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-49-1-7400; FRL-6204-5]

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 conditional approval of a Vehicle

Inspection and Maintenance (I/M) Program proposed by the State of

Louisiana. This action is taken under section 110 of the Clean Air Act

(the Act). This conditional approval is also being proposed under the

parallel processing provision of 40 CFR part 51. The EPA is proposing a

conditional approval because the SIP revision is lacking certain

elements necessary to meet the statutory and regulatory requirements of

an enhanced I/M program. To correct the SIP deficiencies, the State

must commit by a date certain within one year of final EPA rulemaking

on this SIP to: submit a demonstration supporting its claim of 100

percent network effectiveness; submit an effectiveness demonstration of

sticker-based enforcement; submit an opinion from the State Attorney

General regarding barriers to immediate suspension authority in the

Louisiana Constitution; submit an updated interagency agreement between

the Louisiana Department of Environmental Quality (LDEQ) and the

Department of Public Safety (DPS); make changes to the DPS Official

Motor Vehicle Inspection Manual (the Manual) to reflect: changing the

weight of light-and heavy-duty vehicles covered by the program in the

nonattainment area from 8,500 lb. Gross Vehicle Weight Rating (GVWR) to

10,000 lb. GVWR; adding test procedures for evaporative system checks

in the nonattainment area to the Manual; adding a list of evaporative

system check test equipment for the nonattainment area to the Manual;

adding calibration of evaporative system check test equipment to the

Manual; and adding an additional training requirement on evaporative

system check equipment for inspector/technicians in the nonattainment

area to the Manual. Furthermore, the State's I/M program must start up

no later than January 1, 2000, to qualify for a final full approval.

If the State submits these documents and changes to the Manual to

correct the deficiencies noted above by the date committed to within

one year of the final conditional approval, then the I/M submittal will

be fully approved into the SIP. If the conditions are not met by that

date, the conditional approval converts to a disapproval. In addition,

EPA has identified two sections of the Federal I/M Regulation for which

the State cannot meet the requirements as written. The EPA intends to

amend the sections of the Federal rule on test equipment and on-road

testing to exempt programs that meet certain criteria from the portions

of those sections which have been identified elsewhere in this action.

The EPA cannot proceed with final action conditionally approving this

SIP until it has completed final rulemaking amending the Federal I/M

rule with respect to these issues.

DATES: Comments must be received on or before January 29, 1999.

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

A final EPA disapproval of the Louisiana 1996 I/M SIP revision was

effective on February 13, 1998. Discussion of background leading up to

that final disapproval can be found in the rulemakings on that SIP, 62

FR 61633 (June 9, 1997), 62 FR 41002 (July 31, 1997), and 62 FR 61633

(November 19,1997). An 18-month sanction clock was started under

section 179 of the Act on the effective date of the final disapproval.

In July 1998, Louisiana sought greater flexibility from EPA for

designing an I/M program tailored to meet the State's air quality

needs. The EPA worked in parallel with the State in developing an

approvable I/M SIP revision.

The State's I/M program is required because of its nonattainment

classification and population. The SIP credits are not taken for the I/

M plan in the 15% Rate-of-Progress (ROP) Plan or the 9% ROP plan, or

the State's attainment demonstration. Additional information on these

actions can be found in EPA's proposed approval in 63 FR 44192 dated

August 18, 1998. 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 are deficiencies

with respect to certain statutory and regulatory requirements

(identified herein) that EPA believes can be supplied by the State

during the following 12 months. The State must commit to address the

insufficiencies identified above by a date certain within one year of

EPA final action on this SIP.

II. The State's Proposal

Louisiana published a notice of a proposed I/M SIP in the Louisiana

Register on October 20, 1998. The State received public comment through

December 1, 1998. The SIP contains a SIP narrative, I/M Rules, and

several appendices including the DPS Manual addressing the requirements

of the I/M program. The submittal is intended to fulfill the

requirements of the Act for the ozone nonattainment area of Louisiana

that is required to implement an I/M program.

