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

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN56-1-7077a; FRL-5426-4]

Approval and Promulgation of Air Quality Implementation Plans;

Indiana: Motor Vehicle Inspection and Maintenance

AGENCY: United States Environmental Protection Agency (USEPA).

ACTION: Direct final rule.

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SUMMARY: The U.S. Environmental Protection Agency (USEPA) is giving

full approval through a direct final action to a state implementation

plan (SIP) revision submitted on June 6, 1995 and September 28, 1995,

by the Indiana Department of Environmental Management (IDEM). This

revision provides for the adoption and implementation of an enhanced

motor vehicle emission inspection and maintenance (I/M) program in the

areas of Lake, Porter, Clark, and Floyd Counties. The Lake and Porter

County area is designated severe nonattainment for ozone and is

required to implement an enhanced I/M program. The Clark and Floyd

County area is designated moderate nonattainment for ozone and has

opted to implement enhanced I/M. These 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. The implementation

of this important program in the areas stated above will reduce vehicle

emissions which contribute to the formation of urban smog in Indiana by

more than 4.5 tons per day. In the proposed rules section of this

Federal Register, USEPA is proposing approval of this I/M program and

SIP revision, and solicits public comments on the action. If adverse

comments are received on this direct final rule, USEPA will withdraw

this final rule and address these comments in a subsequent final rule

based on the proposed rule.

DATES: This final rule is effective on May 20, 1996 unless adverse or

critical comments are received by April 18, 1996. If the effective date

is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Copies of Indiana's I/M SIP submittal, and other documents

pertinent to this direct final rule are available at the following

address: U.S. Environmental Protection Agency, Region 5, Air and

Radiation Division, Regulation Development Branch, 77 West Jackson

Boulevard, Chicago, Illinois 60604.

Comments on this 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

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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 USEPA 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, vehicle 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 USEPA. 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

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

implemented by Indiana will identify emission related problems and

prompt the vehicle owner to obtain timely repairs thus reducing

emissions.

The Act requires that certain areas which have not attained the

ozone NAAQS 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 USEPA 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 program 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 toward the

emission reduction requirement.

The USEPA 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. 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 is

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 these older 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 USEPA and State

agencies 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), USEPA 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. Adding the pressure and purge test increases

the benefit even more, resulting 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, USEPA published additional changes to the

I/M rule in the Federal Register on September 18, 1995 (60 FR 48029),

in order to provide greater flexibility to states required to implement

I/M programs.

II. Background

The State of Indiana contains the Lake and Porter County area which

is classified as a severe nonattainment area for ozone, and the Clark

and Floyd County area which is classified as a moderate nonattainment

area for ozone. On June 6, 1995, IDEM submitted a complete SIP revision

request containing the I/M program. USEPA made a finding of

completeness in a letter dated June 9, 1995. This submittal includes

new I/M regulations adopted on April 5, 1995 by the Indiana Air

Pollution Control Board and documentation addressing required portions

of the Federal I/M rule. The rules were signed by Governor Bayh on June

20, 1995, and the final rules were published in the Indiana Register on

August 1, 1995. On September 28, 1995, IDEM submitted additional

documentation for the Indiana I/M SIP. Under IC 13-1-1 and 13-7-7, the

Air Pollution Control Board has the authority to adopt air pollution

regulations for the State under Title 326 Indiana Administrative Code.

The adopted regulation changes the current program in all four counties

from a basic I/M program to an enhanced I/M program. In addition to the

Indiana I/M rule, the State SIP submittal includes the Indiana I/M

Performance Standard Modeling Demonstration (August 30, 1995); State of

Indiana Request for Proposal #A305-2038 for the Indiana Department of

Environmental Management (December 14, 1993); Systems Control Inc.

Contract for Services with Amendments; Systems Control Inc. Proposed

Public Information Plan; Supplemental I/M State Implementation Plan

Document (September 27, 1995). USEPA 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 document (57 FR 52950) and 40 CFR 51.350-51.373.

III. EPA's Analysis of the Indiana, 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

document summarize the requirements of the Federal I/M regulations and

address whether the

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elements of the State's submittal comply with the Federal rule.

