Approval and Promulgation of Air Quality Implementation Plans; Illinois: Motor Vehicle Inspection and Maintenance

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IL102-1-6693; FRL-5503-9]

Approval and Promulgation of Air Quality Implementation Plans;

Illinois: Motor Vehicle Inspection and Maintenance

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve portions and to conditionally

approve other portions of a vehicle inspection and maintenance (I/M)

State Implementation Plan (SIP) revision submitted by the State of

Illinois on June 29, 1995, based on the State's April 22, 1996, letter

of commitment to submit certain items within one year of the final

conditional approval. This revision provides for the adoption and

implementation of an enhanced I/M program in both the Chicago severe

ozone nonattainment area and the East St. Louis moderate ozone

nonattainment area. Both areas are required to attain the National

Ambient Air Quality Standards (NAAQS) as specified under the Clean Air

Act (Act) by 2007 and 1996 respectively. Illinois indicates that the

implementation of this important program in the two areas stated above,

will reduce vehicle emissions which contribute to the formation of

urban smog in Illinois by more than 38 tons per day. In support of the

proposed conditional approval of the SIP revision, the State has

submitted the State's Request-For-Proposals as supplemental information

to the SIP. In addition, the State has committed in an April 22, 1996,

letter to submit to EPA as supplemental information in support of the

SIP, the State's final I/M contract and any rules necessary to address

the requirements identified in the analysis section of this document.

DATES: Comments must be received on or before June 10, 1996.

ADDRESSES: Copies of Illinois' I/M SIP submittal, EPA's proposals and

rulemakings, and other documents pertinent to this proposed notice are

available at the following address: U.S. Environmental Protection

Agency, Region 5, Air and Radiation Division, Air Programs Branch, 77

West Jackson Boulevard, Chicago, Illinois 60604.

Comments on this proposed rule should be addressed to: J. Elmer

Bortzer, Chief, Regulation Development Section, Air Programs Branch

(AR-18J), United States Environmental Protection Agency, Region 5, 77

West Jackson Boulevard, Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Environmental

Engineer, Regulation Development Section, Air Programs Branch (AR-18J),

United States Environmental Protection Agency, Region 5, 77 West

Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6061.

Anyone wishing to come to Region 5 offices should first contact

Francisco J. Acevedo.

SUPPLEMENTARY INFORMATION:

I. Introduction

Motor vehicles are significant contributors of volatile organic

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

emissions. The motor vehicle inspection and maintenance program is an

effective means of reducing these emissions. Despite improvements in

emission control technology in past years, mobile sources in urban

areas continue to remain responsible for roughly half of the emissions

of VOC causing ozone, and most of the emissions of CO. They also emit

substantial amounts of nitrogen oxides and air toxics. This is because

the number of vehicle miles traveled 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 period. Projections

indicate that the steady growth in vehicle miles will continue.

Under the Act, the EPA is pursuing a three-point strategy to

achieve emission reductions from motor vehicles. The development and

commercialization of cleaner vehicles and cleaner fuels represent the

first two elements of the strategy. These developments will take many

years before cleaner vehicles and fuels dominate the fleet and

favorably impact the environment. This document deals with the third

element of the strategy, inspection and maintenance, which is aimed at

the reduction of emissions from the existing fleet by ensuring that

vehicles are maintained to meet the emission standards established by

EPA. Properly functioning emission controls are necessary to keep

pollution levels low. The driving public is often unable to detect a

malfunction of the emission control system. While some minor

malfunctions can increase emissions significantly, they do not affect

drivability and may go unnoticed for a long period of time. Effective

I/M programs can identify excessive emissions and assure repairs. The

EPA projects that sophisticated I/M programs such as the one being

proposed in this rulemaking in Illinois will identify emission related

problems and prompt the vehicle owner to obtain timely repairs thus

reducing emissions.

The Act requires that polluted cities adopt either a ``basic'' or

``enhanced'' I/M program, depending on the severity of the pollution

and the population of the area. Moderate ozone nonattainment areas,

plus marginal ozone areas with existing or previously required I/M

programs in Census-defined urbanized areas, fall under the ``basic'' I/

M requirements. 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'' I/M program covers more vehicles in operation in the

fleet, 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

directed EPA to establish a minimum performance standard for enhanced

I/M programs. The standard is based on the performance achievable by

annual inspections in a centralized test program. States have

flexibility to design their own programs if they can show that their

program is as effective as the model program used in the performance

standard. Naturally, the more effective the program the more credit a

State will get towards the emission reduction requirement. An effective

program will help to offset emissions associated with growth in vehicle

use and allow for industrial and/or commercial growth.

