Approval and Promulgation of State Implementation Plans (SIP) for Texas: Accelerated Vehicle Retirement (AVR) Program

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX 61-1-7270: FRL-5937-4]

Approval and Promulgation of State Implementation Plans (SIP) for

Texas: Accelerated Vehicle Retirement (AVR) Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is proposing to

disapprove the SIP revision submitted by the State of Texas for the

Accelerated Vehicle Retirement (AVR) program which allows stationary

sources to purchase Emission Reduction Credits (ERCs) through a vehicle

scrappage program. For areas which face relatively high stationary

source control costs, Mobile Emission Reduction Credits

[[Page 66577]]

(MERCs) offer stationary sources another option to achieve required

emission reductions through early retirement and scrappage of motor

vehicles which fail mandated emissions testing. The EPA is proposing

disapproval because the State's AVR SIP revision uses a vehicle

emission testing method from a vehicle Inspection and Maintenance (I/M)

program that has changed since the ARV SIP was submitted. This action

is being taken under sections 110 and 182 of the Clean Air Act, as

amended in 1990 (the Act).

DATES: Comments must be received on or before January 20, 1998.

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

Thomas H. Diggs, Chief, Air Planning Section, at the EPA Region 6

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

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.Texas Natural Resource Conservation Commission, 12100

Park 35 Circle, Austin, Texas 78711-3087.

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

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

2733, telephone (214) 665-7367.

SUPPLEMENTARY INFORMATION:

I. Background

The Act broadly encourages, and in Title I of the Act, mandates,

States to develop and facilitate market-based approaches for achieving

the environmental goals of the Act for attainment and maintenance of

the National Ambient Air Quality Standards, and to meet associated

emission reduction milestones. The Agency has developed comprehensive

guidance and rules (as required by the Act) for States and individual

sources to follow in designing and adopting such programs for inclusion

in SIPs. The Economic Incentive Program (EIP) Rules (April 7, 1994, 59

FR 16690-16717) provide a broad framework for the development and use

of a wide variety of incentive strategies for stationary, area, and/or

mobile sources. One such approach is the generation and trading of

ERCs, which historically have been allowed under guidance provided in

the 1986 Emission Trading Policy Statement. In certain areas where

emission control costs for stationary sources may be high relative to

mobile source control costs, creating EIPs which allow for the trading

of emission reduction credits from mobile sources to stationary sources

can be beneficial.

On October 31, 1994, the State of Texas submitted revisions to the

SIP making changes to the Texas Administrative Code (30 TAC), Chapter

114: Control of Air Pollution from Motor Vehicles. In this revision,

section 114.29, Accelerated Vehicle Retirement Program, was added to

the Code. The new section provides specific requirements for the

purchase, screening, and processing of scrappage vehicles, so that all

emission reductions generated through AVR are creditable, enforceable,

surplus, quantifiable, and permanent. The scrappage program requires

all potential vehicles to get an ``IM240'' emission test at an I/M

testing facility.

The AVR program was planned when the State was intending to

implement an I/M program which utilized the IM240 emission test in a

centralized, test-only setting. The I/M program was designed,

developed, and began operation in January 1995, before being halted by

the Governor and the Texas Legislature.

However, various states, including Texas, desired greater

flexibility in implementing their I/M programs. On September 18, 1995,

EPA revised and finalized I/M rules that gave states much greater

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

flexibility amendments included a provision for a new low enhanced

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

if overall air quality goals were met. In addition, on November 28,

1995, President Clinton signed the National Highway System Designation

Act of 1995 (NHSDA) which allowed even greater flexibility in I/M

programs for states, especially in the area of emission reduction

estimates.

In response to this additional flexibility, the State of Texas, in

a letter dated March 12, 1996, submitted its revised I/M program to the

Region 6 office within the submission deadlines contained in the NHSDA.

The EPA granted conditional interim approval (July 11, 1997, 62 FR

37138) of the revised Texas I/M plan. As a result, the State has

implemented a decentralized testing network which allows for both test-

and-repair and test-only stations, and includes remote sensing. Testing

stations administer a two-speed idle test. This program is referred to

as the Texas Motorist Choice Program. With the IM240 test no longer

available, the tailpipe emission measurements needed for AVR

calculations as outlined in section 114.29 of 30 TAC 114 cannot be

obtained. The EPA believes this is a significant deficiency which

prohibits approval of the SIP under section 110 of the Act.

