Approval and Promulgation of Implementation Plans for Kentucky: Inspection and Maintenance Program Removal for Jefferson County, KY; Source-Specific Nitrogen Oxides Emission Rate for Kosmos Cement Kiln

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

[Federal Register: January 3, 2005 (Volume 70, Number 1)]
[Proposed Rules]
[Page 53-60]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ja05-18]

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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[R04-OAR-2004-KY-0002-200424; FRL-7856-8]

Approval and Promulgation of Implementation Plans for Kentucky:
Inspection and Maintenance Program Removal for Jefferson County, KY;
Source-Specific Nitrogen Oxides Emission Rate for Kosmos Cement Kiln

AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a revision to the Jefferson
County, Kentucky portion of the Kentucky State Implementation Plan
(SIP) which requests removal of three regulations from the active
portion of the Kentucky SIP related to the Jefferson County inspection
and maintenance (I/M) program. Kentucky requested in a September 22,
2003, SIP revision that these I/M regulations be moved to the
contingency measures section of the Kentucky portion of the Louisville
1-Hour Ozone Maintenance Plan. EPA is also proposing to approve a
source-specific SIP revision amending the nitrogen oxides
(NO_X) emission rate for Kosmos Cement Company's cement kiln

[[Page 54]]

as contained in a May 3, 2004, Board Order submitted on May 26, 2004,
as a supplemental package to the September 2003 SIP revision.

DATES: Written comments must be received on or before February 2, 2005.

ADDRESSES: Submit your comments, identified by Regional Material in
EDocket (RME) ID No. R04-OAR-2004-KY-0002, by one of the following methods:
1. Federal eRulemaking Portal: http://www.regulations.gov.
Follow the on-line instructions for submitting comments.
2. Agency Web site: http://docket.epa.gov/rmepub/. RME, EPA's
electronic public docket and comment system, is EPA's preferred method
for receiving comments. Once in the system, select ``quick search,''
then key in the appropriate RME Docket identification number. Follow
the on-line instructions for submitting comments.
3. E-mail: notarianni.michele@epa.gov.
4. Fax: (404) 562-9019.
5. Mail: ``R04-OAR-2004-KY-0002,'' 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.
6. Hand Delivery or Courier: Deliver your comments to: Michele
Notarianni, Regulatory Development Section, Air Planning Branch, Air,
Pesticides and Toxics Management Division, 12th floor, 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 RME ID No. R04-OAR-2004-KY-
0002. EPA's policy is that all comments received will be included in
the public docket without change and may be made available online at
http://docket.epa.gov/rmepub/, 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 information that you
consider to be CBI or otherwise protected through RME, regulations.gov,
or e-mail. The EPA RME Web site and the Federal regulations.gov Web
site are ``anonymous access'' systems, 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 RME or 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.
Docket: All documents in the electronic docket are listed in the
RME index at http://docket.epa.gov/rmepub/. 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 RME
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: Michele Notarianni, Air Planning
Branch, Air, Pesticides and Toxics Management Division, U.S.
Environmental Protection Agency, Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303-8960. Phone: (404) 562-9031. E-mail:
notarianni.michele@epa.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. What changes to the Kentucky SIP were submitted for EPA approval?
II. What authorities apply to moving the Jefferson County I/M
Program to a contingency measure in the Kentucky SIP?
III. What is EPA's analysis of Kentucky's demonstration of no
interference with the 1-Hour Ozone and Carbon Monoxide National
Ambient Air Quality Standards (NAAQS)?
IV. What is EPA's analysis of Kentucky's demonstration of
noninterference with the 8-Hour Ozone and Fine Particulate Matter NAAQS?
A. What criteria must be met?
B. What is EPA's analysis of whether the proposed reductions
meet the criteria of permanent, enforceable, quantifiable, surplus,
equivalent and contemporaneous?
1. Permanent
2. Enforceable
3. Quantifiable
4. Surplus
5. Equivalent
a. Selection of the year 2005 to estimate emission increases
from closure of the VET Program.
b. Methodology for substituting NO_X for VOC to
determine all ``NO_X-equivalent'' needed to replace the
VET Program.
6. Contemporaneous
V. What is EPA's Proposed Action?
VI. Statutory and Executive Order Reviews

