Approval and Promulgation of Air Quality State Implementation Plans (SIP); Louisiana: Motor Vehicle Inspection and Maintenance (I/M) Program

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[LA-33-1-7191; FRL-5837-7]

Approval and Promulgation of Air Quality State Implementation

Plans (SIP); Louisiana: Motor Vehicle Inspection and Maintenance (I/M)

Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA is proposing a conditional approval of an I/M program

proposed by the State, based upon the revision complying with the Clean

Air Act (the Act). This action is taken under section 110 of the Act.

The EPA is proposing a conditional approval because the State's SIP

revision is lacking legislative authority needed for continuous

implementation of the program.

If the State corrects this deficiency, then the State's I/M

submittal will be fully approved into the SIP. If the condition is not

met within one year, EPA proposes to disapprove the SIP revision. The

EPA will notify the State by letter that the condition has not been met

and that the conditional approval has converted to a disapproval.

Furthermore, EPA is proposing that the State's program must start no

later than January 1, 1999, in the I/M program area.

DATES: Comments must be received on or before July 9, 1997.

ADDRESSES: Written comments on this action should be addressed to Mr.

Thomas H. Diggs, Chief, Air Planning Section, at the EPA Regional

Office listed below. Copies of the documents relevant to this action

are available for public inspection during normal business hours at the

following locations. Persons interested in examining these documents

should make an appointment with the appropriate office at least 24

hours before the visiting day.

Environmental Protection Agency, Region 6, Air Planning Section (6PD-

L), 1445 Ross Avenue, Suite 700, Dallas, Texas 75202-2733.

Louisiana Department of Environmental Quality, Air Quality Compliance

Division, 7290 Bluebonnet, 2nd Floor, Baton Rouge, Louisiana.

Louisiana Department of Environmental Quality Capital Regional Office,

11720 Airline Highway, Baton Rouge, Louisiana.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra G. Rennie, Air Planning

Section (6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-

2733, telephone (214)665-7367.

I. Background

On November 15, 1993, and in several later submittals, the State of

Louisiana submitted plans for an I/M program in response to the

requirements of the Act and Federal I/M rules promulgated on November

5, 1992. The Region made a determination that the plan was incomplete

and issued a finding letter on February 22, 1994. This started both the

sanction and Federal Implementation Plan clocks. The State worked

toward correcting deficiencies in their submittal. On August 22, 1995,

the State submitted a revised plan. The Region determined the plan to

be administratively complete, thereby stopping the sanction clock.

Several approvability issues (some legislative) remained to be resolved

before the plan could be approved by the EPA. The Region worked with

the Louisiana Department of Environmental Quality (LDEQ) to identify

acceptable approaches on all approvability issues. At the same time,

various states desired greater flexibility in implementing their I/M

programs. In response to this desire, on September 18, 1995, EPA

revised and finalized I/M rules which gave states much greater

flexibility in implementing their I/M programs. One element of the I/M

flexibility amendments included a provision for a new low enhanced

performance standard which would allow for less stringent I/M programs

if other required air quality goals were met. In response to the I/M

flexibility rules and meetings with EPA, the State submitted its

revisions to the SIP on May 30, 1996.

The Louisiana SIP revision was not submitted under the National

Highway Systems Designation Act of 1995, nor are SIP credits taken for

the I/M plan in the 15% Rate-of-Reduction Plan. The May 30, 1996,

submittal addressed many of EPA's concerns, with the exception of the

legislative constraints in the Louisiana I/M legal authority, which

hindered expeditious implementation. The deficiency in the plan is a

provision which requires the Louisiana Legislature to reauthorize the

plan in 1997 and every other year thereafter, based on a determination

whether the plan should proceed or continue with implementation. The

EPA is proposing approval of the plan allowing the January 1, 1999,

start date for reasons which are explained later in this action.

Furthermore, EPA believes that in taking action under section 110

of the Act, it is appropriate to propose granting a conditional

approval to this submittal since there is a deficiency with respect to

the Act's statutory and regulatory requirements (identified herein)

that EPA believes can be corrected by the State during the following 12

months.

