Approval and Promulgation of Implementation Plans; State of Louisiana; Clean Fuel Fleet Program

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[LA-19-1-6934a; FRL-5310-2]

Approval and Promulgation of Implementation Plans; State of

Louisiana; Clean Fuel Fleet Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The EPA is approving the State Implementation Plan (SIP)

revision submitted by the State of Louisiana for the purpose of

establishing a Clean Fuel Fleet Program. The SIP revision was submitted

by the State to satisfy the Federal mandate, found in the Clean Air

Act, as amended in 1990 (CAA), to implement a program whereby at least

a certain percentage of all newly acquired vehicles of certain on-road

fleets in the Baton Rouge ozone nonattainment area, beginning with

model year 1998, shall be lower pollution emitting vehicles, Clean Fuel

Vehicles (CFV's). The rationale for the approval is set forth in this

document.

DATES: This final rule is effective on December 22, 1995, unless

adverse or critical comments are received by November 22, 1995. If the

effective date is delayed, timely notice will be published in the

Federal Register.

ADDRESSES: Written comments should be submitted to Mr. Thomas Diggs,

Chief, Air Planning Section (6PD-L), at the EPA Regional Office listed

below. Copies of the documents relevant to this proposed rule are

available for public inspection during normal business hours at the

following locations. Interested persons wanting to examine these

documents should make an appointment with the appropriate office at

least 24 hours before the visiting day.

U.S. Environmental Protection Agency, Region 6, Air Planning Section

(6PD-L), 1445 Ross Avenue, suite 700, Dallas, Texas 75202-2733,

telephone (214) 665-7214.

Air and Radiation Docket and Information Center, U.S. Environmental

Protection Agency, 401 M Street, SW., Washington, DC 20460.

Louisiana Department of Environmental Quality, Office of Air Quality

and Radiation Protection, 7290 Bluebonnet Blvd., Baton Rouge, Louisiana

70810.

FOR FURTHER INFORMATION CONTACT: H.D. Brown, Jr., Air Planning Section

(6PD-L), EPA Region 6, telephone (214) 665-7248.

SUPPLEMENTARY INFORMATION:

I. Background

On November 15, 1990, Congress enacted amendments to the 1977 Clean

Air Act; Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C.

7401-7671q. The Clean Fuel Fleet Program (CFFP) is contained under part

C, entitled ``Clean Fuel Vehicles,'' of title II of the CAA. Part C was

added to the CAA to establish two programs: a clean-fuel vehicle pilot

program in the State of California (the California Pilot Test Program)

and a federal CFFP in certain ozone and carbon monoxide (CO)

nonattainment areas.

The CFFP will introduce CFV's into centrally fueled fleets by

requiring covered fleet operators to include a percentage of CFV's in

their new fleet purchases. The goal of the CFFP is to reduce emissions

of non-methane organic gasses (NMOG), oxides of nitrogen (NOX),

and CO through the introduction of CFV's into the covered areas. Both

NMOG and NOX are precursors of ozone and, in most areas, their

reduction will reduce the concentration of ozone in covered ozone

nonattainment areas. Reductions of vehicular CO emissions will reduce

the concentration of CO in covered CO nonattainment areas.

Congress chose centrally fueled fleets because operators of these

fleets have more control over obtaining fuel than the general public.

Additionally, the control which operators maintain over their fleets

simplifies maintenance and refueling of these vehicles. Finally,

because fleet vehicles typically travel more miles on an annual basis

than do non-fleet vehicles, they provide greater opportunity to improve

air quality on a per vehicle basis.

Section 182(c)(4) of the CAA, 42 U.S.C. 7511a(c)(4), allows States

to opt-out of the CFFP by submitting, for EPA approval, a SIP revision

consisting of a substitute program resulting in as much or greater

long-term emission reductions in ozone producing and toxic air

emissions as the CFFP. The EPA may approve such a revision ``only if it

consists exclusively of provisions other than those required under the

[CAA] for the area.''

II. Program Requirements

Unless a State chooses to opt-out of the CFFP per section

182(c)(4); section 246 of the CAA, 42 U.S.C. 7586, directs a State

containing covered areas to revise its SIP, within 42 months after

enactment of the CAA, to establish a CFFP, whereby at least a specified

percentage of all new covered fleet vehicles, beginning with model year

[[Page 54306]]

(MY) 1998 and thereafter, shall be CFV's and such vehicles shall use

the fuel on which the CFV was certified to be a CFV (or shall use a

fuel which will result in even less emissions than the fuel which was

used for certification), when operating in the covered area. Louisiana

did not choose to opt-out of the CFFP; rather it chose to revise its

SIP to include a CFFP.