I. What Changes to the Kentucky SIP Were Submitted for EPA Approval?

In response to a 2002 Kentucky Legislative action to terminate the
Jefferson County I/M program effective November 1, 2003, the
Commonwealth of Kentucky submitted a revision to the Jefferson County,
Kentucky portion of the Kentucky SIP on September 22, 2003. This
revision repeals three SIP-approved regulations representing the
Jefferson County I/M program, also known as the Jefferson County
Vehicle Emissions Testing (VET) Program. The regulations requested for
repeal are: Regulation 8.01, ``Mobile Source Emissions Control
Requirements,'' Regulation 8.02, ``Vehicle Emissions Testing
Procedure,'' and Regulation 8.03, ``Commuter Vehicle Testing Requirements.''
Kentucky requested in the September 22, 2003, submittal that the
three VET Program regulations be moved from the active control measures
portion of the SIP to the contingency measures portion of the Kentucky
portion of the Louisville 1-Hour Ozone Maintenance Plan, which is part
of the Kentucky SIP. The Jefferson County VET Program is a basic I/M
program that includes on-board diagnostics (i.e., OBD) and results in
emission reductions of NO_X, volatile organic compounds
(VOC), and carbon monoxide (CO). The VET Program began operation on
January 2, 1984, to help meet nonattainment area requirements for the
ozone and CO NAAQS effective at the time.
The Kentucky portion of the Louisville Metropolitan Statistical
Area (MSA) is comprised of the Kentucky Counties of Bullitt, Oldham,
and Jefferson. Presently, Jefferson County,

[[Page 55]]

and portions of Bullitt and Oldham Counties, comprise the Kentucky
portion of the Louisville 1-Hour Ozone Maintenance Area. This
maintenance status means these counties were formerly designated
nonattainment for the 1-hour ozone standard, are now attaining this
standard, and have since been redesignated to attainment for the 1-hour
ozone standard (October 23, 2001, 66 FR 53665). This area was
previously classified as a moderate nonattainment area, thus the
requirement for the I/M program. Jefferson County was redesignated to
attainment for CO on April 16, 1990 (55 FR 14092). On April 30, 2004
(69 FR 23858), EPA designated Jefferson County, Kentucky nonattainment
for the 8-hour ozone NAAQS, effective June 15, 2004. Currently,
Jefferson County, Kentucky is violating the PM_2.5 NAAQS
based on 2001-2003 air quality data. EPA identified Jefferson County as
nonattainment for PM_2.5 on December 17, 2004.
As a supplemental package to the September 22, 2003, SIP revision,
the Commonwealth of Kentucky submitted a February 20, 2004, proposed
amendment to the Kentucky SIP in response to EPA's October 27, 2003,
letter requesting further information. This proposed amendment
identified for public comment potential emission reductions to
compensate for the NO_X and VOC emission increases resulting
from removing the Jefferson County VET Program as an active control
measure in the SIP. To demonstrate non-interference with applicable
requirements of the Act, EPA believes that the potential, compensating
emission reductions must be equivalent to or greater than those
achieved with the VET Program. Concurrently, the Louisville Metro Air
Pollution Control District (i.e., ``District'') also submitted this
same package to EPA to solicit EPA's comments during the public comment
period. The public hearing was held on March 31, 2004. On May 26, 2004,
the Commonwealth of Kentucky submitted the final version of the
supplemental information to replace the February 20, 2004, proposal.
The May 26, 2004, final supplemental package provides the selected
option for acquiring compensating equivalent emissions reductions from
the Kosmos Cement Company (``Kosmos'') in Jefferson County and
additional supporting documentation. To compensate for the closure of
the VET Program, equivalent emissions are needed to replace an
anticipated increase of 1.89 tons per summer day (tpsd) of VOC and 1.68
tpsd of NO_X in the year 2005.

II. What Authorities Apply to Moving the Jefferson County I/M Program
to a Contingency Measure in the Kentucky SIP?

Section 110(l) of the Clean Air Act (i.e., ``Act'') states:

Each revision to an implementation plan submitted by a State
under this Act shall be adopted by such State after reasonable
notice and public hearing. The Administrator shall not approve a
revision to a plan if the revision would interfere with any
applicable requirement concerning attainment and reasonable further
progress (as defined in section 171), or any other applicable
requirement of this Act.

