81_FR_23023 81 FR 22948 - Air Plan Approval and Air Quality Designation; TN; Redesignation of the Shelby County 2008 8-Hour Ozone Nonattainment Area to Attainment

81 FR 22948 - Air Plan Approval and Air Quality Designation; TN; Redesignation of the Shelby County 2008 8-Hour Ozone Nonattainment Area to Attainment

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 81, Issue 75 (April 19, 2016)

Page Range22948-22960
FR Document2016-08796

On January 19, 2016, the State of Tennessee, through the Tennessee Department of Environment and Conservation (TDEC), Air Pollution Control Division, submitted a request for the Environmental Protection Agency (EPA) to redesignate the portion of Tennessee that is within the Memphis, Tennessee-Mississippi-Arkansas (Memphis, TN-MS-AR) 2008 8-hour ozone nonattainment area (hereafter referred to as the ``Tennessee portion of the Memphis, TN-MS-AR Area'' or ``Tennessee portion of the Area'') to attainment for the 2008 8-hour ozone National Ambient Air Quality Standards (NAAQS) and an associated State Implementation Plan (SIP) revision containing a maintenance plan and a base year emissions inventory for the Area. EPA is proposing to approve the base year emissions inventory for the Tennessee portion of the Area into the SIP; to determine that the Memphis, TN-MS-AR Area has attained the 2008 8-hour ozone NAAQS; to approve the State's plan for maintaining attainment of the 2008 8-hour ozone standard in the Area, including the motor vehicle emission budgets (MVEBs) for nitrogen oxides (NO<INF>X</INF>) and volatile organic compounds (VOC) for the year 2027 for the Tennessee portion of the Area, into the SIP; and to redesignate the Tennessee portion of the Area to attainment for the 2008 8-hour ozone NAAQS. EPA is also notifying the public of the status of EPA's adequacy determination for the MVEBs for the Tennessee portion of the Memphis, TN-MS-AR Area.

Federal Register, Volume 81 Issue 75 (Tuesday, April 19, 2016)
[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)]
[Proposed Rules]
[Pages 22948-22960]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08796]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R04-OAR-2016-0018; FRL-9945-04-Region 4]


Air Plan Approval and Air Quality Designation; TN; Redesignation 
of the Shelby County 2008 8-Hour Ozone Nonattainment Area to Attainment

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: On January 19, 2016, the State of Tennessee, through the 
Tennessee Department of Environment and Conservation (TDEC), Air 
Pollution Control Division, submitted a request for the Environmental 
Protection Agency (EPA) to redesignate the portion of Tennessee that is 
within the Memphis, Tennessee-Mississippi-Arkansas (Memphis, TN-MS-AR) 
2008 8-hour ozone nonattainment area (hereafter referred to as the 
``Tennessee portion of the Memphis, TN-MS-AR Area'' or ``Tennessee 
portion of the Area'') to attainment for the 2008 8-hour ozone National 
Ambient Air Quality Standards (NAAQS) and an associated State 
Implementation Plan (SIP) revision containing a maintenance plan and a 
base year emissions inventory for the Area. EPA is proposing to approve 
the base year emissions inventory for the Tennessee portion of the Area 
into the SIP; to determine that the Memphis, TN-MS-AR Area has attained 
the 2008 8-hour ozone NAAQS; to approve the State's plan for 
maintaining attainment of the 2008 8-hour ozone standard in the Area, 
including the motor vehicle emission budgets (MVEBs) for nitrogen 
oxides (NOX) and volatile organic compounds (VOC) for the 
year 2027 for the Tennessee portion of the Area, into the SIP; and to 
redesignate the Tennessee portion of the Area to attainment for the 
2008 8-hour ozone NAAQS. EPA is also notifying the public of the status 
of EPA's adequacy determination for the MVEBs for the Tennessee portion 
of the Memphis, TN-MS-AR Area.

DATES: Comments must be received on or before May 19, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2016-0018, at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. EPA may publish any comment 
received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is

[[Page 22949]]

considered the official comment and should include discussion of all 
points you wish to make. EPA will generally not consider comments or 
comment contents located outside of the primary submission (i.e. on the 
web, cloud, or other file sharing system). For additional submission 
methods, the full EPA public comment policy, information about CBI or 
multimedia submissions, and general guidance on making effective 
comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Jane Spann, Air Regulatory Management 
Section, Air Planning and Implementation Branch, Air, Pesticides and 
Toxics Management Division, U.S. Environmental Protection Agency, 
Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Ms. Spann 
can be reached by phone at (404) 562-9029 or via electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. What are the actions EPA is proposing to take?
II. What is the background for EPA's proposed actions?
III. What are the criteria for redesignation?
IV. Why is EPA proposing these actions?
V. What is EPA's analysis of the redesignation request and January 
19, 2016, SIP submission?
VI. What is EPA's analysis of Tennessee's proposed NOX 
and VOC MVEBs for the Tennessee portion of the area?
VII. What is the status of EPA's adequacy determination for the 
proposed NOX and VOC MVEBs the Tennessee portion of the 
area?
VIII. What is the effect of EPA's proposed actions?
IX. Proposed Actions.
X. Statutory and Executive Order Reviews

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

    EPA is proposing to take the following four separate but related 
actions, one of which involves multiple elements: (1) To approve the 
base year emissions inventory for the 2008 8-hour ozone NAAQS for the 
Tennessee portion of the Area into the Tennessee SIP; (2) to determine 
that the Memphis, TN-MS-AR Area has attained the 2008 8-hour ozone 
NAAQS; \1\ (3) to approve Tennessee's plan for maintaining the 2008 8-
hour ozone NAAQS (maintenance plan), including the associated MVEBs for 
the Tennessee portion of the Memphis, TN-MS-AR Area, into the SIP; and 
(4) to redesignate the Tennessee portion of the Memphis, TN-MS-AR Area 
to attainment for the 2008 8-hour ozone NAAQS. EPA is also notifying 
the public of the status of EPA's adequacy determination for the MVEBs 
for the Tennessee portion of the Memphis, TN-MS-AR Area. The Memphis, 
TN-MS-AR Area consists of all of Shelby County in Tennessee, all of 
Crittenden County in Arkansas, and a portion of DeSoto County in 
Mississippi. Today's proposed actions are summarized below and 
described in greater detail throughout this notice of proposed 
rulemaking.
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    \1\ On August 27, 2015, EPA published a proposed rulemaking 
entitled ``Determinations of Attainment by the Attainment Date, 
Extensions of the Attainment Date, and Reclassification of Several 
Areas Classified as Marginal for the 2008 Ozone National Ambient Air 
Quality Standards'' where the Agency has proposed to determine that 
the Memphis, TN-MS-AR Area has attained the 2008 8-hour ozone NAAQS 
by the applicable attainment date of July 20, 2015, based on 2012-
2014 monitoring data. See 80 FR 51992. Any final action on the 
August 27, 2015 proposed rule will occur in a separate rulemaking 
from today's proposed action.
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    Based on the 2008 8-hour ozone nonattainment designation for the 
Memphis, TN-MS-AR Area, Tennessee was required to develop a 
nonattainment SIP revision addressing certain Clean Air Act (CAA or 
Act) requirements. Specifically, pursuant to CAA section 182(a)(3)(B) 
and section 182(a)(1), the state was required to submit a SIP revision 
addressing emissions statements and emissions inventory requirements, 
respectively, for its portion of the Area. EPA approved the emissions 
statements requirements for the Tennessee portion of the Area into the 
SIP in a separate action. See 80 FR 11974 (March 5, 2015). Today, EPA 
is proposing to determine that the base year emissions inventory, as 
submitted in the State's January 19, 2016, SIP revision, meets the 
requirements of section 182(a)(1) of the CAA and proposing to approve 
this emissions inventory into the SIP.
    EPA is making the preliminary determination that the Memphis, TN-
MS-AR Area has attained the 2008 8-hour ozone NAAQS based on recent air 
quality data and proposing to approve Tennessee's maintenance plan for 
its portion of the Memphis, TN-MS-AR Area as meeting the requirements 
of section 175A (such approval being one of the CAA criteria for 
redesignation to attainment status). The maintenance plan is designed 
to keep the Memphis, TN-MS-AR Area in attainment of the 2008 8-hour 
ozone NAAQS through 2027. The maintenance plan includes 2027 MVEBs for 
NOX and VOC for the Tennessee portion of the Memphis, TN-MS-
AR Area for transportation conformity purposes. EPA is proposing to 
approve these MVEBs and incorporate them into the Tennessee SIP.
    EPA also proposes to determine that the Tennessee portion of the 
Memphis, TN-MS-AR Area has met the requirements for redesignation under 
section 107(d)(3)(E) of the CAA. Accordingly, in this action, EPA is 
proposing to approve a request to change the legal designation of 
Shelby County, as found at 40 CFR part 81, from nonattainment to 
attainment for the 2008 8-hour ozone NAAQS.
    EPA is also notifying the public of the status of EPA's adequacy 
process for the 2027 NOX and VOC MVEBs for the Tennessee 
portion of the Memphis, TN-MS-AR Area. The Adequacy comment period 
began on January 27, 2016, with EPA's posting of the availability of 
Tennessee's submissions on EPA's Adequacy Web site (http://www3.epa.gov/otaq/stateresources/transconf/currsips.htm#shelby-cnty).
    The Adequacy comment period for these MVEBs closed on February 26, 
2016. No comments, adverse or otherwise, were received during the 
Adequacy comment period. Please see section VII of this proposed 
rulemaking for further explanation of this process and for more details 
on the MVEBs.
    In summary, today's notice of proposed rulemaking is in response to 
Tennessee's January 19, 2016, redesignation request and associated SIP 
submission that address the specific issues summarized above and the 
necessary elements described in section 107(d)(3)(E) of the CAA for 
redesignation of the Tennessee portion of the Memphis, TN-MS-AR Area to 
attainment for the 2008 8-hour ozone NAAQS.

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

    On March 12, 2008, EPA promulgated a revised 8-hour ozone NAAQS of 
0.075 parts per million (ppm). See 73 FR 16436 (March 27, 2008). Under 
EPA's regulations at 40 CFR part 50, the 2008 8-hour ozone NAAQS is 
attained when the 3-year average of the annual fourth highest daily 
maximum 8-hour average ambient air quality ozone concentrations is less 
than or equal to 0.075 ppm. See 40 CFR 50.15. Ambient air quality 
monitoring data for the 3-year period must meet a data completeness 
requirement. The ambient air quality monitoring data completeness 
requirement is met when the average percent of days with valid ambient 
monitoring data is greater than 90 percent, and no single year has less 
than 75 percent data completeness as determined in Appendix P of part 
50.

[[Page 22950]]

    The Memphis, TN-MS-AR Area was designated nonattainment for the 
2008 8-hour ozone NAAQS on May 21, 2012 (effective July 20, 2012) using 
2008-2010 ambient air quality data. See 77 FR 30088. At the time of 
designation, the Memphis, TN-MS-AR Area was classified as a marginal 
nonattainment area for the 2008 8-hour ozone NAAQS. In the final 
implementation rule for the 2008 8-hour ozone NAAQS (SIP Implementation 
Rule),\2\ EPA established ozone nonattainment area attainment dates 
based on Table 1 of section 181(a) of the CAA. This established an 
attainment date three years after the July 20, 2012, effective date for 
areas classified as marginal areas for the 2008 8-hour ozone 
nonattainment designations. Therefore, the Memphis, TN-MS-AR Area's 
attainment date is July 20, 2015.
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    \2\ This rule, entitled Implementation of the 2008 National 
Ambient Air Quality Standards for Ozone: State Implementation Plan 
Requirements and published at 80 FR 12264 (March 6, 2015), addresses 
a range of nonattainment area SIP requirements for the 2008 ozone 
NAAQS, including requirements pertaining to attainment 
demonstrations, reasonable further progress (RFP), reasonably 
available control technology (RACT), reasonably available control 
measures (RACM), major new source review (NSR), emission 
inventories, and the timing of SIP submissions and of compliance 
with emission control measures in the SIP. This rule also addresses 
the revocation of the 1997 ozone NAAQS and the anti-backsliding 
requirements that apply when the 1997 ozone NAAQS are revoked.
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III. What are the criteria for redesignation?

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

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

IV. Why is EPA proposing these actions?

    On January 19, 2016, the State of Tennessee, through TDEC, 
requested that EPA redesignate the Tennessee portion of the Memphis, 
TN-MS-AR Area to attainment for the 2008 8-hour ozone NAAQS and approve 
the associated SIP revision submitted on the same date. EPA's 
evaluation indicates that the entire Memphis, TN-MS-AR Area has 
attained the 2008 8-hour ozone NAAQS and that the Tennessee portion of 
the Memphis, TN-MS-AR Area meets the requirements for redesignation as 
set forth in CAA section 107(d)(3)(E), including the maintenance plan 
requirements under CAA section 175A and associated MVEBs. Also, based 
on Tennessee's January 19, 2016, submittal, EPA is proposing to 
determine that the base year emissions inventory, included in 
Tennessee's January 19, 2016, submittal, meets the requirements under 
CAA section 182(a)(1). Approval of the base year emissions inventory is 
a prerequisite to redesignating an ozone nonattainment area to 
attainment. As a result of these proposed findings, EPA is proposing to 
take the four related actions summarized in section I of this notice.

V. What is EPA's analysis of the redesignation request and January 19, 
2016, SIP submission?

    As stated above, in accordance with the CAA, EPA proposes in 
today's action to: (1) Approve the 2008 8-hour ozone NAAQS base year 
emissions inventory for the Tennessee portion of the Area into the 
Tennessee SIP; (2) determine that the Memphis, TN-MS-AR Area has 
attained the 2008 8-hour ozone NAAQS; (3) approve the 2008 8-hour ozone 
NAAQS maintenance plan, including the associated MVEBs, into the 
Tennessee SIP; and (4) redesignate the Tennessee portion of the 
Memphis, TN-MS-AR Area to attainment for the 2008 8-hour ozone NAAQS.

A. Emission Inventory

    Section 182(a)(1) of the CAA requires states to submit a 
comprehensive, accurate, and current inventory of actual emissions from 
all sources of the relevant pollutant or pollutants in each ozone 
nonattainment area. The section 182(a)(1) base year emissions inventory 
is defined in the SIP Requirements Rule as ``a comprehensive, accurate, 
current inventory of actual emissions from sources of VOC and 
NOX emitted within the boundaries of the nonattainment area 
as required by CAA section 182(a)(1).'' See 40 CFR 51.1100(bb). The 
inventory year must be selected consistent with the baseline year for 
an RFP plan as required by 40 CFR 51.1110(b),\3\ and the inventory must

[[Page 22951]]

include actual ozone season day emissions as defined in 40 CFR 
51.1100(cc) \4\ and contain data elements consistent with the detail 
required by 40 CFR part 51, subpart A. See 40 CFR 51.1115(a), (c), (e). 
In addition, the point source emissions included in the inventory must 
be reported according to the point source emissions thresholds of the 
Air Emissions Reporting Requirements (AERR) in 40 CFR part 51, subpart 
A. See 40 CFR 51.1115(d).
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    \3\ 40 CFR 51.1110(b) states that ``at the time of designation 
for the 2008 ozone NAAQS the baseline emissions inventory shall be 
the emissions inventory for the most recent calendar year for which 
a complete triennial inventory is required to be submitted to EPA 
under the provisions of subpart A of this part. States may use an 
alternative baseline emissions inventory provided the state 
demonstrates why it is appropriate to use the alternative baseline 
year, and provided that the year selected is between the years 2008 
to 2012.''
    \4\ ``Ozone season day emissions'' is defined as ``an average 
day's emissions for a typical ozone season work weekday. The state 
shall select, subject to EPA approval, the particular month(s) in 
the ozone season and the day(s) in the work week to be represented, 
considering the conditions assumed in the development of RFP plans 
and/or emissions budgets for transportation conformity.'' See 40 CFR 
51.1100(cc).
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    Tennessee selected 2011 as the year for the CAA section 182(a)(1) 
emissions inventory which is the year corresponding with the first 
triennial inventory under 40 CFR part 51, subpart A. The emissions 
inventory is based on data developed and submitted by TDEC and Shelby 
County Health Department to EPA's 2011 National Emissions Inventory 
(NEI), and it contains data elements consistent with the detail 
required by 40 CFR part 51, subpart A.\5\
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    \5\ Data downloaded from the EPA EIS from the 2011 NEI was 
subjected to quality assurance procedures described under quality 
assurance details under 2011 NEI Version 1 Documentation located at: 
http://www.epa.gov/ttn/chief/net/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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    Tennessee's emissions inventory for its portion of the Area 
provides 2011 emissions data for NOX and VOCs for the 
following general source categories: Point, area, non-road mobile, and 
on-road mobile. A detailed discussion of the inventory development is 
located in Attachment VII to Tennessee's January 19, 2016, SIP 
submittal which is provided in the docket for this action. Table 1, 
below, provides a summary of the emissions inventory.

             Table 1--2011 Point, Area, Non-Road Mobile, and On-Road Mobile Sources Emissions for the Tennessee Portion of the Memphis Area
                                                              [Tons per typical summer day]
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                                                            Point                    Area *              Non-road mobile **          On-road mobile
                     County                      -------------------------------------------------------------------------------------------------------
                                                      NOX          VOC          NOX          VOC          NOX          VOC          NOX          VOC
--------------------------------------------------------------------------------------------------------------------------------------------------------
Shelby County...................................       18.30         9.49         4.53        46.88        29.24        15.09        37.90        16.11
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Includes Prescribed Burning.
** Includes nonroad equipment, airports, Commercial Marine Vessels (CMVs), and locomotives.

    The emissions inventory includes all anthropogenic VOC and 
NOXsources for Shelby County, Tennessee. NOx and VOC 
emissions were calculated for a typical summer July day, taking into 
account the seasonal adjustment factor for summer operations. More 
detail on the inventory emissions for individual sources categories is 
provided below and in Attachment VII to Tennessee's January 19, 2016, 
SIP submittal.
    Point sources are large, stationary, identifiable sources of 
emissions that release pollutants into the atmosphere. The inventory 
contains point source emissions data for facilities located within 
Shelby County based on the Shelby County, Tennessee, Emissions 
Inventory Questionnaire (EIQ) which is an annual emissions inventory 
survey conducted by the Shelby County Health Department. Each facility 
was required to update the data through the EIQ with information for 
the requested year and return the updated data to Shelby County Health 
Department.
    Area sources are small emission stationary sources which, due to 
their large number, collectively have significant emissions (e.g., dry 
cleaners, service stations). Emissions for these sources were estimated 
by multiplying an emission factor by such indicators of collective 
emissions activity as production, number of employees, or population. 
These emissions were estimated at the county level. Tennessee submitted 
an inventory that it developed for the NEI in accordance with the AERR. 
Tennessee developed its inventory according to the current EPA 
emissions inventory guidance for area sources.\6\
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    \6\ This guidance includes: Procedures for the Preparation of 
Emission Inventories of Carbon Monoxide and Precursors of Ozone, 
Vol. 1, EPA-450/4-91-016 (May 1991) and Emissions Inventory 
Improvement Program (EIIP) Technical Report, Vol. 3, Area Sources 
(Revised January 2001, updated April 2001).
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    On-road mobile sources include vehicles used on roads for 
transportation of passengers or freight. Tennessee developed its on-
road emissions inventory using EPA's Motor Vehicle Emissions Simulator 
(MOVES) model with input data from the Memphis Metropolitan Planning 
Organization (MPO).\7\ County level on-road modeling was conducted 
using county-specific vehicle population and other local data. 
Tennessee developed its inventory according to the current EPA 
emissions inventory guidance for on-road mobile sources using MOVES 
version 2014.
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    \7\ Tennessee 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, 
railroad locomotives, and aircraft). Tennessee calculated emissions for 
most of the non-road mobile sources using EPA's NONROAD2008a model \8\ 
and developed its non-road mobile source inventory according to the 
current EPA emissions inventory guidance for non-road mobile 
sources.\9\
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    \8\ For consistency with the NEI, Tennessee included emissions 
data for aircraft, locomotive, and commercial marine vessels (CMV) 
by county. CMV emissions for 2011 were primarily based on EPA's 2011 
NEI, U.S. Corps of Engineers' 2012 Waterborne Commerce, and 2012 
survey of railroad companies operating in Shelby County.
    \9\ This guidance includes: Procedures for Emission Inventory 
Preparation, Volume IV: Mobile Sources, EPA-450/4-81-026d (December 
1992).
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    For the reasons discussed above, EPA has preliminarily determined 
that Tennessee's emissions inventory meets the requirements under CAA 
section 182(a)(1) and the SIP Requirements Rule for the 2008 8-hour 
ozone NAAQS. Approval of Tennessee's redesignation request is 
contingent upon EPA's final approval of the base year emissions 
inventory for the 2008 8-hour ozone NAAQS.

