As noted above, we believe the 
Tennessee SIP meets the requirements of section 110(a)(2) applicable 
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 projects conform to the air quality 
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 of the United States Code 
(U.S.C.) and the Federal Transit Act (transportation conformity) 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 believes it is reasonable to interpret the conformity SIP 
requirements \6\ as not applying for purposes of evaluating the 
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, 265 
F.3d 426 (upholding this interpretation);

[[Page 62034]]

see also 60 FR 62748 (December 7, 1995, Tampa, Florida). Tennessee 
submitted its transportation conformity SIP for 1-hour ozone on March 
19, 2002. EPA issued a direct final rule approving Tennessee's 
Transportation Conformity SIP on May 16, 2003 (68 FR 26492).
---------------------------------------------------------------------------

    \6\ CAA section 176(c)(4)(E) requires states to submit revisions 
to their SIPs to reflect certain federal criteria and procedures for 
determining transportation conformity. Transportation conformity 
SIPs are different from the motor vehicle emission budgets that are 
established in control strategy SIPs and maintenance plans.
---------------------------------------------------------------------------

    NSR Requirements. 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 NAAQS without a part D NSR program in effect since 
PSD requirements will apply after redesignation. The 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 (Part D NSR) Requirements for Areas 
Requesting Redesignation to Attainment.'' Tennessee has demonstrated 
that the Knoxville Area will be able to maintain the NAAQS without a 
part D NSR program in effect, and therefore, Tennessee need not have a 
fully-approved part D NSR program prior to approval of the 
redesignation request. However, Tennessee currently has a fully-
approved part D NSR program in place. Tennessee's PSD program will 
become effective in the Knoxville Area upon redesignation to 
attainment. See rulemakings for Detroit, Michigan (60 FR 12467-12468, 
March 7, 1995); Cleveland-Akron-Lorraine, Ohio (61 FR 20458, 20469-70, 
May 7, 1996); Louisville, Kentucky (66 FR 53665, October 23, 2001); and 
Grand Rapids, Michigan (61 FR 31834-31837, June 21, 1996). Thus, the 
Knoxville Area has satisfied all applicable requirements for purposes 
of redesignation under section 110 and part D of the CAA.
b. The Knoxville Area Has a Fully Approved Applicable SIP Under Section 
110(k) of the CAA
    If EPA issues a final approval of the base year emissions 
inventories, EPA will have fully approved the applicable Tennessee SIP 
for the Knoxville 8-hour ozone nonattainment area, under section 110(k) 
of the CAA for all requirements applicable for purposes of 
redesignation. EPA may rely on prior SIP approvals in approving a 
redesignation request, see 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. Following passage of the CAA of 1970, 
Tennessee has adopted and submitted, and EPA has fully approved at 
various times, provisions addressing the various 1-hour ozone NAAQS SIP 
elements applicable in Knox County, Tennessee (58 FR 50271, September 
27, 1993; and 69 FR 4852, February 2, 2004).
    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 also believes that since the part D 
subpart 1 requirements did not become due prior to submission of the 
redesignation request, they also are therefore not applicable 
requirements for purposes of redesignation. Sierra Club v. EPA, 375 
F.3d 537 (7th Cir. 2004); 68 FR 25424, 25427 (May 12, 2003) 
(redesignation of the St. Louis-East St. Louis Area to attainment of 
the 1-hour ozone NAAQS). With the approval of the emissions inventory, 
EPA will have approved all Part D subpart 1 requirements applicable for 
purposes of redesignation.

Criteria (3)--The Air Quality Improvement in the Knoxville Area 1997 8-
Hour Ozone NAAQS Nonattainment 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

    EPA believes that Tennessee has demonstrated that the observed air 
quality improvement in the Knoxville Area is due to permanent and 
enforceable reductions in emissions resulting from implementation of 
the SIP, Federal measures, and other state adopted measures. 
Additionally, new emissions control programs for fuels and motor 
vehicles will help ensure a continued decrease in emissions throughout 
the region.
    Measured reductions in ozone concentrations in and around the 
Knoxville Area are largely attributable to reductions from emission 
sources of VOC and NO<INF>X</INF>, which are precursors in the 
formation of ozone. Table 2 summarizes several of the measures adopted 
that contributed to reductions of emissions. The majority of these 
reductions have been realized from federal measures related to mobile 
sources and electrical power generation.