II. EPA's Analysis of Louisiana's Submittal

Louisiana submitted its revised I/M program to EPA Region 6 on

August 18, 1995. It contained a SIP narrative, proposed emergency I/M

Rules, and several appendices addressing the requirements of the I/M

program. Another revision to the I/M SIP was received in the Region 6

office on December 27, 1995; it included finalized rules and responses

to comments collected during the State's public comment period. A third

revision with additional modeling and LDEQ's resolution responses to

EPA's approvability issues was received on May 30, 1996. The submittals

were intended to fulfill the requirements of the Act for the ozone

nonattainment area of Louisiana which is required to implement an I/M

program.

As outlined in the SIP revision of May 30, 1996, the additional

program elements that the State intends to support include: (1) The

LDEQ completing and signing a Memorandum of Understanding with the

Department of Public Safety prior to the program implementation date to

establish the details concerning responsibilities of both agencies in

the administration of the vehicle I/M program, (2) the LDEQ performing

mass emission testing on .1 percent of the vehicles in the program in

accordance with CFR 51.353(c)(3), (3) the LDEQ revising the I/M rule

(LAC 33:III.1917) prior to program start-up to allow for a minimum

expenditure of $450 (with a CPI escalator) before a waiver may be

obtained, and (4) the LDEQ providing a hot line service through its

currently operating toll free number to assist repair technicians and

answer questions regarding the program. The other comments and

questions stated in our letter reflected a comparison of the revised

Louisiana I/M SIP with the Federal I/M rules.

The EPA reviewed the State's submittal against the requirements

contained in the Act and Federal I/M rules (40 CFR part 51, subpart S).

The EPA also reviewed the State responses to comments which were in

large part satisfactory to EPA. The major deficiency of continuing

legislative authority outlined in this document can be corrected in the

1997 Louisiana legislative session. This deficiency is the current need

for program reauthorization in odd-numbered years

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starting with 1997. The State must correct this major deficiency within

12 months after the date of approval of the plan revision or this

approval will automatically convert to a disapproval under the Act

section 110(k)(4). The State must correct this deficiency during the

1997 Legislative Session to support full approval of its I/M SIP.

The following analysis addresses how the State intends to fulfill

the requirements of the Federal I/M rules. This analysis assumes the

State corrects the deficiency stated above. A more detailed analysis of

the State submittals and a copy of EPA's comments on the plan are

included in the Technical Support Document for this action and may be

obtained from the EPA Region 6 office. A summary of the EPA's findings

follows.

Section 51.350 Applicability

The SIP needs to describe the applicable areas in detail and,

consistent with section 51.372 of the Federal I/M rule, shall include

the legal authority or rules necessary to establish program boundaries.

The Louisiana regulations specify that an I/M program will be

implemented in the Baton Rouge ozone nonattainment area. A low enhanced

I/M program will be implemented in Ascension, East Baton Rouge,

Iberville, Livingston, Pointe Coupee, and West Baton Rouge Parishes.

The State meets the applicability requirements for a conditional

approval.

Section 51.351-2 Low Enhanced I/M Performance Standard

The I/M program provided for in the SIP is required to meet a

performance standard, either basic or enhanced as applicable. The

performance standard sets an emission reduction target that must be met

by a program in order for the SIP to be approvable. The SIP must also

provide that the program will meet the performance standard in actual

operation, with provisions for appropriate adjustments if the standard

is not met. Equivalency of emission levels needed to achieve the I/M

program design in the SIP to those of the model program described in

this section must be demonstrated using the most current version of

EPA's mobile source emission model, or an alternative approved by the

Administrator.

The approved 15% Rate-of-Progress Plan for this area can be met

without an I/M program (published Tuesday, October 22, 1996, at 61 FR

54747). The State has submitted a modeling demonstration using the EPA

computer model MOBILE5a showing that the low enhanced performance

standard can be met in the Baton Rouge area. In order to meet the low

enhanced standard, Louisiana included a complementary remote-sensing

program for inspecting off-cycle vehicles. Projections of oxides of

nitrogen (NOx) emissions were not included in anticipation

of EPA approval of NOx waivers for Baton Rouge, which were

approved on January 26, 1996 and February 27, 1996. Vehicles 25 years

and older, and vehicles four years old and newer, will not be required

to participate in the I/M program. The State is modeling with a test

and repair program which assumes a 50 percent credit for network

credits. The State meets the requirement for a low enhanced I/M

performance standards for conditional approval.