The EPA and the States have learned a great deal about what makes

an I/M program effective since the Clean Air Act of 1977 first required

I/M programs for polluted areas. There are three major keys to an

effective program:

(1) Given the advanced state of current vehicle design and

anticipated technology changes, the ability to accurately fail problem

vehicles and pass clean ones requires improved test equipment and test

procedures;

(2) Comprehensive quality control and aggressive enforcement are

essential to assuring the testing is done properly;

(3) Skillful diagnostics and capable mechanics are important to

assure that failed cars are fixed properly.

These three factors are missing in most older I/M programs.

Specifically, the idle and 2500 RPM/idle short tests and anti-tamper

inspections used in current I/M programs are not as effective in

identifying and reducing in-use emissions from the types of vehicles in

the current and future fleet. Also, covert audits by EPA and State

agencies

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typically discover improper inspection and testing 50 percent of the

time in test-and-repair stations indicating poor quality control.

Experience has shown that quality control at high-volume test only

stations is usually much better. And, finally, diagnostics and

mechanics training are often poor or nonexistent.

On November 5, 1992 (57 FR 52950), EPA established a high-tech

emission test for high-tech cars. This I/M test, known as the IM240

test, is so effective that biennial test programs yield almost the same

emission reduction benefits as annual programs. The test can also

accurately measure NOX emissions where NOX is important to

address an ozone problem. The addition of the pressure and purge test

increases the benefit even more and results in lower testing costs and

consumer time demands. The pressure test is designed to find leaks in

the fuel system, and the purge test evaluates the functionality of the

vapor control system. In addition, EPA published changes to the I/M

rule in the Federal Register on October 18, 1995, (60 FR 48029) in

order to provide greater flexibility to States required to implement I/

M programs.

II. Background

The State of Illinois currently contains two ozone nonattainment

areas which are required to implement I/M programs in accordance with

the Act. The Chicago severe-17 ozone nonattainment area contains the

Chicago, Aurora, Crystal Lake, Elgin, Joliet, and Round Lake Beach-

McHenry urbanized areas. The Federal I/M rule requires the Chicago

urbanized area to implement an enhanced I/M program. Since the I/M rule

does not require enhanced I/M programs in severe urbanized areas with a

Census population of less than 200,000, the remaining five cities in

the Chicago nonattainment area will be required to implement only a

basic I/M program based on their 1990 Census-defined urbanized area

populations. The East St. Louis moderate ozone nonattainment area

contains the Illinois portion of the St. Louis and Alton urbanized

areas. Both areas are required to implement a Basic I/M program in the

nonattainment area. On June 29, 1995, IEPA submitted to EPA a SIP

revision for the implementation of an enhanced I/M program to cover

both the Chicago and the East St. Louis nonattainment areas. This

submittal includes the Vehicle Emissions Inspection Law of 1995 (625

ILCS 5/13B), P.A. 88-533, which became effective January 18, 1994. That

statute provides authority for IEPA to implement an enhanced I/M

program and meet EPA's requirements for such a program. P.A. 88-533

mandates enhanced I/M testing for the Metro-East area and certain

portions of the Chicago nonattainment area. In addition, the Illinois

submittal includes I/M regulations (R94-19 and R94-20) adopted on

December 1, 1994, by the Illinois Pollution Control Board (Board),

which include emissions standards based upon EPA's preferred IM240

loaded mode exhaust emissions standard. On December 23, 1994, the

amended rule for R94-20 was published in the Illinois State Register

and its effective date was December 12, 1994. On December 30, 1994, the

amended rule R94-19 was published in the Illinois Register and had an

effective date of December 14, 1994. On April 22, 1996, IEPA submitted

the State's I/M Request-For-Proposal as part of the Illinois SIP

submittal.

Under the Environmental Protection Act [415 ILCS 5 (1992)], the

Board has the authority to adopt air pollution regulations for the

State of Illinois. The adopted regulations and the legislation

submitted by Illinois changes the existing program from a basic I/M

program to a fully enhanced I/M program in both of Illinois' ozone

nonattainment areas. EPA summarizes the requirements of the Federal I/M

regulations, as found in 40 CFR 51.350-51.373, and its analysis of the

state submittal 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 51.350-51.373.