[[Page 22952]]

B. Redesignation Request and Maintenance Demonstration

    The five redesignation criteria provided under CAA section 
107(d)(3)(E) are discussed in greater detail for the Area in the 
following paragraphs of this section.
Criteria (1)--The Memphis, TN-MS-AR Area Has Attained the 2008 8-Hour 
Ozone NAAQS
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has attained the applicable 
NAAQS. See CAA section 107(d)(3)(E)(i). For ozone, an area may be 
considered to be attaining the 2008 8-hour ozone NAAQS if it meets the 
2008 8-hour ozone NAAQS, as determined in accordance with 40 CFR 50.15 
and appendix P of part 50, based on three complete, consecutive 
calendar years of quality-assured air quality monitoring data. To 
attain the NAAQS, the 3-year average of the fourth-highest daily 
maximum 8-hour average ozone concentrations measured at each monitor 
within an area over each year must not exceed 0.075 ppm. Based on the 
data handling and reporting convention described in 40 CFR part 50, 
appendix P, the NAAQS are attained if the design value is 0.075 ppm or 
below. The data must be collected and quality-assured in accordance 
with 40 CFR part 58 and recorded in EPA's Air Quality System (AQS). The 
monitors generally should have remained at the same location for the 
duration of the monitoring period required for demonstrating 
attainment.
    In this action, EPA is preliminarily determining that the Memphis, 
TN-MS-AR Area has attained the 2008 8-hour ozone NAAQS. EPA reviewed 
ozone monitoring data from monitoring stations in the Memphis, TN-MS-AR 
Area for the 2008 8-hour ozone NAAQS for 2012-2014, and the design 
values for each monitor in the Area are less than 0.075 ppm. These data 
have been quality-assured, are recorded in AQS, and indicate that the 
Area is attaining the 2008 8-hour ozone NAAQS. The fourth-highest 8-
hour ozone values at each monitor for 2012, 2013, 2014, and the 3-year 
averages of these values (i.e., design values), are summarized in Table 
2, below.

                  Table 2--2012-2014 Design Value Concentrations for the Memphis, TN-MS-AR Area
                                                      [ppm]
----------------------------------------------------------------------------------------------------------------
                                                       4th Highest 8-hour ozone value (ppm)        3-Year design
                                                 ------------------------------------------------  values (ppm)
           Location                   Site                                                       ---------------
                                                       2012            2013            2014          2012-2014
----------------------------------------------------------------------------------------------------------------
Shelby, TN....................  Frayser.........           0.083           0.069           0.067           0.073
Shelby, TN....................  Orgill Park.....           0.084           0.063           0.065           0.070
Shelby, TN....................  Shelby Farms....           0.086           0.069           0.066           0.073
Crittenden, AR................  Marion..........           0.079           0.067           0.067           0.071
DeSoto, MS....................  Hernando........           0.075           0.065           0.067           0.069
----------------------------------------------------------------------------------------------------------------

    The 3-year design value for 2012-2014 for the Memphis, TN-MS-AR 
Area is 0.073 ppm,\10\ which meets the NAAQS. EPA has reviewed 2015 
preliminary monitoring data for the Area and the preliminary data does 
not indicate a violation of the NAAQS.\11\ In today's action, EPA is 
proposing to determine that the Memphis, TN-MS-AR Area has attained the 
2008 8-hour ozone NAAQS. EPA will not take final action to approve the 
redesignation if the 3-year design value exceeds the NAAQS prior to EPA 
finalizing the redesignation. As discussed in more detail below, 
Tennessee has committed to continue monitoring in this Area in 
accordance with 40 CFR part 58.
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    \10\ The highest 3-year design value among the monitoring 
stations is the design value for the Area.
    \11\ This preliminary data is available at EPA's air data Web 
site: http://aqsdr1.epa.gov/aqsweb/aqstmp/airdata/download_files.html#Daily.
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Criteria (2)--Tennessee Has a Fully Approved SIP Under Section 110(k) 
for the Tennessee Portion of the Memphis, TN-MS-AR Area; and Criteria 
(5)--Tennessee Has Met All Applicable Requirements Under Section 110 
and Part D of Title I of the CAA
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the state has met all applicable 
requirements under section 110 and part D of title I of the CAA (CAA 
section 107(d)(3)(E)(v)) and that the state has a fully approved SIP 
under section 110(k) for the area (CAA section 107(d)(3)(E)(ii)). EPA 
proposes to find that Tennessee has met all applicable SIP requirements 
for the Tennessee portion of the Area under section 110 of the CAA 
(general SIP requirements) for purposes of redesignation. Additionally, 
EPA proposes to find that Tennessee has met all applicable SIP 
requirements for purposes of redesignation under part D of title I of 
the CAA in accordance with section 107(d)(3)(E)(v) and proposes to 
determine that the SIP is fully approved with respect to all 
requirements applicable for purposes of redesignation in accordance 
with section 107(d)(3)(E)(ii) contingent upon approval of the 182(a)(1) 
base year emissions inventory for the 2008 8-hour ozone NAAQS for the 
Tenessee portion of the Area. In making these determinations, EPA 
ascertained which requirements are applicable to the Area and, if 
applicable, that they are fully approved under section 110(k). SIPs 
must be fully approved only with respect to requirements that were 
applicable prior to submittal of the complete redesignation request.
a. The Tennessee Portion of the Memphis, TN-MS-AR Area Has Met All 
Applicable Requirements Under Section 110 and Part D of the CAA
    General SIP requirements. General SIP elements and requirements are 
delineated in section 110(a)(2) of title I, part A of the CAA. These 
requirements include, but are not limited to, the following: submittal 
of a SIP that has been adopted by the state after reasonable public 
notice and hearing; provisions for establishment and operation of 
appropriate procedures needed to monitor ambient air quality; 
implementation of a source permit program; provisions for the 
implementation of part C requirements (Prevention of Significant 
Deterioration

[[Page 22953]]

(PSD)) and provisions for the implementation of part D requirements 
(NSR permit programs); provisions for air pollution modeling; and 
provisions for public and local agency participation in planning and 
emission control rule development.
    Section 110(a)(2)(D) requires that SIPs contain certain measures to 
prevent sources in a state from significantly contributing to air 
quality problems in another state. To implement this provision, EPA has 
required certain states to establish programs to address the interstate 
transport of air pollutants. The section 110(a)(2)(D) requirements for 
a state are not linked with a particular nonattainment area's 
designation and classification in that state. EPA believes that the 
requirements linked with a particular nonattainment area's designation 
and classifications are the relevant measures to evaluate in reviewing 
a redesignation request. The transport SIP submittal requirements, 
where applicable, continue to apply to a state regardless of the 
designation of any one particular area in the state. Thus, EPA does not 
believe that the CAA's interstate transport requirements should be 
construed to be applicable requirements for purposes of redesignation.
    In addition, EPA believes other section 110 elements that are 
neither connected with nonattainment plan submissions nor linked with 
an area's attainment status are not applicable requirements for 
purposes of redesignation. The area will still be subject to these 
requirements after the area is redesignated. The section 110 and part D 
requirements which are linked with a particular area's designation and 
classification are the relevant measures to evaluate in reviewing a 
redesignation request. This approach is consistent with EPA's existing 
policy on applicability (i.e., for redesignations) of conformity and 
oxygenated fuels requirements, as well as with section 184 ozone 
transport requirements. See Reading, Pennsylvania, proposed and final 
rulemakings (61 FR 53174-53176, October 10, 1996), (62 FR 24826, May 7, 
2008); Cleveland-Akron-Loraine, Ohio, final rulemaking (61 FR 20458, 
May 7, 1996); and Tampa, Florida, final rulemaking at (60 FR 62748, 
December 7, 1995). See also the discussion on this issue in the 
Cincinnati, Ohio, redesignation (65 FR 37890, June 19, 2000), and in 
the Pittsburgh, Pennsylvania, redesignation (66 FR 50399, October 19, 
2001).
    Title I, part D, applicable SIP requirements. Section 172(c) of the 
CAA sets forth the basic requirements of attainment plans for 
nonattainment areas that are required to submit them pursuant to 
section 172(b). Subpart 2 of part D, which includes section 182 of the 
CAA, establishes specific requirements for ozone nonattainment areas 
depending on the area's nonattainment classification. As provided in 
subpart 2, a marginal ozone nonattainment area, such as the Memphis, 
TN-MS-AR Area, must submit an emissions inventory that complies with 
section 172(c)(3), but the specific requirements of section 182(a) 
apply in lieu of the demonstration of attainment (and contingency 
measures) required by section 172(c). See 42 U.S.C. 7511a(a). A 
thorough discussion of the requirements contained in sections 172(c) 
and 182 can be found in the General Preamble for Implementation of 
Title I (57 FR 13498).
    Section 182(a) requirements. Section 182(a)(1) requires states to 
submit a comprehensive, accurate, and current inventory of actual 
emissions from sources of VOC and NOx emitted within the boundaries of 
the ozone nonattainment area. Tennessee provided an emissions inventory 
for the Tennessee portion of the Area to EPA in a January 19, 2016, SIP 
submission. Specifically, Tennessee addressed this requirement by 
submitting a 2011 base year emissions inventory for the Tennessee 
portion of the Area. EPA is proposing approval of Tennessee's 2011 base 
year emissions inventory in this action (see Section V.A. above). 
Tennessee's section 182(a)(1) inventory must be approved before EPA can 
take final action to approve the State's redesignation request for the 
Tennessee portion of the Area.
    Under section 182(a)(2)(A), states with ozone nonattainment areas 
that were designated prior to the enactment of the 1990 CAA amendments 
were required to submit, within six months of classification, all rules 
and corrections to existing VOC RACT rules that were required under 
section 172(b)(3) of the CAA (and related guidance) prior to the 1990 
CAA amendments. The Tennessee portion of the Memphis, TN-MS-AR Area is 
not subject to the section 182(a)(2) RACT ``fix up'' because the Area 
was designated as nonattainment after the enactment of the 1990 CAA 
amendments.
    Section 182(a)(2)(B) requires each state with a marginal ozone 
nonattainment area that implemented, or was required to implement, an 
inspection and maintenance (I/M) program prior to the 1990 CAA 
amendments to submit a SIP revision providing for an I/M program no 
less stringent than that required prior to the 1990 amendments or 
already in the SIP at the time of the amendments, whichever is more 
stringent. The Tennessee portion of the Memphis, TN-MS-AR Area is not 
subject to the section 182(a)(2)(B) because it was designated as 
nonattainment after the enactment of the 1990 CAA amendments and did 
not have an I/M program in place for ozone prior to those amendments.
    Regarding the permitting and offset requirements of section 
182(a)(2)(C) and section 182(a)(4), Tennessee currently has a fully 
approved part D NSR program in place. However, EPA has determined that 
areas being redesignated need not comply with the requirement that a 
NSR program be approved prior to redesignation, provided that the area 
demonstrates maintenance of the NAAQS without part D NSR, because PSD 
requirements will apply after redesignation. A more detailed rationale 
for this view is described in a memorandum from Mary Nichols, Assistant 
Administrator for Air and Radiation, dated October 14, 1994, entitled, 
``Part D New Source Review Requirements for Areas Requesting 
Redesignation to Attainment.'' Tennessee's PSD program will become 
applicable in the Memphis, TN-MS-AR Area upon redesignation to 
attainment.
    Section 182(a)(3) requires states to submit periodic inventories 
and emissions statements. Section 182(a)(3)(A) requires states to 
submit a periodic inventory every three years. As discussed below in 
the section of this notice titled Verification of Continued Attainment, 
the State will continue to update its emissions inventory at least once 
every three years. Under section 182(a)(3)(B), each state with an ozone 
nonattainment area must submit a SIP revision requiring emissions 
statements to be submitted to the state by sources within that 
nonattainment area. Tennessee provided a SIP revision to EPA on January 
5, 2015, addressing the section 182(a)(3)(B) emissions statements 
requirement, and on March 5, 2015, EPA published a direct final rule 
approving this SIP revision. See 80 FR 11974.
    Section 176 conformity requirements. Section 176(c) of the CAA 
requires states to establish criteria and procedures to ensure that 
federally supported or funded projects conform to the air quality 
planning goals in the applicable SIP. The requirement to determine 
conformity applies to transportation plans, programs, and projects that 
are developed, funded, or approved under title 23 of the United States 
Code (U.S.C.) and the Federal Transit Act (transportation conformity)

[[Page 22954]]

as well as to all other federally supported or funded projects (general 
conformity). State transportation conformity SIP revisions must be 
consistent with federal conformity regulations relating to 
consultation, enforcement, and enforceability that EPA promulgated 
pursuant to its authority under the CAA.
    EPA interprets the conformity SIP requirements \12\ as not applying 
for purposes of evaluating a redesignation request under section 107(d) 
because state conformity rules are still required after redesignation 
and federal conformity rules apply where state rules have not been 
approved. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001) (upholding this 
interpretation); see also 60 FR 62748 (December 7, 1995) (redesignation 
of Tampa, Florida). Nonetheless, Tennessee has an approved conformity 
SIP for the Tennessee portion of the Memphis, TN-MS-AR Area. See 78 FR 
29027 (May 17, 2013). Thus, EPA proposes that the Tennessee portion of 
the Memphis, TN-MS-AR Area has satisfied all applicable requirements 
for purposes of redesignation under section 110 and part D of title I 
of the CAA contingent upon approval of the 182(a)(1) base year 
emissions inventory.
---------------------------------------------------------------------------

    \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 Tennessee Portion of the Memphis, TN-MS-AR Area Has a Fully 
Approved Applicable SIP Under Section 110(k) of the CAA
    EPA has fully approved the applicable Tennessee SIP for the 
Memphis, TN-MS-AR Area under section 110(k) of the CAA for all 
requirements applicable for purposes of redesignation except for the 
182(a)(1) base year emissions inventory. EPA may rely on prior SIP 
approvals in approving a redesignation request (see Calcagni Memorandum 
at p. 3; Southwestern Pennsylvania Growth Alliance v. Browner, 144 F.3d 
984, 989-90 (6th Cir. 1998); Wall, 265 F.3d 426) plus any additional 
measures it may approve in conjunction with a redesignation action (see 
68 FR 25426 (May 12, 2003) and citations therein). Tennessee has 
adopted and submitted, and EPA has fully approved at various times, 
provisions addressing various SIP elements applicable for the ozone 
NAAQS. See 78 FR 14450 (March 6, 2013).
    As indicated above, EPA believes that the section 110 elements that 
are neither connected with nonattainment plan submissions nor linked to 
an area's nonattainment status are not applicable requirements for 
purposes of redesignation. With the exception of the emissions 
inventory requirement, which is addressed in this action, EPA has 
approved all part D requirements applicable for purposes of this 
redesignation. As noted above, EPA has approved Tennessee's emissions 
statements SIP revisions under CAA section 182(a)(3)(B). See 80 FR 
11974 (March 5, 2015).
Criteria (3)--The Air Quality Improvement in the Memphis, TN-MS-AR Area 
Is Due to Permanent and Enforceable Reductions in Emissions Resulting 
From Implementation of the SIP and Applicable Federal Air Pollution 
Control Regulations and Other Permanent and Enforceable Reductions
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the air quality improvement in the area 
is due to permanent and enforceable reductions in emissions resulting 
from implementation of the SIP, applicable federal air pollution 
control regulations, and other permanent and enforceable reductions 
(CAA section 107(d)(3)(E)(iii)). EPA has preliminarily determined that 
Tennessee has demonstrated that the observed air quality improvement in 
the Memphis, TN-MS-AR Area is due to permanent and enforceable 
reductions in emissions resulting from federal measures and are not the 
result of weather conditions.\13\ EPA does not have any information to 
suggest that the decrease in ozone concentrations in the Memphis, TN-
MS-AR Area is due to unusually favorable meteorological conditions.
---------------------------------------------------------------------------

    \13\ Tennessee compared ozone data on days with the highest 8-
hour ozone maxima in 2005 and 2006 to ozone data on days of 
comparative weather conditions in 2012-2014. The weather parameters 
used in the comparison were maximum temperature, dew point 
depression, relative humidity, cloud cover, wind direction and wind 
speed. The ozone levels in 2005-2006 were considerably higher than 
the ozone levels during similar weather conditions in 2012-2014 
indicating that emission reductions between 2006 and 2014 are the 
reason for the reduction in ozone levels. Details of the analysis 
are found in Attachment I to Tennessee's January 19, 2016, SIP 
submittal.
---------------------------------------------------------------------------

    Federal measures enacted in recent years have resulted in permanent 
emission reductions. The federal measures that have been implemented 
include the following:
    Tier 2 vehicle and fuel standards. Implementation began in 2004 and 
requires all passenger vehicles in any manufacturer's fleet to meet an 
average standard of 0.07 grams of NOX per mile. 
Additionally, in January 2006, the sulfur content of gasoline was 
required to be on average 30 ppm which assists in lowering the 
NOX emissions. EPA expects that these standards will reduce 
NOX emissions from vehicles by approximately 74 percent by 
2030, translating to nearly 3 million tons annually by 
2030.14 15
---------------------------------------------------------------------------

    \14\ EPA, Regulatory Announcement, EPA420-F-99-051 (December 
1999), available at: http://www.epa.gov/tier2/documents/f99051.pdf.
    \15\ The Memphis Area MPO estimates for Shelby County alone 
emission reductions of 2.05 tons per day (tpd) for NOX (a 
4.7 percent reduction) and 0.54 tpd for VOCs (3 percent reduction) 
from 2009 to 2012. TDEC notes that this occurred when the vehicle 
miles traveled (VMT) increased by 9.3 percent.
---------------------------------------------------------------------------

    Heavy-duty gasoline and diesel highway vehicle standards. EPA 
issued this rule in January 2001 (66 FR 5002). This rule includes 
standards limiting the sulfur content of diesel fuel, which went into 
effect in 2004. A second phase took effect in 2007, which further 
reduced the highway diesel fuel sulfur content to 15 ppm, leading to 
additional reductions in combustion NOX and VOC emissions. 
EPA expects that this rule will achieve a 95 percent reduction in 
NOX emissions from diesel trucks and buses and will reduce 
NOX emissions by 2.6 million tons by 2030 when the heavy-
duty vehicle fleet is completely replaced with newer heavy-duty 
vehicles that comply with these emission standards.\16\
---------------------------------------------------------------------------

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

    Large non-road diesel engines rule. This rule was promulgated in 
2004 and was phased in between 2008 through 2014. This rule reduces the 
sulfur content in the nonroad diesel fuel and reduces NOX, 
VOC, particulate matter, and carbon monoxide emissions. These emission 
reductions are federally enforceable. EPA issued this rule in June 
2004, which applies to diesel engines used in industries such as 
construction, agriculture, and mining. It is estimated that compliance 
with this rule will cut NOX emissions from non-road diesel 
engines by up to 90 percent nationwide.
    Nonroad spark-ignition engines and recreational engines standards. 
The nonroad spark-ignition and recreational engine standards, effective 
in July 2003, regulate NOX, hydrocarbons, and carbon 
monoxide from groups of previously unregulated nonroad engines. These 
engine standards apply to large spark-ignition engines (e.g., forklifts 
and airport ground service equipment), recreational vehicles (e.g., 
off-highway motorcycles and all-terrain-vehicles), and recreational 
marine diesel engines sold in the United States and imported after the 
effective date of these

