Approval and Promulgation of Air Quality Implementation Plans; New Jersey: Enhanced Motor Vehicle Inspection and Maintenance Program

Federal RegisterOct 31, 1996

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Docket 153, NJ23-1; FRL-5643-3]

Approval and Promulgation of Air Quality Implementation Plans;

New Jersey: Enhanced Motor Vehicle Inspection and Maintenance Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed conditional interim rule.

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SUMMARY: EPA is proposing a conditional interim approval of a State

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

Jersey. This revision establishes and requires the implementation of a

statewide enhanced inspection and maintenance (I/M) program. The

intended effect of this action is to propose conditional interim

approval of an I/M program proposed by the State, based upon the

State's good faith estimate, which asserts that the State's network

design provides emission reduction credits that

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are appropriate and the revision is otherwise in compliance with the

Clean Air Act (CAA). This action is being taken under section 348 of

the National Highway System Designation Act of 1995 (NHSDA) and section

110 of the CAA. EPA is proposing a conditional interim approval because

the State's SIP revision is deficient with respect to the following

requirements: test procedures, standards, and equipment, and

performance standard modeling. If the State commits within 30 days of

the publication of this document to correct the major deficiencies by

dates certain as described below, and corrects the deficiencies by

those dates, then this interim approval shall expire pursuant to the

NHSDA and section 110 of the CAA on the earlier of 18 months from final

interim approval, or on the date EPA takes final action. In the event

that the State fails to submit a commitment to correct all of the major

deficiencies within 30 days after the publication of this document,

then EPA is proposing in the alternative to disapprove the SIP

revision. If the conditional interim approval is converted to a

disapproval, EPA will notify the State by letter that the conditions

have not been met and that the conditional interim approval has been

converted to a disapproval.

DATES: Comments must be received on or before December 2, 1996.

ADDRESSES: Written comments on this proposed action may be addressed

to: Regional Administrator, Attention: Air Programs Branch, Division of

Environmental Planning and Protection, Environmental Protection Agency,

Region 2, 290 Broadway, 25th Floor, New York, New York 10007-1866.

Copies of the documents relevant to this action are available for

public inspection during normal business hours at the address shown

above.

Electronic Availability: This document and EPA's technical support

document are available at Region 2's site on the Internet's World Wide

Web at: http://www.epa.gov/region02/air/sip/.

FOR FURTHER INFORMATION CONTACT: Rudolph K. Kapichak, Mobile Source

Team Leader, Air Programs Branch, Environmental Protection Agency,

Region 2, 25th Floor, 290 Broadway, New York, New York 10007-1866,

(212) 637-4249.

SUPPLEMENTARY INFORMATION:

I. Background

A. Impact of the National Highway System Designation Act on the Design

and Implementation of Enhanced Inspection & Maintenance Programs under

the Clean Air Act

The National Highway System Designation Act of 1995 (NHSDA)

establishes two key changes to the enhanced I/M Rule requirements

previously developed by EPA. Under the NHSDA, EPA cannot require states

to adopt or implement centralized, test-only IM240 enhanced vehicle

inspection and maintenance programs as a means of compliance with

section 182, 184 or 187 of the CAA. Also under the NHSDA, EPA cannot

disapprove a state I/M SIP revision, nor apply an automatic discount to

a state I/M SIP revision under section 182, 184 or 187 of the CAA,

because the I/M program in such plan revision is decentralized, or a

test-and-repair program. Accordingly, the so-called ``50 percent credit

discount'' that was established by the EPA's I/M Program Requirements

Final Rule, (published November 5, 1992, and herein referred to as the

I/M Rule or the federal I/M regulation) has been effectively replaced

with a presumptive equivalency criterion, which places the emission

reduction credits for decentralized networks on par with credit

assumptions for centralized networks, based upon a state's good faith

estimate of reductions as provided by the NHSDA and explained below in

this section.

EPA's I/M Rule established many other criteria unrelated to network

design or test type for states to use in designing enhanced I/M

programs. All other elements of the I/M Rule, and the statutory

requirements established in the CAA continue to be required of those

states submitting I/M SIP revisions under the NHSDA. Therefore, the

NHSDA specifically requires that these I/M SIP submittals must

otherwise comply in all respects with the I/M Rule and the CAA.

The NHSDA also requires states to swiftly develop, submit, and

begin implementation of these enhanced I/M programs, since the

anticipated start-up dates developed under the CAA and EPA's rules have

already been delayed. In requiring states to submit I/M programs within

120 days of the NHSDA passage, and in allowing these states to submit

proposed regulations within this time frame for these I/M programs

(which can be finalized and submitted to EPA during the interim

period), it is clear that Congress intended for states to begin testing

vehicles as soon as practicable, now that the decentralized credit

issue has been clarified and directly addressed by the NHSDA.

Submission criteria described under the NHSDA allows for a state to

submit proposed regulations for this interim program, provided that the

state has all of the statutory authority necessary to carry out the

program. Also, in proposing the interim emission reduction credits for

this program, states are required to make good faith estimates

regarding the performance of their enhanced I/M programs. Since these

estimates are expected to be difficult to quantify, the state need only

provide that the proposed credits claimed for the submission have a

basis in fact. A good faith estimate of a state's program may be based

on any of the following: the performance of any previous I/M program,

the results of remote sensing or other roadside testing techniques,

fleet and vehicle miles traveled (VMT) profiles; demographic studies,

or other evidence which has relevance to the effectiveness or emissions

reducing capabilities of an I/M program.

