Amendments to Vehicle Inspection Maintenance Program Requirements To Address the 8-Hour National Ambient Air Quality Standard for Ozone

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Part III

Environmental Protection Agency

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40 CFR Part 51

Amendments to Vehicle Inspection Maintenance Program Requirements To

Address the 8-Hour National Ambient Air Quality Standard for Ozone;

Notice of Proposed Rulemaking

Proposed Rules

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 51

[FRL-7857-4]

RIN 2060-AM21

Amendments to Vehicle Inspection Maintenance Program Requirements

To Address the 8-Hour National Ambient Air Quality Standard for Ozone

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes minor revisions to the Motor Vehicle

Inspection/Maintenance (I/M) regulation to update submission and

implementation deadlines and other timing-related requirements to more

appropriately reflect the implementation schedule for meeting the 8-

hour National Ambient Air Quality Standards (NAAQS) for ozone. This

proposal is directed specifically at those areas that will be newly

required to implement I/M as a result of being designated and

classified under the 8-hour ozone standard; the conditions under which

an existing I/M program under the 1-hour ozone standard must continue

operation under the 8-hour standard are addressed under the anti-

backsliding provisions of the April 30, 2004 final rulemaking which

established several key requirements for implementing the 8-hour ozone

standard (69 FR 23931).\1\

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itions under which

an existing I/M program under the 1-hour ozone standard must continue

operation under the 8-hour standard are addressed under the anti-

backsliding provisions of the April 30, 2004 final rulemaking which

established several key requirements for implementing the 8-hour ozone

standard (69 FR 23931).\1\

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\1\ Additional guidance on anti-backsliding under the 8-hour

standard and how it applies to I/M programs can be found in the May

12, 2004 policy memo signed by Tom Helms, Ozone Policy and

Strategies Group, and Leila Cook, State Measures and Conformity

Group, entitled ``1-Hour Ozone Maintenance Plans Containing Basic I/

M Programs,'' a copy of which is contained in the docket for this

proposed rulemaking.

DATES: Written comments on this proposal must be received no later than

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February 7, 2005.

ADDRESSES: You may submit comments, identified by Docket OAR-

2004-0095, by any of the following methods:

Federal eRulemaking portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

E-mail: [email protected]. Include Docket

OAR-2004-0095 in the subject line of the message.

Fax: (202) 566-1741.

Mail: U.S. Environmental Protection Agency, EPA West (Air

Docket), 1200 Pennsylvania Avenue, NW., Room: B108; Mail Code: 6102T,

Washington, DC 20460.

Hand Delivery/Courier: EPA Docket Center (Air Docket),

U.S. Environmental Protection Agency, 1301 Constitution Avenue, NW.,

Room: B108; Mail Code: 6102T, Washington, DC 20004.

Instructions: All submissions received must include the agency name

and docket number or Regulatory Information Number (RIN) for this

rulemaking. All comments received will be posted without change to

http://cascade.epa.gov/RightSite/dk_public_home.htm, including any

personal information provided

ction Agency, 1301 Constitution Avenue, NW.,

Room: B108; Mail Code: 6102T, Washington, DC 20004.

Instructions: All submissions received must include the agency name

and docket number or Regulatory Information Number (RIN) for this

rulemaking. All comments received will be posted without change to

http://cascade.epa.gov/RightSite/dk_public_home.htm, including any

personal information provided. For detailed instructions on submitting

comments and additional information on the rulemaking process, see the

``Public Participation'' heading of the SUPPLEMENTARY INFORMATION

section of this document.

Docket: For access to the docket to read background documents or

comments received, go to http://cascade.epa.gov/RightSite/dk_public_home.htm or EPA Docket Center (Air Docket), U.S. Environmental

Protection Agency, 1301 Constitution Avenue, NW., Room: B108; Mail

Code: 6102T, Washington, DC 20004.

FOR FURTHER INFORMATION CONTACT: David Sosnowski, Office of

Transportation and Air Quality, Transportation and Regional Programs

Division, 2000 Traverwood, Ann Arbor, Michigan 48105. Telephone (734)

214-4823.

SUPPLEMENTARY INFORMATION:

I. Table of Contents

I. Table of Contents

II. Summary of Proposal

III. Authority

IV. Background of the Proposed Amendments

A. Amendments to the I/M Performance Standards

B. Amendments to Program Evaluation Requirements

C. Amendments to the Basic I/M Waiver Requirements

D. Amendments to Update SIP Submission Deadlines

E. Amendments to Update Implementation Deadlines

V. Discussion of Major Issues

A. Impact on Existing I/M Programs

B. Impact on Future I/M Programs

VI. Economic Costs and Benefits

VII. Public Participation

VIII. Administrative Requirements

A. Administrative Designation

B. Reporting and Recordkeeping Requirement

C. Regulatory Flexibility Act

D. Unfunded Mandates Act

E. Executive Order 13132: Federalism

F. Executive Order 13175: Consultation and Coordination with

Indian Tribal Governments

G

I/M Programs

B. Impact on Future I/M Programs

VI. Economic Costs and Benefits

VII. Public Participation

VIII. Administrative Requirements

A. Administrative Designation

B. Reporting and Recordkeeping Requirement

C. Regulatory Flexibility Act

D. Unfunded Mandates Act

E. Executive Order 13132: Federalism

F. Executive Order 13175: Consultation and Coordination with

Indian Tribal Governments

G. Executive Order 13045: Protection of Children from

Environmental Health Risks and Safety Risks

H. Executive Order 13211: Actions That Significantly Affect

Energy Supply, Distribution or Use

I. National Technology Transfer and Advancement Act

II. Summary of Proposal

On April 30, 2004, EPA published a notice of final rulemaking (69

FR 23931) addressing several key requirements related to the

implementation of the 8-hour ozone standard originally promulgated on

July 18, 1997 (62 FR 38856). Among other things, the 8-hour ozone

standard implementation rule established deadlines for meeting the 8-

hour ozone standard based upon an area's designation and

classification. The rule also addresses when State Implementation Plans

(SIPs) and attainment demonstrations must be submitted. As a general

matter, the deadlines associated with implementation of the 8-hour

ozone standard relate back to the effective date of an area's

designation and classification under the 8-hour ozone standard, and new

8-hour ozone non-attainment areas are given the same amount of time to

meet their various obligations as was given to comparably classified

non-attainment areas under the 1-hour ozone standard. For example,

under the Clean Air Act Amendments of 1990 (CAA), most areas designated

and classified as moderate under the 1-hour standard were given 6 years

after designation as non-attainment to attain the 1-hour ozone

standard

areas are given the same amount of time to

meet their various obligations as was given to comparably classified

non-attainment areas under the 1-hour ozone standard. For example,

under the Clean Air Act Amendments of 1990 (CAA), most areas designated

and classified as moderate under the 1-hour standard were given 6 years

after designation as non-attainment to attain the 1-hour ozone

standard. Similarly, under the rule for implementing the 8-hour ozone

standard, an area designated and classified as moderate under the 8-

hour standard will also have up to 6 years after the effective date of

its non-attainment designation to attain the 8-hour ozone standard.

In addition to establishing the above-mentioned deadlines, the

April 30, 2004 rulemaking also clarified how the CAA's anti-backsliding

provisions would be applied under the 8-hour standard to certain

applicable requirements such as I/M once the 1-hour ozone standard is

revoked. In general, if an existing I/M area is not able to redesignate

to attainment for the 1-hour ozone standard prior to revocation of that

standard (and is also designated as non-attainment for the 8-hour

standard, regardless of classification or subpart) then that area will

be required to continue implementing an I/M program until it has

attained the 8-hour ozone standard. Readers interested in learning more

about how the Act's anti-backsliding provisions apply to I/M under the

8-hour standard should consult the anti-backsliding provisions of the

April 30, 2004 final rulemaking

or the 8-hour

standard, regardless of classification or subpart) then that area will

be required to continue implementing an I/M program until it has

attained the 8-hour ozone standard. Readers interested in learning more

about how the Act's anti-backsliding provisions apply to I/M under the

8-hour standard should consult the anti-backsliding provisions of the

April 30, 2004 final rulemaking

as well as the May 12, 2004 policy memo concerning exceptions to the

general anti-backsliding policy for certain maintenance areas signed by

Tom Helms and Leila Cook entitled ``1-Hour Ozone Maintenance Plans

Containing Basic I/M Programs,'' a copy of which is contained in the

docket for this proposed rulemaking.

When the rulemaking establishing the requirements for vehicle

inspection and maintenance (I/M) programs was first published in

November 1992, some of the deadlines were expressed relatively (i.e.,

``within X years of Y * * *'') while others were set as explicit dates

(i.e., ``no later than November 15, 1993 * * *''). The purpose of

today's proposed rulemaking is to revise outdated timing-related

references in the I/M rule such as submission dates, start dates,

evaluation dates, and other milestones and/or deadlines to make them

relevant for those areas that will be newly required to begin I/M

programs as a result of being designated and classified under the 8-

hour ozone standard. It is not the intention of this proposal to revise

or establish new requirements for existing I/M programs established in

response to the 1-hour ozone standard. As discussed above, the

requirements that apply to existing 1-hour I/M programs that must

continue implementation under the 8-hour standard have already been

addressed under the anti-backsliding provisions of the April 30, 2004

final rulemaking as well as the May 12, 2004 policy memo entitled ``1-

Hour Ozone Maintenance Plans Containing Basic I/M Programs,'' a copy of

which is contained in the docket for this proposed rulemaking

that apply to existing 1-hour I/M programs that must

continue implementation under the 8-hour standard have already been

addressed under the anti-backsliding provisions of the April 30, 2004

final rulemaking as well as the May 12, 2004 policy memo entitled ``1-

Hour Ozone Maintenance Plans Containing Basic I/M Programs,'' a copy of

which is contained in the docket for this proposed rulemaking.

