Document ID: EPA-R04-OAR-2012-0773-0001
Agency: epa
Document Type: Proposed Rule
Title: Air Quality State Implementation Plans; Approvals and Promulgations: Kentucky; Redesignation of the Kentucky Portion of the Louisville 1997 Annual PM2.5 Nonattainment Area to Attainment
Posted Date: 2017-01-11T05:00Z

[Federal Register Volume 82, Number 7 (Wednesday, January 11, 2017)]
[Proposed Rules]
[Pages 3234-3250]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00324]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R04-OAR-2012-0773; FRL-9957-92-Region 4]

Air Plan Approval and Air Quality Designation; KY; Redesignation 
of the Kentucky Portion of the Louisville 1997 Annual PM2.5 
Nonattainment Area to Attainment

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On March 5, 2012, the Commonwealth of Kentucky, through the 
Kentucky Energy and Environment Cabinet, Division for Air Quality 
(DAQ), submitted a request for the Environmental Protection Agency 
(EPA) to redesignate the portion of Kentucky that is within the bi-
state Louisville, KY-IN fine particulate matter (PM2.5) 
nonattainment area (hereafter referred to as the ``bi-state Louisville 
Area'' or ``Area'') to attainment for the 1997 Annual PM2.5 
national ambient air quality standards (NAAQS) and to approve a state 
implementation plan (SIP) revision containing a maintenance plan for 
the Area. EPA is proposing to approve the Commonwealth's plan for 
maintaining the 1997 Annual PM2.5 NAAQS in the Area, 
including the motor vehicle emission budgets (MVEBs) for nitrogen oxide 
(NOX) and PM2.5 for the years 2015 and 2025 for 
the bi-state Louisville Area, and incorporate it into the SIP, and to 
redesignate the Kentucky portion of the Area to attainment for the 1997 
Annual PM2.5 NAAQS. EPA is also notifying the public of the 
status of EPA's adequacy determination for the MVEBs for the bi-state 
Louisville Area.

[[Page 3235]]

DATES: Comments must be received on or before February 10, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2012-0773 at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. EPA may publish any comment 
received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e., on the web, cloud, or other file sharing 
system). For additional submission methods, the full EPA public comment 
policy, information about CBI or multimedia submissions, and general 
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Madolyn Sanchez of the Air Regulatory 
Management Section, in the Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 
30303-8960. Madolyn Sanchez may be reached by phone at (404) 562-9644, 
or via electronic mail at sanchez.madolyn@epa.gov.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. What are the actions EPA is proposing to take?
II. What is the background for EPA's proposed actions?
III. What are the criteria for redesignation?
IV. Why is EPA proposing these actions?
V. What is EPA's analysis of the request?
VI. What is the effect of the January 4, 2013, D.C. Circuit decision 
regarding PM2.5 implementation under Subpart 4?
VII. What is EPA's analysis of the proposed NOX and 
PM2.5 MVEBs for the bi-state Louisville area?
VIII. What is the status of EPA's adequacy determination for the 
proposed NOX and PM2.5 MVEBs for 2015 and 2025 
for the bi-state Louisville area?
IX. What is the effect of EPA's proposed actions?
X. Proposed Actions
XI. Statutory and Executive Order Reviews

I. What are the actions EPA is proposing to take?

    EPA is proposing to take the following two separate but related 
actions: (1) To approve Kentucky's plan for maintaining the 1997 Annual 
PM2.5 NAAQS (maintenance plan), including the associated 
MVEBs for the bi-state Louisville Area, and incorporate it into the 
Kentucky SIP, and (2) to redesignate the Kentucky portion of the bi-
state Louisville Area to attainment for the 1997 Annual 
PM2.5 NAAQS. EPA is also notifying the public of the status 
of EPA's adequacy determination for the MVEBs for the bi-state 
Louisville Area. The bi-state Louisville Area consists of Bullitt and 
Jefferson Counties in Kentucky as well as Clark and Floyd Counties and 
a portion of Jefferson County (Madison Township) in Indiana.\1\ These 
proposed actions are summarized below and described in greater detail 
throughout this notice of proposed rulemaking.
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    \1\ In a separate submittal, EPA received the redesignation 
request and maintenance plan for the Indiana portion of this Area. 
On September 9, 2016, EPA took final action to determine that the 
entire bi-state Louisville Area has attained the 1997 
PM2.5 standard and to approve Indiana's redesignation 
request and maintenance plan. See 81 FR 62390.
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    EPA is proposing to approve Kentucky's maintenance plan for its 
portion of the bi-state Louisville Area as meeting the requirements of 
section 175A (such approval being one of the Clean Air Act (CAA or Act) 
criteria for redesignation to attainment status). The maintenance plan 
is designed to help keep the bi-state Louisville Area in attainment for 
the 1997 Annual PM2.5 NAAQS through 2025. As explained in 
section V below, EPA is also proposing to determine that attainment can 
be maintained through 2027. The maintenance plan includes 2015 and 2025 
MVEBs for NOx and direct PM2.5 for the bi-state Louisville 
Area. EPA is proposing to approve these MVEBs and incorporate them into 
the Kentucky SIP.
    EPA also proposes to determine that the Kentucky portion of the bi-
state Louisville Area has met the requirements for redesignation under 
section 107(d)(3)(E) of the CAA. Accordingly, in this action, EPA is 
proposing to approve a request to change the legal designation of 
Bullitt and Jefferson Counties within the Kentucky portion of the bi-
state Louisville Area, as found at 40 CFR part 81, from nonattainment 
to attainment for the 1997 Annual PM2.5 NAAQS.
    EPA is also notifying the public of the status of EPA's adequacy 
process for the 2015 and 2025 MVEBs for NOX and 
PM2.5 for the bi-state Louisville Area. The Adequacy comment 
period for the MVEBs for the bi-state Louisville Area began on January 
24, 2012, with EPA's posting of the availability on EPA's Adequacy Web 
site (http://www.epa.gov/otaq/stateresources/transconf/currsips.htm). 
The Adequacy comment period for these MVEBs closed on February 23, 
2012. No comments, adverse or otherwise, were received through the 
Adequacy process. Please see section VIII of this notice of proposed 
rulemaking for further explanation of this process and for more details 
on the MVEBs.
    In summary, this proposed rulemaking is in response to Kentucky's 
March 5, 2012, redesignation request and associated SIP submission that 
addresses the specific issues summarized above and the necessary 
elements for redesignation described in section 107(d)(3)(E) of the CAA 
for the redesignation of the Kentucky portion of the bi-state 
Louisville Area to attainment for the 1997 Annual PM2.5 
NAAQS.

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

    Fine particle pollution can be emitted directly or formed 
secondarily in the atmosphere.\2\ The main precursors of secondary 
PM2.5 are sulfur dioxide (SO2), NOX, 
ammonia, and volatile organic compounds (VOCs). See 72 FR 20586, 20589 
(April 25, 2007). Sulfates are a type of secondary particle formed from 
SO2 emissions from power plants and industrial facilities. 
Nitrates, another common type of secondary particle, are formed from 
NOX emissions from power plants, automobiles, and other 
combustion sources.
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    \2\ Fine particulate matter (PM2.5) refers to 
airborne particles less than or equal to 2.5 micrometers in 
diameter. Although treated as a single pollutant, fine particles 
come from many different sources and are composed of many different 
compounds. In the bi-state Louisville Area, one of the largest 
components of PM2.5 is sulfate, which is formed through 
various chemical reactions from the precursor SO2. The 
other major component of PM2.5 is organic carbon, which 
originates predominantly from biogenic emission sources. Nitrate, 
which is formed from the precursor NOX, is also a 
component of PM2.5. Crustal materials from windblown dust 
and elemental carbon from combustion sources are less significant 
contributors to total PM2.5. VOCs, also precursors for 
PM, are emitted from a variety of sources, including motor vehicles, 
chemical plants, refineries, factories, consumer and commercial 
products, and other industrial sources. VOCs are also emitted by 
natural sources such as vegetation.
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    On July 18, 1997, EPA promulgated the first air quality standards 
for PM2.5. EPA promulgated an annual standard at a level of 
15.0 micrograms per cubic meter ([mu]g/m\3\), based on a 3-year average 
of annual mean PM2.5 concentrations. In the same rulemaking, 
EPA promulgated a 24-hour standard of 65 [mu]g/m\3\, based

[[Page 3236]]

on a 3-year average of the 98th percentile of 24-hour concentrations. 
On October 17, 2006 (71 FR 61144), EPA retained the annual average 
NAAQS at 15.0 [mu]g/m\3\ but revised the 24-hour NAAQS to 35 [mu]g/
m\3\, based again on the 3-year average of the 98th percentile of 24-
hour concentrations.\3\ Under EPA regulations at 40 CFR part 50, the 
primary and secondary 1997 Annual PM2.5 NAAQS are attained 
when the annual arithmetic mean concentration, as determined in 
accordance with 40 CFR part 50, Appendix N, is less than or equal to 
15.0 [mu]g/m\3\ at all relevant monitoring sites in the subject area 
averaged over a 3-year period.
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    \3\ In response to legal challenges of the annual standard 
promulgated in 2006, the United States Court of Appeals for the 
District of Columbia Circuit (D.C. Circuit) remanded that NAAQS to 
EPA for further consideration. See American Farm Bureau Federation 
and National Pork Producers Council, et al. v. EPA, 559 F.3d 512 
(D.C. Cir. 2009). However, given that the 1997 and 2006 Annual NAAQS 
are essentially identical, attainment of the 1997 Annual NAAQS would 
also indicate attainment of the remanded 2006 Annual NAAQS.
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    On January 5, 2005, at 70 FR 944, and supplemented on April 14, 
2005, at 70 FR 19844, EPA designated the bi-state Louisville Area as 
nonattainment for the Annual 1997 PM2.5 NAAQS. On November 
13, 2009, at 74 FR 58688, EPA promulgated designations for the 24-hour 
PM2.5 standard established in 2006, designating the bi-state 
Louisville Area as attainment for that NAAQS. That action clarified 
that the bi-state Louisville Area was classified unclassifiable/
attainment for the 24-hour NAAQS promulgated in 1997. EPA did not 
promulgate designations for the 2006 Annual PM2.5 NAAQS 
since that NAAQS was essentially identical to the 1997 Annual 
PM2.5 NAAQS. Therefore, the bi-state Louisville Area is 
designated nonattainment for the 1997 Annual PM2.5 NAAQS, 
and this proposed action only addresses this designation.
    All 1997 PM2.5 NAAQS areas were designated under subpart 
1 of title I, part D, of the CAA. Subpart 1 contains the general 
requirements for nonattainment areas for any pollutant governed by a 
NAAQS and is less prescriptive than the other subparts of title I, part 
D. On April 25, 2007 (72 FR 20586), EPA promulgated its Clean Air Fine 
Particle Implementation Rule, codified at 40 CFR part 51, subpart Z, in 
which the Agency provided guidance for state and tribal plans to 
implement the 1997 PM2.5 NAAQS. The United States Court of 
Appeals for the District of Columbia Circuit (D.C. Circuit) remanded 
the Clean Air Fine Particle Implementation Rule and the final rule 
entitled ``Implementation of the New Source Review (NSR) Program for 
Particulate Matter Less than 2.5 Micrometers (PM2.5)'' (73 
FR 28321, May 16, 2008) (collectively, ``1997 PM2.5 
Implementation Rules'') to EPA on January 4, 2013, in Natural Resources 
Defense Council v. EPA, 706 F.3d 428 (D.C. Cir. 2013). The court found 
that EPA erred in implementing the 1997 PM2.5 NAAQS pursuant 
to the general implementation provisions of subpart 1 of part D of 
title I of the CAA, rather than the particulate matter-specific 
provisions of subpart 4 of part D of title I. The effect of the court's 
ruling on this proposed redesignation action is discussed in detail in 
section VI of this notice.
    On July 29, 2016, EPA issued a rule entitled, ``Fine Particulate 
Matter National Ambient Air Quality Standards: State Implementation 
Plan Requirements'' (PM2.5 SIP Requirements Rule) that 
clarifies how states should meet the statutory SIP requirements that 
apply to areas designated nonattainment for any PM2.5 NAAQS 
under subparts 1 and 4. See 81 FR 58010 (August 24, 2016). It does so 
by establishing regulatory requirements and providing guidance that is 
applicable to areas that are currently designated nonattainment for 
existing PM2.5 NAAQS and areas that are designated 
nonattainment for any PM2.5 NAAQS in the future. In 
addition, the rule responds to the D.C. Circuit's remand of the 1997 
PM2.5 Implementation Rules. As a result, the requirements of 
the rule also govern future actions associated with states' ongoing 
implementation efforts for the 1997 and 2006 PM2.5 NAAQS. 
The rule also revokes the 1997 primary Annual NAAQS for areas 
designated as attainment for that standard because EPA revised the 
primary annual standard in 2012.

