[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Proposed Rules]
[Pages 21797-21811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08031]


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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R05-OAR-2020-0125; FRL-10007-91-Region 5]


Air Plan Approval; Indiana; Lake and Porter Counties 
Redesignation to Attainment of the 2008 Ozone Standard and Section 
182(f) NOX RACT Waiver

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is proposing to find 
that the Chicago-Naperville, IL-IN-WI area (Chicago Area) is attaining 
the 2008 ozone National Ambient Air Quality Standard (NAAQS or 
standard) and to approve a request from the Indiana Department of 
Environmental Management (IDEM or Indiana) to redesignate the Indiana 
portion of the Chicago area to attainment for the 2008 ozone NAAQS 
because the request meets the statutory requirements for redesignation 
under the Clean Air Act (CAA). The Indiana portion of the Chicago 2008 
ozone area consists of Lake and Porter Counties in Northwest Indiana. 
Indiana submitted this request on February 27, 2020. EPA is also 
proposing to approve, as a revision to the Indiana State Implementation 
Plan (SIP), the State's plan for maintaining the 2008 ozone NAAQS 
through 2030 in the Chicago area. EPA is also proposing to approve a 
waiver, for the Indiana portion of the Chicago area (Lake and Porter 
Counties), from the oxides of nitrogen (NOX) requirements of 
section 182(f) of the CAA. Finally, EPA finds adequate and is proposing 
to approve Indiana's 2025 and 2030 volatile organic compound (VOC) and 
oxides of nitrogen (NOX) Motor Vehicle Emission Budgets 
(MVEBs) for the Indiana portion of the Chicago area (Lake and Porter 
Counties).

DATES: Comments must be received on or before May 20, 2020.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2020-0125 at http://www.regulations.gov or via email to 
aburano.douglas@epa.gov. For comments submitted at Regulations.gov, 
follow the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, 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, please contact the person 
identified in the ``For Further Information Contact'' section. For 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: Katie Mullen, Environmental Engineer, 
Attainment Planning and Maintenance Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 353-3490, 
Mullen.Kathleen@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. What is EPA proposing?
II. What is the background for these actions?
III. What are the criteria for redesignation?
IV. What is EPA's analysis of Indiana's redesignation request?
V. Has the state adopted approvable motor vehicle emission budgets?
VI. Section 182(f) NOX Exemption
VII. Proposed Actions
VIII. Statutory and Executive Order Reviews

I. What is EPA proposing?

    EPA is proposing to take several related actions. EPA is proposing 
to determine that the Chicago-Naperville, IL-IN-WI area (Chicago Area) 
is attaining the 2008 ozone NAAQS, based on quality-assured and 
certified monitoring data for 2017-2019 and that the Indiana portion of 
the Chicago area (Lake and Porter Counties) has met the requirements 
for redesignation under section 107(d)(3)(E) of the CAA. EPA is 
proposing to change the legal designation of the Indiana portion of the 
Chicago area from nonattainment to attainment for the 2008 ozone NAAQS. 
EPA is also proposing to approve, as a revision to the Indiana SIP, the 
state's maintenance plan (such approval being one of the CAA criteria 
for redesignation to attainment status) for the area. The maintenance 
plan is designed to keep the Chicago area in attainment of the 2008 
ozone NAAQS through 2030. Finally, EPA finds adequate and is proposing 
to approve the newly-established 2025 and 2030 MVEBs for the Indiana 
portion of the Chicago area (Lake and Porter Counties).

II. What is the background for these actions?

    EPA has determined that ground-level ozone is detrimental to human 
health. On March 27, 2008, EPA promulgated a revised 8-hour ozone NAAQS 
of 0.075 parts per million (ppm). See 73 FR 16436 (March 27, 2008). 
Under EPA's regulations at 40 CFR part 50, the 2008 ozone NAAQS is 
attained in an area when the 3-year average of the annual fourth 
highest daily maximum 8-hour average concentration is equal to or less 
than 0.075 ppm, when truncated after the thousandth decimal place, at 
all of the ozone monitoring sites in the area. See 40 CFR 50.15 and 
appendix P to 40 CFR part 50.
    Upon promulgation of a new or revised NAAQS, section 107(d)(1)(B) 
of the CAA requires EPA to designate as nonattainment any areas that 
are violating the NAAQS, based on the most recent 3 years of quality 
assured ozone monitoring data. The Chicago area was originally 
designated as a marginal nonattainment area for the 2008 ozone NAAQS on 
May 31, 2012 (77 FR 34221), effective July 20, 2012. EPA reclassified 
the Chicago area from marginal to moderate nonattainment on April 11, 
2016 (81 FR 26697), effective June 3, 2016. The Chicago area was again 
reclassified to serious on August 7, 2019 (84 FR 44238), effective 
September 23, 2019.

III. What are the criteria for redesignation?

    Section 107(d)(3)(E) of the CAA allows redesignation of an area to 
attainment of the NAAQS provided that: (1) The Administrator (EPA) 
determines that the area has attained the NAAQS; (2) the Administrator 
has fully approved the applicable implementation plan 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 
reductions in emissions resulting from

[[Page 21798]]

implementation of the applicable SIP, applicable Federal air pollutant 
control regulations, and other permanent and enforceable emission 
reductions; (4) the Administrator has fully approved a maintenance plan 
for the area as meeting the requirements of section 175A of the CAA; 
and (5) the state containing the area has met all requirements 
applicable to the area for the purposes of redesignation under section 
110 and part D of the CAA.
    On April 16, 1992, EPA provided guidance on redesignations in the 
General Preamble for the Implementation of Title I of the CAA 
Amendments of 1990 (57 FR 13498) and supplemented this guidance on 
April 28, 1992 (57 FR 18070). EPA has provided further guidance on 
processing redesignation requests in the following documents:

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

IV. What is EPA's analysis of Indiana's redesignation request?

A. Has the Chicago area attained the 2008 ozone NAAQS?

    For redesignation of a nonattainment area to attainment, the CAA 
requires EPA to determine that the entire Chicago-Naperville, IL-IN-WI 
2008 ozone area has attained the applicable NAAQS (CAA section 
107(d)(3)(E)(i)). An area is attaining the 2008 ozone NAAQS if it meets 
the 2008 ozone NAAQS, as determined in accordance with 40 CFR 50.15 and 
appendix U of part 50, based on 3 complete, consecutive calendar years 
of quality-assured air quality data for all monitoring sites in the 
area. To attain the NAAQS, the 3-year average of the annual fourth-
highest daily maximum 8-hour average ozone concentrations (ozone design 
values) at each monitor must not exceed 0.075 ppm. The air quality data 
must be collected and quality-assured in accordance with 40 CFR part 58 
and recorded in EPA's Air Quality System (AQS). Ambient air quality 
monitoring data for the 3-year period must also meet data completeness 
requirements. An ozone design value is valid if daily maximum 8-hour 
average concentrations are available for at least 90 percent of the 
days within the ozone monitoring seasons,\1\ on average, for the 3-year 
period, with a minimum data completeness of 75 percent during the ozone 
monitoring season of any year during the 3-year period. See section 4 
of appendix U to 40 CFR part 50.
---------------------------------------------------------------------------

    \1\ The ozone season is defined by state in 40 CFR 58 appendix 
D. The ozone season for Indiana is March-October. See, 80 FR 65292, 
65466-67 (October 26, 2015).
---------------------------------------------------------------------------

    EPA has reviewed the available ozone monitoring data from 
monitoring sites in the Chicago-Naperville, IL-IN-WI 2008 ozone area 
for the 2017-2019 period. These data have been quality assured, are 
recorded in the AQS, and have been certified. These data demonstrate 
that the Chicago area is attaining the 2008 ozone NAAQS. The annual 
fourth-highest 8-hour ozone concentrations and the 3-year average of 
these concentrations (monitoring site ozone design values) for each 
monitoring site are summarized in Table 1.