Table 2--Federal and State Measures Contributing to Emissions Reductions
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
Federal Measures:
  NOX Budget Trading Program.
  NOX SIP call.
  National Low Emission Vehicles.
  Tier 2 Vehicle Standards.
  Tier 1, Tier 2 and Tier 3 (non-road).
  Sources-Spark Ignition Engines (non-road).
State and Local Measures:
  Stage I Vapor Recovery.
  Motor Vehicle Anti-tampering Rule.
  Air Quality Alert Programs.
  Smart Trips Program.
------------------------------------------------------------------------

    One key program, the NO<INF>X</INF> SIP, required states to make 
significant, specific emissions reductions (63 FR 57356). It also 
provided a mechanism, the NO<INF>X</INF> Budget Trading Program, which 
states could use to achieve those reductions. When EPA promulgated 
CAIR, it discontinued (starting in 2009) the NO<INF>X</INF> Budget 
Trading Program, 40 CFR 51.121(r), but created another mechanism--the 
CAIR ozone season trading program--which states could use to meet their 
SIP Call obligations, 70 FR 25289-90. All NO<INF>X</INF> SIP Call 
states have SIPs that currently satisfy their obligations under the SIP 
Call, the SIP Call reduction requirements are being met, and EPA will 
continue to enforce the requirements of the NO<INF>X</INF> SIP Call 
even after any response to the CAIR remand. Notably, the anti-
backsliding provisions of 40 CFR 51.905(f) specifically provide that 
the provisions of the NO<INF>X</INF> SIP Call, including the statewide 
NO<INF>X</INF> emission budgets, continue to apply after revocation of 
the 1-hour standard.
    Regarding point source emissions, the Tennessee Valley Authority's 
(TVA's) Bull Run Steam Plant located in Anderson County and Kingston 
Steam Plant located in Roane County include a total of 10 coal-fired 
boilers. As a result of EPA's ``Finding of Significant Contribution and 
Rulemaking for Certain States in the Ozone Transport Assessment Group 
Region for Purposes of Reducing Region Transport of Ozone'' 
(NO<INF>X</INF> SIP Call), TVA began operation of selective catalytic 
reduction (SCR) systems in 2004 at Bull Run's unit and on eight of the 
nine units at Kingston. TVA began operation of a SCR for the ninth unit 
at Kingston in 2006. There was an 85 percent and 90 percent reduction 
in NO<INF>X</INF> emissions from the Bull Run and Kingston facilities, 
respectively from 2003 to 2008 as a result of these controls. 
Furthermore, NO<INF>X</INF> emissions from all categories are projected 
to decrease in the Knoxville Area by 56.1 tpd between 2007 and

[[Page 62035]]

2024 (41.5 percent reduction). Total point source NO<INF>X</INF> 
emissions are projected to increase slightly (2.42 tpd), while EGU 
NO<INF>X</INF> emissions are projected to remain unchanged between 2007 
and 2024. For these reasons, EPA believes that regardless of the status 
of the CAIR program, the NO<INF>X</INF> SIP call requirements can be 
relied upon in demonstrating maintenance. Here, Tennessee has 
demonstrated maintenance based in part on those requirements.
    In addition, EPA undertook an analysis of the changes in 
NO<INF>X</INF> expected across a broader region. In particular, EPA 
reviewed available projections of NO<INF>X</INF> emissions from nearby 
states from 2002 to 2018.

