82_FR_3241 82 FR 3234 - Air Plan Approval and Air Quality Designation; KY; Redesignation of the Kentucky Portion of the Louisville 1997 Annual PM2.5

82 FR 3234 - Air Plan Approval and Air Quality Designation; KY; Redesignation of the Kentucky Portion of the Louisville 1997 Annual PM2.5

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 7 (January 11, 2017)

Page Range3234-3250
FR Document2017-00324

On March 5, 2012, the Commonwealth of Kentucky, through the Kentucky Energy and Environment Cabinet, Division for Air Quality (DAQ), submitted a request for the Environmental Protection Agency (EPA) to redesignate the portion of Kentucky that is within the bi- state Louisville, KY-IN fine particulate matter (PM<INF>2.5</INF>) nonattainment area (hereafter referred to as the ``bi-state Louisville Area'' or ``Area'') to attainment for the 1997 Annual PM<INF>2.5</INF> national ambient air quality standards (NAAQS) and to approve a state implementation plan (SIP) revision containing a maintenance plan for the Area. EPA is proposing to approve the Commonwealth's plan for maintaining the 1997 Annual PM<INF>2.5</INF> NAAQS in the Area, including the motor vehicle emission budgets (MVEBs) for nitrogen oxide (NO<INF>X</INF>) and PM<INF>2.5</INF> for the years 2015 and 2025 for the bi-state Louisville Area, and incorporate it into the SIP, and to redesignate the Kentucky portion of the Area to attainment for the 1997 Annual PM<INF>2.5</INF> NAAQS. EPA is also notifying the public of the status of EPA's adequacy determination for the MVEBs for the bi-state Louisville Area.

Federal Register, Volume 82 Issue 7 (Wednesday, January 11, 2017)
[Federal Register Volume 82, Number 7 (Wednesday, January 11, 2017)]
[Proposed Rules]
[Pages 3234-3250]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00324]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

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


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

[[Page 3235]]


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

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

FOR FURTHER INFORMATION CONTACT: Madolyn Sanchez of the Air Regulatory 
Management Section, in the Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 
30303-8960. Madolyn Sanchez may be reached by phone at (404) 562-9644, 
or via electronic mail at [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 request?
VI. What is the effect of the January 4, 2013, D.C. Circuit decision 
regarding PM2.5 implementation under Subpart 4?
VII. What is EPA's analysis of the proposed NOX and 
PM2.5 MVEBs for the bi-state Louisville area?
VIII. What is the status of EPA's adequacy determination for the 
proposed NOX and PM2.5 MVEBs for 2015 and 2025 
for the bi-state Louisville area?
IX. What is the effect of EPA's proposed actions?
X. Proposed Actions
XI. Statutory and Executive Order Reviews

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

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

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

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

[[Page 3236]]

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

III. What are the criteria for redesignation?

    The CAA provides the requirements for redesignating a nonattainment 
area to attainment. Specifically, section 107(d)(3)(E) of the CAA 
allows for redesignation provided the following criteria are met: (1) 
The Administrator determines that the area has attained the applicable 
NAAQS; (2) the Administrator has fully approved the applicable 
implementation plan for the area under section 110(k); (3) the 
Administrator determines that the improvement in air quality is due to 
permanent and enforceable reductions in emissions resulting from 
implementation of the applicable SIP and applicable federal air 
pollutant control regulations, and other permanent and enforceable 
reductions; (4) the Administrator has fully approved a maintenance plan 
for the area as meeting the requirements of section 175A; and (5) the 
state containing such area has met all requirements applicable to the 
area under section 110 and part D of title I of the CAA.
    On April 16, 1992, EPA provided guidance on redesignation in the 
General Preamble for the Implementation of title I of the CAA 
Amendments of 1990 (57 FR 13498), and the Agency supplemented this 
guidance on April 28, 1992 (57 FR 18070). EPA has provided further 
guidance on processing redesignation requests in the following 
documents:
    1. ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (hereinafter referred to as the 
``Calcagni Memorandum'');
    2. ``State Implementation Plan (SIP) Actions Submitted in Response 
to Clean Air Act (CAA) Deadlines,'' Memorandum from John Calcagni, 
Director, Air Quality Management Division, October 28, 1992; and
    3. ``Part D New Source Review (Part D NSR) Requirements for Areas 
Requesting Redesignation to Attainment,'' Memorandum from Mary D. 
Nichols, Assistant Administrator for Air and Radiation, October 14, 
1994.

IV. Why is EPA proposing these actions?

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

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

[[Page 3237]]

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

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

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

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

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

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

[[Page 3238]]

provisions for establishment and operation of appropriate procedures 
needed to monitor ambient air quality; implementation of a source 
permit program; provisions for the implementation of part C 
requirements (Prevention of Significant Deterioration (PSD)) and 
provisions for the implementation of part D requirements (NSR permit 
programs); provisions for air pollution modeling; and provisions for 
public and local agency participation in planning and emission control 
rule development.
    Section 110(a)(2)(D) requires that SIPs contain certain measures to 
prevent sources in a state from significantly contributing to air 
quality problems in another state. To implement this provision, EPA has 
required certain states to establish programs to address the interstate 
transport of air pollutants. The section 110(a)(2)(D) requirements for 
a state are not linked with a particular nonattainment area's 
designation and classification in that state. EPA believes that the 
requirements linked with a particular nonattainment area's designation 
and classifications are the relevant measures to evaluate in reviewing 
a redesignation request. The transport SIP submittal requirements, 
where applicable, continue to apply to a state regardless of the 
designation of any one particular area in the state. Thus, EPA does not 
believe that the CAA's interstate transport requirements should be 
construed to be applicable requirements for purposes of redesignation.
    In addition, EPA believes that other section 110 elements that are 
neither connected with nonattainment plan submissions nor linked with 
an area's attainment status are not applicable requirements for 
purposes of redesignation. The area will still be subject to these 
requirements after the area is redesignated. The section 110 and part D 
requirements which are linked with a particular area's designation and 
classification are the relevant measures to evaluate in reviewing a 
redesignation request. This approach is consistent with EPA's existing 
policy on applicability (i.e., for redesignations) of conformity and 
oxygenated fuels requirements, as well as with section 184 ozone 
transport requirements. See Reading, Pennsylvania, proposed and final 
rulemakings (61 FR 53174-53176, October 10, 1996), (62 FR 24826, May 7, 
1997); Cleveland-Akron-Loraine, Ohio, final rulemaking (61 FR 20458, 
May 7, 1996); and Tampa, Florida, final rulemaking at (60 FR 62748, 
December 7, 1995). See also the discussion on this issue in the 
Cincinnati, Ohio, redesignation (65 FR 37890, June 19, 2000), and in 
the Pittsburgh, Pennsylvania, redesignation (66 FR 50399, October 19, 
2001).
    EPA has reviewed Kentucky's SIP and has preliminarily concluded 
that it meets the general SIP requirements under section 110(a)(2) of 
the CAA to the extent they are applicable for purposes of 
redesignation. EPA has previously approved provisions of Kentucky's SIP 
addressing CAA section 110(a)(2) requirements including provisions 
addressing the 1997 Annual PM2.5 NAAQS. See 77 FR 60307 
(October 3, 2012) and 79 FR 26143 (May 7, 2014). These requirements 
are, however, statewide requirements that are not linked to the 
PM2.5 nonattainment status of the Area. Therefore, EPA 
believes these SIP elements are not applicable for purposes of this 
redesignation.
    Title I, part D, subpart 1 applicable SIP requirements. EPA 
proposes to determine that the Kentucky SIP meets the applicable SIP 
requirements for the Kentucky portion of the Area for purposes of 
redesignation under part D of the CAA. Subpart 1 of part D, comprised 
of sections 172-179B of the CAA, sets forth the basic nonattainment 
requirements applicable to all nonattainment areas. All areas that were 
designated nonattainment for the 1997 Annual PM2.5 NAAQS 
were designated under subpart 1 of the CAA. For purposes of evaluating 
this redesignation request, the applicable part D, subpart 1 SIP 
requirements are contained in sections 172(c)(1)-(9) and in section 
176. A thorough discussion of the requirements contained in sections 
172 and 176 can be found in the General Preamble for Implementation of 
title I. See 57 FR 13498 (April 16, 1992). Section VI of this proposed 
rulemaking notice discusses the relationship between this proposed 
redesignation action and subpart 4 of part D.
    Subpart 1, section 172 Requirements. Under section 172, states with 
nonattainment areas must submit plans providing for timely attainment 
and meeting a variety of other requirements. EPA's longstanding 
interpretation of the nonattainment planning requirements of section 
172 is that once an area is attaining the NAAQS, those requirements are 
not ``applicable'' for purposes of CAA section 107(d)(3)(E)(ii) and 
therefore need not be approved into the SIP before EPA can redesignate 
the area. In the 1992 General Preamble for Implementation of Title I, 
EPA set forth its interpretation of applicable requirements for 
purposes of evaluating redesignation requests when an area is attaining 
a standard. See 57 FR 13498, 13564 (April 16, 1992). EPA noted that the 
requirements for reasonable further progress (RFP) and other measures 
designed to provide for attainment do not apply in evaluating 
redesignation requests because those nonattainment planning 
requirements ``have no meaning'' for an area that has already attained 
the standard. Id. This interpretation was also set forth in the 
Calcagni Memorandum. EPA's understanding of section 172 also forms the 
basis of its Clean Data Policy, which suspends a state's obligation to 
submit most of the attainment planning requirements that would 
otherwise apply, including an attainment demonstration and planning 
SIPs to provide for RFP, reasonably available control measures (RACM), 
and contingency measures under section 172(c)(9).
    On March 9, 2011, EPA determined that the bi-state Louisville Area 
had attained the 1997 annual PM2.5 NAAQS based upon ambient 
air monitoring data for the 2007-2009 period, which showed that the 
area had monitored attainment of the annual PM2.5 NAAQS. As 
a result of this determination and in accordance with EPA's Clean Data 
Policy, the requirements for the area to submit an attainment 
demonstration and associated RACM, a RFP plan, contingency measures, 
and other planning SIP revision related to attainment of the standards 
are suspended for so long as the area continues to attain the 1997 
annual PM2.5 NAAQS.\8\ Therefore, Kentucky withdrew the 
aforementioned PM2.5 attainment demonstration SIP revision 
except for the portion addressing emissions inventory requirements 
under section 172(c)(3). However, as discussed below, the United States 
Court of Appeals for the Sixth Circuit (Sixth Circuit) recently issued 
an opinion in Sierra Club v. EPA, 793 F.3d 656 (6th Cir. 2015), that is 
inconsistent with EPA's longstanding interpretation regarding section 
107(d)(3)(E)(ii) and requires that subpart 1 RACM be approved into the 
SIP before EPA can redesignate an area subject to section 172(c)(1).
---------------------------------------------------------------------------

    \8\ At the time of EPA's March 9, 2011 action, EPA's Clean Data 
Policy for PM2.5 was codified at 40 CFR 51.1004(c). This 
regulation was promulgated as part of the 1997 PM2.5 
NAAQS implementation rule that was subsequently challenged and 
remanded in NRDC v. EPA, 706 F.3d 428 (D.C. Cir. 2013), as discussed 
in Section VI of this notice. However, the Clean Data Policy portion 
of the implementation rule was not at issue in that case. In the 
PM2.5 SIP Requirements Rule, EPA updated the Clean Data 
Policy for the PM2.5 NAAQS and moved it to 40 CFR 
51.1015.
---------------------------------------------------------------------------

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

[[Page 3239]]

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

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

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

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

    Because attainment has been reached in the Area, the section 
172(c)(2) requirement that nonattainment plans contain provisions 
promoting reasonable further progress toward attainment is not relevant 
for purposes of redesignation. In addition, because the Area has 
attained the standard and is no longer subject to a RFP requirement, 
the requirement to submit the section 172(c)(9) contingency measures is 
not applicable for purposes of redesignation. Section 172(c)(6) 
requires the SIP to contain control measures necessary to provide for 
attainment of the NAAQS. Because attainment has been reached, no 
additional measures are needed to provide for attainment.
    Section 172(c)(3) requires submission and approval of a 
comprehensive, accurate, and current inventory of actual emissions. On 
August 2, 2012 (77 FR 45956), EPA approved Kentucky's 2002 base-year 
emissions inventory for the bi-state Louisville Area.
    Section 172(c)(4) requires the identification and quantification of 
allowable emissions for major new and modified stationary sources to be 
allowed in an area, and section 172(c)(5) requires source permits for 
the construction and operation of new and modified major stationary 
sources anywhere in the nonattainment area. EPA has determined that, 
since PSD requirements will apply after redesignation, areas being 
redesignated need not comply with the requirement that a NSR program be 
approved prior to redesignation, provided that the area demonstrates 
maintenance of the NAAQS without part D NSR. A more detailed rationale 
for this view is described in a memorandum from Mary Nichols, Assistant 
Administrator for Air and Radiation, dated October 14, 1994, entitled, 
``Part D New Source Review Requirements for Areas Requesting 
Redesignation to Attainment.'' The Commonwealth has demonstrated that 
the Kentucky portion of the bi-state Louisville Area will be able to 
maintain the NAAQS without part D NSR in effect, and therefore Kentucky 
need not have fully approved part D NSR programs prior to approval of 
the redesignation request. Kentucky's PSD program will become effective 
in the Kentucky portion of the bi-state Louisville Area upon 
redesignation to attainment.
    Section 172(c)(7) requires the SIP to meet the applicable 
provisions of section 110(a)(2). As noted above, EPA believes that the 
Kentucky SIP meets the requirements of section 110(a)(2) applicable for 
purposes of redesignation.
    176 Conformity Requirements. Section 176(c) of the CAA requires 
states to establish criteria and procedures to ensure that federally-
supported or funded projects conform to the air quality planning goals 
in the applicable SIP. The requirement to determine conformity applies 
to transportation plans, programs and projects that are developed, 
funded or approved under title 23 of the United States Code (U.S.C.) 
and the Federal Transit Act (transportation conformity) as well as to 
all other federally-supported or funded projects (general conformity). 
State transportation conformity SIP revisions must be consistent with 
federal conformity regulations relating to consultation, enforcement 
and enforceability that EPA promulgated pursuant to its authority under 
the CAA.
    EPA believes that it is reasonable to interpret the conformity SIP 
requirements \11\ as not applying for purposes of evaluating the 
redesignation request under section 107(d) because state conformity 
rules are still required after redesignation and federal conformity 
rules apply where state rules have not been approved. See Wall v. EPA, 
265 F.3d 426 (6th Cir. 2001) (upholding this interpretation); See 60 FR 
62748 (December 7, 1995). Nonetheless, Kentucky has an approved 
conformity SIP for the bi-state Louisville Area. See 75 FR 20780 (April 
21, 2010).
---------------------------------------------------------------------------

    \11\ CAA section 176(c)(4)(E) requires states to submit 
revisions to their SIPs to reflect certain Federal criteria and 
procedures for determining transportation conformity. Transportation 
conformity SIPs are different from the MVEBs that are established in 
control strategy SIPs and maintenance plans.
---------------------------------------------------------------------------

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

[[Page 3240]]

Memorandum at p. 3; Southwestern Pennsylvania Growth Alliance v. 
Browner, 144 F.3d 984 (6th Cir. 1998); Wall, 265 F.3d 426) plus any 
additional measures it may approve in conjunction with a redesignation 
action. See 68 FR 25426 (May 12, 2003) and citations therein. Following 
passage of the CAA of 1970, Kentucky has adopted and submitted, and EPA 
has fully approved at various times, provisions addressing the various 
SIP elements applicable for the 1997 Annual PM2.5 NAAQS in 
the Kentucky portion of the bi-state Louisville Area (e.g., 77 FR 
60307, October 3, 2012).
    As indicated above, EPA believes that the section 110 elements not 
connected with nonattainment plan submissions and not linked to an 
area's nonattainment status are not applicable requirements for 
purposes of redesignation.

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

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

[[Page 3241]]

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

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

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

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

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

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

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

[[Page 3242]]

(CAA section 107(d)(3)(E)(iv)). In conjunction with its request to 
redesignate the Kentucky portion of the bi-state Louisville Area to 
attainment for the 1997 Annual PM2.5 NAAQS, Kentucky 
submitted a SIP revision to provide for the maintenance of the 1997 
Annual PM2.5 NAAQS for at least 10 years after the effective 
date of redesignation to attainment. EPA believes that this maintenance 
plan meets the requirements for approval under section 175A of the CAA 
for the reasons discussed below.
a. What is required in a maintenance plan?
    Section 175A of the CAA sets forth the elements of a maintenance 
plan for areas seeking redesignation from nonattainment to attainment. 
Under section 175A, the plan must demonstrate continued attainment of 
the applicable NAAQS for at least 10 years after the Administrator 
approves a redesignation to attainment. Eight years after the 
redesignation, the Commonwealth of Kentucky must submit a revised 
maintenance plan demonstrating that attainment will continue to be 
maintained for the 10 years following the initial 10-year period. To 
address the possibility of future NAAQS violations, the maintenance 
plan must contain such contingency measures, as EPA deems necessary, to 
assure prompt correction of any future 1997 Annual PM2.5 
NAAQS violations. The Calcagni Memorandum provides further guidance on 
the content of a maintenance plan, explaining that a maintenance plan 
should address five requirements: The attainment emissions inventory, 
maintenance demonstration, monitoring, verification of continued 
attainment, and a contingency plan. As is discussed below, EPA finds 
that the Commonwealth's maintenance plan includes all the necessary 
components and is thus proposing to approve it as a revision to the 
Kentucky SIP.

b. Attainment Emissions Inventory

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

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

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

c. Maintenance Demonstration

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

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

[[Page 3243]]



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


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


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


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


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


[[Page 3244]]


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


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


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

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

d. Monitoring Network

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

e. Verification of Continued Attainment

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

[[Page 3245]]

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

f. Contingency Measures in the Maintenance Plan

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

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

a. Background

    As discussed in section II of this action, the D.C. Circuit 
remanded the 1997 PM2.5 Implementation Rule to EPA on 
January 4, 2013, in Natural Resources Defense Council v. EPA, 706 F.3d 
428. The court found that EPA erred in implementing the 1997 
PM2.5 NAAQS pursuant to the general implementation 
provisions of subpart 1 of part D of Title I of the CAA, rather than 
the particulate matter-specific provisions of subpart 4 of part D of 
Title I.
    For the purposes of evaluating Kentucky's redesignation request for 
its portion of the bi-state Louisville Area, to the extent that 
implementation under subpart 4 would impose additional requirements for 
areas designated nonattainment, EPA believes that those requirements 
are not ``applicable'' for the purposes of CAA section 107(d)(3)(E), 
and thus EPA is not required to consider subpart 4 requirements with 
respect to the redesignation of the Kentucky portion of the bi-state 
Louisville Area. Under its longstanding interpretation of the CAA, EPA 
has interpreted section 107(d)(3)(E) to mean, as a threshold matter, 
that the part D provisions which are ``applicable'' and which must be 
approved in order for EPA to redesignate an area include only those 
which came due prior to a state's submittal of a complete redesignation 
request. See ``Procedures for Processing Requests to Redesignate Areas 
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (Calcagni memorandum). See also 
``State Implementation Plan (SIP) Requirements for Areas Submitting 
Requests for the plan and Redesignation to Attainment of the Ozone and 
Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) on 
or after November 15, 1992,'' Memorandum from Michael Shapiro, Acting 
Assistant Administrator, Air and Radiation, September 17, 1993 (Shapiro 
memorandum); Final Redesignation of Detroit-Ann Arbor, (60 FR 12459, 
12465-66, March 7, 1995); Final Redesignation of St. Louis, Missouri, 
(68 FR 25418, 25424-27, May 12, 2003); Sierra Club v. EPA, 375 F.3d 
537, 541 (7th Cir. 2004) (upholding EPA's redesignation rulemaking 
applying this interpretation and expressly rejecting Sierra Club's view 
that the meaning of ``applicable'' under the statute is ``whatever 
should have been in the plan at the time of attainment rather than 
whatever actually was in already implemented or due at the time of 
attainment'').\16\ In this case, at the time that Kentucky submitted 
its redesignation request on March 5, 2012, requirements under subpart 
4 were not due, and indeed, were not yet known to apply.
---------------------------------------------------------------------------

    \16\ Applicable requirements of the CAA that come due subsequent 
to the area's submittal of a complete redesignation request remain 
applicable until a redesignation is approved, but are not required 
as a prerequisite to redesignation. Section 175A(c) of the CAA.

