Document ID: EPA-R04-OAR-2016-0601-0001
Agency: epa
Document Type: Proposed Rule
Title: Air Quality State Implementation Plans; Approvals and Promulgations: Kentucky; Redesignation of the Kentucky Portion of the Cincinnati-Hamilton 2008 8-Hour Ozone Nonattainment Area to Attainment
Posted Date: 2017-05-01T04:00Z

[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Proposed Rules]
[Pages 20297-20310]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08643]

[[Page 20297]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R04-OAR-2016-0601; FRL-9961-32-Region 4]

Air Plan Approval and Designation of Areas; KY; Redesignation of 
the Kentucky Portion of the Cincinnati-Hamilton 2008 8-Hour Ozone 
Nonattainment Area to Attainment

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: On August 26, 2016, 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 Kentucky portion of the tri-state Cincinnati-
Hamilton, Ohio-Kentucky-Indiana 2008 8-hour ozone nonattainment area 
(hereinafter referred to as the ``Cincinnati-Hamilton, OH-KY-IN Area'' 
or ``Area'') to attainment for the 2008 8-hour ozone National Ambient 
Air Quality Standards (NAAQS) and to approve the portions of the State 
Implementation Plan (SIP) revision containing a maintenance plan and 
base year emissions inventory for the Area. EPA is proposing to approve 
the Commonwealth's base year emissions inventory for the Kentucky 
portion of the Area; to approve the Commonwealth's plan for maintaining 
attainment of the 2008 8-hour ozone NAAQS in the Area, including motor 
vehicle emission budgets (MVEBs) for nitrogen oxides (NOx) and volatile 
organic compounds (VOC) for the years 2020 and 2030 for the Kentucky 
portion of the Area; and to redesignate the Kentucky portion of the 
Area to attainment for the 2008 8-hour ozone NAAQS. Through separate 
actions, EPA has approved the redesignation request and maintenance 
plan for the Ohio portion of the Area and has proposed to approve the 
redesignation request and maintenance plan for the Indiana portion of 
the Area.

DATES: Comments must be received on or before May 31, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2016-0601 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: Richard Wong, Air Regulatory 
Management Section, Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 
30303-8960. Richard Wong may be reached by phone at (404) 562-8726 or 
via electronic mail at wong.richard@epa.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. What are the actions EPA is proposing to take?
II. What is the background for EPA's proposed actions?
III. What are the criteria for redesignation?
IV. Why is EPA proposing these actions?
V. What is EPA's analysis of the redesignation request and August 
26, 2016, SIP submission?
VI. What is EPA's analysis of Kentucky's proposed NOX and 
VOC MVEBs for the Kentucky portion of the area?
VII. What is the status of EPA's adequacy determination for the 
proposed NOX and VOC MVEBs for the Kentucky portion of 
the area?
VIII. What is the effect of EPA's proposed actions?
IX. Proposed actions
X. Statutory and executive order reviews

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

    EPA is proposing to take the following three separate, but related, 
actions: (1) To approve the base year emissions inventory for the 2008 
8-hour ozone NAAQS for the Kentucky portion of the Area and incorporate 
it into the Kentucky SIP; (2) to approve Kentucky's plan for 
maintaining the 2008 8-hour ozone NAAQS (maintenance plan), including 
the associated MVEBs for the Kentucky portion of the Area, and 
incorporate it into the SIP; and (3) to redesignate the Kentucky 
portion of the Area to attainment for the 2008 8-hour ozone NAAQS. The 
Cincinnati-Hamilton, OH-KY-IN Area is composed of portions of Boone, 
Campbell, and Kenton Counties in Kentucky; Butler, Clermont, Clinton, 
Hamilton, and Warren Counties in Ohio; and a portion of Dearborn County 
in Indiana. These proposed actions are summarized below and described 
in greater detail throughout this notice of proposed rulemaking.
    Based on the 2008 8-hour ozone NAAQS nonattainment designation for 
the Area, Kentucky was required to develop a nonattainment SIP revision 
addressing certain CAA requirements. Among other things, the 
Commonwealth was required to submit a SIP revision addressing base year 
emissions inventory requirements pursuant to CAA section 182(a)(1) for 
its portion of the Area. EPA is proposing to approve Kentucky's 2011 
base year inventory as satisfying section 182(a)(1).
    EPA is also proposing to approve Kentucky's maintenance plan for 
its portion of the 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 keep the Area in attainment of the 2008 8-hour ozone NAAQS through 
2030. The maintenance plan includes 2020 and 2030 MVEBs for NOx and VOC 
for the Kentucky portion of the Area for transportation conformity 
purposes. 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 
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 the portions of 
Boone, Campbell, and Kenton Counties within the Kentucky portion of the 
Area, as found at 40 CFR part 81, from nonattainment to attainment for 
the 2008 8-hour ozone NAAQS.
    EPA is also notifying the public of the status of EPA's adequacy 
process for the MVEBs for the Kentucky portion of the Area. The 
Adequacy comment period began on December 6, 2016, with EPA's posting 
of the availability of Kentucky's submissions on EPA's Adequacy Web 
site (https://www.epa.gov/state-and-local-transportation/state-implementation-plans-sip-submissions-currently-under-epa#cincinnati-hamilton-(KY)). The Adequacy comment period for these MVEBs closed on 
January 5, 2017. No comments, adverse or otherwise, were received 
during the Adequacy comment period.

[[Page 20298]]

Please see section VII of this proposed rulemaking for further 
explanation of this process and for more details on the MVEBs.
    In summary, today's notice of proposed rulemaking is in response to 
Kentucky's August 26, 2016, redesignation request and associated SIP 
submission that address the specific issues summarized above and the 
necessary elements described in section 107(d)(3)(E) of the CAA for 
redesignation of the Kentucky portion of the Cincinnati-Hamilton, OH-
KY-IN Area to attainment for the 2008 8-hour ozone NAAQS.\1\
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    \1\ While Kentucky's transmittal letter is dated August 5, 2016, 
the submission was not officially provided to EPA for action until 
August 26, 2016.
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II. What is the background for EPA's proposed actions?

    On March 12, 2008, EPA revised both the primary and secondary NAAQS 
for ozone to a level of 0.075 parts per million (ppm) to provide 
increased protection of public health and the environment. See 73 FR 
16436 (March 27, 2008). The 2008 ozone NAAQS retains the same general 
form and averaging time as the 0.08 ppm NAAQS set in 1997, but is set 
at a more protective level. Under EPA's regulations at 40 CFR part 50, 
the 2008 8-hour ozone NAAQS is attained when the 3-year average of the 
annual fourth highest daily maximum 8-hour average ambient air quality 
ozone concentrations is less than or equal to 0.075 ppm. See 40 CFR 
50.15.
    Effective July 20, 2012, EPA designated any area that was violating 
the 2008 8-hour ozone NAAQS based on the three most recent years (2008-
2010) of air monitoring data as a nonattainment area. See 77 FR 30088 
(May 21, 2012). The Cincinnati-Hamilton, OH-KY-IN Area was designated 
as a marginal ozone nonattainment area. See 40 CFR 81.318. Areas that 
were designated as marginal nonattainment areas were required to attain 
the 2008 8-hour ozone NAAQS no later than July 20, 2015, based on 2012-
2014 monitoring data. On May 4, 2016 (81 FR 26697), EPA published its 
determination that the Area had attained the 2008 8-hour ozone NAAQS by 
the attainment deadline.

III. What are the criteria for redesignation?

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

    1. ``Ozone and Carbon Monoxide Design Value Calculations,'' 
Memorandum from Bill Laxton, Director, Technical Support Division, 
June 18, 1990;
    2. ``Maintenance Plans for Redesignation of Ozone and Carbon 
Monoxide Nonattainment Areas,'' Memorandum from G. T. Helms, Chief, 
Ozone/Carbon Monoxide Programs Branch, April 30, 1992;
    3. ``Contingency Measures for Ozone and Carbon Monoxide (CO) 
Redesignations,'' Memorandum from G. T. Helms, Chief, Ozone/Carbon 
Monoxide Programs Branch, June 1, 1992;
    4. ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (hereinafter referred to as 
the ``Calcagni Memorandum'');
    5. ``State Implementation Plan (SIP) Actions Submitted in 
Response to Clean Air Act (CAA) Deadlines,'' Memorandum from John 
Calcagni, Director, Air Quality Management Division, October 28, 
1992;
    6. ``Technical Support Documents (TSDs) for Redesignation of 
Ozone and Carbon Monoxide (CO) Nonattainment Areas,'' Memorandum 
from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs Branch, 
August 17, 1993;
    7. ``State Implementation Plan (SIP) Requirements for Areas 
Submitting Requests for Redesignation to Attainment of the Ozone and 
Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) 
On or After November 15, 1992,'' Memorandum from Michael H. Shapiro, 
Acting Assistant Administrator for Air and Radiation, September 17, 
1993;
    8. ``Use of Actual Emissions in Maintenance Demonstrations for 
Ozone and CO Nonattainment Areas,'' Memorandum from D. Kent Berry, 
Acting Director, Air Quality Management Division, November 30, 1993;
    9. ``Part D New Source Review (Part D NSR) Requirements for 
Areas Requesting Redesignation to Attainment,'' Memorandum from Mary 
D. Nichols, Assistant Administrator for Air and Radiation, October 
14, 1994 (hereinafter referred to as the ``Nichols Memorandum''); 
and
    10. ``Reasonable Further Progress, Attainment Demonstration, and 
Related Requirements for Ozone Nonattainment Areas Meeting the Ozone 
National Ambient Air Quality Standard,'' Memorandum from John S. 
Seitz, Director, Office of Air Quality Planning and Standards, May 
10, 1995.