Today's notice proposes to: (1) Revise sections 51.351 and 51.352

(the basic and enhanced I/M performance standards) to update the start

date and model year coverage associated with specific elements of the

basic and enhanced I/M performance standards as well as to set the

benchmark comparison date(s) for performance standard modeling purposes

that better reflects milestones associated with the 8-hour ozone

standard; (2) revise section 51.353 (network type and program

evaluation) to make the deadline for beginning the first round of

program evaluation testing (which is currently listed as ``no later

than November 30, 1998'') a relative deadline keyed to the date of

program start up; (3) amend section 51.360 (waivers and compliance via

diagnostic inspection) so that the deadline for establishing full

waiver limits for those basic I/M programs choosing to allow waivers

(currently, ``no later than January 1, 1998'') becomes ``January 1,

1998, or coincident with program start up, whichever is later''; (4)

update section 51.372 (state implementation plan submissions) to set

the I/M SIP submission deadline for areas newly required to adopt I/M

programs under the 8-hour ozone standard as 1 year after the effective

date of EPA's final action on today's proposal or 1 year after the

effective date of designation and classification under the 8-hour

standard (whichever is later); (5) update section 51.373

(implementation deadlines) to establish the implementation deadline for

new I/M programs required under the 8-hour standard as 4 years after

the effective date of designation and classification under the 8

date of EPA's final action on today's proposal or 1 year after the

effective date of designation and classification under the 8-hour

standard (whichever is later); (5) update section 51.373

(implementation deadlines) to establish the implementation deadline for

new I/M programs required under the 8-hour standard as 4 years after

the effective date of designation and classification under the 8-hour

ozone standard; and (6) revise section 51.373 (implementation

deadlines) to clarify that the deadline for beginning OBD testing for

areas newly required to implement I/M as a result of being designated

and classified under the 8-hour ozone standard is ``coincident with

program start up.''

III. Authority

Authority for the rule changes proposed in this notice is granted

to EPA by sections 182, 184, 187, and 118 of the Clean Air Act as

amended (42 U.S.C. 7401, et seq.).

IV. Background of the Proposed Amendments

On July 18, 1997, EPA revised the National Ambient Air Quality

Standard (NAAQS) for ozone (62 FR 38856) by promulgating a standard of

0.08 parts per million (ppm) as measured over an 8-hour period. At the

time, EPA indicated its belief that the 8-hour ozone NAAQS should be

implemented under the less prescriptive requirements of subpart 1 of

part D of title I of the CAA rather than the more prescriptive mandates

of subpart 2 of that part. For mandatory I/M--which falls under subpart

2, as opposed to the more flexible subpart 1--this approach to

implementing the 8-hour ozone NAAQS solely under subpart 1 would have

meant that I/M would not be mandatory for any area that was newly

designated under the 8-hour ozone standard (unless the area in question

had previously been required to implement I/M under the 1-hour

standard, in which case the Act's anti-backsliding provisions would

apply).

Various industry groups and states challenged EPA's final rule

promulgating the 8-hour ozone NAAQS, which eventually led to a Supreme

Court ruling, issued in February 2001

was newly

designated under the 8-hour ozone standard (unless the area in question

had previously been required to implement I/M under the 1-hour

standard, in which case the Act's anti-backsliding provisions would

apply).

Various industry groups and states challenged EPA's final rule

promulgating the 8-hour ozone NAAQS, which eventually led to a Supreme

Court ruling, issued in February 2001. Among other things, the Supreme

Court found that EPA's original implementation approach, which did not

provide a role for subpart 2 in implementing the 8-hour NAAQS, was

unreasonable. Specifically, the Court noted EPA could not ignore the

provisions of subpart 2 that ``eliminate[] regulatory discretion''

allowed by subpart 1. The Court also identified several portions of the

CAA's classification scheme under subpart 2 that are ``ill-fitted'' to

the revised standard and remanded the implementation rule to EPA for

the development of a reasonable approach for implementation. Whitman v.

American Trucking Assoc., 121 S.Ct. 916-919 (2001) (Whitman).

The Agency's 8-hour ozone implementation proposal was published in

the Federal Register on June 2, 2003 (68 FR 32802). Key portions of the

June 2, 2003 proposal relevant to I/M (and other subpart 2

requirements) were subsequently promulgated as final in a rulemaking

published in the Federal Register on April 30, 2004 (69 FR 23951). It

is, therefore, appropriate and timely for EPA to update the I/M rule to

clarify the requirements for areas newly required to implement I/M as a

result of being designated and classified under the 8-hour ozone

standard

relevant to I/M (and other subpart 2

requirements) were subsequently promulgated as final in a rulemaking

published in the Federal Register on April 30, 2004 (69 FR 23951). It

is, therefore, appropriate and timely for EPA to update the I/M rule to

clarify the requirements for areas newly required to implement I/M as a

result of being designated and classified under the 8-hour ozone

standard. It is not, however, the intention of this proposal to address

requirements for existing, 1-hour I/M programs which must continue

under the 8-hour standard; those requirements are already addressed

under the anti-backsliding provisions of the April 30, 2004 final

rulemaking as well as the May 12, 2004 policy memo entitled ``1-Hour

Ozone Maintenance Plans Containing Basic I/M Programs.''

Today's proposed revisions to the I/M rule and EPA's rationale for

each are discussed under separate headings below.

A. Amendments to the I/M Performance Standards

1. What Is an I/M Performance Standard?

An I/M performance standard is a collection of program design

elements (such as start date, test type, network type, vehicle

coverage, etc.) which defines a benchmark program to which a state's

proposed program is compared in terms of its potential to reduce

emissions of carbon monoxide (CO) and/or the ozone precursors,

hydrocarbons (HC) and oxides of nitrogen (NOX) by certain

benchmark comparison dates (also known as ``evaluation dates''). Unless

an alternative method or model has been approved by EPA, the mechanism

used to compare the performance standard program to a state's proposed

program is

is compared in terms of its potential to reduce

emissions of carbon monoxide (CO) and/or the ozone precursors,

hydrocarbons (HC) and oxides of nitrogen (NOX) by certain

benchmark comparison dates (also known as ``evaluation dates''). Unless

an alternative method or model has been approved by EPA, the mechanism

used to compare the performance standard program to a state's proposed

program is

the currently applicable version of EPA's mobile source emission factor

model--currently, MOBILE6.2. The MOBILE model uses input files that

include descriptions of the program design elements but which also

include locally variable parameters, such as the age distribution of

the local fleet, average temperature of the local area, local fuel

characteristics, etc.

To determine whether or not a given program meets the performance

standard, it is necessary to produce three MOBILE input files: (1) The

applicable performance standard benchmark program; (2) the state's

proposed program; and (3) a no-I/M scenario which characterizes the

emissions from the local fleet with no I/M program in place. Once these

input files have been created, the MOBILE model is then run to produce

assessments of the emission levels expected with the performance

standard in place, with the proposed program in place, and with no I/M

program in place. The emission reduction ``credits'' associated with

the performance standard and proposed program are calculated by

subtracting the emission levels projected with either program in place

from the emission levels projected with no I/M program in place. If the

emission reduction credits associated with the state's proposed program

are equal to or greater than those associated with the performance

standard, then the state's proposed program is considered to have met

its performance standard.

2

calculated by

subtracting the emission levels projected with either program in place

from the emission levels projected with no I/M program in place. If the

emission reduction credits associated with the state's proposed program

are equal to or greater than those associated with the performance

standard, then the state's proposed program is considered to have met

its performance standard.

2. What Are ``I/M Program Design Elements'' and How Do They Interact

With ``Locally Variable Parameters''?

I/M program design elements are program features most likely to

have a direct impact on the ability of the program to reduce levels of

the three criteria pollutants (CO, HC, and NOX). Factors

that directly influence the level of emission reductions associated

with a given I/M program design include but are not limited to the

following: test frequency, compliance rate, vehicle type coverage,

model year coverage, start date, evaluation date, and test type [e.g.,

idle, IM240, Acceleration Simulation Mode (ASM), onboard diagnostics

(OBD)].

To illustrate how an I/M program design element can interact with a

``locally variable parameter,'' consider model year (MY) coverage and a

local variable such as in-use fleet age distribution. Generally

speaking, the more model years covered, the greater the potential for

reducing emissions, though not all model years are considered equal in

this regard. For example, testing the newest vehicles only provides

marginal, additional emission reductions because new cars are unlikely

to have accumulated the wear and tear that typically lead to high

emissions. On the opposite end of the spectrum, testing the very oldest

cars may not provide much in the way of emission reductions either,

given the small number of such vehicles still capable of being driven

and their limited contribution to a given non-attainment area's overall

vehicle miles traveled (VMT)

cars are unlikely

to have accumulated the wear and tear that typically lead to high

emissions. On the opposite end of the spectrum, testing the very oldest

cars may not provide much in the way of emission reductions either,

given the small number of such vehicles still capable of being driven

and their limited contribution to a given non-attainment area's overall

vehicle miles traveled (VMT). What constitutes optimal model year

coverage will vary from area to area, depending upon the

characteristics of the local, in-use fleet. This local variability (and

its impact on the emission reductions that can potentially be achieved

by a given I/M program) is one of the reasons why the input files used

to demonstrate compliance with an I/M performance standard must include

both the I/M program design elements that define the programs being

compared and the local variables likely to affect the mobile source

emission inventory, like local in-use fleet age distribution, VMT

distribution, average temperature, and local fuel composition.

3. How Much Discretion Does EPA Have in Deciding What I/M Program

Design Elements To Include in a Performance Standard?

