[Federal Register: April 18, 2007 (Volume 72, Number 74)]
[Proposed Rules]
[Page 19424-19435]
[DOCID:fr18ap07-12]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R05-OAR-2006-0459; FRL-8301-9]

Determination of Attainment, Approval and Promulgation of
Implementation Plans and Designation of Areas for Air Quality Planning
Purposes; Indiana; Redesignation of the LaPorte County 8-Hour
Nonattainment Area to Attainment for Ozone

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On May 30, 2006, the Indiana Department of Environmental
Management (IDEM) submitted a request for EPA approval of a
redesignation of LaPorte County to attainment of the 8-hour ozone
National Ambient Air Quality Standard (NAAQS) and of an ozone
maintenance plan for LaPorte County as a revision to the Indiana State
Implementation Plan (SIP). EPA is proposing to approve Indiana's
request and maintenance plan SIP revision. EPA is also proposing to
approve the Volatile Organic Compounds (VOC) and Nitrogen Oxides
(NOX) Motor Vehicle Emission Budgets (MVEBs) for LaPorte
County, as supported by the ozone maintenance plan for this County, for
purposes of conformity determinations.

DATES: Comments must be received on or before May 18, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2006-0459, by one of the following methods:
     http://www.regulations.gov: Follow the on-line instructions for

submitting comments.
     E-mail<EMAIL_ADDRESS>     Fax:<PHONE_NUMBER>.
     Mail: John M. Mooney, Chief, Criteria Pollutant Section,
Air Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77
West Jackson Boulevard, Chicago, Illinois 60604.
     Hand Delivery: John M. Mooney, Chief, Criteria Pollutant
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection
Agency, 77 West Jackson Boulevard, Chicago, Illinois. Such deliveries
are only accepted during the Regional Office's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information. The Regional Office's official hours of operation
are Monday through Friday, 8:30 a.m. to 4:30 p.m., excluding Federal
holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2006-0459. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
http://www.regulations.gov, including any personal information provided,

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

The http://www.regulations.gov website is an ``anonymous access'' system,

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

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

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

Agency, Region 5, Air and Radiation Division, 77 West Jackson
Boulevard, Chicago, Illinois 60604. This facility is open from 8:30
a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays.
It is recommended that you telephone Edward Doty, Environmental
Scientist, at<PHONE_NUMBER>, before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Edward Doty, Environmental Scientist,
Criteria Pollutant Section, Air Programs Branch (AR-18J), Environmental
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago,
Illinois 60604,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean the EPA. This supplementary
information section is arranged as follows:

I. What Action Is EPA Proposing To Take?
II. What Is the Background for This Action?
III. What Are the Criteria for Redesignation to Attainment?
IV. What Are EPA's Analyses of the State's Requests and What Are the
Bases for EPA's Proposed Action?
V. Has Indiana Adopted Acceptable Motor Vehicle Emissions Budgets
for the End of the 10-Year Maintenance Plan Which Can Be Used To
Support Conformity Determinations?
VI. What Is the Effect of EPA's Proposed Action?
VII. Statutory and Executive Order Reviews

I. What Action Is EPA Proposing To Take?

    We are proposing to take several related actions for LaPorte
County. First, we are proposing to determine that LaPorte County has
attained the 8-hour ozone NAAQS based on air quality for the period of
2003 through 2005. Second, we are proposing to approve Indiana's ozone
maintenance plan for LaPorte County as a requested revision to the
Indiana SIP. The maintenance plan is designed to keep LaPorte County in
attainment of the 8-hour ozone standard for the next 14 years, through
2020. As supported by and consistent with the ozone maintenance plan,
we are also proposing to approve the 2020 VOC and NOX MVEBs
for LaPorte County for conformity purposes. Finally, we are proposing
to approve the request from the State of Indiana to change the
designation of LaPorte County from nonattainment to attainment of the
8-hour ozone NAAQS. We have determined that the State and LaPorte
County have met the

requirements for redesignation to attainment under section 107(d)(3)(E)
of the Clean Air Act (CAA).

II. What Is the Background for This Action?

A. General Background Information

    EPA has determined that ground-level ozone is detrimental to human
health. On July 18, 1997, EPA promulgated an 8-hour ozone NAAQS of 0.08
parts per million parts of air (0.08 ppm) (80 parts per billion (ppb))
(62 FR 38856).\1\ This 8-hour ozone standard replaced a prior 1-hour
ozone NAAQS, which had been promulgated on February 8, 1979 (44 FR
8202), and which EPA revoked on June 15, 2005 (69 FR 23858).
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    \1\ This standard is violated in an area when any ozone monitor
in the area (or in its impacted downwind environs) records 8-hour
ozone concentrations with an average of the annual fourth-highest
daily maximum 8-hour ozone concentrations over a three-year period
equaling or exceeding 85 ppb. See 40 CFR 50.10.
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    Ground-level ozone is not emitted directly by sources. Rather,
emitted NOX and VOC react in the presence of sunlight to
form ground-level ozone along with other secondary compounds.
NOX and VOC are referred to as ``ozone precursors.'' Control
of ground-level ozone concentrations is achieved through controlling
VOC and NOX emissions.
    Section 107 of the CAA required EPA to designate as nonattainment
any area that violates the 8-hour ozone NAAQS. The Federal Register
notice promulgating the 8-hour ozone designations and classifications
was published on April 30, 2004 (69 FR 23857).
    The CAA contains two sets of provisions--subpart 1 and subpart 2--
that address planning and emission control requirements for
nonattainment areas. Both are found in title I, part D of the CAA.
Subpart 1 contains general, less prescriptive requirements for all
nonattainment areas for any pollutant governed by a NAAQS. Subpart 2
contains more specific requirements for certain ozone nonattainment
areas, and applies to ozone nonattainment areas classified under
section 181 of the CAA.
    In the April 30, 2004 designation rulemaking, EPA divided 8-hour
ozone nonattainment areas into the categories of subpart 1
nonattainment (``basic'' nonattainment) and subpart 2 nonattainment
(``classified'' nonattainment). EPA based this division on the areas 8-
hour ozone design values (i.e., on the three-year averages of the
annual fourth-highest daily maximum 8-hour ozone concentrations at the
worst-case monitoring sites in the areas) and on their 1-hour ozone
design values (i.e., on the fourth-highest daily maximum 1-hour ozone
concentrations over the three-year period at the worst-case monitoring
sites in the areas).\2\ EPA classified 8-hour ozone nonattainment areas
with 1-hour ozone design values equaling or exceeding 121 ppb as
subpart 2, classified nonattainment areas. EPA classified all other 8-
hour nonattainment areas as subpart 1, basic nonattainment areas. The
basis for area classification was defined in a separate April 30, 2004,
final rule (the Phase 1 implementation rule) (69 FR 23951).
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    \2\ The 8-hour ozone design value and the 1-hour ozone design
value for each area were not necessarily recorded at the same
monitoring site. The worst-case monitoring site for each ozone
concentration averaging time was considered for each area.
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    Emission control requirements for classified nonattainment areas
are linked to area classifications. Areas with more serious ozone
pollution problems are subject to more prescribed requirements and
later attainment dates. The prescribed emission control requirements
are designed to bring areas into attainment by their specified
attainment dates.
    In the April 30, 2004, ozone designation/classification rulemaking,
EPA designated LaPorte County as a subpart 2 moderate nonattainment
area for the 8-hour ozone NAAQS. This designation was based on ozone
data collected during the 2001-2003 period. On September 22, 2004 (69
FR 56697), EPA revised the designation of LaPorte County to subpart 2
marginal nonattainment.
    On May 30, 2006, the State of Indiana requested redesignation of
LaPorte County to attainment of the 8-hour ozone NAAQS based on ozone
data collected in LaPorte County during the 2003-2005 period. On August
24, 2006, IDEM submitted a summary of an ozone data review and
supplementary ozone data to address a shortfall in the data supporting
the ozone redesignation request.