Applicability--40 CFR 51.350

Under the requirements of the Act, basic I/M programs are required

in a number of areas classified as moderate nonattainment for ozone. In

Indiana, these areas are: Clark and Floyd Counties. In addition, areas

classified as serious and above are required to implement an enhanced

I/M program. In Indiana, these are Lake and Porter Counties. The

Indiana submittal contains the legal authority and regulations

necessary for IDEM to establish the program boundaries and operate an

enhanced I/M program in all four counties cited above. 326 IAC 13-1.1

specifies that the geographic boundaries of the program in each area

are county-wide. The program boundaries described in the Indiana

submittal meet the Federal I/M requirements under Section 51.350 and

are approvable. The Federal I/M regulation requires that state programs

not lapse prior to the time they are no longer needed. USEPA believes

that a program that does not lapse prior to the attainment deadline for

each applicable area would meet this requirement. The attainment date

for the Clark and Floyd County nonattainment area is November 15, 1996,

and the attainment date for the Lake and Porter County nonattainment

area is November 15, 2007. The State I/M regulation contained in the

Indiana submittal allows for implementation of the program through the

attainment date for each of the areas listed above, and is therefore

approvable.

Enhanced I/M Performance Standard--40 CFR 51.351

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

or exceed a minimum performance standard, which is expressed as

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

pollutants. The performance standard shall be established using local

characteristics, such as vehicle mix and local fuel 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 USEPA mobile source emission factor model. At the

time of the Indiana submittal, the most current version was 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).

The Indiana submittal includes the following program design

parameters: centralized test only network; January 1, 1996 start date;

biennial frequency; 1976 and newer model year coverage; Vehicle type

include LDGV, LDGT1, LDGT2 up to 9,000 pounds; IM240 for 1981 and newer

vehicles, and Idle for 1976 through 1980 vehicles; four element visual

inspection; purge test on 1981 and newer vehicles; pressure test on

1976 and newer vehicles; stringency rate will be 20 percent for 1980

and older vehicles; waiver rate will be 3 percent and a 95 percent

compliance rate for Clark and Floyd Counties and 96 percent compliance

rate for Lake and Porter Counties.

The Indiana 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 gpm, for VOCs and

NOX for each milestone and for the attainment deadline. The

modeling demonstration is approvable.

Network Type and Program Evaluation--40 CFR 51.353

The two Indiana ozone nonattainment areas required to implement an

I/M program will be implementing an enhanced I/M program. In both areas

a single contractor, Systems Control, Inc., will operate a test-only

centralized network for inspections and reinspection. All vehicles

included in the emission reduction demonstration will be tested by the

contractor in centralized I/M test facilities. The contract specifies

that the contractor is barred from involvement in motor vehicle-related

business with the exception of vehicle testing equipment fabrication

and sales. The Indiana I/M program plan calls for IDEM to institute an

ongoing evaluation of the enhanced I/M program consistent with USEPA

regulations to quantify the emissions reductions benefits of the

program to verify that it is meeting the requirements of the Act. The

evaluation will consist of monitoring the performance of IM240 on a

random, representative sample of at least 0.1 percent of the vehicles

subject to inspection and covering 1981 and later vehicles. Evaporative

system purge (1981 and newer vehicles) and pressure tests (1976 and

newer vehicles) will be performed on those vehicles subject to the test

requirements. The State's plan describes the manner in which the State

will perform the evaluation: using IDEM auditors, visiting each lane at

every station quarterly, choosing vehicles at random at different times

of the day, performing calibration checks, and ensuring the selected

vehicles represent the fleet mix in the test area. Data will be

collected as part of the regular data collection system for routine

testing. IDEM will submit biennial reports on the results of the

evaluations. The reports will assess whether the program is meeting the

emission reduction target. The State's submittal meets the network type

and program evaluation requirements in the Federal I/M rules.

Adequate Tools and Resources--40 CFR 51.354

The Federal regulation requires states to demonstrate that adequate

funding of the program is available. 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 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. Indiana

has entered into a contract for services with Systems Control, Inc. to

conduct enhanced I/M testing in Lake, Porter, Clark, and Floyd

Counties. This contract has a ten-year duration. During the first two

years of the program, Indiana intends to use $6.8 million in Congestion

Mitigation and Air Quality funds and $4.2 million in State funds to

operate the program. The submittal demonstrates that sufficient funds,

equipment and personnel have been appropriated to meet program

operation requirements. The State's submittal meets the adequate tools

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

Test Frequency and Convenience--40 CFR 51.355

The enhanced I/M performance standard assumes an annual test

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

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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 Indiana enhanced I/M

regulation provides for a biennial test frequency for all subject

vehicles. New vehicles are exempt from testing the first 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. For re-registration the vehicles are placed back into the

testing cycle according to their vehicle identification number (VIN).