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 provided the following criteria are met: (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 under section 110 and part D of title I 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 the Agency supplemented this 
guidance on April 28, 1992 (57 FR 18070). EPA has provided further 
guidance on processing redesignation requests in the following 
documents:
    1. ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (hereinafter referred to as the 
``Calcagni Memorandum'');
    2. ``State Implementation Plan (SIP) Actions Submitted in Response 
to Clean Air Act (CAA) Deadlines,'' Memorandum from John Calcagni, 
Director, Air Quality Management Division, October 28, 1992; and
    3. ``Part D New Source Review (Part D NSR) Requirements for Areas 
Requesting Redesignation to Attainment,'' Memorandum from Mary D. 
Nichols, Assistant Administrator for Air and Radiation, October 14, 
1994.

IV. Why is EPA proposing these actions?

    On March 5, 2012, Kentucky requested that EPA redesignate the 
Kentucky portion of the bi-state Louisville Area to attainment for the 
1997 Annual PM2.5 NAAQS.\4\ EPA's evaluation indicates that 
the Kentucky portion of the bi-state Louisville Area meets the 
requirements for redesignation set forth in section 107(d)(3)(E), 
including the maintenance plan requirements under section 175A of the 
CAA. As a result of these proposed findings, EPA is proposing to take 
the two related actions summarized in section I of this notice.
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    \4\ For the reasons discussed in footnote 5, below, EPA's 
proposed action on Kentucky's redesignation request was delayed due 
to a technical systems audit on the PM2.5 laboratory in 
Kentucky that invalidated certain Jefferson County monitoring data 
collected in 2012 and 2013.
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V. What is EPA's analysis of the request?

    As stated above, in accordance with the CAA, EPA proposes to 
approve the 1997 Annual PM2.5 NAAQS maintenance plan, 
including the associated MVEBs, for the Kentucky portion of the bi-
state Louisville Area and incorporate it into the Kentucky

[[Page 3237]]

SIP, and redesignate the Kentucky portion of the bi-state Louisville 
Area to attainment for the 1997 Annual PM2.5 NAAQS. The five 
redesignation criteria provided under CAA section 107(d)(3)(E) are 
discussed in greater detail for the Area in the following paragraphs of 
this section.

Criteria (1)--The Bi-State Louisville Area Has Attained the 1997 Annual 
PM2.5 NAAQS

    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has attained the applicable 
NAAQS (CAA section 107(d)(3)(E)(i)). For PM2.5, an area may 
be considered to be attaining the 1997 Annual PM2.5 NAAQS if 
it meets the standards, as determined in accordance with 40 CFR 50.13 
and Appendix N of part 50, based on three complete, consecutive 
calendar years of quality-assured air quality monitoring data. To 
attain the 1997 Annual PM2.5 NAAQS, the 3-year average of 
the annual arithmetic mean concentration, as determined in accordance 
with 40 CFR part 50, Appendix N, must be less than or equal to 15.0 
[mu]g/m\3\ at all relevant monitoring sites in the subject area over a 
3-year period. The relevant data must be collected and quality-assured 
in accordance with 40 CFR part 58 and recorded in the EPA Air Quality 
System (AQS) database. The monitors generally should have remained at 
the same location for the duration of the monitoring period required 
for demonstrating attainment.
    On September 9, 2016, EPA determined that the bi-state Louisville 
Area has attained the 1997 Annual PM2.5 NAAQS based on 2013-
2015 data.\5\ See 81 FR 62390. In that action, EPA reviewed valid 
PM2.5 monitoring data from the bi-state Louisville Area for 
the 1997 Annual PM2.5 NAAQS from 2013-2015 and determined 
that the design value for the Area is less than the standard of 15.0 
[mu]g/m\3\ for that time period. The PM2.5 design values for 
monitors with complete data are summarized in Table 1, below.\6\
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    \5\ EPA made this determination in association with the 
redesignation of the Indiana portion of the Area. EPA initially 
proposed to redesignate that portion of the Area to attainment based 
on monitoring data from 2009-2011 and preliminary data from 2012. 
However, in August 2013, EPA issued results of a technical systems 
audit on the PM2.5 laboratory in Kentucky that 
invalidated the Jefferson County monitoring data for all of 2012, 
and a small portion of the monitoring data from 2013 (a portion of 
the first quarter). Because there was not enough data to support an 
attainment determination for the Area, EPA could not proceed with 
the redesignation of the bi-state Louisville Area. Kentucky began 
collecting valid data in early 2013 (the end of the first quarter) 
after the monitoring audit issues had been addressed, resulting in a 
valid design value for the area using 2013-2015 data.
    \6\ See 81 FR 62390 for additional information regarding the 
evaluation of 2013-2015 data for the Area.

Table 1--1997 Annual PM2.5 Design Values for Monitors With Complete Data
              in the Bi-State Louisville Area for 2013-2015
------------------------------------------------------------------------
                                                        2013-2015 Design
              County                 Monitoring site     value ([mu]g/
                                                             m\3\)
------------------------------------------------------------------------
Clark County, IN..................          180190006               11.4
                                            180190008                9.3
Floyd County, IN..................          180431004               10.0
Jefferson County, KY..............          211110043               11.3
                                            211110051               11.7
                                            211110067               10.5
------------------------------------------------------------------------

    As shown in Table 1 above, the bi-state Louisville Area has a 2013-
2015 design value of 11.7 [mu]g/m\3\, which is below the 1997 Annual 
PM2.5 NAAQS. For this proposed action, EPA has reviewed 2016 
preliminary monitoring data for the Area and proposes to find that the 
preliminary data does not indicate a violation of the NAAQS.\7\ EPA 
will not take final action to approve the redesignation if the 3-year 
design value exceeds the NAAQS prior to EPA finalizing the 
redesignation. As discussed in more detail below, Kentucky has 
committed to continue monitoring in the Kentucky portion of the Area in 
accordance with 40 CFR part 58.
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    \7\ This preliminary data is available at EPA's air data Web 
site: http://aqsdr1.epa.gov/aqsweb/aqstmp/airdata/download_files.html#Daily.
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Criteria (2)--Kentucky Has a Fully Approved SIP Under Section 110(k) 
for the Kentucky Portion of the Bi-State Louisville Area and Criteria 
(5)--Kentucky Has Met All Applicable Requirements Under Section 110 and 
Part D of the CAA

    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the state has met all applicable 
requirements under section 110 and part D of title I of the CAA (CAA 
section 107(d)(3)(E)(v)) and that the state has a fully approved SIP 
under section 110(k) for the area (CAA section 107(d)(3)(E)(ii)). EPA 
proposes to find that the Commonwealth has met all applicable SIP 
requirements for the Kentucky portion of the Area under section 110 of 
the CAA (general SIP requirements) for purposes of redesignation. 
Additionally, EPA proposes to find that the Kentucky SIP satisfies the 
criterion that it meets applicable SIP requirements for purposes of 
redesignation under part D of title I of the CAA in accordance with 
section 107(d)(3)(E)(v). Further, 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, if applicable, that they are fully approved 
under section 110(k). SIPs must be fully approved only with respect to 
requirements that were applicable prior to submittal of the complete 
redesignation request.
a. The Kentucky Portion of the Bi-State Louisville Area Has Met All 
Applicable Requirements Under Section 110 and Part D of the CAA
    General SIP requirements. General SIP elements and requirements are 
delineated in section 110(a)(2) of title I, part A of the CAA. These 
requirements include, but are not limited to, the following: submittal 
of a SIP that has been adopted by the state after reasonable public 
notice and hearing;

[[Page 3238]]

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 interstate 
transport of air pollutants. The section 110(a)(2)(D) requirements for 
a state are not linked with a particular nonattainment area's 
designation and classification in that state. EPA believes that the 
requirements linked with a particular nonattainment area's designation 
and classifications are the relevant measures to evaluate in reviewing 
a redesignation request. The transport SIP submittal requirements, 
where applicable, continue to apply to a state regardless of the 
designation of any one particular area in the state. Thus, EPA does not 
believe that the CAA's interstate transport requirements should be 
construed to be applicable requirements for purposes of redesignation.
    In addition, EPA believes that other section 110 elements that are 
neither connected with nonattainment plan submissions nor linked with 
an area's attainment status are not applicable requirements for 
purposes of redesignation. The area will still be subject to these 
requirements after the area is redesignated. The section 110 and part D 
requirements which are linked with a particular area's designation and 
classification are the relevant measures to evaluate in reviewing a 
redesignation request. This approach is consistent with EPA's existing 
policy on applicability (i.e., for redesignations) of conformity and 
oxygenated fuels requirements, as well as with section 184 ozone 
transport requirements. See Reading, Pennsylvania, proposed and final 
rulemakings (61 FR 53174-53176, October 10, 1996), (62 FR 24826, May 7, 
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 has reviewed Kentucky's SIP and has preliminarily concluded 
that it meets the general SIP requirements under section 110(a)(2) of 
the CAA to the extent they are applicable for purposes of 
redesignation. EPA has previously approved provisions of Kentucky's SIP 
addressing CAA section 110(a)(2) requirements including provisions 
addressing the 1997 Annual PM2.5 NAAQS. See 77 FR 60307 
(October 3, 2012) and 79 FR 26143 (May 7, 2014). These requirements 
are, however, statewide requirements that are not linked to the 
PM2.5 nonattainment status of the Area. Therefore, EPA 
believes these SIP elements are not applicable for purposes of this 
redesignation.
    Title I, part D, subpart 1 applicable SIP requirements. EPA 
proposes to determine that the Kentucky SIP meets the applicable SIP 
requirements for the Kentucky portion of the Area for purposes of 
redesignation under part D of the CAA. Subpart 1 of part D, comprised 
of sections 172-179B of the CAA, sets forth the basic nonattainment 
requirements applicable to all nonattainment areas. All areas that were 
designated nonattainment for the 1997 Annual PM2.5 NAAQS 
were designated under subpart 1 of the CAA. For purposes of evaluating 
this redesignation request, the applicable part D, subpart 1 SIP 
requirements are contained in sections 172(c)(1)-(9) and in section 
176. A thorough discussion of the requirements contained in sections 
172 and 176 can be found in the General Preamble for Implementation of 
title I. See 57 FR 13498 (April 16, 1992). Section VI of this proposed 
rulemaking notice discusses the relationship between this proposed 
redesignation action and subpart 4 of part D.
    Subpart 1, section 172 Requirements. Under section 172, states with 
nonattainment areas must submit plans providing for timely attainment 
and meeting a variety of other requirements. EPA's longstanding 
interpretation of the nonattainment planning requirements of section 
172 is that once an area is attaining the NAAQS, those requirements are 
not ``applicable'' for purposes of CAA section 107(d)(3)(E)(ii) and 
therefore need not be approved into the SIP before EPA can redesignate 
the area. In the 1992 General Preamble for Implementation of Title I, 
EPA set forth its interpretation of applicable requirements for 
purposes of evaluating redesignation requests when an area is attaining 
a standard. See 57 FR 13498, 13564 (April 16, 1992). EPA noted that the 
requirements for reasonable further progress (RFP) and other measures 
designed to provide for attainment do not apply in evaluating 
redesignation requests because those nonattainment planning 
requirements ``have no meaning'' for an area that has already attained 
the standard. Id. This interpretation was also set forth in the 
Calcagni Memorandum. EPA's understanding of section 172 also forms the 
basis of its Clean Data Policy, which suspends a state's obligation to 
submit most of the attainment planning requirements that would 
otherwise apply, including an attainment demonstration and planning 
SIPs to provide for RFP, reasonably available control measures (RACM), 
and contingency measures under section 172(c)(9).
    On March 9, 2011, EPA determined that the bi-state Louisville Area 
had attained the 1997 annual PM2.5 NAAQS based upon ambient 
air monitoring data for the 2007-2009 period, which showed that the 
area had monitored attainment of the annual PM2.5 NAAQS. As 
a result of this determination and in accordance with EPA's Clean Data 
Policy, the requirements for the area to submit an attainment 
demonstration and associated RACM, a RFP plan, contingency measures, 
and other planning SIP revision related to attainment of the standards 
are suspended for so long as the area continues to attain the 1997 
annual PM2.5 NAAQS.\8\ Therefore, Kentucky withdrew the 
aforementioned PM2.5 attainment demonstration SIP revision 
except for the portion addressing emissions inventory requirements 
under section 172(c)(3). However, as discussed below, the United States 
Court of Appeals for the Sixth Circuit (Sixth Circuit) recently issued 
an opinion in Sierra Club v. EPA, 793 F.3d 656 (6th Cir. 2015), that is 
inconsistent with EPA's longstanding interpretation regarding section 
107(d)(3)(E)(ii) and requires that subpart 1 RACM be approved into the 
SIP before EPA can redesignate an area subject to section 172(c)(1).
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    \8\ At the time of EPA's March 9, 2011 action, EPA's Clean Data 
Policy for PM2.5 was codified at 40 CFR 51.1004(c). This 
regulation was promulgated as part of the 1997 PM2.5 
NAAQS implementation rule that was subsequently challenged and 
remanded in NRDC v. EPA, 706 F.3d 428 (D.C. Cir. 2013), as discussed 
in Section VI of this notice. However, the Clean Data Policy portion 
of the implementation rule was not at issue in that case. In the 
PM2.5 SIP Requirements Rule, EPA updated the Clean Data 
Policy for the PM2.5 NAAQS and moved it to 40 CFR 
51.1015.
---------------------------------------------------------------------------