[[Page 22955]]

standards. When all of the nonroad spark-ignition and recreational 
engine standards are fully implemented, an overall 72 percent reduction 
in hydrocarbons, 80 percent reduction in NOX, and 56 percent 
reduction in carbon monoxide emissions are expected by 2020. These 
controls reduce ambient concentrations of ozone, carbon monoxide, and 
fine particulate matter.
    National program for greenhouse gas (GHG) emissions and fuel 
economy standards. The federal GHG and fuel economy standards apply to 
light-duty cars and trucks in model years 2012-2016 (phase 1) and 2017-
2025 (phase 2). The final standards are projected to result in an 
average industry fleet-wide level of 163 grams/mile of carbon dioxide 
which is equivalent to 54.5 miles per gallon if achieved exclusively 
through fuel economy improvements. The fuel economy standards result in 
less fuel being consumed, and therefore less NOX emissions 
released.
    EPA proposes to find that the improvements in air quality in the 
Memphis, TN-MS-AR Area are due to real, permanent and enforceable 
reductions in NOX and VOC emissions resulting from the 
federal measures discussed above.
Criteria (4)--The Tennessee Portion of the Memphis, TN-MS-AR Area Has a 
Fully Approved Maintenance Plan Pursuant to Section 175A of the CAA
    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has a fully approved 
maintenance plan pursuant to section 175A of the CAA (CAA section 
107(d)(3)(E)(iv)). In conjunction with its request to redesignate the 
Tennessee portion of the Memphis, TN-MS-AR Area to attainment for the 
2008 8-hour ozone NAAQS, TDEC submitted a SIP revision to provide for 
the maintenance of the 2008 8-hour ozone NAAQS for at least 10 years 
after the effective date of redesignation to attainment. EPA has made 
the preliminary determination that this maintenance plan meets the 
requirements for approval under section 175A of the CAA.
a. What is required in a maintenance plan?
    Section 175A of the CAA sets forth the elements of a maintenance 
plan for areas seeking redesignation from nonattainment to attainment. 
Under section 175A, the plan must demonstrate continued attainment of 
the applicable NAAQS for at least 10 years after the Administrator 
approves a redesignation to attainment. Eight years after the 
redesignation, the state must submit a revised maintenance plan which 
demonstrates that attainment will continue to be maintained for the 
remainder of the 20-year period following the initial 10-year period. 
To address the possibility of future NAAQS violations, the maintenance 
plan must contain contingency measures as EPA deems necessary to assure 
prompt correction of any future 2008 8-hour ozone violations. The 
Calcagni Memorandum provides further guidance on the content of a 
maintenance plan, explaining that a maintenance plan should address 
five requirements: The attainment emissions inventory, maintenance 
demonstration, monitoring, verification of continued attainment, and a 
contingency plan. As is discussed more fully below, EPA has 
preliminarily determined that Tennessee's maintenance plan includes all 
the necessary components and is thus proposing to approve it as a 
revision to the Tennessee SIP.
b. Attainment Emissions Inventory
    As discussed above, EPA is proposing to determine that the Memphis, 
TN-MS-AR Area has attained the 2008 8-hour ozone NAAQS based on 
quality-assured monitoring data for the 3-year period from 2012-2014, 
and is continuing to attain the standard based on preliminary 2015 
data. Tennessee selected 2012 as the base year (i.e., attainment 
emissions inventory year) for developing a comprehensive emissions 
inventory for NOX and VOC, for which projected emissions 
could be developed for 2017, 2020, and 2027. The attainment inventory 
identifies a level of emissions in the Area that is sufficient to 
attain the 2008 8-hour ozone NAAQS. Tennessee began development of the 
attainment inventory by first generating a baseline emissions inventory 
for the State's portion of the Memphis, TN-MS-AR Area. The State 
projected summer day emission inventories using projected rates of 
growth in population, traffic, economic activity, and other parameters. 
In addition to comparing the final year of the plan (2027) to the base 
year (2012), Tennessee compared interim years to the baseline to 
demonstrate that these years are also expected to show continued 
maintenance of the 2008 8-hour ozone standard.
    The emissions inventory is composed of four major types of sources: 
Point, area, on-road mobile, and non-road mobile. Complete descriptions 
of how the State developed these inventories are located in Attachment 
I of the January 19, 2016, SIP submittal.
    Point source emissions are tabulated from data collected by direct 
on-site measurements of emissions or from mass balance calculations 
utilizing approved emission factors. The 2012 base year inventory 
contains point source emissions data for facilities located within 
Shelby County. Each facility was required to update the data through 
the EIQ with information for the requested year and return the updated 
data to Shelby County Health Department. The point source emissions 
inventory for Shelby County is located in the docket for today's 
action. For each projected year's inventory for 2017, 2020, and 2027, 
the State projected point source emissions using growth factors 
developed from the United States Department of Energy's 2014 Annual 
Energy Outlook (AEO) projections and the University of Tennessee, Data 
Center 2014 Econometric Model Forecast. A conservative value of 1 was 
substituted for all negative growth factors. Growth factors used for 
this analysis include fuel consumption, employment, and population 
changes.
    Emissions for area sources were estimated by multiplying an 
emission factor by such indicators of collective emissions activity as 
production, number of employees, or population. These emissions were 
estimated at the county level. Tennessee used a similar method to that 
used to develop the 2011 emissions inventory. For each projected year's 
inventory, emission factors are used to determine area source 
emissions. Tennessee developed its inventory according to the current 
EPA emissions inventory guidance for area sources.\17\
---------------------------------------------------------------------------

    \17\ This guidance includes: Procedures for the Preparation of 
Emission Inventories of Carbon Monoxide and Precursors of Ozone, 
Vol. 1, EPA-450/4-91-016 (May 1991) and Emissions Inventory 
Improvement Program (EIIP) Technical Report, Vol. 3, Area Sources 
(Revised January 2001, updated April 2001).
---------------------------------------------------------------------------

    Tennessee developed its 2012 on-road emissions inventory using 
EPA's MOVES2014 model with input data from the MPO.\18\ County level 
on-road modeling was conducted using county-specific vehicle population 
and other local data. Tennessee developed its inventory according to 
the current EPA emissions inventory guidance for on-road mobile sources 
using MOVES2014. The MOVES2014 model includes the VMT as an input file 
and can directly output the estimated emissions. For each projected 
year's inventory,

[[Page 22956]]

Tennessee calculated the on-road mobile sources emissions by running 
the MOVES mobile model for the future year with the projected VMT to 
generate emissions that take into consideration expected federal 
tailpipe standards, fleet turnover, and new fuels.
---------------------------------------------------------------------------

    \18\ Tennessee used MOVES2014 technical guidance: Using MOVES to 
Prepare Emission Inventories in State Implementation Plans and 
Transportation Conformity, EPA-420-b-15-007 (January 2015).
---------------------------------------------------------------------------

    Non-road mobile sources include non-road equipment, airport, 
commercial marine vessels, and locomotives. The majority of the non-
road mobile emissions in the U.S. are from the non-road equipment 
segment (i.e., agricultural equipment, construction equipment, lawn and 
garden equipment, and recreational vehicles, such as boats and jet-
skis). Tennessee calculated emissions for most of the non-road mobile 
sources using EPA's NONROAD2008a model within EPA's MOVES2014 model and 
developed its non-road mobile source inventory according to the current 
EPA emissions inventory guidance for non-road mobile sources.\19\
---------------------------------------------------------------------------

    \19\ This guidance includes: Procedures for Emission Inventory 
Preparation, Volume IV: Mobile Sources, EPA-450/4-81-026d (December 
1992).
---------------------------------------------------------------------------

c. Maintenance Demonstration
    The maintenance plan associated with the redesignation request 
includes a maintenance demonstration that:
    (i) Shows compliance with and maintenance of the 2008 8-hour ozone 
NAAQS by providing information to support the demonstration that 
current and future emissions of NOX and VOC remain at or 
below 2012 emissions levels.
    (ii) Uses 2012 as the attainment year and includes future emissions 
inventory projections for 2017, 2020, and 2027.
    (iii) Identifies an ``out year'' at least 10 years after the time 
necessary for EPA to review and approve the maintenance plan. Per 40 
CFR part 93, NOX and VOC MVEBs were established for the last 
year (2027) of the maintenance plan (see section VI below).
    (iv) Provides actual (2012) and projected emissions inventories, in 
tons per summer day (tpsd), for the Tennessee portion of the Memphis, 
TN-MS-AR Area, as shown in Tables 3 and 4, below.

 Table 3--Actual and Projected Average Summer Day NOX Emissions (tpd) for the Tennessee Portion of the Memphis,
                                                  TN-MS-AR Area
----------------------------------------------------------------------------------------------------------------
                     Sector                            2012            2017            2020            2027
----------------------------------------------------------------------------------------------------------------
Point...........................................           13.87           13.45            8.34            8.43
Area............................................            4.11            4.18            4.24            4.33
Non-road........................................           35.93           32.09           30.57           29.77
On-road.........................................           61.56           31.30           22.42           12.51
                                                 ---------------------------------------------------------------
    Total.......................................          115.47           81.01           65.56           55.05
----------------------------------------------------------------------------------------------------------------


 Table 4--Actual and Projected Average Summer Day VOC Emissions (tpd) for the Tennessee Portion of the Memphis,
                                                  TN-MS-AR Area
----------------------------------------------------------------------------------------------------------------
                     Sector                            2012            2017            2020            2027
----------------------------------------------------------------------------------------------------------------
Point...........................................            9.30            6.64            6.22            6.24
Area............................................           44.04           45.33           45.53           46.30
Non-road........................................           28.44           21.32           19.76           19.33
On-road.........................................           19.01           11.22            8.75            5.81
                                                 ---------------------------------------------------------------
    Total.......................................          100.79           84.51           80.26           77.69
----------------------------------------------------------------------------------------------------------------

    Tables 3 and 4 summarize the 2012 and future projected emissions of 
NOX and VOC from the Tennessee portion of the Memphis, TN-
MS-AR Area. In situations where local emissions are the primary 
contributor to nonattainment, such as the Memphis, TN-MS-AR Area if the 
future projected emissions in the nonattainment area remain at or below 
the baseline emissions in the nonattainment area, then the related 
ambient air quality standard should not be exceeded in the future. 
Tennessee has projected emissions as described previously and 
determined that emissions in the Tennessee portion of the Memphis, TN-
MS-AR Area will remain below those in the attainment year inventory for 
the duration of the maintenance plan.
    As discussed in section VI of this proposed rulemaking, a safety 
margin is the difference between the attainment level of emissions 
(from all sources) and the projected level of emissions (from all 
sources) in the maintenance plan. The attainment level of emissions is 
the level of emissions during one of the years in which the area met 
the NAAQS. Tennessee selected 2012 as the attainment emissions 
inventory year for the Tennessee portion of the Memphis, TN-MS-AR Area. 
Tennessee calculated safety margins in its submittal for 2027. The 
State has allocated a portion of the 2027 safety margin to the 2027 
MVEBs for the Memphis, TN-MS-AR Area.

Table 5--Safety Margins for the Tennessee Portion of the Memphis, TN-MS-
                                 AR Area
------------------------------------------------------------------------
                     Year                        VOC  (tpd)   NOX  (tpd)
------------------------------------------------------------------------
2027..........................................       23.10        60.42
------------------------------------------------------------------------

    The State has decided to allocate a portion of the available safety 
margin to the 2027 MVEBs to allow for unanticipated growth in VMT, 
changes and uncertainty in vehicle mix assumptions, etc., that will 
influence the emission estimations. Tennessee has allocated 49.04 tpd 
of the NOX safety margin to the 2027 NOX MVEB and 
13.19 tpd of the VOC safety margin to the 2027 VOC MVEB. After 
allocation of the available safety margin, the remaining safety margin 
is 11.38 tpd for

[[Page 22957]]

NOX and 9.91 tpd for VOC. This allocation and the resulting 
available safety margin for the Tennessee portion of the Memphis, TN-
MS-AR Area are discussed further in section VI of this proposed 
rulemaking along with the MVEBs to be used for transportation 
conformity proposes.
d. Monitoring Network
    There currently are five monitors measuring ozone in the Memphis, 
TN-MS-AR Area, of which three are in the Tennessee portion of the 
Memphis, TN-MS-AR Area. Tennessee has committed to continue operation 
of the monitors in the Tennessee portion of the Memphis, TN-MS-AR Area 
in compliance with 40 CFR part 58 and has thus addressed the 
requirement for monitoring. Arkansas and Mississippi have made similar 
commitments in their maintenance plans. EPA approved Tennessee's 
monitoring plan on October 26, 2015. EPA approved Arkansas' monitoring 
plan on November 16, 2015, and approved Mississippi's monitoring plan 
on October 6, 2015.
e. Verification of Continued Attainment
    TDEC has the legal authority to enforce and implement the 
maintenance plan for the Tennessee portion of the Area. This includes 
the authority to adopt, implement, and enforce any subsequent emissions 
control contingency measures determined to be necessary to correct 
future ozone attainment problems.
    Additionally, under the AERR, TDEC is required to develop a 
comprehensive, annual, statewide emissions inventory every three years 
that is due twelve to eighteen months after the completion of the 
inventory year. Tennessee will update the AERR inventory every three 
years beginning no later than the 2015 emission season and will use the 
updated emissions inventory to track progress of the maintenance plan.
f. Contingency Measures in the Maintenance Plan
    Section 175A of the CAA requires that a maintenance plan include 
such contingency measures as EPA deems necessary to assure that the 
state will promptly correct a violation of the NAAQS that occurs after 
redesignation. The maintenance plan should identify the contingency 
measures to be adopted, a schedule and procedure for adoption and 
implementation, and a time limit for action by the state. A state 
should also identify specific indicators to be used to determine when 
the contingency measures need to be implemented. The maintenance plan 
must include a requirement that a state will implement all measures 
with respect to control of the pollutant that were contained in the SIP 
before redesignation of the area to attainment in accordance with 
section 175A(d).
    In the January 19, 2016, submittal, Tennesee commits to continuing 
existing programs and commits to implement programs and measures 
depending upon emission inventory and air quality monitoring results. 
The contingency plan included in the submittal includes a triggering 
mechanism to determine when contingency measures are needed and a 
process of developing and implementing appropriate control measures.
    The primary trigger is activated when emissions or ambient air 
monitoring data indicates possible future ozone levels violating the 
2008 8-hour ozone NAAQS but an actual violation of the 2008 8-hour 
ozone NAAQS has not yet occurred. This will occur if the certified 
triennial emissions inventory of VOCs or NOX (summer season 
tons per day) exceeds the 2012 base year attainment inventory by ten 
percent or more and any area monitor has recorded at least one 
exceedance of the ozone NAAQS according to certified data during the 
most recent monitoring season. The Shelby County Health Department will 
then conduct an investigation lasting no longer than three months into 
the possible causes. The results will be reported to EPA and TDEC. If 
the data is valid and not due to unusual circumstances, the Shelby 
County Health Department will seek to expand voluntary programs \20\ 
and develop regulations as appropriate following consultation with EPA 
and TDEC. Proof of regulation adoption will be sent to EPA within nine 
months and implementation of regulations will occur within 18 to 24 
months after monitoring data is certified. Possible contingency 
measures include, but are not limited to:
---------------------------------------------------------------------------

    \20\ If the State adopts a voluntary emission reduction measure 
as a contingency measure necessary to attain or maintain the NAAQS, 
EPA will evaluate approvability in accordance with relevant Agency 
guidance regarding the incorporation of voluntary measures into 
SIPs. See, e.g., Memorandum from Richard D. Wilson, Acting 
Administrator for Air and Radiation, to EPA Regional Administrators 
re: Guidance on Incorporating Voluntary Mobile Source Emission 
Reduction Programs in State Implementation Plans (SIPs) (October 24, 
1997); EPA, Office of Air and Radiation, Incorporating Emerging and 
Voluntary Measures in a State Implementation Plan (SIP) (September 
2004).
---------------------------------------------------------------------------

    [cir] Programs or incentives to decrease motor vehicle use;
    [cir] Programs to require additional emissions reductions on 
stationary sources;
    [cir] Restrictions of certain roads or lanes for, or construction 
of such roads or lanes for use by, passenger buses or high-occupancy 
vehicles;
    [cir] Employer-based transportation incentive plans; and
    [cir] Additional programs for new construction of paths for use by 
pedestrian or non-motorized vehicles when economically feasible and in 
the public interest.
    The secondary trigger is a violation of the 2008 8-hour ozone NAAQS 
(i.e., when the three-year average of the 4th highest values is equal 
to or greater than 0.076 ppm at a monitor in the Area). The trigger 
date will be when a monitored violation of the 2008 ozone NAAQS occurs 
in the nonattainment area according to certified data during the most 
recent monitoring season. The Shelby County Health Department will then 
conduct an investigation lasting no longer than three months into the 
possible causes. The results will be reported to TDEC and EPA. If the 
data is valid, further action is required, and the Shelby County Health 
Department will seek to expand voluntary programs and develop 
regulations for submission to the Shelby County Commission or Tennessee 
State Air Board. Proof of adoption of such regulations will be 
submitted to EPA within nine months after the end of the investigation. 
Control measures will be implemented within 18 to 24 months after 
verification of a monitored violation by certified data. In addition to 
the measures stated for the primary trigger, the following measures may 
also be implemented if there is a secondary trigger of a violation of 
the standard:
    [cir] A RACT regulation for legacy major sources of NOX 
emissions in Shelby County; and
    [cir] Adoption of all industrial and commercial VOC controls as 
provided in final EPA-approved Control Technology Guidelines through 
the date of the recorded violation.
    EPA preliminarily concludes that the maintenance plan adequately 
addresses the five basic components of a maintenance plan: The 
attainment emissions inventory, maintenance demonstration, monitoring, 
verification of continued attainment, and a contingency plan. 
Therefore, EPA proposes to find that the maintenance plan SIP revision 
submitted by Tennessee for the State's portion of the Area meets the 
requirements of section 175A of the CAA and is approvable.

[[Page 22958]]

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

    Under section 176(c) of the CAA, new transportation plans, 
programs, and projects, such as the construction of new highways, must 
``conform'' to (i.e., be consistent with) the part of the state's air 
quality plan that addresses pollution from cars and trucks. Conformity 
to the SIP means that transportation activities will not cause new air 
quality violations, worsen existing violations, or delay timely 
attainment of the NAAQS or any interim milestones. If a transportation 
plan does not conform, most new projects that would expand the capacity 
of roadways cannot go forward. Regulations at 40 CFR part 93 set forth 
EPA policy, criteria, and procedures for demonstrating and assuring 
conformity of such transportation activities to a SIP. The regional 
emissions analysis is one, but not the only, requirement for 
implementing transportation conformity. Transportation conformity is a 
requirement for nonattainment and maintenance areas. Maintenance areas 
are areas that were previously nonattainment for a particular NAAQS but 
have since been redesignated to attainment with an approved maintenance 
plan for that NAAQS.
    Under the CAA, states are required to submit, at various times, 
control strategy SIPs and maintenance plans for nonattainment areas. 
These control strategy SIPs (including RFP and attainment demonstration 
requirements) and maintenance plans create MVEBs for criteria 
pollutants and/or their precursors to address pollution from cars and 
trucks. Per 40 CFR part 93, a MVEB must be established for the last 
year of the maintenance plan. A state may adopt MVEBs for other years 
as well. The MVEB is the portion of the total allowable emissions in 
the maintenance demonstration that is allocated to highway and transit 
vehicle use and emissions. See 40 CFR 93.101. The MVEB serves as a 
ceiling on emissions from an area's planned transportation system. The 
MVEB concept is further explained in the preamble to the November 24, 
1993, Transportation Conformity Rule (58 FR 62188). The preamble also 
describes how to establish the MVEB in the SIP and how to revise the 
MVEB.
    After interagency consultation with the transportation partners for 
the Memphis TN-MS-AR Area, Tennessee has developed MVEBs for 
NOX and VOC for the Tennessee portion of the Area. Tennessee 
developed these MVEBs, as required, for the last year of its 
maintenance plan, 2027. The 2027 MVEBs reflect the total projected on-
road emissions for 2027, plus an allocation from the available 
NOX and VOC safety margins. Under 40 CFR 93.101, the term 
``safety margin'' is the difference between the attainment level (from 
all sources) and the projected level of emissions (from all sources) in 
the maintenance plan. The safety margin can be allocated to the 
transportation sector; however, the total emissions must remain below 
the attainment level. The NOX and VOC MVEBs and allocation 
from the safety margin were developed in consultation with the 
transportation partners and were added to account for uncertainties in 
population growth, changes in model vehicle miles traveled, and new 
emission factor models. The NOX and VOC MVEBs for the 
Tennessee portion of the Area are identified in Table 6, below.

     Table 6--Tennessee Portion of the Area NOX and VOC MVEBs (tpd)*
------------------------------------------------------------------------
                                                                  2027
------------------------------------------------------------------------
NOX Base Emissions...........................................      12.51
NOX Safety Margin Allocated to MVEB..........................      49.04
NOX MVEB.....................................................      61.56
VOC Base Emissions...........................................       5.81
VOC Safety Margin Allocated to MVEB..........................      13.19
VOC MVEB.....................................................      19.01
------------------------------------------------------------------------
* The MVEBs do not total the sum of the base emissions and safety
  margins due to rounding convention.

    As mentioned above, Tennessee has chosen to allocate a portion of 
the available safety margin to the NOX and VOC MVEBs for the 
Tennessee portion of the Area. This allocation is 49.04 tpd and 13.19 
tpd for NOX and VOC, respectively. Thus, the remaining 
safety margins for 2027 are 11.38 tpd and 9.91 tpd NOX and 
VOC, respectively.
    Through this rulemaking, EPA is proposing to approve the MVEBs for 
NOX and VOC for 2027 for the Tennessee Portion of the Area 
because EPA has preliminarily determined that the Area maintains the 
2008 8-hour ozone NAAQS with the emissions at the levels of the 
budgets. Once the MVEBs for the Tennessee Portion of the Area are 
approved or found adequate (whichever is completed first), they must be 
used for future conformity determinations.

