[Federal Register Volume 76, Number 204 (Friday, October 21, 2011)]
[Proposed Rules]
[Pages 65458-65472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26773]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R04-OAR-2010-0937-201118; FRL-9480-2]


Approval and Promulgation of Implementation Plans and Designation 
of Areas for Air Quality Planning Purposes; Kentucky; Redesignation of 
the Kentucky Portion of the Cincinnati-Hamilton 1997 Annual Fine 
Particulate Matter Nonattainment Area to Attainment

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On January 27, 2011, the Commonwealth of Kentucky, through the 
Kentucky Energy and Environment Cabinet, Division of Air Quality (DAQ), 
submitted a request to redesignate the Kentucky portion of the 
Cincinnati-Hamilton, Ohio-Kentucky-Indiana (hereafter referred to the 
``Tri-state Cincinnati-Hamilton Area'') fine particulate matter 
(PM2.5) nonattainment area to attainment for the 1997 Annual 
PM2.5 National Ambient Air Quality Standards (NAAQS); and to 
approve a State Implementation Plan (SIP) revision containing a 
maintenance plan for the Kentucky portion of the Tri-state Cincinnati-
Hamilton Area. The Tri-state Cincinnati-Hamilton Area is comprised of 
Boone, Campbell, and Kenton Counties in Kentucky (hereafter referred to 
as the ``Northern Kentucky Area'' or ``Area''); Butler, Clermont, 
Hamilton, and Warren Counties in Ohio; and a portion of Dearborn County 
in Indiana. EPA is proposing to approve the redesignation request for 
Boone, Campbell, and Kenton Counties, along with the related SIP 
revision, including the Commonwealth's plan for maintaining attainment 
of the PM2.5 standard in the Northern Kentucky Area. EPA is 
also proposing to approve Kentucky's nitrogen oxides (NOX) 
and PM2.5 Motor Vehicle Emission Budgets (MVEBs) for 2015 
and 2021 for the Northern Kentucky Area. On December 9, 2010, and 
January 25, 2011, respectively, Ohio and Indiana submitted requests to 
redesignate their portion of the Tri-state Cincinnati-Hamilton Area to 
attainment for the 1997 PM2.5 NAAQS. EPA is taking action on 
the requests from Ohio and Indiana in an action separate from these 
proposed actions.

DATES: Comments must be received on or before November 21, 2011.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2010-0937, 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-2010-0937, 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.
    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-
2010-0937. 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 of the Regulatory 
Development Section, in the 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 EPA's analysis of the request?

[[Page 65459]]

VI. What is EPA's analysis of Kentucky's proposed NOX and 
PM2.5 MVEBs for the Northern Kentucky Area?
VII. What is the status of EPA's adequacy determination for the 
proposed NOX and PM2.5 MVEBs for 2015 and 2021 
for the Northern Kentucky Area?
VIII. What is EPA's analysis of the proposed 2008 base year 
emissions inventory for the Northern Kentucky Area?
IX. Proposed Action on the Redesignation Request and Maintenance 
Plan SIP Revision Including Proposed Approval of the 2015 and 2021 
NOX and PM2.5 MVEBs for the Northern Kentucky 
Area.
X. What is the effect of EPA's proposed actions?
XI. Statutory and Executive Order Reviews

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

    In this action, EPA is proposing to make a determination that this 
Area is continuing to attain the 1997 Annual PM2.5 NAAQS \1\ 
and to take several additional actions related to Kentucky's request to 
redesignate the Northern Kentucky Area which are summarized as follows 
and described in greater detail throughout this notice of proposed 
rulemaking: (1) To redesignate the Northern Kentucky Area portion of 
the Tri-state Cincinnati-Hamilton Area to attainment for the 1997 
Annual PM2.5 NAAQS; (2) to approve, under CAA section 
172(c)(3), the emissions inventory submitted with the maintenance plan 
for Northern Kentucky; and (3) to approve, under section 175A of the 
CAA, the Northern Kentucky Area's 1997 Annual PM2.5 NAAQS 
maintenance plan into the Kentucky SIP, including the associated MVEBs. 
In addition, and related to today's actions, EPA is also notifying the 
public of the status of EPA's adequacy determination for the Northern 
Kentucky Area MVEBs for the PM2.5 NAAQS.
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    \1\ On September 29, 2011, at 76 FR 60373, EPA determined that 
the Tri-state Cincinnati-Hamilton Area attained the 1997 
PM2.5 NAAQS by its applicable attainment date of April 5, 
2010, and that the Area was continuing to attain the 
PM2.5 standard with monitoring data that was currently 
available.
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    First, EPA proposes to determine that, if EPA's proposed approval 
of the 2008 baseline emissions inventory for the Northern Kentucky Area 
is 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 Boone, Campbell, 
and Kenton Counties from nonattainment to attainment for the 1997 
Annual PM2.5 NAAQS. The emissions inventory for the Northern 
Kentucky Area is being proposed for approval today.
    Second, EPA is proposing to approve under the CAA, Kentucky's 2008 
emissions inventory for the Northern Kentucky Area (under CAA section 
172(c)(3)). Kentucky selected 2008 as the attainment emissions 
inventory year for the Northern Kentucky Area. This attainment 
inventory identifies a level of emissions in the Area that is 
sufficient to attain the 1997 Annual PM2.5 NAAQS.
    Third, EPA is proposing to approve Kentucky's 1997 Annual 
PM2.5 NAAQS maintenance plan for the Northern Kentucky Area 
(such approval being one of the CAA criteria for redesignation to 
attainment status). Since maintenance of the standard in the Northern 
Kentucky Area is based in large part on maintaining control of power 
plant emissions, promulgation of the Transport Rule, also known as the 
Cross State Air Pollution Rule (CSAPR),\2\ was necessary to make recent 
reductions in power plant emissions (or equivalent reductions at other 
power plants) permanent and enforceable. The maintenance plan is 
designed to help keep the Northern Kentucky 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 and PM2.5 MVEBs for the years 2015 
and 2021 for the Northern Kentucky Area. EPA is proposing to approve 
(into the Kentucky SIP) the 2015 and 2021 MVEBs that are included as 
part of Kentucky's maintenance plan for the 1997 Annual 
PM2.5 NAAQS.
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    \2\ See ``Federal Implementation Plans to Reduce Interstate 
Transport of Fine Particulate Matter and Ozone in 27 States; 
Correction of SIP Approvals for 22 States'' (76 FR 48208, August 8, 
2011).
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    Further, EPA proposes to make the determination that the Tri-state 
Cincinnati-Hamilton Area is continuing to attain the 1997 Annual 
PM2.5 NAAQS and that all other redesignation criteria have 
been met for the Northern Kentucky Area. The bases for EPA's 
determination for the Area are discussed in greater detail below.
    EPA is also notifying the public of the status of EPA's adequacy 
process for the newly-established NOX and PM2.5 
MVEBs for 2015 and 2021 for the Northern Kentucky Area. The adequacy 
comment period for the Northern Kentucky Area MVEBs began on February 
14, 2011, 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 
closed on March 16, 2011. No adverse comments were received during the 
Adequacy public comment period. Please see section VIII of this 
proposed rulemaking for further explanation of this process and for 
more details on the MVEBs.
    Today's notice of proposed rulemaking is in response to Kentucky's 
January 27, 2011, SIP submittal, which requests redesignation of the 
Northern Kentucky Area portion of the Tri-state Cincinnati-Hamilton 
Area to attainment for the 1997 Annual PM2.5 NAAQS and 
addresses the specific issues summarized above and the necessary 
elements for redesignation described in section 107(d)(3)(E) of the 
CAA.

