[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Proposed Rules]
[Pages 95081-95097]
[FR Doc No: 2016-31044]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R05-OAR-2016-0135; FRL-9957-18-Region 5]

Air Plan Approval; Indiana; Redesignation of the Indiana Portion
of the Cincinnati, Ohio-Kentucky-Indiana Area to Attainment of the 2008
Ozone Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to find
that the Cincinnati, Ohio-Kentucky-Indiana area is attaining the 2008
ozone National Ambient Air Quality Standard (NAAQS or standard) and to
approve a request from the Indiana Department of Environmental
Management (IDEM) to redesignate the Indiana portion of the Cincinnati
area to attainment for the 2008 ozone NAAQS because the request meets
the statutory requirements for redesignation under the Clean Air Act
(CAA or Act). The Cincinnati area includes Lawrenceburg Township in
Dearborn County, Indiana; Butler, Clermont, Clinton, Hamilton, and
Warren Counties in Ohio; and, Boone, Campbell, and Kenton Counties in
Kentucky. IDEM submitted this request on February 23, 2016, and
supplemented that submittal with a revised emissions inventory on May
4, 2016. EPA is also proposing to approve, as a revision to the Indiana
State Implementation Plan (SIP), the state's plan for maintaining the
2008 ozone standard through 2030 in the Cincinnati area. Additionally,
EPA finds adequate and is proposing to approve the state's 2020 and
2030 volatile organic compound (VOC) and oxides of nitrogen
(NOX) Motor Vehicle Emission Budgets (MVEBs) for the Indiana
and Ohio portion of the Cincinnati area. Finally, EPA is proposing to
approve the 2011 base year emissions inventory submitted by IDEM as
meeting the base year emissions inventory requirement of the CAA for
the Indiana portion of the Cincinnati area.

DATES: Comments must be received on or before January 26, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2016-0135 at http://www.regulations.gov or via email to
<EMAIL_ADDRESS>For comments submitted at Regulations.gov,
follow the online instructions for submitting comments. Once submitted,
comments cannot be edited or removed from Regulations.gov. For either
manner of submission, EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e. on the web, cloud, or other file sharing
system). For additional submission methods, please contact the person
identified in the FOR FURTHER INFORMATION CONTACT section. For the full
EPA public comment policy, information about CBI or multimedia
submissions, and general guidance on making effective comments, please
visit

http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Eric Svingen, Environmental Engineer,
Attainment Planning and Maintenance Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson
Boulevard, Chicago, Illinois 60604,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA. This SUPPLEMENTARY INFORMATION
section is arranged as follows:

I. What are the actions EPA is 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?
    A. Has the Cincinnati area attained the 2008 ozone NAAQS?
    B. Has Indiana met all applicable requirements of section 110
and part D of the CAA for the Cincinnati area, and does the Indiana
portion of the area have a fully approved SIP under section 110(k)
of the CAA?
    1. Indiana Has Met All Applicable Requirements of Section 110
and Part D of the CAA Applicable to the Indiana Portion of the
Cincinnati Area for Purposes of Redesignation
    2. The Indiana Portion of the Cincinnati Area Has a Fully
Approved SIP for Purposes of Redesignation Under Section 110(k) of
the CAA
    C. Are the air quality improvements in the Cincinnati area due
to permanent and enforceable emission reductions?
    1. Permanent and Enforceable Emission Controls Implemented
    2. Emission Reductions
    3. Meteorology
    D. Does Indiana have a fully approvable ozone maintenance plan
for the Cincinnati area?
    1. Attainment Inventory
    2. Has the state documented maintenance of the ozone standard in
the Cincinnati area?
    3. Continued Air Quality Monitoring
    4. Verification of Continued Attainment
    5. What is the contingency plan for the Cincinnati area?
V. Has the state adopted approvable motor vehicle emission budgets?
    A. Motor Vehicle Emission Budgets
    B. What is the status of EPA's adequacy determination for the
proposed VOC and NOX MVEBs for the Cincinnati area?
    C. What is a safety margin?
VI. Has the state submitted approvable emission inventories?
    A. The 2008 Ozone NAAQS and Emission Inventory Requirements
    B. Indiana's Emission Inventories
    C. EPA's Evaluation
    1. Did the state adequately document the derivation of the
emission estimates?
    2. Did the state quality assure the emission estimates?
    3. Did the state provide for public review of the requested SIP
revision?
VII. Proposed Actions
VIII. Statutory and Executive Order Reviews

I. What are the actions EPA is proposing?

    EPA is proposing to take several related actions. EPA is proposing
to determine that the Cincinnati nonattainment area is attaining the
2008 ozone standard, based on quality-assured and certified monitoring
data for 2013-2015 and that the Indiana portion of this area has met
the requirements for redesignation under section 107(d)(3)(E) of the
CAA. EPA is thus proposing to approve IDEM's request to change the
legal designation of the Indiana portion of the Cincinnati area from
nonattainment to attainment for the 2008 ozone standard. 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 Cincinnati area in attainment of the 2008 ozone
NAAQS through 2030. Finally, EPA finds adequate and is proposing to
approve the newly-established 2020 and 2030 MVEBs for the Indiana and
Ohio portion of the Cincinnati area. The adequacy comment period for
the MVEBs began on July 22, 2016, with EPA's posting of the
availability of the submittal on EPA's Adequacy Web site (at http://www.epa.gov/otaq/stateresources/transconf/adequacy.htm). The adequacy
comment period for these MVEBs ended on August 22, 2016. EPA did not
receive any requests for this submittal, or adverse comments on this
submittal during the adequacy comment period. In a letter dated August
23, 2016, EPA informed IDEM that we found the 2020 and 2030 MVEBs to be
adequate for use in transportation conformity analyses. On September
27, 2016 (81 FR 66271), EPA published a notice of adequacy announcing
this same finding. Please see section V.B. of this preamble, ``What is
the status of EPA's adequacy determination for the proposed VOC and
NOX MVEBs for the Indiana portion of the Cincinnati area,''
for further explanation of this process. Therefore, we find adequate,
and are proposing to approve, the States' 2020 and 2030 MVEBs for
transportation conformity purposes.
    On June 1, 2016, Indiana submitted a separate SIP revision to
address emissions statements requirements, as discussed in section
IV.B.1. of this preamble. EPA is taking action on the emissions
statements SIP revision in a separate rulemaking. EPA will not finalize
this redesignation rulemaking without an earlier or simultaneous final
approval of the separate emissions statements rulemaking.

II. What is the background for these actions?

    EPA has determined that ground-level ozone is detrimental to human
health. On March 12, 2008, EPA promulgated a revised 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 three-year average of the annual fourth highest
daily maximum 8-hour average concentration is equal to or less than
0.075 ppm, when truncated after the thousandth decimal place, at all of
the ozone monitoring sites in the area. See 40 CFR 50.15 and appendix P
to 40 CFR part 50.
    Upon promulgation of a new or revised NAAQS, section 107(d)(1)(B)
of the CAA requires EPA to designate as nonattainment any areas that
are violating the NAAQS, based on the most recent three years of
quality-assured ozone monitoring data. The Cincinnati area was
designated as a marginal nonattainment area for the 2008 ozone NAAQS on
May 21, 2012 (77 FR 30088) (effective July 20, 2012).
    In a final implementation rule for the 2008 ozone NAAQS (SIP
Requirements Rule),\1\ EPA established ozone standard attainment dates
based on table 1 of section 181(a) of the CAA. This established an
attainment date three years after the July 20, 2012, effective
designation date for areas classified as marginal nonattainment for the
2008 ozone NAAQS. Therefore, the attainment date for the Cincinnati
area was July 20, 2015. On May 4, 2016 (81 FR 26697), in accordance
with section 181(b)(2)(A) of the CAA and the provisions of the SIP
Requirements Rule (40 CFR 51.1103), EPA made a determination that the
Cincinnati area attained the standard by its July 20, 2015, attainment
date for the 2008 ozone NAAQS. EPA's determination was based upon three
years of complete,

quality-assured and certified data for the 2012-2014 period.
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    \1\ This rule, titled ``Implementation of the 2008 National
Ambient Air Quality Standards for Ozone: State Implementation Plan
Requirements'' and published at 80 FR 12264 (March 6, 2015),
addresses nonattainment area SIP requirements for the 2008 ozone
NAAQS, including requirements pertaining to attainment
demonstrations, reasonable further progress (RFP), reasonably
available control technology (RACT), reasonably available control
measures (RACM), new source review (NSR), emission inventories, and
the timing requirements for SIP submissions and compliance with
emission control measures in the SIP. This rule also addresses the
revocation of the 1997 ozone NAAQS and the anti-backsliding
requirements that apply when the 1997 ozone NAAQS is revoked.
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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) 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 Cincinnati area attained the 2008 ozone NAAQS?