The states' obligation to demonstrate attainment of each of the
NAAQS is considered as ``any applicable requirement(s) concerning
attainment.'' A demonstration is necessary to show that this revision
will not interfere with attainment or maintenance of the NAAQS,
including the relatively new 8-hour ozone and PM_2.5
standards, or any other requirement of the Act.
With respect to the 1-hour ozone NAAQS, the Louisville area met the
standard in 1999 and was redesignated to attainment for the 1-hour
ozone standard on October 23, 2001 (66 FR 53665). As part of its
redesignation, the area must have a plan to maintain the standard,
called a ``maintenance plan.'' Under section 175A(a) of the Act,
emission reduction programs in a maintenance plan for a NAAQS must be
continued unless a demonstration is made that the future, projected
emissions for the area, without credit for reductions due to the
emission reduction program being removed, remain at or below the
baseline attainment level of emissions identified in the maintenance
plan. If such a demonstration is made, that program is eligible for
removal from the SIP. However, section 175A(d) of the Act requires that
available contingency measures in the maintenance plan include all
measures in the SIP for the area before that area was redesignated to
attainment. Since the VET Program was in the SIP prior to redesignation
to attainment for ozone, the VET Program must be listed in the
contingency portion of the 1-hour ozone maintenance plan as required by
section 175A(d). Because Jefferson County was redesignated to
attainment for CO prior to the passage of the 1990 Clean Air Act
Amendments, which created section 175A, the maintenance plan
requirements described above do not apply to Jefferson County for CO.
The District was able to demonstrate continued maintenance of the
1-hour ozone standard for the requisite timeframe without taking credit
for reductions from the Jefferson County VET Program, as summarized in
Section III below. This demonstration of maintenance is further
described in the rule proposing approval of revisions to the Louisville
1-Hour Maintenance Plan published January 5, 2004, column 1, at page
number 69 FR 303.
In addition, provisions in EPA's I/M rule, set forth in 40 CFR
section 51.372(c) under the heading ``Redesignation requests,'' apply
to the Jefferson County VET Program situation. These provisions were
published January 5, 1995, at 60 FR 1735. The provisions indicate that
certain areas seeking redesignation may submit only the authority for
an I/M program rather than an implemented program in satisfaction of
the applicable I/M requirements. Under these I/M rule provisions, a
basic I/M area (i.e., was required to adopt a basic I/M program) which
has been redesignated to attainment for the 1-hour ozone NAAQS can
convert the I/M program to a contingency measure as part of the area's
1-hour ozone maintenance plan, notwithstanding the new antibacksliding
provisions in EPA's recent 8-hour ozone implementation rule. A basic I/
M area which is designated nonattainment for the 8-hour ozone NAAQS,
and which is not required to have an I/M program based on its 8-hour
ozone designation, continues to have the option to move its I/M program
to a contingency measure as long as the 8-hour nonattainment area can
demonstrate that doing so will not interfere with its ability to comply
with any NAAQS or any other applicable Clean Air Act requirement
pursuant to section 110(l) of the Act. For further details on the
application of 8-hour ozone anti-backsliding provisions to basic I/M
programs in 1-hour ozone maintenance areas, please refer to the May 12,
2004, EPA Memorandum from Tom Helms, Group Leader, Ozone Policy and
Strategies Group, Office of Air Quality Planning and Standards, and
Leila H. Cook, Group Leader, State Measures and Conformity Group,
Office of Transportation and Air Quality, to the Air Program Managers,
the subject of which is ``1-Hour Ozone Maintenance Plans Containing
Basic I/M Programs.'' A copy of this memorandum may be obtained at
http://www.epa.gov/ttn/oarpg/t1pgm.html or on RME, EPA's electronic
public docket and comment system at http://docket.epa.gov/rmepub/.
To view the memorandum

[[Page 56]]

posted in the docket for this action in RME, please follow the
instructions under number 2 of the ADDRESSES section of this document.

III. What Is EPA's Analysis of Kentucky's Demonstration of No
Interference With the 1-Hour Ozone and CO NAAQS?

The September 22, 2003, Kentucky SIP revision seeking removal of
the VET Program includes an evaluation for the 1-hour ozone and the CO
NAAQS of the potential emission impacts associated with increased
emissions that would result from removal of the Jefferson County VET
Program as an active control measure in the SIP. For the 1-hour ozone
NAAQS, the submittal provides VOC and NO_X emission inventory
data for the Kentucky portion of the Louisville MSA (i.e., Jefferson
County and portions of Bullitt and Oldham Counties) for 1999, the year
the area met the 1-hour ozone NAAQS, and projected emission inventories
for 2002, 2005, 2008, and 2012. The projected mobile source emission
inventories for 2005, 2008, and 2012 do not include emission reduction
credits from either the operation of Jefferson County's VET Program
after 2003, or the Indiana I/M Program after 2006. As shown in Tables 1
and 2 below, projected, total VOC and NO_X emissions for
2002, 2005, 2008, and 2012 for the Kentucky portion of the Louisville
1-Hour Ozone Maintenance Area all fall below the emissions levels in
1999, when the area met the 1-hour standard. These VOC and
NO_X emission totals include emissions from the point, area,
mobile, and nonroad source categories. Thus, the area demonstrates
continued maintenance of the 1-hour ozone NAAQS without the Jefferson
County VET Program. These data and supporting documentation were also
provided in the June 27, 2003, revision to the maintenance
demonstration for the Kentucky portion of the Louisville 1-Hour Ozone
Maintenance Plan. For additional information and EPA's rationale for
approving this maintenance plan update, please refer to EPA's proposed
approval of this revision published January 5, 2004 (69 FR 302).