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

    When reviewing submitted ``control strategy'' SIPs or maintenance 
plans containing MVEBs, EPA may affirmatively find the MVEB contained 
therein adequate for use in determining transportation conformity. Once 
EPA affirmatively finds the submitted MVEB is adequate for 
transportation conformity purposes, that MVEB must be used by state and 
federal agencies in determining whether proposed transportation 
projects conform to the SIP as required by section 176(c) of the CAA.
    EPA's substantive criteria for determining adequacy of a MVEB are 
set out in 40 CFR 93.118(e)(4). The process for determining adequacy 
consists of three basic steps: Public notification of a SIP submission, 
a public comment period, and EPA's adequacy determination. This process 
for determining the adequacy of submitted MVEBs for transportation 
conformity purposes was initially outlined in EPA's May 14, 1999, 
guidance, ``Conformity Guidance on Implementation of March 2, 1999, 
Conformity Court Decision.'' EPA adopted regulations to codify the 
adequacy process in the Transportation Conformity Rule Amendments for 
the ``New 8-Hour Ozone and PM2.5 National Ambient Air 
Quality Standards and Miscellaneous Revisions for Existing Areas; 
Transportation Conformity Rule Amendments--Response to Court Decision 
and Additional Rule Change,'' on July 1, 2004 (69 FR 40004). Additional 
information on the adequacy process for transportation conformity 
purposes is available in the proposed rule entitled, ``Transportation 
Conformity Rule Amendments: Response to Court Decision and Additional 
Rule Changes,'' 68 FR 38974, 38984 (June 30, 2003).
    As discussed earlier, Tennessee's maintenance plan includes 
NOX and VOC MVEBs for the Tennessee portion of the Memphis 
TN-MS-AR Area for 2027, the last year of the maintenance plan. EPA 
reviewed the NOX and VOC MVEBs through the adequacy process. 
The NOX and VOC MVEBs for the Tennessee portion of the area 
were open for public comment on EPA's adequacy Web site on January 27, 
2016, found at: http://www3.epa.gov/otaq/stateresources/transconf/currsips.htm#shelby-cnty. The EPA public comment period on adequacy for 
the 2027 MVEBs for the Tennessee portion of the Area closed on February

[[Page 22959]]

26, 2016, and no comments, adverse or otherwise, were received.
    EPA intends to make its determination on the adequacy of the 2027 
MVEBs for the Tennessee portion of the Area for transportation 
conformity purposes in the near future by completing the adequacy 
process that was started on January 27, 2016. After EPA finds the 2027 
MVEBs adequate or approves them, the new MVEBs for NOX and 
VOC must be used for future transportation conformity determinations. 
For required regional emissions analysis years for 2027 and beyond, the 
applicable budgets will be the new 2027 MVEBs established in the 
maintenance plan.

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

    EPA's proposed actions establish the basis upon which EPA may take 
final action on the issues being proposed for approval today. Approval 
of Tennessee's redesignation request would change the legal designation 
of Shelby County, Tennessee, in the Memphis TN-MS-AR Area, found at 40 
CFR part 81, from nonattainment to attainment for the 2008 8-hour ozone 
NAAQS. Approval of Tennessee's associated SIP revision would also 
incorporate a plan for maintaining the 2008 8-hour ozone NAAQS in the 
Tennessee portion of the Area through 2027 and a section 182(a)(1) base 
year emissions inventory into the Tennessee SIP for the Area. The 
maintenance plan establishes NOX and VOC MVEBs for 2027 for 
the Tennessee portion of the Area and includes contingency measures to 
remedy any future violations of the 2008 8-hour ozone NAAQS and 
procedures for evaluation of potential violations. Additionally, EPA is 
notifying the public of the status of EPA's adequacy determination for 
the newly-established NOX and VOC MVEBs for 2027 for the 
Tennessee portion of the Area.

IX. Proposed Actions

    EPA is proposing to take four separate but related actions 
regarding the redesignation request and associated SIP revision for the 
Tennessee portion of the Memphis TN-MS-AR Area for the 2008 8-hour 
ozone NAAQS. First, EPA is proposing to approve Tennessee's section 
182(a)(1) base year emissions inventory for the 2008 8-hour ozone 
standard for the Tennessee portion of the Area into the SIP.
    Second, EPA is proposing to determine that the Memphis, TN-MS-AR 
Area has attained the 2008 8-hour ozone NAAQS based on complete, 
quality-assured and certified monitoring data for the 2012-2014 
monitoring period. Preliminary 2015 data in AQS indicates that the Area 
is continuing to attain the 2008 8-hour ozone NAAQS.
    Third, EPA is proposing to approve the maintenance plan for the 
Tennessee portion of the Area, including the NOX and VOC 
MVEBs for 2027, into the Tennessee SIP (under CAA section 175A). The 
maintenance plan demonstrates that the Area will continue to maintain 
the 2008 8-hour ozone NAAQS.
    Finally, EPA is proposing to approve Tennessee's redesignation 
request for the 2008 8-hour ozone NAAQS for the Tennessee portion of 
the Area contingent upon approval of the 182(a)(1) base year emissions 
inventory for the Tennessee portion of the Area.
    As part of today's action, EPA is also describing the status of its 
adequacy determination for the NOX and VOC MVEBs for 2027 in 
accordance with 40 CFR 93.118(f)(1). Within 24 months from the 
effective date of EPA's adequacy determination for the MVEBs or the 
effective date for the final rule for this action, whichever is 
earlier, the transportation partners will need to demonstrate 
conformity to the new NOX and VOC MVEBs pursuant to 40 CFR 
93.104(e)(3).
    If finalized, approval of the redesignation request would change 
the official designation of Shelby County, Tennessee in the Tennessee 
portion of the Memphis TN-MS-AR Area for the 2008 8-hour ozone NAAQS 
from nonattainment to attainment, as found at 40 CFR part 81.

X. Statutory and Executive Order Reviews

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

List of Subjects

40 CFR Part 52

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

[[Page 22960]]

40 CFR Part 81

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

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

    Dated: April 8, 2016.
Heather McTeer Toney,
Regional Administrator, Region 4.
[FR Doc. 2016-08796 Filed 4-18-16; 8:45 am]
 BILLING CODE 6560-50-P



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

                                                                                                                                   TABLE 1 TO § 165.1191
                                                                                                                                            *   *     *    *   *


                                                                    *                              *                       *                          *                       *                      *              *

                                                                                                                        7. San Francisco Independence Day Fireworks

                                                      Sponsor ...........................................      The City of San Francisco.
                                                      Event Description ............................           Fireworks Display.
                                                      Date .................................................   July 4th.
                                                      Location 1 ........................................      A barge located approximately 1000 feet off San Francisco Pier 39 at approximately 37°48′49″ N.,
                                                                                                                 122°24′46″ W.
                                                      Location 2 ........................................      A barge located at the end of the San Francisco Municipal Pier at Aquatic Park at approximately 37°48′39″
                                                                                                                 N., 122°25′37″ W.
                                                      Regulated Area 1 ............................            1. 100-foot radius around the fireworks barge during the loading, transit, setup, and until the commence-
                                                                                                                 ment of the scheduled display. Increases to a 1,000-foot radius upon commencement of the fireworks
                                                                                                                 display.
                                                      Regulated Area 2 ............................            2. 100-foot radius around the fireworks barge during the loading, transit, setup, and until the commence-
                                                                                                                 ment of the scheduled display. Increases to a 1,000-foot radius upon commencement of the fireworks
                                                                                                                 display.

                                                                                                                         8. Fourth of July Fireworks, Berkeley Marina

                                                      Sponsor ...........................................      Berkeley Marina.
                                                      Event Description ............................           Fireworks Display.
                                                      Date .................................................   July 4th.
                                                      Location ...........................................     A barge located near Berkeley Pier at approximately 37°51′40″ N., 122°19′19″ W.
                                                      Regulated Area ...............................           100-foot radius around the fireworks barge during the loading, transit, setup, and until the commencement
                                                                                                                 of the scheduled display. Increases to a 1,000-foot radius upon commencement of the fireworks display.

                                                                    *                              *                       *                          *                       *                      *              *

                                                                                                                                22. Monte Foundation Fireworks

                                                      Sponsor ...........................................      Monte Foundation Fireworks.
                                                      Event Description ............................           Fireworks Display.
                                                      Date .................................................   Second Saturday in October.
                                                      Location ...........................................     Capitola Pier in Capitola, CA.
                                                      Regulated Area ...............................           1,000-foot safety zone around the navigable waters of the Capitola Pier.

                                                                    *                              *                       *                          *                       *                      *              *



                                                        Dated: March 11, 2016                                            Control Division, submitted a request                      the Tennessee portion of the Area, into
                                                      Gregory G. Stump,                                                  for the Environmental Protection                           the SIP; and to redesignate the
                                                      Captain, U.S. Coast Guard, Captain of the                          Agency (EPA) to redesignate the portion                    Tennessee portion of the Area to
                                                      Port San Francisco.                                                of Tennessee that is within the                            attainment for the 2008 8-hour ozone
                                                      [FR Doc. 2016–09030 Filed 4–18–16; 8:45 am]                        Memphis, Tennessee-Mississippi-                            NAAQS. EPA is also notifying the
                                                      BILLING CODE 9110–04–P                                             Arkansas (Memphis, TN–MS–AR) 2008                          public of the status of EPA’s adequacy
                                                                                                                         8-hour ozone nonattainment area                            determination for the MVEBs for the
                                                                                                                         (hereafter referred to as the ‘‘Tennessee                  Tennessee portion of the Memphis, TN–
                                                      ENVIRONMENTAL PROTECTION                                           portion of the Memphis, TN–MS–AR                           MS–AR Area.
                                                      AGENCY                                                             Area’’ or ‘‘Tennessee portion of the
                                                                                                                                                                                    DATES: Comments must be received on
                                                                                                                         Area’’) to attainment for the 2008 8-hour
                                                                                                                                                                                    or before May 19, 2016.
                                                      40 CFR Parts 52 and 81                                             ozone National Ambient Air Quality
                                                                                                                         Standards (NAAQS) and an associated                        ADDRESSES:   Submit your comments,
                                                      [EPA–R04–OAR–2016–0018; FRL–9945–04–                               State Implementation Plan (SIP)                            identified by Docket ID No. EPA–R04–
                                                      Region 4]                                                                                                                     OAR–2016–0018, at http://
                                                                                                                         revision containing a maintenance plan
                                                                                                                         and a base year emissions inventory for                    www.regulations.gov. Follow the online
                                                      Air Plan Approval and Air Quality
                                                                                                                         the Area. EPA is proposing to approve                      instructions for submitting comments.
                                                      Designation; TN; Redesignation of the
                                                                                                                         the base year emissions inventory for                      Once submitted, comments cannot be
                                                      Shelby County 2008 8-Hour Ozone
                                                                                                                         the Tennessee portion of the Area into                     edited or removed from Regulations.gov.
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      Nonattainment Area to Attainment
                                                                                                                         the SIP; to determine that the Memphis,                    EPA may publish any comment received
                                                      AGENCY:  Environmental Protection                                  TN–MS–AR Area has attained the 2008                        to its public docket. Do not submit
                                                      Agency.                                                            8-hour ozone NAAQS; to approve the                         electronically any information you
                                                      ACTION: Proposed rule.                                             State’s plan for maintaining attainment                    consider to be Confidential Business
                                                                                                                         of the 2008 8-hour ozone standard in the                   Information (CBI) or other information
                                                      SUMMARY:  On January 19, 2016, the State                           Area, including the motor vehicle                          whose disclosure is restricted by statute.
                                                      of Tennessee, through the Tennessee                                emission budgets (MVEBs) for nitrogen                      Multimedia submissions (audio, video,
                                                      Department of Environment and                                      oxides (NOX) and volatile organic                          etc.) must be accompanied by a written
                                                      Conservation (TDEC), Air Pollution                                 compounds (VOC) for the year 2027 for                      comment. The written comment is


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                                                                               Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules                                           22949

                                                      considered the official comment and                     Tennessee’s plan for maintaining the                   incorporate them into the Tennessee
                                                      should include discussion of all points                 2008 8-hour ozone NAAQS                                SIP.
                                                      you wish to make. EPA will generally                    (maintenance plan), including the                         EPA also proposes to determine that
                                                      not consider comments or comment                        associated MVEBs for the Tennessee                     the Tennessee portion of the Memphis,
                                                      contents located outside of the primary                 portion of the Memphis, TN–MS–AR                       TN–MS–AR Area has met the
                                                      submission (i.e. on the web, cloud, or                  Area, into the SIP; and (4) to redesignate             requirements for redesignation under
                                                      other file sharing system). For                         the Tennessee portion of the Memphis,                  section 107(d)(3)(E) of the CAA.
                                                      additional submission methods, the full                 TN–MS–AR Area to attainment for the                    Accordingly, in this action, EPA is
                                                      EPA public comment policy,                              2008 8-hour ozone NAAQS. EPA is also                   proposing to approve a request to
                                                      information about CBI or multimedia                     notifying the public of the status of                  change the legal designation of Shelby
                                                      submissions, and general guidance on                    EPA’s adequacy determination for the                   County, as found at 40 CFR part 81,
                                                      making effective comments, please visit                 MVEBs for the Tennessee portion of the                 from nonattainment to attainment for
                                                      http://www2.epa.gov/dockets/                            Memphis, TN–MS–AR Area. The                            the 2008 8-hour ozone NAAQS.
                                                      commenting-epa-dockets.                                 Memphis, TN–MS–AR Area consists of                        EPA is also notifying the public of the
                                                      FOR FURTHER INFORMATION CONTACT: Jane                   all of Shelby County in Tennessee, all                 status of EPA’s adequacy process for the
                                                      Spann, Air Regulatory Management                        of Crittenden County in Arkansas, and                  2027 NOX and VOC MVEBs for the
                                                      Section, Air Planning and                               a portion of DeSoto County in                          Tennessee portion of the Memphis, TN–
                                                      Implementation Branch, Air, Pesticides                  Mississippi. Today’s proposed actions                  MS–AR Area. The Adequacy comment
                                                      and Toxics Management Division, U.S.                    are summarized below and described in                  period began on January 27, 2016, with
                                                      Environmental Protection Agency,                        greater detail throughout this notice of               EPA’s posting of the availability of
                                                      Region 4, 61 Forsyth Street SW.,                        proposed rulemaking.                                   Tennessee’s submissions on EPA’s
                                                      Atlanta, Georgia 30303–8960. Ms.                           Based on the 2008 8-hour ozone                      Adequacy Web site (http://
                                                      Spann can be reached by phone at (404)                  nonattainment designation for the                      www3.epa.gov/otaq/stateresources/
                                                      562–9029 or via electronic mail at                      Memphis, TN–MS–AR Area, Tennessee                      transconf/currsips.htm#shelby-cnty).
                                                      spann.jane@epa.gov.                                     was required to develop a                                 The Adequacy comment period for
                                                                                                              nonattainment SIP revision addressing                  these MVEBs closed on February 26,
                                                      SUPPLEMENTARY INFORMATION:
                                                                                                              certain Clean Air Act (CAA or Act)                     2016. No comments, adverse or
                                                      Table of Contents                                       requirements. Specifically, pursuant to                otherwise, were received during the
                                                      I. What are the actions EPA is proposing to
                                                                                                              CAA section 182(a)(3)(B) and section                   Adequacy comment period. Please see
                                                           take?                                              182(a)(1), the state was required to                   section VII of this proposed rulemaking
                                                      II. What is the background for EPA’s                    submit a SIP revision addressing                       for further explanation of this process
                                                           proposed actions?                                  emissions statements and emissions                     and for more details on the MVEBs.
                                                      III. What are the criteria for redesignation?           inventory requirements, respectively,
                                                                                                                                                                        In summary, today’s notice of
                                                      IV. Why is EPA proposing these actions?                 for its portion of the Area. EPA
                                                      V. What is EPA’s analysis of the                                                                               proposed rulemaking is in response to
                                                                                                              approved the emissions statements
                                                           redesignation request and January 19,                                                                     Tennessee’s January 19, 2016,
                                                                                                              requirements for the Tennessee portion
                                                           2016, SIP submission?                                                                                     redesignation request and associated SIP
                                                                                                              of the Area into the SIP in a separate
                                                      VI. What is EPA’s analysis of Tennessee’s                                                                      submission that address the specific
                                                           proposed NOX and VOC MVEBs for the
                                                                                                              action. See 80 FR 11974 (March 5,
                                                                                                                                                                     issues summarized above and the
                                                           Tennessee portion of the area?                     2015). Today, EPA is proposing to
                                                                                                                                                                     necessary elements described in section
                                                      VII. What is the status of EPA’s adequacy               determine that the base year emissions
                                                                                                                                                                     107(d)(3)(E) of the CAA for
                                                           determination for the proposed NOX and             inventory, as submitted in the State’s
                                                                                                                                                                     redesignation of the Tennessee portion
                                                           VOC MVEBs the Tennessee portion of                 January 19, 2016, SIP revision, meets
                                                                                                                                                                     of the Memphis, TN–MS–AR Area to
                                                           the area?                                          the requirements of section 182(a)(1) of
                                                      VIII. What is the effect of EPA’s proposed                                                                     attainment for the 2008 8-hour ozone
                                                                                                              the CAA and proposing to approve this
                                                           actions?                                                                                                  NAAQS.
                                                                                                              emissions inventory into the SIP.
                                                      IX. Proposed Actions.                                      EPA is making the preliminary                       II. What is the background for EPA’s
                                                      X. Statutory and Executive Order Reviews                determination that the Memphis, TN–                    proposed actions?
                                                      I. What are the actions EPA is                          MS–AR Area has attained the 2008 8-
                                                                                                              hour ozone NAAQS based on recent air                      On March 12, 2008, EPA promulgated
                                                      proposing to take?                                                                                             a revised 8-hour ozone NAAQS of 0.075
                                                                                                              quality data and proposing to approve
                                                         EPA is proposing to take the following                                                                      parts per million (ppm). See 73 FR
                                                                                                              Tennessee’s maintenance plan for its
                                                      four separate but related actions, one of                                                                      16436 (March 27, 2008). Under EPA’s
                                                                                                              portion of the Memphis, TN–MS–AR
                                                      which involves multiple elements: (1)                                                                          regulations at 40 CFR part 50, the 2008
                                                                                                              Area as meeting the requirements of
                                                      To approve the base year emissions                                                                             8-hour ozone NAAQS is attained when
                                                                                                              section 175A (such approval being one
                                                      inventory for the 2008 8-hour ozone                                                                            the 3-year average of the annual fourth
                                                                                                              of the CAA criteria for redesignation to
                                                      NAAQS for the Tennessee portion of the                                                                         highest daily maximum 8-hour average
                                                                                                              attainment status). The maintenance
                                                      Area into the Tennessee SIP; (2) to                                                                            ambient air quality ozone
                                                                                                              plan is designed to keep the Memphis,
                                                      determine that the Memphis, TN–MS–                                                                             concentrations is less than or equal to
                                                                                                              TN–MS–AR Area in attainment of the
                                                      AR Area has attained the 2008 8-hour                                                                           0.075 ppm. See 40 CFR 50.15. Ambient
                                                                                                              2008 8-hour ozone NAAQS through
                                                      ozone NAAQS; 1 (3) to approve                                                                                  air quality monitoring data for the 3-
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                                                                                                              2027. The maintenance plan includes
                                                                                                              2027 MVEBs for NOX and VOC for the                     year period must meet a data
                                                        1 On August 27, 2015, EPA published a proposed
                                                                                                                                                                     completeness requirement. The ambient
                                                      rulemaking entitled ‘‘Determinations of Attainment      Tennessee portion of the Memphis, TN–
                                                                                                                                                                     air quality monitoring data
                                                      by the Attainment Date, Extensions of the               MS–AR Area for transportation
                                                      Attainment Date, and Reclassification of Several                                                               completeness requirement is met when
                                                                                                              conformity purposes. EPA is proposing
                                                      Areas Classified as Marginal for the 2008 Ozone                                                                the average percent of days with valid
                                                      National Ambient Air Quality Standards’’ where the      to approve these MVEBs and
                                                                                                                                                                     ambient monitoring data is greater than
                                                      Agency has proposed to determine that the
                                                      Memphis, TN–MS–AR Area has attained the 2008            monitoring data. See 80 FR 51992. Any final action
                                                                                                                                                                     90 percent, and no single year has less
                                                      8-hour ozone NAAQS by the applicable attainment         on the August 27, 2015 proposed rule will occur in     than 75 percent data completeness as
                                                      date of July 20, 2015, based on 2012–2014               a separate rulemaking from today’s proposed action.    determined in Appendix P of part 50.