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

    On December 22, 2006, the United States Court of Appeals for the
District of Columbia Circuit (the Court) vacated EPA's Phase 1
implementation rule (Phase 1 Rule) for the 8-hour ozone standard (69 FR
23951, April 30, 2004). South Coast Air Quality Management Dist. v.
EPA, 472 F.3d 882 (D.C. Cir. 2006). The Court held that certain
provisions of EPA's Phase 1 Rule were inconsistent with the
requirements of the CAA. The Court rejected EPA's reasons for
implementing the 8-hour ozone standard in nonattainment areas under
subpart 1 in lieu of subpart 2 of Title I, part D of the CAA. The Court
also held that EPA improperly failed to retain four measures required
for 1-hour ozone nonattainment areas under the anti-backsliding
provisions of the regulations: (1) Nonattainment area New Source Review
(NSR) requirements based on an area's 1-hour nonattainment
classification; (2) section 185 penalty fees for 1-hour severe or
extreme ozone nonattainment areas; (3) measures to be implemented
pursuant to section 172(c)(9) or 182(c)(9) of the CAA, on the
contingency of an area not making reasonable further progress toward
attainment of the 1-hour ozone NAAQS, or failing to attain that NAAQS;
and, (4) conformity requirements for certain types of Federal actions.
The Court upheld EPA's authority to revoke the 1-hour ozone standard
provided that there were adequate anti-backsliding provisions.
    This section sets forth EPA's views on the potential effect of the
Court's ruling on this redesignation action. For the reasons set forth
below, EPA does not believe that the Court's ruling alters any
requirements relevant to this redesignation action so as to preclude
redesignation, and does not prevent EPA from finalizing this
redesignation. EPA believes that the Court's decision, as it currently
stands or as it may be modified based on any petition for rehearing
that has been filed, imposes no impediment to moving forward with
redesignation of this area to attainment, because in either
circumstance redesignation is appropriate under the relevant
redesignation provisions of the CAA and longstanding policies regarding
redesignation requests.
    With respect to the 8-hour ozone standard, LaPorte County is
classified as moderate nonattainment under subpart 2 of the CAA. We do
not believe that any part of the Court's opinion would require that
this subpart 2 classification be changed upon remand to EPA. However,
even assuming for present purposes that LaPorte County would become
subject to a different classification under a classification scheme
created in a future rule in response to the Court's decision, this
would not prevent EPA from finalizing a redesignation for this area.
For the reasons set forth below, we believe that any additional
requirements that might apply based on that different classification
would not be applicable for purposes of evaluating the redesignation
request.
    This belief is based on: (1) EPA's longstanding policy of
evaluating

redesignation requests in accordance with only the requirements due at
the time the complete redesignation request was submitted; and, (2)
consideration of the inequity of retroactively applying any
requirements that might be applied in the future.
    First, at the time the complete redesignation request was submitted
(May 30, 2006), LaPorte County was classified under subpart 2 and was
required to meet the subpart 2 requirements. Under EPA's longstanding
interpretation of section 107(d)(3)(E) of the CAA, to qualify for
redesignation, states requesting redesignation to attainment must meet
only the relevant SIP requirements that came due prior to the submittal
of complete redesignation requests. September 4, 1992 Calcagni
memorandum (``Procedures for Processing Requests to Redesignate Areas
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality
Management Division). See also: September 17, 1993 Shapiro memorandum
(``State Implementation Plan (SIP) Requirements for Areas Submitting
Requests for Redesignation to Attainment of the Ozone and Carbon
Monoxide (CO) National Ambient Air Quality Standard (NAAQS) on or after
November 15, 1992,'' Memorandum from Michael H. Shapiro, Acting
Assistant Administrator, Air and Radiation Division); 60 FR 12459,
12465-12466 (March 7, 1995) (redesignation of Detroit-Ann Arbor);
Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004), which upheld this
interpretation; and, 68 FR 25418, 25424, 25427 (May 12, 2003)
(redesignation of St. Louis). At the time the redesignation request for
LaPorte County was submitted, the area was not classified under subpart
1 and no subpart 1 requirements were applicable for purposes of
redesignation.
    Second, it would be inequitable to retroactively apply any new SIP
requirements that were not applicable at the time the complete
redesignation request was submitted, but which might later become
applicable. The D.C. Circuit has recognized the inequity of such
retroactive rulemaking. See Sierra Club v. Whitman, 285 F.3d 63 (D.C.
Cir. 2002), in which the D.C. Circuit upheld a District Court's ruling
refusing to make retroactive an EPA determination of nonattainment that
was past the statutory attainment deadline. Such a determination would
have resulted in the imposition of additional requirements on the area.
The Court stated: ``Although EPA failed to make the nonattainment
determination within the statutory time frame, Sierra Club's proposed
solution only makes the situation worse. Retroactive relief would
likely impose large costs on the States, which would face fines and
suits for not implementing air pollution plans in 1997, even though
they were not on notice at the time.'' Id. at 68. Similarly, here it
would be unfair to penalize the area by applying to it for purposes of
redesignation additional requirements under subpart 1 that were not in
effect at the time Indiana submitted its redesignation request, but
that might apply in the future.
    Because LaPorte County was designated as Unclassifiable/Attainment
under the 1-hour ozone standard and was never designated nonattainment
for the 1-hour ozone standard, there are no outstanding 1-hour
nonattainment area requirements that LaPorte County would be required
to meet. Thus, we find that the Court's ruling does not result in any
additional 1-hour requirements for purposes of redesignation of LaPorte
County.

III. What Are the Criteria for Redesignation to Attainment?

    The CAA provides the requirements for redesignating a nonattainment
area to attainment. Specifically, section 107(d)(3)(E) of the CAA
authorizes redesignation provided that: (1) The Administrator
determines that the area has attained the applicable NAAQS; (2) the
Administrator has fully approved an applicable state 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 emission reductions resulting from
implementation of the applicable SIP, Federal air pollution control
regulations, and other permanent and enforceable emission reductions;
(4) the Administrator has fully approved a maintenance plan for the
area meeting the requirements of section 175A of the CAA; and, (5) the
state containing the area has met all requirements applicable to the
area under section 110 and part D of the CAA.
    EPA provided guidance on redesignations in the General Preamble for
the Implementation of Title I of the CAA Amendments of 1990 on April
16, 1992 (57 FR 13498), and supplemented this guidance on April 28,
1992 (57 FR 18070). The two main policy guidelines affecting the review
of ozone redesignation requests are the following: ``Procedures for
Processing Requests to Redesignate Areas to Attainment,'' Memorandum
from John Calcagni, Director, Air Quality Management Division,
September 4, 1992 (September 4, 1992 Calcagni memorandum); and,
``Reasonable Further Progress, Attainment Demonstration, and Related
Requirements for Ozone Nonattainment Areas Meeting the Ozone National
Ambient Air Quality Standard,'' Memorandum from John S. Seitz,
Director, Office of Air Quality Planning and Standards, May 10, 1995.
For additional policy guidelines used in the review of ozone
redesignation requests, see our proposed rule for the redesignation of
the Evansville, Indiana ozone nonattainment area at 70 FR 53606
(September 9, 2005).

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

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

1. LaPorte County Has Attained the 8-Hour Ozone NAAQS

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

must be complete in accordance with 40 CFR part 50, appendix I.
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    \3\ The worst-case monitoring site-specific ozone design value
in the area or in its affected downwind environs.
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    As part of the May 30, 2006 ozone redesignation request, IDEM
submitted ozone monitoring data indicating the highest four daily
maximum 8-hour ozone concentrations for each monitoring site in LaPorte
County (the Michigan City and LaPorte ozone monitoring sites) for each
year during the 2003-2005 period. These worst-case ozone concentrations
are part of the quality-assured ozone data that have been entered into
EPA's AQS. The annual fourth-high 8-hour daily maximum ozone
concentrations, along with their three-year averages are summarized in
Table 1.

