

[Federal Register: July 31, 2007 (Volume 72, Number 146)]
[Proposed Rules]               
[Page 41658-41669]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31jy07-22]                         

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R05-OAR-2007-0173; FRL-8448-1]

 
Determination of Attainment, Approval and Promulgation of 
Implementation Plans and Designation of Areas for Air Quality Planning 
Purposes; Indiana; Redesignation of Central Indiana To Attainment of 
the 8-Hour Ozone Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On March 26, 2007, the Indiana Department of Environmental 
Management (IDEM) submitted a request for EPA approval of a 
redesignation of Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, 
Marion, Morgan, and Shelby Counties (the Central Indiana Area) to 
attainment of the 8-hour ozone National Ambient Air Quality Standard 
(NAAQS). IDEM also requested EPA approval of an ozone maintenance plan 
for this area as a revision of the Indiana State Implementation Plan 
(SIP). EPA proposes to determine that the Central Indiana Area has 
attained the 8-hour ozone NAAQS. EPA proposes to approve Indiana's 
request to redesignate the Central Indiana Area to attainment of the 8-
hour ozone NAAQS and to approve the State's ozone maintenance plan for 
this area as a revision of the Indiana SIP. Finally, EPA proposes to 
approve Volatile Organic Compounds (VOC) and Nitrogen Oxides 
(NOX) Motor Vehicle Emission Budgets (MVEBs) for the Central 
Indiana Area, as supported by the ozone maintenance plan for this area, 
for purposes of transportation conformity determinations.

DATES: Comments must be received on or before August 30, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2007-0173, by one of the following methods:
     http://www.regulations.gov: Follow the on-line 

instructions for submitting comments.
     E-mail: mooney.john@epa.gov.
     Fax: (312) 886-5824.
     Mail: John M. Mooney, Chief, Criteria Pollutant Section, 
Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 
West Jackson Boulevard, Chicago, Illinois 60604.
     Hand Delivery: John M. Mooney, Chief, Criteria Pollutant 
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection 
Agency, 77 West Jackson Boulevard, Chicago, Illinois. Such deliveries 
are only accepted during the Regional Office's normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information. The Regional Office's official hours of operation 
are Monday through Friday, 8:30 a.m. to 4:30 p.m., excluding Federal 
holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2007-0173. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 

provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI, or otherwise protected, through http://www.regulations.gov 

or e-mail. The http://www.regulations.gov Web site is an ``anonymous access'' 

system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA without going through 
http://www.regulations.gov, your e-mail address will be automatically captured 

and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, EPA recommends that you include your name and other contact 
information in the body of your comment and with any disk or CD-ROM you 
submit. If EPA cannot read your comment due to technical difficulties 
and cannot contact you for clarification, EPA may not be able to 
consider your comment. Electronic files should avoid the use of special 
characters and any form of encryption, and should be free of any 
defects or viruses. For additional instructions on submitting comments, 
go to section I of the SUPPLEMENTARY INFORMATION section of this 
document.
    Docket: All documents in the docket are listed in the 
http://www.regulations.gov index. Although listed in the index, some 

information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hardcopy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hardcopy at the Environmental Protection 

Agency, Region 5, Air and Radiation Division, 77 West Jackson 
Boulevard, Chicago,

[[Page 41659]]

Illinois 60604. This facility is open from 8:30 a.m. to 4:30 p.m., 
Monday through Friday, excluding Federal holidays. It is recommended 
that you telephone Edward Doty, Environmental Scientist, at (312) 886-
6057, before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Edward Doty, Environmental Scientist, 
Criteria Pollutant Section, Air Programs Branch (AR-18J), Environmental 
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, 
Illinois 60604, (312) 886-6057, doty.edward@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this proposed rule whenever 
``we,'' ``us,'' or ``our'' is used, we mean the EPA. This supplementary 
information section is arranged as follows:
I. What Action is EPA Proposing to Take?
II. What is the Background for This Action?
    A. General Background Information
    B. What is the Impact of December 22, 2006, and June 8, 2007, 
United States Court of Appeals Decisions Regarding EPA's Phase 1 
Implementation Rule?
    1. Summary of Court Decision
    2. Requirements Under the 8-Hour Ozone Standard
    3. Requirements Under the 1-Hour Ozone Standard
III. What are the Criteria for Redesignations to Attainment?
IV. What Are EPA's Analyses and Opinions of the State's Requests and 
What Are the Bases for EPA's Proposed Action?
    A. Has the Central Indiana Area Attained the 8-Hour Ozone NAAQS?
    B. Has the State of Indiana Committed to Maintain the Ozone 
Monitoring System in the Central Indiana Area?
    C. Have the Central Indiana Area and the State of Indiana Met 
All of the Applicable Requirements of Section 110 and Part D of the 
Clean Air Act, and Does the Central Indiana Area Have a Fully 
Approved SIP Under Section 110(k) of the Clean Air Act?
    1. The Central Indiana Area Has Met All Applicable Requirements 
of Section 110 and Part D of the Clean Air Act
    a. Section 110 and General SIP Requirements
    b. Part D SIP Requirements
    c. Part D, Subpart 1 SIP Requirements
    d. Section 176 Conformity Requirements
    e. Part D New Source Review (NSR) Requirements
    2. The Central Indiana Area Has a Fully Approved SIP Under 
Section 110(k) of the Clean Air Act (CAA)
    D. Are the Air Quality Improvements in the Central Indiana Area 
Due to Permanent and Enforceable Emission Reductions Resulting from 
the Implementation of the Indiana SIP and Applicable Federal Air 
Pollution Control Regulations and Other Permanent and Enforceable 
Emission Reductions?
    E. Does the Central Indiana Area Have a Fully Approvable Ozone 
Maintenance Plan Pursuant to Section 175A of the CAA?
    1. What Is Required in an Ozone Maintenance Plan?
    2. What Are the Attainment Emission Inventories for the Central 
Indiana Area?
    a. Point Sources
    b. Area Sources
    c. On-Road Mobile Sources
    d. Non-Road Mobile Sources
    3. Has the State Demonstrated Maintenance of the Ozone Standard 
in the Central Indiana Area?
    4. What Is the Contingency Plan for the Central Indiana Area?
    5. Has the State Committed to Update the Ozone Maintenance Plan 
in Eight Years After the Redesignation of the Central Indiana Area 
to Attainment of the 8-Hour Ozone NAAQS?
V. Has the State Adopted Acceptable Motor Vehicle Emissions Budgets 
for the End Year of the Ozone Maintenance Period Which Can Be Used 
to Support Conformity Determinations?
    A. How Are the Motor Vehicle Emission Budgets Developed, and 
What Are the Motor Vehicle Emission Budgets for the Central Indiana 
Area?
    B. Are the MVEBs Approvable?
VI. What Are the Effects of EPA's Proposed Actions?
VII. Statutory and Executive Order Reviews

I. What Action Is EPA Proposing to Take?

    We are proposing to take several related actions for the Central 
Indiana Area (Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, 
Marion, Morgan, and Shelby Counties). First, we are proposing to 
determine that this area has attained the 8-hour ozone NAAQS. Second, 
we are proposing to approve Indiana's ozone maintenance plan for this 
area as a revision of the Indiana SIP. The maintenance plan is designed 
to keep this area in attainment of the 8-hour ozone NAAQS through 2020. 
Third, as supported by and consistent with the ozone maintenance plan, 
we are proposing to approve the 2006 and 2020 VOC and NOX 
MVEBs (54.32 tons VOC/day and 106.19 tons NOX/day in 2006, 
and 29.52 tons VOC/day and 35.69 tons NOX/day in 2020) for 
the nine counties in the Central Indiana Area for transportation 
conformity determination purposes. Finally, we are proposing to approve 
the redesignation of the Central Indiana Area to attainment of the 8-
hour ozone NAAQS.

