[Federal Register Volume 76, Number 182 (Tuesday, September 20, 2011)]
[Proposed Rules]
[Pages 58210-58226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-24103]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R04-OAR-2009-1010-201063; FRL-9467-7]


Approval and Promulgation of Implementation Plans and Designation 
of Areas for Air Quality Planning Purposes; North Carolina: 
Redesignation of the Hickory-Morganton-Lenoir 1997 Annual Fine 
Particulate Matter Nonattainment Area to Attainment

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve SIP revisions submitted on 
December 18, 2009, and December 22, 2010 (supplemental submission) by 
the State of North Carolina, through the North Carolina Department of 
Environment and Natural Resources (NC DENR), Division of Air Quality 
(DAQ), to support North Carolina's request to redesignate the Hickory-
Morganton-Lenoir fine particulate matter (PM2.5) 
nonattainment area (hereafter the ``Hickory Area'' or ``Area'') to 
attainment for the 1997 Annual PM2.5 National Ambient Air 
Quality Standards (NAAQS). The Hickory Area is comprised of Catawba 
County in its entirety. EPA is now proposing four separate but related 
actions. First, EPA is proposing to approve the December 18, 2009, 
PM2.5 redesignation request, including the December 22, 
2010, Motor Vehicle Emission Simulator (MOVES) mobile model supplement 
for the Hickory Area, provided that EPA takes final action to approve 
specific provisions of the North Carolina Clean Smokestacks Act 
(NCCSA). Second, EPA is proposing to approve North Carolina's 2008 
emissions inventory for the Hickory Area under section 172(c)(3) of the 
Clean Air Act (CAA or Act). Third, subject to the same proviso 
regarding the NCCSA and final approval of the 2008 emissions inventory, 
EPA is proposing to approve the 1997 Annual PM2.5 NAAQS 
maintenance plan for the Hickory Area, including the 2008 baseline 
emissions inventory, and the motor vehicle emission budgets (MVEBs) for 
nitrogen oxides (NOX) for the years 2011 and 2021, and the 
mobile insignificance determination for direct PM2.5 for the 
Hickory Area. EPA is also describing the status of its transportation 
conformity adequacy determination for the new 2011 and 2021 MVEBs for 
NOX that are contained in the 1997 Annual PM2.5 
NAAQS maintenance plan for the Hickory Area. Fourth and separate from 
the action to redesignate the Hickory Area, EPA is proposing to 
determine that the Area has attained the 1997 annual PM2.5 
NAAQS by its applicable attainment date of April 5, 2010. These 
proposed actions are being taken pursuant to the CAA and its 
implementing regulations.

DATES: Comments must be received on or before October 20, 2011.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2009-1010, by one of the following methods:
    1. http://www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. E-mail: [email protected].
    3. Fax: (404) 562-9019.
    4. Mail: EPA-R04-OAR-2009-1010, Regulatory Development Section, Air 
Planning Branch, Air, Pesticides and Toxics Management Division, U.S. 
Environmental Protection Agency, Region 4, 61 Forsyth Street, SW., 
Atlanta, Georgia 30303-8960.

[[Page 58211]]

    5. Hand Delivery or Courier: Ms. Lynorae Benjamin, Chief, 
Regulatory Development Section, Air Planning Branch, Air, Pesticides 
and Toxics Management Division, U.S. Environmental Protection Agency, 
Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. Such 
deliveries are only accepted during the Regional Office's normal hours 
of operation. The Regional Office's official hours of business are 
Monday through Friday, 8:30 to 4:30, excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R04-OAR-
2009-1010. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit through http://www.regulations.gov or e-mail, information that you consider to be CBI 
or otherwise protected. The http://www.regulations.gov Web site is an 
``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly to EPA without 
going through http://www.regulations.gov, your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional information about EPA's public 
docket visit the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the electronic docket are listed in the 
http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, i.e., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically in http://www.regulations.gov or in hard copy at the Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth 
Street, SW., Atlanta, Georgia 30303-8960. EPA requests that if at all 
possible, you contact the person listed in the FOR FURTHER INFORMATION 
CONTACT section to schedule your inspection. The Regional Office's 
official hours of business are Monday through Friday, 8:30 to 4:30, 
excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Joel Huey, Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth 
Street, SW., Atlanta, Georgia 30303-8960. Joel Huey may be reached by 
phone at (404) 562-9104 or via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. What are the actions EPA is proposing to take?
II. What is the background for EPA's proposed actions?
III. What are the criteria for redesignation?
IV. Why is EPA proposing these actions?
V. What is the effect of EPA's proposed actions?
VI. What is EPA's analysis of the request?
VII. What is EPA's analysis of North Carolina's proposed direct 
PM2.5 insignificance determination and the proposed 
NOX MVEBs for the Hickory area?
VIII. What is the status of EPA's adequacy determination for the 
proposed NOX MVEBs for 2011 and 2021 and for the Direct 
PM2.5 insignificance determination for the Hickory area?
IX. What is EPA's analysis of the proposed 2008 base year emissions 
inventory for the Hickory area?
X. Proposed Actions on the Redesignation Request and Maintenance 
Plan SIP Revision Including Proposed Approval of the 2011 and 2021 
NOX MVEBs and for the Insignificance Determination for 
the Hickory Area
XI. Proposed Action on the Determination that the Hickory Area Has 
Attained the 1997 PM2.5 NAAQS by Its Applicable 
Attainment Date
XII. Statutory and Executive Order Reviews

I. What are the actions EPA is proposing to take?

    EPA is proposing to take the following four separate but related 
actions, some of which involve multiple elements: (1) To redesignate 
the Hickory Area to attainment for the 1997 Annual PM2.5 
NAAQS, provided EPA approves the emissions inventory submitted with the 
maintenance plan as well as the NCCSA, which is the subject of separate 
Federal rulemaking action; (2) to approve, under section 172(c)(3) of 
the CAA, the emissions inventory submitted with the maintenance plan; 
(3) to approve into the North Carolina SIP, under section 175A of the 
CAA, Hickory's 1997 Annual PM2.5 NAAQS maintenance plan, 
including the associated MVEBs (EPA is also notifying the public of the 
status of EPA's adequacy determination for the Hickory Area MVEBs); and 
(4) to determine, pursuant to section 179(c) of the CAA, that the 
Hickory Area attained the 1997 PM2.5 NAAQS by its attainment 
date of April 5, 2010.
    On January 5, 2010, at 75 FR 230, EPA determined that the Hickory 
Area was attaining the 1997 PM2.5 NAAQS. EPA is now 
proposing to determine that the Area is continuing to attain the 1997 
PM2.5 NAAQS and to take several additional related actions 
regarding the Area, which are summarized below and described in greater 
detail throughout this notice of proposed rulemaking.
    First, EPA proposes to determine that, if EPA's proposed approvals 
of the 2008 baseline emissions inventory for the Hickory Area and the 
NCCSA Federal rulemaking action are finalized, the Area has met the 
requirements for redesignation under section 107(d)(3)(E) of the CAA. 
In this action, EPA is proposing to approve a request to change the 
legal designation of Catawba County in the Hickory Area from 
nonattainment to attainment for the 1997 Annual PM2.5 NAAQS. 
The emissions inventory is being proposed for approval today, and the 
NCCSA rules were proposed for approval in a separate action on June 22, 
2011 (76 FR 36468).
    Second, EPA is proposing to approve North Carolina's 2008 emissions 
inventory for the Hickory Area (under CAA section 172(c)(3)). North 
Carolina selected 2008 as the attainment emissions inventory year for 
the Hickory Area. This attainment inventory identifies a level of 
emissions in the Area that is sufficient to attain the 1997 Annual 
PM2.5 NAAQS and is a current, comprehensive inventory that 
meets the requirements of section 172(c)(3).
    Third, subject to EPA's final approval of the NCCSA into the SIP, 
EPA is proposing to approve North Carolina's 1997 Annual 
PM2.5 NAAQS maintenance plan for the Hickory Area as meeting 
the requirements of CAA section 175A (such approval being one of the 
CAA criteria for redesignation to attainment status). The maintenance 
plan is designed to help keep the

[[Page 58212]]

Hickory Area in attainment of the 1997 Annual PM2.5 NAAQS 
through 2021. Consistent with the CAA, the maintenance plan that EPA is 
proposing to approve today also includes NOx MVEBs for the years 2011 
and 2021 and an insignificance determination for the mobile source 
contribution of direct PM2.5 to the air quality problem in 
the Hickory Area. EPA is proposing to approve into the North Carolina 
SIP the 2011 and 2021 MVEBs that are included as part of North 
Carolina's maintenance plan for the 1997 Annual PM2.5 NAAQS 
and the insignificance determination for the mobile source contribution 
of direct PM2.5 emissions in the Area.
    On a related matter to this third action, EPA is also notifying the 
public of the status of EPA's adequacy process (Adequacy) for the 
newly-established NOx MVEBs for 2011 and 2021 for the Hickory Area and 
the mobile source insignificance determination for direct 
PM2.5 emissions. The Adequacy comment period for the Hickory 
Area 2011 and 2021 MVEBs began on November 23, 2010, with EPA's posting 
of the availability of this submittal on EPA's Adequacy Web site 
(http://www.epa.gov/otaq/stateresources/transconf/currsips.htm). The 
Adequacy comment period for these MVEBs and the insignificance 
determination for direct PM2.5 emission contribution from 
motor vehicles closed on December 23, 2010, and EPA received no adverse 
comments. Please see section VIII of this proposed rulemaking for 
further explanation of this process and for more details on the MVEBs 
determination and the insignificance determination.
    Fourth and separate from the action to redesignate the Area, EPA is 
proposing to determine, based on quality-assured and certified 
monitoring data for the 2007-2009 monitoring period, that the Hickory 
Area has attained the 1997 annual PM2.5 NAAQS by its 
applicable attainment date of April 5, 2010.
    Today's notice of proposed rulemaking is in response to North 
Carolina's December 18, 2009, SIP submittal and subsequent supplement 
of December 22, 2010. Those documents address the specific issues 
summarized above and the necessary elements described in section 
107(d)(3)(E) of the CAA for redesignation of the Hickory Area to 
attainment for the 1997 Annual PM2.5 NAAQS.