Section 51.353 Network Type and Program Evaluation

The SIP needs to include a description of the network to be

employed, and the required legal authority. Also, for enhanced areas,

the SIP needs to include a description of the evaluation schedule and

protocol, the sampling methodology, the data collection and analysis

system, the resources and personnel for evaluation, and related details

of the evaluation program, and the legal authority enabling the

evaluation program.

The State will be implementing a decentralized test and repair

program. The program includes an on-going evaluation process with

results reported to EPA on a biennial basis in July, starting two years

after the initial start of mandatory testing. Surveys assessing

effectiveness, measured rates of tampering, and results of covert

audits will be reported. In addition, the SIP commits to meet the

ongoing program evaluation of mass emission testing of at least .1

percent of subject vehicles and reporting the results of such

evaluation on a biennial basis. Resources and personnel for the program

evaluation are described in the SIP. Legal authority, which is

contained in the Louisiana Administrative Code (LAC 33:III, Chapter 19,

Subchapter A), authorizes the LDEQ to implement the program and conduct

the program evaluation. The State meets the requirement for network

type and program evaluation for conditional approval.

Section 51.354 Adequate Tools and Resources

The SIP needs to include a description of the resources that will

be used for program operation and discuss how the performance standard

will be met which includes: (1) A detailed budget plan which describes

the source of funds for personnel, program administration, program

enforcement, purchase of necessary equipment (such as vehicles for

undercover audits), and any other requirements discussed throughout,

for the period prior to the next biennial self-evaluation required in

the Federal I/M rule; and (2) a description of personnel resources. The

plan shall include the number of personnel dedicated to overt and

covert auditing, data analysis, program administration, enforcement,

and other necessary functions and the training attendant to each

function.

Louisiana R.S. 30:2054.B(8) authorizes the program to charge an

emission inspection fee and a safety/anti-tampering inspection fee. If

Intermodal Surface Transportation Efficiency Act funds are available,

the emission fee will be $10. If not, the fee will be $20 biennially.

The safety/anti-tampering fee will be $5. The SIP narrative also

describes the budget, staffing support, and equipment needed to

implement the program. The State has committed to employ and train 12

employees at the start of the program, beginning in 1999, and increase

this to 15 employees in the year 2000. The State meets the requirement

for adequate tools and resources for conditional approval.

Section 51.355 Test Frequency and Conveniencee

The SIP needs to describe the test schedule in detail, including

the test year selection scheme if testing is other than annual. Also,

the SIP needs to include the legal authority necessary to implement and

enforce the test frequency requirement and explain how the test

frequency will be integrated with the enforcement process. In addition,

in enhanced I/M programs, test systems shall be designed to provide

convenient service to motorists who are required to get their vehicles

tested. The SIP needs to demonstrate the network of stations providing

test services is sufficient to insure short waiting times to get a test

and short driving distances.

The revised Louisiana I/M SIP commits to testing all designated

vehicles that are between four and twenty-four years old. Inspections

will be required biennially to correspond with vehicle registration.

Private sales of vehicles more than two years old require vehicles to

be tested before title transfer. In addition, at least 10 percent of

the vehicle population will be subject to remote sensing. The program

is decentralized and stations will adhere to regular inspection hours.

The network of stations will consist of familiar locations where

motorists

[[Page 31390]]

regularly receive other vehicle services. Louisiana R.S. 30:2054(B)(8)

and LAC 33:III. Chapter 19. Subchapter A are the legal authority for

implementation of the test frequency. The State meets the requirement

for test frequency and convenience for conditional approval.

Section 51.356 Vehicle Coverage

The rule requires 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. Also, the

SIP needs to include a description of any special exemptions which will

be granted by the program, and an estimate of the percentage and number

of subject vehicles which will be impacted. Such exemptions need to be

accounted for in the emission reduction analysis. In addition, the SIP

needs to include the legal authority or rule necessary to implement and

enforce the vehicle coverage requirement.

