Approval and Promulgation of State Implementation Plan; Indiana; Clean-Fuel Fleet Program

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IN66-1-7289a; FRL-5439-6]

Approval and Promulgation of State Implementation Plan; Indiana;

Clean-Fuel Fleet Program

AGENCY: Environmental Protection Agency (EPA).

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 request submitted on December 20, 1995, and

February 14, 1996, by the State of Indiana for the purpose of

establishing a Clean-Fuel Fleet Program (CFFP) in Lake and Porter

Counties. Lake and Porter Counties are classified as severe

nonattainment for ground-level ozone, commonly known as urban smog, and

are required under the Clean Air Act (CAA) to attain the National

Ambient Air Quality Standards (NAAQS) by 2007. The Indiana CFFP, which

is also required by the CAA, is one of the control measures being

implemented in these counties to reduce ozone precursor emissions in

order to help attain the ozone standard. The Indiana CFFP requires

that, beginning in Model Year (MY) 1998, a specified percentage of the

new vehicles acquired by certain vehicle fleets operating in Lake and

Porter Counties meet clean fuel vehicle (CFV) emissions standards,

which are more stringent than current federal vehicle standards.

Indiana expects that after the full phase-in of the CFFP, approximately

3500 fleet vehicles in Lake and Porter Counties will meet the CFV

tailpipe standards.

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

comments are received by April 22, 1996. If the effective date is

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

ADDRESSES: Copies of this 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,

Air Programs 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: Mark J. Palermo, Environmental

Protection Specialist, Regulation Development Section, Air Programs

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

5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6082.

SUPPLEMENTARY INFORMATION:

I. Background

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

codified at 42 U.S.C. 7401-7671q. The CFFP is contained under Part C of

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

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

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

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

nonattainment areas.

The CFFP will introduce lower polluting vehicles, CFVs, into

centrally-fueled fleets by requiring covered fleet operators to include

a specified percentage of CFVs in their new fleet purchases. The goal

of the CFFP is to reduce emissions of non-methane organic gases (NMOG),

oxides of nitrogen (NOx), and CO through the introduction of CFVs

into the covered areas. Both NMOG and NOx are precursors of ozone

and, in most areas, their reduction will reduce the concentration of

ozone in covered ozone nonattainment areas. Reductions of vehicular CO

emissions will reduce the concentration of CO in covered CO

nonattainment areas.

Congress chose centrally-fueled fleets because operators of these

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

Additionally, the control that operators maintain over their fleets

simplifies maintenance and refueling of these vehicles. Finally,

because fleet vehicles typically travel more miles on an annual basis

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

air quality on a per vehicle basis.

Section 182(c)(4) of the CAA allows states to opt-out of the CFFP

by submitting, for USEPA approval, a SIP revision consisting of a

substitute program resulting in as much or greater long term emission

reductions in ozone producing and toxic air emissions as the CFFP. The

USEPA may approve such a revision ``only if it consists exclusively of

provisions other than those required under the [CAA] for the area.''

USEPA has promulgated rulemakings on March 1, 1993, December 9,

1993, and September 30, 1994, establishing emission standards for CFVs

and criteria for state CFFPs (See 58 FR 11888, 58 FR 64679, and 59 FR

50042). These rules were codified in 40 CFR part 88.

II. Program Requirements

Unless a state chooses to opt-out of the CFFP under section

182(c)(4) of the CAA, section 246 of the CAA directs a state containing

covered areas to revise its SIP, within 42 months after enactment of

the CAA, to establish a CFFP. The CFFP shall require a specified

percentage of all newly acquired vehicles of covered fleets, beginning

with MY 1998 and thereafter, to be CFVs, and such vehicles shall use

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

fuel that will result in even fewer emissions than the fuel that was

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

III. State Submittal

The State of Indiana did not choose to opt-out of the CFFP pursuant

to section 182(c)(4) of the CAA. On December 7, 1994, the Indiana Air

Pollution Control Board (IAPCB) held a preliminary adoption hearing on

a proposed rule to establish a CFFP program, and on October 4, 1995,

the IAPCB adopted the rule. The rule became effective on January 18,

1996, and was published in the Indiana State Register on February 1,

1996. The Indiana Department of Environmental Management (IDEM)

formally submitted the CFFP rule to USEPA on December 20, 1995, as a

revision to the Indiana ozone SIP, and submitted an addendum which

included the Secretary of State signature and the published rule on

February 14, 1996.