III. EPA's Analysis of the Illinois, Enhanced I/M Program

As discussed above, section 182 of the Act requires that States

adopt and implement updated regulations for I/M programs in moderate

and above ozone nonattainment 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

Section 182(c)(3) of the Act and 40 CFR 51.350(a) require States

which contain areas classified as serious or worse ozone nonattainment

and containing metropolitan statistical areas (MSAs) with a population

of 200,000 or more to implement an enhanced I/M program. As noted

above, the State of Illinois contains the Aurora, Chicago, Crystal

Lake, Elgin, Joliet, and Round Lake beach-McHenry urbanized areas in

its Chicago Severe-17 ozone nonattainment area, but the Chicago

urbanized area is the only area which contains a population of more

than 200,000, based on 1990 Census data. The remaining urbanized areas

in the Chicago nonattainment area with populations less than 200,000

are required to implement a basic I/M program. In addition, section

182(b)(4) of the Act and 40 CFR part 51.530(a) require States with

moderate ozone nonattainment areas containing 1990 census-defined

urbanized areas to implement a basic I/M program. The State of Illinois

contains the East St. Louis moderate nonattainment area where this

requirement applies.

The Illinois submittal contains the legal authority and regulations

necessary for IEPA to establish the program boundaries and operate an

enhanced I/M program in ozone nonattainment areas stated above. P.A.

88-533 specifies the geographic boundaries of the program in both ozone

nonattainment areas. The program boundaries described in the Illinois

submittal meet the Federal I/M requirements under Sec. 51.350 and are

approvable. The Federal I/M regulation requires that the State I/M

program must operate until it is no longer necessary. EPA has

determined that a SIP which does not terminate prior to the attainment

deadline for each applicable area (i.e. 2007 for the Chicago severe-17

ozone nonattainment area, and 1996 for the Metro-East moderate ozone

nonattainment area) satisfies this requirement. The State I/M submittal

does not contain a termination provision and is therefore approvable.

EPA proposes to approve this section of the Illinois submittal.

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, expressed in area-wide

average grams per mile (gpm), for emission levels of certain

pollutants. The performance standard shall be established using local

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

following model 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, 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 Illinois submittal, the most current version was

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MOBILE5a. Areas shall meet or exceed the performance standard for the

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

case of ozone nonattainment areas, the performance standard must be met

for both nitrogen oxides (NOX) and volatile organic compounds

(VOCs). Urban Airshed Modeling (UAM) has been conducted in both the

Chicago and St. Louis regions. In the Chicago area, the UAM has

demonstrated that control of NOX within the nonattainment area is

counterproductive in controlling ambient ozone. IEPA has petitioned

for, and has received from EPA, a waiver from Clean Air Act NOX

control requirements, including the requirement to meet the NOX

enhanced I/M performance standard. EPA is currently in the process of

evaluating the UAM data and an IEPA NOX waiver request for the St.

Louis region. NOX testing will be restricted to tests conducted

for program evaluation purposes in accordance with 40 CFR Part

51.353(c).

The June 30, 1995, Illinois submittal includes three alternative

enhanced program options based on the use of either ASM5015, ASM2, or

IM240 networks. All three options use the following program design

parameters: Centralized test only network; 1986 start date; biennial

frequency; 1968 and newer model year coverage; Vehicle type include

LDGV, LDGT1, LDGT2 and HDGV; IM240 for 1981 and newer vehicles, and

idle for 1968-1980 LDGV's and LDGT's and 1968 and later HDGV's; purge

test on 1981 and newer LDGV's and LDGT's undergoing either ASM or

IM240; pressure test of gas cap; stringency rate of 20 percent for 1980

and older vehicles; waiver rate of 3 percent and a 96 percent

compliance rate.

The Illinois program design parameters meet the Federal I/M

regulations and are approvable. The emission levels achieved by the

State, for each area, were modeled using MOBILE5a. The modeling

demonstration was performed correctly, using local characteristics

where available, and it demonstrated that the program design will meet

the enhanced I/M performance standard, expressed in grams per mile, for

VOCs and NOX for each milestone and for the attainment deadline.

The modeling demonstration submitted by the State is approvable. EPA

proposes to approve this section of the submittal.

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 regulations. The SIP shall include details on the program

evaluation and a schedule for submittal of biennial evaluation reports,

data from a State monitored or administered mass emission test of at

least 0.1 percent 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 centralized, test-only network. Illinois' centralized,

test only network type is approvable. The submittal does not, however,

include provisions for on-going program evaluation to satisfy all of

the requirements of 40 CFR part 51.353. Specifically, the State must

submit schedules for program evaluations and methodologies by which

this biennial program evaluation will be carried out, as required by 40

CFR part 51.353. EPA proposes to conditionally approve this section of

the Illinois enhanced I/M SIP based on the April 22, 1996, letter and

phone conversation record committing to submit to EPA as supplemental

information in support of the SIP the necessary documentation within

one year of the final conditional approval. In addition, the State has

committed to submit to EPA biennial program evaluation reports meeting

the requirements of 40 CFR part 51.353 starting at the end of the

program's first biennial cycle.