III. EPA's Analysis of Louisiana's Proposal

The EPA reviewed the State's proposal against the requirements

contained in the Act and Federal I/M

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rules (40 CFR part 51, subpart S). Deficiencies that EPA noted are the

need for: (1) a demonstration supporting the State's claim of 100

percent network effectiveness; (2) an effectiveness demonstration of

sticker-based enforcement; (3) an opinion from the State Attorney

General regarding barriers to immediate suspension authority in the

Louisiana Constitution; (4) an updated interagency agreement between

LDEQ and the DPS. In addition, five changes to the DPS Manual must be

made to reflect; (5) changing the weight of light- and heavy-duty

vehicles covered by the program in the nonattainment area from 8,500

lb. GVWR to 10,000 lb. GVWR; (6) adding test procedures for evaporative

system checks in the nonattainment area to the Manual; (7) adding a

list of evaporative system check test equipment for the nonattainment

area to the Manual; (8) adding calibration of evaporative system check

test equipment to the Manual; and (9) adding training on evaporative

system check equipment for inspector/technicians in the nonattainment

area to the Manual. During EPA's public comment period, the State must

formally commit to correct these deficiencies by a date certain within

12 months after the date of approval of the plan revision. The State

must then correct the deficiencies within one year of final conditional

approval or this approval will automatically convert to a disapproval

under section 110(k)(4) the Act.

The following analysis describes the Federal requirement and

addresses how the State intends to fulfill the requirements of the Act

and the Federal I/M rules. This analysis assumes the State corrects the

deficiencies stated above. A more detailed analysis of the State

submittal is included in the Technical Support Document for this action

and may be obtained from the EPA Region 6 office. A summary of EPA's

findings follows.

Section 51.350 Applicability.

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

consistent with Sec. 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. The low

enhanced I/M program will be implemented in the urbanized area that

includes East Baton Rouge Parish. In addition to East Baton Rouge

Parish, the program will cover Ascension, Iberville, Livingston, and

West Baton Rouge parishes in the nonattainment area. The authority to

establish program boundaries in this area is found in Louisiana Revised

Statutes (LA R.S.) 32:1304(3).

The State submittal meets the applicability requirement of the

Federal I/M regulation for approval.

Section 51.351-2 Low Enhanced I/M Performance Standard

The I/M program submitted by the State 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 State has submitted a modeling demonstration using the EPA

computer model MOBILE5b and localized parameters showing that the low

enhanced performance standard can be met for Volatile Organic Compounds

(VOCs) in the Baton Rouge area with the program proposed by the State.

The low enhanced performance standard is established in 40 CFR

51.351(g). That section provides that states may select the low

enhanced performance standard if they have an approved SIP for

reasonable further progress in 1996, commonly known as a 15% ROP Plan.

Louisiana's 15% Plan for Baton Rouge was approved on October 22, 1996

(61 FR 54737). Projections of oxides of nitrogen (NOx) emissions were

not included because EPA approved a NOx waiver for Baton Rouge on

January 16, 1996, which was published on January 26, 1996 at 61 FR

2438. Light- and heavy-duty vehicles up to 10,000 lb. GVWR from 1980

and newer model years will be required to participate in the I/M

program. No covered model years are exempted. The State is modeling

with a test and repair program which assumes a 100 percent credit for

network effectiveness. This amount of credit was chosen by the State to

complete the modeling necessary to demonstrate compliance with the

performance standard. States submitting I/M SIP revisions after passage

of the National Highway System Designation Act (NHSDA) are not subject

to an automatic 50 percent credit deduction for decentralized programs

that had been in EPA's original I/M rules. The NHSDA effectively

invalidated this regulatory provision establishing the credit

reduction. However, the State must demonstrate within 12 months of

final conditional approval of the SIP that the network effectiveness

credit claimed is in fact being met, or adjust the credit accordingly

to reflect the actual effectiveness of the test network.

The State must submit a demonstration supporting its claim of 100

percent network effectiveness in order to meet the low-enhanced I/M

performance standard requirements of the Federal I/M regulations for

approval. Although vehicles between 8,500 and 10,000 lb. GVWR are not

required by the Federal I/M rule to be covered, the Louisiana program

needs the credit generated by the additional vehicles to meet the

performance standard. Accordingly, the State must submit a revision to

the DPS Manual changing the maximum weight of light- and heavy-duty

vehicles required to participate in the program from 8,500 lb. GVWR to

10,000 lb. GVWR.