                                Table 1.--Fourth-High 8-Hour Ozone Concentrations
                                          [In parts per billion (ppb)]
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                  County                           Monitoring site          2003      2004      2005     Average
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LaPorte...................................  Michigan City...............        82        70        84        79
LaPorte...................................  LaPorte.....................        84        68        89        80
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    These data show that the average fourth-high daily maximum 8-hour
ozone concentrations for the monitoring sites in LaPorte County are all
below the 85 ppb ozone standard violation cut-off. The data support the
conclusion that LaPorte County did not experience a monitored violation
of the 8-hour ozone standard during the 2003-2005 period.
    We also note that the 8-hour ozone NAAQS continued to be attained
in LaPorte County through 2006. Data in the AQS show that, in 2006, the
Michigan City monitor recorded a daily maximum fourth-high 8-hour ozone
concentration of 75 ppb, and the LaPorte monitor recorded a daily
maximum fourth-high 8-hour ozone concentration of 69 ppb.
    The State has committed to continue ozone monitoring in this area
during the maintenance period, through 2020. IDEM also commits to
consult with the EPA prior to making any changes in the existing
monitoring network.
    During our review of the LaPorte ozone monitoring data contained in
EPA's AQS, we noted that the annual percentages of reported daily
maximum 8-hour ozone concentrations for the LaPorte monitoring site
during the 2003-2005 ozone seasons (April through September in Indiana)
were the following: 90 percent in 2003; 65 percent in 2004; and 74
percent in 2005. This is not consistent with the three-year 90 percent
annual average completeness requirement and the 75 percent annual
minimum completeness requirement of 40 CFR part 50, appendix I. It
should be noted, however, that appendix I provides for the
consideration of surrounding ozone monitoring data to support
alternative conclusions regarding data completeness. More specifically,
it provides that, when computing whether the minimum data completeness
requirements have been met, meteorological and ambient data may be
sufficient to demonstrate that meteorological conditions on missing
data days were not conducive to peak ozone concentrations above the
level of the standard. Missing days assumed to have peak ozone
concentrations less than the standard are counted for purposes of
meeting the data completeness requirements as having valid maximum 8-
hour ozone concentrations.
    On August 24, 2006, IDEM submitted supplemental data and
documentation to support the conclusion that all days in 2003, 2004,
and 2005 with missing ozone data were days in which the ozone standard
was likely to not have been exceeded at the LaPorte site. We believe
that IDEM's analysis supports an assumption of data completeness for
the LaPorte monitoring site and, therefore, agree that the LaPorte
ozone data for 2003-2005 meet the data completeness requirements. IDEM
has appropriately flagged the ozone data in the AQS for this monitoring
site supporting this conclusion.
    The data submitted by the State demonstrate that LaPorte County has
attained the 8-hour ozone NAAQS. Therefore, we propose to find that
LaPorte County has attained the 8-hour ozone standard.

2. LaPorte County Has Met All Applicable Requirements Under Section 110
and Part D of the CAA and the Area Has a Fully Approved SIP Under
Section 110(k) of the CAA

    EPA has determined that Indiana has met all currently applicable
SIP requirements for LaPorte County under section 110 of the CAA
(general SIP requirements). EPA has also determined that the Indiana
SIP meets currently applicable SIP requirements under part D of title I
of the CAA (requirements specific to basic and subpart 2 ozone
nonattainment areas). See section 107(d)(3)(E)(v) of the CAA. In
addition, EPA has determined that the Indiana SIP is fully approved
with respect to all applicable requirements. See section
107(d)(3)(E)(ii) of the CAA. In making these determinations, EPA
ascertained what requirements are applicable to the area, and
determined that the applicable portions of the SIP meeting these
requirements are fully approved under section 110(k) of the CAA. We
note that SIPs must be fully approved only with respect to currently
applicable requirements of the CAA, those CAA requirements applicable
to LaPorte County at the time the State submitted the final, complete
ozone redesignation request for this area.
a. LaPorte County Has Met All Applicable Requirements Under Section 110
and Part D 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, to qualify for redesignation of an area to attainment,
the State and the area must meet the relevant CAA requirements that
come due prior to the State's submittal of a complete redesignation
request for the area. See also a September 17, 1993 memorandum from
Michael Shapiro, Acting Assistant Administrator for Air and Radiation,
``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'' and 66 FR 12459, 12465-12466 (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 redesignation request
remain applicable until a redesignation to attainment of the standard
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).