Table 1.--Kentucky Portion of the Louisville 1-Hour Ozone Maintenance Area Total VOC Emissions (in Tons per
Summer Day) Without Emission Reduction Credits for VET Program After 2003 or Indiana I/M Program After 2006
----------------------------------------------------------------------------------------------------------------
County 1999 2002 2005 2008 2012
----------------------------------------------------------------------------------------------------------------
Jefferson...................................... 97.29 89.76 86.01 80.74 75.36
Bullitt portion................................ 4.22 3.93 3.78 3.69 3.54
Oldham portion................................. 3.58 3.28 3.13 3.03 2.91
--------------
Totals for KY portion of the area.......... 105.09 96.97 92.92 87.46 81.81
1-Hour Ozone Maintenance Plan decrease from ........... 8.12 12.17 17.63 23.28
1999..........................................
----------------------------------------------------------------------------------------------------------------

Table 2.--Kentucky Portion of the Louisville 1-Hour Ozone Maintenance Area Total NOX Emissions (in Tons per
Summer Day) Without Emission Reduction Credits for VET Program After 2003 or Indiana I/M Program After 2006
----------------------------------------------------------------------------------------------------------------
County 1999 2002 2005 2008 2012
----------------------------------------------------------------------------------------------------------------
Jefferson...................................... 217.71 188.24 123.21 109.23 92.82
Bullitt portion................................ 3.87 3.83 3.59 3.20 2.65
Oldham portion................................. 3.30 3.26 3.06 2.78 2.34
--------------
Totals for KY portion of the Area.......... 224.88 195.33 129.86 115.21 97.81
1-Hour Ozone Maintenance Plan decrease from ........... 29.55 95.02 109.67 127.07
1999..........................................
----------------------------------------------------------------------------------------------------------------

The September 22, 2003, submittal also demonstrates through ``hot
spot'' modeling that Jefferson County continues to maintain the CO
NAAQS without any credit for the VET Program. Table 3 below shows the
results of hot spot modeling using the CAL3QHC model for six,
signalized intersections to determine air quality impacts from CO
associated with traffic growth for 2008, 2012, and 2020. Using
conservative assumptions to reflect worst case conditions, the modeling
results show continued maintenance of the CO NAAQS through 2020. The 8-
hour CO NAAQS is nine parts per million (ppm).

Table 3.--Jefferson County CO Hot Spot Modeling
------------------------------------------------------------------------
CO emissions (in ppm)
Intersection --------------------------------------
2008 2012 2020
------------------------------------------------------------------------
Hurstbourne Parkway and 7.36 7.76 8.28
Shelbyville Road................
Hurstbourne Parkway and 6.20 6.32 6.50
Taylorsville Road...............
Shelbyville Road and Bowling 6.20 6.52 6.90
Boulevard.......................
Shelbyville Road and Oxmoor Lane. 6.94 7.10 7.32
Breckenridge Lane and Dutchmans 6.32 6.44 6.64
Lane............................
Preston Highway and Outer Loop... 7.84 8.00 8.24
------------------------------------------------------------------------

[[Page 57]]

As further support of the CO hot spot modeling, Kentucky's
submittal provides CO emission level data for Jefferson County based on
the use of MOBILE6 with the most recent roadway planning assumptions
and the assumption that the VET Program is not operating after November
1, 2003. The data in Table 4 below show a continuous decline in CO
mobile source winter emissions from 1999 through 2020. Both the County
CO hot spot data and the mobile emission levels show that closure of
the VET Program will not interfere with maintenance of the CO NAAQS.

Table 4.--Jefferson County CO Mobile Source Winter Emissions
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CO emissions in tons per day (tpd) 1999 2008 2012 2020
----------------------------------------------------------------------------------------------------------------
Jefferson County CO Mobile Source Winter Emissions.......... 664.66 497.34 453.89 404.12
Reduction from 1999......................................... ........... 167.32 210.77 260.54
----------------------------------------------------------------------------------------------------------------

IV. What Is EPA's Analysis of Kentucky's Demonstration of
Noninterference With the 8-Hour Ozone and Fine Particulate Matter NAAQS?