A. Covered Areas

Areas (Covered Areas) that are required to implement a CFFP are

defined in section 246(a)(2) of the CAA as: any ozone nonattainment

area with a 1980 population of 250,000 or more classified under section

181 of the CAA, 42 U.S.C. 7511, as Serious, Severe, or Extreme based on

data for the calendar years 1987, 1988, and 1989; and any CO

nonattainment area with a 1980 population of 250,000 or more and a CO

design value at or above 16.0 parts per million based on data for

calendar years 1988 and 1989, excluding those CO nonattainment areas in

which mobile sources do not contribute significantly to CO exceedances.

In Louisiana, the Baton Rouge Serious ozone nonattainment area is the

only area subject to the CFFP requirements.

B. Definitions

The definition of appropriate terms in the SIP revision should

correspond to the definition of the same terms as contained in sections

241(1), (2), (3), (4), (5), (6), and (7) of the CAA, 42 U.S.C. 7581,

and 40 CFR 88.302-94.

C. Covered Fleets

Section 241(5) of the CAA defines a covered fleet as consisting of

10 or more on-road vehicles, which are in the vehicle classifications

covered by the CFFP, and are owned or operated, leased, or otherwise

controlled by a single person, the fleet operator. Both private

business and government (federal, state, and local) fleets are subject

to the statute. However, certain fleets and vehicles are exempt from

the CFFP, including fleets with vehicles that cannot be fueled at a

central location, vehicles that are normally garaged at a personal

residence, vehicles held for lease or rental to the general public,

vehicles held for sale by motor vehicle dealers, law enforcement and

other emergency vehicles, and non-road vehicles.

D. Vehicle Classes Covered

Sections 242, 42 U.S.C. 7582, and 243, 42 U.S.C. 7583, of the CAA

and 40 CFR 88 subpart C require three vehicle classes to be included in

a CFFP: light-duty vehicles (LDV's), and light-duty trucks (LDT's) up

to 8,500 pounds Gross Vehicle Weight Rating (GVWR), and heavy-duty

vehicles (HDV's) between 8,500 and 26,000 pounds GVWR. Section 245(a)

of the CAA, 42 U.S.C. 7585(a), exempts vehicles over 26,000 pounds

GVWR.

E. Clean Fuel Vehicles (CFV's)

Section 241(7) of the CAA, requires that a CFV be defined as a

motor vehicle in one of the vehicle classes that is certified by the

EPA to meet, for any MY, one of the three sets of increasingly

stringent clean fuel vehicle emission standards that apply to CFV's in

that vehicle class for that MY. These standards are referred to as low-

emission vehicle (LEV) standards, ultra low-emission vehicle (ULEV)

standards, and zero emission vehicle (ZEV) standards. The emission

standards for these vehicles are found in 40 CFR 88.104-94 and 40 CFR

88.306-94. In addition, a vehicle certified by the EPA to meet the

inherently low-emission vehicle (ILEV) standard is also a CFV.

Standards for the ILEV may be found in 40 CFR 88.311-93.

F. Percentage Requirements

The following table reflects the specified percentage of newly

acquired fleet vehicles that are required to be CFV's pursuant to

section 246(b) of the CAA:

------------------------------------------------------------------------

Model year

Vehicle classification --------------------------

1998 1999 2000

------------------------------------------------------------------------

Light Duty Vehicles.......................... 30 50 70

Light Duty Trucks............................ 30 50 70

Heavy Duty Trucks............................ 50 50 50

------------------------------------------------------------------------

G. Credit Program

Section 246(f) of the CAA and 40 CFR 88.304-94 require the SIP

revision provide for the establishment of a credit program and the

issuance by the State of appropriate credits to a fleet operator. Among

other things, the credit program provides that, after approval of this

SIP revision, a fleet operator may generate credits in any of several

ways: (1) By the purchase of more CFV's than the minimum required by

the CFFP, (2) by the purchase of CFV's which meet more stringent

standards than the minimum required by the CFFP, (3) by the purchase of

CFV's not required by the CFFP, and (4) by the purchase of CFV's before

MY 1998. The credits generated may be used by a covered fleet operator

to satisfy the new purchase requirements of a CFFP or may be traded by

one covered fleet operator to another, provided the credits were

generated and used in, and both operators are located in, the same

nonattainment area. Certain restrictions on the trading of credits

between classes must be observed. The credits do not depreciate with

time and are to be freely traded without interference by the State.