    General SIP requirements: Section 110(a) of title I of the CAA
contains the general requirements for a SIP, which include: enforceable
emission limitations and other control measures, means, or techniques;
provisions for the establishment and operation of appropriate devices
necessary to collect data on ambient air quality; and programs to
enforce the emission limitations. SIP elements and requirements are
specified in section 110(a)(2) of title I, part A of the CAA. These
requirements and SIP elements include, but are not limited to, the
following: (a) Submittal of a SIP that has been adopted by the State
after reasonable public notice and a hearing; (b) provisions for
establishment and operation of appropriate procedures needed to monitor
ambient air quality; (c) implementation of a source permit program; (d)
provisions for the implementation of new source part C requirements
(Prevention of Significant Deterioration (PSD)) and new source part D
requirements (New Source Review (NSR)); (e) criteria for stationary
source emission control measures, monitoring, and reporting; (f)
provisions for air quality modeling; and, (g) provisions for public and
local agency participation.
    SIP requirements and elements are discussed in the following EPA
documents: ``Procedures for Processing Requests to Redesignate Areas to
Attainment,'' Memorandum from John Calcagni, Director, Air Quality
Management Division, September 4, 1992; ``State Implementation Plan
(SIP) Actions Submitted in Response to Clean Air Act (CAA) Deadlines,''
Memorandum from John Calcagni, Director, Air Quality Management
Division, October 28, 1992; and ``State Implementation Plan (SIP)
Requirements for Areas Submitting Requests for Redesignation to
Attainment of the Ozone and Carbon Monoxide (CO) National Ambient Air
Quality Standards (NAAQS) on or After November 15, 1992,'' Memorandum
from Michael H. Shapiro, Acting Assistant Administrator, September 17,
1993. See also other guidance documents listed above.
    Section 110(a)(2)(D) of the CAA requires SIPs to contain certain
measures to prevent sources in one state from significantly
contributing to air quality problems in another state. To implement
this provision, EPA required states to establish programs to address
transport of air pollutants (NOX SIP call, Clean Air
Interstate Rule (CAIR)). EPA has also found, generally, that states
have not submitted SIPs under section 110(a)(1) of the CAA to meet the
interstate transport requirements of section 110(a)(2)(D)(i) of the CAA
(70 FR 21147, April 25, 2005). However, the section 110(a)(2)(D)
requirements for a state are not linked with a particular nonattainment
area's classification. EPA believes that the requirements linked with a
particular nonattainment area's classification are the relevant
measures to evaluate in reviewing a redesignation request. The
transport SIP submittal requirements, where applicable, continue to
apply to a state regardless of the designation of any one particular
area in the state.
    We believe that these requirements should not be construed to be
applicable requirements for purposes of redesignation. Further, we
believe that the other section 110 elements described above that are
not connected with nonattainment plan submissions and that are not
linked with an area's attainment status are also not applicable
requirements for purposes of redesignation. A state remains subject to
these requirements after an area is redesignated to attainment. We
conclude that only the section 110 and part D requirements which are
linked with an area's designation and classification are the relevant
measures in evaluating this aspect of a redesignation request. This
approach is consistent with EPA's existing policy on applicability of
conformity and oxygenated fuels requirements for redesignation
purposes, as well as with section 184 ozone transport requirements.
See: Reading, Pennsylvania proposed and final rulemakings (61 FR 53174-
53176, October 10, 1996 and 62 FR 24826, May 7, 1997); Cleveland-Akron-
Lorain, Ohio final rulemaking (61 FR 20458, May 7, 1996); and Tampa,
Florida final rulemaking (60 FR 62748, December 7, 1995). See also the
discussion on this issue in the Cincinnati, Ohio ozone redesignation
(65 FR 37890, June 19, 2000), and the Pittsburgh, Pennsylvania ozone
redesignation (66 FR 50399, October 19, 2001). In addition, Indiana's
response to the CAIR rule was due in September 2006. Because this
deadline had not yet passed when the State submitted the final,
complete redesignation request, the State's CAIR submittal is also not
an applicable requirement for redesignation purposes.
    We believe that section 110 elements not linked to the area's
nonattainment status are not applicable for purposes of redesignation.
Nonetheless, we also note that EPA has previously approved provisions
in the Indiana SIP addressing section 110 elements under the 1-hour
ozone standard. We have analyzed the Indiana SIP as codified in 40 CFR
52, subpart P, and have determined that it is consistent with the
requirements of section 110(a)(2) of the CAA. The SIP, which has been
adopted after reasonable public notice and hearing, contains
enforceable emission limitations; requires monitoring, compiling, and
analyzing ambient air quality data; requires preconstruction review of
new major stationary sources and major modifications of existing
sources; provides for adequate funding, staff, and associated resources
necessary to implement its requirements; and, requires stationary
source emissions monitoring and reporting, and otherwise satisfies the
applicable requirements of section 110(a)(2).
    Part D SIP requirements: EPA has determined that the Indiana SIP
meets applicable SIP requirements under part D of the CAA. Under part
D, an area's classification (marginal, moderate, serious, severe, and
extreme) indicates the requirements to which it will be subject.
Subpart 1 of part D, found in sections 172-176 of the CAA, sets forth
the basic nonattainment area plan requirements applicable to all
nonattainment areas. Subpart 2 of part D, found in section 182 of the
CAA, establishes additional specific requirements depending on the
area's nonattainment classification.
    Part D, subpart 1 requirements: For purposes of evaluating this
redesignation request, the applicable subpart 1 part D requirements for
all nonattainment areas are contained in sections 172(c)(1)-(9) and
176. A thorough discussion of the requirements of section 172 can be
found in the General Preamble for Implementation of Title I (57 FR
13498). (See also 68 FR 4852-4853 in a St. Louis ozone redesignation
notice of proposed rulemaking for a discussion of section 172
requirements.)
    As noted in a previous section of this proposed rule, no
requirements under part D of the CAA came due for LaPorte County prior
to the State's May 30, 2006 submittal of a complete redesignation
request. For example, the requirement for an ozone attainment
demonstration, as contained in section 172(c)(1), was not yet
applicable, nor were the requirements for Reasonably Available Control
Measures (RACM) and Reasonably Available Control Technology (RACT)
(section 172(c)(1)), Reasonable Further Progress (RFP) (section
172(c)(2)), and attainment plan and RFP contingency measures (section
172(c)(9)). All of these SIP elements were required for submittal after
May 30, 2006. Therefore, none of the part D requirements are applicable
to LaPorte County for purposes of redesignation.

    Section 176 conformity requirements: Section 176(c) of the CAA
requires states to establish criteria and procedures to ensure that
federally-supported or funded activities, including highway projects,
conform to the air planning goals in the applicable SIP. The
requirement to determine conformity applies to transportation plans,
programs, and projects developed, funded, or approved under Title 23
U.S.C. and the Federal Transit Act (transportation conformity) as well
as to all other federally-supported or funded projects (general
conformity). State conformity SIP revisions must be consistent with
Federal conformity regulations that the CAA required the EPA to
promulgate.
    In addition to the fact that part D requirements did not become due
prior to Indiana's submission of the complete ozone redesignation
request for LaPorte County, and, therefore, are not applicable for
redesignation purposes, EPA similarly believes that it is reasonable to
interpret the conformity requirements as not applying for purposes of
evaluating the ozone redesignation request under section 107(d) of the
CAA. In addition, please note that it is reasonable to interpret the
conformity requirements as not applying for purposes of evaluating the
ozone redesignation request under section 107(d) of the CAA because
state conformity rules are still required after redesignation of an
area to attainment of a NAAQS and Federal conformity rules apply where
state rules have not been approved. See Wall v. EPA, 265 F.3d 426 (6th
Cir. 2001). See also 60 FR 62748 (December 7, 1995) (Tampa, Florida).
    Part D, subpart 2 requirements: Similar to the subpart 1
requirements, EPA believes that the subpart 2 requirements that apply
to LaPorte County do not apply to a consideration of Indiana's ozone
redesignation request because the State submitted a complete ozone
redesignation request for LaPorte County before any of the applicable
subpart 2 requirements became due.
    The May 10, 1995 Seitz memorandum (see ``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) states that certain SIP
revisions need not be submitted for EPA to approve a redesignation
request since the requirements would no longer be considered applicable
requirements as long as the area continues to attain the standard. As
set forth in this policy, EPA believes it is reasonable to interpret
the provisions regarding RFP and attainment demonstrations, along with
certain other related provisions, as not requiring further state
submissions to achieve attainment if an area is in fact attaining the
standard. In the May 10, 1995 memorandum, EPA articulated in detail its
interpretation that certain requirements of subparts 1 and 2 are not
applicable once an area has attained the standard, for as long as it
continues to do so.
    The United States Court of Appeals for the Tenth Circuit has upheld
this interpretation, Sierra Club v. EPA, 99 F.3d 1551 (10th Cir. 1996),
as has the U.S. Court of Appeals for the Seventh Circuit. Sierra Club
v. EPA, 375 F.3d 537 (7th Cir. 2004). In addition, EPA has explained in
rulemaking actions on the 1-hour ozone standard its rationale for the
reasonableness of this interpretation of the CAA. See: 67 FR 49600
(July 31, 2002); 65 FR 37879 (June 19, 2000); 65 FR 3630, 3631-32
(January 24, 2000) (Cincinnati-Hamilton, Ohio, Kentucky); 61 FR 20458
(May 7, 1996) (Cleveland-Akron-Lorain, Ohio); 66 FR 53094 (October 19,
2001) (Pittsburgh-Beaver Valley, Pennsylvania); 60 FR 37366 (July 20,
1995); 61 FR 31832-33 (June 21, 1996) (Grand Rapids, Michigan); 60 FR
36723 (July 18, 1995) (Salt Lake and Davis Counties, Utah); 68 FR 4847,
4848, 4851, 4855 (January 30, 2003); 68 FR 25418 (May 12, 2003) (St.
Louis, Missouri); and, 66 FR 27484, 27486 (May 17, 2001) (Louisville,
Kentucky).
    EPA has also determined that areas being redesignated need not
comply with the requirement that a New Source Review (NSR) program be
approved prior to redesignation, provided that the area demonstrates
maintenance of the standard without part D NSR, since Prevention of
Significant Deterioration (PSD) requirements will apply after
redesignation. A more detailed rationale for this view is described in
a memorandum from Mary Nichols, Assistant Administrator for Air and
Radiation, dated October 14, 1994, entitled, ``Part D New Source Review
Requirements for Areas Requesting Redesignation to Attainment.''
Indiana has demonstrated that LaPorte County will be able to maintain
the 8-hour ozone standard without part D NSR in effect, and, therefore,
we conclude that the State need not have a fully approved part D NSR
program prior to approval of the redesignation request. The State's PSD
program will become effective in LaPorte County upon redesignation to
attainment. See rulemakings for Detroit, Michigan (60 FR 12467-12468,
March 7, 1995); Cleveland-Akron-Lorain, Ohio (61 FR 20458, 20469-20470,
May 7, 1996); Louisville, Kentucky (66 FR 53665, October 23, 2001);
Grand Rapids, Michigan (61 FR 31834-31837, June 21, 1996).
    We conclude that the State and LaPorte County have satisfied all
applicable requirements under section 110 and part D of the CAA to the
extent that the requirements apply for the purposes of reviewing the
State's ozone redesignation request.
b. LaPorte County Has a Fully Approved Applicable SIP Under Section
110(k) of the CAA
    EPA has fully approved the Indiana SIP for LaPorte County under
section 110(k) of the CAA for all applicable requirements. EPA may rely
on prior SIP approvals in approving a redesignation request (See the
September 4, 1992 John Calcagni memorandum, page 3, Southwestern
Pennsylvania Growth Alliance v. Browner, 144 F.3d 984, 989-990 (6th
Cir. 1998), Wall v. EPA, 265 F.3d 426 (6th Cir. 2001)), plus any
additional measures it may approve in conjunction with a redesignation
action. See 68 FR 25426 (May 12, 2003). Since the passage of the CAA of
1970, Indiana has adopted and submitted, and EPA has fully approved,
provisions addressing the various required SIP elements applicable to
LaPorte County for purposes of redesignation. No LaPorte County SIP
provisions are currently disapproved, conditionally approved, or
partially approved. As indicated above, EPA believes that the section
110 elements not connected with nonattainment plan submissions and not
linked to the area's nonattainment status are not applicable
requirements for purposes of review of the State's redesignation
request. EPA has concluded that the section 110 SIP submission approved
under the 1-hour ozone standard will be adequate for purposes of
attaining and maintaining the 8-hour standard. EPA also believes that
since the part D requirements did not become due prior to Indiana's
submission of a final, complete redesignation request, they also are
not applicable requirements for purposes of redesignation.