This action is being taken under the authority of both the NHSDA

and section 110 of the CAA. Section 348 of the NHSDA expressly directs

EPA to issue this interim approval for a period of 18 months, at which

time the interim program will be evaluated in concert with the

appropriate state agencies and EPA. The Conference Report on section

348 of the NHSDA states that it is expected that the estimated emission

reduction credits claimed by the state in its I/M SIP submittal, and

the actual emissions reductions demonstrated through the program data

may not match exactly. Therefore, the Conference Report suggests that

EPA use the program data to appropriately adjust the proposed emission

reduction credits to reflect the emissions actually determined by the

state during the program evaluation period.

Furthermore, EPA believes that in taking action under section 110

of the CAA, it is appropriate to grant a conditional interim approval

to this submittal since there are some deficiencies with the submittal

with respect to CAA statutory and regulatory requirements (identified

herein) that EPA believes can be corrected by the state during the

interim period.

B. Interim Approvals under the NHSDA

The NHSDA directs EPA to grant interim approval for a period of 18

months to approvable I/M submittals under this Act. This Act also

directs

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EPA and the states to review the interim program results at the end of

18 months, and to make a determination as to the effectiveness of the

interim program. Following this demonstration, EPA will adjust any

credit claims made by the state in its good faith effort to reflect the

emissions reductions actually measured by the state during the program

evaluation period. The NHSDA is clear that the interim approval shall

last for only 18 months, and that the program evaluation is due to EPA

at the end of that period. Therefore, EPA believes Congress intended

for these programs to begin operating as soon as possible, which EPA

believes should be at the latest, November 15, 1997, so that about six

months of operational program data can be collected to evaluate the

interim program. EPA further believes that in setting such a strict

timetable for program evaluations under the NHSDA that Congress

recognized and attempted to mitigate any further delay with the start-

up of this program. For the purposes of this program, ``start-up'' is

defined as a fully operational program which has begun regular,

mandatory inspections and repairs, using the final test strategy and

covering each of a state's required enhanced I/M areas. EPA proposes

that if the state fails to start its program on this schedule, the

conditional interim approval granted under the provisions of the NHSDA

will convert to a disapproval after a finding letter is sent to the

state.

The program evaluation to be used by the state during the 18-month

interim period must be acceptable to EPA. EPA anticipates that such a

program evaluation process will be developed by the Environmental

Council of States (ECOS) group that has convened and that was organized

for this purpose. EPA further anticipates that in addition to the

interim, short term evaluation, the state will conduct a long term,

ongoing evaluation of the I/M program as required by the I/M Rule in

CFR 51.353 and 51.366.

C. Process for Final Approval of this Program under the CAA

As per the NHSDA requirements, this interim rulemaking will expire

within 18 months of the date of publication of the conditional interim

approval, or sooner if EPA takes action to approve the final SIP

submittal prior to that date. A final approval of the state's final I/M

SIP revision (which will include the state's program evaluation and

final adopted state regulations) is still necessary under section 110

and under section 182, 184 or 187 of the CAA. After EPA reviews the

state's submitted program evaluation, final rulemaking on the state's

I/M SIP revision will occur.

II. EPA's Analysis of New Jersey's Submittal

On March 27, 1996, the New Jersey Department of Environmental

Protection (DEP) submitted a revision to its State Implementation Plan

(SIP) for an enhanced I/M program to qualify under the NHSDA. The

revision consists of enabling legislation that will allow the State to

implement the I/M program, proposed regulations, a description of the

I/M program, and a good faith estimate that includes the State's basis

in fact for emission reduction claims of the program. The State's

credit assumptions were based upon the removal of the 50 percent credit

discount for all portions of the program that are based on a test-and-

repair network, and the application of the State's own estimate of the

effectiveness of its decentralized test-and-repair program.

A. Analysis of the NHSDA Submittal Criteria

Transmittal Letter

On March 27, 1996, New Jersey submitted an enhanced I/M SIP

revision to EPA, requesting action under the NHSDA and the CAA. The

official submittal was made by Robert C. Shinn, Jr., Commissioner of

the Department of Environmental Protection, the appropriate State

official, and was addressed to Regional Administrator Jeanne M. Fox,

the appropriate EPA official in the Region.

Enabling Legislation

New Jersey has legislation under the Federal Clean Air Mandate

Compliance Act, Public Law 1995, Chapter 112, enabling the

implementation of a hybrid, biennial I/M program.

Proposed Regulations

On May 6, 1996, New Jersey's proposed regulations appeared in the

State Register in accordance with 40 CFR Part 51, establishing an

enhanced I/M program. These regulations, which had been signed by DEP

Commissioner Shinn on March 26, 1996, take advantage of additional

flexibility granted by Congress in the NHSDA. They call for the

continuation of a hybrid inspection program. The primary changes to the

existing program are as follows:

the program will require biennial inspection rather than

annual inspection,

a one-mode Acceleration Simulation Mode test (using a

dynamometer) will replace the idle test for 1981 and newer vehicles,

waivers will now be granted for 1981 and newer vehicles

meeting the repair expenditure requirements, and

motorist enforcement will be through revocation of the

vehicle registration rather than a windshield sticker.

The State anticipates fully adopting regulations by early November

1996.

Program Description

New Jersey's hybrid I/M program will be operated on a statewide

basis and is scheduled to begin operating 12 months after EPA's

conditional interim approval of the I/M SIP revision submittal. During

the 12 months preceding program start-up, New Jersey will operate a

pilot version of the program on a voluntary basis. This will include

approximately six test-only lanes (about 7 percent of existing lanes)

and will be open to participation by test-and-repair facilities. Since

this program will be voluntary, the State will solicit participation by

offering a two-year certificate of compliance (sticker) to those

motorists who choose and pass the new test. New Jersey hopes to use

data from this demonstration program to evaluate the potential

effectiveness of the full version of the program.

