[Federal Register Volume 87, Number 42 (Thursday, March 3, 2022)]
[Proposed Rules]
[Pages 12033-12048]
[FR Doc No: 2022-04072]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R05-OAR-2020-0743; EPA-R05-OAR-2021-0886; EPA-R05-OAR-2022-0123;
FRL-9567-01-R5]

Air Plan Approval; Indiana; Redesignation of the Indiana Portion
of the Chicago-Naperville Area to Attainment of the 2008 Ozone
Standard, NOX RACT Waiver, and Serious Plan Elements

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to find
that the Indiana portion of the Chicago-Naperville, IL-IN-WI area
(Chicago area) is attaining the 2008 ozone National Ambient Air Quality
Standard (NAAQS or standard) and to redesignate the Indiana portion of
the Chicago area to attainment for the 2008 ozone NAAQS, because the
request meets the statutory requirements for redesignation under the
Clean Air Act (CAA). EPA is proposing to approve, as a revision to the
Indiana State Implementation Plan (SIP), the State's plan for
maintaining the 2008 ozone NAAQS through 2035 in the Chicago area. EPA
is also proposing to approve a waiver, for the Indiana portion of the
Chicago area, from the oxides of nitrogen (NOX) requirements
of the CAA. EPA finds adequate and is proposing to approve Indiana's
2030 and 2035 volatile organic compound (VOC) and NOX Motor
Vehicle Emission Budgets for the Indiana portion of the Chicago area.
Finally, the VOC reasonably available control technology (RACT), clean-
fuel vehicle programs (CFVP), enhanced monitoring of ozone and ozone
precursors (EMP), and Enhanced motor vehicle Inspection/Maintenance (I/
M) SIP revisions. These SIP revisions satisfy the above requirements
for a nonattainment area that is classified as a ``Serious area'' for
the Indiana portion of the Chicago area under the 2008 ozone NAAQS.

DATES: Comments must be received on or before April 4, 2022.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2020-0743 (regarding the serious area elements), EPA-R05-OAR-2021-
0886 (regarding the redesignation), or EPA-R05-OAR-2022-0123 (regarding
the NOX RACT waiver) at https://www.regulations.gov or via
email to [email protected]. For comments submitted at Regulations.gov,
follow the online instructions for submitting comments. Once submitted,
comments cannot be edited or removed from Regulations.gov. For either
manner of submission, EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e. on the web, cloud, or other file sharing
system). For additional submission methods, please contact the person
identified in the FOR FURTHER INFORMATION CONTACT section. For the full
EPA public comment policy, information about CBI or multimedia
submissions, and general guidance on making effective comments, please
visit https://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Katie Mullen, Environmental Engineer,
Attainment Planning and Maintenance Section, Air Programs Branch
(AR18J), Environmental Protection Agency, Region 5, 77 West Jackson
Boulevard, Chicago, Illinois 60604,<PHONE_NUMBER>,
[email protected].

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

I. What is EPA proposing?
II. What is the background for these actions?
III. What are the criteria for redesignation?
IV. What is EPA's analysis of Indiana's redesignation request?
V. Has the state adopted approvable motor vehicle emission budgets?
VI. Section 182(f) NOX Exemption
VII. VOC RACT in the Indiana Portion of the Chicago Area
VIII. Clean-Fuel Vehicle Programs (CFVP)
IX. Enhanced Monitoring of Ozone and Ozone Precursors (EMP)
X. Enhanced I/M in the Indiana Portion of the Chicago Area
XI. Proposed Actions
XII. Statutory and Executive order Reviews

I. What is EPA Proposing?

    EPA is proposing to take several related actions. EPA is proposing
to determine that the Indiana portion of the Chicago area is attaining
the 2008 ozone NAAQS, based on quality-assured and certified monitoring
data for 2019-2021, and that the Indiana portion of the Chicago area
has met the requirements for redesignation under section 107(d)(3)(E)
of the CAA. The Indiana portion of the Chicago area consists of Lake
and Porter Counties in Northwest Indiana. Indiana submitted this
request on December 6, 2021, with additional information submitted on
January 18, 2022. EPA is thus proposing to change the legal designation
of the Indiana portion of the Chicago area from nonattainment to
attainment for the 2008 ozone NAAQS. EPA is also proposing to approve,
as a revision to the Indiana SIP, the State's maintenance plan (such
approval being one of the CAA criteria for redesignation to attainment
status) for the area. The maintenance plan is designed to keep the
Chicago area in attainment of the 2008 ozone NAAQS through 2035. EPA
finds adequate and is proposing to approve the newly-established 2030
and 2035 motor vehicle emissions budgets (or budgets) for the Indiana
portion of the Chicago area. EPA is proposing to approve a
NOX waiver, for the Indiana portion of the Chicago area,
from the NOX requirements of section 182(f) of the CAA,
included in Indiana's January 18, 2022, submittal. EPA is also
proposing to approve the VOC RACT SIP revisions included in Indiana's
December 29, 2020, and September 17, 2021, submittals. Finally, EPA is
proposing to approve the CFVP and the EMP SIP certifications included
in Indiana's December 29, 2020, submittal and the Enhanced I/M
certification in Indiana's December 29, 2020, and January 18, 2022
submittals. These elements satisfy the serious VOC RACT, CFVP, EMP, and
Enhanced I/M requirements for the Indiana portion of the Chicago area
for the 2008 ozone NAAQS.

II. What is the background for these actions?

    EPA has determined that ground-level ozone is detrimental to human
health. On March 27, 2008, EPA promulgated a revised 8-hour ozone NAAQS
of 0.075 parts per million (ppm). See 73 FR 16436 (March 27, 2008).
Under EPA's regulations at 40 CFR part 50, the 2008 ozone NAAQS is
attained in an area when the 3-year average of the annual fourth
highest daily maximum 8-hour average concentration is equal to or less
than 0.075 ppm, when truncated after the thousandth decimal place, at
all ozone monitoring sites in the area. See

40 CFR 50.15 and appendix P to 40 CFR part 50.
    Upon promulgation of a new or revised NAAQS, section 107(d)(1)(B)
of the CAA requires EPA to designate as nonattainment any areas that
are violating the NAAQS, based on the most recent three years of
quality assured ozone monitoring data. The Chicago area was originally
designated as a Marginal nonattainment area for the 2008 ozone NAAQS on
June 11, 2012 (77 FR 34221), effective July 20, 2012. EPA reclassified
the Chicago area from Marginal to Moderate nonattainment on May 4, 2016
(81 FR 26697), effective June 3, 2016. The Chicago area was again
reclassified to Serious on August 23, 2019 (84 FR 44238), effective
September 23, 2019.

III. What are the criteria for redesignation?

    Section 107(d)(3)(E) of the CAA allows redesignation of an area to
attainment of the NAAQS provided that: (1) The Administrator (EPA)
determines that the area has attained the NAAQS; (2) the Administrator
has fully approved the applicable implementation plan for the area
under section 110(k) of the CAA; (3) the Administrator determines that
the improvement in air quality is due to permanent and enforceable
reductions in emissions resulting from implementation of the applicable
SIP, applicable Federal air pollutant control regulations, and other
permanent and enforceable emission reductions; (4) the Administrator
has fully approved a maintenance plan for the area as meeting the
requirements of section 175A of the CAA; and (5) the state containing
the area has met all requirements applicable to the area for the
purposes of redesignation under section 110 and part D of the CAA.
    On April 16, 1992, EPA provided guidance on redesignations in the
General Preamble for the Implementation of Title I of the CAA
Amendments of 1990 (57 FR 13498) (General Preamble) and supplemented
this guidance on April 28, 1992 (57 FR 18070). EPA has provided further
guidance on processing redesignation requests in the following
documents:

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

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

A. Has the Indiana portion of the Chicago area attained the 2008 ozone
NAAQS?

    For redesignation of a nonattainment area to attainment, the CAA
requires EPA to determine that the entire Chicago area has attained the
applicable NAAQS (CAA section 107(d)(3)(E)(i)). An area is attaining
the 2008 ozone NAAQS if it meets the 2008 ozone NAAQS, as determined in
accordance with 40 CFR 50.15 and appendix P of part 50, based on three
complete, consecutive calendar years of quality-assured air quality
data for all monitoring sites in the area. To attain the NAAQS, the 3-
year average of the annual fourth-highest daily maximum 8-hour average
ozone concentrations (ozone design values) at each monitor must not
exceed 0.075 ppm. The air quality data must be collected and quality-
assured in accordance with 40 CFR part 58 and recorded in EPA's Air
Quality System (AQS). Ambient air quality monitoring data for the 3-
year period must also meet data completeness requirements. An ozone
design value is valid if daily maximum 8-hour average concentrations
are available for at least 90 percent of the days within the ozone
monitoring seasons,\1\ on average, for the 3-year period, with a
minimum data completeness of 75 percent during the ozone monitoring
season of any year during the 3-year period. See section 4 of appendix
P to 40 CFR part 50.
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    \1\ The ozone season is defined by state in 40 CFR 58, appendix
D. The ozone season for Indiana is March-October. See 80 FR 65292,
65466-67 (October 26, 2015).
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    EPA has reviewed the available ozone monitoring data from
monitoring sites in the Chicago area for the 2019-2021 period. These
data have been quality assured, are recorded in the AQS, and have been
certified. These data demonstrate that the Chicago area is attaining
the 2008 ozone NAAQS. The annual fourth-highest 8-hour ozone
concentrations and the 3-year average of these concentrations
(monitoring site ozone design values) for each monitoring site are
summarized in Table 1.