IV. Why is EPA proposing these actions?

    On August 26, 2016, Kentucky requested that EPA redesignate the 
Kentucky portion of the Area to attainment for the 2008 8-hour ozone 
NAAQS and approve the associated SIP revision submitted on the same 
date containing the base year inventory and the maintenance plan for 
the Kentucky portion of the Area. As mentioned above, on May 4, 2016 
(81 FR 26697), EPA determined that the entire Cincinnati-Hamilton, OH-
KY-IN Area attained the 2008 8-hour ozone NAAQS by the attainment date 
based on 2012-2014 data. On December 16, 2016 (81 FR 91035), in 
redesignating the Ohio portion of the Area to attainment, EPA 
determined that the entire Area continued to attain the standard based 
on 2013-2015 data.\2\ EPA's evaluation indicates that the Kentucky 
portion of the Area meets the requirements for redesignation as set 
forth in section 107(d)(3)(E), including the maintenance plan 
requirements under section 175A of the CAA. Also, based on Kentucky's 
August 26, 2016, submittal, EPA is proposing to determine that the base 
year emissions inventory, included in Kentucky's August 26, 2016, 
submittal, meets the requirements under CAA section 182(a)(1). Approval 
of the base year emissions inventory is a prerequisite to redesignating 
an ozone nonattainment area to attainment. As a result of these 
proposed findings, EPA is proposing to take the actions summarized in 
section I of this notice.
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    \2\ EPA has also proposed to redesignate the Indiana portion of 
the Area. See 81 FR 95081 (December 27, 2016).
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V. What is EPA's analysis of the redesignation request and August 26, 
2016, SIP submission?

    As stated above, in accordance with the CAA, EPA proposes to: (1) 
Approve the 2008 8-hour ozone NAAQS base year emissions inventory for 
the

[[Page 20299]]

Kentucky portion of the Cincinnati-Hamilton, OH-KY-IN Area and 
incorporate it into the SIP; (2) approve Kentucky's 2008 8-hour ozone 
NAAQS maintenance plan, including the associated MVEBs, and incorporate 
it into the Kentucky SIP; and (3) redesignate the Kentucky portion of 
the Area to attainment for the 2008 8-hour ozone NAAQS. The five 
redesignation criteria provided under CAA section 107(d)(3)(E) are 
discussed in greater detail for the Kentucky portion of the Area in 
section V.B, below.

A. Emissions Inventory

    Section 182(a)(1) of the CAA requires states to submit a 
comprehensive, accurate, and current inventory of actual emissions from 
all sources of the relevant pollutant or pollutants in each ozone 
nonattainment area. The section 182(a)(1) base year emissions inventory 
is defined in the SIP Requirements Rule \3\ as ``a comprehensive, 
accurate, current inventory of actual emissions from sources of NOx and 
VOC emitted within the boundaries of the nonattainment area as required 
by CAA section 182(a)(1).'' See 40 CFR 51.1100(bb). The inventory year 
must be selected consistent with the baseline year for an RFP plan as 
required by 40 CFR 51.1110(b),\4\ and the inventory must include actual 
ozone season day emissions as defined in 40 CFR 51.1100(cc) \5\ and 
contain data elements consistent with the detail required by 40 CFR 
part 51, subpart A. See 40 CFR 51.1115(a), (c), (e). In addition, the 
point source emissions included in the inventory must be reported 
according to the point source emissions thresholds of the Air Emissions 
Reporting Requirements (AERR) in 40 CFR part 51, subpart A. See 40 CFR 
51.1115(d).
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    \3\ On March 6, 2015, EPA finalized a rule entitled 
``Implementation of the 2008 National Ambient Air Quality Standards 
for Ozone: State Implementation Plan Requirements'' (SIP 
Requirements Rule) that establishes the requirements that state, 
tribal, and local air quality management agencies must meet as they 
develop implementation plans for areas where air quality exceeds the 
2008 8-hour ozone NAAQS. See 80 FR 12264.
    \4\ 40 CFR 51.1110(b) states that ``at the time of designation 
for the 2008 ozone NAAQS the baseline emissions inventory shall be 
the emissions inventory for the most recent calendar year for which 
a complete triennial inventory is required to be submitted to EPA 
under the provisions of subpart A of this part. States may use an 
alternative baseline emissions inventory provided the state 
demonstrates why it is appropriate to use the alternative baseline 
year, and provided that the year selected is between the years 2008 
to 2012.''
    \5\ ``Ozone season day emissions'' is defined as ``an average 
day's emissions for a typical ozone season work weekday. The state 
shall select, subject to EPA approval, the particular month(s) in 
the ozone season and the day(s) in the work week to be represented, 
considering the conditions assumed in the development of RFP plans 
and/or emissions budgets for transportation conformity.'' See 40 CFR 
51.1100(cc).
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    Kentucky selected 2011 as the base year for the CAA section 
182(a)(1) emissions inventory which is the year corresponding with the 
first triennial inventory under 40 CFR part 51, subpart A. The 
emissions inventory is based on data developed and submitted by DAQ to 
EPA's 2011 National Emissions Inventory (NEI), and it contains data 
elements consistent with the detail required by 40 CFR part 51, subpart 
A.\6\
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    \6\ Data downloaded from the EPA EIS from the 2011 NEI was 
subjected to quality assurance procedures described under quality 
assurance details under 2011 NEI Version 1 Documentation located at: 
http://www.epa.gov/ttn/chief/net/2011inventory.html#inventorydoc. 
The quality assurance and quality control procedures and measures 
associated with this data are outlined in the State's EPA-approved 
Emission Inventory Quality Assurance Project Plan.
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    Kentucky's emissions inventory for its portion of the Area provides 
2011 anthropogenic emissions data for NOX and VOC for the 
following general source categories: point (Electric Generating Units 
and Non-Electric Generating Units and aircraft emissions),\7\ area, 
non-road mobile, on-road mobile. All emissions information provided is 
based on the partial county boundaries, through the applicable census 
tracts, that comprise the Kentucky portion of the Area. Table 1, below, 
provides a summary of the emissions inventory.
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    \7\ The emissions inventories in Kentucky's submission identify 
aircraft emissions as a standalone category and refer to these 
emissions as ``air emissions'' for consistency with the inventories 
provided by Indiana and Ohio for their respective portions of the 
Area. Indiana Department of Environmental Management (IDEM) provided 
aircraft emissions data for Kentucky, and Kentucky included these 
emissions in Boone County where the Cincinnati/Northern Kentucky 
International Airport is located. EPA has included these emissions 
within the point source category per the AERR.

                  Table 1--2011 Point, Area, Non-Road Mobile, and On-Road Mobile Sources Emissions for the Kentucky Portion of the Area
                                                           [tons per typical summer day (tsd)]
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                                                          Point **                    Area                 Non-road mobile           On-road mobile
                    County *                     -------------------------------------------------------------------------------------------------------
                                                      NOX          VOC          NOX          VOC          NOX          VOC          NOX          VOC
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Boone County....................................         9.23         2.15         0.43         2.66         1.06         1.49         6.90         3.30
Campbell County.................................         0.17         0.22         0.49         1.29         0.38         0.40         4.30         2.05
Kenton County...................................         0.01         0.51         1.02         2.51         0.77         0.62         6.53         3.12
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* Nonattainment portion of each county.
** Includes aircraft emissions.

    NOX and VOC emissions were calculated for a typical 
summer July day, taking into account the seasonal adjustment factor for 
summer operations. More detail on the inventory emissions for 
individual sources categories is provided below and in Appendix C-1 to 
Kentucky's August 26, 2016, SIP submittal.
    Point sources are large, stationary, identifiable sources of 
emissions that release pollutants into the atmosphere. The inventory 
contains actual point source emissions data for facilities located 
within the nonattainment boundary for the Kentucky portion of the Area 
based on the Kentucky Emissions Inventory database.\8\
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    \8\ As discussed above, EPA has included aircraft emissions 
within the point source category per the AERR.
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    Area sources are small emission stationary sources which, due to 
their large number, collectively have significant emissions (e.g., dry 
cleaners, service stations). Emissions for these sources were estimated 
by multiplying an emission factor by such indicators of collective 
emissions activity as production, number of employees, or population. 
Indiana Department of Environmental Management (IDEM) provided area 
source emissions data for each county data for in the entire Area. Data 
was obtained from the Ozone NAAQS Emissions Modeling Platform (2011 
v6.1).
    On-road mobile sources include vehicles used on roads for 
transportation of passengers or freight. Kentucky developed its on-road 
emissions inventory using EPA's Motor

[[Page 20300]]

Vehicle Emissions Simulator (MOVES) model with input data from the 
Ohio-Kentucky-Indiana Regional Council of Governments (OKI).\9\ County 
level on-road modeling was conducted using county-specific vehicle 
population and other local data. Kentucky developed its inventory 
according to the current EPA emissions inventory guidance for on-road 
mobile sources using MOVES version 2014.
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    \9\ Kentucky used MOVES2014 technical guidance: Using MOVES to 
Prepare Emission Inventories in State Implementation Plans and 
Transportation Conformity, EPA-420-b-15-007 (January 2015).
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    Non-road mobile sources include vehicles, engines, and equipment 
used for construction, agriculture, recreation, and other purposes that 
do not use roadways (e.g., lawn mowers, construction equipment, and 
railroad locomotives). IDEM provided non-road mobile source emissions 
data for each county in the Area. Data was obtained from the Ozone 
NAAQS Emissions Modeling Platform (2011 v6.1).
    For the reasons discussed above, EPA proposes to determine that 
Kentucky's emissions inventory meets the requirements under CAA section 
182(a)(1) and the SIP Requirements Rule for the 2008 8-hour ozone 
NAAQS. Approval of Kentucky's redesignation request is contingent upon 
EPA's final approval of the base year emissions inventory for the 2008 
8-hour ozone NAAQS.