                                              Table 3--2002 Base Annual Emission Inventory Summary for NOX*
                                                                     [Tons per year]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 States                      EGU point     Non-EGU point     Non-road          Area           Mobile           Fires           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
AR......................................          24,722          47,698          62,472          21,700         141,894           5,492         303,978
KY......................................         201,928          38,434         104,571          39,507         156,417             534         541,391
LA......................................         111,703         199,218         114,711          93,069         180,664           6,942         706,307
MS......................................          40,433          61,533          88,787           4,200         111,914             308         307,175
MO......................................         145,438          36,144          99,306          32,435         189,852           2,442         505,617
TN......................................         152,137          64,344          96,827          17,844         238,577             217         569,946
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................         676,361         447,371         566,674         208,755       1,019,318          15,935       2,934,414
--------------------------------------------------------------------------------------------------------------------------------------------------------
* From the Tennessee Regional Haze SIP, Appendix D, page D.3-5 and support table for Technical Support Document for CENRAP Emissions and Air Quality
  Modeling to Support Regional Haze State Implementation Plans, page 2-40, figure 2-4.


                                             Table 4--2018 Base Annual Emission Inventory Summary for NOX *
                                                                     [Tons per year]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                 States                      EGU point     Non-EGU point     Non-road          Area           Mobile           Fires           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
AR......................................          34,938          36,169          34,305          25,672          33,640           5,600         170,324
KY......................................          64,378          41,034          79,392          44,346          52,263             714         282,127
LA......................................          44,485         225,748         106,685         114,374          44,806           6,969         543,067
MS......................................          21,535          61,252          68,252           4,483          30,619           1,073         187,214
MO......................................          83,181          51,489          59,625          35,213          50,861           2,442         282,811
TN......................................          31,715          62,519          70,226          19,597          69,385             405         253,847
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................         280,232         478,211         418,485         243,685         281,574          17,203       1,708,390
--------------------------------------------------------------------------------------------------------------------------------------------------------
* From the Tennessee Regional Haze SIP, Appendix D, page D.3-5 and support table for Technical Support Document for CENRAP Emissions and Air Quality
  Modeling to Support Regional Haze State Implementation Plans, page 2-40, figure 2-4.

    From 2002 to 2018 NO<INF>X</INF> emissions are projected to 
decrease in the region by 1,215,024 tpy or 41.4 percent in all. EGU 
NO<INF>X</INF> anticipated decreases due to CAIR and the NO<INF>X</INF> 
SIP Call are projected to be 198,150 tpy. However the largest source in 
this region remains the motor vehicle sector, which is projected to 
decrease 737,744 tpy. Even without EGU controls on NO<INF>X</INF> 
emissions, total NO<INF>X</INF> emissions are projected to continually 
decrease throughout the maintenance period.
    On July 6, 2010, EPA proposed the Transport Rule, which will 
require significant reductions in sulfur dioxide and NO<INF>X</INF> 
emissions that cross state boundaries. This proposed rule will 
potentially form the basis for a final rule which replaces EPA's 2005 
CAIR (North Carolina v. EPA, 550 F.3d 1176 (D.C. Cir., 2008)).
    These regional projections of emissions data have been prepared 
through 2018. However, since motor vehicle and non-road emissions 
continue to decrease long after a rule is adopted as the engine 
population is gradually replaced by newer engines, it is reasonable to 
expect that this projected decrease in regional NO<INF>X</INF> 
emissions from mobile and non-road sources should continue through 2024 
and assure that ozone in the Knoxville Area will continue to decline 
throughout the 10-year maintenance period. Hence, we believe the 
projected regional NO<INF>X</INF> reductions are adequate to assure 
that the Knoxville Area will continue demonstrating maintenance 
throughout the 10-year maintenance period.