    For redesignation of a nonattainment area to attainment, the CAA
requires EPA to determine that the 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
three-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
three-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% of the days within the
ozone monitoring seasons,\2\ on average, for the three-year period,
with a minimum data completeness of 75% during the ozone monitoring
season of any year during the three-year period. See section 2.3 of
appendix P to 40 CFR part 50.
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    \2\ The ozone season is defined by state in 40 CFR 58 appendix
D. For the 2012-2014 and 2013-2015 periods, the ozone seasons for
Ohio, Indiana, and Kentucky were April-October, April-September, and
March-October, respectively. Beginning in 2016, the ozone seasons
for Ohio, Indiana and Kentucky are March-October. See, 80 FR 65292,
65466-67 (October 26, 2015).
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    On May 4, 2016, in accordance with section 181(b)(2)(A) of the CAA
and the provisions of the SIP Requirements Rule (40 CFR 51.1103), EPA
made a determination that the Cincinnati area attained the standard by
its July 20, 2015, attainment date for the 2008 ozone NAAQS. This
determination was based upon three years of complete, quality-assured
and certified data for the 2012-2014 period. In addition, EPA has
reviewed the available ozone monitoring data from monitoring sites in
the Cincinnati area for the 2013-2015 period. These data have been
quality-assured, are recorded in the AQS, and have been certified.
These data demonstrate that the Cincinnati area is attaining the 2008
ozone NAAQS. The annual fourth-highest 8-hour ozone concentrations and
the three-year average of these concentrations (monitoring site ozone
design values) for each monitoring site are summarized in Table 1.

 Table 1--Annual 4th High Daily Maximum 8-Hour Ozone Concentrations and Three-Year Average of the 4th High Daily Maximum 8-Hour Ozone Concentrations for
                                                                   the Cincinnati Area
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                                                                                2013 4th      2014 4th      2015 4th       2013-2015
                   State                                 County                  Monitor        high  (ppm)   high  (ppm)   high  (ppm)   average  (ppm)
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Ohio.......................................  Butler.......................        39-017-0004        0.068         0.070         0.070            0.069
                                                                                39-017-0018        0.068         0.069         0.070            0.069
                                                                                39-017-9991        0.069         0.069         0.068            0.068
                                             Clermont.....................        39-025-0022        0.066         0.068         0.070            0.068

                                             Clinton......................        39-027-1002        0.064         0.070         0.070            0.068
                                                                                39-061-0006        0.069         0.070         0.072            0.070
                                             Hamilton.....................        39-061-0010        0.064         0.073         0.070            0.069
                                                                                39-061-0040        0.069         0.069         0.071            0.069
                                             Warren.......................        39-165-0007        0.067         0.071         0.071            0.069
Kentucky...................................  Boone........................        21-015-0003        0.059         0.062         0.062            0.061
                                             Campbell.....................        21-037-3002        0.072         0.071         0.071            0.071
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    The three-year ozone design value for 2013-2015 is 0.071 ppm,\3\
which meets the 2008 ozone NAAQS. Therefore, in this action, EPA
proposes to determine that the Cincinnati area is attaining the 2008
ozone NAAQS.
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    \3\ The monitor ozone design value for the monitor with the
highest three-year averaged concentration.
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    EPA will not take final action to determine that the Cincinnati
area is attaining the NAAQS nor to approve the redesignation of this
area if the design value of a monitoring site in the area exceeds the
NAAQS after proposal but prior to final approval of the redesignation.
Preliminary 2016 data indicate that this area continues to attain the
2008 ozone NAAQS. As discussed in section IV.D.3. of this preamble,
IDEM has committed to continue monitoring ozone in this area to verify
maintenance of the ozone standard.

B. Has Indiana met all applicable requirements of section 110 and part
D of the CAA for the Cincinnati area, and does the Indiana portion of
the area have a fully approved SIP 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). We are proposing to determine
that Indiana has met all currently applicable SIP requirements for
purposes of redesignation of the Cincinnati area to attainment of the
2008 ozone standard under section 110 and part D of the CAA, in
accordance with section 107(d)(3)(E)(v). We are also proposing to
determine that the Indiana SIP, with the exception of the comprehensive
emissions inventory and emissions statements rules, is fully approved
with respect to all applicable requirements for purposes of
redesignation to attainment of the 2008 ozone standard, in accordance
with section 107(d)(3)(E)(ii) of the CAA. As discussed below, in this
action EPA is proposing to approve Indiana's 2011 comprehensive
emissions inventory as meeting the comprehensive emissions inventory
requirement of section 182(a)(1) for the area. EPA is taking action on
the Indiana emissions statements rules required by section 182(a)(3)(B)
in a separate rule.
    Recognizing that the comprehensive emissions inventory and
emissions statements rules must be approved on or before the date we
complete final rulemaking approving the redesignation requests, we
determine here that, assuming that this occurs, Indiana will have met
all applicable section 110 and part D SIP requirements of the CAA for
purposes of approval of Indiana's ozone redesignation request for the
Cincinnati area and will have a fully approved SIP under section 110(k)
of the CAA. In making these proposed determinations, EPA ascertained
which CAA requirements are applicable to the Cincinnati area and the
Indiana SIP and, 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).
1. Indiana Has Met All Applicable Requirements of Section 110 and Part
D of the CAA Applicable to the Indiana Portion of the Cincinnati 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.\4\ However, like
many of the 110(a)(2) requirements, the section 110(a)(2)(D) SIP
requirements are not linked with a particular area's ozone designation
and classification. EPA concludes that the SIP requirements linked with
the area's ozone designation and classification are the relevant
measures to evaluate when reviewing a redesignation request for the
area. The section 110(a)(2)(D) requirements, where applicable, continue
to apply to a state regardless of the designation of any one particular
area within the state. Thus, we believe these requirements are not
applicable requirements for purposes of redesignation. See 65 FR 37890
(June 19, 2000), 68 FR 25418, 25426-27 (May 12, 2003).
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    \4\ On October 27, 1992 (63 FR 57356), EPA issued a
NOX SIP call requiring the District of Columbia and 22
states to reduce emissions of NOX in order to reduce the
transport of ozone and ozone precursors. In compliance with EPA's
NOX SIP call, Indiana developed rules governing the
control of NOX emissions from Electric Generating Units
(EGUs), major non-EGU industrial boilers and turbines, and major
cement kilns. EPA approved Indiana's rules as fulfilling Phase I of
the NOX SIP Call on November 8, 2001 (66 FR 56465), and
as meeting Phase II of the NOX SIP Call on October 1,
2007 (72 FR 55664).
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    In addition, EPA believes that other section 110 elements that are
neither connected with nonattainment plan submissions nor linked with
an area's ozone attainment status are not applicable requirements for
purposes of redesignation. The area will still be subject to these
requirements after the area is redesignated to attainment of the 2008
ozone NAAQS. The section 110 and part D requirements which are linked
with a particular area's designation and classification are the
relevant measures to evaluate in reviewing a redesignation request.
This approach is consistent with EPA's existing policy on applicability
(i.e., for redesignations) of conformity and oxygenated fuels
requirements, as well as with section 184 ozone transport requirements.
See Reading, Pennsylvania proposed and final rulemakings, 61 FR 53174-
53176 (October 10, 1996) and 62 FR 24826 (May 7, 1997); Cleveland-
Akron-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. On
April 29, 2015 (80 FR 23713), EPA approved elements of the SIP
submitted by Indiana to meet the requirements of section 110 for the
2008 ozone standard. The requirements of section 110(a)(2), however,
are statewide requirements that are not linked to the ozone
nonattainment status of the Cincinnati area. Therefore, EPA concludes
that these infrastructure requirements are not applicable requirements
for purposes of review of the state's ozone redesignation request.
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 Cincinnati area was classified as marginal under subpart 2 for
the 2008 ozone NAAQS. As such, the area is subject to the subpart 1
requirements contained in section 172(c) and section 176. Similarly,
the area is subject to the subpart 2 requirements contained in section
182(a) (marginal 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
    As provided in subpart 2, for marginal ozone nonattainment areas
such as the Cincinnati area, the specific requirements of section
182(a) apply in lieu of the attainment planning requirements that would
otherwise apply under section 172(c), including the attainment
demonstration and reasonably available control measures (RACM) under
section 172(c)(1), reasonable further progress (RFP) under section
172(c)(2), and contingency measures under section 172(c)(9). 42 U.S.C.
7511a(a).
    Section 172(c)(3) requires submission and approval of a
comprehensive, accurate and current inventory of actual emissions. This
requirement is 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 approved Indiana's NSR program
on October 7, 1994 (59 FR 51108), and approved revisions to Indiana's
NSR program on June 18, 2007 (72 FR 33395), July 8, 2011 (76 FR 40242),
and July 2, 2014 (79 FR 37646). Nonetheless, EPA has determined that,
since PSD requirements will apply after redesignation, areas being
redesignated need not comply with the requirement that a NSR program be
approved prior to redesignation, provided that the area demonstrates
maintenance of the 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
Cincinnati area will be able to maintain the standard 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 Cincinnati
area upon redesignation to attainment. EPA conditionally approved
Indiana's PSD program on March 3, 2003 (68 FR 9892), fully approved
Indiana's PSD program on May 20, 2004 (69 FR 29071), and approved
revisions to Indiana's PSD program on July 8, 2011 (76 FR 40242),
September 28, 2011 (76 FR 59899), and July 2, 2014 (79 FR 37646).
    Section 172(c)(6) requires the SIP to contain control measures
necessary to provide for attainment of the NAAQS. 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.
ii. Section 176 Conformity Requirements
    Section 176(c) of the CAA requires states to establish criteria and
procedures to ensure that Federally supported or funded projects
conform to the air quality planning goals in the applicable SIP. The
requirement to determine conformity applies to transportation plans,
programs and projects that are developed, funded or approved under
title 23 of the United States Code (U.S.C.) and the Federal Transit Act
(transportation conformity) as well as to all other Federally supported
or funded projects (general conformity). State transportation
conformity SIP revisions must be consistent with Federal conformity
regulations relating to consultation, enforcement and enforceability
that EPA promulgated pursuant to its authority under the CAA.
    EPA interprets the conformity SIP requirements \5\ 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 Cincinnati area. See 80 FR 11133 (March
2, 2015).
---------------------------------------------------------------------------

