Conditional Approval and Promulgation of Air Quality Implementation Plans; Colorado; Enhanced Motor Vehicle Inspection and Maintenance Program

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CO37-1-6290; FRL-5012-5]

Conditional Approval and Promulgation of Air Quality

Implementation Plans; Colorado; Enhanced Motor Vehicle Inspection and

Maintenance Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to conditionally approve a vehicle inspection

and maintenance State Implementation Plan (SIP) revision based on the

Governor's June 24, 1994 commitment to adopt final regulations for

dealership self-testing within one year of the conditional approval. If

this commitment is not met, the conditional approval will automatically

convert to a disapproval. This revision establishes and requires the

implementation of an enhanced motor vehicle inspection and maintenance

(I/M) program in the Denver and Boulder urbanized areas, including all

or part of the Colorado counties of Adams, Arapahoe, Boulder, Denver

County, Douglas, Jefferson. This action is being taken under Section

110 of the Clean Air Act.

DATES: Comments must be received on or before August 15, 1994.

ADDRESSES: Comments may be mailed to Mr. Douglas M. Skie at U.S. EPA

Region 8, (8ART-AP), 999 18th Street, Suite 500, Denver, Colorado

80202-2466. Copies of the documents relevant to this action are

available for public inspection during normal business hours at the

above address. Interested persons wanting to examine these documents

should make an appointment with the appropriate office at least 24

hours before the visiting day.

FOR FURTHER INFORMATION CONTACT:Mr. Scott P. Lee, at (303) 293-1887.

SUPPLEMENTARY INFORMATION:

I. Introduction

Motor vehicles are significant contributors of volatile organic

compounds (VOC), carbon monoxide (CO) and nitrogen oxide (NOX)

emissions. An important control measure to reduce these emissions is

the implementation of a motor vehicle inspection and maintenance (I/M)

program. Despite being subject to the most rigorous vehicle pollution

control program in the world, cars and trucks still create about half

of the ozone air pollution and nearly all of the carbon monoxide air

pollution in United States cities, as well as toxic contaminants. Of

all highway vehicles, passenger cars and light trucks emit most of the

vehicle-related carbon monoxide and ozone-forming hydrocarbons. They

also emit substantial amounts of nitrogen oxides and air toxics.

Although the U.S. has made progress in reducing emissions of these

pollutants, total fleet emissions remain high. This is because the

number of vehicle miles travelled on U.S. roads has doubled in the last

20 years to 2 trillion miles per year, offsetting much of the

technological progress in vehicle emission control over the same two

decades. Projections indicate that the steady growth in vehicle travel

will continue. Ongoing efforts to reduce emissions from individual

vehicles will be necessary to achieve our air quality goals.

Today's cars are dependent on properly functioning emission control

systems, to keep pollution levels low. Effective I/M programs can

identify problem cars and ensure that cars are properly maintained. I/M

produces emission reduction results soon after the program is put in

place.

The Clean Air Act as amended in 1990 (the Act) requires that most

polluted cities adopt either ``basic'' or ``enhanced'' I/M programs,

depending on the severity of the problem and the population of the

area. The moderate ozone nonattainment areas, plus marginal ozone areas

with existing I/M programs, fall under the ``basic'' I/M requirements.

Enhanced programs are required in serious, severe, and extreme ozone

nonattainment areas with urbanized populations of 200,000 or more; CO

areas that exceed a 12.7 parts per million (ppm) design value\1\ with

urbanized populations of 200,000 or more; and all metropolitan

statistical areas with a population of 100,000 or more in the Northeast

Ozone Transport Region.

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\1\The air quality design value is estimated using EPA guidance.

Generally, the fourth highest monitored value with 3 complete years

of data is selected as the ozone design value because the standard

allows one exceedance for each year. The highest of the second high

monitored values with 2 complete years of data is selected as the

carbon monoxide design value.

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``Basic'' and ``enhanced'' I/M programs both achieve their

objective by identifying vehicles that have high emissions as a result

of one or more malfunctions, and requiring them to be repaired. An

``enhanced'' program employs inspection methods which are better at

finding high emitting vehicles, and has additional features to better

assure that all vehicles are tested properly and effectively repaired.

The Act requires states to make changes to improve existing I/M

programs or to implement new ones for certain nonattainment areas.

Section 182(a)(2)(B) of the Act directed EPA to publish updated

guidance for state I/M programs, taking into consideration findings of

the Administrator's audits and investigations of these programs. The

Act further requires each area required to have an I/M program to

incorporate this guidance into the SIP. Based on these requirements,

EPA promulgated I/M regulations on November 5, 1992 (57 FR 52950,

codified at 40 Code of Federal Regulations (CFR) 51.350-51.373).

Under sections 182(c)(3), 187(a)(6) and 187(b)(1) of the Act, any

area having a 1980 Bureau of Census-defined urbanized area population

of 200,000 or more and either: (1) designated as serious or worse ozone

nonattainment or (2) moderate or serious CO nonattainment area with

design value greater than 12.7 ppm, shall implement enhanced I/M in the

1990 Census-defined urbanized area. The Act also established the ozone

transport region (OTR) in the northeastern United States, which

includes the States of Maine, Vermont, New Hampshire, Massachusetts,

Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware

and Maryland and Northern Virginia and the District of Columbia.