II. What is the background for EPA's proposed actions?

    Fine particle pollution can be emitted directly or formed 
secondarily in the atmosphere. The main precursors of PM2.5 
are sulfur dioxide (SO2), NOx, ammonia and volatile organic 
compounds (VOCs). Unless otherwise noted by the State or EPA, ammonia 
and VOCs are presumed to be insignificant contributors to 
PM2.5 formation, whereas SO2 and NOX 
are presumed to be significant contributors to PM2.5 
formation. Sulfates are a type of secondary particle formed from 
SO2 emissions of power plants and industrial facilities. 
Nitrates, another common type of secondary particle, are formed from 
NOx emissions of power plants, automobiles, and other combustion 
sources.
    On July 18, 1997, EPA promulgated the first air quality standards 
for PM2.5. EPA promulgated an annual standard at a level of 
15 micrograms per cubic meter ([mu]g/m\3\), based on a three-year 
average of annual mean PM2.5 concentrations. In the same 
rulemaking, EPA promulgated a 24-hour standard of 65 [mu]g/m\3\, based 
on a three-year average of the 98th percentile of 24-hour 
concentrations. On October 17, 2006, at 71 FR 61144, EPA retained the 
annual average NAAQS at 15 [mu]g/m\3\ but revised the 24-hour NAAQS to 
35 [mu]g/m\3\, based again on the three-year average of the 98th 
percentile of 24-hour concentrations.\1\ Under EPA regulations at 40 
CFR part 50, the primary and secondary 1997 Annual PM2.5 
NAAQS are attained when the annual arithmetic mean concentration, as 
determined in accordance with 40 CFR part 50, Appendix N, is less than 
or equal to 15.0 [mu]g/m\3\ at all relevant monitoring sites in the 
subject area over a 3-year period.
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    \1\ In response to legal challenges of the annual standard 
promulgated in 2006, the United States Court of Appeals for the 
District of Columbia Circuit (D.C. Circuit) remanded this NAAQS to 
EPA for further consideration. See American Farm Bureau Federation 
and National Pork Producers Council, et al. v. EPA, 559 F.3d 512 
(D.C. Cir. 2009). However, given that the 1997 and 2006 annual NAAQS 
are essentially identical, attainment of the 1997 Annual NAAQS would 
also indicate attainment of the remanded 2006 Annual NAAQS.
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    On January 5, 2005, at 70 FR 944, and as supplemented on April 14, 
2005, at 70 FR 19844, EPA designated the Hickory Area as nonattainment 
for the 1997 Annual PM2.5 NAAQS. In that action, EPA defined 
the 1997 PM2.5 Hickory Area to include Catawba County in its 
entirety. On November 13, 2009, at 74 FR 58688, EPA promulgated 
designations for the 24-hour standard established in 2006, designating 
the Hickory Area as attaining this NAAQS. That action clarified that 
the Hickory Area was also attaining the 24-hour NAAQS promulgated in 
1997. EPA did not promulgate designations for the annual average NAAQS 
promulgated in 2006 since the NAAQS was essentially identical to the 
annual PM2.5 NAAQS promulgated in 1997. Therefore, the 
Hickory Area is designated nonattainment only for the annual NAAQS 
promulgated in 1997, and today's action only addresses this 
designation.
    All 1997 PM2.5 NAAQS areas were designated under subpart 
1 of title I, part D, of the CAA. Subpart 1 contains the general 
requirements for nonattainment areas for any pollutant governed by a 
NAAQS and is less prescriptive than the other subparts of title I, part 
D. On April 25, 2007, at 72 FR 20664, EPA promulgated its 
PM2.5 Implementation Rule, codified at 40 CFR part 51, 
subpart Z, in which the Agency provided guidance for state and tribal 
plans to implement the 1997 PM2.5 NAAQS. This rule, at 40 
CFR 51.1004(c), specifies some of the regulatory consequences of 
attaining the NAAQS, as discussed below.
    On May 12, 2005, EPA published the Clean Air Interstate Rule 
(CAIR), which addressed the interstate transport requirements of the 
CAA and required states to significantly reduce SO2 and NOx 
emissions from power plants (70 FR 25162). The associated Federal 
Implementation Plans (FIPs) were published on April 28, 2006 (71 FR 
25328). However, on July 11, 2008, the D.C. Circuit Court issued its 
decision to vacate and remand both CAIR and the associated CAIR FIPs in 
their entirety (North Carolina v. EPA, 531 F.3d 836 (D.C. Cir., 2008)). 
EPA petitioned for rehearing, and the Court issued an order remanding 
CAIR to EPA without vacating either CAIR or the CAIR FIPs (North 
Carolina v. EPA, 550 F.3d 1176 (D.C. Cir., 2008)). The Court left CAIR 
in place to ``temporarily preserve the environmental values covered by 
CAIR'' until EPA replaces it with a rule consistent with the Court's 
opinion (id. at 1178). The Court directed EPA to ``remedy CAIR's 
flaws'' consistent with its July 11, 2008, opinion but declined to 
impose a schedule on EPA for completing that action (id). As a result 
of these court rulings, the power plant emission reductions that 
resulted solely from the development, promulgation, and implementation 
of CAIR, and the associated contribution to air quality improvement 
that occurred solely as a result of CAIR in the Hickory Area could not 
be considered to be permanent.
    On August 8, 2011, EPA published the Cross State Air Pollution Rule 
(CSAPR) in the Federal Register under the title, ``Federal 
Implementation Plans to Reduce Interstate Transport of Fine Particulate 
Matter and Ozone in 27 States; Correction of SIP Approvals for 22 
States'' (hereafter the ``Cross-State Air Pollution Rule'' (CSAPR)) (76 
FR

[[Page 58213]]

48208, August 8, 2011) to address interstate transport of emissions and 
resulting secondary air pollutants and to replace CAIR. The CAIR 
emission reduction requirements limit emissions in North Carolina and 
states upwind of North Carolina through 2011 and the CSAPR requires 
similar or greater reductions in the relevant areas in 2012 and beyond. 
The emission reductions that the CSAPR mandates may be considered to be 
permanent and enforceable. In turn, the air quality improvement in the 
Hickory Area that has resulted from EGU emission reductions associated 
with CAIR (as well as the substantial further air quality improvement 
that would be expected to result from full implementation of the CSAPR) 
may also be considered to be permanent and enforceable. EPA proposes 
that the requirement in section 107(d)(3)(E)(iii) has now been met 
because the emission reduction requirements of CAIR address emissions 
through 2011 and EPA has now promulgated CSAPR which requires similar 
or greater reductions in the relevant areas in 2012 and beyond. Because 
the emission reduction requirements of CAIR are enforceable through the 
2011 control period, and because CSAPR has now been promulgated to 
address the requirements previously addressed by CAIR and gets similar 
or greater reductions in the relevant areas in 2012 and beyond, EPA is 
proposing to determine that the emission reductions that led to 
attainment in the Hickory nonattainment area can now be considered 
permanent and enforceable. Therefore, EPA propose to find that the 
transport requirement of CAA section 107(d)(3)(E)(iii) has been met for 
the Hickory Area.
    The 3-year ambient air quality data for 2006-2008 indicated no 
violations of the 1997 PM2.5 NAAQS for the Hickory Area. As 
a result, on December 18, 2009, and as supplemented on December, 22, 
2010, North Carolina requested redesignation of the Hickory Area to 
attainment for the 1997 Annual PM2.5 NAAQS. The 
redesignation request included three years of complete, quality-assured 
ambient air quality data for the 1997 Annual PM2.5 NAAQS for 
2006-2008, indicating that the 1997 Annual PM2.5 NAAQS had 
been achieved for the Hickory Area. Under the CAA, nonattainment areas 
may be redesignated to attainment if sufficient, complete, quality-
assured data is available for the Administrator to determine that the 
area has attained the standard and the area meets the other CAA 
redesignation requirements in section 107(d)(3)(E). From 2005 through 
the present, the monitored annual average PM2.5 values for 
the Hickory Area have declined such that the Area is attaining the 1997 
Annual PM2.5 NAAQS. On January 5, 2010, EPA determined that 
the Hickory Area had attained the 1997 Annual PM2.5 NAAQS 
(75 FR 230). While annual PM2.5 concentrations are dependent 
on a variety of conditions, the overall downtrend in annual 
PM2.5 concentrations in the Hickory Area can be attributed 
to the reduction of SO2 emissions, as will be discussed in 
more detail in section VI of this proposed rulemaking. EPA is now 
proposing to find that the Hickory Area continues to attain the 1997 
PM2.5 NAAQS.

III. What are the criteria for redesignation?

    The CAA provides the requirements for redesignating a nonattainment 
area to attainment. Specifically, section 107(d)(3)(E) of the CAA 
allows for redesignation provided the following criteria are met: (1) 
The Administrator determines that the area has attained the applicable 
NAAQS; (2) the Administrator has fully approved the applicable 
implementation plan for the area under section 110(k); (3) the 
Administrator determines that the improvement in air quality is due to 
permanent and enforceable reductions in emissions resulting from 
implementation of the applicable SIP and applicable Federal air 
pollutant control regulations and other permanent and enforceable 
reductions; (4) the Administrator has fully approved a maintenance plan 
for the area as meeting the requirements of section 175A; and (5) the 
state containing such area has met all requirements applicable to the 
area under section 110 and part D of title I of the CAA.
    EPA has provided guidance on redesignation in the General Preamble 
for the Implementation of title I of the CAA Amendments of 1990 (April 
16, 1992, 57 FR 13498, and supplemented on April 28, 1992, 57 FR 18070) 
and has provided further guidance on processing redesignation requests 
in the following documents:
    1. ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (hereafter referred to as the 
``Calcagni Memorandum'');
    2. ``State Implementation Plan (SIP) Actions Submitted in Response 
to Clean Air Act (CAA) Deadlines,'' Memorandum from John Calcagni, 
Director, Air Quality Management Division, October 28, 1992; and
    3. ``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.

IV. Why is EPA proposing these actions?

    On December 18, 2009, and as supplemented on December 22, 2010, the 
State of North Carolina, through DAQ, requested redesignation of the 
Hickory Area to attainment for the 1997 Annual PM2.5 NAAQS. 
EPA's evaluation indicates that the Hickory Area has attained the 1997 
Annual PM2.5 NAAQS. If EPA finalizes approval of the 
emissions inventory and the NCCSA rulemaking, the Area will meet the 
requirements for redesignation set forth in section 107(d)(3)(E), 
including the maintenance plan requirements under section 175A of the 
CAA. As a result, EPA is proposing to take the first three related 
actions previously summarized.
    The fourth action, to determine that the Area has attained the 1997 
Annual PM2.5 NAAQS by its attainment date, is being proposed 
in accordance with section 179(c)(1) of the CAA based upon EPA's review 
of the data for 2007-2009. Section 179(c)(1) reads as follows: ``As 
expeditiously as practicable after the applicable attainment date for 
any nonattainment area, but not later than 6 months after such date, 
the Administrator shall determine, based on the area's air quality as 
of the attainment date, whether the area attained the standard by that 
date.'' EPA proposes to determine that the Area attained the 1997 
annual PM2.5 NAAQS by its applicable attainment date of 
April 5, 2010.

V. What is the effect of EPA's proposed actions?

    EPA's proposed actions establish the basis upon which EPA may take 
final action on the North Carolina submittal being proposed for 
approval today. Approval of North Carolina's redesignation request 
would change the legal designation of Catawba County in North Carolina 
for the 1997 Annual PM2.5 NAAQS, found at 40 CFR part 81, 
from nonattainment to attainment. Approval of North Carolina's request 
would also incorporate into the North Carolina SIP a plan for 
maintaining the 1997 Annual PM2.5 NAAQS in the Hickory Area 
through 2021. The maintenance plan includes, among other components, 
contingency measures to remedy potential future violations of the 1997 
Annual PM2.5

[[Page 58214]]

NAAQS. Approval of North Carolina's maintenance plan would also result 
in approval of the NOX MVEBs and the direct PM2.5 
mobile source insignificance determination. The maintenance plan also 
establishes NOx MVEBs for 2011 and 2021 for the Hickory Area of 
3,996,601 kilograms per year (kg/yr) and 2,236,028 kg/yr, respectively. 
Final action would also approve the Area's emissions inventory under 
section 172(c)(3). Additionally, EPA is notifying the public of the 
status of its adequacy determination for the NOX MVEBs for 
2011 and 2021 and the direct PM2.5 mobile source 
insignificance determination pursuant to 40 CFR 93.118(f)(1).

VI. What is EPA's analysis of the request?

    As stated above, in accordance with the CAA, EPA proposes in 
today's action to: (1) Redesignate the Hickory Area to attainment for 
the 1997 Annual PM2.5 NAAQS; (2) approve the Hickory Area 
emissions inventory submitted with the maintenance plan; (3) approve 
into the North Carolina SIP Hickory's 1997 Annual PM2.5 
NAAQS maintenance plan, including the associated MVEBs; and (4) 
determine that the Hickory Area attained the 1997 PM2.5 
NAAQS by its attainment date of April 5, 2010. The first three of these 
actions are based upon EPA's determination that the Hickory Area 
continues to attain the 1997 Annual PM2.5 NAAQS and that all 
other redesignation criteria have been met for the Hickory Area, 
provided EPA approves the emissions inventory submitted with the 
maintenance plan and the NCCSA rulemaking. The five redesignation 
criteria provided under CAA section 107(d)(3)(E) are discussed in 
greater detail for the Area in the following paragraphs of this 
section. The fourth action, EPA's determination that the Hickory Area 
attained the 1997 PM2.5 NAAQS by its attainment date of 
April 5, 2010, is discussed in section XI.

