[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Proposed Rules]
[Pages 7483-7489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02844]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2014-0250; FRL-9942-16-Region 4]


Air Plan Approval; Tennessee: Removal of I/M Program in Memphis 
and Revisions to the 1997 8-Hour Ozone Maintenance Plan for Shelby 
County, Tennessee

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve the State of Tennessee's May 23, 2014, State Implementation 
Plan (SIP) revision, submitted through the Tennessee Department of 
Environment and Conservation (TDEC) on behalf of the Shelby County 
Health Department (SCHD), seeking to modify the SIP by removing the 
Inspection and Maintenance (I/M) program in the City of Memphis, 
Tennessee, and by incorporating Shelby County's revised maintenance 
plan for the 1997 8-hour ozone national ambient air quality standards 
(NAAQS). Among other things, the revised maintenance plan updates the 
emissions inventory estimates and the motor vehicle emissions budgets 
(MVEBs) for the years 2006 and 2021 and contains an emissions reduction 
measure to offset the emissions increase expected from the termination 
of City of Memphis I/M program. EPA has preliminarily determined that 
Tennessee's May 23, 2014, SIP revision is consistent with the 
applicable provisions of the Clean Air Act (CAA or Act).

DATES: Written comments must be received on or before March 14, 2016.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R04-OAR-2014-0250 by one of the following methods:
    1. www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. Email: [email protected].
    3. Fax: (404) 562-9019.
    4. Mail: EPA-R04-OAR-2014-0250, Air Regulatory Management Section, 
Air Planning and Implementation Branch,

[[Page 7484]]

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, Air 
Regulatory Management Section, Air Planning and Implementation 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 a.m. to 4:30 p.m., 
excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R04-OAR-
2014-0250. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
www.regulations.gov, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit through www.regulations.gov or 
email, information that you consider to be CBI or otherwise protected. 
The www.regulations.gov Web site is an ``anonymous access'' system, 
which means EPA will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an email 
comment directly to EPA without going through www.regulations.gov, your 
email 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 
www.regulations.gov index. Although listed in the index, some 
information may not be 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 
www.regulations.gov or in hard copy at the Air Regulatory Management 
Section, Air Planning and Implementation 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 a.m. to 4:30 p.m., excluding federal holidays.

FOR FURTHER INFORMATION CONTACT: Richard Wong, Air Regulatory 
Management Section, Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 
30303-8960. Mr. Wong may be reached by phone at (404) 562-8726 or via 
electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. What is being proposed?
II. What is the background of the Shelby County Maintenance area?
III. What are the requirements of CAA Sections 110(l) and 193?
IV. What is EPA's analysis of Tennessee's submittal and request?
V. Proposed Action
VI. Statutory and Executive Order Reviews

I. What is being proposed?

    EPA is proposing to approve Tennessee's May 23, 2014, SIP revision 
seeking to remove the City of Memphis I/M program from the SIP and to 
incorporate Shelby County's revised maintenance plan for the 1997 8-
hour ozone NAAQS into the SIP.\1\ The maintenance plan includes, among 
other things, an emissions reduction measure to offset the emissions 
increase expected from the termination of City of Memphis I/M program 
as well as revised emission inventory estimates and revised MVEBs based 
upon new modeling associated with the termination of the I/M program 
and the inclusion of the offset measure. The SIP revision also contains 
a technical demonstration that the requested removal of the I/M program 
will not interfere with attainment or maintenance of any NAAQS or with 
any other applicable requirement of the CAA.
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    \1\ The contingency measures portion of Shelby County's 
maintenance plan for the 1997 8-hour ozone NAAQS, as incorporated 
into the SIP, includes the implementation of an I/M program in 
Shelby County as a contingency measure should a monitored violation 
of the 1997 8-hour ozone NAAQS occur in the former Memphis, TN-AR 
nonattainment area. The proposed SIP revision will not remove the I/
M program from the contingency measures in the SIP-approved 
maintenance plan.
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II. What is the background of the Shelby County maintenance area?