Section 51.353 Network Type and Program Evaluation

The State submittal is required 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 is implementing a decentralized test and repair program.

The program includes an ongoing 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 requirement using a sound methodology

approved by EPA, and of at least 0.1 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 LA R.S. 32:1305-1306, authorizes

the DPS to implement the program and conduct the program evaluation.

The State SIP meets the network type and program evaluation

requirements of the Federal I/M regulations for approval.

[[Page 71809]]

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. 32:1306.C(2) authorizes the program to charge an

emission inspection fee and a safety/antitampering inspection fee. The

SIP narrative also describes the budget, staffing support, and

equipment that will be added to the existing personnel and budget

needed to implement the program. The State has committed to employ and

train three additional employees dedicated to implementing this

program.

The State submittal meets the adequate tools and resources

requirements of the Federal I/M regulations for approval.

Section 51.355 Test Frequency and Convenience

The State submittal 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 in

such a way as to provide convenient service to motorists who are

required to get their vehicles tested. The SIP needs to demonstrate

that the network of stations providing test services is sufficient to

insure short waiting times to get a test and short driving distances to

test stations.

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

vehicles of model years 1980 and newer annually. In addition, at least

0.5 percent of the vehicle population will be subject to on-road

testing. The program is decentralized and stations will adhere to

regular convenient inspection hours. The network of stations will

consist of familiar locations where motorists regularly receive the

annual currently required safety/antitampering inspections and other

vehicle services. Louisiana R.S. 1301-1310 provides the legal authority

for implementation of the test frequency.

The State submittal meets the test frequency and convenience

requirements of the Federal I/M regulations for approval.

Section 51.356 Vehicle Coverage

The State submittal needs to include 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 light- and

heavy-duty cars and trucks up to 10,000 lb. GVWR registered or required

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

vehicles will be identified through the Department of Motor Vehicle

database. No covered model years are exempt. Approximately 388,000

vehicles will be subject to inspection. Legal authority for vehicle

coverage is contained in LA R.S. 32:1304.A(2), and LA R.S. 47:501 and

503.

The State intends to revise to the Louisiana DPS Official Motor

Vehicle Inspection Manual to increase the weight of vehicles included

in their program in order to meet the performance standard. The weight

of light- and heavy-duty vehicles covered by the program in the

nonattainment area needs to be changed from 8,500 lb. GVWR to 10,000

lb. GVWR for the State program to meet the applicable performance

standard. However, 40 CFR 51.356 only mandates coverage up to 8,500 lb.

GVWR. The State submittal meets this requirement for vehicle coverage

of the Federal I/M rule.

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 nonattainment area program shall be subject

to an antitampering check, a fill pipe pressure test, and a gas cap

pressure test. Pressure testing procedures will meet requirements in

EPA IM240 and Evaporative Test Guidance (1998 Revised Technical

Guidance). Authority to conduct tests on vehicles is established in LA

R.S. 32:1304. The State commits to implementing on-board diagnostic

testing on all 1996 and newer vehicles beginning January 1, 2001.

The State must submit a revision to the Louisiana DPS Manual in

order to meet the test procedures requirements of the Federal I/M

regulations for approval. Test procedures for evaporative system checks

in nonattainment areas must be added to the Manual.

Section 51.358 Test Equipment

The State submittal 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 the EPA IM240

and Evap Technical Guidance (August 1998). In addition, the gas cap

integrity test will be in accordance with EPA equipment specifications.

The State must submit a revision to the Louisiana DPS Manual in

order to meet some of the test equipment requirements of the Federal I/

M regulations for approval. A list of evaporative system check test

equipment for the nonattainment area must be added to the Manual.

Because the decentralized program does not include realtime data

capture, which is currently required under section 51.358, this section

of the Federal I/M regulation cannot be satisfied. However, EPA intends

to amend the Federal I/M regulation to allow States, under certain

circumstances, to be exempt from this requirement, provided they can

demonstrate equal data capture effectiveness through other means. The

EPA cannot proceed to final conditional approval of this SIP until EPA

has completed this rulemaking.