    Table 1--Annual Fourth Highest Daily Maximum 8-Hour Ozone Concentrations and 3-Year Average of the Fourth
  Highest Daily Maximum 8-Hour Ozone Concentrations for the Chicago-Naperville, IL-IN-WI 2008 Ozone Area (ppm)
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                                                                       Year                           Average
             Site                    County      ---------------------------------------------------------------
                                                       2019            2020            2021          2019-2021
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                                                    Wisconsin
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55-059-0019...................  Kenosha.........           0.067           0.078           0.079           0.074
55-059-0025...................  Kenosha.........           0.066           0.078           0.072           0.072
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                                                    Illinois
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17-031-0001...................  Cook............           0.070           0.076           0.068           0.071
17-031-0032...................  Cook............           0.071           0.077           0.077           0.075
17-031-0076...................  Cook............           0.065           0.068           0.070           0.067
17-031-1003...................  Cook............           0.069           0.077           0.068           0.071
17-031-1601...................  Cook............           0.068           0.078           0.072           0.072
17-031-3103...................  Cook............           0.064           0.068           0.060           0.064
17-031-4002...................  Cook............           0.064           0.079           0.067           0.070
17-031-4007...................  Cook............           0.066           0.072           0.069           0.069
17-031-4201...................  Cook............           0.069           0.079           0.075           0.074
17-031-7002...................  Cook............           0.069           0.074           0.078           0.073
17-043-6001...................  DuPage..........           0.070           0.073           0.069           0.070
17-089-0005...................  Kane............           0.071           0.073           0.068           0.070
17-097-1007...................  Lake............           0.066           0.076           0.077           0.073
17-111-0001...................  McHenry.........           0.070           0.076           0.069           0.071
17-197-1011...................  Will............           0.060           0.067           0.065           0.064
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                                                     Indiana
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18-089-0022...................  Lake............           0.065           0.074           0.070           0.069
18-089-2008...................  Lake............           0.065           0.071           0.068           0.068
18-127-0024...................  Porter..........           0.068           0.076           0.072           0.072
18-127-0026...................  Porter..........           0.071           0.067           0.066           0.068
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    The Chicago area's 3-year ozone design value for 2019-2021 is 0.075
ppm,\2\ which meets the 2008 ozone NAAQS. Therefore, in this action,
EPA proposes to determine that the Chicago area is attaining the 2008
ozone NAAQS.
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    \2\ The monitor ozone design value for the monitor with the
highest 3-year averaged concentration.
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    EPA will not take final action to determine that the Chicago area
is attaining the NAAQS nor to approve the redesignation of the Indiana
portion of the Chicago area if the design value of a monitoring site in
the area violates the NAAQS after proposal but prior to final approval
of the redesignation. As discussed in section IV.D.3. below, Indiana
has committed to continue monitoring ozone in this area to verify
maintenance of the 2008 ozone NAAQS.

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

    As criteria for redesignation of an area from nonattainment to
attainment of a NAAQS, the CAA requires EPA to determine that the state
has met all applicable requirements under section 110 and part D of
title I of the CAA (see section 107(d)(3)(E)(v) of the CAA) and that
the state has a fully approved SIP under section 110(k) of the CAA (see
section 107(d)(3)(E)(ii) of the CAA). EPA finds that Indiana has met
all applicable SIP requirements, for purposes of redesignation, under
section 110 and part D of title I of the CAA (requirements specific to
nonattainment areas for the 2008 ozone NAAQS). Additionally, with the
exception of the NOX exemption, Enhanced I/M, VOC RACT,
CFVP, and EMP requirements of the CAA, EPA finds that all applicable
requirements of the Indiana SIP for the area have been fully approved
under section 110(k) of the CAA.
    As discussed below, in this action EPA is proposing to approve
Indiana's Enhanced I/M certification as meeting the serious I/M
requirements of section 182(c)(3) of the CAA. Also, EPA is proposing to
approve Indiana's VOC RACT submission as meeting the requirements of
section 182(b)(2) of the CAA, CFVP certification as meeting the
requirements of 182(c)(4) of the CAA, and EMP certification as meeting
the requirements of section 182(c)(1) of the CAA. Finally, EPA is
proposing to approve a waiver, for the Indiana portion of the Chicago
area, from the NOX requirements of section 182(f) of the
CAA.
    In making these determinations, EPA ascertained which CAA
requirements are applicable to the Indiana portion of the Chicago area,
if applicable, whether the required Indiana SIP elements are fully
approved under section 110(k) and part D of the CAA. As discussed more
fully below, SIPs must be fully approved only with respect to currently
applicable requirements of the CAA.
    The September 4, 1992, Calcagni memorandum (see ``Procedures for
Processing Requests to Redesignate Areas to Attainment,'' Memorandum
from John Calcagni, Director, Air Quality Management Division,
September 4, 1992) describes EPA's interpretation of section
107(d)(3)(E) of the CAA. Under this interpretation, a state and the
area it wishes to redesignate must meet the relevant CAA requirements
that are due prior to the state's submittal of a complete redesignation
request for the area. See also the September 17, 1993, Michael Shapiro
memorandum and 60 FR 12459, 12465-66 (March 7, 1995)

(redesignation of Detroit-Ann Arbor, Michigan to attainment of the 1-
hour ozone NAAQS). Applicable requirements of the CAA that come due
subsequent to the state's submittal of a complete request remain
applicable until a redesignation to attainment is approved but are not
required as a prerequisite to redesignation. See section 175A(c) of the
CAA. Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004). See also 68 FR
25424, 25427 (May 12, 2003) (redesignation of the St. Louis/East St.
Louis area to attainment of the 1-hour ozone NAAQS).
    EPA is proposing to determine that the Chicago area has attained
the 2008 ozone standard. If that determination is finalized, under 40
CFR 51.918, the requirements to submit certain planning SIPs related to
attainment, including attainment demonstration requirements (the
reasonably available control measures (RACM) requirement of section
172(c)(1) of the CAA, the reasonable further progress (RFP) and
attainment demonstration requirements of sections 172(c)(2) and (6) and
182(b)(1) of the CAA, and the requirement for contingency measures of
section 172(c)(9) of the CAA) would not be applicable to the area as
long as it continues to attain the NAAQS and would cease to apply upon
redesignation. 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:
    ``The 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 at 13564)
    See also Calcagni memorandum at 6 (``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.'').
1. Indiana Has Met All Applicable Requirements of Section 110 and Part
D of the CAA Applicable to the Indiana Portion of the Chicago Area for
Purposes of Redesignation
a. Section 110 General Requirements for Implementation Plans
    Section 110(a)(2) of the CAA delineates the general requirements
for a SIP. Section 110(a)(2) provides that the SIP must have been
adopted by the state after reasonable public notice and hearing, and
that, among other things, it must: (1) Include enforceable emission
limitations and other control measures, means or techniques necessary
to meet the requirements of the CAA; (2) provide for establishment and
operation of appropriate devices, methods, systems and procedures
necessary to monitor ambient air quality; (3) provide for
implementation of a source permit program to regulate the modification
and construction of stationary sources within the areas covered by the
plan; (4) include provisions for the implementation of part C
prevention of significant deterioration (PSD) and part D new source
review (NSR) permit programs; (5) include provisions for stationary
source emission control measures, monitoring, and reporting; (6)
include provisions for air quality modeling; and, (7) provide for
public and local agency participation in planning and emission control
rule development.
    Section 110(a)(2)(D) of the CAA requires SIPs to contain measures
to prevent sources in a state from significantly contributing to air
quality problems in another state. To implement this provision, EPA has
required certain states to establish programs to address transport of
certain air pollutants, e.g., NOX SIP call, the Clean Air
Interstate Rule (CAIR), Cross State Air Pollution Rule (CSAPR).
However, like many of the 110(a)(2) requirements, the section
110(a)(2)(D) SIP requirements are not linked to a particular area's
ozone designation and classification. EPA concludes that the SIP
requirements linked with the area's ozone designation and
classification are the relevant measures to evaluate when reviewing a
redesignation request for the area. The section 110(a)(2)(D)
requirements, where applicable, continue to apply to a state regardless
of the designation of any one particular area within the state. Thus,
we believe these requirements are not applicable requirements for
purposes of redesignation. See 65 FR 37890 (June 15, 2000), 66 FR 50399
(October 19, 2001), 68 FR 25418, 25426-27 (May 13, 2003).
    In addition, EPA believes that other section 110 elements that are
neither connected with nonattainment plan submissions nor linked with
an area's ozone attainment status are not applicable requirements for
purposes of redesignation. The area will still be subject to these
requirements after the area is redesignated to attainment of the 2008
ozone NAAQS. The section 110 and part D requirements which are linked
with a particular area's designation and classification are the
relevant measures to evaluate in reviewing a redesignation request.
This approach is consistent with EPA's existing policy on applicability
(i.e., for redesignations) of conformity requirements, as well as with
section 184 ozone transport requirements. See Reading, Pennsylvania
proposed and final rulemakings, 61 FR 53174-53176 (October 10, 1996)
and 62 FR 24826 (May 7, 1997); Cleveland-Akron-Loraine, Ohio final
rulemaking, 61 FR 20458 (May 7, 1996); and Tampa, Florida final
rulemaking, 60 FR 62748 (December 7, 1995). See also the discussion of
this issue in the Cincinnati, Ohio ozone redesignation (65 FR 37890,
June 19, 2000), and the Pittsburgh, Pennsylvania ozone redesignation
(66 FR 50399, October 19, 2001).
    We have reviewed Indiana's SIP and have concluded that it meets the
general SIP requirements under section 110 of the CAA, to the extent
those requirements are applicable for purposes of redesignation.\3\
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    \3\ EPA has previously approved provisions of the Indiana SIP
addressing section 110 elements under the 2008 ozone NAAQS; 80 FR
23713 (April 29, 2015), 84 FR 46889 (September 6, 2019).
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b. Part D Requirements
    Section 172(c) of the CAA sets forth the basic requirements of air
quality plans for states with nonattainment areas that are required to
submit them pursuant to section 172(b). Subpart 2 of part D, which
includes section 182 of the CAA, establishes specific requirements for
ozone nonattainment areas depending on the areas' nonattainment
classifications.
    The Chicago area is classified as serious under subpart 2 for the
2008 ozone NAAQS. As such, the area is subject to the subpart 1
requirements contained in section 172(c) and section 176. Similarly,
the area is subject to the subpart 2 requirements contained in sections
182(a), (b), and (c) (Marginal, Moderate, and Serious nonattainment
area requirements). A thorough discussion of the requirements contained
in section 172(c) and 182 can