   Table 1--Annual Fourth High Daily Maximum 8-Hour Ozone Concentrations and 3-Year Average of the Fourth High
         Daily Maximum 8-Hour Ozone Concentrations for the Chicago-Naperville, IL-IN-WI 2008 Ozone Area
                                                      [ppm]
----------------------------------------------------------------------------------------------------------------
                                                                       Year                           Average
             Site                    County      ---------------------------------------------------------------
                                                       2017            2018            2019          2017-2019
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
55-059-0019...................  Kenosha.........           0.079           0.079           0.067           0.075
55-059-0025...................  Kenosha.........           0.076           0.080           0.063           0.073
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
17-031-0001...................  Cook............           0.078           0.079           0.070           0.075
17-031-0032...................  Cook............           0.074           0.076           0.071           0.073
17-031-0076...................  Cook............           0.078           0.074           0.065           0.072
17-031-1003...................  Cook............           0.060           0.073           0.069           0.067
17-031-1601...................  Cook............           0.070           0.068           0.068           0.068
17-031-3103...................  Cook............           0.061           0.065           0.064           0.063
17-031-4002...................  Cook............           0.068           0.072           0.064           0.068

[[Page 21799]]

 
17-031-4007...................  Cook............           0.071           0.075           0.066           0.070
17-031-4201...................  Cook............           0.070           0.083           0.069           0.074
17-031-7002...................  Cook............           0.073           0.084           0.069           0.075
17-043-6001...................  DuPage..........           0.069           0.071           0.070           0.070
17-089-0005...................  Kane............           0.069           0.072           0.071           0.070
17-097-1007...................  Lake............           0.074           0.074           0.066           0.071
17-111-0001...................  McHenry.........           0.070           0.074           0.070           0.071
17-197-1011...................  Will............           0.068           0.071           0.060           0.066
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
18-089-0022...................  Lake............           0.070           0.071           0.065           0.068
18-089-2008...................  Lake............           0.069           0.062           0.065           0.065
18-127-0024...................  Porter..........           0.072           0.071           0.068           0.070
18-127-0026...................  Porter..........           0.077           0.071           0.071           0.073
----------------------------------------------------------------------------------------------------------------

    The Chicago area's 3-year ozone design value for 2017-2019 is 0.075 
ppm,\2\ which meets the 2008 ozone NAAQS. Therefore, in this action, 
EPA proposes to determine that the Chicago area is attaining the 2008 
ozone NAAQS.
---------------------------------------------------------------------------

    \2\ The monitor ozone design value for the monitor with the 
highest 3-year averaged concentration.
---------------------------------------------------------------------------

    EPA will not take final action to determine that the Chicago area 
is attaining the NAAQS nor to approve the redesignation of the Indiana 
portion of the Chicago area if the design value of a monitoring site in 
the area violates the NAAQS after proposal but prior to final approval 
of the redesignation. As discussed in section IV.D.3. below, Indiana 
has committed to continue monitoring ozone in this area to verify 
maintenance of the 2008 ozone NAAQS.

B. Has Indiana met all applicable requirements of section 110 and part 
D of the CAA for the Indiana portion of the Chicago area, and does 
Indiana have a fully approved SIP for the area under section 110(k) of 
the CAA?

    As criteria for redesignation of an area from nonattainment to 
attainment of a NAAQS, 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 (see section 107(d)(3)(E)(v) of the CAA). In 
addition, with the exception of the section 182(f) NOX 
exemption, the state has a fully approved SIP under section 110(k) of 
the CAA (see section 107(d)(3)(E)(ii) of the CAA). EPA finds that 
Indiana has met all applicable SIP requirements, for purposes of 
redesignation, under section 110 and part D of title I of the CAA 
(requirements specific to nonattainment areas for the 2008 ozone 
NAAQS). Additionally, EPA finds that all applicable requirements of the 
Indiana SIP for the area have been fully approved under section 110(k) 
of the CAA. In making these determinations, EPA ascertained which CAA 
requirements are applicable to the Indiana portion of the Chicago area, 
if applicable, whether the required Indiana SIP elements are fully 
approved under section 110(k) and part D of the CAA. As discussed more 
fully below, SIPs must be fully approved only with respect to currently 
applicable requirements of the CAA.
    The September 4, 1992 Calcagni memorandum describes EPA's 
interpretation of section 107(d)(3)(E) of the CAA. Under this 
interpretation, a state and the area it wishes to redesignate must meet 
the relevant CAA requirements that are 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 60 FR 12459, 
12465-66 (March 7, 1995) (redesignation of 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 
request remain applicable until a redesignation to attainment is 
approved but are not required as a prerequisite to redesignation. See 
section 175A(c) of the CAA. Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 
2004). See also 68 FR 25424, 25427 (May 12, 2003) (redesignation of the 
St. Louis/East St. Louis area to attainment of the 1-hour ozone NAAQS).
1. Indiana Has Met All Applicable Requirements of Section 110 and Part 
D of the CAA Applicable to the Indiana Portion of the Chicago Area for 
Purposes of Redesignation
a. Section 110 General Requirements for Implementation Plans
    Section 110(a)(2) of the CAA delineates the general requirements 
for a SIP. Section 110(a)(2) provides that the SIP must have been 
adopted by the state after reasonable public notice and hearing, and 
that, among other things, it must: (1) Include enforceable emission 
limitations and other control measures, means or techniques necessary 
to meet the requirements of the CAA; (2) provide for establishment and 
operation of appropriate devices, methods, systems and procedures 
necessary to monitor ambient air quality; (3) provide for 
implementation of a source permit program to regulate the modification 
and construction of stationary sources within the areas covered by the 
plan; (4) include provisions for the implementation of part C 
prevention of significant deterioration (PSD) and part D new source 
review (NSR) permit programs; (5) include provisions for stationary 
source emission control measures, monitoring, and reporting; (6) 
include provisions for air quality modeling; and, (7) provide for 
public and local agency participation in planning and emission control 
rule development.
    Section 110(a)(2)(D) of the CAA requires SIPs to contain measures 
to prevent sources in a state from

[[Page 21800]]

significantly contributing to air quality problems in another state. To 
implement this provision, EPA has required certain states to establish 
programs to address transport of certain air pollutants, e.g., 
NOX SIP call, Clean Air Interstate Rule (CAIR), Cross-State 
Air Pollution Rule (CSAPR). However, like many of the 110(a)(2) 
requirements, the section 110(a)(2)(D) SIP requirements are not linked 
with a particular area's ozone designation and classification. EPA 
concludes that the SIP requirements linked with the area's ozone 
designation and classification are the relevant measures to evaluate 
when reviewing a redesignation request for the area. The section 
110(a)(2)(D) requirements, where applicable, continue to apply to a 
state regardless of the designation of any one particular area within 
the state. Thus, we believe these requirements are not applicable 
requirements for purposes of redesignation. See 65 FR 37890 (June 15, 
2000), 66 FR 50399 (October 19, 2001), 68 FR 25418, 25426-27 (May 13, 
2003).
    In addition, EPA believes that other section 110 elements that are 
neither connected with nonattainment plan submissions nor linked with 
an area's ozone attainment status are not applicable requirements for 
purposes of redesignation. The area will still be subject to these 
requirements after the area is redesignated to attainment of the 2008 
ozone NAAQS. 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) 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 of 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 have reviewed Indiana's SIP and have concluded that it meets the 
general SIP requirements under section 110 of the CAA, to the extent 
those requirements are applicable for purposes of redesignation.\3\
---------------------------------------------------------------------------

    \3\ EPA has previously approved provisions of the Indiana SIP 
addressing section 110 elements under the 2008 ozone NAAQS; 80 FR 
23713. 84 FR 46889.
---------------------------------------------------------------------------

b. Part D Requirements
    Section 172(c) of the CAA sets forth the basic requirements of air 
quality plans for states with nonattainment areas that are required to 
submit them pursuant to section 172(b). Subpart 2 of part D, which 
includes section 182 of the CAA, establishes specific requirements for 
ozone nonattainment areas depending on the areas' nonattainment 
classifications.
    The Chicago area is classified as serious under subpart 2 for the 
2008 ozone NAAQS. As such, the area is subject to the subpart 1 
requirements contained in section 172(c) and section 176. Similarly, 
the area is subject to the subpart 2 requirements contained in section 
182(a), (b), and (c) (marginal, moderate, and serious nonattainment 
area requirements). A thorough discussion of the requirements contained 
in sections 172(c) and 182 can be found in the General Preamble for 
Implementation of Title I (57 FR 13498).
i. Subpart 1 Section 172 Requirements
    CAA Section 172(b)requires states to submit SIPs meeting the 
requirements of section 172(c) no later than 3 years from the date of 
the nonattainment designation. Section 172(c)(1) requires the plans for 
all nonattainment areas to provide for the implementation of all 
reasonably available control measures (RACM) as expeditiously as 
practicable and to provide for attainment of the primary NAAQS. Under 
this requirement, a state must consider all available control measures, 
including reductions that are available from adopting reasonably 
available control technology (RACT) on existing sources, for a 
nonattainment area and adopt and implement such measures as are 
reasonably available in the area as components of the area's attainment 
demonstration. EPA approved Indiana's VOC RACT plan on February 13, 
2019 (84 FR 3711). Because attainment has been reached in the Chicago 
area, no additional measures are needed to provide for attainment and 
section 172(c)(1) requirements are no longer considered to be 
applicable, as long as the area continues to attain the standard until 
redesignation. See 40 CFR 51.918.
    The reasonable further progress (RFP) requirement under section 
172(c)(2) is the progress that must be made toward attainment. EPA 
approved Indiana's RFP plan and RFP contingency measures on February 
13, 2019 (84 FR 3711).
    Section 172(c)(3) requires submission and approval of a 
comprehensive, accurate and current inventory of actual emissions. This 
requirement was superseded by the inventory requirement in section 
182(a)(1) discussed below.
    Section 172(c)(4) requires the identification and quantification of 
allowable emissions for major new and modified stationary sources in 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 previously approved 
Indiana's nonattainment NSR program on February 13, 2019 (84 FR 3711). 
Nonetheless, EPA has determined that, since PSD requirements will apply 
after redesignation, areas being redesignated need not comply with the 
requirement that the 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.'' 
Indiana has demonstrated that the Indiana portion of the Chicago area 
will be able to maintain the 2008 ozone NAAQS without part D NSR in 
effect; therefore, EPA concludes that the state need not have a fully 
approved part D NSR program prior to approval of the redesignation 
request. 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); and 
Grand Rapids, Michigan (61 FR 31834-31837, June 21, 1996). Indiana's 
PSD program will become effective in the Indiana portion of the Chicago 
area upon redesignation to attainment. EPA approved Indiana's PSD 
program on May 20, 2004 (69 FR 29071).
    Section 172(c)(6) requires the SIP to contain control measures 
necessary to provide for attainment of the standard. Because attainment 
has been reached, no additional measures are needed to provide for 
attainment.
    Section 172(c)(7) requires the SIP to meet the applicable 
provisions of section 110(a)(2). As noted above, we believe the Indiana 
SIP meets the