As required by NHSDA, New Jersey included in its submittal a

description of elements that provide the basis for the test-and-repair

program effectiveness claim.

Emission Reduction Claim and Basis for the Claim

New Jersey claims an 80 percent effectiveness from the test-and-

repair portion of the program based on the following elements:

increased auditing of test-and-repair facilities, specifications for

the new emissions analyzer equipment, and implementation of the repair

technician training and certification program.

B. Analysis of the EPA I/M Regulation and CAA Requirements

As previously stated, the NHSDA left those elements of the I/M Rule

that do not pertain to network design or test type intact and

specifically required compliance with all other provisions of the Act.

Based upon EPA's review of New Jersey's submittal, EPA believes the

State has not complied with all aspects of the NHSDA, the CAA and the

I/M Rule. Therefore, EPA proposes to grant the I/M SIP revision

conditional interim approval. Before EPA can continue with the interim

rulemaking process, the State must make a commitment within 30 days of

October

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31, 1996 to correct the major deficiencies identified within this

document by dates certain as described in this document. New Jersey's

major deficiencies are described below.

Enhanced I/M Performance Standard Modeling

In order to determine whether the state I/M program meets the

enhanced I/M performance standard, and is therefore approvable, the

state must submit a modeling demonstration that the program achieves

the required emission reductions by the relevant dates. New Jersey did

not include all modeling assumptions in its submittal. Given that New

Jersey plans to use a one-mode Acceleration Simulation Mode (ASM) test

procedure, it is possible that final modeling assumptions would not be

available for some time since an acceptable test procedure and emission

reduction credits for this test have yet to be established. EPA and

states interested in using ASM have been actively pursuing acceptable

test procedures using one and two ASM modes.

Test Procedures, Standards and Equipment

Written test procedures and pass/fail standards and equipment

specifications 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,

dated April 1994 and ``Acceleration Simulation Mode Test Procedures,

Emission Standards, Quality Control Requirements, and Equipment

Specifications'', EPA-AA-RSPD-IM-96-2, dated July 1996.

New Jersey's I/M program will be using a one-mode Acceleration

Simulation Mode (ASM) emissions test for most of its fleet. New Jersey

has been working with other states and the equipment manufacturers, in

coordination with EPA, to develop their own procedures, specifications

and standards for one- and two-mode ASM testing. It is anticipated that

the states' test procedures, specifications and standards will be

released shortly. The State must finalize its test procedures,

standards and equipment specifications well before testing begins.

The State must commit within 30 days of the publication date of

this proposal to correct these major deficiencies by dates certain or

this approval will convert to a disapproval under CAA section

110(k)(4). EPA proposes that the deficiency with regard to the enhanced

performance standard modeling must be corrected within 12 months of

EPA's conditional interim approval. Because the finalization of the

test procedures, standards and equipment specifications is critical to

ensuring that the program begins testing by the required date EPA

proposes that this deficiency must be corrected no later than January

31, 1997. It is essential that the State submit final test procedures,

standards and equipment specifications no later than this date because

a significant lead time is necessary in order for the program to begin

testing as planned.

EPA has also identified certain minor (de minimis) deficiencies in

the I/M SIP revision, which include:

(1) Adequate tools and resources,

(2) Vehicle coverage,

(3) Quality control,

(4) Motorist compliance enforcement,

(5) Quality assurance,

(6) Data collection,

(7) Data analysis and reporting, and

(8) Public awareness and consumer protection.

EPA has determined that allowing the State a longer time to correct

these minor deficiencies will have a de minimis impact on the State's

ability to meet clean air goals. Therefore, the State need not commit

to correct these minor deficiencies in the short term, and EPA will not

impose conditions on the interim approval with respect to these minor

deficiencies. However, the State must correct these minor deficiencies

during the 18-month term of the interim approval, as part of the fully

adopted rules that New Jersey will submit to support final approval of

its I/M SIP revision. So long as the State corrects these minor

deficiencies prior to final action on the State's I/M SIP revision, EPA

concludes that failure to correct the deficiencies in the short term is

de minimis and will not adversely affect EPA's ability to give interim

approval to the proposed I/M program.

Applicability--40 CFR 51.350

Sections 182(c)(3) and 184(b)(1)(A) of the CAA and 40 CFR Part

51.350(a) require all states with areas classified as serious or worse

ozone nonattainment areas and all metropolitan statistical areas (MSAs)

with 1980 populations greater than 100,000 in the Ozone Transport

Region to implement an enhanced I/M program. The New Jersey portions of

the New York-New Jersey-Long Island and the Philadelphia-Wilmington-

Trenton consolidated metropolitan statistical areas are both classified

as severe ozone nonattainment areas and are required to implement an

enhanced I/M program as per section 182(c)(3) of the CAA and 40 CFR

51.350(2). The Atlantic City MSA and the Allentown-Bethlehem-Easton

MSA, which includes one county in New Jersey, have 1980 populations

greater than 100,000 and are required to implement an enhanced I/M

program as per section 184(b)(1)(A) of the CAA and 40 CFR Part

51.350(a). In addition, section 187(a)(6) of the CAA requires moderate

carbon monoxide (CO) nonattainment areas with design value carbon

monoxide concentrations greater than 12.7 ppm to implement an enhanced

I/M program. Bergen, Essex, Hudson, Union, and part of Passaic Counties

comprise such an area in northern New Jersey.

New Jersey's I/M legislation provides the legal authority to

establish a statewide program. The State's I/M SIP revision submittal

identifies program boundaries as ``statewide'', therefore, EPA is

proposing to find that the geographic applicability requirements are

satisfied.

