[Federal Register: May 17, 2010 (Volume 75, Number 94)]
[Proposed Rules]
[Page 27514-27535]
[DOCID:fr17my10-36]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R06-OAR-2008-0932; FRL-9151-7]

Approval and Promulgation of Implementation Plans and Designation
of Areas for Air Quality Planning Purposes; Texas; Beaumont/Port Arthur
Ozone Nonattainment Area: Redesignation to Attainment for the 1997 8-
Hour Ozone Standard and Determination of Attainment for the 1-Hour
Ozone Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a request from the State of Texas
to redesignate the Beaumont-Port Arthur (BPA) Texas ozone nonattainment
area to attainment of the 1997 8-hour ozone standard. In proposing to
approve this request, EPA also proposes to approve as a revision to the
BPA State Implementation Plan (SIP), a 1997 8-hour ozone maintenance
plan with a 2021 Motor Vehicle Emissions Budget (MVEB). EPA is
proposing to determine that the BPA nonattainment area has attained the
1997 8-hour ozone National Ambient Air Quality Standard (NAAQS), based
on complete, quality-assured, and certified ambient air quality
monitoring data for the 2005-2007 and 2006-2008 monitoring periods, as
well as data from 2009 that are in EPA's Air Quality System (AQS)
database but not yet certified, that demonstrate that the area has
attained and is continuing to attain the 1997 8-hour ozone NAAQS. EPA
also is proposing to make a determination that the BPA area is meeting
the 1-hour ozone standard based upon three years of complete, quality-
assured, and certified ambient air quality monitoring data for the
2005-2007 and 2006-2008 monitoring periods, as well as data from 2009
in AQS but not yet certified.
    EPA is proposing to approve the BPA area's 2002 base year emissions
inventory as part of the BPA SIP and to conclude that if this action is
finalized, the area is meeting all of its applicable marginal area
requirements for purposes of redesignation for the 1997 8-hour ozone
NAAQS. EPA also is proposing to approve as part of the BPA SIP, the
Texas Clean-Fuel Vehicle (CFV) Program Equivalency Demonstration. EPA
is proposing to find that if these proposed approvals are finalized,
the area will have a fully approved SIP that meets all of its
applicable 1997 8-hour requirements and 1-hour anti-backsliding
requirements under section 110 and Part D of the federal Clean Air Act
(CAA or Act) for purposes of redesignation.
    Additionally, EPA is proposing to approve the post-1996 Rate of
Progress (ROP) plan's contingency measures, the substitute control
measures for the failure-to-attain contingency measures, and the
removal from the Texas SIP of the 1-hour ozone failure-to-attain
contingency measure, a VOC SIP rule for marine vessel loading, as
meeting the requirements of section 110(l) and part D of the Act.

DATES: Comments must be received on or before June 16, 2010.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R06-
OAR-2008-0932, by one of the following methods:
     Federal Rulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
     U.S. EPA Region 6 ``Contact Us'' Web site: http://epa.gov/
region6/r6coment.htm. Please click on ``6PD'' (Multimedia) and select
``Air'' before submitting comments.
     E-mail: Mr. Guy Donaldson at<EMAIL_ADDRESS>Please
also send a copy by email to the person listed in the FOR FURTHER
INFORMATION CONTACT section below.
     Fax: Mr. Guy Donaldson, Chief, Air Planning Section (6PD-
L), at fax number<PHONE_NUMBER>.
     Mail: Mr. Guy Donaldson, Chief, Air Planning Section (6PD-
L), Environmental Protection Agency, 1445 Ross Avenue, Suite 1200,
Dallas, Texas 75202-2733.
     Hand or Courier Delivery: Mr. Guy Donaldson, Chief, Air
Planning Section (6PD-L), Environmental Protection Agency, 1445 Ross
Avenue, Suite 1200, Dallas, Texas 75202-2733. Such deliveries are
accepted only between the hours of 8 a.m. and 4 p.m. weekdays except
for legal holidays. Special arrangements should be made for deliveries
of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R06-OAR-
2008-0932. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
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 through www.regulations.gov or e-
mail, information that you consider to be CBI or otherwise protected.
The www.regulations.gov Web site is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through 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, any form of
encryption, and be free of any defects or viruses. For additional
information about EPA's public docket visit the EPA Docket Center
homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the docket are listed in the
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 hard copy.
Publicly available docket materials are available either electronically
in www.regulations.gov or in hard copy at the Air Planning Section
(6PD-L), Environmental Protection Agency, 1445 Ross Avenue, Suite 700,
Dallas, Texas 75202-2733. The file will be made available by
appointment for public inspection in the Region 6 FOIA Review Room
between the hours of 8:30 a.m. and 4:30 p.m. weekdays except for legal
holidays. Contact the person listed in

the FOR FURTHER INFORMATION CONTACT paragraph below to make an
appointment. If possible, please make the appointment at least two
working days in advance of your visit. There will be a fee of 15 cents
per page for making photocopies of documents. On the day of the visit,
please check in at the EPA Region 6 reception area at 1445 Ross Avenue,
Suite 700, Dallas, Texas.
    The State submittal, which is part of the EPA record, is also
available for public inspection at the State Air Agency listed below
during official business hours by appointment: Texas Commission on
Environmental Quality, Office of Air Quality, 12124 Park 35 Circle,
Austin, Texas 78753.

FOR FURTHER INFORMATION CONTACT: Ms. Ellen Belk, Air Planning Section
(6PD-L), Environmental Protection Agency, Region 6, 1445 Ross Avenue,
Suite 700, Dallas, Texas 75202-2733, telephone<PHONE_NUMBER>; fax
number<PHONE_NUMBER>; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us,''
and ``our'' means EPA.

Table of Contents

I. What are the actions EPA is proposing?
II. What is the background for these actions?
    A. What are the National Ambient Air Quality Standards?
    B. What is ozone and why do we regulate it?
    C. What is the background for the BPA area under the 1-hour
ozone NAAQS?
    D. What is the background for the BPA area under the 1997 8-hour
ozone NAAQS?
III. What are the impacts of the court decisions on EPA's Phase 1
and 2 implementation rules upon the BPA area redesignation request?
    A. Summary of the Court Decisions
    B. Summary of EPA's Analysis of the Impact of the Court
Decisions on the BPA Area
    1. Requirements Under the Eight-Hour Ozone Standard
    2. Requirements Under the One-Hour Ozone Standard
IV. What are the CAA criteria for redesignation?
V. What is EPA's proposed determination regarding attainment for the
1997 8-hour and the 1-hour ozone NAAQS for the BPA area?
    A. Is the BPA area attaining the 1997 8-hour ozone NAAQS?
    B. Is the BPA area attaining the 1-hour ozone NAAQS?
VI. Does the BPA area have a fully approved SIP under section 110(k)
for the section 110 and part D requirements of the CAA applicable
for purposes of redesignation?
    A. What are the general SIP requirements applicable for purposes
of redesignation for the BPA area?
    B. What are the part D requirements applicable for purposes of
redesignation for the BPA area?
    1. What are the part D requirements applicable for purposes of
redesignation for the BPA area under the 1-hour ozone standard?
    2. What are the part D requirements applicable for purposes of
redesignation for the BPA area under the 1997 8-hour ozone standard?
    C. Does the BPA area have a fully approved applicable SIP under
section 110(k) of the CAA for purposes of redesignation?
VII. Are the air quality improvements in the BPA area due to
permanent and enforceable emissions reductions?
    A. Emissions Reductions as Shown by Emission Inventory Data
    B. Impact of Emissions Controls Implementation: Trend Analysis
    C. Permanent and Enforceable Emissions Controls Implemented
    1. Reasonably Available Control Techniques
    2. ROP Plans and Attainment Demonstration Plan
    3. NOX Control Rules
    4. Federal Emission Control Measures
    5. Additional State and Local Emission Reductions
    6. Controls to Remain in Effect
VIII. Does Texas have a fully approvable 1997 8-hour ozone
maintenance plan pursuant to section 175A of the CAA for the BPA
area?
    A. What is required in an ozone maintenance plan?
    B. How did Texas estimate the VOC and NOX emissions
for the attainment year and the projection years?
    C. Has the State demonstrated maintenance of the ozone standard
in the BPA area?
    D. Monitoring Network
    E. Verification of Continued Attainment
    F. What is the maintenance plan's contingency plan?
IX. What is EPA's evaluation of the BPA area's motor vehicle
emissions budget?
    A. What are the transportation requirements for approvable
MVEBs?
    B. What is the status of EPA's adequacy determination?
    C. Is the MVEB approvable?
X. EPA's Evaluation of the Backfill Contingency Measures for the 1-
Hour Ozone Failure-To-Attain Contingency Measures and the State's
Request To Remove an Unimplemented VOC Rule From the Texas SIP
XI. Proposed Actions
XII. Statutory and Executive Order Reviews

I. What are the actions EPA is proposing?

    EPA is proposing several related actions pursuant to the Act for
the BPA ozone nonattainment area, consisting of Hardin, Jefferson, and
Orange counties. EPA is proposing to determine that the BPA area has
attained the 1997 8-hour ozone NAAQS, based on the most recent three
years of complete, quality-assured monitoring data. EPA is proposing to
find that the BPA area has met the requirements for redesignation under
section 107(d)(3)(E) of the Act, and is therefore proposing to approve
a request from the State of Texas to redesignate the BPA area to
attainment of the 1997 8-hour ozone standard. EPA is also proposing to
approve, pursuant to section 175A of the Act, the area's 1997 8-hour
ozone maintenance plan as a revision to the Texas SIP; to approve the
plan's associated 2021 MVEB; and to approve the 2002 base year
emissions inventory. With the approval of the 2002 base year emissions
inventory, EPA is proposing to find that the BPA area has satisfied all
marginal area requirements for the 1997 8-hour ozone NAAQS. See Section
VI.B.2. and the Technical Support Document (TSD), Part I.A., for
further information on how the BPA area satisfies all the other
marginal area requirements. In addition, EPA is proposing to approve
the Texas Clean-Fuel Vehicle (CFV) Program Equivalency Demonstration as
meeting a serious area anti-backsliding requirement for the 1-hour
ozone standard. With the approval of the Texas CFV equivalency
determination, we are proposing to find that the BPA has satisfied all
1-hour anti-backsliding requirements for a serious area for the
purposes of redesignation. For further information on how the area
meets the serious area requirements apart from the CFV Program, please
see Section VI.B.1. and the TSD, Part II.A. Further, EPA is proposing
to make a determination that the BPA area is meeting the 1-hour ozone
standard.
    Finally, EPA is proposing to approve the 1-hour ozone post-1996
rate of progress (ROP) plan's contingency measures, substitute measures
for the SIP-approved failure-to-attain contingency measures, and the
removal from the Texas SIP of the contingency measure, a VOC SIP rule
for marine vessel loading, as meeting the requirements of section
110(l) and part D. Each component of this action is discussed in
greater detail below.
    First, EPA is proposing to make a determination under the Act that
the BPA area has attained the 1997 8-hour ozone NAAQS. The BPA area
includes three counties in Texas: Hardin, Orange, and Jefferson. This
proposed determination is based on complete, quality-assured and
certified ambient air quality monitoring data for the 2005-2007 and
2006-2008 ozone seasons that demonstrate that the 1997 8-hour ozone
NAAQS has been attained in the area. Data entered into EPA's Air
Quality System database (AQS) for 2009, but not yet certified also show
that the area continues to attain the standard.
    As one of the requirements for approving a redesignation request,
EPA is proposing to approve as a revision to the Texas SIP, the State's
maintenance

plan for the BPA area as meeting the requirements of section 175A. EPA
also is proposing to approve the 2002 base year emissions inventory for
the BPA area as meeting a requirement of the Act for a marginal 1997 8-
hour ozone area, section 182(a)(1). Additionally, we are proposing to
approve the Texas CFV Program Equivalency Demonstration as meeting the
serious area requirements of the Act for the 1-hour ozone standard.
With the approval of the 2002 base year emissions inventory and the CFV
Program Equivalency Demonstration, EPA is proposing to find that the
area has met all the applicable 8-hour ozone and 1-hour anti-
backsliding requirements of section 110 and part D of the Act for
purposes of redesignation, and that the BPA area has a fully approved
SIP under section 110(k) for purposes of redesignation.
    Based upon the above, EPA is proposing to approve a request from
the State of Texas submitted on December 16, 2008, through the Texas
Commission on Environmental Quality (TCEQ), to redesignate the BPA area
to attainment of the 1997 8-hour ozone standard. If EPA's determination
that the area has attained the standard is made final and the BPA area
is redesignated to attainment with an approved 8-hour ozone NAAQS
maintenance plan, then under the provisions of EPA's ozone
implementation rule, the obligations to submit and have an approved 1-
hour ozone NAAQS attainment demonstration and reasonably available
control measures determination (RACM) and contingency measures no
longer apply. As discussed later, BPA was not required to have an 8-
hour ozone attainment demonstration because Texas submitted a
redesignation request before the area's moderate area SIP requirements,
including an attainment demonstration, were due (for more information,
please see section VI).
    EPA is proposing to determine that the BPA area is meeting the 1-
hour ozone standard. This determination is based on complete, quality-
assured and certified ambient air quality monitoring data for the 2005-
2007 and 2006-2008 monitoring periods which demonstrate that the 1-hour
ozone NAAQS has been attained in the area; this determination is also
consistent with data for 2009 that are in AQS but not yet certified.
The obligations for the state to submit and for EPA to approve a 1-hour
serious area attainment demonstration and RACM determination and
contingency measures will be suspended if EPA's proposal to determine
that the area has attained the 1-hour standard is finalized, and the
area will be relieved of these obligations upon final redesignation for
the 1997 8-hour ozone standard. See 40 CFR 51.905(a)(3)(ii).
    Even though the obligations to submit and have approved the 1-hour
contingency measures are suspended upon a determination that the area
is attaining the 1-hour standard, and terminated upon the BPA area's
redesignation to attainment for the 8-hour ozone NAAQS, EPA is
proposing to approve the post-1996 ROP plan's contingency measures and
the backfill failure-to-attain contingency measures. EPA is proposing
this action on the contingency measures because the State is requesting
that an existing SIP-approved 1-hour ozone failure-to-attain
contingency measures be removed from the SIP, and has not indicated
that it wishes to withdraw the contingency measures SIP revision
submittals. EPA is proposing to approve the removal from the Texas SIP
of the failure-to-attain contingency measure, a VOC SIP rule for marine
vessel loading, as meeting the requirements of section 110(l) and part
D.