Criteria (4)--The Knoxville Area Has a Fully Approved Maintenance Plan 
Pursuant to Section 175A of the CAA

    In conjunction with its request to redesignate the Knoxville Area 
to attainment for the 1997 8-hour ozone NAAQS, TDEC submitted a SIP 
revision to provide for the maintenance of the 1997 8-hour ozone NAAQS 
for at least 10 years after the effective date of redesignation to 
attainment.
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 of Tennessee must submit a revised maintenance 
plan, which demonstrates that attainment will continue to be maintained 
for the 10 years following the initial 10-year period. To address the 
possibility of future NAAQS violations, the maintenance plan must 
contain such contingency measures, with a schedule for implementation 
as EPA deems necessary to assure prompt correction of any future 1997 
8-hour ozone violations. Section 175A of the CAA sets forth the 
elements of a maintenance plan for areas seeking redesignation from 
nonattainment to attainment. The Calcagni Memorandum

[[Page 62036]]

provides additional guidance on the content of a maintenance plan. The 
Calcagni Memorandum explains that an ozone 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, 
Tennessee's maintenance plan includes all the necessary components and 
is approvable as part of the redesignation request.
b. Attainment Emissions Inventory
    The Knoxville Area attained the 1997 8-hour NAAQS with monitoring 
data from 2007, 2008, and 2009, therefore Tennessee selected 2007 as 
the attainment emission inventory year. The attainment inventory 
identifies the level of emissions in the Area, which is sufficient to 
attain the 1997 8-hour ozone NAAQS. Tennessee began development of the 
attainment inventory by first developing a baseline emissions inventory 
for the Knoxville Area. The year 2007 was chosen as the base year for 
developing a comprehensive ozone precursor emissions inventory for 
which projected emissions could be developed for 2010, 2013, 2016, 
2020, and 2024. The projected inventory estimates emissions forward to 
2024, which is beyond the 10-year interval required in section 175(A) 
of the CAA. Non-road mobile emissions estimates were based on EPA's 
NONROAD2008 model. On-road mobile source emissions were calculated 
using EPA's MOBILE6.2 emission factors model. The 2007 VOC and 
NO<INF>X</INF> emissions, as well as the emissions for other years, for 
the Knoxville Area were developed consistent with EPA guidance, and are 
summarized in Tables 5 and 6 in the following subsection.
c. Maintenance Demonstration
    The July 14, 2010, final submittal includes a maintenance plan for 
the Knoxville Area. This demonstration:
    (i) Shows compliance and maintenance of the 1997 8-hour ozone NAAQS 
by providing information to support the demonstration that current and 
future emissions of VOC and NO<INF>X</INF> remain at or below 
attainment inventory year 2007 emissions levels. The year 2007 was 
chosen as the attainment inventory year because it is one of the most 
recent three years (i.e., 2007, 2008, and 2009) for which the Knoxville 
Area has clean air quality data for the 1997 8-hour ozone NAAQS.
    (ii) Uses 2007 as the attainment inventory year and includes future 
emission inventory projections for 2010, 2013, 2016, 2020, and 2024.
    (iii) Identifies an ``out year,'' at least 10 years (and beyond) 
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 (2024) of the maintenance plan.
    (iv) Provides the following actual and projected emissions 
inventories, in tpd for the Knoxville Area. See Tables 5 and 6.

                                                          Table 5--Knoxville Area VOC Emissions
                                                                   [Summer season tpd]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Summary of VOC emissions (tpd)
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Nonroad                                           Change from
                      Year                           Point         Area        Onroad     (excluding    Nonroad       Total        Safety        2007
                                                                                             MLA)        (MLA)                     margin     (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2007............................................         7.32        33.25        36.77        34.26         0.68       112.28  ...........  ...........
2010............................................         7.17        34.21        33.53        31.05         0.62       106.58         5.70         -5.1
2013............................................         7.37        35.23        30.29        26.47         0.52        99.88        12.40        -11.0
2016............................................         7.88        36.64        27.05        22.07         0.44        94.08        18.20        -16.2
2020............................................         8.64        38.40        22.72        18.04         0.35        88.15        24.13        -21.5
2024............................................         9.53        40.24        18.39        16.62         0.33        85.11        27.17        -24.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Emissions are for Anderson, Blount, Jefferson, Knox, Loudon, Sevier and onroad emissions for Cocke County.
MLA = Commercial Marine Vessels, Locomotives and Aircraft.