The December 20, 1995, and February 14, 1996, submittals contains

the following new rules:

326 Indiana Air Code (IAC) 19-3 Clean Fuel Fleet Vehicles

19-3-1 Applicability

19-3-2 Definitions

19-3-3 General purchase requirements

19-3-4 Banking and trading of credits

[[Page 11553]]

19-3-5 Registration and recordkeeping requirements

19-3-6 Exemptions from transportation control measures

19-3-7 Violations

IV. USEPA's Analysis of the State's Clean Fuel Fleet Program

USEPA has reviewed the State's submittal for consistency with the

requirements of USEPA regulations at 40 CFR Part 88. A summary of

USEPA's analysis is provided below.

A. Covered Areas

The SIP revision needs to list those areas where the CFFP will be

implemented, as required by section 246(a)(2) of the CAA. In Indiana,

the applicable areas defined by section 246(a)(2) are Lake and Porter

Counties.

Section 19-3-1 defines the CFFP's covered area as Lake and Porter

Counties. These are the same counties as required by the CAA.

B. Definitions

Sections 241(1) through (7) of the CAA, and 40 CFR 88.302-94,

define specific terms that are to be used in state CFFP regulations.

Section 19-3-2 contains definitions of the terms used by Indiana in

the CFFP rule. The revision's definitions are consistent with section

241(1) through (7) of the CAA as well as 40 CFR Part 88.302-94.

C. Fleet Applicability

Section 246(b) requires that the SIP revision's provisions for

compliance with the CFFP apply to ``covered fleet operators.'' The

definition of ``covered fleet operator,'' as provided for in 40 CFR

88.302-94, can be broken down into the following criteria which the SIP

revision must include in order to determine which fleet operators are

``covered fleet operators:''

(a) The fleet operator is a person (individual, business, agency,

etc;) who owns, operates, leases, or otherwise controls ten or more

fleet vehicles. Vehicles leased for less than 120 days are exempt from

this criteria.

(b) At least ten of those fleet vehicles are in a vehicle class

which is required by the CAA to be covered in the program. These

vehicle classes are light-duty vehicles and light-duty trucks (LDVs and

LDTs) less than 8,500 pounds Gross Vehicle Weight Rating (GVWR) and

heavy-duty trucks (HDTs) less than 26,000 pounds GVWR.

(c) At least ten of those vehicles are not exempt from the program.

Section 241(5) of the CAA exempts motor vehicles held for lease or

rental (without a driver) to the general public, motor vehicles held

for sale by motor vehicle dealers (including demonstration vehicles),

motor vehicles used for motor vehicle manufacturer product evaluations

or tests, law enforcement and other emergency vehicles, and nonroad

vehicles (including farm and construction vehicles).

(d) At least ten of those vehicles operate in the covered area. All

fleet vehicles which are garaged in the covered area are considered to

``operate in the covered area.'' In addition, 40 CFR 88.302-94 provides

that fleet vehicles that operate in, but are garaged outside, the

covered area be included in the CFFP. This means that fleet vehicles

garaged outside the Lake and Porter Counties but nonetheless operated

in those counties are applicable to the CFFP rules.

(e) At least ten of those vehicles can be centrally fueled 100

percent of the time. ``Can be centrally fueled,'' as defined in 40 CFR

88.302-94, means the sum of those vehicles that are centrally fueled

and those vehicles that are capable of being centrally fueled. Fleet

vehicles are ``centrally fueled'' when they are fueled 100 percent of

the time at a location that is owned, operated, or controlled by the

covered fleet operator, or is under contract with the covered fleet

operator. Location, as defined in 40 CFR 88.302-94(3), means any

building structure, facility, or installation which; is owned or

operated by a person, or is under the control of a person; is located

on one or more contiguous properties and contains or could contain a

fueling pump or pumps for the use of the vehicles owned or controlled

by that person. Any vehicle under normal operation which is garaged at

a personal residence that is, in fact, centrally fueled 100 percent of

the time shall be considered to be ``centrally fueled'' for

applicability purposes.

On the other hand, a fleet vehicle that is ``capable of being

centrally fueled'' is one which could be refueled 100 percent of the

time at a location that is owned, operated, or controlled by the

covered fleet operator, or is under contract with the fleet operator.