The revised Louisiana I/M SIP includes coverage of 1968 and newer

light-duty vehicles and light and heavy-duty trucks registered or

required to be registered in the I/M program area, including fleets. In

addition, vehicles which are operated on Federal installations, or are

stationed in the I/M program area but display Federal or other

political division license plates are subject to inspection. Subject

vehicles will be identified through the Department of Motor Vehicle

database and from lists supplied by Federal facilities identifying

stationed vehicles. The State statute allows exemption from the program

for motorcycles, mobile equipment, fire engines, antique vehicles,

heavy trucks, electric vehicles, golf carts, off-road vehicles, and

vehicles displaying apportioned license plates. An estimated 475,000

vehicles from all the required groups combined will be subject to

inspection. Legal authority for vehicle coverage is contained in the

Louisiana I/M rule. The State meets the requirement for vehicle

coverage for conditional approval.

Section 51.357 Test Procedures and Standards

The SIP needs to include a description of each test procedure used.

The SIP also needs to include the rule, ordinance or law describing and

establishing the test procedures.

Vehicles tested in the program shall be subject to a two speed idle

test. Idle test procedures shall meet requirements in Appendix B of the

Federal I/M rule. Idle test emission standards are contained in the SIP

modeling analysis and are consistent with the Federal I/M rule. In

addition, the SIP states that vehicles shall receive a gas cap

integrity test in accordance with EPA procedures. Test procedures and

standards are established in Louisiana Air Regulations, LAC 33:III,

Chapter 19, Subchapter A. The State meets the requirement for test

procedures and standards for conditional approval.

Section 51.358 Test Equipment.

The SIP needs to include written technical specifications for all

test equipment used in the program and needs to address each of the

requirements contained in 40 CFR 51.358 of the Federal I/M Rule. The

specifications need to describe the emission analysis process, the

necessary test equipment, the required features, and written acceptance

testing criteria and procedures.

The revised Louisiana I/M SIP states that all test equipment

specifications will be consistent with that described in 40 CFR part

51, subpart S. In addition, the gas cap integrity test will be in

accordance with EPA equipment specifications. The State meets the

requirement for test equipment for conditional approval.

Section 51.359 Quality Control

The SIP needs to include a description of quality control and

record keeping procedures. The SIP needs to include the procedure

manual, rule, ordinance or law describing and establishing the quality

control procedures and requirements.

The revised Louisiana I/M SIP states that the quality control

procedures will be conducted in accordance with the Federal I/M rule

Appendix A. These requirements will help ensure that equipment

calibrations are properly performed and recorded while maintaining

compliance document security. Equipment manufacturers' quality control

procedures, periodic maintenance schedules, and calibration procedures

will be performed to ensure proper operation of the test equipment. The

State meets the requirement for quality control for conditional

approval.

Section 51.360 Waivers and Compliance Via Diagnostic Inspection

The SIP needs to include a maximum waiver rate expressed as a

percentage of initially failed vehicles. This waiver rate needs to be

used for estimating emission reduction benefits in the modeling

analysis. Also, the State needs to take corrective action if the waiver

rate exceeds that committed to in the SIP, or revise the SIP and the

emission reductions claimed accordingly. In addition, the SIP needs to

describe the waiver criteria and procedures, including cost limits,

quality assurance methods and measures, and administration. Lastly, the

SIP needs to include the necessary legal authority, ordinance, or rules

to issue waivers, set and adjust cost limits as required, and carry out

any other functions necessary to administer the waiver system,

including enforcement of the waiver provisions.

Cost limits for the minimum expenditure waiver will be $450

adjusted annually in accordance with the Clean Air Act and Federal I/M

rules. The revised Louisiana I/M program includes waiver rates of 3

percent of initially failed vehicles. These waiver rates are used in

the modeling demonstration. The LDEQ commits in the SIP that if the

waiver rates are higher than estimated, the State will take corrective

action to address the deficiency. The SIP describes three types of

waivers the State will allow. These include a minimum expenditure

waiver, economic hardship waiver, and a waiver for vehicles unavailable

for inspection. Vehicles unavailable for inspection are subject

vehicles that are stationed outside the program area and cannot be

easily returned for inspection when registration renewal is due. These

vehicle owners must present proof of such stationing (military orders,

school registration, or other acceptable documentation) to the

administrative authority. Documentation must be presented to receive a

time extension for renewal if the vehicle is stationed in an area with

no I/M program. If the vehicle is stationed in an area with an I/M

program, a reciprocal emissions test is required so that vehicle

complies with the requirements of that area. The waiver issuance

criteria and procedures used will be consistent with those required in

the Federal I/M Rule. Issuing authority and the waiver criteria,

including the minimum expenditure requirements, are contained in the

Louisiana I/M rule. The State meets the waivers and compliance via

diagnostic inspection requirement for conditional approval.