In Indiana's biennial program if the last three digits of the VIN are

from 000 to 495, or if the VIN contains any letters in place of the

last three digits, such vehicles will be tested in even-numbered

calendar years. If the last three digits of the VIN are from 496 to

999, such vehicles will be tested in odd-numbered calendar years. Used

vehicles that are not currently registered in the four subject counties

must be tested and receive a valid emission test certificate prior to

registration in the subject counties. The State plan specifies that

test facilities are located such that eighty (80) percent of all

motorists in urban areas do not have to drive more than five (5) miles

to a test facility, and ninety-six (96) percent in urban areas will not

have to drive more than twelve (12) miles. The I/M contract specifies

at least fifty-four (54) hours of operation of a test facility per

week. These provisions are approvable.

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 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. The

Indiana I/M program requires coverage of all 1976 and newer gasoline

powered light duty passenger cars, light duty trucks up to 9,000 pounds

GVWR. The Indiana Bureau of Motor Vehicles (IBMV) data available on the

current fleet does not include vehicles owned by the U.S. General

Services Administration or the U.S. Post Office. These government

vehicles are required to be tested but are not currently part of the

State data base. IDEM is working with these organizations to establish

a testing routine and schedule for these vehicles, which are not

presently licensed by the IBMV. The Indiana program exempts vehicles

older than model year 1976, motor cycles, vehicles over 10,000 pounds,

and diesel-fueled vehicles, electric vehicles, farm vehicles, and

recreational vehicles. USEPA agrees with the State that these vehicles

do not make up a significant portion of the total motor vehicle fleet

in the tested area and most are not included in the modeling for the

performance standard. Additional information and other statistical

information regarding the fleet, required to manage the program, will

become available following the first test cycle. This section is

approvable.

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 draft USEPA 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. IDEM has the authority to establish test procedures according to

the needs of the program. The Indiana submission requires the

contractor to develop and maintain written up-to-date procedures which

correspond to the USEPA recommended test procedures. All applicable

1981 and newer vehicles will be subject to an IM240 test that includes

the purge and pressure test. All applicable 1976 through 1980 vehicles

will be subject to a BAR90 single-speed idle test that includes the

pressure test. The IM240 test will include a fast-pass algorithm. All

vehicles will be tested in an as-received condition and vehicle owners

will have an opportunity to view the test from an area at the test site

that affords an unobstructed view. Each vehicle will be inspected prior

to the emissions test and rejected from testing if any unsafe condition

exists or if the exhaust is leaking or missing. In the event of an

emission failure of any kind, all components are retested after

repairs. These provisions are approvable.

Test Equipment--40 CFR 51.358

The Federal regulation requires computerized test systems for

performing any measurement on subject vehicles. IDEM lists the details

of the technical specification of the test equipment in the Indiana

SIP, and makes reference to the requirements of the Federal regulations

and the technical guidance document. Computerized test systems are

required for performing any measurements on subject vehicles. According

to the requirements in the SIP, these systems must conform to Federal

requirements. Each of the State's test lanes shall be equipped with a

dynamometer, constant volume sampler, non-dispersive infrared analyzers

to measure carbon monoxide, carbon dioxide, and hydrocarbons, and an

analyzer for measuring NOx, and pressure and purge test equipment.

All of this equipment must pass an acceptance test before it is

approved by the State. All test systems will be linked by a real-time

data link in order to prevent unauthorized multiple initial tests on

the same vehicle in the same test cycle. These provisions are

approvable.

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. IDEM prepared the I/M contract to require the

contractor to develop and implement a quality assurance/quality control

plan which complies with 40 CFR 51.359. The Indiana SIP states that the

contractor's quality control procedures shall ensure that emission

measurement equipment are properly calibrated and maintained. Analyzers

will automatically record quality control check information, lockouts,

attempted tampering, and any other recordable circumstances that impact

quality control. These provisions are approvable.