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 3-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 3-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 3-year average of the 98th percentile of 24-hour 
concentrations.\3\ 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

[[Page 65460]]

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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    \3\ In response to legal challenges of the annual standard 
promulgated in 2006, the United States Court of Appeals for the 
District of Columbia circuit (DC Cir.) 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 (DC 
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 supplemented on April 14, 
2005, at 70 FR 19844, EPA designated the Tri-state Cincinnati-Hamilton 
Area as nonattainment for the 1997 PM2.5 NAAQS. In that 
action, EPA defined the 1997 PM2.5 Cincinnati-Hamilton Area 
to include Boone, Campbell, and Kenton Counties in Kentucky, Butler, 
Clermont, Hamilton, and Warren Counties in Ohio, and a portion of 
Dearborn Country containing the Lawrenceburg Township in Indiana. On 
November 13, 2009, at 74 FR 58688, EPA promulgated designations for the 
24-hour standard established in 2006, designating the Tri-state 
Cincinnati-Hamilton Area as attainment for this NAAQS. That action 
clarified that the Tri-state Cincinnati-Hamilton Area was classified 
unclassifiable/attainment for 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 NAAQS promulgated in 1997. Therefore, the Tri-state Cincinnati-
Hamilton Area is designated nonattainment 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 DC 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 (DC 
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 (DC 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 Northern Kentucky 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'' (76 FR 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 
Kentucky and states upwind of Kentucky 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 Northern Kentucky Area that has resulted from 
electric generating units emission reductions associated with CAIR (as 
well as the additional 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 
Northern Kentucky Area can now be considered permanent and enforceable. 
Therefore, EPA proposes to find that the transport requirement of CAA 
section 107(d)(3)(E)(iii) has been met for the Northern Kentucky Area.
    The 3-year ambient air quality data for 2007-2009 indicated no 
violations of the 1997 PM2.5 NAAQS for the Tri-state 
Cincinnati-Hamilton Area. As a result, on January 27, 2011, Kentucky 
requested redesignation of the Northern Kentucky 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 2007-2009, 
indicating that the 1997 PM2.5 NAAQS had been achieved for 
the entire Tri-state Cincinnati-Hamilton 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 
2007 through the present, the annual PM2.5 design values for 
the Tri-state Cincinnati-Hamilton Area have declined. While annual 
PM2.5 concentrations are dependent on a variety of 
conditions, the overall downtrend in annual PM2.5 
concentrations in the Tri-state Cincinnati-Hamilton Area can be 
attributed to the reduction of emissions, as will be discussed in more 
detail in section V of this proposed rulemaking.

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

[[Page 65461]]

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 January 27, 2011, the Commonwealth of Kentucky, through DAQ, 
requested the redesignation of the Northern Kentucky Area to attainment 
for the 1997 Annual PM2.5 NAAQS. EPA's preliminary 
evaluation indicates that the Tri-state Cincinnati-Hamilton Area has 
attained the 1997 Annual PM2.5 NAAQS and has met the 
requirements for redesignation set forth in section 107(d)(3)(E), 
including the maintenance plan requirements under section 175A of the 
CAA. Additionally, EPA is proposing to approve the 2008 baseline 
emission inventory under section 172(c)(3) because Kentucky has used 
methodology consistent with EPA guidance and implementing regulations 
to develop this inventory. EPA is also announcing the status of its 
adequacy determination for both the NOX and PM2.5 
MVEBs for 2015 and 2021, which are relevant to the requested 
redesignation.

V. 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 Northern Kentucky Area to 
attainment for the 1997 Annual PM2.5 NAAQS; (2) approve the 
Northern Kentucky Area emissions inventory submitted with the 
maintenance plan; and (3) approve into the Kentucky SIP, the Northern 
Kentucky's 1997 Annual PM2.5 NAAQS maintenance plan, 
including the associated MVEBs. These actions are based upon EPA's 
determination that the Tri-state Cincinnati-Hamilton Area continues to 
attain the 1997 Annual PM2.5 NAAQS and that all other 
redesignation criteria have been met for the Northern Kentucky Area, 
provided EPA approves the emissions inventory submitted with the 
maintenance plan. 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.
    As stated above, in accordance with the CAA, EPA proposes to make 
the determination that the Tri-state Cincinnati-Hamilton Area is 
continuing to attain the 1997 Annual PM2.5 NAAQS and that 
all other redesignation criteria have been met for the Northern 
Kentucky Area. The bases for EPA's determination for the Area are 
discussed in greater detail below.

Criteria (1)--The Tri-state Cincinnati-Hamilton 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 Tri-state Cincinnati-Hamilton 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 50.13 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 September 29, 2011, at 76 FR 60373, EPA finalized a 
determination that the Tri-state Cincinnati-Hamilton Area was attaining 
the 1997 PM2.5 NAAQS, and that this Area attained the 1997 
PM2.5 NAAQS by its applicable attainment date of April 5, 
2011. For that action EPA reviewed PM2.5 monitoring data 
from monitoring stations in the Tri-state Cincinnati-Hamilton Area for 
the 1997 Annual PM2.5 NAAQS for 2007-2009. The public was 
provided a 30-day comment period to review and provide comment to EPA 
on the analysis of this data. EPA did not receive any comments, adverse 
or otherwise, on the Agency's determination that the Area had attaining 
data for the period of 2007-2009, and continued to have attaining data 
through the finalization of EPA's proposal in September 2011. As such, 
EPA is not seeking additional comment in today's action regarding this 
data. As noted in EPA's September 29, 2011, action these data were 
quality-assured and recorded in AQS. The annual mean of the 
PM2.5 concentrations for 2007-2010 and the 3-year average of 
these values (i.e., design values) are summarized in Table 1.