3. The Air Quality Improvement in LaPorte County Is Due To Permanent
and Enforceable Reductions in Emissions From Implementation of the SIP
and Applicable Federal Air Pollution Control Regulations and Other
Permanent and Enforceable Emission Reductions

    EPA believes that the State of Indiana has demonstrated that the
observed air

quality improvement in LaPorte County is due to permanent and
enforceable emission reductions resulting from implementation of the
SIP, Federal measures, and other State-adopted measures.
    The State has documented the changes in VOC and NOX
emissions from anthropogenic (man-made or man-based) sources in LaPorte
County between 1996 and 2004 and the changes in NOX
emissions from Electric Generating Units (EGUs) in Northwest Indiana
(Jasper, Lake, LaPorte, and Porter Counties) and statewide between 1999
and 2005. LaPorte County was monitored in violation of the 8-hour ozone
NAAQS during the period of 1996 through 1999 and monitored in
attainment with the NAAQS during the period of 2003 through 2005. The
VOC and NOX emissions for LaPorte County for various years
during the period of 1996 through 2004 are given in Table 2.

               Table 2.--VOC and NOX Emissions Trends in LaPorte County for Anthropogenic Sources
                                         [Emissions in tons/summer day]
----------------------------------------------------------------------------------------------------------------
                          Pollutant                               1996         1999         2002         2004
----------------------------------------------------------------------------------------------------------------
VOC.........................................................         31.0         29.7         24.5         24.0
NOX.........................................................         83.7         45.4         71.6         44.4
----------------------------------------------------------------------------------------------------------------

    The NOX emissions trends for EGUs in Northwest Indiana
and statewide for Table 3. The NOX emissions for LaPorte
County and the EGU NOX emissions from Northwest Indiana and
statewide have shown significant downward trends from 1996 and 1999, 8-
hour standard violation years, to 2004 and 2005, attainment years (and
from 2002, a violation year, to 2004, an attainment year). IDEM notes
that the NOX emissions in Northwest Indiana and statewide
declined significantly as a result of the implementation of the Indiana
NOX SIP (in response to EPA's NOX SIP call) and
acid rain control regulations, both of which led to permanent,
enforceable emission reductions.

         Table 3.--NOX Emission Trends for Electric Generating Units in Northwest and Indiana Statewide
                       [Emissions in thousands of tons per ozone season (April-September)]
----------------------------------------------------------------------------------------------------------------
                          Area                             1999    2000    2001    2002    2003    2004    2005
----------------------------------------------------------------------------------------------------------------
Northwest Indiana.......................................    31.8    25.0    27.4    22.7    18.0    11.8    10.6
Statewide...............................................   149.8   133.9   136.1   114.0    99.3    66.6    55.5
----------------------------------------------------------------------------------------------------------------

    As noted in Table 2, the total VOC emissions in LaPorte County also
declined between 1996 and 2004. IDEM notes that this emissions decline
has resulted despite an increase in point source VOC emissions in this
County due to source growth. VOC emission control measures have been
implemented in LaPorte County constraining the impacts of new source
growth in this County. The State's VOC rules were adopted in the mid-
1990s, and include the following VOC control rules: 326 Indiana
Administrative Code (IAC) 8-1-6 (Best Available Control Technology
(BACT) for non-specific sources); 326 IAC 8-2 (surface coating emission
limitations); 326 IAC (organic solvent degreasing operations); 326 IAC
8-4 (petroleum sources, including storage, transport, and marketing
sources and petroleum refining); 326 IAC 8-5 (miscellaneous sources);
and 326 IAC 8-6 (organic solvent emission limitations). These VOC
control rules have been implemented statewide. Compliance with these
rules has resulted in a decrease in point source VOC emissions in
LaPorte County, offsetting some source growth, as well as decreasing
VOC emissions in the remainder of Northwest Indiana and statewide. The
VOC emission reductions resulting from the implementation of the VOC
emission control rules are permanent and enforceable.
    Since LaPorte County was not previously designated as a 1-hour
ozone nonattainment area, no ozone precursor emission controls were
specifically targeted at this County. Therefore, statewide and Federal
emission control requirements have provided the majority of the VOC and
NOX emission reductions in LaPorte County and in the
surrounding area.
    Besides the statewide VOC RACT rules and NOX emission
control requirements, other Federal emission reduction requirements
have resulted in decreased ozone precursor emissions in the Northwest
Indiana area and/or will produce future emission reductions that will
support maintenance of the ozone standard in LaPorte County (see a more
detailed discussion on maintenance of the 8-hour ozone standard in
LaPorte County below). These emission reduction requirements include
the following:
    Tier 2 Emission Standards for Vehicles and Gasoline Sulfur
Standards. These emission control requirements result in lower
emissions from new cars and light duty trucks, including sport utility
vehicles. The Federal rules are being phased in between 2004 and 2009.
The EPA has estimated that, by the end of the phase-in period, the
following vehicle NOX emission reductions will occur nation-
wide: passenger cars (light duty vehicles) (77 percent); light duty
trucks, minivans, and sports utility vehicles (86 percent; and larger
sports utility vehicles, vans, and heavier trucks (69 to 95 percent).
VOC emission reductions are also expected to range from 12 to 18
percent, depending on vehicle class, over the same period. Although
some of these emission reductions have already occurred by the 2004
attainment year, most of these emission reductions will occur during
the maintenance period for LaPorte County.
    Heavy-Duty Diesel Engines. In July 2000, EPA issued a final rule to
control the emissions from highway heavy duty diesel engines, including
low-sulfur diesel fuel standards. These emission reductions are being
phased in between 2004 and 2007. This rule is expected to result in a
40 percent decrease in NOX emissions from heavy duty diesel
vehicles.
    Non-Road Diesel Rule. Issued in May 2004, this rule generally
applies to new stationary diesel engines used in certain industries,
including construction, agriculture, and mining. In addition to

affecting engine design, this rule includes requirements for cleaner
fuels. It is expected to reduce NOX emissions from these
engines by up to 90 percent, and to significantly reduce particulate
matter and sulfur emissions from these engines in addition to the
NOX emission reduction. This rule did not affect 2004
emissions from these sources, but will limit emissions from new engines
beginning in 2008.
    Indiana commits to maintain all existing emission control measures
that affect LaPorte County after this area is redesignated to
attainment of the 8-hour ozone NAAQS. All changes in existing rules
affecting LaPorte County and new rules subsequently needed to provide
for the maintenance of the 8-hour ozone NAAQS in LaPorte County will be
submitted to the EPA for approval as SIP revisions.