    Shelby County was designated as nonattainment for the carbon 
monoxide (CO) NAAQS on March 3, 1978. See 43 FR 8962. Local 
transportation sources in the City of Memphis were identified as the 
prime contributors to monitored CO violations in Shelby County at that 
time. The City of Memphis I/M program was adopted as a control strategy 
to attain the CO NAAQS.
    On July 26, 1994 (59 FR 37939), EPA redesignated Shelby County to 
attainment for the CO standard and approved the initial 10-year CO 
maintenance plan for Shelby County. Subsequently, further improvements 
in automotive technology led to a consistent reduction in locally 
monitored levels of CO. On October 25, 2006, EPA approved the required 
second 10-year CO maintenance plan which demonstrated that I/M was no 
longer needed to maintain the CO NAAQS. See 71 FR 62384.
    On April 30, 2004, EPA designated Shelby County, Tennessee, and 
Crittenden County, Arkansas, as nonattainment for the 1997 8-hour ozone 
NAAQS, with a classification of `moderate' (hereinafter collectively 
referred to as the ``Memphis 1997 8-hour Ozone Area''). See 69 FR 
23858. Under CAA section 182(b)(4), moderate ozone nonattainment areas 
with a census-defined urbanized area population over a given threshold 
are required to adopt basic I/M as part of the required SIP.
    Following the initial designations for the 1997 8-hour ozone 
standard, Shelby County, the State of Tennessee, Crittenden County, and 
the State of Arkansas adopted additional measures to control ozone-
forming emissions in the region and petitioned EPA to use its 
discretion under CAA section 181(a)(4) to reclassify the area from 
moderate to marginal. On September 22, 2004, EPA granted the petition 
to reclassify the area, which removed the SIP planning requirements 
mandated of moderate ozone nonattainment areas, including the adoption 
of a mandatory I/M program, and reset the attainment deadline to June 
15, 2007. See 69 FR

[[Page 7485]]

56697. The Area failed to attain the 1997 8-hour ozone NAAQS by the 
marginal area attainment deadline. Consequently, on March 28, 2008, EPA 
reclassified the Area as a moderate nonattainment area. See 73 FR 
16547. This reclassification reset the attainment deadline to June 15, 
2010, with an attainment plan SIP revision due on March 1, 2009, to 
address all CAA requirements for a moderate ozone nonattainment area, 
including an I/M program in Shelby County pursuant to CAA section 
184(b)(4).
    The end of the 2008 ozone monitoring season resulted in a design 
value for the Memphis 1997 8-hour Ozone Area that met the NAAQS. 
Tennessee, Mississippi, and Arkansas prepared separate, but 
coordinated, redesignation requests and maintenance plans for their 
respective portions of the Area. Tennessee, on behalf of Shelby County, 
submitted the redesignation request and maintenance plan for its 
portion of the 1997 8-hour Ozone Area to EPA on February 26, 2009, 
prior to the attainment plan SIP revision due date.
    EPA approved Tennessee's redesignation request and maintenance plan 
on January 4, 2010. See 75 FR 56. Although there was no longer a 
mandatory requirement to implement I/M in Shelby County under section 
184(b)(4) of the CAA, the City of Memphis continued to operate its I/M 
program, and the SIP-approved maintenance plan for the 1997 8-hour 
ozone NAAQS includes the implementation of a basic I/M program in 
Shelby County as a contingency measure in the event that the 1997 8-
hour ozone NAAQS is violated in the 1997 8-hour Ozone Area after 
redesignation. In mid-2012, the Memphis City Council voted to defund 
the City of Memphis I/M program beginning with Fiscal Year 2013/2014. 
Vehicle inspection operations at all four City of Memphis inspection 
stations ended on June 28, 2013. Tennessee's May 23, 2014, SIP 
submission addresses the termination of this program.
    On March 12, 2008, EPA promulgated a revised 8-hour ozone NAAQS of 
0.075 parts per million (ppm). See 73 FR 16436 (March 27, 2008). EPA 
designated Shelby County; Crittenden County, Arkansas; and a portion of 
Desoto County, Mississippi, as a marginal nonattainment area for the 
2008 8-hour ozone NAAQS on April 30, 2012 (effective July 20, 2012) 
(hereinafter collectively referred to as the ``Memphis 2008 8-hour 
Ozone Area''). See 77 FR 30088 (May 21, 2012). Currently, monitoring 
data for the Memphis 2008 8-hour Ozone Area indicates that the Area has 
attaining data for the 2008 8-hour ozone NAAQS. As noted previously, 
marginal ozone nonattainment areas are not required to adopt an I/M 
program.