    \5\ CAA section 176(c)(4)(E) requires states to submit revisions
to their SIPs to reflect certain Federal criteria and procedures for
determining transportation conformity. Transportation conformity
SIPs are different from SIPs requiring the development of Motor
Vehicle Emission Budgets (MVEBs), such as control strategy SIPs and
maintenance plans.
---------------------------------------------------------------------------

iii. Section 182(a) 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. As part of Indiana's redesignation request for the
Cincinnati area, the state submitted a 2011 base year emissions
inventory. As discussed in section VI. of this preamble, EPA is
proposing to approve the 2011 base year inventory that Indiana
submitted with the redesignation request as meeting the section
182(a)(1) emissions inventory requirement.
    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 reasonably available control technology
(RACT) rules that were required under section 172(b)(3) prior to the
1990 CAA amendments. The Indiana portion of the Cincinnati area is not
subject to the section 182(a)(2) RACT ``fix up'' requirement for the
2008 ozone NAAQS because it was not subject to RACT prior to the
enactment of the 1990 CAA amendments.
    Section 182(a)(2)(B) requires each state with a marginal ozone
nonattainment area that implemented or was required to implement a
vehicle inspection and maintenance (I/M) program prior to the 1990 CAA
amendments to submit a SIP revision for an I/M program no less
stringent than that required prior to the 1990 CAA amendments or
already in the SIP at the time of the CAA amendments, whichever is more
stringent. For the purposes of the 2008 ozone standard and the
consideration of Indiana's redesignation request for this standard, the
Indiana portion of the Cincinnati area is not subject to the section
182(a)(2)(B) requirement because it was not designated as nonattainment
for any ozone standard prior to the enactment of the 1990 CAA
amendments and did not have an I/M program before 1990.
    Regarding the source permitting and offset requirements of section
182(a)(2)(C) and section 182(a)(4), Indiana currently has a fully-
approved part D NSR program in place. EPA conditionally approved
Indiana's PSD program on March 3, 2003 (68 FR 9892), fully approved
Indiana's PSD program on May 20, 2004 (69 FR 29071), and approved
revisions to Indiana's PSD program on July 8, 2011 (76 FR 40242),
September 28, 2011 (76 FR 59899), and July 2, 2014 (79 FR 37646). As
discussed above, Indiana has demonstrated that the Cincinnati area will
be able to maintain the standard 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. The
state's PSD program will become effective in the Cincinnati area upon
redesignation to attainment.
    Section 182(a)(3)(A) requires states to submit periodic emission
inventories and section 182(a)(3)(B) requires states to submit a
revision to the SIP to require the owners or operators of stationary
sources to annually submit emissions statements documenting actual VOC
and NOX emissions. As discussed in section IV.D.4. of this
preamble, Indiana will continue to update its emissions inventory at
least once every three years. With regard to stationary source
emissions statements, Indiana submitted a SIP revision to address these
requirements on June 1, 2016. EPA is taking action on this revision in
a separate rulemaking action. Full approval of Indiana's emissions
statements rules is a prerequisite for approval of the redesignation of
the Cincinnati area to attainment.
    Upon approval of Indiana's emissions inventory and emissions
statements rules, the Indiana portion of the Cincinnati area will have
satisfied 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 Cincinnati Area Has a Fully Approved SIP
for Purposes of Redesignation Under Section 110(k) of the CAA
    Indiana has adopted and submitted and EPA has approved at various
times, provisions addressing the various SIP elements applicable for
the ozone NAAQS. In this action, EPA is proposing to approve Indiana's
2011 comprehensive emissions inventory for the Cincinnati area as
meeting the requirement of section 182(a)(1) of the CAA. In a separate
rule, EPA will take action on the Indiana emissions statements rules
submittal. As discussed above, if EPA issues a final approval of the
comprehensive emissions inventory and Indiana's emissions statements
rules submittals, EPA will have fully approved the Indiana SIP for the
Cincinnati area under section 110(k) of the CAA for all requirements
applicable for purposes of redesignation. EPA may rely on prior SIP
approvals in approving a redesignation request (see 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 Cincinnati area due to
permanent and enforceable emission reductions?

    To support the redesignation of 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 other permanent and enforceable emission reductions. EPA
has determined that Indiana has demonstrated that that the observed
ozone air quality improvement in the Cincinnati 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 2014. The reduction in emissions and the
corresponding improvement in air quality over this period can be
attributed to a number of regulatory control measures that the
Cincinnati area and upwind areas have implemented in recent years. In
addition, IDEM provided an analysis to demonstrate the improvement in
air quality was not due to unusually favorable meteorology. Based on
the information summarized below, Indiana has adequately demonstrated
that the improvement in air quality is due to permanent and enforceable
emissions reductions.
1. Permanent and Enforceable Emission Controls Implemented
a. Regional NOX Controls
    Clean Air Interstate Rule (CAIR)/Cross State Air Pollution Rule
(CSAPR). CAIR created regional cap-and-trade programs to reduce sulfur
dioxide (SO2) and NOX emissions in 27 eastern
states, including Indiana, that contributed to downwind nonattainment
and maintenance of the 1997 ozone NAAQS and the 1997 fine particulate
matter (PM2.5) NAAQS. See 70 FR 25162 (May 12, 2005). EPA
approved Indiana's CAIR regulations into the Indiana SIP on October 22,
2007 (72 FR 59480) and November 29, 2010 (75 FR 72956). In 2008, the
United States Court of Appeals for the District of Columbia Circuit
(D.C. Circuit) initially vacated CAIR, North Carolina v. EPA, 531 F.3d
896 (D.C. Cir. 2008), but ultimately remanded the rule to EPA without
vacatur to preserve the environmental benefits provided by CAIR, North
Carolina v. EPA, 550 F.3d 1176, 1178 (D.C. Cir. 2008). On August 8,
2011 (76 FR 48208), acting on the D.C. Circuit's remand, EPA
promulgated CSAPR to replace CAIR and thus to address the interstate
transport of emissions contributing to nonattainment and interfering
with maintenance of the two air quality standards covered by CAIR as
well as the 2006 PM2.5 NAAQS. CSAPR requires substantial
reductions of SO2 and NOX emissions from electric
generating units (EGUs) in 28 states in the Eastern United States.
    The D.C. Circuit's initial vacatur of CSAPR \6\ was reversed by the
United States Supreme Court on April 29, 2014, and the case was
remanded to the D.C. Circuit to resolve remaining issues in accordance
with the high court's ruling. EPA v. EME Homer City Generation, L.P.,
134 S. Ct. 1584 (2014). On remand, the D.C. Circuit affirmed CSAPR in
most respects, but invalidated without vacating some of the CSAPR
budgets as to a number of states. EME Homer City Generation, L.P. v.
EPA, 795 F.3d 118 (D.C. Cir. 2015). This litigation ultimately delayed
implementation of CSAPR for three years, from January 1, 2012, when
CSAPR's cap-and-trade programs were originally scheduled to replace the
CAIR cap-and-trade programs, to January 1, 2015. Thus, the rule's Phase
2 budgets were originally promulgated to begin on January 1, 2014, and
are now scheduled to begin on January 1, 2017. On October 26, 2016 (81
FR 74504), EPA published the CSAPR Update for the 2008 ozone NAAQS,
which resolves the invalidation of Phase 2 budgets by the D.C. Circuit.
That action promulgates new NOX ozone season budgets
addressing interstate transport with respect to the 2008 ozone NAAQS
that take effect in 2017. The reduction in NOX emissions
from the implementation of CSAPR will result in lower concentrations of
transported ozone entering the Cincinnati area throughout the
maintenance period.
---------------------------------------------------------------------------

