Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; North Carolina: Redesignation of the Hickory-Morganton-Lenoir 1997 Annual Fine Particulate Matter Nonattainment Area to Attainment, 58210-58226 [2011-24103]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

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


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

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


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

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

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

[[Page 58211]]

    5. Hand Delivery or Courier: Ms. Lynorae Benjamin, Chief, 
Regulatory Development Section, Air Planning Branch, Air, Pesticides 
and Toxics Management Division, U.S. Environmental Protection Agency, 
Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. Such 
deliveries are only accepted during the Regional Office's normal hours 
of operation. The Regional Office's official hours of business are 
Monday through Friday, 8:30 to 4:30, excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R04-OAR-
2009-1010. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
https://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 https://www.regulations.gov or e-mail, information that you consider to be CBI 
or otherwise protected. The https://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 https://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 https://www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the electronic docket are listed in the 
https://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 https://www.regulations.gov or in hard copy at the Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth 
Street, SW., Atlanta, Georgia 30303-8960. EPA requests that if at all 
possible, you contact the person listed in the FOR FURTHER INFORMATION 
CONTACT section to schedule your inspection. The Regional Office's 
official hours of business are Monday through Friday, 8:30 to 4:30, 
excluding Federal holidays.

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

SUPPLEMENTARY INFORMATION: 

Table of Contents

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

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

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

[[Page 58212]]

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

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

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

[[Page 58213]]

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

III. What are the criteria for redesignation?

    The CAA provides the requirements for redesignating a nonattainment 
area to attainment. Specifically, section 107(d)(3)(E) of the CAA 
allows for redesignation provided the following criteria are met: (1) 
The Administrator determines that the area has attained the applicable 
NAAQS; (2) the Administrator has fully approved the applicable 
implementation plan for the area under section 110(k); (3) the 
Administrator determines that the improvement in air quality is due to 
permanent and enforceable reductions in emissions resulting from 
implementation of the applicable SIP and applicable Federal air 
pollutant control regulations and other permanent and enforceable 
reductions; (4) the Administrator has fully approved a maintenance plan 
for the area as meeting the requirements of section 175A; and (5) the 
state containing such area has met all requirements applicable to the 
area under section 110 and part D of title I of the CAA.
    EPA has provided guidance on redesignation in the General Preamble 
for the Implementation of title I of the CAA Amendments of 1990 (April 
16, 1992, 57 FR 13498, and supplemented on April 28, 1992, 57 FR 18070) 
and has provided further guidance on processing redesignation requests 
in the following documents:
    1. ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992 (hereafter referred to as the 
``Calcagni Memorandum'');
    2. ``State Implementation Plan (SIP) Actions Submitted in Response 
to Clean Air Act (CAA) Deadlines,'' Memorandum from John Calcagni, 
Director, Air Quality Management Division, October 28, 1992; and
    3. ``Part D New Source Review (Part D NSR) Requirements for Areas 
Requesting Redesignation to Attainment,'' Memorandum from Mary D. 
Nichols, Assistant Administrator for Air and Radiation, October 14, 
1994.

IV. Why is EPA proposing these actions?

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

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

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

[[Page 58214]]