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

[[Page 3246]]

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

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

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

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

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

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

    The permit requirements of subpart 4, as contained in section 
189(a)(1)(A), refer to and apply the subpart 1 permit provisions 
requirements of sections 172 and 173 to PM10, without adding 
to them. Consequently, EPA believes that section 189(a)(1)(A) does not 
itself impose for redesignation purposes any additional requirements 
for moderate areas beyond those contained in subpart 1.\20\ In any 
event, in the context of redesignation, EPA has long relied on the 
interpretation that a fully approved nonattainment new source review 
program is not considered an applicable requirement for redesignation, 
provided the area can maintain the standard with a PSD program after 
redesignation. A detailed rationale for this view is described in a 
memorandum from Mary Nichols, Assistant Administrator for Air and 
Radiation, dated October 14, 1994, entitled ``Part D New Source Review 
Requirements for Areas Requesting Redesignation to Attainment.'' See 
also rulemakings for Detroit, Michigan (60 FR 12467-12468, March 7, 
1995); Cleveland-Akron-Lorain, Ohio (61 FR 20458, 20469-20470, May 7, 
1996); Louisville, Kentucky (66 FR 53665, October 23, 2001); and Grand 
Rapids, Michigan (61 FR 31834-31837, June 21, 1996).
---------------------------------------------------------------------------

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

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

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

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

c. Subpart 4 and Control of PM2.5 Precursors

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

[[Page 3247]]

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

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

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

f. Maintenance Plan and Evaluation of Precursors

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

[[Page 3248]]

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

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

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

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

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

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

[[Page 3249]]

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

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

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

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

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

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

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

    EPA's proposed actions establish the basis upon which EPA may take 
final action on the issues being proposed for approval. Approval of 
Kentucky's redesignation request would change the legal designation of 
Bullitt and Jefferson Counties in Kentucky for the 1997 Annual 
PM2.5 NAAQS, found at 40 CFR part 81, from nonattainment to 
attainment. Approval of Kentucky's associated SIP revision would also 
incorporate a plan for maintaining the 1997 Annual PM2.5 
NAAQS in the Area through 2025 into the Kentucky SIP. This maintenance 
plan includes contingency measures to remedy any future violations of 
the 1997 Annual PM2.5 NAAQS and procedures for evaluation of 
potential violations. The maintenance plan also includes NOX

[[Page 3250]]

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

X. Proposed Actions

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

XI. Statutory and Executive Order Reviews

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

List of Subjects

40 CFR Part 52

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

40 CFR Part 81

    Environmental protection, Air pollution control.

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

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



                                                  3234                  Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                  docket for this rulemaking action and                   V. Statutory and Executive Order                       located in the state, and EPA notes that
                                                  online at www.regulations.gov.                          Reviews                                                it will not impose substantial direct
                                                     The 14 affected units at the seven                      Under the CAA, the Administrator is                 costs on tribal governments or preempt
                                                  plants that are subject to COMAR                        required to approve a SIP submission                   tribal law.
                                                  26.11.38 have all installed controls as a               that complies with the provisions of the               List of Subjects in 40 CFR Part 52
                                                  result of programs requiring NOX                        CAA and applicable federal regulations.
                                                  reductions by previous regulatory                       42 U.S.C. 7410(k); 40 CFR 52.02(a).                      Environmental protection, Air
                                                  requirements such as the NOX SIP Call                   Thus, in reviewing SIP submissions,                    pollution control, Incorporation by
                                                  (65 FR 57356, October 27, 1998), the                    EPA’s role is to approve state choices,                reference, Nitrogen dioxide, Ozone,
                                                  Clean Air Interstate Rule (CAIR) (70 FR                 provided that they meet the criteria of                Reporting and recordkeeping
                                                  25162, May 12, 2005), the Cross State                   the CAA. Accordingly, this action                      requirements.
                                                  Air Pollution Rule (CSAPR) (76 FR                       merely approves state law as meeting                     Authority: 42 U.S.C. 7401 et seq.
                                                  48208, August 8, 2011), and Maryland’s                  federal requirements and does not                        Dated: December 16, 2016.
                                                  Healthy Air Act (HAA). All of the                       impose additional requirements beyond                  Shawn M. Garvin,
                                                  affected units have either selective                    those imposed by state law. For that
                                                  catalytic reduction (SCR), selective non-                                                                      Regional Administrator, Region III.
                                                                                                          reason, this proposed action:
                                                  catalytic reduction (SNCR), or selective                                                                       [FR Doc. 2017–00309 Filed 1–10–17; 8:45 am]
                                                                                                             • Is not a ‘‘significant regulatory
                                                  alternative catalytic reduction (SACR).                 action’’ subject to review by the Office               BILLING CODE 6560–50–P

                                                     EPA finds that the submittal                         of Management and Budget under
                                                  strengthens the Maryland SIP. COMAR                     Executive Orders 12866 (58 FR 51735,
                                                  26.11.38 imposes NOX emissions limits                                                                          ENVIRONMENTAL PROTECTION
                                                                                                          October 4, 1993) and 13563 (76 FR 3821,                AGENCY
                                                  on units subject to the regulation which                January 21, 2011);
                                                  are expected to lower NOX emissions                        • does not impose an information                    40 CFR Parts 52 and 81
                                                  within the State. The NOX emissions                     collection burden under the provisions
                                                  limits plus the operation and                           of the Paperwork Reduction Act (44
                                                  optimization of the existing NOX                                                                               [EPA–R04–OAR–2012–0773; FRL–9957–92–
                                                                                                          U.S.C. 3501 et seq.);                                  Region 4]
                                                  controls whenever the units are in                         • is certified as not having a
                                                  operation will help Maryland’s                          significant economic impact on a                       Air Plan Approval and Air Quality
                                                  attainment and maintenance of the 2008                  substantial number of small entities                   Designation; KY; Redesignation of the
                                                  ozone NAAQS. EPA’s detailed analysis                    under the Regulatory Flexibility Act (5                Kentucky Portion of the Louisville 1997
                                                  of the Maryland submittal can be found                  U.S.C. 601 et seq.);                                   Annual PM2.5 Nonattainment Area to
                                                  in the TSD developed in support of this                    • does not contain any unfunded                     Attainment
                                                  proposed rulemaking action, and can be                  mandate or significantly or uniquely
                                                  found in the docket for this rulemaking                 affect small governments, as described                 AGENCY:  Environmental Protection
                                                  action and at www.regulations.gov.                      in the Unfunded Mandates Reform Act                    Agency (EPA).
                                                  III. Proposed Action                                    of 1995 (Pub. L. 104–4);                               ACTION: Proposed rule.
                                                                                                             • does not have federalism
                                                    EPA is proposing to approve the                       implications as specified in Executive                 SUMMARY:    On March 5, 2012, the
                                                  November 20, 2015 Maryland SIP                          Order 13132 (64 FR 43255, August 10,                   Commonwealth of Kentucky, through
                                                  submittal which seeks to include                        1999);                                                 the Kentucky Energy and Environment
                                                  regulation COMAR 26.11.38, Control of                      • is not an economically significant                Cabinet, Division for Air Quality (DAQ),
                                                  Nitrogen Oxides Emissions from Coal-                    regulatory action based on health or                   submitted a request for the
                                                  Fired Electric Generating Units, in the                 safety risks subject to Executive Order                Environmental Protection Agency (EPA)
                                                  Maryland SIP as a SIP strengthening                     13045 (62 FR 19885, April 23, 1997);                   to redesignate the portion of Kentucky
                                                  measure in accordance with CAA                             • is not a significant regulatory action            that is within the bi-state Louisville,
                                                  section 110. EPA is soliciting public                   subject to Executive Order 13211 (66 FR                KY–IN fine particulate matter (PM2.5)
                                                  comments on the issues discussed in                     28355, May 22, 2001);                                  nonattainment area (hereafter referred to
                                                  this document. These comments will be                      • is not subject to requirements of                 as the ‘‘bi-state Louisville Area’’ or
                                                  considered before taking final action.                  Section 12(d) of the National                          ‘‘Area’’) to attainment for the 1997
                                                                                                          Technology Transfer and Advancement                    Annual PM2.5 national ambient air
                                                  IV. Incorporation by Reference
                                                                                                          Act of 1995 (15 U.S.C. 272 note) because               quality standards (NAAQS) and to
                                                    In this proposed rule, EPA is                         application of those requirements would                approve a state implementation plan
                                                  proposing to include in a final EPA rule                be inconsistent with the CAA; and                      (SIP) revision containing a maintenance
                                                  regulatory text that includes                              • does not provide EPA with the                     plan for the Area. EPA is proposing to
                                                  incorporation by reference. In                          discretionary authority to address, as                 approve the Commonwealth’s plan for
                                                  accordance with requirements of 1 CFR                   appropriate, disproportionate human                    maintaining the 1997 Annual PM2.5
                                                  51.5, EPA is proposing to incorporate by                health or environmental effects, using                 NAAQS in the Area, including the
                                                  reference Maryland regulation COMAR                     practicable and legally permissible                    motor vehicle emission budgets
                                                  26.11.28—Control of Nitrogen Oxides                     methods, under Executive Order 12898                   (MVEBs) for nitrogen oxide (NOX) and
                                                  Emissions from Coal-Fired Electric                      (59 FR 7629, February 16, 1994).                       PM2.5 for the years 2015 and 2025 for
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  Generating Units. EPA has made, and                        In addition, this action proposing to               the bi-state Louisville Area, and
                                                  will continue to make, these materials                  approve Maryland’s regulation to                       incorporate it into the SIP, and to
                                                  generally available through http://                     control NOX emissions from coal-fired                  redesignate the Kentucky portion of the
                                                  www.regulations.gov and/or at the EPA                   electric generating units does not have                Area to attainment for the 1997 Annual
                                                  Region III Office (please contact the                   tribal implications as specified by                    PM2.5 NAAQS. EPA is also notifying the
                                                  person identified in the FOR FURTHER                    Executive Order 13175 (65 FR 67249,                    public of the status of EPA’s adequacy
                                                  INFORMATION CONTACT section of this                     November 9, 2000), because the SIP is                  determination for the MVEBs for the bi-
                                                  preamble for more information).                         not approved to apply in Indian country                state Louisville Area.


                                             VerDate Sep<11>2014   19:15 Jan 10, 2017   Jkt 241001   PO 00000   Frm 00024   Fmt 4702   Sfmt 4702   E:\FR\FM\11JAP1.SGM   11JAP1


                                                                        Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                      3235

                                                  DATES: Comments must be received on                     I. What are the actions EPA is                         MVEBs for the bi-state Louisville Area
                                                  or before February 10, 2017.                            proposing to take?                                     began on January 24, 2012, with EPA’s
                                                                                                             EPA is proposing to take the following              posting of the availability on EPA’s
                                                  ADDRESSES:   Submit your comments,
                                                                                                          two separate but related actions: (1) To               Adequacy Web site (http://
                                                  identified by Docket ID No. EPA–R04–                                                                           www.epa.gov/otaq/stateresources/
                                                  OAR–2012–0773 at http://                                approve Kentucky’s plan for
                                                                                                          maintaining the 1997 Annual PM2.5                      transconf/currsips.htm). The Adequacy
                                                  www.regulations.gov. Follow the online                                                                         comment period for these MVEBs closed
                                                  instructions for submitting comments.                   NAAQS (maintenance plan), including
                                                                                                          the associated MVEBs for the bi-state                  on February 23, 2012. No comments,
                                                  Once submitted, comments cannot be                                                                             adverse or otherwise, were received
                                                  edited or removed from Regulations.gov.                 Louisville Area, and incorporate it into
                                                                                                          the Kentucky SIP, and (2) to redesignate               through the Adequacy process. Please
                                                  EPA may publish any comment received                                                                           see section VIII of this notice of
                                                  to its public docket. Do not submit                     the Kentucky portion of the bi-state
                                                                                                          Louisville Area to attainment for the                  proposed rulemaking for further
                                                  electronically any information you                                                                             explanation of this process and for more
                                                  consider to be Confidential Business                    1997 Annual PM2.5 NAAQS. EPA is also
                                                                                                          notifying the public of the status of                  details on the MVEBs.
                                                  Information (CBI) or other information                                                                            In summary, this proposed
                                                  whose disclosure is restricted by statute.              EPA’s adequacy determination for the
                                                                                                          MVEBs for the bi-state Louisville Area.                rulemaking is in response to Kentucky’s
                                                  Multimedia submissions (audio, video,                                                                          March 5, 2012, redesignation request
                                                  etc.) must be accompanied by a written                  The bi-state Louisville Area consists of
                                                                                                          Bullitt and Jefferson Counties in                      and associated SIP submission that
                                                  comment. The written comment is                                                                                addresses the specific issues
                                                  considered the official comment and                     Kentucky as well as Clark and Floyd
                                                                                                          Counties and a portion of Jefferson                    summarized above and the necessary
                                                  should include discussion of all points                                                                        elements for redesignation described in
                                                  you wish to make. EPA will generally                    County (Madison Township) in
                                                                                                          Indiana.1 These proposed actions are                   section 107(d)(3)(E) of the CAA for the
                                                  not consider comments or comment                                                                               redesignation of the Kentucky portion of
                                                  contents located outside of the primary                 summarized below and described in
                                                                                                          greater detail throughout this notice of               the bi-state Louisville Area to
                                                  submission (i.e., on the web, cloud, or                                                                        attainment for the 1997 Annual PM2.5
                                                  other file sharing system). For                         proposed rulemaking.
                                                                                                             EPA is proposing to approve                         NAAQS.
                                                  additional submission methods, the full
                                                                                                          Kentucky’s maintenance plan for its                    II. What is the background for EPA’s
                                                  EPA public comment policy,
                                                                                                          portion of the bi-state Louisville Area as             proposed actions?
                                                  information about CBI or multimedia
                                                                                                          meeting the requirements of section
                                                  submissions, and general guidance on                                                                              Fine particle pollution can be emitted
                                                                                                          175A (such approval being one of the
                                                  making effective comments, please visit                                                                        directly or formed secondarily in the
                                                                                                          Clean Air Act (CAA or Act) criteria for
                                                  http://www2.epa.gov/dockets/                                                                                   atmosphere.2 The main precursors of
                                                                                                          redesignation to attainment status). The
                                                  commenting-epa-dockets.                                                                                        secondary PM2.5 are sulfur dioxide
                                                                                                          maintenance plan is designed to help
                                                                                                                                                                 (SO2), NOX, ammonia, and volatile
                                                  FOR FURTHER INFORMATION CONTACT:                        keep the bi-state Louisville Area in
                                                                                                                                                                 organic compounds (VOCs). See 72 FR
                                                  Madolyn Sanchez of the Air Regulatory                   attainment for the 1997 Annual PM2.5
                                                                                                                                                                 20586, 20589 (April 25, 2007). Sulfates
                                                  Management Section, in the Air                          NAAQS through 2025. As explained in
                                                                                                                                                                 are a type of secondary particle formed
                                                  Planning and Implementation Branch,                     section V below, EPA is also proposing
                                                                                                                                                                 from SO2 emissions from power plants
                                                  Air, Pesticides and Toxics Management                   to determine that attainment can be
                                                                                                                                                                 and industrial facilities. Nitrates,
                                                  Division, U.S. Environmental Protection                 maintained through 2027. The
                                                                                                                                                                 another common type of secondary
                                                  Agency, Region 4, 61 Forsyth Street                     maintenance plan includes 2015 and
                                                                                                                                                                 particle, are formed from NOX emissions
                                                  SW., Atlanta, Georgia 30303–8960.                       2025 MVEBs for NOx and direct PM2.5
                                                                                                                                                                 from power plants, automobiles, and
                                                  Madolyn Sanchez may be reached by                       for the bi-state Louisville Area. EPA is
                                                                                                                                                                 other combustion sources.
                                                  phone at (404) 562–9644, or via                         proposing to approve these MVEBs and                      On July 18, 1997, EPA promulgated
                                                  electronic mail at sanchez.madolyn@                     incorporate them into the Kentucky SIP.                the first air quality standards for PM2.5.
                                                  epa.gov.                                                   EPA also proposes to determine that
                                                                                                                                                                 EPA promulgated an annual standard at
                                                                                                          the Kentucky portion of the bi-state
                                                                                                                                                                 a level of 15.0 micrograms per cubic
                                                  SUPPLEMENTARY INFORMATION:                              Louisville Area has met the
                                                                                                                                                                 meter (mg/m3), based on a 3-year average
                                                                                                          requirements for redesignation under
                                                  Table of Contents                                                                                              of annual mean PM2.5 concentrations. In
                                                                                                          section 107(d)(3)(E) of the CAA.
                                                                                                          Accordingly, in this action, EPA is                    the same rulemaking, EPA promulgated
                                                  I. What are the actions EPA is proposing to
                                                       take?                                              proposing to approve a request to                      a 24-hour standard of 65 mg/m3, based
                                                  II. What is the background for EPA’s                    change the legal designation of Bullitt                   2 Fine particulate matter (PM ) refers to airborne
                                                       proposed actions?                                  and Jefferson Counties within the                                                       2.5
                                                                                                                                                                 particles less than or equal to 2.5 micrometers in
                                                  III. What are the criteria for redesignation?           Kentucky portion of the bi-state                       diameter. Although treated as a single pollutant,
                                                  IV. Why is EPA proposing these actions?                 Louisville Area, as found at 40 CFR part               fine particles come from many different sources and
                                                  V. What is EPA’s analysis of the request?               81, from nonattainment to attainment                   are composed of many different compounds. In the
                                                  VI. What is the effect of the January 4, 2013,          for the 1997 Annual PM2.5 NAAQS.                       bi-state Louisville Area, one of the largest
                                                       D.C. Circuit decision regarding PM2.5                                                                     components of PM2.5 is sulfate, which is formed
                                                                                                             EPA is also notifying the public of the             through various chemical reactions from the
                                                       implementation under Subpart 4?
                                                                                                          status of EPA’s adequacy process for the               precursor SO2. The other major component of PM2.5
                                                  VII. What is EPA’s analysis of the proposed
                                                       NOX and PM2.5 MVEBs for the bi-state               2015 and 2025 MVEBs for NOX and                        is organic carbon, which originates predominantly
                                                                                                                                                                 from biogenic emission sources. Nitrate, which is
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                                                       Louisville area?                                   PM2.5 for the bi-state Louisville Area.
                                                                                                                                                                 formed from the precursor NOX, is also a
                                                  VIII. What is the status of EPA’s adequacy              The Adequacy comment period for the                    component of PM2.5. Crustal materials from
                                                       determination for the proposed NOX and                                                                    windblown dust and elemental carbon from
                                                       PM2.5 MVEBs for 2015 and 2025 for the                1 In a separate submittal, EPA received the          combustion sources are less significant contributors
                                                       bi-state Louisville area?                          redesignation request and maintenance plan for the     to total PM2.5. VOCs, also precursors for PM, are
                                                                                                          Indiana portion of this Area. On September 9, 2016,    emitted from a variety of sources, including motor
                                                  IX. What is the effect of EPA’s proposed                EPA took final action to determine that the entire     vehicles, chemical plants, refineries, factories,
                                                       actions?                                           bi-state Louisville Area has attained the 1997 PM2.5   consumer and commercial products, and other
                                                  X. Proposed Actions                                     standard and to approve Indiana’s redesignation        industrial sources. VOCs are also emitted by natural
                                                  XI. Statutory and Executive Order Reviews               request and maintenance plan. See 81 FR 62390.         sources such as vegetation.