Waivers and Compliance Via Diagnostic Inspection--40 CFR 51.360

The I/M program allows 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 the

prescribed criteria are met. The State program plan contains elements

in this section which generally follow the waiver issuance criteria

listed in the Federal I/M regulation. In modeling the emission

reduction benefits, Indiana 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 remodel to assess the emission

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reduction benefits based on the actual waiver rate. The Indiana I/M

rule provides the authority to issue waivers, set and adjust cost

limits, and administer the waiver system. Following a test failure, the

subsequent reinspection must show that the minimum waiver limit amount

has been spent on emission related repairs. A vehicle is eligible for a

waiver when proof is provided that the vehicle has received all repairs

and adjustments for which it is eligible under any emissions

performance warranty. The costs associated with repair of any tampering

is not considered valid toward a waiver. When proof is provided to the

inspection station manager that appropriate repairs have been performed

on the vehicle, such vehicle will be eligible for a waiver. The

inspection station manager is responsible for verifying repairs and

reviewing repair receipts. The station managers are authorized to

determine waiver eligibility. Waivers are valid for one (1) year and

are not renewable. The minimum expenditure made on emission repairs in

Clark and Floyd Counties is seventy-five ($75) dollars for 1980 and

older vehicles and two-hundred ($200) dollars for 1981 and newer. While

the Clean Air Act requires a minimum waiver repair expenditure for

enhanced I/M programs of $450, basic areas such as the Clark and Floyd

county areas which are opting up to enhanced I/M do not have to meet

this requirement. In order to qualify for a waiver in the Lake and

Porter Counties, motorists with 1981 model year or newer vehicles shall

spend at least three hundred dollars in repairs between January 1,

1996, and December 31, 1998; and at least four hundred fifty dollars in

repairs on or after January 1, 1999. Beginning in January 1, 2000, IDEM

shall adjust the four hundred fifty dollar minimum expenditure in

January of each year by the percentage, if any, by which the Consumer

Price Index (CPI) for the preceding calendar year differs from the CPI

for 1989. Motorists in Lake and Porter County with 1980 model year or

older vehicles shall expend at least seventy-five dollars in repairs.

The State allows exemptions to the inspection requirement and

extensions if a vehicle is undergoing extensive repair at the time of

its registration or registration renewal. The requirements for an

extension or exemption are sufficient to allow the State full

understanding of the need by the consumer for the extension or

exemption, and places a burden on the consumer to prove to the State

that such an extension or exemption is needed. The Federal I/M rules

also allow the use of compliance via diagnostic inspection following

repairs after a test failure. The State of Indiana has chosen to allow

compliance via diagnostic repair. These provisions are approvable.

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. IDEM, along

with the IBMV, will continue to implement a registration denial

enforcement program. Vehicle owners who do not renew vehicle

registrations, and continue to drive an unregistered vehicle in the

State, will be subject to enforcement action by any law enforcement

officer in the State. Local governments are responsible for

establishing policies for the mandatory fines of all traffic violations

including failing to comply with registration requirements. Owners of

all vehicles registered in the State are required to affix stickers to

the upper portion of the license plate. These stickers identify the

month and year of the registration renewal date. If an owner or driver

fails to comply with I/M or registration requirements, he or she will

be unable to legally drive that automobile and will be subject to

enforcement action. In the I/M SIP, Indiana commits to the level of

motorist enforcement necessary to ensure a compliance rate of no less

than 96 percent among subject vehicles in Lake and Porter Counties and

95 percent in Clark and Floyd counties. If it is determined as part of

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

compliance rate, Indiana commits to investigating the problem and

instituting changes to improve the compliance rates. These provisions

are approvable.

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 to characterize, evaluate and enforce the program. The

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

Indiana Environmental Statutes IC 13-1-1 and 13-7-7. These statutes

provide the authority necessary to develop and implement the

enforcement program oversight element of the I/M program. Specific

operation of this aspect of the program is contained in 326 IAC 13-1.1-

3. Program oversight shall be accomplished by IDEM staff using two

oversight personal computers located at IDEM. The information base for

the enforcement program is assured through the use of trackable serial

numbers and test lane and inspector identifiers, such that responsible

personnel can be identified. Program software precludes any duplicate

initial inspections being conducted. Follow-up of exempt vehicles and

exemption-triggering registration changes will be done through periodic

program documentation audits. These provisions are approvable.