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

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

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

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

    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the area has attained the applicable 
NAAQS (CAA section 107(d)(3)(E)(i)). EPA is proposing to determine that 
the Hickory Area continues to attain the 1997 Annual PM2.5 
NAAQS. For PM2.5, an area may be considered to be attaining 
the 1997 Annual PM2.5 NAAQS if it meets the 1997 Annual 
PM2.5 NAAQS, as determined in accordance with 40 CFR 50.7 
and Appendix N of part 50, based on three complete, consecutive 
calendar years of quality-assured air quality monitoring data. To 
attain these NAAQS, the 3-year average of the annual arithmetic mean 
concentration, as determined in accordance with 40 CFR part 50, 
Appendix N, is less than or equal to 15.0 [micro]g/m\3\ at all relevant 
monitoring sites in the subject area over a 3-year period. The relevant 
data must be collected and quality-assured in accordance with 40 CFR 
part 58 and recorded in the EPA Air Quality System (AQS). The monitors 
generally should have remained at the same location for the duration of 
the monitoring period required for demonstrating attainment.
    On January 5, 2010, at 75 FR 230, EPA determined that the Hickory 
Area was attaining the 1997 PM2.5 NAAQS. EPA reviewed 
PM2.5 monitoring data from monitoring sites in the Hickory 
Area for the 1997 Annual PM2.5 NAAQS for the 2006-2008 and 
the 2007-2009 periods. These data have been quality-assured and are 
recorded in AQS. The annual arithmetic mean PM2.5 
concentrations for the 2006-2008, and the 2007-2009 periods, and the 3-
year averages of these values (i.e., design values) are summarized in 
Table 1.\2\ EPA has reviewed more recent data which indicate that the 
Hickory Area continues to attain the 1997 PM2.5 NAAQS. The 
design values for 2007-2009 and 2008-2010 are also included in Table 1 
and demonstrate that the Hickory Area continues to meet the 
PM2.5 NAAQS and that the ambient concentrations of 
PM2.5 are continuing to decrease in the Area.
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    \2\ The values in Table 1 represent the most current quality 
assured, quality controlled and certified ambient air monitoring 
data available in the EPA AQS database and therefore differ slightly 
from the values submitted in the North Carolina redesignation 
request.

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


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

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

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[[Page 58215]]