Sections 182(c)(3) and 184(b)(1)(A) of the Act require the

implementation of enhanced I/M programs in all metropolitan statistical

areas (MSAs) located in the Ozone Transport Region which have a

population of 100,000 or more people.

The Act requires basic I/M programs to be implemented in the 1990

Census-defined urbanized area of the following nonattainment areas: (1)

any area which is classified as moderate ozone nonattainment and is not

required to implement enhanced I/M or (2) any area outside the OTR that

is classified as serious or worse ozone nonattainment or moderate or

serious CO nonattainment with a design value greater than 12.7 ppm and

having a 1990 Census-defined urbanized area population of less than

200,000. Any areas classified as marginal ozone nonattainment or

moderate CO nonattainment with a design value of 12.7 ppm or less shall

continue operating existing programs that are part of an approved SIP

as of November 15, 1990 and shall update the program to meet the basic

I/M requirements set forth in 40 CFR Parts 51.350-373.

The I/M regulation establishes minimum performance standards for

basic and enhanced I/M programs, as well as requirements for the

following: Network type and program evaluation; adequate tools and

resources; test frequency and convenience; vehicle coverage; test

procedures and standards; test equipment; quality control; waivers and

compliance via diagnostic inspection; motorist compliance enforcement;

motorist compliance enforcement program oversight; quality assurance;

enforcement against contractors, stations and inspectors; data

collection; data analysis and reporting; inspector training and

licensing or certification; public information and consumer protection;

improving repair effectiveness; compliance with recall notices; on-road

testing; SIP revisions; and implementation deadlines. The performance

standard for basic I/M programs remains the same as it has been since

initial I/M policy was established in 1978, pursuant to the 1977

amendments to the Clean Air Act. The performance standard for enhanced

I/M programs is based on a high-technology test, known as IM240, for

new technology vehicles (i.e., those with closed-loop control and,

especially, fuel injected engines), including a transient loaded

exhaust short test incorporating hydrocarbons (HC), CO and NOX

cutpoints, an evaporative system integrity (pressure) test and an

evaporative system performance (purge) test.

II. Background

On January 14, 1994, and on June 24, 1994, the State of Colorado

submitted its enhanced I/M SIP revision for the Denver and the Boulder

urbanized areas. Public hearings were held on November 12, 1993, and

December 16, 1993, for the January 14, 1994 SIP submittal, and are to

be held on September 15, 1994, for the June 24, 1994, SIP submittal, as

detailed in the Governor's June 24, 1994 letter.

The January 14, 1994, submittal included authorizing legislation

(HB1340 adopted by the House and Senate and signed by the Governor);

Colorado Air Quality Control Commission (AQCC) Regulation Number 11;

Motor Vehicle Emissions Inspection Program, adopted and effective as an

emergency rule December 16, 1993, and the SIP narrative with appendices

entitled, ``State of Colorado Motor Vehicle Emissions Inspection and

Maintenance State Implementation Plan'', adopted by the AQCC on

November 12, 1993, and again on December 16, 1993, with no substantive

changes. EPA reviewed the January 14, 1994, submittal and identified

aspects which the State would need to address prior to EPA approval.

EPA's primary concerns concentrated on: the need for the State to

submit a final binding regulation to replace the since-lapsed, December

16, 1993, emergency rule; limiting dealers self-testing to non-

consecutive test-cycles; and modeling reflecting the compliance

commitments in the SIP narrative.

Governor Romer's June 24, 1994, submittal included a binding

regulation adopted by the State on March 17, 1994, changes to the SIP

narrative addressing EPA's comments, and proposed revisions to

Regulation Number 11 limiting dealer self-testing, as adopted for

public hearing on June 16, 1994. The Governor's submittal includes the

State's anticipated schedule for the adoption of the proposed revisions

to Regulation Number 11. EPA has interpreted the submittal of this

anticipated schedule to represent a commitment by the State to adopt a

regulation addressing dealer self-testing within one year of

conditional approval of Colorado's I/M SIP.

The I/M SIP submittals provide for the implementation of an

enhanced I/M program in the Denver-Boulder carbon monoxide

nonattainment area beginning on January 1, 1995 in Adams, Arapahoe,

Denver, Douglas, and Jefferson Counties. Boulder County will implement

an enhanced I/M program beginning July 1, 1995. In these areas,

Colorado will be implementing a test-only network which requires pre-

1982 vehicles to be tested annually, and post-1981 vehicles to be

tested on a biennial schedule. Colorado's program meets the

requirements of EPA's performance standard and other requirements

contained in the Federal I/M rule in the applicable urbanized areas.

Testing will be overseen by Colorado Departments of Health and Revenue.

Other aspects of the Colorado enhanced I/M program include: IM240

testing of 1982 and later light-duty vehicles and trucks and 2-speed

idle/idle testing of pre-1982 vehicles and all heavy duty trucks;

evaporative emission testing for 1975 and later model year vehicles; a

test fee to ensure the State has adequate resources to implement the

program; enforcement by registration denial and vehicle inspection

stickers; a repair effectiveness program; contractual requirements for

testing convenience; quality assurance; data collection; waiver

provisions; reporting and record keeping requirements; test equipment

and test procedure specifications; public information and consumer

protection; inspector training and certification; penalties for

inspector incompetence; and on-road testing program; and emission

recall enforcement. An analysis of how the Colorado enhanced I/M

program meets the Federal SIP requirements by section of the Federal I/

M rule is provided below. Parties desiring additional details on the

Federal I/M regulation are referred to the November 5, 1992 Federal

Register notice (57 FR 52950) or 40 CFR Parts 51.350-51.373.