Quality Assurance--40 CFR 51.363

An ongoing quality assurance program shall be implemented to

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

The program shall include covert and overt performance audits of the

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

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

auditors. A description of the quality assurance program which includes

written procedure manuals on the above discussed items must be

submitted as part of the SIP.

Both 326 IAC 13-1.1-16 and the I/M contract with Systems Control,

Inc., include provisions necessary to develop and implement the quality

assurance element of the I/M program. Overt audits shall include a

check of document security; recordkeeping practices; licenses,

certificates and required display information; observation and written

evaluation of each inspector's ability to perform the test procedure;

and, a quality control evaluation of test equipment. Test records will

be reviewed electronically once a month by station to flag

statistically inconsistent or improbable results. The program shall

conduct yearly covert audits based upon the number of inspectors

participating in the program. Additional covert audits may be conducted

as necessary for suspected problem sites. Covert vehicles will be set

to fail various aspects of the inspection so as to reflect the full

range of technology and malfunction types based upon procedures

established for audits. These provisions are approvable.

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

The Federal I/M regulation requires the establishment of minimum

penalties for violations of program rules and

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procedures which can be imposed against stations, contractors and

inspectors. Senate Enrolled Act No. 285 amended the Indiana

Administrative Code and gives IDEM authority to enter into a contract

to implement and maintain an inspection and maintenance program. This

contract allows the State to impose penalties when violations occur

that adversely affect the operation of the inspection network. The

contract lists a variety of rules infractions, which will be used for

violations discovered at an inspection facility as a result of overt

and covert audits conducted by IDEM staff. Penalties range from

monetary fines to termination of employment and breach of contract

depending on the violation. Under 326 IAC 13.1.1-15, in cases of

inspector incompetence, IDEM may suspend, revoke, or deny renewal of an

inspector's state certification. All warnings, fines, suspensions,

revocations, and notices of violation will be recorded as enforcement

activities. An Enforcement Activity Summary Report will be compiled and

submitted to USEPA annually. These provisions of the Indiana submittal

are approvable.

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 Indiana

I/M program requires the contractor to design the program to include

all of the elements of data collection listed in the Federal rule and

326 IAC 13-1.1-14. The contractor is also required to conduct quality

control checks and report data from those checks. This section of the

Indiana submittal is approvable.

Reporting--40 CFR 51.366

Data analysis and reporting are required in order to monitor and

evaluate the program by the State and the USEPA. The Federal rule

requires annual reports submitted to the USEPA following a performance

period by a specific time. The Indiana I/M program requires the

contractor to provide the information to the State in order to meet the

submittal requirements of the Federal rule. Beginning July 1, 1997, and

annually thereafter, the State of Indiana shall report summary data

based upon program activities taking place from January through

December of the previous year. This report will provide statistics for

the testing program, the quality control program, the quality assurance

program, and the enforcement program. In the I/M SIP, the State commits

to address any appropriate data elements listed in 40 CFR 51.366.

Beginning July 1, 1999, and biennially thereafter, Indiana will report

on all changes made in the program design, funding, personnel levels,

procedures, regulations, and legal authority, and will outline the

impact of such changes upon the program. The report will also discuss

any weakness or problems discovered in the program over the previous

two-year period, as well as the steps that were taken to address those

problems, the result of those corrective actions, and any future

efforts planned. These provisions of the Indiana submittal are

approvable.

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 Indiana

I/M regulation (326 IAC 13-1.1-15) requires all inspectors to receive

formal training, be certified, and renew their certification at least

every two years. In order to be licenced by the State, an inspector

shall be required to pass an examination developed by the State in

conjunction with the contractor, which shall include both written and

practicum sections. Curricula shall include, but will not be limited

to, the following: emission testing program orientation, State

policies, vehicle emissions and standards, inspection and facility

operations procedures, customer service, and complaint handling. This

provision meets the Federal I/M regulation requirements for inspector

training and certification and is approvable.