Adequate Tools and Resources 40 CFR 51.354

The Federal I/M regulation requires States to demonstrate that

adequate funding of the program is available. A portion of the test fee

or a separately assessed per year vehicle fee shall be collected,

placed in a dedicated fund and used to finance the program. Alternative

funding approaches are acceptable if it is demonstrated that the

funding can be maintained. Reliance on funding from a 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. A.P. 88-

533 prevents the IEPA from charging motor vehicle owners for

inspections required under this law. Instead, A.P. 88-533 states that

the Vehicle Inspection Fund, which was a fund created in the State

treasury for the purpose of receiving money from the Motor Fuel Tax and

other sources, shall be used for the payment of the cost of the

program, including reimbursement of those agencies of the State that

incur expenses in the administration and enforcement of the program.

EPA proposes to approve this section of the Illinois submittal.

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 and shall include the legal authority, regulations or contract

provisions necessary to implement and enforce the test frequency

requirement. The program shall be designed to provide convenient

service to motorists by ensuring short waiting times, short driving

distances and regular testing hours. The Illinois enhanced I/M law of

1995 provides the legal authority to implement and enforce biennial

test frequency for all subject vehicles. New vehicles are exempt from

testing for two years, requiring the vehicle to be initially tested in

the second calendar year after the vehicle model year. Based on the

performance standard modeling provided by the State, the enhanced I/M

program meets the performance standard accounting for biennial test

frequency. P.A. 88-533 also requires that the program be designed so

that covered vehicle owners reside within 12 miles of an official

inspection station. In addition, the law requires the program to be

designed in such a way that sufficient inspection capacity at the

station is so that the usual wait before the start of an inspection

does not exceed twenty minutes. The test frequency and convenience

section is approvable and EPA is proposing to approve.

Vehicle Coverage 40 CFR 51.356

The performance standard for enhanced I/M programs assumes coverage

of all 1968 and newer model year light duty vehicles and light duty

trucks up to 8,500 pounds gross vehicle

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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. Vehicles registered or required to be

registered within the I/M program area boundaries, and fleets primarily

operated within the I/M program area boundaries belonging to the

covered model years and vehicle classes comprise the subject vehicles.

Fleets may be officially inspected outside the normal 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 part 51.353(a).

The Federal I/M regulation requires that the SIP shall include the

legal authority or rule necessary to implement and enforce the vehicle

coverage requirement, a detailed description of the number and types of

vehicles to be covered by the program and a plan for how those vehicles

are to be identified, including vehicles that are routinely operated in

the area but may not be registered in the area, and a description of

any special exemptions, including the percentage and number of vehicles

to be impacted by the exemption.

The Illinois Vehicle Inspection Law of 1995 requires coverage of

all 1968 and newer vehicles registered or required to be registered in

the I/M program area, except those vehicles which run on diesel or

exclusively by electricity. The modeling demonstration submitted with

the SIP narrows the vehicle coverage to LDGV, LDGT1, and LDGT2. The

Illinois legislation provides the legal authority to implement and

enforce the vehicle coverage. This level of coverage is approvable

because it provides the necessary emission reductions. The modeling

demonstration does contain estimates of the number of registered

vehicles in the area. However, the State's June 29, 1995, SIP submittal

does not adequately address fleet testing requirements. Existing

legislation allows for the self testing of fleets, but the submittal

fails to address the specific requirements involved in fleet testing.

The State also did not provide a description of the impact vehicle

exemptions will have on the subject fleet. The modeling demonstration

submitted by the State does not account for these exemptions in the

emission reduction analysis. The State must describe the extent of the

exemption's impact, in accordance with 40 CFR part 51.356, in order for

EPA to fully approve this section of the State submittal. EPA proposes

to conditionally approve this section based on the April 22, 1996,

letter to EPA committing to address the requirements of 40 CFR 51.356

with regard to fleets, within one year of the final conditional

approval.

Test Procedures and Standards 40 CFR 51.357

Written test procedures and pass/fail standards are required to be

established and followed for each model year and vehicle type included

in the program. Federal test procedures and standards are found in 40

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

Procedures, Equipment Standards, Quality Control Requirements, and

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

1994. A.P. 88-533 provides the State the authority to establish test

procedures according to the needs of the program. The Illinois

submittal also includes I/M regulations (R94-19 and R94-20) adopted on

December 1, 1994, by the Illinois Pollution Control Board (Board) which

include emissions standards based upon EPA's preferred IM240 loaded

mode exhaust emissions standard. IEPA has asked I/M contract bidders to

address in detail the requirements of this section in its Request-For-

Proposal (RFP). EPA proposes to conditionally approve this section of

the SIP based on the State's commitment to submit to EPA as

supplemental information in support of the SIP its final signed I/M

contract addressing the requirements of 40 CFR part 51.357 within one

year of EPA's final conditional approval.