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                                                  3236                   Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                  on a 3-year average of the 98th                          Particulate Matter Less than 2.5                      a maintenance plan for the area as
                                                  percentile of 24-hour concentrations. On                 Micrometers (PM2.5)’’ (73 FR 28321,                   meeting the requirements of section
                                                  October 17, 2006 (71 FR 61144), EPA                      May 16, 2008) (collectively, ‘‘1997 PM2.5             175A; and (5) the state containing such
                                                  retained the annual average NAAQS at                     Implementation Rules’’) to EPA on                     area has met all requirements applicable
                                                  15.0 mg/m3 but revised the 24-hour                       January 4, 2013, in Natural Resources                 to the area under section 110 and part
                                                  NAAQS to 35 mg/m3, based again on the                    Defense Council v. EPA, 706 F.3d 428                  D of title I of the CAA.
                                                  3-year average of the 98th percentile of                 (D.C. Cir. 2013). The court found that                   On April 16, 1992, EPA provided
                                                  24-hour concentrations.3 Under EPA                       EPA erred in implementing the 1997                    guidance on redesignation in the
                                                  regulations at 40 CFR part 50, the                       PM2.5 NAAQS pursuant to the general                   General Preamble for the
                                                  primary and secondary 1997 Annual                        implementation provisions of subpart 1                Implementation of title I of the CAA
                                                  PM2.5 NAAQS are attained when the                        of part D of title I of the CAA, rather               Amendments of 1990 (57 FR 13498),
                                                  annual arithmetic mean concentration,                    than the particulate matter-specific                  and the Agency supplemented this
                                                  as determined in accordance with 40                      provisions of subpart 4 of part D of title            guidance on April 28, 1992 (57 FR
                                                  CFR part 50, Appendix N, is less than                    I. The effect of the court’s ruling on this           18070). EPA has provided further
                                                  or equal to 15.0 mg/m3 at all relevant                   proposed redesignation action is                      guidance on processing redesignation
                                                  monitoring sites in the subject area                     discussed in detail in section VI of this             requests in the following documents:
                                                  averaged over a 3-year period.                           notice.                                                  1. ‘‘Procedures for Processing
                                                     On January 5, 2005, at 70 FR 944, and                    On July 29, 2016, EPA issued a rule                Requests to Redesignate Areas to
                                                  supplemented on April 14, 2005, at 70                    entitled, ‘‘Fine Particulate Matter                   Attainment,’’ Memorandum from John
                                                  FR 19844, EPA designated the bi-state                    National Ambient Air Quality                          Calcagni, Director, Air Quality
                                                  Louisville Area as nonattainment for the                 Standards: State Implementation Plan                  Management Division, September 4,
                                                  Annual 1997 PM2.5 NAAQS. On                              Requirements’’ (PM2.5 SIP Requirements                1992 (hereinafter referred to as the
                                                  November 13, 2009, at 74 FR 58688,                       Rule) that clarifies how states should                ‘‘Calcagni Memorandum’’);
                                                  EPA promulgated designations for the                     meet the statutory SIP requirements that                 2. ‘‘State Implementation Plan (SIP)
                                                  24-hour PM2.5 standard established in                    apply to areas designated nonattainment               Actions Submitted in Response to Clean
                                                  2006, designating the bi-state Louisville                for any PM2.5 NAAQS under subparts 1                  Air Act (CAA) Deadlines,’’
                                                  Area as attainment for that NAAQS.                       and 4. See 81 FR 58010 (August 24,                    Memorandum from John Calcagni,
                                                  That action clarified that the bi-state                  2016). It does so by establishing                     Director, Air Quality Management
                                                  Louisville Area was classified                           regulatory requirements and providing                 Division, October 28, 1992; and
                                                  unclassifiable/attainment for the 24-                    guidance that is applicable to areas that                3. ‘‘Part D New Source Review (Part
                                                  hour NAAQS promulgated in 1997. EPA                      are currently designated nonattainment                D NSR) Requirements for Areas
                                                  did not promulgate designations for the                  for existing PM2.5 NAAQS and areas that               Requesting Redesignation to
                                                  2006 Annual PM2.5 NAAQS since that                       are designated nonattainment for any                  Attainment,’’ Memorandum from Mary
                                                  NAAQS was essentially identical to the                   PM2.5 NAAQS in the future. In addition,               D. Nichols, Assistant Administrator for
                                                  1997 Annual PM2.5 NAAQS. Therefore,                      the rule responds to the D.C. Circuit’s               Air and Radiation, October 14, 1994.
                                                  the bi-state Louisville Area is designated               remand of the 1997 PM2.5
                                                  nonattainment for the 1997 Annual                        Implementation Rules. As a result, the                IV. Why is EPA proposing these
                                                  PM2.5 NAAQS, and this proposed action                    requirements of the rule also govern                  actions?
                                                  only addresses this designation.                         future actions associated with states’                  On March 5, 2012, Kentucky
                                                     All 1997 PM2.5 NAAQS areas were                       ongoing implementation efforts for the                requested that EPA redesignate the
                                                  designated under subpart 1 of title I,                   1997 and 2006 PM2.5 NAAQS. The rule                   Kentucky portion of the bi-state
                                                  part D, of the CAA. Subpart 1 contains                   also revokes the 1997 primary Annual                  Louisville Area to attainment for the
                                                  the general requirements for                             NAAQS for areas designated as                         1997 Annual PM2.5 NAAQS.4 EPA’s
                                                  nonattainment areas for any pollutant                    attainment for that standard because                  evaluation indicates that the Kentucky
                                                  governed by a NAAQS and is less                          EPA revised the primary annual                        portion of the bi-state Louisville Area
                                                  prescriptive than the other subparts of                  standard in 2012.                                     meets the requirements for
                                                  title I, part D. On April 25, 2007 (72 FR                                                                      redesignation set forth in section
                                                  20586), EPA promulgated its Clean Air                    III. What are the criteria for
                                                                                                                                                                 107(d)(3)(E), including the maintenance
                                                  Fine Particle Implementation Rule,                       redesignation?
                                                                                                                                                                 plan requirements under section 175A
                                                  codified at 40 CFR part 51, subpart Z,                      The CAA provides the requirements                  of the CAA. As a result of these
                                                  in which the Agency provided guidance                    for redesignating a nonattainment area                proposed findings, EPA is proposing to
                                                  for state and tribal plans to implement                  to attainment. Specifically, section                  take the two related actions summarized
                                                  the 1997 PM2.5 NAAQS. The United                         107(d)(3)(E) of the CAA allows for                    in section I of this notice.
                                                  States Court of Appeals for the District                 redesignation provided the following
                                                  of Columbia Circuit (D.C. Circuit)                       criteria are met: (1) The Administrator               V. What is EPA’s analysis of the
                                                  remanded the Clean Air Fine Particle                     determines that the area has attained the             request?
                                                  Implementation Rule and the final rule                   applicable NAAQS; (2) the                               As stated above, in accordance with
                                                  entitled ‘‘Implementation of the New                     Administrator has fully approved the                  the CAA, EPA proposes to approve the
                                                  Source Review (NSR) Program for                          applicable implementation plan for the                1997 Annual PM2.5 NAAQS
                                                                                                           area under section 110(k); (3) the                    maintenance plan, including the
                                                                                                           Administrator determines that the                     associated MVEBs, for the Kentucky
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                                                     3 In response to legal challenges of the annual

                                                  standard promulgated in 2006, the United States          improvement in air quality is due to                  portion of the bi-state Louisville Area
                                                  Court of Appeals for the District of Columbia
                                                  Circuit (D.C. Circuit) remanded that NAAQS to EPA
                                                                                                           permanent and enforceable reductions                  and incorporate it into the Kentucky
                                                  for further consideration. See American Farm             in emissions resulting from
                                                  Bureau Federation and National Pork Producers            implementation of the applicable SIP                    4 For the reasons discussed in footnote 5, below,

                                                  Council, et al. v. EPA, 559 F.3d 512 (D.C. Cir. 2009).   and applicable federal air pollutant                  EPA’s proposed action on Kentucky’s redesignation
                                                  However, given that the 1997 and 2006 Annual                                                                   request was delayed due to a technical systems
                                                  NAAQS are essentially identical, attainment of the
                                                                                                           control regulations, and other                        audit on the PM2.5 laboratory in Kentucky that
                                                  1997 Annual NAAQS would also indicate                    permanent and enforceable reductions;                 invalidated certain Jefferson County monitoring
                                                  attainment of the remanded 2006 Annual NAAQS.            (4) the Administrator has fully approved              data collected in 2012 and 2013.



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                                                                                Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                                                   3237

                                                  SIP, and redesignate the Kentucky                                        the 1997 Annual PM2.5 NAAQS if it                                         generally should have remained at the
                                                  portion of the bi-state Louisville Area to                               meets the standards, as determined in                                     same location for the duration of the
                                                  attainment for the 1997 Annual PM2.5                                     accordance with 40 CFR 50.13 and                                          monitoring period required for
                                                  NAAQS. The five redesignation criteria                                   Appendix N of part 50, based on three                                     demonstrating attainment.
                                                  provided under CAA section                                               complete, consecutive calendar years of                                     On September 9, 2016, EPA
                                                  107(d)(3)(E) are discussed in greater                                    quality-assured air quality monitoring                                    determined that the bi-state Louisville
                                                  detail for the Area in the following                                     data. To attain the 1997 Annual PM2.5                                     Area has attained the 1997 Annual
                                                  paragraphs of this section.                                              NAAQS, the 3-year average of the                                          PM2.5 NAAQS based on 2013–2015
                                                                                                                           annual arithmetic mean concentration,                                     data.5 See 81 FR 62390. In that action,
                                                  Criteria (1)—The Bi-State Louisville
                                                                                                                           as determined in accordance with 40                                       EPA reviewed valid PM2.5 monitoring
                                                  Area Has Attained the 1997 Annual
                                                                                                                           CFR part 50, Appendix N, must be less                                     data from the bi-state Louisville Area for
                                                  PM2.5 NAAQS
                                                                                                                           than or equal to 15.0 mg/m3 at all                                        the 1997 Annual PM2.5 NAAQS from
                                                     For redesignating a nonattainment                                     relevant monitoring sites in the subject                                  2013–2015 and determined that the
                                                  area to attainment, the CAA requires                                     area over a 3-year period. The relevant                                   design value for the Area is less than the
                                                  EPA to determine that the area has                                       data must be collected and quality-                                       standard of 15.0 mg/m3 for that time
                                                  attained the applicable NAAQS (CAA                                       assured in accordance with 40 CFR part                                    period. The PM2.5 design values for
                                                  section 107(d)(3)(E)(i)). For PM2.5, an                                  58 and recorded in the EPA Air Quality                                    monitors with complete data are
                                                  area may be considered to be attaining                                   System (AQS) database. The monitors                                       summarized in Table 1, below.6

                                                      TABLE 1—1997 ANNUAL PM2.5 DESIGN VALUES FOR MONITORS WITH COMPLETE DATA IN THE BI-STATE LOUISVILLE
                                                                                            AREA FOR 2013–2015
                                                                                                                                                                                                                                         2013–2015
                                                                                                                          County                                                                                  Monitoring site       Design value
                                                                                                                                                                                                                                          (μg/m3)

                                                  Clark County, IN ..........................................................................................................................................            180190006                    11.4
                                                                                                                                                                                                                         180190008                     9.3
                                                  Floyd County, IN ..........................................................................................................................................            180431004                    10.0
                                                  Jefferson County, KY ...................................................................................................................................               211110043                    11.3
                                                                                                                                                                                                                         211110051                    11.7
                                                                                                                                                                                                                         211110067                    10.5



                                                    As shown in Table 1 above, the bi-                                     Criteria (2)—Kentucky Has a Fully                                         section 107(d)(3)(E)(v). Further, EPA
                                                  state Louisville Area has a 2013–2015                                    Approved SIP Under Section 110(k) for                                     proposes to determine that the SIP is
                                                  design value of 11.7 mg/m3, which is                                     the Kentucky Portion of the Bi-State                                      fully approved with respect to all
                                                  below the 1997 Annual PM2.5 NAAQS.                                       Louisville Area and Criteria (5)—                                         requirements applicable for purposes of
                                                  For this proposed action, EPA has                                        Kentucky Has Met All Applicable                                           redesignation in accordance with
                                                  reviewed 2016 preliminary monitoring                                     Requirements Under Section 110 and                                        section 107(d)(3)(E)(ii). In making these
                                                  data for the Area and proposes to find                                   Part D of the CAA                                                         determinations, EPA ascertained which
                                                  that the preliminary data does not                                          For redesignating a nonattainment                                      requirements are applicable to the Area
                                                  indicate a violation of the NAAQS.7                                      area to attainment, the CAA requires                                      and, if applicable, that they are fully
                                                  EPA will not take final action to                                        EPA to determine that the state has met                                   approved under section 110(k). SIPs
                                                  approve the redesignation if the 3-year                                  all applicable requirements under                                         must be fully approved only with
                                                  design value exceeds the NAAQS prior                                     section 110 and part D of title I of the                                  respect to requirements that were
                                                                                                                           CAA (CAA section 107(d)(3)(E)(v)) and                                     applicable prior to submittal of the
                                                  to EPA finalizing the redesignation. As
                                                                                                                           that the state has a fully approved SIP                                   complete redesignation request.
                                                  discussed in more detail below,
                                                  Kentucky has committed to continue                                       under section 110(k) for the area (CAA                                    a. The Kentucky Portion of the Bi-State
                                                  monitoring in the Kentucky portion of                                    section 107(d)(3)(E)(ii)). EPA proposes                                   Louisville Area Has Met All Applicable
                                                                                                                           to find that the Commonwealth has met                                     Requirements Under Section 110 and
                                                  the Area in accordance with 40 CFR part
                                                                                                                           all applicable SIP requirements for the                                   Part D of the CAA
                                                  58.
                                                                                                                           Kentucky portion of the Area under
                                                                                                                           section 110 of the CAA (general SIP                                         General SIP requirements. General SIP
                                                                                                                           requirements) for purposes of                                             elements and requirements are
                                                                                                                           redesignation. Additionally, EPA                                          delineated in section 110(a)(2) of title I,
                                                                                                                           proposes to find that the Kentucky SIP                                    part A of the CAA. These requirements
                                                                                                                           satisfies the criterion that it meets                                     include, but are not limited to, the
                                                                                                                           applicable SIP requirements for                                           following: submittal of a SIP that has
                                                                                                                           purposes of redesignation under part D                                    been adopted by the state after
                                                                                                                           of title I of the CAA in accordance with                                  reasonable public notice and hearing;
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                                                     5 EPA made this determination in association                          and a small portion of the monitoring data from                           resulting in a valid design value for the area using
                                                  with the redesignation of the Indiana portion of the                     2013 (a portion of the first quarter). Because there                      2013–2015 data.
                                                  Area. EPA initially proposed to redesignate that                         was not enough data to support an attainment                                6 See 81 FR 62390 for additional information
                                                  portion of the Area to attainment based on                               determination for the Area, EPA could not proceed                         regarding the evaluation of 2013–2015 data for the
                                                  monitoring data from 2009–2011 and preliminary
                                                                                                                           with the redesignation of the bi-state Louisville                         Area.
                                                  data from 2012. However, in August 2013, EPA
                                                  issued results of a technical systems audit on the                       Area. Kentucky began collecting valid data in early                         7 This preliminary data is available at EPA’s air

                                                  PM2.5 laboratory in Kentucky that invalidated the                        2013 (the end of the first quarter) after the                             data Web site: http://aqsdr1.epa.gov/aqsweb/
                                                  Jefferson County monitoring data for all of 2012,                        monitoring audit issues had been addressed,                               aqstmp/airdata/download_files.html#Daily.