II. Evaluation of Accelerated Vehicle Retriement (AVR) SIP

Several key program elements in EIP rules must generally be

included in any MERC program to ensure that the EIP principles and

requirements are met. One of the elements calls for credible, workable,

replicable procedures for quantifying emissions and/or emission-related

parameters.

In the State's submittal, emission reductions in grams/vehicle/year

for each vehicle are calculated using tailpipe emissions, evaporative

emissions, vehicle replacement emissions, and vehicle miles traveled.

Tailpipe emissions are measured by using the IM240 test. The MERCs are

calculated in tons/year from the emission reductions from all vehicles

in a scrappage program.

The owner of a scrappage vehicle must obtain an IM240 vehicle

emission certificate at a testing facility showing that the vehicle has

failed the mandated emissions test prior to the sale of the vehicle to

a scrappage program. A motorist must submit the vehicle to an emissions

test according to specific procedures outlined in the SIP. In the Texas

Motorist Choice I/M program, which is in operation, the test stations

offer only the idle test. The IM240 test is not an option.

Consequently, tailpipe emissions can no longer be quantified according

to the procedure outlined in the SIP. This prevents the State from

satisfying the program element for obtaining credible emissions data.

In summary, the Texas AVR SIP submittal does not reflect current

programs which are necessary to implement the scrappage program as

designed. Based on the analysis, EPA cannot approve the Texas AVR SIP.

III. Proposed Action

The EPA proposes to disapprove the Texas AVR SIP under sections 110

and 182 since the State failed to update elements of the AVR SIP

submitted October 31, 1994. The AVR SIP submittal represents vehicle

emission testing for vehicle scrappage using an I/M loaded mode

transient emission test (IM240). The Texas Legislature halted the

operation of that particular program, and has since chosen to implement

a different I/M program, the Texas Motorist Choice Program, which

requires a two-speed idle test. This test has not been shown to be

equivalent to

[[Page 66578]]

the IM240 test. Consequently, the AVR SIP is not applicable to current

programs as submitted.

This revision is not required by the Act. Therefore, this proposed

disapproval action does not impose sanctions for failure to meet Act

requirements.

The EPA is soliciting public comment on the proposed action

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 rule making procedure by submitting written

comments to the EPA Regional office listed in the Addresses section of

this document.

Nothing in today's action should be construed as permitting,

allowing, or establishing a precedent for any future request for

revision to any SIP. Each request for revision to the SIP shall be

considered separately in light of specific technical, economic, and

environmental factors and in relation to relevant statutory and

regulatory requirements.

The Regional Administrator's decision to approve or disapprove the

AVR SIP revision will be based on whether it meets the requirements of

section 110(a)(2)(A)-(K) and part D of the Act, as amended, and EPA

regulations in 40 CFR part 51.

IV. Administrative Requirements

A. Executive Order 12866

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.

The EPA's proposed disapproval of the State request under sections

110 and 301, and subchapter I, part D of the Act does not affect any

existing requirements applicable to small entities. Any preexisting

Federal requirements remain in place after this proposed disapproval.

Federal disapproval of the State submittal does not affect its State-

enforceability. Moreover, the EPA's disapproval of the submittal does

not impose any new Federal requirements. Therefore, the EPA certifies

that this proposed 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 impose any new Federal

requirements.

C. Unfunded Mandates Act

Under section 202 of the Unfunded Mandate 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 aggregate; or to the 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 proposed disapproval action 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 does not

impose new requirements. Accordingly, no additional costs to State,

local, or tribal governments, or private sector, result from this

action.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Ozone, Volatile

organic compounds.

Dated: December 10, 1997.

Lynda F. Carroll,

Acting Deputy Regional Administrator, Region VI.

[FR Doc. 97-33222 Filed 12-18-97; 8:45 am]

BILLING CODE 6560-50-F