                                                          Table 6--Knoxville Area NOX Emissions
                                                                   [Summer season tpd]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Summary of NOX emissions (tpd)
---------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                           Nonroad                                           Change from
                      Year                           Point         Area        Onroad     (excluding    Nonroad       Total        Safety        2007
                                                                                             MLA)        (MLA)                     margin     (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2007............................................        42.69         2.07        71.83        13.16         5.44       135.19
2010............................................        42.65         2.15        63.10        12.17         5.03       125.10        10.09         -7.5
2013............................................        42.94         2.29        54.36        10.51         4.34       114.44        20.75        -15.3
2016............................................        43.56         2.50        45.62         8.74         3.61       104.03        31.18        -23.0
2020............................................        44.30         2.60        33.96         7.21         2.98        91.05        44.14        -32.7
2024............................................        45.11         2.68        22.29         6.37         2.63        79.08        56.11        -41.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Emissions are for Anderson, Blount, Jefferson, Knox, Loudon, Sevier and onroad emissions for Cocke County.
MLA = Commercial Marine Vessels, Locomotives and Aircraft.

    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 has decided to allocate a portion of the available 
safety margin to the Area's VOC and NO<INF>X</INF> MVEBs for 2024 for 
the Knoxville Area and has calculated the safety margin in its 
submittal. Specifically, 14.03 tpd of the available NO<INF>X</INF> 
safety margin is allocated

[[Page 62037]]

to the 2024 MVEB, the remaining safety margin for NO<INF>X</INF> for 
2024 is 42.08 tpd. Also, 6.8 tpd of the available VOC safety margin is 
allocated to the 2024 MVEB, the remaining safety margin for VOC for 
2024 is 20.37 tpd. See Tables 5 and 6, above. This allocation and the 
resulting available safety margin for the Knoxville Area are discussed 
further in section VII of this proposed rulemaking.
d. Monitoring Network
    There are currently nine monitors measuring ozone in the Knoxville 
Area (see Table 1).\7\ TDEC and the Knox County Department of Air 
Quality Management (DAQM) have committed, in the maintenance plan, to 
continue operation of monitors in the Knoxville Area in compliance with 
40 CFR part 58, and have addressed the requirement for monitoring.
---------------------------------------------------------------------------

    \7\ Of the nine air quality ozone monitors in the Knoxville 
Area, the Clingman's Dome ozone monitoring site in Sevier County 
does not meet siting criteria listing in 40 CFR part 58, and thus is 
not appropriate to be used for the determination of attainment or 
nonattainment for the ozone NAAQS.
---------------------------------------------------------------------------

e. Verification of Continued Attainment
    The State of Tennessee, through TDEC, and the Knox County DAQM have 
the legal authority to enforce and implement the requirements of the 
Knoxville Area 1997 8-Hour Ozone Maintenance plan. 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.
    Both agencies will track the progress of the maintenance plan by 
performing future reviews of triennial emission inventories for the 
Knoxville Area using the latest emissions factors, models and 
methodologies. For these periodic inventories, TDEC and Knox County 
DAQM will review the assumptions made for the purpose of the 
maintenance demonstration concerning projected growth of activity 
levels. If any of these assumptions appear to have changed 
substantially, the Knoxville Area will re-project emissions.
f. Contingency Plan
    The contingency plan provisions are designed to promptly correct a 
violation of the NAAQS that occurs after redesignation. 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 July 14, 2010, submittal, Tennessee affirms that all 
programs instituted by the State and EPA will remain enforceable, and 
that sources are prohibited from reducing emissions controls following 
the redesignation of the Area. 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 will be a quality 
assured/quality controlled (QA/QC) violating design value of the 1997 
8-hour ozone NAAQS. In addition to the primary trigger indicated above, 
Tennessee and the Knox County DAQM will monitor regional emissions 
through the Consolidated Emissions Reporting Rule (CERR). If the CERR 
results indicate that the projected emissions in this maintenance plan 
are significantly less than the CERR reveals (greater than ten 
percent), TDEC and Knox County DAQM will investigate the differences 
and develop an appropriate strategy for addressing the differences. In 
addition, if ambient monitoring data indicates that a violation of the 
three-year design value may be imminent, TDEC and Knox County DAQM will 
evaluate existing control measures to determine whether further 
emission reduction measures should be implemented. If QA/QC data 
indicates a violating design value for the 1997 8-hour ozone NAAQS, 
then the triggering event will be the date of the design value 
violation, and not the final QA/QC date. However, if initial monitoring 
data indicates a possible violation but later QA/QC data indicates that 
the NAAQS was not violated, then a triggering event will not have 
occurred, and contingency measures will not be required.
    The contingency plan states that upon a measured violation of the 
1997 8-hour ozone NAAQS in the Knoxville Area, TDEC and the Knox County 
DAQM will complete sufficient analyses and provide those to the EPA. If 
deemed necessary, contingency measures would be adopted and implemented 
as expeditiously as possible, but no later than eighteen to twenty-four 
months after a triggering event. The proposed schedule for these 
actions would be as follows:
    <bullet> Six months to identify appropriate contingency measures, 
including identification of emission sources and appropriate control 
technologies;
    <bullet> Between three and six months to initiate a stakeholder 
process; and
    <bullet> Between nine and twelve months to implement the 
contingency measures. This step would include the time required to 
draft rules or SIP amendments, complete the rulemaking process, and 
submit the final plans to EPA.