Test Equipment 40 CFR 51.358

The Federal regulation requires computerized test systems for

performing any measurement on subject vehicles. The Federal I/M

regulations 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.

A.P. 88-533 provides the general authority for the State to

establish the designation of official test equipment and testing

procedures. The Illinois submittal also includes I/M regulations (R94-

19 and R94-20) which include emissions standards based upon EPA's

preferred IM240 loaded mode exhaust emissions standard. IEPA has

addressed the requirements of this section in its RFP released February

29, 1996. EPA proposes to conditionally approve this section of the SIP

based on the State's April 22, 1996, commitment to submit to EPA as

supplemental information in support of the SIP its final signed

contract addressing the requirements of 40 CFR part 51.358 within one

year of EPA's final conditional approval.

Quality Control 40 CFR 51.359

Quality control measures shall ensure that emission measurement

equipment are calibrated and maintained properly, and that inspection,

calibration records and control charts are accurately created, recorded

and maintained. The Illinois submittal contains general legal authority

in A.P. 88-533 which requires IEPA to establish an enhanced program

containing procedures to assure the correct operation, maintenance and

calibration of test equipment, and also procedures for certifying test

results and for reporting and maintaining relevant data and records.

Illinois' RFP requires bidders as part of their Technical proposal to

submit a Quality Assurance Plan which addresses the requirements of

this section. EPA proposes to conditionally approve this section of the

SIP based on the State's April 22, 1996 commitment to submit to EPA as

supplemental information in support of the SIP its final signed

contract and the contractor's Quality Assurance Plan addressing the

quality control requirements of 40 CFR part 51.359 within one year of

EPA's final conditional approval.

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, as

long as prescribed criteria are met. 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 of 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 failure. Repairs for

1980 and newer model year vehicles must be performed by a recognized

repair technician. The Federal regulation

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allows for compliance via a diagnostic inspection after failing a

retest on emissions and requires quality control of waiver issuance.

The SIP must set a maximum waiver rate and must describe corrective

action that must be taken if the waiver rate exceeds that committed to

in the SIP.

The Illinois SIP submittal contains the necessary authority in A.P.

88-533 to issue waivers, set and adjust cost limits, and administer and

enforce the waiver system. The Illinois law requires that IEPA certify

whether a vehicle that has failed a vehicle emission retest qualifies

for a waiver of the emission inspection standards if the following

criteria are met: The vehicle has received all repairs and adjustments

for which it is eligible under any emission performance warranty

provided under section 207 of the Act; IEPA determines by normal

inspection procedures that the vehicle's emission control devices are

present and appear to be properly connected and operating; consistent

with 40 CFR 51.360 for vehicles required to be tested under the

Illinois law, a minimum expenditure of $450 in emission-related repairs

exclusive of tampering-related repairs have been made; repairs for

vehicles of model year 1981 and later are conducted by a recognized

repair technician; evidence of repair is presented consisting of either

signed and dated receipts identifying the vehicle and describing the

work performed and amount charged for eligible emission-related

repairs, or an affidavit executed by the person performing the eligible

emission related repairs; and that the repairs have resulted in an

improvement in vehicle emissions as determined by comparison of initial

and final retest results.

The State of Illinois has chosen not to allow compliance via a

complete documented physical and functional diagnosis and inspection

which shows that no additional emission-related repairs are needed. The

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

for 1981 and later vehicles. Illinois used MOBILE5a and assumed a

maximum waiver rate of 3 percent for 1980 and older model year vehicles

and 3 percent for 1981 and newer vehicles. In the event the actual

waiver rate exceeds the planned maximum used for estimating the

emission reduction benefit, the State will need to remodel to assess

the emission reduction benefits based on the actual waiver rate. This

section is approvable and EPA is proposing to approve.