III. This Action

Section 110(k) of the Act sets out provisions governing EPA's

review of SIP submittals (see 57 FR 13565-13566). Section 110(k)(4) of

the Act authorizes EPA to approve plan revisions based on a commitment

of the State to adopt specific enforceable measures by a date certain,

but not later than one year after the date of conditional approval of

the plan revision. Section 110(k)(4) further provides that any such

conditional approval shall be treated as a disapproval if the State

fails to comply with the commitment.

EPA proposes conditional approval of Colorado's enhanced I/M SIP

based on the Governor's June 24, 1994 commitment to adopt final

regulations limiting dealership self-testing to one inspection cycle

within one year of the date of conditional approval. If this commitment

is not met, the conditional approval will automatically convert to a

disapproval.

IV. EPA's Analysis of the Colorado Enhanced I/M Program

As discussed above, sections 182(c)(3), 184(b)(1)(A), 187(a)(6) and

187(b)(1) of the Act require that states adopt and implement

regulations for an enhanced I/M program in certain areas. The following

sections of this notice summarize the requirements of the Federal I/M

regulations and address whether the elements of the State's submittal

comply with the Federal rule.

Applicability--40 CFR 51.350

Under the requirements of the Clean Air Act, an enhanced I/M

program is required in the Denver urbanized area, which includes the

following five counties: Adams, Arapahoe, Denver, Douglas and

Jefferson. The State has included the implementation of an enhanced I/M

program in Boulder County to ensure that high emitting vehicles

commuting from Boulder County to the Denver metropolitan area are

identified and repaired. Boulder County is part of the Denver-Boulder

carbon monoxide nonattainment area, but is not required to implement

enhanced I/M because it contains no urbanized area with a population

greater than 200,000.

The State's submittal contains the legal authority and regulations

establishing the program boundaries for enhanced I/M. The included

population is adequate to meet the urbanized area coverage requirement

under section 51.350 of the I/M rule and is approvable.

The Federal I/M regulation requires that the State program must

stay effective until it is no longer necessary. The attainment date for

the Denver-Boulder carbon monoxide nonattainment area is December 31,

1995. However, the AQCC adopted a CO SIP on June 16, 1994, to be

submitted to EPA, that includes a request to reclassify the Denver-

Boulder CO nonattainment area to serious, extending its attainment date

to December 31, 2000. In either case, Colorado's legislation provides

authority for the I/M program through December 31, 2001, which extends

beyond the ``moderate'' or ``serious'' CO attainment deadlines set by

the Act. EPA believes this legal authority is approvable.

Enhanced I/M Performance Standard--40 CFR 51.351

The enhanced I/M program must be designed and implemented to meet

or exceed a minimum performance standard, which is expressed as

emission levels in area-wide average grams per mile (gpm) for certain

pollutants. The performance standard shall be established using local

characteristics, such as vehicle mix and local fuel parameters, and the

following model enhanced I/M program parameters: network type, start

date, test frequency, model year coverage, vehicle type coverage,

exhaust emission test type, emission standards, emission control device

checks, evaporative system function checks, stringency, waiver rate,

compliance rate and evaluation date. The emission levels achieved by

the State's program design shall be calculated using the most current

version, at the time of submittal, of the EPA mobile source emission

factor model. At the time of the Colorado submittal, the most current

version was MOBILE5a. Areas shall meet the performance standard for the

pollutants which cause them to be subject to enhanced I/M requirements.

The Colorado submittal must meet the performance standard for CO only.

The Colorado submittal includes the following program design

parameters:

Network type--Test-only

Test frequency--1982 and newer vehicles; biennial; 1981 and older

vehicles: annual

Model year coverage--all excluding newest four model years

Vehicle type coverage--all light-duty and heavy-duty gasoline

powered vehicles

Exhaust emission test type--1982 and newer light-duty vehicles:

IM240; 1981 and older light-duty vehicles: 2-speed idle all heavy-

duty vehicles: idle-test

Emission standards--20 grams per mile CO

Emission control device checks--oxygen sensor, air pump, catalyst,

inlet restrictor

Evaporative system pressure check--1975 and newer

Evaporative system purge check--1982 and newer

Stringency (pre-1981 failure rate)--20%

Waiver rate (pre-1981/1981 and newer)--3% & 3%

Compliance rate--96.4%

Evaluation date(s)--January 1, 2001

The Colorado program design meets the enhanced I/M performance

standard. The modeling analysis reflects no benefit from dealer and

fleet self-testing and the four model year exemption. If more emissions

are lost from the dealer self-testing provisions than expected, other

aspects of the program will need to be strengthened to ensure that the

enhanced performance standard target is still being met.

Network Type and Program Evaluation--40 CFR 51.353

Enhanced I/M programs shall be operated in a centralized test-only

format, unless the State can demonstrate that a decentralized program

is equally effective in achieving the enhanced I/M performance

standard. The enhanced program shall include an ongoing evaluation to

quantify the emission reduction benefits of the program and to

determine if the program is meeting the requirements of the Act and the

Federal I/M regulation. The SIP shall include details on the program

evaluation and shall include a schedule for submittal of biennial

evaluation reports, data from a state-monitored or state-administered

mass emission test of at least 0.1% of the vehicles subject to

inspection each year, description of the sampling methodology, the data

collection and analysis system and the legal authority enabling the

evaluation program.