Fleet vehicles garaged at a personal residence would not be considered

being ``capable of being centrally fueled'' for applicability purposes.

A state must, in its SIP revision, provide a methodology to be used in

determining how many fleet vehicles are capable of being centrally

fueled, subject to USEPA approval.

Section 19-3-1 and 19-3-2 of the Indiana rule contain all the

necessary components for determining covered fleet operator

applicability as described above. Further, the rule states in

subsection 19-3-2(4) that the determination of ``capable of being

centrally fueled'' shall be made by using USEPA's recommended method

provided on December 9, 1993 (58 FR 64684), as amended on September 30,

1994 (59 FR 50068). This method includes requiring covered fleet

operators which control vehicles which are not centrally fueled 100

percent of the time to develop trip profiles which indicate the

refueling patterns of those vehicles. These trip profiles will, in

turn, be used to calculate the number of vehicles in the fleet which

are capable of being centrally fueled.

D. Clean-Fuel Vehicles (CFVs)

Section 241(7) of the CAA defines a CFV to mean a vehicle in a

class or category of vehicles that has been certified to meet for any

model year the applicable CFV standards. 40 CFR 88.104-94 and 40 CFR

88.105-94 establish three categories of increasingly stringent CFV

standards, which are referred to as low-emission vehicle (LEV)

standards, ultra low-emission vehicle (ULEV) standards, and zero-

emission vehicle (ZEV) standards.

Section 19-3-2(7) of the Indiana rule defines a CFV as a vehicle

certified as a LEV, ULEV, or ZEV when it is operating on the clean fuel

for which the vehicle was certified as a clean fuel vehicle, meeting

the emissions standards applicable to such a vehicle promulgated

September 30, 1994 at 59 FR 50042. The standards specified in the rule

are the same as those established in 40 CFR 88.104-94 and 40 CFR.105-

94.

E. Percentage Requirements

Section 246(b) of the CAA provides that the SIP revision require

that at least a specified percentage of all new covered fleet vehicles

in MY 1998 and thereafter purchased by each covered fleet operator

shall be CFVs, and that these CFVs shall use the clean fuel or fuels

for which they were certified to operate on when operating in the

covered area.

``New covered fleet vehicle,'' for purposes of this requirement,

means a vehicle that has not been previously controlled by the current

purchaser, regardless of the MY, except as follows: vehicles that were

manufactured before the start of MY 1998 for such vehicle's weight

class, vehicles transferred due to the purchase of a company not

previously controlled by the purchaser or due to a consolidation of

business operations, vehicles transferred as part of an employee

transfer, or vehicles transferred for seasonal requirements, that is,

less than 120 days (See 40 CFR

[[Page 11554]]

88.302-94). This definition of new covered fleet vehicle is distinct

from the definition of new vehicle as it applies to manufacturer

certification, including the certification of vehicle to clean fuel

standards.

Further, section 246(b) of the CAA provides the following table

detailing the phase-in of the specified percentage requirements, which

must be included in the SIP revision:

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MY 1998 MY 1999 MY 2000

Vehicle type (percent) (percent) (percent)

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LDTs up to 6000 lbs. GVWR and LDVs.............................. 30 50 70

HDTs above 8,500 lbs. GVWR but below 26,000 lbs. GVWR........... 50 50 50

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As an alternative to purchasing CFVs to meet the purchase

requirement, section 246 allows fleet operators to redeem CFFP credits

instead (the CFFP credit provisions are described in further detail

below). Also, section 247 provides that new or existing vehicles owned

or purchased by the fleet can be converted to meet CFV standards, if

the conversions were made according to requirements promulgated at 40

CFR 88.306. (See September 30, 1994, at 59 FR 50042).

Finally, section 246(d) of the CAA requires that the choice of CFVs

and clean fuels shall be at the discretion of the covered fleet

operators.

The Indiana rule correctly incorporates all of the above required

percentage purchase requirements which will be placed upon covered

fleet operators. It also includes the three ways listed above to comply

with the purchase requirement. Section 19-3-3(d) of the Indiana rule

provides that the fleet operator shall decide which CFVs and fuels to

use in order to comply with the purchase requirement. Section 19-3-3(f)

requires that CFVs used to meet purchase requirements or generate

credits shall operate at all times on the fuel for which they were

certified as CFVs in Lake and Porter Counties. Finally, the rule

requires at section 3(b) that CFV conversions must be done in

accordance with the requirements for CFV conversions contained in 59 FR

50042, September 30, 1994.