[[Page 21801]]

requirements of section 110(a)(2) for purposes of redesignation.
    Section 172(c)(9) requires the SIP to provide for the 
implementation of contingency measures if the area fails to make 
reasonably further progress or to attain the NAAQS by the attainment 
deadline. As noted previously, EPA approved Indiana's contingency 
measures for purposes of RFP on February 13, 2019 (84 FR 3711). With 
respect to contingency measures for failure to attain the NAAQS by the 
attainment deadline, this requirement is not relevant for purposes of 
redesignation because the Chicago area has demonstrated monitored 
attainment of the 2008 ozone NAAQS. (General Preamble, 57 FR 13564). 
See also 40 CFR 51.918.
ii. Section 176 Conformity Requirements
    Section 176(c) of the CAA requires states to establish criteria and 
procedures to ensure that federally supported or funded projects 
conform to the air quality planning goals in the applicable SIP. The 
requirement to determine conformity applies to transportation plans, 
programs and projects that are developed, funded or approved under 
title 23 of the United States Code (U.S.C.) and the Federal Transit Act 
(transportation conformity) as well as to all other federally supported 
or funded projects (general conformity). State transportation 
conformity SIP revisions must be consistent with Federal conformity 
regulations relating to consultation, enforcement and enforceability 
that EPA promulgated pursuant to its authority under the CAA.
    EPA interprets the conformity SIP requirements \4\ as not applying 
for purposes of evaluating a redesignation request under section 107(d) 
because state conformity rules are still required after redesignation 
and Federal conformity rules apply where state conformity rules have 
not been approved. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001) 
(upholding this interpretation); see also 60 FR 62748 (December 7, 
1995) (redesignation of Tampa, Florida). Nonetheless, Indiana has an 
approved conformity SIP for the Indiana portion of the Chicago area. 
See 84 FR 3711 (February 13, 2019).
---------------------------------------------------------------------------

    \4\ 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 SIPs requiring the development of Motor 
Vehicle Emission Budgets (MVEBs), such as control strategy SIPs and 
maintenance plans.
---------------------------------------------------------------------------

iii. Subpart 2 Section 182(a), (b), and (c) Requirements
    Section 182(a)(1) requires states to submit a comprehensive, 
accurate, and current inventory of actual emissions from sources of VOC 
and NOX emitted within the boundaries of the ozone 
nonattainment area. EPA approved Indiana's base year emissions 
inventory for the Indiana portion of the Chicago area on April 7, 2017 
(82 FR 16934) and February 13, 2019 (84 FR 3711).
    Under section 182(a)(2)(A), states with ozone nonattainment areas 
that were designated prior to the enactment of the 1990 CAA amendments 
were required to submit, within six months of classification, all rules 
and corrections to existing VOC RACT rules that were required under 
section 172(b)(3) prior to the 1990 CAA amendments. The Indiana portion 
of the Chicago area is not subject to the section 182(a)(2) RACT ``fix 
up'' requirement for the 2008 ozone NAAQS because it was designated as 
nonattainment for this standard after the enactment of the 1990 CAA 
amendments and because Indiana complied with this requirement for the 
Indiana portion of the Chicago area under the prior 1-hour ozone NAAQS. 
See 57 FR 8082 (March 6, 1992).
    Section 182(a)(2)(B) requires each state with a marginal ozone 
nonattainment area that implemented or was required to implement a 
vehicle inspection and maintenance (I/M) program prior to the 1990 CAA 
amendments to submit a SIP revision for an I/M program no less 
stringent than that required prior to the 1990 CAA amendments or 
already in the SIP at the time of the CAA amendments, whichever is more 
stringent. For the purposes of the 2008 ozone standard and the 
consideration of Indiana's redesignation request for this standard, the 
Indiana portion of the Chicago area is not subject to the section 
182(a)(2)(B) requirement because the area was designated as 
nonattainment for the 2008 ozone standard after the enactment of the 
1990 CAA amendments and because Indiana complied with this requirement 
for the Indiana portion of the Chicago area under the prior 1-hour 
ozone NAAQS.
    Section 182(a)(3)(B) requires the submission of an emission 
statement SIP. EPA approved Indiana's emission statement SIP for the 
Indiana portion of the Chicago area for the 2008 ozone NAAQS on April 
7, 2017 (82 FR 16934) and on February 13, 2019 (84 FR 3711).
    Section 182(b)(1) requires the submission of an attainment 
demonstration and RFP plan. Indiana submitted an attainment 
demonstration and RFP plan for the Indiana portion of the Chicago 2008 
ozone NAAQS moderate nonattainment area on February 13, 2019 (84 FR 
3711).
    EPA approved Indiana's RFP plan and RFP contingency measures for 
the Indiana portion of the Chicago area for the 2008 ozone NAAQS on 
February 13, 2019 (84 FR 3711). Because attainment has been reached, 
section 182(b)(1) requirements are no longer considered to be 
applicable as long as the area continues to attain the standard. If EPA 
finalizes approval of the redesignation of the area, EPA will take no 
further action on the attainment demonstration submitted by Indiana.
    Section 182(b)(2) requires states with moderate nonattainment areas 
to implement VOC RACT with respect to each of the following: (1) All 
sources covered by a Control Technology Guideline (CTG) document issued 
between November 15, 1990, and the date of attainment; (2) all sources 
covered by a CTG issued prior to November 15, 1990; and, (3) all other 
major non-CTG stationary sources. If no major non-CTG sources of VOC 
emissions or no sources in a CTG category exist in an applicable 
nonattainment area, a state may submit a negative declaration for that 
category. Indiana has adopted and submitted VOC RACT rules and negative 
source declarations to cover all applicable CTGs, and major non-CTG 
sources. EPA approved Indiana's Negative Declaration for the Oil and 
Gas CTG for the Indiana portion of the Chicago area for the 2008 ozone 
NAAQS on December 13, 2019 (84 FR 68050). In a final rulemaking 
published on February 13, 2019 (84 FR 3711), we concluded that Indiana 
has complied with all section 182(b)(2) RACT requirements for the 2008 
ozone NAAQS.
    Section 182(b)(3) requires states to adopt Stage II gasoline vapor 
recovery regulations. On May 16, 2012 (77 FR 28772), EPA determined 
that the use of onboard vapor recovery technology for capturing 
gasoline vapor when gasoline-powered vehicles are refueled is in 
widespread use throughout the highway motor vehicle fleet and waived 
the requirement that current and former ozone nonattainment areas 
implement Stage II vapor recovery systems on gasoline pumps.
    The requirements for an I/M program for a moderate ozone 
nonattainment area are found in Section 182(b)(4). EPA approved 
Indiana's I/M program certification for the Indiana portion of the 
Chicago area for the 2008 ozone NAAQS on February 13, 2019 (84 FR 
3711).