The State legislative authority and the State I/M regulations

provide for a test-only network. Colorado's enhanced I/M network

consists of centralized contractor-run test-only facilities for 1982

and newer vehicles, and a decentralized test-only network of

independently owned facilities serving 1981 and older vehicles.

Legislation prohibits owners, operators, and employees of inspection

facilities from engaging in motor vehicle repair, service, parts sales,

or sale or lease of motor vehicles and from referring vehicle owners to

particular providers of motor vehicle repair services. This

decentralized test-only network design is acceptable under the

``presumptive equivalency'' provisions of the I/M rule, and meets EPA's

performance standard. The submittal includes provisions for and a

commitment to an ongoing program evaluation which will include the

random selection of at least 0.1% of vehicles for IM240 testing

throughout the year under carefully controlled conditions, overseen by

the State, as well as a commitment to submit the analysis and reports

required by the EPA rule.

Adequate Tools and Resources--40 CFR 51.354

The Federal regulation requires that states demonstrate that

adequate funding of the program exists. A portion of the test fee or

separately assessed per vehicle fee shall be collected, placed in a

dedicated fund and used to finance the program. Alternative funding

approaches are acceptable if demonstrated that the funding can be

maintained. Reliance on funding from the state or local general fund is

not acceptable unless doing otherwise would be a violation of the

state's constitution. The SIP shall include a detailed budget plan

which describes the source of funds for personnel, program

administration, program enforcement, and purchase of equipment. The SIP

shall also detail the number of personnel dedicated to the quality

assurance program, data analysis, program administration, enforcement,

public education and assistance and other necessary functions.

The Colorado enhanced I/M program will be funded by fees assessed

at the time of vehicle registration: a $1.50 fee per vehicle in the

program area, which is dedicated funding for the enhanced I/M program;

and an additional 50 cent fee per vehicle statewide, which may be used

for the enhanced I/M program. Additional funding for the enhanced I/M

program is generated from a 25 cent charge per emissions sticker

supplied to inspection stations. Many of the resource requirements

including remote sensing, quality assurance equipment, and technical

and consumer assistance are to be supplied by the State's enhanced I/M

contractor. The program includes 36 full-time equivalent (FTE) staff

and 4 additional contractor staff for consumer and technician

assistance. Covert audit vehicles are to be provided by the State

Patrol. EPA believes that the State submittal meets the adequate tools

and resources requirements set forth in the Federal I/M regulations.

Test Frequency and Convenience--40 CFR 51.355

The enhanced I/M performance standard assumes an annual test

frequency; however, other schedules may be approved if the performance

standard is achieved. The SIP shall describe the test year selection

scheme, how the test frequency is integrated into the enforcement

process and shall include the legal authority, regulations or contract

provisions to implement and enforce the test frequency. The program

shall be designed to provide convenient service to the motorist by

ensuring short wait times, short driving distances and regular testing

hours.

The Colorado enhanced I/M regulation provides for a combination of

annual and biennial testing based on the model year of the subject

vehicle. Pre-1982 vehicles are required to be tested annually, while

post-1981 vehicles are required to be inspected on a biennial schedule.

The Colorado legislation and the State I/M regulation provide the legal

authority to implement and enforce the test frequency as outlined.

Regulation 11 specifies the assignment of test dates in various

scenarios that might otherwise lead to vehicles getting off schedule.

The Colorado Request for Proposal, which is included in the SIP,

specifies convenience factors including a maximum average wait time of

15 minutes and an absolute maximum of 40 minutes, with monitoring and

penalties. The Colorado program provides sufficient evidence that

convenient services will be provided to the motorist. The Colorado

submittal meets the test frequency and convenience requirements of the

Federal I/M regulations and is approvable.

Vehicle Coverage--40 CFR 51.356

The performance standard for enhanced I/M programs assumes coverage

of all 1968 and later model year light duty vehicles (LDV) and light

duty trucks (LDT) up to 8,500 pounds gross vehicle weight rating

(GVWR), and includes vehicles operating on all fuel types. Other levels

of coverage may be approved if the necessary emission reductions are

achieved. Fleet vehicles may be inspected outside of the normal

enhanced I/M program test facilities, if such alternatives are approved

by the program administration, but shall be subject to the same test

requirements using the same quality control standards as non-fleet

vehicles and shall be inspected in independent, test-only facilities,

according to the requirements of 40 CFR 51.353(a). Alternatively, fleet

vehicles may be exempted under Section 51.356 of the rule, which allows

for exemptions provided a demonstration is made that the performance

standard will be met. Vehicles which are operated on Federal

installations located within an enhanced I/M program area are to be

tested, regardless of whether the vehicles are registered in the state

or local enhanced I/M area.

The Federal I/M regulation requires the SIP to include a

description of the number and types of vehicles to be covered by the

program and a description of any special exemptions including the

percentage and number of vehicles to be impacted.

The Colorado I/M legislation and regulation provide legal authority

for the enforcement and implementation of a program that includes the

coverage of all gasoline-powered LDV, LDT, and HDV greater than four

model years old, which are registered or required to be registered in

the enhanced I/M program area.