B. Redesignation Request and Maintenance Demonstration

    In accordance with the CAA, EPA proposes to approve the 2008 8-hour 
ozone NAAQS maintenance plan, including the associated MVEBs, and 
incorporate it into the Kentucky SIP and to redesignate the Kentucky 
portion of the Area to attainment for the 2008 8-hour ozone NAAQS. The 
five redesignation criteria provided under the CAA section 107(d)(3)(E) 
are discussed in greater detail for the Area in the following 
paragraphs in this section.
    Criteria (1)--The Cincinnati-Hamilton, OH-KY-IN Area has attained 
the 2008 8-hour ozone NAAQS.
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has attained the applicable 
NAAQS. See CAA section 107(d)(3)(E)(i)). For ozone, an area may be 
considered to be attaining the 2008 8-hour ozone NAAQS if it meets the 
2008 8-hour ozone NAAQS, as determined in accordance with 40 CFR 50.15 
and Appendix I of part 50, based on three complete, consecutive 
calendar years of quality-assured air quality monitoring data. To 
attain this NAAQS, the 3-year average of the fourth-highest daily 
maximum 8-hour average ozone concentrations measured at each monitor 
within an area over each year must not exceed 0.075 ppm. Based on the 
data handling and reporting convention described in 40 CFR part 50, 
Appendix I, the NAAQS are attained if the design value is 0.075 ppm or 
below. The data must be collected and quality-assured in accordance 
with 40 CFR part 58 and recorded in EPA's Air Quality System (AQS). The 
monitors generally should have remained at the same location for the 
duration of the monitoring period required for demonstrating 
attainment.
    On May 4, 2016 (81 FR 26697), EPA determined that the Cincinnati-
Hamilton, OH-KY-IN Area attained the 2008 8-hour ozone NAAQS by the 
attainment date. In that action, EPA reviewed complete, quality-
assured, and certified monitoring data from monitoring stations in the 
Area for the 2008 8-hour ozone NAAQS for 2012 through 2014 and 
determined that the design values for each monitor in the Area are less 
than the standard of 0.075 ppm for that time period. Further, on 
December 16, 2016, in association with the redesignation of the Ohio 
portion of the Area, EPA determined that the Area continued to attain 
the 2008 8-hour ozone NAAQS based on complete, quality-assured, and 
certified monitoring data from 2013 through 2015. See 81 FR 91035. The 
fourth-highest 8-hour ozone values at each monitor for 2012, 2013, 
2014, 2015, and the 3-year averages of these values (i.e., design 
values), are summarized in Table 2, below. The 3-year design value for 
2013-2015 for the Cincinnati-Hamilton, OH-KY-IN Area is 0.071 ppm,\10\ 
which meets the NAAQS.
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    \10\ The design value for an area is the highest 3-year average 
of the annual fourth-highest daily maximum 8-hour concentration 
recorded at any monitor in the area.

                           Table 2--Monitoring Data and Design Value Concentrations for the Cincinnati-Hamilton, OH-KY-IN Area
                                                                          [ppm]
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                                                                       4th Highest 8-hour ozone value (ppm)                3-Year design   3-Year design
                                                         ----------------------------------------------------------------  values (ppm)    values (ppm)
                Location                      Site ID                                                                    -------------------------------
                                                               2012            2013            2014            2015          2012-2014       2013-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
Boone, KY...............................     21-015-0003           0.074           0.059           0.062           0.062           0.065           0.061
Campbell, KY............................     21-037-3002           0.084           0.072           0.071           0.071           0.075           0.071
Butler, OH..............................     39-017-0004           0.083           0.068           0.070           0.070           0.073           0.069
Butler, OH..............................     39-017-0018           0.084           0.068           0.069           0.070           0.073           0.069
Butler, OH..............................     39-017-9991           0.085           0.069           0.069           0.068           0.074           0.068
Clermont, OH............................     39-025-0022           0.091           0.066           0.068           0.070           0.075           0.068
Clinton, OH.............................     39-027-1002           0.086           0.064           0.070           0.070           0.073           0.068
Hamilton, OH............................     39-061-0006           0.087           0.069           0.070           0.072           0.075           0.070
Hamilton, OH............................     39-061-0010           0.083           0.064           0.073           0.070           0.073           0.069
Hamilton, OH............................     39-061-0040           0.082           0.069           0.069           0.071           0.073           0.069
Warren, OH..............................     39-165-0007           0.080           0.067           0.071           0.071           0.072           0.069
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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.\11\ 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, the Commonwealth of Kentucky has 
committed to continue monitoring in the Kentucky portion of the Area in 
accordance with 40 CFR part 58.
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    \11\ This 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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[[Page 20301]]

    Criteria (2)--Kentucky has a fully approved SIP under section 
110(k) for the Kentucky portion of the Area; and Criteria (5)--Kentucky 
has met all applicable requirements under section 110 and part D of 
title I of the CAA.
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the state has met all applicable 
requirements under section 110 and part D of title I of the CAA (CAA 
section 107(d)(3)(E)(v)) and that the state has a fully approved SIP 
under section 110(k) for the area (CAA section 107(d)(3)(E)(ii)). EPA 
proposes to find that Kentucky 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, if EPA approves the base year emissions 
inventory, 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) and 
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 proposed 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 Cincinnati-Hamilton, OH-KY-IN Area Has 
Met All Applicable Requirements Under Section 110 and Part D of the CAA
    General SIP requirements. General SIP elements and requirements are 
delineated in section 110(a)(2) of title I, part A of the CAA. These 
requirements include, but are not limited to, the following: Submittal 
of a SIP that has been adopted by the state after reasonable public 
notice and hearing; provisions for establishment and operation of 
appropriate procedures needed to monitor ambient air quality; 
implementation of a source permit program; provisions for the 
implementation of part C requirements (Prevention of Significant 
Deterioration (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(a)(2) 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(a)(2) and 
part D requirements which are linked with a particular area's 
designation and classification are the relevant measures to evaluate in 
reviewing a redesignation request. This approach is consistent with 
EPA's existing policy on applicability (i.e., for redesignations) of 
conformity and oxygenated fuels requirements, as well as with section 
184 ozone transport requirements. See Reading, Pennsylvania, proposed 
and final rulemakings (61 FR 53174-53176, October 10, 1996), (62 FR 
24826, May 7, 2008); Cleveland-Akron-Loraine, Ohio, final rulemaking 
(61 FR 20458, May 7, 1996); and Tampa, Florida, final rulemaking at (60 
FR 62748, December 7, 1995). See also the discussion on this issue in 
the Cincinnati, Ohio, redesignation (65 FR 37890, June 19, 2000), and 
in the Pittsburgh, Pennsylvania, redesignation (66 FR 50399, October 
19, 2001).
    Title I, Part D, applicable SIP requirements. Section 172(c) of the 
CAA sets forth the general nonattainment plan requirements for 
nonattainment areas. Subpart 2 of part D, which includes section 182 of 
the CAA, establishes specific requirements for ozone nonattainment 
areas depending on the area's nonattainment classification. In marginal 
ozone nonattainment area such as the Cincinnati-Hamilton, OH-KY-IN 
Area, the specific requirements of section 182(a) apply in lieu of the 
demonstration of attainment and contingency measures required by 
section 172(c). See 42 U.S.C. 7511a(a). The 182(a) elements and the 
remaining 172(c) elements that apply to the Area are addressed below. A 
thorough discussion of the requirements contained in sections 172(c) 
and 182 can be found in the General Preamble for Implementation of 
Title I (57 FR 13498).
    Section 172(c) Requirements. Section 172(c)(3) requires submission 
and approval of a comprehensive, accurate, and current inventory of 
actual emissions. This requirement is superseded by the inventory 
requirement in section 182(a)(1) discussed below.
    Section 172(c)(4) requires the identification and quantification of 
allowable emissions for major new and modified stationary sources in a 
nonattainment area, and section 172(c)(5) requires permits for the 
construction and operation of new and modified major stationary sources 
in the 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 the 
Nichols Memorandum. See also rulemakings for the Illinois portion of 
the St. Louis Area (77 FR 34819, 34826, June 12, 2012); Louisville, 
Kentucky (66 FR 53665, 53669, October 23, 2001); Grand Rapids, Michigan 
(61 FR 31831, 31834-31837, June 21, 1996); Cleveland-Akron-Lorain, Ohio 
(61 FR 20458, 20469-20470, May 7, 1996); Detroit, Michigan (60 FR 
12459, 12467-12468, March 7, 1995). Kentucky has demonstrated that the 
Area will be able to maintain the standard without part D NSR in 
effect; therefore, EPA concludes that the Commonwealth need not have a 
fully approved part D NSR program prior to approval of the 
redesignation request. Kentucky's PSD program will become effective in 
the Area upon redesignation to attainment.
    Section 182(a) Requirements. Section 182(a)(1) requires states to 
submit a comprehensive, accurate, and current inventory of actual 
emissions from sources of NOX and VOC emitted within the 
boundaries of the ozone nonattainment area. Kentucky provided a base 
year emissions inventory for its portion of the Area to EPA in the 
August