Criteria (1)--The Hickory Area Has Attained the 1997 Annual PM2.5 NAAQS

    For redesignating 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)). EPA is proposing to determine that 
the Hickory Area continues to attain the 1997 Annual PM2.5 
NAAQS. For PM2.5, an area may be considered to be attaining 
the 1997 Annual PM2.5 NAAQS if it meets the 1997 Annual 
PM2.5 NAAQS, as determined in accordance with 40 CFR 50.7 
and Appendix N of part 50, based on three complete, consecutive 
calendar years of quality-assured air quality monitoring data. To 
attain these NAAQS, the 3-year average of the annual arithmetic mean 
concentration, as determined in accordance with 40 CFR part 50, 
Appendix N, is less than or equal to 15.0 [micro]g/m\3\ at all relevant 
monitoring sites in the subject area over a 3-year period. The relevant 
data must be collected and quality-assured in accordance with 40 CFR 
part 58 and recorded in the EPA Air Quality System (AQS). The monitors 
generally should have remained at the same location for the duration of 
the monitoring period required for demonstrating attainment.
    On January 5, 2010, at 75 FR 230, EPA determined that the Hickory 
Area was attaining the 1997 PM2.5 NAAQS. EPA reviewed 
PM2.5 monitoring data from monitoring sites in the Hickory 
Area for the 1997 Annual PM2.5 NAAQS for the 2006-2008 and 
the 2007-2009 periods. These data have been quality-assured and are 
recorded in AQS. The annual arithmetic mean PM2.5 
concentrations for the 2006-2008, and the 2007-2009 periods, and the 3-
year averages of these values (i.e., design values) are summarized in 
Table 1.\2\ EPA has reviewed more recent data which indicate that the 
Hickory Area continues to attain the 1997 PM2.5 NAAQS. The 
design values for 2007-2009 and 2008-2010 are also included in Table 1 
and demonstrate that the Hickory Area continues to meet the 
PM2.5 NAAQS and that the ambient concentrations of 
PM2.5 are continuing to decrease in the Area.
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    \2\ The values in Table 1 represent the most current quality 
assured, quality controlled and certified ambient air monitoring 
data available in the EPA AQS database and therefore differ slightly 
from the values submitted in the North Carolina redesignation 
request.

            Table 1--Design Value Concentrations for the Hickory 1997 Annual PM2.5 Nonattainment Area
                                                  [[mu]g/m\3\]
----------------------------------------------------------------------------------------------------------------
                                                         Annual average PM2.5 concentrations  ([mu]g/m \3\)
     County         Site name        Monitor ID   --------------------------------------------------------------
                                                      2006        2007         2008         2009       2010 \3\
----------------------------------------------------------------------------------------------------------------
             Catawba   Hickory      37-035-0004       15.18       14.62        12.75        10.32        11.23
----------------------------------------------------------------------------------------------------------------


 
 
----------------------------------------------------------------------------------------------------------------
                         Three-year PM2.5 design values ([mu]g/m\3\)
----------------------------------------------------------------------------------------------------------------
                                           2006-2008          2007-2009          2008-2010
----------------------------------------------------------------------------------------------------------------
              Catawba     Hickory        37-035-0004               14.2               12.6               11.4
----------------------------------------------------------------------------------------------------------------

    The 3-year design value (2006-2008) submitted by North Carolina for 
redesignation of the Hickory Area is 14.2 [mu]g/m\3\, which meets the 
NAAQS as described above. Preliminary 2010 air quality data that are 
available in AQS, but not yet certified, indicate that the Area 
continues to attain the PM2.5 NAAQS. As mentioned above, on 
January 5, 2010 (75 FR 230) EPA published a clean data determination 
for the Hickory Area for the 1997 PM2.5 NAAQS. In today's 
action, EPA is proposing to determine that the Area is continuing to 
attain the 1997 PM2.5 NAAQS. EPA will not go forward with 
the redesignation if the Area does not continue to attain until the 
time that EPA finalizes the redesignation. As discussed in more detail 
below, the State of North Carolina has committed to continue monitoring 
in the Area in accordance with 40 CFR part 58.
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    \3\ The preliminary PM2.5 ambient air quality data 
for 2010 for the Hickory Area indicates that the Area is attaining 
the NAAQS with 2008-2010 design values. This preliminary data 
includes complete data from all quarters of 2010 but has not yet 
been certified and is thus subject to change.

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[[Page 58215]]

Criteria (5)--North Carolina Has met all Applicable Requirements Under 
Section 110 and Part D of Title I of the CAA; and Criteria (2)--North 
Carolina Has a Fully Approved SIP Under Section 110(k) for the Hickory 
Area

    For redesignating a nonattainment area to attainment, 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 (CAA 
section 107(d)(3)(E)(v)) and that the state has a fully approved SIP 
under section 110(k) for the area (CAA section 107(d)(3)(E)(ii)). EPA 
proposes to find that North Carolina has met all applicable SIP 
requirements for the Hickory Area under section 110 of the CAA (general 
SIP requirements) for purposes of redesignation. EPA also proposes to 
find that the North Carolina SIP satisfies the criterion that it meet 
applicable SIP requirements for purposes of redesignation under part D 
of title I of the CAA (requirements specific to 1997 Annual 
PM2.5 nonattainment areas). Further, EPA proposes to 
determine that the SIP is fully approved with respect to all 
requirements applicable under section 110(k). In making these 
determinations, EPA ascertained which requirements are applicable to 
the Area and, if applicable, that they are fully approved under the 
CAA. For the purposes of review of the State's redesignation request, 
the SIP needs only to be fully approved with respect to requirements 
that were applicable prior to submittal of the complete redesignation 
request.
a. Hickory Area Has Met All Applicable Requirements Under Section 110 
and Part D of Title I of the CAA
    General SIP requirements. Section 110(a)(2) of title I of the CAA 
delineates the general requirements for a SIP, which include 
enforceable emissions limitations and other control measures, means, or 
techniques; provisions for the establishment and operation of 
appropriate devices necessary to collect data on ambient air quality; 
and programs to enforce the limitations. General SIP elements and 
requirements are delineated in section 110(a)(2) of title I, part A of 
the CAA. These requirements include, but are not limited to, the 
following: submittal of a SIP that has been adopted by the state after 
reasonable public notice and hearing; provisions for establishment and 
operation of appropriate procedures needed to monitor ambient air 
quality; implementation of a source permit program; provisions for the 
implementation of part C requirements (Prevention of Significant 
Deterioration (PSD)) and provisions for the implementation of part D 
requirements (New Source Review (NSR) permit programs); provisions for 
air pollution modeling; and provisions for public and local agency 
participation in planning and emission control rule development.
    Section 110(a)(2)(D) requires that SIPs contain certain measures to 
prevent sources in a state from significantly contributing to air 
quality problems in another state. To implement this provision, EPA has 
required certain states to establish programs to address the interstate 
transport of air pollutants (e.g., NOX SIP Call,\4\ CAIR,\5\ 
and the CSAPR). The section 110(a)(2)(D) requirements for a state are 
not linked with a particular nonattainment area's designation and 
classification in that state. EPA believes that the requirements linked 
with a particular nonattainment area's designation and classifications 
are the relevant measures to evaluate in reviewing a redesignation 
request. The transport SIP submittal requirements, where applicable, 
continue to apply to a state regardless of the designation of any one 
particular area in the state. Thus, EPA does not believe that the CAA's 
interstate transport requirements should be construed to be applicable 
requirements for purposes of redesignation. However, as discussed later 
in this notice, addressing pollutant transport from other states is an 
important part of an area's maintenance demonstration.
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    \4\ On October 27, 1998 (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, North Carolina developed rules governing 
the control of NOX emissions from Electric Generating 
Units (EGUs), major non-EGU industrial boilers, major cement kilns, 
and internal combustion engines. On December 27, 2002, EPA approved 
North Carolina's rules as fulfilling Phase I (67 FR 78987).
    \5\ On May 12, 2005 (70 FR 25162), EPA promulgated CAIR which 
required 28 upwind States and the District of Columbia to revise 
their SIPs to include control measures that would reduce emissions 
of SO2 and NOX. Various aspects of CAIR rule 
were petitioned in court and on December 23, 2008, the U.S. Court of 
Appeals for the District of Columbia Circuit remanded CAIR to EPA 
(see North Carolina v. EPA, 550 F.3d 1176 (D.C. Cir. 2008)) which 
left CAIR in place to ``temporarily preserve the environmental 
values covered by CAIR'' until EPA replaces it with a rule 
consistent with the Court's ruling. The Court directed EPA to remedy 
various areas of the rule that were petitioned consistent with its 
July 11, 2008 (see North Carolina v. EPA, 531 F.3d 836 (D.C. Cir., 
July 11, 2008)), opinion, but declined to impose a schedule on EPA 
for completing that action. Id. Therefore, CAIR is currently in 
effect in North Carolina.
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    In addition, EPA believes other section 110 elements that are 
neither connected with nonattainment plan submissions nor linked with 
an area's attainment status are applicable requirements for purposes of 
redesignation. The area will still be subject to these requirements 
after the area is redesignated. The section 110 and part D requirements 
which are linked with a particular area's designation and 
classification are the relevant measures to evaluate in reviewing a 
redesignation request. 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), (62 FR 24826, May 7, 
1997); Cleveland-Akron-Loraine, Ohio, final rulemaking (61 FR 20458, 
May 7, 1996); and Tampa, Florida, final rulemaking at (60 FR 62748, 
December 7, 1995). See also the discussion on this issue in the 
Cincinnati, Ohio, redesignation (65 FR 37890, June 19, 2000), and in 
the Pittsburgh, Pennsylvania, redesignation (66 FR 50399, October 19, 
2001).
    EPA has not yet completed rulemaking on a submittal from North 
Carolina dated April 1, 2008, addressing ``infrastructure SIP'' 
elements required under CAA section 110(a)(2). However, these are 
statewide requirements that are not a consequence of the nonattainment 
status of the Hickory Area. As stated above, EPA believes that section 
110 elements not linked to an area's nonattainment status are not 
applicable for purposes of redesignation. Therefore, notwithstanding 
the fact that EPA has not yet completed rulemaking on North Carolina's 
submittal for the PM2.5 infrastructure SIP elements of 
section 110(a)(2), EPA believes it has approved all SIP elements under 
section 110 that must be approved as a prerequisite for redesignating 
the Hickory Area to attainment.
    Title I, Part D requirements. EPA proposes that with approval of 
North Carolina's base year emissions inventory, which is part of the 
maintenance plan submittal, the North Carolina SIP will meet applicable 
SIP requirements under part D of title I of the CAA. As discussed in 
greater detail below, EPA believes the emissions inventory is 
approvable because the 2008 direct PM2.5, SO2, 
and NOX emissions for North Carolina were developed 
consistent with EPA guidance for emissions inventories and represent a 
comprehensive, accurate and current inventory as required by section 
172(c)(3).
    Part D, subpart 1 applicable SIP requirements. EPA has determined 
that