The federal I/M regulation requires that the state program shall

not sunset until it is no longer necessary. EPA interprets the federal

I/M regulation as stating that an I/M SIP that does not sunset prior to

the attainment deadline for each applicable area satisfies this

requirement. New Jersey's I/M SIP revision includes regulations from

both the DEP and the Department of Transportation (DOT) because the two

departments share responsibilities for the program and have

complementary legal authorities for the implementation of different

aspects of the program. The DEP I/M regulations do not include a sunset

date. However, the DOT regulations are statutorily bound to expire

after five years. If the DOT regulations are not readopted after five

years, the State would be unable to operate the I/M program in which

case EPA would have reason to notify New Jersey of its failure to

implement the program. However, in the past and as a matter of

practice, DOT regulations are readopted prior to the expiration of the

rules they replace. In light of this past practice, EPA is confident

that this practice will continue. Therefore, EPA is not proposing to

condition New Jersey's interim approval because of its inability to

maintain the program as long as it is necessary to attain the

applicable standards. The State's SIP submittal meets the applicability

requirements of the federal I/M regulation for interim approvable.

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Enhanced I/M Performance Standard--40 CFR 51.351

The federal I/M regulation requires that an 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 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 New Jersey I/M SIP revision submittal, the most current

version was MOBILE5a__h. Areas shall meet the performance standard for

the pollutants which cause them to be subject to enhanced I/M

requirements. In the case of ozone nonattainment areas, the performance

standard must be met for both nitrogen oxides (NOX) and

hydrocarbons (HC) as evaluated for the year 2002. In the case of carbon

monoxide nonattainment areas, the performance standard must be met for

CO as evaluated in the year 2002. The New Jersey submittal must meet

the enhanced I/M performance standard for HC, NOX, and CO in all

applicable I/M areas in New Jersey.

New Jersey did not include all modeling assumptions in its

submittal. The State acknowledges that this is the case and commits to

submit them at a later date. Given that New Jersey plans to use a one-

mode Acceleration Simulation Mode (ASM) test procedure, it is possible

that final modeling assumptions would not be available for quite some

time since an acceptable test procedure or emission reduction credits

for this test have yet to be established. EPA and states interested in

using ASM have been actively pursuing acceptable test procedures using

one and two ASM modes.

New Jersey intends to phase in the pass/fail standards so that

those during the initial cycles will not be as stringent as those the

program will eventually use. If the State's final program analysis

indicates that use of these standards will not generate the needed

emission reductions in order for the State to meet the goals of its 15

percent plan, New Jersey may be required to use tighter standards, or

implement other control strategies.

EPA is proposing conditional interim approval of the State program

at this time consistent with the intent of the NHSDA that state I/M

programs be promptly approved and implemented. EPA proposes that this

approval be conditioned upon the requirement that the State conduct and

submit the necessary modeling and demonstration that the program will

meet the performance standard. The State must commit that the modeling

and demonstration be submitted by a date certain within 12 months from

conditional interim approval. If the State fails to submit this new

modeling within 12 months, EPA proposes that the conditional interim

approval will convert to a disapproval upon a letter from EPA

indicating that the State has failed to submit the modeling and

demonstration of compliance with the performance standard by the

required date.

If the State cannot meet the enhanced I/M performance standard, the

State may demonstrate compliance with the low enhanced performance

standard established in 40 CFR 51.351(g). That section provides that

states may select the low enhanced performance standard if they have an

approved SIP for reasonable further progress in 1996, commonly known as

either a 15 percent reduction SIP or the 15 percent plan. In fact EPA

approval of 15 percent plans has been delayed, and although EPA is

preparing to take action on 15 percent plans in the near future, it is

unlikely that EPA will have completed final action on most 15 percent

plans prior to the time EPA believes it would be appropriate to give

final or conditional interim approval to I/M programs under the NHSDA.

In addition, New Jersey is currently reassessing its 15 percent plan to

include the I/M program changes. This reassessment is to be based on

the program as it is being implemented in November 1999. If the results

indicate that the State will not achieve a 15 percent reduction in

emissions, New Jersey may choose to either make I/M program

improvements or add other provisions to its overall control plan.

In enacting the NHSDA, Congress evidenced an intent to have states

promptly implement I/M programs under interim approval status to gather

the data necessary to support state claims of appropriate credit for

alternative network design systems. By providing that such programs

must be submitted within a four month period, that EPA could approve I/

M programs on an interim basis based only upon proposed regulations,

and that such approvals would last only for an 18 month period, it is

clear that Congress anticipated both that these programs would start

quickly and that EPA would act quickly to give them interim approval.

Many states have designed a program to meet the low enhanced

performance standard, and have included that program in their 15

percent plan submitted to EPA for approval. Such states anticipated

that EPA would propose approval both of the I/M programs and the 15

percent plans on a similar schedule, and thus that the I/M programs

would qualify for approval under the low performance standard. EPA does

not believe it would be consistent with the intent of the NHSDA to

delay action on interim I/M approvals until the Agency has completed

action on the corresponding 15 percent plans. Although EPA acknowledges

that under its regulations final approval of a low enhanced I/M program

after the 18-month evaluation period would have to await approval of

the corresponding 15 percent plan, EPA believes that in light of the

NHSDA it can grant either final or conditional interim approval of such

I/M plans provided that the Agency has determined as an initial matter

that approval of the 15 percent plan is appropriate, and has issued a

proposed approval of that 15 percent plan.

The State plans to submit a revised 15 percent plan. It is possible

that New Jersey's proposed I/M program may fall short of the enhanced

I/M performance standard but exceed the low enhanced performance

standard. If this is the case and the emission reductions provided by

the I/M program allow the State to fulfill the requirements of its 15

percent plan, then EPA will review the 15 percent plan and propose

action on it shortly thereafter. Should EPA propose approval of the 15

percent plan, EPA will proceed to take conditional interim approval

action on the I/M plan. EPA proposes in the alternative that if the

Agency proposes instead to disapprove the 15 percent plan, EPA would

then disapprove the I/M plan as well because the State would no longer

be eligible to select the low enhanced performance standard under the

terms of 40 CFR 51.351(g).