    Section 172(c)(1) requires the plans for all nonattainment areas to 
provide

[[Page 3239]]

for the implementation of RACM as expeditiously as practicable and to 
provide for attainment of the NAAQS. 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.
    On July 14, 2015, the Sixth Circuit vacated EPA's redesignation of 
the Indiana and Ohio portions of the Cincinnati nonattainment area for 
the 1997 PM2.5 NAAQS because EPA had not approved RACM for 
that area into the Indiana and Ohio SIPs pursuant to CAA section 
172(c)(1). Sierra Club v. EPA, 793 F.3d 656. The Court concluded that 
``a State seeking redesignation `shall provide for the implementation' 
of RACM/RACT [reasonably available control technology], even if those 
measures are not strictly necessary to demonstrate attainment with the 
PM2.5 NAAQS. If the State has not done so, EPA cannot `fully 
approve' the area's SIP, and redesignation to attainment status is 
improper.'' Sierra Club, 793 F.3d at 670. EPA is bound by the Sixth 
Circuit's decision within the Court's jurisdiction.\9\
---------------------------------------------------------------------------

    \9\ Kentucky, Michigan, Ohio, and Tennessee are located within 
the Sixth Circuit's jurisdiction.
---------------------------------------------------------------------------

    On August 9, 2016, Kentucky submitted a SIP revision containing a 
RACM determination for the Kentucky portion of the Louisville Area, in 
accordance with CAA 172(c)(1) and the Sixth Circuit decision in Sierra 
Club, for incorporation into the Kentucky SIP in support of the 
Commonwealth's redesignation request. Although EPA continues to believe 
that subpart 1 RACM is not an applicable requirement under section 
107(d)(3)(E) for an area that has already attained the 1997 Annual 
PM2.5 NAAQS, on October 21, 2016, EPA proposed to approve 
Kentucky's SIP revision to incorporate the subpart 1 RACM determination 
for the Kentucky portion of the Area into the SIP.\10\ See 81 FR 72755. 
EPA did not receive any adverse comments on the proposal, and on 
December 15, 2016, the EPA Region 4 Regional Administrator took final 
action to approve Kentucky's subpart 1 RACM determination SIP 
submission. Publication in the Federal Register is pending.
---------------------------------------------------------------------------

    \10\ The EPA Region 4 Regional Administrator signed a memorandum 
on July 20, 2015, seeking concurrence from the Director of EPA's Air 
Quality Policy Division (AQPD) in the Office of Air Quality Planning 
and Standards to act inconsistent with EPA's interpretation of CAA 
sections 107(d)(3)(E) and 172(c)(1) when taking action on pending 
and future redesignation requests in Kentucky and Tennessee because 
the Region is bound by the Sixth Circuit's decision in Sierra Club 
v. EPA. The AQPD Director issued her concurrence on July 22, 2015. 
This memorandum is not required to satisfy EPA's regional 
consistency regulations. See 40 CFR 56.5(b)(1); 81 FR 51102 (August 
3, 2016).
---------------------------------------------------------------------------

    Because attainment has been reached in the Area, the section 
172(c)(2) requirement that nonattainment plans contain provisions 
promoting reasonable further progress toward attainment is not relevant 
for purposes of redesignation. In addition, because the Area has 
attained the standard and is no longer subject to a RFP requirement, 
the requirement to submit the section 172(c)(9) contingency measures is 
not applicable for purposes of redesignation. 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)(3) requires submission and approval of a 
comprehensive, accurate, and current inventory of actual emissions. On 
August 2, 2012 (77 FR 45956), EPA approved Kentucky's 2002 base-year 
emissions inventory for the bi-state Louisville Area.
    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.'' The Commonwealth has demonstrated that 
the Kentucky portion of the bi-state Louisville Area will be able to 
maintain the NAAQS without part D NSR in effect, and therefore Kentucky 
need not have fully approved part D NSR programs prior to approval of 
the redesignation request. Kentucky's PSD program will become effective 
in the Kentucky portion of the bi-state Louisville Area upon 
redesignation to attainment.
    Section 172(c)(7) requires the SIP to meet the applicable 
provisions of section 110(a)(2). As noted above, EPA believes that the 
Kentucky SIP meets the requirements of section 110(a)(2) applicable for 
purposes of redesignation.
    176 Conformity Requirements. Section 176(c) of the CAA requires 
states to establish criteria and procedures to ensure that federally-
supported or funded projects conform to the air quality planning goals 
in the applicable SIP. The requirement to determine conformity applies 
to transportation plans, programs and projects that are developed, 
funded or approved under title 23 of the United States Code (U.S.C.) 
and the Federal Transit Act (transportation conformity) 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 that it is reasonable to interpret the conformity SIP 
requirements \11\ 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 v. EPA, 
265 F.3d 426 (6th Cir. 2001) (upholding this interpretation); See 60 FR 
62748 (December 7, 1995). Nonetheless, Kentucky has an approved 
conformity SIP for the bi-state Louisville Area. See 75 FR 20780 (April 
21, 2010).
---------------------------------------------------------------------------

    \11\ 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 MVEBs that are established in 
control strategy SIPs and maintenance plans.
---------------------------------------------------------------------------

    For these reasons, EPA proposes to find that Kentucky has satisfied 
all applicable requirements for purposes of redesignation of the Area 
under section 110 and part D of the CAA.
b. The Kentucky Portion of the Area Has a Fully Approved Applicable SIP 
Under Section 110(k) of the CAA
    EPA has fully approved the applicable Kentucky SIP for the Kentucky 
portion of the bi-state Louisville Area for the 1997 Annual 
PM2.5 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

[[Page 3240]]

Memorandum at p. 3; Southwestern Pennsylvania Growth Alliance v. 
Browner, 144 F.3d 984 (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, Kentucky has adopted and submitted, and EPA 
has fully approved at various times, provisions addressing the various 
SIP elements applicable for the 1997 Annual PM2.5 NAAQS in 
the Kentucky portion of the bi-state Louisville Area (e.g., 77 FR 
60307, October 3, 2012).
    As indicated above, EPA believes that the section 110 elements not 
connected with nonattainment plan submissions and not linked to an 
area's nonattainment status are not applicable requirements for 
purposes of redesignation.

Criteria (3)--The Air Quality Improvement in the Bi-State Louisville 
Area Is Due to Permanent and Enforceable Reductions in Emissions 
Resulting From Implementation of the SIP and Applicable Federal Air 
Pollution Control Regulations and Other Permanent and Enforceable 
Reductions

    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the air quality improvement in the area 
is due to permanent and enforceable reductions in emissions resulting 
from implementation of the SIP and applicable federal air pollution 
control regulations and other permanent and enforceable reductions (CAA 
section 107(d)(3)(E)(iii)). EPA has preliminarily determined that 
Kentucky has demonstrated that the observed air quality improvement in 
the Kentucky portion of the bi-state Louisville Area is due to 
permanent and enforceable reductions in emissions resulting from 
implementation of the SIP and federal measures.
    Federal measures enacted in recent years have resulted in permanent 
emission reductions in particulate matter and its precursors. The 
federal measures that have been implemented include:
    Tier 2 vehicle standards and low-sulfur gasoline. Implementation of 
the Tier 2 vehicle standards began in 2004, and as newer, cleaner cars 
enter the national fleet, these standards continue to significantly 
reduce NOX emissions. The standards require all classes of 
passenger vehicles in any manufacturer's fleet to meet an average 
standard of 0.07 grams of NOX per mile. In addition, 
starting in January of 2006, the Tier 2 rule reduced the allowable 
sulfur content of gasoline to 30 parts per million (ppm). Most gasoline 
sold prior to this had a sulfur content of approximately 300 ppm. EPA 
expects that these standards will reduce NOX emissions from 
vehicles by approximately 74 percent by 2030, translating to nearly 3 
million tons annually by 2030.
    Heavy-duty gasoline and diesel highway vehicle standards & ultra 
low-sulfur diesel rule. On October 6, 2000 (65 FR 59896), EPA 
promulgated a rule to reduce NOX and VOC emissions from 
heavy-duty gasoline and diesel highway vehicles that began to take 
effect in 2004. On January 18, 2001 (66 FR 5002), EPA promulgated a 
second phase of standards and testing procedures which began in 2007 to 
reduce particulate matter from heavy-duty highway engines and reduced 
the maximum highway diesel fuel sulfur content from 500 ppm to 15 ppm. 
The total program should achieve a 90 percent reduction in PM emissions 
and a 95 percent reduction in NOX emissions for new engines 
using low-sulfur diesel, compared to existing engines using higher-
content sulfur diesel. EPA expects that this rule will reduce 
NOX emissions by 2.6 million tons by 2030 when the heavy-
duty vehicle fleet is completely replaced with newer heavy-duty 
vehicles that comply with these emission standards.
    Non-road, large spark-ignition engines and recreational engines 
standards. The non-road spark-ignition and recreational engine 
standards, effective in July 2003, regulate NOX, 
hydrocarbons, and carbon monoxide from groups of previously unregulated 
non-road engines. These engine standards apply to large spark-ignition 
engines (e.g., forklifts and airport ground service equipment), 
recreational vehicles (e.g., off-highway motorcycles and all-terrain-
vehicles), and recreational marine diesel engines sold in the United 
States and imported after the effective date of these standards. When 
all of the non-road spark-ignition and recreational engine standards 
are fully implemented, an overall 72 percent reduction in hydrocarbons, 
80 percent reduction in NOX, and 56 percent reduction in 
carbon monoxide emissions are expected by 2020. These controls help 
reduce ambient concentrations of PM2.5.
    Large non-road diesel engine standards. This rule, which applies to 
diesel engines used in industries such as construction, agriculture, 
and mining, was promulgated in 2004 and fully phased in by 2014. This 
rule reduced allowable non-road diesel fuel sulfur levels from 
approximately 3,000 ppm to 500 ppm in 2007 and further reduced those 
levels to 15 ppm starting in 2010 (a 99 percent reduction). This rule 
also achieved significant reductions of up to 90 percent for 
NOX and particulate matter emissions nationwide.
    NOX SIP Call. On October 27, 1998 (63 FR 57356), EPA issued the 
NOX SIP Call requiring the District of Columbia and 22 
states to reduce emissions of NOX, a precursor to ozone and 
PM2.5 pollution, and providing a mechanism (the 
NOX Budget Trading Program) that states could use to achieve 
those reductions. Affected states were required to comply with Phase I 
of the SIP Call beginning in 2004 and Phase II beginning in 2007. By 
the end of 2008, ozone season NOX emissions from sources 
subject to the NOX SIP Call dropped by 62 percent from 2000 
emissions levels. All NOX SIP Call states, including 
Kentucky, have SIPs that currently satisfy their obligations under the 
NOX SIP Call, and EPA will continue to enforce the 
requirements of the NOX SIP Call.
    Reciprocating internal combustion engine National Emissions 
Standards for Hazardous Air Pollutants (NESHAP). In 2010, EPA issued 
rules regulating emissions of air toxics from existing compression 
ignition (CI) and spark ignition (SI) stationary reciprocating internal 
combustion engines (RICE) that meet specific site rating, age, and size 
criteria. With these RICE standards fully implemented in 2013, EPA 
estimates that the CI RICE standards reduce PM2.5 emissions 
from the covered CI engines by approximately 2,800 tons per year (tpy) 
and VOC emissions by approximately 27,000 tpy and that the SI RICE 
standards reduce NOX emissions from the covered SI engines 
by approximately 96,000 tpy.
    Category 3 marine diesel engine standards. Promulgated in 2010, 
this rule establishes more stringent exhaust emission standards for new 
large marine diesel engines with per cylinder displacement at or above 
30 liters (commonly referred to as Category 3 compression-ignition 
marine engines) as part of a coordinated strategy to address emissions 
from all ships that effect U.S. air quality. Near-term standards for 
newly built engines applied beginning in 2011, and long-term standards 
requiring an 80 percent reduction in NOX emissions will 
begin in 2016.
    Boiler NESHAP. The NESHAP for industrial, commercial, and 
institutional boilers is projected to reduce VOC emissions. This NESHAP 
applies to boiler and process heaters located at major sources of 
hazardous air pollutants that burn natural gas, fuel oil, coal, 
biomass, refinery gas, or other gas