Colorado allows for fleet self-testing and claims no credit for

these vehicles in the demonstration of compliance with the performance

standard, i.e., for purposes of demonstrating compliance with the

enhanced I/M performance standard and other I/M rule requirements,

these fleet self-tested vehicles are considered exempt. These non-

dealership fleet vehicles are required to be tested in the test-only

network upon change of ownership. Fleet owners may arrange to have

fleet vehicles tested in the test-only network if desired.

Similarly, Colorado's I/M legislation allows dealer vehicles to be

tested by a non-independent third party (EPA considers this to be

dealer-self testing), but claims no credit for self-tested dealership

vehicles in the demonstration of compliance with the performance

standard. Dealers may arrange to have their vehicles tested in the

test-only network if desired. Because EPA's I/M Rule requires an

independent third party to conduct dealer testing, EPA is conditionally

approving Colorado's I/M SIP based the State's commitment to adopt

regulations to prohibit dealerships from testing vehicles two test-

cycles in a row. This will help prevent creative noncompliers from

consistently escaping a test-only independent test. EPA has determined

that this is sufficient to meet the goal of requiring independent third

parties to conduct dealer testing. Changes to Colorado's I/M

regulations were proposed for hearing, but have not yet been fully and

finally adopted. The State has submitted to EPA a schedule for adoption

of these regulations. EPA has interpreted this submission as a

commitment to adopt the necessary changes within one year of

conditional approval. Without this regulation change, or an alternative

that addresses the economic incentives towards improper testing, such

as a contract with protective mechanisms, the dealership self-testing

provisions will not be approvable and final action to conditionally

approve the SIP will convert to disapproval following the course of

action described in the proposed action portion of this notice. For

further discussion of the fleet and dealership self-testing issue, see

``Emission Credits for Dealer and Fleet Self-Testing in Enhanced I/M

Areas'', Memorandum from Dick Wilson to the Air Division Directors,

dated March 29, 1993, available in the docket.

Additionally, the State regulation provides a program exemption for

farm vehicles and vehicles with two-stroke engines. These exemptions

impact 0.79% of the subject fleet. The Colorado program meets the

enhanced I/M performance standard, reflecting no emission reduction

benefits from the exempted vehicles.

Test Procedures and Standards--40 CFR 51.357

Written test procedures and pass/fail standards shall be

established and followed for each model year and vehicle type included

in the program. Test procedures and standards are detailed in 40 CFR

51.357 and in the EPA document entitled ``High-Tech I/M Test

Procedures, Emission Standards, Quality Control Requirements, and

Equipment Specifications'', EPA-AA-EPSD-IM-93-1, finalized in April of

1994.

The State I/M regulation includes a description of the test

procedure for transient (IM240), two speed idle, idle, evaporative

system purge, evaporative system pressure testing, and for a visual

emission control device inspection. These test procedures reference

EPA-approved test procedures and guidance and are approvable. The State

enhanced I/M regulation establishes HC, CO, CO2 and NOX

maximum allowable exhaust standards for all test procedures for each

applicable model year and vehicle type. The State commits to

implementing EPA recommended exhaust standards at least on test-cycle

prior to the evaluation year, no later than January 1, 1999. The State

I/M regulation establishes evaporative purge and/or pressure test

standards. EPA believes the purge and pressure standards are lenient,

though recognizing that purge and pressure testing are not required as

an element of the enhanced I/M program for the State of Colorado. Purge

and pressure testing address evaporative hydrocarbon emission, while

Colorado is only required to meet the carbon monoxide performance

standard. The emission reductions for the purge and pressure test will

be evaluated at some future date if the State chooses to include these

measures as part of an ozone redesignation/maintenance plan.

Test Equipment--40 CFR 51.358

Computerized test systems are required for performing any

measurement on subject vehicles. The Federal I/M regulation requires

that the State SIP submittal include written technical specifications

for all test equipment used in the program. The specifications shall

describe the emission analysis process, the necessary test equipment,

the required features, and written acceptance testing criteria and

procedures.

The State regulation and Request for Proposal (contained in the SIP

submittal appendices) contain the written technical specifications for

test equipment to be used in the program. The specifications require

the use of computerized test systems. The specifications also include

performance features and functional characteristics of the computerized

test systems which meet the Federal I/M regulations and are approvable.

Quality Control--40 CFR 51.359

Pursuant to the Federal I/M Rule, quality control measures shall

insure that emission measurement equipment is calibrated and maintained

properly, and that inspection, calibration records, and control charts

are accurately created, recorded and maintained.

The appendices of the State submittal contain procedures which

describe and establish quality control measures for the emission

measurement equipment, record keeping requirements and measures to

maintain the security of all documents used to establish compliance

with the inspection requirements. This portion of the State submittal

complies with the quality control requirements set forth in the Federal

I/M regulation and is approvable.