II. What is the background for these actions?

A. What are the National Ambient Air Quality Standards?

    Section 109 of the Act requires EPA to establish NAAQS (or
standards) for pollutants that ``may reasonably be anticipated to
endanger public health and welfare,'' and to develop a primary and
secondary standard for each NAAQS. The primary standard is designed to
protect human health with an adequate margin of safety, and the
secondary standard is designed to protect public welfare and the
environment. EPA has set NAAQS for six common air pollutants, referred
to as criteria pollutants: carbon monoxide, lead, nitrogen dioxide,
ozone, particulate matter, and sulfur dioxide. These standards present
state and local governments with the minimum air quality levels they
must meet to comply with the Act. Also, these standards provide
information to residents of the United States about the air quality in
their communities. A State's SIP addresses these requirements, as
required by section 110 and other provisions of the Act. The SIP is a
set of air pollution regulations, control strategies, other means or
techniques, and technical analyses developed by the state, to ensure
that the state meets the NAAQS.

B. What is ozone and why do we regulate it?

    Ozone, a gas composed of three oxygen atoms, at the ground level is
generally not emitted directly by sources such as from a vehicle's
exhaust or an industrial smokestack; rather, ground level ozone is
produced by a chemical reaction between nitrogen oxides
(NOX) and VOCs in the presence of sunlight and high ambient
temperatures. NOX and VOCs are referred to as precursors of
ozone. Motor vehicle exhaust and industrial emissions, gasoline vapors,
and chemical solvents all contain NOX and VOCs. Urban areas
tend to have high concentrations of ground-level ozone, but areas
without significant industrial activity and with relatively low
vehicular traffic are also subject to increased ozone levels because
wind carries ozone and its precursors many miles from the sources. The
Act establishes a process for air quality management through the NAAQS.
    Repeated exposure to ozone pollution may cause lung damage. Even at
very low concentrations, ground-level ozone triggers a variety of
health problems including aggravated asthma, reduced lung capacity, and
increased susceptibility to respiratory illnesses like pneumonia and
bronchitis. It can also have detrimental effects on plants and
ecosystems.

C. What is the background for the BPA area under the 1-hour ozone
NAAQS?

    On December 11, 2002, the U.S. Court of Appeals for the Fifth
Circuit vacated EPA's attainment date extension policy, which had been
applied to extend the 1-hour ozone attainment deadline for the BPA area
without reclassifying the area. Sierra Club v. EPA, 314 F.3d 735 (5th
Cir. 2002). Thereupon, EPA on March 30, 2004, withdrew the action
extending the attainment deadline for BPA, finalized its finding that
the area failed to attain the 1-hour ozone standard by the moderate
area deadline, and reclassified the BPA area by operation of law, to
serious nonattainment for the 1-hour ozone standard. See 61 FR 16483.
As a result of its reclassification to serious, the State was required,
among other things, to submit by April 29, 2005, a new 1-hour
attainment demonstration SIP with an attainment date of November 15,
2005 with new MVEBs and a new RACM analysis, a post-1996 rate of
progress (ROP) plan with associated MVEBs and contingency measures, a
new clean-fuel vehicle program or substitute, demonstrate the area met
RACT, implement the EPA-triggered

failure-to-attain contingency measures, submit a replacement for, i.e.,
backfill for, the triggered failure-to-attain contingency measures, and
to meet the remaining serious area requirements under section 182(c) of
the Act. The State submitted the required elements on November 16,
2004, as revised on October 15, 2005, and further revised on December
16, 2008. EPA has approved all of the 1-hour serious area requirements
for the BPA area, except for the CFV program, the ROP plan's
contingency measures, the replacement failure-to-attain contingency
measures, and the attainment demonstration SIP with associated MVEBs
and RACM analysis. See Section VI.B.1. for further details.

D. What is the background for the BPA area under the 1997 8-Hour Ozone
NAAQS?

    On July 18, 1997, EPA promulgated a revised 8-hour ozone standard
of 0.08 parts per million (ppm), which is more protective than the
previous 1-hour ozone standard (62 FR 38855).\1\ The EPA published the
1997 8-hour ozone designations and classifications on April 30, 2004
(69 FR 23858). The BPA area was designated nonattainment and initially
classified as marginal. The area includes three counties: Hardin,
Jefferson, and Orange counties (these constitute the former 1-hour
ozone nonattainment area). The effective date of designation for the
1997 8-hour ozone NAAQS was June 15, 2004. Under the marginal
nonattainment designation, the latest attainment date for the BPA area
was June 15, 2007. The BPA did not monitor attainment of the 1997 8-
hour ozone NAAQS by the June 15, 2007 deadline, based upon complete,
quality-assured and certified ambient air quality monitoring data for
the 2004-2006 ozone seasons. The BPA area already met all of the
requirements for a 1997 8-hour ozone marginal area except for the base
year emissions inventory requirement. See Section VI.B.2. for further
details.
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    \1\ On March 27, 2008 (73 FR 16436), EPA promulgated a revised
8-hour ozone standard of 0.075 ppm. On January 6, 2010, EPA proposed
to set the level of the primary 8-hour ozone standard within the
range of 0.060 to 0.070 ppm, rather than at 0.075 ppm. EPA
anticipates that by August 2010 it will have completed
reconsideration of the standard and thereafter will proceed with
designations. The actions addressed in today's proposed rulemaking
relate only to redesignation for the 1997 8-hour ozone standard.
EPA's actions with respect to this new standard do not affect EPA's
action here.
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    Therefore, EPA determined that the BPA area had failed to attain
the 1997 8-hour ozone standard by the applicable attainment deadline
and the area was reclassified by operation of law as a moderate 1997 8-
hour ozone nonattainment area, effective April 17, 2008 (73 FR 14391).
This determination was based on ambient air quality data from the 2004-
2006 monitoring period. More recent air quality data for the 2005-2007
and 2006-2008 monitoring periods, as well as 2009 data that are in AQS
but not yet certified, however, indicate that the BPA area is now
attaining the 1997 8-hour ozone standard. See Section V.A.
    The deadline for submission of requirements to meet the area's new
8-hour moderate nonattainment area classification was January 1, 2009
(73 FR 14391). The TCEQ, on December 16, 2008, submitted a request that
EPA determine that the BPA area has attained the 1997 8-hour ozone
standard and redesignate it to attainment. The request included a
maintenance plan with associated MVEBs, the 2002 base year emission
inventory, the Texas CFV Program Equivalency Demonstration, and the
backfill failure-to-attain contingency measures. The complete
redesignation request was received by EPA before the deadline for
submittal of the moderate area SIP requirements for the BPA area under
the 1997 8-hour ozone standard.

III. What are the impacts of the court decisions on EPA's Phase 1 and 2
implementation rules upon the BPA area redesignation request?

A. Summary of the Court Decisions

    This section sets forth EPA's views on the effect of the DC
Circuit's rulings on this proposed redesignation action. For the
reasons set forth below, EPA does not believe that the Court's rulings
alter any requirements relevant to this redesignation action or prevent
EPA from proposing or ultimately finalizing this redesignation. EPA
believes that the Court's December 22, 2006, June 8, 2007, and July 10,
2009, decisions impose no impediment to moving forward with
redesignation of this area to attainment of the 1997 8-hour ozone
NAAQS.
    EPA published a first phase rule governing implementation of the
1997 8-hour ozone standard (Phase 1 Rule) on April 30, 2004 (69 FR
23951). The Phase 1 Rule addresses classifications for the 1997 8-hour
NAAQS and for revocation for the 1-hour NAAQS; how anti-backsliding
principles will ensure continued progress toward attainment of the 1997
8-hour NAAQS; attainment dates; and the timing of emissions reductions
needed for attainment. The Phase 1 Rule revoked the 1-hour ozone
standard. The Phase 1 Rule also provided that 1-hour ozone
nonattainment areas are required to adopt and implement ``applicable
requirements'' according to the area's classification under the 1-hour
ozone standard for anti-backsliding purposes. See 40 CFR 51.905(a)(i).
On May 26, 2005, we determined that an area's 1-hour designation and
classification as of June 15, 2004 would dictate what 1-hour
obligations remain as ``applicable requirements'' under the Phase 1
Rule. 40 CFR 51.900(f). (70 FR 30592).
    On December 22, 2006, the U.S. Court of Appeals for the District of
Columbia Circuit vacated EPA's Phase 1 Rule in South Coast Air Quality
Management Dist. v. EPA, 472 F.3d 882 (DC Cir. 2006). On June 8, 2007,
in response to several petitions for rehearing, the court clarified
that the Phase 1 rule was vacated only with regard to those parts of
the rule that had been successfully challenged. See 489 F.3d 1245 (DC
Cir. 2007), cert. denied, 128 S.Ct. 1065 (2008). By limiting the
vacatur, the Court let stand EPA's revocation of the 1-hour standard
and those anti-backsliding provisions of the Phase 1 rule that had not
been successfully challenged. The June 8, 2007 opinion reaffirmed the
December 22, 2006 decision that EPA had improperly failed to retain
four measures required for 1-hour nonattainment areas under the anti-
backsliding provisions of the regulations: (1) Nonattainment area new
source review (NSR) requirements based on an area's 1-hour
nonattainment classification; (2) section 185 penalty fees for 1-hour
severe or extreme nonattainment areas that fail to attain the 1-hour
standard by the 1-hour attainment date; and (3) measures to be
implemented pursuant to section 172(c)(9) or 182(c)(9) of the Act, on
the contingency of an area not making reasonable further progress
toward attainment of the 1-hour NAAQS or for failure to attain that
NAAQS; and (4) the court clarified that the Court's reference to
conformity requirements was limited to requiring the continued use of
1-hour motor vehicle emissions budgets until 8-hour budgets were
available for 8-hour conformity determinations.
    EPA published a second rule governing implementation of the 1997 8-
hour ozone standard (Phase 2 Rule) on November 29, 2005 (70 FR 71612),
as revised on June 8, 2007 (72 FR 31727). The Phase 2 Rule addresses,
among other things, the Clean Data Policy as codified in 40 CFR 51.918.
The DC Circuit upheld the Clean Data Policy, agreeing with the Tenth
Circuit that EPA's interpretation of the Act was reasonable. NRDC v.
EPA, 571 F.3d

1245 (DC Cir. 2009). See Sierra Club v. EPA, 99 F.3d 1551 (10th Cir.
1996).

