EPA is approving a State Implementation Plan (SIP) revision submitted by the State of Tennessee on July 29, 2003. The revision corrects a deficiency identified by EPA in its August 14, 2002, conditional approval of Tennessee's Phase I NO<INF>X</INF> SIP call submittal (67 FR 52913). With this deficiency corrected, EPA is fully approving Tennessee's NO<INF>X</INF> Reduction and Trading Program because it meets the requirements of Phase I of the NO<INF>X</INF> SIP Call that will significantly reduce ozone transport in the eastern United States. EPA proposed to approve Tennessee's NO<INF>X</INF> Reduction and Trading Program, with one exception, in the August 14, 2002 (67 FR 52913), action. The exception was Tennessee's rule that allowed for the allocation, to NO<INF>X</INF> budget units, of additional allowances that have been generated through NO<INF>X</INF> emission reductions from industrial, mobile, and area source sectors. However, Tennessee's rule provided for approval of the allocation of additional allowances solely by the permitting authority, without approval by EPA. Tennessee corrected this deficiency in the revision submitted on July 29, 2003, by requiring EPA approval of any additional allocations generated through NO<INF>X</INF> emissions reductions from industrial, mobile, and area sources. Therefore, EPA is approving Tennessee's NO<INF>X</INF> Reduction and Trading Program.