II. What Is the Background for This Action?

A. General Background Information

    EPA has determined that ground-level ozone is detrimental to human 
health. On July 18, 1997, EPA promulgated an 8-hour ozone NAAQS (62 FR 
38856) of 0.08 parts per million parts of air (0.08 ppm) (80 parts per 
billion (ppb)).\1\ This 8-hour ozone standard replaced a prior 1-hour 
ozone NAAQS, which was promulgated on February 8, 1979 (44 FR 8202), 
and which EPA revoked on June 15, 2005 (69 FR 23858).
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    \1\ This standard is violated in an area when any ozone monitor 
in the area (or in its nearby downwind environs) records 8-hour 
ozone concentrations with a three-year average of the annual fourth-
highest daily maximum 8-hour ozone concentrations equaling or 
exceeding 85 ppb. See 40 CFR 50.10.
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    Ground-level ozone is generally not emitted directly by emission 
sources. Rather, emitted NOX and VOC react in the presence 
of sunlight to form ground-level ozone along with other secondary 
compounds. NOX and VOC are referred to as ``ozone 
precursors.'' Control of ground-level ozone concentrations is achieved 
through controlling VOC and NOX emissions.
    Section 107 of the CAA requires EPA to designate as nonattainment 
any area that violates the 8-hour ozone NAAQS. A Federal Register 
notice promulgating 8-hour ozone designations and classifications was 
published on April 30, 2004 (69 FR 23857).
    The CAA contains two sets of provisions--subpart 1 and subpart 2--
that address planning and emission control requirements for 
nonattainment areas. Both are found in title I, part D of the CAA. 
Subpart 1 contains general, less prescriptive requirements for all 
nonattainment areas for any pollutant governed by a NAAQS. Subpart 2 
contains more specific requirements for certain ozone nonattainment 
areas, and applies to ozone nonattainment areas classified under 
section 181 of the CAA.
    In the April 30, 2004, designation rulemaking, EPA divided 8-hour 
ozone nonattainment areas into the categories of subpart 1 
nonattainment (``basic'' nonattainment) and subpart 2 nonattainment 
(``classified'' nonattainment). EPA based this division on the areas' 
8-hour ozone design values (i.e., on the three-year averages of the 
annual fourth-highest daily maximum 8-hour ozone concentrations at the 
worst-case monitoring sites in the designated areas) and on their 1-
hour ozone design values (i.e., on the fourth-highest daily maximum 1-
hour ozone concentrations over the three-year period at the worst-case 
monitoring sites in the designated areas) \2\ using ozone data from the 
period of 2001-2003. EPA classified 8-hour ozone nonattainment areas 
with 1-hour ozone design values equaling or

[[Page 41660]]

exceeding 121 ppb as subpart 2, classified nonattainment areas. EPA 
classified all other 8-hour nonattainment areas as subpart 1, basic 
nonattainment areas. The basis for area classification was defined in a 
separate April 30, 2004, final rule (the Phase 1 implementation rule) 
(69 FR 23951). In the April 30, 2004, ozone designation/classification 
rulemaking, EPA designated the Central Indiana Area, as a subpart 1, 
basic nonattainment area for the 8-hour ozone NAAQS.
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    \2\ The 8-hour ozone design value and the 1-hour ozone design 
value for each area were not necessarily recorded at the same 
monitoring site. The worst-case monitoring site for each ozone 
concentration averaging time was considered for each area.
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    On March 26, 2007, the State of Indiana requested redesignation of 
the Central Indiana Area to attainment of the 8-hour ozone NAAQS based 
on ozone data collected in this area during the period of 2004-2006.

B. What Is the Impact of December 22, 2006, and June 8, 2007, United 
States Court of Appeals Decisions Regarding EPA's Phase 1 
Implementation Rule?

1. Summary of Court Decision
    On December 22, 2006, the U.S. Court of Appeals for the District of 
Columbia Circuit (D.C. Circuit) vacated EPA's Phase 1 implementation 
rule for the 8-hour ozone standard (69 FR 23951, April 30, 2004). South 
Coast Air Quality Management Dist. v. EPA, 472 F.3d 882 (DC Cir. 2006). 
On June 8, 2007, in South Coast Air Quality Management Dist. v. EPA, 
Docket No. 04-1201, in response to several petitions for rehearing, the 
DC Circuit clarified that the Phase 1 rule was vacated only with regard 
to those parts of the rule that had been successfully challenged. 
Therefore, the Phase 1 rule provisions related to classifications for 
areas currently classified under subpart 2 of title I, part D of the 
CAA as 8-hour nonattainment areas, the 8-hour attainment dates and the 
timing of emissions reductions needed for attainment of the 8-hour 
ozone NAAQS remain effective. The June 8th decision left intact the 
Court's rejection of EPA's reasons for implementing the 8-hour standard 
in certain nonattainment areas under subpart 1 in lieu of subpart 2. By 
limiting the vacatur, the Court let stand EPA's revocation of the 1-
hour ozone standard and those anti-backsliding provisions of the Phase 
1 rule that had not been successfully challenged. The June 8th decision 
reaffirmed the December 22, 2006, decision that EPA had improperly 
failed to retain measures required for 1-hour nonattainment areas under 
the anti-backsliding provisions of the regulations: (1) Nonattainment 
area New Source Review (NSR) requirements based on an area's 1-hour 
nonattainment classification; (2) section 185 penalty fees for 1-hour 
severe and extreme nonattainment areas; and, (3) measures to be 
implemented pursuant to section 172(c)(9) or 182(c)(9) of the CAA, on 
the contingency of an area not making reasonable further progress 
toward attainment of the 1-hour NAAQS, or for failure to attain that 
NAAQS. In addition, the June 8th decision clarified that the Court's 
reference to conformity requirements for anti-backsliding purposes was 
limited to requiring the continued use of 1-hour motor vehicle emission 
budgets until 8-hour budgets are available for 8-hour conformity 
determinations, which is already required under EPA's conformity 
regulations. The Court, thus, clarified that 1-hour conformity 
determinations are not required for anti-backsliding purposes.
    This section sets forth EPA's views on the potential effect of the 
Court's rulings on this proposed redesignation action. For the reasons 
set forth below, EPA does not believe that the Court's rulings alter 
any requirements relevant to this redesignation action so as to 
preclude redesignation, and do not prevent EPA from proposing or 
ultimately finalizing this redesignation. EPA believes that the Court's 
December 22, 2006, and June 8, 2007, decisions impose no impediment to 
moving forward with redesignation of this area to attainment, because 
even in light of the Court's decisions, redesignation is appropriate 
under the relevant redesignation provisions of the CAA and longstanding 
policies regarding redesignation requests.
2. Requirements Under the 8-Hour Ozone Standard
    With respect to the 8-hour ozone standard, EPA notes that the 
Court's ruling rejected EPA's reasons for classifying areas under 
subpart 1 for the 8-hour ozone standard, and remanded that matter to 
the EPA. Consequently, it is possible that the Central Indiana Area 
could, during a remand to EPA, be reclassified under subpart 2. 
Although any future decision by EPA to classify this area under subpart 
2 might trigger additional future requirements for this area, EPA 
believes that this does not mean that redesignation of the area cannot 
now go forward. This belief is based upon (1) EPA's longstanding policy 
of evaluating redesignation requests in accordance with the 
requirements due at the time the redesignation request is submitted; 
and, (2) consideration of the inequity of applying retroactively any 
future requirements.
    First, at the time the redesignation request was submitted by the 
State, the Central Indiana Area was classified under subpart 1 and was 
obligated to meet only subpart 1 requirements. Under EPA's longstanding 
interpretation of section 107(d)(3)(E) of the CAA, to qualify for 
redesignation, states requesting redesignation to attainment must meet 
only the relevant SIP requirements that came due prior to the submittal 
of a complete redesignation request. September 4, 1992, Calcagni 
memorandum (``Procedures for Processing Requests to Redesignate Areas 
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division). See also September 17, 1993, Michael Shapiro 
memorandum, 60 FR 12459, 12465-66 (March 7, 1995) (redesignation of 
Detroit-Ann Arbor), and Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 
2004), which upheld this interpretation. See, e.g. also 68 FR 25418, 
25424, 25427 (May 12, 2003) (redesignation of St. Louis).
    Moreover, it would be inequitable to retroactively apply any new 
SIP requirements that were not applicable at the time the redesignation 
request was submitted. The DC Circuit has recognized the inequity in 
such retroactive rulemaking. See Sierra Club v. Whitman, 285 F.3d 63 
(DC Cir. 2002), in which the DC Circuit upheld a District Court's 
ruling refusing to make retroactive an EPA determination of 
nonattainment that was past the statutory due date. Such a 
determination would have resulted in the imposition of additional 
requirements on the area. The Court stated: ``Although EPA failed to 
make the nonattainment determination within the statutory timeframe, 
Sierra Club's proposed solution only makes the situation worse. 
Retroactive relief would likely impose large costs on the States, which 
would face fines and suits for not implementing air pollution 
prevention plans in 1997, even though they were not on notice at the 
time.'' Id. at 68. Similarly, here it would be unfair to penalize the 
area by applying to it, for purposes of redesignation, additional SIP 
requirements under subpart 2 that were not in effect at the time the 
State submitted its redesignation request.
3. Requirements Under the 1-Hour Ozone Standard
    With respect to the requirements under the 1-hour ozone standard, 
we note that the Central Indiana Area was made up of two types of areas 
relative to the 1-hour ozone standard at the time the 8-hour ozone 
standard was promulgated. First, Marion County was an ozone maintenance 
area, having been previously designated as a nonattainment area under 
the 1-hour