Section 51.361 Motorist Compliance Enforcement

The SIP needs to provide information concerning the enforcement

process, including: (1) A description of the existing compliance

mechanism if it is to be used in the future and the demonstration that

it is as effective or more effective than registration-denial

enforcement; (2) an identification of the agencies responsible for

performing each of the applicable activities in this

[[Page 31391]]

section; (3) a description of and accounting for all classes of exempt

vehicles; and (4) a description of the plan for testing fleet vehicles,

rental car fleets, leased vehicles, and any other subject vehicles,

e.g., those operated in (but not necessarily registered in) the program

area. Also, the SIP needs to include a determination of the current

compliance rate based on a study of the system that includes an

estimate of compliance losses due to loopholes, counterfeiting, and

unregistered vehicles. Estimates of the effect of closing such

loopholes and otherwise improving the enforcement mechanism shall be

supported with detailed analyses. In addition, the SIP needs to include

the legal authority to implement and enforce the program. Lastly, the

SIP needs to include a commitment to an enforcement level to be used

for modeling purposes and to be maintained, at a minimum, in practice.

The State has chosen to enforce the I/M program with registration

denial, suspension or revocation of registration, impoundment and

cancellation of license plates and mandatory monetary penalties. The

motorist compliance enforcement program will be handled cooperatively

by the Department of Public Safety and Corrections (DPSC), local law

enforcement agencies, and the LDEQ. There are no classes of on-road

exempt vehicles. Fleet vehicles will be allowed to conduct self-testing

provided that they meet the required equipment standards, are certified

by the administrative authority, and tests are performed in accordance

with established inspection procedures. Motorists operating vehicles in

the I/M areas with an expired or invalid registration will be subject

to penalties and/or citations by local and state law enforcement

officials. The SIP anticipates a compliance rate of 96 percent through

cooperation with the DPSC. The legal authority to implement and enforce

the program is included in the Louisiana statutes and regulations cited

in the SIP. The State meets the requirement for motorist compliance

enforcement for conditional approval.

Section 51.362 Motorist Compliance Enforcement Program Oversight

The SIP needs to include a description of enforcement program

oversight and information management activities.

The Louisiana I/M SIP provides for regular auditing of its

enforcement efforts and for following effective management practices,

including adjustments to improve the program when necessary. The

program oversight and information management activities listed in the

SIP narrative include procedures for I/M document handling and

processing, audit procedures, procedures for dealing with motorists and

inspection facilities suspected of violating program rules, an on-line

telecommunication network to support the State's oversight and

management requirements, and an I/M database which will be compared to

the registration database to determine program effectiveness. The State

meets the motorist compliance enforcement program oversight requirement

for conditional approval.

Section 51.363 Quality Assurance

The SIP needs to include a description of the quality assurance

program, and written procedures manuals covering both overt and covert

performance audits, record audits, and equipment audits. This

requirement does not include materials or discussion of details of

enforcement strategies that would ultimately hamper the enforcement

process.

The revised Louisiana I/M SIP includes a description of its quality

assurance program. The program includes both covert and overt audits

which will be conducted on a regular basis. The SIP describes regular

performance audits which include the inspection of records and

equipment. Procedures for program oversight will be based upon written

instructions and will be updated as necessary. The State program meets

the requirement for quality assurance for conditional approval.