Motorist Compliance Enforcement 40 CFR 51.361

The Federal regulations require the use of registration denial to

ensure compliance with the requirements of the I/M program unless an

exception for use of an alternative is approved. Registration denial

enforcement consists of rejecting an application for initial

registration or registration for a used vehicle unless the vehicle has

complied with the I/M requirements prior to the granting of the

application. The SIP shall provide information concerning the

enforcement process, legal authority to implement and enforce the

program, a commitment to a compliance rate to be used for modeling

purposes and to be maintained in practice. The Illinois SIP contains an

alternative compliance system to that of registration denial. The

Illinois compliance approach uses computer matching of vehicle

registration records and inspection records to identify violations. The

Illinois Secretary of State (SOS) is required under A.P. 88-533 to

suspend either the driving privileges or the vehicle registration, or

both, of any vehicle owner who has not complied with the requirements

of A.P. 88-533. A suspension under this requirement would not be

terminated until proof of compliance has been submitted to the SOS. In

the I/M SIP, Illinois commits to the level of motorist enforcement

necessary to ensure a compliance rate of no less than 96 percent among

subject vehicles in the program area. If it is determined as part of

the required program evaluation that the I/M program is not meeting the

compliance rate, Illinois will need to investigate the problem and

institute changes to improve the compliance rates. EPA proposes to

approve this section of the Illinois SIP.

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 legal authority for the implementation of an I/M program is found

in A.P. 88-53. This statute provides the authority necessary to develop

and implement the enforcement program oversight element of the I/M

program. EPA proposes to conditionally approve this portion of the

State's submittal based on the April 22, 1996, letter to EPA committing

to addressing the requirements of 40 CFR part 51.362 within one year of

the conditional approval.

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 Illinois submittal contains only a

general provision under P.A. 88-533 which requires that the State I/M

program provide for procedures to assure the correct operation,

maintenance, and calibration of test equipment. Illinois' RFP requires

bidders as part of their Technical proposal to submit a Quality

Assurance Plan which addresses the requirements of this section. EPA

proposes to conditionally approve this section of the SIP based on the

State's April 22, 1996 commitment to submit to EPA as supplemental

information in support of the SIP its final signed contract and the

contractor's Quality Assurance Plan addressing the quality assurance

requirements of 40 CFR part 51.363 within one year of EPA's final

conditional approval.

Enforcement Against Contractors, Stations and Inspectors 40 CFR 51.364

Enforcement against licensed stations or contractors and inspectors

shall include swift, sure, 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, licence 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. The SIP shall describe the administrative and

judicial procedures and responsibilities relevant to the enforcement

process. The Illinois

[[Page 21410]]

submittal includes the legal authority to establish and impose

penalties against station, contractors, and inspectors. In addition,

the RFP contains detailed provisions addressing the requirements of

this section, including specific monetary penalties established for

violation of program rules and procedures. The provisions found in the

RFP will be enforceable once a final I/M contract is developed and

signed. EPA proposes to conditionally approve this section of the SIP

based on the State's April 22, 1996 commitment to submit to EPA as

supplemental information in support of the SIP its final signed

contract and any necessary administrative rules addressing the

requirements of 40 CFR part 51.364 within one year of EPA's final

conditional approval.

Data Collection 40 CFR 51.365

In order to manage, evaluate and enforce the program requirements

an effective I/M program requires accurate data collection. 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 part 51.359. The Illinois submittal

contains a general provision under P.A. 88-533 which requires that the

State I/M program provide for procedures for certifying test results

and for reporting and maintaining relevant data and records. In

addition, the RFP requires that the contractor submit to IEPA, on a

monthly basis, a file containing detailed data for each vehicle test

transaction conducted. The data collection requirements specified in

the RFP meet those specified in 40 CFR part 51.365. Once the final I/M

contract is submitted to EPA as supplemental information in support of

the SIP this section of the I/M SIP can be fully approved. At this

time, EPA proposes to conditionally approve this section of the SIP

based on the State's April 22, 1996 commitment to submit to EPA as

supplemental information in support of the SIP its final signed

contract addressing the data collection requirements of 40 CFR part

51.365 within one year of EPA's final conditional approval.

Data Analysis and Reporting 40 CFR 51.366

Data analysis and reporting are required in order to monitor and

evaluate the program by the State and EPA. The Federal I/M rule

requires annual reports to be submitted to EPA that 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 of each year and

shall provide statistics for the period of January to December of the

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

addresses changes in the program design, regulations, legal authority,

program procedures, any weaknesses in the program found during the

previous two year period and how these problems will be or were

corrected. The Illinois RFP contains the necessary provisions

addressing the requirements of this section. However, in order to

receive full approval, the State must submit its final, signed contract

as supplemental information in support of the SIP addressing the

requirements of 40 CFR part 51.366 to EPA within one year of EPA's

final conditional approval. EPA proposes to conditionally approve this

section of the SIP based on the State's April 22, 1996 commitment to

submit to EPA as supplemental information in support of the SIP its

final signed contract addressing the data analysis and reporting

requirements of 40 CFR part 51.366 within the time frame specified

above.