              Table 1--Design Value Concentrations for the Tri-State Cincinnati-Hamilton Area for the 1997 Annual PM2.5 NAAQS ([mu]g/m\3\)
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                                                                                        Annual mean concentrations                3-Year design values
                                                                           -----------------------------------------------------------------------------
              Location                       County           Monitor ID                                                                      2008-2010
                                                                                2007         2008         2009       2010 \2\    2007-2009       \4\
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John Hill..........................  Campbell, KY.........     21-037-3002        14.36        11.83        11.34         11.8         12.3         11.6
Dixie..............................  Kenton, KY...........     21-117-0007        14.20        11.99        11.04       * 12.1         12.4         11.5
Bonita & St John...................  Butler, OH...........     39-017-0003        15.40        13.80        12.83         13.6         13.9         13.4
Nilles.............................  Butler, OH...........     39-017-0016        14.94        13.75        13.08         13.5         13.8         13.4
Hook Field.........................  Butler, OH...........     39-017-1004        14.62          n/a          n/a          n/a         14.6          n/a
Clermont Center....................  Clermont, OH.........     39-025-0022        14.01        11.75        11.01         12.0         12.2         11.6
Grooms.............................  Hamilton, OH.........     39-061-0006        14.63        12.48        12.11       * 12.7         13.1         12.4
Seymour & Vine.....................  Hamilton, OH.........     39-061-0014        16.59        15.06        13.38         14.8         15.0         14.4

[[Page 65462]]

 
WM. Howard Taft....................  Hamilton, OH.........     39-061-0040        15.09        12.62        12.73         13.3         13.4         12.9
W. 8th.............................  Hamilton, OH.........     36-061-0042        15.90        14.40        13.71         14.5         14.6         14.2
E. Kemper..........................  Hamilton, OH.........     36-061-0043        14.85        13.32          n/a          n/a         14.1          n/a
Sherman............................  Hamilton, OH.........     39-061-7001        15.09        13.74        12.97         14.1         14.0         13.6
Murray.............................  Hamilton, OH.........     39-016-8001        16.07        14.40        13.40       * 17.6         14.6          n/a
Southeast..........................  Warren, OH...........     39-165-0007        13.98        11.92        11.70         11.9         12.4         11.8
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* Design value does not meet data completeness requirements due to closure or start-up of the monitoring stations.
\4\ The preliminary PM2.5 ambient air quality data for 2010 for the Tri-state Cincinnati-Hamilton Area indicates that the Area is attaining the NAAQS
  with all 2008-2010 design values below the NAAQS of 15.0 [micro]g/m\3\.

    As discussed above, the design value for an area is the highest 
annual mean concentration recorded at any monitor in the area for a 3-
year period. Therefore, the 3-year design value (2007-2009) submitted 
by Kentucky for redesignation of the Tri-state Cincinnati-Hamilton Area 
is 15.0 [mu]g/m\3\, which meets the NAAQS as described above. Several 
of the above monitoring sites do not meet the 75 percent completeness 
criteria. In these cases, operation of the monitoring sites were 
started or shut-down during the 2007-2010 timeframe. Additional details 
can be found in EPA's final clean data determination for the Tri-state 
Cincinnati-Hamilton Area (76 FR 60373). EPA has reviewed more recent 
preliminary data which indicates that the Tri-state Cincinnati-Hamilton 
Area continues to attain the 1997 PM2.5 NAAQS beyond the 
submitted 3-year attainment period of 2007-2009. The design value for 
the most recent 3-year period of 2008-2010 will be certified by the 
time EPA takes final action on this proposed rule.\2\ At that time, EPA 
will again ensure that current air quality data demonstrates that the 
Tri-state Cincinnati-Hamilton Area is continuing to meet the 1997 
Annual PM2.5 NAAQS. If the Area does not continue to attain 
before EPA finalizes the redesignation, EPA will not go forward with 
the redesignation. As discussed in more detail below, the Commonwealth 
of Kentucky has committed to continue monitoring in this Area in 
accordance with 40 CFR part 58.

Criteria (5)--Kentucky has met all Applicable Requirements under 
Section 110 and part D of the CAA; and Criteria (2)--Kentucky has a 
fully approved SIP under section 110(k) for the Northern Kentucky 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 Kentucky has met all applicable SIP requirements 
for the Northern Kentucky Area under section 110 of the CAA (general 
SIP requirements) for purposes of redesignation. Additionally, EPA 
proposes to find that the Kentucky 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) in accordance with section 
107(d)(3)(E)(v). Further, EPA proposes to determine that the SIP is 
fully approved with respect to all requirements applicable for purposes 
of redesignation in accordance with section 107(d)(3)(E)(ii). In making 
these determinations, EPA ascertained which requirements are applicable 
to the Area and, if applicable, that they are fully approved under 
section 110(k). SIPs must be fully approved only with respect to 
requirements that were applicable prior to submittal of the complete 
redesignation request.
a. The Northern Kentucky Area Has Met all Applicable Requirements Under 
Section 110 and Part D 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,\5\ CAIR,\6\ 
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

[[Page 65463]]

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.
---------------------------------------------------------------------------

    \5\ 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, Kentucky developed rules governing the 
control of NOX emissions from EGUs, major non-electric 
generating units (EGU) industrial boilers, major cement kilns, and 
internal combustion engines. EPA approved Kentucky's rules as 
fulfilling Phase I and Phase II of the NOX SIP Call on 
October 23, 2009 (74 FR 54755).
    \6\ 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 (DC Cir., December 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 (DC 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 Kentucky.
---------------------------------------------------------------------------

    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 Kentucky 
dated August 26, 2008, addressing ``infrastructure SIP'' elements 
required under the Clean Air Act (CAA or ``the Act'') section 110(a)(2) 
for the 1997 PM2.5 NAAQS. However, these are statewide 
requirements that are not a consequence of the nonattainment status of 
the Northern Kentucky Area. EPA believes that section 110 elements not 
linked to an area's nonattainment status are not applicable for 
purposes of redesignation. See the Reading, Pennsylvania, proposed and 
final rulemakings (61 FR 53174-53176, October 10, 1996 and 62 FR 24826, 
May 7, 1997), the Cleveland-Akron-Loraine, Ohio, final rulemaking (61 
FR 20458, May 7, 1996), and the Tampa, Florida, final rulemaking (60 FR 
62748, December 7, 1995). Therefore, notwithstanding the fact that EPA 
has not yet completed rulemaking on Kentucky's submittal for the 
PM2.5 infrastructure SIP elements of section 110(a)(2), EPA 
believes it has approved all SIP elements that must be approved as a 
prerequisite for the redesignation to attainment of the Northern 
Kentucky Area.
    Title I, Part D requirements. EPA proposes that with approval of 
Kentucky's base year emissions inventory, which is part of the 
maintenance plan submittal, the Kentucky 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 Kentucky 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 if the approval of the base year emissions inventories, discussed 
in section IX of this rulemaking, is finalized, the Kentucky SIP will 
meet the applicable SIP requirements for the Northern Kentucky Area for 
purposes of redesignation under part D of the CAA. Subpart 1 of part D, 
found in sections 172-176 of the CAA, sets for 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 subpart 1 of the CAA. The applicable subpart 1 
requirements are contained in sections 172(c)(1)-(9) and in section 
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 NAAQS. 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 final determination that the Tri-
state Cincinnati-Hamilton Area was attaining the PM2.5 
standard suspended Kentucky's obligation to submit most of the 
attainment planning requirements that would otherwise apply. 
Specifically, the determination of attainment suspended Kentucky's 
obligation to submit an attainment demonstration and planning SIPs to 
provide for reasonable further progress (RFP), RACM, 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 Tri-state Cincinnati 
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 Tri-state Cincinnati-Hamilton Area, which includes the Northern 
Kentucky 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 Tri-state Cincinnati-Hamilton 
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