Section 51.364 Enforcement Against Contractors, Stations and

Inspectors

The SIP needs to include the penalty schedule and the legal

authority for establishing and imposing penalties, civil fines, license

suspension, and revocations. In the case of state constitutional

impediments to immediate suspension authority, the State Attorney

General needs to furnish an official opinion for the SIP explaining the

constitutional impediment as well as relevant case law. Also, the SIP

needs to 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 other aspects of the enforcement of the

program requirements, the resources to be allocated to this function,

and the source of those funds. In States without immediate suspension

authority, the SIP needs to demonstrate that sufficient resources,

personnel, and systems are in place to meet the three day case

management requirement for violations that directly affect emission

reductions.

In the revised Louisiana I/M SIP the State may assess penalties in

its enforcement against stations and inspectors. A penalty schedule is

included in the Louisiana I/M rule. The SIP describes the enforcement

process. Quality Assurance Officers have immediate suspension

authority. The legal authority for Louisiana to asses penalties is

located in the Environmental Quality Act and Louisiana Air Quality

Regulation, LAC 33:III, Chapter 19, Subchapter A. The authority for

DPSC to deny application for license or revoke or suspend an

outstanding certificate of any inspection station or the certificate of

any person to inspect vehicles is found in the same citations. The

State meets the requirement for enforcement against contractors,

stations and inspectors for conditional approval.

Section 51.365-6 Data Collection, Analysis and Reporting

The SIP needs to describe the types of data to be collected and

reported.

The revised Louisiana I/M SIP provides for collection of test data

to link specific test results to specific vehicles, I/M program

registrants, test sites, and inspectors. The SIP lists the specific

types of test data and quality control data which will be collected to

evaluate program effectiveness. The data collected will be consistent

with that required in the Federal I/M rule. The data will be used to

generate reports in the areas of test data, quality assurance, quality

control, and enforcement. The State meets the data collection, analysis

and reporting requirement for conditional approval.

Section 51.367 Inspector Training and Licensing or Certification

The SIP needs to include a description of the training program, the

written and hands-on tests, and the licensing or certification process.

The revised Louisiana I/M SIP provides for the implementation of

training, certification, and refresher programs for emission

inspectors. The SIP describes this program including hands-on testing.

Inspector licenses or certificates will expire two years after

issuance. All inspectors must be certified to inspect vehicles in the

Louisiana I/M program. The State meets the inspector training and

licensing or certification requirement for conditional approval.

[[Page 31392]]

Section 51.368 Public Information and Consumer Protection

The SIP needs to include a plan for informing the public on an

ongoing basis throughout the life of the I/M program of the air quality

problem, the requirements of Federal and state law, the role of motor

vehicles in the air quality problem, the need for and benefits of an

inspection program, how to maintain a vehicle in a low-emission

condition, how to find a qualified repair technician, and the

requirements of the I/M program. Also, the SIP shall include a detailed

consumer protection plan.

The revised Louisiana I/M SIP commits to the establishment of an

ongoing public awareness plan addressing the significance of the air

quality problem, the requirements of Federal and state law, the role of

motor vehicles in the air quality problem, the needs for and benefits

of an inspection program, the ways to maintain a vehicle in low-

emission condition , how to find a qualified repair technician, and the

requirements of the I/M program. The SIP states that motorists will be

offered general repair information including a list of repair

facilities, information on the results of the repairs by repair

facilities in the area, diagnostic information and warranty

information. The SIP also describes consumer protection provisions

which include challenge/referee facilities, oversight of the program

through the use of audits, and whistle blower protection. The State

meets the public information and consumer protection requirement for

conditional approval.

Section 51.369 Improving Repair Effectiveness

The SIP needs to 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 of the

Federal I/M rule, and a description of the repair technician training

resources available in the community.

The revised Louisiana I/M SIP includes a description of the

technical assistance plan, repair industry performance monitoring plan,

repair technician training assessment, and recognized repair technician

requirements. The State will regularly inform repair facilities

regarding changes to the inspection program, training course schedules,

common problems and potential solutions for particular engine families,

diagnostic tips, repair, and other technical assistance issues. The

LDEQ will also provide a toll-free technical assistance hotline to

assist repair technicians and answer questions from the public. Repair

facility performance monitoring statistics will be available to

motorists whose vehicles fail the I/M test. The State will also ensure

that adequate repair technician training resources are available to the

repair community. The State meets the requirement for improving repair

effectiveness for conditional approval.