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                                                      22950                    Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules

                                                         The Memphis, TN–MS–AR Area was                       Implementation of title I of the CAA                   ozone NAAQS and approve the
                                                      designated nonattainment for the 2008                   Amendments of 1990 (57 FR 13498),                      associated SIP revision submitted on the
                                                      8-hour ozone NAAQS on May 21, 2012                      and supplemented this guidance on                      same date. EPA’s evaluation indicates
                                                      (effective July 20, 2012) using 2008–                   April 28, 1992 (57 FR 18070). EPA has                  that the entire Memphis, TN–MS–AR
                                                      2010 ambient air quality data. See 77 FR                provided further guidance on processing                Area has attained the 2008 8-hour ozone
                                                      30088. At the time of designation, the                  redesignation requests in the following                NAAQS and that the Tennessee portion
                                                      Memphis, TN–MS–AR Area was                              documents:                                             of the Memphis, TN–MS–AR Area
                                                      classified as a marginal nonattainment                     1. ‘‘Ozone and Carbon Monoxide Design               meets the requirements for
                                                      area for the 2008 8-hour ozone NAAQS.                   Value Calculations,’’ Memorandum from Bill             redesignation as set forth in CAA
                                                      In the final implementation rule for the                Laxton, Director, Technical Support Division,          section 107(d)(3)(E), including the
                                                      2008 8-hour ozone NAAQS (SIP                            June 18, 1990;                                         maintenance plan requirements under
                                                      Implementation Rule),2 EPA established                     2. ‘‘Maintenance Plans for Redesignation of         CAA section 175A and associated
                                                      ozone nonattainment area attainment                     Ozone and Carbon Monoxide Nonattainment                MVEBs. Also, based on Tennessee’s
                                                      dates based on Table 1 of section 181(a)                Areas,’’ Memorandum from G. T. Helms,                  January 19, 2016, submittal, EPA is
                                                      of the CAA. This established an                         Chief, Ozone/Carbon Monoxide Programs
                                                                                                              Branch, April 30, 1992;
                                                                                                                                                                     proposing to determine that the base
                                                      attainment date three years after the July                 3. ‘‘Contingency Measures for Ozone and             year emissions inventory, included in
                                                      20, 2012, effective date for areas                      Carbon Monoxide (CO) Redesignations,’’                 Tennessee’s January 19, 2016, submittal,
                                                      classified as marginal areas for the 2008               Memorandum from G. T. Helms, Chief,                    meets the requirements under CAA
                                                      8-hour ozone nonattainment                              Ozone/Carbon Monoxide Programs Branch,                 section 182(a)(1). Approval of the base
                                                      designations. Therefore, the Memphis,                   June 1, 1992;                                          year emissions inventory is a
                                                      TN-MS-AR Area’s attainment date is                         4. ‘‘Procedures for Processing Requests to          prerequisite to redesignating an ozone
                                                      July 20, 2015.                                          Redesignate Areas to Attainment,’’                     nonattainment area to attainment. As a
                                                                                                              Memorandum from John Calcagni, Director,
                                                      III. What are the criteria for                                                                                 result of these proposed findings, EPA
                                                                                                              Air Quality Management Division, September
                                                      redesignation?                                          4, 1992 (hereafter referred to as the ‘‘Calcagni       is proposing to take the four related
                                                                                                              Memorandum’’);                                         actions summarized in section I of this
                                                         The CAA provides the requirements                                                                           notice.
                                                      for redesignating a nonattainment area                     5. ‘‘State Implementation Plan (SIP)
                                                                                                              Actions Submitted in Response to Clean Air
                                                      to attainment. Specifically, section                                                                           V. What is EPA’s analysis of the
                                                                                                              Act (CAA) Deadlines,’’ Memorandum from
                                                      107(d)(3)(E) of the CAA allows for                      John Calcagni, Director, Air Quality                   redesignation request and January 19,
                                                      redesignation providing that: (1) The                   Management Division, October 28, 1992;                 2016, SIP submission?
                                                      Administrator determines that the area                     6. ‘‘Technical Support Documents (TSDs)               As stated above, in accordance with
                                                      has attained the applicable NAAQS; (2)                  for Redesignation of Ozone and Carbon                  the CAA, EPA proposes in today’s
                                                      the Administrator has fully approved                    Monoxide (CO) Nonattainment Areas,’’                   action to: (1) Approve the 2008 8-hour
                                                      the applicable implementation plan for                  Memorandum from G. T. Helms, Chief,
                                                                                                              Ozone/Carbon Monoxide Programs Branch,
                                                                                                                                                                     ozone NAAQS base year emissions
                                                      the area under section 110(k); (3) the                                                                         inventory for the Tennessee portion of
                                                      Administrator determines that the                       August 17, 1993;
                                                                                                                 7. ‘‘State Implementation Plan (SIP)                the Area into the Tennessee SIP; (2)
                                                      improvement in air quality is due to                    Requirements for Areas Submitting Requests             determine that the Memphis, TN–MS–
                                                      permanent and enforceable reductions                    for Redesignation to Attainment of the Ozone           AR Area has attained the 2008 8-hour
                                                      in emissions resulting from                             and Carbon Monoxide (CO) National                      ozone NAAQS; (3) approve the 2008 8-
                                                      implementation of the applicable SIP                    Ambient Air Quality Standards (NAAQS) On               hour ozone NAAQS maintenance plan,
                                                      and applicable federal air pollutant                    or After November 15, 1992,’’ Memorandum               including the associated MVEBs, into
                                                      control regulations and other permanent                 from Michael H. Shapiro, Acting Assistant              the Tennessee SIP; and (4) redesignate
                                                      and enforceable reductions; (4) the                     Administrator for Air and Radiation,
                                                                                                              September 17, 1993;
                                                                                                                                                                     the Tennessee portion of the Memphis,
                                                      Administrator has fully approved a                                                                             TN–MS–AR Area to attainment for the
                                                      maintenance plan for the area as                           8. ‘‘Use of Actual Emissions in
                                                                                                              Maintenance Demonstrations for Ozone and               2008 8-hour ozone NAAQS.
                                                      meeting the requirements of section                     CO Nonattainment Areas,’’ Memorandum
                                                      175A; and (5) the state containing such                                                                        A. Emission Inventory
                                                                                                              from D. Kent Berry, Acting Director, Air
                                                      area has met all requirements applicable                Quality Management Division, November 30,                 Section 182(a)(1) of the CAA requires
                                                      to the area for purposes of redesignation               1993;                                                  states to submit a comprehensive,
                                                      under section 110 and part D of the                        9. ‘‘Part D New Source Review (Part D               accurate, and current inventory of actual
                                                      CAA.                                                    NSR) Requirements for Areas Requesting                 emissions from all sources of the
                                                         On April 16, 1992, EPA provided                      Redesignation to Attainment,’’ Memorandum              relevant pollutant or pollutants in each
                                                      guidance on redesignation in the                        from Mary D. Nichols, Assistant
                                                                                                                                                                     ozone nonattainment area. The section
                                                      General Preamble for the                                Administrator for Air and Radiation, October
                                                                                                              14, 1994; and                                          182(a)(1) base year emissions inventory
                                                                                                                 10. ‘‘Reasonable Further Progress,                  is defined in the SIP Requirements Rule
                                                        2 This rule, entitled Implementation of the 2008
                                                                                                              Attainment Demonstration, and Related                  as ‘‘a comprehensive, accurate, current
                                                      National Ambient Air Quality Standards for Ozone:
                                                      State Implementation Plan Requirements and              Requirements for Ozone Nonattainment                   inventory of actual emissions from
                                                      published at 80 FR 12264 (March 6, 2015),               Areas Meeting the Ozone National Ambient               sources of VOC and NOX emitted within
                                                      addresses a range of nonattainment area SIP             Air Quality Standard,’’ Memorandum from                the boundaries of the nonattainment
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                                                      requirements for the 2008 ozone NAAQS, including        John S. Seitz, Director, Office of Air Quality         area as required by CAA section
                                                      requirements pertaining to attainment                   Planning and Standards, May 10, 1995.
                                                      demonstrations, reasonable further progress (RFP),                                                             182(a)(1).’’ See 40 CFR 51.1100(bb). The
                                                      reasonably available control technology (RACT),         IV. Why is EPA proposing these                         inventory year must be selected
                                                      reasonably available control measures (RACM),           actions?                                               consistent with the baseline year for an
                                                      major new source review (NSR), emission                                                                        RFP plan as required by 40 CFR
                                                      inventories, and the timing of SIP submissions and        On January 19, 2016, the State of
                                                      of compliance with emission control measures in                                                                51.1110(b),3 and the inventory must
                                                                                                              Tennessee, through TDEC, requested
                                                      the SIP. This rule also addresses the revocation of
                                                      the 1997 ozone NAAQS and the anti-backsliding
                                                                                                              that EPA redesignate the Tennessee                       3 40 CFR 51.1110(b) states that ‘‘at the time of

                                                      requirements that apply when the 1997 ozone             portion of the Memphis, TN–MS–AR                       designation for the 2008 ozone NAAQS the baseline
                                                      NAAQS are revoked.                                      Area to attainment for the 2008 8-hour                 emissions inventory shall be the emissions



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                                                                                   Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules                                                         22951

                                                      include actual ozone season day                                  Tennessee selected 2011 as the year                        Tennessee’s emissions inventory for
                                                      emissions as defined in 40 CFR                                 for the CAA section 182(a)(1) emissions                   its portion of the Area provides 2011
                                                      51.1100(cc) 4 and contain data elements                        inventory which is the year                               emissions data for NOX and VOCs for
                                                      consistent with the detail required by 40                      corresponding with the first triennial                    the following general source categories:
                                                      CFR part 51, subpart A. See 40 CFR                             inventory under 40 CFR part 51, subpart                   Point, area, non-road mobile, and on-
                                                      51.1115(a), (c), (e). In addition, the point                   A. The emissions inventory is based on                    road mobile. A detailed discussion of
                                                      source emissions included in the                               data developed and submitted by TDEC                      the inventory development is located in
                                                      inventory must be reported according to                        and Shelby County Health Department                       Attachment VII to Tennessee’s January
                                                      the point source emissions thresholds of                       to EPA’s 2011 National Emissions                          19, 2016, SIP submittal which is
                                                      the Air Emissions Reporting                                    Inventory (NEI), and it contains data                     provided in the docket for this action.
                                                      Requirements (AERR) in 40 CFR part 51,                         elements consistent with the detail                       Table 1, below, provides a summary of
                                                      subpart A. See 40 CFR 51.1115(d).                              required by 40 CFR part 51, subpart A.5                   the emissions inventory.

                                                         TABLE 1—2011 POINT, AREA, NON-ROAD MOBILE, AND ON-ROAD MOBILE SOURCES EMISSIONS FOR THE TENNESSEE
                                                                                            PORTION OF THE MEMPHIS AREA
                                                                                                                              [Tons per typical summer day]

                                                                                                                     Point                          Area *                   Non-road mobile **            On-road mobile
                                                                         County
                                                                                                             NOX             VOC           NOX                 VOC           NOX           VOC             NOX            VOC

                                                      Shelby County ..................................       18.30           9.49           4.53               46.88         29.24         15.09          37.90          16.11
                                                         * Includes Prescribed Burning.
                                                         ** Includes nonroad equipment, airports, Commercial Marine Vessels (CMVs), and locomotives.


                                                        The emissions inventory includes all                         large number, collectively have                           EPA emissions inventory guidance for
                                                      anthropogenic VOC and NOXsources for                           significant emissions (e.g., dry cleaners,                on-road mobile sources using MOVES
                                                      Shelby County, Tennessee. NOx and                              service stations). Emissions for these                    version 2014.
                                                      VOC emissions were calculated for a                            sources were estimated by multiplying                       Non-road mobile sources include
                                                      typical summer July day, taking into                           an emission factor by such indicators of                  vehicles, engines, and equipment used
                                                      account the seasonal adjustment factor                         collective emissions activity as                          for construction, agriculture, recreation,
                                                      for summer operations. More detail on                          production, number of employees, or                       and other purposes that do not use
                                                      the inventory emissions for individual                         population. These emissions were                          roadways (e.g., lawn mowers,
                                                      sources categories is provided below                           estimated at the county level. Tennessee                  construction equipment, railroad
                                                      and in Attachment VII to Tennessee’s                           submitted an inventory that it                            locomotives, and aircraft). Tennessee
                                                      January 19, 2016, SIP submittal.                               developed for the NEI in accordance                       calculated emissions for most of the
                                                        Point sources are large, stationary,                         with the AERR. Tennessee developed its                    non-road mobile sources using EPA’s
                                                      identifiable sources of emissions that                         inventory according to the current EPA                    NONROAD2008a model 8 and
                                                      release pollutants into the atmosphere.                        emissions inventory guidance for area                     developed its non-road mobile source
                                                      The inventory contains point source                            sources.6                                                 inventory according to the current EPA
                                                      emissions data for facilities located                             On-road mobile sources include                         emissions inventory guidance for non-
                                                      within Shelby County based on the                              vehicles used on roads for                                road mobile sources.9
                                                      Shelby County, Tennessee, Emissions                            transportation of passengers or freight.                    For the reasons discussed above, EPA
                                                      Inventory Questionnaire (EIQ) which is                         Tennessee developed its on-road                           has preliminarily determined that
                                                      an annual emissions inventory survey                           emissions inventory using EPA’s Motor                     Tennessee’s emissions inventory meets
                                                      conducted by the Shelby County Health                          Vehicle Emissions Simulator (MOVES)                       the requirements under CAA section
                                                      Department. Each facility was required                         model with input data from the                            182(a)(1) and the SIP Requirements Rule
                                                      to update the data through the EIQ with                        Memphis Metropolitan Planning                             for the 2008 8-hour ozone NAAQS.
                                                      information for the requested year and                         Organization (MPO).7 County level on-                     Approval of Tennessee’s redesignation
                                                      return the updated data to Shelby                              road modeling was conducted using                         request is contingent upon EPA’s final
                                                      County Health Department.                                      county-specific vehicle population and                    approval of the base year emissions
                                                        Area sources are small emission                              other local data. Tennessee developed                     inventory for the 2008 8-hour ozone
                                                      stationary sources which, due to their                         its inventory according to the current                    NAAQS.

                                                      inventory for the most recent calendar year for                   5 Data downloaded from the EPA EIS from the               7 Tennessee used MOVES2014 technical

                                                      which a complete triennial inventory is required to            2011 NEI was subjected to quality assurance               guidance: Using MOVES to Prepare Emission
                                                      be submitted to EPA under the provisions of                    procedures described under quality assurance              Inventories in State Implementation Plans and
                                                      subpart A of this part. States may use an alternative          details under 2011 NEI Version 1 Documentation            Transportation Conformity, EPA–420–b–15–007
                                                      baseline emissions inventory provided the state                located at: http://www.epa.gov/ttn/chief/net/2011
                                                                                                                                                                               (January 2015).
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                                                      demonstrates why it is appropriate to use the                  inventory.html#inventorydoc. The quality assurance
                                                                                                                                                                                  8 For consistency with the NEI, Tennessee
                                                      alternative baseline year, and provided that the year          and quality control procedures and measures
                                                      selected is between the years 2008 to 2012.’’                  associated with this data are outlined in the State’s     included emissions data for aircraft, locomotive,
                                                         4 ‘‘Ozone season day emissions’’ is defined as ‘‘an         EPA-approved Emission Inventory Quality                   and commercial marine vessels (CMV) by county.
                                                      average day’s emissions for a typical ozone season             Assurance Project Plan.                                   CMV emissions for 2011 were primarily based on
                                                      work weekday. The state shall select, subject to EPA              6 This guidance includes: Procedures for the
                                                                                                                                                                               EPA’s 2011 NEI, U.S. Corps of Engineers’ 2012
                                                      approval, the particular month(s) in the ozone                 Preparation of Emission Inventories of Carbon             Waterborne Commerce, and 2012 survey of railroad
                                                      season and the day(s) in the work week to be                   Monoxide and Precursors of Ozone, Vol. 1, EPA–            companies operating in Shelby County.
                                                      represented, considering the conditions assumed in             450/4–91–016 (May 1991) and Emissions Inventory              9 This guidance includes: Procedures for Emission
                                                      the development of RFP plans and/or emissions                  Improvement Program (EIIP) Technical Report, Vol.
                                                      budgets for transportation conformity.’’ See 40 CFR            3, Area Sources (Revised January 2001, updated            Inventory Preparation, Volume IV: Mobile Sources,
                                                      51.1100(cc).                                                   April 2001).                                              EPA–450/4–81–026d (December 1992).



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                                                      22952                          Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules

                                                      B. Redesignation Request and                                        with 40 CFR 50.15 and appendix P of                          the duration of the monitoring period
                                                      Maintenance Demonstration                                           part 50, based on three complete,                            required for demonstrating attainment.
                                                        The five redesignation criteria                                   consecutive calendar years of quality-                          In this action, EPA is preliminarily
                                                      provided under CAA section                                          assured air quality monitoring data. To                      determining that the Memphis, TN–MS–
                                                      107(d)(3)(E) are discussed in greater                               attain the NAAQS, the 3-year average of                      AR Area has attained the 2008 8-hour
                                                      detail for the Area in the following                                the fourth-highest daily maximum 8-                          ozone NAAQS. EPA reviewed ozone
                                                      paragraphs of this section.                                         hour average ozone concentrations                            monitoring data from monitoring
                                                                                                                          measured at each monitor within an                           stations in the Memphis, TN–MS–AR
                                                      Criteria (1)—The Memphis, TN–MS–AR                                                                                               Area for the 2008 8-hour ozone NAAQS
                                                      Area Has Attained the 2008 8-Hour                                   area over each year must not exceed
                                                                                                                          0.075 ppm. Based on the data handling                        for 2012–2014, and the design values for
                                                      Ozone NAAQS                                                                                                                      each monitor in the Area are less than
                                                                                                                          and reporting convention described in
                                                         For redesignating a nonattainment                                40 CFR part 50, appendix P, the NAAQS                        0.075 ppm. These data have been
                                                      area to attainment, the CAA requires                                are attained if the design value is 0.075                    quality-assured, are recorded in AQS,
                                                      EPA to determine that the area has                                                                                               and indicate that the Area is attaining
                                                                                                                          ppm or below. The data must be
                                                      attained the applicable NAAQS. See                                                                                               the 2008 8-hour ozone NAAQS. The
                                                                                                                          collected and quality-assured in
                                                      CAA section 107(d)(3)(E)(i). For ozone,                                                                                          fourth-highest 8-hour ozone values at
                                                      an area may be considered to be                                     accordance with 40 CFR part 58 and                           each monitor for 2012, 2013, 2014, and
                                                      attaining the 2008 8-hour ozone NAAQS                               recorded in EPA’s Air Quality System                         the 3-year averages of these values (i.e.,
                                                      if it meets the 2008 8-hour ozone                                   (AQS). The monitors generally should                         design values), are summarized in Table
                                                      NAAQS, as determined in accordance                                  have remained at the same location for                       2, below.
                                                                           TABLE 2—2012–2014 DESIGN VALUE CONCENTRATIONS FOR THE MEMPHIS, TN–MS–AR AREA
                                                                                                                                                       [ppm]

                                                                                                                                                                            4th Highest 8-hour ozone value           3-Year design
                                                                                                                                                                                         (ppm)                          values
                                                                         Location                                                  Site                                                                                 (ppm)
                                                                                                                                                                         2012            2013            2014         2012–2014

                                                      Shelby, TN ........................................   Frayser .............................................           0.083              0.069         0.067           0.073
                                                      Shelby, TN ........................................   Orgill Park ........................................            0.084              0.063         0.065           0.070
                                                      Shelby, TN ........................................   Shelby Farms ...................................                0.086              0.069         0.066           0.073
                                                      Crittenden, AR ..................................     Marion ..............................................           0.079              0.067         0.067           0.071
                                                      DeSoto, MS .......................................    Hernando ..........................................             0.075              0.065         0.067           0.069



                                                         The 3-year design value for 2012–                                Criteria (2)—Tennessee Has a Fully                           approval of the 182(a)(1) base year
                                                      2014 for the Memphis, TN–MS–AR Area                                 Approved SIP Under Section 110(k) for                        emissions inventory for the 2008 8-hour
                                                      is 0.073 ppm,10 which meets the                                     the Tennessee Portion of the Memphis,                        ozone NAAQS for the Tenessee portion
                                                      NAAQS. EPA has reviewed 2015                                        TN–MS–AR Area; and Criteria (5)—                             of the Area. In making these
                                                      preliminary monitoring data for the                                 Tennessee Has Met All Applicable                             determinations, EPA ascertained which
                                                      Area and the preliminary data does not                              Requirements Under Section 110 and                           requirements are applicable to the Area
                                                      indicate a violation of the NAAQS.11 In                             Part D of Title I of the CAA                                 and, if applicable, that they are fully
                                                      today’s action, EPA is proposing to                                    For redesignating a nonattainment                         approved under section 110(k). SIPs
                                                      determine that the Memphis, TN–MS–                                  area to attainment, the CAA requires                         must be fully approved only with
                                                      AR Area has attained the 2008 8-hour                                EPA to determine that the state has met                      respect to requirements that were
                                                      ozone NAAQS. EPA will not take final                                all applicable requirements under                            applicable prior to submittal of the
                                                      action to approve the redesignation if                              section 110 and part D of title I of the                     complete redesignation request.
                                                      the 3-year design value exceeds the                                 CAA (CAA section 107(d)(3)(E)(v)) and                        a. The Tennessee Portion of the
                                                      NAAQS prior to EPA finalizing the                                   that the state has a fully approved SIP                      Memphis, TN–MS–AR Area Has Met All
                                                      redesignation. As discussed in more                                 under section 110(k) for the area (CAA                       Applicable Requirements Under Section
                                                      detail below, Tennessee has committed                               section 107(d)(3)(E)(ii)). EPA proposes                      110 and Part D of the CAA
                                                      to continue monitoring in this Area in                              to find that Tennessee has met all
                                                      accordance with 40 CFR part 58.                                     applicable SIP requirements for the                            General SIP requirements. General SIP
                                                                                                                          Tennessee portion of the Area under                          elements and requirements are
                                                                                                                          section 110 of the CAA (general SIP                          delineated in section 110(a)(2) of title I,
                                                                                                                          requirements) for purposes of                                part A of the CAA. These requirements
                                                                                                                          redesignation. Additionally, EPA                             include, but are not limited to, the
                                                                                                                          proposes to find that Tennessee has met                      following: submittal of a SIP that has
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                                                                                                                          all applicable SIP requirements for                          been adopted by the state after
                                                                                                                          purposes of redesignation under part D                       reasonable public notice and hearing;
                                                                                                                          of title I of the CAA in accordance with                     provisions for establishment and
                                                                                                                          section 107(d)(3)(E)(v) and proposes to                      operation of appropriate procedures
                                                        10 The highest 3-year design value among the                      determine that the SIP is fully approved                     needed to monitor ambient air quality;
                                                      monitoring stations is the design value for the Area.               with respect to all requirements                             implementation of a source permit
                                                        11 This preliminary data is available at EPA’s air                applicable for purposes of redesignation                     program; provisions for the
                                                      data Web site: http://aqsdr1.epa.gov/aqsweb/                        in accordance with section                                   implementation of part C requirements
                                                      aqstmp/airdata/download_files.html#Daily.                           107(d)(3)(E)(ii) contingent upon                             (Prevention of Significant Deterioration