[[Page 41661]]

ozone standard and having subsequently been redesignated to attainment 
of the 1-hour ozone standard. Second, all remaining Counties in the 
Central Indiana Area were designated as attainment/unclassifiable areas 
under the 1-hour ozone standard, having never been designated as 1-hour 
ozone nonattainment areas. The Court's ruling on EPA's Phase 1 rule 
does not impact redesignation requests for either of these types of 
areas.
    First, because Boone, Hamilton, Hancock, Hendricks, Johnson, 
Madison, Morgan, and Shelby Counties were designated as attainment/
unclassifiable under the 1-hour ozone standard, and were never 
designated nonattainment for the 1-hour ozone standard, there are no 
outstanding 1-hour ozone nonattainment requirements that these counties 
would be required to meet. Thus, we find that the Court's ruling does 
not result in any additional 1-hour requirements for purposes of 
redesignation.
    Second, with respect to the 1-hour ozone standard requirements for 
Marion County, this area was an attainment area subject to a Clean Air 
Act section 175A maintenance plan under the 1-hour ozone standard. The 
Court's decisions do not impact redesignation requests for these types 
of areas, except to the extent that the Court in its June 8th decision 
clarified that for those areas with 1-hour motor vehicle emissions 
budgets in their 1-hour ozone maintenance plans, anti-backsliding 
requires that those 1-hour budgets must be used for 8-hour conformity 
determinations until replaced by 8-hour budgets. To meet this 
requirement, conformity determinations in such areas must continue to 
comply with the applicable requirements of EPA's conformity regulations 
at 40 CFR part 93. The Court clarified that 1-hour conformity 
determinations are not required for anti-backsliding purposes.
    With respect to the three other anti-backsliding provisions for the 
1-hour ozone standard that the Court found were not properly retained, 
Marion County is an attainment area subject to a maintenance plan for 
the 1-hour ozone standard, and the NSR, contingency measures (pursuant 
to section 172(c)(9) or 182(c)(9)), and fee provision requirements no 
longer apply to this area because it has been redesignated to 
attainment of the 1-hour ozone standard.
    Thus, the decision in South Coast Air Quality Management Dist. 
should not preclude EPA from finalizing the redesignation of this area.

III. What Are the Criteria for Redesignations to Attainment?

    The CAA provides the basic requirements for redesignating a 
nonattainment area to attainment. Specifically, section 107(d)(3)(E) of 
the CAA authorizes the EPA to redesignate an area to attainment of the 
NAAQS provided that: (1) The Administrator determines that the area has 
attained the applicable NAAQS based on current air quality data; (2) 
the Administrator has fully approved an applicable SIP for the area 
under section 110(k) of the CAA; (3) the Administrator determines that 
the improvement in air quality is due to permanent and enforceable 
emission reductions resulting from implementation of the applicable 
SIP, Federal air pollution control regulations, and other permanent and 
enforceable emission reductions; (4) the Administrator has fully 
approved a maintenance plan for the area meeting the requirements of 
section 175A of the CAA; and, (5) the State containing the area has met 
all requirements applicable to the area under section 110 and part D of 
the CAA.
    EPA provided guidance on redesignations in the General Preamble for 
the Implementation of Title I of the CAA Amendments of 1900 on April 
16, 1992 (57 FR 13498), and supplemented this guidance on April 28, 
1992 (57 FR 18070). The two main policy guidelines affecting the review 
of ozone redesignation requests are the following: ``Procedures for 
Processing Requests to Redesignate Areas to Attainment,'' Memorandum 
from John Calcagni, Director, Air Quality Management Division, 
September 4, 1992 (the September 4, 1992 Calcagni memorandum); and, 
``Reasonable Further Progress, Attainment Demonstration, and Related 
Requirements for Ozone Nonattainment Areas Meeting the Ozone National 
Ambient Air Quality Standard,'' Memorandum from John S. Seitz, 
Director, Office of Air Quality Planning and Standards, May 10, 1995 
(the May 10, 1995 Seitz memorandum). For additional policy guidelines 
used in the review of ozone redesignation requests, see our proposed 
rule for the redesignation of the Evansville, Indiana ozone 
nonattainment area at 70 FR 53606 (September 9, 2005).

IV. What Are EPA's Analyses and Opinions of the State's Requests and 
What Are the Bases for EPA's Proposed Action?

    EPA is proposing to: (1) Determine that the Central Indiana Area 
has attained the 8-hour ozone standard; (2) approve the ozone 
maintenance plan for the Central Indiana Area and the VOC and 
NOX MVEBs supported by the maintenance plan; and, (3) 
approve the redesignation of the Central Indiana Area to attainment of 
the 8-hour ozone NAAQS. The bases for our proposed determination and 
approvals follow.

A. Has the Central Indiana Area Attained the 8-Hour Ozone NAAQS?

    For ozone, an area may be considered to be attaining the 8-hour 
ozone NAAQS if there are no violations of the NAAQS, as determined in 
accordance with 40 CFR 50.10 and appendix I, based on the most recent 
three complete, consecutive calendar years of quality-assured air 
quality monitoring data at all ozone monitoring sites in the area and 
in its nearby downwind environs. To attain this standard, the average 
of the annual fourth-high daily maximum 8-hour average ozone 
concentrations measured and recorded at each monitor (the monitoring 
site's ozone design value) within the area and in its nearby downwind 
environs over the most recent three-year period must not exceed the 
ozone standard. Based on an ozone data rounding convention described in 
40 CFR 50, appendix I, the 8-hour ozone standard is attained if the 
area's ozone design value \3\ is 0.084 ppm (84 ppb) or less. The data 
must be collected and quality-assured in accordance with 40 CFR 58, and 
must be recorded in EPA's Air Quality System (AQS). The ozone monitors 
generally should have remained at the same locations for the duration 
of the monitoring period required to demonstrate attainment (for three 
years or more). The data supporting attainment of the standard must be 
complete in accordance with 40 CFR 50, appendix I.
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    \3\ The worst-case monitoring site-specific ozone design value 
in the area and in its nearby downwind environs.
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    As part of the ozone redesignation request, IDEM submitted 
summarized 2004-2006 peak 8-hour ozone monitoring data for the Central 
Indiana Area. These ozone concentrations are part of the quality-
assured ozone data recorded in the Air Quality System. The annual 
fourth-high 8-hour daily maximum concentrations for each year, along 
with the three-year averages,\4\ are summarized in Table 1.
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    \4\ Three-year averages are specified for the last year of each 
three-year period and specify the monitoring site design values.

[[Page 41662]]



                            Table 1.--Annual Fourth-High Daily Maximum 8-Hour Ozone Concentrations in Parts per Million (ppm)
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                                                                                                              Percent
                 Site Id                            County                     Site name           Year    observations     Fourth-high     Three-year
                                                                                                           ozone season    concentration      average
--------------------------------------------------------------------------------------------------------------------------------------------------------
18-011-0001.............................  Boone.....................  Whitestown................    2004             100           0.072  ..............
                                                                      Whitestown................    2005             100           0.082  ..............
                                                                      Whitestown................    2006             100           0.080           0.078
18-057-1001.............................  Hamilton..................  Noblesville...............    2004              99           0.075  ..............
                                                                      Noblesville...............    2005              99           0.087  ..............
                                                                      Noblesville...............    2006             100           0.077           0.079
18-059-0003.............................  Hancock...................  Fortville.................    2004             100           0.072  ..............
                                                                      Fortville.................    2005              99           0.080  ..............
                                                                      Fortville.................    2006              99           0.075           0.075
18-063-0004.............................  Hendricks.................  Avon......................    2004             100           0.071  ..............
                                                                      Avon......................    2005             100           0.078  ..............
                                                                      Avon......................    2006             100           0.073           0.074
18-081-0002.............................  Johnson...................  Trafalgar.................    2004             100           0.073  ..............
                                                                      Trafalgar.................    2005             100           0.077  ..............
                                                                      Trafalgar.................    2006              98           0.078           0.076
18-095-0010.............................  Madison...................  Emporia...................    2004             100           0.072  ..............
                                                                      Emporia...................    2005             100           0.078  ..............
                                                                      Emporia...................    2006              97           0.073           0.074
18-097-0050.............................  Marion....................  Ft. Benjamin Harrison.....    2004              99           0.073  ..............
                                                                      Ft. Benjamin Harrison.....    2005              99           0.080  ..............
                                                                      Ft. Benjamin Harrison.....    2006             100           0.076           0.076
18-097-0057.............................  Marion....................  Harding St................    2004             100           0.066  ..............
                                                                      Harding St................    2005             100           0.081  ..............
                                                                      Harding St................    2006              93           0.076           0.074
18-097-0042.............................  Marion....................  Mann Road.................    2004              99           0.065  ..............
                                                                      Mann Road.................    2005             100           0.076  ..............
                                                                      Mann Road.................    2006              98           0.074           0.071
18-097-0073.............................  Marion....................  Naval Air Warfare Center..    2004             100           0.071  ..............
                                                                      Naval Air Warfare Center..    2005             100           0.080  ..............
                                                                      Naval Air Warfare Center..    2006              93           0.072           0.074
18-109-0005.............................  Morgan....................  Monrovia..................    2004              99           0.072  ..............
                                                                      Monrovia..................    2005             100           0.078  ..............
                                                                      Monrovia..................    2006             100           0.077           0.075
18-145-0001.............................  Shelby....................  Fairland..................    2004              99           0.071  ..............
                                                                      Fairland..................    2005             100           0.080  ..............
                                                                      Fairland..................    2006              98           0.073           0.074
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The above data show that, during the period of 2004-2006, no 
violations of the 8-hour ozone standard were recorded in the Central 
Indiana Area. In addition, we find that the ozone data for the years 
considered meet data completeness requirements of 40 CFR part 50, 
appendix I. Based on these data, we conclude and find that the Central 
Indiana Area has attained the 8-hour ozone NAAQS.