[[Page 21802]]

    Regarding the new source permitting and offset requirements of 
sections 182(a)(2)(C), 182(a)(4), and 182(b)(5), Indiana currently has 
a fully-approved part D NSR program in place. EPA approved Indiana's 
NSR SIP on February 13, 2019 (84 FR 3711). EPA approved Indiana's PSD 
program on May 20, 2004 (69 FR 29071). The state's PSD program will 
become effective in the Indiana portion of the Chicago area if EPA 
approves the state's redesignation request.
    Section 182(f) establishes NOX requirements for ozone 
nonattainment areas. However, it provides that these requirements do 
not apply to an area if the Administrator determines that 
NOX reductions would not contribute to attainment. As 
discussed in section VI. below, we are proposing such a determination 
for the Indiana portion of the Chicago area as requested by Indiana. If 
the NOX waiver is approved as a final rule, Indiana need not 
have fully approved NOX control measures under section 
182(f) for the Chicago-Naperville, IL-IN-WI area to be redesignated to 
attainment.
    Section 182(c) contains the requirements for areas classified as 
serious. On August 23, 2019 (84 FR 44238), EPA reclassified the Chicago 
area from moderate to serious and established August 3, 2020 as the due 
date for serious area SIP revisions. No requirements under section 
182(c) became due prior to Indiana's submission of the complete 
redesignation request for the Indiana portion of the Chicago area, and, 
therefore, none are applicable to the area for purposes of 
redesignation.
    Thus, as discussed above, if EPA approves the section 182(f) 
NOX exemption, the Indiana portion of the Chicago area will 
satisfy all applicable requirements for purposes of redesignation under 
section 110 and part D of title I of the CAA.
2. The Indiana Portion of the Chicago area (Lake and Porter Counties) 
has a Fully Approved SIP for Purposes of Redesignation Under Section 
110(k) of the CAA
    At various times, Indiana has adopted and submitted, and EPA has 
approved, provisions addressing the various SIP elements applicable for 
the ozone NAAQS. As discussed above, if EPA finalizes the section 
182(f) NOX exemption, EPA will have fully approved the 
Indiana SIP for the Chicago-Naperville, IL-IN-WI nonattainment area 
under section 110(k) for all requirements applicable for purposes of 
redesignation under the 2008 ozone NAAQS. EPA may rely on prior SIP 
approvals in approving a redesignation request (see the Calcagni 
memorandum at page 3; Southwestern Pennsylvania Growth Alliance v. 
Browner, 144 F.3d 984, 989-990 (6th Cir. 1998); Wall v. EPA, 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).

C. Are the air quality improvements in the Chicago area due to 
permanent and enforceable emission reductions?

    To redesignate an area from nonattainment to attainment, section 
107(d)(3)(E)(iii) of 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 the implementation of the SIP 
and applicable Federal air pollution control regulations and other 
permanent and enforceable emission reductions. EPA has determined that 
Indiana has demonstrated that that the observed ozone air quality 
improvement in the Indiana portion of the Chicago area is due to 
permanent and enforceable reductions in VOC and NOX 
emissions resulting from state measures adopted into the SIP and 
Federal measures.
    In making this demonstration, the state has calculated the change 
in emissions between 2011 and 2017. The reduction in emissions and the 
corresponding improvement in air quality over this time period can be 
attributed to a number of regulatory control measures that the Indiana 
portion of the Chicago area and other portions of the area have 
implemented in recent years. In addition, Indiana provided an analysis 
to demonstrate the improvement in air quality was not due to unusually 
favorable meteorology. Based on the information summarized below, EPA 
finds that Indiana has adequately demonstrated that the improvement in 
air quality is due to permanent and enforceable emissions reductions.
1. Permanent and Enforceable Emission Controls Implemented
a. Regional NOX Controls
    Clean Air Interstate Rule (CAIR)/Cross State Air Pollution Rule 
(CSAPR). Under the ``good neighbor provision'' of CAA section 
110(a)(2)(D)(i)(I), states are required to address interstate transport 
of air pollution. Specifically, the good neighbor provision provides 
that each state's SIP must contain provisions prohibiting emissions 
from within that state which will contribute significantly to 
nonattainment of the NAAQS, or interfere with maintenance of the NAAQS, 
in any other state.
    On May 12, 2005, EPA published CAIR, which required eastern states, 
including Indiana, to prohibit emissions consistent with annual and 
ozone season NOX budgets and annual sulfur dioxide 
(SO2) budgets (70 FR 25152). CAIR addressed the good 
neighbor provision for the 1997 ozone NAAQS and 1997 fine particulate 
matter (PM2.5) NAAQS and was designed to mitigate the impact 
of transported NOX emissions, a precursor of both ozone and 
PM2.5, as well as transported SO2 emissions, 
another precursor of PM2.5. The United States Court of 
Appeals for the District of Columbia Circuit (D.C. Circuit) remanded 
CAIR to EPA for replacement in 2008. North Carolina v. EPA, 531 F.3d 
896, modified, 550 F.3d 1176 (2008). While EPA worked on developing a 
replacement rule, implementation of the CAIR program continued as 
planned with the NOX annual and ozone season programs 
beginning in 2009 and the SO2 annual program beginning in 
2010.
    On August 8, 2011 (76 FR 48208), acting on the D.C. Circuit's 
remand, EPA published CSAPR to replace CAIR and to address the good 
neighbor provision for the 1997 ozone NAAQS, the 1997 PM2.5 
NAAQS, and the 2006 PM2.5 NAAQS. Through Federal 
Implementation Plans (FIPs), CSAPR required electric generating units 
(EGUs) in eastern states, including Indiana, to meet annual and ozone 
season NOX budgets and annual SO2 budgets 
implemented through new trading programs. After delays caused by 
litigation, EPA started implementing the CSAPR trading programs in 
2015, simultaneously discontinuing administration of the CAIR trading 
programs. On October 26, 2016, EPA published the CSAPR Update, which 
established, starting in 2017, a new ozone season NOX 
trading program for EGUs in eastern states, including Indiana, to 
address the good neighbor provision for the 2008 ozone NAAQS (81 FR 
74504). The CSAPR Update is estimated to result in a 20 percent 
reduction in ozone season NOX emissions from EGUs in the 
eastern United States, a reduction of 80,000 tons in 2017 compared to 
2015 levels. The reduction in NOX emissions from the 
implementation of CAIR and then CSAPR occurred by the attainment years 
and additional emission reductions will occur throughout the 
maintenance period.
c. Federal Emission Control Measures
    Reductions in VOC and NOX emissions have occurred 
statewide and

[[Page 21803]]