[[Page 58216]]

if the approval of the base year emissions inventories, discussed in 
section IX of this rulemaking, is finalized, the North Carolina SIP 
will meet the applicable SIP requirements for the Hickory Area for 
purposes of redesignation under title I, part D of the CAA. Subpart 1 
of part D sets forth the basic nonattainment requirements applicable to 
all nonattainment areas. All areas that were designated nonattainment 
for the 1997 Annual PM2.5 NAAQS were designated under this 
subpart of the CAA, and the requirements applicable to them are 
contained in sections 172 and 176.
    For purposes of evaluating this redesignation request, the 
applicable part D, subpart 1 SIP requirements for all nonattainment 
areas are contained in sections 172(c)(1)-(9) and in section 176. A 
thorough discussion of the requirements contained in section 172 can be 
found in the General Preamble for Implementation of title I (57 FR 
13498, April 16, 1992).
    Subpart 1 Section 172 Requirements. Section 172(c)(1) requires the 
plans for all nonattainment areas to provide for the implementation of 
all reasonably available control measures (RACM) as expeditiously as 
practicable and to provide for attainment of the national primary 
ambient air quality standards. EPA interprets this requirement to 
impose a duty on all nonattainment areas to consider all available 
control measures and to adopt and implement such measures as are 
reasonably available for implementation in each area as components of 
the area's attainment demonstration. Under section 172, states with 
nonattainment areas must submit plans providing for timely attainment 
and meeting a variety of other requirements. However, pursuant to 40 
CFR 51.1004(c), EPA's January 5, 2010, determination that the Hickory 
Area was attaining the PM2.5 standard suspended North 
Carolina's obligation to submit most of the attainment planning 
requirements that would otherwise apply. Specifically, the 
determination of attainment suspended North Carolina's obligation to 
submit an attainment demonstration and planning SIPs to provide for 
reasonable further progress (RFP), reasonable available control 
measures, and contingency measures under section 172(c)(9).
    The General Preamble for Implementation of Title I (57 FR 13498, 
April 16, 1992) also discusses the evaluation of these requirements in 
the context of EPA's consideration of a redesignation request. The 
General Preamble sets forth EPA's view of applicable requirements for 
purposes of evaluating redesignation requests when an area is attaining 
a standard (General Preamble for Implementation of Title I (57 FR 
13498, April 16, 1992)).
    Because attainment has been reached in the Hickory Area, no 
additional measures are needed to provide for attainment, and section 
172(c)(1) requirements for an attainment demonstration and RACM are no 
longer considered to be applicable for purposes of redesignation as 
long as the Area continues to attain the standard until redesignation. 
See also 40 CFR 51.1004(c).
    The RFP plan requirement under section 172(c)(2) is defined as 
progress that must be made toward attainment. This requirement is not 
relevant for purposes of redesignation because EPA has determined that 
the Hickory Area has monitored attainment of the 1997 Annual 
PM2.5 NAAQS. See General Preamble, 57 FR 13564. See also 40 
CFR 51.1004 (c). In addition, because the Hickory Area has attained the 
1997 Annual PM2.5 NAAQS and is no longer subject to a RFP 
requirement, the requirement to submit the section 172(c)(9) 
contingency measures is not applicable for purposes of redesignation. 
Id.
    Section 172(c)(3) requires submission and approval of a 
comprehensive, accurate, and current inventory of actual emissions. As 
part of North Carolina's redesignation request for the Hickory Area, 
North Carolina submitted a 2008 base year emissions inventory. As 
discussed below in section IX, EPA is proposing to approve the 2008 
base year inventory submitted with the redesignation request as meeting 
the section 172(c)(3) emissions inventory requirement.
    Section 172(c)(4) requires the identification and quantification of 
allowable emissions for major new and modified stationary sources to be 
allowed in an area, and section 172(c)(5) requires source permits for 
the construction and operation of new and modified major stationary 
sources anywhere in the nonattainment area. EPA has 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.'' North Carolina has demonstrated that the 
Hickory Area will be able to maintain the NAAQS without part D NSR in 
effect and therefore North Carolina need not have fully approved part D 
NSR programs prior to approval of the redesignation request. 
Nonetheless, North Carolina currently has a fully-approved part D NSR 
program in place. North Carolina's PSD program will become effective in 
the Hickory Area upon redesignation to attainment. 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, EPA believes the North 
Carolina SIP meets the requirements of section 110(a)(2) applicable for 
purposes of redesignation.
    Section 176 Conformity Requirements. Section 176(c) of the CAA 
requires states to establish criteria and procedures to ensure that 
Federally supported or funded 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 \6\ 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 rules have not been 
approved. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001)(upholding this 
interpretation); see also 60 FR 62748 (December 7, 1995, Tampa, 
Florida). Thus, the Hickory Area has satisfied all applicable 
requirements for purposes of redesignation under

[[Page 58217]]

section 110 and part D of title I of the CAA.
---------------------------------------------------------------------------

    \6\ 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 the MVEBs that are established in control 
strategy SIPs and maintenance plans.
---------------------------------------------------------------------------

b. The Hickory Area Has a Fully Approved Applicable SIP Under Section 
110(k) of the CAA
    If EPA issues a final approval of the base year emissions 
inventories, EPA will have fully approved the applicable North Carolina 
SIP for the Hickory Area under section 110(k) of the CAA for all 
requirements applicable for purposes of redesignation for the 1997 
Annual PM2.5 NAAQS. EPA may rely on prior SIP approvals in 
approving a redesignation request (see Calcagni Memorandum at p. 3; 
Southwestern Pennsylvania Growth Alliance v. Browner, 144 F.3d 984, 
989-90 (6th Cir. 1998); Wall, 265 F.3d 426) plus any additional 
measures it may approve in conjunction with a redesignation action (see 
68 FR 25426 (May 12, 2003) and citations therein). Following passage of 
the CAA of 1970, North Carolina has adopted and submitted, and EPA has 
fully approved at various times, provisions addressing the various 1997 
Annual PM2.5 NAAQS SIP elements applicable in the Hickory 
Area (April 17, 1980, 45 FR 26038; August 27, 1981, 46 FR 43137; 
October 11, 1985, 50 FR 41501; November 19, 1986, 51 FR 41786; and 
December 19, 1986, 51 FR 45468).
    As indicated above, EPA believes that the section 110 elements that 
are neither connected with nonattainment plan submissions nor linked to 
an area's nonattainment status are not applicable requirements for 
purposes of redesignation. In addition, EPA believes that since the 
part D subpart 1 requirements did not become due prior to submission of 
the redesignation request, they are also not applicable requirements 
for purposes of redesignation. Sierra Club v. EPA, 375 F.3d 537 (7th 
Cir. 2004); 68 FR 25424, 25427 (May 12, 2003) (redesignation of the St. 
Louis-East St. Louis Area to attainment of the 1-hour ozone NAAQS). 
With the approval of the emissions inventory, EPA will have approved 
all Part D subpart 1 requirements applicable for purposes of this 
redesignation.

Criteria (3)--The Air Quality Improvement in the Hickory Area 1997 
Annual PM2.5 NAAQS Nonattainment Area Is Due to Permanent and 
Enforceable Reductions in Emissions Resulting From Implementation of 
the SIP and Applicable Federal Air Pollution Control Regulations and 
Other Permanent and Enforceable Reductions

    For redesignating a nonattainment area to attainment, 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 implementation of the SIP and applicable Federal air pollution 
control regulations and other permanent and enforceable reductions (CAA 
section 107(d)(3)(E)(iii)). EPA believes North Carolina has 
demonstrated that the observed air quality improvement in the Hickory 
Area is due to permanent and enforceable reductions resulting from 
implementation of the SIP, Federal measures, and other state adopted 
measures.
    Fine particulate matter, or PM2.5, refers to airborne 
particles less than or equal to 2.5 micrometers in diameter. Although 
treated as a single pollutant, fine particles come from many different 
sources and are composed of many different compounds. One of the 
largest components of PM2.5 in the southeastern United 
States is sulfate, which is formed through various chemical reactions 
from the precursor SO2. The other major component of 
PM2.5 is organic carbon, which originates predominantly from 
biogenic emission sources. Nitrate, which is formed from the precursor 
NOX, is also a component of PM2.5. Crustal 
materials from windblown dust and elemental carbon from combustion 
sources are less significant contributors to total PM2.5.
    State and Federal measures enacted in recent years have resulted in 
permanent emission reductions. Most of these emission reductions are 
enforceable through regulations. A few non-regulatory measures also 
result in emission reductions.
    The Federal measures that have been implemented include:
    Tier 2 vehicle standards. In addition to requiring NOX 
controls, the Tier 2 rule reduced the allowable sulfur content of 
gasoline to 30 parts per million (ppm) starting in January of 2006. 
Most gasoline sold in North Carolina prior to this had a sulfur content 
of approximately 300 ppm.
    Heavy-duty gasoline and diesel highway vehicle standards. The 
second phase of the standards and testing procedures, which began in 
2007, reduces particulate matter (PM) and NOX from heavy-
duty highway engines and also reduces highway diesel fuel sulfur 
content to 15 ppm. The total program is expected to achieve a 90 and 95 
percent reduction in PM and NOX emissions from heavy-duty 
highway engines, respectively.
    Nonroad spark-ignition engines and recreational engines standards. 
Tier 1 of this standard, implemented in 2004, and Tier 2, implemented 
in 2007, have reduced and will continue to reduce PM emissions.
    Large nonroad diesel engine standards. Promulgated in 2004, this 
rule is being phased in between 2008 and 2014. This rule will reduce 
sulfur content in nonroad diesel fuel and, when fully implemented, will 
reduce NOX and direct PM2.5 emissions by over 90 
percent from these engines.
    CAIR and the Cross-State Air Pollution Rule (CSAPR). As previously 
discussed, the remanded CAIR, originally promulgated to reduce 
transported pollution, was left in place to ``temporarily preserve the 
environmental values covered by CAIR'' until EPA replaced it with a 
rule consistent with the Court's opinion. To remedy CAIR's flaws, EPA 
promulgated the final CSAPR on August 8, 2011. CSAPR addresses the 
interstate transport requirements of the CAA with respect to the 1997 
ozone, 1997 PM2.5 and 2006 PM2.5 NAAQS. As noted 
previously, the requirements of CAIR address emissions thru the 2011 
control period and CSAPR requires similar or greater emission 
reductions in the relevant areas in 2012 and beyond.
    The state measures that have been implemented to date and relied 
upon by North Carolina to demonstrate attainment and/or maintenance 
include:
    NCCSA. The primary state-adopted measure is the NCCSA, enacted in 
June 2002. The NCCSA includes a schedule of system-wide caps on 
emissions of NOX and SO2, the first of which 
became effective in 2007, and has no provision for the trading of 
pollution credits from one utility to another. According to North 
Carolina, this rule requires coal-fired power plants in the State to 
reduce annual NOX emissions from 245,000 tons in 1998 to 
56,000 tons by 2009 (a 77 percent reduction) and to reduce annual 
SO2 emissions from 489,000 tons in 1998 to 250,000 tons by 
2009 (a 49 percent reduction), and further SO2 reductions to 
130,000 tons in 2013 (a 73 percent reduction). Although there are no 
power plants located within the Hickory Area, there are power plants 
located around the Area. On August 21, 2009, North Carolina submitted a 
SIP revision to incorporate specific provisions of the NCCSA into the 
Federally approved SIP. On June 22, 2011, EPA proposed approval of the 
NCCSA rules as a revision to the SIP and expects to take final action 
on it in a rulemaking separate from today's proposed action but prior 
to any final action on this redesignation.
    Another significant rulemaking which has led to permanent and 
enforceable reductions is the NOX SIP Call rule. This rule 
was predicted to reduce

[[Page 58218]]

summertime NOX emissions from power plants and other 
industries by over 60 percent in North Carolina by 2006. See Table III-
5 of NOX SIP Call, 63 FR 57356, 57434 (October 27, 1998). 
These emission reductions are state and Federally enforceable.
    Table 2 presents the annual emissions from North Carolina sources 
as recorded in EPA's acid rain database. Since 2002, when the 
NOX controls started coming on-line to meet the 
NOX SIP Call, and later to meet the NCCSA, the annual 
NOX emissions from subject sources have decreased 
dramatically from 145,706 tons per year (tpy) in 2002 to 61,669 tpy in 
2008. In 2009 the emissions decreased to 44,506 tpy--down more than 69 
percent from 2002. Between 2005 and 2008, the annual SO2 
emissions from the utilities in North Carolina decreased by more than 
half from 500,936 tpy to 227,030 tpy, or nearly 274,000 tons reduced. 
In 2009 the emissions were again halved, down 76 percent from 2002. The 
decline in SO2 emissions has coincided with a decline in 
annual PM2.5 concentrations across North Carolina.