[[Page 20302]]

26, 2016, SIP submission to address the section 182(a)(1) requirements 
for the Kentucky portion of the Area. As discussed in Section V.A 
above, EPA is proposing to approve Kentucky's 2011 base year emissions 
inventory in today's proposed action. Kentucky's section 182(a)(1) 
inventory must be approved before EPA can take final action to approve 
the Commonwealth's redesignation request for the Kentucky portion of 
the Area.
    Under section 182(a)(2)(A), states with ozone nonattainment areas 
that were designated prior to the enactment of the 1990 CAA amendments 
were required to submit, within six months of classification, all rules 
and corrections to existing VOC RACT rules that were required under 
section 172(b)(3) of the CAA (and related guidance) prior to the 1990 
CAA amendments. The Area is not subject to the section 182(a)(2) RACT 
``fix up'' because the Area was designated as nonattainment after the 
enactment of the 1990 CAA amendments. Furthermore, the Commonwealth 
complied with this requirement under the 1-hour ozone NAAQS. See 59 FR 
32343 (June 23, 1994) and 60 FR 31087 (June 13, 1995).
    Section 182(a)(2)(B) requires each state with a marginal ozone 
nonattainment area that implemented, or was required to implement, an 
inspection and maintenance (I/M) program prior to the 1990 CAA 
amendments to submit a SIP revision providing for an I/M program no 
less stringent than that required prior to the 1990 amendments or 
already in the SIP at the time of the amendments, whichever is more 
stringent. The Kentucky portion of the Area is not subject to the 
section 182(a)(2)(B) requirement because it was designated as 
nonattainment after the enactment of the 1990 CAA amendments and did 
not have an I/M program in place prior to those amendments.
    Regarding the permitting and offset requirements of section 
182(a)(2)(C) and section 182(a)(4), EPA has determined that areas being 
redesignated need not comply with the requirement that a NSR program be 
approved prior to redesignation, provided that the area demonstrates 
maintenance of the NAAQS without part D NSR, because PSD requirements 
will apply after redesignation. As discussed above, Kentucky has a PSD 
program and has demonstrated that the Area will be able to maintain the 
standard without part D NSR in effect. Therefore, EPA concludes that 
the Commonwealth need not have a fully approved part D NSR program 
prior to approval of the redesignation request.
    Section 182(a)(3) requires states to submit periodic inventories 
and emissions statements. Section 182(a)(3)(A) requires states to 
submit a periodic inventory every three years. As discussed below in 
the section of this notice titled Criteria (4)(e), Verification of 
Continued Attainment, the Commonwealth will continue to update its 
emissions inventory at least once every three years. Under section 
182(a)(3)(B), each state with an ozone nonattainment area must submit a 
SIP revision requiring emissions statements to be submitted to the 
state by sources within that nonattainment area. Kentucky provided a 
SIP revision to EPA on November 18, 2015, addressing the section 
182(a)(3)(B) emissions statements requirement, and on January 28, 2016 
(81 FR 4896), EPA published a final rule approving this SIP revision.
    Section 176 Conformity Requirements. Section 176(c) of the CAA 
requires states to establish criteria and procedures to ensure that 
federally-supported or funded projects conform to the air quality 
planning goals in the applicable SIP. The requirement to determine 
conformity applies to transportation plans, programs, and projects that 
are developed, funded, or approved under title 23 of the United States 
Code (U.S.C.) and the Federal Transit Act (transportation conformity) 
as well as to all other federally supported or funded projects (general 
conformity). State transportation conformity SIP revisions must be 
consistent with federal conformity regulations relating to 
consultation, enforcement, and enforceability that EPA promulgated 
pursuant to its authority under the CAA.
    EPA interprets the conformity SIP requirements \12\ as not applying 
for purposes of evaluating a redesignation request under section 107(d) 
because state conformity rules are still required after redesignation 
and federal conformity rules apply where state rules have not been 
approved. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001) (upholding this 
interpretation); see also 60 FR 62748 (December 7, 1995) (redesignation 
of Tampa, Florida). Nonetheless, Kentucky has an approved conformity 
SIP for the Kentucky portion of the Area. See 76 FR 20780 (April 21, 
2010). Thus, EPA proposes that the Kentucky portion of the Cincinnati-
Hamilton, OH-KY-IN Area has satisfied all applicable requirements for 
purposes of redesignation under section 110 and part D of title I of 
the CAA.
---------------------------------------------------------------------------

    \12\ 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.
---------------------------------------------------------------------------

b. The Kentucky Portion of the Cincinnati-Hamilton, OH-KY-IN Area Has a 
Fully Approved Applicable SIP Under Section 110(k) of the CAA
    EPA has fully approved the Commonwealth's SIP for the Kentucky 
portion of the Area under section 110(k) of the CAA for all 
requirements applicable for purposes of redesignation with the 
exception of the 182(a)(1) emissions inventory. In today's proposed 
action, EPA is proposing to approve the Commonwealth's emissions 
inventory for the Kentucky portion of the Area and incorporate it into 
the Kentucky SIP.
    EPA may rely on prior SIP approvals in approving a redesignation 
request (see Calcagni Memorandum at p. 3; Southwestern Pennsylvania 
Growth Alliance v. Browner, 144 F.3d 984, 989-90 (6th Cir. 1998); Wall, 
265 F.3d 426) plus any additional measures it may approve in 
conjunction with a redesignation action (see 68 FR 25426 (May 12, 2003) 
and citations therein). Kentucky has adopted and submitted, and EPA has 
approved at various times, provisions addressing various SIP elements 
applicable for the ozone NAAQS (78 FR 14681, March 7, 2013, and 79 FR 
65143, November 3, 2014).
    As discussed above, EPA believes that the section 110 elements that 
are neither connected with nonattainment plan submissions nor linked to 
an area's nonattainment status are not applicable requirements for 
purposes of redesignation. With the exception of the section 182(a)(1) 
emissions inventory requirement, which is addressed in this proposal, 
EPA has approved all part D requirements applicable for purposes of 
this proposed redesignation.
    Criteria (3)--The air quality improvement in the Cincinnati-
Hamilton, OH-KY-IN Area is due to permanent and enforceable reductions 
in emissions resulting from implementation of the SIP and applicable 
federal air pollution control regulations and other permanent and 
enforceable reductions.
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the air quality improvement in the area 
is due to permanent and enforceable reductions in emissions resulting 
from implementation of the SIP, applicable federal air pollution 
control regulations, and other permanent and enforceable reductions. 
See CAA section 107(d)(3)(E)(iii). EPA has preliminarily determined 
that Kentucky has

[[Page 20303]]

demonstrated that the observed air quality improvement in the 
Cincinnati-Hamilton, OH-KY-IN Area is due to permanent and enforceable 
reductions in emissions resulting from federal measures and is not the 
result of unusually favorable weather conditions.
    An analysis performed by the Lake Michigan Air Directors Consortium 
(LADCO) supports the Commonwealth's conclusion that the improvement in 
air quality is due to permanent and enforceable emission reductions and 
not favorable meteorology.\13\ A classification and regression tree 
(CART) analysis was conducted with 2000 through 2014 data from three 
ozone monitoring sites in the Area. The goal of the analysis was to 
determine the meteorological and air quality conditions associated with 
ozone episodes, and construct trends for the days identified as sharing 
similar meteorological conditions. Regression trees were developed for 
the three monitors to classify each summer day by its ozone 
concentration and associated meteorological conditions. By grouping 
days with similar meteorology, the influence of meteorological 
variability on the underlying trend in ozone concentrations is 
partially removed and the remaining trend is presumed to be due to 
trends in precursor emissions or other non-meteorological influences. 
The CART analysis showed the resulting trends in ozone concentrations 
declining over the period examined, supporting the conclusion that the 
improvement in air quality was not due to unusually favorable 
meteorology.
---------------------------------------------------------------------------

    \13\ Ohio included the LADCO analysis as part of its 
redesignation request and associated SIP revision for the Ohio 
portion of the Area. These materials are available at Docket No. 
EPA-R05-OAR-2016-0269.
---------------------------------------------------------------------------

    In addition, EPA evaluated temperatures and precipitation during 
the 2012-2015 ozone seasons for comparison to long-term climatological 
normals. Table 3, below, provides temperature and precipitation data 
for the Area for the 2012-2015 period. This data was obtained from the 
National Oceanic and Atmospheric Administration's National Centers for 
Environmental Information (NCEI). Specifically, Table 3 provides 
overall average and average maximum ozone season temperatures and total 
ozone season precipitation; deviation from the mean 1948-2000 base 
period ozone season temperature and precipitation (termed the 
``anomaly''); and the rank of each year from the 69-year (1948-2016) 
period. A rank of 69 is given to the hottest or wettest year.