Public Information and Consumer Protection--40 CFR 51.368

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

information and consumer protection program. IDEM assigned some public

awareness efforts to the contractor with state oversight. These efforts

include the operation of a hot-line to be used by the public for (but

not limited to) general information, inquiries on inspection facility

hours, queuing times and, complaints. In addition, the contractor will

develop and distribute general information brochures on the emission

testing program to the public in the program area. Brochures will

include discussions of potential fuel savings, tampering, fuel

switching and vehicle warranties. The contractor will also work with

the Indiana Vocational Technical College (Ivy Tech) public relations

personnel in order to provide a smooth transition of the I/M inspection

program during the period where Ivy Tech's involvement is phased out

and the contractor becomes involved. The public information and

consumer protection programs contained in the SIP submittal meets the

Federal regulations and are approvable.

Improving Repair Effectiveness--40 CFR 51.369

Effective repairs are the key to achieving program goals. The

Federal regulation requires States to take steps to ensure that the

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

must include a description of the technical assistance program to be

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

meeting the performance monitoring requirements required in the Federal

regulation and, a description of the repair technician training

resources available in the community. Systems Control, Inc., will be

responsible for assisting repair facilities and technicians. A

technician hotline service will be provided by ASPIRE. This service is

a user friendly, diagnostic service for repair mechanics which will be

accessed by dialing a 1-900 phone number which has a cost to the

caller. The Indiana program will monitor the performance of individual

motor vehicle repair facilities, so the consumer has a choice of

locations to seek repairs. The repair statistics also will be available

to the repair facilities. The repair effectiveness program described in

the SIP submission meets the Federal regulation and is approvable.

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

required repairs. IDEM, at the time of submittal, did not have a

specific plan developed but included provisions in its Request-for-

Proposal (RFP) for the contractor to follow to ensure subject vehicles

receive all required recall repairs. Emissions tests will not be

conducted on a vehicle that has an unresolved recall notice until all

of the work is done. Vehicles with unresolved recall work will be

identified as noncomplying by the contractor's system. An owner is

required to provide proof that the repairs have been performed before a

test is allowed. The contractor shall have the ability to resolve

situations where the repairs have been performed

[[Page 11148]]

but the database has not yet been updated. The State rule 326 IAC 13-

1.1-11 requires documented proof that the repairs have been performed.

The cost of these repairs are not counted toward the amount needed for

a waiver. Unresolved recall reports from the contractor to the State

are required on an annual basis. The State requires the contractor to

provide detailed information in the annual report sufficient for the

State to inform the USEPA of the status of operations of the program.

These provisions meet the Federal regulations and are approvable.

On-Road Testing--40 CFR 51.371

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

either remote sensing devices (RSD) or roadside pullovers, including

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

The program must include on-road testing of 0.5 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 Indiana I/M regulation

(326 IAC 13-1.1-12) requires on-road testing through the use of remote

sensing devices or roadside pullovers, including tailpipe emissions

testing. If a violation is detected the motorist shall be notified that

the vehicle is required to pass an out-of-cycle follow-up inspection at

a state facility. Penalty for noncompliance is suspension of the

motorist's vehicle registration. These provisions meet the Federal

regulations and are approvable.

State Implementation Plan Submissions--40 CFR 51.372-373

Indiana is currently in the process of implementing an enhanced I/M

program. The June 6, 1995 I/M SIP submittal and the September 28, 1995

additional documentation are fully approvable and contain all elements

meeting USEPA's I/M requirements. Such elements include: mobile

computer modeling which shows that the program meets the performance

standard, a description of the geographic area, a discussion of the

design elements included in the SIP, final copy of the legal authority,

regulation, final RFP, and a final, signed contract with Systems

Control, Inc. USEPA's review of the material indicates that the State

has adopted an enhanced I/M program in accordance with the requirements

of the Act.

IV. Comments and Approval Procedure

The USEPA is publishing this action without prior proposal because

the agency views this as a noncontroversial amendment and anticipates

no adverse public comments. However, in a separate document in this

Federal Register publication, the USEPA is proposing to approve the SIP

revision should adverse or critical comments be filed. This action will

be effective on May 20, 1996 unless, by April 18, 1996, adverse or

critical comments are received. If USEPA receives such comments, this

action will be withdrawn before the effective date by publishing a

subsequent document that will withdraw the final action. All public

comments received will then be discussed in a subsequent final rule

based on the separate proposed rule. The USEPA will not institute a

second comment period for this action. Any parties interested in

commenting on this action should do so at this time. If no such

comments are received, the public is advised that this action will be

effective on May 20, 1996.