B. Summary of EPA's Analysis of the Impact of the Court Decisions on
the BPA Area

1. Requirements Under the Eight-Hour Ozone Standard
    For the eight-hour ozone standard, the BPA ozone nonattainment area
was originally classified as marginal nonattainment under subpart 2 of
the CAA. The June 8, 2007, opinion clarifies that the Court did not
vacate the Phase 1 Rule's provisions with respect to classifications
for areas under subpart 2. The Court's decision, therefore, upholds
EPA's classifications for those areas classified under subpart 2 for
the eight-hour ozone standard, and all eight-hour ozone requirements
for these areas remain in place.
2. Requirements Under the One-Hour Ozone Standard
    In its June 8, 2007, decision, the Court limited its vacatur so as
to uphold those provisions of EPA's anti-backsliding requirements that
were not successfully challenged. Therefore, an area must meet the
anti-backsliding requirements, see 40 CFR 51.900, et seq.; 70 FR 30592,
30604 (May 26, 2005), which apply by virtue of the area's
classification for the one-hour ozone NAAQS.
    The provisions in 40 CFR 51.905(a)-(c) explain the applicable 1-
hour ozone anti-backsliding requirements that remain in effect. Areas
must continue to meet those requirements to be redesignated. However,
the court vacated the portions of 51.905(e) that removed the
obligations to meet the additional provisions noted above and as a
result, states also have had to continue to meet these additional
requirements. We address below how the 1-hour anti-backsliding
obligations (as interpreted and directed by the court) are met in the
context of a redesignation action for the 1997 8-hour NAAQS.
    The BPA 1-hour nonattainment area was reclassified as serious for
that standard on June 15, 2004, so the 1-hour ozone standard
requirements applicable to the area are those that apply to
nonattainment areas classified as serious. Pursuant to 40 CFR
51.905(a)-(c) and the court opinions, the applicable serious area
requirements include a demonstration that the area meets serious area
Reasonably Available Control Technology (RACT) for both VOC and
NOX, a revised 1990 base year emissions inventory, a Post-
1996 Rate of Progress (ROP) Plan with Contingency Measures and MVEB, a
replacement, i.e., a backfill, for the failure-to-attain contingency
measures triggered by the reclassification (this is equivalent to the
requirement to meet the serious area contingency measure requirement),
an enhanced monitoring program, a clean-fuel vehicle program or an
acceptable substitute, an attainment demonstration with a reasonably
available control measures (RACM) demonstration, revised transportation
conformity budgets, and serious area NSR. The State has submitted each
of the required 1-hour serious area plan requirements. EPA has approved
each of the 1-hour serious area requirements except for the following:
The attainment demonstration and RACM analysis, the CFV program or
acceptable substitute, the ROP plan's contingency measures, the
backfill failure-to-attain contingency measures, and the serious NSR
requirements. The obligations to have an approved 1-hour ROP plan's
contingency measures, backfill failure-to-attain contingency measures,
and attainment demonstration with a RACM demonstration would be
suspended by a determination of attainment of the 1-hour ozone
standard, and will cease to apply upon redesignation of the area for
the 8-hour standard. The 1-hour anti-backsliding serious Nonattainment
New Source Review (NNSR) will also cease to apply upon redesignation
for the 1997 8-hour ozone standard, and will be replaced by prevention
of significant deterioration (PSD) SIP.
    EPA is proposing to approve the following outstanding 1-hour ozone
applicable requirement: The Texas CFV Program Equivalency
Demonstration. EPA also is proposing to approve the Post-1996 ROP
plan's contingency measures and the State's backfill failure-to-attain
contingency measures. EPA has taken no action on the submitted
attainment demonstration with the RACM analysis and serious 1-hour
ozone NSR requirements. In lieu of nonattainment NSR, the BPA area will
become subject to PSD upon redesignation.
    For the BPA 1-hour ozone serious nonattainment area, EPA previously
approved VOC and NOX rules into the Texas SIP, found they met RACT, and
found that the BPA area meets the serious area VOC and NOX RACT
requirements. EPA also previously approved the revised 1990 base year
emissions inventory, the post-1996 ROP plan and MVEB, and the enhanced
monitoring program. In this rulemaking, EPA is proposing to approve the
State's CFV Equivalence Demonstration as meeting the outstanding 1-hour
ozone anti-backsliding serious area requirement for the area. We also
are proposing to approve the post-1996 ROP plan's contingency measures
and the backfill failure-to-attain contingency measures. The obligation
to submit a 1-hour serious area attainment demonstration and RACM
analysis and contingency measures will be suspended if EPA's proposal
to determine that the area has attained the 1-hour standard is
finalized, and the area will be relieved of these obligations upon
final redesignation for the 1997 8-hour ozone standard.

IV. What are the CAA criteria for redesignation?

    The Act sets forth the requirements for redesignating a
nonattainment area to attainment. Specifically, CAA section
107(d)(3)(E) allows for redesignation providing that (1) the
Administrator determines that the area has attained the applicable
NAAQS; (2) the Administrator has fully approved the applicable
implementation plan for the area under CAA section 110(k); (3) the
Administrator determines that the improvement in air quality is due to
permanent and enforceable reductions in emissions resulting from
implementation of the applicable SIP and applicable Federal air
pollutant control regulations and other permanent and enforceable
reductions; (4) the Administrator has fully approved a maintenance plan
for the area as meeting the requirements of CAA section 175A; and (5)
the State containing such area has met all requirements applicable to
the area under CAA section 110 and part D.
    EPA provided guidance on redesignation 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). 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, 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;
    5. ``State Implementation Plan (SIP) Actions Submitted in
Response to Clean Air

Act (ACT) Deadlines,'' Memorandum from John Calcagni, Director, Air
Quality Management Division, October 28, 1992;
    6. ``Technical Support Documents (TSD's) 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 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.

V. What is EPA's proposed determination degarding attainment for the
1997 8-hour and the 1-hour ozone NAAQS for the BPA area?

A. Is the BPA area attaining the 1997 8-hour ozone NAAQS?

    For ozone, an area may be considered to be attaining the 1997 8-
hour ozone NAAQS if there are no violations, as determined in
accordance with 40 CFR 50.10 and Appendix I of part 50, based on three
complete, consecutive calendar years of quality-assured air quality
monitoring data. This standard is attained if the 3-year average of the
annual fourth highest daily maximum 8-hour average ambient ozone
concentration at each monitor in the area that is eligible for
comparison to the NAAQS is less than or equal to 0.08 ppm. Based on the
rounding convention described in 40 CFR part 50, Appendix I, the 1997
8-hour ozone standard is attained at a monitor if the design value is
0.084 ppm or below. The data must be collected and quality-assured in
accordance with 40 CFR part 58, and recorded in the EPA Air Quality
System (AQS). The monitors generally should have remained at the same
location for the duration of the monitoring period required for
demonstrating attainment. For ease of communication, many reports of
ozone concentrations are given in parts per billion (ppb); ppb = ppm x
1,000. Thus, 0.084 ppm equals 84 ppb.
    EPA reviewed BPA area ozone monitoring data from ambient ozone
monitoring stations for the ozone seasons 2005 through 2007, as well as
data for the ozone seasons 2006 through 2008 and data for 2009 in AQS
but not yet certified. The 2005-2007 ozone season data was relied upon
by Texas in its submittal. Since the State's submittal, the 2006-2008
ozone season data has been quality assured and recorded in AQS. The
design value for 2005-2007 is 0.083 ppm; the design value for 2006-2008
is 0.081 ppm. The preliminary design value for the additional year of
2009, i.e., the 2007-2009 ozone seasons, is 0.077 ppm. The data for all
three sets of ozone seasons show that the BPA area is attaining the
1997 8-hour ozone NAAQS.
    Table 1 provides the design values based on data from the nine
monitors in the BPA area. Each of the nine monitoring sites in the BPA
area monitored attainment with the 1997 8-hour ozone standard for the
2005-2007 ozone seasons and for the 2006-2008 ozone seasons. (To find
the overall design value for the area for a given year, simply find the
highest design value from any of the nine monitors for that year.) The
location of each monitoring site in the BPA area is shown on the map
entitled, ``BPA ozone and ozone precursor monitoring network'' included
in the docket associated with this action.

                   Table 1--BPA Area Fourth Highest 8-hour Ozone Concentrations and Design Values Data for All Monitors (ppm) 1 2 3 4
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             4th Highest daily max                     Design values three year averages
                    BPA monitor site                     -----------------------------------------------------------------------------------------------
                                                             2005        2006        2007        2008        2009      2005-2007   2006-2008   2007-2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Lamar (48-245-0009).....................................       0.081       0.085       0.080       0.072       0.071       0.082       0.079       0.074
Port Arthur (48-245-0011)...............................       0.079       0.085       0.073       0.071       0.073       0.079       0.076       0.072
Sabine Pass (48-245-0101)...............................       0.082       0.084       0.078       0.069       0.073       0.081       0.077       0.073
Hamshire (48-245-0022)..................................       0.080       0.081       0.077       0.070       0.070       0.079       0.076       0.072
West Orange (48-361-1001)...............................       0.078       0.078       0.073       0.064       0.073       0.076       0.071       0.070
Mauriceville (48-361-1100)..............................       0.076       0.071       0.075       0.069       0.067       0.074       0.071       0.070
Jefferson Co. Airport (48-245-0018).....................       0.083       0.084       0.082       0.078       0.071       0.083       0.081       0.077
SETRPC Port Arthur (48-245-0628)........................       0.078       0.082       0.076       0.065       0.069       0.078       0.074       0.070
Nederland (48-245-1035) \4\.............................  ..........       0.068       0.082       0.067       0.069  ..........       0.072       0.072
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Unlike for the 1-hour ozone standard, design value calculations for the 1997 8-hour ozone standard are based on a rolling three-year average of the
  annual 4th highest values (40 CFR Part 50, Appendix I).
\2\ Monitoring site locations for BPA are shown on a map entitled, ``BPA ozone and ozone precursor monitoring network'' included in the docket.
\3\ Monitoring data for 2009 are in AQS but not yet certified (as of March 26, 2010).
\4\ Monitoring did not begin at the Nederland site until 2006.

    The fourth high values for 8-hour ozone for 2005 through 2009, and
the 3-year average of these values (i.e., design value), are summarized
in Table 2:

                         Table 2--BPA Area Fourth Highest 8-Hour Ozone Concentrations and Design Values Data Summary (ppm) 1 2 3
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  4th highest daily max                             Design values three-year averages
            BPA area overall             ---------------------------------------------------------------------------------------------------------------
                                              2005          2006          2007          2008          2009        2005-2007     2006-2008     2007-2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                0.083         0.084         0.082         0.078         0.071         0.083         0.081         0.077
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Unlike for the 1-hour ozone standard, design value calculations for the 8-hour ozone standard are based on a rolling three-year average of the
  annual 4th highest values (40 CFR Part 50, Appendix I).
\2\ Monitoring data for 2009 are in AQS but not yet certified (as of March 26, 2010).
\3\ The fourth high data in this table is from the Jefferson Co. Airport monitor site (AQS 48-245-0018).

    As shown in Table 2, the 8-hour ozone design value for 2005-2007,
and also for 2006-2008, which is based on a three-year average of the
fourth-highest daily maximum average ozone concentration at the monitor
recording the highest concentrations, is below the 1997 8-hour ozone
NAAQS. The design values of 0.083 ppm for 2005-2007 and 0.081 ppm for
2006-2008 demonstrate the area is in attainment of the 1997 8-hour
ozone NAAQS. Data through 2008 have been quality assured, as recorded
in AQS. Data for 2009 not yet certified also indicate that the area
continues to attain the 1997 8-hour NAAQS. The preliminary design value
for the BPA area for 2007-2009 is 0.077 ppm. In summary, monitoring
data for BPA for the three years 2005 through 2007, as well as
monitoring data for the three years 2006 through 2008 and preliminary
monitoring data for 2009, show continued attainment of the 1997 8-hour
ozone standard. Preliminary data for BPA for 2009 is included in the
docket.
    In addition, as discussed below with respect to the maintenance
plan, Texas has committed to continue monitoring in this area in
accordance with 40 CFR part 58. In summary, EPA is proposing to
determine that complete, quality- assured data for the 2005-2007 and
2006-2008 ozone seasons show that the BPA 8-hour ozone nonattainment
area has attained the 1997 8-hour ozone NAAQS and data for 2009 in AQS
but not yet certified show that the area continues to attain the
standard.
    Should the area violate the 1997 8-hour ozone standard before the
proposed redesignation is finalized, EPA will not proceed with final
redesignation.

B. Is the BPA area attaining the 1-hour ozone NAAQS?

    EPA is also proposing to determine that the BPA 1-hour ozone
nonattainment area is currently attaining the 1-hour ozone NAAQS. This
determination is based upon three years of complete, quality-assured
and state- certified ambient air monitoring data that show the area has
monitored attainment of the 1-hour ozone NAAQS for the 2006-2008
monitoring period. Data for 2009 in AQS but not yet certified indicate
that that the area continues in attainment for the 1-hour standard.
    In 1979, EPA promulgated the revised 1-hour ozone standard of 0.12
parts per million (ppm) (44 FR 8202, February 8, 1979). For ease of
communication, many reports of ozone concentrations are given in parts
per billion (ppb); ppb = ppm x 1000. Thus, 0.12 ppm becomes 120 ppb or
124 ppb when rounding is considered.
    An area exceeds the 1-hour ozone standard each time an ambient air
quality monitor records a 1-hour average ozone concentration above 0.12
ppm in any given day. Only the highest 1-hour ozone concentration at
the monitor during any 24-hour day is considered when determining the
number of exceedance days at the monitor. An area violates the ozone
standard if, over a consecutive 3-year period, more than 3 expected
exceedances occur at the same monitor. For more information, please see
``National 1-hour primary and secondary ambient air quality standards
for ozone'' (40 CFR 50.9) and ``Interpretation of the 1-Hour Primary
and Secondary National Ambient Air Quality Standards for Ozone'' (40
CFR Part 50, Appendix H).
    The fourth-highest daily ozone concentration over a 3-year period
is called the design value (DV). The DV indicates the severity of the
ozone problem in an area; it is the ozone level around which a state
designs its control strategy for attaining the ozone standard. A
monitor's DV is the fourth highest ambient concentration recorded at
that monitor over the previous 3 years. An area's DV is the highest of
the design values from the area's monitors.
    The Act, as amended in 1990, required EPA to designate as
nonattainment any area that was violating the 1-hour ozone standard,
generally based on air quality monitoring data from the 1987 through
1989 period (section 107(d)(4) of the Act; 56 FR 56694, November 6,
1991).
    EPA is proposing to determine that the BPA 1-hour ozone
nonattainment area is currently in attainment of the 1-hour standard
based on the most recent 3 years of quality-assured air quality data.
Certified ambient air monitoring data show that the area has monitored
attainment of the 1-hour ozone NAAQS for the 2005-2007 as well as the
2006-2008 monitoring period. Also, data in AQS but not yet certified
for 2009 show that the BPA area has monitored no exceedances in that
year and continues to meet the 1-hour ozone standard. Table 3 contains
the 1-hour ozone data for the BPA 1-hour ozone nonattainment area
monitors that show that the area is currently attaining the 1-hour
ozone NAAQS, consistent with 40 CFR Part 50, Appendix H.