be found in the General Preamble for Implementation of Title I (57 FR
13498).
i. Subpart 1 Section 172 Requirements
    CAA Section 172(b) requires states to submit SIPs meeting the
requirements of section 172(c) no later than three years from the date
of the nonattainment designation.
    Section 172(c)(1) requires the plans for all nonattainment areas to
provide for the implementation of all RACM as expeditiously as
practicable and to provide for attainment of the primary NAAQS. Under
this requirement, a state must consider all available control measures,
including reductions that are available from adopting RACT on existing
sources. Because attainment has been reached in the Chicago area, no
additional measures are needed to provide for attainment and section
172(c)(1) requirements are no longer considered to be applicable, as
long as the area continues to attain the standard until redesignation.
See 40 CFR 51.1118.
    The RFP requirement under section 172(c)(2) is defined as progress
that must be made toward attainment. EPA approved Indiana's RFP plan
and RFP contingency measures on February 13, 2019 (84 FR 3711).
    Section 172(c)(3) requires submission and approval of a
comprehensive, accurate and current inventory of actual emissions. This
requirement was superseded by the inventory requirement in section
182(a)(1) discussed below.
    Section 172(c)(4) requires the identification and quantification of
allowable emissions for major new and modified stationary sources in an
area, and section 172(c)(5) requires source permits for the
construction and operation of new and modified major stationary sources
anywhere in the nonattainment area. EPA has previously approved
Indiana's NSR program on February 13, 2019 (84 FR 3711). However, EPA
has determined that, since PSD requirements will apply after
redesignation, areas being redesignated need not comply with the
requirement that the NSR program be approved prior to redesignation,
provided that the area demonstrates maintenance of the NAAQS without
part D NSR. A more detailed rationale for this view is described in a
memorandum from Mary Nichols, Assistant Administrator for Air and
Radiation, dated October 14, 1994, entitled, ``Part D New Source Review
Requirements for Areas Requesting Redesignation to Attainment.''
Indiana has demonstrated that the Indiana portion of the Chicago area
will be able to maintain the 2008 ozone NAAQS without part D NSR in
effect; therefore, EPA concludes that the state need not have a fully
approved part D NSR program prior to approval of the redesignation
request. See rulemakings for Detroit, Michigan (60 FR 12467-12468,
March 7, 1995); Cleveland-Akron-Lorain, Ohio (61 FR 20458, 20469-20470,
May 7, 1996); Louisville, Kentucky (66 FR 53665, October 23, 2001); and
Grand Rapids, Michigan (61 FR 31834-31837, June 21, 1996). Indiana's
PSD program will become effective in the Indiana portion of the Chicago
area upon redesignation to attainment. EPA approved Indiana's PSD
program on May 20, 2004 (69 FR 29071).
    Section 172(c)(6) requires the SIP to contain control measures
necessary to provide for attainment of the standard. Because attainment
has been reached, no additional measures are needed to provide for
attainment.
    Section 172(c)(7) requires the SIP to meet the applicable
provisions of section 110(a)(2). As noted above, we believe the Indiana
SIP meets the requirements of section 110(a)(2) for purposes of
redesignation.
    Section 172(c)(9) requires the SIP to provide for the
implementation of contingency measures if the area fails to make
reasonably further progress or to attain the NAAQS by the attainment
deadline. As noted previously, EPA approved Indiana's contingency
measures for purposes of RFP on February 13, 2019 (84 FR 3711). With
respect to contingency measures for failure to attain the NAAQS by the
attainment deadline, this requirement is not relevant for purposes of
redesignation because the Chicago area has demonstrated monitored
attainment of the 2008 ozone NAAQS. (General Preamble, 57 FR 13564).
See also 40 CFR 51.918.
ii. Section 176 Conformity Requirements
    Section 176(c) of the CAA requires that federally supported or
funded projects conform to the applicable SIP. The requirement to
determine conformity applies to transportation plans, programs and
projects that are developed, funded or approved under title 23 of the
United States Code (U.S.C.) and the Federal Transit Act (transportation
conformity), as well as to all other federally supported or funded
projects (general conformity). State transportation conformity SIP
revisions must be consistent with Federal conformity regulations
relating to consultation, enforcement and enforceability that EPA
promulgated pursuant to its authority under the CAA.
    EPA interprets the conformity SIP requirements \4\ as not applying
for purposes of evaluating a redesignation request under section
107(d), because state conformity rules are still required after
redesignation and Federal conformity rules apply where state conformity
rules have not been approved. See Wall v. EPA, 265 F.3d 426 (6th Cir.
2001) (upholding this interpretation); see also 60 FR 62748 (December
7, 1995) (redesignation of Tampa, Florida). Nonetheless, Indiana has an
approved conformity SIP for the Indiana portion of the Chicago area.
See 84 FR 3711 (February 13, 2019). Indiana has submitted 2030 and 2035
VOC and NOX motor vehicle emissions budgets (or budgets) for
the Indiana portion of the Chicago area. The metropolitan planning
organization that covers the Indiana portion of this area must use
these budgets in any conformity determination that is effective on or
after the effective date of the maintenance plan approval.
---------------------------------------------------------------------------

    \4\ CAA section 176(c)(4)(E) requires states to submit revisions
to their SIPs to reflect certain Federal criteria and procedures for
determining transportation conformity. Transportation conformity
SIPs are different from SIPs requiring the development of motor
vehicle emissions budgets, such as control strategy SIPs and
maintenance plans.
---------------------------------------------------------------------------

iii. Subpart 2 Section 182(a), (b), and (c) Requirements
    Section 182(a)(1) requires states to submit a comprehensive,
accurate, and current inventory of actual emissions from sources of VOC
and NOX emitted within the boundaries of the ozone
nonattainment area. EPA approved Indiana's base year emissions
inventory for the Indiana portion of the Chicago area on April 7, 2017,
and (82 FR 16934) February 13, 2019, (84 FR 3711).
    Under section 182(a)(2)(A), states with ozone nonattainment areas
that were designated prior to the enactment of the 1990 CAA amendments
were required to submit, within six months of classification, all rules
and corrections to existing VOC RACT rules that were required under
section 172(b)(3) prior to the 1990 CAA amendments. The Indiana portion
of the Chicago area is not subject to the section 182(a)(2) RACT ``fix
up'' requirement for the 2008 ozone NAAQS because it was designated as
nonattainment for this standard after the enactment of the 1990 CAA
amendments and because Indiana complied with this requirement for the
Indiana portion of the Chicago area under the prior 1-hour ozone NAAQS.
See 57 FR 8082 (March 6, 1992).
    Section 182(a)(2)(B) requires each state, with a Marginal ozone

nonattainment area that implemented or was required to implement a
vehicle I/M program prior to the 1990 CAA amendments, to submit a SIP
revision for an I/M program no less stringent than that required prior
to the 1990 CAA Amendments or already in the SIP at the time of the CAA
Amendments, whichever is more stringent. For the purposes of the 2008
ozone standard and the consideration of Indiana's redesignation request
for this standard, the Indiana portion of the Chicago area is not
subject to the section 182(a)(2)(B) requirement, because the area was
designated as nonattainment for the 2008 ozone standard after the
enactment of the 1990 CAA Amendments and because Indiana complied with
this requirement for the Indiana portion of the Chicago area under the
prior 1-hour ozone NAAQS.
    Section 182(a)(3)(B) requires the submission of an emission
statement SIP. EPA approved Indiana's emission statement SIP for the
Indiana portion of the Chicago area for the 2008 ozone NAAQS on April
7, 2017 (82 FR 16934) and on February 13, 2019 (84 FR 3711).
    Section 182(b)(1) requires the submission of an attainment
demonstration and RFP plan. EPA approved Indiana's attainment
demonstration, RFP plan, and RFP contingency measures for the Indiana
portion of the Chicago 2008 ozone NAAQS Moderate nonattainment area on
February 13, 2019 (84 FR 3711). Because attainment has been reached,
section 182(b)(1) requirements are no longer considered to be
applicable, as long as the area continues to attain the standard. If
EPA finalizes approval of the redesignation of the area, EPA will take
no further action on the attainment demonstration submitted by Indiana.
    Section 182(b)(2) requires states with Moderate nonattainment areas
to implement VOC RACT with respect to each of the following: (1) All
sources covered by a Control Technology Guideline (CTG) document issued
between November 15, 1990, and the date of attainment; (2) all sources
covered by a CTG issued prior to November 15, 1990; and, (3) all other
major non-CTG stationary sources. If no major non-CTG sources of VOC
emissions or no sources in a CTG category exist in an applicable
nonattainment area, a state may submit a negative declaration for that
category. Indiana has adopted and submitted VOC RACT rules and negative
source declarations to cover all applicable CTGs, and major non-CTG
sources. EPA approved Indiana's Negative Declaration for the Oil and
Gas CTG for the Indiana portion of the Chicago area for the 2008 ozone
NAAQS on December 13, 2019 (84 FR 68050). EPA approved Indiana's VOC
RACT program for the Indiana portion of the Chicago area for the 2008
ozone NAAQS on February 13, 2019 (84 FR 3711).
    Indiana submitted VOC RACT SIP revisions for the Indiana portion of
the Chicago area under the serious classification on December 29, 2020,
and on September 17, 2021. For the reasons discussed in section VII.,
below, EPA is proposing to approve the SIP revisions submitted by
Indiana as meeting the section 182(b)(2) RACT requirements for the
Indiana portion of the Chicago area under the 2008 ozone NAAQS.
    Section 182(b)(3) requires states to adopt Stage II gasoline vapor
recovery regulations. On May 16, 2012 (77 FR 28772), EPA determined
that the use of onboard vapor recovery technology for capturing
gasoline vapor when gasoline-powered vehicles are refueled is in
widespread use throughout the highway motor vehicle fleet and waived
the requirement that current and former ozone nonattainment areas
implement Stage II vapor recovery systems on gasoline pumps.
    Section 182(b)(4) requires a Basic motor vehicle inspection and
maintenance (I/M) program for each state with a Moderate ozone
nonattainment area. EPA approved Indiana's Basic I/M program
certification for the Indiana portion of the Chicago area for the
Moderate classification of the 2008 ozone NAAQS on February 13, 2019
(84 FR 3711).
    Regarding the source permitting and offset requirements of sections
182(a)(2)(C), 182(a)(4), and 182(b)(5), Indiana currently has a fully-
approved part D NSR program in place. EPA approved Indiana's NSR SIP on
February 13, 2019 (84 FR 3711). EPA approved Indiana's PSD program on
May 20, 2004 (69 FR 29071). The state's PSD program will become
effective in the Indiana portion of the Chicago area upon redesignation
of the area to attainment.
    Section 182(f) establishes NOX requirements for ozone
nonattainment areas. However, it provides that these requirements do
not apply to an area if the Administrator determines that
NOX reductions would not contribute to attainment. As
discussed in section VI. below, we are proposing such a determination
for the Indiana portion of the Chicago area as requested by Indiana. If
EPA grants Indiana's NOX waiver request, Indiana need not
have fully approved NOX control measures under section
182(f) for the Indiana portion of the Chicago area to be redesignated
to attainment.
    Section 182(c)(1) of the CAA requires states with nonattainment
areas classified Serious or higher to adopt and implement a program to
improve air monitoring for ambient concentrations of ozone,
NOX and VOC. EPA initiated the Photochemical Assessment
Monitoring Stations (PAMS) program in February 1993. The PAMS program
required the establishment of an enhanced monitoring network in all
ozone nonattainment areas classified as Serious, Severe, or Extreme. On
March 16, 1994 (59 FR 12168), EPA approved Indiana's SIP submission
establishing an EMP in the Indiana portion of the Chicago area as
required by Section 182(c)(1) of the CAA.
    In section IX. below, EPA is proposing to approve Indiana's
certification that its current EMP meets the Serious requirements for
the Indiana portion of the Chicago area for the 2008 ozone NAAQS. EPA
will not finalize this redesignation until we've approved the EMP
program.
    CAA section 182(c)(3) requires states with ozone nonattainment
areas classified as Serious or higher to adopt and implement an
Enhanced I/M program. Indiana submitted Enhanced I/M revisions on
December 29, 2020, and January 18, 2022. For the reasons discussed in
section X., below, EPA is proposing to approve the Indiana I/M
certification as meeting the section 182(c)(3) Serious Enhanced I/M
requirements for the Indiana portion of the Chicago area under the 2008
ozone NAAQS. EPA will not finalize this redesignation until it has
approved the I/M program certification.
    CAA section 182(c)(4) requires states with ozone nonattainment
areas classified as Serious or higher to submit a SIP revision
describing implementation of CFVP, as described in CAA title II part C
(40 CFR 88). EPA approved Indiana's CFVP on March 21, 1996 (61 FR
11552). On July 29, 2021 (86 FR 34308), EPA published a final rule in
which EPA determined that vehicles and engines certified to current
emission standards under 40 CFR part 86 or 1036 are deemed to also meet
the Clean Fuel Fleet standards as Ultra Low-Emission Vehicles.
    In section VIII. below, EPA is proposing to approve Indiana's
certification that its current CFVP meets the serious CFVP requirements
for the Indiana portion of the Chicago area for the 2008 ozone NAAQS.
EPA will not finalize this redesignation until we've approved the CFVP
program.
    The remaining section 182(c) requirements for areas classified as