Inspector Training and Licensing or Certification 40 CFR 51.367

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

trained and licensed or certified to conduct inspections. The Illinois

P.A. 88-533 requires all inspectors to be certified by IEPA after

successfully completing a course of training and successfully passing a

written test. The RFP requires Bidders to include in their Technical

Proposal a detailed Management Plan for the implementation and

operation of the contracted elements of the Illinois enhanced I/M

program. The Management Plan must include as part of its elements, a

description of the Personnel Training and Certification Program as

described in the RFP. The RFP requires the Contractor to establish and

operate an on-going program to train and certify contractor and IEPA

personnel. EPA proposes to conditionally approve this section of the

SIP based on the State's April 22, 1996 commitment to submit to EPA as

supplemental information in support of the SIP its final signed

contract and the contractor's Management Plan addressing the

requirements of 40 CFR part 51.367 within one year of EPA's final

conditional approval.

Public Information and Consumer Protection 40 CFR 51.368

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

information and consumer protection programs. The submittal needs to

include a public information program, which educates the public on I/M,

State, and Federal regulations, air quality, the contribution of motor

vehicles to the air pollution problem, and other items as describe in

the Federal rule. A consumer protection program, which includes

provisions for a challenge mechanism, protection of whistle blowers and

assistance to motorists in obtaining warranty covered repair, will also

need to be addressed. The Illinois submittal contains the legal

authority establishing grievance procedures for consumers to use, but

it does not address the rest of the requirements stated above for this

section. In order to receive full approval, the State has committed in

IEPA's April 22, 1996, letter to submit the remaining provisions of the

public information program within one year from EPA's final conditional

approval. EPA proposes to conditionally approve this portion of the SIP

based on the State's commitment to address the requirements of this

section within the time frame stated above.

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 Illinois submittal does not

contain any provisions addressing the requirements of this section,

however the State has submitted a commitment to address the

requirements of this section, including the submittal of a description

of available technician training resources, within one year of EPA's

final conditional approval. EPA is proposing to conditionally approve

this portion of the State submittal based on the State's commitment to

submit the necessary documentation to EPA in the time frame stated

above.

Compliance With Recall Notices 40 CFR 51.370

States are required to establish a method to ensure that vehicles

subject to enhanced I/M and that are included in either a voluntary

emissions recall as defined at 40 CFR 85.1902(d), or in a remedial plan

determination made

[[Page 21411]]

pursuant to section 207(c ) of the Act, receive the required repairs

prior to completing the emission test or renewing the vehicle

registration. The Illinois P.A. 88-533 provides the legal authority to

require owners to comply with emission related recalls before

completing the emission test. The Illinois RFP requires that the

contractor provide and maintain as part of the data handling system a

means to identify vehicles with unresolved emissions recalls based upon

the data provided by EPA. At a minimum, the Contractor and IEPA will

have the capability to store, retrieve, and update recall data that

consists of the VIN, the numbers of the recall campaign, and the date

that the repairs were performed. The system is to be capable of

interactively updating vehicle and/or recall database records based

upon information supplied by vehicle owners indicating that required

repairs have been made. The system will also be capable of updating

appropriate records based upon updated data provided by EPA. EPA

proposes to approve this section of the SIP based on the State's April

22, 1996 commitment to submit to EPA as supplemental information in

support of the SIP its final signed contract addressing the annual

reporting requirements of 40 CFR part 51.370 within one year of EPA's

final conditional approval.

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 percent 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. The Illinois P.A. 88-533

requires on-road testing through the use of remote sensing devices. The

SIP submittal requires the use of RSD to test at least 0.5 percent of

the subject fleet per year in the I/M program area. The RFP requires

that the Contractor develop and maintain written on-road inspection

procedures to be approved by IEPA. In addition, the Contractor is to

provide and maintain as part of the system on-road testing information

containing vehicle and test results obtained from the on-road testing

program. The Contractor will be responsible for evaluating all on-road

emission data, including linking emissions data with vehicle database

records. EPA proposes to conditionally approve this section of the SIP

based on the State's April 22, 1996 commitment to submit to EPA as

supplemental information in support of the SIP its final signed

contract addressing the on-road testing specifications of 40 CFR part

51.371 within one year of EPA's final conditional approval.

Proposed Action

EPA is proposing to approve portions and conditionally approve

other portions of this revision to the Illinois SIP for an enhanced I/M

program, as cited above. If Illinois fails to timely submit the

materials discussed above within one year of EPA's final conditional

approval, the final conditional approval will automatically convert to

a disapproval.