                                                Table 3--Beaumont-Port Arthur Area 1-Hour Ozone Data 1 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Number of exceedances                 3-year exceedances              Design values (ppb)
               BPA Monitor site                ---------------------------------------------------------------------------------------------------------
                                                 2005    2006    2007    2008    2009   2005-2007  2006-2008  2007-2009  2005-2007  2006-2008  2007-2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Lamar (48-245-0009)...........................       0       0       0       0       0         0          0          0        106        106         98
Port Arthur (48-245-0011).....................       0       0       0       0       0         0          0          0        104        101         93
Sabine Pass (48-245-0101)\2\..................     1.2       0       0       0       0       0.4          0          0        107        102         96
Hamshire (48-245-0022)........................       0       0       0       0       0         0          0          0         97         97         95
West Orange (48-361-1001).....................       0       0       0       0       0         0          0          0         99        100        100
Mauriceville (48-361-1100)....................       0       0       0       0       0         0          0          0         96         96         87
Jefferson Co. Airport (48-245-0018)...........       0       0       0       0       0         0          0          0        104        102         99
SETRPC Port Arthur (48-245-0628)..............       0       0       0       0       0         0          0          0         98         98         95
Nederland (48-245-1035).......................               0       0       0       0                    0          0                    93         93
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Monitoring data for 2009 are in AQS but not yet certified (as of March 26, 2010).
\2\ For the Sabine Pass site in 2005 the actual number of exceedances was 1 and the estimated number of exceedances was 1.2.

    EPA proposes to find that the BPA 1-hour ozone nonattainment area
has attained the 1-hour ozone standard.

VI. Does the BPA area have a fully approved SIP under section 110(k)
for the section 110 and part D requirements of the CAA applicable for
purposes of redesignation?

    As discussed above in Section III, in evaluating a request for
redesignation, EPA's long-held position is that those requirements
expressly linked by statutory language with the attainment and
reasonable further progress requirements do not apply if EPA determines
that the area is attaining the standard. Additionally, it is EPA's
interpretation of CAA section 107(d)(3)(E) that applicable requirements
of the Act that come due subsequent to the area's submittal of a
complete redesignation request remain applicable until a redesignation
is approved, but are not required as a prerequisite to redesignation.
Under this interpretation, to qualify for redesignation, states
requesting redesignation to attainment must meet only the relevant
requirements of the Act that come due prior to the submittal of a
complete redesignation request. See Sierra Club v. EPA, 375 F.3d 537
(7th Cir. 2004). See also 68 FR 25424, 25427 (May 12, 2003)
(redesignation of St. Louis, Missouri); September 4, 1992 Calcagni
memorandum; September 17, 1993 Michael Shapiro memorandum, and 60 FR
12459, 12465-66 (March 7, 1995) (redesignation of Detroit-Ann Arbor,
MI).
    Therefore, the applicable 1997 8-hour ozone standard requirements
for the BPA area are those for a marginal, not a moderate nonattainment
area. The State submitted a complete redesignation request for BPA on
December 16, 2008, prior to the January 1, 2009 deadline for the
submittal of the area's moderate area SIP requirements. Furthermore,
since EPA is proposing to determine that the area has attained the 1997
8-hour ozone standard, under the principles enunciated in the General
Preamble and pursuant to 40 CFR 51.918, if that determination is
finalized, then the obligations to submit requirements related to
attainment and RFP are not applicable for purposes of redesignation.
    The requirements to submit for a moderate area, certain planning
SIPs related to attainment, including attainment demonstration
requirements [the reasonably available control measures (RACM)
requirement of section 172(c)(1) of the Act, the reasonable further
progress (RFP) and attainment demonstration requirements of sections
172(c)(2) and (6) and 182(b)(1) of the Act, and the requirement for
contingency measures of section 172(c)(9) of the Act] would not be
applicable to the area as long as it continues to attain the 1997 8-
hour ozone NAAQS and would cease to apply upon redesignation to
attainment.
    In addition, in the context of redesignations, EPA has interpreted
requirements related to attainment as not applicable for purposes of
redesignation. For example, in the General Preamble EPA stated that:

    [T]he section 172(c)(9) requirements are directed at ensuring
RFP and attainment by the applicable date. These requirements no
longer apply when an area has attained the standard and is eligible
for redesignation. Furthermore, section 175A for maintenance plans *
* * provides specific requirements for contingency measures that
effectively supersede the requirements of section 172(c)(9) for
these areas. [General Preamble for the ``Interpretation of Title I
of the Clean Air Act Amendments of 1990,'' (General Preamble) 57 FR
13498, 13564 (April 16, 1992)].

See also Calcagni memorandum dated Sept. 4, 1992 (``The requirements
for reasonable further progress and other measures needed for
attainment will not apply for redesignations because they only have
meaning for areas not attaining the standard.'' From the memorandum,
section 4.b.i.).
    Today, EPA is also proposing to approve the 2002 base year
emissions inventory as meeting the marginal area applicable
requirements of part D. In addition, EPA is proposing to approve the
CFV program Equivalency Demonstration as meeting the only outstanding
1-hour ozone anti-backsliding obligation for purposes of redesignation.
Furthermore, EPA is proposing to find that upon final approval of these
two measures, the BPA area will have a fully approved SIP under CAA
section 110(k) for redesignation purposes and it will meet all CAA
section 110 and part D applicable requirements for purposes of
redesignation for the 1997 8-hour ozone standard.

A. What are the general SIP requirements applicable for purposes of
redesignation for the BPA area?

    EPA's long-held interpretation of the Act is that section 110
general SIP elements not linked to an area's nonattainment status and
classification are not applicable for purposes of redesignation.
Section 110(a)(2) of title I of the Act delineates the general
requirements for a SIP, which include enforceable emissions 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 limitations.
    For example, CAA section 110(a)(2)(d) requires that SIPs contain
certain measures to prevent sources in a state from significantly
contributing to air quality problems in another state. To implement
this provision, EPA has required certain states, but not Texas, to
establish programs to address the

transport of air pollutants (NOX SIP Call). Texas submitted
a SIP revision to address interstate transport on May 1, 2008. The
purpose of that SIP revision was to document that emissions from Texas'
sources that may contribute to nonattainment in another state have been
mitigated through existing control strategies. However, CAA section
110(a)(2)(D) requirements for a state are not linked with a particular
nonattainment area's designation and classification in that state. EPA
believes that the requirements linked with a particular nonattainment
area's designation and 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.
Thus, we do not believe that these requirements should be construed to
be applicable requirements for purposes of redesignation.
    Further, EPA believes that the other CAA section 110 elements not
connected with nonattainment plan submissions and not linked with an
area's attainment status are not applicable requirements for purposes
of redesignation. The State will still be subject to these requirements
after the area is redesignated. The section 110 and part D
requirements, which are linked with a particular area's designation and
classification, are the relevant measures to evaluate in reviewing a
redesignation request.
    We have reviewed Texas's SIP and have concluded that it meets the
general SIP requirements under section 110 of the CAA to the extent
they are applicable for purposes of redesignation. EPA has previously
approved provisions of the Texas SIP addressing section 110 elements
under the 1-hour ozone standard (40 CFR 52.2270-.2280). Further, in a
certified letter dated April 4, 2008 (a copy of this letter and the
enclosure to the letter are available in the docket), as well as in a
SIP revision submitted May 1, 2008, Texas confirmed that the State
continues to meet the section 110 requirements for the 8-hour ozone
standard. EPA has not yet taken rulemaking action on these submittals;
however, such approval is not necessary for redesignation.

B. What are the part D requirements applicable for purposes of
redesignation for the BPA area?

    EPA has reviewed the Texas SIP for the BPA area with respect to SIP
requirements applicable for purposes of redesignation under part D of
the Act for both the 1-hour ozone NAAQS and the 1997 8-hour ozone
NAAQS. EPA believes that the Texas SIP for the BPA area contains
approved SIP measures that meet the part D requirements applicable for
purposes of redesignation, with the exception of the requirements for
an approved emissions inventory and the CFV program Equivalency
Demonstration, which we are proposing to approve in this rulemaking.
Upon final approval of these requirements, the BPA area will meet all
of the requirements applicable to the area for purposes of
redesignation under part D of the Act.
    The 1-hour and 1997 8-hour ozone applicable requirements are
discussed in detail below.
1. What are the part D requirements applicable for purposes of
redesignation for the BPA area under the 1-hour ozone standard?
    The anti-backsliding provisions at 40 CFR 51.905(a)(1) prescribe
one-hour ozone NAAQS requirements that continue to apply after
revocation of the one-hour ozone NAAQS for former one-hour ozone
nonattainment areas. Section 51.905(a)(1) provides that:
    The area remains subject to the obligations to adopt and implement
the applicable requirements defined in section 51.900(f), except as
provided in paragraph (a)(1)(iii) of this section and except as
provided in paragraph (b) of this section.
    Section 51.900(f), as amended by 70 FR 30592, 30604 (May 26, 2005),
provides that: Applicable requirements means that for an area that the
following requirements, to the extent such requirements applied to the
area for the area's classification under section 181(a)(1) of the CAA
for the one-hour NAAQS at the time of designation for the eight-hour
NAAQS, remain in effect:
    (1) Reasonably available control technology (RACT).
    (2) Inspection and maintenance programs (I/M).
    (3) Major source applicability cut-offs for purposes of RACT.
    (4) Rate of Progress (ROP) reductions.
    (5) Stage II vapor recovery.
    (6) Clean-fuel vehicle program under section 182(c)(4) of the CAA.
    (7) Clean fuels for boilers under section 182(e)(3) of the CAA.
    (8) Transportation Control Measures (TCMs) during heavy traffic
hours as provided under section 182(e)(4) of the CAA.
    (9) Enhanced (ambient) monitoring under section 182(c)(1) of the
CAA.
    (10) TCMs under section 182(c)(5) of the CAA.
    (11) Vehicle Miles Travelled (VMT) provisions of section 182(d)(1)
of the CAA.
    (12) NOX requirements under section 182(f) of the CAA.
    (13) Attainment demonstration or alternative as provided under
section 51.905(a)(1)(ii).
    In addition to applicable requirements listed under section
51.900(f), the State must also comply with the additional 1-hour anti-
backsliding requirements discussed in the Court's decisions in South
Coast Air Quality Management Dist. v. EPA: (1) NSR requirements based
on the area's 1-hour ozone nonattainment classification; (2) section
185 source penalty fees; (3) contingency measures to be implemented
pursuant to section 172(c)(9) or 182(c)(9) of the CAA for areas not
making reasonable further progress toward attainment of the one-hour
ozone NAAQS, or for failure to attain the NAAQS; and, (4)
transportation conformity requirements for certain types of Federal
actions.
    Pursuant to 40 CFR 51.905(c), the area is subject to the
obligations set forth in 51.905(a) and 51.900(f). The following
addresses the one-hour ozone SIP requirements applicable to the BPA
area pursuant to these anti-backsliding requirements and those
discussed in the Court's decision in South Coast Air Quality Management
Dist. v. EPA.
    Prior to the revocation of the one-hour ozone standard on June 15,
2005, the BPA area was classified as a serious nonattainment area for
the one-hour ozone standard with a compliance date of November 15,
2007. In reviewing the State of Texas' 1997 8-hour ozone redesignation
request for the BPA area, we assessed whether the area satisfied the
CAA anti-backsliding requirements under the one-hour ozone standard. We
conclude that the BPA area and the State of Texas have satisfied all
anti-backsliding CAA requirements applicable to a serious one-hour
ozone nonattainment area for purposes of redesignation, except for the
CFV program or an acceptable substitute under section 183(c)(4) of the
CAA. See 40 CFR 51.905 (6). Today, we are proposing to approve the
State's equivalency CFV demonstration. See below.
    The following discusses how the applicable CAA requirements have
been met in the BPA area. Note that the State commits to continue to
comply with these requirements unless revised through SIP revisions
approved by the EPA.
    40 CFR 51.905 (1) and (3). RACT and Major source applicability cut-
offs for purposes of RACT. EPA found that the BPA area met the serious
area VOC and