In mandating that EPA establish performance standards for I/M

programs, the Clean Air Act Amendments of 1990 were fairly prescriptive

with regard to several of the I/M program design elements that must be

included. For example, EPA's I/M performance standard for areas

designated and classified as having ``serious'' or worse air quality

(i.e., the ``enhanced'' I/M performance standard) is required by the

statute to include annual vehicle testing with at least two tests per

vehicle (an emissions test and a component check to detect tampering

and/or misfueling) covering both passenger cars and light-duty trucks,

with no allowance for any model year exemptions

designated and classified as having ``serious'' or worse air quality

(i.e., the ``enhanced'' I/M performance standard) is required by the

statute to include annual vehicle testing with at least two tests per

vehicle (an emissions test and a component check to detect tampering

and/or misfueling) covering both passenger cars and light-duty trucks,

with no allowance for any model year exemptions. EPA was given more

discretion, however, when it came to determining what specific emission

test and failure threshold combination would apply for any given model

year covered by the performance standard, so that older vehicles

certified to more lenient emission standards would not be subject to

the same stringent I/M testing criteria established for newer, more

technologically advanced vehicles.

4. How Much Discretion Does a State Have in Deciding the Design of Its

Actual I/M Program?

The 1990 CAA specifies certain minimum program design requirements

that must be part of a state's I/M program. For example, all mandatory

I/M programs must include some level of OBD testing, while all enhanced

I/M programs are required to include some form of on-road testing.

Nevertheless, states have far more latitude in designing their own

programs than EPA has in setting the performance standard. For example,

states can adopt biennial programs provided equivalent emission

reductions are achieved and can exempt the newest and/or oldest model

years, while EPA's performance standard was required to be annual and

was not allowed to exempt vehicles based upon model year

rtheless, states have far more latitude in designing their own

programs than EPA has in setting the performance standard. For example,

states can adopt biennial programs provided equivalent emission

reductions are achieved and can exempt the newest and/or oldest model

years, while EPA's performance standard was required to be annual and

was not allowed to exempt vehicles based upon model year. As long as a

state's program meets the 1990 CAA's minimum requirements and can be

shown through modeling to achieve the same or better emission

reductions as the applicable performance standard, the actual design of

the I/M program (whether annual or biennial, with or without model year

exemptions, centralized or decentralized, allowing waivers or not,

using dynamometer-based testing or not, covering heavy-duty trucks or

not, etc.) is for the state to decide. The criteria that a subject area

should consider in designing (or redesigning) its I/M program are

discussed below, under item 10 of this subsection.

5. Why Do EPA's Current Performance Standards Need To Be Revised for

Areas Newly Required To Do I/M Under the 8-Hour Ozone NAAQS?

The current I/M performance standards were written to reflect the

deadlines set by the 1990 CAA for 1-hour ozone non-attainment areas.

For example, the start dates for various elements of the current

performance standards reflect either the actual mandated start dates

for those elements, or what were considered reasonable start dates for

areas newly required to do I/M under the 1-hour standard. These date

assumptions do not make sense under the schedule promulgated for

meeting the 8-hour standard. For example, one current enhanced I/M

performance standard assumes a start date of no later than 1995, while

current 8-hour ozone non-attainment areas were not even designated and

classified until 2004 and are not expected to submit attainment plans

until 2007

M under the 1-hour standard. These date

assumptions do not make sense under the schedule promulgated for

meeting the 8-hour standard. For example, one current enhanced I/M

performance standard assumes a start date of no later than 1995, while

current 8-hour ozone non-attainment areas were not even designated and

classified until 2004 and are not expected to submit attainment plans

until 2007. It is therefore essential to revise the timing assumptions

associated with the I/M performance standards so that they

make sense for 8-hour ozone non-attainment areas new to I/M.

6. What Regulatory Change Does EPA Propose?

EPA proposes to make the following regulatory changes to the basic

I/M performance standard for areas newly required to implement a basic

I/M program as a result of being designated and classified moderate

non-attainment under the 8-hour ozone NAAQS (and meeting the existing

I/M population criteria): (1) Start date: four years after the

effective date of designation and classification under the 8-hour ozone

standard; (2) emission test types: Model Year (MY) 1968-2000--idle, MY

2001 and newer--onboard diagnostic (OBD) check; (3) evaluation date:

six years after the effective date of designation and classification

under the 8-hour ozone standard rounded to the nearest July. All other

basic I/M performance design elements shall be the same as previously

promulgated for 1-hour ozone non-attainment areas (see 40 CFR 51.352)

est types: Model Year (MY) 1968-2000--idle, MY

2001 and newer--onboard diagnostic (OBD) check; (3) evaluation date:

six years after the effective date of designation and classification

under the 8-hour ozone standard rounded to the nearest July. All other

basic I/M performance design elements shall be the same as previously

promulgated for 1-hour ozone non-attainment areas (see 40 CFR 51.352).

For areas newly required to implement an enhanced I/M program as a

result of being designated and classified as serious or higher non-

attainment under the 8-hour ozone NAAQS (and meeting the existing I/M

population criteria for enhanced I/M areas), EPA proposes that an 8-

hour ozone enhanced I/M performance standard be established assuming

the same program design elements as the current low enhanced I/M

performance standard defined at 40 CFR 51.351 (g) but with the

following exceptions: (1) Start date: four years after the effective

date of designation and classification under the 8-hour ozone standard;

(2) emission test types: MY 1968-2000--idle, MY 2001 and newer--onboard

diagnostic (OBD) check; (3) evaluation dates: six years after the

effective date of designation and classification under the 8-hour ozone

standard rounded to the nearest July and the applicable attainment

date, also rounded to the nearest July.

A state's program will be deemed in compliance with the 8-hour

ozone enhanced I/M performance standard if it can demonstrate through

modeling that the proposed program will achieve the same percent

reduction in HC and NOX: (1) As achieved by the performance

standard program based upon an evaluation date set to the six year

anniversary of the effective date of the area's designation and

classification under the 8-hour ozone standard, rounded to the nearest

July and (2) can demonstrate through modeling that the same percent

reduction as achieved under number 1 is still being achieved as of the

first July following the area's attainment date under the 8-hour ozone

standard.

7

n evaluation date set to the six year

anniversary of the effective date of the area's designation and

classification under the 8-hour ozone standard, rounded to the nearest

July and (2) can demonstrate through modeling that the same percent

reduction as achieved under number 1 is still being achieved as of the

first July following the area's attainment date under the 8-hour ozone

standard.

7. Why Does EPA Propose That Only MY 2001 and Newer Vehicles Be

Subjected To the OBD-I/M Check as Part of the Proposed I/M Performance

Standards for Areas New to I/M Under the 8-Hour Ozone Standard When

Vehicles Have Included OBD Systems Since MY 1996? Does This Reflect

EPA's Recommended MY Coverage for Such Testing? Is There Something

Which Prevents Successful Testing of Older (i.e., pre-2001) OBD-

Equipped Vehicles?

EPA's proposed MY coverage for OBD-I/M testing in the 8-hour I/M

performance standards does not reflect the Agency's recommended MY

coverage for such testing nor does it suggest a problem with testing

pre-2001 OBD-equipped vehicles. Since 2000, I/M programs across the

country have been successfully testing MY 1996 and newer vehicles using

the OBD-I/M test, in accordance with EPA requirements and guidance.

Although older OBD-equipped vehicles tend to have higher failure rates

than newer OBD-equipped vehicles, this relationship holds true for all

older versus newer vehicles.

The reason EPA proposes to limit coverage of the OBD test as part

of the proposed 8-hour I/M performance standards goes to the heart of

why the CAA required EPA to establish performance standards as opposed

to mandating program designs: Flexibility. Test type coverage is one of

the mechanisms used in setting an I/M performance standard that can

either increase or all but eliminate the level of flexibility states

will have in designing their own I/M programs

of the proposed 8-hour I/M performance standards goes to the heart of

why the CAA required EPA to establish performance standards as opposed

to mandating program designs: Flexibility. Test type coverage is one of

the mechanisms used in setting an I/M performance standard that can

either increase or all but eliminate the level of flexibility states

will have in designing their own I/M programs. If, for example, EPA

established a performance standard using maximum MY coverage of the

most rigorous test available, the performance standard would

effectively cease to be a ``performance standard'' and would become,

instead, a mandatory program design.

In 1992 when the original I/M performance standards were

established, OBD testing was included in the performance standards only

as an uncredited placeholder because, at the time, no OBD-equipped

vehicles were available for test credit assessment. Since that time,

however, EPA has done extensive testing of OBD-equipped vehicles and

the effectiveness of OBD testing. As a result, EPA's mobile source

emission factor model (currently MOBILE6.2) affords OBD testing the

maximum credit available to any I/M test. This, in turn, means that

what was previously an uncredited placeholder has now become the

driving factor in determining how much or how little flexibility is

reflected in the I/M performance standards.

EPA is proposing MY 2001 and newer as the model year coverage for

the OBD test in the 8-hour I/M performance standards because that is

the level of coverage that has been found (through modeling) to afford

8-hour areas newly subject to I/M the same level of flexibility

included in the existing I/M regulations and currently available to I/M

programs required under the 1-hour standard. MY 2001 was chosen to

ensure that new and existing programs are held to comparable standards

e 8-hour I/M performance standards because that is

the level of coverage that has been found (through modeling) to afford

8-hour areas newly subject to I/M the same level of flexibility

included in the existing I/M regulations and currently available to I/M

programs required under the 1-hour standard. MY 2001 was chosen to

ensure that new and existing programs are held to comparable standards.

EPA invites commenters interested in proposing alternative ranges of

model year coverage to provide their recommendations, including an

explanation addressing why the alternative is preferable to today's

proposal.

8. How Much Flexibility Will States Have in Designing Their Newly

Required, 8-Hour I/M Programs To Meet EPA's Proposed I/M Performance

Standards Under the 8-Hour Ozone Standard?