serious include: An attainment demonstration, RFP, and RFP contingency
measures. These elements are not needed to redesignate the Indiana
portion of the Chicago area because the area has attained the 2008
ozone NAAQS. This rationale is outlined in 40 CFR 51.918, the general
preamble, and the Calcagni memorandum at 6 (``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.'') EPA believes that it is reasonable
to interpret these provisions so as not to require areas that are
meeting the ozone standard to make the SIP submissions to EPA described
in the provisions as long as the areas continue to meet the standard.
If such an area were to monitor a violation of the standard prior to
being redesignated to attainment, however, the area would have to
address the pertinent requirements and submit the SIP revisions
described in those provisions to EPA.
    Thus, as discussed above, with approval of Indiana's 182(f)
NOX exemption, Enhanced I/M certification, VOC RACT, CFVP
certification, and EMP requirements of the CAA, EPA finds that the
Indiana portion of the Chicago area will satisfy all applicable
requirements for purposes of redesignation under section 110 and part D
of title I of the CAA.
2. The Indiana Portion of the Chicago Area Has a Fully Approved SIP for
Purposes of Redesignation Under Section 110(k) of the CAA.
    At various times, Indiana has adopted and submitted, and EPA has
approved, provisions addressing the various SIP elements applicable for
the ozone NAAQS. As discussed above, if EPA finalizes approval of
Indiana's section 182(f) NOX exemption, Enhanced I/M, VOC
RACT, CFVP, and EMP submissions as meeting the Serious requirements of
the CAA, EPA will have fully approved the Indiana SIP for the Indiana
portion of the Chicago area under section 110(k) for all requirements
applicable for purposes of redesignation under the 2008 ozone NAAQS.
EPA may rely on prior SIP approvals in approving a redesignation
request (see the Calcagni memorandum at page 3; Southwestern
Pennsylvania Growth Alliance v. Browner, 144 F.3d 984, 989-990 (6th
Cir. 1998); Wall v. EPA, 265 F.3d 426), plus any additional measures it
may approve in conjunction with a redesignation action (see 68 FR 25426
(May 12, 2003) and citations therein).

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

    To redesignate an area from nonattainment to attainment, section
107(d)(3)(E)(iii) of the CAA requires EPA to determine that the air
quality improvement in the area is due to permanent and enforceable
reductions in emissions resulting from the implementation of the SIP
and applicable Federal air pollution control regulations and other
permanent and enforceable emission reductions. EPA has determined that
Indiana has demonstrated that the observed ozone air quality
improvement in the Chicago area is due to permanent and enforceable
reductions in VOC and NOX emissions resulting from state
measures adopted into the SIP and Federal measures.
    In making this demonstration, the State has calculated the change
in emissions between 2011 and 2019. The reduction in emissions and the
corresponding improvement in air quality over this time period can be
attributed to several regulatory control measures that the Chicago area
and other portions of the area have implemented in recent years. In
addition, Indiana provided an analysis to demonstrate the improvement
in air quality was not due to unusually favorable meteorology. Based on
the information summarized below, EPA finds that Indiana has adequately
demonstrated that the improvement in air quality is due to permanent
and enforceable emissions reductions.
1. Permanent and Enforceable Emission Controls Implemented
a. Regional NOX Controls
    CAIR/CSAPR. Under the ``good neighbor provision'' of CAA section
110(a)(2)(D)(i)(I), states are required to address interstate transport
of air pollution. Specifically, the good neighbor provision provides
that each state's SIP must contain provisions prohibiting emissions
from within that state which will contribute significantly to
nonattainment of the NAAQS, or interfere with maintenance of the NAAQS,
in any other state.
    On May 12, 2005, EPA published CAIR, which required eastern states,
including Indiana, to prohibit emissions consistent with annual and
ozone season NOX budgets and annual sulfur dioxide
(SO2) budgets (70 FR 25152). CAIR addressed the good
neighbor provision for the 1997 ozone NAAQS and 1997 fine particulate
matter (PM2.5) NAAQS and was designed to mitigate the impact
of transported NOX emissions, a precursor of both ozone and
PM2.5, as well as transported SO2 emissions,
another precursor of PM2.5. The United States Court of
Appeals for the District of Columbia Circuit (D.C. Circuit) remanded
CAIR to EPA for replacement in 2008. North Carolina v. EPA, 531 F.3d
896, modified, 550 F.3d 1176 (2008). While EPA worked on developing a
replacement rule, implementation of the CAIR program continued as
planned with the NOX annual and ozone season programs
beginning in 2009 and the SO2 annual program beginning in
2010.
    On August 8, 2011 (76 FR 48208), acting on the D.C. Circuit's
remand, EPA published CSAPR to replace CAIR and to address the good
neighbor provision for the 1997 ozone NAAQS, the 1997 PM2.5
NAAQS, and the 2006 PM2.5 NAAQS. Through Federal
Implementation Plans, CSAPR required electric generating units (EGUs)
in eastern states, including Indiana, to meet annual and ozone season
NOX budgets and annual SO2 budgets implemented
through new trading programs. After delays caused by litigation, EPA
started implementing the CSAPR trading programs in 2015, simultaneously
discontinuing administration of the CAIR trading programs. On October
26, 2016, EPA published the CSAPR Update, which established, starting
in 2017, a new ozone season NOX trading program for EGUs in
eastern states, including Indiana, to address the good neighbor
provision for the 2008 ozone NAAQS (81 FR 74504). The CSAPR Update is
estimated to result in a 20 percent reduction in ozone season
NOX emissions from EGUs in the eastern United States, a
reduction of 80,000 tons in 2017 compared to 2015 levels. The reduction
in NOX emissions from the implementation of CAIR and then
CSAPR occurred by the attainment years and additional emission
reductions will occur throughout the maintenance period.
b. Federal Emission Control Measures
    Reductions in VOC and NOX emissions have occurred
statewide and in upwind areas as a result of Federal emission control
measures, with additional emission reductions expected to occur in the
future. Federal emission control measures include the following:
    Tier 3 Emission Standards for Vehicles and Gasoline Sulfur
Standards. On April 28, 2014 (79 FR 23414), EPA promulgated Tier 3
motor vehicle emission and fuel standards to reduce both tailpipe and
evaporative emissions and to further reduce the sulfur content in
fuels. The rule is being phased in