   Table 2--Annual Emissions From All NC Sources in the EPA Clean Air
                            Markets Database
------------------------------------------------------------------------
                                         Annual SO2        Annual NOX
                Year                  emissions (tons)  emissions (tons)
------------------------------------------------------------------------
2002................................           462,993           145,706
2003................................           462,041           135,879
2004................................           472,320           124,079
2005................................           500,936           114,300
2006................................           462,143           108,584
2007................................           370,827            64,770
2008................................           227,030            61,669
2009................................           110,948            44,506
------------------------------------------------------------------------

    Other state measures have been implemented that are state 
enforceable but not a part of the Federally-enforceable SIP. Such 
measures contribute to reductions in pollutant emissions, although to a 
lesser extent than the ones identified above, and include the 
following:
    Clean Air Bill. This state legislation expanded the inspection and 
maintenance program from 9 counties to 48 counties and was phased in 
for the Hickory Area from July 1, 2002, through July 1, 2003. This 
program reduces NOX, VOC, and carbon monoxide (CO) 
emissions.
    Open burning. This regulation, originally approved in 1997, 
prohibits the burning of man-made materials throughout the State. 
Additionally, this regulation prohibits open burning of yard waste in 
areas for which the DAQ forecasts an air quality action day. The open 
burning regulation will reduce PM2.5 emissions, as well as 
NOX, VOC and CO emissions.
    Diesel Retrofits. As part of the North Carolina Mobile Source 
Emission Reduction Grants program, a number of cities, counties and 
school districts have installed diesel oxidation catalysts or diesel 
particulate filters on their diesel equipment. The vehicles that have 
been retrofitted include school buses and county fleet trucks used for 
solid waste pickup. These types of filters are designed to reduce PM 
engine emissions, and when used with ultra low sulfur diesel fuel, 
NOX and VOC emissions are also reduced. Even though these 
emission reductions are voluntary and not enforceable, they are still 
considered permanent reductions.
    Diesel Emissions Reduction Act (DERA). DERA provides new diesel 
emissions reduction grant authority for EPA. This funding is used to 
achieve significant reductions in diesel emissions that improve air 
quality and protect public health. The DERA funds that the DAQ has 
received have been used to retrofit, repower, or replace existing 
diesel engines from on-road and nonroad mobile source vehicles and 
equipment. This program will reduce PM, NOX, and VOC 
emissions. Even though these emission reductions are voluntary, they 
are still considered permanent reductions once a retrofit is completed. 
To date, North Carolina has retrofitted over 6,000 diesel school buses. 
In addition to impacting local emissions in the nonattainment area, 
most of these measures impact emissions statewide.
    EPA agrees with North Carolina's assessment that, although 
PM2.5 and PM2.5 precursor reductions within the 
nonattainment area have contributed to improved air quality, the 
majority of the improvement in ambient PM2.5 concentrations 
has resulted from reductions in SO2 emissions from in-state 
coal-fired power plants due to the NCCSA. The annual emissions from 
these facilities have significantly decreased since 2005, with over 
250,000 tons of SO2 emission reductions in 2008 compared to 
2005. EPA's analysis of emissions data available in from the Clean Air 
Markets Division Web site (http://www.epa.gov/airmarkets/) shows that 
the statewide reductions in SO2 emissions are much greater 
than any decreases in emissions that can be attributed to decreases in 
demand associated with reductions in operating hours or heat inputs at 
North Carolina power plants. While coal-fired electric power generation 
in North Carolina decreased 4.8 percent from 2005 to 2008,\7\ 
SO2 emissions from coal-fired electric power plants declined 
46.0 percent during the same period.
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    \7\ Electric Power Annual 2009, DOE/EIA-0348(2009), North 
Carolina Electricity Profile, Tables 5 and 7. April 2011.
---------------------------------------------------------------------------

    The NCCSA reductions took place beginning in 2006, the first year 
of the 3-year attainment period submitted by North Carolina for 
redesignation of the Hickory Area. Since the final compliance date for 
the NCCSA SO2 emissions caps is 2013, future design values 
are expected to continue to decline below the 2006-2008 attaining 
design values. The significant statewide reductions in utility 
SO2 emissions will be permanent and enforceable upon EPA's 
approval of the NCCSA rules into the North Carolina SIP. Further, EPA 
does not have any information to suggest that the decrease in ambient 
PM2.5 concentrations in the Hickory Area is due to unusually 
favorable meteorological conditions. Additionally, the emission 
reductions resulting from the NCCSA discussed above are of a greater 
magnitude than any influence that could be expected from meteorology. 
The 250,000 tons of SO2 emission reductions since 2005 
represents a greater than 41 percent reduction of statewide 
SO2 emissions. It is reasonable to expect that such 
significant reductions have reduced ambient PM2.5 levels 
throughout the State--including in the Hickory Area. Indeed, every 
PM2.5 monitor in the State

[[Page 58219]]

has shown a consistent downward trend during the period from 2006-
2009.\8\
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    \8\ http://www.epa.gov/airtrends/values.html.
---------------------------------------------------------------------------

Criteria (4)--The Hickory Area Has a Fully Approved Maintenance Plan 
Pursuant to Section 175A of the CAA

    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has a fully approved 
maintenance plan pursuant to section 175A of the CAA (CAA section 
107(d)(3)(E)(iv)). In conjunction with its request to redesignate the 
Hickory Area to attainment for the 1997 Annual PM2.5 NAAQS, 
DAQ submitted a SIP revision to provide for the maintenance of the 1997 
Annual PM2.5 NAAQS for at least 10 years after the effective 
date of redesignation to attainment. EPA believes this maintenance plan 
meets the requirements for approval under section 175A of the CAA.
a. What is required in a maintenance plan?
    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 plan must demonstrate continued attainment of 
the applicable NAAQS for at least 10 years after the Administrator 
approves a redesignation to attainment. Eight years after the 
redesignation, the State must submit a revised maintenance plan which 
demonstrates that attainment will continue to be maintained for the 10 
years following the initial 10-year 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 any future 1997 Annual PM2.5 violations. The Calcagni 
Memorandum provides further guidance on the content of a maintenance 
plan, explaining that a maintenance plan should address five 
requirements: the attainment emissions inventory, maintenance 
demonstration, monitoring, verification of continued attainment, and a 
contingency plan. As is discussed more fully below, EPA finds that 
North Carolina's maintenance plan includes all the necessary components 
and is thus proposing to approve it as a revision to the North Carolina 
SIP, provided that EPA takes final action to approve the NCCSA rules.
b. Attainment Emissions Inventory
    The Hickory Area first attained the 1997 Annual PM2.5 
NAAQS based on monitoring data for the 3-year period 2006-2008. North 
Carolina selected 2008 as the attainment emissions inventory year in 
part because it was already in the process of developing some emissions 
inventory data for this year. The attainment inventory identifies a 
level of emissions in the Area that is sufficient to attain the 1997 
Annual PM2.5 NAAQS. North Carolina began development of the 
attainment inventory by first generating a baseline emissions inventory 
for the Hickory Area. As noted above, the year 2008 was chosen as the 
base year for developing a comprehensive emissions inventory for 
primary PM2.5, SO2, and NOX, for which 
projected emissions could be developed for 2011, 2014, 2017, and 2021. 
In addition to comparing the final year of the plan, 2021, to the base 
year, 2008, North Carolina compared interim years to the 2008 baseline 
to demonstrate that these years are also expected to show continued 
maintenance of the annual PM2.5 standard.
    The emissions inventories are composed of four major types of 
sources: point, area, on-road mobile, and non-road mobile. The future 
year emissions inventories have been estimated using projected rates of 
growth in population, traffic, economic activity, expected control 
programs, and other parameters. Non-road mobile emissions estimates 
were based on the EPA's NONROAD2008, a non-road mobile model, with the 
exception of railroad locomotive and aircraft engine emissions. The 
railroad locomotive and aircraft engine emissions were estimated by 
taking activity data, such as landings and takeoffs, and multiplying by 
an emission factor. On-road mobile source emissions were calculated 
using EPA's MOVES mobile emission factors model. The 2008 
SO2, NOX and PM2.5 emissions for the 
Hickory Area, as well as the emissions for other years, were developed 
consistent with EPA guidance and are summarized in Tables 3 and 4 of 
the following subsection discussing the maintenance demonstration.
c. Maintenance Demonstration
    The December 18, 2009, final submittal and December 22, 2010, 
supplement included a maintenance plan for the Hickory Area. This 
demonstration:
    (i) Shows compliance with and maintenance of the annual 
PM2.5 standard by providing information to support the 
demonstration that current and future emissions of SO2, NOx 
and PM2.5 remain at or below 2008 SO2, 
NOX, and PM2.5 emissions levels.
    (ii) Uses 2008 as the attainment year and includes future emission 
inventory projections for 2011, 2014, 2017, and 2021, as shown in 
Tables 3 and 4 below.
    (iii) Identifies an ``out year'' at least 10 years (and beyond) 
after the time necessary for EPA to review and approve the maintenance 
plan. Per 40 CFR part 93, NOX MVEBs were established for the 
last year (2021) of the maintenance plan.\9\ Additionally, North 
Carolina chose, through interagency consultation, to establish 
NOX MVEBs for 2011 (see section VII below).
---------------------------------------------------------------------------

    \9\ PM2.5 MVEBs are not required for the Hickory Area 
due to the insignificance determination for the motor vehicle 
PM2.5 contribution.
---------------------------------------------------------------------------

    (iv) Provides, as shown in Table 4 below, the actual and projected 
emissions inventories, in tpy, for the Hickory Area.

Table 3--Actual and Projected NOX, SO2, and PM2.5 Emissions From All Source Categories for Catawba County in the
                                               Hickory Area (tpy)
----------------------------------------------------------------------------------------------------------------
                                                              2008       2011       2014       2017       2021
----------------------------------------------------------------------------------------------------------------
NOX
    Point................................................      13310      10549      10548      10548      10548
    Area.................................................        662        614        566        520        454
    On-road Mobile.......................................       4982       4005       3240       2591       2054
    Non-road Mobile......................................       1173        922        700        551        453
                                                          ------------------------------------------------------
        Total............................................      20127      16090      15054      14210      13509
SO2

[[Page 58220]]

 
    Point................................................       6189       6187       6186       6184       6183
    Area.................................................       2263       2037       1808       1580       1277
    On-road Mobile.......................................         35         20         18         19         20
    Non-road Mobile......................................         18          6          4          3          4
                                                          ------------------------------------------------------
        Total............................................       8505       8250       8016       7786       7484
PM2.5
    Point................................................       6976       6975       6975       6973       6971
    Area.................................................        682        658        629        606        559
    On-road Mobile.......................................        166        127        107         89         73
    Non-road Mobile......................................         70         67         57         46         38
                                                          ------------------------------------------------------
        Total............................................       7894       7827       7768       7714       7641
----------------------------------------------------------------------------------------------------------------


    Table 4--Emissions and Maintenance Summary for the Hickory PM2.5
                           Nonattainment Area
------------------------------------------------------------------------
                                                                 PM2.5
                  Year                   NOX (tpy)  SO2 (tpy)    (tpy)
------------------------------------------------------------------------
2008...................................     20,127      8,505      7,894
2011...................................     16,090      8,250      7,827
2014...................................     15,054      8,016      7,768
2017...................................     14,210      7,786      7,714
2021...................................     13,509      7,484      7,641
Difference from 2008 to 2021...........     -6,618     -1,021       -253
------------------------------------------------------------------------

    Tables 3 and 4 summarize the 2008 and future projected emissions of 
direct PM2.5 and precursors from the counties in the Hickory 
Area. In situations where local emissions are the primary contributor 
to nonattainment, the ambient air quality standard should not be 
violated in the future as long as emissions from within the 
nonattainment area remain at or below the baseline with which 
attainment was achieved. In the Hickory Area, however, the 
preponderance of the nonattainment problem is due to SO2 
emissions from power plants outside the nonattainment area, but within 
North Carolina. As shown by the speciation data in the State's 
submittal,\10\ sulfates are one of the largest contributors to ambient 
PM2.5 in the Hickory Area and in the State as a whole, 
contributing about 30 percent of the total PM2.5 mass. 
Sulfates are formed through various SO2 reactions in the 
atmosphere. According to EPA's National Emissions Inventory for 2005 
and Clean Air Markets Division acid rain database, over 90 percent of 
SO2 emissions in North Carolina were from stationary point 
sources, greater than 80 percent of which were from power plants 
reporting to the acid rain program.\11\ Organic carbon, which also 
contributes about 30 percent of the total PM2.5 mass in the 
Hickory Area, is predominately attributed to biogenic emission sources. 
The next largest contributor in the Hickory Area is an ``other'' group 
that is attributed to water, sea salts, and other trace materials and 
which accounts for about 17 percent of the mass.
---------------------------------------------------------------------------

    \10\ SIP submittal figures 2-2 and 4-1.
    \11\ EPA's National Emissions Inventory data is available on the 
Web site: http://www.epa.gov/ttn/chief/eiinformation.html. The acid 
rain database can be accessed on EPA's Clean Air Markets Division 
Web site: http://www.epa.gov/airmarkets/.
---------------------------------------------------------------------------