[[Page 3241]]

and had a compliance deadline of January 31, 2016.
    Utility Mercury Air Toxics Standards (MATS) and New Source 
Performance Standards (NSPS). The MATS for coal and oil-fired electric 
generation units (EGUs) and the NSPS for fossil-fuel-fired electric 
utility steam generating units were published on February 16, 2012 (77 
FR 9304). The purpose is to reduce mercury and other toxic air 
pollutant emissions from coal and oil-fired EGUs, 25 megawatts or more, 
that generate electricity for sale and distribution through the 
national electric grid to the public. The NSPS has revised emission 
standards for NOX, SO2, and particulate matter 
(PM) that apply to new coal and oil-fired power plants. The MATS 
compliance date for existing sources was April 16, 2015.
    CAIR and CSAPR. In its redesignation request and maintenance plan, 
the Commonwealth identified the Clean Air Interstate Rule (CAIR) as a 
permanent and enforceable measure that contributed to attainment in the 
bi-state Louisville Area. CAIR created regional cap-and-trade programs 
to reduce SO2 and NOX emissions in 27 eastern 
states, including Kentucky, that contributed to downwind nonattainment 
or interfered with maintenance of the 1997 8-hour ozone NAAQS and the 
1997 PM2.5 NAAQS. See 70 FR 25162 (May 12, 2005). EPA 
approved a revision to Kentucky's SIP on October 4, 2007 (72 FR 56623), 
that addressed the requirements of CAIR for the purpose of reducing 
SO2 and NOX emissions. By 2008, the beginning of 
the attainment time period identified by Kentucky, CAIR had been 
promulgated and was achieving emission reductions.
    In 2008 the D.C. Circuit initially vacated CAIR, North Carolina v. 
EPA, 531 F.3d 896 (D.C. Cir. 2008), but ultimately remanded the rule to 
EPA without vacatur to preserve the environmental benefits provided by 
CAIR, North Carolina v. EPA, 550 F.3d 1176, 1178 (D.C. Cir. 2008). On 
August 8, 2011 (76 FR 48208), acting on the D.C. Circuit's remand, EPA 
promulgated the Cross-State Air Pollution Rule (CSAPR) to replace CAIR 
and thus to address the interstate transport of emissions contributing 
to nonattainment and interfering with maintenance of the two air 
quality standards covered by CAIR as well as the 2006 PM2.5 
NAAQS. CSAPR requires substantial reductions of SO2 and 
NOX emissions from EGUs in 28 states in the Eastern United 
States. As a general matter, because CSAPR is CAIR's replacement, 
emissions reductions associated with CAIR will for most areas be made 
permanent and enforceable through implementation of CSAPR.
    Numerous parties filed petitions for review of CSAPR in the D.C. 
Circuit, and on August 21, 2012, the court issued its ruling, vacating 
and remanding CSAPR to EPA and ordering continued implementation of 
CAIR. EME Homer City Generation, L.P. v. EPA, 696 F.3d 7, 38 (D.C. Cir. 
2012). The D.C. Circuit's vacatur of CSAPR was reversed by the United 
States Supreme Court on April 29, 2014, and the case was remanded to 
the D.C. Circuit to resolve remaining issues in accordance with the 
high court's ruling. EPA v. EME Homer City Generation, L.P., 134 S. Ct. 
1584 (2014). On remand, the D.C. Circuit affirmed CSAPR in most 
respects, but invalidated without vacating some of the Phase 2 
SO2 and NOX ozone season CSAPR budgets as to a 
number of states. EME Homer City Generation, L.P. v. EPA, 795 F.3d 118 
(D.C. Cir. 2015) (EME Homer City II). The CSAPR budgets for 
Kentucky are not affected by the Court's decision. The litigation over 
CSAPR ultimately delayed implementation of that rule for three years, 
from January 1, 2012, when CSAPR's cap-and-trade programs were 
originally scheduled to replace the CAIR cap-and-trade programs, to 
January 1, 2015. CSAPR's Phase 2 budgets were originally promulgated to 
begin on January 1, 2014, and are now scheduled to begin on January 1, 
2017. CSAPR will continue to operate under the existing emissions 
budgets until EPA fully addresses the D.C. Circuit's remand. The 
Court's decision did not affect Kentucky's CSAPR emissions budgets; 
therefore, CSAPR ensures that the NOX and SO2 
emissions reductions associated with CAIR and CSAPR throughout Kentucky 
are permanent and enforceable.\12\ Although Kentucky identified CAIR as 
a measure that contributed to permanent and enforceable emissions 
reductions, the air quality modeling analysis conducted for CSAPR 
demonstrates that the bi-state Louisville Area would be able to attain 
the 1997 annual PM2.5 NAAQS even in the absence of either 
CAIR or CSAPR. See ``Air Quality Modeling Final Rule Technical Support 
Document,'' App. B, pages B-43, B-45 and B-46. This modeling is 
available in the docket for this proposed redesignation action.
---------------------------------------------------------------------------

    \12\ CAIR and CSAPR established annual NOX and 
SO2 budgets to address nonattainment and interference 
with maintenance of the PM2.5 standard, because, as 
discussed above in Section II, NOX and SO2 are 
two main PM2.5 precursors.
---------------------------------------------------------------------------

    To the extent that bi-state Louisville relies on CSAPR for 
maintenance of the standard, EPA has identified the bi-state Louisville 
Area as having been significantly impacted by pollution transported 
from other states in both CAIR and CSAPR, and these rules greatly 
reduced the tons of SO2 and NOX emission 
generated in the states upwind of the area. The air quality modeling 
performed for the CSAPR rulemaking identified the following states as 
having contributed to PM2.5 concentrations in the bi-state 
Louisville Area: Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, 
Pennsylvania, Tennessee, West Virginia and Wisconsin. See 76 FR 48208 
(August 8, 2011). Even though the first phase of CAIR implementation 
for SO2 did not begin until 2010, many sources began 
reducing their emissions well in advance of the first compliance 
deadline because of the incentives offered by CAIR for early compliance 
with the rule. The emission reductions in the states upwind of the bi-
state Louisville Area achieved by CAIR, and made permanent by CSAPR, 
are unaffected by the D.C. Circuit's remand of CSAPR.\13\
---------------------------------------------------------------------------

    \13\ The D.C. Circuit in EME Homer City II remanded the 
SO2 trading program budgets for four states, none of 
which were identified as contributing to the bi-state Louisville 
Area.
---------------------------------------------------------------------------

    In addition to the above federal measures, Kentucky also identified 
the following State control measures, incorporated into Kentucky's SIP, 
that provide emission reductions in particulate matter and its 
precursors:
    New Process Operations--401 KAR 59:010. This regulation provides 
for the control of particulate matter emissions for affected facilities 
or sources located in nonattainment areas as well as attainment areas.
    RACT/RACM--401 KAR 50.012. This regulation establishes reasonably 
available control technology requirements for all air contaminant 
sources.
    Open Burning Bans--401 KAR 63:005. In 2005, Kentucky revised the 
open burning regulation to prohibit most types of open burning in 
PM2.5 nonattainment/maintenance areas within Kentucky during 
the period of May-September.
    Fugitive Emissions--401 KAR 63:010. This regulation provides for 
the control of fugitive emissions in the Commonwealth.

Criteria (4)--The Kentucky Portion of the Bi-State Louisville Area Has 
a Fully Approved Maintenance Plan Pursuant to Section 175A of the CAA

    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has a fully approved 
maintenance plan pursuant to section 175A of the CAA

[[Page 3242]]

(CAA section 107(d)(3)(E)(iv)). In conjunction with its request to 
redesignate the Kentucky portion of the bi-state Louisville Area to 
attainment for the 1997 Annual PM2.5 NAAQS, Kentucky 
submitted a SIP revision to provide for the maintenance of the 1997 
Annual PM2.5 NAAQS for at least 10 years after the effective 
date of redesignation to attainment. EPA believes that this maintenance 
plan meets the requirements for approval under section 175A of the CAA 
for the reasons discussed below.
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 Commonwealth of Kentucky must submit a revised 
maintenance plan demonstrating 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, as EPA deems necessary, to 
assure prompt correction of any future 1997 Annual PM2.5 
NAAQS violations. The Calcagni Memorandum provides further guidance on 
the content of a maintenance plan, explaining that a maintenance plan 
should address five requirements: The attainment emissions inventory, 
maintenance demonstration, monitoring, verification of continued 
attainment, and a contingency plan. As is discussed below, EPA finds 
that the Commonwealth's maintenance plan includes all the necessary 
components and is thus proposing to approve it as a revision to the 
Kentucky SIP.