in upwind areas as a result of Federal emission control measures, with 
additional emission reductions expected to occur in the future. Federal 
emission control measures include the following.
    Tier 2 Emission Standards for Vehicles and Gasoline Sulfur 
Standards. On February 10, 2000 (65 FR 6698), EPA promulgated Tier 2 
motor vehicle emission standards and gasoline sulfur control 
requirements. These emission control requirements result in lower VOC 
and NOX emissions from new cars and light duty trucks, 
including sport utility vehicles. With respect to fuels, this rule 
required refiners and importers of gasoline to meet lower standards for 
sulfur in gasoline, which were phased in between 2004 and 2006. By 
2006, refiners were required to meet a 30 ppm average sulfur level, 
with a maximum cap of 80 ppm. This reduction in fuel sulfur content 
ensures the effectiveness of low emission-control technologies. The 
Tier 2 tailpipe standards established in this rule were phased in for 
new vehicles between 2004 and 2009. EPA estimates that, when fully 
implemented, this rule will cut NOX and VOC emissions from 
light-duty vehicles and light-duty trucks by approximately 76 and 28 
percent, respectively. NOX and VOC reductions from medium-
duty passenger vehicles included as part of the Tier 2 vehicle program 
are estimated to be approximately 37,000 and 9,500 tons per year, 
respectively, when fully implemented. As projected by these estimates 
and demonstrated in the on-road emission modeling for the Indiana 
portion of the Chicago area, the majority of these emission reductions 
occurred by the attainment years and additional emission reductions 
will occur throughout the maintenance period, as remaining older 
vehicles are replaced with newer, compliant model years.
    Tier 3 Emission Standards for Vehicles and Gasoline Sulfur 
Standards. On April 28, 2014 (79 FR 23414), EPA promulgated Tier 3 
motor vehicle emission and fuel standards to reduces both tailpipe and 
evaporative emissions and to further reduce the sulfur content in 
fuels. The rule will be phased in between 2017 and 2025. Tier 3 sets 
new tailpipe standards for the sum of VOC and NOX and for 
particulate matter. The VOC and NOX tailpipe standards for 
light-duty vehicles represent approximately an 80 percent reduction 
from today's fleet average and a 70 percent reduction in per-vehicle 
particulate matter (PM) standards. Heavy-duty tailpipe standards 
represent about a 60 percent reduction in both fleet average VOC and 
NOX and per-vehicle PM standards. The evaporative emissions 
requirements in the rule will result in approximately a 50 percent 
reduction from current standards and apply to all light-duty and on-
road gasoline-powered heavy-duty vehicles. Finally, the rule lowers the 
sulfur content of gasoline to an annual average of 10 ppm by January 
2017. As projected by these estimates and demonstrated in the on-road 
emission modeling for the Indiana portion of the Chicago area, some of 
these emission reductions occurred by the attainment years and 
additional emission reductions will occur throughout the maintenance 
period, as older vehicles are replaced with newer, compliant model 
years.
    Heavy-Duty Diesel Engine Rules. In July 2000, EPA issued a rule for 
on-road heavy-duty diesel engines that includes standards limiting the 
sulfur content of diesel fuel. Emissions standards for NOX, 
VOC and PM were phased in between model years 2007 and 2010. In 
addition, the rule reduced the highway diesel fuel sulfur content to 15 
ppm by 2007, leading to additional reductions in combustion 
NOX and VOC emissions. EPA has estimated future year 
emission reductions due to implementation of this rule. Nationally, EPA 
estimated that 2015 NOX and VOC emissions would decrease by 
1,260,000 tons and 54,000 tons, respectively. Nationally, EPA estimated 
that by 2030 NOX and VOC emissions will decrease by 
2,570,000 tons and 115,000 tons, respectively. As projected by these 
estimates and demonstrated in the on-road emission modeling for the 
Indiana portion of the Chicago area, some of these emission reductions 
occurred by the attainment years and additional emission reductions 
will occur throughout the maintenance period, as older vehicles are 
replaced with newer, compliant model years.
    Non-road Diesel Rule. On June 29, 2004 (69 FR 38958), EPA issued a 
rule adopting emissions standards for non-road diesel engines and 
sulfur reductions in non-road diesel fuel. This rule applies to diesel 
engines used primarily in construction, agricultural, and industrial 
applications. Emission standards are phased in for 2008 through 2015 
model years based on engine size. The SO2 limits for non-
road diesel fuels were phased in from 2007 through 2012. EPA estimates 
that when fully implemented, compliance with this rule will cut 
NOX emissions from these non-road diesel engines by 
approximately 90 percent. As projected by these estimates and 
demonstrated in the non-road emission modeling for the Indiana portion 
of the Chicago area, some of these emission reductions occurred by the 
attainment years and additional emission reductions will occur 
throughout the maintenance period.
    Non-road Spark-Ignition Engines and Recreational Engine Standards. 
On November 8, 2002 (67 FR 68242), EPA adopted emission standards for 
large spark-ignition engines such as those used in forklifts and 
airport ground-service equipment; recreational vehicles such as off-
highway motorcycles, all-terrain vehicles, and snowmobiles; and 
recreational marine diesel engines. These emission standards are phased 
in from model year 2004 through 2012. When fully implemented, EPA 
estimates an overall 72 percent reduction in VOC emissions from these 
engines and an 80 percent reduction in NOX emissions. As 
projected by these estimates and demonstrated in the non-road emission 
modeling for the Indiana portion of the Chicago area, some of these 
emission reductions occurred by the attainment years and additional 
emission reductions will occur throughout the maintenance period.
    Category 3 Marine Diesel Engine Standards. On April 30, 2010 (75 FR 
22896) EPA issued emission standards for marine compression-ignition 
engines at or above 30 liters per cylinder. Tier 2 emission standards 
apply beginning in 2011, and are expected to result in a 15 to 25 
percent reduction in NOX emissions from these engines. Final 
Tier 3 emission standards apply beginning in 2016 and are expected to 
result in approximately an 80 percent reduction in NOX from 
these engines. As projected by these estimates and demonstrated in the 
non-road emission modeling for the Indiana portion of the Chicago area, 
some of these emission reductions occurred by the attainment years and 
additional emission reductions will occur throughout the maintenance 
period.
2. Emission Reductions
    Indiana is using a 2011 emissions inventory as the nonattainment 
year. This is appropriate because it was one of the years used to 
designate the area as nonattainment. Indiana is using 2017 as the 
attainment year, which is appropriate because it is one of the years in 
the 2017-2019 period used to demonstrate attainment.
    Area and non-road mobile emissions were collected from data 
available on EPA's Air Emissions Modeling website.\5\ For the 2017 
attainment year, area and non-road source emissions inventory estimates 
were based on the data interpolation between 2016 base year

[[Page 21804]]

and the 2023 and 2028 projection years of EPA's 2016 version 1 
Emissions Modeling Platform.
---------------------------------------------------------------------------

    \5\ https://www.epa.gov/air-emissions-modeling/2016v1-platform.
---------------------------------------------------------------------------

    IDEM compiled 2011 and 2017 actual point source and EGU-point 
source emissions from state inventory databases.
    On-road mobile source emissions were developed in conjunction with 
the Northwestern Indiana Regional Planning Commission (NIRPC), the 
Metropolitan Planning Organization for the area that includes Lake, 
Porter, and LaPorte Counties. NIRPC maintains a travel demand forecast 
model that is used to identify where travel capacity will be needed and 
to determine the infrastructure requirements necessary to meet that 
need. The travel demand forecast model predicts the total daily vehicle 
miles traveled.
    Indiana used the Motor Vehicle Emission Simulator (MOVES), the 
EPA's recommended mobile source model, to develop on-road emissions 
rates. The version used was MOVES2014b. The modeling inputs to MOVES, 
which include detailed transportation data (e.g., vehicle-miles of 
travel by vehicle class, road class and hour of day, and average speed 
distributions), were provided by NIRPC.
    On-road mobile source emissions were then calculated from emissions 
factors produced by EPA's Motor Vehicle Emission Simulator model, 
MOVES2b, and data extracted from the region's travel-demand forecast 
model.
    The annual emissions provided by this inventory are then used to 
calculate average summer day emissions using EPA guidance on how the 
model estimates daily emissions. The monthly profile percentages for 
June, July, and August were added together and then divided by the 
number of days in the season (92). This is applied at the process level 
using the profiles that are specified for each source classification 
code (SCC) that is assigned to the process.
    Emissions for Illinois and Wisconsin were based on inventories 
developed by those states in 2016 for an earlier round of redesignation 
requests. For the current document, 2011 and 2030 emissions are 
directly taken from these earlier inventories, whereas 2017 and 2025 
emissions were determined by interpolation from these inventories.
    Using the inventories described above, Indiana's submittal 
documents changes in VOC and NOX emissions from 2011 to 2017 
for the Indiana portion of the Chicago area. Emissions data are shown 
in Tables 2 and 3.

  Table 2--Emissions Reduction of NOX Emissions for the Illinois, Indiana and Wisconsin portions of the Chicago
                                          Nonattainment Area 2011-2017
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                                                2011
                         Sector                            Nonattainment     2017 Attainment        Emission
                                                                year               year            reductions
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point..............................................              67.41              29.23              38.18
Point..................................................              52.57              47.59               4.98
Area...................................................              27.14              33.60              -6.46
Non-Road...............................................             188.34             142.64              45.70
On-road................................................             296.38             177.66             118.72
                                                        --------------------------------------------------------
    Total..............................................             631.84             430.72             201.12
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point..............................................              30.15               3.73              26.42
Point..................................................              66.46              55.42              11.04
Area...................................................               9.69               8.06               1.63
Non-road...............................................              12.69               6.73               5.96
On-road................................................              24.70              12.85              11.85
                                                        --------------------------------------------------------
    Total..............................................             143.69              86.79              56.90
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point..............................................               8.71               8.55               0.16
Point..................................................               0.11               0.13              -0.02
Area...................................................               1.09               1.02               0.07
Non-Road...............................................               2.08               1.67               0.41
On-road................................................               5.35               2.81               2.54
                                                        --------------------------------------------------------
    Total..............................................              17.34              14.18               3.16
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois...............................................             631.84             430.72             201.12
Indiana................................................             143.69              86.79              56.90
Wisconsin..............................................              17.34              14.18               3.16
                                                        --------------------------------------------------------
    Total..............................................             792.87             531.69             261.18
----------------------------------------------------------------------------------------------------------------


[[Page 21805]]


  Table 3--Emissions Reduction of VOC Emissions for the Illinois, Indiana and Wisconsin Portions of the Chicago
                                          Nonattainment Area 2011-2017
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Emission
                         Sector                                 2011               2017            reductions
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point..............................................               0.62               0.78              -0.16
Point..................................................              47.63              44.53               3.10
Area...................................................             210.04             226.69             -16.65
Non-Road...............................................             169.58              80.56              89.02
On-road................................................              91.04              81.49               9.55
                                                        --------------------------------------------------------
    Total..............................................             518.91             434.05              84.86
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point..............................................               0.63               0.20               0.43
Point..................................................              17.07              10.16               6.91
Area...................................................              18.07              19.56              -1.49
Non-Road...............................................              14.19               4.06              10.13
On-road................................................               9.58               6.07               3.51
                                                        --------------------------------------------------------
    Total..............................................              59.54              40.05              19.49
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point..............................................               0.38               0.32               0.06
Point..................................................               0.18               0.07               0.11
Area...................................................               3.76               3.49               0.27
Non-Road...............................................               1.13               0.74               0.39
On-road................................................               2.53               1.42               1.11
                                                        --------------------------------------------------------
    Total..............................................               7.98               6.04               1.94
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois...............................................             518.91             434.05              84.86
Indiana................................................              59.54              40.05              19.49
Wisconsin..............................................               7.98               6.04               1.94
----------------------------------------------------------------------------------------------------------------
    Total..............................................             586.43             480.14             106.29
----------------------------------------------------------------------------------------------------------------