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                                                  3238                  Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                  provisions for establishment and                        redesignation (65 FR 37890, June 19,                   13564 (April 16, 1992). EPA noted that
                                                  operation of appropriate procedures                     2000), and in the Pittsburgh,                          the requirements for reasonable further
                                                  needed to monitor ambient air quality;                  Pennsylvania, redesignation (66 FR                     progress (RFP) and other measures
                                                  implementation of a source permit                       50399, October 19, 2001).                              designed to provide for attainment do
                                                  program; provisions for the                                EPA has reviewed Kentucky’s SIP and                 not apply in evaluating redesignation
                                                  implementation of part C requirements                   has preliminarily concluded that it                    requests because those nonattainment
                                                  (Prevention of Significant Deterioration                meets the general SIP requirements                     planning requirements ‘‘have no
                                                  (PSD)) and provisions for the                           under section 110(a)(2) of the CAA to                  meaning’’ for an area that has already
                                                  implementation of part D requirements                   the extent they are applicable for                     attained the standard. Id. This
                                                  (NSR permit programs); provisions for                   purposes of redesignation. EPA has                     interpretation was also set forth in the
                                                  air pollution modeling; and provisions                  previously approved provisions of                      Calcagni Memorandum. EPA’s
                                                  for public and local agency participation               Kentucky’s SIP addressing CAA section                  understanding of section 172 also forms
                                                  in planning and emission control rule                   110(a)(2) requirements including                       the basis of its Clean Data Policy, which
                                                  development.                                            provisions addressing the 1997 Annual                  suspends a state’s obligation to submit
                                                     Section 110(a)(2)(D) requires that SIPs              PM2.5 NAAQS. See 77 FR 60307                           most of the attainment planning
                                                  contain certain measures to prevent                     (October 3, 2012) and 79 FR 26143 (May                 requirements that would otherwise
                                                  sources in a state from significantly                   7, 2014). These requirements are,                      apply, including an attainment
                                                  contributing to air quality problems in                 however, statewide requirements that                   demonstration and planning SIPs to
                                                  another state. To implement this                        are not linked to the PM2.5                            provide for RFP, reasonably available
                                                  provision, EPA has required certain                     nonattainment status of the Area.                      control measures (RACM), and
                                                  states to establish programs to address                 Therefore, EPA believes these SIP                      contingency measures under section
                                                  the interstate transport of air pollutants.             elements are not applicable for purposes               172(c)(9).
                                                  The section 110(a)(2)(D) requirements                   of this redesignation.                                    On March 9, 2011, EPA determined
                                                  for a state are not linked with a                          Title I, part D, subpart 1 applicable               that the bi-state Louisville Area had
                                                  particular nonattainment area’s                         SIP requirements. EPA proposes to                      attained the 1997 annual PM2.5 NAAQS
                                                  designation and classification in that                  determine that the Kentucky SIP meets                  based upon ambient air monitoring data
                                                  state. EPA believes that the                            the applicable SIP requirements for the                for the 2007–2009 period, which
                                                  requirements linked with a particular                   Kentucky portion of the Area for                       showed that the area had monitored
                                                  nonattainment area’s designation and                    purposes of redesignation under part D                 attainment of the annual PM2.5 NAAQS.
                                                  classifications are the relevant measures               of the CAA. Subpart 1 of part D,                       As a result of this determination and in
                                                  to evaluate in reviewing a redesignation                comprised of sections 172–179B of the                  accordance with EPA’s Clean Data
                                                  request. The transport SIP submittal                    CAA, sets forth the basic nonattainment                Policy, the requirements for the area to
                                                  requirements, where applicable,                         requirements applicable to all                         submit an attainment demonstration
                                                  continue to apply to a state regardless of              nonattainment areas. All areas that were               and associated RACM, a RFP plan,
                                                  the designation of any one particular                   designated nonattainment for the 1997                  contingency measures, and other
                                                  area in the state. Thus, EPA does not                   Annual PM2.5 NAAQS were designated                     planning SIP revision related to
                                                  believe that the CAA’s interstate                       under subpart 1 of the CAA. For                        attainment of the standards are
                                                  transport requirements should be                        purposes of evaluating this                            suspended for so long as the area
                                                  construed to be applicable requirements                 redesignation request, the applicable                  continues to attain the 1997 annual
                                                  for purposes of redesignation.                          part D, subpart 1 SIP requirements are                 PM2.5 NAAQS.8 Therefore, Kentucky
                                                     In addition, EPA believes that other                 contained in sections 172(c)(1)–(9) and                withdrew the aforementioned PM2.5
                                                  section 110 elements that are neither                   in section 176. A thorough discussion of               attainment demonstration SIP revision
                                                  connected with nonattainment plan                       the requirements contained in sections                 except for the portion addressing
                                                  submissions nor linked with an area’s                   172 and 176 can be found in the General                emissions inventory requirements under
                                                  attainment status are not applicable                    Preamble for Implementation of title I.                section 172(c)(3). However, as discussed
                                                  requirements for purposes of                            See 57 FR 13498 (April 16, 1992).                      below, the United States Court of
                                                  redesignation. The area will still be                   Section VI of this proposed rulemaking                 Appeals for the Sixth Circuit (Sixth
                                                  subject to these requirements after the                 notice discusses the relationship                      Circuit) recently issued an opinion in
                                                  area is redesignated. The section 110                   between this proposed redesignation                    Sierra Club v. EPA, 793 F.3d 656 (6th
                                                  and part D requirements which are                       action and subpart 4 of part D.                        Cir. 2015), that is inconsistent with
                                                  linked with a particular area’s                            Subpart 1, section 172 Requirements.                EPA’s longstanding interpretation
                                                  designation and classification are the                  Under section 172, states with                         regarding section 107(d)(3)(E)(ii) and
                                                  relevant measures to evaluate in                        nonattainment areas must submit plans                  requires that subpart 1 RACM be
                                                  reviewing a redesignation request. This                 providing for timely attainment and                    approved into the SIP before EPA can
                                                  approach is consistent with EPA’s                       meeting a variety of other requirements.               redesignate an area subject to section
                                                  existing policy on applicability (i.e., for             EPA’s longstanding interpretation of the               172(c)(1).
                                                  redesignations) of conformity and                       nonattainment planning requirements of                    Section 172(c)(1) requires the plans
                                                  oxygenated fuels requirements, as well                  section 172 is that once an area is                    for all nonattainment areas to provide
                                                  as with section 184 ozone transport                     attaining the NAAQS, those
                                                  requirements. See Reading,                              requirements are not ‘‘applicable’’ for                  8 At the time of EPA’s March 9, 2011 action,

                                                  Pennsylvania, proposed and final                        purposes of CAA section 107(d)(3)(E)(ii)               EPA’s Clean Data Policy for PM2.5 was codified at
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                                                  rulemakings (61 FR 53174–53176,                         and therefore need not be approved into                40 CFR 51.1004(c). This regulation was
                                                                                                                                                                 promulgated as part of the 1997 PM2.5 NAAQS
                                                  October 10, 1996), (62 FR 24826, May 7,                 the SIP before EPA can redesignate the                 implementation rule that was subsequently
                                                  1997); Cleveland-Akron-Loraine, Ohio,                   area. In the 1992 General Preamble for                 challenged and remanded in NRDC v. EPA, 706
                                                  final rulemaking (61 FR 20458, May 7,                   Implementation of Title I, EPA set forth               F.3d 428 (D.C. Cir. 2013), as discussed in Section
                                                  1996); and Tampa, Florida, final                        its interpretation of applicable                       VI of this notice. However, the Clean Data Policy
                                                                                                                                                                 portion of the implementation rule was not at issue
                                                  rulemaking at (60 FR 62748, December                    requirements for purposes of evaluating                in that case. In the PM2.5 SIP Requirements Rule,
                                                  7, 1995). See also the discussion on this               redesignation requests when an area is                 EPA updated the Clean Data Policy for the PM2.5
                                                  issue in the Cincinnati, Ohio,                          attaining a standard. See 57 FR 13498,                 NAAQS and moved it to 40 CFR 51.1015.



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                                                                        Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                    3239

                                                  for the implementation of RACM as                       the EPA Region 4 Regional                                 Section 172(c)(7) requires the SIP to
                                                  expeditiously as practicable and to                     Administrator took final action to                     meet the applicable provisions of
                                                  provide for attainment of the NAAQS.                    approve Kentucky’s subpart 1 RACM                      section 110(a)(2). As noted above, EPA
                                                  EPA interprets this requirement to                      determination SIP submission.                          believes that the Kentucky SIP meets the
                                                  impose a duty on all nonattainment                      Publication in the Federal Register is                 requirements of section 110(a)(2)
                                                  areas to consider all available control                 pending.                                               applicable for purposes of
                                                  measures and to adopt and implement                        Because attainment has been reached                 redesignation.
                                                  such measures as are reasonably                         in the Area, the section 172(c)(2)                        176 Conformity Requirements.
                                                  available for implementation in each                    requirement that nonattainment plans                   Section 176(c) of the CAA requires
                                                  area as components of the area’s                        contain provisions promoting                           states to establish criteria and
                                                  attainment demonstration.                               reasonable further progress toward                     procedures to ensure that federally-
                                                     On July 14, 2015, the Sixth Circuit                  attainment is not relevant for purposes                supported or funded projects conform to
                                                  vacated EPA’s redesignation of the                      of redesignation. In addition, because                 the air quality planning goals in the
                                                  Indiana and Ohio portions of the                        the Area has attained the standard and                 applicable SIP. The requirement to
                                                  Cincinnati nonattainment area for the                   is no longer subject to a RFP                          determine conformity applies to
                                                  1997 PM2.5 NAAQS because EPA had                        requirement, the requirement to submit                 transportation plans, programs and
                                                  not approved RACM for that area into                    the section 172(c)(9) contingency                      projects that are developed, funded or
                                                  the Indiana and Ohio SIPs pursuant to                   measures is not applicable for purposes                approved under title 23 of the United
                                                  CAA section 172(c)(1). Sierra Club v.                   of redesignation. Section 172(c)(6)                    States Code (U.S.C.) and the Federal
                                                  EPA, 793 F.3d 656. The Court                            requires the SIP to contain control                    Transit Act (transportation conformity)
                                                  concluded that ‘‘a State seeking                        measures necessary to provide for                      as well as to all other federally-
                                                  redesignation ‘shall provide for the                    attainment of the NAAQS. Because                       supported or funded projects (general
                                                  implementation’ of RACM/RACT                            attainment has been reached, no                        conformity). State transportation
                                                  [reasonably available control                           additional measures are needed to                      conformity SIP revisions must be
                                                  technology], even if those measures are                 provide for attainment.                                consistent with federal conformity
                                                  not strictly necessary to demonstrate                                                                          regulations relating to consultation,
                                                                                                             Section 172(c)(3) requires submission
                                                  attainment with the PM2.5 NAAQS. If                                                                            enforcement and enforceability that EPA
                                                                                                          and approval of a comprehensive,
                                                  the State has not done so, EPA cannot                                                                          promulgated pursuant to its authority
                                                                                                          accurate, and current inventory of actual
                                                  ‘fully approve’ the area’s SIP, and                                                                            under the CAA.
                                                                                                          emissions. On August 2, 2012 (77 FR
                                                  redesignation to attainment status is                                                                             EPA believes that it is reasonable to
                                                                                                          45956), EPA approved Kentucky’s 2002
                                                  improper.’’ Sierra Club, 793 F.3d at 670.                                                                      interpret the conformity SIP
                                                                                                          base-year emissions inventory for the bi-
                                                  EPA is bound by the Sixth Circuit’s                                                                            requirements 11 as not applying for
                                                                                                          state Louisville Area.
                                                  decision within the Court’s                                                                                    purposes of evaluating the redesignation
                                                  jurisdiction.9                                             Section 172(c)(4) requires the
                                                                                                                                                                 request under section 107(d) because
                                                     On August 9, 2016, Kentucky                          identification and quantification of
                                                                                                                                                                 state conformity rules are still required
                                                  submitted a SIP revision containing a                   allowable emissions for major new and
                                                                                                                                                                 after redesignation and federal
                                                  RACM determination for the Kentucky                     modified stationary sources to be
                                                                                                                                                                 conformity rules apply where state rules
                                                  portion of the Louisville Area, in                      allowed in an area, and section 172(c)(5)
                                                                                                                                                                 have not been approved. See Wall v.
                                                  accordance with CAA 172(c)(1) and the                   requires source permits for the
                                                                                                                                                                 EPA, 265 F.3d 426 (6th Cir. 2001)
                                                  Sixth Circuit decision in Sierra Club, for              construction and operation of new and
                                                                                                                                                                 (upholding this interpretation); See 60
                                                  incorporation into the Kentucky SIP in                  modified major stationary sources
                                                                                                                                                                 FR 62748 (December 7, 1995).
                                                  support of the Commonwealth’s                           anywhere in the nonattainment area.
                                                                                                                                                                 Nonetheless, Kentucky has an approved
                                                  redesignation request. Although EPA                     EPA has determined that, since PSD
                                                                                                                                                                 conformity SIP for the bi-state Louisville
                                                  continues to believe that subpart 1                     requirements will apply after
                                                                                                                                                                 Area. See 75 FR 20780 (April 21, 2010).
                                                  RACM is not an applicable requirement                   redesignation, areas being redesignated
                                                                                                                                                                    For these reasons, EPA proposes to
                                                  under section 107(d)(3)(E) for an area                  need not comply with the requirement
                                                                                                                                                                 find that Kentucky has satisfied all
                                                  that has already attained the 1997                      that a NSR program be approved prior
                                                                                                                                                                 applicable requirements for purposes of
                                                  Annual PM2.5 NAAQS, on October 21,                      to redesignation, provided that the area
                                                                                                                                                                 redesignation of the Area under section
                                                  2016, EPA proposed to approve                           demonstrates maintenance of the
                                                                                                                                                                 110 and part D of the CAA.
                                                  Kentucky’s SIP revision to incorporate                  NAAQS without part D NSR. A more
                                                  the subpart 1 RACM determination for                    detailed rationale for this view is                    b. The Kentucky Portion of the Area Has
                                                  the Kentucky portion of the Area into                   described in a memorandum from Mary                    a Fully Approved Applicable SIP Under
                                                  the SIP.10 See 81 FR 72755. EPA did not                 Nichols, Assistant Administrator for Air               Section 110(k) of the CAA
                                                  receive any adverse comments on the                     and Radiation, dated October 14, 1994,                    EPA has fully approved the applicable
                                                  proposal, and on December 15, 2016,                     entitled, ‘‘Part D New Source Review                   Kentucky SIP for the Kentucky portion
                                                                                                          Requirements for Areas Requesting                      of the bi-state Louisville Area for the
                                                    9 Kentucky, Michigan, Ohio, and Tennessee are         Redesignation to Attainment.’’ The                     1997 Annual PM2.5 nonattainment area
                                                  located within the Sixth Circuit’s jurisdiction.        Commonwealth has demonstrated that
                                                    10 The EPA Region 4 Regional Administrator
                                                                                                                                                                 under section 110(k) of the CAA for all
                                                                                                          the Kentucky portion of the bi-state                   requirements applicable for purposes of
                                                  signed a memorandum on July 20, 2015, seeking
                                                  concurrence from the Director of EPA’s Air Quality      Louisville Area will be able to maintain               redesignation. EPA may rely on prior
                                                                                                          the NAAQS without part D NSR in
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                                                  Policy Division (AQPD) in the Office of Air Quality                                                            SIP approvals in approving a
                                                  Planning and Standards to act inconsistent with         effect, and therefore Kentucky need not                redesignation request (see Calcagni
                                                  EPA’s interpretation of CAA sections 107(d)(3)(E)       have fully approved part D NSR
                                                  and 172(c)(1) when taking action on pending and
                                                  future redesignation requests in Kentucky and           programs prior to approval of the                         11 CAA section 176(c)(4)(E) requires states to

                                                  Tennessee because the Region is bound by the Sixth      redesignation request. Kentucky’s PSD                  submit revisions to their SIPs to reflect certain
                                                  Circuit’s decision in Sierra Club v. EPA. The AQPD      program will become effective in the                   Federal criteria and procedures for determining
                                                  Director issued her concurrence on July 22, 2015.                                                              transportation conformity. Transportation
                                                  This memorandum is not required to satisfy EPA’s
                                                                                                          Kentucky portion of the bi-state                       conformity SIPs are different from the MVEBs that
                                                  regional consistency regulations. See 40 CFR            Louisville Area upon redesignation to                  are established in control strategy SIPs and
                                                  56.5(b)(1); 81 FR 51102 (August 3, 2016).               attainment.                                            maintenance plans.



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                                                  3240                  Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                  Memorandum at p. 3; Southwestern                        sulfur content of gasoline to 30 parts per             500 ppm in 2007 and further reduced
                                                  Pennsylvania Growth Alliance v.                         million (ppm). Most gasoline sold prior                those levels to 15 ppm starting in 2010
                                                  Browner, 144 F.3d 984 (6th Cir. 1998);                  to this had a sulfur content of                        (a 99 percent reduction). This rule also
                                                  Wall, 265 F.3d 426) plus any additional                 approximately 300 ppm. EPA expects                     achieved significant reductions of up to
                                                  measures it may approve in conjunction                  that these standards will reduce NOX                   90 percent for NOX and particulate
                                                  with a redesignation action. See 68 FR                  emissions from vehicles by                             matter emissions nationwide.
                                                  25426 (May 12, 2003) and citations                      approximately 74 percent by 2030,                         NOX SIP Call. On October 27, 1998
                                                  therein. Following passage of the CAA                   translating to nearly 3 million tons                   (63 FR 57356), EPA issued the NOX SIP
                                                  of 1970, Kentucky has adopted and                       annually by 2030.                                      Call requiring the District of Columbia
                                                  submitted, and EPA has fully approved                      Heavy-duty gasoline and diesel                      and 22 states to reduce emissions of
                                                  at various times, provisions addressing                 highway vehicle standards & ultra low-                 NOX, a precursor to ozone and PM2.5
                                                  the various SIP elements applicable for                 sulfur diesel rule. On October 6, 2000                 pollution, and providing a mechanism
                                                  the 1997 Annual PM2.5 NAAQS in the                      (65 FR 59896), EPA promulgated a rule                  (the NOX Budget Trading Program) that
                                                  Kentucky portion of the bi-state                        to reduce NOX and VOC emissions from                   states could use to achieve those
                                                  Louisville Area (e.g., 77 FR 60307,                     heavy-duty gasoline and diesel highway                 reductions. Affected states were
                                                  October 3, 2012).                                       vehicles that began to take effect in                  required to comply with Phase I of the
                                                     As indicated above, EPA believes that                2004. On January 18, 2001 (66 FR 5002),                SIP Call beginning in 2004 and Phase II
                                                  the section 110 elements not connected                  EPA promulgated a second phase of                      beginning in 2007. By the end of 2008,
                                                  with nonattainment plan submissions                     standards and testing procedures which                 ozone season NOX emissions from
                                                  and not linked to an area’s                             began in 2007 to reduce particulate                    sources subject to the NOX SIP Call
                                                  nonattainment status are not applicable                 matter from heavy-duty highway                         dropped by 62 percent from 2000
                                                  requirements for purposes of                            engines and reduced the maximum                        emissions levels. All NOX SIP Call
                                                  redesignation.                                          highway diesel fuel sulfur content from                states, including Kentucky, have SIPs
                                                                                                          500 ppm to 15 ppm. The total program                   that currently satisfy their obligations
                                                  Criteria (3)—The Air Quality
                                                                                                          should achieve a 90 percent reduction                  under the NOX SIP Call, and EPA will
                                                  Improvement in the Bi-State Louisville
                                                                                                          in PM emissions and a 95 percent                       continue to enforce the requirements of
                                                  Area Is Due to Permanent and
                                                                                                          reduction in NOX emissions for new                     the NOX SIP Call.
                                                  Enforceable Reductions in Emissions                                                                               Reciprocating internal combustion
                                                                                                          engines using low-sulfur diesel,
                                                  Resulting From Implementation of the                                                                           engine National Emissions Standards
                                                                                                          compared to existing engines using
                                                  SIP and Applicable Federal Air                                                                                 for Hazardous Air Pollutants (NESHAP).
                                                                                                          higher-content sulfur diesel. EPA
                                                  Pollution Control Regulations and Other                                                                        In 2010, EPA issued rules regulating
                                                                                                          expects that this rule will reduce NOX
                                                  Permanent and Enforceable Reductions                                                                           emissions of air toxics from existing
                                                                                                          emissions by 2.6 million tons by 2030
                                                    For redesignating a nonattainment                     when the heavy-duty vehicle fleet is                   compression ignition (CI) and spark
                                                  area to attainment, the CAA requires                    completely replaced with newer heavy-                  ignition (SI) stationary reciprocating
                                                  EPA to determine that the air quality                   duty vehicles that comply with these                   internal combustion engines (RICE) that
                                                  improvement in the area is due to                       emission standards.                                    meet specific site rating, age, and size
                                                  permanent and enforceable reductions                       Non-road, large spark-ignition                      criteria. With these RICE standards fully
                                                  in emissions resulting from                             engines and recreational engines                       implemented in 2013, EPA estimates
                                                  implementation of the SIP and                           standards. The non-road spark-ignition                 that the CI RICE standards reduce PM2.5
                                                  applicable federal air pollution control                and recreational engine standards,                     emissions from the covered CI engines
                                                  regulations and other permanent and                     effective in July 2003, regulate NOX,                  by approximately 2,800 tons per year
                                                  enforceable reductions (CAA section                     hydrocarbons, and carbon monoxide                      (tpy) and VOC emissions by
                                                  107(d)(3)(E)(iii)). EPA has preliminarily               from groups of previously unregulated                  approximately 27,000 tpy and that the
                                                  determined that Kentucky has                            non-road engines. These engine                         SI RICE standards reduce NOX
                                                  demonstrated that the observed air                      standards apply to large spark-ignition                emissions from the covered SI engines
                                                  quality improvement in the Kentucky                     engines (e.g., forklifts and airport                   by approximately 96,000 tpy.
                                                  portion of the bi-state Louisville Area is              ground service equipment), recreational                   Category 3 marine diesel engine
                                                  due to permanent and enforceable                        vehicles (e.g., off-highway motorcycles                standards. Promulgated in 2010, this
                                                  reductions in emissions resulting from                  and all-terrain-vehicles), and                         rule establishes more stringent exhaust
                                                  implementation of the SIP and federal                   recreational marine diesel engines sold                emission standards for new large marine
                                                  measures.                                               in the United States and imported after                diesel engines with per cylinder
                                                    Federal measures enacted in recent                    the effective date of these standards.                 displacement at or above 30 liters
                                                  years have resulted in permanent                        When all of the non-road spark-ignition                (commonly referred to as Category 3
                                                  emission reductions in particulate                      and recreational engine standards are                  compression-ignition marine engines) as
                                                  matter and its precursors. The federal                  fully implemented, an overall 72                       part of a coordinated strategy to address
                                                  measures that have been implemented                     percent reduction in hydrocarbons, 80                  emissions from all ships that effect U.S.
                                                  include:                                                percent reduction in NOX, and 56                       air quality. Near-term standards for
                                                    Tier 2 vehicle standards and low-                     percent reduction in carbon monoxide                   newly built engines applied beginning
                                                  sulfur gasoline. Implementation of the                  emissions are expected by 2020. These                  in 2011, and long-term standards
                                                  Tier 2 vehicle standards began in 2004,                 controls help reduce ambient                           requiring an 80 percent reduction in
                                                  and as newer, cleaner cars enter the                    concentrations of PM2.5.                               NOX emissions will begin in 2016.
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                                                  national fleet, these standards continue                   Large non-road diesel engine                           Boiler NESHAP. The NESHAP for
                                                  to significantly reduce NOX emissions.                  standards. This rule, which applies to                 industrial, commercial, and institutional
                                                  The standards require all classes of                    diesel engines used in industries such                 boilers is projected to reduce VOC
                                                  passenger vehicles in any                               as construction, agriculture, and mining,              emissions. This NESHAP applies to
                                                  manufacturer’s fleet to meet an average                 was promulgated in 2004 and fully                      boiler and process heaters located at
                                                  standard of 0.07 grams of NOX per mile.                 phased in by 2014. This rule reduced                   major sources of hazardous air
                                                  In addition, starting in January of 2006,               allowable non-road diesel fuel sulfur                  pollutants that burn natural gas, fuel oil,
                                                  the Tier 2 rule reduced the allowable                   levels from approximately 3,000 ppm to                 coal, biomass, refinery gas, or other gas