Network Type and Program Evaluation--40 CFR 51.353

The federal I/M regulation requires that enhanced programs 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

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the CAA and the federal I/M regulation. The I/M SIP revision submittal

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, a description of the sampling

methodology, the data collection and analysis system, and the legal

authority enabling the evaluation program.

In order to determine whether the State I/M program meets the

enhanced I/M performance standard, and is therefore approvable, it must

submit modeling demonstrating that the program achieves the required

emission reductions by the relevant dates. Because of delayed program

start-up and program reconfiguration, the existing modeling used by the

State to demonstrate compliance with the performance standard is no

longer accurate, as it is based on start-up and phase-in of testing and

cut-points that do not reflect the current program configuration or

start dates that the State will actually implement. EPA believes, based

on the available modeling and its own extrapolation of expected

emission reductions from the program, that the State program will meet

the performance standard. The State must conduct new modeling using the

actual program configuration and start dates to verify that the

performance standard will in fact be met. For example, phase-in

cutpoints corresponding to the test-type and correct program start-up

dates should be included in the new modeling.

EPA is proposing conditional interim approval of the State's

program at this time consistent with the intent of the NHSDA that state

I/M programs be promptly approved and implemented. EPA proposes that

this approval be conditioned upon the requirement that the State commit

to conduct and submit the necessary new modeling and demonstration that

the program will meet the performance standard, by a date certain

within 12 months from conditional interim approval. If the State fails

to submit this new modeling within 12 months, EPA proposes that the

conditional interim approval will convert to a disapproval upon a

letter from EPA indicating that the State has failed to submit the

modeling and demonstration of compliance with the performance standard

by the required date.

In addition, the existing I/M Rule requires that the modeling

demonstrate that the state program has met the performance standard by

fixed evaluation dates. The first such date is January 1, 2000.

However, few state programs will be able to demonstrate compliance with

the performance standard by that date as a result of delays in program

start-up and phase in of testing requirements. EPA believes that based

on the provisions of the NHSDA, the evaluation dates in the current I/M

Rule have been superseded. Congress provided in the NHSDA for state

development of I/M programs that would start significantly later than

the start dates in the current I/M Rule. Consistent with Congressional

intent, such programs by definition will not achieve full compliance

with the performance standard by the beginning of 2000.

As explained above, EPA has concluded that the NHSDA superseded the

start date requirements of the I/M Rule, but that states should still

be required to start their programs as soon as possible, which EPA has

determined would be by November 15, 1997. Therefore, EPA believes that

pursuant to the NHSDA, the initial evaluation date should be January 1,

2002. This evaluation date will allow states to fully implement their

I/M programs and complete one cycle of testing at full cut points in

order to demonstrate compliance with the performance standard.

New Jersey proposes to implement a hybrid enhanced I/M program,

under which the State will maintain a system of centralized test-only

stations and decentralized test-and-repair stations. Under the program,

motorists will be able to choose where a vehicle is inspected. As part

of the State's Request for Proposal (RFP), New Jersey requested that

contractors submit alternative network designs that may be considered

to be equal to or better than the State's proposed I/M program.

New Jersey commits to perform transient emissions inspection on 0.1

percent of the vehicle population to comply with the program evaluation

aspects of the I/M Rule.

With the conditions described above, the State's submittal meets

the network type and program evaluation requirements of the federal I/M

regulation for interim approval.

Adequate Tools and Resources--40 CFR 51.354

The federal I/M regulation requires the state to demonstrate that

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

fee or a 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 it is 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 I/M SIP revision shall

include a detailed budget plan which describes the source of funds for

personnel, program administration, program enforcement, and purchase of

equipment. The I/M SIP revision 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.

In its revised I/M SIP revision submittal, New Jersey indicates

that $25 million in Capital Funds have been dedicated to upgrade the

central DMV computer system. New Jersey also plans to use any other

source of funding that is made available for auditing and program

oversight. The State also indicates that the DEP's funding request will

fully fund the DEP's responsibilities in the 1997 budget year. Since

the State has not indicated how the I/M program will be funded past the

1997 budget year, the State must confirm its plan for funding the

enhanced I/M program throughout its duration by submitting supplemental

information to EPA prior to the end of the 18-month interim period.

The State's 1995 I/M SIP revision submittal indicated that under

legislative authority, an amount of $11.50 from each vehicle

registration fee will be deposited in the ``Motor Vehicle Inspection

Program Fund.'' This fund may also receive funds from licensing fees

and enforcement fines. This fund will be utilized for implementing,

administrating, evaluating, auditing and enforcing the I/M program. The

State must confirm that these funds will be available for the program

functions described above.

The DMV anticipates requiring a staffing level of 172 full time

employees for the operation of the enhanced I/M program. The State must

confirm that this level of funding and personnel will be adequate to

allow the program to operate unhindered until it is no longer

necessary. Alternatives to this approach would be acceptable, if the

State can demonstrate that adequate funding can be maintained in some

other fashion.

This is a minor deficiency and must be corrected in the State's

final I/M SIP revision submitted at the end of the 18-month interim

period.

Test Frequency and Convenience--40 CFR 51.355

The federal I/M regulation establishes an enhanced I/M performance

standard

[[Page 56178]]

that 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.