[[Page 71810]]

Section 51.359 Quality Control

The State submittal needs to include a description of quality

control and recordkeeping 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 applicable to the State program design will be conducted in

accordance with 40 CFR 51.359. The requirements under LA R.S. 32:1305

and 1306 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 per the SIP

revision to ensure proper operation of the test equipment.

The State must submit a revision to the Louisiana DPS Manual in

order to meet the quality control requirements pertaining to proper

calibration of test equipment of the Federal I/M regulations for

approval. Calibration procedures for evaporative system check test

equipment in the nonattainment area must be added to the Manual.

Section 51.360 Waivers and Compliance Via Diagnostic Inspection

The State submittal 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.

The State will not have a minimum waiver amount. That is, the State

does not intend to allow any waivers from the program. The revised

Louisiana I/M program therefore includes a waiver rate of 0 percent of

initially failed vehicles. This waiver rate is used in the modeling

demonstration. The State need not provide for waiver program

administration or future corrective action because it does not have a

waiver program at all.

The State submittal meets the waivers and compliance via diagnostic

inspection requirement of the Federal I/M regulations for approval.

Section 51.361 Motorist Compliance Enforcement

The State submittal 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

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 sticker-based

enforcement. The current safety/antitampering program relies on

sticker-based enforcement. Penalties for missing stickers include a

fine, as well as possible criminal charges, or revocation of the

inspector from the program.

The motorist compliance enforcement program will be handled

cooperatively by the DPS, local law enforcement agencies, and the LDEQ.

As a condition to the approval of the I/M SIP, the State is required to

submit a demonstration of sticker-based enforcement effectiveness to

show this method of enforcement is more effective than registration

denial, as required by the Act.

[[Page 71811]]

There are no classes of on-road exempt vehicles. Fleet vehicles

will be allowed to conduct self-testing provided that the fleet testing

stations 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 sticker will be subject to

penalties and/or citations by local and State law enforcement

officials, imprisonment, or registration suspension. The SIP commits to

a compliance rate of 96 percent through cooperation with the DPS. The

legal authority to implement and enforce the program is included in the

Louisiana statutes cited in the SIP.

The State must submit a demonstration of sticker-based enforcement

effectiveness in order to meet the motorist compliance enforcement

requirements of the Act and Federal I/M regulations for 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 and in the interagency agreement include schedules and

procedures for I/M document handling and processing, audit procedures,

and procedures for dealing with motorists and inspection facilities

suspected of violating program rules.

The State submittal meets the motorist compliance enforcement

program oversight requirements of the I/M regulations for 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 detailed 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 are based upon

written instructions and will be updated as necessary.

The State submittal meets the quality assurance requirement of the

Federal I/M regulations for 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.

The revised Louisiana I/M SIP states that the State may assess

penalties in its enforcement against stations and inspectors. The

penalty schedule is discussed in the SIP narrative. The SIP describes

the enforcement process. The legal authority for Louisiana to assess

penalties is located in LA R.S. 32:1312. The authority for DPS to deny

application for license or revoke or suspend an outstanding license of

any inspection station or the license of any person to inspect vehicles

is found in LA R.S. 32:1305(C). Louisiana has indicated that the State

Constitution precludes immediate suspension of licenses to inspect. The

State must submit a statement from the Attorney General outlining the

Constitutional prohibition and outlining the process by which the State

can suspend or revoke a license within 3 business days of discovery of

the violation.

The State must submit an opinion from the State Attorney General as

described above as a condition of approval. Other than this condition

regarding suspension authority, the State submittal meets the other

requirements for approval of enforcement against inspection stations

and inspectors of the Federal I/M regulations.

Section 51.365-6 Data Collection, Analysis and Reporting

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

reported.

[[Page 71812]]

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 entered

into an electronic database and used to generate reports in the areas

of test data, quality assurance, quality control, and enforcement.

The State submittal meets the data collection, analysis and

reporting requirements of the Federal I/M regulations for 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, licensing, and refresher programs for emission inspectors

consistent with EPA's regulations. The SIP describes this program

including written and hands-on testing. Inspector licenses will expire

two years after issuance. All inspectors must be licensed to inspect

vehicles in the Louisiana I/M program.