b. Attainment Emissions Inventory

    As discussed above, EPA has previously determined that the bi-state 
Louisville Area attained the 1997 Annual PM2.5 NAAQS based 
on monitoring data for the 3-year period from 2007-2009, and then 
subsequently based on monitoring data from 2013-2015. In its 
maintenance plan, the Commonwealth selected 2008 as the attainment 
emission inventory year. The attainment inventory identifies the level 
of emissions in the Area that is sufficient to attain the 1997 Annual 
PM2.5 NAAQS. The Commonwealth began development of the 
attainment inventory by first generating a baseline emissions inventory 
for the Area. As noted above, the year 2008 was chosen as the base year 
for developing a comprehensive emissions inventory for direct 
PM2.5 and the PM2.5 precursors SO2 and 
NOX. The projected inventory included with the maintenance 
plan estimates emissions forward to 2015 and 2025, which satisfies the 
10-year interval required in section 175(A) of the CAA.
    The emissions inventories are composed of four major types of 
sources: Point, area, on-road mobile, and non-road mobile. The 
attainment and future year emissions inventories were projected by the 
Visibility Improvement State and Tribal Association of the Southeast 
and the Lake Michigan Air Directors Consortium using the 2005 base year 
inventory methodology as provided in the Appendix D of Kentucky's 
submittal. The future year emissions inventories have been estimated 
using projected rates of growth in population, traffic, economic 
activity, expected control programs, and other parameters. Non-road 
mobile emissions estimates were based on EPA's non-road mobile model, 
with the exception of the railroad locomotives, commercial marine, and 
aircraft. On-road mobile source emissions were calculated using EPA's 
MOVES2010 on-road mobile emission model.\14\ The 2008 SO2, 
NOX, and PM2.5 emissions for the Kentucky portion 
of the bi-state Louisville Area and the entire bi-state Louisville 
Area, as well as the emissions for other years, were developed 
consistent with EPA guidance and are summarized in Tables 8 and 9.
---------------------------------------------------------------------------

    \14\ MOVES2010 was the approved model at the time the Kentucky 
SIP was submitted. Currently, MOVES2014a is the approved on-road 
mobile source model.
---------------------------------------------------------------------------

    Section 175A requires a state seeking redesignation to attainment 
to submit a SIP revision to provide for the maintenance of the NAAQS in 
the Area ``for at least 10 years after the redesignation.'' EPA has 
interpreted this as a showing of maintenance ``for a period of ten 
years following redesignation.'' Calcagni Memorandum, p. 9. Where the 
emissions inventory method of showing maintenance is used, the purpose 
is to show that emissions during the maintenance period will not 
increase over the attainment year inventory. Calcagni Memorandum, pp. 
9-10.
    As discussed in detail below, Kentucky's maintenance plan 
submission expressly documents that the Area's overall emissions 
inventories will remain well below the attainment year inventories 
through 2025. In addition, for the reasons set forth below, EPA 
believes that the Area will continue to maintain the 1997 Annual 
PM2.5 NAAQS through 2027. Thus, if EPA finalizes its 
proposed approval of the redesignation request and maintenance plan, 
the approval will be based upon this showing, in accordance with 
section 175A, and EPA's analysis described herein, that the 
Commonwealth's maintenance plan provides for maintenance for at least 
ten years after redesignation.

c. Maintenance Demonstration

    The maintenance plan for the Kentucky portion of the bi-state 
Louisville Area includes a maintenance demonstration that:
    (i) Shows compliance with and maintenance of the Annual 
PM2.5 standard by providing information to support the 
demonstration that current and future emissions of SO2, 
NOX, and PM2.5 remain at or below 2008 emissions 
levels.
    (ii) Uses 2008 as the attainment year and includes future emission 
inventory projections for 2015 and 2025.
    (iii) Identifies an ``out year'' at least 10 years after EPA review 
and potential approval of the maintenance plan. Per 40 CFR part 93, 
NOX and PM2.5 MVEBs were established for the last 
year (2025) of the maintenance plan. Additionally, Kentucky chose, 
through interagency consultation, to establish NOX and 
PM2.5 MVEBs for 2015 (see section VII below).
    (iv) Provides, as shown in Tables 2 through 7 below, the estimated 
and projected emissions inventories, in tpy, for the Kentucky portion 
of the Louisville (Bullitt \15\ and Jefferson Counties) Area, for 
PM2.5, NOX, and SO2. Kentucky 
incorporated expected CAIR reductions into the Commonwealth's 
redesignation request inventories and projections regarding 
NOX and SO2 but did not incorporate CAIR 
reductions into the PM2.5 inventory.
---------------------------------------------------------------------------

    \15\ Based upon an email from John E. Gowins, Kentucky Division 
of Air Quality, dated October 31, 2012, the Bullitt County 2025 
emission inventory values for the Non-EGU sector were incorrect in 
the March 5, 2012, redesignation request submittal. The values 
presented in Tables 2, 4, and 6, as well as projected total emission 
estimates Tables 8 and 9, have been changed to reflect the correct 
values. This email is located in the docket for this proposed 
action.

[[Page 3243]]

   Table 2--Bullitt County, Kentucky PM2.5 Emission Inventory; Totals for Base Year 2005, Estimated 2008, and
                                   Projected 2015 and 2025 (tpy)--Without CAIR
----------------------------------------------------------------------------------------------------------------
                                                                       2008                            2025
                     Sector                          2005 Base      Attainment     2015 Interim     Maintenance
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................               0               0               0               0
Non-EGU.........................................          186.67          259.07          428.02          669.37
Non-road........................................           42.13           39.86           29.09           12.39
Area............................................          812.93          822.39          855.23          895.91
On-road.........................................           84.08           85.40           55.96           27.72
                                                 ---------------------------------------------------------------
    Total.......................................         1125.81         1206.72          1368.3         1605.39
----------------------------------------------------------------------------------------------------------------

  Table 3--Jefferson County, Kentucky PM2.5 Emission Inventory; Totals for Base Year 2005, Estimated 2008, and
                                   Projected 2015 and 2025 (tpy)--Without CAIR
----------------------------------------------------------------------------------------------------------------
                                                                       2008                            2025
                     Sector                          2005 Base      Attainment     2015 Interim     Maintenance
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................        3,123.24        2,763.06        2,481.90        2,481.90
Non-EGU.........................................          604.24          640.00          568.43          479.96
Non-road........................................          579.53          571.03          212.51          124.16
Area............................................          550.70          496.28          440.65          371.92
On-road.........................................          721.30          627.06          339.41          177.60
                                                 ---------------------------------------------------------------
    Total.......................................        5,579.01        5,097.43        4,042.90        3,635.54
----------------------------------------------------------------------------------------------------------------

    Table 4--Bullitt County, Kentucky NOX Emission Inventory; Totals for Base Year 2005, Estimated 2008, and
                                    Projected 2015 and 2025 (tpy)--With CAIR
----------------------------------------------------------------------------------------------------------------
                                                                       2008                            2025
                     Sector                          2005 Base      Attainment     2015 Interim     Maintenance
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................               0               0               0               0
Non-EGU.........................................          221.70          288.40          444.04          666.38
Non-road........................................          540.19          502.71          385.51          210.99
Area............................................           29.92            8.72            1.42            1.09
On-road.........................................        2,952.07        2,820.80        1,782.71          866.81
                                                 ---------------------------------------------------------------
    Total.......................................        3,743.88        3,620.63        2,613.68         1745.27
----------------------------------------------------------------------------------------------------------------

   Table 5--Jefferson County, Kentucky NOX Emission Inventory; Totals for Base Year 2005, Estimated 2008, and
                                    Projected 2015 and 2025 (tpy)--With CAIR
----------------------------------------------------------------------------------------------------------------
                                                                       2008                            2025
                     Sector                          2005 Base      Attainment     2015 Interim     Maintenance
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................       20,176.48       22,749.14       21,595.85       22,221.35
Non-EGU.........................................        1,489.68        1,987.01        1,759.66        1,479.63
Non-road........................................       10,590.84       11,255.08        9,912.27        8,269.43
Area............................................        1,272.69        1,382.23        1,217.32        1,015.56
On-road.........................................       22,241.72       19,094.05       10,259.60        4,935.49
                                                 ---------------------------------------------------------------
    Total.......................................       55,771.41       56,467.51       44,744.70       37,921.46
----------------------------------------------------------------------------------------------------------------

    Table 6--Bullitt County, Kentucky SO2 Emission Inventory; Totals for Base Year 2005, Estimated 2008, and
                                    Projected 2015 and 2025 (tpy)--With CAIR
----------------------------------------------------------------------------------------------------------------
                                                                       2008                            2025
                     Sector                          2005 Base      Attainment     2015 Interim     Maintenance
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................               0               0               0               0
Non-EGU.........................................          365.91          507.16          836.74         1307.58
Non-road........................................           32.05           14.28            3.29            0.76
Area............................................           94.94           96.47           98.41          100.36
On-road.........................................           12.11           13.28           15.01           15.76
                                                 ---------------------------------------------------------------
    Total.......................................          505.01          631.19          953.45         1424.46
----------------------------------------------------------------------------------------------------------------

[[Page 3244]]

   Table 7--Jefferson County, Kentucky SO2 Emission Inventory; Totals for Base Year 2005, Estimated 2008, and
                                    Projected 2015 and 2025 (tpy)--With CAIR
----------------------------------------------------------------------------------------------------------------
                                                                       2008                            2025
                     Sector                          2005 Base      Attainment     2015 Interim     Maintenance
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................       42,852.96       38,684.02       38,684.02       38,684.02
Non-EGU.........................................        1,894.40        2,080.95        2,080.95        2,080.95
Non-road........................................          714.33          778.68          960.48        1,297.16
Area............................................            0.00            0.00            0.00            0.00
On-road.........................................           95.26          101.00          102.55          100.43
                                                 ---------------------------------------------------------------
    Total.......................................       45,556.95       41,644.65       41,828.00       42,162.56
----------------------------------------------------------------------------------------------------------------

     Table 8--Actual (2008) and Projected Total Emission Estimates for the Kentucky Portion of the Bi-State
                                              Louisville Area (tpy)
----------------------------------------------------------------------------------------------------------------
                              Year                                     PM2.5            NOX             SO2
----------------------------------------------------------------------------------------------------------------
2008............................................................        6,304.15       60,088.14       42,275.84
2015............................................................        5,411.20       47,358.38       42,781.45
2025............................................................        5,240.93       39,666.73       43,587.02
Decrease from 2008 to 2025......................................        1,063.22       20,421.41       -1,311.18
----------------------------------------------------------------------------------------------------------------

   Table 9--Actual (2008) and Projected Total Emission Estimates for the Entire Bi-State Louisville Area (tpy)
----------------------------------------------------------------------------------------------------------------
                              Year                                     PM2.5            NOX             SO2
----------------------------------------------------------------------------------------------------------------
2008............................................................        7,506.62       97,614.20      151,648.36
2015............................................................        6,521.57       70,147.12       77,397.48
2025............................................................        6,294.86       58,635.36       76,929.92
Decrease from 2008 to 2025......................................        1,211.76       38,978.84       74,718.44
----------------------------------------------------------------------------------------------------------------

    In situations where local emissions are the primary contributor to 
nonattainment, such as the bi-state Louisville Area, if the future 
projected emissions in the nonattainment area remain at or below the 
baseline emissions in the nonattainment area, then the ambient air 
quality standard should not be exceeded in the future. As reflected 
above in Table 9, future emissions of all the relevant pollutants in 
the bi-state Louisville Area are expected to be well below the 
``attainment level'' emissions in 2008, thus illustrating that the bi-
state Louisville Area is expected to continue to attain the 1997 
PM2.5 NAAQS through 2025 and beyond. Further, even though 
EPA evaluates maintenance demonstrations on an area-wide basis, EPA 
finds that projected emissions in only the Kentucky portion of the bi-
state Louisville Area are also consistent with maintenance of the 1997 
PM2.5 NAAQS. As reflected in Table 8, emissions of direct 
PM2.5 and NOX in the Kentucky portion of the bi-
state Louisville Area are expected to decrease from 2008 to 2025 by 
approximately 17 percent and 34 percent, respectively, while emissions 
of SO2 are expected to increase by approximately 3 percent. 
Thus, the significant projected reductions in direct PM2.5 
and NOX indicate that future emissions in the Kentucky 
portion of the bi-state Louisville Area are expected to support 
continued maintenance of the 1997 Annual PM2.5 NAAQS through 
2025.
    A maintenance plan requires the state to show that projected future 
year emissions will not exceed the level of emissions which led the 
Area to attain the NAAQS. Kentucky has projected emissions as described 
previously and determined that emissions in the bi-state Louisville 
Area will remain below those in the attainment year inventory for the 
duration of the maintenance plan.
    While DAQ's maintenance plan projects maintenance of the 1997 
Annual PM2.5 NAAQS through 2025, as noted above, EPA 
believes that the bi-state Louisville Area will continue to maintain 
the standard through 2027 for several reasons: All of the federal 
regulatory requirements that enabled the Area to attain the NAAQS will 
continue to be in effect and enforceable after the 10-year maintenance 
period; the most recent maximum potential annual PM2.5 
design value (for the period 2013-2015) for the Area, 11.7 [micro]g/
m\3\, is well below the standard of 15.0 [micro]g/m\3\; and overall 
emissions are projected to decline significantly through 2025. Because 
it is unlikely that emissions will suddenly increase in 2026 and 2027 
in an amount that results in overall emissions in the area exceeding 
attainment year inventory levels, EPA expects that the bi-state 
Louisville Area will continue maintain the 1997 Annual PM2.5 
NAAQS through at least 2027.