NOX RACT requirements for the 1-hour standard on July 10,
2009 (74 FR 33146). This action also approved Texas' changes to the
batch process rules and the shipbuilding and ship repair rules that
lower the threshold for affected sources of VOC emissions to the
serious area requirements of 50 tons per year (tpy). This July 10, 2009
approval action satisfies the 1-hour ozone serious RACT requirements
for the BPA area.
    40 CFR 51.905 (2). Inspection and maintenance programs (I/M). There
is no requirement for the BPA area to have an I/M program. The Federal
I/M Flexibility Amendments of 1995 determined that urbanized areas with
populations less than 200,000 for 1990 (such as BPA) are not mandated
to participate in the I/M program (60 FR 48033, September 18, 1995).
    40 CFR 51.905 (4). Rate of progress reductions. We approved the
post-1996 ROP Plan and its associated MVEB and a revised 1990 base year
emissions inventory on February 22, 2006 (71 FR 8962) for the BPA
serious 1-hour ozone nonattainment area. This plan covered the 3-year
periods of 1997-1999, 2000-2002, and 2003-2005, achieving 27 percent
reductions no later than November 15, 2005.
    40 CFR 51.905 (5) Stage II vapor recovery. EPA approved Texas'
Stage II rules and amendments for the BPA area on April 15, 1994 (59 FR
17940), and as revised on March 29, 2005 (70 FR 15769).
    40 CFR 51.905 (7) Clean fuels for boilers under section 182(e)(3)
of the CAA. This is an extreme area requirement and therefore does not
apply to the BPA serious area.
    40 CFR 51.905 (8) Transportation Control Measures (TCMs) during
heavy traffic hours as provided under section 182(e)(4) of the CAA.
This is an extreme area requirement and therefore does not apply to the
BPA serious area.
    40 CFR 51.905 (9) Enhanced (ambient) monitoring under section
182(c)(1) of the CAA. EPA approved the Texas SIP revision for enhanced
ambient monitoring on October 4, 1994 (59 FR 50504) as meeting section
182(c)(1) of the CAA. The monitoring network meets the requirements in
40 CFR Part 58 and section 182(c)(1) for enhanced monitoring.
    40 CFR 51.905 (10) TCMs under section 182(c)(5) of the CAA. As
required by the Clean Air Act section 176(c) (42 U.S.C. 7506(c)), the
Southeast Texas Regional Planning Commission, the Metropolitan Planning
Organization for the BPA area, demonstrated conformity of area
transportation plans to the motor vehicle emissions budgets established
in the BPA Rate-of-Progress SIP approved by EPA on February 22, 2006
(71 FR 8962). The Federal Highway Administration determined on
September 25, 2007 that the area transportation plans conformed to the
budgets established by the SIP. The current aggregate vehicle mileage,
aggregate vehicle emissions, congestion levels, and other relevant
parameters were determined, as part of the conformity analysis, to be
consistent with those used for the area's demonstration of progress
towards attainment.
    40 CFR 51.905 (11) Vehicle miles traveled (VMT) provisions of
section 182(d)(1) of the CAA. This is a severe area requirement and
therefore does not apply to the BPA serious area.
    40 CFR 51.905 (12) NOX requirements under section 182(f)
of the CAA. These requirements were satisfied by a previous EPA action
approving a Texas SIP revision for NOX controls in the BPA
area on March 3, 2000 (65 FR 11468).
    40 CFR 51.905 (13) Attainment demonstration or alternative as
provided under section 51.905(a)(1)(ii). Texas elected the option to
submit an 8-hour ozone attainment demonstration SIP to demonstrate
attainment of the 8-hour ozone standard by the area's 8-hour ozone
attainment date with associated MVEBs and an RACM analysis. The SIP was
submitted to EPA on November 16, 2004, as revised on October 15, 2005.
EPA has not acted on it. As discussed previously, EPA's long-held
position is that an attainment demonstration with the RACM analysis is
not an applicable requirement for purposes of evaluating an ozone
redesignation request. (General Preamble, 57 FR 13564.) See also 40 CFR
51.918. Upon the effective date of redesignation, the obligation is
terminated. Moreover EPA is proposing to determine that the area has
attained the 1-hour ozone standard, and for that reason as well, if the
determination is finalized, the area would not be obligated to submit a
1-hour attainment demonstration.
South Coast Anti-Backsliding Measures
    NSR. EPA has long held its position that a fully-approved NSR
program is not an applicable requirement for purposes of evaluating an
ozone redesignation request. The rationale for this view is described
in a memorandum from Mary Nichols, Assistant Administrator for Air and
Radiation dated October 14, 1994, titled, ``Part D New Source Review
Requirements for Areas Requesting Redesignation to Attainment.'' The
State's PSD program becomes effective in the area immediately upon
redesignation to attainment.\2\ Consequently, EPA concludes that an
approved NSR program is not an applicable requirement for purposes of
redesignation. See the more detailed explanations of this issue in the
following rulemakings: 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, 53669, October 23, 2001);
Grand Rapids, Michigan (61 FR 31831, 31836-31837, June 21, 1996).
---------------------------------------------------------------------------

    \2\ If the State believes that a rule change is required, it
must adopt and submit it to EPA for approval as a SIP revision. Upon
EPA's approval of the SIP revision submittal, PSD applies in the
area.
---------------------------------------------------------------------------

    Section 185 fees. This is a requirement for severe and extreme
areas only, and therefore does not apply to the BPA serious area.
    Contingency Measures. Sections 172(c)(9) and 182(c)(9) of the CAA
require ozone control plans to contain measures to be implemented in
the event that any RFP or attainment milestone in the ozone control
plan is missed. EPA approved the 1-hour ozone contingency measures for
the BPA area on February 10, 1998 at 63 FR 6659 as part of EPA's
approval of the BPA area's 1-hour ozone 15% VOC ROP Plan. These
contingency measures included the Federal Tier I rules, the Federal
small engine VOC rule, and excess reductions from the 15% VOC ROP Plan.
When EPA reclassified the BPA area to serious for the 1-hour ozone
NAAQS, these are the contingency measures that EPA triggered. EPA is
proposing to approve the post-1996 ROP plan's associated contingency
measures, submitted to EPA on November 16, 2004. The contingency
measures are federal and state measures already being implemented that
are in excess of those needed for ROP and are sufficient to provide the
needed contingency measure reductions. For more information, please see
Section X. and TSD Part II.E. found in the electronic docket.
    As noted elsewhere in this proposed rule, it is EPA's position that
contingency measures are not an applicable requirement for purposes of
evaluating an ozone redesignation request. EPA's long-held position is
that those requirements expressly linked by statutory language with the
attainment and reasonable further progress do not apply when an area
requesting redesignation is attaining the standard.
    For more detail of the applicable 1-hour ozone requirements and
EPA's approval actions, see Part II.A. of the

TSD, which is included in the electronic docket.
    As previously noted, it is EPA's position that further EPA action
is required upon one 1-hour ozone serious area requirement: The CFV
program or substitute. A summary of the Texas submittals and EPA's
proposed action follows. More detail on the contents of the submittals
and EPA's technical analysis may be found in the TSD, Part II.A.
Clean-Fuel Vehicle Program (Including Centrally Fueled Fleets
Requirements)
    (i) What are the Clean-fuel vehicle program requirements?
    The 1990 CAA amendments established the clean-fuel vehicle (CFV)
program that requires clean alternative fuels for a ``covered fleet''
in order to reduce emissions in certain ozone and carbon monoxide
nonattainment areas. A ``covered fleet'' means a fleet that has ten or
more vehicles that are either centrally fueled or capable of being
centrally fueled. For serious ozone nonattainment areas, States are
required to either adopt the CFV program prescribed under CAA part C of
title II, or implement a substitute for the program that demonstrates
equivalent long-term reductions in ozone-producing emissions within 1
year after reclassification (CAA sections 182(c)(4) and 246(a)(3)). CAA
section 246 describes the requirements for Centrally Fueled Fleets
(CFF). EPA may adjust the compliance deadlines where compliance with
such deadlines would be infeasible. (CAA section 246(a)(3).) Currently,
the federal CFF program requires 70% of new light duty vehicles and
trucks and 50% of new heavy-duty vehicles in a covered fleet to meet
certain prescribed exhaust emission standards for light duty vehicles,
light duty trucks and heavy-duty vehicles. (CAA section 246(b)(3).) EPA
has determined that, beginning with the 2006 model years, both the Tier
II conventional vehicle and engine standards and heavy-duty vehicle and
engine standards are either equivalent to or more stringent than the
applicable CFV program Low Emission Vehicle (LEV) standards. See EPA
Dear Manufacturer Letter CCD-05-12 (LDV/LDT/MDPV/HDV/HDE/LD-AFC) (July
21, 2005).
    (ii) What are the CFV program requirements for the BPA area?
    The March 30, 2004, reclassification of the area to serious
nonattainment was effective April 29, 2004, and required that a CFV
program or substitute that would achieve equivalent reductions be
submitted to EPA by April 29, 2005.
    (iii) How did the State Meet the CFV Requirements for BPA?
    The State addresses this CFV program requirement by making an
equivalency demonstration showing that the Federal Tier II and heavy-
duty vehicle and engine standards are more stringent than or equivalent
to the CFV program LEV standards, beginning with the 2006 model year.
Texas used the 2006 model year in the equivalency demonstration because
it is the earliest full vehicle model year that would have been
affected by a CFV program upon adoption of a program by April 29, 2005
(i.e., the 2006 model year would begin on September 1, 2005). The
demonstration showed that the resulting emissions reductions from Tier
II and the heavy-duty vehicle and engine standards meet or exceed the
emissions reductions that a CFV program would provide in the BPA
nonattainment area and, therefore, the implementation of the Tier II
and heavy-duty standards serve as an adequate substitute for a CFV
program.
    Specifically, relying upon EPA's data, beginning with the 2006
model year, Texas shows Tier 2 Light-Duty Vehicles (LDVs), Light-Duty
Trucks (LDTs 1-4), and Medium Duty Passenger Vehicles (MDPVs) certified
to certain Tier 2 bin standards, to be equivalent to or more stringent
than the CFV program LEV emission standards. In addition, Texas
demonstrates that Tier 2 LDVs, LDTs 1-4, and MDPVs certified to other
Tier 2 bin standards, are equivalent to or more stringent than the CFV
program LEV emission standards. Texas performs a similar analysis,
showing that standards for 2006 and later model years for Otto cycle
and diesel heavy-duty vehicles ranging from 8501-14,000 Gross Vehicle
Weight Rating are more stringent than the CFV program LEV emissions
standards for these vehicles.
    (iv) What is EPA proposing?
    EPA is proposing to approve, under section 182(c)(4)(B) of the CAA,
Texas' equivalency demonstration that emissions reductions under Tier
II and the heavy-duty engine and vehicle standards achieve equivalent
or greater emissions reductions than would be expected from
implementation of the CFV Program in the BPA nonattainment area. This
approval is supported by the determination made by EPA that the use of
the 2006 model year as the first model year vehicles that would be
covered by a CFV program in the equivalency demonstration is
appropriate. Thus, new vehicles purchased by fleet operators for Model
Years 2006 and beyond would necessarily achieve, as required by the
Tier II and heavy-duty engine standards, as much or more reductions
than if the State adopted a CFV program as required by the Act.
    The reclassification required the program to be submitted by April
29, 2005. EPA has determined that starting the program on April 29,
2005 is infeasible under CAA section 246(a)(3) which allows EPA to
adjust the implementation date of a CFV program where implementation
would otherwise be infeasible. EPA has decided that implementation of a
CFV program in the BPA nonattainment area would be infeasible for the
following reasons. As earlier explained, as of July 2005, EPA had
determined that beginning with the 2006 model year the Tier II and
heavy-duty engine and vehicle standards were either equivalent or more
stringent than the CFV program LEV standards. Thus, Texas would have
been required to implement the CFV program for approximately 4 months
(i.e., from April 29, 2005, when the program was due under the
reclassification, to August 31, 2005 when the 2006 model year began).
For model years 2006 and beyond, the program would have been
unnecessary. EPA believes that it would have been infeasible for Texas
to initiate and oversee the elaborate record-keeping and reporting
requirements associated with this program for this 4-month period only.
Additionally, we note that owners and operators of covered fleet would
likely not have been inclined to comply with the requirements of a
program with such limited duration. Please see the TSD: Part II.A. for
further discussion of this requirement.
    As noted above, with the exception of the CFV program, the BPA area
currently has an approved SIP for all the 1-hour ozone anti-backsliding
requirements applicable for purposes of redesignation. EPA is proposing
to find that, if it finalizes approval of the CFV program Equivalency
Demonstration, the BPA area will meet all 1-hour ozone anti-backsliding
requirements applicable to the area for purposes of redesignation under
section 110 and part D.
2. What are the part D requirements applicable for purposes of
redesignation for the BPA area under the 1997 8-hour ozone standard?
    Part D, subpart 2 applicable SIP requirements. For the reasons set
forth above, no moderate area requirements applicable for purposes of
redesignation for the 1997 8-hour ozone standard under part D, section
182(b) became due prior to the submission of the complete redesignation
request, and therefore none are applicable to the Area for purposes of
redesignation. If EPA