B. Has the State of Indiana Committed To Maintain the Ozone Monitoring 
System in the Central Indiana Area?

    IDEM commits to maintain the ozone monitoring network in the 
Central Indiana Area during the ozone maintenance period. Any necessary 
changes in the ozone monitoring system will be discussed in advance 
with the EPA. This commitment is acceptable.

C. Have the Central Indiana Area and the State of Indiana Met All of 
the Applicable Requirements of Section 110 and Part D of the Clean Air 
Act, and Does the Central Indiana Area Have a Fully Approved SIP Under 
Section 110(k) of the Clean Air Act?

    We have determined that the Central Indiana Area and the State of 
Indiana have met all currently applicable SIP requirements for the 
Central Indiana Area, including the requirements under section 110 of 
the CAA (general SIP requirements) and the requirements under subpart 1 
part D of title I of the CAA (requirements specific to all ozone 
nonattainment areas). See section 107(d)(3)(E)(v) of the CAA. In 
addition, EPA has fully approved the pertinent elements of the Indiana 
SIP. See section 107(d)(3)(E)(ii) of the CAA. We note that SIPs must be 
fully approved only with respect to currently applicable requirements 
of the CAA, which were those CAA requirements applicable to the Central 
Indiana Area at the time the State of Indiana submitted the final, 
complete ozone redesignation request for this area, March 26, 2007.
1. The Central Indiana Area Has Met All Applicable Requirements of 
Section 110 and Part D of the Clean Air Act
    The September 4, 1992, Calcagni memorandum describes EPA's 
interpretation of section 107(d)(3)(E) of the CAA. To qualify for 
redesignation of an area to attainment under this interpretation, the 
State and the area must meet the relevant CAA requirements that come 
due prior to the State's submittal of a complete redesignation request 
for the area. See also the September 17, 1993, Michael Shapiro 
memorandum and 66 FR 12459, 12465-12466 (March 7, 1995, redesignating 
Detroit-Ann Arbor, Michigan to attainment of the 1-hour ozone NAAQS). 
Applicable requirements of the CAA that come due subsequent to the 
State's submittal of a complete redesignation request remain applicable 
until a redesignation of the area to attainment of the standard is 
approved, but are not required as

[[Page 41663]]

prerequisites to redesignation. See section 175A(c) of the CAA. Sierra 
Club v. EPA, 375 F.3d 537 (7th Cir. 2004). See also 66 FR 25424, 25427 
(May 12, 2003, redesignation of the St. Louis/East St. Louis area to 
attainment of the 1-hour ozone NAAQS).
a. Section 110 and General SIP Requirements
    Section 110(a) of title I of the CAA contains the general 
requirements for a SIP, which include: enforceable emission limitations 
and other emission control measures, means, or techniques; provisions 
for the establishment and operation of appropriate devices necessary to 
collect data on ambient air quality; programs to enforce the emission 
limitations; submittal of a SIP that has been adopted by the State 
after reasonable public notice and a hearing; implementation of a 
source permit program; provisions for the implementation of part C 
requirements (Prevention of Significant Deterioration (PSD)) and part D 
requirements (NSR for new sources or major source modifications); 
criteria for stationary source emission control measures, monitoring, 
and reporting; provisions for air quality modeling; and provisions for 
public and local agency participation.
    SIP requirements and elements are discussed in the following EPA 
documents: ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992; ``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 ``State Implementation Plan (SIP) 
Requirements for Areas Submitting Requests for Redesignation to 
Attainment of the Ozone and Carbon Monoxide (CO) National Ambient Air 
Quality Standards (NAAQS) on or after November 15, 1992,'' Memorandum 
from Michael H. Shapiro, Acting Assistant Administrator, September 17, 
1993. See also other guidance documents listed above.
    Section 110(a)(2)(D) of the CAA requires SIPs to contain certain 
measures to prevent sources in a State from significantly contributing 
to air quality problems in another State. To implement this provision, 
EPA required States to establish programs to address transport of air 
pollutants (NOX SIP call and Clean Air InterState Rule 
(CAIR)). EPA has also found, generally, that States have not submitted 
SIPs under section 110(a)(1) of the CAA to meet the interstate 
transport requirements of section 110(a)(2)(D)(i) of the CAA (70 FR 
21147, April 25, 2005). However, the section 110(a)(2)(D) requirements 
for a State are not linked with a particular area's designation. EPA 
believes that the requirements linked with a particular area's 
nonattainment designation and classification 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.
    We believe that these requirements should not be construed to be 
applicable requirements for purposes of redesignation. Further, we 
believe that the other section 110 elements described above that are 
not connected with nonattainment plan submissions and that are not 
linked with an area's attainment status are also not applicable 
requirements for purposes of redesignation. A State remains subject to 
these requirements after an area is redesignated to attainment. We 
conclude that only the section 110 and part D requirements which are 
linked with an area's designation and classification are the relevant 
measures for evaluating this aspect of a redesignation request. This 
approach is consistent with EPA's existing policy on applicability of 
conformity and oxygenated fuels requirements for redesignation 
purposes, as well as with section 184 ozone transport requirements. 
See: Reading, Pennsylvania proposed and final rulemakings (61 FR 53174-
53176, October 10, 1996 and 62 FR 24826, May 7, 1997); Cleveland-Akron-
Lorain, Ohio final rulemaking (61 FR 20458, May 7, 1996); and Tampa, 
Florida final rulemaking (60 FR 62748, December 7, 1995). See also the 
discussion on this issue in the Cincinnati, Ohio ozone redesignation 
(65 FR 37890, June 19, 2000), and the Pittsburgh, Pennsylvania ozone 
redesignation (66 FR 50399, October 19, 2001).
    We believe that section 110 elements not linked to the area's 
nonattainment status are not applicable for purposes of redesignation. 
Nonetheless, we also note that EPA has previously approved provisions 
in the Indiana SIP addressing section 110 elements under the 1-hour 
ozone standard. We have analyzed the Indiana SIP as codified in 40 CFR 
part 52, subpart P and have determined that it is consistent with the 
requirements of section 110(a)(2) of the CAA. The SIP, which has been 
adopted after reasonable public notice and hearing, contains 
enforceable emission limitations; requires monitoring, compiling, and 
analyzing ambient air quality data; requires preconstruction review of 
new major stationary sources and major modifications of existing 
sources; provisions for adequate funding, staff, and associated 
resources necessary to implement its requirements; requires stationary 
source emissions monitoring and reporting; and otherwise satisfies the 
applicable requirements of section 110(a)(2).
b. Part D SIP Requirements
    EPA has determined that the Indiana SIP meets applicable SIP 
requirements under part D of the CAA. Under part D, an area's 
classification--either subpart 1 or subpart 2 (marginal, moderate, 
serious, severe, and extreme)--indicates the requirements to which it 
will be subject. Subpart 1 of part D, found in sections 172-176 of the 
CAA, sets forth the basic nonattainment area plan requirements 
applicable to all nonattainment areas. Subpart 2 of part D, found in 
section 182 of the CAA, establishes additional specific requirements 
depending on the area's nonattainment classification. Since the Central 
Indiana Area is designated as a subpart 1 nonattainment area for the 8-
hour ozone standard, the subpart 2 part D requirements do not apply to 
these Counties.
c. Part D, Subpart 1 SIP Requirements
    For purposes of evaluating this redesignation request, the 
applicable subpart 1 part D requirements are contained in sections 
172(c)(1)-(9) and 176. A thorough discussion of the requirements of 
section 172 can be found in the General Preamble for Implementation of 
Title I (57 FR 13498). See also 68 FR 4852-4853, an ozone redesignation 
notice of proposed rulemaking for the St. Louis area, for a discussion 
of section 172 requirements.
    No requirements for the 8-hour ozone standard under part D, subpart 
1 of the CAA came due for the Central Indiana Area prior to when the 
State submitted the complete ozone redesignation request. For example, 
the requirement for an ozone attainment demonstration, as contained in 
section 172(c)(1), was not yet due when the State submitted the ozone 
redesignation request for these counties, nor were the requirements for 
Reasonably Available Control Measures (RACM) and Reasonably Available 
Control Technology (RACT) (section 172(c)(1)), Reasonable Further 
Progress (RFP) (section 172(c)(2)), and attainment plan and RFP 
contingency measures (section 172(c)(9)). All of these SIP elements are 
required for submittal after Indiana