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                                                                        Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                   3241

                                                  and had a compliance deadline of                        enforceable through implementation of                  significantly impacted by pollution
                                                  January 31, 2016.                                       CSAPR.                                                 transported from other states in both
                                                     Utility Mercury Air Toxics Standards                    Numerous parties filed petitions for                CAIR and CSAPR, and these rules
                                                  (MATS) and New Source Performance                       review of CSAPR in the D.C. Circuit,                   greatly reduced the tons of SO2 and NOX
                                                  Standards (NSPS). The MATS for coal                     and on August 21, 2012, the court                      emission generated in the states upwind
                                                  and oil-fired electric generation units                 issued its ruling, vacating and                        of the area. The air quality modeling
                                                  (EGUs) and the NSPS for fossil-fuel-                    remanding CSAPR to EPA and ordering                    performed for the CSAPR rulemaking
                                                  fired electric utility steam generating                 continued implementation of CAIR.                      identified the following states as having
                                                  units were published on February 16,                    EME Homer City Generation, L.P. v.                     contributed to PM2.5 concentrations in
                                                  2012 (77 FR 9304). The purpose is to                    EPA, 696 F.3d 7, 38 (D.C. Cir. 2012). The              the bi-state Louisville Area: Illinois,
                                                  reduce mercury and other toxic air                      D.C. Circuit’s vacatur of CSAPR was                    Indiana, Kentucky, Michigan, Missouri,
                                                  pollutant emissions from coal and oil-                  reversed by the United States Supreme                  Ohio, Pennsylvania, Tennessee, West
                                                  fired EGUs, 25 megawatts or more, that                  Court on April 29, 2014, and the case                  Virginia and Wisconsin. See 76 FR
                                                  generate electricity for sale and                       was remanded to the D.C. Circuit to                    48208 (August 8, 2011). Even though the
                                                  distribution through the national                       resolve remaining issues in accordance                 first phase of CAIR implementation for
                                                  electric grid to the public. The NSPS has               with the high court’s ruling. EPA v. EME               SO2 did not begin until 2010, many
                                                  revised emission standards for NOX,                     Homer City Generation, L.P., 134 S. Ct.                sources began reducing their emissions
                                                  SO2, and particulate matter (PM) that                   1584 (2014). On remand, the D.C.                       well in advance of the first compliance
                                                  apply to new coal and oil-fired power                   Circuit affirmed CSAPR in most                         deadline because of the incentives
                                                  plants. The MATS compliance date for                    respects, but invalidated without                      offered by CAIR for early compliance
                                                  existing sources was April 16, 2015.                    vacating some of the Phase 2 SO2 and                   with the rule. The emission reductions
                                                     CAIR and CSAPR. In its redesignation                 NOX ozone season CSAPR budgets as to                   in the states upwind of the bi-state
                                                  request and maintenance plan, the                       a number of states. EME Homer City                     Louisville Area achieved by CAIR, and
                                                  Commonwealth identified the Clean Air                   Generation, L.P. v. EPA, 795 F.3d 118                  made permanent by CSAPR, are
                                                  Interstate Rule (CAIR) as a permanent                   (D.C. Cir. 2015) (EME Homer City II).                  unaffected by the D.C. Circuit’s remand
                                                                                                          The CSAPR budgets for Kentucky are                     of CSAPR.13
                                                  and enforceable measure that
                                                                                                          not affected by the Court’s decision. The                 In addition to the above federal
                                                  contributed to attainment in the bi-state
                                                                                                          litigation over CSAPR ultimately                       measures, Kentucky also identified the
                                                  Louisville Area. CAIR created regional
                                                                                                          delayed implementation of that rule for                following State control measures,
                                                  cap-and-trade programs to reduce SO2
                                                                                                          three years, from January 1, 2012, when                incorporated into Kentucky’s SIP, that
                                                  and NOX emissions in 27 eastern states,
                                                                                                          CSAPR’s cap-and-trade programs were                    provide emission reductions in
                                                  including Kentucky, that contributed to
                                                                                                          originally scheduled to replace the CAIR               particulate matter and its precursors:
                                                  downwind nonattainment or interfered
                                                                                                          cap-and-trade programs, to January 1,                     New Process Operations—401 KAR
                                                  with maintenance of the 1997 8-hour
                                                                                                          2015. CSAPR’s Phase 2 budgets were                     59:010. This regulation provides for the
                                                  ozone NAAQS and the 1997 PM2.5
                                                                                                          originally promulgated to begin on                     control of particulate matter emissions
                                                  NAAQS. See 70 FR 25162 (May 12,                         January 1, 2014, and are now scheduled
                                                  2005). EPA approved a revision to                                                                              for affected facilities or sources located
                                                                                                          to begin on January 1, 2017. CSAPR will                in nonattainment areas as well as
                                                  Kentucky’s SIP on October 4, 2007 (72                   continue to operate under the existing
                                                  FR 56623), that addressed the                                                                                  attainment areas.
                                                                                                          emissions budgets until EPA fully                         RACT/RACM—401 KAR 50.012. This
                                                  requirements of CAIR for the purpose of                 addresses the D.C. Circuit’s remand. The
                                                  reducing SO2 and NOX emissions. By                                                                             regulation establishes reasonably
                                                                                                          Court’s decision did not affect
                                                  2008, the beginning of the attainment                                                                          available control technology
                                                                                                          Kentucky’s CSAPR emissions budgets;
                                                  time period identified by Kentucky,                                                                            requirements for all air contaminant
                                                                                                          therefore, CSAPR ensures that the NOX
                                                  CAIR had been promulgated and was                                                                              sources.
                                                                                                          and SO2 emissions reductions
                                                  achieving emission reductions.                                                                                    Open Burning Bans—401 KAR 63:005.
                                                                                                          associated with CAIR and CSAPR
                                                     In 2008 the D.C. Circuit initially                                                                          In 2005, Kentucky revised the open
                                                                                                          throughout Kentucky are permanent and
                                                  vacated CAIR, North Carolina v. EPA,                                                                           burning regulation to prohibit most
                                                                                                          enforceable.12 Although Kentucky
                                                  531 F.3d 896 (D.C. Cir. 2008), but                                                                             types of open burning in PM2.5
                                                                                                          identified CAIR as a measure that
                                                  ultimately remanded the rule to EPA                                                                            nonattainment/maintenance areas
                                                                                                          contributed to permanent and
                                                  without vacatur to preserve the                         enforceable emissions reductions, the                  within Kentucky during the period of
                                                  environmental benefits provided by                      air quality modeling analysis conducted                May-September.
                                                  CAIR, North Carolina v. EPA, 550 F.3d                   for CSAPR demonstrates that the bi-state                  Fugitive Emissions—401 KAR 63:010.
                                                  1176, 1178 (D.C. Cir. 2008). On August                  Louisville Area would be able to attain                This regulation provides for the control
                                                  8, 2011 (76 FR 48208), acting on the                    the 1997 annual PM2.5 NAAQS even in                    of fugitive emissions in the
                                                  D.C. Circuit’s remand, EPA promulgated                  the absence of either CAIR or CSAPR.                   Commonwealth.
                                                  the Cross-State Air Pollution Rule                      See ‘‘Air Quality Modeling Final Rule                  Criteria (4)—The Kentucky Portion of
                                                  (CSAPR) to replace CAIR and thus to                     Technical Support Document,’’ App. B,                  the Bi-State Louisville Area Has a Fully
                                                  address the interstate transport of                     pages B–43, B–45 and B–46. This                        Approved Maintenance Plan Pursuant
                                                  emissions contributing to nonattainment                 modeling is available in the docket for                to Section 175A of the CAA
                                                  and interfering with maintenance of the                 this proposed redesignation action.
                                                  two air quality standards covered by                       To the extent that bi-state Louisville                For redesignating a nonattainment
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                                                  CAIR as well as the 2006 PM2.5 NAAQS.                   relies on CSAPR for maintenance of the                 area to attainment, the CAA requires
                                                  CSAPR requires substantial reductions                   standard, EPA has identified the bi-state              EPA to determine that the area has a
                                                  of SO2 and NOX emissions from EGUs                      Louisville Area as having been                         fully approved maintenance plan
                                                  in 28 states in the Eastern United States.                                                                     pursuant to section 175A of the CAA
                                                  As a general matter, because CSAPR is                     12 CAIR and CSAPR established annual NO and
                                                                                                                                                       X
                                                                                                                                                                   13 The D.C. Circuit in EME Homer City II
                                                  CAIR’s replacement, emissions                           SO2 budgets to address nonattainment and
                                                                                                          interference with maintenance of the PM2.5             remanded the SO2 trading program budgets for four
                                                  reductions associated with CAIR will for                standard, because, as discussed above in Section II,   states, none of which were identified as
                                                  most areas be made permanent and                        NOX and SO2 are two main PM2.5 precursors.             contributing to the bi-state Louisville Area.



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                                                  3242                  Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                  (CAA section 107(d)(3)(E)(iv)). In                      attainment emission inventory year. The                emissions during the maintenance
                                                  conjunction with its request to                         attainment inventory identifies the level              period will not increase over the
                                                  redesignate the Kentucky portion of the                 of emissions in the Area that is                       attainment year inventory. Calcagni
                                                  bi-state Louisville Area to attainment for              sufficient to attain the 1997 Annual                   Memorandum, pp. 9–10.
                                                  the 1997 Annual PM2.5 NAAQS,                            PM2.5 NAAQS. The Commonwealth                             As discussed in detail below,
                                                  Kentucky submitted a SIP revision to                    began development of the attainment                    Kentucky’s maintenance plan
                                                  provide for the maintenance of the 1997                 inventory by first generating a baseline               submission expressly documents that
                                                  Annual PM2.5 NAAQS for at least 10                      emissions inventory for the Area. As                   the Area’s overall emissions inventories
                                                  years after the effective date of                       noted above, the year 2008 was chosen                  will remain well below the attainment
                                                  redesignation to attainment. EPA                        as the base year for developing a                      year inventories through 2025. In
                                                  believes that this maintenance plan                     comprehensive emissions inventory for                  addition, for the reasons set forth below,
                                                  meets the requirements for approval                     direct PM2.5 and the PM2.5 precursors                  EPA believes that the Area will continue
                                                  under section 175A of the CAA for the                   SO2 and NOX. The projected inventory                   to maintain the 1997 Annual PM2.5
                                                  reasons discussed below.                                included with the maintenance plan                     NAAQS through 2027. Thus, if EPA
                                                  a. What is required in a maintenance                    estimates emissions forward to 2015 and                finalizes its proposed approval of the
                                                  plan?                                                   2025, which satisfies the 10-year                      redesignation request and maintenance
                                                                                                          interval required in section 175(A) of                 plan, the approval will be based upon
                                                     Section 175A of the CAA sets forth                   the CAA.                                               this showing, in accordance with
                                                  the elements of a maintenance plan for                                                                         section 175A, and EPA’s analysis
                                                                                                             The emissions inventories are
                                                  areas seeking redesignation from                                                                               described herein, that the
                                                                                                          composed of four major types of
                                                  nonattainment to attainment. Under                                                                             Commonwealth’s maintenance plan
                                                                                                          sources: Point, area, on-road mobile,
                                                  section 175A, the plan must                                                                                    provides for maintenance for at least ten
                                                                                                          and non-road mobile. The attainment
                                                  demonstrate continued attainment of                                                                            years after redesignation.
                                                                                                          and future year emissions inventories
                                                  the applicable NAAQS for at least 10
                                                                                                          were projected by the Visibility                       c. Maintenance Demonstration
                                                  years after the Administrator approves a
                                                                                                          Improvement State and Tribal
                                                  redesignation to attainment. Eight years                                                                         The maintenance plan for the
                                                                                                          Association of the Southeast and the
                                                  after the redesignation, the                                                                                   Kentucky portion of the bi-state
                                                  Commonwealth of Kentucky must                           Lake Michigan Air Directors Consortium
                                                                                                          using the 2005 base year inventory                     Louisville Area includes a maintenance
                                                  submit a revised maintenance plan
                                                                                                          methodology as provided in the                         demonstration that:
                                                  demonstrating that attainment will
                                                                                                          Appendix D of Kentucky’s submittal.                      (i) Shows compliance with and
                                                  continue to be maintained for the 10
                                                  years following the initial 10-year                     The future year emissions inventories                  maintenance of the Annual PM2.5
                                                  period. To address the possibility of                   have been estimated using projected                    standard by providing information to
                                                  future NAAQS violations, the                            rates of growth in population, traffic,                support the demonstration that current
                                                  maintenance plan must contain such                      economic activity, expected control                    and future emissions of SO2, NOX, and
                                                  contingency measures, as EPA deems                      programs, and other parameters. Non-                   PM2.5 remain at or below 2008
                                                  necessary, to assure prompt correction                  road mobile emissions estimates were                   emissions levels.
                                                  of any future 1997 Annual PM2.5                         based on EPA’s non-road mobile model,                    (ii) Uses 2008 as the attainment year
                                                  NAAQS violations. The Calcagni                          with the exception of the railroad                     and includes future emission inventory
                                                  Memorandum provides further guidance                    locomotives, commercial marine, and                    projections for 2015 and 2025.
                                                  on the content of a maintenance plan,                   aircraft. On-road mobile source                          (iii) Identifies an ‘‘out year’’ at least 10
                                                  explaining that a maintenance plan                      emissions were calculated using EPA’s                  years after EPA review and potential
                                                  should address five requirements: The                   MOVES2010 on-road mobile emission                      approval of the maintenance plan. Per
                                                  attainment emissions inventory,                         model.14 The 2008 SO2, NOX, and PM2.5                  40 CFR part 93, NOX and PM2.5 MVEBs
                                                  maintenance demonstration,                              emissions for the Kentucky portion of                  were established for the last year (2025)
                                                  monitoring, verification of continued                   the bi-state Louisville Area and the                   of the maintenance plan. Additionally,
                                                  attainment, and a contingency plan. As                  entire bi-state Louisville Area, as well as            Kentucky chose, through interagency
                                                  is discussed below, EPA finds that the                  the emissions for other years, were                    consultation, to establish NOX and
                                                  Commonwealth’s maintenance plan                         developed consistent with EPA                          PM2.5 MVEBs for 2015 (see section VII
                                                  includes all the necessary components                   guidance and are summarized in Tables                  below).
                                                  and is thus proposing to approve it as                  8 and 9.                                                 (iv) Provides, as shown in Tables 2
                                                  a revision to the Kentucky SIP.                            Section 175A requires a state seeking               through 7 below, the estimated and
                                                                                                          redesignation to attainment to submit a                projected emissions inventories, in tpy,
                                                  b. Attainment Emissions Inventory                       SIP revision to provide for the                        for the Kentucky portion of the
                                                     As discussed above, EPA has                          maintenance of the NAAQS in the Area                   Louisville (Bullitt 15 and Jefferson
                                                  previously determined that the bi-state                 ‘‘for at least 10 years after the                      Counties) Area, for PM2.5, NOX, and
                                                  Louisville Area attained the 1997                       redesignation.’’ EPA has interpreted this              SO2. Kentucky incorporated expected
                                                  Annual PM2.5 NAAQS based on                             as a showing of maintenance ‘‘for a                    CAIR reductions into the
                                                  monitoring data for the 3-year period                   period of ten years following                          Commonwealth’s redesignation request
                                                  from 2007–2009, and then subsequently                   redesignation.’’ Calcagni Memorandum,                  inventories and projections regarding
                                                  based on monitoring data from 2013–                     p. 9. Where the emissions inventory                    NOX and SO2 but did not incorporate
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                                                  2015. In its maintenance plan, the                      method of showing maintenance is                       CAIR reductions into the PM2.5
                                                  Commonwealth selected 2008 as the                       used, the purpose is to show that                      inventory.