Under EPA's proposal, areas newly subject to I/M under the 8-hour

ozone standard will have approximately the same level of flexibility

that currently exists for areas subject to I/M as a result of the 1-

hour standard. That said, designing a new I/M program will nevertheless

involve facing different opportunities and/or challenges than were

faced in the mid-1990's when many of today's current programs were

designed. This is because the vehicle fleet is not static; as time

passes--and standards and requirements change--the relative proportion

of old to new technology vehicles is constantly changing, with the

percent and number of older technology vehicles shrinking as newer

technology vehicles begin to dominate the in-use fleet.

In the mid-1990's, fleet turnover was not much of an issue when it

came to designing I/M programs because even though testing technology

had evolved considerably since the simple idle test, the new tests

were, for the most part, downwardly compatible. An IM240 could be used

to test a 1968 model year vehicle just as readily as it could test a

1993 model year vehicle

dominate the in-use fleet.

In the mid-1990's, fleet turnover was not much of an issue when it

came to designing I/M programs because even though testing technology

had evolved considerably since the simple idle test, the new tests

were, for the most part, downwardly compatible. An IM240 could be used

to test a 1968 model year vehicle just as readily as it could test a

1993 model year vehicle. Such is no longer the case with the OBD test,

which, while inexpensive, accurate, easy, and effective, can only be

performed on OBD-equipped vehicles (i.e., light-duty vehicles and

trucks, MY 1996 and newer). Given the substantial difference in capital

investment involved in traditional tailpipe testing

(and especially dynamometer-based testing like the IM240 and ASM)

versus that associated with the OBD test, areas newly required to

implement I/M under the 8-hour standard will face a challenge not faced

by I/M programs which began testing in the 1990's or earlier--namely,

how to take full advantage of the evolving nature of the in-use fleet.

As suggested earlier, one important characteristic of that evolving in-

use fleet is the rate at which OBD-equipped vehicles are becoming an

increasing proportion of any fleet while non-OBD-equipped vehicles play

an ever shrinking role, in terms of absolute numbers as well as overall

contribution to an area's VMT and the local mobile source emission

inventory. This trend toward an OBD majority in-use fleet will only

become more pronounced as time goes on, making the prospect of an I/M

program that relies exclusively (or nearly exclusively) on OBD testing

an attractive alternative to traditional, tailpipe-based testing

role, in terms of absolute numbers as well as overall

contribution to an area's VMT and the local mobile source emission

inventory. This trend toward an OBD majority in-use fleet will only

become more pronounced as time goes on, making the prospect of an I/M

program that relies exclusively (or nearly exclusively) on OBD testing

an attractive alternative to traditional, tailpipe-based testing.

Based upon the time period associated with implementing the 8-hour

ozone standard and the national default rate of fleet turnover from

non-OBD-equipped to OBD-equipped vehicles, EPA believes that both of

today's proposed basic and enhanced I/M performance standards can be

met by a state program that exempts model year 1995 and older vehicles

from testing and only performs the OBD and gas cap test on MY 1996 and

newer, OBD-equipped vehicles. The degree to which the proposed

standards also allow for other forms of flexibility (such as allowing

newer model year exemptions, and/or permitting the testing of vehicles

biennially as opposed to annually) will depend largely upon an area's

locally variable parameters, such as local fleet age and VMT

distributions. Whether adopting such a program will meet the area's

other Clean Air Act goals, however, will vary on a case-by-case basis.

Item 10 of this subsection will discuss some of the criteria states

should consider as they begin the process of developing their newly

required I/M programs (as well as revamping existing programs to

capitalize on evolving vehicle and vehicle testing technology).

9. Is EPA Barring 8-Hour Ozone Non-Attainment Areas Newly Required To

Adopt I/M From Performing Tailpipe Testing?

No. EPA does not have the authority to prohibit I/M programs from

tailpipe testing, nor would it be appropriate to do so. Instead, EPA is

merely providing the flexibility needed to allow areas to exempt

vehicles from tailpipe testing in favor of OBD testing on vehicles MY

1996 and newer, if a state so desires

Non-Attainment Areas Newly Required To

Adopt I/M From Performing Tailpipe Testing?

No. EPA does not have the authority to prohibit I/M programs from

tailpipe testing, nor would it be appropriate to do so. Instead, EPA is

merely providing the flexibility needed to allow areas to exempt

vehicles from tailpipe testing in favor of OBD testing on vehicles MY

1996 and newer, if a state so desires. However, EPA does recommend that

8-hour non-attainment areas newly required to implement I/M programs

look closely at their local fleet characteristics such as age

distributions, the fraction of local VMT attributable to MY 1995 and

older vehicles, and the rate of fleet turn-over from non-OBD-equipped

vehicles to OBD-equipped vehicles to assess the financial viability of

various program designs before deciding on an appropriate program

design. For example, based upon the number of such vehicles in the

local fleet, can the cost of starting up and running a dynamometer-

based testing network dedicated to MY 1995 and older vehicles be

recouped without charging an exorbitant per-vehicle test fee or

subsidizing the program through some alternative funding mechanism,

such as an across-the-board increase in vehicle registration fees?

10. What Are Some of the Factors That Should Be Considered as Areas New

to I/M Begin Designing Their Vehicle Inspection Programs in Response to

the 8-Hour Ozone Standard?

As newly required (as well as existing) I/M programs look at ways

to optimize those programs, it is appropriate to consider what

programmatic and financial efficiencies and other improvements might be

feasible. To facilitate this process, in 2002, EPA (in consultation

with the states and other stakeholders) developed a list of questions

and/or issues states should consider as they make choices about their

existing and/or future I/M programs, entitled ``Considerations for

State I/M Program Optimization,'' \2\ an abbreviated version of which

is provided in the list of criteria below

ight be

feasible. To facilitate this process, in 2002, EPA (in consultation

with the states and other stakeholders) developed a list of questions

and/or issues states should consider as they make choices about their

existing and/or future I/M programs, entitled ``Considerations for

State I/M Program Optimization,'' \2\ an abbreviated version of which

is provided in the list of criteria below.

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\2\ A copy of the full document from which these criteria are

drawn is located in the docket for this action (Docket

OAR-2004-0095).

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In providing this list, it is not EPA's intention to advocate for

one I/M program type or element versus another, or to make formal

recommendations. The history of I/M has clearly shown that what is

appropriate for one area is not always appropriate for another. The

following list is therefore intended merely to outline the various

factors that should be taken into consideration when designing (or

redesigning) the optimal I/M program for a given area. It should be

used to supplement whatever I/M optimization efforts may already be

underway, to raise issues that may have been overlooked, and to

otherwise ensure that the optimization process is as comprehensive as

possible and does not lead to unintended consequences.

Although today's proposal focuses on those 8-hour ozone non-

attainment areas brand-new to I/M, the list of criteria provided below

includes considerations that may be relevant to both new and/or

existing I/M programs.\3\ States should consult with their EPA Regional

offices early in the I/M optimization process, and such efforts should

be conducted taking the following factors into consideration:

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and-new to I/M, the list of criteria provided below

includes considerations that may be relevant to both new and/or

existing I/M programs.\3\ States should consult with their EPA Regional

offices early in the I/M optimization process, and such efforts should

be conducted taking the following factors into consideration:

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\3\ It should be noted that any revision to an existing I/M

program which is part of a previously approved SIP will require the

submission and approval of a SIP revision prior to those revisions

going into effect.

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What portion of the state's emissions inventories for

ozone, CO, and/or air toxics do on-road mobile sources constitute?

What portion of the state's attainment, maintenance, and/

or Rate-of-Progress (ROP) plans does and/or will I/M constitute?

How important will I/M reductions be in demonstrating

attainment and transportation conformity?

Are there additional emission reduction benefits an area

may need from an I/M program in addition to what is needed to meet the

performance standard?

Alternatively, how much credit can an area afford to lose

without negatively affecting these plans?

If an area with an existing I/M program is redesignated to

attainment, what changes (if any) can be made without backsliding or

interfering with any other CAA requirement?

Even if an existing I/M program plays a relatively modest

role in a state's 1-hour ozone standard attainment strategy, what role

will it play in attaining the 8-hour ozone standard?

Is the I/M program useful in meeting an area's goal for

reducing air toxics? Will an OBD-only program meet this goal?

What are the legal and/or contractual constraints

associated with optimizing the I/M program?

What number of MYs should be exempted to strike the right

balance among competing factors such as the likelihood of failure,

equity to vehicle owners of exposure to program

tandard?

Is the I/M program useful in meeting an area's goal for

reducing air toxics? Will an OBD-only program meet this goal?

What are the legal and/or contractual constraints

associated with optimizing the I/M program?

What number of MYs should be exempted to strike the right

balance among competing factors such as the likelihood of failure,

equity to vehicle owners of exposure to program requirements, and the

cost of testing clean vehicles?

What is the proportion of pre- to post-MY 1996 vehicles in

the local fleet? When will post-MY 1996 vehicles predominate?

How do the pre- and post-MY 1996 fleets compare in terms

of the VMT attributed to each? When will MY 1996

and newer vehicles make up the majority of the area's VMT?

What proportion of the local mobile source emission

inventory is attributable to pre- vs. post-MY 1996 vehicles?

What are the projected failure rates for the pre- vs.

post-MY 1996 fleets?

If an area already has an I/M program, how recent was the

last change to the program? Will changing the program again undermine

public confidence in the program? Will voluntarily changing the program

make it vulnerable to pressure to incorporate additional, unwelcome

changes?

Will changing an existing program require changes to the

program's legal authority?