between 2017 and 2025. Tier 3 sets new tailpipe standards for the sum
of VOC and NOX and for particulate matter. The VOC and
NOX tailpipe standards for light-duty vehicles represent
approximately an 80 percent reduction from today's fleet average and a
70 percent reduction in per-vehicle particulate matter (PM) standards.
Heavy-duty tailpipe standards represent about a 60 percent reduction in
both fleet average VOC and NOX and per-vehicle PM standards.
The evaporative emissions requirements in the rule will result in
approximately a 50 percent reduction from current standards and apply
to all light-duty and on-road gasoline-powered heavy-duty vehicles.
Finally, the rule lowered the sulfur content of gasoline to an annual
average of 10 ppm by January 2017. As projected by these estimates and
demonstrated in the on-road emission modeling for the Indiana portion
of the Chicago area, some of these emission reductions occurred by the
attainment years and additional emission reductions will occur
throughout the maintenance period, as older vehicles are replaced with
newer, compliant model years.
    Heavy-Duty Diesel Engine Rules. In July 2000, EPA issued a rule for
on-road heavy-duty diesel engines that includes standards limiting the
sulfur content of diesel fuel. Emissions standards for NOX,
VOC and PM were phased in between model years 2007 and 2010. In
addition, the rule reduced the highway diesel fuel sulfur content to 15
parts per million by 2007, leading to additional reductions in
combustion NOX and VOC emissions. EPA has estimated future
year emission reductions due to implementation of this rule.
Nationally, EPA estimated that by 2015 NOX and VOC emissions
would decrease by 1,260,000 tons and 54,000 tons, respectively.
Nationally, EPA estimated that by 2030 NOX and VOC emissions
will decrease by 2,570,000 tons and 115,000 tons, respectively. As
projected by these estimates and demonstrated in the on-road emission
modeling for the Indiana portion of the Chicago area, some of these
emission reductions occurred by the attainment years and additional
emission reductions will occur throughout the maintenance period, as
older vehicles are replaced with newer, compliant model years.
    Non-road Diesel Rule. On June 29, 2004 (69 FR 38958), EPA issued a
rule adopting emissions standards for non-road diesel engines and
sulfur reductions in non-road diesel fuel. This rule applies to diesel
engines used primarily in construction, agricultural, and industrial
applications. Emission standards were phased in for the 2008 through
2015 model years based on engine size. The SO2 limits for
non-road diesel fuels were phased in from 2007 through 2012. EPA
estimates that when fully implemented, compliance with this rule will
cut NOX emissions from these non-road diesel engines by
approximately 90 percent. As projected by these estimates and
demonstrated in the non-road emission modeling for the Indiana portion
of the Chicago area, some of these emission reductions occurred by the
attainment years and additional emission reductions will occur
throughout the maintenance period.
    Non-road Spark-Ignition Engines and Recreational Engine Standards.
On November 8, 2002 (67 FR 68242), EPA adopted emission standards for
large spark-ignition engines such as those used in forklifts and
airport ground-service equipment; recreational vehicles such as off-
highway motorcycles, all-terrain vehicles, and snowmobiles; and
recreational marine diesel engines. These emission standards were
phased in from model year 2004 through 2012. When fully implemented,
EPA estimates an overall 72 percent reduction in VOC emissions from
these engines and an 80 percent reduction in NOX emissions.
As projected by these estimates and demonstrated in the non-road
emission modeling for the Indiana portion of the Chicago area, some of
these emission reductions occurred by the attainment years and
additional emission reductions will occur throughout the maintenance
period.
    Category 3 Marine Diesel Engine Standards. On April 30, 2010 (75 FR
22896), EPA issued emission standards for marine compression-ignition
engines at or above 30 liters per cylinder. Tier 2 emission standards
apply beginning in 2011, are expected to result in a 15 to 25 percent
reduction in NOX emissions from these engines. Final Tier 3
emission standards apply beginning in 2016 and are expected to result
in approximately an 80 percent reduction in NOX from these
engines. As projected by these estimates and demonstrated in the non-
road emission modeling for the Indiana portion of the Chicago area,
some of these emission reductions occurred by the attainment years and
additional emission reductions will occur throughout the maintenance
period.
2. Emission Reductions
    Indiana is using a 2011 emissions inventory as the nonattainment
year. This is appropriate because it was one of the years used to
designate the Chicago area as nonattainment. Indiana is using 2019 as
the attainment year, which is appropriate because it is one of the
years in the 2019-2021 period used to demonstrate attainment.
    Area and non-road mobile emissions were collected from data
available on EPA's Air Emissions Modeling website.\5\ For the 2019
attainment year, area and non-road source emissions inventory estimates
were based on the data interpolation between 2016 base year and the
2023 projection year of EPA's 2016 version 1 Emission Modeling
Platform.
---------------------------------------------------------------------------

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

    IDEM compiled 2011 and 2019 actual point source and EGU-point
source emissions from state inventory databases.
    On-road mobile source emissions were developed in conjunction with
the Northwestern Indiana Regional Planning Commission (NIRPC), the
Metropolitan Planning Organization for the area that includes Lake,
Porter, and LaPorte Counties. NIRPC maintains a travel demand forecast
model that is used to identify where travel capacity will be needed and
to determine the infrastructure requirements necessary to meet that
need. The travel demand forecast model predicts the total daily vehicle
miles traveled.
    Indiana used the Motor Vehicle Emission Simulator (MOVES), EPA's
recommended mobile source model, to develop on-road emissions rates.
The modeling inputs to MOVES, which include detailed transportation
data (e.g., vehicle-miles of travel by vehicle class, road class and
hour of day, and average speed distributions), were provided by NIRPC.
    On-road mobile source emissions were calculated from emissions
factors produced by EPA's MOVES model and data extracted from the
region's travel-demand forecast model. The inputs assume the continued
phase-in of the Tier 3 standards beginning in 2017, continued operation
of Indiana's vehicle I/M program, and reformulated gasoline program.
    The annual emissions provided by this inventory are then used to
calculate average summer day emissions using EPA guidance on how the
model estimates daily emissions. The monthly profile percentages for
June, July, and August were added together and then divided by the
number of days in the season (92).
    Emissions for Illinois and Wisconsin were based on inventories
developed by those states in 2016 for an earlier round of redesignation
requests. For the current document, 2011 and 2030 emissions are
directly taken from these

earlier inventories, whereas 2019 emissions were determined by
interpolation from these inventories. 2035 emissions were determined by
a projection from these inventories.
    Using the inventories described above, Indiana's submittal
documents changes in VOC and NOX emissions from 2011 to 2019
for the Indiana portion of the Chicago area. Emissions data are shown
in Tables 2 and 3.

  Table 2--Emissions Reduction of NOX Emissions for the Illinois, Indiana and Wisconsin Portions of the Chicago
                                          Nonattainment Area 2011-2019
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                                                       2011            2019
                             Sector                                nonattainment    attainment       Emissions
                                                                       year            year          reduction
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................................           67.41           35.23           32.18
Non-EGU.........................................................           52.58           47.55            5.03
Area............................................................           32.03           34.63            -2.6
On-Road.........................................................          285.34          134.38          150.96
Non-road........................................................          176.60          121.63           54.97
                                                                 -----------------------------------------------
    Total.......................................................          613.96          373.42          240.54
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................................           24.04            4.29           19.75
Non-EGU.........................................................           70.77           59.91           10.86
Area............................................................            9.39            0.91            8.48
On-road.........................................................           24.70           14.91            9.79
Non-road........................................................           15.84           13.43            2.41
                                                                 -----------------------------------------------
    Total.......................................................          144.74           93.45           51.29
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................................            8.71            0.00            8.71
Non-EGU.........................................................            0.09            0.08            0.01
Area............................................................            1.20            1.13            0.07
On-Road.........................................................            4.82            1.81            3.01
Non-road........................................................            2.25            1.64            0.61
                                                                 -----------------------------------------------
    Total.......................................................           17.07            4.66           12.41
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois........................................................          613.96          373.42          240.54
Indiana.........................................................          144.74           93.45           51.29
Wisconsin.......................................................           17.07            4.66           12.41
                                                                 -----------------------------------------------
    Total.......................................................          775.77          471.53          304.24
----------------------------------------------------------------------------------------------------------------

  Table 3--Emissions Reduction of VOC Emissions for the Illinois, Indiana and Wisconsin Portions of the Chicago
                                          Nonattainment Area 2011-2019
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                                                                Emissions
                             Sector                                    2011            2019          reduction
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................................            0.62            0.97           -0.35
Non-EGU.........................................................           47.63           45.35            2.28
Area............................................................          215.14          232.00          -16.86
On-Road.........................................................           72.43           66.45            5.98
Non-road........................................................          101.83           67.67           34.16
                                                                 -----------------------------------------------
    Total.......................................................          437.65          412.44           25.21
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................................            0.54            0.47            0.07
Non-EGU.........................................................           17.22           10.83            6.39
Area............................................................           18.26           17.00            1.26
On-road.........................................................            9.58            6.80            2.78

Non-road........................................................           21.43            5.53           15.90
                                                                 -----------------------------------------------
    Total.......................................................           67.03           40.63           26.40
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................................            0.38            0.00            0.38
Non-EGU.........................................................            0.24            0.19            0.05
Area............................................................            4.10            3.58            0.52
On-Road.........................................................            1.90            0.89            1.01
Non-road........................................................            1.14            0.70            0.44
                                                                 -----------------------------------------------
    Total.......................................................            7.76            5.36            2.40
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois........................................................          437.65          412.44           25.21
Indiana.........................................................           67.03           40.63           26.40
Wisconsin.......................................................            7.76            5.36            2.40
    Total.......................................................          512.44          458.43           54.01
----------------------------------------------------------------------------------------------------------------