finalizes its proposed approval of the area's emissions inventory under
section 182(a)(1), the area will have met all the requirements
applicable under its prior marginal classification for purposes of
redesignation.
    In addition to the fact that no moderate area part D requirements
applicable for purposes of redesignation became due prior to submission
of the redesignation request and therefore are not applicable, EPA
believes it is reasonable to interpret the conformity and NSR
requirements as not requiring approval prior to 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 projects conform to the air quality
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 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 conformity revisions must be consistent with Federal
conformity regulations relating to consultation, enforcement and
enforceability that the CAA required the EPA to promulgate.
    EPA believes it is reasonable to interpret the conformity SIP
requirements as not applying for purposes of evaluating the
redesignation request under section 107(d) because state conformity
rules are still required after redesignation and Federal conformity
rules apply where state rules have not been approved. See, Wall v. EPA,
265 F.3d 426 (6th Cir. 2001) (upholding this interpretation). See also,
60 FR 62748 (December 7, 1995, Tampa, Florida).
    NSR Requirements. EPA has also determined that areas being
redesignated need not comply with the requirement that a NSR program be
approved prior to redesignation, provided that the area demonstrates
maintenance of the standard without a part D NSR program in effect,
since PSD requirements will apply after redesignation. The 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 (Part D NSR) Requirements for Areas
Requesting Redesignation to Attainment.'' Texas has demonstrated that
BPA will be able to maintain the standard without a part D NSR program
in effect, and therefore, Texas need not have a fully approved part D
NSR program prior to approval of the redesignation request. Texas's PSD
program will become effective in BPA upon redesignation to attainment
(unless a rule change is necessary; see footnote 2). See, rulemakings
for Detroit, Michigan (60 FR 12467-12468, March 7, 1995); Cleveland-
Akron-Lorrain, Ohio (61 FR 20458, 20469-70, May 7, 1996); Louisville,
Kentucky (66 FR 53665, October 23, 2001); Grand Rapids, Michigan (61 FR
31834-31837, June 21, 1996).
    Section 182(a)(1) Inventory requirements. The marginal requirements
at section 182(a) and 40 CFR 51.915 require that the BPA 8-hour ozone
area meet the emissions inventory requirements of section 182(a)(1). An
emissions inventory is an estimation of actual emissions of air
pollutants in an area. The emissions inventory consists of VOC and
NOX emissions, as they are ozone precursors.
    The State submitted a base year emissions inventory on December 18,
2008 to EPA as part of the SIP revision for the BPA area. Texas
prepared a comprehensive emissions inventory for the BPA for the
baseline year of 2002. The 2002 base year emissions inventory includes
all point, area, nonroad mobile, and on-road mobile source emissions.
Table 4 lists the 2002 emissions inventory for the BPA area. EPA
reviewed the 2002 base year inventory and determined that it was
developed in accordance with EPA guidelines. For a full discussion of
our evaluation, please refer to Part I.B. of the TSD, found in the
electronic docket.

                Table 4--BPA Base Year Emission Inventory
                               [Tons/day]
------------------------------------------------------------------------
                        2002 Base year inventory
-------------------------------------------------------------------------
                     Source type                         NOX       VOC
------------------------------------------------------------------------
Point...............................................    109.23     43.81
Area................................................      7.54     50.11
On-road Mobile......................................     45.84     13.32
Non-road Mobile.....................................     48.99     13.85
                                                     -------------------
  Total.............................................    211.60    121.09
------------------------------------------------------------------------

    EPA is proposing to approve the 2002 Base Year Emissions Inventory
submitted by the State on December 18, 2008 as part of the Texas SIP
for the BPA area. With the approval of the 2002 base year emissions
inventory, it is EPA's position that the BPA area will meet all of the
requirements for a marginal nonattainment area under the 1997 8-hour
ozone standard.
    Listed below are the other marginal area requirements that have
already been met by the BPA area. For further information, please see
Part II.A. of the TSD.
    Section 182(a)(2)(A) RACT corrections. EPA approved the Texas RACT
correction rules on March 7, 1995 at 60 FR 12438.
    Section 182(a)(2)(B) I/M Program. There is no requirement for the
BPA area to have an I/M program. The Federal I/M Flexibility Amendments
of 1995 determined that urbanized areas with populations less than
200,000 for 1990 (such as BPA) are not mandated to participate in the
I/M program (60 FR 48033, September 18, 1995).
    Section 182(a)(2)(C) Permit programs and 182(a)(4) General Offset
requirement. As noted previously, EPA has determined that areas being
redesignated need not comply with the requirement that a NSR program be
approved prior to redesignation, provided that the area demonstrates
maintenance of the standard without a part D NSR program in effect,
since PSD requirements will apply after redesignation.
    Section 181(a)(3)(B) Emissions Statements. The emissions statement
rules were approved on August 26, 1994 (59 FR 44036).
    Thus, EPA proposes to find that the area has an approved SIP for
all the 1997 8-hour ozone requirements applicable for purposes of
redesignation, with the exception of the 2002 Base Year Emissions
Inventory. EPA is proposing to find that, upon EPA's final approval of
the BPA emissions inventory, the BPA area will meet all requirements
applicable to the area for purposes of redesignation under section 110
and part D and have a fully approved applicable implementation plan for
the area under section 110(k).

C. Does the BPA area have a fully approved applicable SIP under section
110(k) of the CAA for purposes of redesignation?

    With the exceptions noted above for the 1-hour ozone CFV program
and the 8-hour emissions inventory, EPA has fully approved the
applicable Texas SIP for the BPA area, under section 110(k) of the CAA
for all requirements applicable for purposes of redesignation. EPA may
rely on prior SIP approvals in approving a redesignation request; see
Calcagni Memorandum at p. 3; Southwestern Pennsylvania Growth Alliance
v. Browner, 144 F.3d 984, 989-90 (6th Cir. 1998); Wall, 265 F.3d 426,
plus any additional measures it may approve in conjunction with a
redesignation action. See, 68 FR 25426 (May 12, 2003) and citations
therein. Following passage of the CAA of 1970, Texas adopted and

submitted, and EPA fully approved at various times, provisions
addressing the various 1-hour ozone standard SIP elements applicable in
the BPA area (e.g., 74 FR 33146, 71 FR 8962, 66 FR 26914, 63 FR 6659,
60 FR 12438).
    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 redesignation. EPA also believes that since the moderate
area part D requirements applicable for purposes of redesignation did
not become due prior to submission of the redesignation request, they
also are therefore not applicable requirements for purposes of
redesignation. As set forth above, with the two exceptions noted, the
area has met all other applicable requirements for purposes of
redesignation under its prior marginal classification. Once EPA has
finalized approvals of the 1-hour CFV program Equivalency
Demonstrations and the 8-hour base year inventory, the area will have
met all applicable requirements for purposes of redesignation for the
8-hour ozone standard.

VII. Are the air quality improvements in the BPA area due to permanent
and enforceable emissions reductions?

    EPA proposes to find that Texas has demonstrated that the observed
ozone air quality improvement in the BPA area is due to permanent and
enforceable reductions in emissions resulting from implementation of
the SIP, Federal measures, and other State-adopted measures.
    In making this demonstration, the State presented several sets of
data. First, the State provided a 2002 Periodic Emissions Inventory
(PEI) for NOX and VOC in the BPA area, and provided a
comparison between the 2002 PEI and the 2005 Base EI. Second, the State
analyzed the changes in VOC and NOX emissions in the BPA
area between the ozone standard violation year 2002 and one of the
years in the period during which the area attained the standard, 2005.
Finally, the State documented the VOC and NOX emission
control measures that have been implemented in the BPA area over the
past 17 years.

A. Emissions Reductions as Shown by Emissions Inventory Data

    Texas chose 2005 as the base attainment year, and compared 2002 VOC
and NOX emissions when the DV was 90 ppb, to the attainment
year emissions, to show that emission reductions have occurred in the
area, and have resulted in the ozone air quality improvement in the
area. 2005 is the first year of the first three-year period
demonstrating attainment. By 2005, NOX emissions were
estimated to have dropped by almost 30% and VOC emissions by 15% from
2002 levels. These significant decreases resulted in the improvement in
ozone levels seen at the monitors.
    The emissions for both years were derived from periodic VOC and
NOX emission inventories, which are prepared every three
years. Based on the estimated emissions, TCEQ has documented several
emission trends to show that permanent and enforceable emission
controls in various source sectors are responsible for significant
downward trends in VOC and NOX emission totals in the BPA
area. For a discussion of emission inventory preparation methods, see
the discussion of the preparation of the 2005 base year emission
inventories below.
    To demonstrate that VOC and NOX emissions decreased
between one of the violation years (2002) and an attainment year
(2005), TCEQ has documented BPA's VOC and NOX emissions for
2002 and 2005 for all anthropogenic source sectors. Table 5 lists these
emissions for the 2002 PEI and 2005 EI. Due to improved reporting and
estimating techniques, flash emissions are better captured in the 2005
inventory. To compare values that are alike, VOC area source emissions
for 2005 in Table 5 do not include flash emissions from upstream oil
and gas production.

Table 5--A Comparison of VOC and NOX Emissions in the BPA Area by Source
             Category From the 2002 PEI and the 2005 Base EI
                   [Tons per average ozone season day]
------------------------------------------------------------------------
              Emissions source category                 2002      2005
------------------------------------------------------------------------
                           VOC Emissions (tpd)
------------------------------------------------------------------------
Area................................................     50.11   * 42.59
Non-Road Mobile.....................................     13.85      4.96
On-Road Mobile......................................     13.32     11.63
Point...............................................     43.81     42.68
                                                     -------------------
  Total.............................................    121.09    101.86
------------------------------------------------------------------------
                           NOX Emissions (tpd)
------------------------------------------------------------------------
Area................................................      7.54      9.06
Non-Road Mobile.....................................     48.99     25.99
On-Road Mobile......................................     45.84     45.60
Point...............................................    109.23     68.49
                                                     -------------------
Total...............................................    211.60    149.14
------------------------------------------------------------------------
* This figure represents the 2005 base inventory for area sources used
  in the maintenance plan not including flash emissions from upstream
  oil and gas production.

    This comparison of emissions in the BPA area shows that
NOX emissions significantly declined between 2002 and 2005.
In addition, VOC emissions in the BPA area also declined between 2002
and 2005. TCEQ has included this information as part of its
demonstration that emissions reductions in the BPA area, for both
NOX and VOC between 2002 and 2005, explain the observed
improvement in ozone concentrations. Further, the reductions between
2002 and 2005 can be attributed to permanent and enforceable
reductions.
    The most significant reductions documented in Table 5 were the
reductions in Point Source NOX. In 2000, Texas adopted
additional NOX control rules to further reduce
NOX emissions from electric utility power boilers
(approximately 50% reduction) and from industrial boilers and process
heaters (approximately 20 percent reduction). These reductions occurred
in two stages, with two-thirds of the reductions occurring by May 1,
2003, and the remaining one-third by May 1, 2005. Federal emission
control measures for on and off road emissions also have had
significant impacts on VOC and NOX emissions in the BPA
area.
    Based on the 2002 and 2005 nonattainment area emissions information
provided by TCEQ, EPA concludes that VOC and NOX emission
totals have significantly declined in the nonattainment area during the
2002-2005 period. These emission reductions have contributed to
attainment of the 1997 eight-hour ozone standard in this area. EPA
concurs with Texas' conclusions that the emission controls, emissions
inventories, and emissions trends support the conclusion that
attainment in the area is due to permanent and enforceable emission
reductions.
    To further demonstrate that permanent and enforceable emission
controls have reduced VOC and NOX emissions, TCEQ also
documented the trends in NOX and VOC concentrations

in the BPA area, which is discussed in greater detail below.

B. Impact of Emissions Controls Implementation: Trend Analysis

    To assess the impact of emission control implementation, TCEQ
determined the VOC and NOX ambient concentration trends at
two monitors in the BPA area from 1991 to 2007. This included
determining or projecting the VOC emissions for all seventeen years in
this time period. NOX trends during this period, for both
monitors provided by TCEQ in the analysis, Beaumont (CAMS 2) and West
Orange (CAMS 9), showed that the 95th percentile of concentrations
decreased at both monitors, and that the average NOX
concentration remained relatively flat at Beaumont (CAMS 2) but has
decreased at West Orange (CAMS 9). For VOC trends in the BPA area,
since TCEQ's VOC data was limited, TCEQ included data provided by the
SETRPC that show that average concentrations for both ethylene and
propylene have decreased in the BPA area. The reduction in emissions
and the corresponding improvement in ozone air quality over the
assessed period can be attributed to the implementation of a number of
emission control measures identified in the first part of this section
above.