H. Fuel Use

Section 246(b) of the CAA and 40 CFR 88.304-94(3) stipulate that

the SIP revision require the fuel on which the vehicle was certified to

be a CFV (or shall use a fuel which will result in even less emissions

than the fuel which was used for certification) be used 100% of the

time the vehicle is in the covered area.

I. Fuel Availability

Section 246(d) of the CAA requires the SIP revision shall provide

that the choice of fuel for the CFV's will be made by the covered fleet

operator and section 246(e) requires the SIP revision to require fuel

providers to make clean alternative fuel available to the covered

fleets.

J. Consultation

Section 246(a)(4) of the CAA requires the SIP revision must be

developed in consultation with fleet operators, vehicle manufacturers,

fuel producers and distributors of motor vehicle fuel, and other

interested parties, taking into consideration operational range,

specialty uses, vehicle and fuel availability, cost, safety, resale

values, and other relevant factors.

K. Recordkeeping and Monitoring

The SIP revision must provide that States establish a system for

recordkeeping and monitoring the CFFP and the credit program. For the

CFFP this should include, at a minimum, registration of fleets,

official communications from covered fleet operators to the State,

quality control of program data, and unannounced audits of at least

five percent of the covered fleets. In addition, in those cases where

covered fleet operators choose to have vehicles with conventional

petroleum back-up fuel, substantiation of the use of the required fuel

in the covered area must be kept as part of the recordkeeping

requirements. For the credit program, the SIP revision should provide

for a formal system to issue, redeem, and/or otherwise manage credits.

L. Enforcement

The SIP revision must include provisions for enforcing the CFFP. In

general, warnings and a set of penalties

[[Page 54307]]

or fines should be established which are proportionately related to the

impacts of the violation.

M. Exemption From Transportation Control Measure (TCM) Requirements

40 CFR 88.307-94 requires States to exempt any CFV's which are

required to participate in a CFFP from temporal-based (e.g., time-of-

day or day-of-week) TCM's existing for air quality reasons so long as

the exemption does not create a clear and direct safety hazard. This

exemption does not extend to the occupancy requirements of high-

occupancy vehicle (HOV) lanes. ILEV vehicles are exempt from the

occupancy requirements of HOV lanes pursuant to 40 CFR 88.313-93(c).

Currently, the Baton Rouge serious ozone nonattainment area has no TCM

requirements.

III. Louisiana SIP Submittal

Louisiana submitted a SIP revision on May 16, 1994, that implements

a CFFP. The revision meets the requirements of the CAA and the

appropriate sections of 40 CFR part 88 as detailed above. The revision

was adopted after reasonable public notice and public hearing as

required by sections 110(a)(2) and 110(l) of the CAA, 42 U.S.C. 7410,

and 40 CFR 51.102(f). The submission was reviewed and determined to be

administratively complete on December 9, 1994. The submittal was then

reviewed for approvability by EPA Region 6 and EPA Headquarters.

The areas affected by this program include the parishes of

Ascension, Iberville, East Baton Rouge, Livingston, Point Coupee, and

West Baton Rouge. These six parishes comprise the Baton Rouge ozone

nonattainment area.

IV. Final Action

In this action, the EPA is approving the SIP revision submitted by

the State of Louisiana for purposes of implementing a CFFP within the

Baton Rouge Serious ozone nonattainment area. The EPA has reviewed this

revision to the Louisiana SIP and is approving it as submitted because

the State's CFFP meets the requirements of section 246 of the CAA and

the appropriate sections of 40 CFR part 88.

Copies of the State's SIP revision and the Technical Support

Document (TSD), detailing EPA's review of the SIP revision, are

available at the address listed in the Addresses section above. For a

detailed analysis of the SIP revision, the reader is referred to the

TSD.

The EPA is publishing this action without prior proposal because

the Agency views this as a noncontroversial revision and anticipates no

adverse comments. However, in a separate document in this Federal

Register publication, the EPA is proposing to approve the SIP revision

should adverse or critical comments be filed. Thus, today's direct

final action will be effective December 22, 1995, unless, by November

22, 1995, adverse or critical comments are received.

If the EPA receives such comments, this action will be withdrawn

before the effective date by publishing a subsequent document that will

withdraw the final action. All public comments received will then be

addressed in a subsequent final rule based on this action serving as a

proposed rule. The EPA will not institute a second comment period on

this action. Any parties interested in commenting on this action should

do so at this time. If no such comments are received, the public is

advised that this action will be effective December 22, 1995.