    As shown in Tables 2 and 3, NOX and VOC emissions in the
Indiana portion of the Chicago area declined by 51.29 tons/day and
26.40 tons/day, respectively, between 2011 and 2019. NOX and
VOC emissions throughout the entire Chicago area declined by 304.24
tons/day and 54.01 tons/day, respectively, between 2011 and 2019.
3. Meteorology
    To further support IDEM's demonstration that the improvement in air
quality between the year violations occurred and the year attainment
was achieved is due to permanent and enforceable emission reductions
and not unusually favorable meteorology, an analysis was performed by
the Lake Michigan Air Directors Consortium (LADCO). A classification
and regression tree (CART) analysis was conducted with 2005 through
2020 data from Chicago-area ozone monitors. The goal of the analysis
was to determine the meteorological and air quality conditions
associated with ozone episodes, and construct trends for the days
identified as sharing similar meteorological conditions.
    Regression trees were developed for the monitors to classify each
summer day by its ozone concentration and associated meteorological
conditions. By grouping days with similar meteorology, the influence of
meteorological variability on the underlying trend in ozone
concentrations is partially removed and the remaining trend is presumed
to be due to trends in precursor emissions or other non-meteorological
influences. The CART analysis showed that, reducing the impact of
meteorology, the resulting trends in ozone concentrations declined over
the period examined, supported the conclusion that the improvement in
air quality was not due to unusually favorable meteorology.
D. Does Indiana have a fully approvable ozone maintenance plan for the
Indiana portion of the Chicago area?
    As one of the criteria for redesignation to attainment, section
107(d)(3)(E)(iv) of the CAA requires EPA to determine that the area has
a fully approved maintenance plan pursuant to section 175A of the CAA.
Section 175A of the CAA sets forth the elements of a maintenance plan
for areas seeking redesignation from nonattainment to attainment. Under
section 175A, the maintenance plan must demonstrate continued
attainment of the NAAQS for at least 10 years after the Administrator
approves a redesignation to attainment. Eight years after the
redesignation, the state must submit a revised maintenance plan which
demonstrates that attainment of the NAAQS will continue for an
additional 10 years beyond the initial 10-year maintenance period. To
address the possibility of future NAAQS violations, the maintenance
plan must contain contingency measures, as EPA deems necessary, to
ensure prompt correction of the future NAAQS violation.
    The Calcagni Memorandum provides further guidance on the content of
a maintenance plan, explaining that a maintenance plan should address
five elements: (1) An attainment emission inventory; (2) a maintenance
demonstration; (3) a commitment for continued air quality monitoring;
(4) a process for verification of continued attainment; and (5) a
contingency plan. In conjunction with its request to redesignate the
Indiana portion of the Chicago area to attainment for the 2008 ozone
NAAQS, IDEM submitted a SIP revision to provide for maintenance of the
2008 ozone NAAQS through 2035, more than 10 years after the expected
effective date of the redesignation to attainment. As discussed below,
EPA proposes to find that Indiana's ozone maintenance plan includes the
necessary components and to approve the maintenance plan as a revision
of the Indiana SIP.
1. Attainment Inventory
    EPA is proposing to determine that the Indiana portion of the
Chicago area has attained the 2008 ozone NAAQS based on monitoring data
for the period of 2019-2021. IDEM selected 2019 as the attainment
emissions inventory year to establish attainment emission levels for
VOC and NOX. The attainment emissions inventory identifies
the levels of emissions in the Indiana portion of the Chicago area that
are sufficient to attain the 2008 ozone NAAQS. The derivation of the
attainment year emissions is discussed above in section IV.C.2. of this
proposed rule. The attainment level emissions, by source category, are
summarized in Tables 2 and 3 above.

2. Has the state documented maintenance of the ozone standard in the
Indiana portion of the Chicago area?
    Indiana has demonstrated maintenance of the 2008 ozone NAAQS
through 2035 by ensuring that current and future emissions of VOC and
NOX for the Indiana portion of the Chicago area remain at or
below attainment year emission levels. A maintenance demonstration need
not be based on modeling. See Wall v. EPA, 265 F.3d 426 (6th Cir.
2001), Sierra Club v. EPA, 375 F. 3d 537 (7th Cir. 2004). See also 66
FR 53094, 53099-53100 (October 19, 2001), 68 FR 25413, 25430-25432 (May
12, 2003).
    Indiana is using emissions inventories for the years 2030 and 2035
to demonstrate maintenance. 2035 is more than 10 years after the
expected effective date of the redesignation to attainment and 2030 was
selected to demonstrate that emissions are not expected to spike in the
interim between the attainment year and the final maintenance year. The
emissions inventories were developed as described below.
    Area and non-road mobile emissions were collected from data
available on EPA's Air Emissions Modeling website. Using Emissions
Modeling platform 2016v1, IDEM collected data for the 2023, 2028, and
2032 projected inventories.
    Indiana's 2030 emissions for point, area, and non-road source
sectors were estimated primarily by interpolating between EPA's
projected modeling inventories for 2023, 2028, and 2032. 2035 emissions
for point, area, and non-road source sectors were derived by utilizing
the FORECAST.LINEAR function in Excel with inventory data points from
2016, 2023, 2028, and 2032. If the FORECAST.LINEAR function resulted in
a negative value, the emissions were assumed not to change. EGU-point
emissions for 2030 were estimated from the Eastern Regional Technical
Advisory Committee (ERTAC) model. Summer day inventories were derived
for these sectors using the methodology described in section IV.V.2.
above.
    On-road mobile source emissions were developed through the combined
effort of IDEM and the NIRPC and were calculated from emission factors
produced by EPA's MOVES model and data extracted from the region's
travel-demand model. The on-road 2030 and 2035 emission estimates are
based on the actual travel demand model network runs generating
estimated emissions to exist for those years under the Northwest
Indiana 2050 Transportation Plan.
    Projected emissions data are shown in Tables 4 through 5 below.

 Table 4--Projected Emissions of NOX Emissions for the Illinois, Indiana, and Wisconsin Portions of the Chicago
                                        Nonattainment Area 2030 and 2035
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                                       2019                            2035          Emissions
                     Sector                         attainment     2030  interim    maintenance      reduction
                                                       year            year            year          2019-2035
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................           35.23           43.59           40.97           -5.74
Non-EGU.........................................           47.55           48.56           49.28           -1.73
Area............................................           34.63           34.97           35.04           -0.41
On-Road.........................................          134.38           55.94           48.81           85.57
Non-road........................................          121.63          106.80          108.27           13.36
                                                 ---------------------------------------------------------------
    Total.......................................          373.42          289.86          282.37           91.05
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................            4.29            1.44            0.42            3.87
Non-EGU.........................................           59.91           60.79           61.51           -1.60
Area............................................            0.91            0.88            0.87            0.04
On-road.........................................           14.91            6.62            5.51            9.40
Non-road........................................           13.43           10.25            8.49            4.94
                                                 ---------------------------------------------------------------
    Total.......................................           93.45           79.98           76.80           16.65
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................            0.00            0.00            0.00            0.00
Non-EGU.........................................            0.08            0.12            0.12           -0.04
Area............................................            1.13            0.95            0.96            0.17
On-Road.........................................            1.81            0.85            0.75            1.06
Non-road........................................            1.64            1.21            1.21            0.43
                                                 ---------------------------------------------------------------
    Total.......................................            4.66            3.13            3.04            1.62
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois........................................          373.42          289.86          282.37           91.05
Indiana.........................................           93.45           79.98           76.80           16.65
Wisconsin.......................................            4.66            3.13            3.04            1.62
                                                 ---------------------------------------------------------------
    Total.......................................          471.53          372.97          362.21          109.32
----------------------------------------------------------------------------------------------------------------

 Table 5--Projected Emissions of VOC Emissions for the Illinois, Indiana, and Wisconsin Portions of the Chicago
                                        Nonattainment Area 2030 and 2035
                                                   [Tons/day]
----------------------------------------------------------------------------------------------------------------
                                                       2019                            2035          Emissions
                     Sector                         attainment     2030  interim    maintenance      reduction
                                                       year            year            year          2019-2035
----------------------------------------------------------------------------------------------------------------
                                                    Illinois
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................            0.97            2.52            2.80           -1.83
Non-EGU.........................................           45.35           44.71           44.54            0.81
Area............................................          232.00          225.11          225.11            6.89
On-Road.........................................           66.45           37.42           34.27           32.18
Non-road........................................           67.67           66.41           67.37            0.30
                                                 ---------------------------------------------------------------
    Total.......................................          412.44          376.17          374.09           38.35
----------------------------------------------------------------------------------------------------------------
                                                     Indiana
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................            0.47            0.56            0.67           -0.20
Non-EGU.........................................           10.83           10.84           10.90           -0.07
Area............................................           17.00           17.58           17.85           -0.85
On-road.........................................            6.80            3.77            2.93            3.87
Non-road........................................            5.53            4.80            4.35            1.18
                                                 ---------------------------------------------------------------
    Total.......................................           40.63           37.55           36.70            3.93
----------------------------------------------------------------------------------------------------------------
                                                    Wisconsin
----------------------------------------------------------------------------------------------------------------
EGU Point.......................................            0.00            0.00            0.00            0.00
Non-EGU.........................................            0.19            0.26            0.26           -0.07
Area............................................            3.58            3.49            3.56            0.02
On-Road.........................................            0.89            0.54            0.47            0.42
Non-road........................................            0.70            0.63            0.62            0.08
                                                 ---------------------------------------------------------------
    Total.......................................            5.36            4.92            4.91            0.45
----------------------------------------------------------------------------------------------------------------
                                  Chicago-Naperville, IL-IN-WI 2008 ozone area
----------------------------------------------------------------------------------------------------------------
Illinois........................................          412.44          376.17          374.09           38.35
Indiana.........................................           40.63           37.55           36.70            3.93
Wisconsin.......................................            5.36            4.92            4.91            0.45
                                                 ---------------------------------------------------------------
    Total.......................................          458.43          418.64          415.70           42.73
----------------------------------------------------------------------------------------------------------------

    In summary, Indiana's maintenance demonstration for the Indiana
portion of the Chicago area shows maintenance of the 2008 ozone NAAQS
by providing emissions information to support the demonstration that
future emissions of NOX and VOC will remain at or below 2019
emission levels when considering both future source growth and
implementation of future controls. As shown in Tables 4 and 5,
NOX and VOC emissions in the Indiana portion of the Chicago
area are projected to decrease by 16.65 tons/day and 3.93 tons/day,
respectively, between 2019 and 2035. NOX and VOC emissions
in the entire Chicago area are projected to decrease by 109.32 tons/day
and 42.73 tons/day, respectively, between 2019 and 2035.
3. Continued Air Quality Monitoring
    Indiana has committed to continue to operate the ozone monitors
listed in Table 1 above. Indiana has committed to consult with EPA
prior to making changes to the existing monitoring network should
changes become necessary in the future. Indiana remains obligated to
meet monitoring requirements, to continue to quality assure monitoring
data in accordance with 40 CFR part 58, and to enter all data into the
Air Quality System (AQS) in accordance with Federal guidelines.
4. Verification of Continued Attainment
    Indiana has confirmed that it has the legal authority to enforce
and implement the requirements of the maintenance plan for the Indiana
portion of the Chicago area. This includes the authority to adopt,
implement, and enforce any subsequent emission control measures
determined to be necessary to correct future ozone attainment problems.
    Verification of continued attainment is accomplished through
operation of the ambient ozone monitoring network and the periodic
update of the area's emissions inventory. IDEM will continue to operate
the current ozone monitors located in the Indiana portion of the
Chicago area. There are no plans to discontinue operation, relocate, or
otherwise change the existing ozone monitoring network other than
through revisions in the network approved by EPA.
    In addition, to track future levels of emissions, Indiana will
continue to develop and submit to EPA updated emission inventories for
all source categories at least once every three years, consistent with
the requirements of 40 CFR part 51, subpart A, and 40 CFR 51.122. The
Consolidated Emissions Reporting Rule (CERR) was promulgated by EPA on
June 10, 2002 (67 FR 39602). The CERR was replaced by the Annual
Emissions Reporting Requirements on December 17, 2008 (73 FR 76539).
The most recent triennial inventory for Indiana was compiled for 2014.
Point source facilities covered by Indiana's emission statement rule,
326