Final Action

USEPA is approving this revision to the Indiana SIP for an enhanced

I/M program. The Agency has reviewed this request for revision of the

Federally-approved SIP for conformance with the provisions of the 1990

Amendments enacted on November 15, 1990. The Agency has determined that

this action conforms with those requirements. Under section 307(b)(1)

of the Act, 42 U.S.C. 7607(b)(1), petitions for judicial review of this

action must be filed In the United States Court of Appeals for the

appropriate circuit by May 20, 1996. Filing a petition for

reconsideration by the Administrator of this final rule does not affect

the finality of this rule for purposes of judicial review nor does it

extend the time within which a petition for judicial review may be

filed, and shall not postpone the effectiveness of such rule or action.

This action may not be challenged later in proceedings to enforce its

requirements. (See section 307(b)(2) of the Act, 42 U.S.C. 7607

(b)(2).) The Office of Management and Budget has exempted this rule

from the requirements of section 6 of Executive Order 12866.

Precedental Effect

Nothing in this action shall be construed as permitting or allowing

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

any State implementation plan. Each request for revision to the State

implementation plan shall be considered separately in light of specific

technical, economic, and environmental factors and in relation to

relevant statutory and regulatory requirements.

Regulatory Flexibility

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

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, USEPA 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 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 Act,

preparation of a regulatory flexibility analysis would constitute

Federal inquiry into the economic reasonableness of state action. The

Act forbids USEPA 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).

Unfunded Mandates

Under Sections 202, 203, and 205 of the Unfunded Mandates Reform

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

1995, USEPA must undertake various actions in association with proposed

or final rules that include a Federal mandate that may result in

estimated costs of $100 million or more to the private sector, or to

State, or tribal governments in the aggregate. USEPA's final action

does not impose any federal intergovernmental mandate, as defined in

section 101 of the Unfunded Mandates Act, upon the State. To the extent

that the rules being approved by this action will impose any mandate

upon the State, local, or tribal governments, or upon the private

sector, EPA's action will impose no new requirements; such sources are

already subject to these regulations under State law.

Accordingly, no additional costs to State, local, or tribal

governments, or to the private sector, result from this action. For

these reasons, USEPA has determined that this final action does

[[Page 11149]]

not include a mandate that may result in estimated costs of $100

million or more to either State, local, or tribal governments in the

aggregate, or to the private sector.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,

Hydrocarbons, Incorporation by reference, Ozone, Reporting and record-

keeping requirements.

Dated: January 26, 1996.

Valdas V. Adamkus,

Regional Administrator.

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

amended as follows:

PART 52--[AMENDED]

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

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

Subpart P--Indiana

2. Section 52.770, is amended by adding paragraph (c)(102) to read

as follows:

Sec. 52.770 Identification of plan.

* * * * *

( c) * * *

(102) On June 6, 1995, and on September 28, 1995 the Indiana

Department of Environmental Management submitted State Implementation

Plan (SIP) revisions establishing an enhanced inspection and

maintenance (I/M) program in accordance with the requirements of the

Clean Air Act as amended in 1990. The new enhanced I/M program replaces

the basic I/M programs in operation in Lake, Porter, Clark, and Floyd

Counties. The Air Pollution Control Board adopted new rule 326 IAC 13-

1.1 and repealed existing 326 IAC 13-1, thereby putting in place a

revised I/M program.

(i) Incorporation by reference.

(A) 326 Indiana Administrative Code 13-1.1 adopted April 5, 1995,

effective October 1, 1995.

(ii) Other material.

(A) June 6, 1995 letter and enclosures from the Indiana Department

of Environmental Management (IDEM) Commissioner to the Regional

Administrator of the United States Environmental Protection Agency

(USEPA) submitting Indiana's revision to the ozone State Implementation

Plan (SIP).

(B) September 28, 1995 letter and enclosures from the IDEM

Assistant Commissioner to the Regional Administrator of USEPA

submitting supplemental vehicle inspection and maintenance SIP revision

information and documentation.

* * * * *

[FR Doc. 96-6466 Filed 3-18-96; 8:45 am]

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