New Jersey proposes a biennial test frequency. Legal authority is

contained in the I/M SIP revision submittal. Vehicles that violate this

requirement will have registrations denied or revoked. New Jersey

intends to make use of existing inspection stations. Some outdated

stations may be closed and new stations constructed to supplement the

inspection stations that will have the new equipment installed.

Standards will be developed by New Jersey to keep the wait times below

30 minutes. Incentives will be provided to shorten the wait times to 15

minutes.

The New Jersey submittal meets the test frequency and convenience

requirements of the federal I/M regulation for interim approvable.

Vehicle Coverage--40 CFR 51.356

The federal I/M regulation establishes a performance standard for

enhanced I/M programs that is based on coverage of all 1968 and later

model year light duty vehicles and light duty trucks 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. 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 and

belonging to the covered model years and vehicle classes comprise the

subject vehicles. Fleets may be officially inspected outside of 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 the same type of test network as

other vehicles in the state, according to the requirements of 40 CFR

51.353(a). Vehicles which are operated on federal installations located

within an I/M program area shall be tested, regardless of whether the

vehicles are registered in the State or local I/M area.

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. Such exemptions shall be accounted for

in the emissions reduction analysis.

The New Jersey enhanced I/M program requires all model years of

light and heavy duty gasoline-fueled vehicles to undergo some form of

emissions inspection. The SIP submittal indicates that, as of 1994,

4,830,771 vehicles will be included in the I/M program. New Jersey

proposes to exempt diesel vehicles, motorcycles, historic vehicles,

collector vehicles, farm equipment and machinery, traction equipment,

fire trucks greater than 10,000 pounds GVWR, in-transit construction

equipment and military tactical vehicles operated on federal

installations within the State. Fleet vehicles primarily operated in

the State but registered in other program areas will be identified and

may be inspected in New Jersey. Vehicles registered in New Jersey but

primarily operated in another program area are required to be inspected

in New Jersey.

The State's draft request for proposal (RFP) indicates that fleet

vehicles registered in the State or primarily operated in the State are

required to participate in the enhanced I/M program. Fleet vehicles may

be inspected at a test-only facility or private inspection facility.

Owners or lessees of fleet vehicles may apply to become a licensed

private inspection facility for self inspections. Fleet vehicles which

fail two consecutive initial emissions tests are required to be

inspected at a test-only facility following the second initial test.

New Jersey's RFP has not been finalized. This is a minor deficiency

and must be corrected in the State's final I/M SIP revision submitted

at the end of the 18-month interim period.

Test Procedures and Standards--40 CFR 51.357

The federal I/M regulation requires that 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, dated April 1994 and ``Acceleration Simulation Mode Test

Procedures, Emission Standards, Quality Control Requirements, and

Equipment Specifications'', EPA-AA-RSPD-IM-96-2, dated July 1996. The

federal I/M regulation also requires vehicles that have been altered

from their original certified configuration (i.e., engine or fuel

switching) to be subject to the requirements of Sec. 51.357(d).

New Jersey's proposed rules require that all test procedures and

standards for the chassis model year and type will be applied to

vehicles with switched engines. New Jersey's proposed I/M rules do not

allow vehicles to switch to a fuel type for which there is no certified

configuration. New Jersey's I/M program will be using a one-mode

Acceleration Simulation Mode (ASM) emissions test for most of its

fleet. New Jersey has been working with other states and the equipment

manufacturers, in coordination with EPA, to develop their own

procedures, specifications and standards for one- and two-mode ASM

testing. It is anticipated that states' test procedures, specifications

and standards will be released shortly.

In light of the anticipated release of these test procedures and

standards in the near future and their importance to the implementation

of the program, EPA believes that it is not appropriate to proceed to

conditional interim approval prior to the submittal of the current

version of the procedures and standards. Therefore, New Jersey must

submit the current version of its procedures and standards to EPA

within 30 days of publication of this document.

Within 30 days of the publication of this notice New Jersey must

submit both the current version of its test procedures and standards

for a one-mode ASM test and a commitment to submit final test

procedures and standards by a date certain which is no later than

January 31, 1997. It is essential that the State submit final test

procedures and standards no later than this date because a significant

lead time is necessary in order for the program to begin testing as

planned. If the State does not submit the latest draft of the test

procedures and standards within 30 days of the publication of this

notice or the State fails to commit within 30 days to submit approvable

final test procedures and standards for the one-mode ASM test as

specified above, then EPA proposes in the alternative to disapprove the

New

[[Page 56179]]

Jersey I/M SIP. If the State commits to submit the final procedures and

standards but these conditions are not met, EPA will issue a letter to

the State indicating that the conditional interim approval has been

converted to a disapproval.

Test Equipment--40 CFR 51.358

The federal I/M regulation requires computerized test systems 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.

New Jersey has been working with other states and the equipment

manufacturers, in coordination with EPA, to develop their own,

specifications for one- and two-mode ASM testing. It is anticipated

that the states' test procedures, specifications and standards will be

released shortly.

In light of the anticipated release of the specifications in the

near future and their importance to the implementation of the program,

EPA believes that it is not appropriate to proceed to conditional

interim approval prior to the submittal of the current version of the

equipment specifications. Therefore, New Jersey must submit the current

version of its equipment specifications to EPA within 30 days of the

publication of this document.

Within 30 days of the publication of this notice, New Jersey must

submit both the current version of its test equipment specifications

for a one-mode ASM test and a commitment to submit final test equipment

specifications by a date certain which is no later than January 31,

1997. It is essential that the State submit final test equipment

specifications no later than this date because a significant lead time

is necessary in order for the program to begin testing as planned. If

the State does not submit the latest draft of the test equipment

specifications within 30 days of the publication of this notice or the

State fails to commit within 30 days to submit approvable final test

equipment specifications for the one-mode ASM test as specified above,

then EPA proposes in the alternative to disapprove the New Jersey I/M

SIP. If the State commits to submit the final equipment specifications

but these conditions are not met, EPA will issue a letter to the State

indicating that the conditional interim approval has been converted to

a disapproval.