    Because the most significant sources contributing to ambient 
PM2.5 levels in the Hickory Area are utilities located 
outside the nonattainment area, but within North Carolina, reductions 
in emissions from these point sources provide the greatest potential 
for reductions in ambient PM2.5 concentrations. For this 
reason, the State presented information in its submittal (as discussed 
above in the section on permanent and enforceable reductions) showing 
that the NCCSA requires these sources to reduce their emissions by 
substantial amounts that are more than sufficient for the Hickory Area 
to demonstrate attainment and maintenance of the PM2.5 NAAQS 
at issue here. EPA has proposed rulemaking action to approve specific 
provisions of the NCCSA into the North Carolina SIP, and final approval 
would assure that power plants within North Carolina will remain 
sufficiently regulated to provide for continued maintenance as required 
by CAA section 175A.
    With regard to emissions generated outside North Carolina which 
have the potential to impact the Hickory Area, EPA notes several recent 
emissions reductions that have occurred or will occur in nearby states. 
First, On April 14, 2011, EPA announced a settlement with the Tennessee 
Valley Authority (TVA) to resolve alleged Clean Air Act violations at 
11 of its coal-fired plants in Alabama, Kentucky, and Tennessee.\12\ 
The settlement will require TVA to invest a TVA estimated $3 billion to 
$5 billion on new and upgraded state-of-the-art pollution controls. 
When fully implemented, the pollution controls and other required 
actions will address 92 percent of TVA's coal-fired power plant 
capacity, reducing emissions of NOX by 69 percent and 
SO2 by 67 percent from TVA's 2008 emission levels. The 
settlement will also significantly reduce particulate matter and carbon 
dioxide (CO2) emissions. The consent decree also requires 
that operation of 18 coal-fired units at the Johnsonville, John Sevier, 
and Widows Creek plants be phased out by 2017.
---------------------------------------------------------------------------

    \12\ Alabama, et al. v. TVA, No. 3:11-CV-00170, (E.D. TN 2011) 
(Consent Decree), available at http://www.epa.gov/compliance/resources/decrees/civil/caa/tvacoal-fired-cd.pdf.
---------------------------------------------------------------------------

    Second, the State of Georgia has recently passed a multi-pollutant 
rule to reduce NOX and SO2 emissions from

[[Page 58221]]

many of its coal-fired EGUs.\13\ Third, the consent decrees for 
Dominion Power \14\ and American Electric Power (AEP) \15\ in the 
Commonwealth of Virginia require further controls of NOX and 
SO2 emissions at those power plants. On April 21, 2003, the 
Department of Justice and EPA announced a settlement against Virginia 
Electric and Power Company (VEPCO a subsidiary of Dominion Resources, 
Inc.). This settlement requires VEPCO, one of the nation's largest 
coal-fired electric utilities, to install new pollution control 
equipment and to upgrade existing controls on several units in its 
system, thus resulting in substantial air pollution reductions. The 
settlement covers eight VEPCO plants, six in Virginia and two in West 
Virginia, comprising twenty electricity-generating units. These eight 
plants emitted over 350,000 tons of SO2 and NOX 
in 2000. The settlement will reduce these emissions to approximately 
86,500 tpy SO2 and 26,000 tpy NOX. On October 9, 
2007, the United States, along with eight individual states and 
thirteen citizen groups, announced a settlement agreement with AEP that 
that mandates emissions reductions at sixteen of AEP's coal-fired power 
plants (46 units) located in Indiana, Kentucky, Ohio, Virginia, and 
West Virginia. NOX emissions from subject plants will be 
reduced by greater than 68 percent by 2016 as compared to 2006 levels. 
Likewise, by 2018 SO2 emissions will decrease by greater 
than 78 percent as compared to 2006 levels.
---------------------------------------------------------------------------

    \13\ Georgia Rule 391-3-1-.02(2)(uuu), ``SO2 
Emissions from Electric Utility Steam Generating Units,'' was first 
adopted by the Georgia Board of Natural Resources January 28, 2009, 
with an amendment adopted June 24, 2009.
    \14\ U.S. et al. v. Va. Elec. & Power Co., No. 1:03-cv-00517-LMB 
(E.D. Va. 2003) (Consent Decree), available at http://www.epa.gov/compliance/resources/decrees/civil/caa/vepcocd.pdf.
    \15\ U.S. et al. v. American Elec. Power Serv. Corp., No C2-99-
1250 (E.D. Ohio 2007) (Consent Decree), available at http://www.epa.gov/compliance/resources/decrees/civil/caa/americanelectricpower-cd.pdf.
---------------------------------------------------------------------------

    Finally, EPA has recently finalized the CSAPR to regulate 
interstate transport of power plant emissions. EPA's modeling for the 
final rule indicates that the Hickory Area would maintain the NAAQS 
into the future in the absence of the rule. The 2012 base case run, 
which simulates air quality without CAIR and without a transport rule, 
assumes a 4 million ton increase in SO2 regionally. A 2014 
base case run also assumes no CAIR, but does include additional 
enforceable controls that are required to occur between 2012 and 2014. 
Based on these modeling assessments, PM2.5 concentrations in 
the Hickory Area are still projected to decrease to 12.9 [micro]g/m\3\ 
in 2012 and 12.1 [micro]g/m\3\ in 2014. Though not necessary for 
demonstrating attainment and maintenance in the Hickory Area, the final 
CSAPR will result in additional reductions of NOX and 
SO2 emissions that cross state lines. EPA estimates that by 
2014, power plants in the covered states will reduce annual emissions 
of SO2 by about 2.2 million tons beyond what would have been 
achieved at that time under CAIR. By 2014, we estimate that 
NOX emissions in covered states will be about 500,000 tons 
lower than emissions would have been under CAIR.
    Based on the analysis described above, EPA has concluded that 
impacts on air quality from emissions transported across state lines 
have been adequately addressed for the Hickory Area and that the 
Hickory Area will maintain the annual PM2.5 standard through 
2021. Furthermore, the final CSAPR mandates even greater reductions 
than have already occurred and, more importantly, any reductions in 
PM2.5 in the Hickory Area from the final CSAPR will be in 
excess of those needed to maintain the Annual PM2.5 NAAQS.
    A maintenance plan requires the state to show that projected future 
year emissions will not exceed the level of emissions which led the 
Area to attain the NAAQS. North Carolina has projected emissions as 
described previously and determined that emissions in the Hickory Area 
will remain below those in the attainment year inventory until 2021.
    As discussed further in section VII of this proposed rulemaking, 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. The attainment level of emissions 
is the level of emissions during one of the years in which the Area met 
the NAAQS. North Carolina has decided to allocate a portion of the 
available safety margin to the Area's NOX MVEBs for 2011 and 
2021 for the Hickory Area and has calculated the safety margin in its 
submittal. Specifically, a total of 363,327 kg/year \16\ (400 tpy) and 
372,671 kg/year (411 tpy) of the available NOX safety 
margins are allocated to the 2011 and 2021 MVEB, respectively. The 
remaining safety margins for NOX are 3,637 tpy and 6,207 tpy 
for 2011 and 2021, respectively. This allocation and the resulting 
available safety margin for the Hickory Area are discussed further in 
section VII of this proposed rulemaking.
---------------------------------------------------------------------------

    \16\ Conversion factor from grams to tons = 907185 grams per 
ton.
---------------------------------------------------------------------------

d. Monitoring Network
    There are currently three monitors measuring PM2.5 in 
the Hickory Area. The State of North Carolina, through DAQ, has 
committed to continue operation of the monitors in the Hickory Area in 
compliance with 40 CFR part 58 and have thus addressed the requirement 
for monitoring. EPA approved North Carolina's 2010 monitoring plan on 
September 22, 2010.
e. Verification of Continued Attainment
    The State of North Carolina, through DAQ, has the legal authority 
to enforce and implement the requirements of the Hickory Area 1997 
Annual PM2.5 Maintenance plan. This includes the authority 
to adopt, implement and enforce any subsequent emissions control 
contingency measures determined to be necessary to correct future 
PM2.5 attainment problems.
    DAQ will track the progress of the maintenance plan by performing 
future reviews of triennial emission inventories for the Hickory Area 
using the latest emissions factors, models and methodologies. For these 
periodic inventories, DAQ will review the assumptions made for the 
purpose of the maintenance demonstration concerning projected growth of 
activity levels. If any of these assumptions appear to have changed 
substantially, the DAQ will re-project emissions for the Hickory Area.
f. Contingency Measures in the Maintenance Plan
    The contingency measures are designed to promptly correct a 
violation of the NAAQS that occurs after redesignation. Section 175A of 
the CAA requires that a maintenance plan include such contingency 
measures as EPA deems necessary to assure that the state will promptly 
correct a violation of the NAAQS that occurs after redesignation. The 
maintenance plan should identify the contingency measures to be 
adopted, a schedule and procedure for adoption and implementation, and 
a time limit for action by the state. A state should also identify 
specific indicators to be used to determine when the contingency 
measures need to be implemented. The maintenance plan must include a 
requirement that a state will implement all measures with respect to 
control of the pollutant that were contained in the SIP before 
redesignation of the area to attainment in accordance with section 
175A(d).

[[Page 58222]]

    In the December 18, 2009, submittal, North Carolina affirms that 
all programs instituted by the State and EPA for PM control will remain 
enforceable and that sources are prohibited from reducing emissions 
controls following the redesignation of the Area. The contingency plan 
included in the December 18, 2009, submittal includes a 3-step 
triggering mechanism to determine when contingency measures are needed 
and a process of developing and implementing appropriate control 
measures. The secondary and tertiary triggers are pre-violation 
triggers and thus activation does not necessarily mean a violation of 
the actual annual PM2.5 NAAQS has occurred or will occur. 
The pre-violation triggers allow the State to begin evaluating the 
causes of increased ambient PM2.5 concentrations and take 
corrective action to prevent a future violation. In the contingency 
plan, North Carolina has committed to taking action on the activation 
of a primary or secondary trigger. These triggers and the actions 
resulting from them are discussed more fully below.
    The primary trigger will occur when the certified 3-year average of 
the average annual ambient concentration is greater than 15.0 [mu]g/
m\3\ at any monitor in the maintenance area. The resulting trigger date 
will be 60 days after the date that the State observes an annual 
average concentration that, when averaged with the previous two annual 
average PM2.5 concentrations, would result in a 3-year 
design value greater than 15.0 [mu]g/m\3\. North Carolina has 
identified a secondary warning trigger to occur when the State finds 
that the rolling twelve-quarter average monitored PM2.5 
levels exceed the PM2.5 NAAQS in the Hickory Area (non-
calendar year basis). The trigger date will be 60 days from the date 
that the State observes that the rolling 12-quarter average is greater 
than 15.0 [mu]g/m\3\. A tertiary (third type of) trigger will be 
activated when a monitor in the Hickory Area has an annual average 
greater than 15.0 [mu]g/m\3\. In addition to the triggers indicated 
above, North Carolina will track regional emissions submitted annually 
for large sources or every three years for other sources through the 
Consolidated Emissions Reporting Rule and Air Emissions Reporting Rule 
and compare them to the projected inventories and attainment year 
inventory. North Carolina commits to review theses emissions 
inventories and evaluate assumptions made to project emissions in the 
maintenance plan to determine if unexpected growth in NOX, 
SO2 or PM2.5 in the Area will jeopardize 
maintenance of the 1997 Annual PM2.5 NAAQS.
    Once a primary or secondary trigger is activated, DAQ will commence 
analysis, including trajectory analysis, and emissions inventory 
assessment to determine emission control measures that will be required 
to attain or maintain the 1997 Annual PM2.5 NAAQS. 
PM2.5 speciation data from the speciation trends network 
monitors will also be reviewed to help determine which control measures 
would be most effective. If it is determined that the violation or 
exceedance of the PM2.5 NAAQS is due to sources outside of 
North Carolina, then DAQ will consult with EPA on its findings and 
determinations on what contingency measures will be implemented to 
reduce emissions. If EPA and DAQ agree that the violation or exceedance 
was due to sources outside of North Carolina, DAQ will consult with 
regulatory authorities from contributing up-wind sources to determine 
additional actions to be implemented.\17\
---------------------------------------------------------------------------