            Table 3--Cincinnati, Ohio Temperature and Precipitation Ozone Season (May-September) Data
----------------------------------------------------------------------------------------------------------------
                                                                               Years
                                                 ---------------------------------------------------------------
                                                       2012            2013            2014            2015
----------------------------------------------------------------------------------------------------------------
Average May-September Temperature [[deg]F]......            73.0            71.1            70.6            71.4
Anomaly from the long-term average [70.3 [deg]F]             2.7             0.8             0.3             1.1
Rank [since 1948, scale of 1-69] 1=coolest                    65              47              35              52
 69=warmest.....................................
Average maximum May-September temperature                   84.5            80.7            80.6            81.6
 [[deg]F].......................................
Anomaly from the long-term average maximum [81               3.5            -0.3            -0.4             0.6
 [deg]F]........................................
Rank [since 1948, scale of 1-69] 1=coolest                    67              29              28              42
 69=warmest.....................................
Precipitation [inches]..........................           15.61           24.04           19.05           18.64
Anomaly from the long-term average [18.27                  -2.66            5.77            0.78            0.37
 inches]........................................
Rank [since 1948, scale of 1-69] 1=driest                     17              63              42              38
 69=wettest.....................................
----------------------------------------------------------------------------------------------------------------

    The data in Table 3 indicates that the 2012 ozone season had 
maximum daily temperatures well above normal while 2013-2015 had 
maximum daily temperatures near normal (within a degree of normal). 
Average maximum temperatures during the 2012 ozone season were the 
third warmest from the period of record (1948-2016). Overall average 
ozone season temperatures during the 2012-2015 period ranged from 0.3 
to 2.7 degrees above normal. Total precipitation during the 2012 ozone 
season was below normal, the 2013 ozone season had above normal 
precipitation, and the 2014 and 2015 ozone seasons had near normal 
precipitation (within an inch of normal). Therefore, the 2012-2015 
period does not appear to have been abnormally conducive to reduced 
ozone formation and further supports the conclusion that the 
improvement in air quality was not due to unusually favorable 
meteorology.
    Federal measures enacted in recent years have resulted in permanent 
emission reductions in the Area. The federal measures that have been 
implemented include the following:
    Tier 2 Vehicle and Fuel Standards. On February 10, 2000 (65 FR 
6698), EPA promulgated Tier 2 motor vehicle emission standards and 
gasoline sulfur control requirements.\14\ These emission control 
requirements result in lower VOC and NOX emissions from new 
cars and light duty trucks, including sport utility vehicles. With 
respect to fuels, this rule required refiners and importers of gasoline 
to meet lower standards for sulfur in gasoline, which were phased in 
between 2004 and 2006. By 2006, refiners were required to meet a 30 ppm 
average sulfur level, with a maximum cap of 80 ppm. This reduction in 
fuel sulfur content ensures the effectiveness of low emission-control 
technologies. The Tier 2 tailpipe standards established in this rule 
were phased in for new vehicles between 2004 and 2009. EPA estimates 
that, when fully implemented, this rule will cut NOX and VOC 
emissions from light-duty vehicles and light-duty trucks by 
approximately 76 and 28 percent, respectively. NOX and VOC 
reductions from medium-duty passenger vehicles included as part of the 
Tier 2 vehicle program are estimated to be approximately 37,000 and 
9,500 tons per year, respectively, when fully implemented. In addition, 
EPA estimates that beginning in 2007, a reduction of 30,000 tons per 
year of NOX will result from the benefits of sulfur control 
on heavy-duty gasoline vehicles. Some of these emission reductions 
occurred by the attainment years and additional emission reductions 
will occur throughout the maintenance period, as older vehicles are 
replaced with newer, compliant model years.
---------------------------------------------------------------------------

    \14\ Kentucky also identified Tier 3 Motor Vehicle Emissions and 
Fuel Standards a federal measure. EPA issued this rule in April 28, 
2014 (79 FR 23414), which applies to light duty passenger cars and 
trucks. EPA promulgated this rule to reduce air pollution from new 
passenger cars and trucks beginning in 2017. While the reductions 
did not aid the Area in attaining the standard, emissions reductions 
from these standards will occur during the maintenance period.

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

[[Page 20304]]

    Non-Road Diesel Rule. On June 29, 2004 (69 FR 38958), EPA issued a 
rule adopting emissions standards for non-road diesel engines and 
sulfur reductions in non-road diesel fuel. This rule applies to diesel 
engines used primarily in construction, agricultural, and industrial 
applications. The rule is being phased in between 2008 through 2015, 
and when fully implemented, will reduce emissions of NOX, 
VOC, particulate matter, and carbon monoxide from these engines. It is 
estimated that compliance with this rule will cut NOX 
emissions from non-road diesel engines by up to 90 percent nationwide.
    Heavy-Duty Diesel Engine Rules. In July 2000,\15\ EPA issued a rule 
for on-highway heavy-duty diesel engines that includes standards 
limiting the sulfur content of diesel fuel. Emissions standards for 
NOX, VOC and PM were phased in between model years 2007 and 
2010. In addition, the rule reduced the highway diesel fuel sulfur 
content to 15 parts per million by 2007, leading to additional 
reductions in combustion NOX and VOC emissions. EPA has 
estimated future year emission reductions due to implementation of this 
rule. Nationally, EPA estimated that 2015 NOX and VOC 
emissions will decrease by 1,260,000 tons and 54,000 tons, 
respectively, and that 2030 NOX and VOC emissions will 
decrease by 2,570,000 tons and 115,000 tons, respectively.
---------------------------------------------------------------------------

    \15\ See 66 FR 5002 for further discussion.
---------------------------------------------------------------------------

    Non-road Spark-Ignition Engines and Recreational Engines Standards. 
On November 8, 2002 (67 FR 68242), EPA adopted emission standards for 
large spark-ignition engines such as those used in forklifts and 
airport ground-service equipment; recreational vehicles such as off-
highway motorcycles, all-terrain vehicles, and snowmobiles; and 
recreational marine diesel engines. These emission standards were 
phased in from model year 2004 through 2012. 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 reduce ambient 
concentrations of ozone, carbon monoxide, and fine particulate matter.
    National Emission Standards for Hazardous Air Pollutants (NESHAP) 
for Reciprocating Internal Combustion Engines. On March 3, 2010 (75 FR 
9648), EPA issued a rule to reduce hazardous air pollutants from 
existing diesel powered stationary reciprocating internal combustion 
engines, also known as compression ignition engines. Amendments to this 
rule were finalized on January 14, 2013 (78 FR 6674). EPA estimated 
that when this rule is fully implemented in 2013, NOX and 
VOC emissions from these engines will be reduced by approximately 9,600 
and 36,000 tons per year, respectively.
    Category 3 Marine Diesel Engine Standards. On April 30, 2010 (75 FR 
22896), EPA issued emission standards for marine compression-ignition 
engines at or above 30 liters per cylinder. Tier 2 emission standards 
apply beginning in 2011, and are expected to result in a 15 to 25 
percent reduction in NOX emissions from these engines. Final 
Tier 3 emission standards apply beginning in 2016 and are expected to 
result in approximately an 80 percent reduction in NOX from 
these engines.
    Clean Air Interstate Rule (CAIR)/Cross-State Air Pollution Rule 
(CSAPR). CAIR created regional cap-and-trade programs to reduce 
SO2 and NOX emissions in 28 eastern states, 
including Kentucky, that contributed to downwind nonattainment and 
maintenance of the 1997 8-hour ozone NAAQS and the 1997 
PM2.5 NAAQS. See 70 FR 25162 (May 12, 2005). In 2008, the 
United States Court of Appeals for the District of Columbia Circuit 
(D.C. Circuit) initially vacated CAIR in North Carolina v. EPA, 531 
F.3d 896 (D.C. Cir. 2008), but ultimately remanded the rule to EPA 
without vacatur in North Carolina v. EPA, 550 F.3d 1176, 1178 (D.C. 
Cir. 2008) to preserve the environmental benefits provided by CAIR. On 
August 8, 2011 (76 FR 48208), acting on the D.C. Circuit's remand, EPA 
promulgated 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 electric 
generating units (EGUs) in 28 states in the Eastern United States.
    Numerous parties filed petitions for review of CSAPR, and on August 
21, 2012, the D.C. Circuit vacated and remanded CSAPR to EPA. EME Homer 
City Generation, L.P. v. EPA, 696 F.3d 7, 38 (D.C. Cir. 2012). The 
United States Supreme Court reversed the D.C. Circuit's decision on 
April 29, 2014, and remanded the case 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 ozone-season 
NOX CSAPR budgets as to a number of states.\16\ EME Homer 
City Generation, L.P. v. EPA, 795 F.3d 118 (D.C. Cir. 2015). This 
litigation ultimately delayed implementation of CSAPR 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. Thus, the rule's Phase 2 budgets were originally 
promulgated to begin on January 1, 2014, and are now scheduled to begin 
on January 1, 2017.
---------------------------------------------------------------------------