III. What are the requirements of CAA Sections 110(l) and 193?

    Section 110(l) of the CAA requires that a revision to the SIP not 
interfere with any applicable requirement concerning attainment and 
reasonable further progress (RFP) (as defined in section 171), or any 
other applicable requirement of the Act. Tennessee's May 23, 2014, SIP 
revision includes a demonstration that the requested actions comply 
with section 110(l) of the CAA. EPA evaluates each section 110(l) 
noninterference demonstration on a case-by-case basis considering the 
circumstances of each SIP revision.
    EPA interprets 110(l) as applying to SIP revisions for all areas of 
the country, whether attainment, nonattainment, unclassifiable, or 
maintenance for one or more of the six criteria pollutants.\2\ EPA also 
interprets section 110(l) to require a demonstration addressing all 
criteria pollutants whose emissions and/or ambient concentrations may 
change as a result of the SIP revision. The degree of analysis focused 
on any particular NAAQS varies depending on the nature of the emissions 
associated with the proposed SIP revision.
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    \2\ The six NAAQS for which EPA establishes health and welfare 
based standards are CO, lead, NO2, ozone, PM, and 
SO2.
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    In nonattainment areas, EPA will generally not approve a SIP 
revision under 110(l) that allows additional emissions of pollutants 
for which the area is designated nonattainment in the absence of 
equivalent emissions reductions or an attainment demonstration 
addressing the proposed changes to the SIP. ``Equivalent'' emissions 
reductions are reductions that are equal to or greater than those 
reductions achieved by the control measure approved in the SIP. To show 
that compensating emissions reductions are equivalent, adequate 
justification must be provided. The compensating, equivalent reductions 
must represent actual emissions reductions achieved in a 
contemporaneous time frame to the change of the existing SIP control 
measure in order to preserve the status quo level of air emissions. If 
the status quo is preserved, noninterference is demonstrated. In 
addition to being contemporaneous, the equivalent emissions reductions 
must also be permanent, enforceable, quantifiable, and surplus.
    Section 193 of the CAA prohibits the modification of control 
measures in effect before November 15, 1990, in a nonattainment area 
for any air pollutant unless the modification insures equivalent or 
greater emission reductions of that pollutant. Shelby County included a 
section 193 analysis in its SIP revision because it requested removal 
of the I/M program from the SIP, because Shelby County is in a 
nonattainment area for the 2008 8-hour ozone NAAQS, and because I/M 
programs may impact ozone air quality.\3\ As discussed in Section IV, 
Shelby County included emissions reductions from the closure of the 
Cleo, Inc. (Cleo) facility to offset the estimated increase in 
emissions due to the termination of the City of Memphis I/M program and 
to support the State's analysis of its requested actions under CAA 
sections 110(l) and 193 as they relate to the ozone NAAQS.\4\
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    \3\ Shelby County is designated nonattainment only for the 2008 
8-hour ozone NAAQS.
    \4\ The Cleo facility was a gift wrap manufacturing plant and 
warehouse located at 4025 Viscount Avenue, Memphis, Tennessee.
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IV. What is EPA's analysis of Tennessee's submittal and request?