[[Page 41664]]

submitted the complete, adopted ozone redesignation request and 
maintenance plan for the Central Indiana Area. Therefore, none of the 
part D requirements for the 8-hour ozone standard are considered to be 
applicable to the Central Indiana Area for purposes of redesignation.
d. Section 176 Conformity Requirements
    Section 176(c) of the CAA requires States to establish criteria and 
procedures to ensure that Federally-supported or funded activities, 
including highway projects, conform to the air planning goals in the 
applicable SIP. The requirement to determine conformity applies to 
transportation plans, programs, and projects developed, funded, or 
approved under Title 23 U.S.C. and the Federal Transit Act 
(transportation conformity), as well as to all other Federally-
supported or funded projects (general conformity). State conformity SIP 
revisions must be consistent with Federal conformity regulations that 
the CAA required the EPA to promulgate.
    As with other part D requirements, EPA interprets the conformity 
requirements as not applying for purposes of evaluating the ozone 
redesignation request under section 107(d) of the CAA. In addition, 
please note that conformity rules are required for areas that are 
redesignated to attainment of a NAAQS, and that Federal conformity 
rules apply where State rules have not been approved. See Wall v. EPA, 
265 F.3d 426 (6th Cir. 2001). See also 60 FR 62748 (December 7, 1995) 
(Tampa, Florida).
e. Part D New Source Review (NSR) Requirements
    EPA has determined that areas being redesignated need not comply 
with the requirement that a NSR program be approved prior to 
redesignation, provided that the area demonstrates maintenance of the 
standard without emission reductions from part D NSR, since Prevention 
of Significant Deterioration (PSD) requirements will apply after 
redesignation. A more detailed rationale for this view is described in 
a memorandum from Mary Nichols, Assistant Administrator for Air and 
Radiation, dated October 14, 1994, entitled, ``Part D New Source Review 
Requirements for Areas Requesting Redesignation to Attainment.'' 
Indiana has demonstrated that the Central Indiana Area will be able to 
maintain the 8-hour ozone standard without part D NSR in effect, and 
therefore, we conclude that the State need not have a fully approved 
part D NSR program prior to approval of the redesignation request. The 
State's PSD program will become effective in the Central Indiana Area 
upon redesignation to attainment. See rulemakings for Detroit, Michigan 
(60 FR 12467-12468, March 7, 1995); Cleveland-Akron-Lorain, Ohio (61 FR 
20458, 20469-20470, May 7, 1996); Louisville, Kentucky (66 FR 53665, 
October 23, 2001); Grand Rapids, Michigan (61 FR 31834-31837, June 21, 
1996).
    We conclude that the Central Indiana Area has satisfied all 
applicable requirements under section 110 and part D of the CAA to the 
extent that these requirements apply for purposes of reviewing the 
State's ozone redesignation request.
2. The Central Indiana Area Has a Fully Approved SIP Under Section 
110(k) of the Clean Air Act (CAA)
    EPA has fully approved the Indiana SIP for the Central Indiana Area 
under section 110(k) of the CAA for all applicable requirements. EPA 
may rely on prior SIP approvals in approving a redesignation request 
(See the September 4, 1992, John Calcagni memorandum, page 3; 
Southwestern Pennsylvania Growth Alliance v. Browner, 144 F.3d 984, 
989-990 (6th Cir. 1998); and, Wall v. EPA, 265 F.3d 426 (6th Cir. 
2001)), plus any additional measures it may approve in conjunction with 
a redesignation action. See 68 FR 25426 (May 12, 2003). Since the 
passage of the CAA of 1970, Indiana has adopted and submitted, and EPA 
has fully approved, provisions addressing the various required SIP 
elements applicable to the Central Indiana Area for purposes of ozone 
redesignation. No SIP provisions relevant to the Central Indiana Area 
are currently disapproved, conditionally approved, or partially 
approved. As indicated above, EPA believes that the section 110 
elements not connected with nonattainment plan submissions and not 
linked to the area's nonattainment status are not applicable 
requirements for purposes of review of the State's redesignation 
request. EPA believes that approval of section 110 SIP elements under 
the 1-hour ozone standard satisfies the prerequisite for approval of 
the ozone redesignation request for purposes of attaining and 
maintaining the 8-hour ozone standard. EPA also believes that since the 
part D requirements for the 8-hour ozone standard did not become due 
prior to Indiana's submittal of the final, complete redesignation 
request, they also are not applicable requirements for purposes of 
redesignation.

D. Are the Air Quality Improvements in the Central Indiana Area Due to 
Permanent and Enforceable Emission Reductions Resulting From the 
Implementation of the Indiana SIP and Applicable Federal Air Pollution 
Control Regulations and Other Permanent and Enforceable Emission 
Reductions?

    We believe that the State of Indiana has adequately demonstrated 
that the observed air quality improvements in the Central Indiana Area 
are due to permanent and enforceable emission reductions resulting from 
the implementation of the SIP, Federal measures, and other State-
adopted measures. In making this demonstration, the State has 
documented the changes in VOC and NOX emissions from 
anthropogenic (man-made or man-based) sources in the Central Indiana 
Area and the changes in NOX emissions from Electric 
Generating Units (EGUs) Statewide occurring over the period of 1999-
2005. This period includes 2002, an ozone standard violation year, and 
2005, the year in the middle of the 2004-2006 attainment period. The 
State has also identified the emission control regulations that have 
been implemented in the Central Indiana Area and that have contributed 
to attainment of the ozone standard.
    Table 2 summarizes the VOC and NOX emissions totals from 
the anthropogenic sources in the Central Indiana Area for 1999, 2002, 
and 2005 as documented in the State's redesignation request. Table 3 
summarizes the NOX emissions trend for EGUs in the Central 
Indiana Area, and Table 4 summarizes the NOX emissions trend 
for EGUs Statewide.

  Table 2.--VOC and NOX Emissions Totals in the Central Indiana Area in
                           Tons per Summer Day
------------------------------------------------------------------------
                        Year                             VOC       NOX
------------------------------------------------------------------------
1999................................................    290.84    293.15
2002................................................    249.67    264.69
2005................................................    199.25    220.18
------------------------------------------------------------------------


 Table 3.--NOX Emissions Totals for EGUs in the Central Indiana Area in
                 Tons per Ozone Season (April-September)
------------------------------------------------------------------------
                   Year                             NOX emissions
------------------------------------------------------------------------
1999......................................  31,815
2000......................................  25,028
2001......................................  27,394
2002......................................  22,661
2003......................................  17,984
2004......................................  11,798

[[Page 41665]]


2005......................................  10,591
------------------------------------------------------------------------


Table 4.--NOX Emissions Totals for EGUs in Indiana Statewide In Tons per
                              Ozone Season
------------------------------------------------------------------------
                   Year                             NOX emissions
------------------------------------------------------------------------
1999......................................  149,827
2000......................................  133,881
2001......................................  136,052
2002......................................  113,996
2003......................................  99,283
2004......................................  66,568
2005......................................  55,486
------------------------------------------------------------------------

    Information in the above tables indicates that both VOC and 
NOX emissions significantly decreased in the Central Indiana 
Area between 2002 and 2005. In particular, the NOX emissions 
from EGUs in this area significantly decreased during this period due 
to the implementation of EPA's NOX SIP call and acid rain 
control requirements. As discussed further below, these emission 
reductions are primarily due to the implementation of permanent and 
enforceable emission controls, which are believed to have significantly 
contributed to the attainment of the 8-hour ozone standard in this 
area.
    The Statewide NOX emission reductions for EGUs are 
believed to have significantly reduced ozone transport into the Central 
Indiana Area, further reducing the peak ozone concentrations in this 
area. These emission reductions are primarily due to the implementation 
of the State's NOX emission control rules stemming from 
EPA's NOX SIP call and acid rain control requirements. These 
NOX emission control rules are permanent and enforceable. We 
agree with the State that these NOX control rules have 
significantly reduced ozone levels in and ozone transport to the 
Central Indiana Area.
    Besides the NOX SIP call regulations, IDEM notes that 
the following VOC emission control regulations have been implemented in 
the Central Indiana Area (``IAC'' is the Indiana Administrative Code):

326 IAC 8-1-6 Best Available Control Technology (BACT) for non-specific 
sources
326 IAC 8-2 Surface Coating Emission Limitations
326 IAC 8-3 Organic Solvent Degreasing Operation Controls
326 IAC 8-4 Petroleum Sources Controls
326 IAC 8-5 Miscellaneous Operations Controls
326 IAC 8-6 Organic Solvent Emission Limitations
326 IAC 8-8.1-1 Municipal Solid Waste Landfills Not Located in Clark, 
Floyd, Lake and Porter Counties Controls.