    \6\ EME Homer City Generation, L.P. v. EPA, 696 F.3d 7, 38 (D.C.
Cir. 2012).
---------------------------------------------------------------------------

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 2 Emission Standards for Vehicles and Gasoline Sulfur
Standards. On February 10, 2000 (65 FR 6698), EPA promulgated Tier 2
motor vehicle emission standards and gasoline sulfur control
requirements. These emission control requirements result in lower VOC
and NOX emissions from new cars and light duty trucks,
including sport utility vehicles. With respect to fuels, this rule
required refiners and importers of gasoline to meet lower standards for
sulfur in gasoline, which were phased in between 2004 and 2006. By
2006, refiners were required to meet a 30 ppm average sulfur level,
with a maximum cap of 80 ppm. This reduction in fuel sulfur content
ensures the effectiveness of low emission-control technologies. The
Tier 2 tailpipe standards established in this rule were phased in for
new vehicles between 2004 and 2009. EPA estimates that, when fully
implemented, this rule will cut NOX and VOC emissions from
light-duty vehicles and light-duty trucks by approximately 76% and 28%,
respectively. NOX and VOC reductions from medium-duty
passenger vehicles included as part of the Tier 2 vehicle program are
estimated to be approximately 37,000 and 9,500 tons per year,
respectively, when fully implemented. In addition, EPA estimates that
beginning in 2007, a reduction of 30,000 tons per year of
NOX will result from the benefits of sulfur control on
heavy-duty gasoline vehicles. 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.
    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 will be phased in between 2017 and 2025. Tier 3 sets
new tailpipe standards for the sum of VOC and NOX and for
particulate matter. The VOC and NOX tailpipe standards for
light-duty vehicles represent approximately an 80% reduction from
today's fleet average and a 70% reduction in per-vehicle particulate
matter (PM) standards. Heavy-duty tailpipe standards represent about a
60% 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% reduction from current
standards and apply to all light-duty and onroad gasoline-powered
heavy-duty vehicles. Finally, the rule lowers the sulfur content of
gasoline to an annual average of 10 ppm by January 2017. While these
reductions did not aid the area in attaining the standard, emission
reductions will occur during the maintenance period.
    Heavy-Duty Diesel Engine Rules. In July 2000, EPA issued a rule for
on-highway 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
rulemaking. Nationally, EPA estimated that 2015 NOX and VOC
emissions would decrease by 1,260,000 tons and 54,000 tons,
respectively. Nationally, EPA estimated that 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
onroad emission modeling for the Cincinnati 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.
    Nonroad Diesel Rule. On June 29, 2004 (69 FR 38958), EPA issued a
rule adopting emissions standards for nonroad diesel engines and sulfur
reductions in nonroad diesel fuel. This rule applies to diesel engines
used primarily in construction, agricultural, and industrial
applications. Emission standards are phased in for 2008 through 2015
model years based on engine size. The SO2 limits for nonroad
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 nonroad diesel engines by
approximately 90%. Some of these emission reductions occurred by the
attainment years and additional emission reductions will occur
throughout the maintenance period.
    Nonroad Spark-Ignition Engines and Recreational Engine Standards.
On November 8, 2002 (67 FR 68242), EPA adopted emission standards for
large spark-ignition engines such as those used in forklifts and
airport ground-service equipment; recreational vehicles such as off-
highway motorcycles, all-terrain vehicles, and snowmobiles; and
recreational marine diesel engines. These emission standards are phased
in from model year 2004 through 2012. When fully implemented, EPA
estimates an overall 72% reduction in VOC emissions from these engines
and an 80% reduction in NOX emissions. Some of these
emission reductions occurred by the attainment years and additional
emission reductions will occur throughout the maintenance period.
    National Emission Standards for Hazardous Air Pollutants (NESHAP)
for Reciprocating Internal Combustion Engines. On March 3, 2010 (75 FR
9648), EPA issued a rule to reduce hazardous air pollutants from
existing diesel powered stationary reciprocating internal combustion
engines, also known as compression ignition engines. Amendments to this
rule were finalized on January 14, 2013 (78 FR 6674). EPA estimated
that when this rule is fully implemented in 2013, NOX and
VOC emissions from these engines will be reduced by approximately 9,600
and 36,000 tons per year, respectively.
    Category 3 Marine Diesel Engine Standards. On April 30, 2010 (75 FR
22896) EPA issued emission standards for marine compression-ignition
engines at or above 30 liters per cylinder. Tier 2 emission standards
apply beginning in 2011, and are expected to result in a 15% to 25%
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% reduction in NOX from these engines.
Some of these emission reductions occurred by the attainment years and
additional emission reductions will occur throughout the maintenance
period.
c. Control Measures Specific to the Cincinnati Area
    Changes at several EGUs have resulted in reductions in
NOX emissions. Tanner's Creek Generating Station in Dearborn
County, Indiana permanently shut down in May 2015. Prior to the
shutdown, NOX emissions had dropped from 15.08 tons per
summer day (TPSD) in 2011 to 10.6 TPSD in 2014. The Walter C. Beckjord
facility in Clermont County, Ohio permanently shut down in October of
2014. Prior to the shutdown, NOX emissions from EGUs in
Clermont County dropped from 43.41 TPSD in 2011 to 41.17 TPSD in 2014,
partly attributable to the Walter C. Beckjord facility. Finally, Unit 3
(163 megawatts) of the Miami Fort facility in Hamilton County, Ohio
permanently shut down in June of 2015. Prior to shutdown,
NOX emissions from EGUs in Hamilton County dropped from
17.72 TPSD in 2011 to 17.46 TPSD in 2014, partly attributable to
reductions at unit 3 at Miami Fort.
2. Emission Reductions
    Indiana is using a 2011 inventory as the nonattainment base year.
Area, nonroad mobile, airport related emissions (AIR), and point source
emissions (EGUs and non-EGUs) were collected from the Ozone NAAQS
Implementation Modeling platform (2011v6.1). For 2011, this represents
actual data reported to EPA by the states for the 2011 National
Emissions inventory (NEI). Because emissions from state inventory
databases, the NEI, and the Ozone NAAQS Emissions Modeling platform are
annual totals, tons per summer day were derived according to EPA's
guidance document ``Temporal Allocation of Annual Emissions Using EMCH
Temporal Profiles'' dated April 29 2002, using the temporal allocation
references accompanying the 2011v6.1 modeling inventory files. Onroad
mobile source emissions were developed in conjunction with the Ohio-
Kentucky-Indiana Regional Council of Governments (OKI) and were
calculated from emission factors produced by EPA's 2014 Motor Vehicle
Emission Simulator (MOVES) model and data extracted from the region's
travel-demand model.
    For the attainment inventory, Indiana is using 2014, one of the
years the Cincinnati area monitored attainment of the 2008 ozone
standard. Because the 2014 NEI inventory was not available at the time
IDEM was compiling the redesignation request, the state was unable to
use the 2014 NEI inventory directly. For area, nonroad mobile, and AIR,
2014 emissions were derived by interpolating between 2011 and 2018
Ozone NAAQS Emissions Modeling platform inventories. The point source
sector for the 2014 inventory was developed using actual 2014 point
source emissions reported to the state databases, which serve as the
basis for the point source emissions reported to EPA for the NEI.
Summer day inventories were derived for these sectors using the
methodology described above. Finally, onroad mobile source emissions
were developed in conjunction with OKI using the same methodology
described above for the 2011 inventory.
    Using the inventories described above, Indiana's submittal
documents changes in VOC and NOX emissions from 2011 to 2014
for the Cincinnati area. Emissions data are shown in Tables 2 through
7.