    Tennessee's May 23, 2014, SIP revision seeks to remove the City of 
Memphis I/M program from the SIP and incorporate Shelby County's 
revised maintenance plan for the 1997 8-hour ozone NAAQS. The 
maintenance plan includes, among other things, an emissions reduction 
measure to offset the emissions increase expected from the termination 
of City of Memphis I/M program as well as revised emission inventory 
estimates and revised MVEBs based upon new modeling associated with the 
requested removal of the I/M program and upon the inclusion of an 
offset measure.\5\ The SIP revision also contains a technical 
demonstration to support the State's analysis of its requested actions 
under CAA sections 110(l) and 193. The revised MVEBs are discussed 
later on in this document.
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    \5\ The other revisions to the maintenance plan are textual 
changes addressing the requested removal of the I/M program, the 
inclusion of the Cleo facility offsets, the revised MVEBs and 
emissions inventory, and voluntary measures that may improve ozone 
air quality in the 1997 8-hour Ozone Area. These textual changes do 
not result in emissions increases and therefore will not interfere 
with attainment or maintenance of any NAAQS.
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a. Non-interference Analyses Related to the Removal of the City of 
Memphis I/M Program

    Tennessee's SIP revision includes an evaluation of the impact that 
the requested removal of the City of Memphis I/M program would have on 
attainment and maintenance of the NAAQS for each criteria pollutant. 
This

[[Page 7486]]

notice focuses on the ozone and particulate matter (PM) NAAQS because 
the termination of the I/M program is expected to increase VOC 
emissions from on-road mobile sources and because VOCs are precursors 
to ozone and PM.6 7 8 9 The SIP revision includes revised 
mobile source emissions modeling using EPA's Motor Vehicle Emission 
Simulator (MOVES) on-road mobile source model to estimate the emissions 
increases associated with the termination of the I/M program. As part 
of its technical demonstration under CAA sections 110(l) and 193, 
Tennessee's SIP revision quantifies the emissions reductions from the 
closure of the Cleo, Inc. facility for use as offsets for the requested 
removal of the I/M program from the SIP and includes those offsets in 
its revised maintenance plan for incorporation into the SIP.
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    \6\ EPA redesignated Shelby County to attainment for the CO 
NAAQS in 1994. See 59 FR 37939. On October 25, 2006, EPA approved 
the second ten-year CO maintenance plan for the Memphis/Shelby 
County CO Maintenance Area with a 2017 CO safety margin of 480.69 
tpd that did not include the I/M program and concluded that the I/M 
program is not necessary for maintenance of the CO standard. See 71 
FR 62384.
    \7\ Sulfur dioxide (SO2) is emitted from motor 
vehicles, but the amount emitted is a function of the sulfur content 
of the fuel being combusted. Because the I/M program did not address 
fuel composition, its termination has no impact on SO2 
emissions.
    \8\ The termination of the I/M program will have no impact on 
lead emissions because lead is no longer blended into on-road motor 
fuel.
    \9\ On February 17, 2012, EPA designated all counties in 
Tennessee as unclassifiable/attainment for the 2010 NO2 
NAAQS. See 77 FR 9532. NO2 is a subset of NOX, 
and as shown in the mobile source modeling, termination of the I/M 
program does not increase NOX emissions.
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i. Non-Interference Analysis for the Ozone NAAQS
    The SIP revision quantifies the potential emissions increases in 
NOX and VOC due to the termination of the I/M program using 
MOVES2010b,\10\ the most current EPA-approved on-road emission model at 
the time that Tennessee submitted its SIP revision, with inputs 
developed by the current travel demand model (TDM) used by the Memphis 
Area Metropolitan Planning Organization (MPO). Shelby County chose 2013 
as the year for analysis of the affected change in emissions after 
consultation with air quality and transportation partners, including 
the MPO and EPA, because the I/M program terminated in June 2013.
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    \10\ Shelby County's 2010b MOVES modeling conforms with EPA's 
modeling guidance at the time of the SIP submittal.
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    The 2013 inputs for the MOVES model were developed by interpolating 
TDM results for 2011 and 2015 in order to use the model to estimate the 
emissions increases in 2013 associated with the termination of the 
Memphis I/M program. The results of this modeling are provided in Table 
1:

                  Table 1--On-Road Mobile Source Emissions Comparison for the 2013 Ozone Season
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                                                      No I/M         With I/M                 Change
                                                 ---------------------------------------------------------------
                                                     tons/day        tons/day        tons/day       percentage
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VOC.............................................          13.609          13.257           0.352            2.66
NOX.............................................          29.652          29.652           0.000            0.00
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    The County's on-road mobile source modeling predicts that the 
termination of the City of Memphis I/M program will increase 2013 ozone 
season VOC by approximately 0.352 tons per ozone season day and will 
not increase NOX emissions. Therefore, the SIP revision 
includes VOC emissions reductions that offset 128.48 tons per year 
(tpy) (0.352 tons per day (tpd) multiplied by 365 days per year).\11\
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    \11\ Using an annual average provides a more conservative 
estimate for the total amount of emissions reductions needed as an 
offset.
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    Tennessee's SIP revision seeks to incorporate the emissions 
reductions from the closure of the Cleo facility for use as offsets for 
the termination of the I/M program. The company ceased operation in 
2011 and submitted a letter to Shelby County on January 4, 2012, 
requesting termination of its Title V air permit effective at the end 
of 2011, making the reductions permanent and enforceable. SCHD issued a 
Title V termination letter on April 3, 2012. Shelby County quantified 
the emissions reductions associated with the Cleo facility shutdown by 
averaging the certified annual emissions reported by the facility to 
the County in 2009 and 2010, the last two full years of operation. In 
2009 and 2010, Cleo reported and paid air pollution fees on actual VOC 
emissions of 239.1 tons and 254.5 tons, respectively, resulting in an 
annual average of 246.8 tpy (0.676 tpd across the calendar year). 
During the same operational period, Cleo averaged 1.09 tpy of 
NOX emissions (0.003 tpd across the calendar year). Shelby 
County banked the Cleo shutdown emissions reductions for use as 
industrial permitting offsets in the Memphis 2008 8-hour Ozone Area and 
has elected to remove 0.387 tpd (0.352 tpd multiplied by the 1.1:1 
offset ratio in CAA section 182(a)(4)) of these shutdown VOC emissions 
reductions from the bank to offset the estimated VOC emissions increase 
resulting from the termination of the I/M Program. EPA proposes to 
agree with the County's technical demonstration.
ii. Non-Interference Analysis for the PM NAAQS
    Shelby County evaluated the potential for the requested removal of 
the I/M program to interfere with maintenance of the PM NAAQS in the 
County because studies have shown that VOCs can be a precursor to PM in 
certain chemical and meteorological circumstances. The County concluded 
that the termination of the I/M program would not interfere with 
attainment or maintenance of the PM2.5 NAAQS because the 
PM2.5 design values for the Area are below the 
PM2.5 NAAQS; VOC emissions are projected to decline through 
2021 without the I/M program; and the VOC emissions reductions from the 
shutdown of the Cleo facility offset the projected VOC emissions 
increases from the termination of the I/M program. EPA proposes to 
agree with the County's technical demonstration.

b. 1997 8-Hour Ozone NAAQS Maintenance Plan--Emissions Inventory Update

    The revised maintenance plan included in Tennessee's SIP revision 
contains an updated emissions inventory with emissions projections that 
account for the termination of the I/M program and the closure of the 
Cleo facility. Shelby County emissions for 2021 remain the same as 
those provided in the Shelby County 1997 8-hour Ozone Maintenance Plan 
approved by EPA on January 4, 2010 (75 FR 56), with the exception of 
on-road mobile and point source emissions. On-road emissions for 2006 
and 2021 in the revised maintenance plan were remodeled using 
MOVES2010b, and they replace the on-road emissions