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                                                                               Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules                                         22953

                                                      (PSD)) and provisions for the                           attainment plans for nonattainment                     1990 amendments or already in the SIP
                                                      implementation of part D requirements                   areas that are required to submit them                 at the time of the amendments,
                                                      (NSR permit programs); provisions for                   pursuant to section 172(b). Subpart 2 of               whichever is more stringent. The
                                                      air pollution modeling; and provisions                  part D, which includes section 182 of                  Tennessee portion of the Memphis, TN–
                                                      for public and local agency participation               the CAA, establishes specific                          MS–AR Area is not subject to the
                                                      in planning and emission control rule                   requirements for ozone nonattainment                   section 182(a)(2)(B) because it was
                                                      development.                                            areas depending on the area’s                          designated as nonattainment after the
                                                         Section 110(a)(2)(D) requires that SIPs              nonattainment classification. As                       enactment of the 1990 CAA
                                                      contain certain measures to prevent                     provided in subpart 2, a marginal ozone                amendments and did not have an I/M
                                                      sources in a state from significantly                   nonattainment area, such as the                        program in place for ozone prior to
                                                      contributing to air quality problems in                 Memphis, TN–MS–AR Area, must                           those amendments.
                                                      another state. To implement this                        submit an emissions inventory that                        Regarding the permitting and offset
                                                      provision, EPA has required certain                     complies with section 172(c)(3), but the               requirements of section 182(a)(2)(C) and
                                                      states to establish programs to address                 specific requirements of section 182(a)                section 182(a)(4), Tennessee currently
                                                      the interstate transport of air pollutants.             apply in lieu of the demonstration of                  has a fully approved part D NSR
                                                      The section 110(a)(2)(D) requirements                   attainment (and contingency measures)                  program in place. However, EPA has
                                                      for a state are not linked with a                       required by section 172(c). See 42 U.S.C.              determined that areas being
                                                      particular nonattainment area’s                         7511a(a). A thorough discussion of the                 redesignated need not comply with the
                                                      designation and classification in that                  requirements contained in sections                     requirement that a NSR program be
                                                      state. EPA believes that the                            172(c) and 182 can be found in the                     approved prior to redesignation,
                                                      requirements linked with a particular                   General Preamble for Implementation of                 provided that the area demonstrates
                                                      nonattainment area’s designation and                    Title I (57 FR 13498).                                 maintenance of the NAAQS without
                                                      classifications are the relevant measures                  Section 182(a) requirements. Section                part D NSR, because PSD requirements
                                                      to evaluate in reviewing a redesignation                182(a)(1) requires states to submit a                  will apply after redesignation. A more
                                                      request. The transport SIP submittal                    comprehensive, accurate, and current                   detailed rationale for this view is
                                                      requirements, where applicable,                         inventory of actual emissions from                     described in a memorandum from Mary
                                                      continue to apply to a state regardless of              sources of VOC and NOx emitted within                  Nichols, Assistant Administrator for Air
                                                      the designation of any one particular                   the boundaries of the ozone                            and Radiation, dated October 14, 1994,
                                                      area in the state. Thus, EPA does not                   nonattainment area. Tennessee provided                 entitled, ‘‘Part D New Source Review
                                                      believe that the CAA’s interstate                       an emissions inventory for the                         Requirements for Areas Requesting
                                                      transport requirements should be                        Tennessee portion of the Area to EPA in                Redesignation to Attainment.’’
                                                      construed to be applicable requirements                 a January 19, 2016, SIP submission.                    Tennessee’s PSD program will become
                                                      for purposes of redesignation.                          Specifically, Tennessee addressed this                 applicable in the Memphis, TN–MS–AR
                                                         In addition, EPA believes other                      requirement by submitting a 2011 base                  Area upon redesignation to attainment.
                                                      section 110 elements that are neither                   year emissions inventory for the                          Section 182(a)(3) requires states to
                                                      connected with nonattainment plan                       Tennessee portion of the Area. EPA is                  submit periodic inventories and
                                                      submissions nor linked with an area’s                   proposing approval of Tennessee’s 2011                 emissions statements. Section
                                                      attainment status are not applicable                    base year emissions inventory in this                  182(a)(3)(A) requires states to submit a
                                                      requirements for purposes of                            action (see Section V.A. above).                       periodic inventory every three years. As
                                                      redesignation. The area will still be                   Tennessee’s section 182(a)(1) inventory                discussed below in the section of this
                                                      subject to these requirements after the                 must be approved before EPA can take                   notice titled Verification of Continued
                                                      area is redesignated. The section 110                   final action to approve the State’s                    Attainment, the State will continue to
                                                      and part D requirements which are                       redesignation request for the Tennessee                update its emissions inventory at least
                                                      linked with a particular area’s                         portion of the Area.                                   once every three years. Under section
                                                      designation and classification are the                     Under section 182(a)(2)(A), states                  182(a)(3)(B), each state with an ozone
                                                      relevant measures to evaluate in                        with ozone nonattainment areas that                    nonattainment area must submit a SIP
                                                      reviewing a redesignation request. This                 were designated prior to the enactment                 revision requiring emissions statements
                                                      approach is consistent with EPA’s                       of the 1990 CAA amendments were                        to be submitted to the state by sources
                                                      existing policy on applicability (i.e., for             required to submit, within six months of               within that nonattainment area.
                                                      redesignations) of conformity and                       classification, all rules and corrections              Tennessee provided a SIP revision to
                                                      oxygenated fuels requirements, as well                  to existing VOC RACT rules that were                   EPA on January 5, 2015, addressing the
                                                      as with section 184 ozone transport                     required under section 172(b)(3) of the                section 182(a)(3)(B) emissions
                                                      requirements. See Reading,                              CAA (and related guidance) prior to the                statements requirement, and on March
                                                      Pennsylvania, proposed and final                        1990 CAA amendments. The Tennessee                     5, 2015, EPA published a direct final
                                                      rulemakings (61 FR 53174–53176,                         portion of the Memphis, TN–MS–AR                       rule approving this SIP revision. See 80
                                                      October 10, 1996), (62 FR 24826, May 7,                 Area is not subject to the section                     FR 11974.
                                                      2008); Cleveland-Akron-Loraine, Ohio,                   182(a)(2) RACT ‘‘fix up’’ because the                     Section 176 conformity requirements.
                                                      final rulemaking (61 FR 20458, May 7,                   Area was designated as nonattainment                   Section 176(c) of the CAA requires
                                                      1996); and Tampa, Florida, final                        after the enactment of the 1990 CAA                    states to establish criteria and
                                                      rulemaking at (60 FR 62748, December                    amendments.                                            procedures to ensure that federally
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                                                      7, 1995). See also the discussion on this                  Section 182(a)(2)(B) requires each                  supported or funded projects conform to
                                                      issue in the Cincinnati, Ohio,                          state with a marginal ozone                            the air quality planning goals in the
                                                      redesignation (65 FR 37890, June 19,                    nonattainment area that implemented,                   applicable SIP. The requirement to
                                                      2000), and in the Pittsburgh,                           or was required to implement, an                       determine conformity applies to
                                                      Pennsylvania, redesignation (66 FR                      inspection and maintenance (I/M)                       transportation plans, programs, and
                                                      50399, October 19, 2001).                               program prior to the 1990 CAA                          projects that are developed, funded, or
                                                         Title I, part D, applicable SIP                      amendments to submit a SIP revision                    approved under title 23 of the United
                                                      requirements. Section 172(c) of the CAA                 providing for an I/M program no less                   States Code (U.S.C.) and the Federal
                                                      sets forth the basic requirements of                    stringent than that required prior to the              Transit Act (transportation conformity)


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                                                      22954                    Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules

                                                      as well as to all other federally                       connected with nonattainment plan                      Additionally, in January 2006, the sulfur
                                                      supported or funded projects (general                   submissions nor linked to an area’s                    content of gasoline was required to be
                                                      conformity). State transportation                       nonattainment status are not applicable                on average 30 ppm which assists in
                                                      conformity SIP revisions must be                        requirements for purposes of                           lowering the NOX emissions. EPA
                                                      consistent with federal conformity                      redesignation. With the exception of the               expects that these standards will reduce
                                                      regulations relating to consultation,                   emissions inventory requirement, which                 NOX emissions from vehicles by
                                                      enforcement, and enforceability that                    is addressed in this action, EPA has                   approximately 74 percent by 2030,
                                                      EPA promulgated pursuant to its                         approved all part D requirements                       translating to nearly 3 million tons
                                                      authority under the CAA.                                applicable for purposes of this                        annually by 2030.14 15
                                                         EPA interprets the conformity SIP                    redesignation. As noted above, EPA has                    Heavy-duty gasoline and diesel
                                                      requirements 12 as not applying for                     approved Tennessee’s emissions                         highway vehicle standards. EPA issued
                                                      purposes of evaluating a redesignation                  statements SIP revisions under CAA                     this rule in January 2001 (66 FR 5002).
                                                      request under section 107(d) because                    section 182(a)(3)(B). See 80 FR 11974                  This rule includes standards limiting
                                                      state conformity rules are still required               (March 5, 2015).                                       the sulfur content of diesel fuel, which
                                                      after redesignation and federal                                                                                went into effect in 2004. A second phase
                                                      conformity rules apply where state rules                Criteria (3)—The Air Quality                           took effect in 2007, which further
                                                      have not been approved. See Wall v.                     Improvement in the Memphis, TN–MS–                     reduced the highway diesel fuel sulfur
                                                      EPA, 265 F.3d 426 (6th Cir. 2001)                       AR Area Is Due to Permanent and                        content to 15 ppm, leading to additional
                                                      (upholding this interpretation); see also               Enforceable Reductions in Emissions                    reductions in combustion NOX and VOC
                                                      60 FR 62748 (December 7, 1995)                          Resulting From Implementation of the                   emissions. EPA expects that this rule
                                                      (redesignation of Tampa, Florida).                      SIP and Applicable Federal Air                         will achieve a 95 percent reduction in
                                                      Nonetheless, Tennessee has an                           Pollution Control Regulations and Other                NOX emissions from diesel trucks and
                                                      approved conformity SIP for the                         Permanent and Enforceable Reductions                   buses and will reduce NOX emissions by
                                                      Tennessee portion of the Memphis, TN–                     For redesignating a nonattainment                    2.6 million tons by 2030 when the
                                                      MS–AR Area. See 78 FR 29027 (May 17,                    area to attainment, the CAA requires                   heavy-duty vehicle fleet is completely
                                                      2013). Thus, EPA proposes that the                      EPA to determine that the air quality                  replaced with newer heavy-duty
                                                      Tennessee portion of the Memphis, TN–                   improvement in the area is due to                      vehicles that comply with these
                                                      MS–AR Area has satisfied all applicable                 permanent and enforceable reductions                   emission standards.16
                                                      requirements for purposes of                            in emissions resulting from                               Large non-road diesel engines rule.
                                                      redesignation under section 110 and                     implementation of the SIP, applicable                  This rule was promulgated in 2004 and
                                                      part D of title I of the CAA contingent                 federal air pollution control regulations,             was phased in between 2008 through
                                                      upon approval of the 182(a)(1) base year                and other permanent and enforceable                    2014. This rule reduces the sulfur
                                                      emissions inventory.                                    reductions (CAA section                                content in the nonroad diesel fuel and
                                                                                                              107(d)(3)(E)(iii)). EPA has preliminarily              reduces NOX, VOC, particulate matter,
                                                      b. The Tennessee Portion of the                                                                                and carbon monoxide emissions. These
                                                      Memphis, TN–MS–AR Area Has a Fully                      determined that Tennessee has
                                                                                                              demonstrated that the observed air                     emission reductions are federally
                                                      Approved Applicable SIP Under Section                                                                          enforceable. EPA issued this rule in
                                                      110(k) of the CAA                                       quality improvement in the Memphis,
                                                                                                              TN–MS–AR Area is due to permanent                      June 2004, which applies to diesel
                                                         EPA has fully approved the applicable                and enforceable reductions in emissions                engines used in industries such as
                                                      Tennessee SIP for the Memphis, TN–                      resulting from federal measures and are                construction, agriculture, and mining. It
                                                      MS–AR Area under section 110(k) of the                  not the result of weather conditions.13                is estimated that compliance with this
                                                      CAA for all requirements applicable for                 EPA does not have any information to                   rule will cut NOX emissions from non-
                                                      purposes of redesignation except for the                                                                       road diesel engines by up to 90 percent
                                                                                                              suggest that the decrease in ozone
                                                      182(a)(1) base year emissions inventory.                                                                       nationwide.
                                                                                                              concentrations in the Memphis, TN–
                                                      EPA may rely on prior SIP approvals in                                                                            Nonroad spark-ignition engines and
                                                                                                              MS–AR Area is due to unusually                         recreational engines standards. The
                                                      approving a redesignation request (see                  favorable meteorological conditions.
                                                      Calcagni Memorandum at p. 3;                                                                                   nonroad spark-ignition and recreational
                                                                                                                Federal measures enacted in recent                   engine standards, effective in July 2003,
                                                      Southwestern Pennsylvania Growth                        years have resulted in permanent
                                                      Alliance v. Browner, 144 F.3d 984, 989–                                                                        regulate NOX, hydrocarbons, and carbon
                                                                                                              emission reductions. The federal                       monoxide from groups of previously
                                                      90 (6th Cir. 1998); Wall, 265 F.3d 426)                 measures that have been implemented
                                                      plus any additional measures it may                                                                            unregulated nonroad engines. These
                                                                                                              include the following:                                 engine standards apply to large spark-
                                                      approve in conjunction with a                             Tier 2 vehicle and fuel standards.
                                                      redesignation action (see 68 FR 25426                                                                          ignition engines (e.g., forklifts and
                                                                                                              Implementation began in 2004 and                       airport ground service equipment),
                                                      (May 12, 2003) and citations therein).                  requires all passenger vehicles in any
                                                      Tennessee has adopted and submitted,                                                                           recreational vehicles (e.g., off-highway
                                                                                                              manufacturer’s fleet to meet an average                motorcycles and all-terrain-vehicles),
                                                      and EPA has fully approved at various                   standard of 0.07 grams of NOX per mile.
                                                      times, provisions addressing various SIP                                                                       and recreational marine diesel engines
                                                      elements applicable for the ozone                         13 Tennessee compared ozone data on days with
                                                                                                                                                                     sold in the United States and imported
                                                      NAAQS. See 78 FR 14450 (March 6,                        the highest 8-hour ozone maxima in 2005 and 2006
                                                                                                                                                                     after the effective date of these
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                                                      2013).                                                  to ozone data on days of comparative weather
                                                                                                                                                                       14 EPA, Regulatory Announcement, EPA420–F–
                                                         As indicated above, EPA believes that                conditions in 2012–2014. The weather parameters
                                                                                                              used in the comparison were maximum                    99–051 (December 1999), available at: http://
                                                      the section 110 elements that are neither               temperature, dew point depression, relative            www.epa.gov/tier2/documents/f99051.pdf.
                                                                                                              humidity, cloud cover, wind direction and wind           15 The Memphis Area MPO estimates for Shelby
                                                         12 CAA section 176(c)(4)(E) requires states to       speed. The ozone levels in 2005–2006 were              County alone emission reductions of 2.05 tons per
                                                      submit revisions to their SIPs to reflect certain       considerably higher than the ozone levels during       day (tpd) for NOX (a 4.7 percent reduction) and 0.54
                                                      federal criteria and procedures for determining         similar weather conditions in 2012–2014 indicating     tpd for VOCs (3 percent reduction) from 2009 to
                                                      transportation conformity. Transportation               that emission reductions between 2006 and 2014         2012. TDEC notes that this occurred when the
                                                      conformity SIPs are different from the MVEBs that       are the reason for the reduction in ozone levels.      vehicle miles traveled (VMT) increased by 9.3
                                                      are established in control strategy SIPs and            Details of the analysis are found in Attachment I to   percent.
                                                      maintenance plans.                                      Tennessee’s January 19, 2016, SIP submittal.             16 66 FR 5002, 5012 (January 18, 2001).




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                                                                               Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules                                                 22955