Section 51.370 Compliance With Recall Notices

The SIP needs to describe the procedures used to incorporate the

vehicle lists provided into the inspection or registration database,

the quality control methods used to insure that recall repairs are

properly documented and tracked, and the method (inspection failure or

registration denial) used to enforce the recall requirements.

The revised Louisiana I/M SIP commits to cooperating with the EPA

in assisting motorists with vehicle recall issues. Additional

rulemaking by EPA is needed before the State will be able to implement

this provision. The State meets the requirement for compliance with

recall notices for conditional approval.

Section 51.371 On-Road Testing

The SIP needs to include a detailed description of the on-road

testing program, including the types of testing, test limits and

criteria, the number of vehicles (the percentage of the fleet) to be

tested, the number of employees to be dedicated to the on-road testing

effort, the methods for collecting, analyzing, utilizing, and reporting

the results of on-road testing and, the portion of the program budget

to be dedicated to on-road testing. Also, the SIP needs to include the

legal authority necessary to implement the on-road testing program,

including the authority to enforce off-cycle inspection and repair

requirements. In addition, emission reduction credit for on-road

testing programs shall be granted for a program designed to obtain

significant emission reductions over and above those already predicted

to be achieved by other aspects of the I/M program. The SIP needs to

include technical support for the claimed additional emission

reductions.

The revised Louisiana I/M SIP includes a description of its on-road

testing program. The State is planning to use remote sensing as a

complement to their two speed idle test. The State has committed to

cover 0.5 percent of the EPA required subject vehicles. The legal

authority to conduct and enforce on-road testing is in La.

R.S.30:2054(B)(8). On-road testing emission reduction credits are being

used to meet the performance standard. The State meets the on-road

testing requirement for conditional approval.

Section 51.372 State Implementation Plan Submissions

Under section 51.372(a)(6) of the Federal I/M rule, the SIP

submittal should include legal authority for I/M program operation

until such time as it is no longer necessary. Legal authority in the

revised Louisiana SIP is limited to reauthorization by the State

Legislature in odd-numbered years starting in 1997. The EPA considers

this a major deficiency in the SIP. A change in this legal

authorization will be necessary before this I/M SIP becomes fully

approvable.

The revised Louisiana I/M SIP commits to revising the I/M SIP as

new regulations are promulgated, including the provision for revision

as onboard diagnostic checks become available. In addition, the SIP

commits to having all agreements with the DPSC in place prior to start

up, and to have instituted other changes as were previously stated. The

only issue left unresolved is adequate funding through authorization by

the legislature. The issue of adequate funding does not prevent the

State from meeting the requirement for state implementation plan

submissions in this conditional approval.

Section 51.373 Implementation Deadlines

The original Federal I/M rule had a January 1995 start date

requirement, as well as subsequent start dates for special

circumstances. In response to states' requests for greater flexibility

in implementing I/M programs the National Highway System Designation

Act specified a start date of November 15, 1997. Then in a narrower

application, a January 1, 1999, start date was designated as a result

of providing greater flexibility in Ozone Transport Regions (OTR) (61

FR 39034, July 25, 1996). The OTRs would normally be exempt from I/M

program requirements except for their location within the OTR. The

January 1, 1999, start date allows the affected areas to meet the

performance standard by the Act's attainment and reasonable further

progress deadlines, including the end of 1999 for serious ozone

nonattainment areas. The EPA received no public comment regarding the

1999 start date in that document. In a somewhat similar situation, the

Baton Rouge serious ozone nonattainment area does not need an I/M

program to achieve its 15% Rate-of-

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Progress Plan requirements and reasonable further progress

requirements except that section 110 of the Act requires that serious

ozone nonattainment areas implement I/M programs. Program credits are

used only to demonstrate the performance standard. In addition the

mobile source portion of the Baton Rouge area's emissions inventory is

less than 20 percent.

The revised Louisiana I/M SIP commits to implementing all

requirements related to the I/M program by January 1, 1999, or as soon

as practicable thereafter. A January 1999 start date allows the

Louisiana program to meet the low-enhanced performance standard

evaluation date of January 1, 2000, as required in Sec. 51.351(h)(11).

The State meets the implementation deadlines requirement for

conditional approval.