A. What Criteria Must Be Met?

On October 27, 2003, EPA sent a letter to Kentucky affirming that
movement of the VET Program to a contingency measure would not
interfere with the 1-hour ozone and CO NAAQS. The letter also requested
additional information to show that removing the VET Program as an
active control measure from the SIP would not interfere with the new 8-
hour ozone and fine particulate matter standards. For these reasons,
Kentucky submitted the supplemental information providing a
demonstration that removal of the VET Program will not interfere with
attainment of the 8-hour ozone and PM2.5 NAAQS.
In a May 11, 2004, letter from EPA to Louisville's Assistant County
Attorney, EPA provided its interpretation of section 110(l) of the
Clean Air Act as guidance in relation to an area such as Jefferson
County that does not yet have an attainment demonstration for the new
8-hour ozone and fine particulate matter NAAQS. The May 11, 2004,
letter notes that a strict interpretation of the requirement in section
110(l) of the Act would allow EPA to approve a SIP revision removing a
SIP requirement only after determining based on a completed attainment
demonstration that it would not interfere with applicable requirements
concerning attainment and reasonable further progress. However, EPA
recognizes that prior to the time areas are required to submit
attainment demonstrations for the new NAAQS, this strict interpretation
could prevent any changes to SIP control measures. EPA does not believe
this strict interpretation is necessary or appropriate.
Prior to the time that attainment demonstrations are due for the 8-
hour ozone and PM_2.5 standards, it is unknown what suite of
control measures are needed for a given area to attain these standards.
During this period, to demonstrate no interference with any applicable
NAAQS or requirement of the Clean Air Act under section 110(l), EPA
believes it is appropriate to allow states to substitute equivalent
emission reductions to compensate for the control measure being moved
from the active portion of the SIP to the contingency provisions, as
long as actual emissions in the air are not increased. EPA concluded
that preservation of the status quo air quality during the time new
attainment demonstrations are being prepared will prevent interference
with the states' obligations to develop timely attainment
demonstrations. ``Equivalent'' emission reductions means reductions
which are equal to or greater than those reductions achieved by the
control measure to be removed from the active portion of the SIP. To
show the compensating, emission reductions are equivalent, modeling or
adequate justification must be provided. (See EPA memorandum from John
Calcagni, Director, Air Quality Management Division, to the Air
Directors in EPA Regions 1-10, September 4, 1992, pages 10 and 13.) As
stated in the May 11, 2004, letter referenced earlier, the
compensating, equivalent reductions must represent actual, new emission
reductions achieved in a contemporaneous time frame to the termination
of the existing SIP control measure, in order to preserve the status
quo level of emissions in the air. In addition to being
contemporaneous, the equivalent emissions reductions must also be
permanent, enforceable, quantifiable, and surplus to be approved into
the SIP.
Likewise, the achievement of equivalent emission reductions that
meet the above criteria will satisfy any applicable requirements of
section 193 of the Act, the General Savings Clause, which involves
control requirements in effect prior to November 15, 1990.

B. What Is EPA's Analysis of Whether the Proposed Reductions Meet the
Criteria of Permanent, Enforceable, Quantifiable, Surplus, Equivalent
and Contemporaneous?

The May 26, 2004, supplemental package proposes for EPA approval
compensating, equivalent emission reductions for the Jefferson County
VET Program from the Kosmos Cement Company located in Jefferson County.
The package provides an amended Board Order with Kosmos which reduces
the Kosmos cement kiln's NO_X emission rate currently in the
Kentucky SIP from 6.6 down to 4.755 pounds per ton of clinker produced
(pptcp) by the kiln, based upon a rolling 30-day average. The following
is a description of how the emission reductions at Kosmos meet the six
criteria of permanent, enforceable, quantifiable, surplus,
contemporaneous, and equivalent.
1. Permanent: The emission reductions at Kosmos are made permanent
through the lowering of the facility's permitted NO_X
emission rate from 6.6 to 4.755 pptcp, based upon a rolling 30-day
average. This new emission rate of 4.755 pptcp NO_X is
reflected in the Louisville Metro Air Pollution Control Board Order
signed and effective in the District May 3, 2004. A Board Order is a
regulatory instrument adopted by an air pollution control board which
specifies air pollution control limits or requirements for a specific
source or company. Approval of the SIP revision will make this order a
portion of the federally enforceable Kentucky SIP.
2. Enforceable: The NO_X emission rate change for Kosmos
is enforceable by the District through the May 3, 2004, Board Order
and, upon final approval into the Kentucky SIP, will be enforceable by
the EPA, as of the effective date of the final rulemaking.
3. Surplus: The NO_X emission reductions at Kosmos, as
reflected in the emission rate reduction to 4.755 pptcp of
NO_X, are surplus for two reasons. The

[[Page 58]]

