EPA is taking a direct final action to approve a revision to the Texas State Implementation Plan (SIP) submitted by the State of Texas on August 4, 2006, as the Texas Clean Air Interstate Rule (CAIR) Nitrogen Oxides (NO<INF>X</INF>) Annual Abbreviated SIP. The abbreviated SIP revision EPA is approving includes the Texas methodologies for allocation of annual NO<INF>X</INF> allowances for Phase 1 of CAIR, the control periods 2009 through 2014, and for allocating allowances from the compliance supplement pool (CSP) in the CAIR NO<INF>X</INF> annual trading program. EPA has determined that the Texas CAIR NO<INF>X</INF> Annual Abbreviated SIP revision satisfies the applicable requirements of a CAIR abbreviated SIP revision. Upon the effective date of approval of the Texas CAIR NO<INF>X</INF> Annual Abbreviated SIP revision, EPA by ministerial action will note in the Texas CAIR NO<INF>X</INF> Annual Federal Implementation Plan's (FIP) incorporated regulations that the Texas rules for annual NO<INF>X</INF> allowances under Phase 1 of CAIR and allocating allowances from the CSP apply, rather than the Federal FIP rules. The intended effect of this action is to reduce NO<INF>X</INF> emissions from the State of Texas that are contributing to nonattainment of the PM<INF>2.5</INF> National Ambient Air Quality Standard (NAAQS or standard) in downwind states. This action is being taken under section 110 of the Federal Clean Air Act (the Act or CAA).