d. Monitoring Network

    There are currently four monitors in Jefferson County measuring 
PM2.5 in the Kentucky portion of the bi-state Louisville 
Area. The Commonwealth of Kentucky, through DAQ, has committed to 
continue operation of the monitors in the Kentucky portion of the bi-
state Louisville Area in compliance with 40 CFR part 58 and have thus 
addressed the requirement for monitoring. EPA approved Kentucky's 2015 
monitoring plan on October 28, 2015.

e. Verification of Continued Attainment

    The Commonwealth of Kentucky, through DAQ, has the legal authority 
to enforce and implement the requirements of the Kentucky portion of 
the bi-state Louisville Area 1997 Annual PM2.5 maintenance 
plan. This includes the authority to adopt, implement, and enforce any 
subsequent emissions control contingency measures determined to be 
necessary to correct future PM2.5 attainment problems.

[[Page 3245]]

    DAQ will track the progress of the maintenance plan by performing 
future reviews of triennial emission inventories for the Kentucky 
portion of the bi-state Louisville Area as required in the Air 
Emissions Reporting Rule (AERR). Emissions information will be compared 
to the 2008 attainment year and the 2025 projected maintenance year 
inventories to assess emission trends, as necessary, and to assure 
continued compliance with the annual PM2.5 standard.

f. Contingency Measures in the Maintenance Plan

    Section 175A of the CAA requires that a maintenance plan include 
such contingency measures as EPA deems necessary to assure that a 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 Commonwealth. 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 March 5, 2012, submittal, Kentucky commits to maintaining 
the existing control measures identified in Chapter 5 of its submission 
(addressing section 107(d)(3)(E)(v)) after redesignation. The 
contingency plan included in the submittal identifies triggers to 
determine when contingency measures are needed and a process of 
developing and implementing appropriate control measures. The 
Commonwealth will use actual ambient monitoring data to determine 
whether a trigger event has occurred and when contingency measures 
should be implemented.
    In the event of a monitored violation of the 1997 Annual 
PM2.5 NAAQS in the Area, the Commonwealth commits to adopt 
one or more of the following control measures within nine months of the 
monitored violation in order to bring the Area into compliance and to 
implement the control measure(s) within 18 months of the monitored 
violation:
     Implementation of a program to require additional 
emissions reductions on stationary sources;
     Implementation of fuel programs, including incentives for 
alternative fuels;
     Restriction of certain roads or lanes, or construction of 
such lanes for use by passenger buses or high-occupancy vehicles;
     Trip-reduction ordinances;
     Employer-based transportation management plans, including 
incentives;
     Programs to limit or restrict vehicle use in downtown 
areas, or other areas of emission concentration, particularly during 
periods of peak use;
     Programs for new construction and major reconstruction of 
paths or tracks for use by pedestrians or by non-motorized vehicles 
when economically feasible and in the public interest;
     Diesel reduction emissions strategies, including diesel 
retrofit programs;
     Any other control program that is developed and deemed to 
be more advantageous for the Area.
    In the event that a measured value of the weighted annual 
arithmetic mean, as determined in accordance with 40 CFR part 50, 
Appendix N, is 15.5 [micro]g/m\3\ or greater in a single calendar year 
in any portion of the Area, the Commonwealth will evaluate existing 
controls measures to determine whether any further emission reduction 
measures should be implemented at that time. In addition to the 
triggers indicated above, Kentucky will monitor regional emissions 
through the AERR and compare them to the projected inventories and the 
attainment year inventory.
    EPA preliminarily concludes that the maintenance plan adequately 
addresses the five basic components of a maintenance plan: Attainment 
emission inventory, maintenance demonstration, monitoring network, 
verification of continued attainment, and a contingency plan. 
Therefore, EPA proposes to find that the maintenance plan SIP revision 
submitted by the Commonwealth for the Kentucky portion of the bi-state 
Louisville Area meets the requirements of section 175A of the CAA and 
is approvable.

VI. What is the effect of the January 4, 2013, D.C. Circuit decision 
regarding PM2.5 implementation under subpart 4?

a. Background

    As discussed in section II of this action, the D.C. Circuit 
remanded the 1997 PM2.5 Implementation Rule to EPA on 
January 4, 2013, in Natural Resources Defense Council v. EPA, 706 F.3d 
428. The court found that EPA erred in implementing the 1997 
PM2.5 NAAQS pursuant to the general implementation 
provisions of subpart 1 of part D of Title I of the CAA, rather than 
the particulate matter-specific provisions of subpart 4 of part D of 
Title I.
    For the purposes of evaluating Kentucky's redesignation request for 
its portion of the bi-state Louisville Area, to the extent that 
implementation under subpart 4 would impose additional requirements for 
areas designated nonattainment, EPA believes that those requirements 
are not ``applicable'' for the purposes of CAA section 107(d)(3)(E), 
and thus EPA is not required to consider subpart 4 requirements with 
respect to the redesignation of the Kentucky portion of the bi-state 
Louisville Area. Under its longstanding interpretation of the CAA, EPA 
has interpreted section 107(d)(3)(E) to mean, as a threshold matter, 
that the part D provisions which are ``applicable'' and which must be 
approved in order for EPA to redesignate an area include only those 
which came due prior to a state's submittal of a complete redesignation 
request. See ``Procedures for Processing Requests to Redesignate Areas 
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (Calcagni memorandum). See also 
``State Implementation Plan (SIP) Requirements for Areas Submitting 
Requests for the plan and 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, Air and Radiation, September 17, 1993 (Shapiro 
memorandum); Final Redesignation of Detroit-Ann Arbor, (60 FR 12459, 
12465-66, March 7, 1995); Final Redesignation of St. Louis, Missouri, 
(68 FR 25418, 25424-27, May 12, 2003); Sierra Club v. EPA, 375 F.3d 
537, 541 (7th Cir. 2004) (upholding EPA's redesignation rulemaking 
applying this interpretation and expressly rejecting Sierra Club's view 
that the meaning of ``applicable'' under the statute is ``whatever 
should have been in the plan at the time of attainment rather than 
whatever actually was in already implemented or due at the time of 
attainment'').\16\ In this case, at the time that Kentucky submitted 
its redesignation request on March 5, 2012, requirements under subpart 
4 were not due, and indeed, were not yet known to apply.
---------------------------------------------------------------------------

    \16\ 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. Section 175A(c) of the CAA.

---------------------------------------------------------------------------

[[Page 3246]]

    On June 2, 2014, EPA published a rule entitled ``Identification of 
Nonattainment Classification and Deadlines for Submission of State 
Implementation Plan (SIP) Provisions for the 1997 Fine Particle 
(PM2.5) National Ambient Air Quality Standard (NAAQS) and 
2006 PM2.5 NAAQS'' (``Classification and Deadlines Rule''). 
See 79 FR 31566. In that rule, the Agency responded to the D.C. 
Circuit's January 2013 decision by establishing classifications for 
PM2.5 nonattainment areas under subpart 4, and by 
establishing a new SIP submission date of December 31, 2014, for 
moderate area attainment plans and for any additional attainment-
related or nonattainment new source review plans necessary for areas to 
comply with the requirements applicable under subpart 4. Id. at 31,567-
70. Therefore, when Kentucky submitted its request in March 2012, the 
deadline for submitting a SIP to meet the Act's subpart 4 requirements 
had not yet passed, and those requirements are therefore not applicable 
for purposes of evaluating Kentucky's request for redesignation.

b. Subpart 4 Requirements and the Kentucky's Redesignation Request Its 
Portion of the Bi-State Louisville Area

    Even though the substantive requirements of subpart 4 were not 
applicable requirements that Kentucky was required to have met at the 
time of its redesignation request submission, EPA believes that even 
the imposition of those substantive requirements would not pose a bar 
to the redesignation of the Kentucky portion of the bi-state Louisville 
Area. The additional requirements found in subpart 4 are either 
designed to help an area achieve attainment (also known as ``attainment 
planning requirements'') or are related to new source permitting. None 
of these additional requirements are applicable for purposes of 
evaluating a redesignation from nonattainment to attainment under EPA's 
long-standing interpretation of CAA section 107(d)(3)(E)(ii) and (v).
    As background, EPA notes that subpart 4 incorporates components of 
subpart 1 of part D, which contains general air quality planning 
requirements for areas designated as nonattainment. See section 172(c). 
Subpart 4 itself contains specific planning and scheduling requirements 
for PM10 \17\ nonattainment areas, and under the Court's 
January 4, 2013, decision in NRDC v. EPA, these same statutory 
requirements also apply for PM2.5 nonattainment areas.\18\ 
In the General Preamble, EPA's longstanding general guidance 
interpreting the 1990 amendments to the CAA, EPA discussed the 
relationship of subpart 1 and subpart 4 SIP requirements and pointed 
out that subpart 1 requirements were to an extent ``subsumed by, or 
integrally related to, the more specific PM-10 requirements.'' See 57 
FR 13538 (April 16, 1992). The subpart 1 requirements include, among 
other things, provisions for attainment demonstrations, RACM, RFP, 
emissions inventories, and contingency measures.
---------------------------------------------------------------------------

    \17\ PM10 refers to particles nominally 10 
micrometers in diameter or smaller.
    \18\ In explaining their decision, the court reasoned that the 
plain meaning of the CAA requires implementation of the 1997 
PM2.5 NAAQS under subpart 4 because PM2.5 
particles fall within the statutory definition of PM10 
and are thus subject to the same statutory requirements. EPA 
finalized its interpretation of subpart 4 requirements as applied to 
the PM2.5 NAAQS in its final rule entitled ``Air Quality 
State Implementation Plans; Approvals and Promulgations: Fine 
Particulate Matter National Ambient Air Quality Standards'' (81 FR 
58010, August 24, 2016).
---------------------------------------------------------------------------

    As noted above, in the Classification and Deadlines Rule, EPA 
initially classified all areas designated nonattainment for either the 
1997 or the 2006 PM2.5 NAAQS as ``moderate'' nonattainment 
areas. Additional requirements that would apply to the bi-state 
Louisville Area as a moderate nonattainment area are therefore sections 
189(a) and (c), including the following: (1) An approved permit program 
for construction of new and modified major stationary sources (section 
189(a)(1)(A)); (2) an attainment demonstration (section 189(a)(1)(B)); 
(3) provisions for RACM (section 189(a)(1)(C)); and (4) quantitative 
milestones demonstrating RFP toward attainment by the applicable 
attainment date (section 189(c)).\19\
---------------------------------------------------------------------------

    \19\ EPA's final implementation rule (81 FR 58010, August 24, 
2016) includes, among other things, the Agency's interpretation of 
these moderate area requirements for purposes of PM2.5 
NAAQS implementation.
---------------------------------------------------------------------------