Tennessee will consider one or more of the following contingency 
measures to re-attain the NAAQS:

    <bullet> Implementation of diesel retrofit programs, including 
incentives for performing retrofits.
    <bullet> Reasonable Available Control Technology for NO<INF>X</INF> 
sources in nonattainment counties.
    <bullet> Programs or incentives to decrease motor vehicle use, 
including employer-based programs, additional park and ride services, 
enhanced transit service and encouragement of flexible work hours/
compressed work week/telecommuting.
    <bullet> Trip reduction ordinances.
    <bullet> Additional emissions reductions on stationary sources.
    <bullet> Enhanced stationary source inspection to ensure that 
emissions control equipment is functioning properly.
    <bullet> Voluntary fuel programs, including incentives for 
alternative fuels.
    <bullet> Construction of high-occupancy vehicle (HOV) lanes, or 
restriction of certain roads or lanes for HOV.
    <bullet> Programs for new construction and major reconstruction of 
bicycle and pedestrian facilities including shared use paths, 
sidewalks, and bicycle lanes.
    <bullet> Expand Air Quality Action Day activities/Clean Air 
Partners public education outreach.
    <bullet> Expansion of E-government services at State and local 
levels.
    <bullet> Additional enforcement or outreach on driver observance of 
reduced speed limits.
    <bullet> Land use/transportation polices.
    <bullet> Promote non-motorized transportation.
    <bullet> Promote tree-planting standards that favor trees with low 
VOC biogenic emissions.
    <bullet> Promote energy savings plans for local government.
    <bullet> Gas can and lawnmower replacement programs.
    <bullet> Seasonal open burning ban in nonattainment counties.

[[Page 62038]]

    <bullet> Evaluate anti-idling rules and/or policy.
    <bullet> Additional controls in upwind areas, if necessary.

Other control measures, not included in the above list, will be 
considered if new control programs are deemed more advantageous for 
this Area.
    EPA has concluded that the maintenance plan adequately addresses 
the five basic components of a maintenance plan: attainment inventory, 
maintenance demonstration, monitoring network, verification of 
continued attainment, and a contingency plan. The maintenance plan SIP 
revision submitted by the State of Tennessee for the Knoxville Area 
meets the requirements of section 175A of the CAA and is approvable.