                                           Table 2--Cincinnati Area NOX Emissions for Nonattainment Year 2011
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................           17.79            0.00            0.53            0.47            1.89           20.68
Ohio:
    Butler..............................................           10.67            0.02            4.27            4.78           12.24           31.98
    Clermont............................................           43.55            0.00            2.27            1.14            7.52           54.48
    Clinton.............................................            0.00            0.00            1.15            0.52            4.53            6.20
    Hamilton............................................           26.29            0.02            8.56           10.09           33.69           78.65
    Warren..............................................            1.55            0.00            3.24            1.66            9.84           16.29
Kentucky:
    Boone...............................................            7.19            2.03            1.06            0.43            6.90           17.61
    Campbell............................................            0.17            0.00            0.38            0.49            4.30            5.34
    Kenton..............................................            0.01            0.00            0.77            1.02            6.53            8.33
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................          107.22            2.07           22.23           20.60           87.44          239.56
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                           Table 3--Cincinnati Area VOC Emissions for Nonattainment Year 2011
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................            4.28            0.00            0.42            1.75            1.33            7.78
Ohio:
    Butler..............................................            3.09            0.03            2.93            9.59           10.21           25.85
    Clermont............................................            0.49            0.01            1.95            5.41            6.27           14.13
    Clinton.............................................            0.00            0.01            0.84            2.49            2.27            5.61
    Hamilton............................................            2.62            0.04            7.44           21.88           28.09           60.07
    Warren..............................................            0.62            0.01            2.12            5.71            8.21           16.67
Kentucky:
    Boone...............................................            1.73            0.42            1.49            2.66            3.30            9.60
    Campbell............................................            0.22            0.00            0.40            1.29            2.05            3.96
    Kenton..............................................            0.51            0.00            0.62            2.51            3.12            6.76
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................           13.56            0.52           18.21           53.29           64.85          150.43
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                             Table 4--Cincinnati Area NOX Emissions for Attainment Year 2014
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................           11.74            0.00            0.44            0.47            1.37           14.02
Ohio:
    Butler..............................................           12.70            0.02            3.39            4.78            8.85           29.74
    Clermont............................................           41.20            0.00            1.81            1.14            5.44           49.59
    Clinton.............................................            0.00            0.00            0.96            0.52            3.51            4.99
    Hamilton............................................           21.65            0.02            6.76           10.08           24.37           62.88
    Warren..............................................            0.96            0.00            2.55            1.66            7.12           12.29
Kentucky:
    Boone...............................................            7.37            2.07            0.88            0.43            5.46           16.21
    Campbell............................................            0.17            0.00            0.32            0.49            3.41            4.39
    Kenton..............................................            0.01            0.00            0.64            1.02            5.17            6.84
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................           95.80            2.11           17.75           20.59           64.70          200.95
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                             Table 5--Cincinnati Area VOC Emissions for Attainment Year 2014
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................            5.54            0.00            0.36            1.75            0.99            8.64
Ohio:
    Butler..............................................            2.96            0.03            2.61            9.51            7.59           22.70
    Clermont............................................            0.63            0.01            1.73            5.36            4.66           12.39
    Clinton.............................................            0.01            0.01            0.71            2.51            1.53            4.77
    Hamilton............................................            2.73            0.04            6.54           21.66           20.88           51.85

    Warren..............................................            0.51            0.01            1.93            5.66            6.10           14.21
Kentucky:
    Boone...............................................            1.73            0.42            1.30            2.56            2.53            8.54
    Campbell............................................            0.22            0.00            0.34            1.26            1.58            3.40
    Kenton..............................................            0.51            0.00            0.55            2.43            2.39            5.88
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................           14.84            0.52           16.07           52.70           48.25          132.38
--------------------------------------------------------------------------------------------------------------------------------------------------------

                      Table 6--Change in NOX and VOC Emissions Between 2011 and 2014 for the Indiana Portion of the Cincinnati Area
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                NOX                                             VOC
                                                         -----------------------------------------------------------------------------------------------
                                                                                Net change                                      Net change
                                                               2011            2014         (2011-2014)        2011            2014         (2011-2014)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...................................................           17.79           11.74           -6.05            4.28            5.54            1.26
AIR.....................................................            0.00            0.00            0.00            0.00            0.00            0.00
Nonroad.................................................            0.53            0.44           -0.09            0.42            0.36           -0.06
Area....................................................            0.47            0.47            0.00            1.75            1.75            0.00
Onroad..................................................            1.89            1.37           -0.52            1.33            0.99           -0.34
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................           20.68           14.02           -6.66            7.78            8.64            0.86
--------------------------------------------------------------------------------------------------------------------------------------------------------

                              Table 7--Change in NOX and VOC Emissions Between 2011 and 2014 for the Entire Cincinnati Area
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                NOX                                             VOC
                                                         -----------------------------------------------------------------------------------------------
                                                                                Net change                                      Net change
                                                               2011            2014         (2011-2014)        2011            2014         (2011-2014)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...................................................          107.22           95.80          -11.42           13.56           14.84            1.28
AIR.....................................................            2.07            2.11            0.04            0.52            0.52            0.00
Nonroad.................................................           22.23           17.75           -4.48           18.21           16.07           -2.14
Area....................................................           20.60           20.59           -0.01           53.29           52.70           -0.59
Onroad..................................................           87.44           64.70          -22.74           64.85           48.25          -16.60
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................          239.56          200.95          -38.61          150.43          132.38          -18.05
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 7 shows that the Cincinnati area reduced NOX and
VOC emissions by 38.61 TPSD and 18.05 TPSD, respectively, between 2011
and 2014. As shown in Table 6, the Indiana portion of the Cincinnati
area alone reduced NOX emissions by 6.66 TPSD, but VOC
emissions increased slightly by 0.86 TPSD, between 2011 and 2014.
However, overall there was a substantial decrease in both
NOX and VOC emissions for the entire Cincinnati area.
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 on favorable meteorology, an analysis was performed by the Lake
Michigan Air Directors Consortium (LADCO). A classification and
regression tree (CART) analysis was conducted with 2000 through 2014
data from three Cincinnati area ozone sites. The goal of the analysis
was to determine the meteorological and air quality conditions
associated with ozone episodes, and construct trends for the days
identified as sharing similar meteorological conditions.
    Regression trees were developed for the three 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, supporting 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
Cincinnati 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 redsignation 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
assure 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 Cincinnati area to attainment for the 2008 ozone
standard, IDEM submitted a SIP revision to provide for maintenance of
the 2008 ozone standard through 2030, more than 10 years after the
expected effective date of the redesignation to attainment. As is
discussed more fully below, EPA proposes to find that Indiana's ozone
maintenance plan includes the necessary components and is proposing to
approve the maintenance plan as a revision of the Indiana SIP.
1. Attainment Inventory
    EPA is proposing to determine that the Cincinnati area has attained
the 2008 ozone NAAQS based on monitoring data for the period of 2013-
2015. IDEM selected 2014 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 Cincinnati area that are sufficient to attain the 2008 ozone NAAQS.
The derivation of the attainment year emissions was discussed above in
section IV.C.2. of this premble. The attainment level emissions, by
source category, are summarized in Tables 4 and 5 above.
2. Has the state documented maintenance of the ozone standard in the
Cincinnati area?
    Indiana has demonstrated maintenance of the 2008 ozone standard
through 2030 by assuring that current and future emissions of VOC and
NOX for the Cincinnati 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 2020 and 2030
to demonstrate maintenance. 2030 is more than 10 years after the
expected effective date of the redesignation to attainment and 2020 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.
    To develop the 2020 and 2030 inventories, the state collected data
from the Ozone NAAQS Emissions Modeling platform (2011v6.1) inventories
for years 2011, 2018 and 2025. 2020 emissions for area, nonroad mobile,
AIR, and point source sectors were derived by interpolating between
2018 and 2025. 2030 emissions for area, nonroad mobile, AIR, and point
source sectors were derived using the TREND function in Excel. If the
trend function resulted in a negative value the emissions were assumed
not to change. Summer day inventories were derived for these sectors
using the methodology described in section IV.C.2. above. Finally,
onroad mobile source emissions were developed in conjunction with OKI
using the same methodology described in section IV.C.2. above for the
2011 inventory. Emissions data are shown in Tables 8 through 13 below.