    As shown in Tables 2 and 3, NOX and VOC emissions in the 
Indiana portion of the Chicago area declined by 56.90 tons/day and 
19.49 tons/day, respectively, between 2011 and 2017. NOX and 
VOC emissions throughout the entire Chicago area declined by 261.18 
tons/day and 106.29 tons/day, respectively, between 2011 and 2017.
3. Meteorology
    To further support IDEM's demonstration that the improvement in air 
quality between the year violations occurred and the year attainment 
was achieved is due to permanent and enforceable emission reductions 
and not unusually favorable meteorology, an analysis was performed by 
the Lake Michigan Air Directors Consortium (LADCO). A classification 
and regression tree (CART) analysis was conducted with 2005 through 
2018 data from nine Chicago-area ozone sites. The goal of the analysis 
was to determine the meteorological and air quality conditions 
associated with ozone episodes, and construct trends for the days 
identified as sharing similar meteorological conditions.
    Regression trees were developed for the nine monitors to classify 
each summer day by its ozone concentration and associated 
meteorological conditions. By grouping days with similar meteorology, 
the influence of meteorological variability on the underlying trend in 
ozone concentrations is partially removed and the remaining trend is 
presumed to be due to trends in precursor emissions or other non-
meteorological influences. The CART analysis showed that, reducing the 
impact of meteorology, the resulting trends in ozone concentrations 
declined over the period examined, supported the conclusion that the 
improvement in air quality was not due to unusually favorable 
meteorology.

D. Does Indiana have a fully approvable ozone maintenance plan for the 
Chicago area?

    As one of the criteria for redesignation to attainment, section 
107(d)(3)(E)(iv) of the CAA requires EPA to determine that the area has 
a fully approved maintenance plan pursuant to section 175A of the CAA. 
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 maintenance plan must demonstrate continued 
attainment of the NAAQS for at least 10 years after the Administrator 
approves a redesignation to attainment. Eight years after the 
redesignation, the state must submit a revised maintenance plan which 
demonstrates that attainment of the NAAQS will continue for an 
additional 10 years beyond the initial 10-year maintenance period. To 
address the possibility of future NAAQS violations, the maintenance 
plan must contain contingency measures, as EPA

[[Page 21806]]

deems necessary, to ensure prompt correction of the future NAAQS 
violation.
    The Calcagni Memorandum provides further guidance on the content of 
a maintenance plan, explaining that a maintenance plan should address 
five elements: (1) An attainment emission inventory; (2) a maintenance 
demonstration; (3) a commitment for continued air quality monitoring; 
(4) a process for verification of continued attainment; and (5) a 
contingency plan. In conjunction with its request to redesignate the 
Indiana portion of the Chicago area to attainment for the 2008 ozone 
NAAQS, IDEM submitted a SIP revision to provide for maintenance of the 
2008 ozone NAAQS through 2030, more than 10 years after the expected 
effective date of the redesignation to attainment. As discussed below, 
EPA proposes to find that Indiana's ozone maintenance plan includes the 
necessary components and approve the maintenance plan as a revision of 
the Indiana SIP.
1. Attainment Inventory
    EPA is proposing to determine that the Indiana portion of the 
Chicago area has attained the 2008 ozone NAAQS based on monitoring data 
for the period of 2017-2019. IDEM selected 2017 as the attainment 
emissions inventory year to establish attainment emission levels for 
VOC and NOX. The attainment emissions inventory identifies 
the levels of emissions in the Indiana portion of the Chicago area that 
are sufficient to attain the 2008 ozone NAAQS. The derivation of the 
attainment year emissions was discussed above in section IV.C.2. of 
this proposed rule. The attainment level emissions, by source category, 
are summarized in Tables 2 and 3 above.
2. Has the state documented maintenance of the ozone standard in the 
Indiana portion of the Chicago area (Lake and Porter Counties)?
    Indiana has demonstrated maintenance of the 2008 ozone NAAQS 
through 2030 by assuring that current and future emissions of VOC and 
NOX for the Indiana portion of the Chicago area remain at or 
below attainment year emission levels. A maintenance demonstration need 
not be based on 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), 68 FR 25413, 25430-25432 (May 
12, 2003).
    Indiana is using emissions inventories for the years 2025 and 2030 
to demonstrate maintenance. 2030 is more than 10 years after the 
expected effective date of the redesignation to attainment and 2025 was 
selected to demonstrate that emissions are not expected to spike in the 
interim between the attainment year and the final maintenance year. The 
emissions inventories were developed as described below.
    Area and non-road mobile emissions were collected from data 
available on EPA's Air Emissions Modeling website. Using Emissions 
Modeling platform 2016v1, IDEM collected data for the 2023 and 2028 
projected inventories.
    Indiana's 2025 area, point, EGU-point, and non-road source 
emissions were estimated primarily by interpolating between EPA's 2023 
and 2028 modeling inventories. 2030 emissions for point, area, and non-
road source sectors were derived by extrapolating using the TREND 
function in Excel. If the trend function resulted in a negative value, 
the emissions were assumed not to change. EGU-point emissions for 2030 
were estimated from the Eastern Regional Technical Advisory Committee 
(ERTAC) model. Summer day inventories were derived for these sectors 
using the methodology described in section IV.V.2. above.
    On-road mobile source emissions were developed through the combined 
effort of IDEM and the NIRPC and were calculated from emission factors 
produced by EPA's MOVES2014b model and data extracted from the region's 
travel-demand model. The on-road 2025 and 2030 emission estimates are 
based on the actual travel demand model network runs generating 
estimated emissions to exist for those years under the Northwest 
Indiana 2050 Transportation Plan.
    Emissions data are shown in Tables 4 through 5 below.

  Table 4--Projected Emissions of NOX Emissions for the Illinois, Indiana and Wisconsin Portions of the Chicago
                                        Nonattainment Area 2025 and 2030
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                       2017 Attainment                       2030 Maintenance   Difference 2017-
               Sector                        year        2025 Interim year         year               2030
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point...........................              29.23              49.56              60.75             -31.52
Non-EGU.............................              47.59              47.68              48.54              -0.95
Area................................              33.60              33.83              33.97              -0.37
On-Road.............................             177.66              85.04              65.66             112.00
Non-road............................             142.64             114.83             106.92              35.72
                                     ---------------------------------------------------------------------------
    Total...........................             430.72             330.94             315.84             114.88
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point...........................               3.73               0.34               0.34               3.39
Non-EGU.............................              55.42              58.49              59.30              -3.88
Area................................               8.06               7.13               6.68               1.38
On-road.............................              12.85               8.53               6.62               6.23
Non-road............................               6.73               4.28               3.22               3.51
                                     ---------------------------------------------------------------------------
    Total...........................              86.79              78.77              76.16              10.63
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point...........................               8.55               0.00               0.00               8.55
Non-EGU.............................               0.13               0.16               0.16              -0.03
Area................................               1.02               1.00               0.99               0.03

[[Page 21807]]

 
On-Road.............................               2.81               1.47               1.14               1.67
Non-road............................               1.67               1.24               1.15               0.52
                                     ---------------------------------------------------------------------------
    Total...........................              14.18               3.87               3.44              10.74
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois............................             430.72             330.94             315.84             114.88
Indiana.............................              86.79              78.77              76.16              10.63
Wisconsin...........................              14.18               3.87               3.44              10.74
                                     ---------------------------------------------------------------------------
    Total...........................             531.69             413.58             395.44             136.25
----------------------------------------------------------------------------------------------------------------


  Table 5--Projected Emissions of VOC Emissions for the Illinois, Indiana and Wisconsin Portions of the Chicago
                                        Nonattainment Area 2025 and 2030
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                       2017 Attainment                       2030 Maintenance   Difference 2017-
               Sector                        year        2025 Interim year         year               2030
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point...........................               0.78               2.12               2.64              -1.86
Non-EGU.............................              44.53              43.67              43.57               0.96
Area................................             226.69             221.71             221.40               5.29
On-Road.............................              81.49              52.85              42.64              38.85
Non-road............................              80.56              79.07              82.27              -1.71
                                     ---------------------------------------------------------------------------
    Total...........................             434.05             399.42             392.52              41.53
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point...........................               0.20               0.07               0.06               0.14
Non-EGU.............................              10.16               11.7              11.57              -1.41
Area................................              19.56              19.76              19.86              -0.30
On-road.............................               6.07               4.91               3.77               2.30
Non-road............................               4.06               3.58               3.38               0.68
                                     ---------------------------------------------------------------------------
    Total...........................              40.05              40.02              38.64               1.41
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point...........................               0.32               0.00               0.00               0.32
Non-EGU.............................               0.07               0.15               0.15              -0.08
Area................................               3.49               3.48               3.50              -0.01
On-Road.............................               1.42               0.95               0.73               0.69
Non-road............................               0.74               0.64               0.62               0.12
                                     ---------------------------------------------------------------------------
    Total...........................               6.04               5.22               5.00               1.04
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois............................             434.05             399.42             392.52              41.53
Indiana.............................              40.05              40.02              38.64               1.41
Wisconsin...........................               6.04               5.22               5.00               1.04
                                     ---------------------------------------------------------------------------
    Total...........................             480.14             444.66             436.16              43.98
----------------------------------------------------------------------------------------------------------------