B. Amendments to Program Evaluation Requirements

1. What Is the Program Evaluation Requirement?

Section 182(c)(3)(C) of the 1990 CAA requires that each state

subject to enhanced I/M shall ``biennially prepare a report to the

Administrator which assesses the emission reductions achieved by the

program required under this paragraph based upon data collected during

the inspection and repair of vehicles

eriod prior to the

beginning of program evaluation testing is comparable to that permitted

under the original I/M program evaluation requirements and is intended

to allow new programs under the 8-hour ozone standard the opportunity

to resolve the sorts of start-up problems typical of such programs in

their first few months of implementation.

C. Amendments to the Basic I/M Waiver Requirements

1. What Are the Basic I/M Waiver Requirements?

Neither the 1990 CAA nor the existing I/M rule require (or

prohibit) basic I/M programs to grant waivers from the program's repair

requirements once a minimum dollar limit has been spent toward repairs

relevant to the cause of failure. To help ensure that the issuance of

waivers did not become excessive in the basic I/M programs that chose

to allow them, EPA established specific repair expenditure levels that

had to be met prior to a waiver's being granted in a basic I/M program

as part of its original 1992 I/M rule. Specifically, for pre-1981 model

year vehicles, a minimum of $75 has to be spent on relevant repairs

while for 1981 and newer vehicles, the minimum expenditure level is

$200. Because several basic I/M programs were already operating at the

time the 1992 rule was promulgated--some complying with the waiver

allowances provided in the rule, some not--EPA also established a

deadline by which the new requirements were to be met (i.e., ``no later

than January 1, 1998'').

2

ent on relevant repairs

while for 1981 and newer vehicles, the minimum expenditure level is

$200. Because several basic I/M programs were already operating at the

time the 1992 rule was promulgated--some complying with the waiver

allowances provided in the rule, some not--EPA also established a

deadline by which the new requirements were to be met (i.e., ``no later

than January 1, 1998'').

2. What Regulatory Change Does EPA Propose?

EPA proposes to amend section 51.360(a)(6) which sets the deadline

for establishing waiver limits for those basic I/M programs choosing to

allow waivers (currently, ``no later than January 1, 1998'') to read

``January 1, 1998, or coincident with program start up, whichever is

later.'' Since all existing programs should already be meeting these

requirements and requiring spending limits prior to waiver will impose

no additional program implementation delay in areas newly starting

programs, EPA sees no reason to delay implementation of these

requirements for either new or existing programs.

D. Amendments to Update SIP Submission Deadlines

1. What Are the Current SIP Submission Deadlines?

Under the CAA as amended in 1990, areas required to implement basic

I/M programs were to submit SIP revisions for such programs

``immediately after the date of enactment'' of the 1990 Act. The basic

I/M programs submitted under this provision were to be based upon pre-

existing EPA I/M guidance that was in effect immediately before passage

of the 1990 Act. As a separate (but related) matter, the 1990 CAA

required EPA to revise this pre-1990 I/M guidance within 12 months of

enactment. Enhanced I/M SIPs were required to be submitted 1 year after

EPA was to have published its revised I/M guidance (i.e., two years

after enactment). Previously submitted basic I/M SIPs were required to

be revised to incorporate EPA's revised I/M guidance

he 1990 Act. As a separate (but related) matter, the 1990 CAA

required EPA to revise this pre-1990 I/M guidance within 12 months of

enactment. Enhanced I/M SIPs were required to be submitted 1 year after

EPA was to have published its revised I/M guidance (i.e., two years

after enactment). Previously submitted basic I/M SIPs were required to

be revised to incorporate EPA's revised I/M guidance.

The Act did not define what was meant by the term ``immediately,''

nor did it attempt to explain how such a requirement might be met,

especially for areas new to the I/M requirement and therefore lacking

the necessary legal authority and implementing regulations. To provide

basic I/M program areas a reasonable amount of time in which to prepare

and submit the required basic I/M SIP, EPA proposed to use its

authority to grant conditional approvals under section 110(k)(4) of the

1990 CAA to give these areas up to 1 year after conditional approval of

a so-called ``committal SIP''.\4\ EPA was challenged on its attempt to

extend I/M SIP deadlines through the SIP approval process and although

the court found that 110(k)(4) could not be used to effect such

extensions, in its decision, the court identified the states' need for

further guidance from EPA in the case of enhanced I/M programs as the

deciding factor regarding whether or not a given I/M deadline extension

was justified. See Natural Resources Defense Council, Inc. v. EPA, et

al., 22 F.3d 1125 (D.C. Cir. 1994). Because existing pre-1990 I/M

policy was adequate for a state to develop and submit a basic I/M SIP,

the court ruled that EPA's attempt to extend the basic I/M SIP

submittal deadline was unjustified in that case. In the case of

enhanced I/M programs, however, existing pre-1990 I/M policy was not

adequate and enhanced I/M areas could not proceed with SIP development

until after EPA published its revised guidance

-1990 I/M

policy was adequate for a state to develop and submit a basic I/M SIP,

the court ruled that EPA's attempt to extend the basic I/M SIP

submittal deadline was unjustified in that case. In the case of

enhanced I/M programs, however, existing pre-1990 I/M policy was not

adequate and enhanced I/M areas could not proceed with SIP development

until after EPA published its revised guidance. In this latter case,

therefore, the court ruled that although 110(k)(4) should not have been

used, extending the SIP submittal deadline for enhanced I/M SIPs was

justified, given that EPA's guidance was not published until 10 days

before those SIPs were due.

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\4\ A ``committal SIP'' consisted of a commitment from a state's

governor or his/her designee to meet a list of milestones leading to

the submittal of a full SIP within 1 year.

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Unlike 1990 when basic and enhanced I/M programs differed with

regard to the availability of adequate existing EPA guidance from which

to proceed with SIP development, under the 8-hour ozone standard newly

required I/M programs of either variety are equally dependent upon

EPA's

revising its existing I/M regulations. As previously discussed, many of

the timing-related requirements of the I/M rule are no longer relevant

within the context of the 8-hour ozone standard and must therefore be

revised before states can proceed with I/M SIP development. For

example, if we were to apply the existing basic I/M performance

standard (as written) to a newly required, basic I/M program area under

the new standards, that area would be required to demonstrate that back

in 1996 (when it had no I/M program in place) it was nevertheless

achieving the same or better emission reductions from that non-existent

program as it would have achieved if the performance standard program

had been in place

ng basic I/M performance

standard (as written) to a newly required, basic I/M program area under

the new standards, that area would be required to demonstrate that back

in 1996 (when it had no I/M program in place) it was nevertheless

achieving the same or better emission reductions from that non-existent

program as it would have achieved if the performance standard program

had been in place. Clearly, this would be an absurd requirement, and

that is why EPA is proposing to adopt a more rational approach, as

discussed below. Thus EPA believes that consistent with the NRDC case,

it is appropriate to interpret the I/M SIP submittal requirement of the

CAA to allow areas subject to that requirement to have a reasonable

time after promulgation of EPA's revised I/M rulemaking to adopt and

submit such programs. EPA concludes that any other interpretation of

the statute would produce absurd results.

2. What Regulatory Change Does EPA Propose?

Because areas newly required to adopt either basic or enhanced I/M

programs under the 8-hour ozone standard are unable to produce a

complete and approvable SIP until EPA has revised its existing I/M

regulations, EPA proposes to update section 51.372 (state

implementation plan submissions) to clarify that such areas are

required to submit their I/M SIPs, whether basic or enhanced, within 1

year after the effective date of EPA's taking final action on the I/M

rule revisions proposed here today. For areas newly designated as non-

attainment under the 8-hour ozone standard after finalization of this

proposal, we propose that those areas submit their I/M SIPs within 1

year of the effective date of their designation and classification

eir I/M SIPs, whether basic or enhanced, within 1

year after the effective date of EPA's taking final action on the I/M

rule revisions proposed here today. For areas newly designated as non-

attainment under the 8-hour ozone standard after finalization of this

proposal, we propose that those areas submit their I/M SIPs within 1

year of the effective date of their designation and classification.

Based upon its experience with the submission of I/M SIPs in response

to the 1990 Act's requirements for 1-hour I/M programs, EPA deems this

to be a reasonable amount of time in which to develop and submit an I/M

SIP, given the states' need to secure legal authority, develop

implementing regulations, provide notice-and-comment opportunity, etc.

As noted by EPA both in its general preamble published after the 1990

amendments to the Act and in the 1992 I/M rules, 57 FR 13498, 13517 and

57 FR 52950, 52970, respectively, EPA has long believed that one year

is an appropriate time period for states to obtain necessary

legislative authority to adopt and submit an I/M program.

E. Amendments To Update Implementation Deadlines

1. What Are the Current Implementation Deadlines?

Under section 51.373 of the 1992 I/M rule, non-attainment areas

required to begin (or upgrade) basic I/M programs as a result of their

classification under the 1990 CAA were given until January 1994 to

begin implementing if a decentralized program was adopted, or July

1994, if a centralized program was adopted. Areas newly required to

adopt basic I/M as a result of being designated and classified after

promulgation of the 1992 I/M rule were required to begin implementation

one year after obtaining legal authority (if a decentralized program

was adopted) or two years after obtaining legal authority (if a

centralized program was adopted)

as adopted, or July

1994, if a centralized program was adopted. Areas newly required to

adopt basic I/M as a result of being designated and classified after

promulgation of the 1992 I/M rule were required to begin implementation

one year after obtaining legal authority (if a decentralized program

was adopted) or two years after obtaining legal authority (if a

centralized program was adopted). Enhanced I/M program areas required

as a result of being designated and classified under the 1990 CAA were

allowed to phase-in implementation of the enhanced I/M program between

January 1, 1995 and January 1, 1996, provided at least 30% of the I/M

vehicle population was subject to the full requirements of the program

as of January 1, 1995. Areas newly required to adopt enhanced I/M as a

result of being designated and classified after promulgation of the

1992 I/M rule were required to begin implementation two years after

obtaining legal authority. Separately, section 51.373 of the I/M rule

established a range of deadline options for implementation of the OBD

checks required of all I/M programs under the 1990 CAA. While the

deadline for requiring repairs based upon the OBD test varied depending

upon the phase-in option chosen by the program, all I/M programs

required as a result of being designated and classified under the 1-

hour ozone standard were required to begin some form of OBD testing no

later than January 1, 2003.