                                                      standards. When all of the nonroad                      submit a revised maintenance plan                         Point source emissions are tabulated
                                                      spark-ignition and recreational engine                  which demonstrates that attainment will                from data collected by direct on-site
                                                      standards are fully implemented, an                     continue to be maintained for the                      measurements of emissions or from
                                                      overall 72 percent reduction in                         remainder of the 20-year period                        mass balance calculations utilizing
                                                      hydrocarbons, 80 percent reduction in                   following the initial 10-year period. To               approved emission factors. The 2012
                                                      NOX, and 56 percent reduction in                        address the possibility of future NAAQS                base year inventory contains point
                                                      carbon monoxide emissions are                           violations, the maintenance plan must                  source emissions data for facilities
                                                      expected by 2020. These controls reduce                 contain contingency measures as EPA                    located within Shelby County. Each
                                                      ambient concentrations of ozone, carbon                 deems necessary to assure prompt                       facility was required to update the data
                                                      monoxide, and fine particulate matter.                  correction of any future 2008 8-hour                   through the EIQ with information for
                                                        National program for greenhouse gas                   ozone violations. The Calcagni                         the requested year and return the
                                                      (GHG) emissions and fuel economy                        Memorandum provides further guidance                   updated data to Shelby County Health
                                                      standards. The federal GHG and fuel                     on the content of a maintenance plan,                  Department. The point source emissions
                                                      economy standards apply to light-duty                   explaining that a maintenance plan                     inventory for Shelby County is located
                                                      cars and trucks in model years 2012–                    should address five requirements: The                  in the docket for today’s action. For
                                                      2016 (phase 1) and 2017–2025 (phase 2).                 attainment emissions inventory,                        each projected year’s inventory for 2017,
                                                      The final standards are projected to                    maintenance demonstration,                             2020, and 2027, the State projected
                                                      result in an average industry fleet-wide                monitoring, verification of continued                  point source emissions using growth
                                                      level of 163 grams/mile of carbon                       attainment, and a contingency plan. As                 factors developed from the United
                                                      dioxide which is equivalent to 54.5                     is discussed more fully below, EPA has                 States Department of Energy’s 2014
                                                      miles per gallon if achieved exclusively                preliminarily determined that                          Annual Energy Outlook (AEO)
                                                      through fuel economy improvements.                      Tennessee’s maintenance plan includes                  projections and the University of
                                                      The fuel economy standards result in                    all the necessary components and is                    Tennessee, Data Center 2014
                                                      less fuel being consumed, and therefore                 thus proposing to approve it as a                      Econometric Model Forecast. A
                                                      less NOX emissions released.                            revision to the Tennessee SIP.                         conservative value of 1 was substituted
                                                        EPA proposes to find that the                                                                                for all negative growth factors. Growth
                                                      improvements in air quality in the                      b. Attainment Emissions Inventory                      factors used for this analysis include
                                                      Memphis, TN–MS–AR Area are due to                          As discussed above, EPA is proposing                fuel consumption, employment, and
                                                      real, permanent and enforceable                         to determine that the Memphis, TN–                     population changes.
                                                      reductions in NOX and VOC emissions                     MS–AR Area has attained the 2008 8-                       Emissions for area sources were
                                                      resulting from the federal measures                     hour ozone NAAQS based on quality-                     estimated by multiplying an emission
                                                      discussed above.                                        assured monitoring data for the 3-year                 factor by such indicators of collective
                                                                                                              period from 2012–2014, and is                          emissions activity as production,
                                                      Criteria (4)—The Tennessee Portion of
                                                                                                              continuing to attain the standard based                number of employees, or population.
                                                      the Memphis, TN–MS–AR Area Has a
                                                                                                                                                                     These emissions were estimated at the
                                                      Fully Approved Maintenance Plan                         on preliminary 2015 data. Tennessee
                                                                                                                                                                     county level. Tennessee used a similar
                                                      Pursuant to Section 175A of the CAA                     selected 2012 as the base year (i.e.,
                                                                                                                                                                     method to that used to develop the 2011
                                                         For redesignating a nonattainment                    attainment emissions inventory year) for
                                                                                                                                                                     emissions inventory. For each projected
                                                      area to attainment, the CAA requires                    developing a comprehensive emissions
                                                                                                                                                                     year’s inventory, emission factors are
                                                      EPA to determine that the area has a                    inventory for NOX and VOC, for which
                                                                                                                                                                     used to determine area source
                                                      fully approved maintenance plan                         projected emissions could be developed
                                                                                                                                                                     emissions. Tennessee developed its
                                                      pursuant to section 175A of the CAA                     for 2017, 2020, and 2027. The
                                                                                                                                                                     inventory according to the current EPA
                                                      (CAA section 107(d)(3)(E)(iv)). In                      attainment inventory identifies a level
                                                                                                                                                                     emissions inventory guidance for area
                                                      conjunction with its request to                         of emissions in the Area that is                       sources.17
                                                      redesignate the Tennessee portion of the                sufficient to attain the 2008 8-hour                      Tennessee developed its 2012 on-road
                                                      Memphis, TN–MS–AR Area to                               ozone NAAQS. Tennessee began                           emissions inventory using EPA’s
                                                      attainment for the 2008 8-hour ozone                    development of the attainment                          MOVES2014 model with input data
                                                      NAAQS, TDEC submitted a SIP revision                    inventory by first generating a baseline               from the MPO.18 County level on-road
                                                      to provide for the maintenance of the                   emissions inventory for the State’s                    modeling was conducted using county-
                                                      2008 8-hour ozone NAAQS for at least                    portion of the Memphis, TN–MS–AR                       specific vehicle population and other
                                                      10 years after the effective date of                    Area. The State projected summer day                   local data. Tennessee developed its
                                                      redesignation to attainment. EPA has                    emission inventories using projected                   inventory according to the current EPA
                                                      made the preliminary determination                      rates of growth in population, traffic,                emissions inventory guidance for on-
                                                      that this maintenance plan meets the                    economic activity, and other                           road mobile sources using MOVES2014.
                                                      requirements for approval under section                 parameters. In addition to comparing                   The MOVES2014 model includes the
                                                      175A of the CAA.                                        the final year of the plan (2027) to the               VMT as an input file and can directly
                                                                                                              base year (2012), Tennessee compared                   output the estimated emissions. For
                                                      a. What is required in a maintenance                    interim years to the baseline to                       each projected year’s inventory,
                                                      plan?                                                   demonstrate that these years are also
                                                         Section 175A of the CAA sets forth                   expected to show continued
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                                                                                                                                                                        17 This guidance includes: Procedures for the

                                                      the elements of a maintenance plan for                  maintenance of the 2008 8-hour ozone                   Preparation of Emission Inventories of Carbon
                                                      areas seeking redesignation from                        standard.                                              Monoxide and Precursors of Ozone, Vol. 1, EPA–
                                                                                                                                                                     450/4–91–016 (May 1991) and Emissions Inventory
                                                      nonattainment to attainment. Under                         The emissions inventory is composed                 Improvement Program (EIIP) Technical Report, Vol.
                                                      section 175A, the plan must                             of four major types of sources: Point,                 3, Area Sources (Revised January 2001, updated
                                                      demonstrate continued attainment of                     area, on-road mobile, and non-road                     April 2001).
                                                                                                                                                                        18 Tennessee used MOVES2014 technical
                                                      the applicable NAAQS for at least 10                    mobile. Complete descriptions of how
                                                                                                                                                                     guidance: Using MOVES to Prepare Emission
                                                      years after the Administrator approves a                the State developed these inventories                  Inventories in State Implementation Plans and
                                                      redesignation to attainment. Eight years                are located in Attachment I of the                     Transportation Conformity, EPA–420–b–15–007
                                                      after the redesignation, the state must                 January 19, 2016, SIP submittal.                       (January 2015).



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                                                      22956                              Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules

                                                      Tennessee calculated the on-road                                             mobile sources using EPA’s                                      remain at or below 2012 emissions
                                                      mobile sources emissions by running                                          NONROAD2008a model within EPA’s                                 levels.
                                                      the MOVES mobile model for the future                                        MOVES2014 model and developed its                                  (ii) Uses 2012 as the attainment year
                                                      year with the projected VMT to generate                                      non-road mobile source inventory                                and includes future emissions inventory
                                                      emissions that take into consideration                                       according to the current EPA emissions                          projections for 2017, 2020, and 2027.
                                                      expected federal tailpipe standards, fleet                                   inventory guidance for non-road mobile                             (iii) Identifies an ‘‘out year’’ at least 10
                                                      turnover, and new fuels.                                                     sources.19                                                      years after the time necessary for EPA to
                                                        Non-road mobile sources include non-                                                                                                       review and approve the maintenance
                                                      road equipment, airport, commercial                                          c. Maintenance Demonstration                                    plan. Per 40 CFR part 93, NOX and VOC
                                                      marine vessels, and locomotives. The                                                                                                         MVEBs were established for the last
                                                                                                                                     The maintenance plan associated with
                                                      majority of the non-road mobile                                                                                                              year (2027) of the maintenance plan (see
                                                                                                                                   the redesignation request includes a
                                                      emissions in the U.S. are from the non-                                                                                                      section VI below).
                                                      road equipment segment (i.e.,                                                maintenance demonstration that:                                    (iv) Provides actual (2012) and
                                                      agricultural equipment, construction                                           (i) Shows compliance with and                                 projected emissions inventories, in tons
                                                      equipment, lawn and garden equipment,                                        maintenance of the 2008 8-hour ozone                            per summer day (tpsd), for the
                                                      and recreational vehicles, such as boats                                     NAAQS by providing information to                               Tennessee portion of the Memphis, TN–
                                                      and jet-skis). Tennessee calculated                                          support the demonstration that current                          MS–AR Area, as shown in Tables 3 and
                                                      emissions for most of the non-road                                           and future emissions of NOX and VOC                             4, below.

                                                         TABLE 3—ACTUAL AND PROJECTED AVERAGE SUMMER DAY NOX EMISSIONS (TPD) FOR THE TENNESSEE PORTION OF
                                                                                          THE MEMPHIS, TN–MS–AR AREA

                                                                                                            Sector                                                                   2012            2017                    2020           2027

                                                      Point .................................................................................................................           13.87               13.45                 8.34          8.43
                                                      Area .................................................................................................................             4.11                4.18                 4.24          4.33
                                                      Non-road ..........................................................................................................               35.93               32.09                30.57         29.77
                                                      On-road ............................................................................................................              61.56               31.30                22.42         12.51

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


                                                         TABLE 4—ACTUAL AND PROJECTED AVERAGE SUMMER DAY VOC EMISSIONS (TPD) FOR THE TENNESSEE PORTION OF
                                                                                          THE MEMPHIS, TN–MS–AR AREA

                                                                                                            Sector                                                                   2012            2017                    2020           2027

                                                      Point .................................................................................................................            9.30                6.64                 6.22          6.24
                                                      Area .................................................................................................................            44.04               45.33                45.53         46.30
                                                      Non-road ..........................................................................................................               28.44               21.32                19.76         19.33
                                                      On-road ............................................................................................................              19.01               11.22                 8.75          5.81

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



                                                         Tables 3 and 4 summarize the 2012                                            As discussed in section VI of this                            TABLE 5—SAFETY MARGINS FOR THE
                                                      and future projected emissions of NOX                                        proposed rulemaking, a safety margin is                           TENNESSEE PORTION OF THE MEM-
                                                      and VOC from the Tennessee portion of                                        the difference between the attainment                             PHIS, TN–MS–AR AREA
                                                      the Memphis, TN–MS–AR Area. In                                               level of emissions (from all sources) and
                                                      situations where local emissions are the                                     the projected level of emissions (from                                    Year                   VOC      NOX
                                                      primary contributor to nonattainment,                                        all sources) in the maintenance plan.                                                            (tpd)    (tpd)
                                                      such as the Memphis, TN–MS–AR Area                                           The attainment level of emissions is the
                                                                                                                                                                                                   2027 ......................      23.10    60.42
                                                      if the future projected emissions in the                                     level of emissions during one of the
                                                      nonattainment area remain at or below                                        years in which the area met the NAAQS.                             The State has decided to allocate a
                                                      the baseline emissions in the                                                Tennessee selected 2012 as the                                  portion of the available safety margin to
                                                      nonattainment area, then the related                                         attainment emissions inventory year for                         the 2027 MVEBs to allow for
                                                      ambient air quality standard should not                                      the Tennessee portion of the Memphis,                           unanticipated growth in VMT, changes
                                                      be exceeded in the future. Tennessee                                         TN–MS–AR Area. Tennessee calculated                             and uncertainty in vehicle mix
                                                      has projected emissions as described                                         safety margins in its submittal for 2027.                       assumptions, etc., that will influence
                                                      previously and determined that                                               The State has allocated a portion of the                        the emission estimations. Tennessee has
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                                                      emissions in the Tennessee portion of                                        2027 safety margin to the 2027 MVEBs                            allocated 49.04 tpd of the NOX safety
                                                      the Memphis, TN–MS–AR Area will                                              for the Memphis, TN–MS–AR Area.                                 margin to the 2027 NOX MVEB and
                                                      remain below those in the attainment                                                                                                         13.19 tpd of the VOC safety margin to
                                                      year inventory for the duration of the                                                                                                       the 2027 VOC MVEB. After allocation of
                                                      maintenance plan.                                                                                                                            the available safety margin, the
                                                                                                                                                                                                   remaining safety margin is 11.38 tpd for


                                                        19 This guidance includes: Procedures for

                                                      Emission Inventory Preparation, Volume IV: Mobile
                                                      Sources, EPA–450/4–81–026d (December 1992).

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                                                                               Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules                                            22957

                                                      NOX and 9.91 tpd for VOC. This                          will implement all measures with                          Æ Restrictions of certain roads or
                                                      allocation and the resulting available                  respect to control of the pollutant that               lanes for, or construction of such roads
                                                      safety margin for the Tennessee portion                 were contained in the SIP before                       or lanes for use by, passenger buses or
                                                      of the Memphis, TN–MS–AR Area are                       redesignation of the area to attainment                high-occupancy vehicles;
                                                      discussed further in section VI of this                 in accordance with section 175A(d).
                                                                                                                 In the January 19, 2016, submittal,                    Æ Employer-based transportation
                                                      proposed rulemaking along with the
                                                                                                              Tennesee commits to continuing                         incentive plans; and
                                                      MVEBs to be used for transportation
                                                      conformity proposes.                                    existing programs and commits to                          Æ Additional programs for new
                                                                                                              implement programs and measures                        construction of paths for use by
                                                      d. Monitoring Network                                   depending upon emission inventory and                  pedestrian or non-motorized vehicles
                                                        There currently are five monitors                     air quality monitoring results. The                    when economically feasible and in the
                                                      measuring ozone in the Memphis, TN–                     contingency plan included in the                       public interest.
                                                      MS–AR Area, of which three are in the                   submittal includes a triggering
                                                      Tennessee portion of the Memphis, TN–                                                                             The secondary trigger is a violation of
                                                                                                              mechanism to determine when
                                                      MS–AR Area. Tennessee has committed                                                                            the 2008 8-hour ozone NAAQS (i.e.,
                                                                                                              contingency measures are needed and a
                                                      to continue operation of the monitors in                process of developing and                              when the three-year average of the 4th
                                                      the Tennessee portion of the Memphis,                   implementing appropriate control                       highest values is equal to or greater than
                                                      TN–MS–AR Area in compliance with 40                     measures.                                              0.076 ppm at a monitor in the Area).
                                                      CFR part 58 and has thus addressed the                     The primary trigger is activated when               The trigger date will be when a
                                                      requirement for monitoring. Arkansas                    emissions or ambient air monitoring                    monitored violation of the 2008 ozone
                                                      and Mississippi have made similar                       data indicates possible future ozone                   NAAQS occurs in the nonattainment
                                                      commitments in their maintenance                        levels violating the 2008 8-hour ozone                 area according to certified data during
                                                      plans. EPA approved Tennessee’s                         NAAQS but an actual violation of the                   the most recent monitoring season. The
                                                      monitoring plan on October 26, 2015.                    2008 8-hour ozone NAAQS has not yet                    Shelby County Health Department will
                                                      EPA approved Arkansas’ monitoring                       occurred. This will occur if the certified             then conduct an investigation lasting no
                                                      plan on November 16, 2015, and                          triennial emissions inventory of VOCs                  longer than three months into the
                                                      approved Mississippi’s monitoring plan                  or NOX (summer season tons per day)                    possible causes. The results will be
                                                      on October 6, 2015.                                     exceeds the 2012 base year attainment                  reported to TDEC and EPA. If the data
                                                                                                              inventory by ten percent or more and                   is valid, further action is required, and
                                                      e. Verification of Continued Attainment                 any area monitor has recorded at least                 the Shelby County Health Department
                                                         TDEC has the legal authority to                      one exceedance of the ozone NAAQS                      will seek to expand voluntary programs
                                                      enforce and implement the maintenance                   according to certified data during the                 and develop regulations for submission
                                                      plan for the Tennessee portion of the                   most recent monitoring season. The
                                                      Area. This includes the authority to                                                                           to the Shelby County Commission or
                                                                                                              Shelby County Health Department will
                                                      adopt, implement, and enforce any                       then conduct an investigation lasting no               Tennessee State Air Board. Proof of
                                                      subsequent emissions control                            longer than three months into the                      adoption of such regulations will be
                                                      contingency measures determined to be                   possible causes. The results will be                   submitted to EPA within nine months
                                                      necessary to correct future ozone                       reported to EPA and TDEC. If the data                  after the end of the investigation.
                                                      attainment problems.                                    is valid and not due to unusual                        Control measures will be implemented
                                                         Additionally, under the AERR, TDEC                   circumstances, the Shelby County                       within 18 to 24 months after verification
                                                      is required to develop a comprehensive,                 Health Department will seek to expand                  of a monitored violation by certified
                                                      annual, statewide emissions inventory                   voluntary programs 20 and develop                      data. In addition to the measures stated
                                                      every three years that is due twelve to                 regulations as appropriate following                   for the primary trigger, the following
                                                      eighteen months after the completion of                 consultation with EPA and TDEC. Proof                  measures may also be implemented if
                                                      the inventory year. Tennessee will                      of regulation adoption will be sent to                 there is a secondary trigger of a violation
                                                      update the AERR inventory every three                   EPA within nine months and                             of the standard:
                                                      years beginning no later than the 2015                  implementation of regulations will                        Æ A RACT regulation for legacy major
                                                      emission season and will use the                        occur within 18 to 24 months after
                                                                                                                                                                     sources of NOX emissions in Shelby
                                                      updated emissions inventory to track                    monitoring data is certified. Possible
                                                                                                              contingency measures include, but are                  County; and
                                                      progress of the maintenance plan.
                                                                                                              not limited to:                                           Æ Adoption of all industrial and
                                                      f. Contingency Measures in the                             Æ Programs or incentives to decrease                commercial VOC controls as provided
                                                      Maintenance Plan                                        motor vehicle use;                                     in final EPA-approved Control
                                                         Section 175A of the CAA requires that                   Æ Programs to require additional                    Technology Guidelines through the date
                                                      a maintenance plan include such                         emissions reductions on stationary                     of the recorded violation.
                                                      contingency measures as EPA deems                       sources;
                                                                                                                                                                        EPA preliminarily concludes that the
                                                      necessary to assure that the state will
                                                      promptly correct a violation of the                       20 If the State adopts a voluntary emission          maintenance plan adequately addresses
                                                      NAAQS that occurs after redesignation.                  reduction measure as a contingency measure             the five basic components of a
                                                                                                              necessary to attain or maintain the NAAQS, EPA         maintenance plan: The attainment
                                                      The maintenance plan should identify
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                                                                                                              will evaluate approvability in accordance with
                                                      the contingency measures to be adopted,                 relevant Agency guidance regarding the
                                                                                                                                                                     emissions inventory, maintenance
                                                      a schedule and procedure for adoption                   incorporation of voluntary measures into SIPs. See,    demonstration, monitoring, verification
                                                      and implementation, and a time limit                    e.g., Memorandum from Richard D. Wilson, Acting        of continued attainment, and a
                                                                                                              Administrator for Air and Radiation, to EPA
                                                      for action by the state. A state should                 Regional Administrators re: Guidance on
                                                                                                                                                                     contingency plan. Therefore, EPA
                                                      also identify specific indicators to be                 Incorporating Voluntary Mobile Source Emission         proposes to find that the maintenance
                                                      used to determine when the                              Reduction Programs in State Implementation Plans       plan SIP revision submitted by
                                                                                                              (SIPs) (October 24, 1997); EPA, Office of Air and      Tennessee for the State’s portion of the
                                                      contingency measures need to be                         Radiation, Incorporating Emerging and Voluntary
                                                      implemented. The maintenance plan                       Measures in a State Implementation Plan (SIP)          Area meets the requirements of section
                                                      must include a requirement that a state                 (September 2004).                                      175A of the CAA and is approvable.


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                                                      22958                    Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules

                                                      VI. What is EPA’s analysis of                           required, for the last year of its                             VII. What is the status of EPA’s
                                                      Tennessee’s proposed NOX and VOC                        maintenance plan, 2027. The 2027                               adequacy determination for the
                                                      MVEBs for the Tennessee portion of the                  MVEBs reflect the total projected on-                          proposed NOX and VOC MVEBs for the
                                                      area?                                                   road emissions for 2027, plus an                               Tennessee portion of the area?
                                                         Under section 176(c) of the CAA, new                 allocation from the available NOX and
                                                                                                                                                                                When reviewing submitted ‘‘control
                                                      transportation plans, programs, and                     VOC safety margins. Under 40 CFR
                                                                                                                                                                             strategy’’ SIPs or maintenance plans
                                                      projects, such as the construction of                   93.101, the term ‘‘safety margin’’ is the                      containing MVEBs, EPA may
                                                      new highways, must ‘‘conform’’ to (i.e.,                difference between the attainment level                        affirmatively find the MVEB contained
                                                      be consistent with) the part of the state’s             (from all sources) and the projected                           therein adequate for use in determining
                                                      air quality plan that addresses pollution               level of emissions (from all sources) in                       transportation conformity. Once EPA
                                                      from cars and trucks. Conformity to the                 the maintenance plan. The safety                               affirmatively finds the submitted MVEB
                                                      SIP means that transportation activities                margin can be allocated to the                                 is adequate for transportation
                                                      will not cause new air quality                          transportation sector; however, the total                      conformity purposes, that MVEB must
                                                      violations, worsen existing violations, or              emissions must remain below the                                be used by state and federal agencies in
                                                      delay timely attainment of the NAAQS                    attainment level. The NOX and VOC                              determining whether proposed
                                                      or any interim milestones. If a                         MVEBs and allocation from the safety                           transportation projects conform to the
                                                      transportation plan does not conform,                   margin were developed in consultation                          SIP as required by section 176(c) of the
                                                      most new projects that would expand                     with the transportation partners and                           CAA.
                                                      the capacity of roadways cannot go                      were added to account for uncertainties
                                                      forward. Regulations at 40 CFR part 93                                                                                    EPA’s substantive criteria for
                                                                                                              in population growth, changes in model                         determining adequacy of a MVEB are set
                                                      set forth EPA policy, criteria, and
                                                                                                              vehicle miles traveled, and new                                out in 40 CFR 93.118(e)(4). The process
                                                      procedures for demonstrating and
                                                                                                              emission factor models. The NOX and                            for determining adequacy consists of
                                                      assuring conformity of such
                                                      transportation activities to a SIP. The                 VOC MVEBs for the Tennessee portion                            three basic steps: Public notification of
                                                      regional emissions analysis is one, but                 of the Area are identified in Table 6,                         a SIP submission, a public comment
                                                      not the only, requirement for                           below.                                                         period, and EPA’s adequacy
                                                      implementing transportation                                                                                            determination. This process for
                                                      conformity. Transportation conformity                         TABLE 6—TENNESSEE PORTION OF                             determining the adequacy of submitted
                                                      is a requirement for nonattainment and                        THE AREA NOX AND VOC MVEBS                               MVEBs for transportation conformity
                                                      maintenance areas. Maintenance areas                          (TPD)*                                                   purposes was initially outlined in EPA’s
                                                      are areas that were previously                                                                                         May 14, 1999, guidance, ‘‘Conformity
                                                      nonattainment for a particular NAAQS                                                                         2027      Guidance on Implementation of March
                                                      but have since been redesignated to                                                                                    2, 1999, Conformity Court Decision.’’
                                                      attainment with an approved                             NOX Base Emissions ...................                 12.51   EPA adopted regulations to codify the
                                                      maintenance plan for that NAAQS.                        NOX Safety Margin Allocated to                                 adequacy process in the Transportation
                                                         Under the CAA, states are required to                 MVEB ........................................         49.04   Conformity Rule Amendments for the
                                                      submit, at various times, control strategy              NOX MVEB ...................................           61.56   ‘‘New 8-Hour Ozone and PM2.5 National
                                                      SIPs and maintenance plans for                          VOC Base Emissions ...................                  5.81   Ambient Air Quality Standards and
                                                                                                              VOC Safety Margin Allocated to                                 Miscellaneous Revisions for Existing
                                                      nonattainment areas. These control
                                                                                                               MVEB ........................................         13.19   Areas; Transportation Conformity Rule
                                                      strategy SIPs (including RFP and
                                                                                                              VOC MVEB ...................................           19.01   Amendments—Response to Court
                                                      attainment demonstration requirements)
                                                      and maintenance plans create MVEBs                        * The MVEBs do not total the sum of the                      Decision and Additional Rule Change,’’
                                                      for criteria pollutants and/or their                    base emissions and safety margins due to                       on July 1, 2004 (69 FR 40004).
                                                      precursors to address pollution from                    rounding convention.                                           Additional information on the adequacy
                                                      cars and trucks. Per 40 CFR part 93, a                                                                                 process for transportation conformity
                                                                                                                As mentioned above, Tennessee has                            purposes is available in the proposed
                                                      MVEB must be established for the last                   chosen to allocate a portion of the
                                                      year of the maintenance plan. A state                                                                                  rule entitled, ‘‘Transportation
                                                                                                              available safety margin to the NOX and                         Conformity Rule Amendments:
                                                      may adopt MVEBs for other years as
                                                                                                              VOC MVEBs for the Tennessee portion                            Response to Court Decision and
                                                      well. The MVEB is the portion of the
                                                                                                              of the Area. This allocation is 49.04 tpd                      Additional Rule Changes,’’ 68 FR 38974,
                                                      total allowable emissions in the
                                                                                                              and 13.19 tpd for NOX and VOC,                                 38984 (June 30, 2003).
                                                      maintenance demonstration that is
                                                      allocated to highway and transit vehicle                respectively. Thus, the remaining safety                          As discussed earlier, Tennessee’s
                                                      use and emissions. See 40 CFR 93.101.                   margins for 2027 are 11.38 tpd and 9.91                        maintenance plan includes NOX and
                                                      The MVEB serves as a ceiling on                         tpd NOX and VOC, respectively.                                 VOC MVEBs for the Tennessee portion
                                                      emissions from an area’s planned                          Through this rulemaking, EPA is                              of the Memphis TN–MS–AR Area for
                                                      transportation system. The MVEB                         proposing to approve the MVEBs for                             2027, the last year of the maintenance
                                                      concept is further explained in the                     NOX and VOC for 2027 for the                                   plan. EPA reviewed the NOX and VOC
                                                      preamble to the November 24, 1993,                      Tennessee Portion of the Area because                          MVEBs through the adequacy process.
                                                      Transportation Conformity Rule (58 FR                   EPA has preliminarily determined that                          The NOX and VOC MVEBs for the
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                                                      62188). The preamble also describes                     the Area maintains the 2008 8-hour                             Tennessee portion of the area were open
                                                      how to establish the MVEB in the SIP                    ozone NAAQS with the emissions at the                          for public comment on EPA’s adequacy
                                                      and how to revise the MVEB.                             levels of the budgets. Once the MVEBs                          Web site on January 27, 2016, found at:
                                                         After interagency consultation with                  for the Tennessee Portion of the Area                          http://www3.epa.gov/otaq/
                                                      the transportation partners for the                     are approved or found adequate                                 stateresources/transconf/
                                                      Memphis TN–MS–AR Area, Tennessee                        (whichever is completed first), they                           currsips.htm#shelby-cnty. The EPA
                                                      has developed MVEBs for NOX and VOC                                                                                    public comment period on adequacy for
                                                                                                              must be used for future conformity
                                                      for the Tennessee portion of the Area.                                                                                 the 2027 MVEBs for the Tennessee
                                                                                                              determinations.
                                                      Tennessee developed these MVEBs, as                                                                                    portion of the Area closed on February


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                                                                               Federal Register / Vol. 81, No. 75 / Tuesday, April 19, 2016 / Proposed Rules                                          22959

                                                      26, 2016, and no comments, adverse or                   data for the 2012–2014 monitoring                      and do not impose additional
                                                      otherwise, were received.                               period. Preliminary 2015 data in AQS                   requirements beyond those imposed by
                                                         EPA intends to make its                              indicates that the Area is continuing to               state law. For this reason, these
                                                      determination on the adequacy of the                    attain the 2008 8-hour ozone NAAQS.                    proposed actions:
                                                      2027 MVEBs for the Tennessee portion                       Third, EPA is proposing to approve                     • Are not a significant regulatory
                                                      of the Area for transportation                          the maintenance plan for the Tennessee                 action subject to review by the Office of
                                                      conformity purposes in the near future                  portion of the Area, including the NOX                 Management and Budget under
                                                      by completing the adequacy process that                 and VOC MVEBs for 2027, into the                       Executive Orders 12866 (58 FR 51735,
                                                      was started on January 27, 2016. After                  Tennessee SIP (under CAA section                       October 4, 1993) and 13563 (76 FR 3821,
                                                      EPA finds the 2027 MVEBs adequate or                    175A). The maintenance plan                            January 21, 2011);
                                                      approves them, the new MVEBs for NOX                    demonstrates that the Area will                           • Do not impose an information
                                                      and VOC must be used for future                         continue to maintain the 2008 8-hour                   collection burden under the provisions
                                                      transportation conformity                               ozone NAAQS.                                           of the Paperwork Reduction Act (44
                                                      determinations. For required regional                      Finally, EPA is proposing to approve                U.S.C. 3501 et seq.);
                                                      emissions analysis years for 2027 and                   Tennessee’s redesignation request for
                                                                                                                                                                        • Are certified as not having a
                                                      beyond, the applicable budgets will be                  the 2008 8-hour ozone NAAQS for the
                                                                                                                                                                     significant economic impact on a
                                                      the new 2027 MVEBs established in the                   Tennessee portion of the Area
                                                                                                                                                                     substantial number of small entities
                                                      maintenance plan.                                       contingent upon approval of the
                                                                                                              182(a)(1) base year emissions inventory                under the Regulatory Flexibility Act (5
                                                      VIII. What is the effect of EPA’s                       for the Tennessee portion of the Area.                 U.S.C. 601 et seq.);
                                                      proposed actions?                                          As part of today’s action, EPA is also                 • Do not contain any unfunded
                                                         EPA’s proposed actions establish the                 describing the status of its adequacy                  mandate or significantly or uniquely
                                                      basis upon which EPA may take final                     determination for the NOX and VOC                      affect small governments, as described
                                                      action on the issues being proposed for                 MVEBs for 2027 in accordance with 40                   in the Unfunded Mandates Reform Act
                                                      approval today. Approval of                             CFR 93.118(f)(1). Within 24 months                     of 1995 (Pub. L. 104–4);
                                                      Tennessee’s redesignation request                       from the effective date of EPA’s                          • Do not have Federalism
                                                      would change the legal designation of                   adequacy determination for the MVEBs                   implications as specified in Executive
                                                      Shelby County, Tennessee, in the                        or the effective date for the final rule for           Order 13132 (64 FR 43255, August 10,
                                                      Memphis TN–MS–AR Area, found at 40                      this action, whichever is earlier, the                 1999);
                                                      CFR part 81, from nonattainment to                      transportation partners will need to                      • Are not economically significant
                                                      attainment for the 2008 8-hour ozone                    demonstrate conformity to the new NOX                  regulatory actions based on health or
                                                      NAAQS. Approval of Tennessee’s                          and VOC MVEBs pursuant to 40 CFR                       safety risks subject to Executive Order
                                                      associated SIP revision would also                      93.104(e)(3).                                          13045 (62 FR 19885, April 23, 1997);
                                                      incorporate a plan for maintaining the                     If finalized, approval of the                          • Are not significant regulatory
                                                      2008 8-hour ozone NAAQS in the                          redesignation request would change the                 actions subject to Executive Order
                                                      Tennessee portion of the Area through                   official designation of Shelby County,                 13211 (66 FR 28355, May 22, 2001);
                                                      2027 and a section 182(a)(1) base year                  Tennessee in the Tennessee portion of                     • Are not subject to requirements of
                                                      emissions inventory into the Tennessee                  the Memphis TN–MS–AR Area for the                      section 12(d) of the National
                                                      SIP for the Area. The maintenance plan                  2008 8-hour ozone NAAQS from                           Technology Transfer and Advancement
                                                      establishes NOX and VOC MVEBs for                       nonattainment to attainment, as found                  Act of 1995 (15 U.S.C. 272 note) because
                                                      2027 for the Tennessee portion of the                   at 40 CFR part 81.                                     application of those requirements would
                                                      Area and includes contingency                           X. Statutory and Executive Order                       be inconsistent with the CAA; and
                                                      measures to remedy any future                           Reviews                                                   • Will not have disproportionate
                                                      violations of the 2008 8-hour ozone                                                                            human health or environmental effects
                                                      NAAQS and procedures for evaluation                        Under the CAA, redesignation of an
                                                                                                                                                                     under Executive Order 12898 (59 FR
                                                      of potential violations. Additionally,                  area to attainment and the
                                                                                                                                                                     7629, February 16, 1994).
                                                      EPA is notifying the public of the status               accompanying approval of a
                                                                                                                                                                        The SIP is not approved to apply on
                                                      of EPA’s adequacy determination for the                 maintenance plan under section
                                                                                                                                                                     any Indian reservation land or in any
                                                      newly-established NOX and VOC                           107(d)(3)(E) are actions that affect the
                                                                                                                                                                     other area where EPA or an Indian tribe
                                                      MVEBs for 2027 for the Tennessee                        status of a geographical area and do not
                                                                                                                                                                     has demonstrated that a tribe has
                                                      portion of the Area.                                    impose any additional regulatory
                                                                                                                                                                     jurisdiction. In those areas of Indian
                                                                                                              requirements on sources beyond those
                                                      IX. Proposed Actions                                                                                           country, the rule does not have tribal
                                                                                                              imposed by state law. A redesignation to
                                                                                                                                                                     implications as specified by Executive
                                                        EPA is proposing to take four separate                attainment does not in and of itself
                                                                                                                                                                     Order 13175 (65 FR 67249, November 9,
                                                      but related actions regarding the                       create any new requirements, but rather
                                                                                                                                                                     2000), nor will it impose substantial
                                                      redesignation request and associated SIP                results in the applicability of
                                                                                                                                                                     direct costs on tribal governments or
                                                      revision for the Tennessee portion of the               requirements contained in the CAA for
                                                                                                                                                                     preempt tribal law.
                                                      Memphis TN–MS–AR Area for the 2008                      areas that have been redesignated to
                                                      8-hour ozone NAAQS. First, EPA is                       attainment. Moreover, the Administrator                List of Subjects
                                                      proposing to approve Tennessee’s                        is required to approve a SIP submission
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                                                                                                                                                                     40 CFR Part 52
                                                      section 182(a)(1) base year emissions                   that complies with the provisions of the
                                                      inventory for the 2008 8-hour ozone                     Act and applicable Federal regulations.                  Environmental protection, Air
                                                      standard for the Tennessee portion of                   See 42 U.S.C. 7410(k); 40 CFR 52.02(a).                pollution control, Carbon monoxide,
                                                      the Area into the SIP.                                  Thus, in reviewing SIP submissions,                    Incorporation by reference,
                                                        Second, EPA is proposing to                           EPA’s role is to approve state choices,                Intergovernmental relations, Lead,
                                                      determine that the Memphis, TN–MS–                      provided that they meet the criteria of                Nitrogen dioxide, Ozone, Particulate
                                                      AR Area has attained the 2008 8-hour                    the CAA. Accordingly, these proposed                   matter, Reporting and recordkeeping
                                                      ozone NAAQS based on complete,                          actions merely propose to approve state                requirements, Sulfur oxides, Volatile
                                                      quality-assured and certified monitoring                law as meeting Federal requirements                    organic compounds.


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

                                                      40 CFR Part 81                                          HSB, HRSA, 5600 Fishers Lane, Mail                        Given these comments, HHS is
                                                        Environmental protection, Air                         Stop 08W05A, Rockville, MD 20857, or                   considering whether any of these
                                                      pollution control, National parks,                      by telephone at 301–594–4353.                          alternatives or other alternatives not
                                                      Wilderness areas.                                       SUPPLEMENTARY INFORMATION: On June                     raised by the commenters, alone or in
                                                                                                              17, 2015, the Department of Health and                 combination, would be more
                                                         Authority: 42 U.S.C. 7401 et seq.                                                                           appropriate than the penny pricing
                                                                                                              Human Services (HHS) published a
                                                        Dated: April 8, 2016.                                 proposed rule in the Federal Register                  proposal and whether to revise the
                                                      Heather McTeer Toney,                                   (80 FR 34583) entitled, ‘‘340B Drug                    proposed regulatory text in 42 CFR
                                                      Regional Administrator, Region 4.                       Pricing Program Ceiling Price and                      10.10(b). As the NPRM did not indicate
                                                      [FR Doc. 2016–08796 Filed 4–18–16; 8:45 am]             Manufacturer Civil Monetary Penalties                  that alternatives to the penny pricing
                                                      BILLING CODE 6560–50–P                                  Regulation’’ that would set forth the                  proposal would be considered, and
                                                                                                              calculation of the ceiling price and                   given the number of comments on this
                                                                                                              application of civil monetary penalties                issue, HHS is reopening the comment
                                                                                                              for section 340B of the Public Health                  period specifically to invite comments
                                                      DEPARTMENT OF HEALTH AND                                                                                       on whether we should adopt an
                                                      HUMAN SERVICES                                          Service Act (PHSA), which is referred to
                                                                                                              as the ‘‘340B Drug Pricing Program’’ or                alternative policy to penny pricing. By
                                                      42 CFR Part 10                                          the ‘‘340B Program.’’ In light of the                  reopening the comment period as to this
                                                                                                              comments received, HHS is reopening                    specific issue, all parties will have an
                                                      RIN 0906–AA89                                                                                                  opportunity to express their views on
                                                                                                              the comment period for 30 days for the
                                                                                                              purpose of inviting public comments on                 penny pricing and other alternatives
                                                      340B Drug Pricing Program Ceiling                                                                              prior to finalization of the proposed
                                                      Price and Manufacturer Civil Monetary                   several specific areas, summarized
                                                                                                                                                                     rule.
                                                      Penalties Regulation; Reopening of                      below. Comments may be submitted on
                                                      Comment Period                                          any aspect of the proposed rule, not just              New Drug Price Estimation
                                                                                                              those areas specifically addressed                       In the NPRM, HHS proposed that
                                                      AGENCY: Health Resources and Services                   below. Commenters do not need to
                                                      Administration (HRSA), HHS.                                                                                    manufacturers estimate the ceiling price
                                                                                                              resubmit comments previously                           for a new covered outpatient drug as of
                                                      ACTION: Notice; reopening of comment                    submitted, as all previous comments are                the date the drug is first available for
                                                      period.                                                 currently under review and will be                     sale, and provide HRSA an estimated
                                                                                                              considered prior to the finalization of                ceiling price for each of the first three
                                                      SUMMARY:   This document reopens the                    the proposed rule.
                                                      comment period for the June 17, 2015,                                                                          quarters the drug is available for sale.
                                                      proposed rule entitled ‘‘340B Drug                      Ceiling Price for a Covered Outpatient                 HHS also proposed that, beginning with
                                                      Pricing Program Ceiling Price and                       Drug Exception                                         the fourth quarter the drug is available
                                                      Manufacturer Civil Monetary Penalties                                                                          for sale, the manufacturer must
                                                                                                                 In the June 17, 2015, notice of                     calculate the ceiling price as described
                                                      Regulation.’’ The comment period for                    proposed rulemaking (80 FR 34583),
                                                      the proposed rule, which ended on                                                                              in proposed 42 CFR 10.10(a). Under the
                                                                                                              HHS proposed that when the                             proposed rule, the actual ceiling price
                                                      August 17, 2015, is reopened for 30                     calculation of the 340B ceiling price
                                                      days.                                                                                                          for the first three quarters must also be
                                                                                                              resulted in an amount less than $0.01,                 calculated and manufacturers would be
                                                      DATES: The comment period for the                       the ceiling price would be $0.01 per                   required to provide a refund or credit to
                                                      proposed rule published on June 17,                     unit of measure (hereinafter, penny                    any covered entity which purchased the
                                                      2015 (80 FR 34583), is reopened and                     pricing). In the notice of proposed                    covered outpatient drug at a price
                                                      ends on May 19, 2016.                                   rulemaking (NPRM), we recognized that                  greater than the calculated ceiling price.
                                                      ADDRESSES: In commenting, please refer                  it was not reasonable for a manufacturer               HHS proposed that any refunds or
                                                      to the Regulatory Information Number                    to set the ceiling price at $0.00 per unit             credits owed to a covered entity must be
                                                      (RIN) 0906–AA89, by any of the                          of measure. HHS received a number of                   provided by the end of the fourth
                                                      following methods. Please submit your                   comments supporting and opposing the                   quarter. HHS received numerous
                                                      comments in only one of these ways to                   penny pricing proposal.                                comments supporting and opposing the
                                                      minimize the receipt of duplicate                          Commenters suggested a number of                    various components of its proposal on
                                                      submissions. The first is the preferred                 alternatives to penny pricing, including:              new drug price estimation.
                                                      method.                                                 The federal ceiling price, the most                      Several commenters supported a
                                                        • Federal eRulemaking Portal: http://                 recent positive ceiling price from                     specific methodology for calculating
                                                      www.regulations.gov. Follow                             previous quarters, and nominal sales                   new drug prices, which included setting
                                                      instructions for submitting comments.                   price. Some commenters stated that the                 the price of the new covered outpatient
                                                      This is the preferred method for the                    federal ceiling price, which is the basis              drug as wholesale acquisition cost
                                                      submission of comments.                                 for prices paid by certain federal                     (WAC) minus the applicable rebate
                                                        • Email: 340BCMPNPRM@hrsa.gov.                        government programs, would be a viable                 percentage (i.e., 23.1 percent for most
                                                      Include 0906–AA89 in the subject line                   alternative. Other commenters suggested                single-source and innovator drugs, 17.1
                                                      of the message.                                         that charging a ceiling price from                     percent for clotting factors and drugs
                                                        • Mail: Office of Pharmacy Affairs                    previous quarters in which the ceiling                 approved exclusively for pediatric
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      (OPA), Healthcare Systems Bureau                        price was greater than $0.00 would be                  indications, and 13 percent for generics
                                                      (HSB), Health Resources and Services                    reasonable. Finally, several commenters                and OTCs). Commenters argued that this
                                                      Administration (HRSA), 5600 Fishers                     suggested that nominal pricing, which is               price would eliminate the need to
                                                      Lane, Mail Stop 08W05A, Rockville, MD                   a term used in the Medicaid Drug                       estimate the price for the first three
                                                      20857.                                                  Rebate Program, would be more                          quarters and would result in a
                                                        All submitted comments will be                        appropriate. Other commenters                          reasonable ceiling price. We are seeking
                                                      available to the public in their entirety.              suggested that manufacturers should be                 comment on this specific methodology
                                                      FOR FURTHER INFORMATION CONTACT:                        able to utilize any other reasonable                   for the estimation of a new covered
                                                      CAPT Krista Pedley, Director, OPA,                      alternative.                                           outpatient drug pricing and at which


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Document Created: 2016-04-19 00:15:41
Document Modified: 2016-04-19 00:15:41
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received on or before May 19, 2016.
ContactJane Spann, Air Regulatory Management Section, Air Planning and Implementation Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Ms. Spann can be reached by phone at (404) 562-9029 or via electronic mail at [email protected]
FR Citation81 FR 22948 
CFR Citation40 CFR 52
40 CFR 81
CFR AssociatedEnvironmental Protection; Air Pollution Control; Carbon Monoxide; Incorporation by Reference; Intergovernmental Relations; Lead; Nitrogen Dioxide; Ozone; Particulate Matter; Reporting and Recordkeeping Requirements; Sulfur Oxides; Volatile Organic Compounds; National Parks and Wilderness Areas

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