[[Page 65464]]

emissions. As part of Kentucky's redesignation request for the Northern 
Kentucky Area, Kentucky submitted a 2008 base year emissions inventory. 
As discussed below in section VIII, 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.'' Kentucky has demonstrated that the 
Northern Kentucky Area will be able to maintain the NAAQS without part 
D NSR in effect, and therefore Kentucky need not have fully approved 
part D NSR programs prior to approval of the redesignation request. 
Nonetheless, Kentucky currently has a fully-approved part D NSR program 
in place. Kentucky's PSD program will become effective in the Northern 
Kentucky 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 
Kentucky SIP meets the requirements of section 110(a)(2) applicable for 
purposes of redesignation.
    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 believes it is reasonable to interpret the conformity SIP 
requirements \7\ as not applying for purposes of evaluating the 
redesignation request under section 107(d) because state conformity 
rules are still required after redesignation and federal conformity 
rules apply where state rules have not been approved. See Wall v. EPA, 
265 F.3d 426 (upholding this interpretation)(6th Cir. 2001); see also 
60 FR 62748 (December 7, 1995, Tampa, Florida). Thus, the Northern 
Kentucky Area has satisfied all applicable requirements for purposes of 
redesignation under section 110 and part D of the CAA.
---------------------------------------------------------------------------

    \7\ 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 motor vehicle emission budgets that are 
established in control strategy SIPs and maintenance plans.
---------------------------------------------------------------------------

b. The Northern Kentucky 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 Kentucky SIP 
for the Northern Kentucky Area for the 1997 Annual PM2.5 
nonattainment area under section 110(k) of the CAA for all requirements 
applicable for purposes of redesignation. EPA may rely on prior SIP 
approvals in approving a redesignation request (see Calcagni Memorandum 
at p. 3; Southwestern Pennsylvania Growth Alliance v. Browner, 144 F.3d 
984, 989-90 (6th Cir. 1998); Wall, 265 F.3d 426) plus any additional 
measures it may approve in conjunction with a redesignation action (see 
68 FR 25426 (May 12, 2003) and citations therein). Following passage of 
the CAA of 1970, Kentucky has adopted and submitted, and EPA has fully 
approved at various times, provisions addressing the various SIP 
elements applicable for the 1997 Annual PM2.5 NAAQS in the 
Northern Kentucky Area (65 FR 37879, June 19, 2000).
    As indicated above, EPA believes that the section 110 elements not 
connected with nonattainment plan submissions and not linked to the 
area's nonattainment status are not applicable requirements for 
purposes of redesignation. 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 Kentucky Portion of 
the Tri-State Cincinnati-Hamilton 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 that Kentucky has demonstrated 
that the observed air quality improvement in the Northern Kentucky Area 
is due to permanent and enforceable reductions in emissions 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 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.

[[Page 65465]]

    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 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.
    NOX SIP Call. 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. Affected states were 
required to comply with Phase I of the SIP Call beginning in 2004, and 
Phase II beginning in 2007. Emission reductions resulting from 
regulations developed in response to the NOX SIP Call are 
permanent and enforceable.
    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 Kentucky to demonstrate attainment and/or maintenance include 
NOX SIP Call regulations, open burning bans, and fugitive 
emissions standards.
    EPA believes that PM2.5 and PM2.5 precursor 
reductions in and around the Tri-state Cincinnati-Hamilton Area have 
contributed to improved air quality. The majority of the improvement in 
ambient PM2.5 concentrations has resulted from reductions in 
emissions from coal fired power plants. In addition, local controls of 
NOX and SO2 installed on Unit 2 of the Duke 
Energy East Bend coal fired utility plant in the Boone County have 
decreased emissions by approximately 38 and 53 percent, for 
NOX and SO2 respectively, between 2005 and 2009. 
These reductions, prompted by the NOX SIP Call and CAIR, 
included upgrades to flue gas desulfurization system in response to 
CAIR and selective catalytic reduction (SCR) system installation as a 
result of the NOX SIP Call. A summary of the emissions 
reductions from 2005 to 2009 is for the entire Tri-state Cincinnati 
Hamilton Area is provided in Table 2. EPA's analysis shows that 
reductions of SO2 and NOX emissions, in tons per 
year (tpy) are greater than decreases in emissions that could be 
attributed to any decreases in electrical demand in the Tri-state 
Cincinnati-Hamilton Area. These reductions are permanent and 
enforceable through the NOX SIP Call and CSAPR.

Table 2--Summary of Emissions Reductions From Coal Fired Utilities in the Tri-state Cincinnati-Hamilton Area \8\
----------------------------------------------------------------------------------------------------------------
                                   Facility--county                                       Emissions difference
---------------------------------------------------------------------------------------   from 2005-2009  (tpy)
                                                                                       -------------------------
                                                                  SO2        Percent                   Percent
                                                                            reduction       NOX       reduction
----------------------------------------------------------------------------------------------------------------
Kentucky
    East Bend--Boone Co.....................................        1,942           53        1,516           38
Indiana
    Tanners Creek--Dearborn Co..............................       30,091           65        4,432           56
Ohio
    Miami Fort--Hamilton Co.................................       52,243           67       10,927           72
    W.H. Zimmer--Clermont Co................................        8,095           36       11,507           76
    Walter C. Beckjord--Clermont Co.........................       24,982           37        2,065           16
----------------------------------------------------------------------------------------------------------------

    Because  PM2.5 concentrations in the Cincinnati-Hamilton 
area are impacted by the transport of sulfates and nitrates, the area's 
air quality is affected by regulation of SO2 and 
NOX emissions from power plants. Table 3, below, presents 
statewide EGU emissions data compiled by EPA's Clean Air Markets 
Division for the years 2002 and 2008. Emissions for 2008 reflect 
implementation of CAIR.
---------------------------------------------------------------------------

    \8\ Data reflects reported actual emissions from the Clean Air 
Markets Division Database http://camddataandmaps.epa.gov/gdm/index.cfm?fuseaction=emissions.wizard. Data is not normalized for 
output.