    \16\ The court's decision did not affect Kentucky's CSAPR 
budgets.
---------------------------------------------------------------------------

    On September 17, 2016, EPA finalized an update to the CSAPR ozone 
season program. See 81 FR 74504 (October 26, 2016). The update 
addresses summertime transport of ozone pollution in the eastern United 
States that crosses state lines to help downwind states and communities 
meet and maintain the 2008 8-hour ozone NAAQS and addresses the 
remanded Phase 2 ozone season NOX budgets. The update 
withdraws these remanded NOX budgets, sets new Phase 2 CSAPR 
ozone season NOX emissions budgets for eight of the eleven 
states with remanded budgets, and removes the other three states from 
the CSAPR ozone season NOX trading program.\17\
---------------------------------------------------------------------------

    \17\ See 81 FR 74504 for further discussion.
---------------------------------------------------------------------------

    While the reduction in NOX emissions from the 
implementation of CSAPR will result in lower concentrations of 
transported ozone entering the Area throughout the maintenance period, 
EPA is proposing to approve the redesignation of the Kentucky portion 
of the Area without relying on those measures within Kentucky as having 
led to attainment of the 2008 ozone NAAQS or contributing to 
maintenance of that standard. The improvement in ozone air quality in 
the Area from 2011 (a year when the design value for the area was above 
the NAAQS) to 2014 (a year when the design value was below the NAAQS) 
is not due to CSAPR emissions reductions because, as noted above, CSAPR 
did not go into effect until January 1, 2015, after the Area was 
already attaining the standard. 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. In addition, EPA has preliminarily determined that the vast 
majority of reductions in emissions in the Kentucky portion of the Area 
from 2011-2014 were due to permanent and enforceable reductions in 
mobile source

[[Page 20305]]

VOC and NOX emissions. EPA found that mobile source 
emissions reductions account for 100 percent of the total 
NOX reductions and 92 percent of the VOC reductions within 
the Kentucky portion of the Area over this time period. NOX 
and VOC emissions in the Kentucky portion of the Area are projected to 
continue their downward trend throughout the maintenance period, driven 
primarily by mobile source measures. From 2014 to 2030, Kentucky 
projected that mobile source measures will account for 95 percent of 
the NOX emissions reductions and 85 percent of the VOC 
reductions in the Kentucky portion of the Area based on EPA-approved 
mobile source modeling.
    EPA proposes to find that the improvements in air quality in the 
Cincinnati-Hamilton, OH-KY-IN Area are due to real, permanent and 
enforceable reductions in NOX and VOC emissions. This 
preliminary determination is supported by the evaluation of emissions 
reductions in the Area between 2011 and 2014 discussed above.
    Criteria (4)--The Kentucky portion of the Cincinnati-Hamilton, OH-
KY-IN Area has a fully approved maintenance plan pursuant to section 
175A of the CAA.
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has a fully approved 
maintenance plan pursuant to section 175A of the CAA (CAA section 
107(d)(3)(E)(iv)). In conjunction with its request to redesignate the 
Kentucky portion of the Area to attainment for the 2008 8-hour ozone 
NAAQS, Kentucky submitted a SIP revision to provide for the maintenance 
of the 2008 8-hour ozone NAAQS for at least 10 years after the 
effective date of redesignation to attainment. EPA has made the 
preliminary determination that this maintenance plan meets the 
requirements for approval under section 175A of the CAA.
a. What is required in a maintenance plan?
    Section 175A of the CAA sets forth the elements of a maintenance 
plan for areas seeking redesignation from nonattainment to attainment. 
Under section 175A, the plan must demonstrate continued attainment of 
the applicable NAAQS for at least 10 years after the Administrator 
approves a redesignation to attainment. Eight years after the 
redesignation, the state must submit a revised maintenance plan 
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 
contingency measures as EPA deems necessary to assure prompt correction 
of any future 2008 8-hour ozone violations. The Calcagni Memorandum 
provides further guidance on the content of a maintenance plan, 
explaining that a maintenance plan should address five requirements: 
The attainment emissions inventory, maintenance demonstration, 
monitoring, verification of continued attainment, and a contingency 
plan. As discussed more fully below, EPA has preliminarily determined 
that Kentucky'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 determined that the Cincinnati-
Hamilton, OH-KY-IN Area has attained the 2008 8-hour ozone NAAQS based 
on quality-assured monitoring data for the 3-year period from 2012-2014 
and is continuing to attain the standard based on 2013-2015 data. See 
81 FR 26697 (May 4, 2016); 81 FR 91035 (December 16, 2016). Kentucky 
selected 2014 as the attainment year (i.e., attainment emissions 
inventory year) for developing a comprehensive emissions inventory for 
NOX and VOC, for which projected emissions could be 
developed for 2017, 2020, 2025, and 2030. The attainment inventory 
identifies a level of emissions in the Area that is sufficient to 
attain the 2008 8-hour ozone NAAQS. Kentucky began development of the 
attainment inventory by first generating a baseline emissions inventory 
for the Commonwealth's portion of the Area.\18\ The projected summer 
day emission inventories have been estimated using projected rates of 
growth in population, traffic, economic activity, and other parameters. 
In addition to comparing the final year of the plan (2030) to the 
attainment year (2014), Kentucky compared interim years to the 
attainment year to demonstrate that these years are also expected to 
show continued maintenance of the 2008 8-hour ozone standard.
---------------------------------------------------------------------------

    \18\ Kentucky used the 2011 inventory described above in Section 
V.A. as its baseline emissions inventory.
---------------------------------------------------------------------------

    The emissions inventory is composed of four major types of sources: 
Point, area, on-road mobile, and non-road mobile.\19\ Complete 
descriptions of how the inventories were developed are located in 
Appendix C through Appendix E of the August 26, 2016 submittal, which 
can be found in the docket for this action. Point source emissions are 
tabulated from data collected by direct on-site measurements of 
emissions or from mass balance calculations utilizing approved emission 
factors. For each projected year's inventory, point sources are 
adjusted by growth factors based on Standard Industrial Classification 
codes generated using growth patterns obtained from County Business 
Patterns. For title V sources, the actual 2011 emissions were used.
---------------------------------------------------------------------------

    \19\ As discussed in Section V.A., the emissions inventories in 
Kentucky's submission identify aircraft emissions as a standalone 
category and refer to these emissions as ``air emissions'' for 
consistency with the inventories provided by Indiana and Ohio for 
their respective portions of the Area. EPA has included these 
emissions within the point source category per the AERR.
---------------------------------------------------------------------------

    For area sources, emissions are estimated by multiplying an 
emission factor by some known indicator of collective activity such as 
production, number of employees, or population. For each projected 
year's inventory, area source emissions are changed by population 
growth, projected production growth, or estimated employment growth.
    Non-road mobile sources include vehicles, engines, and equipment 
used for construction, agriculture, recreation, and other purposes that 
do not use roadways (e.g., lawn mowers, construction equipment, and 
railroad locomotives). IDEM provided non-road mobile source emissions 
data for each county in the Area. Data was obtained from the Ozone 
NAAQS Emissions Modeling Platform (2011 v6.1).
    For on-road mobile sources, EPA's MOVES2014 mobile model was run to 
generate emissions. The MOVES2014 model includes the road class vehicle 
miles traveled (VMT) as an input file and can directly output the 
estimated emissions. For each projected year's inventory, the on-road 
mobile sources emissions are calculated by running the MOVES mobile 
model for the future year with the projected VMT to generate emissions 
that take into consideration expected federal tailpipe standards, fleet 
turnover, and new fuels.
    The 2014 NOX and VOC emissions for the Kentucky portion 
of the Area, as well as the emissions for other years, were developed 
consistent with EPA guidance and are summarized in Tables 4 and 5 of 
the following subsection discussing the maintenance demonstration. See 
Appendix C through Appendix E of the August 26, 2016, submission for 
more detailed information on the emissions inventory.

[[Page 20306]]

c. Maintenance Demonstration
    The maintenance plan associated with the redesignation request 
includes a maintenance demonstration that:
    (i) Shows compliance with and maintenance of the 2008 8-hour ozone 
NAAQS by providing information to support the demonstration that 
current and future emissions of NOX and VOC remain at or 
below 2014 emissions levels.
    (ii) Uses 2014 as the attainment year and includes future emissions 
inventory projections for 2017, 2020, 2025, and 2030.
    (iii) Identifies an ``out year'' at least 10 years after the time 
necessary for EPA to review and approve the maintenance plan. Per 40 
CFR part 93, NOX and VOC MVEBs were established for the last 
year (2030) of the maintenance plan (see section VI below). Kentucky, 
in consultation with the interagency partners,\20\ has elected to also 
establish an interim MVEB for the year 2020.
---------------------------------------------------------------------------

    \20\ Interagency partners consist of the Ohio-Kentucky-Indiana 
Regional Council of Governments Metropolitan Planning Organization 
(MPO), Kentucky Energy and Environment Cabinet, Kentucky 
Transportation Cabinet, EPA, Federal Highway Administration, and 
Federal Transit Administration.
---------------------------------------------------------------------------

    (iv) Provides projected emissions inventories for the Kentucky 
portion of the Area, as shown in Tables 4 and 5, below.