4. LaPorte County Has a Fully Approvable Ozone Maintenance Plan
Pursuant to Section 175A of the CAA

    In conjunction with its request to redesignate LaPorte County to
attainment of the ozone NAAQS, Indiana submitted a SIP revision request
to provide for maintenance of the 8-hour ozone NAAQS in LaPorte County
for at least 10 years after the redesignation of this area to
attainment of the 8-hour ozone NAAQS.
a. What Is Required in an Ozone Maintenance Plan?
    Section 175A of the CAA sets forth the required elements of air
quality maintenance plans for areas seeking redesignation from
nonattainment to attainment of a NAAQS. Under section 175A, a
maintenance plan must demonstrate continued attainment of the
applicable NAAQS for at least 10 years after the Administrator approves
the redesignation to attainment. Eight years after the redesignation,
the State must submit a revised maintenance plan which demonstrates
maintenance of the standard for 10 years following the initial 10-year
maintenance period. To address the possibility of future NAAQS
violations, the maintenance plan must contain such contingency
measures, with a schedule for implementation, as EPA deems necessary,
to assure prompt correction of any future NAAQS violations. The
September 4, 1992 John Calcagni memorandum provides additional guidance
on the content of maintenance plans. An ozone maintenance plan should,
at minimum, address the following items: (1) The attainment VOC and
NOX emissions inventories; (2) a maintenance demonstration
showing maintenance for the 10 years of the maintenance period; (3) a
commitment to maintain the existing monitoring network; (4) factors and
procedures to be used for verification of continued attainment; and,
(5) a contingency plan to prevent and/or correct a future violation of
the NAAQS.
b. What Are the Attainment Emission Inventories for LaPorte County?
    IDEM prepared comprehensive VOC and NOX emission
inventories for LaPorte County, including point (significant stationary
sources), area (smaller and widely-distributed stationary sources),
mobile on-road, and mobile non-road sources for 2004 (the base year/
attainment year). To develop the attainment year emission inventories,
IDEM used the following approaches and sources of data:
    Area Sources--Area source VOC and NOX emissions were
projected from Indiana's 2002 periodic emissions inventory, which was
previously submitted to the EPA.
    Mobile On-Road Sources--Mobile source emissions were calculated
using the MOBILE6 emission factor model and traffic data (vehicle miles
traveled, vehicle speeds, and vehicle type and age distributions)
extracted from the region's travel-demand model. IDEM has provided
detailed data summaries to document the calculation of mobile on-road
VOC and NOX emissions for 2004, as well as for the
projection years of 2010 and 2020 (further discussed below).
    Point Source Emissions--2004 point source emissions were compiled
using IDEM's 2004 annual emissions statement database and the 2005 EPA
Air Markets acid rain emissions inventory database.
    Mobile Non-Road Emissions--Non-road mobile source emissions were
estimated by the EPA and documented in the 2002 National Emissions
Inventory (NEI). IDEM used these emissions estimates along with growth
factors to grow the non-road mobile source emissions to 2004. To
address concerns about the accuracy of some of the emissions for
various source categories in EPA's non-road emissions model, the Lake
Michigan Air Directors Consortium (LADCO) contracted with several
companies to review the base data used by the EPA and to make
recommendations for corrections to the model. Emissions were estimated
for commercial marine vessels and railroads. Recreational motorboat
population and spatial surrogates (used to assign emissions to each
county) were updated. The populations for the construction equipment
category were reviewed and updated based on surveys completed in the
Midwest, and the temporal allocation for agricultural sources was also
updated. Based on these and other updates, the EPA provided a revised
non-road estimation model, which was used for the 2004 projected non-
road mobile source emissions.
    The 2004 attainment year VOC and NOX emissions for
LaPorte County are summarized along with the 2010 and 2020 projected
emissions for this County in Tables 4 and 5 below. They confirm that
the State has acceptably derived and documented the attainment year VOC
and NOX emissions for LaPorte County.
c. Demonstration of Maintenance
    As part of the May 30, 2006 redesignation request submittal, IDEM
included a requested revision to the SIP to incorporate a 10-year ozone
maintenance plan as required under section 175A of the CAA. The
maintenance plan contains a maintenance demonstration. This
demonstration shows maintenance of the 8-hour ozone NAAQS by
documenting current and projected VOC and NOX emissions and
showing that future emissions of VOC and NOX remain at or
below the attainment year emission levels.\4\ Note that 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) and 68 FR 25430-
25432 (May 12, 2003).
---------------------------------------------------------------------------

    \4\ The attainment year can be any of the three consecutive
years in which the area has clean (below violation level) air
quality data (2003, 2004, or 2005 for LaPorte County).
---------------------------------------------------------------------------

    Table 4 specifies the VOC emissions in LaPorte County for 2004,
2010, and 2020. IDEM chose 2020 as a projection year to meet the 10-
year maintenance projection requirement, allowing several years for the
State to complete its adoption of the ozone redesignation request and
ozone maintenance plan and for the EPA to approve the redesignation
request and maintenance plan. IDEM also chose 2010 as an interim year
to demonstrate that VOC and NOX emissions will remain below
the attainment levels throughout the 10-year maintenance period.
    Table 5, similar to Table 4, specifies the NOX emissions
in LaPorte County for 2004, 2010, and 2020. Together, Tables 4 and 5
demonstrate that LaPorte County should remain in attainment of the 8-
hour ozone NAAQS between 2004 and 2020, for more than 10 years after
EPA is expected to approve the

redesignation of LaPorte County to attainment of the 8-hour ozone
NAAQS.

 Table 4.--Attainment Year (2004) and Projected VOC Emissions in LaPorte
                                 County
                          [Tons per summer day]
------------------------------------------------------------------------
                                                    Year
          Source sector           --------------------------------------
                                       2004         2010         2020
------------------------------------------------------------------------
Point............................         4.36         3.61         3.53
Area.............................         7.17         7.51         8.14
On-Road Mobile...................         7.36         4.75         3.09
Off-Road Mobile..................         5.13         3.93         3.23
                                  --------------------------------------
    Total........................        24.02        19.80        17.99
------------------------------------------------------------------------

 Table 5.--Attainment Year and Projected NOX Emissions in LaPorte County
                          [Tons per summer day]
------------------------------------------------------------------------
                                                    Year
          Source sector           --------------------------------------
                                       2004         2010         2020
------------------------------------------------------------------------
Point............................         4.80         4.15         3.63
Area.............................         1.13         1.20         1.26
On-Road Mobile...................        28.52        17.15         5.91
Off-road Mobile..................         9.96         7.57         6.41
                                  --------------------------------------
    Total........................        44.41        30.07        17.21
------------------------------------------------------------------------