The State must submit a revision to the Louisiana DPS Manual in

order to meet the training and licensing or certification requirements

of the Federal I/M regulations for approval. Additional training on

evaporative system check equipment for inspector/technicians in the

nonattainment area must be added to the Manual.

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 need 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 under the Improving

Repair Effectiveness section (40 CFR 51.369) 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 a challenge mechanism, oversight of the program through

the use of audits, and whistle blower protection.

The State submittal meets the public information and consumer

protection requirements of the Federal I/M regulations for 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 through

the use of a newsletter 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. 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 submittal meets the improving repair effectiveness

requirements of the Federal I/M regulations for approval.

Section 51.370 Compliance With Recall Notices

The SIP needs to describe the procedures used to incorporate the

vehicle lists provided in 40 CFR 51.370 (a)(1)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 ensuring compliance with

EPA I/M recall rules when they are finalized. Additional rulemaking by

EPA related to recall requirements is needed before the State will be

able to implement this provision. Inspection failure will be used to

enforce the recall requirements.

The State submittal meets the compliance with recall notices

requirements of the Federal I/M regulations for 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 roadside antitampering checks

and evaporative emission testing. The State has committed to cover 0.5

percent of the EPA required subject vehicles. The legal authority to

conduct on-road testing is in LA R.S.32:1302-1303. The SIP describes

adequate funding, resources and personnel to implement the on-road

testing program. The State does not claim any additional reductions

from on-road testing.

Louisiana's on-road testing program will check for hydrocarbon

emissions as a complement to the required evaporative emissions testing

program. Because the on-road testing program does not include tailpipe

testing, this section of the Federal I/M regulation cannot be

satisfied. However, EPA intends to amend the Federal I/M regulation to

allow States, under certain circumstances, to be exempt from the

tailpipe testing requirement. The EPA

[[Page 71813]]

cannot proceed to final action on this SIP approval prior to completion

of the amendment to the Federal I/M rule.

Section 51.372 State Implementation Plan Submissions

Under 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 to operate the I/M program is found in LA R.S.

32:1304.

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

new regulations are promulgated, including the provision for inclusion

of on-board diagnostic checks as they become available. In addition,

the SIP commits to having all agreements with the DPS in place prior to

start up. Updating the interagency agreement between LDEQ and the DPS

is a deficiency that must be corrected for full approval of this SIP

revision.

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 after January 1995 for

greater flexibility in implementing I/M program SIPs processed under

the National Highway System Designation Act EPA SIP approvals allowed

programs to start as soon as possible, and specified start dates of

November 15, 1997. Then in a narrower application, a January 1, 1999,

start date was designated as a result of providing greater flexibility

only in Ozone Transport Regions (OTR) (61 FR 39034, July 25, 1996). The

OTRs affected 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 this notice.

Finally, at this late date, starting the program in the Baton Rouge

nonattainment area by January 1, 2000, is ``as soon as possible'' for

Louisiana.

The revised Louisiana I/M SIP commits to implementing all

requirements related to the I/M program by January 1, 2000. A schedule

for start-up related activities is included. The EPA concludes that

given the circumstances described above, this start date is approvable

as being ``as soon as possible'' for Louisiana. The EPA is requiring

that the I/M program start up no later than January 1, 2000.

IV. Discussion for Rulemaking Action

A. Concluding Statement of Conditional Approval

The EPA's review of this material indicates that the proposed SIP

revision meets the minimum requirements of the Act and Federal I/M

rules with the exceptions of the deficiencies 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. During the comment

period, Louisiana must commit to meet the proposed conditions by a date

certain no later than 12 months after the date of final approval.

Therefore, EPA is proposing a conditional approval of the proposed

Louisiana I/M SIP revision. The EPA is soliciting public comment 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 notice.

B. Explanation of the Approval

At the end of the period committed to by the State, the approval

status for this program will automatically convert to a disapproval

pursuant to section 110(k) of the Act, unless the conditions of the

approval are satisfied. The proposed conditions are submittal of:

1. A network effectiveness demonstration.

2. A sticker-based enforcement demonstration.

3. An opinion from the State Attorney General regarding barriers to

immediate suspension authority in the Louisiana Constitution.