VII. What is EPA's analysis of Tennessee's proposed NO<INF>X</INF> and 
VOC MVEBs for the Knoxville area?

    Under the CAA, states are required to submit, at various times, 
control strategy SIPs and maintenance plans in ozone areas. These 
control strategy SIPs (reasonable further progress and attainment 
demonstration) and maintenance plans create MVEBs for criteria 
pollutants and/or their precursors to address pollution from cars and 
trucks. Per 40 CFR part 93, an MVEB is 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 Knoxville Area, Tennessee has elected to develop MVEBs for VOC and 
NO<INF>X</INF> for the entire Area. Tennessee is developing these 
MVEBs, as required, for the last year of its maintenance plan, 2024. 
The MVEBs reflect the total on-road emissions for 2024, plus an 
allocation from the available VOC and NO<INF>X</INF> safety margin. 
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. These 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 NO<INF>X</INF><INF></INF> and VOC MVEBs for 
the Knoxville Area are defined in Table 7 below.

                Table 7--Knoxville Area VOC and NOX MVEBs
                           [Summer season tpd]
------------------------------------------------------------------------
                                                               2024
------------------------------------------------------------------------
NOX.....................................................           36.32
VOC.....................................................           25.19
------------------------------------------------------------------------

    As mentioned above, the Knoxville Area has chosen to allocate a 
portion of the available safety margin to the 2024 NO<INF>X</INF> and 
VOC MVEBs. This allocation is 14.03 tpd for NO<INF>X</INF> and 6.80 tpd 
for VOC. Thus, the remaining safety margin in 2024 is 42.08 tpd for 
NO<INF>X</INF> and 20.37 tpd for VOC.
    Through this rulemaking, EPA is proposing to approve the 2024 MVEBs 
for VOC and NO<INF>X</INF><INF></INF> for the Knoxville Area because 
EPA has determined that the Area maintains the 1997 8-hour ozone NAAQS 
with the emissions at the levels of the budgets. Once the MVEBs for the 
Knoxville Area (the subject of this rulemaking) are approved or found 
adequate (whichever is done first), they must be used for future 
conformity determinations.

VIII. What is the status of EPA's adequacy determination for the 
proposed NO<INF>X</INF> and VOC MVEBs for 2024 for the Knoxville Area?

    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 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. 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 a maintenance plan for that NAAQS.
    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 an 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 finding. 
This process for determining the adequacy of submitted SIP MVEBs was 
initially outlined in EPA's May 14, 1999, guidance, ``Conformity 
Guidance on Implementation of March 2, 1999, Conformity Court 
Decision.'' This guidance was finalized in the Transportation 
Conformity Rule Amendments for the ``New 8-Hour Ozone and 
PM<INF>2.5</INF> 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 MVEBs 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 submission 
includes VOC and NO<INF>X</INF> MVEBs for the Knoxville Area for 2024. 
EPA reviewed both the VOCs and NO<INF>X</INF> MVEBs through the 
adequacy process. The Tennessee SIP submission, including the Knoxville 
Area VOC and NO<INF>X</INF> MVEBs was open for public comment on EPA's 
adequacy Web site on June 15, 2010, found at: http://www.epa.gov/otaq/stateresources/transconf/currsips.htm. The public comment period on 
adequacy of the 2024 VOC and NO<INF>X</INF> MVEBs for Knoxville Area 
closed on July 15, 2010. EPA did not receive any comments on the 
adequacy of the

[[Page 62039]]

MVEBs, nor did EPA receive any requests for the SIP submittal.
    EPA intends to make its determination on the adequacy of the 2024 
MVEBs for the Knoxville Area for transportation conformity purposes in 
the near future by completing the adequacy process that was started on 
June 15, 2010. After EPA finds the 2024 MVEBs adequate or approves 
them, the new MVEBs for VOC and NO<INF>X</INF> must be used, for future 
transportation conformity determinations. For required regional 
emissions analysis years prior to 2024, the conformity test will be the 
applicable interim emissions test applicable for the Area per 40 CFR 
Part 93 (the transportation conformity rule). For required regional 
emissions analysis years that involve 2024 or beyond, the applicable 
budgets will be the new 2024 MVEBs. The 2024 MVEBs are defined in 
section VII of this proposed rulemaking.