In addition, because EPA had initially designated Marion County as 
nonattainment under the 1-hour ozone standard, VOC sources that existed 
after July 1, 1990, in Marion County are also subject to RACT rules. 
Sources in the surrounding Counties (Boone, Hancock, Hamilton, Johnson, 
Morgan, and Shelby Counties) are subject to portions of 326 IAC 8-4 
(326 IAC 8-4-4 through 8-4-7 and 8-4-9) that do not apply Statewide. 
These emission control requirements have led to reduced VOC emissions 
in the Central Indiana Area.
    Finally, the State notes that several nationwide rules have been 
implemented (or will be implemented in the near future), resulting in 
VOC and NOX emission reductions subsequent to 2002 in the 
Central Indiana Area and Statewide. These emission reduction rules 
include: (a) Tier II emission standards for vehicles and gasoline 
sulfur standards; (b) heavy-duty diesel engine standard and low-sulfur 
diesel fuel standards; and, (c) Clean Air Non-road Diesel Rule. These 
emission reduction rules will provide additional emission reductions in 
the future.
    The State commits to maintain existing emission control measures 
after the redesignation of the Central Indiana Area to attainment of 
the 8-hour ozone NAAQS. If an emission control rule must be changed, 
the State will submit the rule change as a requested SIP revision to 
the EPA. IDEM maintains that it has the legal authority and necessary 
resources to enforce any violations of the existing emission control 
rules.

E. Does the Central Indiana Area Have a Fully Approvable Ozone 
Maintenance Plan Pursuant to Section 175A of the CAA?

    In conjunction with its request to redesignate the Central Indiana 
Area to attainment of the 8-hour ozone NAAQS, Indiana submitted a SIP 
revision request to provide for maintenance of the 8-hour ozone NAAQS 
in the Central Indiana Area through 2020, exceeding the 10 year minimum 
maintenance period required by the CAA.
1. What Is Required in an Ozone Maintenance Plan?
    Section 175A of the CAA sets forth the required elements of air 
quality maintenance plans for areas seeking redesignation to attainment 
of a NAAQS. Under section 175A, a maintenance plan must demonstrate 
continued attainment of the applicable NAAQS for at least 10 years 
after the Administrator approves the redesignation to attainment. Eight 
years after the redesignation, the State must submit a revised 
maintenance plan which demonstrates that maintenance of the standard 
will continue for 10 years following the initial 10-year maintenance 
period. The maintenance plan must commit the State to submit this 
revised maintenance plan to the EPA. To address the possibility of 
future NAAQS violations, the maintenance plan must contain such 
contingency measures, with a schedule for implementation, as EPA deems 
necessary, to assure prompt correction of any future NAAQS violations.
    The September 4, 1992, John Calcagni memorandum provides additional 
guidance on the content of maintenance plans. An ozone maintenance plan 
should, at minimum, address the following items: (1) The attainment VOC 
and NOX emissions inventories; (2) a maintenance 
demonstration showing maintenance for the first 10 years of the 
maintenance period; (3) a commitment to maintain the existing 
monitoring network; (4) factors and procedures to be used for 
verification of continued attainment; and, (5) a contingency plan to 
prevent and/or correct a future violation of the NAAQS.
2. What Are the Attainment Emission Inventories for the Central Indiana 
Area?
    IDEM estimated future VOC and NOX emissions for the 
Central Indiana Area for 2010, 2015, and 2020 to compare with the 2005 
VOC and NOX emissions for this area and to demonstrate 
maintenance of the ozone standard in this area. Future emissions were 
estimated for point (significant stationary sources), area (smaller 
point and/or widely distributed stationary sources), on-road mobile, 
and non-road mobile sources for this area. To develop the 2010, 2015, 
and 2020 emissions, IDEM projected the 2002 base year emissions 
applying various source category-specific growth factors and emission 
control factors or growth estimates collected directly from the 
sources. The following summarizes the procedures and data sources used 
by IDEM to derive the projected emissions.

[[Page 41666]]

a. Point Sources
    The primary source of point source information for the base period, 
2002, was facility-specific emissions and source activity data 
collected annually by the State for inclusion in IDEM's annual 
emissions statement database. This information includes emissions, 
process rates, source operating schedules, emissions control data, and 
other relevant source information. Emission growth factors and future 
emission control factors provided by the Lake Michigan Air Directors 
Consortium (LADCO) were used to project the point source VOC and non-
EGU NOX emissions to 2005, 2010, 2015, and 2020. The 
NOX emissions from EGUs were projected based on the EGU 
NOX emission budget contained in the Indiana NOX 
rule.
b. Area Sources
    Area sources are those sources which are generally small, numerous, 
and have not been inventoried as specific point, mobile, or non-road 
mobile sources. The emissions for these sources are generally 
calculated using various surrogates, such as population by county, 
estimates of employees in various occupational groups, etc., and 
grouped by general source types. The area source emissions are 
typically defined at the county level.
    IDEM developed area source emissions for a 2002 periodic emissions 
inventory submitted to the EPA. The surrogate data used to derive these 
emissions were grown to 2005, 2010, 2015, and 2020. The projected 
surrogates or other assumed annual growth rates were used to calculate 
the projected VOC and NOX emissions for each area source 
type.
c. On-Road Mobile Sources
    On-road mobile source emissions were calculated using the MOBILE 
6.2 emission factor model and other mobile source data, including 
estimated traffic levels and vehicle type and age distribution data, 
extracted from the area's travel-demand model.
d. Non-Road Mobile Sources
    Non-road mobile source emissions were based on emissions in the 
2002 National Emissions Inventory (NEI). The 2005, 2010, 2015, and 2020 
non-road mobile source emissions were grown from the 2002 NEI 
emissions. To address concerns about the accuracy of the emissions 
derived for some of the non-road mobile source categories in EPA's non-
road emissions model, LADCO contracted with several companies to review 
the base data used in the emissions model. A contractor also estimated 
emissions for two non-road source categories not included in EPA's non-
road emissions model, commercial marine vessels and railroads. 
Recreational motorboat emissions were significantly updated. The 
equipment population and spatial surrogate data for other source types 
were also significantly updated. A new non-road estimation model was 
also provided by the EPA for the 2002 emissions analysis. The updated 
2002 emissions were used to project the emissions to 2005, 2010, 2015, 
and 2020.
3. Has the State Demonstrated Maintenance of the Ozone Standard in the 
Central Indiana Area?
    As part of the redesignation request submittal, IDEM requested a 
revision of the Indiana SIP to incorporate an ozone maintenance plan 
for the Central Indiana Area as required under section 175A of the CAA. 
The maintenance plan demonstrates maintenance of the 8-hour ozone NAAQS 
through 2020 by documenting the attainment year (2005) and future VOC 
and NOX emissions. Indiana has shown that VOC and 
NOX emissions will remain below the attainment year levels 
through 2020. An ozone maintenance demonstration need not be based on 
ozone modeling. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001), Sierra 
Club v. EPA, 375 F.3d 537 (7th Cir. 2004). See also 66 FR 53094, 53099-
53100 (October 19, 2001), and 68 FR 25430-25432 (May 12, 2003).
    Table 5 summarizes the VOC and NOX emissions projected 
to occur in the entire Central Indiana Area during the demonstrated 
maintenance period. The State of Indiana chose 2020 as a maintenance 
year to meet the 10-year maintenance requirement of the CAA, allowing 
several years for the EPA to complete the redesignation rulemaking 
process. The State also chose 2010 and 2015 as interim years to 
demonstrate that VOC and NOX emissions will remain below the 
attainment year levels throughout the maintenance period.