[[Page 65466]]



            Table 3--Comparison of 2002 and 2008 Statewide EGU NOX and SO2 Emissions (tpy) for States Impacting the Cincinnati-Hamilton Area
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                NOX                                             SO2
                                                         -----------------------------------------------------------------------------------------------
                          State                                                             Net change                                      Net change
                                                               2002            2008          2002-2008         2002            2008          2002-2008
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama.................................................         161,559         112,625         -48,934         448,248         357,546         -90,702
Illinois................................................         174,247         119,930         -54,317         353,699         257,357         -96,342
Indiana.................................................         281,146         190,092         -91,054         778,868         565,459        -213,409
Kentucky................................................         198,599         157,903         -40,696         482,653         344,356        -138,297
Michigan................................................         132,623         107,624         -25,000         342,999         326,501         -16,498
Missouri................................................         139,799          88,742         -51,057         235,532         258,269          22,737
Ohio....................................................         370,497         235,049        -135,448       1,132,069         709,444        -422,625
Pennsylvania............................................         200,909         183,658         -17,251         889,766         831,915         -57,851
Tennessee...............................................         155,996          85,641         -70,356         336,995         208,069        -128,926
West Virginia...........................................         225,371          99,484        -125,887         507,110         301,574        -205,536
Wisconsin...............................................          88,970          47,794         -41,175         191,257         129,694         -61,563
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................       2,129,716       1,428,541        -701,175       5,699,195       4,290,184      -1,409,011
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 3 shows that states impacting the Cincinnati-Hamilton area 
reduced NOX and SO2 emissions from EGUs by 
701,175 tons per year (tpy) and 1,409,011 tpy, respectively, between 
2002 and 2008. In summary, reductions of EGU emissions of 
SO2 and NOX contributed to the air quality 
improvement in the Tri-state Cincinnati-Hamilton Area. Given the 
remanded status of CAIR, this air quality improvement could not be 
considered permanent at the time DAQ submitted its request for 
redesignation of the Northern Kentucky Area. However, since that time 
the CSAPR has been finalized, which mandates even greater reductions 
than have already occurred under CAIR and, more importantly, more 
reductions than are needed to maintain the standard in the Area. 
Therefore, the final promulgation of the CSAPR in combination with the 
other measures cited by Kentucky and described above, ensure that the 
emission reductions that led the Area to attain the 1997 Annual 
PM2.5 NAAQS can be considered permanent and enforceable for 
purposes of section 107(d)(3)(E)(iii).

Criteria (4)--The Northern Kentucky 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 
Northern Kentucky 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 Commonwealth of Kentucky 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 such 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 the Commonwealth's maintenance plan includes all the 
necessary components and is thus proposing to approve it as a revision 
to the Kentucky SIP.
b. Attainment Emissions Inventory
    The Tri-state Cincinnati-Hamilton Area attained the 1997 Annual 
PM2.5 NAAQS based on monitoring data for the 3-year period 
from 2007-2009. The Commonwealth selected 2008 as the attainment 
emission inventory year. The attainment inventory identifies the level 
of emissions in the Area, which is sufficient to attain the 1997 Annual 
PM2.5 NAAQS. The Commonwealth began development of the 
attainment inventory by first generating a baseline emissions inventory 
for the Tri-state Cincinnati-Hamilton Area. As noted above, the year 
2008 was chosen as the base year for developing a comprehensive 
emissions inventory for the primary PM2.5 precursors, 
SO2 and NOX, for which projected emissions could 
be developed for 2011, 2015, 2018, and 2021. The projected inventory 
included with the maintenance plan estimates emissions forward to 2021, 
which is at the 10-year interval required in section 175(A) of the CAA. 
In addition to comparing the final year of the plan, Kentucky compared 
interim years to the 2008 baseline to demonstrate that these years are 
also expected to show continued maintenance of the annual fine 
particulate matter standard.
    The emissions inventories are composed of four major types of 
sources: point, area, on-road mobile and non-road mobile. The 
attainment and future year emissions inventories were projected by Lake 
Michigan Air Directors Consortium using the 2005 base year inventory 
methodology as provided in the Appendix D of Kentucky's Submittal. The 
future year emissions inventories have been estimated using projected 
rates of growth in population, traffic, economic activity, expected 
control programs, and

[[Page 65467]]

other parameters. Non-road mobile emissions estimates were based on the 
EPA's non-road mobile model, with the exception of the railroad 
locomotives, commercial marine, and aircraft engine. These emissions 
are estimated by taking activity data, such as landings and takeoffs, 
and multiplying by an Economic Growth Analysis System emission factor. 
On-road mobile source emissions were calculated using EPA's MOVES2010 
mobile emission factors model. The 2008 SO2, NOX 
and PM2.5 emissions for the Tri-state Cincinnati-Hamilton 
Area, as well as the emissions for other years, were developed 
consistent with EPA guidance and are summarized in Table 5 of the 
following subsection discussing the maintenance demonstration.
c. Maintenance Demonstration
    The January 27, 2011, final submittal includes a maintenance plan 
for the Northern Kentucky 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 emissions 
levels.
    (ii) Uses 2008 as the attainment year and includes future emission 
inventory projections for 2011, 2015, 2018, and 2021.
    (iii) Identifies an ``out year'' at least 10 years after EPA review 
and potential approval of the maintenance plan. per 40 CFR part 93, 
NOX and PM2.5 MVEBs were established for the last 
year (2021) of the maintenance plan. Additionally, Kentucky also opted 
to establish MVEBs for the interim year of 2015. See section VI below.
    (iv) Provides, as shown in Tables 4, 5, and 6 below, the actual and 
projected emissions inventories, in tpy, for the Northern Kentucky 
Area, and Table 7 below shows the actual and emissions inventories for 
the entire Tri-state Cincinnati-Hamilton Area.

                              Table 4--Annual PM2.5 for the Northern Kentucky Area
----------------------------------------------------------------------------------------------------------------
                     PM2.5                                Actual and projected estimated emissions (tpy)
----------------------------------------------------------------------------------------------------------------
                     Sector                          2008         2011         2015         2018         2021
----------------------------------------------------------------------------------------------------------------
Point..........................................       246.14       260.41       280.39       295.19       310.51
Area...........................................       921.66       922.39       923.39       924.46       925.55
Nonroad........................................       497.22       457.58       408.89       372.32       338.50
Mobile.........................................       645.62       513.85       371.11       320.84       275.38
                                                ----------------------------------------------------------------
    Total......................................     2,310.64     2,154.23     1,983.78     1,912.82     1,849.94
----------------------------------------------------------------------------------------------------------------


                               Table 5--Annual NOX for the Northern Kentucky Area
----------------------------------------------------------------------------------------------------------------
                      NOX                                 Actual and projected estimated emissions (tpy)
----------------------------------------------------------------------------------------------------------------
                     Sector                          2008         2011         2015         2018         2021
----------------------------------------------------------------------------------------------------------------
Point..........................................     2,094.21     1,891.67     1,646.47     1,549.91     1,457.54
Area...........................................     4,015.59     4,095.47     4,203.83     4,286.15     4,369.53
Nonroad........................................     8,168.48     7,219.36     6,086.95     5,202.60     4,410.56
Mobile.........................................    13,114.20    10,135.95     6,996.22     5,618,08     4,435.96
                                                ----------------------------------------------------------------
    Total......................................    27,392.48    23,342.46    18,933.47    16,656.74    14,673.59
----------------------------------------------------------------------------------------------------------------


                               Table 6--Annual SO2 for the Northern Kentucky Area
----------------------------------------------------------------------------------------------------------------
                      SO2                                 Actual and projected estimated emissions (tpy)
----------------------------------------------------------------------------------------------------------------
                     Sector                          2008         2011         2015         2018         2021
----------------------------------------------------------------------------------------------------------------
Point..........................................     2,844.98     2,761.67     2,653.54     2.613.08     2,573.07
Area...........................................     2,756.35     2,785.21     2,824.05     2,853.38     2,882.91
Nonroad........................................       832.54       728.03       604.74       513.85       433.13
Mobile.........................................        42.74        45.94        50.50        54.46        58.62
                                                ----------------------------------------------------------------
    Total......................................     7,422.44     6,476.61     6,132.83     6,034.77     5,947.73
----------------------------------------------------------------------------------------------------------------