2. What Regulatory Change Does EPA Propose?

EPA proposes to revise section 51.373 (implementation deadlines) to

replace the current fixed implementation deadlines for I/M programs

required as a result of designation and classification after 1992 with

a new, relative implementation deadline for areas newly subject to I/M

as a result of being designated non-attainment under the 8-hour ozone

standard and classified as moderate non-attainment or higher

to revise section 51.373 (implementation deadlines) to

replace the current fixed implementation deadlines for I/M programs

required as a result of designation and classification after 1992 with

a new, relative implementation deadline for areas newly subject to I/M

as a result of being designated non-attainment under the 8-hour ozone

standard and classified as moderate non-attainment or higher.

Specifically, EPA proposes that all I/M programs newly required based

upon their designation and classification under the 8-hour ozone

standard--whether basic or enhanced--begin full implementation of the

required program within 4 years after the effective date of designation

and classification under the 8-hour ozone standard. EPA believes that

the proposed implementation deadline is reasonable and necessary to

allow for sufficient time to construct and start-up a program after

program adoption following EPA promulgation of final guidance, as well

as to provide a minimum of one full, biennial test cycle prior to the

first milestone date for newly required I/M programs under the 8-hour

ozone standard (i.e., the attainment deadline for moderate 8-hour ozone

non-attainment areas, which is 6 years after the effective date of

designation and classification, as described below).

Additionally, EPA proposes to clarify that the deadline for

beginning pass-fail OBD checks for areas newly required to perform I/M

testing as a result of being designated and classified under the 8-hour

ozone standard is coincident with implementation of all other program

elements, i.e., within 4 years after the effective date of designation

and classification. Since current model year vehicles are all OBD

equipped and viable OBD test methods have been available for a number

of years EPA sees no reason to delay start up of OBD testing beyond the

start date of the program as a whole.

V. Discussion of Major Issues

A. Impact on Existing I/M Programs

her program

elements, i.e., within 4 years after the effective date of designation

and classification. Since current model year vehicles are all OBD

equipped and viable OBD test methods have been available for a number

of years EPA sees no reason to delay start up of OBD testing beyond the

start date of the program as a whole.

V. Discussion of Major Issues

A. Impact on Existing I/M Programs

The proposed amendments to the I/M rule do not change the

requirements that currently apply to existing I/M programs required as

a result of being classified under the 1-hour ozone standard. The

proposed amendments are directed specifically at those areas that will

be newly required to implement I/M as a result of being designated and

classified under the 8-hour ozone standard. The intention of these

proposed amendments is to ensure that these new program areas are

afforded generally the same level of flexibility in program design and

implementation as is currently available to existing, 1-hour I/M

programs. Readers interested in learning the conditions under which an

existing 1-hour I/M program must continue operation under the 8-hour

standard should consult the anti-backsliding provisions of the April

30, 2004 final rulemaking which

established several key requirements for implementing the 8-hour ozone

standard (69 FR 23931).\5\

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\5\ Additional guidance on anti-backsliding under the 8-hour

standard and how it applies to I/M programs can be found in the May

12, 2004 policy memo signed by Tom Helms, Ozone Policy and

Strategies Group, and Leila Cook, State Measures and Conformity

Group, entitled ``1-Hour Ozone Maintenance Plans Containing Basic I/

M Programs,'' a copy of which is contained in the docket for this

proposed rulemaking.

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B. Impact on Future I/M Programs

the May

12, 2004 policy memo signed by Tom Helms, Ozone Policy and

Strategies Group, and Leila Cook, State Measures and Conformity

Group, entitled ``1-Hour Ozone Maintenance Plans Containing Basic I/

M Programs,'' a copy of which is contained in the docket for this

proposed rulemaking.

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B. Impact on Future I/M Programs

The proposed amendments are intended specifically for those areas

which currently do not perform I/M testing, but will be required to do

so as a result of being designated and classified under the 8-hour

ozone standard. Should they be made final, these amendments will allow

future I/M program areas the flexibility necessary to design from the

ground up reasonable, cost effective, motorist-friendly I/M programs

that take full advantage of advances in vehicle and vehicle-testing

technology, as well as fleet turnover. The level of flexibility

proposed to be provided for these new program areas is comparable to

the level of flexibility already available to existing 1-hour I/M

programs.

VI. Economic Costs and Benefits

Today's proposed revisions provide states with an incentive to

increase the cost effectiveness and efficiency of future I/M programs.

The proposal, if finalized, will lessen rather than increase the

potential economic burden on states of implementing such programs.

Furthermore, states are under no obligation, legal or otherwise, to

modify existing plans meeting the previously applicable requirements as

a result of today's proposal.

VII. Public Participation

EPA desires full public participation in arriving at final

decisions in this rulemaking action. EPA solicits comments on all

aspects of this proposal from all parties. Wherever applicable, full

supporting data and detailed analysis should also be submitted to allow

EPA to make maximum use of the comments. All comments should be

directed to the Air Docket, Docket No. OAR-2004-0095.

VIII. Administrative Requirement

c participation in arriving at final

decisions in this rulemaking action. EPA solicits comments on all

aspects of this proposal from all parties. Wherever applicable, full

supporting data and detailed analysis should also be submitted to allow

EPA to make maximum use of the comments. All comments should be

directed to the Air Docket, Docket No. OAR-2004-0095.

VIII. Administrative Requirement

A. Executive Order 12866: Regulatory Planning and Review

Under Executive Order 12866, (58 FR 51735; October 4, 1993) the

Agency must determine whether the regulatory action is ``significant''

and therefore subject to OMB review and the requirements of the

Executive Order. The Order defines significant ``regulatory action'' as

one that is likely to result in a rule that may:

(1) Have an annual effect on the economy of $100 million or more,

or otherwise adversely affect in a material way the economy, a sector

of the economy, productivity, competition, jobs, the environment,

public health or safety, or State, local, or tribal governments or

communities;

(2) Create a serious inconsistency or otherwise interfere with an

action taken or planned by another agency;

(3) Materially alter the budgetary impact of entitlements, grants,

user fees, or loan programs or the rights and obligations of recipients

thereof;

(4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

the Executive Order.

Pursuant to the terms of Executive Order 12866, OMB has notified

EPA that it considers this a ``significant regulatory action'' within

the meaning of the Executive Order. EPA has submitted this action to

OMB for review. Changes made in response to OMB suggestions or

recommendations will be documented in the public record.

B. Paperwork Reduction Act

inciples set forth in

the Executive Order.

Pursuant to the terms of Executive Order 12866, OMB has notified

EPA that it considers this a ``significant regulatory action'' within

the meaning of the Executive Order. EPA has submitted this action to

OMB for review. Changes made in response to OMB suggestions or

recommendations will be documented in the public record.

B. Paperwork Reduction Act

There are no additional information requirements in this proposed

rule beyond those already imposed by the existing I/M rule which

require the approval of the Office of Management and Budget under the

Paperwork Reduction Act 44 U.S.C. 3501 et seq.

C. Regulatory Flexibility Act

Pursuant to section 605(b) of the Regulatory Flexibility Act, 5

U.S.C. 605(b), the Administrator certifies that this proposal will not

have a significant economic impact on a substantial number of small

entities and, therefore, is not subject to the requirement of a

Regulatory Impact Analysis. A small entity may include a small

government entity or jurisdiction. This certification is based on the

fact that the I/M areas impacted by the proposed rulemaking do not meet

the definition of a small government jurisdiction, that is,

``governments of cities, counties, towns, townships, villages, school

districts, or special districts, with a population of less than

50,000.'' The basic and enhanced I/M requirements only apply to

urbanized areas with population in excess of 200,000 depending on

location. Furthermore, the impact created by the proposed action does

not increase the preexisting burden of the existing rules which this

proposal seeks to amend.

D. Unfunded Mandates Reform Act

ool

districts, or special districts, with a population of less than

50,000.'' The basic and enhanced I/M requirements only apply to

urbanized areas with population in excess of 200,000 depending on

location. Furthermore, the impact created by the proposed action does

not increase the preexisting burden of the existing rules which this

proposal seeks to amend.

D. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public

Law 104-4, establishes requirements for Federal agencies to assess the

effects of their regulatory actions on State, local, and tribal

governments and the private sector. Under section 202 of the UMRA, EPA

generally must prepare a written statement, including a cost-benefit

analysis, for proposed and final rules with ``Federal mandates'' that

may result in expenditures to State, local, and tribal governments, in

the aggregate, or to the private sector, of $100 million or more in any

one year. Before promulgating an EPA rule for which a written statement

is needed, section 205 of the UMRA generally requires EPA to identify

and consider a reasonable number of regulatory alternatives and adopt

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

that achieves the objectives of the rule. The provisions of section 205

do not apply when they are inconsistent with applicable law. Moreover,

section 205 allows EPA to adopt an alternative other than the least

costly, most cost-effective or least burdensome alternative if the

Administrator publishes with the final rule an explanation why that

alternative was not adopted. Before EPA establishes any regulatory

requirements that may significantly or uniquely affect small

governments, including tribal governments, it must have developed under

section 203 of the UMRA a small government agency plan

east

costly, most cost-effective or least burdensome alternative if the

Administrator publishes with the final rule an explanation why that

alternative was not adopted. Before EPA establishes any regulatory

requirements that may significantly or uniquely affect small

governments, including tribal governments, it must have developed under

section 203 of the UMRA a small government agency plan. The plan must

provide for notifying potentially affected small governments, enabling

officials of affected small governments to have meaningful and timely

input in the development of EPA regulatory proposals with significant

Federal intergovernmental mandates, and informing, educating, and

advising small governments on compliance with the regulatory

requirements.