[[Page 7487]]

estimates derived from the previous model, MOBILE6.2. The MOVES model 
includes the road class VMT as an input file and generates on-road 
mobile source emissions estimates that take into consideration expected 
Federal tailpipe standards, fleet turnover, and new fuels. The MOVES 
modeling accounts for the termination of the I/M program in 2013.
    Point source emissions for 2006 remain the same; however, Tennessee 
adjusted the 2021 point source emissions for VOCs and NOX 
from the 2010 1997 8-hour Ozone Maintenance Plan by including the 
emissions reductions resulting from the closure of the Cleo facility. 
The change in emissions for on-road and point source is reflected in 
Table 2, and projections for on-road mobile, point, area, and non-road 
mobile sources are presented in Table 3. The revised maintenance 
inventory demonstrates that future emissions of VOCs and NOX 
through 2021 will remain below those in base year 2006, thereby 
indicating that Shelby County will continue to maintain the 1997 8-hour 
ozone NAAQS through the end of the maintenance plan period.

                               Table 2--Change in NOX and VOC Emissions Inventory
                                           [Ozone season tons per day]
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                                                       VOC
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                 Type inventory                       Year           On-road                  Point
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Base year......................................            2006           -1.23  No change
Projection.....................................            2021           -2.80  -0.676
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                                                       NOX
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Base year......................................            2006            2.14  No change
Projection.....................................            2021           -0.96  -0.003
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                                                        Table 3--NOX and VOC Emissions Inventory
                                                               [Ozone season tons per day]
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                                                                           VOC
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             Type inventory                    Year            Area          Non-road        On-road *       Point **          Total         Baseline
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Base year...............................            2006          37.531          22.698          23.986          13.665          97.880          97.880
Projection..............................            2021          47.039          19.734           8.558          17.715          93.046          97.880
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                                                                           NOX
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Base year...............................            2006           2.101          26.657          58.013          14.458         101.229         101.229
Projection..............................            2021           2.695          21.607          16.035          18.373          58.710         101.229
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* 2006 on-road emissions include emissions reductions from the City of Memphis I/M program, and the 2021 on-road emissions projections include emissions
  increases from the termination of the City of Memphis I/M program.
** The 2021 point source projections for VOC and NOX account for the shutdown of the Cleo facility and have been reduced from the 2021 VOC and NOX point
  source projections in the 2010 maintenance plan by 0.676 tpd and 0.003 tpd, respectively.

c. What are the Revised MVEBs?

    Tennessee's May 23, 2014, maintenance plan revision updates the 
MVEBs for 2006 and 2021 using on-road mobile source emissions estimates 
from MOVES and removes the MVEBs for 2009 and 2017. The revised 2021 
MVEB accounts for the termination of the I/M program and the shutdown 
of the Cleo facility. These budgets are used by transportation 
authorities to assure that transportation plans, programs, and projects 
are consistent with, and conform to, the maintenance of acceptable air 
quality in the Memphis 1997 8-hour Ozone 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 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

[[Page 7488]]

62188). The preamble also describes how to establish the MVEB in the 
SIP and how to revise the MVEB.
    According to 40 CFR 93.118, a maintenance plan must establish MVEBs 
for the last year of the maintenance plan (in this case, 2021). The 
updated MVEBs in the revised maintenance plan for the 1997 8-hour ozone 
NAAQS are for the base year (2006) and the last year of the first 10-
year maintenance plan (2021). The 2021 MVEB reflects the total on-road 
mobile source emissions for 2021 plus an allocation from the available 
VOC and NOX safety margins. The MVEBs are presented in Table 
4.