    \17\ In a letter dated May 20, 2011, North Carolina provided 
additional clarification on the timing and content of their 
contingency plan. In the letter, North Carolina clarified that it is 
there intent to take corrective measures to address a violation of 
the 1997 Annual PM2.5 NAAQS within 18-24 months of the 
violation. This letter is available in the docket EPA-R04-OAR-2009-
1011 on the http://www.regulations.gov Web site.
---------------------------------------------------------------------------

    If DAQ determines that a violation or exceedance occurred due to 
sources within North Carolina, then by November 1 of the year following 
the year which caused the primary or secondary trigger activation, the 
State will complete sufficient analysis to begin adoption of necessary 
rules for ensuring attainment and maintenance of the annual 
PM2.5 NAAQS. If the rules are still needed, they would 
become State effective within 7 months after the November 1 analysis 
(by the following July 1), unless legislative review is required. Each 
adopted rule will include a schedule that will require compliance with 
the rule no later than 2 years after adoption of the rule.
    At least one of the following contingency measures will be adopted 
and implemented upon a primary or secondary triggering event:
     Continued implementation of previously adopted controls 
(NCCSA and diesel retrofits) which have not yet been realized but are 
sufficient to address the violation (and in excess of emissions 
reductions considered for maintenance);
     Reasonably Available Control Technology on stationary 
sources in the Hickory Area;
     Diesel inspection and maintenance program; \18\
---------------------------------------------------------------------------

    \18\ At this time, there is not an approved method for 
determining emission reductions from a Diesel Inspection and 
Maintenance program. Therefore, there is no technical basis to award 
emission credits for a heavy duty diesel inspection and maintenance 
program in the SIP. However, we do not want to preclude future 
technical changes that may make awarding such emission credits 
possible. If it is necessary to implement contingency measures for 
this area, North Carolina, in coordination with EPA, will evaluate 
the feasibility of this program as a contingency measure at that 
time. If a technical basis for emission credits is not available, 
other contingency measures will need to be implemented.
---------------------------------------------------------------------------

     Implementation of diesel retrofit programs, including 
incentives for performing retrofits;
     Additional controls in upwind areas within North Carolina.
    When a tertiary trigger is activated, DAQ will commence analyses 
including meteorological evaluation, trajectory analyses, and emissions 
inventory assessment to understand why an annual exceedance of the 
standard has occurred. DAQ will work with the local air awareness 
program and develop an outreach plan to identify any additional 
voluntary measures that can be implemented and implement the plan 
during the following summer.
    As designed, a tertiary trigger will always occur before a primary 
trigger because it is based on an annual average, whereas the primary 
trigger is based on an average of three consecutive annual averages. 
This means DAQ will commence analyzing the cause of higher ambient 
PM2.5 levels in the Area well before an actual NAAQS 
violation occurs. Further, a secondary trigger is likely to occur 
before a primary trigger because it is determined at the end of each 
calendar quarter based on a rolling 12-quarter average. This means that 
if the Area were to experience a NAAQS violation, DAQ will have likely 
already commenced the process for adoption of control measures as 
described above. EPA is now making the preliminary determination that 
the contingency measures outlined above in North Carolina's contingency 
plan are adequate and ensure that the State will promptly correct any 
future violation of the 1997 Annual PM2.5 NAAQS in the 
Hickory Area.
    EPA has concluded that the Hickory Area 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. Provided that EPA 
takes final rulemaking to approve the NCCSA, the maintenance plan SIP 
revision submitted by the State of North

[[Page 58223]]

Carolina for the Hickory Area meets the requirements of section 175A of 
the CAA and is approvable.

VII. What Is EPA's Analysis of North Carolina's Proposed Direct 
PM2.5 Insignificance Determination and the Proposed 
NOX MVEBs for the Hickory Area?

    Under section 176(c) of the CAA, new transportation plans, 
programs, and projects, such as the construction of new highways, must 
``conform'' to (i.e., be consistent with) the part of the state's air 
quality plan that addresses pollution from cars and trucks. Conformity 
to the SIP means that transportation activities will not cause new air 
quality violations, worsen existing violations, or delay timely 
attainment of the NAAQS or any interim milestones. If a transportation 
plan does not conform, most new projects that would expand the capacity 
of roadways cannot go forward. Regulations at 40 CFR part 93 set forth 
EPA policy, criteria, and procedures for demonstrating and assuring 
conformity of such transportation activities to a SIP. The regional 
emissions analysis is one, but not the only, requirement for 
implementing transportation conformity. Transportation conformity is a 
requirement for nonattainment and maintenance areas. Maintenance areas 
are areas that were previously nonattainment for a particular NAAQS but 
have since been redesignated to attainment with an approved maintenance 
plan for that NAAQS.
    Under the CAA, states are required to submit, at various times, 
control strategy SIPs and maintenance plans for nonattainment areas. 
These control strategy SIPs (including RFP and attainment 
demonstration) and maintenance plans create MVEBs for criteria 
pollutants and/or their precursors to address pollution from cars and 
trucks. Per 40 CFR part 93, an MVEB must be established for the last 
year of the maintenance plan. A state may adopt MVEBs for other years 
as well. The MVEB is the portion of the total allowable emissions in 
the maintenance demonstration that is allocated to highway and transit 
vehicle use and emissions. See 40 CFR 93.101. 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.
    Today's actions address two related elements regarding on-road 
motor vehicle emissions and the requirement to establish MVEBs. First, 
EPA is proposing to find that the direct PM2.5 emission 
contribution from motor vehicles to PM2.5 pollution in the 
Hickory Area is insignificant. The result of this determination, if 
finalized, is that North Carolina will not need to develop an MVEB for 
direct PM2.5 for the Hickory Area and the MPO will not need 
to perform a regional emissions analysis for direct PM2.5 
when it demonstrates conformity. See below for further information on 
the insignificance determination. Second, EPA is proposing to approve 
the NOX MVEBs for the Hickory Area.
    Direct PM2.5 insignificance. For motor vehicle emissions 
budgets to be approvable, they must meet, at a minimum, EPA's adequacy 
criteria (40 CFR 93.118(e)(4)). In certain instances, the 
Transportation Conformity Rule allows areas to forgo establishment of 
an MVEB where it is demonstrated that the regional motor vehicle 
emissions for a particular pollutant or precursor are an insignificant 
contributor to the air quality problem in an area. The general criteria 
for insignificance determinations can be found in 40 CFR 93.109(m). 
Insignificance determinations are based on a number of factors, 
including (1) The percentage of motor vehicle emissions in context of 
the total SIP inventory; (2) the current state of air quality as 
determined by monitoring data for that NAAQS; (3) the absence of SIP 
motor vehicle control measures; and (4) historical trends and future 
projections of the growth of motor vehicle emissions. EPA's rationale 
for the providing for insignificance determinations is described in the 
July 1, 2004, revision to the Transportation Conformity Rule at 69 FR 
40004.\19\ Specifically, the rationale is explained on page 40061 under 
the subsection entitled ``XXIII. B. Areas With Insignificant Motor 
Vehicle Emissions.'' Any insignificance determination under review of 
EPA is subject to the adequacy and approval process for EPA's action on 
the SIP.
---------------------------------------------------------------------------

    \19\ In the July 1, 2004, final rule, provisions for 
insignificance determinations were outlined in 40 CFR 93.109(k). EPA 
revised 40 CFR 93.109 in its March 24, 2010 final rule (75 FR 14260) 
and the provisions for insignificance determinations are now located 
at 40 CFR 93.109(m).
---------------------------------------------------------------------------

    Through the adequacy and SIP approval process, EPA may find that a 
SIP demonstrates that regional motor vehicle emissions are an 
insignificant contributor to the air quality problem for the pollutant 
or precursor at issue. In the case of the Hickory Area, EPA made its 
insignificance determination for directly emitted PM2.5 as 
part of the adequacy process on May 2, 2011 (76 FR 24475). As a result 
of EPA's insignificance determination, the Hickory Area was no longer 
required to perform regional emissions analyses for directly emitted 
PM2.5 as part of future PM2.5 conformity 
determinations for the 1997 Annual PM2.5 NAAQS until such 
time that EPA reviewed and took action on Hickory redesignation request 
for the 1997 Annual PM2.5 NAAQS (the subject of this 
proposed action). Upon the effective date of EPA's adequacy 
determination, Federal regulations no longer require a regional 
emissions analysis (for the purpose of transportation conformity 
implementation) for the relevant pollutant or precursor. Areas with 
insignificant regional motor vehicle emissions for a pollutant or 
precursor are still required to make a conformity determination that 
satisfies other relevant conformity requirements. Additionally, such 
areas are required to satisfy the regional emissions analysis 
requirements for pollutants or precursors for which EPA has not made a 
determination of insignificance.
    The maintenance plan for the Hickory Area, included as part of the 
SIP revision, contains MVEBs for NOx and an insignificance 
determination for the direct PM2.5 contribution of motor 
vehicles to the air quality problem in the Hickory Area. As part of the 
preparation for its redesignation request, North Carolina consulted 
with the interagency consultation group for the Hickory Area regarding 
the direct PM2.5 insignificance determination. For the 
purposes of regional emissions analysis, the information provided by 
North Carolina supports EPA's proposal to determine that the 
PM2.5 contribution from motor vehicles to PM2.5 
pollution in the Hickory Area is insignificant. The information 
provided by North Carolina to EPA, as part of the SIP revision, 
addresses each of the factors listed in 40 CFR 93.109(m) and is 
summarized below. The 2009 on-road PM2.5 emissions account 
for less than two percent of the total direct PM2.5 from all 
sources in the Hickory Area SIP inventory. In addition, direct 
PM2.5 emissions from on-road mobile sources decreased by 25 
percent from 2002-2009 (100 tpy to 75 tpy) while vehicle miles traveled 
(VMT) increased 14 percent during the same time frame. As shown in 
Table 3 above, North Carolina's maintenance plan demonstrates that on-
road PM2.5 emissions will continue to decrease through 2021, 
the end of the maintenance plan for the Hickory Area. In addition, 
since 2006, the PM2.5

[[Page 58224]]

annual average concentration has decreased by 32 percent such that the 
Area is now attaining the Annual PM2.5 NAAQS with a 2007-
2009 design value of 12.6 [mu]g/m\3\, well below the standard of 15.0 
[mu]g/m\3\. According to information provided by North Carolina, point 
sources contributed nearly 97 percent of the emissions in future years 
in the Hickory Area. Support for these percentages is found in Figure 
4.5.2-3, located in the supplemental Appendix C.3--Mobile Source 
Inventory Documentation North Carolina's submittal (available in the 
Docket for this proposed rulemaking). In addition, North Carolina 
conducted a sensitivity analysis that doubled the PM2.5 
emissions from on-road mobile sources in 2008 which indicated a 
negligible difference (0.04 [mu]g/m\3\) in the PM2.5 
modeling design value in Catawba County. As a result, the information 
provided by North Carolina indicates that the direct PM2.5 
contribution from on-road mobile sources to PM2.5 pollution 
is insignificant for the Hickory Area.
    With regard to the factor relating to the absence of motor vehicle 
control measures in the SIP, EPA considered the existence of a vehicle 
inspection and maintenance program in the North Carolina SIP and its 
implementation in Catawba County comprising the Hickory Area. The 
program, which was added to the North Carolina SIP to control 
precursors of ozone rather than as a PM2.5 control measure, 
is currently being implemented in the Hickory Area.
    After evaluating the information provided by North Carolina and 
weighing the factors for the insignificance determination outlined in 
40 CFR 93.109(m), EPA is now proposing to approve North Carolina's 
determination that the direct PM2.5 contribution from motor 
vehicle emissions to the PM2.5 pollution problem in the 
Hickory Area is insignificant. EPA's insignificance finding should be 
considered and specifically noted in the transportation conformity 
documentation that is prepared for the Area.
    After interagency consultation with the transportation partners for 
the Hickory Area, North Carolina has developed MVEBs for NOX 
for the entire Area. North Carolina developed these MVEBs, as required, 
for the last year of its maintenance plan--2021. Additionally, the 
State of North Carolina has elected to develop MVEBs for the year 2011. 
The MVEBs reflect the total on-road emissions for 2011 and 2021, plus a 
safety margin that is based on an allocation from the available 
NOX safety margin. Under 40 CFR 93.101, the safety margin is 
the difference between the emissions level needed for attainment (from 
all sources) and the projected level of emissions (from all sources) in 
the maintenance plan. The safety margin can be allocated to the 
transportation sector, however, the total emissions must remain below 
the attainment level. These MVEBs and allocation from the safety margin 
were developed in consultation with the transportation partners and 
were calculated to account for uncertainties in population growth, 
changes in modeled vehicle miles traveled and new emission factor 
models. The NOX MVEBs for the Hickory Area are defined in 
Table 5 below.