                     Table 7--Emission Estimates for the Tri-State Cincinnati-Hamilton Area
----------------------------------------------------------------------------------------------------------------
                              Year                                   NOX (tpy)       SO2 (tpy)      PM2.5 (tpy)
----------------------------------------------------------------------------------------------------------------
2008............................................................      148,706.15      117,016.14        8,904.64
2015............................................................      105,712.02      112,250.26        8,634.55
2021............................................................       78,819.13       88,510.27        8,202.63
    Difference from 2008 to 2021................................      -69,887.02      -28,505.87         -702.01
----------------------------------------------------------------------------------------------------------------

    Tables 4 through 7 summarize the 2008 and future projected 
emissions of direct PM2.5 and precursors from the counties 
in the Northern Kentucky Area, and Tri-state Cincinnati-Hamilton Area. 
As reflected in these tables, future emissions for the relevant 
pollutants and precursors are expected to be below the'' attainment 
level'' emissions in

[[Page 65468]]

2008, and thus illustrates that the Northern Kentucky and Tri-state 
Cincinnati-Hamilton Area as a whole are expected to continue to attain 
the 1997 PM2.5 NAAQS through 2021. In situations where local 
emissions are the primary contributor to nonattainment, if the future 
projected emissions in the nonattainment area remain at or below the 
baseline emissions in the nonattainment area, then the ambient air 
quality standard should not be violated in the future. EPA and the 
Commonwealth believe that a significant portion of the nonattainment 
problem in the Northern Kentucky Area is due to transport of power 
plant emissions from power plants outside the nonattainment area. EPA 
recently finalized the CSAPR, which mandates substantial regional 
reductions of SO2 and NOX emissions in the 
Eastern United States.
    In CSAPR, EPA quantifies the reductions needed in specific states 
to address each covered state's significant contribution to 
nonattainment and interference with maintenance of specific NAAQS. In 
that action, EPA also established FIPs to ensure that the significant 
contribution to nonattainment and interference with maintenance 
identified by EPA is prohibited.
    The modeling for the final CSAPR identified nine states, including 
Kentucky, Indiana, and Ohio, that have emissions that affect the Tri-
state Cincinnati-Hamilton Area's air quality. Table 8, below, shows 
state-wide emission estimates for SO2 and NOX for 
2005, 2012, and 2014, for the nine eastern states that were determined 
to have a significant effect on the Tri-state Cincinnati-Hamilton 
Area's air quality in relation to the 1997 Annual NAAQS. The values for 
2005 reflect base year emissions estimates. The values for 2012 reflect 
estimates for a scenario in which neither the CAIR nor a replacement 
for the CAIR is in effect, reflecting a baseline that EPA used in 
developing its proposed rule. The values for 2014 reflect estimates of 
the mandated CSAPR reductions. These estimates are taken from Tables 6-
1 (NOX) and 6-2 (SO2) of the emissions technical 
support document for the Transport Rule, available at http://www.epa.gov/airquality/transport/pdfs/TR_Proposal_Emissions_TSD.pdf. 
These estimates exclude emissions from fires, which are a small 
fraction of the inventory (well under 0.1 percent) that is projected to 
remain constant and does not materially affect the comparison here.

   Table 8--SO2 and NOX Emissions for States Significantly Contributing to the Tri-State Cincinnati-Hamilton Area 1997 Annual PM2.5 Nonattainment Area
                                                                          (TPY)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           SO2 emissions                                   NOX emissions
                                                         -----------------------------------------------------------------------------------------------
                          State                                              2012 (w/o      2014 (with                                      2014 (with
                                                             2005 base       transport       transport       2005 base       2012 (w/o       transport
                                                                               rule)           rule)                      transport rule       rule)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Kentucky................................................         572,424         780,885         182,630         435,837         345,073         247,270
Ohio....................................................       1,276,270       1,076,470         361,138         816,239         552,864         453,167
Indiana.................................................       1,047,371         986,601         396,403         614,861         505,039         386,251
Illinois................................................         516,950         866,376         304,834         773,276         542,886         480,743
Michigan................................................         490,190         415,042         300,560         638,546         478,625         410,319
Missouri................................................         421,979         570,575         315,283         505,195         353,407         317,092
Pennsylvania............................................       1,173,296       1,119,680         303,071         704,936         566,301         454,248
Tennessee...............................................         388,191         708,905         218,065         471,705         338,154         270,171
West Virginia...........................................         535,586         645,431         184,341         294,016         206,630         144,970
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................       6,422,257       7,169,965       2,566,325       5,254,611       3,888,979       3,164,231
--------------------------------------------------------------------------------------------------------------------------------------------------------

    While EPA has not made emission estimates for 2021 that are 
premised on the implementation of the CSAPR, Table 8 above shows 
emission estimates that EPA has made for 2014 that include reductions 
from the implementation of the CSAPR. These emission estimates show a 
substantial decline in SO2 and NOX emissions 
comparable to that shown in Kentucky's maintenance plan. Given the 
substantial degree of control of the various electric EGUs in the Tri-
state Cincinnati-Hamilton Area, EPA finds Kentucky's projection of such 
emission declines through 2021 to be appropriate forecasts of future 
emissions. The promulgation of the CSAPR requires additional control 
beyond those projected by Kentucky will result in emission reductions 
in excess of those needed for continued maintenance of the 
PM2.5 Annual NAAQS in the Northern Kentucky Area.
    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. Kentucky has projected emissions as described 
previously and determined that emissions in the Northern Kentucky Area 
will remain below those in the attainment year inventory for the 
duration of the maintenance plan.
    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. Kentucky has decided to allocate a portion of the available 
safety margins to the Area's NOX and PM2.5 MVEBs 
for both 2015 and 2021 for the Northern Kentucky Area and has 
calculated the safety margin in its submittal. Specifically, 18.56 tpy 
and 27.54 tpy of the available PM2.5 safety margin for the 
Kentucky portion of the Tri-state Cincinnati-Hamilton Area will be 
allocated to the 2015 and 2021 Northern Kentucky Area MVEBs, 
respectively. In addition, 1,049.43 tpy and 963.17 tpy of the available 
NOX safety margins will be allocated to the 2015 and 2021 
MVEBs, respectively. This allocation and the resulting available safety 
margin for the Northern Kentucky Area are discussed further in section 
VI of this proposed rulemaking.
d. Monitoring Network
    There are currently two monitors measuring PM2.5 in the 
Tri-state Cincinnati-Hamilton Area (two in the Northern Kentucky Area 
and twelve in the remainder in the Ohio portion of this Area). The 
Commonwealth of Kentucky, through DAQ, has committed to continue 
operation of the monitors in the Northern Kentucky Area in