    In summary, Indiana's maintenance demonstration for the Indiana 
portion of the Chicago area shows maintenance of the 2008 ozone NAAQS 
by providing emissions information to support the demonstration that 
future emissions of NOX and VOC will remain at or below 2017 
emission levels when considering both future source growth and 
implementation of future controls. Tables 4 and 5 show NOX 
and VOC emissions in the Chicago area are projected to decrease by 
136.25 tons/day and 43.98 tons/day, respectively, between 2017 and 
2030. Emissions in the Indiana portion of the Chicago area are 
projected to decrease by 10.63 tons/day and 1.41 tons/day, 
respectively, between 2017 and 2030.
    Although EPA's redesignation guidance does not require modeling for

[[Page 21808]]

ozone nonattainment areas, IDEM is providing its most recent 
photochemical modeling, which was performed for the Interstate 
Transport ``Good Neighbor'' Provision for the 2015 8-hour ozone NAAQS 
of 0.070 ppm. While this modeling was conducted under a more stringent 
8-hour ozone NAAQS, it shows the monitors in the nonattainment area are 
projected to have 2023 ozone design values below both the 2008 and 2015 
ozone NAAQS. Paired with current monitoring data, this analysis 
demonstrates the area has attained and will continue to maintain 
compliance with the 2008 8-hour ozone NAAQS well into the future with 
an increased margin of safety over time.
3. Continued Air Quality Monitoring
    Indiana has committed to continue to operate the ozone monitors 
listed in Table 1 above. Indiana has committed to consult with EPA 
prior to making changes to the existing monitoring network should 
changes become necessary in the future. Indiana remains obligated to 
meet monitoring requirements and continue to quality assure monitoring 
data in accordance with 40 CFR part 58, and to enter all data into the 
AQS in accordance with Federal guidelines.
4. Verification of Continued Attainment
    Indiana has confirmed that it has the legal authority to enforce 
and implement the requirements of the maintenance plan for the Indiana 
portion of the Chicago area. This includes the authority to adopt, 
implement, and enforce any subsequent emission control measures 
determined to be necessary to correct future ozone attainment problems.
    Verification of continued attainment is accomplished through 
operation of the ambient ozone monitoring network and the periodic 
update of the area's emissions inventory. IDEM will continue to operate 
the current ozone monitors located in the Indiana portion of the 
Chicago area. There are no plans to discontinue operation, relocate, or 
otherwise change the existing ozone monitoring network other than 
through revisions in the network approved by the EPA.
    In addition, to track future levels of emissions, Indiana will 
continue to develop and submit to EPA updated emission inventories for 
all source categories at least once every 3 years, consistent with the 
requirements of 40 CFR part 51, subpart A, and in 40 CFR 51.122. The 
Consolidated Emissions Reporting Rule (CERR) was promulgated by EPA on 
June 10, 2002 (67 FR 39602). The CERR was replaced by the Annual 
Emissions Reporting Requirements (AERR) on December 17, 2008 (73 FR 
76539). The most recent triennial inventory for Indiana was compiled 
for 2014, and 2017 is in progress. Point source facilities covered by 
Indiana's emissions statements rule, 326 IAC 2-6-1, will continue to 
submit VOC and NOX emissions on an annual basis.
5. What is the contingency plan for the Indiana portion of the Chicago 
area (Lake and Porter Counties)?
    Section 175A of the CAA requires that the state must adopt a 
maintenance plan, as a SIP revision, that includes such contingency 
measures as EPA deems necessary to ensure that the state will promptly 
correct a violation of the NAAQS that occurs after redesignation of the 
area to attainment of the NAAQS. The maintenance plan must identify: 
The contingency measures to be considered and, if needed for 
maintenance, adopted and implemented; a schedule and procedure for 
adoption and implementation; 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 considered, adopted, 
and implemented. The maintenance plan must include a commitment that 
the state will implement all measures with respect to the control of 
the pollutant that were contained in the SIP before redesignation of 
the area to attainment in accordance with section 175A(d) of the CAA.
    As required by section 175A of the CAA, Indiana has adopted a 
contingency plan for the Indiana portion of the Chicago area to address 
possible future ozone air quality problems. The contingency plan 
adopted by Indiana has two levels of response, a warning level response 
and an action level response.
    In Indiana's plan, a warning level response will be triggered when 
an annual (1-year) fourth high monitored value of 0.079 ppm occurs in a 
single ozone season or when a two-year average fourth high monitored 
value of 0.076 ppm or higher occurs within the maintenance area. A 
warning level response will consist of Indiana conducting a study to 
determine whether the ozone value indicates a trend toward higher ozone 
values or whether emissions appear to be increasing. The study will 
evaluate whether the trend, if any, is likely to continue and, if so, 
the control measures necessary to reverse the trend. The study will 
consider ease and timing of implementation as well as economic and 
social impacts. Implementation of necessary controls in response to a 
warning level response trigger will take place within 12 months from 
the conclusion of the most recent ozone season.
    In Indiana's plan, an action level response is triggered when a 
three-year average fourth high value of 0.076 ppm or greater is 
monitored within the maintenance area. When an action level response is 
triggered, Indiana, will determine what additional control measures are 
needed to ensure future attainment of the 2008 ozone NAAQS. Control 
measures selected will be adopted and implemented within 18 months from 
the close of the ozone season that prompted the action level. IDEM may 
also consider if significant new regulations not currently included as 
part of the maintenance provisions will be implemented in a timely 
manner and would thus constitute an adequate contingency measure 
response.
    Indiana included the following list of potential contingency 
measures in its maintenance plan:

1. Enhancements to the vehicle emissions testing program (increased 
weight limit, addition of diesel vehicles, etc.)
2. Asphalt paving (lower VOC formulation)
3. Diesel exhaust retrofits
4. Traffic flow improvements
5. Idle reduction programs
6. Portable fuel container regulation (statewide)
7. Park and ride facilities
8. Rideshare/carpool program
9. VOC cap/trade program for major stationary sources
10. NOX Reasonably Available Control Technology

    However, Indiana is not limited to the contingency measures listed 
above. To qualify as a contingency measure, emissions reductions from 
that measure must not be factored into the emissions projections used 
in the maintenance plan. Indiana notes that because it is not possible 
to determine what control measures will be appropriate in the future, 
the list is not comprehensive.
    EPA has concluded that Indiana's maintenance plan adequately 
addresses the five basic components of a maintenance plan: Attainment 
inventory, maintenance demonstration, monitoring network, verification 
of continued attainment, and a contingency plan. In addition, as 
required by section 175A(b) of the CAA, Indiana has committed to submit 
to EPA an updated ozone maintenance plan eight years after 
redesignation of the Indiana portion of the Chicago area to cover an 
additional ten years beyond the

[[Page 21809]]

initial 10-year maintenance period. Thus, EPA finds that the 
maintenance plan SIP revision submitted by IDEM for the Indiana portion 
of the Chicago area meets the requirements of section 175A of the CAA 
and EPA proposes to approve it as a revision to the Indiana SIP.

V. Has the state adopted approvable motor vehicle emission budgets?

A. Motor Vehicle Emission Budgets

    Under section 176(c) of the CAA, new transportation plans, 
programs, or projects that receive Federal funding or support, such as 
the construction of new highways, must ``conform'' to (i.e., be 
consistent with) the SIP. Conformity to the SIP means that 
transportation activities will not cause new air quality violations, 
worsen existing air quality problems, or delay timely attainment of the 
NAAQS or interim air quality milestones. Regulations at 40 CFR part 93 
set forth EPA policy, criteria, and procedures for demonstrating and 
assuring conformity of transportation activities to a SIP. 
Transportation conformity is a requirement for nonattainment and 
maintenance areas. Maintenance areas are areas that were previously 
nonattainment for a particular NAAQS, but that have been redesignated 
to attainment with an approved maintenance plan for the NAAQS.
    Under the CAA, states are required to submit, at various times, 
control strategy SIPs for nonattainment areas and maintenance plans for 
areas seeking redesignations to attainment of the ozone standard and 
maintenance areas. See the SIP requirements for the 2015 ozone NAAQS in 
EPA's December 6, 2018 implementation rule (83 FR 62998). These control 
strategy SIPs (including RFP plans and attainment plans) and 
maintenance plans must include MVEBs for criteria pollutants, including 
ozone, and their precursor pollutants (VOC and NOX for 
ozone) to address pollution from on-road transportation sources. The 
MVEBs are the portion of the total allowable emissions that are 
allocated to highway and transit vehicle use that, together with 
emissions from other sources in the area, will provide for attainment 
or maintenance. See 40 CFR 93.101.
    Under 40 CFR part 93, a MVEB for an area seeking a redesignation to 
attainment must be established, at minimum, for the last year of the 
maintenance plan. A state may adopt MVEBs for other years as well. 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, if needed, subsequent to initially 
establishing a MVEB in the SIP.