                                                    14 MOVES2010 was the approved model at the              15 Based upon an email from John E. Gowins,          values presented in Tables 2, 4, and 6, as well as
                                                  time the Kentucky SIP was submitted. Currently,         Kentucky Division of Air Quality, dated October 31,    projected total emission estimates Tables 8 and 9,
                                                  MOVES2014a is the approved on-road mobile               2012, the Bullitt County 2025 emission inventory       have been changed to reflect the correct values.
                                                  source model.                                           values for the Non-EGU sector were incorrect in the    This email is located in the docket for this proposed
                                                                                                          March 5, 2012, redesignation request submittal. The    action.



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                                                                                 Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                                  3243

                                                    TABLE 2—BULLITT COUNTY, KENTUCKY PM2.5 EMISSION INVENTORY; TOTALS FOR BASE YEAR 2005, ESTIMATED 2008,
                                                                              AND PROJECTED 2015 AND 2025 (TPY)—WITHOUT CAIR

                                                                                                                                                                                2005            2008             2015           2025
                                                                                                       Sector                                                                   Base         Attainment         Interim      Maintenance

                                                  EGU Point ........................................................................................................                   0                   0             0              0
                                                  Non-EGU .........................................................................................................               186.67              259.07        428.02         669.37
                                                  Non-road ..........................................................................................................              42.13               39.86         29.09          12.39
                                                  Area .................................................................................................................          812.93              822.39        855.23         895.91
                                                  On-road ............................................................................................................             84.08               85.40         55.96          27.72

                                                        Total ..........................................................................................................         1125.81          1206.72           1368.3        1605.39


                                                       TABLE 3—JEFFERSON COUNTY, KENTUCKY PM2.5 EMISSION INVENTORY; TOTALS FOR BASE YEAR 2005, ESTIMATED
                                                                           2008, AND PROJECTED 2015 AND 2025 (TPY)—WITHOUT CAIR
                                                                                                                                                                                2005            2008             2015           2025
                                                                                                       Sector                                                                   Base         Attainment         Interim      Maintenance

                                                  EGU Point ........................................................................................................             3,123.24        2,763.06         2,481.90       2,481.90
                                                  Non-EGU .........................................................................................................                604.24          640.00           568.43         479.96
                                                  Non-road ..........................................................................................................              579.53          571.03           212.51         124.16
                                                  Area .................................................................................................................           550.70          496.28           440.65         371.92
                                                  On-road ............................................................................................................             721.30          627.06           339.41         177.60

                                                        Total ..........................................................................................................         5,579.01        5,097.43         4,042.90       3,635.54


                                                     TABLE 4—BULLITT COUNTY, KENTUCKY NOX EMISSION INVENTORY; TOTALS FOR BASE YEAR 2005, ESTIMATED 2008,
                                                                                AND PROJECTED 2015 AND 2025 (TPY)—WITH CAIR

                                                                                                                                                                                2005            2008             2015           2025
                                                                                                       Sector                                                                   Base         Attainment         Interim      Maintenance

                                                  EGU Point ........................................................................................................                    0               0                0              0
                                                  Non-EGU .........................................................................................................                221.70          288.40           444.04         666.38
                                                  Non-road ..........................................................................................................              540.19          502.71           385.51         210.99
                                                  Area .................................................................................................................            29.92            8.72             1.42           1.09
                                                  On-road ............................................................................................................           2,952.07        2,820.80         1,782.71         866.81

                                                        Total ..........................................................................................................         3,743.88        3,620.63         2,613.68        1745.27


                                                   TABLE 5—JEFFERSON COUNTY, KENTUCKY NOX EMISSION INVENTORY; TOTALS FOR BASE YEAR 2005, ESTIMATED 2008,
                                                                              AND PROJECTED 2015 AND 2025 (TPY)—WITH CAIR

                                                                                                                                                                                2005            2008             2015           2025
                                                                                                       Sector                                                                   Base         Attainment         Interim      Maintenance

                                                  EGU Point ........................................................................................................            20,176.48       22,749.14        21,595.85      22,221.35
                                                  Non-EGU .........................................................................................................              1,489.68        1,987.01         1,759.66       1,479.63
                                                  Non-road ..........................................................................................................           10,590.84       11,255.08         9,912.27       8,269.43
                                                  Area .................................................................................................................         1,272.69        1,382.23         1,217.32       1,015.56
                                                  On-road ............................................................................................................          22,241.72       19,094.05        10,259.60       4,935.49

                                                        Total ..........................................................................................................        55,771.41       56,467.51        44,744.70      37,921.46


                                                     TABLE 6—BULLITT COUNTY, KENTUCKY SO2 EMISSION INVENTORY; TOTALS FOR BASE YEAR 2005, ESTIMATED 2008,
                                                                               AND PROJECTED 2015 AND 2025 (TPY)—WITH CAIR

                                                                                                                                                                                2005            2008             2015           2025
                                                                                                       Sector                                                                   Base         Attainment         Interim      Maintenance
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                                                  EGU Point ........................................................................................................                   0                   0             0              0
                                                  Non-EGU .........................................................................................................               365.91              507.16        836.74        1307.58
                                                  Non-road ..........................................................................................................              32.05               14.28          3.29           0.76
                                                  Area .................................................................................................................           94.94               96.47         98.41         100.36
                                                  On-road ............................................................................................................             12.11               13.28         15.01          15.76

                                                        Total ..........................................................................................................          505.01              631.19        953.45        1424.46




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                                                  3244                           Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                   TABLE 7—JEFFERSON COUNTY, KENTUCKY SO2 EMISSION INVENTORY; TOTALS FOR BASE YEAR 2005, ESTIMATED 2008,
                                                                              AND PROJECTED 2015 AND 2025 (TPY)—WITH CAIR

                                                                                                                                                                                    2005                  2008          2015           2025
                                                                                                        Sector                                                                      Base               Attainment      Interim      Maintenance

                                                  EGU Point ........................................................................................................                42,852.96            38,684.02      38,684.02      38,684.02
                                                  Non-EGU .........................................................................................................                  1,894.40             2,080.95       2,080.95       2,080.95
                                                  Non-road ..........................................................................................................                  714.33               778.68         960.48       1,297.16
                                                  Area .................................................................................................................                 0.00                 0.00           0.00           0.00
                                                  On-road ............................................................................................................                  95.26               101.00         102.55         100.43

                                                        Total ..........................................................................................................            45,556.95            41,644.65      41,828.00      42,162.56


                                                   TABLE 8—ACTUAL (2008) AND PROJECTED TOTAL EMISSION ESTIMATES FOR THE KENTUCKY PORTION OF THE BI-STATE
                                                                                           LOUISVILLE AREA (TPY)
                                                                                                                       Year                                                                              PM2.5          NOX            SO2

                                                  2008 .............................................................................................................................................      6,304.15      60,088.14     42,275.84
                                                  2015 .............................................................................................................................................      5,411.20      47,358.38     42,781.45
                                                  2025 .............................................................................................................................................      5,240.93      39,666.73     43,587.02
                                                  Decrease from 2008 to 2025 .......................................................................................................                      1,063.22      20,421.41     ¥1,311.18


                                                      TABLE 9—ACTUAL (2008) AND PROJECTED TOTAL EMISSION ESTIMATES FOR THE ENTIRE BI-STATE LOUISVILLE AREA
                                                                                                    (TPY)
                                                                                                                       Year                                                                              PM2.5          NOX            SO2

                                                  2008 .............................................................................................................................................      7,506.62      97,614.20     151,648.36
                                                  2015 .............................................................................................................................................      6,521.57      70,147.12      77,397.48
                                                  2025 .............................................................................................................................................      6,294.86      58,635.36      76,929.92
                                                  Decrease from 2008 to 2025 .......................................................................................................                      1,211.76      38,978.84      74,718.44



                                                     In situations where local emissions                                      indicate that future emissions in the                                    increase in 2026 and 2027 in an amount
                                                  are the primary contributor to                                              Kentucky portion of the bi-state                                         that results in overall emissions in the
                                                  nonattainment, such as the bi-state                                         Louisville Area are expected to support                                  area exceeding attainment year
                                                  Louisville Area, if the future projected                                    continued maintenance of the 1997                                        inventory levels, EPA expects that the
                                                  emissions in the nonattainment area                                         Annual PM2.5 NAAQS through 2025.                                         bi-state Louisville Area will continue
                                                  remain at or below the baseline                                               A maintenance plan requires the state                                  maintain the 1997 Annual PM2.5
                                                  emissions in the nonattainment area,                                        to show that projected future year                                       NAAQS through at least 2027.
                                                  then the ambient air quality standard                                       emissions will not exceed the level of
                                                  should not be exceeded in the future. As                                    emissions which led the Area to attain                                   d. Monitoring Network
                                                  reflected above in Table 9, future                                          the NAAQS. Kentucky has projected                                           There are currently four monitors in
                                                  emissions of all the relevant pollutants                                    emissions as described previously and                                    Jefferson County measuring PM2.5 in the
                                                  in the bi-state Louisville Area are                                         determined that emissions in the bi-                                     Kentucky portion of the bi-state
                                                  expected to be well below the                                               state Louisville Area will remain below                                  Louisville Area. The Commonwealth of
                                                  ‘‘attainment level’’ emissions in 2008,                                     those in the attainment year inventory                                   Kentucky, through DAQ, has committed
                                                  thus illustrating that the bi-state                                         for the duration of the maintenance                                      to continue operation of the monitors in
                                                  Louisville Area is expected to continue                                     plan.                                                                    the Kentucky portion of the bi-state
                                                  to attain the 1997 PM2.5 NAAQS through                                        While DAQ’s maintenance plan                                           Louisville Area in compliance with 40
                                                  2025 and beyond. Further, even though                                       projects maintenance of the 1997                                         CFR part 58 and have thus addressed
                                                  EPA evaluates maintenance                                                   Annual PM2.5 NAAQS through 2025, as                                      the requirement for monitoring. EPA
                                                  demonstrations on an area-wide basis,                                       noted above, EPA believes that the bi-                                   approved Kentucky’s 2015 monitoring
                                                  EPA finds that projected emissions in                                       state Louisville Area will continue to                                   plan on October 28, 2015.
                                                  only the Kentucky portion of the bi-state                                   maintain the standard through 2027 for
                                                                                                                                                                                                       e. Verification of Continued Attainment
                                                  Louisville Area are also consistent with                                    several reasons: All of the federal
                                                  maintenance of the 1997 PM2.5 NAAQS.                                        regulatory requirements that enabled the                                   The Commonwealth of Kentucky,
                                                  As reflected in Table 8, emissions of                                       Area to attain the NAAQS will continue                                   through DAQ, has the legal authority to
                                                  direct PM2.5 and NOX in the Kentucky                                        to be in effect and enforceable after the                                enforce and implement the
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                                                  portion of the bi-state Louisville Area                                     10-year maintenance period; the most                                     requirements of the Kentucky portion of
                                                  are expected to decrease from 2008 to                                       recent maximum potential annual PM2.5                                    the bi-state Louisville Area 1997 Annual
                                                  2025 by approximately 17 percent and                                        design value (for the period 2013–2015)                                  PM2.5 maintenance plan. This includes
                                                  34 percent, respectively, while                                             for the Area, 11.7 mg/m3, is well below                                  the authority to adopt, implement, and
                                                  emissions of SO2 are expected to                                            the standard of 15.0 mg/m3; and overall                                  enforce any subsequent emissions
                                                  increase by approximately 3 percent.                                        emissions are projected to decline                                       control contingency measures
                                                  Thus, the significant projected                                             significantly through 2025. Because it is                                determined to be necessary to correct
                                                  reductions in direct PM2.5 and NOX                                          unlikely that emissions will suddenly                                    future PM2.5 attainment problems.


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                                                                        Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                     3245

                                                     DAQ will track the progress of the                      • Restriction of certain roads or lanes,            provisions of subpart 4 of part D of Title
                                                  maintenance plan by performing future                   or construction of such lanes for use by               I.
                                                  reviews of triennial emission                           passenger buses or high-occupancy                         For the purposes of evaluating
                                                  inventories for the Kentucky portion of                 vehicles;                                              Kentucky’s redesignation request for its
                                                  the bi-state Louisville Area as required                   • Trip-reduction ordinances;                        portion of the bi-state Louisville Area, to
                                                  in the Air Emissions Reporting Rule                        • Employer-based transportation                     the extent that implementation under
                                                  (AERR). Emissions information will be                   management plans, including                            subpart 4 would impose additional
                                                  compared to the 2008 attainment year                    incentives;                                            requirements for areas designated
                                                  and the 2025 projected maintenance                         • Programs to limit or restrict vehicle             nonattainment, EPA believes that those
                                                  year inventories to assess emission                     use in downtown areas, or other areas                  requirements are not ‘‘applicable’’ for
                                                  trends, as necessary, and to assure                     of emission concentration, particularly                the purposes of CAA section
                                                  continued compliance with the annual                    during periods of peak use;                            107(d)(3)(E), and thus EPA is not
                                                  PM2.5 standard.                                            • Programs for new construction and                 required to consider subpart 4
                                                                                                          major reconstruction of paths or tracks                requirements with respect to the
                                                  f. Contingency Measures in the
                                                                                                          for use by pedestrians or by non-                      redesignation of the Kentucky portion of
                                                  Maintenance Plan
                                                                                                          motorized vehicles when economically                   the bi-state Louisville Area. Under its
                                                     Section 175A of the CAA requires that                feasible and in the public interest;                   longstanding interpretation of the CAA,
                                                  a maintenance plan include such                            • Diesel reduction emissions                        EPA has interpreted section 107(d)(3)(E)
                                                  contingency measures as EPA deems                       strategies, including diesel retrofit                  to mean, as a threshold matter, that the
                                                  necessary to assure that a state will                   programs;                                              part D provisions which are
                                                  promptly correct a violation of the                        • Any other control program that is                 ‘‘applicable’’ and which must be
                                                  NAAQS that occurs after redesignation.                  developed and deemed to be more                        approved in order for EPA to
                                                  The maintenance plan should identify                    advantageous for the Area.                             redesignate an area include only those
                                                  the contingency measures to be adopted,                    In the event that a measured value of               which came due prior to a state’s
                                                  a schedule and procedure for adoption                   the weighted annual arithmetic mean, as                submittal of a complete redesignation
                                                  and implementation, and a time limit                    determined in accordance with 40 CFR                   request. See ‘‘Procedures for Processing
                                                  for action by the Commonwealth. A                       part 50, Appendix N, is 15.5 mg/m3 or                  Requests to Redesignate Areas to
                                                  state should also identify specific                     greater in a single calendar year in any               Attainment,’’ Memorandum from John
                                                  indicators to be used to determine when                 portion of the Area, the Commonwealth
                                                  the contingency measures need to be                                                                            Calcagni, Director, Air Quality
                                                                                                          will evaluate existing controls measures               Management Division, September 4,
                                                  implemented. The maintenance plan                       to determine whether any further
                                                  must include a requirement that a state                                                                        1992 (Calcagni memorandum). See also
                                                                                                          emission reduction measures should be                  ‘‘State Implementation Plan (SIP)
                                                  will implement all measures with                        implemented at that time. In addition to
                                                  respect to control of the pollutant that                                                                       Requirements for Areas Submitting
                                                                                                          the triggers indicated above, Kentucky                 Requests for the plan and Redesignation
                                                  were contained in the SIP before                        will monitor regional emissions through
                                                  redesignation of the area to attainment                                                                        to Attainment of the Ozone and Carbon
                                                                                                          the AERR and compare them to the                       Monoxide (CO) National Ambient Air
                                                  in accordance with section 175A(d).                     projected inventories and the attainment
                                                     In the March 5, 2012, submittal,                                                                            Quality Standards (NAAQS) on or after
                                                                                                          year inventory.                                        November 15, 1992,’’ Memorandum
                                                  Kentucky commits to maintaining the                        EPA preliminarily concludes that the
                                                  existing control measures identified in                                                                        from Michael Shapiro, Acting Assistant
                                                                                                          maintenance plan adequately addresses                  Administrator, Air and Radiation,
                                                  Chapter 5 of its submission (addressing                 the five basic components of a
                                                  section 107(d)(3)(E)(v)) after                                                                                 September 17, 1993 (Shapiro
                                                                                                          maintenance plan: Attainment emission                  memorandum); Final Redesignation of
                                                  redesignation. The contingency plan                     inventory, maintenance demonstration,
                                                  included in the submittal identifies                                                                           Detroit-Ann Arbor, (60 FR 12459,
                                                                                                          monitoring network, verification of                    12465–66, March 7, 1995); Final
                                                  triggers to determine when contingency                  continued attainment, and a
                                                  measures are needed and a process of                                                                           Redesignation of St. Louis, Missouri, (68
                                                                                                          contingency plan. Therefore, EPA                       FR 25418, 25424–27, May 12, 2003);
                                                  developing and implementing                             proposes to find that the maintenance
                                                  appropriate control measures. The                                                                              Sierra Club v. EPA, 375 F.3d 537, 541
                                                                                                          plan SIP revision submitted by the                     (7th Cir. 2004) (upholding EPA’s
                                                  Commonwealth will use actual ambient                    Commonwealth for the Kentucky
                                                  monitoring data to determine whether a                                                                         redesignation rulemaking applying this
                                                                                                          portion of the bi-state Louisville Area                interpretation and expressly rejecting
                                                  trigger event has occurred and when                     meets the requirements of section 175A
                                                  contingency measures should be                                                                                 Sierra Club’s view that the meaning of
                                                                                                          of the CAA and is approvable.                          ‘‘applicable’’ under the statute is
                                                  implemented.
                                                     In the event of a monitored violation                VI. What is the effect of the January 4,               ‘‘whatever should have been in the plan
                                                  of the 1997 Annual PM2.5 NAAQS in the                   2013, D.C. Circuit decision regarding                  at the time of attainment rather than
                                                  Area, the Commonwealth commits to                       PM2.5 implementation under subpart 4?                  whatever actually was in already
                                                  adopt one or more of the following                                                                             implemented or due at the time of
                                                                                                          a. Background                                          attainment’’).16 In this case, at the time
                                                  control measures within nine months of
                                                  the monitored violation in order to bring                 As discussed in section II of this                   that Kentucky submitted its
                                                  the Area into compliance and to                         action, the D.C. Circuit remanded the                  redesignation request on March 5, 2012,
                                                  implement the control measure(s)                        1997 PM2.5 Implementation Rule to EPA                  requirements under subpart 4 were not
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                                                  within 18 months of the monitored                       on January 4, 2013, in Natural                         due, and indeed, were not yet known to
                                                  violation:                                              Resources Defense Council v. EPA, 706                  apply.
                                                     • Implementation of a program to                     F.3d 428. The court found that EPA
                                                  require additional emissions reductions                 erred in implementing the 1997 PM2.5                     16 Applicable requirements of the CAA that come

                                                  on stationary sources;                                  NAAQS pursuant to the general                          due subsequent to the area’s submittal of a complete
                                                                                                                                                                 redesignation request remain applicable until a
                                                     • Implementation of fuel programs,                   implementation provisions of subpart 1                 redesignation is approved, but are not required as
                                                  including incentives for alternative                    of part D of Title I of the CAA, rather                a prerequisite to redesignation. Section 175A(c) of
                                                  fuels;                                                  than the particulate matter-specific                   the CAA.