[[Page 65469]]

compliance with 40 CFR part 58 and have thus addressed the requirement 
for monitoring. EPA approved Kentucky's 2010 monitoring plan on October 
8, 2010. Ohio has made a similar commitment in their redesignation and 
maintenance plan submission to EPA for this Area. There is no monitor 
in the Indiana portion of this Area.
e. Verification of Continued Attainment
    The Commonwealth of Kentucky, through DAQ, has the legal authority 
to enforce and implement the requirements of the Northern Kentucky 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 Northern 
Kentucky Area as required in the Air Emissions Reporting Rule (AERR) 
and Consolidated Emissions Reporting Rule (CERR). 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, then DAQ will re-project emissions for the Northern 
Kentucky 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 Commonwealth. 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).
    In the January 27, 2011, submittal, Kentucky affirms that all 
programs instituted by the Commonwealth and EPA will remain enforceable 
and that sources are prohibited from reducing emissions controls 
following the redesignation of the Area. The contingency plan included 
in the submittal includes a triggering mechanism to determine when 
contingency measures are needed and a process of developing and 
implementing appropriate control measures. The Commonwealth of Kentucky 
will use actual ambient monitoring data as the triggering event to 
determine when contingency measures should be implemented.
    Kentucky has identified a primary trigger as occurring when the 3-
year average of annual mean PM2.5 concentration is greater 
than the 1997 Annual PM2.5 NAAQS of 15.0 [mu]g/m\3\, as 
described in the Tri-state Cincinnati-Hamilton Area. In the event of a 
monitored violation of the 1997 Annual NAAQS, the Commonwealth commits 
to adopt one or more of the following control measures within nine 
months in order to bring the Area into compliance. All regulatory 
programs will be implemented within 18 months of the triggering 
monitored violation:
     Implementation of a program to require additional 
emissions reductions on stationary sources;
     Implementation of fuel programs, including incentives for 
alternative fuels;
     Restriction of certain roads or lanes, or construction of 
such lanes for use by passenger buses or high-occupancy vehicles;
     Trip-reduction ordinances;
     Employer-based transportation management plans, including 
incentives;
     Programs to limit or restrict vehicle use in downtown 
areas, or other areas of emission concentration, particularly during 
periods of peak use;
     Programs for new construction and major reconstruction of 
paths or tracks for use by pedestrians or by non-motorized vehicles 
when economically feasible and in the public interest;
     Diesel reduction emissions strategies, including diesel 
retrofit programs;
     Any other control program that is developed and deemed to 
be more advantageous for the area.
    A secondary trigger will occur in the event that a measured value 
of the weighted annual mean is 15.5 [mu]g/m\3\ or greater in a single 
calendar year in any portion of the maintenance area. In such a case, 
the Commonwealth will evaluate existing controls measures and determine 
whether any further emission reduction measures should be implemented. 
In addition to the triggers indicated above, Kentucky will monitor 
regional emissions through the CERR and AERR, and compare them to the 
projected inventories and the attainment year inventory.
    EPA has concluded that the maintenance plan adequately addresses 
the five basic components of a maintenance plan: attainment inventory, 
monitoring network, verification of continued attainment, and a 
contingency plan. Therefore, the maintenance plan SIP revision 
submitted by the Commonwealth of Kentucky for the Northern Kentucky 
Area meets the requirements of section 175A of the CAA and is 
approvable.

VI. What is EPA's analysis of Kentucky's proposed NOX and 
PM2.5 MVEBs for the Northern Kentucky 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, a 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

[[Page 65470]]

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.
    After interagency consultation with the transportation partners for 
the Tri-state Cincinnati-Hamilton Area, Kentucky has elected to develop 
MVEBs for NOX and PM2.5 for the Northern Kentucky 
Area (i.e., Boone, Campbell and Kenton Counties).\9\ Kentucky is 
developing these MVEBs, as required, for the last year of its 
maintenance plan, 2021. Kentucky also established MVEBs for the interim 
year of 2015. The MVEBs reflect the total on-road emissions for 2015 
and 2021, plus an allocation from the available NOX and 
PM2.5 safety margin. Under 40 CFR 93.101, the term safety 
margin is the difference between the attainment level (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. The NOX and PM2.5 MVEBs and 
allocation from the safety margin were developed in consultation with 
the transportation partners and were added to account for uncertainties 
in population growth, changes in model vehicle miles traveled and new 
emission factor models. The NOX and PM2.5 MVEBs 
for the Northern Kentucky Area are defined in Table 9 below.
---------------------------------------------------------------------------

    \9\ MVEBs for the remaining portion of the Tri-state Cincinnati-
Hamilton Area is addressed in the Ohio and Indiana submissions for 
this Area, and will be addressed through a separate EPA action.

                  Table 9--Northern Kentucky Area MVEBs
                                  [tpy]
------------------------------------------------------------------------
                                                       PM2.5      NOX
------------------------------------------------------------------------
2015 Mobile Emissions...............................   371.11   6,996.22
2015 Safety Margin Allocation.......................    18.56   1,049.43
                                                     -------------------
    2015 Total Mobile Budget........................   389.67   8,045.65
------------------------------------------------------------------------
2021 Mobile Emissions...............................   275.38   6,421.15
2021 Safety Margin Allocation.......................    27.54     963.17
                                                     -------------------
    2021 Total Mobile Budget........................   302.92   7,384.32
------------------------------------------------------------------------

    As mentioned above, Kentucky has chosen to allocate a portion of 
the available safety margin for the Northern Kentucky Area to the 
NOX and PM2.5 MVEBs for 2015 and 2021. The 
NOX safety margin allocation is 1,049.43 tpy and 963.17 tpy 
for 2015 and 2021, respectively. Likewise, the PM2.5 safety 
margin allocation is 18.56 tpy and 27.54 tpy for 2015 and 2021, 
respectively.
    Through this rulemaking, EPA is proposing to approve the MVEBs for 
PM2.5 and NOX for 2015 and 2021, 
including the allocation from the PM2.5 and NOX 
safety margins, for the Northern Kentucky 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 Northern Kentucky Area are approved or found 
adequate (whichever is completed first), they must be used for future 
conformity determinations and the metropolitan planning organizations 
must use the MOVES model in future PM2.5 conformity 
determinations for their long-range transportation plans and 
transportation improvement plans. After thorough review, EPA has 
preliminarily 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.

VII. What is the status of EPA's adequacy determination for the 
proposed NOX and PM2.5 MVEBs for 2015 and 2021 
for the Northern Kentucky Area?