                                        Table 8--Cincinnati Area NOX Emissions for Interim Maintenance Year 2020
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................            2.96            0.00            0.30            0.48            0.74            4.48
Ohio:
    Butler..............................................            9.77            0.02            2.03            4.78            4.74           21.34
    Clermont............................................           31.32            0.00            1.11            1.14            2.91           36.48
    Clinton.............................................            0.00            0.00            0.64            0.52            1.86            3.02
    Hamilton............................................           18.73            0.02            4.06           10.08           13.05           45.94
    Warren..............................................            1.54            0.00            1.50            1.66            3.81            8.51
Kentucky:
    Boone...............................................            7.86            2.29            0.60            0.43            2.41           13.59
    Campbell............................................            0.17            0.00            0.23            0.49            1.50            2.39
    Kenton..............................................            0.01            0.00            0.43            1.02            2.28            3.74
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................           72.36            2.33           10.90           20.60           33.30          139.49
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                        Table 9--Cincinnati Area VOC Emissions for Interim Maintenance Year 2020
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................            4.06            0.00            0.29            1.77            0.62            6.74
Ohio:
    Butler..............................................            2.98            0.03            2.23            9.38            4.79           19.41
    Clermont............................................            0.51            0.01            1.43            5.28            2.94           10.17
    Clinton.............................................            0.00            0.01            0.51            2.54            0.93            3.99
    Hamilton............................................            2.54            0.04            5.42           21.30           13.18           42.48

    Warren..............................................            0.60            0.01            1.54            5.59            3.85           11.59
Kentucky:
    Boone...............................................            1.73            0.45            1.03            2.41            1.38            7.00
    Campbell............................................            0.22            0.00            0.25            1.22            0.86            2.55
    Kenton..............................................            0.49            0.00            0.47            2.31            1.30            4.57
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................           13.13            0.55           13.17           51.80           29.85          108.50
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 10--Cincinnati Area NOX Emissions for Maintenance Year 2030
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................            2.96            0.00            0.18            0.48            0.39            4.01
Ohio:
    Butler..............................................            9.83            0.00            1.16            4.79            2.44           18.22
    Clermont............................................           31.32            0.00            0.63            1.15            1.50           34.60
    Clinton.............................................            0.00            0.00            0.29            0.53            1.28            2.10
    Hamilton............................................           18.75            0.00            2.59           10.10            6.71           38.15
    Warren..............................................            1.54            0.00            0.78            1.67            1.96            5.95
Kentucky:
    Boone...............................................            8.51            0.29            0.38            0.44            1.05           10.67
    Campbell............................................            0.17            0.00            0.15            0.49            0.65            1.46
    Kenton..............................................            0.01            0.00            0.27            1.02            0.99            2.29
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................           73.09            0.29            6.43           20.67           16.97          117.45
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 11--Cincinnati Area VOC Emissions for Maintenance Year 2030
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         County                                Point            AIR           Nonroad          Area           Onroad           Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
Indiana:
    Dearborn............................................            4.06            0.00            0.27            1.85            0.38            6.56
Ohio:
    Butler..............................................            3.00            0.01            2.43            9.31            2.88           17.63
    Clermont............................................            0.64            0.00            1.46            5.20            1.77            9.07
    Clinton.............................................            0.01            0.00            0.42            2.61            0.71            3.75
    Hamilton............................................            2.62            0.00            5.87           21.01            7.92           37.42
    Warren..............................................            0.58            0.00            1.51            5.52            2.32            9.93
Kentucky:
    Boone...............................................            1.73            0.06            0.92            2.36            0.77            5.84
    Campbell............................................            0.21            0.00            0.22            1.19            0.48            2.10
    Kenton..............................................            0.47            0.00            0.50            2.25            0.73            3.95
                                                         -----------------------------------------------------------------------------------------------
        Area Totals.....................................           13.32            0.07           13.60           51.30           17.96           96.25
--------------------------------------------------------------------------------------------------------------------------------------------------------

                     Table 12--Change in NOX and VOC Emissions Between 2014 and 2030 for the Indiana Portion of the Cincinnati Area
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          NOX                                                 VOC
                                                 -------------------------------------------------------------------------------------------------------
                                                                                Net change                                          Net change
                                                      2014         2020         2030     (2014-2030)      2014         2020         2030     (2014-2030)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...........................................        11.74         2.96         2.96        -8.78         5.54         4.06         4.06        -1.48
AIR.............................................         0.00         0.00         0.00         0.00         0.00         0.00         0.00         0.00
Nonroad.........................................         0.44         0.30         0.18        -0.26         0.36         0.29         0.27        -0.09
Area............................................         0.47         0.48         0.48         0.01         1.75         1.77         1.85         0.10
Onroad..........................................         1.37         0.74         0.39        -0.98         0.99         0.62         0.38        -0.61
                                                 -------------------------------------------------------------------------------------------------------
    Total.......................................        14.02         4.48         4.01       -10.01         8.64         6.74         6.56        -2.08
--------------------------------------------------------------------------------------------------------------------------------------------------------

                             Table 13--Change in NOX and VOC Emissions Between 2014 and 2030 for the Entire Cincinnati Area
                                                                         [TPSD]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          NOX                                                 VOC
                                                 -------------------------------------------------------------------------------------------------------
                                                                                Net change                                          Net change
                                                      2014         2020         2030     (2014-2030)      2014         2020         2030     (2014-2030)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Point...........................................        95.80        72.36        73.09       -22.71        14.84        13.13        13.32        -1.52
AIR.............................................         2.11         2.33         0.29        -1.82         0.52         0.55         0.07        -0.45
Nonroad.........................................        17.75        10.90         6.43       -11.32        16.07        13.17        13.60        -2.47
Area............................................        20.59        20.60        20.67         0.08        52.70        51.80        51.30        -1.40
Onroad..........................................        64.70        33.30        16.97       -47.73        48.25        29.85        17.96       -30.29
                                                 -------------------------------------------------------------------------------------------------------
    Total.......................................       200.95       139.49       117.45       -83.50       132.38       108.50        96.25       -36.13
--------------------------------------------------------------------------------------------------------------------------------------------------------

    In summary, the maintenance demonstration for the Cincinnati area
shows maintenance of the 2008 ozone standard by providing emissions
information to support the demonstration that future emissions of
NOX and VOC will remain at or below 2014 emission levels
when taking into account both future source growth and implementation
of future controls. Table 13 shows NOX and VOC emissions in
the Cincinnati area are projected to decrease by 83.50 TPSD and 36.13
TPSD, respectively, between 2014 and 2030. As shown in Table 12,
NOX and VOC emissions in the Indiana portion of the
Cincinnati area alone are projected to decrease by 10.01 TPSD and 2.08
TPSD, respectively, between 2014 and 2030.
3. Continued Air Quality Monitoring
    IDEM has committed to continue to operate the ozone monitors listed
in Table 1 above. IDEM has committed to consult with EPA prior to
making changes to the existing monitoring network should changes become
necessary in the future. Indiana remains obligated to meet monitoring
requirements and continue to quality assure monitoring data in
accordance with 40 CFR part 58, and to enter all data into the Air
Quality System (AQS) in accordance with Federal guidelines.
4. Verification of Continued Attainment
    The State of Indiana has the legal authority to enforce and
implement the requirements of the maintenance plan for the Indiana
portion of the Cincinnati 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
Cincinnati area. There are no plans to discontinue operation, relocate,
or otherwise change the existing ozone monitoring network other than
through revisions in the network approved by the EPA.
    In addition, to track future levels of emissions, IDEM 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 in 40 CFR 51.122.
The Consolidated Emissions Reporting Rule (CERR) was promulgated by EPA
on June 10, 2002 (67 FR 39602). The CERR was replaced by the Annual
Emissions Reporting Requirements (AERR) on December 17, 2008 (73 FR
76539). The most recent triennial inventory for Indiana was compiled
for 2014. Point source facilities covered by Indiana's emissions
statements rule, which was submitted separately by IDEM for inclusion
in Indiana's SIP and is being considered by EPA in a separate rule,
will submit VOC and NOX emissions on an annual basis.
5. What is the contingency plan for the Cincinnati area?
    Section 175A of the CAA requires that the state must adopt a
maintenance plan, as a SIP revision, that includes such contingency
measures as EPA deems necessary to assure 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 relevant pollutants that were 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 Cincinnati area to address possible future
ozone air quality problems. The contingency plan adopted by Indiana has
two levels of response, a warning level response and an action level
response.
    In Indiana's plan, a warning level response will be triggered when
an annual fourth high monitored value of 0.079 ppm or higher is
monitored within the maintenance area. A warning level response will
consist of IDEM conducting a study to determine whether the ozone value
indicates a trend toward higher ozone values and/or whether emissions
appear to be increasing. The studies will evaluate whether the trend,
if any, is likely to continue and, if so, the control measures
necessary to reverse the trend. The studies 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
two-year average fourth high value of 0.076 ppm or greater is monitored
within the maintenance area. A violation of the standard within the
maintenance area also triggers an action level response. When an action
level response is triggered, IDEM will determine what additional
control measures are needed to assure future attainment of the ozone
standard, and will adopt these measures through the necessary
administrative and legal process, including the opportunity for a
public hearing. 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 a new
measure or control is already promulgated and scheduled to be
implemented at the federal or state level and would thus constitute an
adequate contingency measure response.
    IDEM included the following list of potential contingency measures
in its maintenance plan:

1. Installation of a vehicle emissions testing program
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

    EPA has concluded that the 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, IDEM has committed to submit to EPA an
updated ozone maintenance plan eight years after redesignation of the
Indiana portion of the Cincinnati area to cover an additional ten years
beyond the initial 10-year maintenance period. Thus, EPA proposes to
find that the maintenance plan SIP revision submitted by IDEM for the
Indiana portion of the Cincinnati area meets the requirements of
section 175A of the CAA.