                     Table 5.--VOC and NOX Emissions In the Central Indiana Area During the
                                 Ozone Maintenance Period in Tons per Summer Day
----------------------------------------------------------------------------------------------------------------
                  Source sector                        2005            2010            2015            2020
----------------------------------------------------------------------------------------------------------------
                                                  VOC Emissions
----------------------------------------------------------------------------------------------------------------
Area............................................           94.85           99.29          106.31          100.81
Point...........................................           13.54           14.34           16.00           14.85
Non-Road Mobile.................................           30.36           28.77           24.06           25.29
On-Road Mobile..................................           60.50           44.19           35.33           26.47
                                                 ---------------------------------------------------------------
    Total.......................................          199.25          186.59          181.70          167.42
----------------------------------------------------------------------------------------------------------------
                                                  NOX Emissions
----------------------------------------------------------------------------------------------------------------
Area............................................           24.26           22.39           23.12           22.74
Point...........................................           56.63           33.31           32.41           32.77
Non-Road Mobile.................................           22.55           33.05           24.06           18.36
On-Road Mobile..................................          116.74           78.40           55.42           32.45
                                                 ---------------------------------------------------------------
    Total.......................................          220.18          167.15          135.01          106.32
----------------------------------------------------------------------------------------------------------------

    IDEM notes that the State's EGU NOX emissions control 
rules stemming from EPA's NOX SIP call and CAIR, to be 
implemented primarily after 2006, will further lower NOX 
emissions throughout the State of Indiana and upwind of the Central 
Indiana Area. This will result in reduced ozone and ozone precursor 
transport into the Central Indiana Area, and will support maintenance 
of the 8-hour ozone NAAQS in this area.

[[Page 41667]]

    The emissions projections for the Central Indiana Area lead to the 
conclusion that this area should maintain the 8-hour ozone NAAQS 
throughout the required 10-year maintenance period and through 2020. 
The projected decreases in local VOC and local and regional 
NOX emissions indicate that peak ozone levels in the Central 
Indiana Area may further decline during the maintenance period.
    We conclude that IDEM has successfully demonstrated that the 8-hour 
ozone standard will be maintained in the Central Indiana Area.
4. What Is the Contingency Plan for the Central Indiana Area?
    Section 175A of the CAA requires that a maintenance plan include 
such contingency measures as EPA deems necessary to assure that the 
State will promptly correct a violation of the NAAQS that might occur 
after redesignation. The maintenance plan must identify the contingency 
measures to be considered for possible adoption, a schedule and 
procedure for adoption and implementation of the selected contingency 
measures, and a time limit for action by the State. The State should 
also identify specific indicators to be used to determine when the 
contingency measures need to be adopted and implemented. The 
maintenance plan must include a commitment that the State will continue 
to implement all emission control measures that were included in the 
SIP before the redesignation of the area to attainment. See section 
175A(d) of the CAA.
    As required by the CAA, Indiana has adopted a contingency plan to 
address possible future ozone air quality problems in the Central 
Indiana Area. The contingency plan has two levels of actions/responses 
depending on whether a violation of the 8-hour ozone standard is only 
threatened (Warning Level Response) or has actually occurred or appears 
to be imminent (Action Level Response).
    A Warning Level Response will be triggered whenever an annual (1-
year) fourth-high monitored 8-hour ozone concentration of 0.089 ppm 
occurs in a single ozone season, or a 2-year average fourth-high 
monitored 8-hour ozone concentration of 0.085 ppm or higher occurs 
within the Central Indiana maintenance area (within the Central Indiana 
Area). A Warning Level Response will consist of a study to determine 
whether the high ozone concentration indicates a trend toward higher 
ozone values or whether emissions appear to be increasing. The study 
will determine if the trend toward high ozone concentrations is likely 
to continue. If so, the emission control measures necessary to reverse 
the trend, taking into consideration ease and timing of implementation 
and economic and social considerations, will be adopted and 
implemented. Implementation of necessary emission controls will take 
place no later than 12 months from the conclusion of the most recent 
ozone season (September 30).
    An Action Level Response will be triggered when a violation of the 
8-hour ozone standard is monitored, when the three-year average annual 
fourth-high daily maximum 8-hour concentration is 0.085 ppm or higher 
at any monitor, in the Central Indiana Area. In the event that an 
Action Level Response is triggered and is not found to be due to an 
exceptional event, malfunction, or noncompliance with a permit 
condition or rule requirement, IDEM will determine the additional 
emission control measures needed to assure future attainment of the 
ozone NAAQS. Emission control measures that can be implemented in a 
short time will be selected in order to be in place within 18 months 
from the close of the ozone season in which the Action Level Response 
is triggered.
    Assuming that new emission controls are needed, if a new emission 
control measure is already promulgated and scheduled to be implemented 
at the Federal or State level and that control measure is determined to 
be sufficient to address the upward trend in ozone concentrations, 
additional local emission control measures may be unnecessary. The 
State will submit to EPA an analysis to demonstrate that the proposed 
emission control measures are adequate to return the area to attainment 
or to correct the air quality trend.
    The selection of emission control measures for implementation will 
be based on cost-effectiveness, emission reduction potential, economic 
and social considerations, and other factors that IDEM deems 
appropriate. IDEM will solicit input from interested and affected 
persons in the maintenance area prior to selecting appropriate 
contingency measures. IDEM has not specified a definitive list of 
measures that will be considered and may consider emission control 
measures not included in the list of potential emission control 
measures summarized in the ozone maintenance plan.
    The ozone maintenance plan lists the following emission control 
measures as possible contingency measures that have been selected and 
reviewed by the Central Indiana Air Quality Advisory Group (a group of 
industrial representatives, individuals, and local government 
representatives from the Central Indiana Area):
     Lower Reid vapor pressure gasoline;
     Broader geographic applicability of existing emission 
control requirements;
     Tightening of RACT on existing sources covered by EPA 
control technique guidelines issued in response to the 1990 Clean Air 
Act revisions;
     Application of RACT to smaller existing sources;
     Vehicle inspection/maintenance program;
     One or more transportation control measure sufficient to 
achieve at least a half of a percent (0.5 percent) reduction of actual 
area-wide VOC emissions. Transportation control measures will be 
selected from the following based on the factors discussed above and 
after consultation with the affected local governments:
    (a) Trip reduction programs, including employer-based 
transportation management plans, area-wide rideshare programs, work 
schedule changes, and telecommuting;
    (b) Transit improvements;
    (c) Traffic flow improvements; and,
    (d) Other new or innovative transportation measures;
     Alternative fuel and diesel retrofit programs for fleet 
vehicle operations;
     VOC or NOX emission offsets for new and 
modified major sources;
     VOC or NOX emission offsets for new and 
modified minor sources;
     Increase the ratio of emission offsets required for new 
sources; and,
     VOC or NOX emission controls on new minor 
sources.
    No contingency measure will be implemented without providing the 
opportunity for public participation in the selection process, during 
which the relative costs and benefits of individual emission control 
measures will be evaluated.
5. Has the State Committed to Update the Ozone Maintenance Plan in 
Eight Years After the Redesignation of the Central Indiana Area to 
Attainment of the 8-Hour Ozone NAAQS?
    As required by section 175A(b) of the CAA, the State commits to 
review the maintenance plan 8 years after redesignation of the Central 
Indiana Area and to submit a revised maintenance plan to the EPA 
extending the maintenance period for 10 years beyond the initial 10-
year maintenance period.
    We find Indiana's ozone maintenance demonstration, contingency 
plan, and commitment to update the maintenance plan to be acceptable.

[[Page 41668]]

V. Has the State Adopted Acceptable Motor Vehicle Emissions Budgets for 
the End Year of the Ozone Maintenance Period Which Can Be Used To 
Support Conformity Determinations?

A. How Are the Motor Vehicle Emission Budgets Developed, and What Are 
the Motor Vehicle Emission Budgets for the Central Indiana Area?