G. Credit Program

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

implement a credit program as part of their CFFPs. Briefly, the CFFP

credit program establishes a market-based mechanism that allows fleet

owners some flexibility in complying with the CFFP purchase

requirement. The regulations under 40 CFR 88.304-94 require CFFPs to

allow fleet operators to generate credits in any of the following ways:

(1) by the purchase of more CFVs than the minimum required by a CFFP;

(2) by the purchase of CFVs which meet more stringent emission

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

CFVs otherwise exempt from the CFFP; and (4) by the purchase of CFVs

before MY 1998.

40 CFR 88.304-94 further states that the credits generated may be

used by a covered fleet operator to satisfy the purchase requirements

of a CFFP or may be traded by one covered fleet operator to another,

provided the credits were generated, traded, and used by operators

located in the same nonattainment area. Lake and Porter Counties are in

the same ozone nonattainment area as the Chicago area (as codified in

40 CFR 81.314 and 40 CFR 81.315), so that fleet operators covered under

the Indiana CFFP can trade credits with fleet operators covered under

the Illinois CFFP for the Chicago area portion of the ozone

nonattainment area, and vice versa. Certain restrictions on the trading

of the credits between classes must be observed. The credits do not

depreciate with time and are to be freely traded without interference

by the State.

Section 19-3-4 establishes rules for acquiring, trading and

redeeming credits under the Indiana CFFP credit program according to

regulations established in 40 CFR 88.304-94. The rule under 19-3-

4(d)(4) requires credits for LDV and HDV to be kept separate. Trading

of credits between the LDV and LDT subclasses is permitted. However,

trading is not allowed between the HDV class and LDV/LDT class, or

between HDV subclasses in an upward direction. These limitations and

restrictions are consistent with those specified in section 246(f)(2)

of the CAA. Moreover, section 19-3-4(a)(11) specifies that CFVs used to

meet the purchase requirements or to generate purchase credits for a

fleet operator cannot be used to satisfy additional purchase

requirements or generate additional purchase credits for any other

fleet operator, even if the latter operator purchases or acquires those

CFVs from the former. Section 19-3-4(e) of the Indiana rule includes

tables which set forth the amount of credit granted for the various

ways of meeting the purchasing requirements explained above. These

tables are identical to Tables C94-1.1, C94-1.2, C94-1.3, C94-4.1, C94-

4.2, and C94-4.3 of 40 CFR Part 88, Subpart C.

Finally, the rule specifies that each fleet operator submit an

annual report to IDEM which indicates the number of credits sold,

traded, or purchased during the previous year and the number of credits

proposed to be used by the operator to satisfy purchase requirements

for that year.

H. Fuel Use

40 CFR 88.304-94(b)(3) requires that the fuel on which a dual fuel/

flexible fuel CFV was certified must be used at all times when the

vehicle is in the covered area.

Section 19-3-3(f) requires that any CFV acquired to meet the

purchase requirements of the CFFP or to generate credits must be

operated, while in the covered area, on the fuel or power source for

which it was certified by USEPA to meet applicable emission standards.

It should be noted that the definition of ``clean alternative

fuel'' under section 241(2) of the CAA does not designate particular

fuels as fuels that vehicles must use in order to be considered CFVs.

Rather, for purposes of the CFFP, ``clean alternative fuel,'' is

defined under section 241(2) of the CAA as meaning any fuel or power

source used in a CFV that complies with the standards and requirements

applicable to such vehicle under the CFFP when using such fuel or power

sources. In other words, when a vehicle model is certified to meet CFV

emission standards, the fuel type the vehicle model used to achieve

those standards is considered the ``clean alternative fuel.''

A CFV can operate on any fuel, including gasoline, as long as the

vehicle's manufacturer received a certificate from the USEPA for that

vehicle model confirming that it meets the particular CFV emission

standard when using that fuel. The type of fuel or power source on

which a CFV will operate on will be determined only by what fuel the

CFV has been certified to use.

I. Fuel Availability:

Section 246(e) of the CAA requires the SIP revision to require fuel

providers to

[[Page 11555]]

make clean alternative fuel available to the covered fleets at central

locations.

Because fuel providers in Lake and Porter Counties are already

required by USEPA to make reformulated gasoline available, and USEPA

expects that many CFVs in MY 1998 will be certified to operate on

reformulated gasoline, USEPA believes that section 246(e) is satisfied

for purposes of the Indiana CFFP.