    IDEM also notes that the State's EGU NOX emission
control rules stemming from EPA's NOX SIP call, implemented
beginning in 2004, and CAIR will further lower NOX emissions
in upwind areas, resulting in decreased ozone and ozone precursor
transport into LaPorte County (the State did not project the emission
decreases resulting from CAIR and did not document future
NOX emissions in upwind Counties). This will also support
maintenance of the ozone standard in LaPorte County.
    The emission projections for LaPorte County coupled with the
expected impacts of the State's EGU NOX rules and CAIR lead
to the conclusion that LaPorte County should maintain the 8-hour ozone
standard throughout the 10-year maintenance period. The decrease in
local VOC and local and regional NOX emissions indicate that
peak ozone levels in LaPorte County may actually further decline during
the 10-year ozone maintenance period.
    IDEM has documented some of the procedures used to project
emissions. On-road mobile sources were projected using the MOBILE6
emission factor model and projected traffic data obtained from the
Northwest Indiana Regional Planning Commission (NIRPC), who maintains a
travel demand forecast model that is capable of projecting changes in
total daily Vehicle Miles Traveled (VMT). Emissions for the other major
source sectors were determined using projected source activity/growth
data provided by LADCO, as well as major source emissions data obtained
periodically for all major sources statewide. IDEM's data demonstrate
that emissions projections for LaPorte County are consistent with the
planning analyses being conducted to attain the 8-hour ozone and fine
particle (PM2.5) standards throughout Indiana and throughout the Lake
Michigan area.
    Based on the comparison of the projected emissions and the
attainment year emissions, we conclude that IDEM has successfully
demonstrated that the 8-hour ozone standard should be maintained in
LaPorte County. We believe that this is especially likely given the
expected impacts of the NOX SIP call and CAIR. As noted by
IDEM, this conclusion is further supported by the fact that other
states in the eastern portion of the United States are expected to
further reduce regional NOX emissions through implementation
of their own NOX emission control rules for EGUs and other
NOX sources and through implementation of CAIR, reducing
ozone and NOX transport into LaPorte County.
d. Monitoring Network
    IDEM commits to continue operating and maintaining an approved
ozone monitoring network in LaPorte County in accordance with 40 CFR
part 58 through the 10-year maintenance period. This will allow the
confirmation of the maintenance of the 8-hour ozone standard in this
area and the triggering of contingency measures if needed.
e. Verification of Continued Attainment
    Continued attainment of the 8-hour ozone NAAQS in LaPorte County
depends on the State's efforts toward tracking applicable indicators
during the maintenance period. The State's plan for verifying continued
attainment of the 8-hour ozone standard in LaPorte County consists, in
part, of a plan to continue ambient ozone monitoring in accordance with
the requirements of 40 CFR part 58. In addition, IDEM will periodically
revise and review the VOC and NOX emissions inventories for
LaPorte County to assure that emissions growth is not threatening the
continued attainment of the 8-hour ozone standard in this area. Revised
emission inventories for this area will be prepared for 2005, 2008, and
2011 as necessary to comply with the emission inventory reporting
requirements established in the CAA. The revised emissions will be
compared with the 2004 attainment emissions and the 2020 projected
maintenance year emissions to assure continued maintenance of the ozone
standard.
f. Contingency Plan
    The contingency plan provisions of the CAA are designed to result
in prompt correction or prevention of violations of the NAAQS that
might occur after redesignation of an area to

attainment of the NAAQS. Section 175A of the CAA requires that a
maintenance plan include such contingency measures as EPA deems
necessary to assure that the State will promptly correct a violation of
the NAAQS that might occur after redesignation. The maintenance plan
must identify the contingency measures to be considered for possible
adoption, a schedule and procedure for adoption and implementation of
the selected contingency measures, and a time limit for action by the
State. The State should also identify specific indicators to be used to
determine when the contingency measures need to be adopted and
implemented. The maintenance plan must include a requirement that the
State will implement all measures with respect to control of the
pollutant(s) that were controlled in the SIP before the redesignation
of the area to attainment. See section 175A(d) of the CAA.
    As required by section 175A of the CAA, Indiana has adopted a
contingency plan to address a possible future ozone air quality
problem. The contingency plan has two levels of actions/responses
depending on whether a violation of the 8-hour ozone standard is only
threatened (Warning Level Response) or has actually occurred (Action
Level Response).
    A Warning Level Response will be prompted whenever an annual (1-
year) fourth-high monitored daily peak 8-hour ozone concentration of 89
ppb (or greater) occurs at any monitor in LaPorte County, or a 2-year
averaged annual fourth-high daily peak 8-hour ozone concentration of 85
ppb or greater occurs at any monitor in LaPorte County. A Warning Level
Response will consist of a study to determine whether the monitored
ozone level indicates a trend toward higher ozone levels or whether
emissions are increasing, threatening a future violation of the ozone
NAAQS. The study will evaluate whether the trend, if any, is likely to
continue, and, if so, emission control measures necessary to reverse
the trend will be adopted, taking into consideration the ease and
timing of implementation, as well as economic and social
considerations. Implementation of necessary controls will take place as
expeditiously as possible, but in no event later than 12 months from
the conclusion of the most recent ozone season. If new emission
controls are needed to reverse the adverse ozone trend, the procedures
for emission control selection under the Action Level Response will be
followed.
    An Action Level Response will be triggered when a violation of the
8-hour ozone standard is monitored at any of the monitors in LaPorte
County (when a 3-year average annual fourth-high monitored daily peak
8-hour ozone concentration of 85 ppb or higher is recorded at any
monitor in LaPorte County). In this situation, IDEM will determine the
additional emission control measures needed to assure future attainment
of the 8-hour ozone NAAQS. IDEM will focus on emission control measures
that can be implemented within 18 months from the close of the ozone
season in which the ozone standard violation is monitored.
    Adoption of any additional emission control measures prompted by
either of the two response levels will be subject to the necessary
administrative and legal processes dictated by State law. This process
will include publication of public notices, providing the opportunity
for a public hearing, and other measures required by Indiana law for
rulemaking by State environmental boards. If a new emission control
measure is already promulgated and scheduled for implementation at the
Federal or State level, and that emission control measure is determined
to be sufficient to address the air quality problem or adverse trend,
additional local emission control measures may be determined to be
unnecessary. IDEM will submit to the EPA an analysis to demonstrate
that the proposed emission control measures or existing emission
control measures are adequate to provide for future attainment of the
8-hour ozone NAAQS in LaPorte County.
    Contingency measures contained in the maintenance plan are those
emission controls or other measures that the State may choose to adopt
and implement to correct existing or possible air quality problems in
LaPorte County. These include, but are not limited to, the following:
    i. Lower Reid vapor pressure gasoline requirements;
    ii. Broader geographic applicability of existing emission control
measures;
    iii. Tightened RACT requirements on existing sources covered by EPA
Control Technique Guidelines (CTGs) issued in response to the 1999 CAA
amendments;
    iv. Application of RACT to smaller existing sources;
    v. Vehicle Inspection and Maintenance (I/M);
    vi. One or more Transportation Control Measure (TCM) sufficient to
achieve at least a 0.5 percent reduction in actual area-wide VOC
emissions, to be selected from the following:
    A. Trip reduction programs, including, but not limited to,
employer-based transportation management plans, area-wide rideshare
programs, work schedule programs, and telecommuting;
    B. Transit improvement;
    C. Traffic flow improvements; and,
    D. Other new or innovative transportation measures not yet in
widespread use that affect State and local governments as deemed
appropriate;
    vii. Alternative fuel and diesel retrofit programs for fleet
vehicle operations;
    viii. Controls on consumer products consistent with those adopted
elsewhere in the United States;
    ix. VOC or NOX emission offsets for new or modified
major sources;
    x. VOC or NOX emission offsets for new or modified minor
sources;
    xi. Increased ratio of emission offset required for new sources;
and,
    xii. VOC or NOX emission controls on new minor sources
(with VOC or NOX emissions less than 100 tons per year).
g. Provisions for a Future Update of the Ozone Maintenance Plan
    As required by section 175A(b) of the CAA, the State commits to
submit to the EPA an update of the ozone maintenance plan eight years
after redesignation of LaPorte County to attainment of the 8-hour ozone
NAAQS. The updated maintenance plan will provide for maintenance of the
8-hour ozone standard in LaPorte County for an additional 10 years
beyond the period covered by the initial ozone maintenance plan.