    The permit requirements of subpart 4, as contained in section 
189(a)(1)(A), refer to and apply the subpart 1 permit provisions 
requirements of sections 172 and 173 to PM10, without adding 
to them. Consequently, EPA believes that section 189(a)(1)(A) does not 
itself impose for redesignation purposes any additional requirements 
for moderate areas beyond those contained in subpart 1.\20\ In any 
event, in the context of redesignation, EPA has long relied on the 
interpretation that a fully approved nonattainment new source review 
program is not considered an applicable requirement for redesignation, 
provided the area can maintain the standard with a PSD program after 
redesignation. A 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.'' See 
also 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).
---------------------------------------------------------------------------

    \20\ The potential effect of section 189(e) on section 
189(a)(1)(A) for purposes of evaluating this redesignation is 
discussed below.
---------------------------------------------------------------------------

    With respect to the specific attainment planning requirements under 
subpart 4,\21\ EPA applies the same interpretation that it applies to 
attainment planning requirements under subpart 1 or any of other 
pollutant-specific subparts. That is, under its long-standing 
interpretation of the CAA, where an area is already attaining the 
standard, EPA does not consider those attainment-planning requirements 
to be applicable for purposes of evaluating a request for redesignation 
because requirements that are designed to help an area achieve 
attainment no longer have meaning where an area is already meeting the 
standard.
---------------------------------------------------------------------------

    \21\ These planning requirements include the attainment 
demonstration, quantitative milestone requirements, and RACM 
analysis.
---------------------------------------------------------------------------

    Thus, at the time of Kentucky's submission of its redesignation 
request, the requirement for the bi-state Louisville Area to comply 
with subpart 4 had not yet come due and was, therefore, not applicable 
for purposes of EPA's evaluation of the redesignation. Moreover, even 
if Kentucky had been required to comply with those subpart 4 
requirements, the additional substantive requirements for a moderate 
nonattainment area under subpart 4 were not applicable for purposes of 
redesignation anyway, given EPA's long-standing interpretation of the 
applicability of certain requirements to areas that are attaining the 
NAAQS.

c. Subpart 4 and Control of PM2.5 Precursors

    As noted previously, EPA does not believe that the requirement to 
comply with subpart 4 applied to Kentucky's redesignation request for 
its portion of the bi-state Louisville Area because that request was 
submitted prior to the moderate area SIP submission date of December 
31, 2014. However, even if the requirements of subpart 4 were to apply 
to the Area, EPA nevertheless believes that the additional

[[Page 3247]]

requirements of subpart 4 would not pose an obstacle to our approval of 
the request to redesignate the Kentucky portion of the bi-state 
Louisville Area. Specifically, EPA proposes to determine that, because 
the bi-state Louisville Area is attaining the standard, no additional 
controls of any PM2.5 precursors would be required. Under 
either subpart 1 or subpart 4, for purposes of demonstrating attainment 
as expeditiously as practicable, a state is required to evaluate all 
economically and technologically feasible control measures for direct 
PM emissions and precursor emissions, and adopt those measures that are 
deemed reasonably available. Relevant precursors to PM2.5 
pollution include SO2, NOX, VOCs, and ammonia. 
Moreover, CAA section 189(e) in subpart 4 specifically provides that 
control requirements for major stationary sources of direct 
PM10 shall also apply to PM10 precursors from 
those sources, except where EPA determines that major stationary 
sources of such precursors ``do not contribute significantly to 
PM10 levels which exceed the standard in the area.''
    Under subpart 1 and EPA's prior implementation rule, all major 
stationary sources of PM2.5 precursors were subject to 
regulation, with the exception of ammonia and VOCs. Thus, assuming 
subpart 4 requirements are applicable for purposes of evaluating this 
redesignation request, EPA is analyzing here whether additional 
controls of ammonia and VOCs from major stationary sources are required 
under section 189(e) of subpart 4 in order to redesignate the area for 
the 1997 PM2.5 standard. As explained below, EPA does not 
believe that any additional controls of ammonia and VOCs are required 
in the context of this redesignation.
    In the General Preamble, EPA discusses its approach to implementing 
section 189(e). See 57 FR 13538 (April 16, 1992). With regard to 
precursor regulation under section 189(e), the General Preamble 
explicitly states that control of VOCs under other Act requirements may 
suffice to relieve a state from the need to adopt precursor controls 
under section 189(e). See 57 FR 13542. EPA in this rulemaking proposes 
to determine that even if not explicitly addressed by Kentucky in its 
submission, the Commonwealth does not need to take further action with 
respect to ammonia and VOCs as precursors to satisfy the requirements 
of section 189(e). This proposed determination is based on our findings 
that: (1) The bi-state Louisville Area contains no major stationary 
sources of ammonia, and (2) existing major stationary sources of VOCs 
are adequately controlled under other provisions of the CAA regulating 
the ozone NAAQS.\22\ In the alternative, EPA proposes to determine 
that, under the express exception provisions of section 189(e), and in 
the context of the redesignation of the area, which is attaining the 
1997 annual PM2.5 standard, at present ammonia and VOC 
precursors from major stationary sources do not contribute 
significantly to levels exceeding the 1997 PM2.5 standard in 
the bi-state Louisville Area. See 57 FR 13539.
---------------------------------------------------------------------------

    \22\ The bi-state Louisville Area has reduced VOC emissions 
through the implementation of various control programs including VOC 
Reasonably Available Control Technology (RACT) regulations and 
various on-road and non-road motor vehicle control programs.
---------------------------------------------------------------------------

    As noted earlier, EPA determined in March 2011 (76 FR 12860) and 
September 2011 (76 FR 55544) that the bi-state Louisville Area was 
attaining the 1997 Annual PM2.5 NAAQS and that the Area had 
attained the NAAQS by the applicable attainment date of April 5, 2010. 
Under EPA's regulations, a determination of attainment, also known as a 
clean data determination, suspends the CAA's requirements to submit an 
attainment demonstration, including an analysis of reasonably available 
control measures and control technology; reasonable further progress; 
and contingency measures. Under subpart 4, Kentucky's plan for 
attaining the 1997 PM2.5 NAAQS in the bi-state Louisville 
Area would have had to consider all PM2.5 precursors, 
including VOCs and ammonia, and whether there were control measures, 
including for existing sources under section 189(e), available that 
would have advanced the area's attainment goals. However, because the 
bi-state Louisville Area has already attained the 1997 PM2.5 
NAAQS, the Commonwealth's requirement to submit a plan demonstrating 
how the Area would attain has been suspended, and, moreover, the Area 
has shown that it has attained with its current approach to regulation 
of PM2.5 precursors. Therefore, EPA believes that it is 
reasonable to conclude in the context of this redesignation that there 
is no need to revisit the attainment control strategy with respect to 
the treatment of precursors. In addition, as noted below, EPA has 
analyzed projections of VOC and ammonia emissions in the area and has 
determined that VOC emissions are projected to decrease by over 8,000 
tpy from 2007-2020 and ammonia emissions, which are emitted in marginal 
amounts in the bi-state Louisville Area, are projected to decrease by 
approximately 5 tpy. Accordingly, EPA does not view the January 4, 
2013, decision of the Court as precluding redesignation of the bi-state 
Louisville Area to attainment for the 1997 Annual PM2.5 
NAAQS. In sum, even if Kentucky were required to address precursors for 
the bi-state Louisville Area under subpart 4 rather than under subpart 
1, EPA would still conclude that the Area had met all applicable 
requirements for purposes of redesignation in accordance with section 
107(d)(3)(E)(ii) and (v).

f. Maintenance Plan and Evaluation of Precursors

    EPA proposes to determine that the Commonwealth's maintenance plan 
shows continued maintenance of the standard by tracking the levels of 
the precursors whose control brought about attainment of the 1997 
Annual PM2.5 standard in the bi-state Louisville Area. EPA 
therefore believes that the only additional consideration related to 
the maintenance plan requirements that results from the court's January 
4, 2013, decision is that of assessing the potential role of VOCs and 
ammonia in demonstrating continued maintenance in this area. As 
explained below, based upon documentation provided by Kentucky and 
supporting information, EPA believes that the maintenance plan for the 
bi-state Louisville Area need not include any additional emission 
reductions of VOCs or ammonia in order to provide for continued 
maintenance of the standard.
    First, as noted above in EPA's discussion of section 189(e), VOC 
emission levels in this area have historically been well-controlled 
under SIP requirements related to ozone and other pollutants. Second, 
total ammonia emissions throughout the bi-state Louisville Area are 
projected to be approximately 2,000 tpy in 2020. See Table 10, below. 
This amount of ammonia emissions is relatively low in comparison to the 
individual amounts of SO2, NOX, and direct 
PM2.5 emissions from sources in the Area. Third, as 
described below, available information shows that no precursor, 
including VOCs and ammonia, is expected to increase over the 
maintenance period so as to interfere with or undermine the State's 
maintenance demonstration.
    The emissions inventories used in the regulatory impact analysis 
(RIA) for the 2012 PM2.5 NAAQS, included in the docket for 
today's action, show that VOC emissions are projected to decrease by 
8,148.91 tpy and ammonia emissions are projected to decrease by 5.22 
tpy in the Area between 2007 and 2020. See Table 10, below. Thus, 
emissions of VOCs are projected to decrease by 20

[[Page 3248]]

percent, and emissions of ammonia are projected to remain about the 
same, decreasing by less than one percent.
---------------------------------------------------------------------------

    \23\ These emissions estimates were taken from the emissions 
inventories developed for the RIA for the 2012 PM2.5 
NAAQS. Table includes the entire bi-state KY-IN area.

                     Table 10--Comparison of 2007 and 2020 VOC and Ammonia Emission Totals by Source Sector (tpy) for the Area \23\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                VOC                                           Ammonia
                         Sector                          -----------------------------------------------------------------------------------------------
                                                               2007            2020         Net change         2007            2020         Net change
--------------------------------------------------------------------------------------------------------------------------------------------------------
Nonpoint................................................       15,300.78       15,110.61         -190.17        1,308.11        1,386.18           78.07
Nonroad.................................................         4,369.3        2,397.67       -1,971.63            7.57            8.96            1.39
Onroad..................................................        9,533.65        3,613.66       -5,919.99          474.46          264.95         -209.51
Point...................................................        12,487.7       12,420.58          -67.12          182.13          306.96          124.83
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................       41,691.43       33,542.52       -8,148.91        1,972.27        1,967.05           -5.22
--------------------------------------------------------------------------------------------------------------------------------------------------------

    While the RIA emissions inventories are only projected out to 2020, 
there is no reason to believe that this downward trend would not 
continue through 2027. Given that the bi-state Louisville Area is 
already attaining the 1997 PM2.5 NAAQS even with the current 
level of emissions from sources in the Area, the overall trend of 
emissions inventories is consistent with continued attainment.
    In addition, available air quality data and modeling analysis show 
continued maintenance of the standard during the maintenance period. As 
noted above, the bi-state Louisville Area has an annual 
PM2.5 design value of 11.7 [mu]g/m\3\ during 2013-2015, the 
most recent three years available with quality-assured and certified 
ambient air monitoring data. This is well below the 1997 Annual 
PM2.5 NAAQS of 15.0 [mu]g/m\3\. Moreover, the modeling 
analysis conducted for RIA for the 2012 PM2.5 NAAQS 
indicates that the design value for this area is expected to continue 
to decline through 2020. In the RIA analysis, the 2020 modeled design 
value for all counties in the bi-state Louisville Area is projected to 
be 9.8 [mu]g/m\3\. Given the decrease in overall precursor emissions 
projected through 2025, and expected through 2027, it is reasonable to 
conclude that the monitored PM2.5 concentrations in this 
area will also continue to decrease through 2025.
    Thus, EPA believes that there is ample justification to conclude 
that the bi-state Louisville Area should be redesignated, even taking 
into consideration the emissions of VOCs and ammonia potentially 
relevant to PM2.5. After consideration of the D.C. Circuit's 
January 4, 2013, decision, and for the reasons set forth in this 
notice, EPA continues to propose approval of Kentucky's maintenance 
plan and its request to redesignate the bi-state Louisville Area to 
attainment for the 1997 p.m.2.5 NAAQS.