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                                                  3246                  Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                     On June 2, 2014, EPA published a rule                PM2.5 nonattainment areas.18 In the                      the area can maintain the standard with
                                                  entitled ‘‘Identification of                            General Preamble, EPA’s longstanding                     a PSD program after redesignation. A
                                                  Nonattainment Classification and                        general guidance interpreting the 1990                   detailed rationale for this view is
                                                  Deadlines for Submission of State                       amendments to the CAA, EPA discussed                     described in a memorandum from Mary
                                                  Implementation Plan (SIP) Provisions                    the relationship of subpart 1 and                        Nichols, Assistant Administrator for Air
                                                  for the 1997 Fine Particle (PM2.5)                      subpart 4 SIP requirements and pointed                   and Radiation, dated October 14, 1994,
                                                  National Ambient Air Quality Standard                   out that subpart 1 requirements were to                  entitled ‘‘Part D New Source Review
                                                  (NAAQS) and 2006 PM2.5 NAAQS’’                          an extent ‘‘subsumed by, or integrally                   Requirements for Areas Requesting
                                                  (‘‘Classification and Deadlines Rule’’).                related to, the more specific PM–10                      Redesignation to Attainment.’’ See also
                                                  See 79 FR 31566. In that rule, the                      requirements.’’ See 57 FR 13538 (April                   rulemakings for Detroit, Michigan (60
                                                  Agency responded to the D.C. Circuit’s                  16, 1992). The subpart 1 requirements                    FR 12467–12468, March 7, 1995);
                                                  January 2013 decision by establishing                   include, among other things, provisions                  Cleveland-Akron-Lorain, Ohio (61 FR
                                                  classifications for PM2.5 nonattainment                 for attainment demonstrations, RACM,                     20458, 20469–20470, May 7, 1996);
                                                  areas under subpart 4, and by                           RFP, emissions inventories, and                          Louisville, Kentucky (66 FR 53665,
                                                  establishing a new SIP submission date                  contingency measures.                                    October 23, 2001); and Grand Rapids,
                                                  of December 31, 2014, for moderate area                    As noted above, in the Classification                 Michigan (61 FR 31834–31837, June 21,
                                                  attainment plans and for any additional                 and Deadlines Rule, EPA initially                        1996).
                                                  attainment-related or nonattainment                     classified all areas designated                             With respect to the specific
                                                  new source review plans necessary for                   nonattainment for either the 1997 or the                 attainment planning requirements under
                                                  areas to comply with the requirements                   2006 PM2.5 NAAQS as ‘‘moderate’’                         subpart 4,21 EPA applies the same
                                                  applicable under subpart 4. Id. at                      nonattainment areas. Additional                          interpretation that it applies to
                                                  31,567–70. Therefore, when Kentucky                     requirements that would apply to the bi-                 attainment planning requirements under
                                                  submitted its request in March 2012, the                state Louisville Area as a moderate                      subpart 1 or any of other pollutant-
                                                  deadline for submitting a SIP to meet                   nonattainment area are therefore                         specific subparts. That is, under its
                                                  the Act’s subpart 4 requirements had                    sections 189(a) and (c), including the                   long-standing interpretation of the CAA,
                                                  not yet passed, and those requirements                  following: (1) An approved permit                        where an area is already attaining the
                                                  are therefore not applicable for purposes               program for construction of new and                      standard, EPA does not consider those
                                                  of evaluating Kentucky’s request for                    modified major stationary sources                        attainment-planning requirements to be
                                                  redesignation.                                          (section 189(a)(1)(A)); (2) an attainment                applicable for purposes of evaluating a
                                                  b. Subpart 4 Requirements and the                       demonstration (section 189(a)(1)(B)); (3)                request for redesignation because
                                                  Kentucky’s Redesignation Request Its                    provisions for RACM (section                             requirements that are designed to help
                                                  Portion of the Bi-State Louisville Area                 189(a)(1)(C)); and (4) quantitative                      an area achieve attainment no longer
                                                                                                          milestones demonstrating RFP toward                      have meaning where an area is already
                                                     Even though the substantive                          attainment by the applicable attainment                  meeting the standard.
                                                  requirements of subpart 4 were not                      date (section 189(c)).19                                    Thus, at the time of Kentucky’s
                                                  applicable requirements that Kentucky                      The permit requirements of subpart 4,                 submission of its redesignation request,
                                                  was required to have met at the time of                 as contained in section 189(a)(1)(A),                    the requirement for the bi-state
                                                  its redesignation request submission,                   refer to and apply the subpart 1 permit                  Louisville Area to comply with subpart
                                                  EPA believes that even the imposition of                provisions requirements of sections 172                  4 had not yet come due and was,
                                                  those substantive requirements would                    and 173 to PM10, without adding to                       therefore, not applicable for purposes of
                                                  not pose a bar to the redesignation of the              them. Consequently, EPA believes that                    EPA’s evaluation of the redesignation.
                                                  Kentucky portion of the bi-state                        section 189(a)(1)(A) does not itself                     Moreover, even if Kentucky had been
                                                  Louisville Area. The additional                         impose for redesignation purposes any                    required to comply with those subpart
                                                  requirements found in subpart 4 are                     additional requirements for moderate                     4 requirements, the additional
                                                  either designed to help an area achieve                 areas beyond those contained in subpart                  substantive requirements for a moderate
                                                  attainment (also known as ‘‘attainment                  1.20 In any event, in the context of                     nonattainment area under subpart 4
                                                  planning requirements’’) or are related                 redesignation, EPA has long relied on                    were not applicable for purposes of
                                                  to new source permitting. None of these                 the interpretation that a fully approved                 redesignation anyway, given EPA’s
                                                  additional requirements are applicable                  nonattainment new source review                          long-standing interpretation of the
                                                  for purposes of evaluating a                            program is not considered an applicable                  applicability of certain requirements to
                                                  redesignation from nonattainment to                     requirement for redesignation, provided                  areas that are attaining the NAAQS.
                                                  attainment under EPA’s long-standing
                                                  interpretation of CAA section                             18 In explaining their decision, the court reasoned
                                                                                                                                                                   c. Subpart 4 and Control of PM2.5
                                                  107(d)(3)(E)(ii) and (v).                               that the plain meaning of the CAA requires               Precursors
                                                     As background, EPA notes that                        implementation of the 1997 PM2.5 NAAQS under                As noted previously, EPA does not
                                                  subpart 4 incorporates components of                    subpart 4 because PM2.5 particles fall within the
                                                                                                          statutory definition of PM10 and are thus subject to     believe that the requirement to comply
                                                  subpart 1 of part D, which contains                     the same statutory requirements. EPA finalized its       with subpart 4 applied to Kentucky’s
                                                  general air quality planning                            interpretation of subpart 4 requirements as applied      redesignation request for its portion of
                                                  requirements for areas designated as                    to the PM2.5 NAAQS in its final rule entitled ‘‘Air      the bi-state Louisville Area because that
                                                  nonattainment. See section 172(c).                      Quality State Implementation Plans; Approvals and
                                                                                                          Promulgations: Fine Particulate Matter National          request was submitted prior to the
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                                                  Subpart 4 itself contains specific                      Ambient Air Quality Standards’’ (81 FR 58010,            moderate area SIP submission date of
                                                  planning and scheduling requirements                    August 24, 2016).                                        December 31, 2014. However, even if
                                                  for PM10 17 nonattainment areas, and                      19 EPA’s final implementation rule (81 FR 58010,
                                                                                                                                                                   the requirements of subpart 4 were to
                                                  under the Court’s January 4, 2013,                      August 24, 2016) includes, among other things, the
                                                                                                          Agency’s interpretation of these moderate area
                                                                                                                                                                   apply to the Area, EPA nevertheless
                                                  decision in NRDC v. EPA, these same                     requirements for purposes of PM2.5 NAAQS                 believes that the additional
                                                  statutory requirements also apply for                   implementation.
                                                                                                            20 The potential effect of section 189(e) on section      21 These planning requirements include the
                                                    17 PM refers to particles nominally 10                189(a)(1)(A) for purposes of evaluating this             attainment demonstration, quantitative milestone
                                                            10
                                                  micrometers in diameter or smaller.                     redesignation is discussed below.                        requirements, and RACM analysis.



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                                                                        Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                            3247

                                                  requirements of subpart 4 would not                     stationary sources of VOCs are                         Accordingly, EPA does not view the
                                                  pose an obstacle to our approval of the                 adequately controlled under other                      January 4, 2013, decision of the Court as
                                                  request to redesignate the Kentucky                     provisions of the CAA regulating the                   precluding redesignation of the bi-state
                                                  portion of the bi-state Louisville Area.                ozone NAAQS.22 In the alternative, EPA                 Louisville Area to attainment for the
                                                  Specifically, EPA proposes to determine                 proposes to determine that, under the                  1997 Annual PM2.5 NAAQS. In sum,
                                                  that, because the bi-state Louisville Area              express exception provisions of section                even if Kentucky were required to
                                                  is attaining the standard, no additional                189(e), and in the context of the                      address precursors for the bi-state
                                                  controls of any PM2.5 precursors would                  redesignation of the area, which is                    Louisville Area under subpart 4 rather
                                                  be required. Under either subpart 1 or                  attaining the 1997 annual PM2.5                        than under subpart 1, EPA would still
                                                  subpart 4, for purposes of demonstrating                standard, at present ammonia and VOC                   conclude that the Area had met all
                                                  attainment as expeditiously as                          precursors from major stationary                       applicable requirements for purposes of
                                                  practicable, a state is required to                     sources do not contribute significantly                redesignation in accordance with
                                                  evaluate all economically and                           to levels exceeding the 1997 PM2.5                     section 107(d)(3)(E)(ii) and (v).
                                                  technologically feasible control                        standard in the bi-state Louisville Area.
                                                                                                                                                                 f. Maintenance Plan and Evaluation of
                                                  measures for direct PM emissions and                    See 57 FR 13539.
                                                                                                             As noted earlier, EPA determined in                 Precursors
                                                  precursor emissions, and adopt those
                                                  measures that are deemed reasonably                     March 2011 (76 FR 12860) and                              EPA proposes to determine that the
                                                  available. Relevant precursors to PM2.5                 September 2011 (76 FR 55544) that the                  Commonwealth’s maintenance plan
                                                  pollution include SO2, NOX, VOCs, and                   bi-state Louisville Area was attaining                 shows continued maintenance of the
                                                  ammonia. Moreover, CAA section 189(e)                   the 1997 Annual PM2.5 NAAQS and that                   standard by tracking the levels of the
                                                  in subpart 4 specifically provides that                 the Area had attained the NAAQS by                     precursors whose control brought about
                                                  control requirements for major                          the applicable attainment date of April                attainment of the 1997 Annual PM2.5
                                                  stationary sources of direct PM10 shall                 5, 2010. Under EPA’s regulations, a                    standard in the bi-state Louisville Area.
                                                  also apply to PM10 precursors from                      determination of attainment, also                      EPA therefore believes that the only
                                                  those sources, except where EPA                         known as a clean data determination,                   additional consideration related to the
                                                  determines that major stationary sources                suspends the CAA’s requirements to                     maintenance plan requirements that
                                                  of such precursors ‘‘do not contribute                  submit an attainment demonstration,                    results from the court’s January 4, 2013,
                                                  significantly to PM10 levels which                      including an analysis of reasonably                    decision is that of assessing the
                                                  exceed the standard in the area.’’                      available control measures and control                 potential role of VOCs and ammonia in
                                                     Under subpart 1 and EPA’s prior                      technology; reasonable further progress;               demonstrating continued maintenance
                                                  implementation rule, all major                          and contingency measures. Under                        in this area. As explained below, based
                                                  stationary sources of PM2.5 precursors                  subpart 4, Kentucky’s plan for attaining               upon documentation provided by
                                                  were subject to regulation, with the                    the 1997 PM2.5 NAAQS in the bi-state                   Kentucky and supporting information,
                                                  exception of ammonia and VOCs. Thus,                    Louisville Area would have had to                      EPA believes that the maintenance plan
                                                  assuming subpart 4 requirements are                     consider all PM2.5 precursors, including               for the bi-state Louisville Area need not
                                                  applicable for purposes of evaluating                   VOCs and ammonia, and whether there                    include any additional emission
                                                  this redesignation request, EPA is                      were control measures, including for                   reductions of VOCs or ammonia in order
                                                  analyzing here whether additional                       existing sources under section 189(e),                 to provide for continued maintenance of
                                                  controls of ammonia and VOCs from                       available that would have advanced the                 the standard.
                                                  major stationary sources are required                   area’s attainment goals. However,                         First, as noted above in EPA’s
                                                  under section 189(e) of subpart 4 in                    because the bi-state Louisville Area has               discussion of section 189(e), VOC
                                                  order to redesignate the area for the                   already attained the 1997 PM2.5 NAAQS,                 emission levels in this area have
                                                  1997 PM2.5 standard. As explained                       the Commonwealth’s requirement to                      historically been well-controlled under
                                                  below, EPA does not believe that any                    submit a plan demonstrating how the                    SIP requirements related to ozone and
                                                  additional controls of ammonia and                      Area would attain has been suspended,                  other pollutants. Second, total ammonia
                                                  VOCs are required in the context of this                and, moreover, the Area has shown that                 emissions throughout the bi-state
                                                  redesignation.                                          it has attained with its current approach              Louisville Area are projected to be
                                                     In the General Preamble, EPA                         to regulation of PM2.5 precursors.                     approximately 2,000 tpy in 2020. See
                                                  discusses its approach to implementing                  Therefore, EPA believes that it is                     Table 10, below. This amount of
                                                  section 189(e). See 57 FR 13538 (April                  reasonable to conclude in the context of               ammonia emissions is relatively low in
                                                  16, 1992). With regard to precursor                     this redesignation that there is no need               comparison to the individual amounts
                                                  regulation under section 189(e), the                    to revisit the attainment control strategy             of SO2, NOX, and direct PM2.5 emissions
                                                  General Preamble explicitly states that                 with respect to the treatment of                       from sources in the Area. Third, as
                                                  control of VOCs under other Act                         precursors. In addition, as noted below,               described below, available information
                                                  requirements may suffice to relieve a                   EPA has analyzed projections of VOC                    shows that no precursor, including
                                                  state from the need to adopt precursor                  and ammonia emissions in the area and                  VOCs and ammonia, is expected to
                                                  controls under section 189(e). See 57 FR                has determined that VOC emissions are                  increase over the maintenance period so
                                                  13542. EPA in this rulemaking proposes                  projected to decrease by over 8,000 tpy                as to interfere with or undermine the
                                                  to determine that even if not explicitly                from 2007–2020 and ammonia                             State’s maintenance demonstration.
                                                  addressed by Kentucky in its                            emissions, which are emitted in                           The emissions inventories used in the
                                                  submission, the Commonwealth does                       marginal amounts in the bi-state                       regulatory impact analysis (RIA) for the
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                                                  not need to take further action with                    Louisville Area, are projected to                      2012 PM2.5 NAAQS, included in the
                                                  respect to ammonia and VOCs as                          decrease by approximately 5 tpy.                       docket for today’s action, show that
                                                  precursors to satisfy the requirements of                                                                      VOC emissions are projected to decrease
                                                  section 189(e). This proposed                             22 The bi-state Louisville Area has reduced VOC      by 8,148.91 tpy and ammonia emissions
                                                  determination is based on our findings                  emissions through the implementation of various        are projected to decrease by 5.22 tpy in
                                                                                                          control programs including VOC Reasonably
                                                  that: (1) The bi-state Louisville Area                  Available Control Technology (RACT) regulations
                                                                                                                                                                 the Area between 2007 and 2020. See
                                                  contains no major stationary sources of                 and various on-road and non-road motor vehicle         Table 10, below. Thus, emissions of
                                                  ammonia, and (2) existing major                         control programs.                                      VOCs are projected to decrease by 20


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                                                  3248                          Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

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

                                                   TABLE 10—COMPARISON OF 2007 AND 2020 VOC AND AMMONIA EMISSION TOTALS BY SOURCE SECTOR (tpy) FOR THE
                                                                                                AREA 23
                                                                                                                                            VOC                                                   Ammonia
                                                                            Sector
                                                                                                                         2007               2020            Net change             2007             2020        Net change

                                                  Nonpoint ...................................................           15,300.78          15,110.61              ¥190.17          1,308.11         1,386.18        78.07
                                                  Nonroad ...................................................              4,369.3           2,397.67             ¥1,971.63             7.57             8.96         1.39
                                                  Onroad .....................................................            9,533.65           3,613.66             ¥5,919.99           474.46           264.95      ¥209.51
                                                  Point .........................................................         12,487.7          12,420.58               ¥67.12            182.13           306.96       124.83

                                                        Total ..................................................         41,691.43          33,542.52             ¥8,148.91         1,972.27         1,967.05        ¥5.22