Quality Control--40 CFR 51.359

The federal I/M regulation requires that states implement quality

control measures that will insure that emission measurement equipment

is calibrated and maintained properly, and that inspection, calibration

records, and control charts are accurately created, recorded and

maintained.

New Jersey's draft RFP contains 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 New

Jersey submittal complies with the quality control requirements set

forth in the federal I/M regulation. However, questions remain as to

the details of the one-mode ASM test as stated in the Test Procedures

and Standards section of this notice. In addition, a draft RFP cannot

be accepted to comply with all requirements of this section. The final

RFP should be forwarded to EPA upon completion. This is a minor

deficiency and must be corrected in the State's final I/M SIP revision

submitted at the end of the 18-month interim period.

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 allow

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. The federal I/M regulation allows for compliance via a

diagnostic inspection after failing a retest on emissions and requires

quality control of waiver issuance. The I/M SIP revision 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 I/M SIP

revision.

New Jersey has requested that EPA delay the implementation of the

$450 waiver plus CPI adjustment requirement until the year 2000. The

State proposes to phase-in the waiver by allowing 1981 and newer

vehicles a $200 waiver limit. No waivers will be granted to pre-1981

vehicles since New Jersey will require that these vehicles only pass

the idle test. Owners applying for a waiver may include proof of

qualifying repairs that were made up to 60 days prior to the inspection

date.

EPA is proposing to approve the State's request to extend the

deadline for the full implementation of the cost waiver including the

CPI adjustment until January 1, 2000. This will allow the State to

complete one full cycle of testing with the $200 cost waiver and will

also allow the State to complete a full cycle of testing with the full

$450 plus the annual CPI adjustment made retroactively to 1989 cost

waiver before January 1, 2002 which is the performance standard

modeling evaluation date. EPA believes, that consistent with its

interpretation that the start dates and evaluation dates have been

extended by approximately two years by the NHSDA, the full

implementation of the waiver can also be extended by two years.

The New Jersey submittal meets the waiver and compliance via

diagnostic inspection requirements of the federal I/M regulation for

interim approval.

Motorist Compliance Enforcement--40 CFR 51.361

The federal I/M regulation requires that 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. An enhanced I/M area may use either sticker-based enforcement

programs or computer-matching programs if either of these programs were

used in the existing program that was operating prior to passage of the

CAA, and it can be demonstrated that the alternative has been more

effective than registration denial. The I/M SIP revision shall provide

information concerning the enforcement process, legal authority to

implement and enforce the program, and a commitment to a compliance

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

New Jersey proposed a system of registration revocation for

motorist compliance enforcement. The DMV has statutory authority under

N.J.S.A. 39:5-30 and 39:3-5 to deny or revoke motor vehicle

registration. New Jersey intends

[[Page 56180]]

to use a registration revocation enforcement program that will be

backed up by the use of windshield stickers and computer matching of

vehicle and motorist information. The method proposed by the State is

as effective as a registration denial system because the ultimate

enforcement mechanism is the revocation or denial of the vehicle

registration. On August 6, 1996, New Jersey supplemented the March 27,

1996 submittal with a flow chart outlining the registration revocation

process. In its final submittal of adopted regulations, the State

should include a detailed description of how the registration

revocation process will be applied. This is a minor deficiency and must

be corrected in the State's final I/M SIP revision submitted at the end

of the 18-month interim period.

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 I/M 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.

New Jersey proposes to use an electronic data capture system

facilitated by bar coding of critical vehicle information that will

allow cross-referencing of test results. The quality control provisions

of this program will be implemented by members of the New Jersey DOT,

DEP, and State and local police officials. This section of the New

Jersey submittal meets the requirements of the federal I/M regulation

for interim approval.

Quality Assurance--40 CFR 51.363

The federal I/M regulation requires that an ongoing quality

assurance program shall be implemented to discover, correct and prevent

fraud, waste, and abuse in the enhanced I/M 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.

In New Jersey's draft RFP, a description of the quality assurance

program is given. DEP and DOT will perform performance audits, record

audits, and equipment audits in accordance with the requirements of the

federal I/M regulation.

The State's RFP is still in draft form. This is a minor deficiency

and must be corrected in the State's final I/M SIP revision submitted

at the end of the 18-month interim period.

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

The federal I/M regulation requires that enforcement against

licensed stations, 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 that

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 I/M SIP revision.

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,

unless constitutionally prohibited. An official opinion explaining any

state constitutional impediments to immediate suspension authority must

be included in the submittal. The I/M SIP revision 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.

New Jersey submitted State regulations published on October 2,

1995, which include a penalty schedule as required under this section

of the I/M Rule. The State's regulations provide for up to lifetime

suspensions of inspection licenses for most major violations. The

regulations also describe administrative and judicial procedures with

respect to the enforcement of this portion of the program. As a result,

EPA finds that this section of the New Jersey submittal meets the

requirements of the federal I/M regulation for interim approval.

Data Collection--40 CFR 51.365

Accurate data collection is essential to the management, evaluation

and enforcement of an 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.

In New Jersey's 1995 I/M SIP revision submittal, the State

indicated it will collect data to distinguish complying and

noncomplying vehicles and inspection facilities. For each vehicle

tested, New Jersey will require collection of data as outlined in the

federal I/M regulation. Results of the visual inspection of the

catalytic converter, gas cap, evaporative system, and the pressure and

purge test will also be provided. Results of quality control checks

will be reported and identified by station number, system number, date

and start time. Additionally, New Jersey is awaiting guidance from ECOS

on the data collection requirements for the short term program

evaluation. New Jersey's data collection procedure is not yet

finalized. This is a minor deficiency and must be corrected in the

State's final I/M SIP revision submitted at the end of the 18-month

interim period.