         Table 4--Projected Average Summer Day NOX Emissions (tsd) for the Kentucky Portion of the Area
----------------------------------------------------------------------------------------------------------------
             Sector                    2014            2017            2020            2025            2030
----------------------------------------------------------------------------------------------------------------
Point...........................            9.62            9.97           10.33            9.61            8.98
Area............................            1.94            1.94            1.94            1.95            1.95
Non-road........................            1.84            1.47            1.26            1.03             0.8
On-road.........................           14.04           10.13            6.19            4.45            2.69
                                 -------------------------------------------------------------------------------
    Total.......................           27.44           23.51           19.72           17.04           14.42
----------------------------------------------------------------------------------------------------------------

         Table 5--Projected Average Summer Day VOC Emissions (tsd) for the Kentucky Portion of the Area
----------------------------------------------------------------------------------------------------------------
             Sector                    2014            2017            2020            2025            2030
----------------------------------------------------------------------------------------------------------------
Point...........................            2.88            2.89            2.89            2.69            2.47
Area............................            6.25            6.04            5.94            5.87            5.80
Non-road........................            2.19            1.88            1.75            1.69            1.64
On-road.........................            6.50            5.03            3.54            2.77            1.98
                                 -------------------------------------------------------------------------------
    Total.......................           17.82           15.84           14.12           13.02           11.89
----------------------------------------------------------------------------------------------------------------

    Tables 4 and 5 summarize the 2014 and future projected emissions of 
NOX and VOC from the Kentucky portion of the Area. In 
situations where local emissions are the primary contributor to 
nonattainment, such as the Cincinnati-Hamilton, OH-KY-IN 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. Kentucky has 
projected emissions as described previously and determined that 
emissions in the Kentucky portion of the Area will remain below those 
in the attainment year inventory for the duration of the maintenance 
plan.
    As discussed in section VI of this proposed rulemaking, a safety 
margin is the difference between the attainment level of emissions 
(from all sources) and the projected level of emissions (from all 
sources) in the maintenance plan. The attainment level of emissions is 
the level of emissions during one of the years in which the Area met 
the NAAQS. Kentucky selected 2014 as the attainment emissions inventory 
year for the Kentucky portion of the Area. Kentucky calculated safety 
margins in its submittal for years 2020 and 2030.
    The Commonwealth has decided to allocate 15 percent of the 
available safety margin to the 2020 and 2030 MVEBs to allow for 
unanticipated growth in VMT, changes and uncertainty in vehicle mix 
assumptions, etc., that will influence the emission estimations. The 
MVEBs and safety margins are discussed further in Section VI of this 
proposed rulemaking.
d. Monitoring Network
    There are eleven monitors measuring ozone in the Cincinnati-
Hamilton, OH-KY-IN Area, of which two are located in the Kentucky 
portion of the Area. In its maintenance plan, Kentucky has committed to 
continue operation of the monitors in the Kentucky portion of the Area 
in compliance with 40 CFR part 58 and has thus addressed the 
requirement for monitoring. EPA approved Kentucky's monitoring plan on 
October 25, 2016.
e. Verification of Continued Attainment
    The Commonwealth of Kentucky, through DAQ, has the legal authority 
to enforce and implement the maintenance plan for the Kentucky portion 
of the Area. This includes the authority to adopt, implement, and 
enforce any subsequent emissions control contingency measures 
determined to be necessary to correct future ozone attainment problems. 
The Commonwealth has committed to track the progress of the maintenance 
plan by updating its emissions inventory at least once every three 
years and reviewing the updated emissions inventories for the Area 
using the latest emissions factors, models, and methodologies.
    Under the AERR, DAQ is required to develop a comprehensive, annual, 
statewide emissions inventory every three years that is due twelve to 
eighteen months after the completion of the inventory year. The AERR 
inventory years match the base year and final year of the inventory for 
the maintenance plan, and are within one or two years of the interim 
inventory years of the maintenance plan. DAQ commits to compare the 
AERR inventories to the 2011 base year and 2030 projected maintenance 
year inventories to assess emissions trends, as necessary, and to 
assure continued compliance with the 2008 8-hour ozone NAAQS in the 
Area.

[[Page 20307]]

f. Contingency Measures in the Maintenance Plan.
    Section 175A of the CAA requires that a maintenance plan include 
such contingency measures as EPA deems necessary to assure that the 
state will promptly correct a violation of the NAAQS that occurs after 
redesignation. The maintenance plan should identify the contingency 
measures to be adopted, a schedule and procedure for adoption and 
implementation, and a time limit for action by the state. A state 
should also identify specific indicators to be used to determine when 
the contingency measures need to be implemented. The maintenance plan 
must include a requirement that a state will implement all measures 
with respect to control of the pollutant that were contained in the SIP 
before redesignation of the area to attainment in accordance with 
section 175A(d).
    As required by section 175A of the CAA, Kentucky has adopted a 
contingency plan to address possible future 8-hour ozone air quality 
problems. In the event that a measured value of the fourth highest 
maximum is 0.079 ppm or greater in any portion of the Area in a single 
ozone season, or if periodic emissions inventory updates reveal 
excessive or unanticipated growth greater than ten percent in ozone 
precursor emissions in the Area, the Commonwealth will conduct a study 
to determine whether the ozone value indicates a trend toward higher 
ozone values or whether the trend, if any, is likely to continue, and 
if so, the control measures necessary to reverse the trend. 
Implementation of necessary controls will take place as expeditiously 
as practicable and no later than 12 months from the conclusion of the 
most recent ozone season.
    In the event that a two-year average of the fourth highest maximum 
values at a monitor in the Area is 0.076 ppm or greater and is not due 
to exceptional event, malfunction, or noncompliance with a permit 
condition or rule requirement, Kentucky, along with the metropolitan 
planning organization or regional council of governments, will 
determine additional control measures needed to assure future 
attainment of the ozone NAAQS. Measures that can be implemented in a 
short time will be selected in order to be in place within 18 months 
from the close of the ozone season.
    In the event of a monitored violation of the 1997 8-hour ozone 
NAAQS in the Area, Kentucky commits to adopt one or more of the 
following contingency measures to re-attain the standard: \21\
---------------------------------------------------------------------------

    \21\ If the Commonwealth adopts a voluntary emission reduction 
measure as a contingency measure necessary to attain or maintain the 
NAAQS, EPA will evaluate approvability in accordance with relevant 
Agency guidance regarding the incorporation of voluntary measures 
into SIPs. See, e.g., Memorandum from Richard D. Wilson, Acting 
Administrator for Air and Radiation, to EPA Regional Administrators 
re: Guidance on Incorporating Voluntary Mobile Source Emission 
Reduction Programs in State Implementation Plans (SIPs) (October 24, 
1997); EPA, Office of Air and Radiation, Incorporating Emerging and 
Voluntary Measures in a State Implementation Plan (SIP)(September 
2004).
---------------------------------------------------------------------------

     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 to, or construction 
of such roads or 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 emissions concentration, particularly during 
periods of peak use;
     Programs for new construction and major reconstructions of 
paths or tracks for use by pedestrians or by non-motorized vehicles 
when economically feasible and in the public interest.
    Kentucky may implement other contingency measures if new control 
programs should be developed and deemed more advantageous for the Area. 
Prior to the implementation of any contingency measure not listed, the 
Commonwealth will solicit input from all interested and affected 
parties in the Area. Kentucky will adopt and implement contingency 
measures as quickly as possible, and no later than 18 months after the 
monitored violation. The Commonwealth will not implement a contingency 
measure without approval from EPA.
    EPA preliminarily concludes that the maintenance plan adequately 
addresses the five basic components of a maintenance plan: The 
attainment emissions inventory, maintenance demonstration, monitoring, 
verification of continued attainment, and a contingency plan. 
Therefore, EPA proposes that the maintenance plan SIP revision 
submitted by Kentucky for the Commonwealth's portion of the Area meets 
the requirements of section 175A of the CAA and is approvable.