                Table 4--Shelby County VOC and NOX MVEBs
                       (Ozone season tons per day)
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                                               2006            2021
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NOX.....................................          58.013          56.428
VOC.....................................          23.986          12.782
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    The previously approved 1997 8-hour ozone maintenance plan for 
Shelby County contained interim MVEBs for years 2006, 2009, and 2017 in 
addition to the required maintenance year MVEB of 2021. The consensus 
formed during the interagency consultation process was that MVEBs 
should only be set for 2006 and 2021.\12\ Therefore, the revised 
maintenance plan removes the interim budgets for years 2009 and 2017.
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    \12\ The transportation conformity provisions of the CAA require 
interagency consultation in the development of MVEBs. The 
consultation process involves federal agencies (EPA, Federal Highway 
Administration, and Federal Transit Administration), state and local 
transportation agencies, state and local air agencies, and 
metropolitan planning organizations.
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    Under 40 CFR 93.101, the safety margin is the difference between 
the attainment level and the projected level, from all sources, of 
emissions in the maintenance plan. The attainment level of emissions is 
the level of emissions during one of the years in which Shelby County 
met the 1997 8-hour ozone NAAQS. The safety margin, in whole or in 
part, can be allocated to the transportation sector as long as total 
emissions from all categories remain below the attainment level.
    For the revised 2021 MVEBs, Shelby County allocated ninety-five 
percent of the VOC and NOX safety margin emissions to the 
MVEB.\13\ Specifically, Shelby County allocated 4.224 tpd of the 
available VOC safety margin and 40.393 tpd of the available 
NOX safety margin to the 2021 MVEBs. The remaining safety 
margin in 2021 for VOC is 0.223 tpd and for NOX is 2.126 
tpd. The allocation from the safety margins is available because of 
reductions of VOC and NOX that have occurred, and are 
projected to occur through 2021, primarily from mobile sources. VOC and 
NOX reductions are anticipated from non-road mobile source 
categories, but not to the extent that they occur in the on-road source 
category. VOC reductions from area sources are also anticipated to 
occur due to control techniques instituted on a federal level on 
industrial manufacturing activities. However, future population 
increases act to balance area source reductions such that there is a 
net increase in VOC emissions in this source category.
---------------------------------------------------------------------------

    \13\ Shelby County calculated the NOX safety margin 
by subtracting 2021 projected emissions from 2006 baseline emissions 
and further subtracting 0.387 tpd to account for the offset applied 
to the removal of the City of Memphis I/M program (i.e., 97.880 tpd 
(2006 baseline)-93.046 tpd (2021 projection)-0.387 tpd (offset 
applied) = 4.447 tpd (NOX safety margin)).
---------------------------------------------------------------------------

    The MVEB is constrained to assure that the total emissions from all 
source categories do not exceed the 2006 attainment year emissions. The 
MVEBs are consistent with the plan for maintaining total emissions from 
all source categories at or below the 2006 VOC and NOX 
emission levels through 2021. For future year conformity 
determinations, transportation authorities must rely on the MVEBs 
unless plan revisions occur. Through this rulemaking, EPA is proposing 
to approve the MVEBs for NOX and VOC for 2006 and 2021 for 
Shelby County because EPA believes that the County maintains the 1997 
8-hour ozone NAAQS with the emissions at the levels of the budgets. 
After thorough review, EPA is proposing to approve the budgets because 
they are consistent with maintenance of the 2008 8-hour ozone NAAQS 
through 2021.

V. Proposed Action

    EPA is proposing to approve Tennessee's May 23, 2014, SIP revision 
that seeks to remove the City of Memphis I/M program from the SIP and 
incorporate Shelby County's revised maintenance plan for the 1997 8-
hour ozone NAAQS that includes an emission reduction measure to offset 
the emission increases associated with the requested removal of the I/M 
program from the SIP. The revised maintenance plan also contains 
updated attainment inventories and updated MVEBs for NOX and 
VOC for 2006 and 2021 for Shelby County.

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submittal that complies with the provisions of the Act and applicable 
Federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
proposed action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this proposed action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Public Law 104-4);
     does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, October 7, 1999);
     is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications as specified by 
Executive Order 13175 (65 FR 67249, November 9, 2000) nor will it 
impose substantial direct costs on tribal governments or preempt tribal 
law.

[[Page 7489]]

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

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

    Dated: January 28, 2016.
Heather McTeer Toney,
Regional Administrator, Region 4.
[FR Doc. 2016-02844 Filed 2-11-16; 8:45 am]
 BILLING CODE 6560-50-P