The EPA has reviewed this request for revision of the federally-

approved SIP for conformance with the provisions of the CAA. The EPA

has determined that this action conforms with those requirements.

Nothing in this action should be construed as permitting, allowing

or establishing a precedent for any future request for revision to any

SIP. Each request for revision to a SIP shall be considered separately

in light of specific technical, economic, and environmental factors and

in relation to relevant statutory and regulatory requirements.

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., the 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, the EPA may certify that the rule will not have a

significant 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 that are

less than 50,000.

SIP revision approvals under section 110 and subchapter I, part D,

of the CAA 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, the EPA

certifies that this proposed rule would not have a significant impact

on any small entities affected. Moreover, due to the nature of the

Federal-State relationship under the CAA, preparation of a regulatory

flexibility analysis would constitute Federal inquiry into the economic

reasonableness of State actions. The CAA forbids the EPA to base its

actions concerning SIP's on such grounds. Union Electric Co. v.

U.S.E.P.A., 427 U.S. 246, 256-266 (S. Ct. 1976); 42 U.S.C. section

7410(a)(2).

Under section 202 of the Unfunded Mandates Reform Act of 1995

(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA

must prepare a budgetary impact statement to accompany any proposed or

final rule that includes a Federal mandate that may result in estimated

costs to State, local, or tribal governments in the aggregate; or to

the private sector, of $100 million or more. Under section 205, EPA

must select the most cost-effective and least burdensome alternative

that achieves the objectives of the rule and is consistent with

statutory requirements. Section 203 requires EPA to establish a plan

for informing and advising any small governments that may be

significantly or uniquely impacted by the rule.

EPA has determined that the approval action promulgated today does

not include a Federal mandate that may result in estimated costs of

$100 million or more to either State, local, or tribal governments in

the aggregate, or to the private sector. This Federal action approves

pre-existing requirements under State or local law, and imposes no new

Federal requirements. Accordingly, no additional costs to State, local,

or tribal governments, or to the private sector, result from this

action.

This action has been classified as a Table 3 action for signature

by the Regional Administrator under the procedures published in the

Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a

July 10, 1995, memorandum from Mary Nichols, Assistant Administrator

for Air and Radiation. The Office of Management and Budget has exempted

this regulatory action from Executive Order 12866 review.

Under section 307(b)(1) of the CAA, 42 U.S.C. 7607(b), petitions

for judicial review of this action must be filed in the United States

Court of Appeals for the appropriate circuit by December 22, 1995.

Filing a petition for reconsideration by the Administrator of this

final rule does not affect the finality of this rule for the purposes

of judicial review nor does it extend the time within which a petition

for judicial review may be filed, and shall not postpone the

effectiveness of such rule or action. This action may not be challenged

later in proceedings to enforce its requirements. (See section

307(b)(2).)

[[Page 54308]]

List of Subjects in 40 CFR Part 52

Environmental protection, Administrative practice and procedure,

Air pollution control, Hydrocarbons, Incorporation by reference,

Intergovernmental relations, Motor vehicle pollution, Nitrogen oxide,

Ozone, Reporting and recordkeeping requirements.

Dated: September 14, 1995.

A. Stanley Meiburg,

Acting Regional Administrator.

Part 52, chapter I, title 40 of the Code of Federal Regulations is

amended as follows:

PART 52--[AMENDED]

1. The authority citation for Part 52 continues to read as follows:

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

Subpart T--Louisiana

2. Section 52.970 is amended by adding paragraph (c)(66) to read as

follows:

Sec. 52.970 Identification of plan.

* * * * *

(c) * * *

(66) Revisions to the Louisiana Department of Environmental Quality

Regulation Title 33, Part III, Chapter 2, Section 223 and Chapter 19,

Sections 1951-1973. These revisions are for the purpose of implementing

a Clean Fuel Fleet Program to satisfy the Federal requirements for a

Clean Fuel Fleet Program to be part of the SIP for Louisiana.

(i) Incorporation by reference.

(A) Revision to LAC, Title 33, Part III, Chapter 2, Rules and

Regulations for the Fee System of the Air Quality Control Programs,

Section 223, Fee Schedule Listing, adopted in the Louisiana Register,

Vol. 20, No. 11, 1263, November 20, 1994.

(B) Revision to LAC, Title 33, Part III, Chapter 19, Mobile

Sources, Subchapter B, Clean Fuel Fleet Program, Sections 1951-1973,

adopted in the Louisiana Register, Vol. 20, No. 11, 1263-1268, November

20, 1994.

[FR Doc. 95-26195 Filed 10-20-95; 8:45 am]

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