C. Permanent and Enforceable Emissions Controls Implemented

    The following is a discussion of the permanent and enforceable
emission controls that have been implemented in the BPA area. In Texas'
8-hour ozone redesignation request, the State documented all of the
emission control rules or programs that have impacted VOC or
NOX emissions during the period 1991-2007.
1. Reasonably Available Control Techniques
    Texas notes that a number of VOC and NOX RACT rules
developed in prior years have continued to provide additional VOC and
NOX emission reductions during the more recent years. For
VOC controls, with the exception of the source categories covered by
the most recently published CTGs (see a discussion of the new CTG RACT
source categories below), Texas has adopted and implemented VOC RACT
rules for source categories covered by older (prior to 2006) CTGs and
for major non-CTG sources in Hardin, Jefferson and Orange Counties. All
VOC RACT rules are contained in Chapter 115 of volume 30 of the Texas
Administrative Code (30 TAC 115), and all NOX RACT rules are
contained in Chapter 117 of volume 30 of the TAC (30 TAC 117). All of
these VOC and NOX RACT rules have been approved by the EPA
as revisions of the Texas SIP.
2. ROP Plans and Attainment Demonstration Plan
    TCEQ states that the BPA are has met all of the one-hour ozone SIP
obligations, including implementation of the VOC and NOX
emission control programs and rules needed to comply with Texas' one-
hour ozone attainment demonstration for the BPA area and implementation
of all emission control measures contained in the various ROP plans
applicable to Hardin, Jefferson and Orange Counties. EPA approved the
15% ROP Plan on February 10, 1998 (63 FR 6659). EPA approved the Post-
1996 VOC and NOX ROP Plan on February 22, 2006 (71 FR 8962).
The Post-1996 ROP Plan provided 27 percent reductions.
3. NOX Control Rules
    TCEQ developed NOX emission control rules for electric
industrial boilers, industrial boilers and process heaters, gas
turbines, rich-burn stationary gas-fired internal combustion engines,
nitric acid plants, and adipic acid plants in compliance with the CAA.
These rules were adopted in 1993. Emission reductions resulted from
these rules beginning in 1999.
    TCEQ also adopted VOC rules for batch process and industrial
wastewater sources and NOX rules for lean-burn engines.
These rules were adopted in 1999, with emissions reductions resulting
from these rules beginning in 2001.
    In 2000, Texas adopted additional NOX control rules to
further reduce NOX emissions from electric utility power
boilers (approximately 50% reduction) and from industrial boilers and
process heaters (approximately 20 percent reduction). These reductions
occurred in two stages, with two-thirds of the reductions occurring by
May 1, 2003, and the remaining one-third by May 1, 2005.
4. Federal Emission Control Measures
    TCEQ notes that other Federal emission control measures have had
significant impacts on VOC and NOX emissions in the BPA
area. These Federal measures include the following.
    Tier 2 Emission Standards for Vehicles and Gasoline Sulfur
Standards. These emission control requirements result in lower VOC and
NOX emissions from new cars and light duty trucks, including
sport utility vehicles. The Federal rules were 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 nationwide: 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 expected to range from 12 to 18
percent, depending on vehicle class, over the same period. Although
some of the emission reductions occurred by the attainment years (2005-
2007) in the BPA area, additional emission reductions will occur during
the maintenance period. For example, note that the Tier 2 emission
standards for passenger vehicles weighing over 8,500 pounds were not
implemented until 2008 or later.
    Heavy-Duty Diesel Engine Rule. EPA issued this rule in 2000
(October 6, 2000, 65 FR 59895; Updated Emissions Standards for 2004 and
Later Model Year Highway Heavy Duty Engines and Vehicles). This rule
includes standards limiting the sulfur content of diesel fuel, which
went into effect in 2004. A second phase took effect in 2007, which
further reduced the highway diesel fuel sulfur content to 15 parts per
million, leading to additional reductions in combustion NOX
and VOC emissions (January 18, 2001, 66 FR 5001; Heavy Duty Engine and
Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements).
This rule is expected to achieve a 95 percent reduction in
NOX emissions from diesel trucks and busses.
    Non-Road Diesel Rule. EPA issued this rule in 2004. This rule
applies to diesel engines used in industries, such as construction,
agriculture, and mining. It is estimated that compliance with this rule
will cut NOX emissions from non-road diesel engines by up to
90 percent. This rule is currently achieving emission reductions, but
will not be fully implemented until 2010.
    Locomotives and Marine Compression-Ignition Engines. This EPA rule
was issued March 14, 2008 and includes new emission standards for
locomotives and marine diesel engines that will reduce NOX
emissions by about 80 percent compared with engines meeting the current
standards. These new requirements have three parts: Tightening emission
standards for existing locomotives and large marine engines when they
are remanufactured, effective in 2008; establishing Tier III standards
for new locomotives and marine diesel engines that were phased in
beginning in 2009; and establishing more stringent Tier IV standards
for new locomotives and marine diesel engines that will be phased in
beginning in 2014.

    Additional Federal programs. Additional federal programs for
emissions reductions in the BPA area include Onboard Refueling Vapor
Recover (ORVR) for light-duty vehicles, and Federal control through
Maximum Achievable Control Technology (MACT) of Hazardous Air
Pollutants emissions. Table 6 shows the federal emissions reductions
programs in the BPA area for fuels and motor vehicles:

            Table 6--BPA Federal Emission Reductions Programs
------------------------------------------------------------------------
                            Federal measures
-------------------------------------------------------------------------
[cir] Tier 2 Fuel and Vehicle Emission Standards.
[cir] Onboard Refueling Vapor Recovery (ORVR) for light-duty vehicles.
[cir] Heavy-Duty Engine and Vehicle and Fuel Standards.
[cir] Federal controls on certain nonroad engines.
[cir] Federal control through Maximum Achievable Control Technology
 (MACT) of Hazardous Air Pollutants emissions.
[cir] Volatile Organic Compound Emission Standards for Consumer
 Products.
[cir] Volatile Organic Compound Emission Standards for Architectural
 Coatings.
[cir] Locomotives and Marine Compression-Ignition Engines.
------------------------------------------------------------------------

5. Additional State and Local Emission Reductions
    Several local permanent and enforceable emission reductions have
occurred through various mechanisms other than through RACT rules or
through Federal emission control rules/programs. These State and Local
measures, which are permanent and enforceable, include the following.
    Texas Low Emission Diesel (TxLED) rule. Texas' TxLED rule reduces
emissions of NOX and other pollutants from diesel-powered
motor vehicles and non-road equipment operating within 110 counties in
the eastern half of Texas, including the BPA area. This rule was
originally adopted by TCEQ in 2000 and revised in 2007, with compliance
occurring over a range of years, beginning in 2005, and continuing
through the beginning of 2008.
    Texas Emission Reduction Plan (TERP). TERP, established in 2001,
includes incentive grant programs to reduce NOX emissions
from internal combustion engines on mobile sources. Eligible grant
projects include fleet expansions with cleaner engines, replacement of
old vehicles and equipment, repower of old engines, and on-vehicle and
on-site infrastructure for idle reduction, electrification, and deliver
of alternative fuels. TCEQ explains in its submittal that, as of
September 2007, the TERP program has awarded over $19 million for 58
projects in the BPA area, which are estimated to reduce NOX
emissions by more than 2.7 tons per day by 2009. In the BPA area, the
projects funded thus far have resulted in NOX reductions of
4,480 tons.
    Agreed Orders. Although not relied upon by the State for showing
attainment or RFP, Agreed Orders have also been important in reducing
NOX and VOC emissions in the BPA area. In December 2004,
TCEQ adopted revisions to the BPA SIP to incorporate Agreed Orders in
which six companies in the BPA area agreed to make enforceable measures
that were not required. The six companies were ISP Elastomers; Mobil
Chemical Company, a Division of Exxon Mobil Corporation; Huntsman
Petrochemical Corp. of Port Arthur and also of Port Neches; Motiva
Enterprises LLC; and Premcor Refining Group, Inc. The Agreed Orders
included voluntary emissions reductions, air monitoring improvements,
and other actions.
    Table 7 shows the state and local emissions reductions programs in
the BPA area.

        Table 7--BPA State and Local Emission Reductions Programs
------------------------------------------------------------------------
                        State and local measures
-------------------------------------------------------------------------
[cir] Texas Low Emission Diesel (TxLED).
[cir] Texas Emission Reduction Plan (TERP).
[cir] Prevention of Significant Deterioration.
[cir] Agreed Orders.
------------------------------------------------------------------------

6. Controls To Remain In Effect
    Texas commits to maintain all of the current emission control
measures for VOC and NOX after the BPA area is redesignated
to attainment. Texas, through TCEQ's Chief Engineer's Office, Air
Quality Division, and the Office of Compliance and Enforcement, has the
legal authority and necessary resources to actively enforce against any
violations of the State's air pollution emission control rules. After
the BPA area is redesignated to attainment, TCEQ will implement NSR for
major stationary sources and major modifications through the PSD
program.

Summary.

    As discussed above, local controls as well as national emission
controls have contributed to the ozone air quality improvement in the
BPA area. NOX and VOC emissions have dropped substantially.
Based on the above, EPA proposes to determine that Hardin, Jefferson,
and Orange Counties and the State of Texas have met the requirement of
section 107(d)(3)(E)(iii) of the CAA, and have demonstrated that the
improvement in air quality is due to permanent and enforceable emission
reductions.
    As noted above, Texas has committed to retaining all existing
emission control measures that affect ozone levels in the BPA area
after Hardin, Jefferson, and Orange Counties are redesignated to
attainment of the 1997 eight-hour ozone NAAQS. All changes in existing
rules subsequently determined to be necessary must be submitted to the
EPA for approval as SIP revisions.
    EPA thus proposes to find that the improvement in air quality in
the BPA area is due to permanent and enforceable emissions reductions.
Section 107(d)(3)(E)(iii).

VIII. Does Texas have a fully approvable 1997 8-hour ozone maintenance
plan pursuant to section 175A of the CAA for the BPA area?

A. What is required in an ozone maintenance plan?

    In conjunction with its request to redesignate the BPA 1997 8-hour
ozone nonattainment area, the State of Texas included a SIP revision to
provide for the maintenance of the 1997 8-hour ozone NAAQS in the BPA
area for at least 10 years after redesignation to attainment. Section
107(d)(3)(E)(iv). Section 175A of the CAA sets forth the required
elements of air quality maintenance plans for areas seeking
redesignation to attainment of a NAAQS. Under section 175A, a
maintenance plan must demonstrate continued attainment of the
applicable NAAQS for at least 10 years after the Administrator approves
the redesignation to attainment. The State must commit to submit a
revised maintenance plan within eight years after the redesignation.
This revised maintenance plan must provide for maintenance of the ozone
standard for an additional 10 years beyond the initial 10 year
maintenance period. To address the possibility of future NAAQS
violations, the maintenance plans must contain contingency measures,
with schedules of implementation, as EPA deems necessary, to assure
prompt correction of any future NAAQS violation. The September 4, 1992,
Calcagni memorandum provides additional guidance on the content of
maintenance plans.
    An ozone maintenance plan should, at minimum, address the
following: (1) The attainment VOC and NOX emission
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. How did Texas estimate the VOC and NOX emissions for the
attainment year and the projection years?