B. What is the status of EPA's adequacy determination for the proposed 
VOC and NOX MVEBs for the Indiana portion of the Chicago area (Lake and 
Porter Counties)?

    When reviewing submitted control strategy SIPs or maintenance plans 
containing MVEBs, EPA must affirmatively find that the MVEBs contained 
therein are adequate for use in determining transportation conformity. 
Once EPA affirmatively finds that the submitted MVEBs are adequate for 
transportation purposes, the 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 MVEB are 
set out in 40 CFR 93.118(e)(4). The process for determining adequacy 
consists of three basic steps: Public notification of a SIP submission; 
provision for 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 titled, 
``Transportation Conformity Rule Amendments: Response to Court Decision 
and Additional Rule Changes,'' 68 FR 38974, 38984 (June 30, 2003).
    As discussed earlier, Indiana's maintenance plan includes 
NOX and VOC MVEBs for the Indiana portion of the Chicago 
area for 2030 and 2025, the last year of the maintenance period and an 
interim year, respectively. EPA has reviewed Indiana's VOC and 
NOX MVEBs for the Indiana portion of the Chicago area and, 
in this action, is proposing to find them adequate for approval into 
the Indiana SIP. Indiana's February 27, 2020 maintenance plan SIP 
submission, including the VOC and NOX MVEBs for the Chicago 
area, is open for public comment via this proposed rulemaking. The 
submitted maintenance plan, which includes the MVEBs, was endorsed by 
the Governor's designee and was subject to a state public hearing. The 
MVEBs were developed as part of an interagency consultation process 
which includes Federal, state, and local agencies. The MVEBs were 
clearly identified and precisely quantified. These MVEBs, when 
considered together with all other emissions sources, are consistent 
with maintenance of the 2008 ozone NAAQS.

                                 Table 6--MVEBs for the Indiana Portion of the Chicago Area 2008 Ozone Maintenance Plan
                                                                       [Tons/year]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            2025 Mobile                                     2030 Mobile
                                            Attainment    2025 Estimated   safety margin                  2030 Estimated   safety margin
                                           year 2017 on-      on-road       allocation      2025 MVEBs        on-road       allocation      2030 MVEBs
                                          road emissions     emissions       (percent)                       emissions       (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
VOC.....................................            6.07            4.91              15            4.94            3.77              15            4.34
NOX.....................................           12.85            8.53              15            9.81            6.62              15            7.61
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Table 6, the 2025 and 2030 MVEBs exceed the estimated 
2025 and 2030 on-road sector emissions. To accommodate future 
variations in travel demand models and VMT forecast, Indiana allocated 
a portion of the safety margin (described further below) to the mobile 
sector. Indiana has demonstrated that with mobile source emissions at 
or

[[Page 21810]]

below 4.94 tons per summer day (TPSD) and 4.34 TPSD of VOC and 9.81 
TPSD and 7.61 TPSD of NOX in 2025 and 2030, respectively, 
including partial allocation of the safety margin, emissions will 
remain under attainment year emission levels. EPA finds adequate and is 
proposing to approve the MVEBs for use to determine transportation 
conformity in the area, because EPA has determined that the area can 
maintain attainment of the 2008 ozone NAAQS for the relevant 
maintenance period with mobile source emissions at the levels of the 
MVEBs in conjunction with the levels of the projected emissions 
inventories for the upwind areas discussed above.

C. What is a safety margin?

    A ``safety margin'' is the difference between the attainment level 
of emissions (from all sources) and the projected level of emissions 
(from all sources) in the maintenance plan. As noted in Tables 4 and 5, 
the emissions in the Indiana portion of the Chicago area are projected 
to have safety margins of 10.63 tons/day for NOX and 1.41 
tons/day for VOC in 2030 (the difference between the attainment year, 
2017, emissions and the projected 2030 emissions for all sources in the 
Indiana portion of the Chicago area). Similarly, there is a safety 
margin of 8.02 tons/day for NOX and 0.03 tons/day for VOC in 
2025. Even if emissions exceeded projected levels by the full amount of 
the safety margin, the counties would still demonstrate maintenance 
since emission levels would equal those in the attainment year.
    Indiana is not allocating any of the safety margin to the mobile 
source sector. Indiana can request an allocation to the MVEBs of the 
available safety margins reflected in the demonstration of maintenance 
in a future SIP revision.

VI. Section 182(f) NOX Exemption

    Section 182(f) establishes NOX emission control 
requirements for ozone nonattainment areas. It provides that these 
emission control requirements, however, do not apply to an area if the 
Administrator determines that NOX emission reductions would 
not contribute to attainment of the ozone standard. EPA's January 2005 
document, ``Guidance on Limiting Nitrogen Oxides Requirements Related 
to 8-Hour Ozone Implementation,'' provides guidance for demonstrating 
that further NOX reduction in an ozone nonattainment area 
will not contribute to ozone attainment. The guidance provides that 
three consecutive years of monitoring data showing attainment of the 
standard without implementation of section 182(f) NOX 
provisions is adequate to demonstrate that ``additional reductions of 
oxides of nitrogen would not contribute to attainment . . . .'' CAA 
section 182(f)(1)(A). As described in the guidance document, approval 
of this type of NOX exemption is contingent on continued 
monitored attainment of the standard.
    On January 22, 2020, Indiana submitted a request for a waiver from 
the section 182(f) NOX requirements for the Indiana portion 
of the Chicago area based on monitoring data for the years 2017-2019 
showing attainment of the 2008 ozone standard in the area. Based on 
these data, EPA is proposing to approve Indiana's request for an 
exemption from the section 182(f) NOX requirements in the 
Indiana portion of the Chicago area. Upon final approval of the 
NOX waiver, Indiana will not be required to adopt and 
implement NOX emission control regulations pursuant section 
182(f) for the Indiana portion of the Chicago area to qualify for 
redesignation. If the Chicago area violates before redesignation, then 
EPA would not be able to finalize approval of a NOX waiver.

VII. Proposed Actions

    EPA is proposing to determine that the Chicago-Naperville, IL-IN-WI 
nonattainment area is attaining the 2008 ozone NAAQS, based on quality-
assured and certified monitoring data for 2017-2019. EPA is proposing 
to approve Indiana's January 22, 2020 NOX Exemption Request 
as meeting the moderate SIP requirements of section 182(f) of the CAA. 
EPA is proposing to determine that upon final approval of Indiana's 
NOX Exemption Request, the area will have met the 
requirements for redesignation under section 107(d)(3)(E) of the CAA. 
EPA is proposing to change the legal designation of the Indiana portion 
of the Chicago-Naperville, IL-IN-WI area from nonattainment to 
attainment for the 2008 ozone NAAQS. EPA is also proposing to approve, 
as a revision to the Indiana SIP, the state's maintenance plan for the 
area. The maintenance plan is designed to keep the Indiana portion of 
the Chicago area in attainment of the 2008 ozone NAAQS through 2030. 
Finally, EPA finds adequate and is proposing to approve the newly 
established 2025 and 2030 MVEBs for the Indiana portion of the Chicago 
area.

VIII. 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 CAA and applicable Federal regulations. 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, this action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Is not an Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866;
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is 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.);
     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);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is 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
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human

[[Page 21811]]

health or environmental effects, using practicable and legally 
permissible methods, 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, this rule does not have tribal implications as specified by 
Executive Order 13175 (65 FR 67249, November 9, 2000), because 
redesignation is an action that affects the status of a geographical 
area and does not impose any new regulatory requirements on tribes, 
impact any existing sources of air pollution on tribal lands, nor 
impair the maintenance of ozone national ambient air quality standards 
in tribal lands.

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Oxides of nitrogen, Ozone, 
Volatile organic compounds.

40 CFR Part 81

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

    Dated: April 13, 2020.
Kurt Thiede,
Regional Administrator, Region 5.
[FR Doc. 2020-08031 Filed 4-17-20; 8:45 am]
BILLING CODE 6560-50-P