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

    For redesignating a nonattainment area to attainment, the CAA 
requires EPA to determine that the state has met all applicable 
requirements under section 110 and part D of title I of the CAA (CAA 
section 107(d)(3)(E)(v)) and that the state has a fully approved SIP 
under section 110(k) for the area (CAA section 107(d)(3)(E)(ii)). EPA 
proposes to find that North Carolina has met all applicable SIP 
requirements for the Hickory Area under section 110 of the CAA (general 
SIP requirements) for purposes of redesignation. EPA also proposes to 
find that the North Carolina SIP satisfies the criterion that it meet 
applicable SIP requirements for purposes of redesignation under part D 
of title I of the CAA (requirements specific to 1997 Annual 
PM2.5 nonattainment areas). Further, EPA proposes to 
determine that the SIP is fully approved with respect to all 
requirements applicable under section 110(k). In making these 
determinations, EPA ascertained which requirements are applicable to 
the Area and, if applicable, that they are fully approved under the 
CAA. For the purposes of review of the State's redesignation request, 
the SIP needs only to be fully approved with respect to requirements 
that were applicable prior to submittal of the complete redesignation 
request.
a. Hickory Area Has Met All Applicable Requirements Under Section 110 
and Part D of Title I of the CAA
    General SIP requirements. Section 110(a)(2) of title I of the CAA 
delineates the general requirements for a SIP, which include 
enforceable emissions limitations and other control measures, means, or 
techniques; provisions for the establishment and operation of 
appropriate devices necessary to collect data on ambient air quality; 
and programs to enforce the limitations. General SIP elements and 
requirements are delineated in section 110(a)(2) of title I, part A of 
the CAA. These requirements include, but are not limited to, the 
following: submittal of a SIP that has been adopted by the state after 
reasonable public notice and hearing; provisions for establishment and 
operation of appropriate procedures needed to monitor ambient air 
quality; implementation of a source permit program; provisions for the 
implementation of part C requirements (Prevention of Significant 
Deterioration (PSD)) and provisions for the implementation of part D 
requirements (New Source Review (NSR) permit programs); provisions for 
air pollution modeling; and provisions for public and local agency 
participation in planning and emission control rule development.
    Section 110(a)(2)(D) requires that SIPs contain certain measures to 
prevent sources in a state from significantly contributing to air 
quality problems in another state. To implement this provision, EPA has 
required certain states to establish programs to address the interstate 
transport of air pollutants (e.g., NOX SIP Call,\4\ CAIR,\5\ 
and the CSAPR). The section 110(a)(2)(D) requirements for a state are 
not linked with a particular nonattainment area's designation and 
classification in that state. EPA believes that the requirements linked 
with a particular nonattainment area's designation and classifications 
are the relevant measures to evaluate in reviewing a redesignation 
request. The transport SIP submittal requirements, where applicable, 
continue to apply to a state regardless of the designation of any one 
particular area in the state. Thus, EPA does not believe that the CAA's 
interstate transport requirements should be construed to be applicable 
requirements for purposes of redesignation. However, as discussed later 
in this notice, addressing pollutant transport from other states is an 
important part of an area's maintenance demonstration.
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    \4\ On October 27, 1998 (63 FR 57356), EPA issued a 
NOX SIP Call requiring the District of Columbia and 22 
states to reduce emissions of NOX in order to reduce the 
transport of ozone and ozone precursors. In compliance with EPA's 
NOX SIP Call, North Carolina developed rules governing 
the control of NOX emissions from Electric Generating 
Units (EGUs), major non-EGU industrial boilers, major cement kilns, 
and internal combustion engines. On December 27, 2002, EPA approved 
North Carolina's rules as fulfilling Phase I (67 FR 78987).
    \5\ On May 12, 2005 (70 FR 25162), EPA promulgated CAIR which 
required 28 upwind States and the District of Columbia to revise 
their SIPs to include control measures that would reduce emissions 
of SO2 and NOX. Various aspects of CAIR rule 
were petitioned in court and on December 23, 2008, the U.S. Court of 
Appeals for the District of Columbia Circuit remanded CAIR to EPA 
(see North Carolina v. EPA, 550 F.3d 1176 (D.C. Cir. 2008)) which 
left CAIR in place to ``temporarily preserve the environmental 
values covered by CAIR'' until EPA replaces it with a rule 
consistent with the Court's ruling. The Court directed EPA to remedy 
various areas of the rule that were petitioned consistent with its 
July 11, 2008 (see North Carolina v. EPA, 531 F.3d 836 (D.C. Cir., 
July 11, 2008)), opinion, but declined to impose a schedule on EPA 
for completing that action. Id. Therefore, CAIR is currently in 
effect in North Carolina.
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    In addition, EPA believes other section 110 elements that are 
neither connected with nonattainment plan submissions nor linked with 
an area's attainment status are applicable requirements for purposes of 
redesignation. The area will still be subject to these requirements 
after the area is redesignated. The section 110 and part D requirements 
which are linked with a particular area's designation and 
classification are the relevant measures to evaluate in reviewing a 
redesignation request. This approach is consistent with EPA's existing 
policy on applicability (i.e., for redesignations) of conformity and 
oxygenated fuels requirements, as well as with section 184 ozone 
transport requirements. See Reading, Pennsylvania, proposed and final 
rulemakings (61 FR 53174-53176, October 10, 1996), (62 FR 24826, May 7, 
1997); Cleveland-Akron-Loraine, Ohio, final rulemaking (61 FR 20458, 
May 7, 1996); and Tampa, Florida, final rulemaking at (60 FR 62748, 
December 7, 1995). See also the discussion on this issue in the 
Cincinnati, Ohio, redesignation (65 FR 37890, June 19, 2000), and in 
the Pittsburgh, Pennsylvania, redesignation (66 FR 50399, October 19, 
2001).
    EPA has not yet completed rulemaking on a submittal from North 
Carolina dated April 1, 2008, addressing ``infrastructure SIP'' 
elements required under CAA section 110(a)(2). However, these are 
statewide requirements that are not a consequence of the nonattainment 
status of the Hickory Area. As stated above, EPA believes that section 
110 elements not linked to an area's nonattainment status are not 
applicable for purposes of redesignation. Therefore, notwithstanding 
the fact that EPA has not yet completed rulemaking on North Carolina's 
submittal for the PM2.5 infrastructure SIP elements of 
section 110(a)(2), EPA believes it has approved all SIP elements under 
section 110 that must be approved as a prerequisite for redesignating 
the Hickory Area to attainment.
    Title I, Part D requirements. EPA proposes that with approval of 
North Carolina's base year emissions inventory, which is part of the 
maintenance plan submittal, the North Carolina SIP will meet applicable 
SIP requirements under part D of title I of the CAA. As discussed in 
greater detail below, EPA believes the emissions inventory is 
approvable because the 2008 direct PM2.5, SO2, 
and NOX emissions for North Carolina were developed 
consistent with EPA guidance for emissions inventories and represent a 
comprehensive, accurate and current inventory as required by section 
172(c)(3).
    Part D, subpart 1 applicable SIP requirements. EPA has determined 
that