4. An updated interagency agreement between LDEQ and DPS.

Additional conditions for approval include making changes to the DPS

Official Motor Vehicle Inspection Manual (the Manual). These are:

5. The weight of light- and heavy-duty vehicles covered by the

program in the nonattainment area will be changed from 8,500 lb. GVWR

to 10,000 lb. GVWR.

6. Test procedures for evaporative system checks in the

nonattainment area will be added to the Manual.

7. A list of evaporative system check test equipment for the

nonattainment area will be added to the Manual.

8. Calibration of evaporative system check test equipment will be

added to the Manual.

9. Additional training on evaporative system check equipment for

inspector/technicians in the nonattainment area will be added to the

Manual.

Furthermore, EPA expects this program to start by January 1, 2000.

If the State fails to start the program by January 1, 2000, the

approval will convert to a disapproval, and the State will be notified

by letter.

In addition, EPA has identified two sections of the Federal I/M

regulation for which the State cannot meet the requirements as written.

The EPA intends to amend the sections on test equipment and on-road

testing to exempt programs that meet certain criteria from the portions

of those sections which have been identified elsewhere in this action.

The EPA cannot proceed to final action on this SIP approval prior to

completion of these amendments to the Federal I/M rule.

V. Status of Sanctions

The proposed approval will not stop the sanction clock that has

been running since February 13, 1997, but the proposal is the first

step toward staying sanctions. Sanctions can be stayed after the State

submits a final I/M SIP revision along with approved State regulations

to implement the program. If a full approval of the SIP cannot be made

at that time, EPA will then publish an interim final determination that

the State has cured the deficiency that gave rise to the sanctions

clock. At that time the sanctions will be stayed until the conditions

are met or the approval converts to a disapproval, whichever occurs

first. If the conditions are met, the threat of sanctions will be

lifted. If the conditions are not met within the specified timeframe,

the final conditional approval converts to a disapproval. After a

letter is sent to the Governor notifying the State of the disapproval,

sanctions will be immediately imposed. (See, Order of Sanctions Rule,

59 FR 39833, August 4, 1994).

The sanction clock for two-to-one offsets will expire on August 13,

1999, and the clock for Federal highway fund sanctions will expire on

February 13, 2000. If the approval converts to a disapproval on or

after August 13, 1999, offset sanctions will immediately go into

effect. If a disapproval is in effect on or after February 13, 2000,

highway sanctions will immediately apply.

[[Page 71814]]

VI. Notice of Parallel Processing

Because a Sanction Clock is running in the State, and because the

Administrator agreed that EPA would work with the State to expedite

processing of an I/M SIP approval, Louisiana has requested that EPA

proceed with an expedited decision process for this revision to the

SIP. Therefore, approval of this revision is being proposed under a

procedure called parallel processing, whereby EPA proposes rulemaking

action concurrently with the State's procedures for approving a SIP

submittal and amending its regulations (40 CFR part 51, Appendix V,

section 2.3). If the State's proposed revision is substantially changed

in areas other than those identified in this document, EPA will

evaluate those changes and may publish another notice of proposed

rulemaking. If no substantial changes are made other than those areas

specified in this document, EPA proposes to publish a final rulemaking

on the revisions after responding to any submitted comments. Final

rulemaking action by EPA will occur only after the SIP revision has

been fully adopted by Louisiana and submitted formally to EPA for

incorporation into the SIP. In addition, any action by the State

resulting in undue delay in the adoption of the SIP by the State, or

adoption of the regulations by the DPS may result in a re-proposal

altering the approvability of the SIP.

VII. Notice of Proposed Rulemaking

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

submission contingent upon the State satisfying the nine conditions

listed above, and the I/M program starting no later than January 1,

2000. The EPA proposes that if the State fails to meet the conditions,

or fails to start the program on the date identified above, the

approval will convert to a disapproval, and EPA will send a letter

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.

VIII. Administrative Requirements

A. Executive Order (E.O.) 12866

The Office of Management and Budget has exempted this regulatory

action from review under E.O. 12866, entitled ``Regulatory Planning and

Review.''