EPA has determined that this proposed rule itself does not contain

a Federal mandate that may result in expenditures of $100 million or

more for State, local, and tribal governments, in the aggregate, or the

private sector in any one year. The primary purpose of this proposed

rule is to amend the existing federal I/M regulations to provide

flexibility in how the regulations cover areas newly designated non-

attainment under the 8-hour ozone ambient air quality standards. Clean

Air Act sections 182(b)(4) and 182(c)(3) require the applicability of

I/M to such areas. Thus, although this rule explains how I/M

should be conducted, it merely implements already established law that

imposes I/M requirements and does not itself impose requirements that

may result in expenditures of $100 million or more in any year. The

intention of this proposal is to improve the I/M regulation by

implementing the rule in a more practicable manner and/or to clarify I/

M requirements that already exist

explains how I/M

should be conducted, it merely implements already established law that

imposes I/M requirements and does not itself impose requirements that

may result in expenditures of $100 million or more in any year. The

intention of this proposal is to improve the I/M regulation by

implementing the rule in a more practicable manner and/or to clarify I/

M requirements that already exist. None of these proposed amendments

impose any additional burdens beyond that already imposed by applicable

federal law; thus, today's proposed rule is not subject to the

requirements of sections 202 and 205 of the UMRA and EPA has not

prepared a statement with respect to budgetary impacts.

E. Executive Order 13132: Federalism

Executive Order 13132, Federalism (64 FR 43255, August 10, 1999),

revokes and replaces Executive Orders 12612 (Federalism) and 12875

(Enhancing the Intergovernmental Partnership). Executive Order 13132

requires EPA to develop an accountable process to ensure ``meaningful

and timely input by State and local officials in the development of

regulatory policies that have federalism implications.'' ``Policies

that have federalism implications'' is defined in the Executive Order

to include regulations that have ``substantial direct effects on the

States, on the relationship between the national government and the

States, or on the distribution of power and responsibilities among the

various levels of government.'' Under Executive Order 13132, EPA may

not issue a regulation that has federalism implications, that imposes

substantial direct compliance costs, and that is not required by

statute, unless the Federal government provides the funds necessary to

pay the direct compliance costs incurred by State and local

governments, or EPA consults with State and local officials early in

the process of developing the regulation

der 13132, EPA may

not issue a regulation that has federalism implications, that imposes

substantial direct compliance costs, and that is not required by

statute, unless the Federal government provides the funds necessary to

pay the direct compliance costs incurred by State and local

governments, or EPA consults with State and local officials early in

the process of developing the regulation. EPA also may not issue a

regulation that has federalism implications and that preempts State law

unless the Agency consults with State and local officials early in the

process of developing the proposed regulation.

If EPA complies by consulting, Executive Order 13132 requires EPA

to provide to the Office of Management and Budget (OMB), in a

separately identified section of the preamble to the rule, a federalism

summary impact statement (FSIS). The FSIS must include a description of

the extent of EPA's prior consultation with State and local officials,

a summary of the nature of their concerns and the Agency's position

supporting the need to issue the regulation, and a statement of the

extent to which the concerns of State and local officials have been

met. Also, when EPA transmits a draft rule with federalism implications

to OMB for review pursuant to Executive Order 12866, EPA must include a

certification from the Agency's Federalism Official stating that EPA

has met the requirements of Executive Order 13132 in a meaningful and

timely manner.

This proposed rule, that amends a regulation that is required by

statute, will not have substantial direct effects on the States, on the

relationship between the national government and the States, or on the

distribution of power and responsibilities among the various levels of

government, as specified in Executive Order 13132

ments of Executive Order 13132 in a meaningful and

timely manner.

This proposed rule, that amends a regulation that is required by

statute, will not have substantial direct effects on the States, on the

relationship between the national government and the States, or on the

distribution of power and responsibilities among the various levels of

government, as specified in Executive Order 13132. The Clean Air Act

requires I/M to apply in certain non-attainment areas as a matter of

law, and this proposed rule merely provides areas newly designated as

non-attainment under the 8-hour ozone standard additional flexibility

with regard to meeting their existing statutory obligations.

In summary, this proposed rule is required primarily by the

statutory requirements imposed by the Clean Air Act, and the proposed

rule by itself will not have a substantial impact on States. Thus, the

requirements of section 6 of the Executive Order do not apply to this

proposed rule.

F. Executive Order 13175: Consultation and Coordination With Indian

Tribal Governments

Executive Order 13175: ``Consultation and Coordination with Indian

Tribal Governments'' (65 FR 67249, November 6, 2000) requires EPA to

develop an accountable process to ensure ``meaningful and timely input

by tribal officials in the development of regulatory policies that have

tribal implications.'' ``Policies that have tribal implications'' is

defined in the Executive Order to include regulations that have

``substantial direct effects on one or more Indian tribes, on the

relationship between the Federal government and the Indian tribes, or

on the distribution of power and responsibilities between the Federal

government and Indian tribes.''

Today's amendments to the I/M rule do not significantly or uniquely

affect the communities of Indian tribal governments

der to include regulations that have

``substantial direct effects on one or more Indian tribes, on the

relationship between the Federal government and the Indian tribes, or

on the distribution of power and responsibilities between the Federal

government and Indian tribes.''

Today's amendments to the I/M rule do not significantly or uniquely

affect the communities of Indian tribal governments. Specifically, this

proposed rule would incorporate into the I/M rule flexible provisions

addressing newly designated 8-hour ozone non-attainment areas subject

to I/M requirements under the Act, and these provisions would not have

substantial direct effects on tribal governments, on the relationship

between the Federal government and Indian tribes, or on the

distribution of power and responsibilities between the Federal

government and Indian tribes, as specified in Executive Order 13175.

Accordingly, the requirements of Executive Order 13175 are not

applicable to this proposal.

G. Executive Order 13045: Protection of Children From Environmental

Health and Safety Risks

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.

This proposed rule is not subject to Executive Order 13045 because

it is not economically significant within the meaning of Executive

Order 12866 and does not involve the consideration of relative

environmental health or safety risks.

on children, and explain why the

planned regulation is preferable to other potentially effective and

reasonably feasible alternatives considered by the Agency.

This proposed rule is not subject to Executive Order 13045 because

it is not economically significant within the meaning of Executive

Order 12866 and does not involve the consideration of relative

environmental health or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy

Supply, Distribution or Use

This rule is not subject to Executive Order 13211, ``Action

Concerning Regulations That Significantly Affect Energy Supply,

Distribution, or Use'' (66 FR 28355; May 22, 2001) because it will not

have a significant adverse effect on the supply, distribution, or use

of energy. Further, we have determined that this proposed rule is not

likely to have any significant adverse effects on energy supply.

I. National Technology Transfer and Advancement Act

Section 12(d) of the National Technology Transfer and Advancement

Act of 1995 (``NTTAA''), Public Law 104-113, section 12(d) (15 U.S.C.

272 note) directs EPA to use voluntary consensus standards in its

regulatory activities unless to do so would be inconsistent with

applicable law or otherwise impractical. Voluntary consensus standards

are technical standards (e.g., materials specifications, test methods,

sampling procedures, and

business practices) that are developed or adopted by voluntary

consensus standards bodies. The NTTAA directs EPA to provide Congress,

through OMB, explanations when the Agency decides not to use available

and applicable voluntary consensus standards.

This proposed rulemaking does not involve technical standards.

Therefore, the use of voluntary consensus standards does not apply to

this proposed rule.

List of Subjects in 40 CFR Part 51

Environmental protection, Administrative practice and procedure,

Air pollution control, Transportation.

lanations when the Agency decides not to use available

and applicable voluntary consensus standards.

This proposed rulemaking does not involve technical standards.

Therefore, the use of voluntary consensus standards does not apply to

this proposed rule.

List of Subjects in 40 CFR Part 51

Environmental protection, Administrative practice and procedure,

Air pollution control, Transportation.

Dated: December 22, 2004.

Michael O. Leavitt,

Administrator.

For the reasons set out in the preamble, part 51 of chapter I,

title 40 of the Code of Federal Regulations is proposed to be amended

as follows:

PART 51--[AMENDED]

1. The authority citation for Part 51 continues to read as follows:

Authority: 23 U.S.C. 101; 42 U.S.C. 7401-7671q.

2. Section 51.351 is proposed to be amended by revising paragraph

(c) and adding a new paragraph (i) to read as follows:

Sec. 51.351 Enhanced I/M performance standard.

* * * * *

(c) On-board diagnostics (OBD). For those areas required to

implement an enhanced I/M program prior to the effective date of

designation and classifications under the 8-hour ozone standard, the

performance standard shall include inspection of all model year 1996

and later light-duty vehicles and light-duty trucks equipped with

certified on-board diagnostic systems, and repair of malfunctions or

system deterioration identified by or affecting OBD systems as

specified in Sec. 51.357, and assuming a start date of 2002 for such

testing. For areas required to implement enhanced I/M as a result of

designation and classification under the 8-hour ozone standard, the

performance standard defined in paragraph (i) of this section shall

include inspection of all model year 2001 and later light-duty vehicles

and light-duty trucks equipped with certified on-board diagnostic

systems, and repair of malfunctions or system deterioration identified

by or affecting OBD systems as specified in Sec

f

designation and classification under the 8-hour ozone standard, the

performance standard defined in paragraph (i) of this section shall

include inspection of all model year 2001 and later light-duty vehicles

and light-duty trucks equipped with certified on-board diagnostic

systems, and repair of malfunctions or system deterioration identified

by or affecting OBD systems as specified in Sec. 51.357, and assuming

a start date of 4 years after the effective date of designation and

classification under the 8-hour ozone standard.