[[Page 58216]]

if the approval of the base year emissions inventories, discussed in 
section IX of this rulemaking, is finalized, the North Carolina SIP 
will meet the applicable SIP requirements for the Hickory Area for 
purposes of redesignation under title I, part D of the CAA. Subpart 1 
of part D sets forth the basic nonattainment requirements applicable to 
all nonattainment areas. All areas that were designated nonattainment 
for the 1997 Annual PM2.5 NAAQS were designated under this 
subpart of the CAA, and the requirements applicable to them are 
contained in sections 172 and 176.
    For purposes of evaluating this redesignation request, the 
applicable part D, subpart 1 SIP requirements for all nonattainment 
areas are contained in sections 172(c)(1)-(9) and in section 176. A 
thorough discussion of the requirements contained in section 172 can be 
found in the General Preamble for Implementation of title I (57 FR 
13498, April 16, 1992).
    Subpart 1 Section 172 Requirements. Section 172(c)(1) requires the 
plans for all nonattainment areas to provide for the implementation of 
all reasonably available control measures (RACM) as expeditiously as 
practicable and to provide for attainment of the national primary 
ambient air quality standards. EPA interprets this requirement to 
impose a duty on all nonattainment areas to consider all available 
control measures and to adopt and implement such measures as are 
reasonably available for implementation in each area as components of 
the area's attainment demonstration. Under section 172, states with 
nonattainment areas must submit plans providing for timely attainment 
and meeting a variety of other requirements. However, pursuant to 40 
CFR 51.1004(c), EPA's January 5, 2010, determination that the Hickory 
Area was attaining the PM2.5 standard suspended North 
Carolina's obligation to submit most of the attainment planning 
requirements that would otherwise apply. Specifically, the 
determination of attainment suspended North Carolina's obligation to 
submit an attainment demonstration and planning SIPs to provide for 
reasonable further progress (RFP), reasonable available control 
measures, and contingency measures under section 172(c)(9).
    The General Preamble for Implementation of Title I (57 FR 13498, 
April 16, 1992) also discusses the evaluation of these requirements in 
the context of EPA's consideration of a redesignation request. The 
General Preamble sets forth EPA's view of applicable requirements for 
purposes of evaluating redesignation requests when an area is attaining 
a standard (General Preamble for Implementation of Title I (57 FR 
13498, April 16, 1992)).
    Because attainment has been reached in the Hickory Area, no 
additional measures are needed to provide for attainment, and section 
172(c)(1) requirements for an attainment demonstration and RACM are no 
longer considered to be applicable for purposes of redesignation as 
long as the Area continues to attain the standard until redesignation. 
See also 40 CFR 51.1004(c).
    The RFP plan requirement under section 172(c)(2) is defined as 
progress that must be made toward attainment. This requirement is not 
relevant for purposes of redesignation because EPA has determined that 
the Hickory Area has monitored attainment of the 1997 Annual 
PM2.5 NAAQS. See General Preamble, 57 FR 13564. See also 40 
CFR 51.1004 (c). In addition, because the Hickory Area has attained the 
1997 Annual PM2.5 NAAQS and is no longer subject to a RFP 
requirement, the requirement to submit the section 172(c)(9) 
contingency measures is not applicable for purposes of redesignation. 
Id.
    Section 172(c)(3) requires submission and approval of a 
comprehensive, accurate, and current inventory of actual emissions. As 
part of North Carolina's redesignation request for the Hickory Area, 
North Carolina submitted a 2008 base year emissions inventory. As 
discussed below in section IX, EPA is proposing to approve the 2008 
base year inventory submitted with the redesignation request as meeting 
the section 172(c)(3) emissions inventory requirement.
    Section 172(c)(4) requires the identification and quantification of 
allowable emissions for major new and modified stationary sources to be 
allowed in an area, and section 172(c)(5) requires source permits for 