emission rate reduction is below what is already required in the
Jefferson County portion of the Kentucky SIP, and the reduction is not
from a Federal Control Measure that would occur without any State or
local action. The new emission rate of 4.755 NO_X pptcp is a
reduction below the current, SIP-approved NO_X emission rate
requirement for Kosmos' cement kiln of 6.6 pptcp based upon a 30-day
rolling average. This existing 6.6 pptcp rate was established to meet
reasonably available control technology (RACT) requirements after the
facility had made some modifications. EPA approved the 6.6 pptcp rate
as a source-specific SIP revision to the Kentucky SIP on October 23,
2001 (66 FR 53665). Also, the current emission rate of 6.6
NO_X pptcp for Kosmos' cement kiln matches the standard for
cement kilns set forth in the Kentucky SIP regulation 401 KAR 51:170,
``NO_X requirements for cement kilns,'' that was established
to meet EPA's NO_X SIP Call requirements and was approved by
EPA on April 11, 2002 (67 FR 17624). EPA's NO_X SIP Call is a
Federal Control Measure which establishes NO_X reduction
requirements for cement kilns beginning in 2004 as well as requirements
for other source categories. EPA assumed an average 30 percent
NO_X reduction from cement kilns in states' NO_X
budgets. Kosmos' existing 6.6 pptcp limit reduces NO_X by
greater than 30 percent from projected 2007 baseline emissions. (See
EPA's rule published April 11, 2002 at 67 FR 17624.) Thus, the new
4.755 pptcp rate will provide reductions above and beyond those assumed
to meet the NO_X SIP Call.
4. Quantifiable: The emission rate change for Kosmos meets the
criterion for quantifiable as the net emissions decrease from the
emission rate limit change may be calculated as follows.
The change in the NO_X emission rate: 6.6 pptcp (current
SIP rate)-4.755 (proposed rate) = 1.845 pptcp. The operating rate of
the cement kiln is 4700 tons of clinker produced per day. The reduction
of NO_X by changing the emission rate of Kosmos' cement kiln
is: (1.845 pptcp) x (4700 tons of clinker produced per day) = 8672
pounds per day of NO_X.
5. Contemporaneous: While ``contemporaneous'' is not explicitly
defined in the Clean Air Act, a reasonable interpretation is to enact
the compensating, equivalent emissions reductions in this case well
within one year (prior to or following) the cessation of the
substituted control measure. The emission reductions at Kosmos are
contemporaneous to the closing of the VET Program, which ceased
operating as of November 1, 2003. Kosmos made changes in its operating
procedures at the cement kiln beginning in March of 2003, which
resulted in reductions of NO_X. This change occurred eight
months prior to the closing of the VET Program. The May 26, 2004,
submittal documents that the operating procedure changes at Kosmos
resulted in 30-day rolling averages ranging from 2.1 to 4.1
NO_X pptcp during the April to December 2003 timeframe.
Enacting the equivalent reductions at Kosmos prior to (rather than
after) the cessation of the VET Program provides additional assurance
that there is no net emissions increase to the air for any period of
time. The District issued a May 3, 2004, Board Order making permanent
and enforceable the lowered NO_X emission rate of 4.755 pptcp.
6. Equivalent: To demonstrate that Kosmos' NO_X emission
reductions, as reflected in the facility's emission rate change from
6.6 to 4.755 NO_X ppctp, provide the equivalent benefit of
the emission reductions achieved by the VET Program, the District first
identified what emissions reductions were achieved by the VET Program
for a particular year. The VET Program reduces emissions of VOC,
NO_X, and CO. VOC and NO_X are contributors
(``precursors'') to the formation of ground-level ozone and, to a
lesser extent, fine particulate matter. Thus, to demonstrate equivalent
emissions reductions for the 8-hour ozone and PM_2.5 NAAQS,
VOC and NO_X need to be considered, whereas CO reductions are
not relevant for this demonstration.
a. Selection of the Year 2005 To Estimate Emission Increases From
Closure of the VET Program
The District selected the year 2005 to calculate what the VOC and
NO_X emission increases will be without the VET Program
because the District had already developed VOC and NO_X
emission projections data for that year for the Kentucky portion of the
Louisville 1-Hour Ozone Maintenance Plan submitted to EPA on June 27,
2003. Although the VET Program ended as of November 1, 2003, the 2003
ozone season had already ended by that time. Thus, emission increases
from the cessation of the VET Program would begin to affect ozone
formation for the 2004 ozone season. Also, as described in detail in
the next subsection below, the District demonstrated that the year 2005
provides the greatest number of VET Program emissions that need to be
replaced. Thus, EPA believes that analyzing emissions for 2005 is
representative of the 2004 period when emissions from the loss of the
VET Program would first impact the area.
In addition to the reasons listed above, the EPA believes the year
2005 provides a conservative estimate of the amount of VET Program
emissions which need to be compensated for several reasons. One reason
is due to how the MOBILE model operates. The MOBILE model estimates
emissions from vehicles on an annual basis. The model uses either
January or July to estimate vehicle emissions. July would be selected
as the month to predict vehicle emissions since July falls during the
ozone season. When the model is run for 2005, the timeframe evaluated
is from July 2004 to June 2005. During this timeframe, no vehicles were
tested by the VET Program and thus, higher vehicle emissions are
predicted. Running the MOBILE model for 2004 would cover July 2003 to
June 2004, which would capture the emission benefits from vehicles
tested during the July 1 to October 31, 2004, timeframe, prior to
cessation of the program. Thus, 2004 vehicle emission MOBILE6 estimates
would be slightly lower due to credit from the four months of the VET
Program's operation from July 1 to October 31, 2004. The higher vehicle
emission estimates mean greater compensating, equivalent reductions are
needed to replace the VET Program.
Another reason that 2005 is a conservative estimate of the VET
Program emissions which need to be replaced is that the VET Program
ceased operation as of November 1, 2003, after the 2003 ozone season,
which runs from March to October. Thus, the Program continued to
provide emission reduction benefits for the 2003 ozone season. While
the year 2004 could be used to show the increase in emissions from the
VET Program, 2005 shows a greater increase in emissions due to
cessation of the VET Program and thus, demands more compensating
emissions. A likely cause for this increase is that the year 2004 still
reflects residual emission reduction benefits due to changes to
vehicles made within the past several years, depending on the type of
repair done and the length of time since the repair was completed.
These residual benefits are expected to taper off over time.
Further support for the use of 2005 as a more conservative choice
to estimate VET Program reductions is that the vehicle miles traveled
(VMT) in 2005 will be slightly higher than in 2004, which yields
greater vehicle emissions when input into the MOBILE model without the
VET Program in operation than if the emissions were calculated using
2004 VMT data. The MOBILE model is used to calculate the emissions from
onroad mobile sources, e.g., cars