                     Table 5--Hickory Area NOX MVEBs
                                [kg/year]
------------------------------------------------------------------------
                                               2011            2021
------------------------------------------------------------------------
On-Road Mobile Emissions................       3,633,274       1,863,357
Safety Margin Allocated to MVEB.........         363,327         372,671
NOX Conformity MVEB.....................       3,996,601       2,236,028
------------------------------------------------------------------------

    As mentioned above, the Hickory Area has chosen to allocate a 
portion of the available safety margin to the NOX MVEBs for 
the years 2011 and 2021. A total of 363,327 kg/year (400 tpy) and 
372,671 kg/year (411 tpy) of the available NOX safety 
margins are allocated to the 2011 and 2021 MVEB, respectively. Thus, 
the remaining safety margins in 2011 and 2021 are 4,524 tpy and 7,093 
tpy, respectively.
    Through this rulemaking, EPA is proposing to approve the MVEBs for 
NOX for 2011 and 2021, including the allocation from the 
NOX safety margins, for the Hickory Area because EPA has 
made the preliminary determination that the Area maintains the 1997 
Annual PM2.5 NAAQS with the emissions at the levels of the 
budgets. Once the MVEBs for the Hickory Area are approved or found 
adequate (whichever is completed first), they must be used for future 
conformity determinations and the MPOs must use the MOVES model in 
future PM2.5 conformity determinations for their long-range 
transportation plans and transportation improvement programs. After 
thorough review, EPA has determined that the budgets meet the adequacy 
criteria, as outlined in 40 CFR 93.118(e)(4), and is proposing to 
approve the budgets because they are consistent with maintenance of the 
Annual PM2.5 NAAQS through 2021.

VIII. What is the status of EPA's adequacy determination for the 
proposed NOX MVEBs for 2011 and 2021 and for the direct 
PM2.5 insignificance determination for the Hickory Area?

    When reviewing a submitted ``control strategy'' SIP or maintenance 
plan containing an MVEB, EPA may affirmatively find the MVEB contained 
therein adequate for use in determining transportation conformity. Once 
EPA affirmatively finds the submitted MVEB is adequate for 
transportation conformity purposes, that MVEB 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 an 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, 
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

[[Page 58225]]

process for transportation conformity purposes is available in the 
proposed rule entitled, ``Transportation Conformity Rule Amendments: 
Response to Court Decision and Additional Rule Changes,'' 68 FR 38974, 
38984 (June 30, 2003).
    As discussed earlier, North Carolina's maintenance plan submission 
includes NOX MVEBs for the Hickory Area for the years 2011 
and 2021. EPA reviewed the NOX MVEBs through the adequacy 
process. The North Carolina SIP submission, including the Hickory Area 
NOX MVEBs, was open for public comment on EPA's adequacy Web 
site on November 23, 2010, found at: http://www.epa.gov/otaq/stateresources/transconf/currsips.htm. The EPA public comment period on 
adequacy NOX MVEBs for 2011 and 2021 for Hickory Area closed 
on December 23, 2010. EPA did not receive any comments on the adequacy 
of the MVEBs, nor did EPA receive any requests for the SIP submittal.
    In a letter sent on February 3, 2011, EPA notified North Carolina 
DAQ that the MOVES based 2011 and 2021 MVEBs for the Hickory Area were 
determined to be adequate for transportation conformity purposes. On 
May 2, 2011, EPA published its adequacy notice in the Federal Register 
(76 FR 24475). When EPA finds the 2011 and 2021 MVEBs adequate or 
approves them, the new MVEBs for NOX must be used for future 
transportation conformity determinations. For required regional 
emissions analysis years prior to 2011, the applicable budgets are the 
2009 MVEBs and direct PM2.5 insignificance determination 
from the attainment demonstration, which have already been found 
adequate through another action. (75 FR 9204 and 75 FR 26751). For 
required regional emissions analysis years that involve 2011-2020, the 
applicable budgets will be the new 2011 MVEBs. For required regional 
emissions analysis years that involve 2021 or beyond, the applicable 
budgets will be the new 2021 MVEBs. The 2011 and 2021 MVEBs are defined 
in section VII of this proposed rulemaking.

IX. What is EPA's analysis of the proposed 2008 base year emissions 
inventory for the Hickory Area?

    As discussed in section VI above, section 172(c)(3) of the CAA 
requires areas to submit a comprehensive, accurate and current 
emissions inventory. As part of North Carolina's request to redesignate 
the Hickory Area, the State submitted a 2008 base year emissions 
inventory to meet this requirement. Emissions contained in the 
submittal cover the general source categories of point sources, area 
sources, on-road mobile sources, and non-road mobile sources. All 
emission summaries were accompanied by source-specific descriptions of 
emission calculation procedures and sources of input data. On December 
22, 2010, DAQ provided EPA with a supplemental SIP revision to update 
the on-road mobile emissions by replacing the on-road mobile emissions 
that were prepared with MOBILE6.2 with on-road emissions that were 
prepared using the new MOVES emissions model. North Carolina's 
submittal documents 2008 emissions in the Hickory Area in units of tpy. 
Table 6 below provides a summary of the 2008 emissions of direct 
PM2.5, NOX, and SO2 for the Hickory 
Area. For emissions in other years, refer to Tables 3 and 4.

                          Table 6--Hickory Area 2008 Emissions for PM2.5, NOX, and SO2
                                              [tpy (percent total)]
----------------------------------------------------------------------------------------------------------------
                       Source                                PM2.5                NOX                 SO2
----------------------------------------------------------------------------------------------------------------
Point Source Total..................................        6,976 [88.4]       13,310 [66.1]        6,189 [72.8]
Area Source Total...................................           682 [8.6]           662 [3.3]        2,263 [26.6]
On-Road Mobile Source Total.........................           166 [2.1]        4,982 [24.8]            35 [0.4]
Non-Road Mobile Source Total........................            70 [0.9]         1,173 [5.8]            18 [0.2]
                                                     -----------------------------------------------------------
    Total for all Sources...........................               7,894              20,127               8,505
----------------------------------------------------------------------------------------------------------------

    In today's notice, EPA is proposing to approve this 2008 base year 
inventory as meeting the section 172(c)(3) emissions inventory 
requirement.

X. Proposed Actions on the Redesignation Request and Maintenance Plan 
SIP Revision Including Approval of the NOX MVEBs for 2011 
and 2021 and the Direct PM2.5 Insignificance Determination 
for the Hickory Area

    EPA previously determined that the Hickory Area was attaining the 
1997 PM2.5 NAAQS on January 5, 2010, at 75 FR 230. EPA is 
now taking four separate but related actions regarding the Area's 
redesignation and maintenance of the 1997 Annual PM2.5 
NAAQS. Three of the actions are discussed in this section and the 
fourth is discussed in the next section.
    First, EPA is proposing to determine, based on complete, quality-
assured and certified monitoring data for the 2007-2009 monitoring 
period, and after review of preliminary data in AQS for 2008-2010, that 
the Hickory Area continues to attain the 1997 Annual PM2.5 
NAAQS. Provided that EPA takes final action to approve the NCSSA and, 
under section 172(c)(3), the 2008 base emissions inventory, EPA is 
proposing to determine that the Hickory Area has met the criteria under 
CAA section 107(d)(3)(E) for redesignation from nonattainment to 
attainment for the 1997 Annual PM2.5 NAAQS. On this basis, 
EPA is proposing to approve North Carolina's redesignation request for 
the Hickory Area.
    Second, EPA is proposing to approve North Carolina's 2008 emissions 
inventory for the Hickory Area (under section CAA 172(c)(3)). North 
Carolina selected 2008 as the attainment emissions inventory year for 
the Hickory Area. This attainment inventory identifies a level of 
emissions in the Area that is sufficient to attain the 1997 Annual 
PM2.5 NAAQS and also is a current, comprehensive inventory 
that meets the requirements of section 172(c)(3).
    Third, subject to final approval of the NCCSA rules, EPA is 
proposing to approve North Carolina's submitted maintenance plan for 
the Hickory Area, including the NOX MVEBs for 2011 and 2021 
and the insignificance determination for the direct PM2.5 
contribution of motor vehicles to PM2.5 pollution, as 
meeting the requirements of section 175A of the CAA. The maintenance 
plan demonstrates that the Area will continue to maintain the 1997 
Annual PM2.5 NAAQS, and the budgets meet all of the adequacy 
criteria contained in 40 CFR 93.118(e)(4) and (5). Further, as part of 
today's action, EPA is describing the status of its adequacy 
determination for the NOX

[[Page 58226]]

MVEBs for 2011 and 2021 and the mobile source direct PM2.5 
insignificance determination for the PM2.5 NAAQS in 
accordance with 40 CFR 93.118(f)(1). On May 2, 2011, EPA published its 
adequacy notice in the Federal Register (76 FR 24472). Within 24 months 
from the effective date of EPA's adequacy determination, the 
transportation partners will need to demonstrate conformity to the new 
NOX MVEBs pursuant to 40 CFR 93.104(e) and will need to 
document the mobile source direct PM2.5 insignificance 
determination for the PM2.5 NAAQS in future conformity 
determinations (76 FR 24475).
    If finalized, approval of the redesignation request would change 
the official designation of Catawba County in the Hickory Area for the 
1997 Annual PM2.5 NAAQS, found at 40 CFR part 81, from 
nonattainment to attainment. EPA is also proposing to approve into the 
North Carolina SIP the maintenance plan for the Hickory Area, the 
emissions inventory submitted with the maintenance plan, and the 2011 
and 2021 MVEBs. EPA is proposing to take these actions if and when EPA 
finalizes, after notice and comment rulemaking, its approval of the 
NCSSA rules as a revision to the North Carolina SIP.

XI. Proposed Action on the Determination That the Hickory Area Has 
Attained the 1997 PM2.5 NAAQS by Its Applicable Attainment 
Date

    The fourth action EPA is proposing today is to determine, based on 
quality-assured and certified monitoring data for the 2007-2009 
monitoring period, that the Hickory Area attained the 1997 Annual 
PM2.5 NAAQS by its applicable attainment date of April 5, 
2010. This determination is being proposed in accordance with section 
179(c)(1) of the CAA and EPA regulations.

XII. Statutory and Executive Order Reviews

    Under the CAA, redesignation of an area to attainment and the 
accompanying approval of a maintenance plan under section 107(d)(3)(E) 
are actions that affect the status of a geographical area and do not 
impose any additional regulatory requirements on sources beyond those 
imposed by state law. A redesignation to attainment does not in and of 
itself create any new requirements, but rather results in the 
applicability of requirements contained in the CAA for areas that have 
been redesignated to attainment. Moreover, the Administrator is 
required to approve a SIP submission that complies with the provisions 
of the Act 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, these proposed actions merely approve state law as meeting 
Federal requirements and do not impose additional requirements beyond 
those imposed by state law. For this reason, these proposed actions:
     Are not ``significant regulatory action[s]'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Do not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Are 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.);
     Do 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);
     Do not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Are not an economically significant regulatory action 
based on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Are not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Are 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
     Do 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, this proposed rule does not have tribal implications 
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the State, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Reporting and recordkeeping requirements, and Particulate 
matter.

40 CFR Part 81

    Environmental protection, Air pollution control.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: September 9, 2011.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.
[FR Doc. 2011-24103 Filed 9-19-11; 8:45 am]
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