III. Discussion for Rulemaking Action

A. Concluding Statement of Conditional Approval

The EPA's review of this material indicates that it meets the

minimum requirements of the Act and Federal I/M rules with the

exceptions of the deficiency explained in this proposal. Based upon the

discussion contained in the previous analysis sections and technical

support document, EPA concludes the State's submittal represents an

acceptable approach to the I/M requirements and meets the requirements

for conditional approval. Therefore, EPA is proposing a conditional

approval of the Louisiana I/M SIP revision which was submitted on

August 18, 1995, December 27, 1995, and May 30, 1996. The EPA is

soliciting public comments on the issues discussed in this document or

on other relevant matters. These comments will be considered before

taking final action. Interested parties may participate in the Federal

rulemaking procedure by submitting written comments to the EPA Regional

office listed in the ADDRESSES section of this document.

B. Explanation of the Approval

At the end of the 12-month period, the approval status for this

program will automatically convert to a disapproval pursuant to section

110(k) of the Act, unless continuous I/M program funding is authorized

by the State legislature. The EPA expects that this program will start

by January 1, 1999. If the State fails to start the program by January

1, 1999, EPA will be forced to make a finding of nonimplementation of

the State's SIP. In addition, a final Memorandum of Understanding with

the DPSC needs to be submitted to EPA prior to the January 1, 1999,

start date. If this memorandum is not submitted within one year of this

approval, EPA will consider this nonimplementation as well.

IV. Proposed Action

The EPA is proposing to grant conditional approval of the State's

submission contingent upon the State obtaining all of the additional

authority needed to implement the program outlined in the revised SIP.

The EPA proposes that if the State fails to obtain the needed

additional legal authority, the approval will convert to a disapproval

after a letter is sent notifying the State of the conversion to

disapproval.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

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.

V. Administrative Requirements

A. 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 CFR 2214-2225), as revised by

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

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

this regulatory action from Executive Order 12866 review.

B. Regulatory Flexibility Act

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

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. See 5 U.S.C. 603 and 604.

Alternatively, EPA may certify that the rule will not have a

significant impact on a substantial number of small entities. Small

entities include small businesses, small not-for-profit enterprises,

and government entities with jurisdiction over populations of less than

50,000.

Conditional approvals of SIP submittals under section 110 and

subchapter I, part D of the Act 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 flexibility

analysis would constitute Federal inquiry into the economic

reasonableness of state action. The Act forbids EPA to base its actions

concerning SIPs on such grounds. See Union Electric Co. v. U.S. EPA,

427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

If the conditional approval is converted to a disapproval under

section 110(k), based on the State's failure to meet the commitment, it

will not affect any existing state requirements applicable to small

entities. Federal disapproval of the state submittal does not affect

its State-enforceability. Moreover, EPA's disapproval of the submittal

does not impose a new Federal requirement. Therefore, EPA certifies

that this disapproval action does not have a significant impact on a

substantial number of small entities because it does not remove

existing requirements nor does it substitute a new Federal requirement.

C. Unfunded Mandates

Under section 202 of the Unfunded Mandates Reform Act of 1995,

signed into law on March 22, 1995, EPA must prepare a budgetary impact

statement to accompany any proposed or final rule that includes a

Federal mandate that may result in estimated costs to State, local, or

tribal governments in the aggregate; or to private sector, of $100

million or more. Under section 205, EPA must select the most cost-

effective and least burdensome alternative that achieves the objectives

of the rule and is consistent with statutory requirements. Section 203

requires EPA to establish a plan for informing and advising any small

governments that may be significantly or uniquely impacted by the rule.

The EPA has determined that the conditional approval action

proposed does not include a Federal mandate that may result in

estimated costs of $100 million or more to either State, local, or

tribal governments in the aggregate, or to the private sector. This

Federal action approves preexisting requirements under State or local

law, and imposes no new requirements. Accordingly, no additional costs

to State, local, or tribal governments, or to the private sector,

result from this action.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,

Hydrocarbons, Intergovernmental

[[Page 31394]]

relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping

requirements.

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

Dated: May 30, 1997.

Myron O. Knudson,

Acting Regional Administrator.

[FR Doc. 97-14984 Filed 6-6-97; 8:45 am]

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