[[Page 59]]

and trucks. Higher vehicle emissions predicted from the MOBILE model
require greater compensating, equivalent emission reductions to replace
the VET Program.
b. Methodology for Substituting NO_X for VOC To Determine All
``NO_X-Equivalent'' Needed To Replace the VET Program
Due to closure of the VET Program, mobile source emissions in the
year 2005 are predicted to increase by 1.89 tpsd of VOC and 1.68 tpsd
of NO_X. To determine the number of VOC and NO_X
emissions needing to be replaced, the District converted all the VOC
into NO_X using a ratio developed in accordance with the
August 5, 1994, EPA memorandum, ``Clarification of Policy for Nitrogen
Oxides (NO_X) Substitution,'' from John Seitz, Director,
Office of Air Quality Planning and Standards. This memorandum pertains
to EPA's ``NO_X Substitution Guidance'' (December 1993). The
guidance acknowledges that controlling only VOCs may not be the most
effective approach in all areas for attaining the ozone standard and
allows for substitution of NO_X for VOC emission reductions,
contingent upon approval by EPA. The 1994 memorandum further clarifies
that NO_X for VOC substitution is a viable approach prior to
completing modeling to support an area's attainment demonstration.
To determine the amount of NO_X that will provide
equivalent ozone reduction benefits as VOC, EPA's NO_X
Substitution Guidance (December 1993) allows, on a percentage basis,
substitution of NO_X for VOC, that is a 1% reduction in VOC
requires at least a 1% reduction of NO_X. In the May 26,
2004, supplement, the District calculated NO_X/VOC ratios for
2005, 2008, and 2012, because the District had emission inventory
projections for these years. In contrast, the 2004 emission levels used
for the NO_X/VOC ratio were developed by interpolating
between the 2002 and 2005 emission inventory projections after
subtraction of 2004 NO_X reductions due to NO_X SIP
call requirements. To calculate the NO_X/VOC ratio for a
given year, the total NO_X emissions are divided by the total
VOC emissions from all source categories in Jefferson County for that
year. For example, in 2004, the total emissions from Jefferson County
sources are estimated at 95.62 tpsd VOC and 134.36 tpsd NO_X.
The District calculated that, on a percentage basis, the projected
ratio of NO_X to VOC emissions from all source categories in
Jefferson County for 2004 is 1.41 using predicted 2004 total emissions
(i.e., 134.36 tpsd NO_X divided by 95.62 tpsd VOC). This
ratio means that reducing 1.41 tpsd of NO_X is equivalent, in
terms of ozone formation, to reducing 1.00 tpsd of VOC. Table 5 lists
the ratios that the District calculated and provided to EPA.

Table 5.--NOX/VOC Ratios
----------------------------------------------------------------------------------------------------------------
Emissions from all source categories in
Jefferson County (tpsd) 2002 2004 2005 2008 2012
----------------------------------------------------------------------------------------------------------------
VOC............................................ 96.97 95.62 92.92 87.46 81.81
NOX............................................ 195.33 134.36 129.86 115.21 97.81
NOX/VOC........................................ 2.01 1.41 1.40 1.32 1.20
----------------------------------------------------------------------------------------------------------------

The District chose the 2004 NO_X/VOC ratio to convert
into NO_X the projected 2005 VOC emission increases from
closure of the VET Program because this provides the largest amount of
emissions to substitute for the VET Program as compared to using
NO_X/VOC ratios for 2005, 2008, or 2012, with the respective
emission projections for those years. Please refer to Table 6 below for
a comparison of how the NO_X/VOC ratios for years 2004, 2005,
2008, and 2012 as applied to these same years (with the exception of
2004) affect the amount of resulting NO_X-equivalent to be
replaced by converting all VOC reductions from the VET Program to
NO_X.
As shown in Table 6 below, to calculate the amount of emission
reductions as NO_X needed to substitute for the VET Program,
the District multiplied the 2004 NO_X/VOC ratio of 1.41 by
the 2005 VOC emissions predicted to increase from closure of the VET
Program, i.e., 1.89 tpsd VOC, which totals 2.66 tpsd NO_X.
The 2.66 tpsd of NO_X equivalent for VOC in 2005 is then
added to the expected increase in 2005 of NO_X emissions due
to closure of the VET Program, i.e., 1.68 tpsd of NO_X in
2005, yielding the equivalent of 4.34 tpsd of NO_X, or 8,671
pounds per summer day (ppsd), which needs to be compensated by an all-
NO_X control strategy substitution. As described earlier for
the Quantifiable criterion, Kosmos' NO_X reductions remove
8,672 ppsd of NO_X from the air. Therefore, based on this
conservative equivalency analysis, the proposed NO_X
reductions from Kosmos are equivalent, in terms of reduced ozone
formation benefits, to the VOC and NO_X reductions from the
VET Program.
EPA believes that substituting NO_X reductions from
Kosmos for both VOC and NO_X reductions from the VET Program
continues to provide equivalent, if not better, air quality protection
for Jefferson County due to significant contributions of VOCs from
biogenic sources. Since both VOC and NO_X are needed under
certain conditions to create ground-level ozone, and VOCs are abundant
in areas with many trees and other vegetation such as in Kentucky,
further reductions of NO_X limit the ability for ozone to
form in this area. In addition, VOC and NO_X, the relevant
pollutants controlled by the VET Program, are contributing precursors
to the formation of PM2.5 and thus, EPA concludes that these equivalent
reductions also demonstrate non-interference with the PM2.5 NAAQS.