IX. What is EPA's analysis of the proposed 2007 base year emissions 
inventory for the Knoxville Area?

    As discussed above, section 172(c)(3) of the CAA requires areas to 
submit a base year emissions inventory. As part of Tennessee's request 
to redesignate the Knoxville Area, the state submitted 2007 base year 
emissions inventory to meet this requirement. Emissions contained in 
the submittal cover the general source categories of point sources, 
area sources, on-road mobile sources, and non-road mobile sources. All 
emission summaries were accompanied by source-specific descriptions of 
emission calculation procedures and sources of input data. On-road 
mobile emissions were prepared using the MOBILE6.2 emissions model. 
Tennessee's submittal documents 2007 emissions in the Knoxville Area in 
units of tons per summer day. Table 8 below provides a summary of the 
2007 summer day emissions of VOC and NO<INF>X</INF> for the Knoxville 
Area.

    Table 8--Knoxville Area 2007 Summer Day Emissions for VOC and NOX
                           [Summer season tpd]
------------------------------------------------------------------------
              Source                       NOX                VOC
------------------------------------------------------------------------
Point Source Total................              42.69               7.32
Area Source Total.................               2.07              33.25
On-Road Mobile Source Total.......              71.83              36.77
Non-Road Mobile Source Total......              13.16              34.26
Non-Road Mobile Source Total......               5.44               0.68
                                   -------------------------------------
    Total for all Sources.........             135.19             112.28
------------------------------------------------------------------------

    EPA is proposing to approve this 2007 base year inventory as 
meeting the section 172(c)(3) emissions inventory requirement.

X. Proposed Action on the Redesignation Request and Maintenance Plan 
SIP Revision Including Approval of the 2024 NO<INF>X</INF> and VOC 
MVEBs for the Knoxville Area

    EPA is proposing to make the determination that the Knoxville Area 
has met the criteria for redesignation from nonattainment to attainment 
for the 1997 8-hour ozone NAAQS. Further, EPA is proposing to approve 
Tennessee's July 14, 2010, SIP submittal including the redesignation 
request for the Knoxville Area. Additionally, EPA is proposing to 
approve the baseline emissions inventory for the Knoxville Area for the 
1997 8-hour ozone NAAQS. EPA believes that the redesignation request 
and monitoring data demonstrate that the Knoxville Area has attained 
the 1997 8-hour ozone NAAQS.
    EPA is also proposing to approve the maintenance plan for the 
Knoxville Area included as part of the July 14, 2010, SIP revision as 
meeting the requirements of section 175A of the CAA. The maintenance 
plan includes NO<INF>X</INF> and VOC MVEBs for 2024. EPA is proposing 
to approve the 2024 NO<INF>X</INF> and VOC MVEBs for the Knoxville Area 
because the maintenance plan demonstrates that, in light of expected 
emissions for all source categories, the Area will continue to maintain 
the 1997 8-hour ozone NAAQS.
    Further as part of today's action, EPA is describing the status of 
its adequacy determination for the 2024 NO<INF>X</INF> and VOC MVEBs, 
in accordance with 40 CFR 93.118(f)(1). Within 24 months from the 
effective date of EPA's adequacy finding 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 NO<INF>X</INF> and VOC MVEBs pursuant to 40 CFR 
93.104(e).

XI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. 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, this 
proposed action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this proposed action:
    <bullet> Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
    <bullet> Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
    <bullet> Is 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.);
    <bullet> 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);
    <bullet> Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
    <bullet> Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
    <bullet> Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
    <bullet> Is 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
    <bullet> Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using

[[Page 62040]]

practicable and legally permissible methods, under Executive Order 
12898 (59 FR 7629, February 16, 1994).
    In addition, this proposed rule does not have tribal implications 
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the State, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects

40 CFR Part 52

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

40 CFR Part 81

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

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

    Dated: September 28, 2010.
Gwendolyn Keyes Fleming,
Regional Administrator, Region 4.
[FR Doc. 2010-25291 Filed 10-6-10; 8:45 am]
BILLING CODE 6560-50-P


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