I. Basis for Conditional Approval

The EPA believes conditional approval is appropriate in this case

because the State has the necessary legal authority for an enhanced I/M

program and needs only to award the I/M contract and amend current

administrative rules to address a number of enhanced I/M program

requirements. As a condition of EPA's proposed conditional approval,

the State must submit a final signed I/M contract as supplemental

information in support of the SIP and any additional material necessary

to address the deficiencies identified in this document to EPA no later

than one year after EPA's final conditional approval. On April 22,

1996, the IEPA submitted a letter committing to this. In the letter

IEPA commits to provide EPA the signed enhanced I/M contract, in

addition to provide appropriate analyses, calculations, and rules as

discussed in a conference call on April 9, 1996 between IEPA and EPA.

The telephone conversation record of this call will be included as part

of the Illinois SIP.

II. Statement of Approvability

Under the authority of the Governor of Illinois, the IEPA submitted

a SIP revision to satisfy the requirements of the I/M regulation to the

EPA on June 29, 1995. EPA found the Illinois SIP complete in a letter

dated June 30, 1995. The EPA has reviewed this submittal and is

proposing to approve portions and proposing to conditionally approve

other portions of it pursuant to Section 110(k) of the Act, on the

condition that the portions of the I/M program noted above are adopted

and/or submitted on the schedules noted in this proposed rulemaking. If

EPA takes final conditional approval on the commitment, the State must

meet its commitment to submit the final I/M contract and all other

supporting documentation within one year of the conditional approval.

Once the EPA has conditionally approved this committal, if the State

fails to submit any necessary rules and/or documentation to EPA, final

conditional approval will automatically convert to a disapproval. EPA

will notify the State by letter to this effect. Once the SIP has been

disapproved, these commitments will no longer be a part of the approved

nonattainment area SIPs. The EPA subsequently will publish a notice to

this effect in the notice section of the Federal Register indicating

that the commitment or commitments have been disapproved and removed

from the SIP. If the State adopts and submits the final rule amendments

and the final I/M contract, as supplemental information in support of

the SIP, to EPA within the applicable time frame, the conditionally

approved commitments will remain part of the SIP until the EPA takes

final action approving or disapproving the new submittal. If the EPA

approves the subsequent submittal, those newly approved rules and/or

documentation will become part of the SIP.

If after considering the comments on the proposal, the EPA issues a

final disapproval or if the conditional approval portions are converted

to a disapproval, the sanctions clock under section 179(a) will begin.

If the State does not submit and EPA does not approve the rule on which

any disapproval is based within 18 months of the disapproval, the EPA

must impose one of the sanctions under section 179(b)-highway funding

restrictions or the offset sanction. In addition, any final disapproval

would start the 24 month clock for the imposition of a section 110(c)

Federal Implementation Plan. Finally, under section 110(m) the EPA has

discretionary authority to impose sanctions at any time after a final

disapproval.

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 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 110 and subchapter I, Part D of the CAA do not

[[Page 21412]]

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 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 action. The CAA 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)

and 7410(k)(3).

Section 202 of the Unfunded Mandates Reform Act of 1995 (``Unfunded

Mandates Act'') (signed into law on March 22, 1995) requires that the

EPA prepare a budgetary impact statement before promulgating a rule

that includes a Federal mandate that may result in expenditure by

State, local, and tribal governments, in aggregate, or by the private

sector, of $100 million or more in any one year. Section 203 requires

the EPA to establish a plan for obtaining input from and informing,

educating, and advising any small governments that may be significantly

or uniquely affected by the rule.

Under section 205 of the Unfunded Mandates Act, the EPA must

identify and consider a reasonable number of regulatory alternatives

before promulgating a rule for which a budgetary impact statement must

be prepared. The EPA must select from those alternatives the least

costly, most cost-effective, or least burdensome alternative that

achieves the objectives of the rule, unless the EPA explains why this

alternative is not selected or the selection of this alternative is

inconsistent with law.

Because this proposed rule is estimated to result in the

expenditure by State, local, and tribal governments or the private

sector of less then $100 million in any one year, the EPA has not

prepared a budgetary impact statement or specifically addressed the

selection of the least costly, most cost-effective, or least burdensome

alternative. Because small governments will not be significantly or

uniquely affected by this rule, the EPA is not required to develop a

plan with regard to small governments. It imposes no additional

requirements. The Office of Management and Budget has exempted this

action rule from Executive Order 12866 review.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,

Nitrogen Oxide, Ozone, Volatile Organic Compound.

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

Dated: April 29, 1996.

David A. Ullrich,

Acting Regional Administrator.

[FR Doc. 96-11758 Filed 5-9-96; 8:45 am]

BILLING CODE 6560-50-P