V. Has Indiana Adopted Acceptable Motor Vehicle Emissions Budgets for
the End of the 10-Year Maintenance Plan Which Can Be Used To Support
Conformity Determinations?

A. How Are the Motor Vehicle Emission Budgets Developed and What Are
the Motor Vehicle Emission Budgets for LaPorte County?

    Under the CAA, states are required to submit, at various times, SIP
revisions and ozone maintenance plans for applicable areas (for ozone
nonattainment areas and for areas seeking redesignations to attainment
of the ozone standard or revising existing ozone maintenance plans).
These emission control SIP revisions (e.g., reasonable further progress
and attainment demonstration SIP revisions), including ozone
maintenance plans, must create MVEBs based on on-road mobile source
emissions allocated to highway and transit vehicle use that, together
with emissions from other sources in the area, will provide for
attainment or maintenance of the ozone NAAQS.
    Under 40 CFR part 93, MVEBs for an area seeking a redesignation to

attainment of the NAAQS are established for the last year of the
maintenance plan. The MVEBs serve as ceilings 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 MVEBs in the SIP and how to revise the MVEBs if needed.
    Under section 176(c) of the CAA, new transportation projects, such
as the construction of new highways, must ``conform'' to (i.e., be
consistent with) the part of the SIP that addresses emissions from cars
and trucks. Conformity to the SIP means that transportation activities
will not cause new air quality standard violations, or delay timely
attainment of the NAAQS. If a transportation plan does not conform,
most new transportation projects that would expand the capacity of
roadways cannot go forward. Regulations at 40 CFR part 93 set forth
EPA's policy, criteria, and procedures for demonstrating and assuring
conformity of transportation activities to a SIP.
    When reviewing SIP revisions containing MVEBs, including attainment
strategies, rate-of-progress plans, and maintenance plans, EPA must
affirmatively find that the MVEBs are ``adequate'' for use in
determining transportation conformity. Once EPA affirmatively finds the
submitted MVEBs to be adequate for transportation conformity purposes,
the MVEBs are used by state and Federal agencies in determining whether
proposed transportation projects conform to the SIPs as required by
section 176(c) of the CAA. EPA's substantive criteria for determining
the adequacy of MVEBs are specified in 40 CFR 93.118(e)(4).
    EPA's process for determining adequacy of MVEBs consists of three
basic steps: (1) Providing public notification of a SIP submission; (2)
providing the public the opportunity to comment on the MVEBs during a
public comment period; and, (3) making a finding of adequacy. The
process of determining the adequacy of submitted SIP MVEBs was
initially outlined in EPA's May 14, 1999 guidance, ``Conformity
Guidance on Implementation of March 2, 1999, Conformity Court
Decision.'' This guidance was finalized in the Transportation
Conformity Rule Amendments for the ``New 8-Hour Ozone and PM2.5
National Ambient Air Quality Standards and Miscellaneous Revisions for
Existing Areas: Transportation Conformity Rule Amendments--Response to
Court Decision and Additional Rule Change'' published on July 1, 2004
(69 FR 40004). EPA follows this guidance and rulemaking in making its
adequacy determinations.
    The Transportation Conformity Rule, in 40 CFR 93.118(f), provides
for MVEB adequacy findings through two mechanisms. First, section
93.118(f)(1) provides for posting a notice to the EPA conformity Web
site at: http://www.epa.gov/otaq/stateresources/transconf/adequacy.htm

and providing a 30-day public comment period. Second, a mechanism is
described in 40 CFR 93.118(f)(2) which provides that EPA can review the
adequacy of an implementation plan MVEB simultaneously with its review
of the implementation plan itself.
    The LaPorte County 10-year maintenance plan contains VOC and
NOX MVEBs for 2020. EPA has reviewed the submittal and the
proposed VOC and NOX MVEBs for LaPorte County and finds that
the MVEBs meet the adequacy criteria in the Transportation Conformity
Rule. Any and all comments on the approvability of the MVEBs should be
submitted during the comment period stated in the DATES section of this
notice.
    EPA, through this rulemaking, is proposing to approve the MVEBs for
use to determine transportation conformity in LaPorte County because
EPA has determined that the budgets are consistent with the control
measures in the SIP and that LaPorte County can maintain attainment of
the 8-hour ozone NAAQS for the relevant required 10-year period with
mobile source emissions at the levels of the MVEBs. IDEM has determined
the 2020 MVEBs for LaPorte County to be 3.40 tons per day for VOC and
6.50 tons per day for NOX. It should be noted that these
MVEBs exceed the on-road mobile source VOC and NOX emissions
projected by IDEM for 2020, as summarized in Tables 4 and 5 above
(``On-Road Mobile'' source sector). Through discussions with all
organizations involved in transportation planning for LaPorte County,
IDEM decided to include safety margins of 0.31 tons per day for VOC and
0.59 tons per day for NOX in the MVEBs to provide for mobile
source growth not anticipated in the projected 2020 emissions. Indiana
has demonstrated that LaPorte County can maintain the 8-hour ozone
NAAQS with mobile source emissions of 3.40 tons per day of VOC and 6.50
tons per day of NOX in 2020 since total source emissions
with the increased mobile source emissions will remain under the
attainment year levels.

B. 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,
LaPorte County emissions are projected to have safety margins of 7.03
tons per day for VOC and 37.20 tons per day for NOX in 2020,
the difference between the 2004, attainment year, and 2020 VOC and
NOX emissions for all sources in LaPorte County.
    The MVEBs requested by IDEM contain mobile source safety margins
(selected by the State) significantly smaller than the safety margins
reflected in the total emissions for LaPorte County. The State is not
requesting allocation of the entire available safety margins actually
reflected in the demonstration of maintenance (in Tables 4 and 5).
Therefore, even though the State is requesting MVEBs that exceed the
on-road mobile source emissions for 2020 contained in the demonstration
of maintenance, the increase in on-road mobile source emissions that
can be considered for transportation conformity purposes is well within
the safety margins of the ozone maintenance demonstration.

C. Are the MVEBs Approvable?

    The VOC and NOX MVEBs for LaPorte County are approvable
because they maintain the total emissions for LaPorte County at or
below the attainment year emission inventory levels, as required by the
transportation conformity regulations.

VI. What Is the Effect of EPA's Proposed Action?

    Approval of the redesignation request would change the official
designation of LaPorte County for the 8-hour ozone NAAQS, found at 40
CFR part 81, from nonattainment to attainment. It would also
incorporate into the Indiana SIP a plan for maintaining the ozone NAAQS
through 2020. The maintenance plan includes contingency measures to
remedy possible future violations of the 8-hour ozone NAAQS, and
establishes MVEBs of 3.40 tons per day for VOC and 6.50 tons per day
for NOX.

VII. Statutory and Executive Order Reviews

Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, September 30, 1993), this
action is not a ``significant regulatory action'' and, therefore, is
not subject to review

by the Office of Management and Budget.

Paperwork Reduction Act

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

Regulatory Flexibility Act

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

Unfunded Mandates Reform Act

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

Executive Order 13132: Federalism

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

Executive Order 13175: Consultation and Coordination With Indian Tribal
Governments

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

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

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

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

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

National Technology Transfer Advancement Act

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

List of Subjects

40 CFR Part 52

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

40 CFR Part 81

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

    Dated: April 6, 2007.
Walter W. Kovalick,
Acting Regional Administrator, Region 5.
[FR Doc. E7-7348 Filed 4-17-07; 8:45 am]

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