    Sections 172(c)(3) and 182(b)(1) of the CAA require that the SIP
include an inventory of actual emissions from all sources of relevant
pollutants in the nonattainment area. The emission inventory for an
ozone nonattainment area contains VOC and NOX emissions as
these pollutants are precursors to ozone formation. TCEQ prepared a
comprehensive emission inventory for the BPA area including point,
area, on-road, and off-road mobile sources with the baseline year of
2005.
    Texas developed its baseline 2005 Emissions Inventory by updating
the 2002 Periodic Emissions Inventory (PEI) for NOX and VOC
in the BPA area. TCEQ initially submitted the 2002 PEI to EPA as part
of the 2005 Dallas-Fort Worth 5% increment of progress SIP revision,
but did not provide for public comment. Since then, Texas updated the
inventory for area and nonroad emissions categories and provided the
inventory for public comment. The emissions inventory for 2005 was
included by Texas in its submittal to EPA on December 16, 2008, as part
of its request to redesignate the BPA to attainment for the 1997 8-hour
ozone NAAQS.
    Texas' 2005 emissions inventory is listed in tables 2.5 and 2.6 of
Texas' December 18, 2008, submittal, which is included in the docket
for this action. The year 2005 was chosen by Texas as the base year for
developing a comprehensive ozone precursor emissions inventory for
which projected emissions could be estimated for 2011, 2014, 2017, and
2021. The use of 2005 is an appropriate choice because it is one of the
years in the period that the area has monitored attainment (2005-2007).
The 2005 base year and projected year emissions for Hardin, Jefferson
and Orange Counties were determined using the following procedures:
    Area Source Emissions. Area source emissions for the base year 2005
were determined using Texas' 2005 periodic inventory as the starting
point, and then specific inventory categories and emissions were
reviewed and updated with current methodologies and local activity data
when it was available. TCEQ compiled the 2005 area source emissions
inventory from several sources of data, including work from various
research contracts, TCEQ's research, and the EPA's National Emissions
Inventory. Area source emissions for future years were projected using
EPA's Economic Growth Analysis (EGAS) 5.0 or other growth factors, in
accordance with EPA guidance. More information about calculations
related to area source emissions is available in Chapter 4 and Appendix
B of Texas' December 16, 2008 submittal, which is included in the
docket.
    Point Source Emissions. Point source VOC and NOX
emissions for the base year 2005 were compiled from Texas' annual
emission database, which is called the ``State of Texas Air Reporting
System'' (STARS). TCEQ projected point source emissions for future
years by applying projection factors, where applicable, for EGU and
non-EGU point sources, incorporating adjustments for three refineries,
which were permitted to expand operations, as well as making
adjustments for emissions credits. More information about calculations
related to point sources is available in Chapter 4 and Appendix E of
Texas' December 16, 2008 submittal which is included in the docket.
    On-road Emissions. Mobile source emissions were calculated by a
contractor to TCEQ, the Texas Transportation Institute (TTI), an
objective transportation research entity within the Texas A&M
University system, using EPA's MOBILE 6.2.03 emission factor model and
traffic data taken from a travel-demand model for the three-county BPA
area. TCEQ has provided detailed information to document the
calculation of on-road mobile source VOC and NOX emissions
for 2005, as well as for the projection years of 2011, 2014, 2017, and
2021 (Chapter 4 and Appendices C and D of TCEQ's December 18, 2008
submittal.)
    Non-road Emissions. For the majority of non-road types of
equipments, TCEQ estimated emissions for the 2005 base year and 2011
using a model developed by TCEQ called TexN that utilizes EPA's NONROAD
MODEL 2005 using county specific activity data. Since TexN could only
provide projections to 2013, TCEQ developed non-road emissions
projections for 2014, 2017, and 2021 using EPA's National Mobile
Inventory Model (NMIM). For aircraft, locomotives, and commercial
marine vessels, TCEQ estimated VOC and NOX emissions using
growth factors specific to those industries. More information about
calculations related to non-road sources is available in Chapter 4 and
Appendix B of Texas' December 16, 2008 submittal, which is included in
the docket.

C. Has the State demonstrated maintenance of the ozone standard in the
BPA area?

    As part of its request to redesignate the BPA 8-hour ozone
nonattainment area, the State of Texas included a SIP revision to
incorporate a maintenance plan as required under section 175A of the
CAA. The maintenance plan includes a demonstration based on a
comparison of emissions in the attainment year (2005) and projected
emissions to demonstrate maintenance of the 1997 8-hour ozone NAAQS in
the BPA area for at least 10 years after the anticipated redesignation
year [section 107(d)(3)(E)(iv)]. To demonstrate maintenance of the 1997
8-hour ozone standard, TCEQ projected VOC and NOX emissions
to 2021 and to several interim years, 2014, and 2017. These emissions
were compared to the 2005 attainment year emissions to show that
emissions of NOX and VOC, when considered together, remain
below the attainment levels for the entire demonstrated maintenance
period.
    In the December 18, 2008, ozone redesignation request, TCEQ
graphically represented and compared the VOC and NOX
emissions for 2005, 2011, 2014, 2017 and 2021 for all major source
sectors, and in total for the BPA nonattainment area. In its ozone
maintenance demonstration, TCEQ presented the NOX and VOC
emission totals for the 2005 base year and all projection years for the
BPA area without the impacts of CAIR.\3\ TCEQ's maintenance
demonstration shows that in 2011, 2014, 2017, and 2021 (without the
impacts of CAIR rules), VOC and NOX emission totals for the
BPA area, when considered together, are projected to be below the 2005
VOC and NOX emissions for the area.
---------------------------------------------------------------------------

    \3\ The U.S. Court of Appeals, for the District of Columbia
Circuit has remanded CAIR without vacatur, directing EPA to revise
the CAIR rule. This leaves the current version of the CAIR rule in
question and raises questions about the future emission impacts of
States' CAIR-based emission control rules. As a conservative
approach to this problem, EPA requested that TCEQ remove the impacts
of the State's CAIR NOX emission control rules. TCEQ
complied, and by the time of the December 18, 2008, submittal had
removed all emissions impacts due to CAIR in its projections.
---------------------------------------------------------------------------

    NOX emissions in the BPA area are projected to decline
by 14 percent between 2005 and 2021. Note that the projected
NOX emission reduction for 2020 did not include
NOX emission reductions resulting from CAIR, but did include
NOX emission reductions resulting from Texas' existing
NOX emission control rules that are in the

Texas SIP. VOC emissions in the BPA area are projected to increase by
approximately 6 percent between 2005 and 2021. However, based on
photochemical modeling analyses showing that the formation of ozone in
the BPA area is more sensitive to NOX than to VOC emissions,
the increase in VOC emissions is expected to be fully offset by the
decrease in NOX. Specifically, photochemical modeling
analyses show that for reducing the ozone design value in the BPA area,
reducing NOX emissions is 3.76 times as effective as
reducing VOC emissions. This is discussed more fully below. Based on
this analysis, emissions in the BPA area are expected to remain at
levels consistent with attainment for the 1998 8-hour ozone standard
from 2010 through 2021.
    The December 23, 2008, remand of EPA's CAIR by the U.S. Court of
Appeals led to both the State and EPA further considering the impact of
this remand on Texas' ozone maintenance demonstration for the BPA area.
The CAIR was remanded to EPA, and the process of developing a
replacement rule is ongoing. The remand of CAIR does not alter the
requirements of the NOX SIP call. Although Texas is not
subject to the NOX SIP call, Texas, however, has
demonstrated that the BPA area can maintain the 1997 eight-hour ozone
standard without any additional NOX emission reduction
requirements. Regarding the impact of pollution from other States, all
NOX SIP Call states have SIPs that currently satisfy their
obligations under the SIP Call, the SIP Call reduction requirements
remain applicable and are being met, and EPA will continue to enforce
the requirements of the NOX SIP Call even after any response
to the CAIR Remand. As EPA has noted in other recent redesignation
actions (e.g., Columbus Ohio, 74 FR 47404, 47405 (September 15, 2009))
``EPA believes that regardless of the status of the CAIR program, the
NOX SIP call requirements can be relied upon in
demonstrating maintenance.'' Therefore, EPA believes that Texas'
demonstration of maintenance under sections 175A and 107(d)(3)(E) of
the CAA remains valid.
    Texas has successfully demonstrated maintenance of the 1997 8-hour
ozone standard between 2005 and 2021. In addition, VOC and
NOX emissions in the BPA area, when considered together with
Texas' photochemical modeling analyses, are projected to decline
between 2005 and 2021. Given the emissions growth and source control
factors used to project emissions, EPA and Texas do not anticipate an
increase in the overall combined VOC and NOX emissions in
the BPA area between 2010 and 2021.
    The following table provides NOX and VOC emissions data
for the 2005 base year inventory, as well as projected NOX
and VOC emission inventory data for the years 2011, 2014, 2017, and
2021 for the BPA area. Please see Part II.B. of the TSD for additional
emissions inventory data including projections by source category.

               Table 8--Base Year and Projected NOX and VOC Emissions in BPA, NOX Emissions (tpd)
                                                 [Without CAIR]
----------------------------------------------------------------------------------------------------------------
         Source category               2005            2011            2014            2017            2021
----------------------------------------------------------------------------------------------------------------
Point...........................           68.49           77.39           78.84           78.67           80.27
Area............................            9.06            9.95           10.40           10.86           11.47
Mobile..........................           45.60           17.91           12.38            8.66            6.24
Nonroad.........................           25.99           27.08           27.88           28.87           30.63
                                 -------------------------------------------------------------------------------
    Total.......................          149.14          132.33          129.50          127.06          128.61
----------------------------------------------------------------------------------------------------------------
                                       VOC Emissions (TPD) [Without CAIR]
----------------------------------------------------------------------------------------------------------------
Point...........................           42.68           48.23           49.77           51.44           53.80
Area............................          151.57          155.77          157.06          158.63          160.77
Mobile *........................           11.63            7.92            6.51            5.58            4.77
Nonroad **......................            4.96            4.36            4.23            4.20            4.30
                                 -------------------------------------------------------------------------------
    Total.......................          210.84          216.28          217.57          219.85          223.64
----------------------------------------------------------------------------------------------------------------
* Calculated using MOBILE 6.2.03.
** Calculated using NONROAD 2005.

    As shown in Table 8 above, total NOX emissions are
projected to decrease and total VOC emissions are projected to increase
slightly for the area of the 10-year period of the maintenance plan.
Emissions projections for future years in the area indicate a downward
trend in NOX emissions through 2021 as NOX
emissions are projected to decrease by 20.53 tpd, or approximately 14%
(from 149.14 tpd to 128.61 tpd). VOC emissions projections through 2021
show a slight increase in projected emissions of 12.80 tpd by the year
2021, or approximately 6% (from 210.84 tpd to 223.64 tpd). This
projected increase (6%) is relatively small considering that it occurs
over a period of approximately sixteen years (as from the 2005
baseline). The slight upward trend in VOC emissions results from
projected increases for the point and non-point (area) source emission
categories. Emissions from non-road mobile and on-road mobile sources
are projected to decrease.
    As mentioned above, the projected 14% reduction (20.53 tpd) in
NOX emissions is expected to sufficiently offset the
projected 6% increase (12.80 tpd) in VOC emissions, enabling the area
to continue to maintain the 1997 ozone standard. Photochemical modeling
analyses were submitted showing that reducing VOC emissions by 5.53 tpd
results in an estimated design value reduction of 0.054 ppb. To reduce
the ozone DV by 1 ppb, 102.4 tpd of VOC would need to be reduced.
Reducing NOX emissions by 7.80 tpd reduces the ozone DV by
0.287 ppb. This means that a reduction of 27.2 tpd of NOX
emissions would be required to reduce one ppb in the DV. Thus,
NOX emission reductions are expected to be 3.76 (102.4/27.2)
times as effective in reducing the ozone DV as VOC emission reductions.
    EPA proposes to conclude that TCEQ has demonstrated maintenance of
the ozone standard during the 10-plus year maintenance period for the
BPA area through projections of VOC and NOX emissions that
show that when

considered together the emissions will remain below the 2005 attainment
levels during the maintenance period. This is demonstrated without the
emission reductions from CAIR.

D. Monitoring Network

    The State of Texas has committed in its maintenance plan for the
BPA area to continue operation of an appropriate ozone monitoring
network and to work with EPA in compliance with 40 CFR Part 58 with
regard to the continued adequacy of the network, including whether
additional monitoring is needed, and when monitoring can be
discontinued.
    There are five monitoring sites operated by the TCEQ in the BPA
area, located in Jefferson and Orange Counties. TCEQ operates these
monitors in accordance with the requirement of 40 CFR Part 58 and the
EPA-approved Quality Assurance Program Plan.
    There are four additional monitors operated by the South East Texas
Regional Planning Commission (SETRPC). If the SETRPC, however, removes
one of its monitors, the EPA and Texas will jointly review the adequacy
of the network, including whether additional monitoring is needed. In
the maintenance plan, Texas commits to continue operation of the five
ozone monitors it operates in compliance with 40 CFR part 58 through
the end of the maintenance period (2021). The State also commits to
continue to operate a monitoring network in accordance with 40 CFR part
58 and to enter data into the Air Quality System in accordance with
Federal guidelines. The TCEQ will continue to provide data from the
SETRPC monitors on the Commission's Web site and in EPA's AQS database
as long as the SETRPC participates in the network.
    As identified in the maintenance plan, each of the nine monitoring
sites in the BPA area monitored attainment with the 1997 8-hour ozone
standard beginning in 2005. Data for each monitoring site was shown
above and further discussed in Section V.A. Table 1. See the docket for
a map of the BPA monitoring network, and the TSD: Part I.A. for
additional monitoring information.

E. Verification of Continued Attainment

    Texas has the legal authority to enforce and implement the
requirements of the ozone maintenance plan for the BPA area. This
includes the authority to adopt, implement, and enforce any subsequent
emissions control contingency measures determined to be necessary to
correct future ozone attainment problems.
    Texas will track the progress of the maintenance plan through
continued ambient ozone monitoring in accordance with the requirements
of 40 CFR Part 58, and by performing future reviews of actual emissions
for the area using the latest emissions factors, models, and
methodologies. (section 4.2 of TCEQ's BPA submittal, December 16,
2008). For these periodic updates of the BPA emissions inventories,
Texas will review the assumptions made for the purpose of the
maintenance demonstration concerning projected growth and activity
levels.

F. What is the maintenance plan's contingency plan?

    The section 175(A) maintenance plan includes contingency provisions
to promptly correct any violation of the 1997 ozone NAAQS that occurs
after redesignation. The contingency plan provisions are designed to
promptly correct or prevent a violation of the NAAQS that might occur
after redesignation of an area to attainment. Section 175A of the CAA
requires that a maintenance plan include such contingency measures, as
EPA deems necessary to assure that the state will promptly correct a
violation of the NAAQS that occurs after redesignation. The maintenance
plan should identify the contingency measures to be adopted, a schedule
and procedure for adoption and implementation of the 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