J. Consultation

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

developed in consultation with fleet operators, vehicle manufacturers,

fuel producers, distributors of motor vehicle fuel, and other

interested parties, taking into consideration operational range,

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

values, and other relevant factors.

On October 14, 1994, before the IAPCB preliminarily adopted the

CFFP, IDEM sent a letter, addressed to 250 representatives of fleet

operators and fuel providers expected to be affected by the Indiana

CFFP, which described the program, solicited comment on the proposed

rule, invited the representatives to participate with IDEM in the

program's development, and invited them to attend the IAPCB preliminary

adoption hearing.

On August 31, 1995, before the IAPCB adopted the CFFP, IDEM sent a

letter to these same representatives inviting them to attend an

informational session where IDEM and the regulated community could meet

together to discuss the CFFP and be given further opportunity to

comment on the rule. This meeting was held in Portage, Indiana on

September 20, 1995.

K. Recordkeeping and Monitoring

USEPA recommends that the State include recordkeeping provisions in

its CFFP that require fleet operators to register with the State in

advance of MY 1998 in order to provide information to be used to

determine their covered status, require annual reports from covered

fleet operators indicating annual fleet acquisitions, fuel use, and

credit generation/redemption to determine compliance, and require

covered and noncovered fleet operators to submit periodic reports

indicating covered status (See 58 FR at 64679, December 9, 1993).

Section 19-3-5 provides for recordkeeping and reporting

requirements as described above. In addition, 19-3-5 requires that

information required in the annual report, as well as routine

maintenance records for all vehicles, shall be maintained by the

covered fleet operator for compliance audit purposes. Monthly odometer

readings, fuel economy information, and fuel usage for dual fuel or

flexible-fuel vehicles also need to be kept, as well as copies of

converted vehicle certification for all converted clean-fuel vehicles.

CFVs shall at all times be accompanied by certification that they are

CFVs.

L. Enforcement

40 CFR 88.304-94(b)(ii) requires that each CFFP SIP revision

stipulate the specific mechanism by which the CFFP will be administered

and enforced.

IDEM will oversee compliance and enforcement with this rule, and

will hire contractors to review the annual recordkeeping reports to

assure the regulatory requirements of the Indiana CFFP are being met.

The Indiana Code (IC) 13-7-13-1, states that any person who

violates any provision of IC 13-1-1, IC 13-1-3, or IC 13-1-11, or any

regulation or standard adopted by one (1) of the boards (i.e., IAPCB),

or who violates any determination, permit, or order made or issued by

the commissioner (of IDEM) pursuant to IC 13-1-1, or IC 13-1-3, is

liable for a civil penalty not to exceed twenty-five thousand dollars

per day of any violation. Because this submittal is a regulation

adopted by the IAPCB, a violation of which subjects the violator to

penalties under IC 13-7-13-1, and because a violation of the ozone SIP

would also subject a violator to enforcement under section 113 of the

CAA by USEPA, USEPA finds that the submittal contains sufficient

enforcement penalties for approval. In addition, IDEM has submitted a

civil penalty policy document which accounts for various factors in the

assessment of an appropriate civil penalty for noncompliance with IAPCB

rules, among them, the severity of the violation, intent of the

violator, and frequency of violations. USEPA finds these criteria

sufficient to deter non-compliance.

M. Transportation Control Measure Exemptions

40 CFR 88.307-94(a) requires states to exempt any CFV required by

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

day-of-week) transportation control measures (TCM) existing for air

quality reasons as long as the exemption does not create a clear and

direct safety hazard. In the case of high occupancy vehicle (HOV)

lanes, this exemption only applies to CFVs that are certified by USEPA

to be inherently low-emitting vehicles (ILEV) pursuant to 40 CFR

88.313-93.

Section 19-3-6 stipulates that CFVs shall receive TCM exemptions

from time-of-day, day-of-the-week, day-of-the-month, or other similar

time-based restrictions. Further, ILEVs shall be exempt from mechanisms

designed to reduce air pollution from motor vehicles by limiting their

use in certain areas, air quality related parking restrictions, and HOV

lane restrictions.