    When reviewing submitted ``control strategy'' SIPs or maintenance 
plans containing MVEBs, 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 MVEBs 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.'' This guidance was finalized in the 
Transportation Conformity Rule Amendments for the ``New 8-Hour Ozone 
and PM2.5 National Ambient Air Quality Standards and 
Miscellaneous Revisions for Existing Areas; Transportation Conformity 
Rule Amendments--Response to Court Decision and Additional Rule 
Change,'' on July 1, 2004 (69 FR 40004). Additional information on the 
adequacy 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, Kentucky's maintenance plan submission 
includes NOX and PM2.5 MVEBs for the Northern 
Kentucky Area for 2015 and 2021, the last year of the maintenance plan. 
EPA reviewed the NOx and PM2.5 MVEBs through the adequacy 
process. The Kentucky SIP submission, including the Northern Kentucky 
Area NOX and PM2.5 MVEBs, was open for public 
comment on EPA's adequacy Web site on February 14, 2011, found at: 
http://www.epa.gov/otaq/stateresources/transconf/currsips.htm. The EPA 
public comment period on adequacy for the MVEBs for 2015 and 2021 for 
Northern Kentucky Area closed on March 16, 2011. EPA did not receive 
any comments on the adequacy of the MVEBs, nor did EPA receive any 
requests for the SIP submittal.
    EPA intends to make its determination on the adequacy of the 2015 
and 2021 MVEBs for the Northern Kentucky Area for transportation 
conformity purposes in the near future by completing the adequacy 
process that was started on February 14, 2011. After EPA finds the 2015 
and 2021 MVEBs adequate or approves them, the new MVEBs for 
NOX and PM2.5 must be used for future 
transportation conformity determinations. For required regional 
emissions analysis years between 2015 and 2021, the applicable budgets 
will be the new 2015 MVEBs established in the maintenance plan. 
Starting in 2021, the applicable budgets will be the new 2021 MVEBs. 
Both the 2015 and 2021 MVEBs are defined in section VII of this 
proposed rulemaking.

VIII. What is EPA's analysis of the proposed 2008 base year emissions 
inventory for the Northern Kentucky Area?

    As discussed in section V above, section 172(c)(3) of the CAA 
requires areas to submit a base year emissions inventory. As part of 
Kentucky's request to redesignate the Northern Kentucky

[[Page 65471]]

Area, the Commonwealth submitted a 2008 attainment 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. Kentucky's 
submittal documents 2008 emissions in the Northern Kentucky Area in 
units of tpy. Table 10 below provides a summary of the 2008 emissions 
of direct PM2.5, NOX, and SO2 for the 
Northern Kentucky Area.

               Table 10--Northern Kentucky Area 2008 Emissions for PM2.5, NOX, by Source Category
                                              [tpy (percent total)]
----------------------------------------------------------------------------------------------------------------
                                                               PM2.5               NOX                SO2
----------------------------------------------------------------------------------------------------------------
Point Source Total.....................................      246.14 [10.7]     2094.21 [7.6]     2,844.98 [43.9]
Area Source Total......................................      921.66 [39.9]    4,015.59 [14.7]    2,756.35 [42.6]
On-Road Mobile Source Total............................      645.62 [27.9]   13,114.20              42.74 [0.7]
Non-Road Mobile Source Total...........................      497.22 [21.5]    8,168.48 [29.8]      832.54 [12.9]
                                                        --------------------------------------------------------
    Total for all Sources..............................    2,310.64          27,392.48           6,476.61
----------------------------------------------------------------------------------------------------------------

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

IX. Proposed Actions on the Redesignation Request and Maintenance Plan 
SIP Revisions Including Approval of the NOX and 
PM2.5 MVEBs for 2015 and 2021 for the Northern Kentucky Area

    EPA previously proposed to determine that the Tri-state Cincinnati-
Hamilton Area was attaining the 1997 PM2.5 NAAQS on June 3, 
2011, at 76 FR 32110. EPA did not receive any comments, adverse or 
otherwise, on its June 3, 2011, and will take final action on this 
determination through an action separate from today's action. Further, 
EPA is now taking three separate but related actions regarding the 
Area's redesignation and maintenance of the 1997 Annual 
PM2.5 NAAQS.
    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 Tri-state Cincinnati-Hamilton Area continues to attain the 1997 
Annual PM2.5 NAAQS. Provided that EPA takes final action to 
approve the 2008 base emissions inventory, EPA is proposing to 
determine that the Northern Kentucky 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 Kentucky's redesignation request for the 
Northern Kentucky Area.
    Second, EPA is proposing to approve Kentucky's 2008 emissions 
inventory for the Northern Kentucky Area (under CAA section 172(c)(3)). 
Kentucky selected 2008 as the attainment emissions inventory year for 
the Northern Kentucky Area. This attainment inventory identifies a 
level of emissions in the Area (as a part of the Tri-state Cincinnati-
Hamilton 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, EPA is proposing to approve the maintenance plan for the 
Northern Kentucky Area, including the PM2.5 and 
NOX MVEBs for 2015 and 2021 submitted by Kentucky for the 
Northern Kentucky Area, 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 MVEBs 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 PM2.5 and NOX 
MVEBs for 2015 and 2021 in accordance with 40 CFR 93.118(f)(1). Within 
24 months from the effective date of EPA's adequacy determination or 
EPA's final action to approve the MVEBs (whichever comes first), the 
transportation partners will need to demonstrate conformity to the new 
PM2.5 and NOX MVEBs pursuant to 40 CFR 93.104(e).
    If finalized, approval of the redesignation request would change 
the official designations of Boone, Campbell, and Kenton in the 
Northern Kentucky 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 Kentucky SIP, the maintenance plan for 
the Northern Kentucky Area, the emissions inventory submitted with the 
maintenance plan, and the 2015 and 2021 MVEBs.

X. 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 issues being proposed for approval today. Approval 
of Kentucky's redesignation request would change the legal designation 
of Boone, Campbell, and Kenton Counties in Kentucky for the 1997 Annual 
PM2.5 NAAQS, found at 40 CFR part 81, from nonattainment to 
attainment. Approval of the Commonwealth's request would also 
incorporate a plan for maintaining the 1997 Annual PM2.5 
NAAQS in the Northern Kentucky Area through 2021 into the Kentucky SIP. 
This maintenance plan includes contingency measures to remedy any 
future violations of the 1997 Annual PM2.5 NAAQS and 
procedures for evaluation of potential violations. The maintenance plan 
also establishes NOX and PM2.5 MVEBs for the 
Northern Kentucky Area portion of the Tri-state Cincinnati-Hamilton 
Area. The proposed NOX and PM2.5 MVEBs for 2021 
for the Northern Kentucky Area are 7,384.32 tpy and 302.92 tpy, 
respectively. Kentucky also chose to establish interim year MVEBs for 
2015 of 8,045.65 tpy and 389.67 tpy for NOX and 
PM2.5, respectively. Final action would also approve the 
Northern Kentucky Area's emissions inventory under CAA section 
172(c)(3). Additionally, EPA is notifying the public of the status of 
its adequacy determination for the NOX and PM2.5 
MVEBs for 2015 and 2021 pursuant to 40 CFR 93.118(f)(1).

XI. 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

[[Page 65472]]

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 does not impose additional requirements beyond 
those imposed by state law. For that 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 economically significant regulatory actions based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Are not significant regulatory actions 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 Commonwealth, 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: October 6, 2011.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.
[FR Doc. 2011-26773 Filed 10-20-11; 8:45 am]
BILLING CODE 6560-50-P