IAC 2-6-1, will continue to submit VOC and NOX emissions on
an annual basis.
5. What is the contingency plan for the Indiana portion of the Chicago
area?
    Section 175A of the CAA requires that the state adopt a maintenance
plan, as a SIP revision, that includes such contingency measures as EPA
deems necessary to ensure that the state will promptly correct a
violation of the NAAQS that occurs after redesignation of the area to
attainment of the NAAQS. The maintenance plan must identify: The
contingency measures to be considered and, if needed for maintenance,
adopted and implemented; a schedule and procedure for adoption and
implementation; and a time limit for action by the state. The state
should also identify specific indicators to be used to determine when
the contingency measures need to be considered, adopted, and
implemented. The maintenance plan must include a commitment that the
state will implement all measures with respect to the control of the
pollutant that were contained in the SIP before redesignation of the
area to attainment in accordance with section 175A(d) of the CAA.
    As required by section 175A of the CAA, Indiana has adopted a
contingency plan for the Indiana portion of the Chicago area to address
possible future ozone air quality violations. The contingency plan
adopted by Indiana has two levels of response, a warning level response
and an action level response.
    In Indiana's plan, a warning level response will be triggered when
an annual (1-year) fourth high monitored value of 0.079 ppm occurs in a
single ozone season or when a two-year average fourth high monitored
value of 0.076 ppm or higher occurs within the maintenance area. A
warning level response will consist of Indiana conducting a study to
determine whether the ozone value indicates a trend toward higher ozone
values or whether emissions appear to be increasing. The study will
evaluate whether the trend, if any, is likely to continue and, if so,
the control measures necessary to reverse the trend. The study will
consider ease and timing of implementation as well as economic and
social impacts. Implementation of necessary controls in response to a
warning level response trigger will take place within 12 months from
the conclusion of the most recent ozone season.
    In Indiana's plan, an action level response is triggered when a
three-year average fourth high value of 0.076 ppm or greater is
monitored within the maintenance area. When an action level response is
triggered, Indiana will determine what additional control measures are
needed to ensure future attainment of the 2008 ozone NAAQS. Control
measures selected will be adopted and implemented within 18 months from
the close of the ozone season that prompted the action level. IDEM may
also consider if significant new regulations not currently included as
part of the maintenance provisions will be implemented in a timely
manner and would thus constitute an adequate contingency measure
response.
    Indiana included the following list of potential contingency
measures in its maintenance plan:

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

    However, Indiana is not limited to the contingency measures listed
above. To qualify as a contingency measure, emissions reductions from
that measure must not be factored into the emissions projections used
in the maintenance plan. Indiana notes that because it is not possible
to determine what control measures will be appropriate in the future,
the list is not comprehensive.
    EPA has concluded that Indiana's maintenance plan adequately
addresses the five basic components of a maintenance plan: Attainment
inventory, maintenance demonstration, monitoring network, verification
of continued attainment, and a contingency plan. In addition, as
required by section 175A(b) of the CAA, Indiana has committed to submit
to EPA an updated ozone maintenance plan eight years after
redesignation of the Indiana portion of the Chicago area to cover an
additional ten years beyond the initial 10-year maintenance period.
Thus, EPA finds that the maintenance plan SIP revision submitted by
IDEM for the Indiana portion of the Chicago area meets the requirements
of section 175A of the CAA and EPA proposes to approve it as a revision
to the Indiana SIP.

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

A. Motor Vehicle Emission Budgets

    Under section 176(c) of the CAA, new transportation plans, programs
or projects that receive Federal funding or support, such as the
construction of new highways, must ``conform'' to (i.e., be consistent
with) the SIP. Conformity to the SIP means that transportation
activities will not cause or contribute to any new air quality
violations, increase the frequency or severity of any existing air
quality problems, or delay timely attainment or any required interim
emissions reductions or any other milestones. Regulations at 40 CFR
part 93 set forth EPA policy, criteria, and procedures for
demonstrating and assuring conformity of transportation activities to a
SIP. Transportation conformity is a requirement for nonattainment and
maintenance areas. Maintenance areas are areas that were previously
nonattainment for a particular NAAQS, but that have been redesignated
to attainment with an approved CAA section 175A maintenance plan for
the NAAQS.
    Under the CAA, states are required to submit, at various times,
control strategy SIPs for nonattainment areas and maintenance plans for
areas seeking redesignations to attainment of the ozone standard and
maintenance areas. See the SIP requirements for the 2015 ozone NAAQS in
EPA's December 6, 2018, implementation rule (83 FR 62998). These
control strategy SIPs (including reasonable further progress plans and
attainment plans) and maintenance plans must include motor vehicle
emissions budgets (or budgets) for criteria pollutants, including ozone
and their precursor pollutants (VOC and NOX) to address
pollution from on-road transportation sources. The budgets are the
portion of the total allowable emissions that are allocated to highway
and transit vehicle use that, together with emissions from other
sources in the area, will provide for attainment or maintenance. See 40
CFR 93.101.
    Under 40 CFR part 93, a budget for an area seeking a redesignation
to attainment must be established, at minimum, for the last year of the
maintenance plan. A state may adopt budgets for other years as well.
The budgets serves as a ceiling on emissions from an area's planned
transportation system. The budget concept is further explained in the
preamble to the November 24, 1993, Transportation Conformity Rule (58
FR 62188). The preamble also describes how to establish the budget(s)
in the SIP and how to revise the budget(s), if needed,

subsequent to initially establishing a budget(s) in the SIP.
    Indiana's maintenance plan includes NOX and VOC motor
vehicle emissions budgets for the Indiana portion of the Chicago area
for 2030 and 2035, the last year of the maintenance period and an
interim year. The budgets were developed as part of an interagency
consultation process which includes Federal, state, and local agencies.
The budgets were clearly identified and precisely quantified. These
budgets, when considered together with all other emissions sources, are
consistent with maintenance of the 2008 ozone NAAQS.

 Table 6--Motor Vehicle Emissions Budgets for the Indiana Portion of the
                Chicago Area 2008 Ozone Maintenance Plan
                               [Tons/day]
------------------------------------------------------------------------
                Pollutant                   2030 Budget     2035 Budget
------------------------------------------------------------------------
NOX.....................................            6.62            5.51
VOC.....................................            3.77            2.93
------------------------------------------------------------------------

    EPA is proposing to approve the budgets for use to determine
transportation conformity in the Indiana portion of the Chicago area,
because EPA has determined that the area can maintain attainment of the
2008 ozone NAAQS for the relevant maintenance period with onroad mobile
source emissions at the levels of the budgets.
    Also, EPA is reviewing the budgets to determine if the submitted
budgets meet the adequacy criteria in the transportation conformity
regulations (40 CFR 93.118(e)(4)). Additionally, as required by the
transportation conformity rule (40 CFR 93.118(f)(2)), EPA is using this
proposal to notify the public that EPA that it is beginning a 30-day
comment period on the adequacy of the submitted motor vehicle emissions
budgets. Comments on the adequacy of the budgets should be submitted to
the docket for this proposal. EPA will make a final determination on
the adequacy of the submitted budgets either in a final action on this
proposal or notifying the State in writing, notifying the public by
publishing a Federal Register notice and announcing the determination
on EPA's adequacy web page.\6\
---------------------------------------------------------------------------

    \6\ See www.epa.gov/state-and-local-transportation/adequacy-review-state-implementation-plan-sip-submissions-conformity.
---------------------------------------------------------------------------

B. What is a safety margin?

    A ``safety margin'' is the difference between the attainment level
of emissions (from all sources) and the projected level of emissions
(from all sources) in the maintenance plan. As noted in Tables 4 and 5
above, the emissions in the Indiana portion of the Chicago area are
projected to have safety margins of 16.65 tons/day for NOX
and 3.93 tons/day for VOC in 2035 (the difference between the
attainment year, 2019, emissions and the projected 2035 emissions for
all sources in the Indiana portion of the Chicago area). Similarly,
there is a safety margin of 13.47 tons/day for NOX and 3.08
tons/day for VOC in 2030. Even if emissions exceeded projected levels
by the full amount of the safety margin, the counties would still
demonstrate maintenance since emission levels would equal those in the
attainment year.
    Indiana is not allocating any of the safety margin to the mobile
source sector. Indiana can request an allocation to the budgets of the
available safety margins reflected in the demonstration of maintenance
in a future SIP revision. The transportation conformity regulations
allow states to allocate all or a portion of a documented safety margin
to the motor vehicle emissions budgets for an area (40 CFR 93.124(a)).

VI. Section 182(f) NOX Exemption

    Section 182(f) establishes NOX emission control
requirements for ozone nonattainment areas. It provides that these
emission control requirements, however, do not apply to an area if the
Administrator determines that NOX emission reductions would
not contribute to attainment of the ozone standard. EPA's January 2005
document, ``Guidance on Limiting Nitrogen Oxides Requirements Related
to 8-Hour Ozone Implementation,'' provides guidance for demonstrating
that further NOX reduction in an ozone nonattainment area
will not contribute to ozone attainment. The guidance provides that
three consecutive years of monitoring data showing attainment of the
standard without implementation of section 182(f) NOX
provisions is adequate to demonstrate that ``additional reductions of
oxides of nitrogen would not contribute to attainment . . . .'' CAA
section 182(f)(1)(A). As described in the guidance document, approval
of this type of NOX exemption is contingent on continued
monitored attainment of the standard.
    On January 18, 2022, Indiana submitted a request for a waiver from
the section 182(f) NOX requirements for the Indiana portion
of the Chicago area based on monitoring data for the years 2019-2021
showing attainment of the 2008 ozone standard in the area. Based on
these data, EPA is proposing to approve Indiana's request for an
exemption from the section 182(f) NOX requirements in the
Indiana portion of the Chicago area. Upon final approval of the
NOX waiver, Indiana will not be required to adopt and
implement NOX emission control regulations pursuant section
182(f) for the Indiana portion of the Chicago area to qualify for
redesignation. If the Chicago area violates before redesignation, then
EPA would not be able to finalize approval of a NOX waiver.