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

A. Motor Vehicle Emission Budgets

    Under section 176(c) of the CAA, new transportation plans,
programs, or projects that receive Federal funding or support, such as
the construction of new highways, must ``conform'' to (i.e., be
consistent with) the SIP. Conformity to the SIP means that
transportation activities will not cause new air quality violations,
worsen existing air quality problems, or delay timely attainment of the
NAAQS or interim air quality milestones. Regulations at 40 CFR part 93
set forth EPA policy, criteria, and procedures for demonstrating and
assuring conformity of transportation activities to a SIP.
Transportation conformity is a requirement for nonattainment and
maintenance areas. Maintenance areas are areas that were previously
nonattainment for a particular NAAQS, but that have been redesignated
to attainment with an approved maintenance plan for the NAAQS.
    Under the CAA, states are required to submit, at various times,
control strategy SIPs for nonattainment areas and maintenance plans for
areas seeking redesignations to attainment of the ozone standard and
maintenance areas. See the SIP requirements for the 2008 ozone standard
in EPA's March 6, 2015 implementation rule (80 FR 12264). These control
strategy SIPs (including reasonable further progress plans and
attainment plans) and maintenance plans must include MVEBs for criteria
pollutants, including ozone, and their precursor pollutants (VOC and
NOX for ozone) to address pollution from onroad
transportation sources. The MVEBs are the portion of the total
allowable emissions that are allocated to highway and transit vehicle
use that, together with emissions from other sources in the area, will
provide for attainment or maintenance. See 40 CFR 93.101.
    Under 40 CFR part 93, a MVEB for an area seeking a redesignation to
attainment must be established, at minimum, for the last year of the
maintenance plan. A state may adopt MVEBs for other years as well. The
MVEB serves as a ceiling on emissions from an area's planned
transportation system. The MVEB concept is further explained in the
preamble to the November 24, 1993, Transportation Conformity Rule (58
FR 62188). The preamble also describes how to establish the MVEB in the
SIP and how to revise the MVEB, if needed, subsequent to initially
establishing a MVEB in the SIP.

B. What is the status of EPA's adequacy determination for the proposed
VOC and NOX MVEBs for the Cincinnati area?

    When reviewing submitted control strategy SIPs or maintenance plans
containing MVEBs, EPA must affirmatively find that the MVEBs contained
therein are adequate for use in determining transportation conformity.
Once EPA affirmatively finds that the submitted MVEBs are adequate for
transportation purposes, the MVEBs must be used by state and Federal
agencies in determining whether proposed transportation projects
conform to the SIP as required by section 176(c) of the CAA.
    EPA's substantive criteria for determining adequacy of a MVEB are
set out in 40 CFR 93.118(e)(4). The process for determining adequacy
consists of three basic steps: Public notification of a SIP submission;
provision for a public comment period; and EPA's adequacy
determination. This process for determining the adequacy of submitted
MVEBs for transportation conformity purposes was initially outlined in
EPA's May 14, 1999 guidance, ``Conformity Guidance on Implementation of
March 2, 1999, Conformity Court Decision.'' EPA adopted regulations to
codify the adequacy process in the Transportation Conformity Rule
Amendments for the ``New 8-Hour Ozone and PM2.5 National
Ambient Air Quality Standards and Miscellaneous Revisions for Existing
Areas; Transportation Conformity Rule Amendments--Response to Court
Decision and Additional Rule Change,'' on July 1, 2004 (69 FR 40004).
Additional information on the adequacy process for transportation
conformity purposes is available in the proposed rule titled,
``Transportation Conformity Rule Amendments: Response to Court Decision
and Additional Rule Changes,'' 68 FR 38974, 38984 (June 30, 2003).
    As discussed earlier, Indiana's maintenance plan includes
NOX and VOC MVEBs for the Cincinnati area for 2030 and 2020,
the last year of the maintenance period and an interim year. EPA
reviewed the VOC and NOX MVEBs through the adequacy process.
Indiana's February 23, 2016, maintenance plan SIP submission, including
the VOC and NOX MVEBs for the Indiana and Ohio portion of
the Cincinnati area, was open for public comment on EPA's adequacy Web
site on July 22, 2016, found at: http://www.epa.gov/otaq/stateresources/transconf/currsips.htm. The EPA public comment period on
adequacy of the 2020 and 2030 MVEBs for the Indiana and Ohio portion of
the Cincinnati area closed on August 22, 2016. No comments on the
submittal were received during the adequacy comment period. The
submitted maintenance plan, which included the MVEBs, was endorsed by
the Governor (or his or her designee) and was subject to a state public
hearing. The MVEBs were developed as part of an interagency
consultation process which includes Federal, state, and local agencies.
The MVEBs were clearly identified and precisely quantified. These
MVEBs, when considered together with all other emissions sources, are
consistent with maintenance of the 2008 ozone standard.

                                      Table 14--MVEBs for the Indiana and Ohio Portion of the Cincinnati Area, TPSD
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                            Attainment
                                             year 2014    2020 Estimated    2020 Mobile                   2030 Estimated    2030 Mobile
                                              onroad          onroad       safety margin    2020 MVEBs        onroad       safety margin    2030 MVEBs
                                             emissions       emissions      allocation                       emissions      allocation
--------------------------------------------------------------------------------------------------------------------------------------------------------
VOC.....................................           41.75           26.31            3.71           30.02           15.98            2.24           18.22
NOX.....................................           50.66           27.11            3.68           30.79           14.28            1.94           16.22
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As shown in Table 14, the 2020 and 2030 MVEBs are greater than the
estimated 2020 and 2030 onroad sector emissions. In an effort to
accommodate future variations in travel demand models and vehicle miles
traveled forecast, IDEM allocated a portion of the safety margin
(described further below) to the mobile sector. Indiana has
demonstrated that the Cincinnati area can maintain the 2008 ozone NAAQS
with mobile source emissions in the Indiana and Ohio portion of the
area of 30.02 TPSD and 18.22 TPSD of VOC in 2020 and 2030,
respectively, and 30.79 TPSD and 16.22 TPSD of NOX in 2020
and 2030, respectively, since despite partial allocation of the safety
margin, emissions will remain under attainment year emission levels.
EPA has found adequate and is proposing to approve the MVEBs for use to
determine transportation conformity in the Indiana and Ohio portion of
the Cincinnati area, because EPA has determined that the area can
maintain attainment of the 2008 ozone NAAQS for the relevant
maintenance period with mobile source emissions at the levels of the
MVEBs.

C. What is a safety margin?

    A ``safety margin'' is the difference between the attainment level
of emissions (from all sources) and the projected level of emissions
(from all sources) in the maintenance plan. As shown in Table 15 below,
the emissions in the Indiana and Ohio portion of the Cincinnati area,
excluding the Kentucky portion of the area, are projected to have
safety margins of 70.48 TPSD for NOX and 30.20 TPSD for VOC
in 2030 (the difference between the attainment year, 2014, emissions
and the projected 2030 emissions for all sources in just the Indiana
and Ohio portion of the Cincinnati area). Similarly, there is a safety
margin of 53.74 TPSD for NOX and 20.18 TPSD for VOC in 2020.

              Table 15--Safety Margin for the Indiana and Ohio Portion of the Cincinnati Area, TPSD
----------------------------------------------------------------------------------------------------------------
                                    Attainment
                                     year 2014    2020 Estimated    2020 Safety   2030 Estimated    2030 Safety
                                  emissions from  emissions from      margin      emissions from      margin
                                    all sources     all sources     allocation      all sources     allocation
----------------------------------------------------------------------------------------------------------------
VOC.............................          114.56           94.38           20.18           84.36           30.20
NOX.............................          173.51          119.77           53.74          103.03           70.48
----------------------------------------------------------------------------------------------------------------

    Even if emissions reached the full level of the safety margin, the
counties would still demonstrate maintenance since emission levels
would equal those in the attainment year.
    As shown in Table 14 above, a portion of the safety margin for the
Indiana and Ohio portion of the Cincinnati area is allocated to the
mobile source sector. Specifically, in 2020, 3.71 TPSD and 3.68 TPSD of
the VOC and NOX safety margins, respectively, are allocated
to the mobile source sector. In 2030, 2.24 TPSD and 1.94 TPSD of the
VOC and NOX safety margins, respectively, are allocated to
the mobile source sector. The requested amount allocated to the MVEBs
represents only a small portion of the 2020 and 2030 safety margins.
Therefore, even though the requested MVEBs are greater than the
projected onroad mobile source emissions for 2020 and 2030 contained in
the demonstration of maintenance, the increase in onroad mobile source
emissions that can be considered for transportation conformity purposes
is well within the safety margins of the ozone maintenance
demonstration. Further, once allocated to mobile sources, these safety
margins will not be available for use by other sources.