Table 6.--Total NOX-Equivalent Increase From VET Program Closure
----------------------------------------------------------------------------------------------------------------
2005w/2004 2005w/2005 2008w/2008 2012w/2012
NOX/VOC ratio NOX/VOC ratio NOX/VOC ratio NOX/VOC ratio
----------------------------------------------------------------------------------------------------------------
VOC increase (tpsd)............................. 1.89 1.89 1.80 1.65
VOC increase (ppsd)............................. 3,780 3,780 3,600 3,300
VOC as NOX (tpsd)............................... 2.66 2.64 2.37 1.97
VOC as NOX (ppsd)............................... 5,311 5,283 4,742 3,945
NOX increase (tpsd)............................. 1.68 1.68 1.87 2.13
NOX increase (ppsd)............................. 3,360 3,360 3,740 4,260

[[Page 60]]

Total increase NOX + VOC as NOX (tpsd).......... 4.34 4.32 4.24 4.10
Total increase NOX + VOC as NOX (ppsd).......... 8,671 8,643 8,482 8,205
----------------------------------------------------------------------------------------------------------------

V. What Is EPA's Proposed Action?

EPA is proposing to move Regulation 8.01, ``Mobile Source Emissions
Control Requirements,'' Regulation 8.02, ``Vehicle Emissions Testing
Procedure,'' and Regulation 8.03, ``Commuter Vehicle Testing
Requirements,'' from the active control measure portion of the
Jefferson County portion of the Kentucky SIP. These regulations will be
moved to the contingency measures section of the Kentucky portion of
the Louisville 1-Hour Ozone Maintenance Plan. EPA is also proposing to
approve a source-specific SIP revision amending the NO_X
emission rate for Kosmos' cement kiln as adopted into the May 3, 2004,
Board Order with the Kosmos Cement Company.

VI. Statutory and Executive Order Reviews

Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
proposed action is not a ``significant regulatory action'' and
therefore is not subject to review by the Office of Management and
Budget. For this reason, this action is also not subject to Executive
Order 13211, ``Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This
proposed action merely proposes to approve state law as meeting Federal
requirements and imposes no additional requirements beyond those
imposed by state law. Accordingly, the Administrator certifies that
this proposed rule will not have a significant economic impact on a
substantial number of small entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.). Because this rule proposes to approve pre-
existing requirements under state law and does not impose any
additional enforceable duty beyond that required by state law, it does
not contain any unfunded mandate or significantly or uniquely affect
small governments, as described in the Unfunded Mandates Reform Act of
1995 (Pub. L. 104-4).
This proposed rule also does not have tribal implications because
it will not have a substantial direct effect on one or more Indian
tribes, on the relationship between the Federal Government and Indian
tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian tribes, as specified by Executive
Order 13175 (59 FR 22951, November 9, 2000). This action also does not
have federalism implications because it does not have substantial
direct effects on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government, as specified
in Executive Order 13132 (64 FR 43255, August 10, 1999). This action
merely proposes to approve a state rule implementing a Federal
standard, and does not alter the relationship or the distribution of
power and responsibilities established in the Clean Air Act. This
proposed rule also is not subject to Executive Order 13045 ``Protection
of Children from Environmental Health Risks and Safety Risks''
(62 FR 19885, April 23, 1997), because it is not economically significant.
In reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act. In
this context, in the absence of a prior existing requirement for the
State to use voluntary consensus standards (VCS), EPA has no authority
to disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Clean Air Act. Thus, the requirements
of section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) do not apply. This proposed rule does
not impose an information collection burden under the provisions of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,
Intergovernmental relations, Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping requirements, Volatile organic
compounds.

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

Dated: December 21, 2004.
J.I. Palmer Jr.,
Regional Administrator, Region 4.
[FR Doc. 04-28702 Filed 12-30-04; 8:45 am]
BILLING CODE 6560-50-P

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Approval and Promulgation of Implementation Plans for Kentucky: Inspection and Maintenance Program Removal for Jefferson County, KY; Source-Specific Nitrogen Oxides Emission Rate for Kosmos Cement Kiln

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