Waivers and Compliance Via Diagnostic Inspection--40 CFR 51.360

The Federal I/M regulation allows for the issuance of a waiver,

which is a form of compliance with the program requirements that allows

a motorist to comply without meeting the applicable test standards. For

enhanced I/M programs, an expenditure of at least $450 in repairs,

adjusted annually to reflect the change in the Consumer Price Index

(CPI), as compared to the CPI for 1989, is required in order to qualify

for a waiver. Waivers can only be issued after a vehicle has failed a

retest performed after all qualifying repairs have been made. Any

available warranty coverage must be used to obtain repairs before

expenditures can be counted toward the cost limit. Tampering related

repairs shall not be applied toward the cost limit. Repairs must be

appropriate to the cause of the test failure. Repairs for 1980 and

newer model year vehicles must be performed by a recognized repair

technician to be applicable towards the minimum repair expenditure. The

Federal regulation allows for compliance via a diagnostic inspection in

special circumstances. The SIP must set a maximum waiver rate and must

describe corrective action that would be taken if the waiver rate

exceeds that committed to in the SIP.

Colorado's legislation provides the necessary authority to issue

waivers, set and adjust cost limits, and administer and enforce the

waiver system. The Colorado legislation sets a $450 cost minimum and

allows for an annual adjustment of the cost limit to reflect the change

in the CPI, as compared to the CPI in 1989 in the enhanced I/M program.

The regulation includes provisions which address waiver criteria and

procedures, including cost limits, tampering and warranty related

repairs, quality control and administration. Fleet and dealer-owned

vehicles are not eligible to comply with the I/M requirements via

certificates of waiver. These vehicles must be repaired to comply with

the test requirements independent of cost, or registration will be

denied. These provisions meet the Federal I/M regulations requirements

and are approvable. The State regulation allows for compliance via

diagnostic inspection and the policies and procedures outlined in the

submittal meet Federal I/M regulations and are approvable. The State

has set a maximum waiver rate of 3% for both pre-1981 and for 1981 and

later vehicles and has described corrective actions to be taken if the

waiver rate exceeds 3%. This waiver rate has been used in the

performance standard modeling demonstration and is approvable. Thus,

EPA has determined that the waiver provisions of the SIP are

approvable.

Motorist Compliance Enforcement--40 CFR 51.361

The Federal regulation requires that motorist compliance shall be

ensured through the denial of motor vehicle registration in enhanced I/

M programs, unless an exception for use of an existing alternative is

approved. The I/M rule requires the use of mandatory meaningful fines

to deter motorist compliance and requires States to undertake

activities limiting the loopholes available to motorists. The SIP

submittal is to include a description of the enforcement process, legal

authority to enforce compliance, and a commitment to a compliance rate

to be used for modeling purposes and to be maintained in practice.

Colorado's legislative authority and I/M regulation provide the

legal authority to implement registration denial and sticker-based

enforcement. The Colorado SIP commits to a compliance rate of 96.4%, as

used in the performance standard modeling demonstration. Penalties for

failure to comply with the program are described in the authorizing

legislation and the Colorado Revised Statutes. Fines of up to $1,000

can be imposed in cases where motorists are involved in fraudulently

obtaining certificates of compliance, stickers, or registrations.

Failure to register a vehicle also results in significant penalties, as

described in the Colorado Revised Statutes regarding registration

penalties. The State of Colorado has met EPA's requirements for the

imposition of mandatory fines. The State commits to corrective action

if a compliance rate of 96.4% is not maintained in practice.

Motorist Compliance Enforcement Program Oversight--40 CFR 51.362

The Federal I/M regulation requires that the enforcement program

shall be audited regularly and shall follow effective program

management practices, including adjustments to improve operation when

necessary. The SIP shall include quality control and quality assurance

procedures to be used to insure the effective overall performance of

the enforcement system. An information management system shall be

established which will characterize, evaluate, and enforce the program.

The Colorado I/M legislation, regulation, and SIP narrative and

appendices describe how the enforcement program oversight is quality

controlled and quality assured and includes the establishment of an

information management system. The enforcement program oversight

activities included in the submittal meet the Federal I/M regulation

requirements and are approvable.

Quality Assurance--40 CFR 51.363

An ongoing quality assurance program shall be implemented to

discover, correct and prevent fraud, waste, and abuse in the program.

The program shall include covert and overt performance audits of the

inspectors, audits of station and inspector records, equipment audits,

and formal training of all state I/M enforcement officials and

auditors. A description of the quality assurance program, which

includes written procedure manuals on the above discussed items, must

be submitted as part of the SIP.

The Colorado legislation, regulation, and SIP narrative and

appendices include a quality assurance program which describe details

and procedures for implementing inspector records audits, and equipment

audits, as well as providing formal training to all state enforcement

officials. Performance audits of inspectors will consist of both covert

and overt audits. These procedures meet the Federal I/M regulation

requirements and are approvable.

Enforcement Against Contractors, Stations and Inspectors--40 CFR 51.364

Enforcement against licensed stations or contractors, and

inspectors shall include swift, sure, effective, and consistent

penalties for violation of program requirements. The Federal I/M

regulation requires the establishment of minimum penalties for

violations of program rules and procedures which can be imposed against

stations, contractors and inspectors. The legal authority for

establishing and imposing penalties, civil fines, license suspensions

and revocations must be included in the SIP. State quality assurance

officials shall have the authority to temporarily suspend station and/

or inspector licenses immediately upon finding a violation that

directly affects emission reduction benefits. An official opinion

explaining state constitutional impediments to immediate suspension

authority must be included in the submittal. The SIP shall describe the

administrative and judicial procedures and responsibilities relevant to

the enforcement process, including which agencies, courts and

jurisdictions are involved, who will prosecute and adjudicate cases and

the resources and sources of those resources which will support this

function.