VI. Has the state submitted approvable emission inventories?

A. The 2008 Ozone NAAQS and Emission Inventory Requirements

    CAA sections 172(c)(3) and 182(a)(1), 42 U.S.C. 7502(c)(3) and
7511a(a)(1), require states to develop and submit, as SIP revisions,
emission inventories for all areas designated as nonattainment for any
NAAQS, including the 2008 ozone NAAQS. An emission inventory for ozone
is an estimation of actual emissions of air pollutants that contribute
to the formation of ozone in an area. Therefore, an emission inventory
for ozone focuses on the emissions of VOC and NOX. VOC is
emitted by many types of pollution sources, including power plants,
industrial sources, onroad and nonroad mobile sources, smaller
stationary sources, collectively referred to as area sources, and
biogenic sources.\7\ NOX is primarily emitted by combustion
sources, both stationary and mobile.
---------------------------------------------------------------------------

    \7\ Biogenic emissions are produced by living organisms and are
typically not included in the base year emission inventories, but
are considered in ozone modeling analyses, which must consider all
emissions in a modeled area.
---------------------------------------------------------------------------

    Emission inventories provide emissions data for a variety of air
quality planning tasks, including establishing baseline emission levels
(anthropogenic [manmade] emissions associated with ozone standard
violations), calculating emission reduction targets needed to attain
the NAAQS and to achieve reasonable further progress toward attainment
of the ozone standard (not required in the area considered here),
determining emission inputs for ozone air quality modeling analyses,
and tracking emissions over time to determine progress toward achieving
air quality and emission reduction goals. As stated above, the CAA
requires the states to submit emission inventories for areas designated
as nonattainment for ozone.

For the 2008 ozone NAAQS, EPA has recommended that states submit
typical summer day emission estimates for 2011 (78 FR 34178, 34190,
June 6, 2013). States are required to submit estimates of VOC and
NOX emissions for four general classes of anthropogenic
sources: Stationary point sources; area sources; onroad mobile sources;
and nonroad mobile sources.

B. Indiana's Emission Inventories

    Indiana's February 23, 2016 submission includes a SIP revision
addressing the VOC and NOX emission inventory requirement
for the Indiana portion of the Cincinnati area. Table 16 summarizes the
2011 VOC and NOX emissions for the Indiana portion of the
Cincinnati area for a typical summer day (reflective of the summer
period, when the highest ozone concentrations are expected in the
nonattainment area).

  Table 16--Indiana Portion of Cincinnati Area 2011 Emission Inventory
                             [tons per day]
------------------------------------------------------------------------
                  Source type                       VOC          NOX
------------------------------------------------------------------------
Non-EGU Point.................................         4.01         2.71
EGU Point.....................................         0.27        15.08
Area..........................................         1.75         0.47
Onroad Mobile.................................         1.33         1.89
Nonroad Mobile................................         0.42         0.53
                                               -------------------------
    Totals....................................         7.78        20.68
------------------------------------------------------------------------

    IDEM estimated VOC and NOX emissions for the Indiana
portion of the Cincinnati area by totaling emissions within each source
category. To develop the VOC and NOX emission inventories,
IDEM used the procedures summarized below.
    The primary source of emissions data for non-EGU point sources was
source-reported 2011 Emission Inventory System (EIS) data. IDEM
requires certain regulated stationary sources in the ozone
nonattainment areas to submit EISs annually. An EIS contains detailed
source type-specific or source unit-specific annual and seasonal actual
emissions for all source units in a facility. The EIS data for all
applicable facilities were used to calculate annual and summer day
county-specific point source emissions. Because they are determinative,
only the summer day emissions are summarized here.
    EGU point source emissions data were obtained from EPA's Clean Air
Markets Division (CAMD). CAMD collects and processes EGU emissions
nationally.
    For all point sources, IDEM has provided a detailed list of major
point source facilities and their associated summer day VOC and
NOX emissions within appendix H of its February 23, 2016,
submittal.
    Nonroad mobile source emissions were estimated using EPA's National
Mobile Inventory Model (NMIM). The emission estimates were processed
through the Consolidated Community Emissions Processing Tool (CONCEPT)
to spatially allocate the emissions to the county levels.
    As described earlier, area, nonroad mobile, and point source
emissions (EGUs and non-EGUs) were collected from the Ozone NAAQS
Implementation Modeling platform (2011v6.1). For 2011, this represents
actual data reported to EPA by the states for the 2011 NEI. Because
emissions data from state inventory databases, the NEI, and the Ozone
NAAQS Emissions Modeling platform are annual totals, tons per summer
day were derived according to EPA's guidance document ``Temporal
Allocation of Annual Emissions Using EMCH Temporal Profiles'' dated
April 29 2002, using the temporal allocation references accompanying
the 2011v6.1 modeling inventory files.
    Onroad mobile source emissions were developed in conjunction with
the Ohio-Kentucky-Indiana Regional Council of Governments (OKI) and
were calculated from emission factors produced by EPA's 2014 Motor
Vehicle Emission Simulator (MOVES) model and data extracted from the
region's travel-demand model.
    IDEM applied standardized, EPA-recommended procedures and data
completeness checks to quality assure (QA) (to assure data accuracy)
and quality check (QC) (to assure data completeness) the emission
calculations.

C. EPA's Evaluation

    EPA has reviewed Indiana's February 23, 2016, submittal for
consistency with CAA and EPA emission inventory requirements. In
particular, EPA has reviewed the techniques used by IDEM to derive and
quality assure the emission estimates. EPA has also determined that
Indiana has provided the public with the opportunity to review and
comment on the development of the emission estimates and that the state
has addressed all public comments.
1. Did the state adequately document the derivation of the emission
estimates?
    IDEM documented the procedures used to estimate the emissions for
each of the major source types. The documentation of the emission
estimation procedures is thorough and is adequate for us to determine
that IDEM followed acceptable procedures to estimate the emissions.
2. Did the state quality assure the emission estimates?
    IDEM developed a quality assurance plan and followed this plan
during the various phases of the emissions estimation and documentation
process to QA and QC the emissions for completeness and accuracy. These
quality assurance procedures were summarized in the documentation
describing how the emissions totals were developed. EPA has determined
that the quality assurance procedures are adequate and acceptable. We
conclude that Indiana has developed inventories of VOC and
NOX emissions that are comprehensive and complete.
3. Did the state provide for public review of the requested SIP
revision?
    IDEM notified the public of the opportunity for comment, and opened
a comment period to solicit comments relevant to the emission inventory
and the entire submittal. IDEM has reported that no comments were
received.

VII. Proposed Actions

    EPA is proposing to determine that the Cincinnati nonattainment
area is attaining the 2008 ozone standard, based on quality-assured and
certified monitoring data for 2013-2015 and that the Indiana portion of
this area has met the requirements for redesignation under section
107(d)(3)(E) of the CAA. EPA is thus proposing to approve IDEM's
request to change the legal designation of the Indiana portion of the
Cincinnati area from nonattainment to attainment for the 2008 ozone
standard. 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 Cincinnati area in attainment of the 2008
ozone NAAQS through 2030. Additionally, EPA finds adequate and is
proposing to approve the newly-established 2020 and 2030 MVEBs for the
Indiana and Ohio portion of the Cincinnati area. Finally, EPA is
proposing to approve the 2011 base year emissions inventory submitted
by IDEM as meeting the base year emissions inventory requirement of the
CAA for the Indiana portion of the Cincinnati area.

VIII. Statutory and Executive Order Reviews

    Under the CAA, redesignation of an area to attainment and the
accompanying approval of a

maintenance plan under section 107(d)(3)(E) are actions that affect the
status of a geographical area and do not impose any additional
regulatory requirements on sources beyond those imposed by state law. A
redesignation to attainment does not in and of itself create any new
requirements, but rather results in the applicability of requirements
contained in the CAA for areas that have been redesignated to
attainment. Moreover, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
     Is not a significant regulatory action subject to review
by the Office of Management and Budget under Executive Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     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 in 40 CFR Part 52

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

    Dated: December 12, 2016.
Robert A. Kaplan,
Acting Regional Administrator, Region 5.
[FR Doc. 2016-31044 Filed 12-23-16; 8:45 am]
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