                                                     While the RIA emissions inventories                                 Louisville Area to attainment for the                   year of the maintenance plan. A state
                                                  are only projected out to 2020, there is                               1997 p.m.2.5 NAAQS.                                     may adopt MVEBs for other years as
                                                  no reason to believe that this downward                                                                                        well. The MVEB is the portion of the
                                                                                                                         VII. What is EPA’s analysis of the
                                                  trend would not continue through 2027.                                                                                         total allowable emissions in the
                                                                                                                         proposed NOX and PM2.5 MVEBs for the
                                                  Given that the bi-state Louisville Area is                                                                                     maintenance demonstration that is
                                                                                                                         bi-state Louisville Area?
                                                  already attaining the 1997 PM2.5                                                                                               allocated to highway and transit vehicle
                                                  NAAQS even with the current level of                                      Under section 176(c) of the CAA, new                 use and emissions. See 40 CFR 93.101.
                                                  emissions from sources in the Area, the                                transportation plans, programs, and                     The MVEB serves as a ceiling on
                                                  overall trend of emissions inventories is                              projects, such as the construction of                   emissions from an area’s planned
                                                  consistent with continued attainment.                                  new highways, must ‘‘conform’’ to (i.e.,                transportation system. The MVEB
                                                                                                                         be consistent with) the part of a state’s               concept is further explained in the
                                                     In addition, available air quality data                             air quality plan that addresses pollution
                                                  and modeling analysis show continued                                                                                           preamble to the November 24, 1993,
                                                                                                                         from cars and trucks. Conformity to the                 Transportation Conformity Rule (58 FR
                                                  maintenance of the standard during the                                 SIP means that transportation activities                62188). The preamble also describes
                                                  maintenance period. As noted above,                                    will not cause new air quality                          how to establish the MVEB in the SIP
                                                  the bi-state Louisville Area has an                                    violations, worsen existing violations, or              and how to revise the MVEB.
                                                  annual PM2.5 design value of 11.7 mg/m3                                delay timely attainment of the NAAQS                       After interagency consultation with
                                                  during 2013–2015, the most recent three                                or any interim milestones. If a                         the transportation partners for the bi-
                                                  years available with quality-assured and                               transportation plan does not conform,                   state Louisville Area, Kentucky has
                                                  certified ambient air monitoring data.                                 most new projects that would expand                     elected to develop MVEBs for NOX and
                                                  This is well below the 1997 Annual                                     the capacity of roadways cannot go                      PM2.5 for the entire Area. Kentucky
                                                  PM2.5 NAAQS of 15.0 mg/m3. Moreover,                                   forward. Regulations at 40 CFR part 93                  developed these MVEBs, as required, for
                                                  the modeling analysis conducted for                                    set forth EPA policy, criteria, and                     the last year of its maintenance plan,
                                                  RIA for the 2012 PM2.5 NAAQS                                           procedures for demonstrating and                        2025. Kentucky also established MVEBs
                                                  indicates that the design value for this                               assuring conformity of such                             for the interim year of 2015. The MVEBs
                                                  area is expected to continue to decline                                transportation activities to a SIP. The                 reflect the total on-road emissions for
                                                  through 2020. In the RIA analysis, the                                 regional emissions analysis is one, but                 2015 and 2025, plus an allocation from
                                                  2020 modeled design value for all                                      not the only, requirement for                           the available NOX and PM2.5 safety
                                                  counties in the bi-state Louisville Area                               implementing transportation                             margin. Under 40 CFR 93.101, the term
                                                  is projected to be 9.8 mg/m3. Given the                                conformity. Transportation conformity                   ‘‘safety margin’’ is the difference
                                                  decrease in overall precursor emissions                                is a requirement for nonattainment and                  between the attainment level (from all
                                                  projected through 2025, and expected                                   maintenance areas. Maintenance areas                    sources) and the projected level of
                                                  through 2027, it is reasonable to                                      are areas that were previously                          emissions (from all sources) in the
                                                  conclude that the monitored PM2.5                                      nonattainment for a particular NAAQS                    maintenance plan. The safety margin
                                                  concentrations in this area will also                                  but have since been redesignated to                     can be allocated to the transportation
                                                  continue to decrease through 2025.                                     attainment with an approved                             sector; however, the total emissions
                                                     Thus, EPA believes that there is                                    maintenance plan for that NAAQS.                        must remain below the attainment level.
                                                  ample justification to conclude that the                                  Under the CAA, states are required to                The NOX and PM2.5 MVEBs and
                                                  bi-state Louisville Area should be                                     submit, at various times, control strategy              allocation from the safety margin were
                                                  redesignated, even taking into                                         SIPs and maintenance plans for                          developed in consultation with the
                                                  consideration the emissions of VOCs                                    nonattainment areas. These control                      transportation partners and were added
                                                  and ammonia potentially relevant to                                    strategy SIPs (including RFP and                        to account for uncertainties in
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                                                  PM2.5. After consideration of the D.C.                                 attainment demonstration) and                           population growth, changes in model
                                                  Circuit’s January 4, 2013, decision, and                               maintenance plans create MVEBs for                      vehicle miles traveled, and new
                                                  for the reasons set forth in this notice,                              criteria pollutants and/or their                        emission factor models. The interagency
                                                  EPA continues to propose approval of                                   precursors to address pollution from                    consultation group approved a 15
                                                  Kentucky’s maintenance plan and its                                    cars and trucks. Per 40 CFR part 93, a                  percent safety margin for direct PM2.5
                                                  request to redesignate the bi-state                                    MVEB must be established for the last                   mobile source emission estimates for the
                                                    23 These emissions estimates were taken from the                     2012 PM2.5 NAAQS. Table includes the entire bi-
                                                  emissions inventories developed for the RIA for the                    state KY-IN area.



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                                                                               Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules                                                                                 3249

                                                  years 2015 and 2025, and a 15 percent                                   emission estimates for the years 2015                                   for the bi-state Louisville Area are
                                                  safety margin for NOX mobile source                                     and 2025.24 The NOX and PM2.5 MVEBs                                     defined in Table 11, below.
                                                                                 TABLE 11—MOTOR VEHICLE EMISSIONS BUDGET FOR THE BI-STATE LOUISVILLE AREA
                                                                                                                                                         [tpy]

                                                                                                                                                                                                                       PM2.5              NOX

                                                  2015 Mobile Emissions ............................................................................................................................................       504.95         15,392.13
                                                  2015 Safety Margin Allocation .................................................................................................................................           75.74          2,308.82

                                                      2015 Total Mobile Budget ................................................................................................................................            580.69         17,700.95
                                                  2025 Mobile Emissions ............................................................................................................................................       281.77          8,097.18
                                                  2025 Safety Margin Allocated .................................................................................................................................            42.27          1,214.58

                                                        2025 Total Mobile Budget ................................................................................................................................          324.04           9,311.76



                                                    As mentioned above, Kentucky has                                      be used by state and federal agencies in                                2015 and 2025 MVEBs for the bi-state
                                                  chosen to allocate a portion of the                                     determining whether proposed                                            Louisville Area for transportation
                                                  available safety margin for the bi-state                                transportation projects conform to the                                  conformity purposes in the near future
                                                  Louisville Area to the NOX and PM2.5                                    SIP as required by section 176(c) of the                                by completing the adequacy process that
                                                  MVEBs for 2015 and 2025. The NOX                                        CAA.                                                                    was started on January 24, 2012. If EPA
                                                  safety margin allocations are 2,308.82                                     EPA’s substantive criteria for                                       finds these MVEBs adequate or takes
                                                  tpy and 1,214.58 tpy for 2015 and 2025,                                 determining adequacy of a MVEBs are                                     final action to approve them into the
                                                  respectively, and the remaining safety                                  set out in 40 CFR 93.118(e)(4). The                                     Kentucky SIP, these new MVEBs for
                                                  margins for NOX for years 2015 and                                      process for determining adequacy                                        NOX and PM2.5 must be used for future
                                                  2025 are 25,288.46 tpy and 36,869.20                                    consists of three basic steps: Public                                   transportation conformity
                                                  tpy, respectively. The PM2.5 safety                                     notification of a SIP submission, a                                     determinations until such time that the
                                                  margin allocations are 75.74 tpy and                                    public comment period, and EPA’s                                        1997 PM2.5 NAAQS is consider revoked
                                                  42.27 tpy for 2015 and 2025,                                            adequacy determination. This process                                    for this Area. EPA’s most recently
                                                  respectively, and the remaining safety                                  for determining the adequacy of                                         promulgated PM2.5 implementation rule
                                                  margins for PM2.5 for years 2015 and                                    submitted MVEBs for transportation                                      provides that the 1997 PM2.5 NAAQS
                                                  2025 are 1,107.98 tpy and 1,626.12 tpy,                                 conformity purposes was initially                                       will be revoked for any area that is
                                                  respectively.                                                           outlined in EPA’s May 14, 1999,                                         redesignated for the NAAQS upon the
                                                    Through this rulemaking, EPA is                                       guidance, ‘‘Conformity Guidance on                                      effective date of that redesignation. In
                                                  proposing to approve into the Kentucky                                  Implementation of March 2, 1999,                                        the meanwhile, for required regional
                                                  SIP the MVEBs for NOX and PM2.5 for                                     Conformity Court Decision.’’ EPA                                        emissions analysis years between 2015
                                                  2015 and 2025 for the bi-state Louisville                               adopted regulations to codify the                                       and 2024, the applicable budgets will be
                                                  Area because EPA has determined that                                    adequacy process in the Transportation                                  the new 2015 MVEBs established in the
                                                  the Area maintains the 1997 Annual                                      Conformity Rule Amendments for the                                      maintenance plan. For years 2025 and
                                                  PM2.5 NAAQS with the emissions at the                                   ‘‘New 8-Hour Ozone and PM2.5 National                                   beyond, the applicable budgets will be
                                                  levels of the budgets. If the MVEBs for                                 Ambient Air Quality Standards and                                       the new 2025 MVEB.
                                                  the bi-state Louisville Area are approved                               Miscellaneous Revisions for Existing
                                                                                                                                                                                                  IX. What is the effect of EPA’s proposed
                                                  or found adequate (whichever is                                         Areas; Transportation Conformity Rule
                                                                                                                                                                                                  actions?
                                                  completed first), they must be used for                                 Amendments—Response to Court
                                                  future conformity determinations. After                                 Decision and Additional Rule Change,’’                                     EPA’s proposed actions establish the
                                                  thorough review, EPA is proposing to                                    on July 1, 2004 (69 FR 40004).                                          basis upon which EPA may take final
                                                  approve the budgets because they are                                    Additional information on the adequacy                                  action on the issues being proposed for
                                                  consistent with maintenance of the 1997                                 process for transportation conformity                                   approval. Approval of Kentucky’s
                                                  Annual PM2.5 NAAQS through 2027.                                        purposes is available in the proposed                                   redesignation request would change the
                                                                                                                          rule entitled, ‘‘Transportation                                         legal designation of Bullitt and Jefferson
                                                  VIII. What is the status of EPA’s                                                                                                               Counties in Kentucky for the 1997
                                                                                                                          Conformity Rule Amendments:
                                                  adequacy determination for the                                                                                                                  Annual PM2.5 NAAQS, found at 40 CFR
                                                                                                                          Response to Court Decision and
                                                  Proposed NOX and PM2.5 MVEBs for                                                                                                                part 81, from nonattainment to
                                                                                                                          Additional Rule Changes,’’ 68 FR 38974,
                                                  2015 and 2025 for the bi-state Louisville                                                                                                       attainment. Approval of Kentucky’s
                                                                                                                          38984 (June 30, 2003).
                                                  Area?                                                                      As discussed earlier, Kentucky’s                                     associated SIP revision would also
                                                     When reviewing submitted ‘‘control                                   maintenance plan submission includes                                    incorporate a plan for maintaining the
                                                  strategy’’ SIPs or maintenance plans                                    NOX and PM2.5 MVEBs for the bi-state                                    1997 Annual PM2.5 NAAQS in the Area
                                                  containing MVEBs, EPA may                                               Louisville Area for 2015 and 2025, the                                  through 2025 into the Kentucky SIP.
                                                  affirmatively find the MVEBs contained                                  last year of the maintenance plan. EPA                                  This maintenance plan includes
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                                                  therein adequate for use in determining                                 reviewed the NOX and PM2.5 MVEBs                                        contingency measures to remedy any
                                                  transportation conformity. Once EPA                                     through the adequacy process described                                  future violations of the 1997 Annual
                                                  affirmatively finds that the submitted                                  in Section I.                                                           PM2.5 NAAQS and procedures for
                                                  MVEBs is adequate for transportation                                       EPA intends to make its                                              evaluation of potential violations. The
                                                  conformity purposes, that MVEBs must                                    determination on the adequacy of the                                    maintenance plan also includes NOX
                                                   24 The amount of the allocation for the safety                         percentage of the available safety margin for PM2.5                     for NOX for 2015 and 2025 is 8.37 and 3.19,
                                                  margin is actually 15 percent of the PM2.5 and NOX                      for 2015 and 2025 is 6.40 and 2.53, respectively.                       respectively.
                                                  mobile emissions for 2015 and 2025. The actual                          The actual percentage of the available safety margin



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                                                  3250                  Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Proposed Rules

                                                  and PM2.5 MVEBs for the bi-state                        October 4, 1993) and 13563 (76 FR 3821,                DEPARTMENT OF TRANSPORTATION
                                                  Louisville Area. The proposed NOX and                   January, 21, 2011);
                                                  PM2.5 MVEBs for 2025 for the bi-state                      • do not impose an information                      Maritime Administration
                                                  Louisville Area are 9,311.76 tpy and                    collection burden under the provisions
                                                  324.04 tpy, respectively. Kentucky also                 of the Paperwork Reduction Act (44                     46 CFR Part 393
                                                  chose to establish an interim year                      U.S.C. 3501 et seq.);
                                                                                                                                                                 [Docket Number MARAD–2016–0130]
                                                  MVEBs for 2015 of 17,700.95 tpy and                        • are certified as not having a
                                                  580.69 tpy for NOX and PM2.5,                           significant economic impact on a                       RIN 2133–AB84
                                                  respectively.                                           substantial number of small entities
                                                                                                          under the Regulatory Flexibility Act (5                Revision of the America’s Marine
                                                  X. Proposed Actions                                     U.S.C. 601 et seq.);                                   Highway Program Regulations
                                                     EPA is proposing to: (1) Approve the                    • do not contain any unfunded
                                                                                                                                                                 AGENCY: Maritime Administration,
                                                  maintenance plan for the Kentucky                       mandate or significantly or uniquely
                                                                                                                                                                 Department of Transportation.
                                                  portion of the bi-state Louisville Area,                affect small governments, as described
                                                                                                          in the Unfunded Mandates Reform Act                    ACTION: Notice of Proposed Rulemaking.
                                                  including the PM2.5 and NOX MVEBs for
                                                  2015 and 2025 for the entire bi-state                   of 1995 (Pub. L. 104–4);                               SUMMARY:   This notice serves to inform
                                                  Louisville Area, and incorporate it into                   • do not have Federalism
                                                                                                                                                                 interested parties and the public that the
                                                  the Kentucky SIP, and (2) approve                       implications as specified in Executive
                                                                                                                                                                 Maritime Administration (MARAD)
                                                  Kentucky’s redesignation request for the                Order 13132 (64 FR 43255, August 10,
                                                                                                                                                                 proposes to revise in full Title 46 Part
                                                  1997 PM2.5 NAAQS for the Kentucky                       1999);
                                                                                                                                                                 393 of the Code of Federal Regulations,
                                                                                                             • are not economically significant
                                                  portion of the bi-state Louisville Area.                                                                       which concerns the America’s Marine
                                                                                                          regulatory actions based on health or
                                                  Further as part of this proposed action,                                                                       Highway Program (AMHP). This action
                                                                                                          safety risks subject to Executive Order
                                                  EPA is also describing the status of its                                                                       is necessary to implement provisions of
                                                                                                          13045 (62 FR 19885, April 23, 1997);
                                                  adequacy determination for the PM2.5                                                                           the Coast Guard and Maritime
                                                                                                             • are not significant regulatory
                                                  and NOX MVEBs for 2015 and 2025 in                                                                             Transportation Act of 2012 (CGMTA), to
                                                                                                          actions subject to Executive Order
                                                  accordance with 40 CFR 93.118(f)(1).                                                                           improve AMHP processes and to
                                                                                                          13211 (66 FR 28355, May 22, 2001);
                                                     If finalized, approval of the                           • are not subject to requirements of                streamline the regulations. MARAD
                                                  redesignation request would change the                  Section 12(d) of the National                          solicits written comments on this
                                                  official designation of Bullitt and                     Technology Transfer and Advancement                    proposed rulemaking.
                                                  Jefferson Counties in Kentucky for the                  Act of 1995 (15 U.S.C. 272 note) because               DATES: Comments must be received on
                                                  1997 Annual PM2.5 NAAQS, found at 40                    application of those requirements would                or before March 13, 2017. MARAD will
                                                  CFR part 81 from nonattainment to                       be inconsistent with the CAA; and                      consider comments filed after this date
                                                  attainment, as found at 40 CFR part 81.                    • will not have disproportionate                    to the extent practicable.
                                                  XI. Statutory and Executive Order                       human health or environmental effects                  ADDRESSES: You may submit comments
                                                  Reviews                                                 under Executive Order 12898 (59 FR                     identified by DOT Docket Number
                                                                                                          7629, February 16, 1994).                              MARAD–2016–0130 by any of the
                                                     Under the CAA, redesignation of an                      In addition, the SIP is not approved                following methods:
                                                  area to attainment and the                              to apply on any Indian reservation land                   • Federal eRulemaking Portal: http://
                                                  accompanying approval of a                              or in any other area where EPA or an                   www.regulations.gov. Search MARAD–
                                                  maintenance plan under section                          Indian tribe has demonstrated that a                   2016–0130 and follow the instructions
                                                  107(d)(3)(E) are actions that affect the                tribe has jurisdiction. In those areas of              for submitting comments.
                                                  status of a geographical area and do not                Indian country, the rule does not have                    • Email: MH@dot.gov. Include
                                                  impose any additional regulatory                        tribal implications as specified by                    MARAD–2016–0130 in the subject line
                                                  requirements on sources beyond those                    Executive Order 13175 (65 FR 67249,                    of the message.
                                                  imposed by state law. A redesignation to                November 9, 2000), nor will it impose                     • Mail/Hand-Delivery/Courier:
                                                  attainment does not in and of itself                    substantial direct costs of tribal                     Docket Management Facility; U.S.
                                                  create any new requirements, but rather                 governments or preempt tribal law.                     Department of Transportation, 1200
                                                  results in the applicability of                                                                                New Jersey Avenue SE., Room W12–
                                                  requirements contained in the CAA for                   List of Subjects
                                                                                                                                                                 140, Washington, DC 20590. If you
                                                  areas that have been redesignated to                    40 CFR Part 52                                         would like to know that your comments
                                                  attainment. Moreover, the Administrator                   Environmental protection, Air                        reached the facility, please enclose a
                                                  is required to approve a SIP submission                 pollution control, Incorporation by                    stamped, self-addressed postcard or
                                                  that complies with the provisions of the                reference, Intergovernmental relations,                envelope.
                                                  Act and applicable Federal regulations.                 Nitrogen oxides, Particulate matter,                      • The Docket Management Facility is
                                                  See 42 U.S.C. 7410(k); 40 CFR 52.02(a).                 Reporting and recordkeeping                            open 9:00 a.m. to 5:00 p.m., Monday
                                                  Thus, in reviewing SIP submissions,                     requirements, Sulfur oxides, Volatile                  through Friday, except on Federal
                                                  EPA’s role is to approve state choices,                 organic compounds.                                     holidays.
                                                  provided that they meet the criteria of                                                                           • You may view the public comments
                                                  the CAA. Accordingly, these proposed                    40 CFR Part 81                                         submitted on this rulemaking at http://
                                                  actions merely approve Commonwealth                       Environmental protection, Air
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                                                                                                                                 www.regulations.gov. When searching
                                                  law as meeting federal requirements and                 pollution control.                                     for comments, please use the Docket ID:
                                                  do not impose additional requirements                                                                          MARAD–2016–0130.
                                                                                                            Authority: 42 U.S.C. 7401 et seq.
                                                  beyond those imposed by state law. For
                                                  that reason, these proposed actions:                      Dated: December 23, 2016.                               Note: If you fax, mail or hand-deliver your
                                                                                                                                                                 input, we recommend that you include your
                                                     • Are not significant regulatory                     Heather McTeer Toney,
                                                                                                                                                                 name and a mailing address, an email
                                                  actions subject to review by the Office                 Regional Administrator, Region 4.                      address, or a telephone number in the body
                                                  of Management and Budget under                          [FR Doc. 2017–00324 Filed 1–10–17; 8:45 am]            of your document so that we can contact you
                                                  Executive Order 12866 (58 FR 51735,                     BILLING CODE 6560–50–P                                 if we have questions regarding your



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Document Created: 2018-02-01 14:59:49
Document Modified: 2018-02-01 14:59:49
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 February 10, 2017.
ContactMadolyn Sanchez of the Air Regulatory Management Section, in the Air Planning and Implementation Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Madolyn Sanchez may be reached by phone at (404) 562-9644, or via electronic mail at [email protected]
FR Citation82 FR 3234 
CFR Citation40 CFR 52
40 CFR 81
CFR AssociatedEnvironmental Protection; Air Pollution Control; Incorporation by Reference; Intergovernmental Relations; Nitrogen Oxides; Particulate Matter; Reporting and Recordkeeping Requirements; Sulfur Oxides and Volatile Organic Compounds

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