The Colorado submittal includes the legal authority to establish

and impose penalties against stations, contractors and inspectors. The

I/M SIP and regulations include penalty provisions for stations,

contractors, and inspectors. These penalty schedules meet the Federal

I/M regulation requirements and are approvable. The State I/M

regulation gives the state auditor the authority to temporarily suspend

station and inspector licenses or certificates immediately upon finding

a violation. The submittal includes a description of administrative and

judicial procedures relevant to the enforcement process which meet

Federal I/M regulations and are approvable.

Data Collection--40 CFR 51.365

Accurate data collection is essential to the management, evaluation

and enforcement of an enhanced I/M program. The Federal I/M regulation

requires data to be gathered on each individual test conducted and on

the results of the quality control checks of test equipment required

under 40 CFR 51.359.

The State regulation requires the collection of data on each

individual test conducted and describes the type of data to be

collected. The type of test data collected meets the Federal I/M

regulation requirements and is approvable. The appendices to the I/M

SIP submittal contain a procedure manual that details the gathering and

reporting requirements of the State and the State's contractor required

under 40 CFR 51.359 and is approvable.

Data Analysis and Reporting--40 CFR 51.366

Data analysis and reporting are required to allow for monitoring

and evaluation of the program by the State and EPA. The Federal I/M

regulation requires annual reports to be submitted to EPA which provide

information and statistics and summarize activities performed for each

of the following programs: testing, quality assurance, quality control

and enforcement. These reports are to be submitted by July and shall

provide statistics for the period of January to December of the

previous year. A biennial report shall be submitted to EPA which

addresses changes in program design, regulations, legal authority,

program procedures and any weaknesses in the program found during the

two year period and how these problems will be or were corrected.

The State enhanced I/M legislation and regulation provide for the

analysis and reporting of data for the testing program, quality

assurance program, quality control program, and the enforcement

program. The State will submit annual reports on the I/M programs to

EPA by July of the subsequent year. Additionally, the State will submit

a biennial report detailing changes to and deficiencies in the State's

I/M program. The appendices to the I/M SIP submittal contain procedure

manuals that detail the gathering, analysis, and reporting requirements

of the State and the State's contractor. The type of data to be

gathered, analyzed, and reported to EPA meets the Federal I/M

regulation requirements and is approvable.

Inspector Training and Licensing or Certification--40 CFR 51.376

The Federal I/M regulation requires all inspectors to be formally

trained and licensed or certified to perform inspections.

The State I/M regulation requires all inspectors to receive formal

training, and to be certified by the Colorado Department of Revenue.

The State submittal includes a description of and the information

covered in the training program, a description of the written and

hands-on tests and a description of the certification process. The SIP

meets the Federal I/M regulation requirements for inspector training

and certification and is approvable.

Public Information and Consumer Protection--40 CFR 51.368

The Federal I/M regulation requires the SIP to include public

information and consumer protection programs. The State submittal

includes contract provisions for a public information program which

educates the public on enhanced I/M, State and Federal regulations, air

quality and the role of motor vehicles in the air pollution problem,

and other items as described in the Federal rule. The consumer

protection program includes provisions which allow for vehicle owners

to challenge the results of vehicle testing through the use of State-

run referee stations, and protection of whistle blowers. In addition,

the State provides assistance to motorists in obtaining warranty-

covered repairs. The public information and consumer protection

programs contained in the SIP submittal meet the Federal regulations

and are approvable.

Improving Repair Effectiveness--40 CFR 51.369

Effective repairs are the key to achieving program goals. The

Federal regulation requires states to take steps to ensure that the

capability exists in the repair industry to repair vehicles. The SIP

must include a description of the technical assistance program to be

implemented, a description of the procedures and criteria to be used in

meeting the performance monitoring requirements required in the Federal

regulation and a description of the repair technician training

resources available in the community.

The State I/M legislation and regulation require the implementation

of a technical assistance program, which includes a contractor-operated

hot line service to assist repair technicians, state technical

diagnostic centers, and a method of regularly informing the repair

facilities of changes in the program, training courses, and common

repair problems. The I/M contractor will be responsible initially for

development of an emission repair technician training program. The

State envisions that eventually this function will be taken over by

vocational and community educational facilities in the area. A repair

facility performance monitoring program will provide motorists whose

vehicles fail the test a summary of local repair facilities

performance. The State revised the January 14, 1994 SIP to commit to

providing performance statistics on all repair facilities that perform

I/M emission repairs upon request. The State will provide regular

feedback to each facility on their repair performance. The submittal of

a completed repair form at the time of retest is required. The repair

effectiveness improvement plan meets the criteria described in the

Federal regulation and is approvable.

Compliance With Recall Notices--40 CFR 51.370

The Federal regulation requires the states to establish methods to

ensure that vehicles that are subject to enhanced I/M and are included

in a emission related recall receive the required repairs prior to

completing the emission test or renewing the vehicle registration.

The Colorado legislation provides the legal authority to require

owners to comply with emission related recalls before completing the

emission test and prior to being eligible for registration renewal. The

SIP appendices detail procedures to be used to incorporate national

database recall information into the State inspection/registration

database and quality control methods to insure recall repairs are

properly documented and tracked. The submittal includes a requirement

to submit an annual report to EPA which includes the information as

required in 40 CFR Part 51.370(c). The recall compliance program

contained in the SIP submittal meets the Federal requirements and is

approvable.