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 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.

New Jersey, in its draft RFP, requires the contractor to provide

the information to the State in order to meet the requirements of the

federal I/M regulation. The State commits to submitting these reports

to EPA by July of each year for data collected January to December of

the previous year.

The State's RFP is not completed. This is a minor deficiency and

must be corrected in the State's final I/M SIP revision submitted at

the end of the 18-month interim period.

[[Page 56181]]

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 perform inspections.

The State's I/M SIP revision submittal requires inspectors to be

trained by the contractor or subcontractor and licensed by the DMV.

Trainees will be required to pass both a written and a hands-on test in

order to be licensed.

This element of New Jersey's SIP submittal meets the requirements

of the federal I/M regulation for interim approval.

Public Information and Consumer Protection--40 CFR 51.368

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

information and consumer protection programs.

At least three months prior to I/M program implementation, New

Jersey will inform the motoring public on the environmental benefits

and requirements of the program. As indicated in the draft RFP, the

State, through a contractor, will continue a public awareness program

throughout the contract life of seven years. Motorists that fail the

emissions test will receive statistics on the repair facilities in the

area.

New Jersey's proposed I/M program provides for motorists to be

informed of program requirements and protected from potential abuses by

inspectors and/or stations. The State's submittal indicates that a

public information program will be undertaken prior to program

commencement; however, it does not include a description of the

activities planned. Based on the unfavorable reaction the public had at

the start of other states' programs, public awareness is a crucial

element of the program. This is a minor deficiency and must be

corrected in the State's final I/M SIP revision submitted at the end of

the 18-month interim period.

Improving Repair Effectiveness--40 CFR 51.369

Effective repairs are key to achieving program goals. The federal

I/M regulation requires states to take steps to ensure that the

capability exists in the repair industry to repair vehicles. The I/M

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 in the federal I/M

regulation, and a description of the repair technician training

resources available in the community.

The State is developing an Emission Technician Education Plan to

improve the skills of the current and future technicians. The State

will utilize the Automotive Service Excellence (ASE) L1 exam as the

final examination for the training program after taking a course on New

Jersey-specific enhanced I/M requirements. Performance monitoring will

be performed in accordance with the requirements of the federal I/M

regulation. Motorists that fail the initial test will be given a

summary of the performance of individual repair facilities in order to

help the motorist to select a repair facility that has demonstrated the

ability to effectively repair failing vehicles. The State's submittal

meets the repair effectiveness requirements of the federal I/M

regulation for interim approval.

Compliance With Recall Notices--40 CFR 51.370

The federal I/M regulation requires the states to establish methods

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

included in an emission related recall receive the required repairs

prior to completing the emission test and/or renewing the vehicle

registration.

In its I/M submittal the State requires motorists to obtain recall

repairs in order to complete the inspection process. Motorists will be

notified at the inspection station of any outstanding recalls. The

State commits to providing an annual report providing information on

recall compliance. The State's submittal meets the recall notice

requirements of the federal I/M regulation for interim approval.

On-road Testing--40 CFR 51.371

The federal I/M regulation requires on-road testing 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 I/M regulation. The I/M 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 an on-road test shall be required to pass an out-of-cycle test.

New Jersey proposes to utilize RSD to identify high emitters for

roadside pullovers. Testing will be conducted on 20,000 vehicles each

cycle. The RSD program will be conducted in two phases. Phase I will be

utilized for fleet characterization and data collection. The data also

will be used to develop a correlation between RSD results and results

from the enhanced I/M test. The RSD cutpoints will also be determined.

These cutpoints are not required to be the same as the cutpoints

established for the enhanced I/M emissions test since RSD will identify

only gross emitters. Phase II of the program will require vehicles that

fail the test to have an off-cycle emission inspection within 30 days.

The State's submittal meets the on-road testing requirements of the

federal I/M regulation for interim approval.

State Implementation Plan Submissions/Implementation Deadlines--40 CFR

51.372-51.373

These sections of the federal I/M regulations require that the

state outline program milestones and provide an implementation

schedule.

New Jersey's I/M SIP revision submittal contains the proposed

enhanced I/M program regulations. However, the State should review its

1995 I/M SIP revision submittal and its revised 1996 SIP submittal to

eliminate any inconsistencies between the submittals. Final equipment

specifications have not been developed. The RFP is in draft form as of

the date of this notice. Licensing and certification of inspectors will

be performed prior to the start of the program in 1997. Mandatory

testing is scheduled to begin in 12 months after conditional interim

approval. Full stringency cutpoints are proposed to be implemented in

January 2000. With the conditions noted above, the State's submittal

includes the relevant program requirements of the federal I/M

regulation for interim approval.

III. Discussion for Rulemaking Action

Today's notice of proposed conditional interim approval begins a

30-day time period for the State to make a commitment to EPA to correct

the major deficiencies of the I/M SIP revision that EPA has identified,

by dates certain as described in this notice. These major deficiencies

are:

Enhanced I/M Performance Standard Modeling

In order to determine whether the state I/M program meets the

enhanced I/M performance standard, and is therefore approvable, states

must submit modeling demonstrating that the program achieves the

required emission reductions by the relevant dates. New Jersey did not

include all modeling assumptions in its submittal. Given that New

Jersey plans to use a one-mode Acceleration Simulation Mode (ASM) test

procedure, it is possible that final modeling assumptions would not be

[[Page 56182]]

available for some time since an acceptable test procedure or emission