    Under the CAA, States are required to submit, at various times, SIP 
revisions and ozone maintenance plans for applicable areas (for ozone 
nonattainment areas and for areas seeking redesignations to attainment 
of the ozone standard or revising existing ozone maintenance plans). 
These emission control SIP revisions (e.g., reasonable further progress 
and attainment SIP revisions), including ozone maintenance plans, must 
create MVEBs based on on-road mobile source emissions that are 
allocated to highway and transit vehicle use and that, together with 
emissions from all other sources in the area, will provide for 
attainment or maintenance of the ozone NAAQS.
    Under 40 CFR part 93, MVEBs for an area seeking a redesignation to 
attainment of the NAAQS are established for the last year of the 
maintenance period (for the maintenance demonstration year). The MVEBs 
serve as ceilings on mobile source emissions from an area's planned 
transportation system, and are used to test planned transportation 
system changes or projects to assure compliance with the emission 
limits assumed in the SIP. 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 MVEBs in 
the SIP and how to revise the MVEBs if needed.
    Under section 176(c) of the CAA, new transportation projects, such 
as the construction of new highways, must ``conform'' to (i.e., be 
consistent with) the part of the SIP that addresses emissions from 
cars, trucks, and other on-road vehicles. Conformity to the SIP means 
that transportation activities should not cause new air quality 
standard violations, or delay timely attainment of the NAAQS. If a 
transportation plan does not conform, most new transportation projects 
that would expand the vehicle capacity of the roadways cannot go 
forward. Regulations at 40 CFR part 93 set forth EPA's policy, 
criteria, and procedures for demonstrating and assuring conformity of 
transportation activities to a SIP.
    When reviewing SIP revisions containing MVEBs, including attainment 
strategies, rate-of-progress plans, and maintenance plans, EPA must 
find that the MVEBs are ``adequate'' for use in determining 
transportation conformity. Once EPA finds the submitted MVEBs to be 
adequate for transportation conformity purposes, the MVEBs are used by 
State and Federal agencies in determining whether proposed 
transportation projects conform to the SIPs as required by section 
176(c) of the CAA. EPA's substantive criteria for determining the 
adequacy of MVEBs are specified in 40 CFR 93.118(e)(4).
    EPA's process of determining adequacy of MVEBs consists of three 
basic steps: (1) Providing public notification of a SIP submission; (2) 
providing the public the opportunity to comment on the MVEBs during a 
public comment period; and (3) making a finding of adequacy. The 
process of determining the adequacy of submitted SIP MVEBs was 
initially outlined in EPA's May 14, 1999, guidance, ``Conformity 
Guidance on Implementation of March 2, 1999, Conformity Court 
Decision.'' This guidance was finalized in the Transportation 
Conformity Rule Amendments for the ``New 8-Hour Ozone and PM2.5 
National Ambient Air Quality Standards and Miscellaneous Rule 
Amendments--Response to Court Decision and Additional Rule Change'' 
published on July 1, 2004 (69 FR 40004). EPA follows this guidance and 
rulemaking in making its adequacy determinations.
    The Transportation Conformity Rule, in 40 CFR 93.118(f), provides 
for adequacy findings through two mechanisms. First, 40 CFR 
93.118(f)(1) provides for posting a notice to the EPA conformity Web 
site at: http://www.epa.gov/otaq/Stateresources/transconf/adequacy.htm 

and providing a 30-day public comment period. Second, a mechanism is 
described in 40 CFR 93.118(f)(2) which provides that EPA can review the 
adequacy of an implementation plan submission simultaneously with its 
review of the implementation plan itself.
    The Central Indiana Area ozone maintenance plan contains VOC and 
NOX MVEBs for 2006 and 2020. An interagency group of 
consultation partners chose to include MVEBs for 2006 to assist in 
streamlining the transportation conformity process. The year 2006 was 
chosen because it represents one of the years the Central Indiana Area 
attained the 8-hour ozone standard and because the travel demand models 
used in transportation planning contain a defined mobile source network 
for 2006.
    The 2006 MVEBs are 54.32 tons VOC/day and 106.19 tons 
NOX/day. The 2020 MVEBs are 29.52 tons VOC/day and 35.69 
tons NOX/day. Note that the 2020 MVEBs contain safety 
margins (emission levels exceeding the on-road mobile source emissions 
levels actually projected for the area and included in the maintenance 
demonstration). See the 2020 on-road mobile source emissions specified 
in Table 5 above.
    The State is applying safety margins in specifying the 2020 MVEBs 
to accommodate the assumptions and associated potential estimate errors 
that are factored into the projection of future emission estimates. 
Since assumptions change over time or are shown to be incorrect, some 
errors may actually occur in estimated future emissions. Therefore, it 
is reasonable, if not necessary, to incorporate safety margins into the 
setting of MVEBs.
    A ``margin of safety'' is the difference between the attainment 
level emissions from all sources and the projected levels of emissions 
from all sources in the maintenance plan for the maintenance year. As 
noted in Table 5 above, the Central Indiana Area is projected to have a 
VOC margin of safety of 31.83 tons/day and a NOX margin of 
safety of 113.86 tons/day in 2020. These margins of safety 
significantly exceed the safety margins incorporated into the 2020 
MVEBs (the 2020 MVEB VOC safety margin is 3.05 tons/day and the 2020 
MVEB NOX safety margin is 3.24 tons/day, the differences 
between the 2020 MVEBs and the projected on-road mobile source 
emissions). Therefore, the safety margins incorporated into the 2020 
MVEBs will not threaten maintenance of the 8-hour ozone standard in the 
Central Indiana Area.
    No safety margins were applied to the 2006 MVEBs. These MVEBs are 
the on-road mobile emission estimates for this year.

B. Are the MVEBs Approvable?

    EPA, through this rulemaking, is proposing to approve the 2006 and 
2020 MVEBs for use in demonstrating transportation conformity in the 
Central Indiana Area because EPA has determined that the MVEBs are 
consistent with the emission control measures and future emissions 
projected in the SIP and because the Central Indiana Area can maintain 
attainment of the 8-hour ozone NAAQS for the required maintenance 
period with on-road mobile source emissions at the levels of the MVEBs. 
The VOC and NOX MVEBs are approvable because they maintain 
the total emissions for the

[[Page 41669]]

Central Indiana Area at or below the attainment year emission levels, 
as required by the transportation conformity regulations.

VI. What Are the Effects of EPA's Proposed Actions?

    Approval of the redesignation request would change the official 
designation of Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, 
Marion, Morgan, and Shelby Counties, Indiana for the 8-hour ozone 
NAAQS, found at 40 CFR part 81, from nonattainment to attainment. Final 
rulemaking approving the redesignation request would incorporate into 
the Indiana SIP a plan for maintaining the ozone NAAQS through 2020 in 
these Counties. The maintenance plan includes contingency measures to 
remedy possible future violations of the 8-hour ozone NAAQS, and 
establishes 2006 and 2020 MVEBs for these counties.

VII. Statutory and Executive Order Reviews

Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, September 30, 1993), this 
action is not a ``significant regulatory action'', and therefore, is 
not subject to review by the Office of Management and Budget.

Paperwork Reduction Act

    This proposed rule does not impose an information collection burden 
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).

Regulatory Flexibility Act

    This proposed action merely proposes to approve State law as 
meeting Federal requirements and imposes no additional requirements 
beyond those imposed by State law. Accordingly, the Administrator 
certifies that this proposed rule will not have a significant economic 
impact on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.).

Unfunded Mandates Reform Act

    Because this rule proposes to approve pre-existing requirements 
under State law and does not impose any additional enforceable duty 
beyond that required by State law, it does not contain any unfunded 
mandate or significantly or uniquely affect small governments, as 
described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4).

Executive Order 13132: Federalism

    This action also does not have Federalism implications because it 
does not have substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government, as specified in Executive Order 13132 (64 FR 43255, August 
10, 1999). This action merely proposes to approve a State rule 
implementing a Federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the Clean 
Air Act.

Executive Order 13175: Consultation and Coordination With Indian Tribal 
Governments

    This proposed rule also does not have tribal implications because 
it will not have a substantial direct effect on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian tribes, as specified by Executive 
Order 13175 (65 FR 67249, November 9, 2000).

Executive Order 13045: Protection of Children From Environmental Health 
and Safety Risks

    This proposed rule also is not subject to Executive Order 13045 
``Protection of Children from Environmental Health Risks and Safety 
Risks'' (62 FR 19885, April 23, 1997), because it is not economically 
significant.

Executive Order 13211: Actions That Significantly Affect Energy Supply, 
Distribution, or Use

    Because it is not a ``significant regulatory action'' under 
Executive Order 12866 or a ``significant regulatory action,'' this 
action is also not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355, May 22, 2001).

National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), 15 U.S.C. 272, requires Federal agencies to use 
technical standards that are developed or adopted by voluntary 
consensus to carry out policy objectives, so long as such standards are 
not inconsistent with applicable law or otherwise impractical. In 
reviewing SIP submissions, EPA's role is to approve State choices, 
provided that they meet the criteria of the Clean Air Act. Absent a 
prior existing requirement for the State to use voluntary consensus 
standards, EPA has no authority to disapprove a SIP submission for 
failure to use such standards, and it would thus be inconsistent with 
applicable law for EPA to use voluntary consensus standards in place of 
a program submission that otherwise satisfies the provisions of the 
Clean Air Act. Therefore, the requirements of section 12(d) of the NTTA 
do not apply.

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
regulations, Nitrogen dioxide, Ozone, Volatile organic compounds.

40 CFR Part 81

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

    Dated: July 23, 2007.
Bharat Mathur,
Acting Regional Administrator, Region 5.
[FR Doc. E7-14741 Filed 7-30-07; 8:45 am]

BILLING CODE 6560-50-P