On-Road Testing--40 CFR 51.371

On-road testing is required in enhanced I/M areas. The use of

either remote sensing devices (RSD) or roadside pullovers including

tailpipe emission testing can be used to meet the Federal regulations.

The program must include on-road testing of 0.5% of the subject fleet

or 20,000 vehicles, whichever is less, in the nonattainment area or the

I/M program area. Motorists that have passed an emission test and are

found to be high emitters as a result of a on-road test shall be

required to pass an out-of-cycle test.

Legal authority to implement the on-road testing program and

enforce off-cycle inspection and repair requirements is contained in

the State legislation. The SIP submittal requires on-road testing of

0.5% of the subject fleet per year in the Denver-Boulder nonattainment

area to be implemented by the contractor or its subcontractor. A

description of the program, which includes test limits and criteria,

and methods of collecting, analyzing and reporting the results of the

testing is detailed in the submittal. The on-road testing program

described in the SIP meets Federal requirements and is approvable.

State Implementation Plan Submissions/Implementation Deadlines--40 CFR

51.372-373

The Federal regulation requires enhanced I/M programs to be

implemented by January 1, 1995 except for: (1) Existing test-and-repair

programs which may test 30% of the subject fleet in the test-only

system during 1995 and test all subject vehicles in the test-only

system beginning January 1, 1996 (during the phase-in period, existing

requirements may continue to apply for the test-and-repair portion of

the program until it is phased out by January 1, 1996) or (2) Areas

starting new test-only programs and those with existing test-only

programs may phase in the new test procedures between January 1, 1995

and January 1, 1996; however, all other program requirements must be

fully implemented by January 1, 1995.

The Colorado submittal included binding State I/M regulations,

legislative authority to implement the program, final specifications, a

final RFP, procedural documents, a modeling demonstration showing that

the program design meets the performance standard, evidence of adequate

funding and resources to implement the program, and a detailed

discussion on each of the required program design elements. The

submittal states that all inspectors and stations will be certified by

December 31, 1994, mandatory testing will begin on January 1, 1995, and

the start date for implementation of full-stringency cutpoints will be

no later than January 1, 1999. The submittal also includes a commitment

to include onboard diagnostic checks in the enhanced I/M program within

2 years after promulgation of onboard diagnostic check regulations for

I/M programs. The SIP meets the SIP submission and Implementation

deadline requirements set forth in the Federal I/M regulation.

V. Request for Comments

EPA is proposing to conditionally approve the Colorado SIP revision

for an enhanced I/M program, which was submitted on January 14, and

June 24, 1994. EPA is soliciting public comments on the issues

discussed in this notice or on other relevant matters. These comments

will be considered before taking final action. Interested parties may

participate in the Federal rulemaking procedure by submitting written

comments to the EPA Regional office listed in the ADDRESSES section of

this notice.

VI. Proposed Action

EPA is proposing to conditionally approve the Colorado I/M program.

Revisions to the SIP were submitted on January 14, 1994, and June 24,

1994. Conditional approval is based on the State's commitment to

satisfy conditions no later than one year from the date of final

conditional approval. If such conditions are not met by this date, the

conditional approval will automatically become a disapproval.

VII. Executive Order 12866

The OMB has exempted this rule from the requirements of Section 6

of Executive Order 12866.

VIII. Regulatory Flexibility

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. 5 U.S.C. 603 and 604.

Alternatively, EPA may certify that the rule will not have a

significant economic impact on a substantial number of small entities.

Small entities include small businesses, small not-for-profit

enterprises, and government entities with jurisdiction over populations

of less than 50,000.

SIP approvals under sections 110 and 301, and subchapter I, Part D

of the Act and conditional SIP approvals under section 110 and

subchapter I, Part D of the Act do not create any new requirements, but

simply approve requirements that the State is already imposing.

Therefore, because the Federal SIP-approval does not impose any new

requirements, I certify that it does not have a significant impact on

small entities affected. Moreover, due to the nature of the Act,

preparation of a regulatory flexibility analysis would constitute

Federal inquiry into the economic reasonableness of state action. The

Act forbids EPA to base its actions concerning SIPs on such grounds.

Union Electric Co. v. U.S. E.P.A., 427 U.S. 246, 256-66 (S. Ct. 1976);

42 U.S.C. 7410(a)(2).

If the conditional approval is converted to a disapproval under

section 110(k)(4), the disapproval will not affect any existing state

requirements applicable to small entities. Federal disapproval of the

State submittal does not affect its state-enforceability. Moreover,

EPA's disapproval of the submittal does not impose a new Federal

requirement. Therefore, EPA certifies that such disapproval action

would not have a significant impact on a substantial number of small

entities because it would not remove existing state requirements nor

substitute a new Federal requirement.

List of Subjects in 40 CFR Part 52

Air pollution control, Environmental protection, Hydrocarbons,

Intergovernmental relations, Nitrogen dioxide, Particulate matter,

Reporting and recordkeeping requirements, Sulfur dioxide, Volatile

organic compounds.

Authority: 42 U.S.C. 7401-7671q.

Dated: June 30, 1994.

Jack W. McGraw,

Acting Regional Administrator.

[FR Doc. 94-17005 Filed 7-13-94; 8:45 am]

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