* * * * *

(i) Enhanced performance standard for areas designated and

classified under the 8-hour ozone standard. Areas required to implement

an enhanced I/M program as a result of being designated and classified

under the 8-hour ozone standard, must meet or exceed the HC and

NOX emission reductions achieved by the model program

defined below:

(1) Network type. Centralized testing.

(2) Start date. 4 years after the effective date of designation and

classification under the 8-hour ozone standard.

(3) Test frequency. Annual testing.

(4) Model year coverage. Testing of 1968 and newer vehicles.

(5) Vehicle type coverage. Light duty vehicles, and light duty

trucks, rated up to 8,500 pounds GVWR.

(6) Emission test type. Idle testing (as described in appendix B of

subpart S) for 1968-2000 vehicles; onboard diagnostic checks on 2001

and newer vehicles.

(7) Emission standards. Those specified in 40 CFR part 85, subpart

W.

(8) Emission control device inspections. Visual inspection of the

positive crankcase ventilation valve on all 1968 through 1971 model

year vehicles, inclusive, and of the exhaust gas recirculation valve on

all 1972 and newer model year vehicles.

(9) Evaporative system function checks. None, with the exception of

those performed by the OBD system on vehicles so-equipped and only for

model year 2001 and newer vehicles.

(10) Stringency. A 20% emission test failure rate among pre-1981

model year vehicles.

8 through 1971 model

year vehicles, inclusive, and of the exhaust gas recirculation valve on

all 1972 and newer model year vehicles.

(9) Evaporative system function checks. None, with the exception of

those performed by the OBD system on vehicles so-equipped and only for

model year 2001 and newer vehicles.

(10) Stringency. A 20% emission test failure rate among pre-1981

model year vehicles.

(11) Waiver rate. A 3% waiver rate, as a percentage of failed

vehicles.

(12) Compliance rate. A 96% compliance rate.

(13) Evaluation date. Enhanced I/M program areas subject to the

provisions of this paragraph (i) shall be shown to obtain the same or

lower emission levels for HC and NOX as the model program

described in this paragraph assuming an evaluation date set 6 years

after the effective date of designation and classification under the 8-

hour ozone standard (rounded to the nearest July) to within +/-0.02

gpm. Subject programs shall demonstrate through modeling the ability to

maintain this percent level of emission reduction (or better) through

their attainment date for the 8-hour ozone standard, also rounded to

the nearest July.

* * * * *

3. Section 51.352 is proposed to be amended by revising paragraph

(c) and adding a new paragraph (e) to read as follows:

Sec. 51.352 Basic I/M performance standard.

* * * * *

(c) On-board diagnostics (OBD). For those areas required to

implement a basic I/M program prior to the effective date of

designation and classification under the 8-hour ozone standard, the

performance standard shall include inspection of all model year 1996

and later light-duty vehicles equipped with certified on-board

diagnostic systems, and repair of malfunctions or system deterioration

identified by or affecting OBD systems as specified in Sec. 51.357,

and assuming a start date of 2002 for such testing

e of

designation and classification under the 8-hour ozone standard, the

performance standard shall include inspection of all model year 1996

and later light-duty vehicles equipped with certified on-board

diagnostic systems, and repair of malfunctions or system deterioration

identified by or affecting OBD systems as specified in Sec. 51.357,

and assuming a start date of 2002 for such testing. For areas required

to implement basic I/M as a result of designation and classification

under the 8-hour ozone standard, the performance standard defined in

paragraph (e) of this section shall include inspection of all model

year 2001 and later light-duty vehicles equipped with certified on-

board diagnostic systems, and repair of malfunctions or system

deterioration identified by or affecting OBD systems as specified in

Sec. 51.357, and assuming a start date of 4 years after the effective

date of designation and classification under the 8-hour ozone standard.

* * * * *

(e) Basic performance standard for areas designated non-attainment

for the 8-hour ozone standard. Areas required to implement a basic I/M

program as a result of being designated and classified under the 8-hour

ozone standard, must meet or exceed the emission reductions achieved by

the model program defined below for the applicable ozone precursor(s):

(1) Network type. Centralized testing.

(2) Start date. 4 years after the effective date of designation and

classification under the 8-hour ozone standard.

(3) Test frequency. Annual testing.

(4) Model year coverage. Testing of 1968 and newer vehicles.

(5) Vehicle type coverage. Light duty vehicles.

(6) Emission test type. Idle testing (as described in appendix B of

subpart S) for 1968-2000 vehicles; onboard diagnostic checks on 2001

and newer vehicles.

(7) Emission standards. Those specified in 40 CFR part 85, subpart

W.

(8) Emission control device inspections. None.

testing.

(4) Model year coverage. Testing of 1968 and newer vehicles.

(5) Vehicle type coverage. Light duty vehicles.

(6) Emission test type. Idle testing (as described in appendix B of

subpart S) for 1968-2000 vehicles; onboard diagnostic checks on 2001

and newer vehicles.

(7) Emission standards. Those specified in 40 CFR part 85, subpart

W.

(8) Emission control device inspections. None.

(9) Evaporative system function checks. None, with the exception of

those performed by the OBD system on vehicles so-equipped and only for

model year 2001 and newer vehicles.

(10) Stringency. A 20% emission test failure rate among pre-1981

model year vehicles.

(11) Waiver rate. A 0% waiver rate, as a percentage of failed

vehicles.

(12) Compliance rate. A 100% compliance rate.

(13) Evaluation date. Basic I/M program areas subject to the

provisions of this paragraph (e) shall be shown to obtain the same or

lower emission levels as the model program described in this paragraph

by an evaluation date set 6 years after the effective date of

designation and classification under the 8-hour ozone standard (rounded

to the nearest July) for the applicable ozone precursor(s).

* * * * *

4. Section 51.353 is proposed to be amended by revising paragraph

(c)(4) to read as follows:

Sec. 51.353 Network type and program evaluation.

* * * * *

(c) * * *

(4) The program evaluation test data shall be submitted to EPA and

shall be capable of providing accurate information about the overall

effectiveness of an I/M program, such evaluation to begin no later than

1 year after program start-up.

* * * * *

5. Section 51.360 is proposed to be amended by revising paragraph

(a)(6) to read as follows:

Sec. 51.360 Waivers and compliance via diagnostic inspection.

* * * * *

uation test data shall be submitted to EPA and

shall be capable of providing accurate information about the overall

effectiveness of an I/M program, such evaluation to begin no later than

1 year after program start-up.

* * * * *

5. Section 51.360 is proposed to be amended by revising paragraph

(a)(6) to read as follows:

Sec. 51.360 Waivers and compliance via diagnostic inspection.

* * * * *

(a) * * *

(6) In basic programs, a minimum of $75 for pre-81 vehicles and

$200 for 1981 and newer vehicles shall be spent in order to qualify for

a waiver. These model year cutoffs and the associated dollar limits

shall be in full effect by January 1, 1998, or coincident with program

start-up, whichever is later. Prior to January 1, 1998, States may

adopt any minimum expenditure commensurate with the waiver rate

committed to for the purposes of modeling compliance with the basic I/M

performance standard.

* * * * *

6. Section 51.372 is proposed to be amended by removing and

reserving paragraph (b)(1) and (b)(3) and by revising paragraph (b)(2)

to read as follows:

Sec. 51.372 State implementation plan submissions.

* * * * *

(b) * * *

(2) A SIP revision required as a result of designation for a

National Ambient Air Quality Standard in place prior to implementation

of the 8-hour ozone standard and including all necessary legal

authority and the items specified in paragraphs (a)(1) through (a)(8)

of this section, shall be submitted no later than November 15, 1993.

For non-attainment areas designated and classified under the 8-hour

ozone standard, a SIP revision including all necessary legal authority

and the items specified in paragraphs (a)(1) through (a)(8) of this

section, shall be submitted by [insert date 12 months after the

effective date of EPA's final action on this proposal] or 1 year after

the effective date of designation and classification under the 8-hour

ozone National Ambient Air Quality Standard, whichever is later.

* * * * *

7

sion including all necessary legal authority

and the items specified in paragraphs (a)(1) through (a)(8) of this

section, shall be submitted by [insert date 12 months after the

effective date of EPA's final action on this proposal] or 1 year after

the effective date of designation and classification under the 8-hour

ozone National Ambient Air Quality Standard, whichever is later.

* * * * *

7. Section 51.373 is proposed to be amended by removing and

reserving paragraph (e), by revising paragraphs (b), and (d), and by

adding a new paragraph (h), all to read as follows:

Sec. 51.373 Implementation deadlines.

* * * * *

(b) For areas newly required to implement basic I/M as a result of

designation under the 8-hour ozone standard, the required program shall

be fully implemented no later than 4 years after the effective date of

designation and classification under the 8-hour ozone standard.

* * * * *

(d) For areas newly required to implement enhanced I/M as a result

of designation under the 8-hour ozone standard, the required program

shall be fully implemented no later than 4 years after the effective

date of designation and classification under the 8-hour ozone standard.

* * * * *

(h) For areas newly required to implement either a basic or

enhanced I/M program as a result of being designated and classified

under the 8-hour ozone standard, such programs shall begin OBD testing

on subject OBD-equipped vehicles coincident with program start-up.

* * * * *

[FR Doc. 05-177 Filed 1-5-05; 8:45 am]

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Amendments to Vehicle Inspection Maintenance Program Requirements To Address the 8-Hour National Ambient Air Quality Standard for Ozone · 70 FR 1314 | Frix