VII. What is EPA's analysis of the proposed NOX and 
PM2.5 MVEBs for the bi-state Louisville Area?

    Under section 176(c) of the CAA, new transportation plans, 
programs, and projects, such as the construction of new highways, must 
``conform'' to (i.e., be consistent with) the part of a state's air 
quality plan that addresses pollution from cars and trucks. Conformity 
to the SIP means that transportation activities will not cause new air 
quality violations, worsen existing violations, or delay timely 
attainment of the NAAQS or any interim milestones. If a transportation 
plan does not conform, most new projects that would expand the capacity 
of roadways cannot go forward. Regulations at 40 CFR part 93 set forth 
EPA policy, criteria, and procedures for demonstrating and assuring 
conformity of such transportation activities to a SIP. The regional 
emissions analysis is one, but not the only, requirement for 
implementing transportation conformity. Transportation conformity is a 
requirement for nonattainment and maintenance areas. Maintenance areas 
are areas that were previously nonattainment for a particular NAAQS but 
have since been redesignated to attainment with an approved maintenance 
plan for that NAAQS.
    Under the CAA, states are required to submit, at various times, 
control strategy SIPs and maintenance plans for nonattainment areas. 
These control strategy SIPs (including RFP and attainment 
demonstration) and maintenance plans create MVEBs for criteria 
pollutants and/or their precursors to address pollution from cars and 
trucks. Per 40 CFR part 93, a MVEB must be established for the last 
year of the maintenance plan. A state may adopt MVEBs for other years 
as well. The MVEB is the portion of the total allowable emissions in 
the maintenance demonstration that is allocated to highway and transit 
vehicle use and emissions. See 40 CFR 93.101. The MVEB serves as a 
ceiling on emissions from an area's planned transportation system. The 
MVEB concept is further explained in the preamble to the November 24, 
1993, Transportation Conformity Rule (58 FR 62188). The preamble also 
describes how to establish the MVEB in the SIP and how to revise the 
MVEB.
    After interagency consultation with the transportation partners for 
the bi-state Louisville Area, Kentucky has elected to develop MVEBs for 
NOX and PM2.5 for the entire Area. Kentucky 
developed these MVEBs, as required, for the last year of its 
maintenance plan, 2025. Kentucky also established MVEBs for the interim 
year of 2015. The MVEBs reflect the total on-road emissions for 2015 
and 2025, plus an allocation from the available NOX and 
PM2.5 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. The NOX and PM2.5 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 interagency consultation group approved a 
15 percent safety margin for direct PM2.5 mobile source 
emission estimates for the

[[Page 3249]]

years 2015 and 2025, and a 15 percent safety margin for NOX 
mobile source emission estimates for the years 2015 and 2025.\24\ The 
NOX and PM2.5 MVEBs for the bi-state Louisville 
Area are defined in Table 11, below.
---------------------------------------------------------------------------

    \24\ The amount of the allocation for the safety margin is 
actually 15 percent of the PM2.5 and NOX 
mobile emissions for 2015 and 2025. The actual percentage of the 
available safety margin for PM2.5 for 2015 and 2025 is 
6.40 and 2.53, respectively. The actual percentage of the available 
safety margin for NOX for 2015 and 2025 is 8.37 and 3.19, 
respectively.

  Table 11--Motor Vehicle Emissions Budget for the Bi-State Louisville
                                  Area
                                  [tpy]
------------------------------------------------------------------------
                                               PM2.5            NOX
------------------------------------------------------------------------
2015 Mobile Emissions...................          504.95       15,392.13
2015 Safety Margin Allocation...........           75.74        2,308.82
                                         -------------------------------
    2015 Total Mobile Budget............          580.69       17,700.95
2025 Mobile Emissions...................          281.77        8,097.18
2025 Safety Margin Allocated............           42.27        1,214.58
                                         -------------------------------
    2025 Total Mobile Budget............          324.04        9,311.76
------------------------------------------------------------------------

    As mentioned above, Kentucky has chosen to allocate a portion of 
the available safety margin for the bi-state Louisville Area to the 
NOX and PM2.5 MVEBs for 2015 and 2025. The 
NOX safety margin allocations are 2,308.82 tpy and 1,214.58 
tpy for 2015 and 2025, respectively, and the remaining safety margins 
for NOX for years 2015 and 2025 are 25,288.46 tpy and 
36,869.20 tpy, respectively. The PM2.5 safety margin 
allocations are 75.74 tpy and 42.27 tpy for 2015 and 2025, 
respectively, and the remaining safety margins for PM2.5 for 
years 2015 and 2025 are 1,107.98 tpy and 1,626.12 tpy, respectively.
    Through this rulemaking, EPA is proposing to approve into the 
Kentucky SIP the MVEBs for NOX and PM2.5 for 2015 
and 2025 for the bi-state Louisville Area because EPA has determined 
that the Area maintains the 1997 Annual PM2.5 NAAQS with the 
emissions at the levels of the budgets. If the MVEBs for the bi-state 
Louisville Area are approved or found adequate (whichever is completed 
first), they must be used for future conformity determinations. After 
thorough review, EPA is proposing to approve the budgets because they 
are consistent with maintenance of the 1997 Annual PM2.5 
NAAQS through 2027.

VIII. What is the status of EPA's adequacy determination for the 
Proposed NOX and PM2.5 MVEBs for 2015 and 2025 
for the bi-state Louisville Area?

    When reviewing submitted ``control strategy'' SIPs or maintenance 
plans containing MVEBs, EPA may affirmatively find the MVEBs contained 
therein adequate for use in determining transportation conformity. Once 
EPA affirmatively finds that the submitted MVEBs is adequate for 
transportation conformity purposes, that MVEBs must be used by state 
and federal agencies in determining whether proposed transportation 
projects conform to the SIP as required by section 176(c) of the CAA.
    EPA's substantive criteria for determining adequacy of a MVEBs are 
set out in 40 CFR 93.118(e)(4). The process for determining adequacy 
consists of three basic steps: Public notification of a SIP submission, 
a public comment period, and EPA's adequacy determination. This process 
for determining the adequacy of submitted MVEBs for transportation 
conformity purposes was initially outlined in EPA's May 14, 1999, 
guidance, ``Conformity Guidance on Implementation of March 2, 1999, 
Conformity Court Decision.'' EPA adopted regulations to codify the 
adequacy process in the Transportation Conformity Rule Amendments for 
the ``New 8-Hour Ozone and PM2.5 National Ambient Air 
Quality Standards and Miscellaneous Revisions for Existing Areas; 
Transportation Conformity Rule Amendments--Response to Court Decision 
and Additional Rule Change,'' on July 1, 2004 (69 FR 40004). Additional 
information on the adequacy process for transportation conformity 
purposes is available in the proposed rule entitled, ``Transportation 
Conformity Rule Amendments: Response to Court Decision and Additional 
Rule Changes,'' 68 FR 38974, 38984 (June 30, 2003).
    As discussed earlier, Kentucky's maintenance plan submission 
includes NOX and PM2.5 MVEBs for the bi-state 
Louisville Area for 2015 and 2025, the last year of the maintenance 
plan. EPA reviewed the NOX and PM2.5 MVEBs 
through the adequacy process described in Section I.
    EPA intends to make its determination on the adequacy of the 2015 
and 2025 MVEBs for the bi-state Louisville Area for transportation 
conformity purposes in the near future by completing the adequacy 
process that was started on January 24, 2012. If EPA finds these MVEBs 
adequate or takes final action to approve them into the Kentucky SIP, 
these new MVEBs for NOX and PM2.5 must be used 
for future transportation conformity determinations until such time 
that the 1997 PM2.5 NAAQS is consider revoked for this Area. 
EPA's most recently promulgated PM2.5 implementation rule 
provides that the 1997 PM2.5 NAAQS will be revoked for any 
area that is redesignated for the NAAQS upon the effective date of that 
redesignation. In the meanwhile, for required regional emissions 
analysis years between 2015 and 2024, the applicable budgets will be 
the new 2015 MVEBs established in the maintenance plan. For years 2025 
and beyond, the applicable budgets will be the new 2025 MVEB.

IX. 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. Approval of 
Kentucky's redesignation request would change the legal designation of 
Bullitt and Jefferson Counties in Kentucky for the 1997 Annual 
PM2.5 NAAQS, found at 40 CFR part 81, from nonattainment to 
attainment. Approval of Kentucky's associated SIP revision would also 
incorporate a plan for maintaining the 1997 Annual PM2.5 
NAAQS in the Area through 2025 into the Kentucky SIP. This maintenance 
plan includes contingency measures to remedy any future violations of 
the 1997 Annual PM2.5 NAAQS and procedures for evaluation of 
potential violations. The maintenance plan also includes NOX

[[Page 3250]]

and PM2.5 MVEBs for the bi-state Louisville Area. The 
proposed NOX and PM2.5 MVEBs for 2025 for the bi-
state Louisville Area are 9,311.76 tpy and 324.04 tpy, respectively. 
Kentucky also chose to establish an interim year MVEBs for 2015 of 
17,700.95 tpy and 580.69 tpy for NOX and PM2.5, 
respectively.

X. Proposed Actions

    EPA is proposing to: (1) Approve the maintenance plan for the 
Kentucky portion of the bi-state Louisville Area, including the 
PM2.5 and NOX MVEBs for 2015 and 2025 for the 
entire bi-state Louisville Area, and incorporate it into the Kentucky 
SIP, and (2) approve Kentucky's redesignation request for the 1997 
PM2.5 NAAQS for the Kentucky portion of the bi-state 
Louisville Area. Further as part of this proposed action, EPA is also 
describing the status of its adequacy determination for the 
PM2.5 and NOX MVEBs for 2015 and 2025 in 
accordance with 40 CFR 93.118(f)(1).
    If finalized, approval of the redesignation request would change 
the official designation of Bullitt and Jefferson Counties in Kentucky 
for the 1997 Annual PM2.5 NAAQS, found at 40 CFR part 81 
from nonattainment to attainment, as found at 40 CFR part 81.

XI. Statutory and Executive Order Reviews

    Under the CAA, redesignation of an area to attainment and the 
accompanying approval of a maintenance plan under section 107(d)(3)(E) 
are actions that affect the status of a geographical area and do not 
impose any additional regulatory requirements on sources beyond those 
imposed by state law. A redesignation to attainment does not in and of 
itself create any new requirements, but rather results in the 
applicability of requirements contained in the CAA for areas that have 
been redesignated to attainment. Moreover, the Administrator is 
required to approve a SIP submission that complies with the provisions 
of the Act and applicable Federal regulations. See 42 U.S.C. 7410(k); 
40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to 
approve state choices, provided that they meet the criteria of the CAA. 
Accordingly, these proposed actions merely approve Commonwealth law as 
meeting federal requirements and do not impose additional requirements 
beyond those imposed by state law. For that reason, these proposed 
actions:
     Are not significant regulatory actions subject to review 
by the Office of Management and Budget under Executive Order 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January, 21, 2011);
     do not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     are certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     do not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     do not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     are not economically significant regulatory actions based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     are not significant regulatory actions subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     are not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     will not have disproportionate human health or 
environmental effects under Executive Order 12898 (59 FR 7629, February 
16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications as specified by 
Executive Order 13175 (65 FR 67249, November 9, 2000), nor will it 
impose substantial direct costs of tribal governments or preempt tribal 
law.

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen oxides, Particulate 
matter, Reporting and recordkeeping requirements, Sulfur oxides, 
Volatile organic compounds.

40 CFR Part 81

    Environmental protection, Air pollution control.

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

    Dated: December 23, 2016.
Heather McTeer Toney,
Regional Administrator, Region 4.
[FR Doc. 2017-00324 Filed 1-10-17; 8:45 am]
 BILLING CODE 6560-50-P