VII. VOC RACT in the Indiana Portion of the Chicago Area

    Sections 172(c)(1) and 182(b)(2) of the CAA require states to
implement RACT in ozone nonattainment areas classified as Moderate (and
higher). Specifically, these areas are required to implement RACT for
all major VOC emissions sources and for all sources covered by a
Control Techniques Guideline (CTG). The major source threshold for
serious nonattainment ozone areas is a potential to emit (PTE) 50 tons
per year (TPY). A CTG is a document issued by EPA which establishes a
``presumptive norm'' for RACT for a specific VOC source category.
States must submit rules, or negative declarations when no such sources
exist for CTG source categories.
    EPA's final rule to implement the 2008 ozone NAAQS (SIP
Requirements Rule) indicates that states may meet RACT through the
establishment of new or more stringent requirements that meet RACT
control levels, through a certification that previously adopted RACT
controls in their SIPs approved by EPA for a prior ozone NAAQS also
represent adequate RACT control levels for attainment of the 2008 ozone
NAAQS, or with a combination of these two approaches (80 FR 12264). In
addition, a state may submit a negative declaration in instances where
there are no CTG covered sources.
    Indiana's VOC RACT demonstration under the Moderate classification
was fully approved into the SIP by EPA on February 13, 2019, effective
March 15, 2019 (84 FR 3711). Indiana certifies that the Indiana portion
of the Chicago area's moderate area VOC RACT program also satisfies
Serious area VOC RACT requirements.
    Indiana certifies that the existing VOC rules contained in 326
Indiana Administrative Code (IAC) Article 8 satisfy the Serious area
VOC RACT requirements for the Indiana portion of the Chicago area under
the 2008 8-hour ozone NAAQS. The Serious major source threshold of 50
tons per year is addressed for non-CTG sources in 326 IAC 8-7.
    Indiana certifies that the negative declaration for the CTGs for
Fiberglass

Boat Manufacturing Materials, submitted June 5, 2009, and approved by
EPA on February 24, 2010, is still up to date (75 FR 8246). Indiana
certifies that the negative declaration for the CTGs for the Oil and
Natural Gas Industry submitted October 25, 2018, and approved by EPA on
December 13, 2019, is still up to date (84 FR 68050). Therefore, EPA is
proposing to find that Indiana's submittal has met VOC RACT
requirements for its portion of the Chicago area for the 2008 ozone
NAAQS.

VIII. Clean Fuels Vehicles Program (CFVP)

    CAA section 182(c)(4) requires states with ozone nonattainment
areas classified as Serious or higher to submit a SIP revision request
describing implementation of a CFVP, as described in CAA title II part
C (40 CFR 88). EPA approved Indiana's CFVP on March 21, 1996 (61 FR
11552). CAA section 182(c)(4) included numerical standards for the CFVP
that were intended to encourage innovation and reduce emissions for
fleets of motor vehicles in certain nonattainment areas as compared to
conventionally fueled vehicles available at the time. As originally
adopted, those Clean Fuel Fleet standards were substantially more
stringent than the standards that applied to vehicles and engines
generally. Now that EPA has begun implementing Tier 3 emission
standards in 40 CFR part 86, subpart S, the Clean Fuel Fleet standards
are either less stringent than or equivalent to the standards that
apply to vehicles and engines generally. On July 29, 2021 (86 FR
34308), EPA published a final rule in which EPA determined that
vehicles and engines certified to current emission standards under 40
CFR part 86 or 1036 are deemed to also meet the Clean Fuel Fleet
standards as Ultra Low-Emission Vehicles.

IX. Enhanced Monitoring of Ozone and Ozone Precursors (EMP)

    Section 182(c)(1) of the CAA requires states with nonattainment
areas classified as Serious or higher to adopt and implement a program
to improve air monitoring for ambient concentrations of ozone,
NOX and VOC. EPA initiated the PAMS program in February
1993. See 40 CFR part 58, appendix D. The PAMS program required the
establishment of an enhanced monitoring network in all ozone
nonattainment areas classified as Serious, Severe, or Extreme. On March
16, 1994 (59 FR 12168), EPA approved Indiana's SIP submission
establishing an enhanced monitoring program in the Indiana portion of
the Chicago area as required by Section 182(c)(1) of the CAA.
    Since that time, EPA has concluded that requiring enhanced
monitoring for ozone nonattainment areas classified as Moderate or
above is appropriate for the purposes of monitoring ambient air quality
and better understanding ozone pollution. In EPA's revision to the
ozone standard on October 1, 2015, EPA relied on the authority provided
in sections 103(c), 110(a)(2)(B), 114(a) and 301(a)(1) of the CAA to
expand the PAMS applicability to areas other than those that are
Serious or above ozone nonattainment and substantially to revise the
PAMS requirements in 40 CFR part 58, appendix D (80 FR 65292).
Specifically, this rule required states with Moderate and above ozone
nonattainment areas to develop and implement an EMP. These plans should
detail enhanced ozone and ozone precursor monitoring activities to be
performed to better understand area-specific ozone issues.
    Indiana will continue to meet its CAA section 182(c)(1) EMP
requirements by maintaining an air monitoring network in the Indiana
portion of the Chicago area and working with EPA through the air
monitoring network review process, as required by 40 CFR part 58, to
determine the adequacy of the ozone monitoring network, additional
monitoring needs, and recommended monitor decommissions. Air monitoring
data from these monitors will continue to be quality assured, reported,
and certified according to 40 CFR part 58.
    Therefore, EPA is proposing to find that Indiana has met the EMP
requirements of Section 182(c)(1) for the Indiana portion of the
Chicago area for the 2008 ozone NAAQS.

X. Enhanced I/M in the Indiana Portion of the Chicago Area

    CAA section 182(c)(3) requires states with ozone nonattainment
areas classified as Serious or higher to implement an Enhanced vehicle
I/M program. The general purpose of motor vehicle I/M programs is to
reduce emissions from in-use motor vehicles in need of repairs and
thereby contribute to state and local efforts to improve air quality
and to attain the NAAQS.
    The 1990 CAA Amendments set additional requirements for I/M
programs. For Moderate areas, a ``Basic'' program is required under
section 182(b)(4). For Serious or worse areas, an ``Enhanced'' program
is required under section 182(c)(3). EPA's requirements for Basic and
Enhanced I/M programs are found in 40 CFR part 51, subpart S.
    On June 6, 1995, and on September 28, 1995, IDEM submitted SIP
revisions establishing an Enhanced I/M program in accordance with the
requirements of the CAA as amended in 1990. The new Enhanced I/M
program replaced the Basic I/M program in operation at the time in
Lake, Porter, Clark, and Floyd counties. EPA fully approved Indiana's
Enhanced I/M program on March 19, 1996 (61 FR 11149), including the
program's legal authority and administrative requirements in 326
Indiana Administrative Code 13-1.1. On June 8, 2000, Indiana submitted
amendments to the I/M rule incorporating, among other things,
provisions for the testing of vehicles equipped with second generation
on-board diagnostics systems (OBD). EPA approved those provisions on
September 27, 2001 (66 FR 49297).
    To support their certification of Indiana's Enhanced I/M program,
the NIRPC, on behalf of IDEM, performed a modeling demonstration that
the current I/M program meets the requirements of EPA's Enhanced
performance standard for areas designated and classified under the 8-
hour ozone standard, as specified in 40 CFR 51.351(i). NIRPC used EPA's
MOVES emissions model in making this demonstration. The demonstration
involves a comparison of emission reductions from EPA's model program
specified in 40 CFR 51.351(i) and Indiana's actual program in Lake and
Porter Counties.
    To demonstrate that an Enhanced I/M program meets the performance
standard, the actual I/M program must obtain the same or lower emission
levels as the model EPA program within 0.02 gram per mile.
Indiana's I/M performance standard analysis shows that Indiana's I/M
program achieves emission reductions that are at least as great as this
criterion. Indiana's demonstration supports its certification that its
current I/M program in Lake and Porter counties meets the applicable
Enhanced I/M performance standard requirements in 40 CFR part 51,
subpart S for the 2008 ozone NAAQS.

XI. Proposed Actions

    EPA is proposing to determine that the Chicago area is attaining
the 2008 ozone NAAQS, based on quality-assured and certified monitoring
data for 2019-2021. EPA is proposing to approve Indiana's January 18,
2022, NOX exemption request as meeting section 182(f)
requirements of the CAA. EPA is proposing to determine that if and when
EPA approves Indiana's NOX exemption request, VOC RACT, EMP,
CFVP, and Enhanced I/M program SIP submittals, the Indiana portion of
the Chicago area

will have met the requirements for redesignation under section
107(d)(3)(E) of the CAA. EPA is thus proposing to change the legal
designation of the Indiana portion of the Chicago-Naperville, IL-IN-WI
area from nonattainment to attainment for the 2008 ozone NAAQS. EPA is
also proposing to approve, as a revision to the Indiana SIP, the
state's maintenance plan for the area. The maintenance plan is designed
to keep the Indiana portion of the Chicago area in attainment of the
2008 ozone NAAQS through 2035. EPA finds adequate and is proposing to
approve the newly established 2030 and 2035 motor vehicle emissions
budgets for the Indiana portion of the Chicago area. Finally, EPA is
proposing to approve the VOC RACT, CFVP, EMP, and Enhanced I/M program
SIP revisions included in Indiana's December 29, 2020, and January 18,
2022, submittals, because they satisfy the Serious requirements of the
CAA for the Indiana portion of the Chicago area.

XII. Statutory and Executive Order Reviews

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

List of Subjects

40 CFR Part 52

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

40 CFR Part 81

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

    Dated: February 22, 2022.
Debra Shore,
Regional Administrator, Region 5.
[FR Doc. 2022-04072 Filed 3-2-22; 8:45 am]
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