B. Executive Order 12875

Under E.O. 12875, EPA may not issue a regulation that is not

required by statute and that creates a mandate upon a State, local, or

tribal government, unless the Federal government provides the funds

necessary to pay the direct compliance costs incurred by those

governments. If EPA complies by consulting, E.O. 12875 requires EPA to

provide to the Office of Management and Budget a description of the

extent of EPA's prior consultation with representatives of affected

State, local, and tribal governments, the nature of their concern,

copies of written communications from the governments, and a statement

supporting the need to issue the regulation. In addition, E.O. 12875

requires EPA to develop an effective process permitting elected

officials and other representatives of state, local, and tribal

government ``to provide meaningful and timely input in the development

of regulatory proposals containing significant unfunded mandates.''

Today's proposed rule does not create a mandate on State, local, or

tribal governments. The rule does not impose any enforceable duties on

these entities. Accordingly, the requirements of section 1(a) of E.O.

12875 do not apply to this proposed rule.

C. Executive Order 13045

Protection of Children from Environmental Health Risks and Safety

Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) is

determined to be ``economically significant'' as defined under

Executive Order 12866, and (2) concerns an environmental health or

safety risk that EPA has reason to believe may have a disproportionate

effect on children. If the regulatory action meets both criteria, the

Agency must evaluate the environmental health or safety effects of the

planned rule on children, and explain why the planned regulation is

preferable to other potentially effective and reasonably feasible

alternatives considered by the Agency.

The proposed rule is not subject to E.O. 13045 because it is not

economically significant under E.O. 12866, and it does not involve

decisions intended to mitigate environmental health or safety risks.

D. Executive Order 13084

Under E.O. 13084, EPA may not issue a regulation that is not

required by statute, that significantly or uniquely affects the

communities of Indian tribal governments, and that imposes substantial

direct compliance costs on those communities, unless the Federal

government provides the funds necessary to pay the direct compliance

costs incurred by the tribal governments, or EPA consults with those

governments. If EPA complies by consulting, E.O. 13084 requires EPA to

provide to the Office of Management and Budget, in a separately

identified section of the preamble to the rule, a description of the

extent of EPA's prior consultation with representatives of affected

tribal governments, a summary of the nature of their concerns, and a

statement supporting the need to issue the regulation. In addition,

E.O. 13084 requires EPA to develop an effective process permitting

elected and other representatives of Indian tribal governments ``to

provide meaningful and timely input in the development of regulatory

policies on matters that significantly or uniquely affect their

communities.''

Today's rule does not significantly or uniquely affect the

communities of Indian tribal governments. Accordingly, the requirements

of section 3(b) of E.O. 13084 do not apply to this proposed rule.

E. Regulatory Flexibility Act

The Regulatory Flexibility Act, 5 U.S.C. 600 et seq., generally

requires an agency to conduct a regulatory flexibility analysis of any

rule subject to notice and comment rulemaking requirements unless the

agency certifies that the rule will not have a significant economic

impact on a substantial number of small entities. Small entities

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

governmental jurisdictions. This proposed rule will not have a

significant impact on a substantial number of small entities because

conditional approval of SIP submittals under section 110 and subchapter

I, part D of the Act does not create any new requirements but simply

approves requirements that the State is already imposing. Therefore,

because the Federal SIP approval does not impose any new requirements,

I certify that this action will not have a significant economic impact

on a substantial number of small entities. Moreover, due to the nature

of the Federal-State relationship under the Act, preparation of

flexibility analysis would constitute Federal inquiry into

[[Page 71815]]

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, I certify that

this potential disapproval action will not have a significant economic

impact on a substantial number of small entities because it does not

remove existing requirements nor does it substitute a new Federal

requirement.

F. 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 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 relations, Nitrogen dioxide, Ozone,

Reporting and recordkeeping requirements, Volatile organic compounds.

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

Dated: December 14, 1998.

Jerry Clifford,

Acting Regional Administrator, Region 6.

[FR Doc. 98-34420 Filed 12-29-98; 8:45 am]

BILLING CODE 6560-50-P