VI. What is EPA's analysis of Kentucky's proposed NOX and 
VOC MVEBs for the Kentucky portion of the area?

    Under section 176(c) of the CAA, new transportation plans, 
programs, and projects, such as the construction of new highways, must 
``conform'' to (i.e., be consistent with) the part of the state's air 
quality plan that addresses pollution from cars and trucks. Conformity 
to the SIP means that transportation activities will not cause new air 
quality violations, worsen existing violations, or delay timely 
attainment of the NAAQS or any interim milestones. If a transportation 
plan does not conform, most new projects that would expand the capacity 
of roadways cannot go forward. Regulations at 40 CFR part 93 set forth 
EPA policy, criteria, and procedures for demonstrating and assuring 
conformity of such transportation activities to a SIP. The regional 
emissions analysis is one, but not the only, requirement for 
implementing transportation conformity. Transportation conformity is a 
requirement for nonattainment and maintenance areas. Maintenance areas 
are areas that were previously nonattainment for a particular NAAQS but 
have since been redesignated to attainment with an approved maintenance 
plan for that NAAQS.
    Under the CAA, states are required to submit, at various times, 
control strategy SIPs and maintenance plans for nonattainment areas. 
These control strategy SIPs (including RFP and attainment demonstration 
requirements) and maintenance plans create MVEBs (or in this case sub-
area 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. 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

[[Page 20308]]

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.
    As part of the interagency consultation process on setting MVEBs, 
DAQ held discussions with interagency partners to determine what years 
to set MVEBs for the Kentucky portion of the Area. As noted above, a 
maintenance plan must establish MVEBs for the last year of the 
maintenance plan (in this case, 2030). See 40 CFR 93.118.
    Kentucky chose to allocate 15 percent of the available safety 
margin to the NOX and VOC MVEBs for years 2020 and 2030.\22\ 
See Table 6. As discussed above, Kentucky has selected 2014 as the base 
year. The projected on-road emissions of NOX and VOC for 
2020 and 2030 are shown in Tables 7 and 8 for the Kentucky portion of 
the Area. Table 9 provides the NOX and VOC MVEBs for 2020 
and 2030.
---------------------------------------------------------------------------

    \22\ See pp. 22-34 of Kentucky's submittal for further 
information regarding the safety margin allocation.

 Table 6--Fifteen Percent Safety Margin Allocation for the Kentucky Portion of the Cincinnati-Hamilton, OH-KY-IN
                                                      Area
                                                      [tsd]
----------------------------------------------------------------------------------------------------------------
                                                                    2020 Safety                     2030 Safety
                                                    2020 Safety       margin        2030 Safety       margin
                                                      margin        allocation        margin        allocation
----------------------------------------------------------------------------------------------------------------
NOX.............................................            7.72            1.16           13.02            1.95
VOC.............................................            3.77            0.56            6.00            0.89
----------------------------------------------------------------------------------------------------------------

                    Table 7--On-Road NOX Emissions (tsd) for the Kentucky Portion of the Area
----------------------------------------------------------------------------------------------------------------
             County                    2014            2017            2020            2025            2030
----------------------------------------------------------------------------------------------------------------
Boone...........................            5.46            3.94            2.41            1.73            1.05
Campbell........................            3.41            2.46            1.50            1.08            0.65
Kenton..........................            5.17            3.73            2.28            1.64            0.99
                                 -------------------------------------------------------------------------------
    Total.......................           14.04           10.13            6.19            4.45            2.69
----------------------------------------------------------------------------------------------------------------

                    Table 8--On-Road VOC Emissions (tsd) for the Kentucky Portion of the Area
----------------------------------------------------------------------------------------------------------------
             County                    2014            2017            2020            2025            2030
----------------------------------------------------------------------------------------------------------------
Boone...........................            2.53            1.96            1.38            1.08            0.77
Campbell........................            1.58            1.22            0.86            0.67            0.48
Kenton..........................            2.39            1.85            1.30            1.02            0.73
                                 -------------------------------------------------------------------------------
    Total.......................            6.05            5.03            3.54            2.77            1.98
----------------------------------------------------------------------------------------------------------------

                               Table 9--MVEBs for the Kentucky Portion of the Area
                                                      [tsd]
----------------------------------------------------------------------------------------------------------------
                                                               2020                            2030
                                                 ---------------------------------------------------------------
                                                        NOX             VOC             NOX             VOC
----------------------------------------------------------------------------------------------------------------
Projected On-Road Emissions.....................            6.19            3.54            2.69            1.98
Portion of the Safety Margin Allocated to MVEB..            1.16            0.56            1.95            0.89
Conformity MVEB.................................            7.35            4.10            4.64            2.87
----------------------------------------------------------------------------------------------------------------

    Through this rulemaking, EPA is proposing to approve the MVEBs for 
NOX and VOC for 2020 and 2030 for the Kentucky portion of 
the Area because EPA has preliminarily determined that the Area 
maintains the 2008 8-hour ozone NAAQS with the emissions at the levels 
of the budgets. If the MVEBs for the Kentucky portion of the Area are 
approved or found adequate (whichever is completed first), they must be 
used for future conformity determinations.

VII. What is the status of EPA's adequacy determination for the 
proposed NOX and VOC MVEBs for the Kentucky portion of the 
area?

    When reviewing submitted ``control strategy'' SIPs or maintenance 
plans containing MVEBs, EPA may affirmatively find the MVEB contained 
therein adequate for use in determining transportation conformity. Once 
EPA affirmatively finds the submitted MVEB is adequate for 
transportation conformity purposes, that MVEB must be used by state and 
federal agencies in determining whether proposed transportation 
projects conform to the SIP as required by section 176(c) of the CAA.

[[Page 20309]]

    EPA's substantive criteria for determining adequacy of a MVEB are 
set out in 40 CFR 93.118(e)(4). The process for determining adequacy 
consists of three basic steps: Public notification of a SIP submission, 
a public comment period, and EPA's adequacy determination. This process 
for determining the adequacy of submitted MVEBs for transportation 
conformity purposes was initially outlined in EPA's May 14, 1999, 
guidance, ``Conformity Guidance on Implementation of March 2, 1999, 
Conformity Court Decision.'' EPA adopted regulations to codify the 
adequacy process in the Transportation Conformity Rule Amendments for 
the ``New 8-Hour Ozone and PM2.5 National Ambient Air 
Quality Standards and Miscellaneous Revisions for Existing Areas; 
Transportation Conformity Rule Amendments--Response to Court Decision 
and Additional Rule Change,'' on July 1, 2004 (69 FR 40004). Additional 
information on the adequacy process for transportation conformity 
purposes is available in the proposed rule entitled, ``Transportation 
Conformity Rule Amendments: Response to Court Decision and Additional 
Rule Changes,'' 68 FR 38974, 38984 (June 30, 2003).
    As discussed earlier, Kentucky's maintenance plan includes 
NOX and VOC MVEBs for the Kentucky portion of the Area for 
an interim year (2020) and the last year of the maintenance plan 
(2030). EPA is reviewing the NOX and VOC MVEBs through the 
adequacy process described in Section I.
    EPA intends to make its determination on the adequacy of the 2020 
and 2030 MVEBs for the Kentucky portion of the Area for transportation 
conformity purposes in the near future by completing the adequacy 
process that was started on December 6, 2016. If EPA finds the 2020 and 
2030 MVEBs adequate or approves them, the new MVEBs for NOX 
and VOC must be used for future transportation conformity 
determinations. For required regional emissions analysis years that 
involve 2020 through 2029, the 2020 MVEBs would then be used, and for 
years 2030 and beyond, the applicable budgets would be the new 2030 
MVEBs established in the maintenance plan.

VIII. What is the effect of EPA's proposed actions?

    EPA's proposed actions establish the basis upon which EPA may take 
final action on the issues being proposed for approval today. Approval 
of Kentucky's redesignation request would change the legal designation 
of the portions of Boone, Campbell, and Kenton Counties that are within 
the Cincinnati-Hamilton, OH-KY-IN Area, as found at 40 CFR part 81, 
from nonattainment to attainment for the 2008 8-hour ozone NAAQS. 
Approval of Kentucky's associated SIP revision would also incorporate a 
plan for maintaining the 2008 8-hour ozone NAAQS in the Area through 
2030 and a section 182(a)(1) base year emissions inventory for the Area 
into the Kentucky SIP. The maintenance plan establishes NOX 
and VOC MVEBs for 2020 and 2030 for the Kentucky portion of the Area 
and includes contingency measures to remedy any future violations of 
the 2008 8-hour ozone NAAQS and procedures for evaluation of potential 
violations.

IX. Proposed Actions

    EPA is proposing to: (1) Approve Kentucky's 2011 base year 
emissions inventory for the Kentucky portion of the Area as meeting the 
requirements of 182(a)(1) and incorporate this inventory into the SIP; 
(2) approve the maintenance plan for the Kentucky portion of the Area, 
including the NOX and VOC MVEBs for 2030, and incorporate it 
into the Kentucky SIP; and (3) approve Kentucky's redesignation request 
for the 2008 8-hour ozone NAAQS for the Area. Further, as part of this 
proposed action, EPA is describing the status of its adequacy 
determination for the NOX and VOC MVEBs for 2020 and 2030 in 
accordance with 40 CFR 93.118(f)(2). If EPA finds the 2020 and 2030 
MVEBs adequate or approves them the transportation partners will need 
to demonstrate conformity to the new NOX and VOC MVEBs 
pursuant to 40 CFR 93.104(e)(3) within 24 months from the effective 
date of EPA's adequacy determination for the MVEBs or the publication 
date for the final rule for this action, whichever is earlier.
    If finalized, approval of the redesignation request would change 
the official designation of the portions of Boone, Campbell, and Kenton 
Counties that are within the Cincinnati-Hamilton, OH-KY-IN Area, as 
found at 40 CFR part 81, from nonattainment to attainment for the 2008 
8-hour ozone NAAQS.

X. Statutory and Executive Order Reviews

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

[[Page 20310]]

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

40 CFR Part 81

    Environmental protection, Air pollution control.

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

    Dated: March 29, 2017.
V. Anne Heard,
Acting Regional Administrator, Region 4.
[FR Doc. 2017-08643 Filed 4-28-17; 8:45 am]
 BILLING CODE 6560-50-P