N. Conclusion

The USEPA has reviewed the Indiana CFFP SIP revision submitted to

the USEPA as described above. The materials contained in the SIP

revision represent an acceptable approach to the CFFP requirements and

meet the criteria required for approvability. The USEPA therefore

approves Indiana's CFFP SIP submittal. With this action, USEPA

incorporates Indiana's CFFP SIP revision into the SIP, making it

federally enforceable.

Procedural Background

A. Direct Final Action

The USEPA is publishing this action without prior proposal because

USEPA views this action as a noncontroversial revision and anticipates

no adverse comments. However, USEPA is publishing a separate document

in this Federal Register publication, which constitutes a ``proposed

approval'' of the requested SIP revision and clarifies that the

rulemaking will not be deemed final if timely adverse or critical

comments are filed. The ``direct final'' approval shall be effective on

May 20, 1996, unless USEPA receives adverse or critical comments by

April 22, 1996. If USEPA receives comments adverse to or critical of

the approval discussed above, USEPA will withdraw this approval before

its effective date by publishing a subsequent Federal Register document

which withdraws this final action. All public comments received will

then be addressed in a subsequent rulemaking document. Any parties

interested in commenting on this action should do so at this time. If

no such comments are received, USEPA hereby advises the public that

this action will be effective on May 20, 1996.

B. Executive Order 12866

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

by the Regional Administrator under the procedures published in the

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

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

for Air and Radiation. The Office of Management and Budget (OMB) has

[[Page 11556]]

exempted this regulatory action from Executive Order 12866 review.

C. Applicability to Future SIP Decisions

Nothing in this action should be construed as permitting, allowing

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

SIP. USEPA shall consider each request for revision to the SIP in light

of specific technical, economic, and environmental factors and in

relation to relevant statutory and regulatory requirements.

D. Unfunded Mandates

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

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

USEPA prepare a budgetary impact statement before promulgating a rule

that includes a Federal mandate that may result in expenditure by

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

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

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

educating, and advising any small governments that may be significantly

or uniquely affected by the rule.

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

identify and consider a reasonable number of regulatory alternatives

before promulgating a rule for which a budgetary impact statement must

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

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

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

alternative is not selected or the selection of this alternative is

inconsistent with law.

This final rule only approves the incorporation of existing state

rules into the SIP and imposes no additional requirements. This rule is

estimated to result in the expenditure by State, local, and tribal

governments or the private sector of less than $100 million in any one

year. USEPA, therefore, has not prepared a budgetary impact statement

or specifically addressed the selection of the least costly, most cost-

effective, or least burdensome alternative. Furthermore, because small

governments will not be significantly or uniquely affected by this

rule, the USEPA is not required to develop a plan with regard to small

governments.

E. Regulatory Flexibility

Under the Regulatory Flexibility Act, 5 U.S.C. section 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.

sections 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 section 110 and subchapter I, part D of the

Clean Air Act do not create any new requirements, but simply approve

requirements a State has already imposed. 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 the

State action. The Clean Air Act forbids USEPA to base its actions

concerning SIPs on such grounds. Union Electric Co. v. USEPA., 427 U.S.

246, 256-66 (S.Ct. 1976); 42 U.S.C. section 7410(a)(2).

F. Petitions for Judicial Review

Under section 307(b)(1) of the Clean Air Act, 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 the purposes of judicial

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

review may be filed, and shall not postpone the effectiveness of such

rule or action. This action may not be challenged later in proceedings

to enforce its requirements. (See Section 307(b)(2)).

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Incorporation by reference, Ozone, Motor vehicle pollution, Reporting

and recordkeeping requirements.

Dated: February 29, 1996.

Valdas V. Adamkus,

Regional Administrator.

For the reasons stated in the preamble, 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)(104) to read

as follows:

Sec. 52.770 Identification of plan.

* * * * *

(c) * * *

(104) On December 20, 1995, and February 14, 1996, Indiana

submitted a Clean-Fuel Fleet Program for Lake and Porter Counties as a

revision to the State Implementation Plan.

(i) Incorporation by reference. 326 Indiana Administrative Code 19-

3 Clean Fuel Fleet Vehicles, Sections 1 through 7. Adopted by the

Indiana Air Pollution Control Board October 4, 1995. Signed by the

Secretary of State December 19, 1995. Effective January 18, 1996.

Published at Indiana Register, Volume 19, Number 5, February 1, 1996.

[FR Doc. 96-6597 Filed 3-20-96; 8:45 am]

BILLING CODE 6560-50-P