the construction and operation of new and modified major stationary 
sources anywhere in the nonattainment area. EPA has determined that, 
since PSD requirements will apply after redesignation, areas being 
redesignated need not comply with the requirement that a NSR program be 
approved prior to redesignation, provided that the area demonstrates 
maintenance of the NAAQS without part D NSR. A more detailed rationale 
for this view is described in a memorandum from Mary Nichols, Assistant 
Administrator for Air and Radiation, dated October 14, 1994, entitled, 
``Part D New Source Review Requirements for Areas Requesting 
Redesignation to Attainment.'' North Carolina has demonstrated that the 
Hickory Area will be able to maintain the NAAQS without part D NSR in 
effect and therefore North Carolina need not have fully approved part D 
NSR programs prior to approval of the redesignation request. 
Nonetheless, North Carolina currently has a fully-approved part D NSR 
program in place. North Carolina's PSD program will become effective in 
the Hickory Area upon redesignation to attainment. Section 172(c)(6) 
requires the SIP to contain control measures necessary to provide for 
attainment of the NAAQS. Because attainment has been reached, no 
additional measures are needed to provide for attainment.
    Section 172(c)(7) requires the SIP to meet the applicable 
provisions of section 110(a)(2). As noted above, EPA believes the North 
Carolina SIP meets the requirements of section 110(a)(2) applicable for 
purposes of redesignation.
    Section 176 Conformity Requirements. Section 176(c) of the CAA 
requires states to establish criteria and procedures to ensure that 
Federally supported or funded projects conform to the air quality 
planning goals in the applicable SIP. The requirement to determine 
conformity applies to transportation plans, programs and projects that 
are developed, funded or approved under title 23 of the United States 
Code (U.S.C.) and the Federal Transit Act (transportation conformity) 
as well as to all other Federally supported or funded projects (general 
conformity). State transportation conformity SIP revisions must be 
consistent with Federal conformity regulations relating to 
consultation, enforcement and enforceability that EPA promulgated 
pursuant to its authority under the CAA.
    EPA interprets the conformity SIP requirements \6\ as not applying 
for purposes of evaluating a redesignation request under section 107(d) 
because state conformity rules are still required after redesignation 
and Federal conformity rules apply where state rules have not been 
approved. See Wall v. EPA, 265 F.3d 426 (6th Cir. 2001)(upholding this 
interpretation); see also 60 FR 62748 (December 7, 1995, Tampa, 
Florida). Thus, the Hickory Area has satisfied all applicable 
requirements for purposes of redesignation under

[[Page 58217]]

section 110 and part D of title I of the CAA.
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    \6\ CAA Section 176(c)(4)(E) requires states to submit revisions 
to their SIPs to reflect certain Federal criteria and procedures for 
determining transportation conformity. Transportation conformity 
SIPs are different from the MVEBs that are established in control 
strategy SIPs and maintenance plans.
---------------------------------------------------------------------------

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

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

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

[[Page 58218]]

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

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

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

    The NCCSA reductions took place beginning in 2006, the first year 
of the 3-year attainment period submitted by North Carolina for 
redesignation of the Hickory Area. Since the final compliance date for 
the NCCSA SO2 emissions caps is 2013, future design values 
are expected to continue to decline below the 2006-2008 attaining 
design values. The significant statewide reductions in utility 
SO2 emissions will be permanent and enforceable upon EPA's 
approval of the NCCSA rules into the North Carolina SIP. Further, EPA 
does not have any information to suggest t